By Lee Heng Guie

With the formation of Perikatan Nasional (PN) cabinet, here are 10 things related to the economy and business we would like to see the new government do.

The gathering perfect storms are clouding the global economy and their economic consequences on Malaysia are expected to be more damaging than expected.

1. Putting national and rakyat interest above everything else

The government needs to be proactive and predictive, not reactive and firefighting as well as politicking as it distracted the focus and resources of managing the economy. The public-private partnership is crucial to mutually protect and reinforce each other.

2. Reassure investors and businesses on policy continuity

The changing of the political guard is considered important for businesses and investors because of its implications for change in public policies. New policies were often introduced with retrospective effect.

Businesses and investors want 3Cs (Clarity, Consistency and Continuity). While we reckon that the new government would change policies that need changing, it must protect investors who have already invested on the basis of existing policies.

More importantly, sufficient public and industry engagement is a must before the implementation of public policies so as to avoid policy flip-flops as it hurts businesses and worrying investors. There is the need to engage all relevant stakeholders and conduct a regulatory impact assessment on cost increases.

3. Swift implementation of the RM20bn economic stimulus package

Time is of the essence. The ministries and government agencies must accord priority to implementing and accelerating the execution of Budget 2020 and the RM20 billion economic stimulus package (ESP). If the needs arise, the ESP can be enhanced and increased but must have the capacity to execute.

For the concessionary interest rates financial facilities as well as the payment moratorium, including restructuring and rescheduling loans for affected businesses and individuals, Bank Negara must ensure that the approval process is fast and quick disbursement of funds as well as to keep close tab on all financial institutions that they will assist all companies in need without exception.

4. Economic, institutional and political reforms

The new government must continue to implement economic, institutional and political reforms, including fiscal discipline, political stability and institutional quality.

Malaysia's institutional quality must be strengthened further with a wider implementation of open and competitive tender, fiscal transparency, anti-corruption measures and institutional reform measures to promote accountability and fiscal responsibility.

The PH government's fiscal priorities to enhance a sound and fiscal discipline, including the Government Procurement Act and Fiscal Responsibility Act must be pursued to curb excessive debt-based spending.

5. Broad-based tax reforms

Malaysia needs to strengthen and enhance the tax revenue buoyancy which measures the efficiency and responsiveness of the revenue in response to economic growth or an increase in income. Make reference to the recommendations as proposed in the tax reform committee (TRC), and to consider the introduction of the goods and services tax (GST) to broaden tax revenue base and hence reduce the government's revenue vulnerability against the fluctuation of oil prices.

Malaysia's high presence of shadow economy (21% of GDP or estimated RM300 billion) calls for the deployment of strategies and initiatives to plug tax leaks and augment revenues.

In ensuring tax compliance, the new government should and must not come down hard on tax evaders, but it should codify existing tax reforms and ensure that honest taxpayers aren't harassed.

Taxpayers will fulfill the fiduciary duty of paying taxes if they are convinced that the tax money is being utilized accountably for productive economic development.

6. Job creation, housing and healthcare

Creating more and better quality jobs is key to boosting growth, reducing income inequality and increasing social cohesion. Job creation requires a stable macroeconomic framework coupled with structural policies that encourage innovation, skills and business development.

Affordable public and private housing remains unresolved despite many years of deliberations. Access to comprehensive, affordable and quality healthcare services is important for promoting and maintaining health equity for all Malaysians.

7. Give a big push to investment

The new government must continue with untiring efforts of the PH government to re-energies both domestic and foreign investments through giving policy clarity and a clear direction on where Malaysia is heading. Many plans have been crafted and rolled out, but what matters most is to execute the policies and initiatives without delay. Walk the talk.

8. Staying out of business

The new government should stay out of the business, which it is better managed by the private sector. Constructive reforms of GLCs to make them more commercially viable. Government should focus its limited resources and time to matters of governance and of public concern.

If the government would just get out of the way by curtailing cronyism, corruption and rent seeking, eliminating unnecessary and burdensome regulations, and eliminating other layering and interventions, this would not disrupt and hinder private sector to thrive and businesses' development.

9. Foreign workers management

Too much productive time and resources have been wasted on finding a workable solution to address the hiring of both documented and non-documented foreign workers.

It's high time to press the "reset" button on the management of foreign workers. We must have a clear state of guidelines so as to formulate the right policies in the hiring of foreign workers.

10. Go green, innovation and digitization 

The new government should place more emphasis on the environmentally friendly sustainable development, drive innovation and digitization towards Industry 4.0.

The innovation and digitization ecosystem for workforce and businesses must be enhanced through new skill sets, digital technology adoption and conducive facilitation support as well as smart public-private partnership.

(Lee Heng Guie is senior economist and executive director of Socio-Economic Research Center, a private think-tank set up by the Associated Chinese Chambers of Commerce and Industries of Malaysia.)