Food security, healthcare should be 12th Plan priorities, says Johari

 

Johari Ghani, a former second finance minister, says the government should proceed with caution in its borrowings.

PETALING JAYA: The 12th Malaysia Plan (12MP) must focus on healthcare and food security, apart from ensuring that government debt does not balloon to unsustainable levels, former second finance minister Johari Ghani said.

The Umno Supreme Council member reminded the government that the 12MP must not just be about physical infrastructure projects but also about securing Malaysia’s future in the post-pandemic era.

The 12MP – the latest in a series of five-year economic development plans – is scheduled to be tabled in Parliament later today.

Johari also urged the government to be transparent about its spending, especially off-budget spending.

Noting that the 12MP was exceptionally important and challenging given the Covid-19 pandemic and its resultant impact on the economy, Johari said the government must focus on increasing the capacity of the public healthcare system.

This is especially important as Covid-19 has exposed the inadequacy and limitations of our healthcare system in facing pandemics.

He said World Bank data showed that Malaysia’s public healthcare expenditure was only 2% of its gross domestic product (GDP), which was lower than the average 3.8% of GDP among upper-middle income countries.

“The pandemic has also revealed the vulnerability of our country’s food security position,” he said.

For instance, if other countries were to stop their exports of staple food products such as rice, flour and sugar to safeguard their own domestic supply, importing nations such as Malaysia will risk facing a shortage of food.

“With the food import bill reaching RM55.5 billion last year and increasing almost every year, the government must plan to increase our self-sufficiency and reduce reliance on imports.

This requires the proper execution of a well-planned strategy by the ministry concerned. “

Johari suggested that the government consider reverse investments in other countries, which entails growing overseas the food we regularly import so as to protect the source of our food supply.

The 12MP must promote the adoption of high technology systems, engineering precision and sustainable concepts of farming, he said, adding that the government must “allocate enough resources to initiate this strategy so that the private sector can participate in this initiative to create our own sustainable food security ecosystem”.

He noted that government debt stood at RM958 billion (61.2% of GDP), including debt guaranteed by the government amounting to RM300 billion consisting of bonds issued by Danainfra and Prasarana – which has to be borne by the government – and other off-budget government commitments.

Given this situation, he said it was unclear how the government could finance hundreds of billions in development expenditure for the next five years without having to raise the statutory debt limit every year.

“The government must be transparent with the practice of off-budget spending via debt guarantees to prevent total government debt and liabilities ballooning to unsustainable levels, as this will further reduce the government’s already deteriorating fiscal position.”

He added that any spending on infrastructure projects that called for commitment guarantees by the government must only involve projects that would benefit the rakyat in terms of providing employment and boosting economic growth over the next five years. All unplanned projects outside the 12MP should not be considered if these are not necessary.

Noting that the government was presenting the 12MP one year late due to the emergency and suspension of parliamentary sitting which led to Budget 2021 being announced before the 12MP, Johari said: ”I hope the 12MP will provide a clear direction for the government to formulate the upcoming 2022 budget as this is important to boost investors’ confidence which has been waning over the past couple of years as evidenced by FDI (foreign direct investment) inflow that has been trailing regional economies such as Indonesia and Vietnam.”

Saying the 12MP was more important than the budget as it laid out a five-year strategy, Johari urged the government to give enough time to MPs to debate and discuss it in Parliament. - FMT