PUTRAJAYA was right to establish the Economic Action Council (EAC) to aid Malaysians grappling with the rising cost of living, but it lacks the participation of youth and consumer groups, said observers.

Greater youth and civil society representation, especially of consumer groups, is important to convey to the government the daily realities, analysts said.

Socio-political analyst Dr Awang Azman Awang Pawi said Prime Minister Dr Mahathir Mohamad, who chairs the EAC, should avoid wholesale “recycling” of past strategies to tackle economic woes and update his approach by allowing more diverse participation.

Members of the council, named two days ago, include five ministers, a former minister, economist and think-tank, finance, banking, and legal representatives. The sole consumer group representative, Paul Selvaraj, is the Federation of Malaysian Consumers’ Associations CEO.

“One weakness is that they may be depending too much on the old format. (There should be) new factors, like involving consumer groups and youth who have economic experience, such as Rafizi Ramli. There are many youth-related groups,” said Awang Azman, an associate professor at Universiti Malaya.

From a political perspective, he said, it would be good to include PKR president Anwar Ibrahim, who is expected to succeed Dr Mahathir as prime minister.

“Politically, Anwar should have been included. He has experience as a finance minister and is among those strongly advocating solutions to cost-of-living issues.”

The council is similar in structure to the ad hoc economic action council set up in the late 1990s to tackle the aftermath of the Asian financial crisis in Malaysia.

This time, Pakatan Harapan is facing heavy criticism for doing too little too slowly to reform the economy and address the plight of rural folk and small players in the agricultural sector.

Putrajaya’s response has often been to highlight the enormous RM1 trillion debt inherited from the previous government, which is used to justify the shelving of several major infrastructure projects.

Analyst Dr Tunku Mohar Tunku Mokhtar said there needs to be greater youth participation in the economy and it is unfortunate that this segment of the populace is not represented in the council. 

The common complaints of young people are rising cost of living, stagnant wages and unaffordable housing.

“There is no representation of the youth, and if they are the ones facing economic pressure, they should be included,” Tunku Mohar told The Malaysian Insight.

The International Islamic University political science assistant professor said the council should instil some confidence in the people that the government is tackling cost-of-living issues head-on and looking for solutions.

“We have changed the government but the cost of living and prices of goods and transport have either remained the same or increased. This is worrying the public. To me, the first order of things to address is the cost of daily essentials.”

Besides restoring public confidence in the government, the council can also help Malaysia to regain investor confidence, Awang Azman said.

“The cabinet members do not appear to know what to do to overcome economic problems. So, this council is needed to attract the confidence of external investors.

“I think its first priority should be how to strengthen the ringgit so that economic stability returns,” he said.

Politically, Dr Mahathir set up the council as a way to “intervene” and change negative perceptions of the PH government over the lacklustre economy, said Universiti Kebangsaan Malaysia’s Dr Kartini Aboo Talib Khalid.

“The council’s formation can serve to stop speculation that PH is failing as a government,” the political analyst said.

She said, however, that “also implies that the new government has not met Dr Mahathir’s expectations.”

The council’s priority should be to identify the cause of Malaysia’s current problems, she said.

It must also ensure that the economy is inclusive so that all races will benefit.

“Otherwise, the country will fall into chaos.” – February 13, 2019.