Tan Sri Mohd Sidek Hassan

At Your ServiceWe need to get the economy out of this impasse. We have to re-examine our growthmodel and adopt one that will enable us to double our per capita income in thenext phase of development and join the ranks of high-income economies. Recentgrowth theories postulate that policies, which embrace openness, competition,change and innovation, will promote growth. Growth strategies formulated underthe new economic model must take cognisance of this view. The world is nowmore open and integrated. With a small population of 27.7 million, Malaysia’sdomestic demand is rather limited and our companies must strive to make theworld their market. This will enable our companies to benefit from the economiesof scale and in turn enable the rakyat to consume quality products and servicesat lower prices.At the same time, policies need to be put in place to encourage more Malaysiancompanies to embrace and adopt new ideas, technologies and know-how from therest of the world. This will enable us to optimise output from existing resourcesof land, labour and capital. There is no doubt that competition is a vital part of avibrant economy. Towards this, strategies under the new model must be designedto attract the entry of new firms and encourage the emergence of new industries.Countries that have elevated themselves from middle- to high-income have reliedon change and innovation.Towards this, we need to focus on R&Dand applied technology development inniche areas. This will create critical massesof research talent in centres of excellenceand generate findings that give rise totechnological spillovers for industry.The private sector should complement and supplement efforts of the public sectorand subsequently play a pivotal role in generating economic activities and be theengine of growth. We are into this together. The role of the Government shall belimited to facilitating private sector initiatives and in those areas where marketconditions fail.96