KUALA LUMPUR (Nov 6): The Government is looking at the best way to get the economy back on track and believes there is higher value in downstream industries, according to Deputy Economic Affairs Minister Dr Mohd Radzi Md Jidin.
He also spoke on the need to spend prudently and to boost economic activities in less developed States.
“The key idea is that when you have money, you need to use money wisely...to create more value for the country’s economy, rather than accumulating more debt which does not create any value, but only burden the country’s finances,” Radzi told reporters here today after the Affin Hwang Capital Forum 2019.
He indicated that Malaysia ought to be able to use that same amount of resources or money to create higher output, particularly as the 12th Malaysia Plan (12MP) will be based on the Shared Prosperity Vision 2030 (SPV2030) blueprint, whose primary aim is to provide a decent standard of living to all Malaysians by 2030.
“There is still a lot of potential in the economy,” he said, adding that while the country's economy has been growing well, gross domestic product (GDP) growth in other States, apart from the Klang Valley, has not been robust and needs to be promoted throughout the country.
“Economic development is focused only on big cities such as Kuala Lumpur and Selangor which represent 40% of GDP but not in States like Kedah, Perlis, Kelantan, Terengganu, Sabah and Sarawak.”
To enable a better framework for the 12MP which is to be unveiled in the third quarter of 2020, Radzi said the Government has to be on the ground to understand the demand for any planned infrastructure in all the States, as well as to prevent wastage of resources.
“We have just completed the engagement with all the States and have gotten back all the inputs and feedbacks from all the States from Ministerial level, but further discussion is needed,” he said, adding Putrajaya aims to have comprehensive engagement with all stakeholders.
SPV2030 covers the period 2021 to 2030, which overlaps with the 12MP (2021-2025 development plan) and 13MP.