PENANG: Malaysia is strategically located and ready to seize the opportunity.

However, Malaysia remains trapped in a dilemma as Malaysians are not living in harmony, said renowned economist Tan Sri Andrew Sheng.

Malaysians lack confidence in their own country and the country is unable to break away from a series of issues — middle income trap, brain drain, depreciation of ringgit, increase in national debt, low wages and a decline in competitive edge.

Sheng is of the view that Malaysia can only change when its people are in good terms where they are able to achieve economic consensus on a common platform to express their views.

That will be the time for Malaysia to be out of the dilemma, the chairman of George Town Institute of Open and Advanced Studies said during a joint interview with Sin Chew Daily and three other Chinese newspapers under Media Chinese International Limited, and Singapore-based Lianhe Zaobao, at his Tanjung Bungah home.

Sheng is of the view that the US-China tension and the Russia-Ukraine war offered opportunity for Malaysia. The US-China tension has led to the outflow of investments from China to ASEAN, and Malaysia is one of the preferred destinations for investors.

The disruptive technological revolution, artificial intelligence and big data are key factors which provide opportunities for Malaysia to undergo transformation in economy, he said.

Given its strategic location in ASEAN — the fourth largest economy in the world thanks to its strategic geographic location in a non-war zone and rich natural resources — Malaysia is well positioned to benefit from such a shift.

All these would depend on whether our leaders are wise enough to seize the opportunity and capitalize on our strategic location.

Sheng feels that Malaysia, a multiracial, multi religious and multicultural country, is unable to avoid “quarrels” but divergent views are definitely good for the country.

In a sophisticated international landscape, Malaysia has to decide its own path, he said.

The path is not to be decided by one person or a specific race, but all Malaysians, he asserted.

Sheng is of the view that politicians should talk less and listen more for people to be able to achieve economic consensus.

The consensus will become the foundation for the people to live in harmony.

“It’s an option if the path chosen must comply with Islam or the Middle East. Is Middle East a successful economy? If it is, I agree with the approach, that is not a problem,’’ he said.

To Sheng, social problems do not originate from race or religion but inequality. Social inequality is a structural issue which is hard to address.

A simple rule would be to share the wealth you have, he said.

The right approach is to enlarge the economic pie, support the people to have higher income and provide more room for small and medium industries to help reduce social inequality, he concluded.