This article first appeared in The Edge Malaysia Weekly on February 4, 2019 - February 10, 2019

A body similar to the National Economic Action Council (NEAC) will be set up to hasten decision-making in economic matters, Prime Minister Tun Dr Mahathir Mohamad said last Friday. This is welcome news, given the lack of a clear economic strategy since the Pakatan Harapan government was formed.

The economy has been an area of concern since the 14th general election and the new government’s lack of a clear plan is obvious and worrying. An online survey by The Edge last December found that the economy and the cost of living were the top issues on the minds of the rakyat.

A vacuum in forward planning bodes ill for the economic prospects of the country. It is difficult to improve the lives of the people without a clear economic plan. This is despite a Ministry of Economic Affairs being set up for the first time in Malaysia’s history. Hopefully, this NEAC-like unit will result in a clear strategic direction for everyone to rally around.

Details are scarce, however. Recall that the NEAC was established in January 1998 in response to the Asian financial crisis, which eventually pushed the country into recession.

Its main role at the time was to expedite policy formation to ensure a swift response to the unfolding pressures on the economy. Twenty years on, a new mandate is clearly needed, given the vast changes that have since taken place. The role of the council is expected to be similar, with a focus on economic matters.

The next steps should be to unveil more details on how the council works and fast-track its establishment so that it can get to the business of driving the nation’s economy as soon as possible.

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