Malaysia’s Prime Minister Tun Dr. Mahathir Mohamad has announced the formation of Economic Action Council (EAC) to tackle the gripping economic issues the country is facing. Led by the prime minister himself, the EAC comprises of 16 members from the cabinet, public and private agencies and think tank leaders, as well as academicians appointed by the prime minister.
Formation of special bodies like EAC is not new in Malaysia, and Tun Dr. Mahathir assured that it should not become a concern to the public. Back in 1997 the premier had also set up a special economic committee to help Malaysia to overcome the Asian economic crisis at that time, which enabled the country to recover from the crisis at a faster pace compared to its neighbors in the region. Some of the previous economic committee members are also joining the current EAC.
Economists believe the move is timely, as it will help the government accelerate decisions for addressing many economic challenges, as the EAC can act as an advisory body to the cabinet. The formation of EAC will also facilitate the government to commence structural reforms, especially in reducing the government’s role in the economy and allowing greater degree of autonomy to the private sector, putting the government back in the seat of regulatory role with minimal interventions in industries and markets.
(Sources: The Edge Markets; Malay Mail)