Staying the course

By Idris Jala

Every day we receive messages from Malaysians of all walks-of-life. Many are hopeful for the work that goes in to the National Transformation Programme (NTP). Others criticise and question our progress.

One thing is clear. These feedback – good, bad and ugly – demonstrate without doubt Malaysians care about Malaysia and want things to improve.

Last week, the Prime Minister reported on the 2014 results of the Government Transformation Programme (GTP) and the Economic Transformation Programme (ETP). Broadcast live on RTM1, he spoke of our country’s progress since 2010, sharing facts and figures on the economy, jobs, investments, and efforts to narrow income disparity and uplift rural communities.

I believe what gripped the hearts of viewers were stories how socioeconomic improvements have transformed the lives of those living at the edge of poverty and struggling to get by.

Take G Munisamy from Muar, for example. A recipient of the BR1M programme since 2012, the 75-year-old who recently had a heart bypass used his BR1M assistance as “emergency cash” to offset medical costs his monthly pension could not cover.

Up north, we have Asbdullah Ali from Nibong Tebal, a beneficiary from the Azam Tani Programme. Formerly a factory worker who earned RM900 a month, Asbdullah worked his way to be a quail egg supplier and is making a minimum gross profit of RM6,000 a month today.

I am heartened to hear the story of the Murut and Dusun villages which benefitted from a 60km road connecting Pekan Sook to Kampung Sinua in Sabah. This new road makes life a lot easier for villagers to trade, travel and for children to get to school.

In the grander scale of things, our Murut and Dusun friends are just 10,000 of the 2.5 million Malaysians in rural areas who now have access to newly-build roads.

Stories like these inspire us to push on. Our transformation efforts must be inclusive, meaning, no one gets left behind as we march towards our high-income goals.

On the economic front, the ETP is relentless in its pursuit of growth even as we fiercely compete regionally and globally. In 2014, we chalked records and successes, as evidenced:

We have stable economic growth. Amidst low inflation, our GDP steadily grew since the start of the ETP. In 2014, we beat forecasts to record one of the fastest growth in the region at 6%.
We are closing in on high income with National Key Economic Areas (NKEA) as main contributors to Gross National Income (GNI). In 2014, the 12 NKEAs contributed 68% of total GNI. Meanwhile, GNI per capita grew 47.7% from US$7,059 in 2009 to US$10,426 in 2014. The US$15,000 target is within sight.
Employment is on the rise. A total of 1.8 million new jobs have been created with 1.5 million employment opportunities within the NKEA universe since 2010.
Private investment continues to outpace public investment in line with the ETP’s objective to elevate the private sector as the main driver of the economy. Private investment grew 2.5 times between 2011 and 2014 compared to 2007 and 2010. Today, private investment captures the chunk of total investment at 64%.
Our fiscal consolidation measures are on track. We have successfully reduced fiscal deficit from 6.7% in 2009 to 3.5% in 2014, targeting for a balanced budget by 2020.
Government revenue on the rise. We have seen Government revenue rise in the last five years. In 2014, we expect to record RM225.1 billion in revenue, compared to RM213.4 billion in 2013. As we improve in tax collection, we can channel more resources to fund development and improve our social safety nets.
Diversifying the economy and reducing our dependence on oil and gas revenue. By prioritising investment and policy support to 12 NKEAs, our economic pie has become more diverse with manufacturing and service-based industries staking a greater share of GDP. Contribution of oil and gas to Government revenue steadily decreased from 40.3% in 2009 to 29.7% in 2014.
Robust capital market economy. Malaysia remained the largest fundraising destination in Asean for the second straight year in 2014, raising RM22.7 billion through IPOs as well as secondary offerings. Investors are confident in the Malaysian economy and in our ability to compete.
Private consumption is strong. Consumption now accounts for 65.7% of the GDP thanks to a stable labour market, wage growth and private investment activities.
Global endorsements. In the IMD’s World Competitiveness Yearbook 2014, Malaysia’s ranking improved to 12th from 15th in 2013. Pemandu was one of the top 20 most innovative Government agencies in the world, according to NESTA, UK based organisation and Bloomberg Philanthropies.

Working in tandem with other Government programmes, such as the 11th Malaysia Plan, we will sprint through the final lap towards 2020. When I see how far we have come, I know there is more we can accomplish. When we are armed with knowledge, drive and optimism, we are unstoppable.

I urge all Malaysians who care about our progress, to read the GTP and ETP 2014 Annual Reports. To download, log on to http://ar.pemandu.gov.my. These reports include the validated KPI scores of all lead ministers and ministries, an inventory of what has been achieved and what has not, validated by PwC.

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Dato’ Sri Idris Jala is CEO of Pemandu and Minister in the Prime Minister’s Department. Fair and reasonable comments are most welcome at idrisjala@pemandu.gov.my.