RMK11 | MP SPEAKS | The mid-term review of the 1th Malaysia Plan (RMK11) presented by Prime Minister Dr Mahathir Mohamad at Parliament today is general, non-specific, superficial and full of empty rhetoric.

I had expected a major overhaul of the RMK11 especially since the Pakatan Harapan government is so fond of criticising the policies and administration of the BN government. The mid-term review should have been the perfect opportunity for Mahathir and his team to enlighten the opposition as well as the rakyat on their grand strategies to bolster national development.

But we were simply presented with a rebranding and repackaging of previous initiatives, peppered with keywords synonymous with Harapan such as “reformasi” and “berhemat” (financially prudent).

The RMK11 mid-term review shows that the Harapan government intends to embark on austerity measures. The government has boasted about its aspirations to improve the financial position of the government but their actions run counter to their own stated goals.

For instance, the RMK11 had a budget deficit target of 0.6% of the GDP by 2020, but this goal is now postponed and replaced with a deficit target of 3% of the GDP by 2020, despite the cancellation of mega-projects such as the High Speed Rail (HSR) project

The Harapan government fails to understand that cancellation of government projects will not only affect investor confidence but will also ultimately hamper economic growth and affect government finances.

I find it ironic for Mahathir to say that the government intends to empower the small and medium enterprises (SMEs) so that they will contribute to 41% of the country’s GDP by 2020, while the Harapan government had earlier halted the operations of the Secretariat for the Advancement of Malaysian Entrepreneurs (Same) as soon as it came into power.

Same, which served Chinese SMEs, was part of my portfolio when I was a minister in the Prime Minister’s Department. And oddly enough, the Special Secretariat for Empowerment of Indian Entreprises (Seed) and the Bumiputera Agenda Steering Unit (Teraju) are still functioning.

Isn’t the Harapan government supposed to champion inclusivity and assist rakyat of all races? Closing Same surely does not augur well with Mahathir’s promise to create an “equitable society” in the midterm review by introducing specific initiatives for the Chinese and Indian communities.

It is too late

Mahathir had also touched on decentralisation of federal authority to the states and local governments. While it is a noble idea as the local authorities would be able to craft local policies ideal to their areas for growth, the allocation of funds for this was not addressed.

China has a similar practice and it was successfully implemented because the local governments have the authority to collect taxes and revenue to fund their responsibilities. In Malaysia, the major revenue collecting agencies belong to the federal government, namely the Inland Revenue Board and the Customs Department. How would the Harapan federal government share its revenue with the local governments remains to be seen.

The Harapan government also announced that they will implement a progressive tax levy on foreign workers as part to reduce the local industries’ dependency on them. I don’t see the amount or schedule on this but to prevent another fiasco such as the recent RM10,000 levy per year, the government needs to consult local industries as many are dependent on them.

They need to refrain from crafting policies out of their imagination in their air-conditioned offices.

On harnessing the potential of the Fourth Industrial Revolution (IR4.0), we have to first talk about developing artificial intelligence, Internet of Things, etc. Does the Harapan government understand the challenges faced by the SMEs in investing in automation and IT? Are they aware of the main reasons behind the SME’s hesitance in adopting advanced manufacturing technologies? I do not see these addressed in today’s mid-term review but only merely grand-sounding keywords.

Meanwhile, it is too late for the separation of office between the attorney-general and the public prosecutor as public confidence in these institutions is already compromised with Harapan politicians being let off the hook namely Lim Guan Eng and Rafizi Ramli.

These are some of my observations today. I will pore over the mid-term review in the next few days and get ready for the debate in Parliament next week.

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Wee Ka Siong is member of Parliament for Ayer Hitam, Johor.

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