"The New Economic Model (NEM) won't be an overnight panacea that can solve all issues. However, it represents a journey that all of us -- the government, the private sector and the people -- must undertake together," he said.
He said the concluding assessment of the NEM by the NEAC would certainly prepare the government to face head-on the challenges towards reforming the country's economy.
The NEAC NEM-Concluding Part has clearly presented a case of a burning platform in spite of the fact that it may seem fine on the surface.
"Of course, there are always skeptics and detractors, but actions and results are the best way to sway them. I want to reaffirm the government's resolute commitment to see through the transformation of Malaysia to become an advanced nation," he said when launching the "New Economic Model for Malaysia-The Concluding Part" here today.
The concluding report released today outlines challenges and requirements needed to transform the economy into an advanced nation, says Najib, who is also Finance Minister.
"The NEAC's economic assessment has identified many areas where improvements must be made if Malaysia is to escape the middle-income trap. Most of these issues are known to the government.
Piecemeal attempts to address them have proven ineffective; hence the need for a concerted and holistic efforts as represented by the Government Tranformation Programme (GTP) and the Economic Transformation Programme (ETP)," he said.
Among concerns raised in the report was the dismal level of investment in innovation and research and development (R&D) which falls far short of the amount required for a country aspiring to become an advanced nation.
He said the country's outdated business regulations and rules have not created an environment conducive to attracting investment and many of the manufacturing businesses remained inward-looking, used low-cost business models and distinct lack of drive and incentives to move up the technological ladder.
The Prime Minister said there are four thrusts under NEM, with the first three dealing with accelerating growth, while the fourth focuses on inclusiveness and social cohesion.
Among the initiatives are the government's plan to reform insolvency laws which include relief provisions for companies and individuals with financial problems.
On the private sector, Najib said one of the NEM's goal was to strengthen Malaysian firms' capacity to make them competitive internationally and succeed independently.
"Their viability depends solely on market terms, without subsidy and with the adherence to international standards and best practices. Without a doubt, companies will have to restructure their operations and business models accordingly," he said.
In coming months, Najib said the government will expedite implementation of the Economic Transformation Programme (ETP), with the Performance Management and Delivery Unit (Pemandu) keeping track on the progress.
- Bernama
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