Monthly Archives: July 2008

Introduction

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Sir Isaac Newton, one of the most influential scientists to have ever lived, once remarked: “If I have seen further, it is by standing on the shoulders of giants.” Tun Dr Ismail bin Abdul Rahman was a giant on whose shoulders an entire nation stands.

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We see further, and are more, today because of the legacy that the good doctor, and others like him, left behind. He was a man who was hugely talented and unswervingly committed. Yet he was also utterly humble and selfless in his service to the nation. I am glad his memory lives on, and I am delighted to deliver this oration that bears his name. Today I want to talk on the subject of leadership. I hope that what I have to say is worthy of the man and would have met with his approval.

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The subject of leadership is something that mankind has struggled to understand for at least two and a half millennia. Around 500 B.C., for example, Lao Tze and Confucius laid down guiding principles for rulers to administer their kingdoms. Among Confucius’ many leadership precepts, he is perhaps best known for the Golden Rule: “Never impose on others what you would not choose for yourself.” Two centuries later, the Greek philosopher, Plato, wrote The Republic, in which he conceived the idea of the philosopher king. According to Plato philosopher kings had to undergo fifty years of intellectual and physical preparation to lead the state. A thousand years later, the Florentine diplomat and political philosopher, Machiavelli, penned The Prince, in which he introduced pragmatism and realism as essential elements of leadership.

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The search for what makes good leaders continues to this day. Politicians, captains of industry, management gurus, psychologists, academics and, of course, the general public, all have their take on what makes some leaders bad, others good, and yet others great. I do not intend to summarise the vast and varied literature on the subject. Instead, I would like to do three things. First, I would like to suggest three leadership qualities that I think the world will need in the 21st century. Second, I would like to make three observations about common leadership challenges and weaknesses. Third, I want to suggest that these imperatives and challenges of leadership are relevant to Malaysia.

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Imperatives of leadership in the 21st century

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Leaders and leadership are as relevant today, as when man first organised themselves into tribes and later nations. One has only to open a newspaper, turn on the television or connect to the Internet, to see that the individuals who lead other individuals are a constant source of fascination. Their words, thoughts and actions are diligently studied. Their character strengths and flaws are carefully scrutinised. On this basis, we collectively express admiration or heap scorn. Sometimes we do both, as leaders, in the beginning, please us and, thereafter, disappoint. Or vice versa, when leaders earn our approval despite low expectations at the outset.

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A great deal of serious scholarship has been invested in the question of what the qualities of a good leader are. The result is that we now have a mountain of information but no clear-cut answers. Charisma, for example, is often regarded as one of the necessary traits of leadership. Charismatic leaders are ones who can create feelings of intense admiration, confidence and loyalty among followers. But even charismatic leaders are not immune to being challenged or abandoned by their followers. If they do not fulfil their promises or if they do not act in honourable and morally correct ways, they too can quickly lose popular support. Some of history’s worst leaders have been described as charismatic. By playing to his followers’ basest needs and fears, Hitler’s charisma and vaulting ambition brought his nation to disaster.

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More than charismatic leadership, I believe what the nations of the world today need is what the leadership theorist James MacGregor Burns calls “transformational leadership” , which strives to achieve higher ideals, nobler values and superior behaviour among followers. It encourages followers to rise above narrow self-interests and to work in the service of others towards the common good. It mobilizes people to face, rather than avoid, tough realities; to tackle difficult problems and to make hard decisions. It does not turn away from the difficulty of problems by offering fake remedies. It elevates followers to a higher moral level. One example I often refer to is that of Europe. At the turn of the 20th century, many European countries were still devastatingly poor and a large number of their citizens had to migrate in order to survive. Their tendency to regularly go to war with each other also did not help matters. By the end of the 20th century, however, these same countries had become prosperous and advanced. More importantly, they had not only disavowed violence as a means of solving their problems, but had become instrumental in creating the conditions for world peace and stability.

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In contrast to transformational leaders, transactional leaders tend to focus on their interests, and the interests of those on whom they depend. Not surprisingly, they are realists and pragmatists by nature and use threats, punishment and reward to achieve their ends. Such leaders can use their power for both legitimate and illegitimate purposes. In democracies, opposing political parties pitch themselves at each other to ensure public accountability and responsiveness. When global conflicts have to be resolved or international business deals concluded, transactional leadership is called for. But transactional leaders can also exploit greed, fear and hatred to advance less desirable agendas. Racists, separatists and extremists of every stripe believe in the use of raw power to achieve their ends, even if it means depriving others of their rights, happiness and even lives.

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We need more transformational leaders in the 21st century. By extension, we also need leaders who are much more capable in the exercise of what the political scientist Joseph Nye calls “soft power”. Hard power is what we are all familiar with. For governments, it includes the ability to direct, punish, defend and invade. For companies, it is the power to hire and fire and to acquire and dispose of companies. Soft power, on the other hand, is non-coercive. It sets agendas, persuades, shapes preferences and harnesses voluntary actions. It is marked by participation, delegation and networking, not command-and-control. In short, soft power is about working with and through people. While both may be needed, there is a greater need for soft power in today’s complex information-based world.

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The reason why soft power is required in increasing measure is that people today are becoming increasingly empowered, and countries are becoming too interdependent, to be ruled by hard power alone. Many societies are assimilating liberal democratic values. Mass education has made people more knowledgeable and discerning. They are less compliant and more distrustful of those in authority. Problems such as global warming, the spread of infectious diseases, disaster relief require collective and co-ordinated actions. Their solutions require the implicit consent of people who are switched-on and plugged-in.

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The third imperative for leadership is that it must be moral and just. Good leadership in the modern age cannot operate in a moral vacuum. International law today makes it harder than in the past for leaders to get away with genocide, corruption and abuse of power. Countries also organise embargoes and apply diplomatic pressure. These are the hard power elements. In addition, however, there is also the power of international public opinion. As mentioned earlier, the fates of countries today are intertwined as never before. The attitudes of the citizens of other countries therefore also matter as never before. When countries are perceived to behave in an immoral or unjust manner, global opinion will be marshalled against them. The fact is that international opinion, influenced by a 24-hour-7-day-a-week media, is a prime shaper of international politics, economics and business.

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Leaders today are held up by the public to a much higher standard than in the past, when there may have been no choice but to accept them. They have to have a high degree of personal integrity if they are deemed to be suitable to carry out public responsibilities. If they do not, there will be the nagging fear that these personal compromises will carry over and affect the conduct of public duties and responsibilities.


Common leadership challenges and weaknesses

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Leaders must exemplify the values they want their followers to have. As Mahatma Gandhi famously said, “You must be the change you want to see in the world“. It is difficult, if not impossible, to persuade people to be idealistic and highly motivated when leaders are self-serving and interested only in retaining power and control. Indeed, when a world leader extols the virtues of democracy, human rights and respect for the law, and then proceeds to act in a manner that is contrary to them, he or she makes an utter mockery of them. Only when leaders show themselves to be driven by higher order goals can their followers feel fully assured that they are not somehow being deceived and manipulated into serving illegitimate or self-serving causes. Otherwise conflicting values and clash of interests will give rise to widespread civil apathy or, even worse, open disobedience.

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Walking-the-talk is therefore more than just a nice maxim. It is integral to what good leadership is about and what being a leader means. Tun Dr Ismail lived out the mottos “leadership-by-example” and “clean, efficient and trustworthy” long before these phrases gained currency. He demonstrated uncompromising integrity in all his dealings. Such is the measure of the man that we still speak of his leadership qualities and achievements 35 years after his passing.

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Another common challenge for leaders is in the area of listening. Listening establishes a number of things simultaneously. It says that the leader values people. Leaders who are not people-oriented will generally find it very hard to lead from the top, front or middle. By showing themselves to be open to feedback, leaders also establish a basis for trust. Leaders who listen are less likely to pursue illegitimate goals or actions. By having their ideas and perspectives considered, followers feel that they have a stake in the decisions made by their leaders. Finally, consultation is essential because without it, leaders cannot make informed and objective decisions. Instead, they fall victim to the dreaded groupthink.

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Listening, of course, is never easy. There are not only the views of electorates to consider, but also those of independent analysts, non-governmental organisations, media, financial markets and the blogosphere. On just about any issue of importance there will be differences of opinions due to dissimilar interests and values. Diversity, however, is a fact of life and engaging diversity is one of the leader’s main tasks. There is, of course, a limit to how much leaders can discourse and take into account. At the end of the day, they will have to make and be held accountable for decisions that they think is right. Their lives, however, would be easier if those who are affected by their decisions believe that they have been heard.

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A third common challenge for leaders is to deliberately surround themselves with the best and most capable people, ones who can bring different talents and insights to bear and who may not necessarily be the most compliant. True leaders know, however, that they do not have all the answers and they must seek out those who are more competent and capable and delegate duties and responsibilities to them. If they do not, bad and poorly executed decisions can result, and this may end up eroding popular support for them. In order to be effective, they must have their eyes firmly fixed on achieving results.

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Naturally, there are downsides to choosing highly capable and motivated people for one’s inner circle. For one thing, they may not see eye-to-eye on many issues. It can take time a great deal of time and effort to forge a consensus. Occasionally, agreement may just not be possible. For another, second-tier leaders quite often end up challenging the leader. This makes many first-tier leaders wary about those they appoint to positions of responsibility. They may be tempted to offer important positions to loyalists who are unsuited. Leaders, however, have to be more confident about their positions. They have to remember that they have a duty towards those who support them and that they should be uncompromising in discharging their responsibilities.

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Implications for Malaysia

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The general observations I have made about the imperatives and challenges of leadership in the 21st century are, I believe, relevant to Malaysia. One of this country’s enduring strengths has been its almost obsessive focus on effective leadership, that is, one which has to deliver the goods to the people. This has been one source of legitimacy for leaders apart from personal popularity. The leadership process has also, to a degree, been open and inclusive and resulted in Malaysia emerging as a shining model of development. Other countries may have had as much, if not more, than Malaysia but they were able to accomplish very much less.

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As a result of its successes in human development, Malaysian society has changed. I believe that this has also made it necessary for the type of leadership to also undergo a transition from the transactional to the transformational. The Malaysian development ethos today is no longer framed in purely materialistic terms. Malaysians, especially the younger generation, are empowered and energised. Their demands are for more moral, open, representative, equable and equitable forms of leadership. They want leaders who can courageously cross sectarian boundaries and who depend on their intellectual and moral integrity and gravitas to attract and retain support, not just on political power and patronage.

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Leaders today need to be masters of soft power because hard power, though still required to maintain law and order, is not well adapted in dealing with today’s complex and interdependent world. As with any change, there will be tensions. Progress may advance and, at times, retreat, in line with changing circumstances. The pressures for transformational leadership, however, will be incessant and unremitting.

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Such leaders will emerge in the future but it is necessary to remember that they have been around also in the past. Tun Dr. Ismail was one in the first wave of leaders who demonstrated an integrity that was beyond question. He passionately believed that Malaysia was a country that could accommodate the hopes and dreams of all its peoples. He envisaged a Malaysia for all without colour lines, without ethnic borders and without any one group feeling a sense of inferiority. He was Malay and a nationalist but he firmly opposed racism of any kind. Instead, he celebrated diversity.

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Nor did he have the inflated self-importance that so many, on reaching his position, might have had. On being conferred an honorary doctorate of laws by Universiti Sains Malaysia on 9 June 1973, he said:

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“…Saya berdiri di hadapan saudara-saudara bukan sebagai seorang pemimpin negara, bukan sebagai seorang politik, bukan sebagai seorang tokoh dalam masyarakat, tetapi hanya sebagai seorang hamba Allah di tengah-tengah orang yang berilmu, sebagai seorang manusia yang telah lewat umur, tetapi telah banyak menjalani hidup yang penuh dengan kisah-kisah suka dan dukanya.”

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Such was the humility of the man. He passed away just 55 days later.

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In the person of Tun Dr. Ismail, we are offered a glimpse of a gallant leader who exemplified everything that he advocated. He showed us that it is possible to hold steadfastly to one’s beliefs and yet not deprive others of theirs. History shows that many have been given the chance to lead but only a few have excelled at it. This is because leaders often lose their values once they become besotted with power. Let us hope and pray that there will be many more giants like Tun Dr Ismail on whose shoulders we can stand to continue to undertake Malaysia’s transformation into a modern democratic society.

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Thank you.

http://www.bakrimusa.com/

Written By Dr. M Bakri Musa

The Sultan of Trengganu’s decision not to bestow royal honors on the occasion of his birthday is worthy of praise. I also applaud his celebrating it in a low-key manner. With the nation facing trying economic times, this message of prudence needs to be conveyed from the highest levels of our leadership. Further, the Sultan’s gesture while seemingly symbolic portends far more significant changes.

I am surprised that this is not more recognized and lauded by our intellectuals and pundits. Perhaps they too are eagerly waiting for their own little title and accompanying tinplate.

The Sultan in his capacity as King is also imparting his important message to the Prime Minister. Abdullah, his humble beginnings in the village and his very public displays of piety notwithstanding, has shown a detestable fondness for things luxurious since becoming Prime Minister. Witness his RM 250 million corporate jet! Prudent spending is not his strength.

For a culture that does not normally recognize birthdays, Malaysians have taken up this Western cultural artifact with gusto. This is especially so with the royalty. The investiture ceremonies associated with such birthdays would stretch for days, with the Prime Minister and other top officials having to be in attendance at all times, thus distracting them from their regular work. Not that they are any good or effective when they are in their offices!

Apart from the King, Malaysia has nine sultans as well as four sultan wannabes in the person of state governors. With 14 head-of-state birthdays to celebrate and heaps of honorifics to bestow, there is a glut of these titles.

It is not so much that I detest these ostentatious celebrations rather that I resent the wasting of precious taxpayers’ money. I could not care less if those sultans and governors were to throw private parties at their own expense.

Whom We Honor

We can tell much about a culture by whom it honors. Consider the Presidential Medal of Freedom, America’s highest civilian honor. Its recent honorees include not only prominent statesmen and distinguished scientists but also such varied talents as the Black neurosurgeon Ben Carson, singer Aretha Franklin, boxer Muhammad Ali, and banker Alan Greenspan.

For contrast, examine the recipients of Malaysia’s highest royal honor, the “Tun.” Perusing the list for the past decade or two, all the recipients were either retired civil servants or “has been” politicians. Some awards seem automatic, as for example, for the sitting Chief Justice. They all would get one, even those who would later bring disgrace to their office. I am astounded to discover that there are more than just a few of those renegade characters so honored!

The message is clear. To the mindset of our leaders, the only way to serve the nation is through the government, or at least by belonging to the right political party. Such a myopic view of the world!

One is readily inspired when reading the citations of those honored with the Medal of Freedom. Unlike the Medal of Freedom, there is no citation to go with awarding the Tun. One has to guess their achievements. “Googling” their names would be an equally fruitless exercise.

Musa Hitam and Lim Keng Yeik are recent recipients of the Tun. Yet what are their contributions to the nation? Yes they were former cabinet ministers, but what exactly did they achieve? As for former Chief Justice Ahmad Feiruz, another recent honoree, what were his landmark decisions? The nation should honor their contributions, not their positions. These awards should not be part of the retirement package.

I can recollect only a few honorees whose contributions were truly significant and thus deserve honoring. Our first Chief Justice, Tun Suffian Hashim was one, as well as the first Governor of Bank Negara Tun Ismail Ali. Both rightly belong in the same league as the late Tun Razak.

I once suggested to a graduate student looking for a topic for her dissertation to go over the list of our royal honorees to discern the pattern. Who do we honor as Tan Sri and Datuk? This would have been a doable project a decade ago. Alas today, with the avalanche of names, you would need superior computer and statistical skills to do a credible analysis.

It reflects the degradation of our culture that there is now a widely acknowledged “under the table” price for these titles. Consequently, today you are as likely to find such honorees on the criminal roster as on the palace invitation list.

Truly Modern Monarch?

Sultan Mizan may be our youngest King but he has already shown his innovative streak early and quietly. Soon after his installation he directed that all palace functions must end early so as not to interfere with the following working day. How sensible! That royal mandate must have been a severe shock to those ministers and senior civil servants who would find any excuse not to be punctual at their offices.

During the massive Bersih rally in 2007, the King demonstrated his political subtlety and acumen by being conveniently out of the palace and yet opening its gate to the rally organizers. That was a direct public slap to Abdullah who had earlier declared “saya pantang di cabar!” (Do not challenge me!)

On a more substantive level, following the recent March election, Sultan Mizan as the Sultan of Trengganu taught Prime Minister Abdullah a much needed lesson on the real meaning of royal “advice and consent” on appointing the state’s Chief Minister. As Abdullah was (still is) a slow learner, Sultan Mizan had to deliver his message in no uncertain terms. It took some time and much public humiliation, but Abdullah did finally learn his lesson.

Sultan Mizan through his actions and Raja Nazrin with his speeches represent the new generation of royals who are more attuned to the nuances of the delicate checks and balances provided for in our constitution. Such a function, which has been severely lacking, is necessary for an effective government. These royals are not at all shy in exercising their long-neglected oversight role.

The framers of our constitution in their wisdom had provided for, in addition to a bicameral Parliament, another entity, the King and his Council of Rulers, which in effect is the Third House of Parliament. While it cannot initiate legislations nonetheless it has the power to review laws passed by Parliament. At least that was the situation until Mahathir amended the constitution.

Additionally, the consent of this Third Parliament is needed in making senior appointments. In matters pertaining to Islam, this Council rules supreme. This fact was brought to the fore during the recent imbroglio over the transfer of senior religious officials in Perak.

I hope these tentative ventures towards a more activist role for the King and his Council of Rulers would expand, with the King taking his “advice and consent” role more positively a la the United States Senate. While I do not expect open hearings I do hope the Council would carefully vet in private candidates for senior appointments and not merely rubberstamp the nominees of the Prime Minister.

This would restrain the current unchecked powers of the executive and correct the current imbalance that has tilted for so long towards it. At least that is one side benefit albeit unintended to Abdullah’s weak leadership. It allows the King and his brother rulers to re-exert their constitutional power. That can only be good for the nation.

Sultan Mizan’s cancellation of the royal investiture on the occasion of his birthday should be viewed in this light. I hope he would venture beyond and usher our Third House of Parliament to its original proper oversight role. If he were to do that, then he and his fellow sultans would have justified the high cost of maintaining them, quite apart from earning the gratitude of their subjects. Besides, that is a far more crucial role than passing out fancy sashes and tin plates on their birthdays.

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Comment on Dr. Bakri’s site regarding the title “Tun” by FAIZ:

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4. To be pedantic, the highest royal honour is not the title ‘Tun’. The awards of Seri Maharaja Mangku Negara and Seri Setia Mahkota, both bestowing the entitled the title ‘Tun’, are the fourth and fifth highest respectively. The highest royal honour is Seri Pahlawan Gagah Perkasa, awarded post-humously to fallen warriors. You almost never hear about these people.

http://www.bloomberg.com/apps/news?pid=20601080&sid=apJ7dDg5QO7o&refer=asia

By Stephanie Phang

July 26 (Bloomberg) — Malaysia’s central bank broke with its Asian neighbors by keeping interest rates unchanged, putting economic growth ahead of fighting the fastest inflation in a quarter century.

Bank Negara Malaysia kept its overnight policy rate unchanged at 3.5 percent for an 18th straight meeting yesterday. The move had been predicted by seven of the 20 economists surveyed by Bloomberg News.

The decision spurred traders to bet the ringgit will weaken over the next 12 months. Malaysia has avoided following Thailand, Indonesia, India, Vietnam and the Philippines in raising borrowing costs this year as the government tries to regain public support after its worst electoral performance in March elections.

“It’s a highly risky decision, a decision which could well undermine the credibility of the central bank,” said Robert Prior-Wandesforde, an economist at HSBC Holdings Plc in Singapore. “I think the ringgit will sell off, I think bonds will sell off. They’ve lost credibility in not moving. That will be reflected in the markets.”

Malaysia’s currency dropped to its lowest level in more than two weeks yesterday, losing 0.2 percent for the week to 3.2490 per dollar, Bloomberg data showed.

Ringgit to Weaken

Traders abandoned expectations for an appreciation in the ringgit, non-deliverable forwards contracts showed after yesterday’s decision. They bet the ringgit will drop to 3.2515 per dollar in a year, versus a bet for an advance to 3.2310 before the policy decision, according to prices by Tullett Prebon Plc. The contracts are agreements in which assets are bought and sold at current prices for future delivery.

“While both the risks to higher inflation and the risks to slower growth have increased, the immediate concern is to avoid a fundamental economic slowdown,” the central bank said in a statement in Kuala Lumpur. “The appropriate monetary policy response will be taken” should price increases spread beyond food and fuel.

Bank Negara yesterday raised its inflation forecast for 2008 for a second time this year, to a range of 5.5 percent to 6 percent from a June estimate of 4.2 percent and a March prediction of as much as 3 percent. The rate decision was two hours late.

It didn’t say if it had revised its March forecast for a 5 percent to 6 percent expansion in the $151 billion economy. Growth was 6.3 percent in 2007. Governor Zeti Akhtar Aziz had said earlier the central bank would review the economic growth target yesterday.

`Behind the Curve’

Malaysia’s delay in raising borrowing costs risks fueling inflation further, says Lye Thim Loong, who helps oversee about $500 million at Avenue Invest Bhd. in Kuala Lumpur.

“They will really be behind the curve,” he said. “At the end of this year they will have wage pressure, and the impact on the economy is far-reaching. They have to do something to cool it off a bit.”

Concerns that inflation will hurt growth and erode investors’ returns have added to a slump in Southeast Asia’s stocks and bonds. Philippine and Indonesian bonds have lost the most this year among 10 Asian markets tracked by an HSBC Holdings Plc index. Vietnam’s key stock index is the world’s worst performer in 2008.

Asian central banks need “decisive tightening” of monetary policies to combat inflation, and many are too slow to raise borrowing costs, the Asian Development Bank said this week. The Philippine central bank said it is considering further rate increases after successive moves in June and July.

U.S. Slowdown

Still, higher interest rates may cool domestic demand, which the government is relying on for growth as a U.S. slowdown hurts overseas sales.

Malaysia has tried to ease inflation through other measures, including increasing spending on agriculture to boost food supply and loosening import restrictions on steel. Oil has declined 14 percent since reaching a record $147.27 a barrel on July 11.

Inflation accelerated to 7.7 percent last month after Prime Minister Abdullah Ahmad Badawi announced a 41 percent increase in retail gasoline prices in a bid to trim government subsidies that keep pump costs artificially low. Diesel went up 63 percent, and electricity rates rose in July.

“Much of the jump in inflation of late has been due to rising food and energy costs,” said Azrul Azwar Ahmad Tajudin, an economist at Bank Islam Malaysia Bhd. in Kuala Lumpur. “If the current runaway inflation is expected to be a transient phenomenon without causing a generalized rise in prices, then raising rates doesn’t appear to be an appropriate answer.”

The central bank’s overnight policy rate is at the highest since its introduction in April 2004, and, together with Hong Kong’s and Thailand’s, is the second lowest in Asia according to Bloomberg data.

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To contact the reporter on this story: Stephanie Phang in Singapore at sphang@bloomberg.net