Latest news with #MalaysianInstituteofEconomicResearch
The Sun
24-07-2025
- Business
- The Sun
MIER: Lower RON95 price will ease cost of living and support economy
KUALA LUMPUR: The government's move to lower the price of RON95 will help ease living costs and support the economy, said Malaysian Institute of Economic Research (MIER) chairman Tan Sri Mohd Effendi Norwawi. He said the government is addressing one of the public's most pressing concerns – transport and fuel costs. 'The government's consideration will be, like anything else, they will look at what are the biggest needs of the people today. In a way, they're doing it right ... and looking at this,' he told reporters at Brown Bag Talk titled 'A Journey Through the Looking Glass: Towards Future-Proofing Malaysia's Food Security today. Effendi said the government will try to give as much as they can afford without affecting the national budget overall. 'I think it's always a balance of government. I think they're doing their best. Honestly, at least they have a good intention.' Former MIER chairman Tan Sri Sulaiman Mahbob also welcomed the move, saying it would provide relief for many Malaysians. 'This will help many by reducing transportation costs. Real income will improve, and this is good for the general public.' When asked whether the fuel price reduction might affect the national budget, Sulaiman said the impact should be assessed holistically. 'Whether it's a cost or a benefit, if the outcome is positive for the economy, then it's ultimately good for the budget as well.' Prime Minister Datuk Seri Anwar Ibrahim announced on Wednesday that the price of RON95 petrol will be reduced to RM1.99 per litre for eligible motorists from RM2.05 per litre currently while fuel subsidies are rationalised. Anwar said it will benefit around 18 million motorists, including youths as young as 16 and gig economy workers. The prime minister added that full details of the RON95 subsidy mechanism would be announced by the end of September. 'When the RON95 subsidy rationalisation takes effect, Malaysians will enjoy a lower fuel price of RM1.99 per litre,' said Anwar. On a separate matter, Effendi said Malaysia must reassess its growth priorities under the 13th Malaysia Plan based on current global trends. 'I think agriculture and food security will be a priority,' he said. The sector, he added, has been on the national agenda since the 1970s, but now needs to be re-prioritised as a key national focus. 'It's time to turn this into a real national agenda. It's a major opportunity for Malaysia.' Effendi said beyond addressing food deficits and import bills, Malaysia has the potential to become a global food producer – similar to its success in palm oil and rubber – by leveraging its expertise, institutions such as Mardi, and modern agricultural technologies. 'If we've done it with palm oil and rubber, we can do it with food production. But we need a strong, comprehensive modern agriculture plan,' he added.
New Straits Times
24-07-2025
- Business
- New Straits Times
Palm oil and rubber model can drive Malaysia's global food ambitions
KUALA LUMPUR: Malaysia can become a global food producer by emulating its success in the palm oil and rubber industries, according to the Malaysian Institute of Economic Research (MIER). Its chairman, Tan Sri Mohd Effendi Norwawi, said the country should start viewing agriculture and food security as a strategic growth sector rather than a recurring policy issue. "Agriculture and food security have always been on the agenda, even from the 1970s, but it is time for the government to examine it more closely, reprioritise the sector, and elevate it to a top national priority," he said after the MIER Brown Bag Talk Series -- "A Journey Through the Looking Glass: Towards Future-Proofing Malaysia's Food Security" -- here today. Mohd Effendi, a former minister of agriculture and food security, said Malaysia's food import bill, supply vulnerabilities, and global disruptions such as war, pandemics, and climate change highlight the urgent need for a new approach. "We have achieved success in palm oil and rubber, and we can apply this model to food production, particularly by utilising modern technology and the extensive knowledge we possess," he said, citing institutions like the Malaysian Agricultural Research and Development Institute (MARDI) and the country's network of agriculture professionals. Mohd Effendi highlighted that beyond agriculture, other emerging areas such as artificial intelligence (AI) and sustainability should be central to the 13th Malaysia Plan (13MP). "AI is an area we must move forward with. Malaysia is still at the starting line, so we have an opportunity to jump-start our progress. "We can move quickly into areas like AI and sustainability, where we already have national experts and can bring in international ones to help shape strong policies and strategies," he said. The talk featured presentations by MIER senior fellows Dr Larry Chee-Yoong Wong and Khairuddin Md Tahir, who advocated for a systemic shift in how Malaysia addresses food security. The event is part of MIER's ongoing Brown Bag Talk Series aimed at fostering policy dialogue on key national issues. -- BERNAMA
The Sun
22-06-2025
- Business
- The Sun
MIER struggling to stay afloat, says chairman
KUALA LUMPUR: After four decades of shaping Malaysia's economic and social policies, the Malaysian Institute of Economic Research (MIER) is now struggling to stay afloat. MIER chairman Tan Sri Effendi Norwawi said MIER – one of the country's two independent think tanks alongside ISIS Malaysia – is now sustained not by public funds, but by personal contributions from its board of trustees. 'As trustees, we personally advance funds to keep operations running. We do this pro bono because we are deeply passionate about ensuring MIER continues to serve its national role,' he told SunBiz in a recent interview. Once the go-to source for independent data behind the Malaysia Plans and industrial blueprints, MIER now operates with zero core funding. Its annual government grant? Gone. Its project pipeline? Shrinking. Its staff? Whittled down after years of financial strain. Without regular government grants, Effendi said, MIER is surviving only because its board members are personally funding it. 'We used to receive an annual grant. That stopped. While we're still in talks with the government, in the meantime, we've had to raise our own funds.' He said the board is now mostly focused on survival, meeting weekly just to manage basic sustainability. 'There were times we ran out of money. When that happens, we step in ourselves. The board meets almost every week now just to ensure MIER stays alive,' he said. Today, MIER is overseen by a board of trustees comprising former senior civil servants and industry leaders, including former Economic Planning Unit director-general Tan Sri Dr Sulaiman Mahbob; Royal Selangor founder and former Pemudah co-chair Tan Sri Yong Poh Kon; former Johor menteri besar Tan Sri Abdul Ghani Othman; former Treasury official and economist Datuk Dr M. Shanmughalingam; and Sarawak Deputy State Secretary (Economic Planning and Development) Datuk Sri Dr Muhammad Abdullah Zaidel. Effendi said the current leadership is working unpaid, out of passion and duty. 'We are only volunteers. We do our best. But if we're unable to raise funds and keep MIER going, there's a real risk we may not survive, which would be very sad for the country.' Despite its financial strain, Effendi said, MIER remains actively engaged in policy work. It is currently advising the Ministry of Finance on the Sales and Service Tax and the Goods and Services Tax deliberations, and has submitted proposals to agencies such as Malaysian Investment Development Authority (Mida) 'Our input is valued because we're close to industry and remain neutral. We engage as professionals.' The institute is also in talks with state governments such as Sarawak and Terengganu and financial institutions including Affin Bank. 'We engage with these institutions to see how we can support them whether at the national policy level or in operational matters. For example, we produce GDP (gross domestic product) reports, consumer confidence and business indexes, which banks use to advise their clients.' MIER is now planning a national economic conference in collaboration with Affin Bank, bringing together local and global experts. 'We hope to gather domestic and international voices to discuss the most pressing topics for national policy and business.' The think tank will also continue to publish its quarterly reports. 'Our strength is our network. We have access to the best minds across fields, economic, social, sustainability, artificial intelligence, innovation thanks to our ties with universities. 'When the government gives us a task, we can deliver fresh insights backed by the country's best thinkers.' Effendi remains hopeful that MIER's track record, independence and institutional memory will continue to be recognised and supported. 'This is the value MIER brings. This is our national role. We just want the chance to keep doing it.' Former chairman Tan Sri Sulaiman Mahbob shared that the think tank has been facing long-standing financial difficulties and lacks a stable source of funding. 'We don't have a permanent income or a fixed government provision for planning. If the government gives us something, it helps, but we still have to go out and find our own projects,' he told SunBiz. He said MIER's financial reserves were severely impacted by past economic crises, including the 1997–98 Asian Financial Crisis, the 2008–09 Global Financial Crisis and, most recently, the Covid-19 pandemic. 'Our endowment funds were placed with fund managers, but they were affected when the stock market collapsed,' he said. 'During Covid, we couldn't carry out any projects for nearly two and a half years. People weren't coming into the office, but we still had to pay rent, utilities and full wages.' As a result, key staff left and many projects dried up. 'When we ran out of money, many directors resigned. Our core management team moved on. It's not that we lost capacity – we just couldn't afford to keep them,' he said. Sulaiman noted that although the government continues to help, most recently with a RM1 million allocation, MIER's long-term financial footing remains shaky. 'The government still helps, but differently now. If they need research, they fund it. If not, there's no support,' he said. 'Private companies also don't offer many projects anymore. They have their own in-house research teams. Banks, for instance, used to rely on us. Now they have economic departments of their own.' Even so, he said, demand for independent voices is growing again as the economy becomes more complex and volatile. 'People are starting to come back to us. They want a balanced view, not just the official government narrative, but also a private, independent one.' Sulaiman believes Malaysia urgently needs more independent research bodies to keep national economic debates diverse and robust. 'We only have two think tanks – ISIS and MIER. But ISIS is government-funded. MIER is the only truly independent one. 'Other countries like Singapore, Indonesia, the Philippines have many. We need at least five or six independent think tanks to give fresh, competing perspectives.' He said the private sector should also step up to support institutions such as MIER. 'Companies that benefit from a strong economy like oil, palm oil, manufacturing should help us. There are tax incentives for donations. But they're not coming forward. 'Saying the government no longer helps isn't accurate. They still help. But the private sector is lagging. It needs to do more.' For Malaysia to make better long-term decisions, he said, there must be room for more than one voice. 'Right now, we rely on a single source. That makes it harder to respond to new challenges. We need more free-thinking institutions to offer alternative forecasts, models and solutions.' 'That's why MIER must continue to exist. It's one of the last independent voices in the country.
New Straits Times
12-06-2025
- Business
- New Straits Times
MIER clarifies the scope of the new sales tax on imported fruits
KUALA LUMPUR: The Malaysian Institute of Economic Research (MIER) has provided further clarification on the expanded Sales and Service Tax (SST), confirming that the new 5 per cent sales tax effective July 1, 2025, will only apply to imported fruits, not local produce. Business Times reported yesterday that local fruits and cooking oil will not be taxed under the expanded Sales and Service Tax (SST) taking effect on July 1, 2025. Addressing public confusion over the gazetted SST list, a Ministry of Finance (MOF) spokesman clarified that the 5 per cent sales tax only applies to imported fruits, not those grown locally. If the fruits are imported, they will be subject to the 5 per cent sales tax. Locally grown fruits are exempt from any sales tax, the spokesman said. The spokesman further clarified that several essential imported food items, including rice, wheat, sugar, salt, and meat, are also exempt from tax under the expanded SST, as they are considered basic necessities. Regarding sugar, the 5 per cent tax will apply only to raw sugar, which includes cane or beet sugar and chemically pure sucrose in solid form. In contrast, refined sugar will continue to carry a 0 per cent sales tax. The clarification follows widespread public confusion after a gazetted list of taxable goods appeared to include everyday items such as bananas, papayas, durians, dried longans, cooking oil, sugar, and salt – previously identified as tax-exempt essentials. "MIER understands that the rakyat's confusion arises from the fact that the sales tax (rate of tax) order 2025 does not appear to differentiate between imported and local produce because the HS tariff code only defines taxable items. "In practice and according to Section 8 of the Sales Tax Act 2018, sales tax is imposed on locally manufactured taxable goods as well as on imported taxable goods. Sales tax on the imported fruits will be taxed at the point of entry into the country, that is, during customs clearance at ports. "Locally grown fruits do not go through customs clearance and do not fall under the definition of locally manufactured goods. "Therefore, the new sales tax is not imposed on locally grown fruits," it said.
