‘Launch 12MP now as future will not wait for long-term growth plan’
KUALA LUMPUR: The Covid-19 pandemic should not delay the introduction of the 12th Malaysia Plan (12MP) as the country’s population is becoming an ageing society, said Malaysian Rating Corp Bhd (MARC).
Its chief economist and head of research, Firdaos Rosli, urged the government to expedite the 12MP as “the future will not wait for the country’s long-term growth plan amid the dynamic situation arising from the health and economic crises”.
“We can’t look at the pandemic and long-time growth plan as mutually exclusive. The 12MP has been drafted and re-drafted since three years ago.
“We are drafting the same thing over and over again. We don’t expect things to be magically different than how they drafted it three years ago. It is going to be the same thing,” he said during a virtual media conference yesterday.
Firdaos reckoned that Malaysia’s long-term growth plans can could be re-amended in the future.
“Long-term plans have to be as fluid as they possibly can. We have our targets to achieve but if circumstances change, then we have to change many things as well.”
He said investors would want to see what the government had in store over the next five years.
“If the 12MP is delayed again, then their investment decisions may be delayed or even cancelled.”
He said Malaysia’s growth rate and investment could be at stake due to deferment of the 12MP.
Firdaos said the country should recalibrate its economic models by having fewer long-term targets.
“This is the chance for the government to look at how do we reset or reboot the economy. As far as a long-term plan is concerned, this is the usual way of doing things.
“Having fewer targets is better than having more.”
Firdaos said the government must focus on building basic infrastructure, enhancing accessibility in the Klang Valley and expanding critical and basic infrastructure in rural areas.
He added that spending should also not be concentrated to within the Klang Valley.
Meanwhile, Firdaos said the Goods and Services Tax should be reinstated as soon as possible due to Malaysia’s ageing population.
“We have to do this quickly as about 15 per cent of the population will likely consist of retirees by 2030.
“If we don’t have direct taxation, then the government’s tax revenue will decline,” he added.