PETALING JAYA – The mid-term review of the 12th Malaysia Plan (12MP) is taking the nation in the right direction as the government tries to grapple with unexpected economic developments in the world, said Universiti Tun Abdul Razak economist Dr Barjoyai Bardai.
He said the government has been forced to increase spending by RM15 billion under the 12MP to deal with realities on the ground.
"The Unity Government has taken a bold move with the 17 initiatives to push the economy forward.,” he said.
"Concentrating on technology, investment, green technology, digital economy and food security is a means to propel the nation's economy to the next level."
Barjoyai welcomed the government's zero-poverty plan by setting aside RM1.5 billion to deal with absolute poverty.
However, he stressed that while the government puts about 150,000 families into the category, the figure should actually be closer to 500,000.
He believes the government would need to spend about RM15 billion over the next three years to deal with absolute poverty.
"The problem of absolute poverty cannot be resolved overnight. It is important for the government not to merely provide those in poverty with ‘fish’.
“Instead, they should be provided with skills to become small businessmen or have their skills upgraded to help them earn a higher income. "
He pointed out it could take up to ten years to achieve the government's target.
Prime Minister Datuk Seri Anwar Ibrahim had tabled the mid-term review with the theme 'Malaysia Madani: Sustainable, Prosperous, High-Income' at the Dewan Rakyat on Monday.
It was carried out to evaluate the achievements of the five-year plan in its first two years (2021-2022) and the direction for the next three years (2023-2025).
A total of 17 major measures were introduced, covering 71 main strategies and initiatives.
The debate on the review, as presented by Anwar who is also finance minister, is now ongoing at the Dewan Rakyat.
Slowdown among trading partners
Sunway University economics professor Dr Yeah Kim Leng meanwhile said that the government has no choice but to revamp the 12MP as it was based on the economic situation during the Covid-19 pandemic.
He said fine-turning was needed to meet the current changes in the global economy.
He added the changes made to the 12MP during the mid-term review are just the “tonic” needed for economic growth.
"The government needs to be on the ball to deal with the economic reality over the next few years.
"The economic slowdown in the country's major trading partners and other global issues must be taken into consideration when developing the nation’s economic future.
"The plan is in line with the current thinking of the Unity Government as it tries to uplift people out of poverty."
He pointed out that by concentrating on issues such as the digital economy and the zero-carbon plan, the government is on the right track to further develop the economy.
Be equipped for global shocks
Yeah added that the government needs to work on reducing the vulnerabilities faced by the economy by restructuring those sectors that are being left behind.
"The government must identify economic sectors that are vulnerable to shocks and strengthen them to face sudden changes.
"It must, on the whole, be prepared to deal with any kind of global economic shock by making the economy more robust."
He said that at the same time the government needs to reduce subsidies while working on uplifting the standard of living of the people.
He added that it is vital for the government to reduce the income gap by helping the lower income group grow their economic well-being.
He said the government has to find out about the economic issues facing the poor and help them solve them to in turn push them to the next level. – The Vibes, September 13, 2023
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