KUALA LUMPUR: The Najib administration's ambitious Economic Transformation Programme (ETP) is but a grandiose blueprint that has all but the necessary reforms needed to revitalise the flagging economy, DAP Klang MP and economist Charles Santiago said today.
Santiago said much of the modus operandi of the projects identified in the ETP were carbon copies of those under the Mahathir administration where the economy relied chiefly on pump-priming activities.
"What we are seeing under the ETP is a massive infrastructure roll-up for the next 10 years when we already have excessive property market hangover," he told FMT.
"Where is the transformation? There is no transformation of the economy or of such because the main drive to the ETP is exactly what (Dr) Mahathir (Mohamad) did when he was the prime minister," he added.
The ETP, through the 12 national key economic area labs, had identified 131 entry point projects to raise US$444 billion (RM1.4 trillion) of private money needed to transform the country into a high-income nation by 2020.
Santiago pointed out that most of the projects identified are infrastructural, such as the KL mass transit system, the high-speed rail system to Singapore and Penang and the construction of a huge oil storage facility next to Singapore.
Apart from the fact that it reflects the lack of innovation-driven market under the ETP, Santiago noted that scepticism pervades as to whether the private sector would respond.
"Where is the evidence to show that the private sector is going to take up the projects?" he asked. He said that for the past decade, the growth of domestic and foreign private investments in the country had merely seen a paltry 3% to 4% increase.
No institutional reform under ETP
The Performance Management and Delivery Unit (Pemandu) said it had identified investments worth RM1.4 trillion over 10 years, of which 60% would come from the private sector, 32% from
government-linked companies and 8% from the government.
Pemandu, led by former corporate captain and Minister in the Prime Minister Department Idris Jala, has also gone on a vigorous campaign to bridge the public-private gap, saying that the synthesis
between them is pivotal in pushing the economy forward.
But Santiago is not convinced of its feasibility unless the government recognises the need to cut down on the highly bloated civil service and red tapes, which have turned off many investors.
A recent World Economic Forum (WEF) report showed Malaysia's investment appeal dropping from 17 to 42. It cited the need for institutional reforms should Malaysia wish to see itself compete with its economically stronger neighbours like Indonesia and Thailand.
None of the initiatives under the ETP have incorporated the suggestions by the WEF report, said Santiago and this has become a stumbling block to Malaysia's economic growth.
Focus on developing talents
Santiago said Malaysia must focus more on developing human capital and strengthening the domestic market rather than relying heavily on foreign investments and technology, which is detrimental to the country's target for an innovation-driven economy.
"What we need is a proper reform of the education system where we can produce students with talents and build the economy on this," he said.
The Najib administration was forced to concede that it is losing local talents coupled with capital outflows and is striving to find ways to retain them.
However, observers, economists and opposition leaders alike, remain unconvinced of all the efforts made by the Najib administration so far to boost the economy.
No comments:
Post a Comment