Policy Ideas 2021-02-24T22:17:49+08:00
Policy Paper No.55 : Powering the future: Malaysia’s energy policy challenges
Author:Renato Lima de Oliveira

Date:  November 2018

The energy industry is changing fast and in multiple directions, with important consequences for energy-rich countries. Malaysia is also experiencing unprecedented political changes with the election of the Pakatan Harapan (PH) coalition on May 9 of 2018, the first alternation of power since the country’s independence. Some of the key promises made by the PH’s manifesto are related to the energy sector, including a fast growth of renewable generation and the promotion of green technologies. This paper discusses the global energy scenario, Malaysia’s energy policy challenges, and explains why it is important to put energy innovation at the forefront of the national development strategy. 

Policy Paper No.54 : Impacts of Investment from China in Malaysia on the Local Economyy
Author: Ali Salman, Adli Amirullah, Amelia Lim

Date:  October 2018

This Policy Ideas builds on our previous report, “Illicit Trade in Malaysia: Causes and Consequences” (IDEAS, 2017). In that report we outlined the scale of illicit trade in Malaysia, the driving factors behind it and recommendations to address it. In this report, we consider those recommendations in more detail by assessing case studies from other countries where action was taken to stem the flow of illicit trade. We have complemented the assessment of these case studies with review of the relevant literature and interviews with experts in the field, including from industry and government. Using this analysis, we propose more detailed recommendations for tackling the problem of illicit trade in Malaysia.

Policy Paper No.54 : Impacts of Investment from China in Malaysia on the Local Economyy
Author: Laurence Todd, Meghan Slattery

Date:  October 2018

In this paper, IDEAS assess the impact of Chinese investment on the Malaysian economy, by focussing on the opportunities created by these projects for local firms, and local SMEs in particular, placing our specific focus on major infrastructure projects involving Chinese State-Linked companies. Our research is based on a review of the literature on the impact of Chinese FDI in other economies, analysis of publicly available data and other information, including media reports, and interviews with industry and researchers.

Policy Paper No.52 : Strengthening the ASEAN Single Aviation Market: Implementing the AEC Blueprint 2025 for Air Transport
Author: Dr Jae Woon Lee

Date:  September 2018

Aviation has been an integral component in the establishment of the ASEAN Economic Community (AEC). Since ASEAN designated air transport as one of the twelve priority sectors for economic integration in November 2004, significant integration and liberalization have taken place in the past 15 years. The number of passengers carried in ASEAN countries has tripled, from 98 million in 2004 to 329 million in 2016. (The World Bank, 2018). In particular, intra-ASEAN traffic has increased significantly. With the substantial growth, some ASEAN city pairs are now ranked as the busiest international routes worldwide.

This Policy Ideas considers the next steps in developing a Single Aviation Market in ASEAN (ASAM), and proposes recommendations for achieving this vision.

Policy Paper No.51 : Affordable Housing and Cyclical Fluctuations: The Malaysian Property Market
Author: Carmelo Ferlito

Date:  July 2018

This paper suggests that the government needs to be ready for the bubble to burst and the risk that this leads to an economic crisis. The paper recommends the government respond with market-oriented solutions and pay special attention to the household financial exposure. Second, the government needs to downplay its role in the property market by reducing the number of government agencies and encourage the private sector to get involved in the affordable housing market. Third, the government must enhance Malaysian financial literacy, with an orientation toward the value of saving and the possibilities offered by the rental market. Finally, the government may open and easing up the regulation in the property market to foreigners who are in possession of a regular working visa and paying taxes to help the industry in a crucial moment of difficulty.

Policy Paper No.50 : Create or Nurture? Lessons from Cyberjaya: Malaysia’s Promised Silicon Valley
Author: Ali Salman

Date:  July 2018

The main motivation is to study the role of government in the design and success of an industrial policy by analyzing industrial clusters. The overarching question is whether the government should create a cluster from scratch or nurture an existing one? The setting is an industrial
and innovation cluster called Cyberjaya in Malaysia, which is one of the 25 most competitive economies in the world as ranked by the World Economic Forum and is ranked amongst the top 25 countries in terms of ease of doing business by the World Bank. Historically, Malaysia is considered a successful example of an active and deliberate industrial policy, which has helped in making this country one of the top manufacturing hubs for electric and electronic goods, including semi-conductors.

Policy Paper No. 49: Intellectual Property Rights in ASEAN: Developments and Challenges
Author: Marolita Setiati Anwar, Adi Darmawan

Date:  July 2018

This paper uses IPRI 2017 indicators to measure the Intellectual Property Rights overall level of performance in five ASEAN countries: Singapore, Malaysia, Indonesia, Thailand and the Philippines, which account for the highest combined GDP in the ASEAN community.

Policy Ideas No. 48: Payment Card Reform Framework (PCRF): A Policy Evaluation Study
Author: Dr. Teo Wing Leong

Date:  May 2018

This paper reviews some of the assumptions underlying the Payment Card Reform Framework (PCRF) programme, assesses its progress to date and suggests steps that might be taken to improve the chances of achieving the Bank’s objectives.

Policy Paper 45: Government-Linked Corporations and its Impacts on the Malaysian Economy
Author: Jayant Menon

Date:  18 December 2017

The role that state-owned enterprises (SOEs) or, more generally, government-linked companies (GLCs) play in the Malaysia economy is widespread and pervasive. In terms of countries that have the highest SOE presence among their largest firms, Malaysia ranks fifth highest in the world. The Economic Transformation Program (ETP) has called for a reduced role of government in business, and a program of divestment was concluded in 2015.