In a parliamentary reply dated 14th of August 2020 to a question by Kluang MP, Wong Shu Qi, one of the “achievements” of the MITI Minister, Azmin Ali, was his claim to be a MITI “Icon” among the media.
Based on his performance in his first 100 days as MITI Minister, I fully support the claim that Azmin Ali is indeed a MITI “Icon” but for all the wrong reasons. The following “achievements” are why Azmin Ali should be considered as the “Icon” for the worst MITI Minister in Malaysia history.
1) Largest fall in total trade over the past 20 years in May 2020
Malaysia’s total trade fell by a record 27.8% from RM159.2 billion in May 2019 to RM114.9 billion in May 2020, the largest fall in total trade for Malaysia over the past 20 years. Even during the 2008 global financial crisis, the largest fall in monthly trade was 17.8% in August 2008. 2nd Quarter Trade fell by 14.7% from RM460.5 billion in 2019 to RM 393.0 billion in 2020.
2) First monthly trade deficit in April 2020 since 1998
Under Azmin Ali’s leadership, Malaysia also experienced our first trade deficit of RM3.63 billion in April 2020, the first trade deficit since the 1998 Asian financial crisis. Since 1998, Malaysia has experienced 269 consecutive months of a trade surplus that was halted in April 2020 shortly after Azmin Ali became the MITI Minister.
3) 33% Decline in Manufacturing Sales in April 2020
Under Azmin Ali’s leadership, Malaysia experienced a 33% decrease in manufacturing sales, from RM113.1 billion in April 2019 to RM75.8 billion in April 2020. Manufacturing sales drop by 16.5% from RM337.6 billion in Q2 2019 to RM281.9 billion in Q2 2020.
4) 32% Decline in the Industrial Production Index (IPI) in April 2020
The Industrial Production Index (IPI) fell by 32% from 112.4 in April 2019 to 76.5 in April 2020, an unprecedented drop in Malaysian history. The IPI also fell be 21.6% and 0.4% in May and June 2020, respectively. For the 2nd Quarter of 2020, the IPI fell by 17.9%.
5) MITI website crashing during the early part of MCO when thousands of companies were logging in to get into the system for approvals to operate
Much of this fall in trade, manufacturing sales and industrial production took place during the first phase of the MCO. But Azmin could have lessened the impact of this fall by demonstrating leadership at MITI during this time. Instead, he failed to plan properly for the MCO and the MITI website crashed a number of times as thousands of businesses tried to access the site to apply for approvals to operate during the MCO as part of the essential sector.
Source: https://www.malaysiakini.com/news/520341
Source: https://www.nst.com.my/news/nation/2020/04/583874/miti-website-inaccessible-due-heavy-traffic
Source: https://www.themalaysianinsight.com/s/237406
6) Premature announcement of reopening of the economy in early May without proper preparation
After shutting down most of the economy without the proper preparation, the PN government, led by Azmin Ali, wanted to reopen the economy again in the middle of April 2020. Unfortunately, Azmin made the announcement without proper preparation and consultation. He was supposed to brief the state governments including in Selangor and Penang but this never took place. And of course, who can forget the announcement of the reopening of hair salons and barbers without the proper SOPs in place which led to a public backlash including from barbers themselves. Even the Director General of Health did not approve of the reopening of barber shops and hair salons then. This is a concrete demonstration of the “iconic” failure of Azmin’s economic leadership during the MCO.
Source: https://www.malaysiakini.com/news/520229
7) Nearly 100% fall in automotive units sold in April 2020. Projected Total Industry Volume (TIV) for automotive vehicles decreased from 500k to 400 for 2020
Source: https://www.nst.com.my/business/2020/04/588486/maa-trims-2020-car-sales-forecast-33pct-400000-units
8) Seemingly supportive the CPTPP as MITI Minister after objecting to it as the Minister of Economic Affairs (MEA)
When Azmin Ali was the Minister of Economic Affairs under the PH government, he was one of the staunchest critics of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). But once he switched his portfolio to the MITI Minister, he suddenly changed his tune to be more supportive of the CPTPP and even saying that the PH cabinet had agreed to ratify the CPTPP in 2018.
Source: https://www.theedgemarkets.com/article/malaysia-has-not-rejected-cptpp-%E2%80%94-azmin
This led to former MITI Minister and my colleague, Darell Leiking, issuing a clarification statement on the cabinet’s decision on the CPTPP.
Source: https://www.malaysiakini.com/columns/537362
This kind of flip flopping and u-turning seems to be the typical behaviour of Azmin Ali. His actions are not based on any principled position but on political ambition and expediency.
9) Forgetting about collective responsibility with regards to his time as a PH Cabinet Member
During this time in PH as the Minister for Economic Affairs, he defended the position that BN had contributed to Malaysia’s total debt value at RM1 trillion.
But when he switched over to PN, suddenly the figures which he defended as PH Minister were “spins and lies”. He conveniently forgets that he was part of the PH cabinet (as was Tan Sri Muhyiddin). The principle of collective responsibility in government also seems to have been forgotten by Azmin (despite his reminder to me about this principle when replying my question on the CPTPP in parliament).
10) Taking credit for the work of others
His final “iconic” achievement as MITI Minister would be to take credit for the work of others. For example, a total of RM37.4 billion worth of investments have been approved in the manufacturing, services and primary sectors in the first quarter of this year. Of this total investments approved, RM26.3 billion or 70.4% was contributed by direct domestic investment (DDI), while RM11.1 billion or 29.6% came from foreign direct investment (FDI). Much of the work done to attract this FDI and to strengthen the DDI was under the PH government. But Azmin, true to form, took credit for the Investment figures in Q1 2020.
Source: https://themalaysianreserve.com/2020/07/17/rm37-4b-worth-of-investments-approved-in-1q20/ and https://www.theedgemarkets.com/article/malaysia-records-rm374b-approved-investments-1q-domestic-sources-contributing-70
During this time as Minister of Economic Affairs (MEA), he would frequently take credit for the work done by other Ministers e.g. MITI’s work to attract FDI and MOF’s work to maintain a credit stable rating.
Even though Azmin had nothing to do with the first Economic Stimulus Package that was announced by interim Prime Minister, Dr. Mahathir, on the 27th of February, he unashamedly tried to take credit for it. While the MOF team, led by Lim Guan Eng, was hard at work in coming up with the details of this package, Azmin and gang were busy plotting to bring down the PH government via the Sheraton Move.
Source: https://www.malaysiakini.com/news/512485
So yes, Azmin is indeed a MITI “Icon” but for all the wrong reasons.
He failed to perform his job in planning to reduce economic activity in an orderly fashion during the initial stages of the MCO. He rushed to reopen the economy even though the SOPs were not in place and many of the stakeholders were not properly briefed. His term as MITI Minister saw our first trade deficit in 22 years and the largest percentage fall in total trade, manufacturing sales and industrial production in 20 years. Total Industry Volume (TIV) for the auto sector is anticipated to fall by 33% despite the tax incentives offered by the PN government. Approved FDI may have increased in Q1 2020 but this was not due to Azmin’s efforts. Approved investments for the rest of the year will likely remain low. Azmin has flip flopped on a number of issues including the CPTPP, total government debt exposure and most recently, on his knowledge of direct negotiation awards under the PH government of which he was part of. He has selective amnesia when it comes to collective responsibility in government. And finally, he is quick to take credit for things which he had nothing to do with and quick to run away from owning up to his own failures. ICONIC indeed! 10 out of 10!