By Liew Chin Tong, Kluang MP

Very few people understand the odd and peculiar structure of the Malaysian Cabinet. The economy is the most important part of modern governance – in fact, the real issues – yet the Malaysian Cabinet has almost no role in the deliberation of the economy. Most major economic matters are handled by the Economic Council (EC), also known as the National Economic Council (NEC).

The National Economic Council was first established on 30 July 2008 to deal with the massive negative impact of Prime Minister Abdullah Badawi’s ill-advised 4th June 2008 40-percent fuel hike.

On 26 May 2009, the then newly installed Prime Minister Najib expanded the role of the Council to further absorb the following Councils/Cabinet Committees into the National Economic Council:

1. National Implementation Task Force (NITF);
2. Cabinet Committee on National Competitiveness;
3. Cabinet Committee to Study the Impact of Rising Petroleum Prices on the Economy;
4. National Price Council;
5. Inflation Control Council:
6. Cabinet Committee on Investment; and
7. Cabinet Committee on Public Transportation

Today, most major economic decisions are made at the Economic Council level, which usually meets on Monday, with Cabinet “rubber-stamping” the EC decisions on its Wednesday meetings. The Cabinet no longer deliberates on economic matters.

In view of MCA and Gerakan’s “grand entry/return” to the Cabinet, one of the earliest actions Liow Tiong Lai must pursue is to demand a seat in the real “Cabinet” which decides on economic matters, which is the Economic Council. Likewise, leaders of Gerakan, MIC, PBB, PBS, PBRS, PRS, SUPP and UPKO should also demand a say in economic matters.

The long term solution is for Prime Minister Najib Razak to adopt the suggestion of DAP Parliamentary Leader Lim Kit Siang to create a 20-person Cabinet to govern collectively on all matters, economic matters included. The rest of the junior ministers will report to the Cabinet ministers.

According to the website of the Economic Planning Unit (EPU) on 3rd January 2014, the members of the National Economic Council are
1. Najib Tun Abdul Razak – Economic Council Chairman, Prime Minister of Malaysia

2. Haji Muhyiddin Mohd. Yassin, Deputy Prime Minister of Malaysia

3. Abdul Wahid bin Omar, Minister in the Prime Minister’s Department

4. Mustapa Mohamed, Minister of International Trade and Industry

5. Ahmad Husni Mohamad Hanadzlah, Minister of Finance II

6. Sri Idris Jala, Minister in the Prime Minister’s Department/CEO of PEMANDU

7. Dr. Ali Hamsa, Chief Secretary to the Government of Malaysia

8. Dr. Zeti Akhtar Aziz, Governor, Bank Negara Malaysia

9. Dr. Mohd Irwan Serigar Abdullah, Secretary-General of Treasury

10. Dr. Rahamat Bivi Yusoff, Director-General, Economic Planning Unit, Prime Minister’s Department

11. Datuk Yong Poh Kon

12. Nik Azman Nik Abdul Majid – Head of Economic Council Secretariat‎

In November 2010, after I raised the issue, the then MCA president Chua Soi Lek was appointed into the National Economic Council. I expect Liow to also demand a seat in the real Cabinet – the Economic Council.

But for the long-term good of the nation, all key political leaders in the governing coalition from Gerakan, MIC, PBB, PBS, PBRS, PRS, SUPP and UPKO should all be included in the deliberation of economic matters at the Cabinet level. It’s time for the Prime Minister to reorganise the Cabinet to include all voices in the deliberations of the real issues.