18 Oct 2018

Remarks by MCA Deputy President Datuk Seri Dr Ir Wee Ka Siong

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MY INITIAL IMPRESSIONS OF THE 11MP MID-TERM REVIEW

The mid-term review of the 11th Malaysia Plan (11th MP) presented by Prime Minister Tun Dr Mahathir Mohamad at the Parliament today is general, nonspecific, superficial and full of empty rhetoric. I had expected a major overhaul of the 11th MP, especially since the Pakatan Harapan government is so fond of criticising the policies and administration of the Barisan Nasional government. The mid-term review should have been the perfect opportunity for Dr Mahathir and his team to enlighten the opposition as well as the rakyat of their grand strategies to bolster national development. But we were simply presented with a rebranding and repackaging of previous initiatives, peppered with keywords synonymous with Pakatan Harapan such as “reformasi” (Reformation) and “berhemat” (financially prudent).

The 11th MP mid-term review shows that the Pakatan government intends to embark on austerity measures. The government has boasted about its aspirations to improve the financial position of the government but their actions run counter to their own stated goals. For instance, the 11th MP had a budget deficit target of 0.6% of GDP by 2020, but this goal is now postponed and replaced with a deficit target of 3% of GDP by 2020, despite cancellation of mega projects such as the High Speed Rail. The Pakatan government fails to understand that cancellation of government projects will not only affect investor confidence, but will also ultimately hamper economic growth and affect government finances.

I find it ironic for Dr Mahathir to say that the government intended to empower the small and medium enterprises (SMEs) so that they would contribute to 41% of the country’s GDP by 2020, while the Pakatan government had earlier halted the operations of the Secretariat for the Advancement of Malaysian Entrepreneurs (SAME) as soon as it came into power. SAME, which served Chinese SMEs, was part of my portfolio when I was Minister in the Prime Minister’s Department. And oddly enough, the Special Secretariat for Empowerment of Indian Entreprises (Seed) and Bumiputera Agenda Steering Unit (Teraju) are still functioning. Isn’t the Pakatan government supposed to champion inclusivity and assist rakyat of all races? Closing SAME surely does not augur well with Dr Mahathir’s promise to create an “equitable society” in the midterm review by introducing specific initiatives for Chinese and Indian communities.

Dr Mahathir had also touched on decentralisation of federal authority to the states and local governments. While it is a noble idea as the local authorities would be able to craft local policies ideal to their areas for growth, allocation of funds was not addressed. China has a similar practice and it was successfully implemented because the local governments have the authority to collect taxes and revenues to fund their responsibilities. In Malaysia, the major revenue collecting agencies belong to the federal government, namely the Inland Revenue Board and Customs. How would the Pakatan federal government share its revenues with the local governments remain to be seen.

The Pakatan government also announced that they will implement a progressive tax levy for foreign workers as part of reducing the local industries’ dependency on them. I don’t see the amount or schedule on this but to prevent another fiasco such as the recent RM10,000 levy per year, the government needs to consult local industries as many are dependent on them. They need to refrain from crafting policies out of their imagination in their air-conditioned offices.

On harnessing the potential of the Fourth Industrial Revolution (IR4.0), we have to first talk about developing artificial intelligence, Internet of Things, etc. Does the Pakatan government understand the challenges face by the SMEs in investing in automation and IT? Are they aware of the main reasons behind the SME’s hesitance in adopting advanced manufacturing technology? I do not see these addressed in today’s mid-term review, but merely grand-sounding keywords.

Meanwhile, the separation of office between Attorney General and public prosecutor is too late now as public confidence of the institutions is already compromised with Pakatan politicians being let off the hook recently, namely Lim Guan Eng and Rafizi Ramli.

These are some of my observations today. I will pore through the mid-term review in the next few days and get ready for the debates in the Parliament next week.

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Datuk Seri Dr Ir Wee Ka Siong
MCA Deputy President
Member of Parliament for Ayer Hitam

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