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Time for protection over, get used to it, says Najib
By Lee Wei LianKUALA LUMPUR, Feb 8 — Malaysians must face new global realities and accept increased competition and removal of subsidies, said Prime Minister Datuk Seri Najib Razak today.
He said today that subsidies for industries must be restructured and gradually phased out to promote private investments.
“Giving freer rein to private initiative and market forces... has important consequences,” he said in a speech at an economic conference.
“We may not be able to afford over-subsidised and under-priced energy,” Najib added.
Subsidies make up about 2 per cent of Malaysia’s gross domestic product with the country expected to spend RM21 billion this year on fuel, gas and food subsidies.
Najib noted that the China-Asean Free Trade Area (CAFTA) that took effect in January would pose challenges to the country but that the nation would just have to adjust.
“CAFTA will challenge all Asean economies to structurally adjust and adapt and Malaysia is no different,” said Najib at the opening of the 1 Malaysia Economic Conference organised by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).
“The private sector will need to raise its game in terms of being more efficient abd hone its ability to exploit opportunities presented. CAFTA offers Malaysians unique prospects to export and expand their business.”
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