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BACK to the Future is a 1985 science-fiction adventure comedy film where a teenager was sent back 30 years to 1955 to repair a damage to history.
As in previous years, for Budget 2018, the prime minister has invited Malaysians to share ideas. I have always accepted the invitation and have given suggestions and comments since Budget 2015, which were also published.
About a week ago, the PM said Budget 2018 will cover the people’s aspirations presented at the 2050 National Transformation (TN50) dialogue series.
For TN50, the government is engaging young Malaysians who would shape the nation’s future. Looking back at the themes since 2015, it has always been about the rakyat. Therefore, it is only proper for the views of the rakyat to take centre stage.
However, there are only 14 different categories the public could submit their ideas on. Honestly, there are other major issues like migrant workers, weak ringgit, suppressed wages, the changing competitive landscape, food scarcity, corruption, adherence to regulations, sustainability, etc that needs to be examined in a comprehensive and competent manner.
Be that as it may, in this article, I wish to depart from the quantitative bits that I focused on and recommended in the last three years.
Here, I wish to cover areas that would support the budget to be more meaningful and acceptable by the more than 31 million Malaysians.
A few days ago, an ex-deputy BNM governor warned that our economy is showing signs of fatigue. We are still focussing on the areas that helped build our country since the 1980s.
We should be moving away to be more technically advanced, more productive and innovative and look at more value-add initiatives.
We should avoid highlighting graduates selling nasi lemak or encouraging the rakyat to be Uber drivers.
As for productivity and innovativeness, billions of ringgit have been budgeted and spent since 2011. The average annual productivity growth from 2010 to 2015 was only 1.8%. This is seriously short of the 11th Malaysia Plan’s targeted level of 3.7% to be achieved by 2020.
For the public sector, the percentage share of public sector to total employment was 8.4% in 2013, increasing to more than 9% in 2016.
Civil servants need to continuously improve to enhance performances that will give the rakyat the services and comfort that are expected and which are still lacking. Productivity has been identified as a crucial game-changer, especially against the backdrop of the “Fourth Industrial Revolution”.
Efficient and effective use of resources will help and similarly, the opposite is true when there are wastages or mismanagement.
On migrant workers, it has been stipulated under the 11MP that the ratio of foreigners in the country’s labour market must not exceed 15% or 2.1 million. But if we include illegals, the ratio would have reached more than 40%. Policies are not holistic and there is little coordination and transparency among relevant ministries.
Last year, it was revealed in Parliament that foreign workers repatriated RM119 billion from 2011 to 2015. Remittance volume sent home increased 23.2% to around RM35 billion in 2015. And this did not include funds that flowed out of the country illicitly.
It must be also noted that they hardly pay any tax.
This migrant-worker issue also has a bearing on the forex rate and the weak ringgit. The ringgit may have strengthened a little versus the US dollar mainly due to the latter’s weakness but we are still weak against our neighbours’ currencies.
Export growth will be a priority under Budget 2018 and we welcome foreign workers to enjoy low-cost in production but at the same time we are suppressing wages that has a direct effect on locals.
We should learn from China i.e. moving from low-cost producer status. At present, industrial intensity in the country is still inadequate to create enough high-paying jobs.
The changing competitive landscape, especially from low-cost producing countries, will have direct impact on Malaysia, given our focus on encouraging exports of manufactured goods.
We are also short of skilled workers. Currently, less than 28% of the total workforce is considered skilled.
In addition, there is a lack of creativity and innovation in the workforce. The 11MP target is well below the proportion for skilled workers compared with developed economies, which are at least half of the total workforce.
Unless we improve productivity as discussed above, we will be bypassed by foreign investors with high value-added content.
Apart from clean water, food drives the world. Agricultural productivity is important for a country’s balance of trade and for the security and health of its population.
Due to global warming and natural disasters, there has been a drop in world agricultural production. When food-producing countries experience a drop in their agricultural production, the natural reaction is to suspend food exports.
Malaya faced a food crisis during the Japanese occupation due to the policy of turning agricultural land into rubber plantations. Many people died from the resultant famine. In the interests of food security, it is prudent to achieve self-sufficiency in food production. Further, land is scarce.
Over the last few years, corruption has been hogging the limelight. Just a few days ago, there was news of illegal logging.
Illegal loggers and corrupt enforcement officials have short-changed the country to the tune of billions of ringgit. So does smuggling and illegal land usage. Lucrative government contracts with lopsided terms and conditions are all too familiar.
Is honesty not the best policy in Malaysia?
Another matter of grave concern is the adherence to laws and regulations or regulatory compliance. It was a few days ago that we were presented with news that the appointment of the chairman of Felda Global Ventures (FGV) was not in accordance with established procedures.
The announcement was made but FGV was in the dark without any formal notification from the minister of finance.
We can boast of the splendid first two quarters’ growth figures but are they sustainable?
The abundance of natural resources has been indispensable to our growth, but it has come at significant human and environmental cost.
We may have met all eight of the UN’s Millennium Development Goals (MDGs) before the 2015 deadline, but our PM has admitted that the MDGs “fell short” of achieving truly sustainable development.
There are many challenges that lie ahead to fulfil our goal of balanced, inclusive and sustainable development and realise Vision 2020. However, the indicators for long-term growth do not look very good and are showing signs of fatigue.
Honestly, I have trouble distinguishing the urgency and importance between Vision 2020 and TN50 for Budget 2018 since prominence is given to the latter.
The former is only two budgets away. Should we not give priority to it and take stock of where we are? It was a promise the government of-the-day made close to 30 years ago and I trust we should keep our promises.
Here, I wish to reiterate my previous suggestion on the government to hold itself accountable. I did suggest for the finance minister to provide comparisons between the budgeted and actual amounts spent for the previous year and also comparisons between the budget and actual spent up-to-date for the current year.
In addition, comments should be made publicly available on the achievements or miscues in the various thrusts or strategies in the previous year’s budget.
It is to be noted that Malaysia’s rankings have dropped in four global indexes – on the World Economic Forum’s Global Competitiveness Index, World Bank’s Ease of Doing Business, Global Innovation Index and the Corruption Perception Index (CPI). If we include FIFA rankings, it will make it five…
I am not suggesting that we have to suffer severe emotional distress as a result of the above but to show some concerns to where we are heading. Surely there are gaps between plans and the actual implementation but we must step up our desire to put things right.
In the last two budget speeches, Surah Yusuf verses 43 to 49 and Surah An-Nisa’ verse 58 were quoted. For the Budget 2018, I would propose Surah Hud verse 85 be quoted.
“And O my people, give full measure and weight in justice and do not deprive the people of their due and do not commit abuse on the earth, spreading corruption.”
I believe that the youth who contributed ideas at the TN50 townhall sessions will be nearing retirement age in 2050. I am also pretty sure if they come “Back to the present” they will recognise with gratitude the above suggestions.
And when they are “Going back to the future”, they know we have left them a legacy of love, respect and professionalism that they can be proud of.
Even our first PM, the Tunku said, “My ambition is not Mighty Malaysia but Happy Malaysia”.
What say you? – September 12, 2017.
* Saleh Mohammed reads The Malaysian Insight.
* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.
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