9MP: The race for developed status continues
Malaysiakini – 29/3/2006
Malaysia is set to unveil a five-year development blueprint aimed at reducing rural poverty as it struggles to achieve its goal of becoming the world's first developed Muslim nation by 2020.
The Ninth Malaysia Plan, to be tabled in Parliament on Friday, will spell out strategies for boosting economic growth and spreading wealth more equally in this multicultural nation.
After more than two decades of economic planning under former prime minister Dr Mahathir Mohamad, it will also be the first blueprint handed down by Prime Minister Abdullah Ahmad Badawi who took over in 2003.
Analysts say the proposals will shift away from Mahathir's grand plans for industrial and technological development, which saw the launch of the national car and the construction of the world's tallest building.
Instead it will focus on education, agriculture and the development of rural areas, where incomes remain much lower than in the gleaming capital Kuala Lumpur.
"Since (Abdullah) has taken over, he has a different focus where he goes for small projects to be true to the people on the streets," said Kevin Chew, a research fellow with the Malaysian Institute of Economic Research (MIER).
RM200 billion cost
The Ninth Malaysia Plan from 2006 to 2010 is expected to be rolled out at a cost of some RM200 billion, compared to RM170 billion for the previous five-year plan.
"(Abdullah) realises he has to bring development back to the rural areas, so this will be his signature," said political analyst Khoo Kay Peng.
The government is also expected to find ways to create more wealth for the majority ethnic Malays or "bumiputeras" who make up some 60 percent of the population.
Despite the governments official goal of having Malays own 30 percent of national equity, in 2004 they held just 19 percent, with the countrys business sector still dominated by the minority Chinese.
Abdullah is also likely to table initiatives to see a better distribution of wealth among Malays after criticisms that previous economic programmes have benefited a small elite.
Similar disparities among Malaysia's 13 states also remain to be tackled while indigenous groups continue to figure among the extremely poor.
But with just 15 years to go before Malaysia's "Vision 2020" goal of achieving developed nation status, Abdullah, who has reportedly overseen much of the drafting of the new plan, has a tough job ahead of him.
Different economic landscape
Malaysia recorded average growth of 4.5 percent from 2001 to 2005, well below the estimated 7.0 percent needed over coming years to achieve the 2020 goal, analysts say.
"It will be a challenge, a big, big challenge to make 7.0 percent, because going forward, the economic landscape will be a lot more different and challenging," said Chew, citing rising regional competition.
The government has flagged the private sector as a driving force behind economic growth and Khoo said Abdullah would try to involve the private firms in infrastructure development.
Private involvement will also boost the sagging construction sector which has suffered since the roll-back of large building projects under Abdullah, he said.
"The construction sector has contracted for a few years and is projected to have moderate growth of 1.0 percent this year ... so the government will have to find ways and means to activate the sector," he said.
The stock market has rallied in recent days as construction stocks rise on anticipation that the government will give them a boost.
Source: Malaysiakini | www.malaysiakini.com