Abdullah must keep an eye on the economy – analysts, civil society groups
Deputy Prime Minister Najib Abdul Razak, who is also Finance Minister, has come under increasing criticism by the business community for neglecting the economy, and putting his ascension to the premiership next month ahead of all else.
By Wong Choon Mei, Suara keADILan
Market practitioners and business people want Prime Minister Abdullah Ahmad Badawi to step up the pressure on the various agencies to speed up implementation of a RM7 billion ringgit stimulus package launched by his deputy on Nov 4 last year.
“It is definitely pathetic. Four months have passed and only 70 percent disbursed to the agencies and it may well be gathering dust there,” said Azrul Azwa, economist at Bank Islam.
“The consensus view is that Najib is not doing enough. It is not point blaming the global situation, every country is affected. You have to differentiate yourself and make life easier for your people. But despite controlling the federal funds, what we have seen from him so far this year is Kuala Terengganu, Perak crisis and now even the nude pictures of Eli Wong.”
Deputy Prime Minister Najib Abdul Razak, who is also Finance Minister, has come under increasing criticism by the business community for neglecting the economy, and putting his ascension to the premiership next month ahead of all else.
“At the end of the day, the BN controls the federal government. So no point blaming the Pakatan for politicking. If they are politicking, what about BN? Isn’t it doing the same, and furthermore it has huge resources on its side, so obviously it must do a better job than it is doing now,” said a research head at a foreign bank.
Abdullah chides agencies
Perhaps, in acknowledgment of this growing sentiment, Abdullah yesterday reminded government agencies that projects announced were meant to spur the economy and help the people and industries ride out the economic crisis.
“The 70% achievement,” Abdullah said. “Having a sense of urgency, efficiency and ability to carry out our work well will also increase our integrity.”
At Parliament yesterday, Najib admitted that the 3.5 percent economic growth in 2009 that he forecast last November would have to be lowered, confirming what many private research houses have been predicting for months.
However, he refused to reveal how much worst off the economy would be.
He also confirmed plans to table a mini-budget on March 10 to further stimulate growth. Again, he declined to disclose the size of the package, but conceded that the amount might be more than the November plan.
Said Najib: “The trend began in Oct 2008, when key economic trends such as national exports dropped at -2.6 percent and then -4.9 in November and -14.9 percent in December. Besides that, the Industrial Production Index also fell to -2.8 in Oct, -8.2 in Nov and -15.5 percent in December.”
Do we know where the money is going?
Many private research houses have forecast a GDP growth of between zero and 1.5 percent in 2009.
While they advised pump-priming measures, they also warned against improper implementation and outright leakage of funds into questionable projects – given the country’s already ballooning budget deficit.
In the Open Budget Index 2008 – a survey of 85 countries conducted by the Center of Public Policy Studies – Malaysia scored a measly 35 points. The index grades how open each country’s budget books and disclosure information are.
The result was an eye-opener, falling far below Sri Lanka’s 64 points, Indonesia’s 54, the Philippines’ 48 points and Thailand’s 40 points.
“I was shocked and embarassed,” said Ramon Navaratnam, chairman of the Centre for Public Policy Studies. “The government has to make details of the budget clear to the public and foreign investors, including its spending pattern and the project tendering system,”
Said Bank Islam’s Azrul: “The key words are speed, swiftness and destination. We must have focussed financial leadership to get us out of this crisis. We are not getting that.
“Neither are we seeing any speed. Projects must be implemented swiftly so that the velocity of money circulation is speeded up. This will businesses feel comfortable about taking up new investments. Lastly, destination, there must be utmost integrity and the money goes where it is supposed to go.”
