Monday, June 14, 2010

What People Are Saying About The 10MP

Citi analysts Wei Zheng Kit and Monica Ratnaputri wrote in a June 10, 2010 analysis titled, "Highlights of the 10th Malaysia Plan," that the most important factor of the plan is its actual implementation, given missed targets in the past. The plan calls for a reduction in the budget deficit to 2.8% by 2015. However, the government has missed previous five-year targets. Of the MYR230 billion allocated to development spending, 55% will go to the economic sector, which is an increase over previous five-year plans, 30% to the social sector, 10% to security, and 5% to general administration. On the issues of subsidies, the plan calls for a 3% annual reduction in subsidy spending by 2015, with energy prices based on market conditions by 2015.

Citi analyst Yong Yin Ng wrote in a June 10, 2010 analysis titled, "10MP – Economic Reform: Ready, Set …," that the 10th Malaysia Plan will not move markets at least until the implementation stage. However, the plan lays out a commitment to economic and political reform, even if subsidy reform will be cautious as a result of political challenges. Ng writes that Malaysia needs to transition to an economy driven by productivity growth and domestic competitiveness that is led by the private sector. The targeted sectors in the plan are E&E, palm oil, oil & gas, tourism, agriculture and green technology and financial services, with the services sector as a whole pushing growth forward.

Kevin Brown writes in a June 11, 2010, FT blog post that the 10th Malaysia Plan unveiled on June 10 shies away from specific proposals to deal with the issue of subsidies and affirmative action, two benchmark reforms that would indicate Prime Minister Najib's commitment and ability to implement far-reaching reforms. PM Najib will likely face challenges from his own party, the UMNO, if he moves forward on significant reforms to the affirmative action policies.

The Oxford Business Group writes in a June 10, 2010, analysis that the impact of the 10th Malaysia Plan will depend on how well it enhances the role of the private sector while reducing the footprint of the government; protects the more vulnerable segments of society; addresses expensive subsidies; and contributes to the development of human capital.

The 10th Malaysia Plan prioritizes the oil and gas sector as one of the 12 National Key Economic Areas (NKEA) that will drive growth over the next five years, according to a June 11 IHS Global Insight report. The plan calls for focusing on improving oil recovery, transitioning toward more clean energy sources, enhancing energy efficiency and beginning to reduce fuel subsidies.

I don't have anything to say about the 10MP. Its been there on the table, the mantras are nothing new. Let's see some action on the Approved Permits already; why are there still big projects being "given" without proper tendering in recent months; the list goes on...


kl said...

I have one single comment on TMP - yawn..zzzzzzzzz. Wake me up if something meaningful is actually implemented. As it is, it's business as usual for the connected cronies and belt tightening for all the rest.

CheahSweeKuan said...

Nothing will come out from the TMP as long as the current civil servants and implementators are not removed. They were planted there throughout the govt. machinery during the time of the apanama and their priority is always to protect their bangsa, their agama and so forth. Very narrow minded in nature. The TMP will only look good on paper and as long as we have people like Ibrahim ali and there are thousands and thousands of them do not expect much. These people do not care for the progress of this nation otherwise we would have been in the same league as Singapore Korea and Taiwan. They prefer to be backward as long as they are in control. Look at the education system now. Dont we know what is good for us? We chose to go the other way and where are we now? closer to Burundi and lagging far far behind our neighbour Singapore. It is true when anwar said there is nothing left for that apanama to destroy. A country that is so rampant with blatant corruption. It is still going on and no action taken. The PAC has reported that Heads of Depts are buying screw drivers for tens of ringgit and laptops for $24,000. each. No action has been taken by MACC inspite of evidence from the PAC. Talking about the govt leaves a bitter taste in my mouth.

ccdev said...

10 Mp, not worth the paper it's printed on. how long before malaysia will be known as 'The sick man of asia'?

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