The Malaysian Insight

DIFFERENT attitudes and policies are what will make Pakatan Harapan’s new economic agenda, the Shared Prosperity Vision (SPV2030), succeed where its predecessor’s plans had failed, said leaders in the ruling coalition.

This is despite the similarities between SPV2030 and the National Transformation Programme (NTP) of the former Najib Razak administration.

Like NTP, SPV2030 is built on promises of ensuring equal, inclusive and sustainable development. But, critics have questioned whether PH, which took power only last year, can pull off what Barisan Nasional could not, due to the inexperience of many of the ruling pact’s ministers and officials.

PH leaders insist that SPV2030 is different from NTP, which comprised the Economic Transformation Programme (ETP) and Government Transformation Programme (GTP).

The difference is not just in the specific policies of SPV2030 versus ETP and GTP, they said, but in the attitude of those implementing the agenda.

“No. This is totally different from Najib’s (economic agendas),” said Chua Tian Chang, better known as Tian Chua, special adviser to the works minister, when asked to compare NTP to SPV2030. 

He was a two-term parliamentarian in the opposition during Najib’s administration between 2009 and last year, and witnessed NTP’s birth.

“Najib overly liberalised the market, and those who were rich became richer and companies that were big became bigger.

“He also concentrated on real estate and equity. So, every productivity sector was turned into shares.”

He cited Felda’s commercial arm, which was spun out to create Felda Global Ventures Holdings Bhd (FGVH).  

When it was listed on the stock market in 2012, FGVH was one of the biggest public offerings, but its share price has since plunged by half.

SPV2030 was launched by Prime Minister Dr Mahathir Mohamad yesterday, and is the ruling coalition’s 10-year plan to transform the economy.

Its three core objectives are development for all, bridging income disparities, and building a unified, prosperous and dignified nation.

Notably, it acknowledges Malaysia’s over-reliance on commodities and low-skilled labour in manufacturing, mainstays that had helped the country industrialise, but failed to develop and retain high-skilled talent, and inculcate a wider adoption of high technology.

In 10 years, SPV2030 aims to, among others, raise the incomes of the B40 group to not less than RM5,800 per month.

It also wants to make small and medium enterprises (SMEs) and micro businesses a major driver of the economy by raising their contributions to gross domestic product from 20% to 50%.  

SPV2030’s guiding principles state that it will achieve these targets through seven strategic thrusts, which include restructuring the business and industry ecosystem, boosting key economic growth activities and developing human capital.

It hopes to increase wages for workers, improve social well-being and capital, and bridge the development gap between rich and poor regions.

Focusing on right things

A. Kadir Jasin, a senior leader in PH component Bersatu, said one failure of the Najib administration was its inability to integrate Bumiputera SMEs into the market supply chain.

BN had dished out close to half of RM1.1 trillion in government contracts to Bumiputera companies, and yet, Bumiputera SMEs’ contributions to economic output, or GDP, remained small, at just 9% in 2015.

SPV2030 also reveals how bad corruption was under the BN regime.

“The new vision wants to bring SMEs into the market supply chain,” said Kadir, adding that this is one way it is being truly inclusive.  

For Chua, another big difference between SPV2030 and NTP is the former’s return to industries and manufacturing as drivers of growth and creators of high-paying jobs, just like in the 1980s and 1990s.  

This can be seen in how SPV2030 identifies high-technology industries, such as renewable energy and green technology, as some of the key economic areas to drive growth, in contrast to Najib’s focus on real estate and equity.

Another big criticism of Najib’s economic agenda was his focus on developing the services sector, which did not result in creating high-wage jobs for Malaysians, said Chua.

Also, the previous administration’s liberalisation policy led to an increase in foreigners owning more equity than locals.

Kadir said SPV2030 shares similarities not just with NTP, but also other economic agendas, such as the New Economic Policy and Vision 2020.

“We had done so many things right in the past, which helped bring Malaysia to where it is,” said the veteran newspaper editor during Dr Mahathir’s first term as prime minister from 1981 to 2003.

“But we had so many wrong things as well, such as corruption and leakages. This time, we want to focus on the things we got right.” – October 6, 2019.