ETP: Growth Without Reform?

KPI Minister & Pemandu CEO Idris Jala has made some very bold announcements on the Economic Transformation Plan:

• 191 projects
• RM1.4 trillion
• 3.3 million jobs (high paid)
• 6% growth
• Investment contributors: 60% (private sector), 32% (GLCs), 8% (government)
• USD17k income per capita by 2020

These announcements are made on the back of the current scenario:

• Continuation of affirmative action under NEM and ETP. The government has been largely ambiguous about policy reforms including the NEP. PM Najib has emphasized on the need for a fairer and more inclusive socio-economic policy but gave almost no details on what he meant;
• A lack of confidence in the administration and public institutions, flip-flops in policy making, bureaucracy and bureaucratic issues, institutional and systemic transparency and accountability and others;
• Education system suffering from a lack of substance and quality. Parents are racing to their children overseas. A recent survey suggested that 7 out of 10 undergraduates prefer to work in host countries than to come home;
• 80% of workforce received SPM qualification or lower. The government said more than 3 million high paying jobs would be created from the ETP projects. At the moment, it is difficult for companies to even recruit 1,000 trained engineers. Who are going to fill the vacancies if there is no education reform? How much is the government allocating to improve teaching quality and curriculum contents?;
• How can these infrastructure projects e.g. KL MRT, express rail system, oil refinery hub etc. help to generate more jobs for the locals? ETP did not mention anything about the much needed urban renewal and rural revitalisation. State governments under Pakatan especially Penang and Selangor (two of the biggest economies in Malaysia) were not included and consulted in the planning process. Since the FTZs, Penang needs new economic model and to identify new growth opportunities. The economic transformation of Penang will benefit the rest of states in the northern region;
• The federal government has not made no significant effort or improvement to reform some of the most critical institutions in the country e.g. judiciary, police, immigration, anti-corruption agency, media and GLCs. There is a need to strengthen the democratic process and an emphasis on a true separation of power. The federal government must be committed to the process and must be self-guided to implement a real check-and-balance system in their governance;

Whilst the government has announced some impressive and big figures in the ETP, the broader question which should be asked if the programme can be successfully executed without any real reform?

Idris Jala said the sheer volume of the report shows that the government is serious about the programme. What is the use of a voluminous report if nothing significant can be achieved out of it. Idris should place his priority/emphasis on a living report and not a 'thick' report. Idris should prove to us that he is able to achieve a baby step in socio-economic reform before asking us to keep faith.

For example, even an affirmative policy needs meritocracy. Meritocracy is not an anti-thesis to aid or assistance but a commitment to quality, performance and capability. As a KPI minister, he must tackle the implementation process of NEP which are breeding abuses and wastage. He must not hide behind the ETP smoke screen.