KUALA LUMPUR – Prime Minister Datuk Seri Anwar has criticised the hypocrisies of unfettered capitalist economic systems which supposedly call for governments to not interfere in business affairs, but at the same time expect them to bail out corporations such as banks and insurance companies which are “too big to fail”.
While governments should not allow capitalism to go unreined, Anwar also cautioned against interventionist policies dictated by short-term pressures and political expediency.
“To my mind, no matter how you slice it, this approach looks very much like socialism for the rich and capitalism for the poor,” Anwar said in his keynote speech at the Khazanah Megatrends Forum 2024 at the Mandarin Oriental Hotel today.
Instead, he suggested a “humane economy for social justice” where sustainable economic growth is achieved by productivity, coupled with government investment toward human capital development via education and healthcare.
However, Anwar said that despite his opposition toward total capitalism, he said governments should not be reactionary and give in to populist demands. He said political leaders must be ready to make politically unpopular decisions for long-term benefits.
“This is exactly what this government did last May when we decided to implement the diesel subsidy rationalisation plan.
“Rather than taking the safe course of merely paying lip service while being frozen in action, as previous governments had done, we had to summon firm political courage to take this course of action at the risk of being unpopular.
“If we had chosen to play safe and do nothing, knowing that the continued situation would only take us on the road to bankruptcy, then that would be a dereliction of the moral duty of good and responsible governance,” Anwar said.
Nevertheless, although such decisions may have caused political mileage for his administration, the prime minister clarified that every day Malaysians continue to enjoy subsidies while big industries would have to start paying what they should.
Additionally, Anwar noted that such economic principles would prepare Malaysia to face global volatility.
Further, the Tambun MP hopes such policies will be reflected in Malaysia’s chairmanship of Asean next year, as the country is prepared to lead the bloc with a vision of unity, inclusivity and collaboration.
“Recent geopolitical divisions threaten the stability of our region, but through shared leadership and a policy of strong neutrality, we can overcome these challenges.
“And we may go beyond Asean – as we explore partnerships with Brics, which will deepen global south relationships.
“We reiterate the paramount importance of adhering to a rules-based order, regionally and internationally but we reject the hypocrisy and double standards observed by those when it suits them,” Anwar said. – October 7, 2024