THE National Transformation Programme (NTP) is a success, but can this success be sustained?

Prime Minister Najib Razak proudly presented the NTP Annual Report 2017 with much fanfare at the Malaysia International Trade and Exhibition Centre on March 24.

He was interviewed by NTP adviser Idris Jala on a wide range of socio-economic issues, based on the concerns raised in a survey of Malaysians.

The PM said: “Malaysia is now at the cusp of rapid change”, and stressed that “the government is determined to drive the country’s development to greater heights in the future”.

He further “urged Malaysians to place their confidence in the efforts undertaken”. All this is well and good. But many Malaysians believe that while we can celebrate our NTP successes in the past, the future progress can be questioned, unless we adopt new and fundamental development strategies.

Even the past successes can be qualified, as they have shown some weaknesses that have not been highlighted by the NTP report. NTP’s successes have been rightly played up, but the pitfalls have been wrongly played down.

How can we place more confidence in the government’s ability to sustain and strengthen the NTP success in the future? In fact, the NTP report should have shown more balance and indicated how it planned to overcome current structural weaknesses to ensure sustainable successes.

So let’s examine, how the NTP report could have been better balanced to ensure more sustained successes in the future.

First, while it is true that the economic growth rates and especially the 5.9% expansion last year, have shown much success, what assurance is there that we will be as successful in achieving high rates of growth in the future? What new strategies do we envisage to attain faster and sustained economic expansion? Even the wide public consultations on the National Transformation 2050 plan (TN50) do not indicate the vital need for major changes in our socio-economic make up. It appears more of the same – and this is unwise for future success sustainability.

How can we assume that we are “no longer stuck in the middle income trap” given our reluctance to introduce more essential competitive policies, to take on our economic rivals on Asean and, indeed, all over the world? The NTP has to undergo more structural changes, in order to sustain its laudable successes.

Second, higher growth rates have not sufficiently raised the standard of living and quality of life of the majority of our Malaysians in the low- and middle-income groups. In fact, the people have been suffering from low salaries and incomes and steadily rising prices, that have depressed their sense of well-being.

The Happiness Index for Malaysia does not show that our people are really happy. The index could be higher. Will the government use this UN-sponsored index more extensively in our annual budgets and the five-year plans to ensure that high growth rates bring greater benefits to the middle and low-income groups?

What is the use of high growth rates when the rich gain much more than the poor? Instead of being confident in our economic growth, the people could get more depressed and even feel neglected by public policies.

Third, unemployment should decline and not rise with higher economic growth. But among the youth, especially new graduates, unemployment has been rising. There must be many things that are wrong in our economic planning and implementation for this sorry state of affairs. For instance, our education system in schools and also tertiary and university levels should take some criticism for this sad situation. Is there an avoidable mismatch in our labour market ? Are our new graduates weak in critical thinking, subject content and communication in the English language? Are we churning out graduates who meet the rapidly changing demands of the growing challenges of the Digital Economy? If this is the case, can the unemployed feel confident of benefitting from the projected “greater heights in the future”? We have to be careful to avoid social unrest emerging from this dissatisfied sector of society.

Fourth, our national institutions are vital for our survival and further success. The successes or failures of the Institutions were unfortunately not emphasised in the NTP report .

Economic growth, better income distribution, higher quality of life and greater happiness cannot be built and sustained without having stronger national institutions. Thus, more efforts have to be made by the government, to strengthen national institutions.

The parliamentary system, judiciary, election commission, Malaysian Anti-Corruption Commission, civil service and police, among others, and the fight against money politics, have to be stepped up. This is essential to strengthen and sustain national unity, peace and security and racial and religious harmony. The NTP report should focus on the soft side of development and not be preoccupied with hard infrastructure development to achieve sustained success.

Fifth, the 17 United Nations Sustainable Development Goals, including environmental protection, could have been given much more prominence in the NTP report.

What is the use of the emphasis on economic growth if we destroy nature?

All the infrastructure will become counterproductive if we don’t prioritise a more environmentally sustainable future.

We hope future NTP reports will stress not only on growth and infrastructure projects, but also on basic needs, human rights and attaining the UNSDGs, to benefit Malaysians. We need a more bottom up, and a less top-down approach in our socio-economic and political development .

Malaysian talent and skilled workers, who are short supply, will then be encouraged to stay and contribute to a more progressive Malaysia.

The NTP report launched is most welcome, but unless more structural and long term reforms are introduced, past successes will not be sustainable.

We have to transform more radically and change direction to truly breakout of the Middle Income Gap. If we don’t do so soon, then our economy, will just chug along, like an old tired locomotive!

In fact, as a nation, we may decline in our prospects for further progress and national well being. These structural reforms must be introduced by the NTP, as soon as possible to meet our national challenges and aspirations for TN 2050!

We can’t afford to delay, but if we take the challenge to transform sooner rather than later, and at a faster pace, then a bright future awaits us all. For this reason, we must all vote wisely for the best candidates, regardless of race, religion or monetary incentives. – March 26, 2018.

* Ramon Navaratnam is chairman of the Asli Centre for Public Policy Studies. He 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.