Issues Faced by Malaysians and Ways to Overcome Them

1. High Cost of Living

One of the main issues facing Malaysians today is the high cost of living. This problem arises primarily due to demand outstripping supply. To address this, the government should focus on increasing the supply of essential goods and services.

Solution: Relaunch the Buku Hijau 2.0 Initiative

To engage the public and boost the supply of food, the government should relaunch the Buku Hijau (Green Book) 2.0 initiative. This program can encourage citizens to participate in agriculture, promoting self-sufficiency in food production. Additionally, agriculture and food agencies, along with government-linked companies (GLCs), should be directed to get involved in food production. Setting clear KPIs for these entities can ensure they contribute effectively.

Incentives for Private Agropreneurs

Alongside governmental efforts, providing incentives to private agropreneurs can spur the production of food resources until the country becomes self-sufficient. The ultimate goal should be to reduce and eventually stop food imports.

Regular Monitoring

To ensure the success of these initiatives, they must be monitored at every cabinet meeting. This will push ministers and government officials to work diligently towards achieving these goals.

2. Unemployment, Especially Among Graduates

Unemployment, particularly among graduates, is another significant issue. Employment opportunities are closely tied to industry demands. Therefore, the government must decide which industries Malaysia should focus on for future sustainability.

Focus on Strategic and Emerging Industries

For long-term sustainability, Malaysia should prioritize several strategic and emerging industries such as:

• Agriculture for food
• Tourism
• Maritime
• Electronics and Electrical (E&E)
• Analytics (AI, IoT, etc.)
• Aerospace

Preparing Talent

Relevant institutions, including universities and polytechnics, must be directed to prepare the necessary talent to support these industries. This can ensure a steady supply of skilled workers ready to meet industry demands.

Aggressive Industrial Engagement

The Ministry of International Trade and Industry (MITI) should aggressively facilitate foreign direct investment (FDI) and engage with existing industries. Annual industry dialogues can help address issues and foster a stronger relationship between the government and investors. Ministers must be courageous and proactive in facing investors and industry leaders.

3. High Housing Prices

The exorbitant prices of houses in Malaysia can be attributed to speculation in the real estate market. Many houses remain unsold, yet prices do not fall, contradicting normal economic principles.

Controlling Speculation

Speculation must be controlled to stabilize housing prices. GLCs should focus on building and selling houses at reasonable prices, rather than selling land to contractors who then determine prices based on their costs and desired profits. This leads to inflated prices that burden buyers.

Economic Parameters for Pricing

House prices should not be determined solely by market forces but should be based on economic parameters such as disposable income, bank facilities, and interest rates. Typically, the repayment for a house loan should not exceed one-third of the borrower’s gross income. For example, if a fresh graduate earns RM3,000 per month, their monthly repayment should be around RM1,000. Over a 25-year loan period, the house price should not exceed RM300,000.

Government Intervention

Immediate government intervention is necessary to address this issue. GLCs should be directed to build houses based on these parameters rather than selling land in bulk to contractors. This approach can help GLCs develop their own capacity and capability in the housing market.

4. Governance

Poor governance often stems from an education system that fails to produce ethical and responsible individuals. As Prof. Syed Naguib Alatas stated, “Universities must produce good men.” Therefore, schools and universities should place a greater emphasis on moral values and ethics. While knowledge and competency can be supplemented by tools like AI and ChatGPT, human governance is crucial.

Digitalisation and Decarbonisation

The government must move fully towards digitalisation and decarbonisation. A cashless society, where all transactions are traceable, can significantly reduce corruption. By ensuring transparency and accountability, we can create a more ethical and efficient governance system.

Conclusion

Addressing the high cost of living, unemployment, high housing prices, and governance issues requires a multifaceted approach involving government intervention, strategic planning, and public participation. By implementing the proposed solutions, Malaysia can overcome these challenges and build a more prosperous and sustainable future for its citizens.