Did the Jala Catched Much?

www.kopihangtuah.blogspot.com

Idris started by focusing everyone's attention to the New Economic Model's (NEM) main thrust: EVERYONE - RICH - LONG TIME

ot too long ago I had a chance of attending a session with Dato' Seri Idris Jala (Idris) as the main presenter. I took some notes and today I found those notes in between my 2011 diary pages. I thought I should share the content with the rest of Malaysia before I dispose the notes, giving way for 2012 diary.

So, what is the story with Mr Jala? The whole country awaits his frequent statistic updates in hope of light at the end of the tunnel. The mood has been somewhat melancholic when all we hear is "Malaysia will Bankrupt". That session however, was a positive one. In my mind, "Did the 'Jala' catched much fish?" Well, here we go:

Firstly and fashionably unique to Idris, he started by focusing everyone's attention to the New Economic Model's (NEM) main thrust: EVERYONE - RICH - LONG TIME (Congruent with Tun Mahathir's High Income, High Cost Nation). This is ideal but to get there, I suppose we will see his status update shortly. He also gave some worrying statistics to act as catalyst to listeners' thinking process: 2010's 5.6% budget deficit; Debt at RM230 billion; Only 1.7 million people out of 28 million population pay tax; Goods & Services Tax (GST) necessity in light of low tax collection; Reduction in subsidies to allow funds/borrowings to be better used as investments; and many more which I did not manage to jot down.

National Key Result Area or NKRA that was introduced earlier is claimed to have 121% achievement level as audited by a professional firm of accountants, PricewaterhouseCoopers. Not only that, the audit results were also reviewed by Sir Michael Barber (UK's equivalent of Idris) and other intellectuals that form the panel.

"...all these efforts are expected to produce 362,396 new jobs and RM220 billion GNI by 2020..."

So what does the 121% achievement level consist of? There are many components but those few shared by Idris during that session were:

• 35% reduction in street crime rate
• 15% reduction in crime rate index
• #1 ranking for Global Peace Index for South East Asia
• #1 ranking by World Justice Report for middle income countries
• 2.4 million new passengers for urban transportation
• 108 families categorised as "not enough food" now reduced from 44,643
• 54,000 education-deprived children now go to kindergarten
• 505,000 people benefited from low cost housing schemes
• 30% to 100% increase in sales for selected 129 groceries stores assisted
• 1,000 (record breaking) pre-schools built
• 700km (record breaking) roads built

Idris urged the country to focus on National Key Economic Areas (NKEA). He has so far identified 12 areas for which 131 Entry Point Projects (EPP) have been identified to create 60 business opportunities that are expected to produce, in total, RM1.7 trillion Gross National Income (GNI) (by when? I am not sure. Somehow not in my notes). To support this, RM1.4 trillion (USD444 billion) is required to be invested. So, how much of these have been achieved?

We know that various Government departments have been briefed and are already channelling their efforts to the 12 NKEAs listed below:

•Oil, Gas & Energy
•Palm Oil & related products
•Telecommunications
•Electrical & Electronics
•Agriculture
•Wholesale, Retail & Distribution
•Private Education
•Healthcare & services
•Financial services
•Tourism
•Business Services
•Greater KL Urban Revitalisation

We also know that 65 EPPs have been created so far and RM170 billion has been committed. All these are only expected to produce 362,396 new jobs and RM220 billion GNI by 2020 - which is only 12.9% of the targeted RM1.7 trillion. I suppose that is progress. After all we'd just started all these transformation programmes in 2011. Let's hope that the next update from Idris show significant progress.

"..if people keep money under their pillows, we are in trouble! If we keep saying bad things about the country, no investment will come in. Our country is frozen because we cannot proceed efforts when public complaints and not support our good intentions..."

All these positive vibes cascaded to consumer confidence. It seems that Neilsen had reported that Malaysia's consumer confidence index have improved from 81 in Q1 2009 to 110 in Q4 2011. The economy has improved significantly evident by consumption level of RM375 billion, investments of RM123 billion, inventory (unsold produce) of RM12 billion and trade value (net export-import) of RM50 billion. All these consolidated to show net income from abroad of RM43 billion and Gross Domestic Product (GDP) of RM560 billion - a staggering GNI of RM517 billion.

How have these affected the stock market? Well, market capitalisation in July 2011 went up to RM1.36 trillion vs RM1.12 trillion in August 2010. In 2011 the market reached all time high 6 times! (On 7 Jan, 17 Jan, 30 Jun, 1 Jul, 6 Jul and 8 Jul). We are (were in July 2011) RM200 billion richer (21%). I have to caveat that this information was current during the session with Idris (around july),.. so yeahh, I do apologise for not being current enough. Nevertheless, I do want to convey his (Idris') message to the public - i.e. the Transformation is indeed giving results.

Idris also urged Malaysian to not be afraid to spend money for spending money will only boost the economy; and, we should be positive in attracting investors to open up their coffers; again, in the name of boosting the economy - a very Keynesian method to this all. His exact words were "..if people keep money under their pillows, we are in trouble! If we keep saying bad things about the country, no investment will come in. Our country is frozen because we cannot proceed efforts when public complaints and not support our good intentions..."

The National Economic Advisory Council (NEAC) also plays an important role of policy setting for which, The Performance Management & Delivery Unit (PEMANDU) that is led by its Chief Executive Officer, Idris, is expected to drive. Another branch of such initiative is Unit Peneraju Agenda Bumiputera (TERAJU) (launched on 21 July 2011) whose role is to further strengthen the Bumiputera development agenda (replacing the 30% quota that was removed by Dato' Seri Najib Razak, Prime Minister of Malaysia).

TERAJU's objective of narrowing disparities between Bumiputeras and its counterparts had already started. 11,136 small and medium Bumiputera enterprises were reviewed from which, 1,100 companies have been selected to be eligible for funding/resources/research and other assistance from the Government. These companies met 2 broad criteria: Minimum 50% revenue from non-government projects and a healthy mix of Bumiputeras and Non-Bumiputeras on its management team.

"Dato' Seri, we don't blog your story because blogs need negativity for people to read. Good stories don't sell..."

Idris met all sorts of public to tell his story ranging from professionals, business communities, media, bloggers, etc. He expressed regrets when a blogger once told him "Dato' Seri, we don't blog your story because blogs need negativity for people to read. Good stories don't sell..." Well, Dato' Seri, it is with pleasure that this blogger, i.e. * kopihangtuah, intends to, which he has, publish your positive notes. Keep up the good work. We want light at the end of the tunnel! Not bloody "Malaysia Bankrupt" stories! Let's just get the 'Jala' to catch more fish. Cheers :)




* kopihangtuah



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