Choose lasting gains over short-term fixes

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Kritik
01 Nov 2026
24
SubCategory | Press Freedom

Choose lasting gains over short-term fixes

By Patrick Teh

EVERY federal budget announcement consistently prioritises short-term populist handouts over the structural reforms needed to resolve decades-old economic vulnerabilities.

Running continuous deficits has become an accepted norm, pushing our national debt past the trillion-ringgit threshold since 2018.

A sobering contrast can be seen in Thailand, which recently announced plans to trim its 1.7-million-strong civil service by 5% to curb public spending for a population of 71 million.

In comparison, Malaysia maintains a public sector of 1.3 million civil servants for a population half that size. While differences in workforce definitions and reporting periods make a direct comparison imperfect, the figures raise legitimate questions about Malaysia’s public-sector staffing levels, wage bill and scope for greater efficiency.

If Thailand can commit to a 5% reduction, Malaysia can easily afford an 8% consolidation, particularly given how modern automation has rendered manual processing obsolete.

Today, essential transactions like utility payments, quit rent and municipal assessments are seamlessly managed online.

While the introduction of the goods and services tax (GST) in 2015 was a highly effective measure to arrest federal debt, its subsequent abolition in 2018 severely derailed fiscal consolidation.

Amid recent calls by certain parties to reinstate a pure GST framework rather than a hybrid model, the current administration should seize the opportunity to implement GST at a modest 5%, with clear exemptions for essential goods.

The rakyat expect more than just anti-corruption rhetoric; they require concrete structural measures to dismantle economic inefficiency.

All public contracts and major infrastructure projects must be awarded transparently through competitive open-market bidding.

Furthermore, a firm policy must be established to halt the unconditional bailing out of underperforming government-linked companies (GLCs).

Populist handouts become obsolete when state resources are managed efficiently. Capital wasted on artificial lifelines for failing GLCs should instead be channelled into building a robust economic foundation that naturally yields high-value job opportunities.

When domestic corporations thrive on merit, market forces will drive wage growth upward without direct state intervention.

Given Malaysia’s abundant natural wealth and favourable demographic scale, the nation possesses the latent capability to outpace its regional peers.

Achieving this potential hinges entirely on an educational framework that aligns human capital with an era defined by automation and artificial intelligence.

Consequently, reinstating the teaching of science and mathematics in English must be prioritised to cultivate a workforce equipped to lead on the global stage.

In a similar vein, GLCs must also transcend their reliance on protected state contracts and learn to compete aggressively in international markets.

Source: choose-lasting-gains-over-short-term-fixes

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