MALAYSIA EARNS WORLD BANK PRAISE FOR HALAL CERTIFICATION, EGG PRICE REFORM

KUALA LUMPUR, May 6 (Bernama) -- The World Bank has commended Malaysia for its mutual halal certification agreement with Indonesia and the gradual removal of egg price controls, describing them as bright spots in the country’s economic landscape.

World Bank Lead Economist for Malaysia, Apurva Sanghi, said reducing bureaucratic hurdles in halal certification would enhance halal trade between the two countries.

He also praised Malaysia’s move to introduce digital licensing for rail freight between Malaysia and Thailand, calling it a positive step for regional trade.

"This shows that non-tariff barriers within ASEAN can be overcome," Apurva said in his official X.com account today.

He also described the phasing out of egg price controls as a rare and commendable rollback of market distortions. Apurva noted that Malaysia frequently imposes and lifts price controls during festive seasons.

“For example, price controls imposed on white pomfret and imported Chinese garlic during Chinese New Year, and on imported buffalo meat and mackerel during Hari Raya Puasa,” he said.

Apurva welcomed the introduction of a living wage policy by government-linked investment companies (GLICs), saying it would benefit lower-income workers.

While highlighting strong exports and a firmer ringgit as other economic positives, Apurva cautioned against overinterpreting these trends. 

“The current export surge is largely due to frontloading ahead of global trade uncertainty and is not likely to be sustainable.

“Similarly, the stronger ringgit reflects a weaker US dollar rather than a surge in the ringgit’s strength. The currency market remains too volatile to draw firm conclusions,” he explained.

Apurva also welcomed the introduction of a living wage policy by government-linked investment companies (GLICs), saying it would benefit lower-income workers.

However, he noted that for the policy to be sustainable, it must be supported by productivity gains, unless it is compensating for previously uncompensated labour, which raises questions about past wage practices.

“It remains to be seen whether this initiative will influence other employers, particularly in the formal private sector, where around two million workers still earn below a living wage.

“This figure likely underestimates the issue, as it doesn’t account for many informal workers in similar situations,” noted Apurva.

-- BERNAMA