What do you think of Najib’s New Economic Model? It has taken such a long time for the administration to realise that the present low-wage export-oriented model is not working.
The need for a new economic model was pointed out in this blog back in October 2008:
One of the larger issues that arises in the face of the global economic slowdown and recession is that the foreign investor-driven, export-oriented economic growth model is clearly not working, especially in times like this when global demand has shrunk. With global stagflation or recession staring at us, capacity is rising and the trickle of foreign investors is drying up.
We should be focusing more on building up a strong, resilient, sustainable domestic economy by providing basic services (housing, health care, food security, public transport, education) rather than relying on foreign investors and now, foreign retirees.
Is Najib’s new model the solution? There are some encouraging bits in it such as the focus on the bottom 40 per cent of the population and the need to improve skills in the workforce.