Reports 2019-08-05T16:33:57+00:00

REPORTS

KLR July 2019 Report

1st Kuala Lumpur Roundtable – July 2019 Report

The Kuala Lumpur Roundtable (KLR) is a panel of economists, policy experts and corporate figures with the ambition to act as the conscience of the nation and the advocates for reform in Malaysia. Its mission is to improve the wellbeing of all Malaysians as well as to showcase Malaysia as a successful example of economic development. The KLR contributes to this mission through providing constructive recommendations to the government after critical deliberations on the country’s current economic, social and governance challenges. This report summarises the KLR discussion by highlighting the most pertinent issues and presenting the reader with the conclusions reached at each Roundtable discussion.

This first session’s primary focus was Shared Prosperity, taking both a long- and short-term perspective. It emphasized the idea that continued focus on growth is important and should be achieved through commitment to free trade policies and fiscal reforms. This perspective should be supported by more effective investment in human capital following the idea that Malaysia needs to create prosperity before sharing it. Overall, the panel agreed on the need for greater community engagement, reduced government involvement in business, as well as less dependency on foreign labor to promote growth towards 4IR and capital-intensive production. To approach the next ten years under the vision of shared prosperity, the government has to undergo significant institutional reform.

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Projek Pantau Report Card No.2

Projek Pantau Report Card No.2

Date: June 2019

This is the second Projek Pantau Report Card. The first Report, published in April 2019, was a Pilot Report, on which this Report builds with various revisions based on feedback and corrections. Given the relatively short time between this Report Card and the First Report Card, there are relatively few major updates. The First Report Card covered the period from 9 May 2018 until 31st March 2019. This Second Report Card includes the period from 1st April 2019 to 14th June 2019. From now on Report Cards will be published every 6 months, in June and December each year. In addition, this Second Report Card includes a number of new promises. We have chosen to analyse a total of 224 sub-promises, broken down from 27 main promises. We are focusing on promises which relate to the economy, institutional reforms and education, and are therefore considering all promises under Pillar 1 (Reduce the People’s Burden) and Pillar 3 (Spur Sustainable and Equitable Economic Growth), alongside five promises from Pillar 2 (Institutional Reforms) and Pillar 5 (Create a Malaysia that is Inclusive, Moderate and Respected Globally), which we consider to be very important for the government to tackle in the next four years of the Pakatan Harapan government’s first term of administration. In order to reach the conclusion for each promise, we have analysed any publicly available information such as news reports and government policy documents. A detailed description of the methodology is provided in the Appendix.

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Projek Pantau Report Card No.1, 2019

Projek Pantau Report Card No.1

Date: April 2019

Projek Pantau is inspired by this spirit of openness in the New Malaysia. The intention is to provide a transparent assessment of the government’s performance in delivering its manifesto promises relating to the economy. The project will include a series of “report cards” assessing the government’s performance to date – of which this is the first. The purpose of this report card is to provide a benchmark in which the Rakyat can evaluate the government’s performance in fulfilling their manifesto promises. In addition, this report card is also intended to be a document that the PH government can use as a reference in their ongoing efforts to realise their reform agenda. 

For this first report, we have chosen to analyse a total of 192 sub-promises, broken down from 23 main promises. We are focusing on promises which relate to the economy, and are therefore considering all promises under Pillar 1 (Reduce the People’s Burden) and Pillar 3 (Spur Sustainable and Equitable Economic Growth), alongside three promises from Pillar 2 (Institutional and Political Reforms), that we consider to be critical to the government’s economic agenda, specifically the promises relating to Government Linked Companies (GLCs), public procurement and the budget. In future report cards we will consider expanding the number of promises.

For each sub-promise we have scored the government’s i) political commitment, ii) policy direction and iii) implementation. Based on these scores we have then given each promise an overall “verdict”. To reach these conclusions we have analysed publicly available information such as news reports and government policy documents. We have taken account of any publicly available information up until 31 March 2019. Inevitably, reaching judgements in the government’s performance is subjective, so we have engaged other civil society organisations and experts on our scores and provided explanatory notes for our assessments. We welcome feedback on the analysis provided here – our aim is to support and stimulate discussion.

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Executive Summary
Malaysia Digital Trade Report

Malaysia Digital Trade Report

Date: March 2019

The Hinrich Foundation, Malaysia Australia Business Council, Institute for Democracy and Economic Affairs (IDEAS) and AlphaBeta launched a new report, titled, “The Data Revolution: How Malaysia can capture the digital trade opportunity at home and abroad”, on March 20, 2019.

The report examines the current and potential impact of digital trade at home and quantifies the economic value of technological gains enabled by digital trade. It also recommends perceived concerns related to digital trade and how they can be addressed.

The report finds digital exports of Malaysia accounts for about 3 percent of total export value today, but this could grow by a massive 298 percent in the absence of digital trade barriers.

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EU-ASEAN FTA Report

EU-ASEAN FTA Report

Date: December 2018

In this report under the API we consider the economic relationship between ASEAN and the European Union (EU). The comparison is often made between these two regional blocs, which represent the two leading efforts to integrate their respective regions. The EU’s economic integration is significantly deeper and supported by a far more developed institutional and legal framework. The EU is in general more economically developed than ASEAN and is also more homogeneous in its level of development across its Member States than is the case across the 10 members of ASEAN. Although both have been widening over the years by accepting new members, this has added more to ASEAN’s overall diversity than it has the EU’s, further increasing the overall heterogeneity between the two groupings. Despite these differences, we believe that ASEAN and the EU share an essential similarity: they are both groupings of countries that recognise the importance of regional integration and the benefits of trade and investment in the context of a rules-based system. We therefore believe that putting the economic relations between the EU and ASEAN on the best possible footing is crucial to the long-term prosperity of ASEAN, as well  as the EU.

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ASEAN Integration Report

ASEAN Integration Report

Date: December 2018

This report, aim to provide an external assessment of implementation of AEC Blueprint 2025. The scope of the AEC Blueprint is very broad, and our resources are modest in comparison – as a result this report is intended to serve as a foundation which we will build on in future reports.

To prepare this report, we have sought to follow the approach set out in the Monitoring and Evaluation Framework prepared by the AIMO of measuring both outcomes and compliance. The report is therefore structured as follows:

  • Assessment of the outcomes of ASEAN integration using a set of economic indicators;
  • Assessment of the implementation of the CSAP using publicly available information on measures and action which have been implemented; and
  • Commentary on the broad messages of these assessments; and
  • A sector “deep dive” for aviation, to consider issues relating to air transport integration
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Evaluation of Agricultural Subsidies and the Welfare of Farmers

Malaysia Agricultural Subsidies Report 2018 – Evaluation of Agricultural Subsidies and the Welfare of Farmers

Date: December 2018

Malaysia’s paddy and rice sector is one of the most assisted and subsidized industries within the country, which has severe implications on the cost of rice production as well as the productivity of the industry. The government is faced with a challenging sectorial objective to balance between national food security, farmer welfare and low consumer prices.With the paddy sector’s stagnating productivity growth and the subsidy programs presenting an ever-increasing fiscal burden, there is a call to review and recalibrate how we approach these challenges.

In 2018, IDEAS conducted a research study of 125 interviews with paddy farmers from two major granary areas, MADA and IADABLS, to explore the efficacy of subsidies in Malaysia’s paddy sector in improving farmers’ welfare. Additional data were collected through focus group discussions with farmers and institutional officers to cross-reference the data collected. This Policy Ideas presents the findings of the study and the impact that agricultural subsidies have on farmers’ yield, income, cost and behavior.

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Executive Summary
Government in Business: Diverse Forms of Intervention

Malaysia GLC Monitor 2018 – Government in Business: Diverse Forms of Intervention

Date: August 2018

In 2017, IDEAS with Professor Edmund Terence Gomez and his team at University Malaya published a book “Minister of Finance Incorporated: Ownership and Control of Corporate Malaysia.” The book explored Malaysia’s new political economy, unwrapping decades of political involvement in Malaysia’s corporate sector, focusing on the omnipresent control of Government-Linked Investment Companies (GLICs) through the Minister of Finance Incorporated. 
This report, the “Malaysia GLC Monitor 2018”, the first of its kind by IDEAS, exposes more groundbreaking details of government’s intervention in the economy. This study investigates how government-linked companies (GLCs), including publicly-listed firms, owned and controlled by a variety of public institutions operate in the Malaysian economy. This study also provide insights into how GLCs controlled by the federal ministries and state governments function in the economy. 
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