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.
Merdeka Center director Ibrahim Suffian expressed concerns that Idris’ bold development plans under the ETP which includes the new Kuala Lumpur mass rapid transit (MRT) system would not completely take-off.
“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.
However, PAS vice-president Salahuddin Ayub dismissed Idris as another Barisan Nasional (BN) politician misleading the public with mega projects.
“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.
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.
Merdeka Center director Ibrahim Suffian expressed concerns that Idris’ bold development plans under the ETP which includes the new Kuala Lumpur mass rapid transit (MRT) system would not completely take-off.“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.
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