KUALA LUMPUR: The economic policies proposed by Barisan Nasional (BN) in its manifesto get the thumbs up from the Institute for Democracy and Economic Affairs (Ideas) but the coalition loses points for the suppression of civil liberties.

The economic policies proposed are welcomed for continuing to empower small and medium enterprises (SMEs) and strengthen and diversify economic sectors, the think tank said.

However, Ideas is critical of the lack of reforms to address rising personal debt levels or reduce the negative impacts of the government’s large role in the economy.

“Those policies that are intended to uplift local SMEs should be commended because 97% of business establishments in Malaysia are SMEs, and they contributed at least 36.6% to the national gross domestic product in 2016.” Ideas economist Adli Amirullah said.

BN is promising to provide tax incentives and special development funds to help leading brands to assist small entrepreneurs, provide better infrastructure and platforms for local SMEs, promote rural youth entrepreneurs, and encourage innovation among SMEs, Ideas said in a statement.

Adli also applauds BN’s plan to invest and strengthen economic sectors other than the manufacturing and services sectors. “It is important to promote non-mainstream industries like the agricultural, technological, creative, forestry and halal industries.

However, Adli also expressed reservations over certain promises on economic policy that are less convincing.

“I am disappointed that the government is not putting a sunset clause in the Price Control and Anti-Profiteering (PCAP) Act. In fact, BN is promising to amend the act to extend the authority of the ministry of domestic trade, co-operatives and consumerism to act against over-profit traders,” he said.

“This is not a good economic policy, and BN needs to accept that the PCAP Act is an anti-market policy that will backlash against the economy in the long run.

Ideas appreciated the positive social policies that seek to improve the welfare of the vulnerable B40, women and indigenous people categories. However, questions are raised over how all these promises can be funded sustainably, the statement said.

Further, the think tank expressed concern that the government continues to encourage the suppression of freedom of speech and privacy.

First published in The Edge Financial Daily, on April 12, 2018.