KUALA LUMPUR:All parties need to differentiate the government's involvement in terms of economy and business, said Datuk Seri Johari Abdul Ghani.

The former Second Minister of Finance stressed that the government should not run away from being involved in the country's economic policies because it involves government policies and policies themselves.

However, he explained, the government can also be involved in business in areas that the private sector cannot afford.

"That is the basis of a country, when it becomes a government, economic policy must be determined by the government.

"For example, if we want to be an industrial country, we want to be an agricultural country, we want to be an ICT industrial country. These all involve economic policy, exports, imports in terms of specific focus of an industry.

"That is the policy and the economy, that is inseparable from the government, because we need the government to be involved in terms of economic policies that can help businesses.

"So if in the context of business, it is different, this business that we want to implement these economic policies through business. This business is what produces jobs, profits and when profitable, so the government can tax, get SST payment, if first GST. It can create job opportunities, so the government earns income from tax revenue," he said when contacted here, on Sunday.

However, Johari explained problems will arise if the government participates in making policies and policies as well as businesses that compete with the public sector.

In the meantime, he said, every specific step the government makes in the administration of a controlled company will have a big influence on investors.

He said the government also needs to review the position of the company before making any decision involving policies and procedures.

"Investors come to our country, when they invest based on our economic policies and policies.

"Then he sees political stability, when it looks stable, then he comes to invest, so when he comes to invest, he takes time to make a profit.

"But when he makes a profit, he sees the 'game' change, that's what sometimes a lot of investors are afraid to come here.

"So, we have to be clear, the stand between the government and the private sector has to be really clear.

"If we overlap with the industry in which we participate in making decisions on behalf of others, it may cause disruption in terms of the process of a business," he said.