KUALA LUMPUR, Oct 15 — Budget 2011 is set to slash ministerial project allocations by half and focus more on the Prime Minister’s showpiece projects under the six National Key Results Areas (NKRA) and the 12 National Key Economic Areas (NKEA).
The Malaysian Insider understands that the budget ceiling will total just over RM100 billion under a two-year rolling plan with just about a third allocated for fresh projects generated under the various ministries. The remainder will be for NKRA and NKEA projects as well as ongoing projects from the previous development plan.
Sources told The Malaysian Insider that this was to curb corruption from the lower-level government offices, claiming that this was where most of the allocations were being siphoned off.
“You can give an allocation of a hundred ringgit for repair works requested from a district office but here is were RM60 will go for the actual work done and RM40 is being pocketed,” said the source who is a government official.
He added that the government would now be more focussed on its areas for development using the NKRAs as its target platform.
“The hierarchy for the generation of projects previously was like this — suggestions or applications are made from the Village Development and Security Committees (JKKK) at the micro-level, to the district offices, then to the state and finally to the federal. And then we also have federal projects generated by the government.
“The problem of corruption lies in the first process. Money gets lost along the way because everyone wants a cut.
“Now, we are changing the approach. We will specify the projects... focus goes more on government-generated projects under the NKRA and the NKEA, where we have a more specified and structured approach of development,” said the official.
He added that the government also planned to take giant leaps for the country’s human capital development.
“You need human resources. Unfortunately, because of corruption, focus was not on developing our talents and skills but on beefing up our infrastructure and facilities because it is easier to make money from there.
“What we need more is skills development from across the board in all industries. This is where our focus should lie,” he said.
He also promised that the government would be taking slow but sure steps towards a further liberalisation of the economy, in hopes of expanding the economic cake for all.
“Najib understands that we need to move on from here on and not to keep focussing on fighting for crumbs. That is what groups like Perkasa are doing... they are fighting to save the crumbs for themselves.
“But why look at it this way? Why not open up the economy to all so that the economic cake is expanded and then there will be more for all races to enjoy,” he said.
He noted that the ordinary Malaysian on the street wanted very simple needs in life – equal business opportunities, shelter, food, clothing, education and the opportunity to make money.
“We can give them this, why not? We just need to open up the economy, allow it to be determined by market forces. That is what the fuel subsidy rationalisation scheme is all about. In about five years time, our fuel price will be determined by the market and only those in the lower income bracket will be eligible to buy subsidised fuel.
“Why give subsidies to those who do not need it?” he said.
Analysts and the opposition have predicted that the Budget 2011 will likely be an election budget, burdened by a need for the government to kickstart Najib’s many economic initiatives and at the same time, to face the looming polls ahead.
The prime minister promised yesterday that the budget will be a “budget by the rakyat”, underlining several key areas of concern that will receive prominence like employment issues, education and taxes and subsidies.
According to a Reuters report earlier today, economists also said that the budget would be a measuring stick on the Najib administration’s seriousness in pursuring reforms as laid out in his maiden New Economic Model (NEM) and Economic Transformation Programme (ETP) initiatives.
The Najib administration has underlined 12 NKEAs under a comprehensive economic agenda, namely the ETP, which is built on the 10th Malaysia Plan, the NEM and the governing principles of “1 Malaysia, People First, Performance Now”.
The 12 NKEAs are the oil, gas and energy, palm oil, financial services, tourism, business services, electrical and electronics, wholesale and retail, education, healthcare, communications content and infrastructure, agriculture and the Greater Kuala Lumpur/Klang Valley.
Najib has also announced six NKRAs, attached with Key Performance Indicators, including efforts to reduce crime rate, the war against corruption, expanding access to quality and affordable education, raising the standard of living of the lower-income group, strengthening infrastructure in the rural and remote areas, and improving public transportation.
Critics have however continuously charged that Najib’s economic reforms were nothing but a series of radical rhetoric and a barrage of incomprehensible acronyms, accusing the Prime Minister of being too afraid to whip his own Umno ministers into shape.
The opposition has also claimed that Najib was “pulling a Pak Lah, pointing out that the premier’s failure to take a stand on several racially-charged incidents showed that he was afraid of stepping on the toes of his own men in Umno.
The Malaysian Insider understands that the budget ceiling will total just over RM100 billion under a two-year rolling plan with just about a third allocated for fresh projects generated under the various ministries. The remainder will be for NKRA and NKEA projects as well as ongoing projects from the previous development plan.
Sources told The Malaysian Insider that this was to curb corruption from the lower-level government offices, claiming that this was where most of the allocations were being siphoned off.
“You can give an allocation of a hundred ringgit for repair works requested from a district office but here is were RM60 will go for the actual work done and RM40 is being pocketed,” said the source who is a government official.
He added that the government would now be more focussed on its areas for development using the NKRAs as its target platform.
“The hierarchy for the generation of projects previously was like this — suggestions or applications are made from the Village Development and Security Committees (JKKK) at the micro-level, to the district offices, then to the state and finally to the federal. And then we also have federal projects generated by the government.
“The problem of corruption lies in the first process. Money gets lost along the way because everyone wants a cut.
“Now, we are changing the approach. We will specify the projects... focus goes more on government-generated projects under the NKRA and the NKEA, where we have a more specified and structured approach of development,” said the official.
He added that the government also planned to take giant leaps for the country’s human capital development.
“You need human resources. Unfortunately, because of corruption, focus was not on developing our talents and skills but on beefing up our infrastructure and facilities because it is easier to make money from there.
“What we need more is skills development from across the board in all industries. This is where our focus should lie,” he said.
He also promised that the government would be taking slow but sure steps towards a further liberalisation of the economy, in hopes of expanding the economic cake for all.
“Najib understands that we need to move on from here on and not to keep focussing on fighting for crumbs. That is what groups like Perkasa are doing... they are fighting to save the crumbs for themselves.
“But why look at it this way? Why not open up the economy to all so that the economic cake is expanded and then there will be more for all races to enjoy,” he said.
He noted that the ordinary Malaysian on the street wanted very simple needs in life – equal business opportunities, shelter, food, clothing, education and the opportunity to make money.
“We can give them this, why not? We just need to open up the economy, allow it to be determined by market forces. That is what the fuel subsidy rationalisation scheme is all about. In about five years time, our fuel price will be determined by the market and only those in the lower income bracket will be eligible to buy subsidised fuel.
“Why give subsidies to those who do not need it?” he said.
Analysts and the opposition have predicted that the Budget 2011 will likely be an election budget, burdened by a need for the government to kickstart Najib’s many economic initiatives and at the same time, to face the looming polls ahead.
The prime minister promised yesterday that the budget will be a “budget by the rakyat”, underlining several key areas of concern that will receive prominence like employment issues, education and taxes and subsidies.
According to a Reuters report earlier today, economists also said that the budget would be a measuring stick on the Najib administration’s seriousness in pursuring reforms as laid out in his maiden New Economic Model (NEM) and Economic Transformation Programme (ETP) initiatives.
The Najib administration has underlined 12 NKEAs under a comprehensive economic agenda, namely the ETP, which is built on the 10th Malaysia Plan, the NEM and the governing principles of “1 Malaysia, People First, Performance Now”.
The 12 NKEAs are the oil, gas and energy, palm oil, financial services, tourism, business services, electrical and electronics, wholesale and retail, education, healthcare, communications content and infrastructure, agriculture and the Greater Kuala Lumpur/Klang Valley.
Najib has also announced six NKRAs, attached with Key Performance Indicators, including efforts to reduce crime rate, the war against corruption, expanding access to quality and affordable education, raising the standard of living of the lower-income group, strengthening infrastructure in the rural and remote areas, and improving public transportation.
Critics have however continuously charged that Najib’s economic reforms were nothing but a series of radical rhetoric and a barrage of incomprehensible acronyms, accusing the Prime Minister of being too afraid to whip his own Umno ministers into shape.
The opposition has also claimed that Najib was “pulling a Pak Lah, pointing out that the premier’s failure to take a stand on several racially-charged incidents showed that he was afraid of stepping on the toes of his own men in Umno.
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