Sunday, October 31, 2010
Thursday, October 28, 2010
ZAKAT DAN INSTITUSI AGAMA
Sumber: http://drmaza.com/home/?p=1259#more-1259
APA JADI DENGAN INSTITUSI AGAMA KITA?
Saya melihat laporan media (Malaysiakini) bertajuk “MAIWP mahu lupus 70 penghawa dingin baik”memerlukan perhatian yang amat serius. Perjelasan dan jawapan perlu diberikan oleh pihak berkenaan. Sejauh hal ini berlaku dan ketepatannya?
Sejak sekian lama saya dan beberapa orang lain menyebut tentang adanya perkara yang tidak kena dalam pengurusan harta dan kewangan badan-badan agama di negara ini. Ya, itu telah mengundang rasa tidak puas sesetengah pihak. Namun, kita terpaksa nyatakan. Apa tidaknya, berbilion wang zakat dan selainnya diperuntukkan untuk umat Islam, tetapi keadaan yang kita lihat terus menyayat hati, sehingga ada keluarga yang terpaksa hidup di bawah jambatan di KL seperti yang dilaporkan media baru-baru ini (Hidup Bawah Jambatan) . Ke mana pergi segala peruntukan ini. Kita kehairanan, wang zakat ratusan juta, namun si miskin terus menderita. Dapatan zakat berlipat-lipat, si miskin terus merempat. ‘Hantu’ manakah yang mencuri atau menipu wang zakat kita, sehingga yang berhak tidak memperolehinya? Tangan-tangan siapakah gerangan? Jembalang di hutan, atau lebai berserban? yang menggunakan nama syaitan, atau yang menggunakan nama Tuhan? Akhirnya wang umat Islam ketirisan dan kecurian.
Di sini, saya ingin menyebut beberapa perkara, antaranya;
1. Kita perlu memuhasabah semula fungsi zakat dalam negara ini. Sejauh manakah kejujuran, kesungguhan dan ketelusan pengurusan zakat dan selain zakat yang sepatutnya telah lama membangunkan umat Islam. Artikel saya pada tahun 2007 yang bertajuk: “Zakat Berbaki Atau Kita Kurang Bijak Membahagi” rasanya patut dianalisa.
2. Apa yang berlaku di Wilayah Persekutuan adalah isu didedahkan. Kita tidak tahu bagaimana keadaan pengurusan kewangan umat Islam di negeri-negeri lain. Apa yang kita pasti laporan kemiskinan yang menyayat hati terus wujud dipelbagi negeri, sementara kemewahan PUZ juga ternyata di pelbagai negeri. Adakah wujud kesungguhan untuk mereka membaiki keadaan umat Islam? Atau jangan sampai ada mereka yang mengambil kesempatan atas nama asnaf ‘amilin’ (petugas zakat), sedang tugasan tidak setara mana, tapi habuan yang diambil berlebihan.
3. Kewujudan kes-kes yang seperti ini mengikis keyakinan rakyat terhadap pengurusan atau integriti institusi-institusi yang berjenama agama. Ia akan menyebabkan rakyat berfikir mereka tidak patut menyerahkan urusan agama kepada institusi-institusi ini yang sentiasa terdedah kepada pelbagai persoalan yang meragukan.
4. Merubah institusi-institusi ini agar menjelma dalam peranan yang lebih berkesan dan baik amatlah sukar dan bukannya mudah. Ini kait mengait antara satu sama lain. Kepentingan politik, istana, individu dan berbagai lagi. Merubah pemerintahan secara keseluruhan mungkin satu percubaan yang boleh dibuat dalam membaiki keadaan ini. Itupun jika pasukan kerajaan baru mempunyai pemikiran yang bersih, jujur dan terbuka. Jika tidak, hal yang sama akan berulang.
Dr Mohd Asri bin Zainul Abidin
Friday, October 22, 2010
Budget 2011
Source:http://english.cpiasia.net/index.php?option=com_content&view=article&id=2042:budget-2011-a-budget-for-the-big-boys-and-civil-servants&catid=228:commentary
CommentaryWRITTEN BY DR. LIM TECK GHEEMONDAY, 18 OCTOBER 2010 00:00
There are several ways to analyze the budget. One is to take at face value what the Prime Minister has written in his blog just before his budget speech where he promised that it is “a budget by the rakyat”. By it, he explained that he had read through the more than 1,000 comments and suggestions from his readers and forwarded them to the Ministry of Finance to incorporate.
According to the PM, there were three key issues raised – employment, taxes and subsidies, and education.
In his words, “employment was the most frequently discussed with some of you calling for the implementation of a minimum wage policy”. Also, he noted that “comments from the youth requested for increased tax rebates for young families or ways to provide financial assistance in managing the rising cost of living”. As for education, the feedback on his blog related to concerns with education quality and the rising cost of education.
Now that the budget has been unveiled, it is clear that the civil servants preparing the budget have completely ignored the Prime Minister. Firstly, the implementation of the minimum wage policy has been further deferred for the umpteenth time. The only beneficiaries of wage reform appear to be security guards who deservedly see their minimum wages raised and female civil servants who will now have longer maternity leave.
As for education, whilst there is a substantial allocation to cater for recurring operational expenditure and some new infrastructural spending, there is nothing new in the budget that can allay the number one concern of middle-class Malaysians. Especially disappointing is the failure to grant relief for private higher education costs which are rising steeply. Given the trend, it looks like higher education will soon be affordable only to those that can get into the public universities or those who have wealthy parents -- and also perhaps those that can draw on financing from family members and Ah Longs.
Affordable housing has been very much in the news even if there have been few letters to the Prime Minister on the topic. It is now beyond the reach of many in the younger age group living in the larger towns and especially in the Klang Valley. There is no evidence in the budget of any official concern to tackle the problem.
There are also no measures aimed at curbing the rising cost of living. Why is there a lack of attention to addressing the rising costs of housing, transport and health as well as food? Part of the reason is the government’s Alice in Wonderland estimate of inflation – it has projected a figure of 2-3 percent for the year. Further, according to the government’s estimate, Malaysians will be quite a bit wealthier in 2011 compared with 2010. Per capita income is expected to go up by 6.1% to RM28,000, and income in terms of purchasing power parity will hit US$16,000.
This is of course data which does not reflect real life -- just a hypothetical average. The majority of Malaysians will, in fact, not only feel but will indeed be poorer rather than richer in 2011 given the relentless rise in cost of living that is not reflected in the inflation data.
One group though that will not be poorer will be the big guns benefiting from the slew of mega projects contained in the budget. They include the planned erection of a RM5 billion tower. This is a potential monstrosity which will serve little purpose except bring to a standstill traffic in that congested part of the city. It is obscene that this is being done in the name of honouring the country's heritage.
Hopefully citizen groups, residents in the area and heritage organizations can organize and bring pressure to bear on the government to stop this project before it gets off the ground.
As evidence of how poorly conceived the budget planning process has been, it should be noted that the budgeted amount for the year for all the corridor projects -- which is supposed to help decentralize development and increase rural incomes and well-being in the other parts of the country -- is only one-third of that allocated for this massive planned erection.
Other big ticket items such as the MRT may be economically more justifiable but they have to be closely monitored for the way in which project design, contractors and partners are selected. Already, there is talk of pre-determined winners even before the process of proper technical studies, evaluation and selection has commenced.
It is disappointing that the budget does not deal at all with the procurement issue which has resulted in wastage, inefficiency and higher costs to the average Malaysian in the last 30 years. Presumably we are going to see business as usual in the tenders for Private-Public Partnership projects and the continuation of 'privatized gain and socialized losses'.
Another concern is that much of the budget continues to go into operating a bloated civil service. As much as three quarters of the national budget is spent on paying salaries and other benefits to over 1.3 million civil servants.
This means that of every dollar spent in the budget, 75 sen goes towards manning the civil service, leaving little left to carry out development work that can benefit the country's population. There is clearly something fundamentally wrong in the way the country's budget is being spent when so much of the allocation goes to paying for a sector that is generally regarded as unproductive and standing in the way of efficiency.
Finally, this is a budget that is touted as being friendly to business. The question is not only which and what businesses will benefit but also whether the projects undertaken will benefit the country.
From the listed projects, it appears that we are returning to the era of mega high-status, expensive projects which will provide little value-added to the Malaysian economy. Projects such as the proposed RM5 billion tower should be scrapped, and the resources spent instead on the expansion of public housing, transport, health and other badly needed amenities and services that can truly benefit the ordinary people.
Monday, October 11, 2010
Monday, October 4, 2010
Skills, equity hurdles to investment
Source:http://www.btimes.com.my/Current_News/BTIMES/articles/jermani-2/Article/index_html
By Tan Choe Choe
Malaysia doesn't need Nobel laureates or a man who can go to the moon but qualified, hands-on people to raise their level of competence, says German Ambassador to Malaysia
He said this boils down to the lack of emphasis and importance placed in vocational training.
Possibly, it stems from the lack of social acceptance of a person who works with his hands here, Gruber told Business Times in an interview in conjunction with the 20th anniversary of the reunification of East and West Germany tomorrow.
Social acceptance is equally high in Germany whether you are a painter, an electrician or an engineer - as long as you are a master of your craft. "In fact, if you are a good electrician, you will be highly respected and earn good money."
This appreciation of applied knowledge is probably what propelled Germany to become a world leader in innovation, science and technology today.
As a case in point, he cited his two brothers: one who is a painter and the other, an electrician. Both earn more than he does.
Malaysians are too engrossed in the paper chase that they forget about skill acquisition. Parents' role in this obsession cannot be downplayed, Gruber said.
"You should always ask what the industry needs. But here, parents only want to send their children abroad, (probably) to some third-class university to get a foreign degree."
Another factor which he feels is holding back German investors is the Bumiputera equity policy.
Germany's "hidden champions" - the powerful, often family-owned small- and medium-scale enterprises (SMEs) - are keen to invest here, but are wary of having to give up a substantial share of their business to a "complete foreigner".
"These are often businesses which have been kept in the family for possibly hundreds of years. They would not want to share their company with someone they don't know."
Although they have heard of many positive news from the government on reducing the equity quota, Gruber said that many were still hesitant and adopting a "wait and see" attitude to assess how the new policies would be implemented.
One major German SME which is already here, B-Braun Medical Supplies Sdn Bhd, is currently suffering from market access problems due to the Bumiputera issue, he disclosed.
B-Braun is a company with worldwide presence and an established history of supplying medical solutions in the surgical, pharmaceutical and healthcare management fields.
It does not have a Bumiputera partner, which prevents the company from bidding for government contracts.
"B-Braun has been investing since 1972 because they have had good experience here and want to continue. But they are being excluded in public tendering because of the Bumiputera issue," said Gruber.
Although this was initially regarded as a "small issue", it is now becoming a sore point for the company as a new Asean rule states that any company excluded from public tender in an Asean member's market "would be excluded from all Asean markets".
"This is not a very positive image for Malaysia if you want to attract more foreign investments," Gruber said.
Germany has long been recognised for its "highly specialised small and medium enterprises" segment. They are often called "hidden champions" because most produce inconspicuous products but are global market leaders in their own segments.
"We don't want to impose any ideas on the Malaysian government. They have to choose for themselves whether they want to evolve to remain competitive. Malaysia is doing a lot of reforms as we speak and many initiatives are laudable and fantastic. But implementation, as always, has been a bit of an issue here."
Germany is one of the top four investors in Malaysia in terms of cumulative investment value, currently at more than RM16 billion.
Even during times ofeconomic crisis, such as last year, when overall foreign direct investments into Malaysia dwindled considerably, fresh money was still coming in from Germany of about RM200 million.
Gruber said that although German investments have remained quite constant, Malaysia has to work harder to stay competitive.
"We have to be frank. A lot of investment goes to China now and to be and remain a world-class leader, Malaysia has to find its niche."
He suggested that the country look at expending its efforts in developing the renewable energy and pharmaceutical sectors.
"Malaysia is uniquely blessed with many renewable energy sources - palm oil, biomass, sun, water - but it has not fully capitalised on them," Gruber said.
Read more: Skills, equity hurdles to investment http://www.btimes.com.my/Current_News/BTIMES/articles/jermani-2/Article/index_html#ixzz11NywE3tw
Several factors are deterrents to a larger number of German investors putting their money into Malaysia, and top of the list is the lack of a qualified workforce.
"Malaysia doesn't need Nobel laureates or a man who can go to the moon but qualified, hands-on people to raise their level of competence," said German Ambassador to Malaysia, Dr Guenter Georg Gruber.
He said Malaysians appear to have the notion that an engineer's work is to get suited up and sit in the office all day.
"Nobody in Germany does that. A qualified engineer goes down to the pits and repair the machines himself, if need be, and he is respected for the willingness to get his hands dirty. Here, the engineers are ... different."
He said this boils down to the lack of emphasis and importance placed in vocational training.Possibly, it stems from the lack of social acceptance of a person who works with his hands here, Gruber told Business Times in an interview in conjunction with the 20th anniversary of the reunification of East and West Germany tomorrow.
Social acceptance is equally high in Germany whether you are a painter, an electrician or an engineer - as long as you are a master of your craft. "In fact, if you are a good electrician, you will be highly respected and earn good money."
This appreciation of applied knowledge is probably what propelled Germany to become a world leader in innovation, science and technology today.
As a case in point, he cited his two brothers: one who is a painter and the other, an electrician. Both earn more than he does.
Malaysians are too engrossed in the paper chase that they forget about skill acquisition. Parents' role in this obsession cannot be downplayed, Gruber said.
"You should always ask what the industry needs. But here, parents only want to send their children abroad, (probably) to some third-class university to get a foreign degree."
Another factor which he feels is holding back German investors is the Bumiputera equity policy.
Germany's "hidden champions" - the powerful, often family-owned small- and medium-scale enterprises (SMEs) - are keen to invest here, but are wary of having to give up a substantial share of their business to a "complete foreigner".
"These are often businesses which have been kept in the family for possibly hundreds of years. They would not want to share their company with someone they don't know."
Although they have heard of many positive news from the government on reducing the equity quota, Gruber said that many were still hesitant and adopting a "wait and see" attitude to assess how the new policies would be implemented.
One major German SME which is already here, B-Braun Medical Supplies Sdn Bhd, is currently suffering from market access problems due to the Bumiputera issue, he disclosed.
B-Braun is a company with worldwide presence and an established history of supplying medical solutions in the surgical, pharmaceutical and healthcare management fields.
It does not have a Bumiputera partner, which prevents the company from bidding for government contracts.
"B-Braun has been investing since 1972 because they have had good experience here and want to continue. But they are being excluded in public tendering because of the Bumiputera issue," said Gruber.
Although this was initially regarded as a "small issue", it is now becoming a sore point for the company as a new Asean rule states that any company excluded from public tender in an Asean member's market "would be excluded from all Asean markets".
"This is not a very positive image for Malaysia if you want to attract more foreign investments," Gruber said.
Germany has long been recognised for its "highly specialised small and medium enterprises" segment. They are often called "hidden champions" because most produce inconspicuous products but are global market leaders in their own segments.
"We don't want to impose any ideas on the Malaysian government. They have to choose for themselves whether they want to evolve to remain competitive. Malaysia is doing a lot of reforms as we speak and many initiatives are laudable and fantastic. But implementation, as always, has been a bit of an issue here."
Germany is one of the top four investors in Malaysia in terms of cumulative investment value, currently at more than RM16 billion.
Even during times ofeconomic crisis, such as last year, when overall foreign direct investments into Malaysia dwindled considerably, fresh money was still coming in from Germany of about RM200 million.
Gruber said that although German investments have remained quite constant, Malaysia has to work harder to stay competitive.
"We have to be frank. A lot of investment goes to China now and to be and remain a world-class leader, Malaysia has to find its niche."
He suggested that the country look at expending its efforts in developing the renewable energy and pharmaceutical sectors.
"Malaysia is uniquely blessed with many renewable energy sources - palm oil, biomass, sun, water - but it has not fully capitalised on them," Gruber said.
Read more: Skills, equity hurdles to investment http://www.btimes.com.my/Current_News/BTIMES/articles/jermani-2/Article/index_html#ixzz11NywE3tw
Friday, October 1, 2010
Economic Transformation Programme (ETP)
Government ready to launch seven projects under ETP
KUALA LUMPUR, Oct 1 — The government is ready to launch seven projects under the Economic Transformation Programme (ETP), Prime Minister Datuk Seri Najib Razak announced today.
“We are ready to launch seven new projects which I will be announcing soon. There are some major projects which will provide a huge catalyst for the market and the economy,” he said at the Asean 100 Leadership Forum 2010.
The seven projects are part of the 131 entry-point projects identified under the roadmap to be implemented over the next 10 years.
Najib said the proposed mass rapid transit network under the ETP will have a huge impact on the economy once the project starts.
“If we have that kind of projects, it will add 0.6 to 0.7 per cent to the Gross Domestic Product (GDP),” said Najib, who is also Finance Minister.
The ETP aims to increase Malaysia’s Gross National Income (GNI) to RM1.7 trillion and create some three million jobs by 2010.
The ETP needs RM1.4 trillion, of which 92 per cent will come from private investments. — Bernama
ETP projects all in Idris’ ‘dream’, say analysts and politicians
KUALA LUMPUR, Oct 1— Datuk Seri Idris Jala’s insistence that the Economic Transformation Programme’s (ETP) mega projects will spur growth towards Vision 2020 has not completely convinced analysts and politicians.
They are doubtful as to whether the government’s ETP, which promises a heavy commitment from the private sector, would be able to transform Malaysia towards a high-income economy by the year 2020.
Political analyst Dr Lim Teck Ghee described Idris as a “cheerleader” appointed to rouse support for the ETP without possessing expertise in economics.
“I think he’s being the cheerleader without having a full understanding of the economic issues and problems in the country,” said Lim.
“He is presenting a kind of a dream scenario. What will happen in real life is likely to be very different,” he added, pointing out that many of the projects would likely not see the light of day in the event of a double-dip recession.
Lim noted that the various projects in the ETP did not go through a rigorous process of selection as only a small number of government-linked company and business leaders discussed those projects.
“The projects have to be scrutinised by, first of all, people who are in the market and who are in the know, who scrutinise objectively and independently. That has not happened,” he said.
Ibrahim expressed concerns that Idris’ bold development plans would not completely take-off. — File pic
“These plans place a heavy reliance on private investment. But Idris has not answered the question of how the government plans to attract private investment in the first place.
“How is the government going to attract private investors to come in and pump in the cash? The plans are good, yes, but the question remains as to how it will translate into real progress or growth,” Ibrahim told The Malaysian Insider.
The analyst cautioned that if no transparent plan was mapped out, the Najib administration’s plans for economic growth would fall short of achieving its goals of economic reform.
“The ETP’s plans might be like the economic approach in the past where the purpose was to strengthen business among the Bumiputeras, but this plan did not translate into real economic growth,” he said.
The various projects in the ETP include the MRT system, the “River of Life” Klang River beautification project in the Greater KL region as well as future 1 Malaysia malls in China and Vietnam.
Other plans include building a huge oil storage facility next to Singapore to form a regional oil products trading hub. A casino project in Sabah is also being considered.
The Performance Management and Delivery Unit (Pemandu) said it had identified investments worth RM1.38 trillion over 10 years, of which 60 per cent would come from the private sector, 32 per cent from government-linked companies and eight per cent from the government.
The investment aims to double per capita income and push Malaysia into the ranks of “developed” nations by 2020, rebalancing Asia’s third-most export-driven economy towards domestic demand and the service sector.
Umno Youth chief Khairy Jamaluddin echoed Ibrahim’s views, saying that the “proof of the pudding” in regards to the ETP lies in the government’s ability to implement all these plans before 2020.
“The projects promised under the ETP are great on paper, but the onus is on the government to be able to get it going, (to) get it started now. We’ve only got nine years left. Projects like the KL MRT system needs to get started now, the projects need to be implemented on the ground,” said Khairy.
The Rembau MP told The Malaysian Insider that the ETP needed to include how it was planning to raise capital for the projects.
“There are questions in mind... how are we going to spur private investment? How are we going to convince the various financial institutions to raise the capital needed to get these projects started,” said Khairy.
Salahuddin says Idris is misleading the public with mega projects. — File pic
“He is just the same like other BN politicians,” claimed Salahuddin.
“Idris Jala, we are not fooled. You are trying to mislead us by talking about the Economic Transformation Programme, but all the projects that you mentioned are stimulus economy projects, not economic transformation projects,” he told The Malaysian Insider.
The Kubang Kerian MP pointed out that economic transformation required plans on political and institutional reform.
“When you talk about transformation, you need to talk about a human capital transformation… the quality universities we have, standards and skills of labour,” said Salahuddin.
Surprisingly, DAP national publicity secretary Tony Pua praised Idris over his role in the ETP, saying the Cabinet minister had done his job.
“He is not your typical BN man where you are just looking at largesse,” Pua told The Malaysian Insider.
“Idris Jala has done his part, which was to find areas for Malaysia to grow. Now, it’s for the prime minister to commit to the necessary reforms to take the country forward and to achieve the goals stated in the ETP,” Pua said.
The Petaling Jaya Utara MP dismissed the need for the government to fill in the details of the ETP, but stressed instead that its main role was to explain why the private sector should invest in the planned projects.
“The ETP is not going to be detailed because we are not going to be a government-driven economy. The underlying question that needs to be addressed is really why should people invest,” said Pua.
He pointed out that Datuk Seri Najib Razak had to convince the private sector by addressing concerns on a lack of institutional reforms, perceived unfair treatment based on affirmative action policies, and a civil bloated service.
Pua, however, expressed doubt about Najib’s support of Idris’ various economic proposals such as the earlier Government Transformation Programme.
“From what I can tell he is not getting full support from the prime minister. The problem isn’t so much what the Idris team is doing, but the Cabinet as a whole led by the prime minister that is unwilling to take the proposals full-blown,” he said.
Currently in Malaysia, only 28 per cent of the total workforce is employed in the high-skill job bracket, reflecting the low level of educational attainment among a large segment of the workforce.
THE 4 Es : WHAT THE NEM (ETP) NEEDS
Source: http://malaysia-today.net/mtcolumns/guest-columnists/34893-the-4-es-what-the-nem-etp-needs
The main thrust of the 4E formula is to 'Build Capacity' for productivity, innovation and sustainability through a one-time massive government investment similar in effort to the US Space Project, in education, research and development, political reforms and effective policies.
By Nurul Izzah Anwar, MP Lembah Pantai, Kuala Lumpur
I wish to outline my big picture impression of how to make the NEM (ETP) a success for all Malaysians as part of my continuing constructive engagement initiative.
I had written two articles on ETP, the first ’15 Questions on ETP’ and the second ‘Fantasy or fallacy: ETP 6% annual growth rate calculations?’
It was said by some observers that the opposition only critiques without offering any alternative solutions to the ETP in particular.
However, all if not most of the ideas presented here have already been suggested, and I only wish to repeat them for the purpose of outlining the necessary steps to make NEM a reality.
I hope that this ‘big picture’ commentary with suggested actions will be considered seriously and explained by the government in the upcoming 2011 Budget announcement in Parliament.
As a footnote, the ETP Part 2 was conveniently announced publicly on 21 September, which is one day after the 20 September dateline for Parliamentary questions submissions.
The Critique
Returning to my articles on the ETP, the response received from the public in support or otherwise of the position I presented is most welcomed in the spirit of free speech in a democracy. This debate is a healthy development, albeit mostly through the alternative media.
The main points to my ETP articles and the various responses can be summed up as follows:
The ETP is a huge economic development or transformation plan that has its merits.
However, the numbers and various acronyms must not be a deterrent from discussing economics especially on its impact on all stakeholders.
The possible inconsistencies and accuracy of GDP growth projections was revealed when the PM last year, at an internationally attended multimedia super corridor event, claimed he was misquoted on his announcement of the 9% annual growth target for the next 10 years of being actually 6%. Even a prominent local research house alluded to an 8% growth rate.
Some have said that if real GDP growth is 6% annually, it will only take us to the target of US$17,000 nominal GNI per head if Malaysia's population grows at a 1 per cent compound rate a year for the next ten years. However, from 2000-2010, population grew by an estimated 1.86% (Dept of Statistics). If population grows at this faster rate instead of 1% over the next decade, then real GDP growth would also have be faster by this difference.
Also, the GDP growth projections didn’t include if any, the plans related to requiring a quality workforce by increasing government spending and investments in education and research and development capacity building.
It appears that most of the EPPs and BOs were proposed by specific companies such as the RM43 billion MRT project proposed by Gamuda-MMC. The question is, will the proposed project be awarded to the proposer or open for competitive international bidding? If this is not clarified, than the EPPs and BOs would only be a self-serving exercise for certain businesses.
To illustrate this point, would Pemandu be interested in my RM500 billion atmospheric dome proposal covering Kuala Lumpur against climate change or as a friend suggested a scaled down RM50 billion eco-project utilizing gigantic fans to blow existing pollution to our neighbouring countries?
As the proposer, all I need is an official award letter and a parliament act to set a price on the atmosphere along with a government guarantee letter to help me raise the needed DDI and FDI funds. My RM500 billion dome would increase GNI substantially and become a center of excellence as we would be the first in the world to do it. Isn’t this truly innovative? So let all Malaysians submit their innovative proposals to Pemandu for consideration, which can be named RPP (Rakyat Proposed Projects).
Furthermore, if most companies perceive that they do not have a fair chance to compete relative to favoured companies and with a lack of transparency, then this will have an adverse impact on investor confidence. For example, can we have more details on the 1Malaysia Development Fund to know if this exercise to acquire public assets is in the public interest?
The proven track record of not achieving the previous Malaysian Plans is also troubling. For example, 8th Malaysian Plan target of 7.5% growth only achieved an average 4.5% growth while the 9th Malaysian Plan target of 6% growth as of date is at an average 4.2%. This brings our past 10 year historical average growth to less than 5%.
The need to expand participation for national consultation should not be limited to various ‘laboratories’ involving big business, professionals and civil service inputs. The ordinary rakyat especially the rural and urban poor, youth, workers and civil society were not sufficiently engaged on the ground. Some may be intimidated let alone can afford to attend these public participation events or ‘Open Days’ in conference halls.
The widening income inequality and limited higher education opportunities, which is a contributing factor to widening the gap must be addressed adequately. Economic policies may have reduced the absolute poverty rate but they have also worsened the distribution of income. Thus, the bottom 40% of all households accounts for 15% or less of household income while the top 20% of households account for 50% or more.[1] Sabah, Sarawak and East Coast states bear a disproportionate number of hardcore poor, poor and low-income households.
The most fundamental determinant of any competitive economic plan, which is innovation, requires freedom. How are we free to be creative when our national cartoonist is arrested for humoring us?
Rushing to conclude a matter of national importance just to meet the 2020 year milestone and changing big plans introduced previously such as economic corridors, that are later repackaged by new Prime Ministers only adds to the inconsistent policy making culture (some say flip-flopping) that undermines confidence in the plan’s success.
The plan appears to works backwards from developed country status to high-income status in 2020. This is the source of the problem, silly as it sounds. The impact of this is not only to make the targets "costly, confusing and convoluted" but also conjectural.
Even Tun Dr Mahathir Mohamad recently alluded to the possible failure to achieve Vision 2020’s objectives, which is the premise for the NEM timeline.
Overall, there is much room for improvement in making the ETP viable, realistic and sustainable. And to do that, I now shall outline some suggestions in the form of a formula.
Formula for NEM (ETP) Success
I am providing a ‘4E’ formula to keep in line with the many acronyms introduced by the government recently. To be fair I find acronyms useful as mental markers to organize the numerous concepts needed to frame a big idea such as the NEM.
The ‘4E’ formula to make NEM a success is; Education + Empowerment + Efficiencies = Economic Growth (NEM).
The main thrust of the 4E formula is to 'Build Capacity' for productivity, innovation and sustainability through a one-time massive government investment similar in effort to the US Space Project, in education, research and development, political reforms and effective policies.
And on balance with the need for huge investments, we also need to reduce waste through efficiencies and transparency so that every ringgit invested in 'Capacity Building' provides the highest returns for the benefit of all Malaysians
First E: Education
The NEM already stated the need for at least 3.3 million quality workforce. This includes for more than half to be first degree and diploma holders.
To produce quality workforce requires quality education.
Before I proceed, I would like to note that the recent announcement by the Deputy Prime Minister who is also the Education Minister that vocational education will be revamped is commendable.
The suggested actions to be taken are:
Depoliticize Education
The Deputy Prime Minister’s recent statement of his inability to take action on the case of the two principals for racist remarks due to administrative procedures may have an unintended consequence of reaffirming the separation between politicians and the civil service.
It is hoped that this ‘depolitisation principle’ includes all government ministries and to a certain extent also to the judiciary and other institutions. I hope it is not selectively applied for political expediency only.
Removing the Universities and University Colleges Act (UUCA) will add towards improving the innovation culture and quality standards of tertiary education to meet NEM objectives profoundly.
· Pre-school, Primary And Secondary School Enhancements:
Offer Pre-school education to all Malaysian children
The current education NKRA achievement where 54,569 children have benefited from 1,358 pre-school classes is a step in the right direction.
However, it should be accelerated to cover all children numbering at least 1.5 million for three pre-school age group cohorts.
Enhance teaching capacity
- Hire more teachers and assistant teachers by 50%
- Upgrade teacher qualification and professionalism
- Increase salaries by 50%
Enhance school curriculum
Move towards a critical and creative thinking approach including for examination questions.
Increase School Hours
Adding 45 minutes daily can increase academic achievement significantly.
Single session schooling
Build more new schools and additional classrooms in existing schools. Also continue to fully equip them with ICT infrastructure.
· Tertiary Education Quality, Accessibility and Affordability
In summary the following should be considered for tertiary education excellence:
-Greater Autonomy
-Massive Phd Programs for Academic Staff
-Increase Research and Development capacity
-Increase Salaries
-Hire Foreign Academic Staff Talent
-Introduce Ranking System
-Convert PTPTN loans to scholarships
-Provide more scholarships and subsidies
All these actions would require political will and increased public financing to succeed.
The political will to depoliticise and democratize education along with repealing the Universities and University Colleges Act (UUCA) will signal the government’s sincerity and commitment to make the NEM a true success for all rather than just for a few Malaysians.
From a public finance perspective, even if the above measures add another 4.5% to the government’s 4.5% average education spending for a total 9% of GDP annually for the next 10 years, this will indicate to the people and the international community of our determination to meet the NEM objectives.
As a possible source of funds, I had proposed earlier that 30% of Petronas annual profit be a mandated contribution to a National Education Fund. This also would include implementing an NEP Bumiputera Equity Redistribution Plan (Quota – in a –Quota) where 25% of current Bumiputera equity ownership of both publicly listed or privately held companies be sold at par-value (which is the official equity ownership calculation criteria) to the same National Education Fund entity.
Second E: Empowerment
One of the most if not the most important key success factor for NEM’s success is innovation. And innovation needs freedom. Freedom can only come from empowering society.
To empower society, I had suggested that we need to add a fifth pillar to the national transformation agenda which is already based on four pillars of 1Malaysia, GTP (Government Transformation Plan), ETP (Economic Transformation Plan) and 10th Malaysia Plan, to be called the PRP (Political Reformation Plan).
PRP includes repealing all anti-democratic laws, respecting separation of powers, reforming national elections and restoring local government elections, returning the judiciary’s and other state institution’s independence, fighting corruption, ensuring a free media and by abiding to the true meaning of our constitution.
By doing so, I am sure that the international community specifically the foreign investors will find it attractive to return and contribute more than the 25% FDI needed to finance the ETP.
Third E: Efficiencies
There are three efficiencies that must be considered to make NEM successful.
They are Government Service Efficiency, Market Efficiency and Social Security Efficiency.
- Government Service Efficiency
The current Government Transformation Plan (GTP) already addresses this matter to a certain extent.
However, I hope that the initial trend of depoliticising the civil service inadvertently introduced by the Deputy Prime Minister in regards to the two principal racist remark affair shall be a permanent feature to transform the government as planned.
I would also suggest that more talented Malaysians be recruited into the civil service by making it more attractive with market-rate salary and benefits. I believe quality should be the main consideration as we already have quantity with a huge civil service.
We also need a significant and empowered technocracy (i.e. professionals with specialized skills just as in Singapore, Taiwan and Korea.) There is no point in developing our human capital development to a very high level in these areas if they are not then placed in senior decision-making management and administration positions. It is possible to make bureaucrats out of technocrats but not the other way around. They must be empowered, evaluated and promoted based on achievements and track record.
Another important factor that will improve government efficiency and accountability is to return the Local Government Elections immediately. This third tier of government will provide a faster response by the government in delivering services for the real needs of the ratepayers.
- Market Efficiency
Information or rather the quality of information is necessary for market efficiency.
This would include timely, accurate and consistent information on policy, events and plans.
One of the ways that information is reliable is to allow for a free media.
Therefore, as a step forward, I hope the government will allow more permits for daily newspapers to be approved including my own permit for Utusan Rakyat.
Structural distortions by favorable policy and selective benefits to certain sectors, economic leakages, corruption, opaque procurement practices and inconsistency policy statements will never make NEM a success for all stakeholders.
- Social Security Efficiency
The households who live below the poverty line must be assured of equitable assistance from the government. This includes targeted subsidies for essential goods and services such as health and education.
As a first step it is necessary to review the Poverty Line Income (PLI) which should be RM1,886 rather than the government’s PLI average of RM800 per household . This would ensure existing policies and programmes are realigned accordingly to provide an effective safety net for the people.
Another step is to implement a living wage of at least RM1,500 per month.
And to ensure affordable living expenses, the government must enforce anti-monopoly laws across all sectors combined with fighting corruption and white collar crime that add cost to prices for consumers.
Fourth E: Economic Growth
I fail to see how Education, Empowerment and Efficiencies with the suggested actions are not crucial contributing factors for Economic Growth.
The absence of policies, funding and political will to implement these factors will only add to the current skepticism in the NEM initiative.
I hope that our economist and policy makers will add to this discussion with more details.
I also hope that a more constructive debate on these factors will take place with all stakeholders especially in the next Parliament sitting.
Furthermore, I would even dare to suggest that implementing the ‘4E’ formula will definitely benefit the current government’s standing and make the opposition more competitive for votes.
This is a price I believe the people and even the opposition should be willing to pay for a better Malaysia.
The cost of doing the right thing is nothing compared to the cost of a failed NEM plan leading to a failed nation.
[1] Richard Leete, "Malaysia: From Kampung to Twin Towers", p. 169
The ETP is a ‘specific programme’ driven by private sector investment
By The Star
KUALA LUMPUR: The Economic Transfor mation Programme will not discriminate against any state nor is it a stimulus package, said Minister in the Prime Minister’s De partment Datuk Seri Idris Jala.
“Projects under the ETP, which is driven by private sector investment, will cut across the states.
“No state will be left out. Many Entry Point Projects (EPP) are also in Penang and Selangor,” he told reporters yesterday after delivering a talk on the ETP at the National SME Economic Transformation Conference here.
On complaints by the Pakatan Rakyat-led Selangor government that it was being sidelined, Idris said Selangor was invited to join the ETP Lab.
“We have the same level of engagement with individual states be it Selangor, Sabah or Sarawak. There is no particular preference,” he said, adding that he had yet to meet the Chief Ministers of Sabah and Sarawak.
The private sector, he said, would look at which location was more feasible for their investment regardless whether it was a Pakatan or Barisan Nasional-ruled state.
The ETP, he said, was not a stimulus package but a “very specific programme” helmed by the private sector compared to previous packages which were by the Government.
Idris also said foreign labour policies would be customised according to sectors to ensure there was sufficient human resource to make the ETP work while ensuring security concerns were addressed.
Citing an example, he said the oil palm industry needed a lot of foreign labour and it must not face problems in bringing the workers in.
“We cannot have one policy across the sector. But at the same time, we can also improve the technology so that we do not rely too much on foreign workers,” he added.
Idris said they had received encouraging response from the local and foreign private sector since the ETP Open Day last week with more investment announcements expected next month.
Emphasising the importance of local direct investments, Idris said it would make up 73% investments for the 131 “catalytic and transformational” EPPs.
The private sector will fund 92% of the US$444bil (RM1.37tril) investment projects under the ETP. The remaining 8% will be from the Government which would act as an enabler.
On concerns over the execution process of the ETP, Idris said they would follow the model for the Government Transformation Pro gramme which yielded positive results.
The ETP, which has 12 National Key Areas, is expected to raise the country’s Gross National Income to RM1.7tril and generate 3.3 million jobs by 2020.
It would be launched by the Prime Minister Datuk Seri Najib Tun Razak on Oct 26.
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