Monday, March 17, 2008

Fund managers hopeful of changes in govt policy-making processes

TheEdge

KUALA LUMPUR: Fund managers and institutional investors are hoping to see positive changes in the policy-making processes of the new Cabinet, which could be announced as early as Monday.

CMS Dresdner Asset Management Sdn Bhd’s managing director Scott Lim said Prime Minister Datuk Seri Abdullah Ahmad Badawi could appoint new faces to the Cabinet but it was more important to look at the policies implemented by the new line-up.

“Even if they put up new faces, they can behave in the same old way. I am not putting much expectation on the (new) Cabinet line-up. At the end of the day, it is what they do,” he told The Edge in a telephone interview yesterday.

Lim said the government should make some drastic changes to ensure it would come up with policies that serve the interest of the people rather than enriching an elite group.

In the past, the government’s image was battered when it failed to tackle issues such as the granting of approved permits to parties linked to politicians and the Port Klang Free Zone controversy, he added.

“Who runs the government does not matter to me. It is whether the government can make good decisions. It is as simple as that,” Lim said.

Asked what would happen if the new Cabinet line-up failed to win the people’s confidence, he said: “That was what got the government into trouble the last time.”

Lim said it would not be sufficient for Abdullah to just replace one or two ministers as the Cabinet had a collective responsibility.

“Last time, the people were expecting him (Abdullah) to make some changes. He didn’t and the people voted differently,” he said, adding that the people would also be looking at whether Abdullah would make any changes this time.

Lim also recognised that Abdullah would be torn between retaining experienced ministers who may have integrity issues and welcoming inexperienced people who lack track record.

Meanwhile, MIMB Investment Bank Bhd’s head of research Pong Teng Siew expects to see major changes in the Cabinet line-up. He said it could be positive if the new ministers could come up with new ideas.

“It will be good to see some technocrats joining the government. Someone who is not a politician, someone at the lower level of the party but has the competency to oversee a ministry,” he said.

Pong also said the government should consider reviewing its policy of consultation behind closed doors as some people may feel their representatives were not voicing up their concerns.

Citing the example of incoming Selangor Mentri Besar Tan Sri Khalid Ibrahim’s policy of giving progress report to the people, he said it could be useful if the new federal government could give similar feedback.

“All these are useful ways of keeping the public informed. If they are not informed, they will assume that things were not done,” he added.

On improving the bureaucracy, Pong said the new Cabinet could adopt a culture of continuous improvement and pay more attention to the workflow.

Recognising that there has been lot of improvement in departments such as immigration and national registration, he said the government should pay more attention to other departments.

In general, Pong reckoned that the government could only improve with the stronger opposition now.

“Don’t look at it negatively. The BN is still in power, so there will still be continuity in policy and with a little push on BN to work harder, it will be better for everyone,” he said.

Pong said while there should be some changes, they should not be too drastic, as the stock market preferred a degree of continuity and predictability.

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