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Tuesday, August 16, 2011

The ETP, GTP and GDP

By Masterwordsmith

Without public scrutiny and debate in Parliament, how far can these programs go? Where is Malaysia heading? Do we really need to spend RM 67 billion this way??? How will the ETP and GTP boost our Gross Domestic Product?

The official PEMANDU website says that PEMANDU is a unit under the Prime Minister's Department set up to manage and facilitate the Government Transformation Programme (GTP) and Economic Transformation Programme (ETP). PEMANDU Corporation, a Special Purpose Vehicle (SPV) incorporated with the mandate to provide financial, recruitment and procurement services to PEMANDU, a company limited by guarantee under Suruhanjaya Syarikat Malaysia (SSM). The following is the organizational chart of PEMANDU.


The GTP and ETP are governed by the Delivery Task Force (DTF) for the delivery of National Key Results Areas (NKRAs) and Steering Committee for the delivery of National Key Economic Areas (NKEAs). Both committees are chaired by the Deputy Prime Minister and honourable Prime Minister of Malaysia respectively.

The Government Transformation Programme (GTP) was devised in accordance with the principles of the famous 1Malaysia, People First, Performance Now. In its entirety, the GTP is designed to provide all Malaysians access to improved public services irrespective of race, religion and region.

This site states that the objective of GTP is two-fold – first, to transform the government to be more effective in its delivery of services and accountable for outcomes that matter most to the Rakyat; and second, to move Malaysia forward to become an advanced, united, and just society with high standards of living for all. This is in line with the national mission of achieving Vision 2020 – for Malaysia to become a fully developed nation.

Under the GTP, six key priority areas have been identified where challenges within each area have been divided into short-term priorities and long-term issues. These areas of development are known as the National Key Results Areas (NKRAs) as below:

  • Reducing Crime
  • Fighting Corruption
  • Improving Student Outcomes
  • Raising Living Standards of Low-Income Households
  • Improving Rural Basic Infrastructure
  • Improving Urban Public Transport
You can download a copy of the GTP Annual Report AT THIS LINK.
    On September 21, 2010, the Malaysian government launched the Economic Transformation Program (ETP) in an attempt to transform Malaysia into a high income economy by the year of 2020. The Performance Management and Delivery Unit (PEMANDU) an agency under the Prime Minister Department of Malaysia is managing this program with hopes to drive Malaysia into becoming a high income economy.

    To that end, the program aims to improve Malaysia's Gross National Income (GNI) to US$523 billion by 2020 and per capita income from US$6,700 to at least US$15,000, meeting the World Bank's threshold for high income nation. However, to meet that objective, GNI must grow by 6% per annum.

    Set to revitalize Malaysia's private sector, the 60% of the blueprint's investment would be derived from private sector, 32% from government linked companies and the remaining 8% from the government. Various sectors for development have been identified and are called National Key Economic Activities (NKEA).

    In January this year, Pemandu announced HERE that ETP is in overdrive with 19 developments worth RM67 billion.

    You can see an overview of NKEAs over HERE.

    The question at the back of our minds is how far can the ETP and GTP transform our nation? Previous strategies or programs emphasized economic growth and structural changes were not matched with monetary injections. If at all $$ was spent, did those funds produce commendable results, if any?

    It is common knowledge that our nation has fallen behind that of neighbouring countries. At one pre-election ceramah video in 2008, I recall how Tony Pua lamented the manner in which Korea has overtaken us - when once upon a time, they were lagging behind us in the 1970's.

    And this brings us to the question of how far will the ETP and GTP go in spiking our GNI and GDP.

    Do the ETP and GTP really address and solve the problems and issues that deeply concern Malaysians? Even though these two programs saw detailed plans with measurable objectives, you can see from the official website or links listed that these could have been undertaken even without the ETP!!!

    For instance, how can the Unified Malaysia Sale benefit the poorer segment of our nation? Granted that it could bring in tourism revenue, yet, how much of those benefits/profits reach the poor?

    I was quite shocked that there is no attempt to address key problems such as health care issues, provision of basic amenities to rural areas and other areas of concern!

    Instead, what did I see HERE? I was very disappointed to see that it was last updated on 13th June 2011 when it was announced that the Prime Minister unveiled 15 initiatives under the Economic Transformation Programme. Amongst the initiatives launched include:

    1. Establishing The Unified Malaysia Sale from 15th June to 31st August. GNI Impact: RM1.78 billion by 2020

    2. Strategic Acquisition of Specialised Services Investment with an RM24 million and a GNI Impact of RM111 million by 2016 with 550 jobs created

    3. AMD Global Services Centre with an investment of approximately RM 500 million (by December 2013) and 616 jobs created by December 2013

    4. Biopharmaceutical Manufacturing and Development Facility - the establishment of a state-of-the-art facility at BioXcell, a custom-built biotechnology park and ecosystem in Iskandar Malaysia, Johor.

    5. Integrated Shrimp Farming Project - JEFI AquaTech Resources Sdn. Bhd. is spearheading an initiative to develop Malaysia as a leading shrimp producer in the Global and Halal Market by developing agro-entrepreneurs in the rural areas of the country.

    6. Konsortium Rangkaian Serantau Sdn Bhd - a consortium comprising 24 telecommunications companies with the objectives of lowering the wholesale cost of international and domestic bandwidth capacity.

    7. Premium Health Education Cluster The UCSI Group, the parent organisation of UCSI University is developing a 160-acre integrated Premium Health Education Cluster in Bandar Springhill, Port Dickson to promote the growth of the nation in education, health and research. This one is commendable because it is an injection in providing tertiary eduction and the research component needed in the industry. However, who is forking out the investment ofRM850 million (Phase 1)??Is it the UCSI group or the government or a joint venture? The GNI Impact is RM1.3 billion (by 2020) with the creation of 2000 jobs by 2020.

    8. Refinery and Petrochemical Integrated Development (RAPID) - PETRONAS is spearheading the development of Project RAPID; the creation of a Refinery And Petrochemical Integrated Development (RAPID).

    9. Establishment of The Consortium and Early Child Care and Education (ECCE) Training Hub by SEGi Education Group which has formed a consortium together with eight other ECCE providers to upgrade qualifications of existing workforce to a minimum of diploma level. Again, how much is the government and Segi College investing in this?

    10. Sime Darby Specialist Hospital - Sime Darby Medical Centre Ara Damansara (SDMC AD) - the establishment of the specialist hospitals - Sime Darby Medical Centre Ara Damansara

    11. Sime Darby Specialist Hospital - Sime Darby Medical Centre ParkCity (SDMC ParkCity) - the establishment of specialist hospital - Sime Darby Medical Centre ParkCity (SDMC ParkCity). Again, the same question remains - this would have been initiated even without the ETP!

    12. Sustainability Achieved via Energy Efficiency (SAVE) - a programme spearheaded by the Ministry of Energy, Green Technology and Water (MEGTW), to improve energy efficiency in Malaysia through five initiatives.

    13. Swiftlet Nest Tracking Using RFID Technology
    The Malaysian Communications and Multimedia Commission (MCMC) and the Department of Veterinary Services Department (Ministry of Agriculture and Agro-Based Industry) have entered into a Memorandum of Understanding (MoU) to develop, test and implement a new system and standards for detecting and tracking the delivery of swiftlet nests for the global market.

    14. Building a Telepresence Exchange - VADS Berhad and Cisco signed a collaborative agreement to build the first TelePresence Exchange infrastructure in Malaysia to offer Managed TelePresence Services to the private and public sectors in Malaysia and the region.

    15. Edible Bird's Nest Processing
    Yanming Resources Sdn Bhd investing to increase its edible bird's nest production capabilities.

    CLICK HERE to see links to detailed information of the 15 initiatives under the ETP.

    CLICK HERE for the NATIONAL ECONOMIC MODEL FOR MALAYSIA Part 1.

    Do these policies seem like feeble cosmetic attempts to address the economic insecurity and fear of the status quo?

    How far would our country be able to develop without these programs? We have very pressing needs in this nation and if these are not met, we might really be exporting maids to Indonesia in the future and have immigrants/illegals monopolising the demographic pattern of this nation.

    The Malaysian Insider reported that a recent survey by the independent Merdeka Center showed that over half of voters in peninsular Malaysia have little or no knowledge about the Najib administration’s Economic Transformation Programme (ETP. The survey also showed that the majority of Malaysians did not understand such economic initiatives despite their widespread publicity.

    The report said:

    Najib’s ETP is estimated to cost RM443 billion and aims to double per capita income to US$15,000 (RM46,500) within 10 years, to propel Malaysia into the ranks of high-income nations.

    But criticisms about Najib’s big projects remain, underscoring significant public dissatisfaction with “mega” projects and the perceived cronyism attached to the deals.

    Property consultants and private economists have also expressed concerns that huge infrastructure spending could burden the economy and create a property glut that would take years to absorb.

    The MRT for Kuala Lumpur will be the first project to kick-start the ETP, with construction expected to start by next year.

    MMC-Gamuda Joint Venture Sdn Bhd was recently appointed the project delivery partner (PDP).

    Yesterday, it was announced that the finance ministry would set up a special purpose vehicle (SPV) to raise funds for the RM36 billion MRT project.

    Officials have argued that the massive spending plan will create jobs and help the economy grow.
    Check out this article on ETP, EPPs: rojaking our way to a high income economy by Sakmongkol.

    With our current economic situation, what IS being done to ensure Malaysians do not lose out? As it is, we are plagued with rising costs of living!

    Have we really reached a level of development and maturity to handle such fantastic transformation programs?

    Do we see the government making a deliberate and conscious effort to develop our nation to one that is more productive and thriving with a value-adding private sector? How can the ETP and GTP ensure efficiency in the public sector? What guarantee can they give us that ten years down the road, Malaysia will be growing to become an advanced, united, and just society with high standards of living for all? Will Malaysians really enjoy high income in a more equitable society through these programs?

    If you look at the organizational chart of Pemandu, you can see that planning has in fact become more centralised within one Ministry – the Prime Minister’s Department.

    This is the organizational chart of PEMANDU (also included after paragraph 1 of this post).

    This is the organizational chart of GTP.


    This is the organizational chart of ETP.

    The GTP and ETP are now headed by two Ministers within the PM’s Dept and are directly answerable to :

    a) Prime Minister Najib, who is also the Minister of Finance
    b) Economic Planning Unit under the Prime Minister.

    Tan Sri Koh Tsu Khoon was appointed Minister in the Prime Minister's Department, in charge of unity and performance management. He is the one in charge of Najib's Government Transformation Programme (GTP), which includes monitoring the performance of ministries and six national key result areas (NKRAs) through Key Performance Indicators (KPIs).

    Dato' Seri Idris Jala was appointed Minister without Portfolio in the Prime Minister's Department and Chief Executive Officer of the Performance Management and Delivery Unit (Pemandu). As CEO of Pemandu, the unit monitoring the implementation of the Key Performance Indicator (KPI) initiative, he will assist and report to Tan Sri Dr. Koh Tsu Koon, the Minister in the Prime Minister’s Department who is responsible for national unity and performance management

    As such, to whom is the Prime Minister accountable for the progress/evaluation and success of these two programs? What can lawmakers do? Have these policies ever been debated in Parliament?

    Without public scrutiny and debate in Parliament, how far can these programs go? Where is Malaysia heading? Do we really need to spend RM 67 billion this way??? How will the ETP and GTP boost our Gross Domestic Product?

    CLICK HERE to view MALAYSIA'S GDP GROWTH RATE.



    *My apologies for this late posting. I took a long time to read up more and must confess that I am no economics/accounting expert and that there is still a lot that I have to learn. Readers with expertise in these areas are encouraged to share their views. Thanks! Have a lovely evening.

    1 comment:

    1. Anda bisa memiliki uang balik sebanyak minimal 5 lembar,maksimal sebanyak 50 lembar,uang balik pesanan anda akan dikirim sekaligus, proses pembuatan uang balik atau KLIK DI SINI





      Anda bisa memiliki uang balik sebanyak minimal 5 lembar,maksimal sebanyak 50 lembar,uang balik pesanan anda akan dikirim sekaligus, proses pembuatan uang balik atau KLIK DI SINI

      ReplyDelete

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