"It's the red tape, the administrative hurdles, the intransparent (business registration) processes...Our members are 80% SMEs. They're very risk averse, very sensitive to changes and risks in their environment." - Daniel Bernbeck, CEO of the Malaysian-German Chamber of Commerce and Industry (MGCC) listing the concerns of German companies that Putrajaya should address to ensure Malaysia remains Germany's top trading partner in ASEAN. With more than 700 German companies doing business in Malaysia, Daniel highlights 4 key areas where Putrajaya should improve to strengthen business ties with Germany - and keep foreign direct investment flowing into Malaysia. 1. Make business easier to conduct Bernbeck thinks Malaysia has come a long way in streamlining registration and renewal processes for new and existing German companies to do business in the country. But he urges Putrajaya to cut the administrative hurdles and red tape that German companies still have to deal with. "Malaysia has come a long way to also look at Singapore to see how they do it. But still, companies face issues. Sometimes they don't understand why things aren't moving, why they don't get replies to their e-mails, why there's nobody picking up the phone, why applications are rejected without reason. The only thing we can tell them is, 'just reapply', and then they reapply with the same documents and it gets approved. So it looks like it's not really predictable, not really transparent," Bernbeck observes. 2. Ensure English proficiency among the workforce The MGCC CEO cites Malaysia's system of law as an advantage that allows German companies to easily navigate business regulations. "What Malaysia has to offer are fundamental aspects that are really positive...(such as) a common law system that Europe is familiar with. And that's not the case with competitors like Indonesia, Thailand, and Vietnam. German companies and investors in Vietnam are reporting difficulties with understanding the rule of law in the country," Bernbeck noted. On the flipside, he says that the government should invest in boosting English proficiency among the population to attract and facilitate business with foreign investors. "Malaysia should put a lot of focus on keeping up good English language command in the population, because that is absolutely crucial for being competitive, being approachable and open to foreign investors," he stresses. 3. Improve digital infrastructure Bernbeck goes on to add that Malaysia needs to strengthen its digital infrastructure, especially in areas like internet connectivity. "Of course, infrastructure (is important) - (like) 5G. We have to be stronger and faster in internet connection. In Malaysia it's strong, but it needs to stay strong and go into the next generation of internet infrastructure." 4. Properly equip the workforce with the necessary experience Finally, Bernbeck urges Putrajaya to focus on upskilling Malaysia's workforce, especially in terms of vocational training. While the government has invested RM6 billion in the national Technical and Vocational Education and Training Program (TVET), he argues that it falls short of equipping fresh graduates with the practical skills they need. "(TVET is) mostly a train and place (model). They're being trained offsite, somewhere in a school. They have no idea what real work looks like, they haven't been part of a workforce. They look at the door of a factory, and they're asked 'what do you know?' Then they hold up a certificate, but they have to start from zero," says Bernbeck. He adds that MGCC is willing to help Malaysians upskill through its own program, given that many local businesses are reluctant to train their employees due to cost concerns. However, he says that Putrajaya is unwilling to bear the cost for MGCC's initiative. "Our model is cheaper for the government (versus TVET). But they haven't been willing to invest a single dollar into it. Our program has been proven much more successful when it comes to high quality, high tech, forward looking, and Industry 4.0 jobs. So participants are mostly (foreign) companies. The majority of (Malaysian) SMEs aren't tapping into it, because it's simply costly for them," Bernbeck shares. Listen to the full podcast with Daniel Bernbeck below. Written by Hezril Asyraaf, edited by Shawn Tanis and Sara Kok.

“There’s almost a panic in India,” Dr Pradeep Taneja explains on the Morning Brief.  More than 20 million COVID-19 cases, over 200,000 deaths, drug and oxygen shortages, overpacked crematoriums—the COVID-19 crisis in India is reaching a breaking point. So how did it get this bad, and in the pharmacy of the world, no less? And what are some of the potential consequences?  Dr Taneja, senior lecturer in Asian Studies at the University of Melbourne, shares the causes and consequences of this crisis.  MAIN CAUSES > Public complacency India actually fared relatively well last year. In July the country reached 1 million COVID-19 cases with around 25,000 deaths. Compare that to countries like the US and Brazil, which reached the same milestone with nearly 50,000 fatalities. And despite a spike in September that saw new daily cases exceeding 90,000, that number had fallen to less than 10,000 by February this year.  But things took a turn for the worse when - much like the rest of the world - pandemic fatigue took hold, and SOP compliance became lax. People gathered in large social settings, contributing to increased transmission rates. Consequently, higher infections gave rise to more potentially harmful coronavirus variants, such as B.1.617. As Dr Taneja put it: “A complacency set in, a lot of people felt that ‘okay, this is almost over, we’ve overcome it’, and compared to other countries, India’s fatality rate was relatively low.”  > Challenges to mass vaccinations Only 9.4% of the population has received at least one vaccine dose, and  Dr Taneja thinks the mass vaccination rollout is too slow. He attributes this to the huge logistical challenges in developing capacity to vaccinate at a faster rate. This includes training enough healthcare workers, and setting up ample space to safely inoculate citizens.  Vaccine hesitancy has also contributed to delays. AstraZeneca comprises a huge bulk of India’s supply, and concerns over the vaccine’s rare side effect of blood clotting are dissuading many from getting a jab. Separately, large swathes of the population are opting for traditional forms of medicine to protect themselves, in place of inoculation. CONSEQUENCES > Economic progress derailed? Though it’s too early to tell in hard numbers, the current spike in COVID-19 cases will significantly affect India’s economy. Many of the highest transmission rates have occurred in India’s industrial and commercial hub, Maharashtra state, and this is expected to slow down business. Its capital, Mumbai, also depends on a large number of local migrant workers to support the city’s businesses, and many of them have left for their hometowns.  On the whole, societal growth is in jeopardy. Last year alone, a Pew Research study found that 75 million people across India fell into poverty. That same study also reported that the middle class shrank by 32 million people. > Teflon Prime Minister, no more Narendra Modi has been labelled a “Teflon prime minister” for successfully deflecting criticisms over his failure to create new jobs, and his radical agenda to champion Hindu supremacy. But as the pandemic overwhelms India’s healthcare system, and the number of deaths rise, the BJP leader is quickly facing sustained public backlash. Politically, the cracks have started to show, as Modi’s party recently lost the crucial state election in West Bengal, which many see as a referendum on his handling of the pandemic.  Written by Hezril Asyraaf and edited by Lee Chwi Lynn.   To listen to the full conversation on the situation in India, check out the Morning Brief podcast below, which features Dr Pradeep Taneja, Senior Lecturer in Asian Studies at the University of Melbourne.

In March 2021, the World Bank Group predicted that Malaysia would likely become a high-income economy between 2024 and 2028. Putrajaya welcomed the move as a confidence booster to achieving developed country status. But for Geoffrey Williams, Professor at Malaysia University of Science and Technology, high income should not be the defining marker for economic progress. The Morning Run asked the economist what key markers policymakers should consider when assessing Malaysia’s development. Here’s what he thinks the government should prioritise: 1. Income distribution, not just income levels While income levels are an important gauge of socioeconomic progress, distribution is just as crucial. Williams says, “We don’t want to have an economy where on average income is very high, but most of our income is in the hands of a very small group of billionaires, and the mass of the population is very poor.” This could lead to inequities across social groups, especially if areas like healthcare, education, and living conditions are neglected. 2. Underemployment  “The real issue isn’t the headline figure for unemployment, the real issue is underemployment,” Williams points out.  While many Malaysians have lost their jobs, a lot have also been forced to take up semi-skilled and low-skilled jobs that don’t  guarantee a stable income. According to the latest data from the Department of Statistics Malaysia, 1.89 million people are now underemployed—that’s 37.4% of employed persons with a tertiary education. Williams also warns that if data on underemployment isn’t captured, segments of society may be excluded from social policies that address welfare and development. 3. Potential growth rate While some government forecasts are optimistic about Malaysia’s economic growth, policymakers should be wary of the underlying situation. Bank Negara recently estimated that the COVID-19 pandemic slashed the country’s potential growth rate from 4.8% to 3.5%.To address this, Williams urges the government to create more opportunities for the economy to generate growth, via new startups, business scale-ups, and new jobs that are resilient to technological change.  What other economic indicators should policymakers prioritise to strengthen Malaysia’s growth trajectory? Tweet us @BFMRadio and check out the full Morning Brief podcast below. Written by Hezril Asyraaf and edited by Lee Chwi Lynn.