Report by SEDAR Institute

The recent turmoil in the financial market has a familiar ring. Whether it is the crash of 1987, 1997 or the unraveling of the dotcom mania, the world economy has grappled with a succession of financial crises over the past two decades. And yet, each time the global financial apparatus withstood the onslaught and, it would appear, come back stronger and more robust than before.

The global financial crisis, brewing for a while, has really started to show its true colours. Around the world, stock markets have collapsed, financial institutions have fallen or been bought out, and governments in the wealthiest of nations have had to doll out stimulus packages worth billion of dollars as the global financial meltdown affects everyone and anyone.

SEDAR Institute, together with Wawasan Open University ( WOU ) and the Centre of Public Policy Studies ( CPPS ) organized a forum on the Global Financial Crisis in Malaysia, with the theme Diverse Perspectives: Rethinking Strategies, Surviving Challenges on 10^th April 2009. More than 160 participants, including politicians, CEOs, civil society advocates, investment bankers and students attended this public forum which was held at WOU KLRO.

Khaw Veon Szu, the Executive  Director of  SEDAR Institute, in his welcoming speech, explained the main objective of the forum is to localize the crisis by relating it to Malaysia and creating awareness on its implications.

Our guest of honor, Y.A.Bhg Tun Dr. Lim Keng Yaik, in his keynote address, warned everyone on the severity of the crisis. He cautioned that Malaysia can no longer take comfort in its strong economic fundamentals as the nature of the crisis has created much distress to our export based economy. With global demand dropping, Malaysia being the third most export dependant economy in Asia will be severely affected.

Tun Lim also exhorted the government to be just and transparent in its implementation of the stimulus package because the future economic security and prosperity hinges on the ability of the nation to weather this crisis. He called on a participatory and consultative approach to governance.

The first panel discussion which included Dato’ Dr. R Thillainathan, Tan Sri Dr. Lin See Yan, Dato’ Dr. Michael Yeoh, and Datuk David Chua touched on the importance of a social safety net and the needs of every Malaysian must be considered and met. The panel also warned that the stimulus package should have been aimed at protecting jobs rather than creating new ones which will be challenging at best. Malaysia must now forge forward with special emphasis on ethical governance and answer the challenge of globalization by embracing the challenges and not move centrifugally. This session was moderated by Dato’ Mah Siew Keong, Gerakan National Vice-President and Central Economic Bureau Chairman.

The second panel discussion brought together Mohd. Hafiz Noor Shams, Paul Selva Raj and Tricia Yeoh. It was moderated by Gerakan National Youth Chief, Lim Si Pin. The panel propounded that Malaysia needs to examine new ways of governance and doing business and refrain from adopting the old ways of opaqueness once we get out of the crisis we find ourselves in. It is vital to recognize that there has to be a concerted effort by all parties to create a just, democratic and economically equitable society that does not exclude anyone. The panel also cautioned the government to be judicious in its spending and also warned consumers to spend within their means and not get trapped by debt. The people must be brave enough to change their ways of thinking, by open and taking responsibility for their actions, and the government must recognize this and appreciate the values of accountability and transparency.

In his closing remarks, Tan Sri Dr. Koh Tsu Koon, Minister in the Prime Minister’s Department advised all parties to take heed of the messages forwarded during the conference and make a real attempt to change for the better.