By Danial Dzulkifly
SHAH ALAM, Dec 5 — Former Bank Negara Malaysia governor Tan Sri Muhammad Ibrahim today proposed a comprehensive strategy for Selangor’s economic transformation, advocating for the creation of a dedicated state statistics bureau, an economic advisory council, and a sovereign wealth fund.
Speaking at the Dialog Shah Alam event, he said Selangor should leverage its unique economic landscape through targeted, data-driven approaches.
“The thing about data is you can actually respond very quickly to rotational changes,” Muhammad, who is also Universiti Selangor (Unisel) pro-chancellor, said in his lecture at the Unisel campus here.
“For instance, economic and demographic landscapes are constantly evolving. A local bureau can be more agile in responding to these challenges, providing competent support for quick policymaking.
“In the event of a localised economic downturn or natural disaster, a dedicated bureau can quickly gather data to assess the impact and inform strategies. At the same time, state data can complement national data.”
He added that a state statistics bureau should be able to collect better granular data compared with its federal government counterpart.
Muhammad also said creating an advisory council composed of the state’s successful entrepreneurs would add value to Selangor, similar to practices in other successful states abroad.
“Selangor is the birthplace of many millionaires and billionaires. Why not ask them to help with policies? We don’t need to pay them.”
“The council can also enhance coordination and collaboration. It is centred around boosting investor confidence because they know Selangor’s economic advisors are people of stature, and this is very important.
“Selangor has many privileges that other states don’t have, and one of them is the source of advice,” he said.
[caption id="attachment_382328" align="aligncenter" width="1200"]
Dialog Shah Alam attendees listen to a lecture by Bank Negara Malaysia ex-governor Tan Sri Muhammad Ibrahim at Universiti Selangor’s Shah Alam campus on December 5, 2024. — Picture by NUR ADIBAH AHMAD IZAM/MEDIA SELANGOR[/caption]
On his proposal for a state-owned sovereign wealth fund, Muhammad said it could help generate returns on state assets meant for long-term growth.
“For example, the fund can be invested in renewable energy projects, technology startups, and infrastructure development, among others, generating both financial and real estate growth.
“Selangor runs its finances quite well, but we need a stabilisation fund because economic cycles always fluctuate. If we have such a fund, we can use it to stabilise economic growth in Selangor.”
The second edition of Dialog Shah Alam was held today, with the first edition having been held in 2019. It was halted during the Covid-19 pandemic.
Menteri Besar Dato’ Seri Amirudin Shari expressed hope that the dialogue would become an annual event, bringing in experts to address critical and contemporary issues affecting the state and nation.
Also present were state executive councillor for Islam and innovation Dr Fahmi Ngah, Darul Ehsan Institute executive director Prof Emeritus Datuk Mohammad Redzuan Othman and Selangor Research Institute director Ammar Gazali.
