Dr M: High-cost economy can benefit Malaysia

KUALA LUMPUR: Tun Dr Mahathir Mohamad has proposed that Malaysia adopt a high-cost economy similar to developed countries to elevate the wages of its people.
The former prime minister, in explaining the concept, rationalised that given an increase in the prices of goods, invariably the wages of the rakyat would be forced to spiral upwards.
“It is very strange to put such a notion into context, but think of it from a broader perspective.
“For example, generally developed countries are high-cost countries, and yet they are competitive and their standards of living are without exception higher than in low-cost countries,” he surmised.
Dr Mahathir said that given a rapid and constant exchange of money, via spending, the economy would definitely improve.
Given this reason, he said that adjusting and managing a high-cost economy should be taken into consideration by the present government.
Other possible benefits included a narrowing of the poverty line and attraction of investments domestically and from foreign markets, he added.
Dr Mahathir was speaking during a lecture series titled “Approaching 2020 – Major Trends that will Impact Malaysian Business” here yesterday, organised by the Perdana Leadership Foundation.
He later also accommodated a question-and-answer session with participants.
The former premier's wife, Tun Dr Siti Hasmah Mohd Ali, earlier also launched a book titled Mahathir Mohamad – An Illustrated Biography, which candidly records Dr Mahathir's life events in comic strips.

tunku : i think tun is right.whether the time is now i'm not quite sure. high cost economy like singapore can still progress, so we don't see why we can't. we are more blessed, we have natural resources and manpower to do so.right now the goods price had increased tremendously but the salary is still very very low. can't wait to get the latest book on tun, hope the bookshop are selling them now.