Share |

Thursday, 23 February 2012

Government's Transformation Plan Now Showing Positive Results

KUALA LUMPUR, Feb 22 (Bernama) -- Ever since the government embarked on its transformation programmes almost three years ago, the results are beginning to show on many fronts.

The positive facts and figures from the many initiatives speak for themselves and have even confounded the harshest of sceptics as far as the country's administrative reforms and economic governance are concerned.

What is even more heartening is that progress has been made against the backdrop of a dismal global economy and chilly headwinds, especially from Europe.

It just goes to show that the government has been right on track and working overtime to tweak the economy to make it even better, like inducing a better business environment.

The more conducive environment has also benefited investment institutions like the Employees Provident Fund, which recently declared one of its highest dividend payouts at 6.0 per cent to its 13 million members.

The government's primary focus has been on delivery and outcomes to benefit the rakyat. And the latest indicators are clearly evident: people's lives have been positively impacted, business activities are up, investor confidence is high, trade and investment are at record levels, economic growth is healthy and deficit is down.

All this did not happen by accident. This has been done through deliberate government policies and implementation of people-oriented programmes.

Red tape has been cut and several sectors liberalised, leading to Malaysia improving its ranking by five places to 18th spot in the World Bank's Ease of Doing Business survey. The country also moved up five rungs in the World Economic Forum's Global Competitiveness Report to the 21st most competitive position.

In a short period of just three years, the government had implemented numerous projects and offered assistance to the poor and needy, including pensioners, widows of uniformed personnel, taxi drivers, school children and university students.

With free education at primary and secondary government schools, all Malaysian children now have fair and equal access to education. It is undoubtedly the foundation for the future as education is the best investment to develop talent to propel further development.

Dilapidated homes have been repaired, better and affordable housing offered to others, public transport has been improved with additional plans in the pipeline, crime has been reduced, outdated laws are being replaced, and there is more openness, transparency and greater room for expression.

Rising global food prices, for example, sugar, are absorbed by the government so that lower income earners are not adversely affected.

Medical facilities are brought to the doorsteps of many in the low-income groups with the 1Malaysia clinics; basic food items are made available with savings of up to 41 per cent at Kedai Rakyat 1Malaysia. Relatively cheap basic items are also available at Kedai Ikan Rakyat 1Malaysia and Menu Rakyat 1Malaysia.

These initiatives have helped to improve the quality of life for more Malaysians, put a smile on the faces of many in both the rural and urban areas, brought hope and eased the burden of the lower income groups.

Plans and policies have also been put in place to facilitate businesses and small enterprises and generate employment.

The domestic economic environment, even in the face of a challenging external environment, remains attractive to foreign and local investors. This is clearly evident from the record RM148.6 billion investments in the manufacturing, services and mining sectors registered last year, up 40.7 per cent from 2010.

Foreign direct investments, which indicate the confidence level of the hard-nosed business and investment community in government policies and the future of the economy, climbed to RM32.9 billion last year, surpassing the pre-crisis level of RM29.1 billion in 2007.

Gross domestic product (GDP) growth for 2011 was 5.1 per cent, an achievement in line with the government's forecast, with domestic demand being the main driver of growth.

As of November 2011, about 53 per cent of the 131 targeted entry point projects have taken off. Of the total value of RM171 billion in committed investments, an estimated RM15 billion had been realised by end-2011.

Credit Suisse has cited that Malaysia's GDP growth would continue to outperform that of other export-oriented economies and Singapore's Business Times said that Malaysia's "economy looks to be region's outperformer".

The positive outlook and confidence are not misplaced as many other economic indicators are also moving in the right direction. Government revenues increased to RM185.4 billion last year while the fiscal deficit fell to 5.0 per cent and the trend is towards further reduction this year.

Total trade at RM1.27 trillion last year was a record, accounting for 120 per cent of GDP and representing one of the highest percentages in the world.

Activity on Bursa Malaysia was also encouraging with market capitalisation rising to RM1,284.54 billion last year from RM663.82 billion in 2008 while total turnover rose to RM438.17 billion from RM313.09 billion in 2008.

With the impending listing of Felda Global Ventures, the local bourse will be given a boost and investors more investment choices.

Consumer prices are expected to stay in check as Kenanga Research says that the country's inflation is expected to ease to 2.9 per cent this year from an estimated 3.2 per cent in 2011 despite the rise in global oil and food prices.

Besides the Malaysian economy being quite insulated because of fuel subsidies, the research house also expected the ringgit to further appreciate in 2012 and help reduce imported inflation.

The government's initiatives are all designed to meet the needs of the people in mind in keeping with the "People first, Performance now" philosophy, especially with regard to their three main concerns -- state of the economy, job security and rising food prices.

And it does not come as a surprise that these concerns are being addressed with increasing vigour under the Government Transformation Plan and the Economic Transformation Plan to bring more benefits to the rakyat.

No comments: