Kelantan must assess resources, boost human capital, says economist

 

According to deputy prime minister Ahmad Zahid Hamidi, Kelantan contributed 1.8% to the nation’s gross domestic product in 2022. (Facebook pic)

PETALING JAYA: Kelantan can make a greater contribution to the national economy by undertaking a comprehensive assessment of its resources and developing human capital, said an economist.

Ahamed Kameel Mydin Meera.

International Islamic University Malaysia’s Ahamed Kameel Mydin Meera said although Kelantan’s economy was mainly agriculture-based, the east coast state has great potential in mining, tourism and traditional handicrafts.

Preparing and developing human capital to extract economic value from these sectors would greatly benefit the state, he added.

“The state should have vocational and technical education tailored towards agriculture, mining and tourism, and encourage the youth to remain in Kelantan.

“If one were to emphasise downstream industries, even agriculture can bring in a good income for the state,” he told FMT.

On Sunday, deputy prime minister Ahmad Zahid Hamidi said Kelantan only contributed 1.8% to the nation’s gross domestic product (GDP) last year.

The Barisan Nasional chairman and Umno president blamed the low output on the state’s PAS government, saying Kelantan folk were forced to move elsewhere in search of job opportunities due to a lack of development in the state.

Kelantan deputy menteri besar Amar Nik Abdullah responded by saying Kelantan should be compared with the likes of Pahang and Negeri Sembilan rather than Kuala Lumpur, Selangor and Penang.

Ahamed agreed with Amar, but pointed out that Kelantan’s GDP per capita in 2022 was lower than its neighbours Terengganu, Pahang and Perak.

In 2022, Kelantan’s economy grew by 4.3%, having generated a GDP of RM26.9 billion. In comparison, Negeri Sembilan’s GDP grew by 6.4% to RM50.8 billion, Pahang’s grew by 10.8% to RM61.4 billion, while Terengganu’s went up by 5.9% to RM37.3 billion.

Ahamed said Kelantan must improve its infrastructure and facilities urgently so that it is on par with other states.

“What has the state done to mitigate the recurring flood problem? By now, the state should have experts in flood mitigation with modern systems already in place.”

Meanwhile, Shankaran Nambiar of the Malaysian Institute of Economic Research called on the federal government to uplift Kelantan’s economic status through “fiscal federalism”.

He said giving Kelantan greater autonomy could yield different economic results, adding that the state has suffered due to a long-running political battle between PAS and those in control at the federal level.

“Political conflicts can hinder economic outcomes, often disadvantaging a population whose views are at odds with the federal government. This divide has to be bridged in the interest of the nation’s development,” he said. - FMT