Rinakshie Rams

Tweets about 🇲🇾 and all that interests me . RT =/= Endorsements. MPP @ Warwick Uni. Editor @ANewsEducation

[Mohamed ElBaradei @ElBaradei]

For #Israel to attack #Iran including its nuclear facilities (prohibited by international law) and for #Trump to ask Iran for “total surrender” and forgo a treaty right (uranium enrichment) in a clear act of national humiliation, on suspicion that it is developing nuclear weapons (possessed by both #Israel and #US ), suspicion that does not constitute an “imminent threat” as confirmed by all western intelligence agencies and was dealt with through negotiations in #JCPOA agreement of 2015 which the US withdrew from in 2018

To rely on force and not negotiations is a sure way to destroy the #NPT and the nuclear non proliferation regime (imperfect as it is) and sends a clear message to many countries that their “ultimate security” is to develop nuclear weapons !!!

#IranIsrael

[Anxious for Msia @anxioustapir]

Pamela Ting’s case is a frightening one of many incidents where alleged ‘dressed as police’ individuals kidnapped her from a grab car.

All Malaysians need to know your legal rights🧵

Share with your family & friends.

[Apurva Sanghi @ApurvaSanghi]

This was a challenging op-ed to write in which I try to answer the 1.8 trillion ringgit Q:

What are the untapped growth drivers for M'sia?

Hope u read & share what u think!
__________
Unlocking new growth drivers: Services, Subnational, Sustainability
Opinion
By Apurva Sanghi / Reuters
18 Mar 2025, 12:26 pm

(March 18): 2024 was a good year for Malaysia’s economy. The World Bank raised its growth forecast to 4.9%, a solid 14% jump from earlier projections. Growth surged beyond expectations, inflation remained moderate and investments boomed.

The equity market hit a historic high in market capitalisation mid-year, while exports enjoyed impressive growth. The ringgit made a strong comeback, and real median wages saw solid growth for both men and women.

Unemployment reached pre-pandemic levels and hardcore poverty was nearly eradicated. Moody’s rating agency also reaffirmed Malaysia’s “A3” sovereign credit rating with a stable outlook.

These “quantitative” indicators are now being reflected in qualitative ones: the latest Ipsos survey noted how Malaysians are becoming optimistic about the future. Almost eight out of 10 Malaysians expect 2025 to be a better year.

What explains this turnaround? Can this momentum continue into 2025 — a year of global uncertainty? What new growth drivers can Malaysia unlock to secure its economic future?

Several factors, both global and local, have contributed to this turnaround. Despite ongoing geopolitical tensions and high interest rates, the global economy has performed better than expected.

One reason is that inflation has decreased in many parts of the world, leading to a renewed interest in economic growth. This has been especially true in the US, where growth has been stronger than anticipated.

In emerging markets, rising consumer confidence, stronger manufacturing and improved services helped boost economic activity. East Asia, in particular, has grown faster than other regions.

On the domestic front, Malaysia has benefitted from political stability, favourable government policies and improved investor confidence. Its efforts to streamline subsidies, reform civil service pensions and pass the Fiscal Responsibility Act have all helped set the stage for smoother economic growth.

The reform narrative was also nicely displayed in the recently concluded Forum Ekonomi Madani (organised by the government). Indeed, the country’s per capita output now stands at 12% above pandemic levels, outperforming many regional peers.

Sustaining momentum
Malaysia can now build on this momentum. In an increasingly uncertain and fast-changing world, it is even more important to focus on what can be controlled at home and seize the opportunity — that is to double down on domestic reforms.

Now, there is a lot of healthy discussion and debate on mainstream issues such as Malaysia’s diversifying its trade partners, or the role of data centres or on traditional growth areas like semiconductors and commodities.

In this article, however, I draw out three under-tapped potential growth and development drivers that Malaysia has yet to fully embrace.

Let’s call them 3S: services, sub- national and sustainability.

Services: Closing the reform gap

Take investment, which is a cornerstone of Malaysia’s economic policy. Prior to 2000, Malaysia’s inward stock of foreign direct investment (FDI) used to be the highest among its Asean-5 peers. But now countries like Thailand and Vietnam have surpassed it.

There are many reasons why investors choose a country, like stable policies, good infrastructure and skilled workers. However, according to the Organisation for Economic Co-operation and Development’s (OECD) FDI restrictiveness index, when it comes to certain services, Malaysia is twice as restrictive as Vietnam, especially in the service sectors of distribution, electricity and financial services. Reforming services boosts productivity and growth. Globally, services account for more than half of global trade and two-thirds of global GDP, and several countries have benefited from reforming their services sectors. For example, neighbouring Indonesia, between 1997 and 2009, by making services less restrictive to FDI, saw a boost of 8% in productivity of its manufacturing sector.

Other countries like Chile and India have had similar positive results. Interestingly, Malaysia’s FDI restrictiveness is almost zero in manufacturing but that should not be surprising: After all, Malaysia has made a concerted effort to attract FDI in manufacturing, especially in its electrical and electronics (E&E) sector.

The key takeaway is that policies matter. It is time for Malaysia to reduce restrictions not just in manufacturing but also in services.

While services account for around half of Malaysia’s GDP, they remain restricted. For example, a lawyer from Peninsular Malaysia cannot automatically practice in Sabah or Sarawak, and vice versa.

In fact, Malaysia is ranked by the OECD as the seventh most restrictive country in terms of services trade out of 51 countries (with Japan being the least restrictive). OECD analysis finds that horizontally applicable regulations — such as Malaysia requiring residency requirements for the board of directors, imposing limitations on the acquisition and use of land by foreigners and limitations on cross-border transfer of personal data — all restrict trade in services.

Now, one services sector where Malaysia is poised to take off is Islamic finance. It is not as widely known but Malaysia was the first country in the world to issue a green sukuk.

Innovating new Islamic financial models and scaling up tools such as profit-risk sharing instruments of zakat and wakaf can lead to growth that is balanced, sustainable and inclusive — which is what the world, and not just the Muslim world — needs. Indeed, Malaysia’s chairmanship of Asean provides an opportune platform for doing so.

By loosening restrictions and creating a conducive investment environment in key services sectors such as legal, digital and financial, as well as building on its strengths in Islamic finance, Malaysia is poised to fuel new growth.

Subnational: Boosting local development

Many countries, including neighbouring Philippines and Indonesia, have benefitted from fiscal and functional decentralisation to states. But it is a well-known fact that Malaysian states do not have much fiscal autonomy — being unable to raise their own taxes or directly issue debt in markets.

For sure, decentralisation needs to be done carefully and under coherent fiscal policy and accountability frameworks.

It is remarkable, however, that a decision to open a school or hospital in Kelantan or Sabah essentially resides with the federal government. This undermines local development — since local governments have a better idea of local needs — and can also breed unnecessary federal dependency.

Indeed, it is telling that of the 13 states and three federal territories, only five are above our World Bank high-income threshold.

Spatial inequalities run high and are growing. Take Kelantan, for example. In 2023, Kelantan’s per capita gross national income (about US$3,850 or RM17,113 in nominal terms) was comparable to Sri Lanka’s (US$3,540), a lower-middle-in- come country recovering from an economic crisis.

Empowering states with more fiscal autonomy, while maintaining overall fiscal responsibility, could thus stimulate local economies, address spatial disparities and unlock a new growth driver for the country as a whole.

Sustainability: Expanding the green frontier

Sustainability as a growth driver is thrown around a fair bit so let me be specific. It may surprise some but Malaysia has a revealed comparative advantage when it comes to producing and exporting green products, like lithium batteries. Between 2015 and 2022, the country’s green exports grew faster than those of other developing nations and was among the highest shares among its structural peers. Malaysia is well-positioned to boost exports of green technologies, such as solar panels and electric vehicle (EV) parts, as well as key minerals like cobalt and nickel.

And it is not just physical goods — Malaysia also has potential in green services. For example, Malaysian companies are offering carbon management services through digital platforms and are already exporting them to Thailand.

Thus, sustainability, via tapping a growing global market for green goods and services, can drive future growth.

Malaysia’s potential is vast and by fully tapping the 3S, Malaysia’s recently found economic renaissance can continue well into the future.

Dr Apurva Sanghi is the World Bank’s lead economist for Malaysia.

https://t.co/RnuDEwJr9Y

[Jalil Rasheed @jalilword]

Begs question what was the govt (at that time) doing agreeing to all this? Surely it wouldn’t happen if they didn’t sign it off

[Sam @SamanthaTeta]

global headlines back to back.

what an absolutely sick, terrifying world women must navigate.

[S @moietroses]

The French rape case is so horrible....I have no words, only 3 out of 10 men refused the invitation to rape this woman, yet none of them called the police. Raped by almost 100 men during 10 years, all from the area they lived and all very normal professional, family men.

[Apurva Sanghi @ApurvaSanghi]

Our (World Bank) headline take on the M'sian economy

1. GROWTH: 4.3% for 2024; shade < regional avg of 4.5%

2. JOBS: Migrant workers crowd-in jobs for M'sians. Real problem for M'sians? ~4-in-10 M'sians work < skill levels

3. POVERTY: ~16k families still s.t. hardcore pov
🧵

[Apurva Sanghi @ApurvaSanghi]

MALAYSIA:

- Inflation’s down
- Growth’s decent
- Jobs have returned

So why do people still feel glum?

Some more thoughts inspired by this pointed question posed to me on @KeluarSekejap

IMHO, it boils down to these 3 “I”s:

- Inflation
- Income
- Inequality

🧵

[Rinakshie Rams @rinakshie]

High time for a Malaysia Delete Act, considering how rampant financial scams are happening. Can look at what California did, may not be perfect but we gotta start somewhere @changlihkang

[Rinakshie Rams @rinakshie]

A cruel policy that will result in a decline of postgrad research quality in UK unis...

[Sky News @SkyNews]

BREAKING: International students who come to study in the UK will no longer be able to bring family from January 2024, in the government's efforts to lower migration figures.

Sky's @wizbates has the latest on this.

https://t.co/q99e3L0YmI

📺 Sky 501, Virgin 602, Freeview 233

[Rinakshie Rams @rinakshie]

As excellent as innovation may be, policy mechanisms HAVE to develop at a similar pace as tech for equitable outcomes to meaningfully manifest

[UNFPA in Malaysia @UNFPAMalaysia]

Recommended read:
How to Close the Gender Health Gap?
Women’s health care and outcomes have long come second to those of men. But new initiatives and a wave of health tech innovators may finally rebalance this.
https://t.co/sGCQEeFr86

[Azrul Mohd Khalib @azrulmohdkhalib]

Not an exaggeration to say that this is one of the most important pieces of reform ever committed to by a Malaysian govt in recent history.

[Rinakshie Rams @rinakshie]

Ask anyone working in any Ministry in Malaysia and they’ll back this up. A highly centralised Ministry that changes direction/vision with every appointment of a new minister is a key factor to consider too

[Apurva Sanghi @ApurvaSanghi]

As the World Bank economist for M’sia, I get to weigh in on, um, weighty issues such as the economy; geo-econ-politics; climate change etc.

But 2day, I want to spotlight something that doesn't get much attn yet affects EVERY Malaysian

And that is fragmentation of govt programs

[Rinakshie Rams @rinakshie]

If we pay taxes to the govt on the notion that we are helping the govt take care of us, same should be applied to the environment. #climatechange #moralduty #environment

[Rinakshie Rams @rinakshie]

Our moral duty to combat climate change stems from our reciprocal relationship with the environment.

Every interaction we have with nature is reciprocal eg breathing. Since nature has a special status as a provider of resources for human life, we should treat it like a state.

[Min @leeminhui_]

It's clear that KPWKM doesnt und the intricacies here.
1. Elderly care is complex & usually requires specialised carers. Most are not equipped to provide this.
2. Women will be the ones who will have to drop out of work to provide care, undermining LFPR.

[Rinakshie Rams @rinakshie]

Red tape literally kills. There is a need for updated parliamentary mechanisms so that politicians can come to a consensus on dealing with urgent issues.

Obviously one that is transparent and void of corruption. Hard but not impossible to achieve.

[CodeBlue @codebluenews]

MP @howardlee_my wants health workers to wait for the government "to look into all the necessary measures to ensure all stakeholders are taken into account, into policy" before going on strike.

"I think the Ministry needs to be given the room to do everything that's necessary."

[Warwick Mind&Action @Warwick_Mind]

In today's Afflictions of Mind Reading Group, Rinakshie Rams @rinakshie will lead us to discuss ‘Derationalizing delusions' by @vaughanbell @nicholaraihani & @samljwilkinson. All are welcome.

Time: 2-3.30pm
location: S0.52
Detail: https://t.co/O0LyOLGAfX

[Rinakshie Rams @rinakshie]

Being able to answer these questions will give us a working framework to better understand political developments in Malaysia.

I'm sure there is more to the discussion, but this is an important element of Malaysian politics often ignored.

Can't wait to explore this in depth!

[Rinakshie Rams @rinakshie]

It's time for Malaysia to re-conceptualise the monarchy and royal institutions.

Since GE14, the monarchy has taken a more active role in political conflict resolution and regardless of whether it's bad or good for Malaysia, it is definitely worth taking a look at.

[Rinakshie Rams @rinakshie]

4. What measures will we have to ensure transparency and accountability for decisions made in the monarch's discretion?

5. What measures are there/will we have to ensure the monarch institution remains apolitical?