Economists laud SPV 2030
Blueprint is touted as a comprehensive framework
PETALING JAYA: Economists have welcomed the newly-launched Shared Prosperity Vision (SPV) 2030 blueprint as a more comprehensive framework compared to Malaysia’s previous key economic policies.
The SPV 2030, touted as Malaysia’s new development narrative, aspires to achieve development for all Malaysians, address wealth and income disparities as well as build a united, prosperous and dignified nation.
Speaking with Starbiz, Academy of Sciences Malaysia fellow Madeline Berma said the blueprint’s underlying principle of economic growth through “equitability of outcome” has excited her the most.
“Unlike the previous economic policies such as the New Economic Policy 1970 that looked at economic disparities based on ethnicity and race, the SPV 2030 adopts a more comprehensive perspective, encompassing income inequality, ethnic differences, social classes and regions within Malaysia,” she said.
Unlike the New Economic Model launched in 2010 by former Prime Minister Datuk Seri Najib Razak, Madeline said that the SPV 2030 also incorporates the supply chain aspect, with the aim to “create social harmony and political stability.”
“The SPV 2030 can offer fresh ideas because it is mindful of four issues – inclusiveness, inequality, sustainability and poverty.
“It does not only focus on making Malaysia a high-income economy, but also ensures that Malaysia becomes a high value economy that is competitive, of high integrity and dignity,” she added.
Meanwhile, Institute for Democracy and Economic Affairs director of research Laurence Todd also welcomed the SPV 2030, especially the focus on addressing regional disparities in growth between different states and the focus on fiscal sustainability.
“It’s welcomed that the government has put forth a vision for the economy, which many have been calling for.
“However, there are no concrete policies to achieve the ambitious goals put forward in the vision. Is the government proposing tax reform? New trade and investment policies? A new approach to government-linked companies? Nothing is said in these areas, so we cannot say what exactly is going to be done differently,” he said.
Todd has voiced his concern on the government’s focus on achieving equality of outcome rather than equality of opportunity.
“The government should focus on removing barriers to growth not pretending it can control everything,” he pointed out.
He also added that the SPV 2030 blueprint should have a greater focus on empowering women in the workforce and addressing issues of absolute poverty, including among indigenous groups.
However, it did not mean that the 10-year economic framework has neglected certain sections of the Malaysian population.
The SPV 2030 has outlined “polarity management”, whereby nine target groups of the Malaysian population will be given priority in achieving the goals of the Shared Prosperity Vision.
Among the nine groups are women, senior citizens, indigenous community, bumiputra in Sabah and Sarawak as well as people with disabilities.
On income inequality in Malaysia, Todd described the situation as “complicated”, considering that the relative gap between income groups has actually narrowed in the last 40 years, while the absolute gap has widened.
“What is needed from the government is to set the conditions for sustainable growth which can support rising incomes for all.
“Ethnic inequality is also complicated. Recent research shows the fastest growing incomes groups are the bottom 50% and the top 1% of bumiputra.
“The question now is how to promote economic development and advancement among all groups, whilst addressing absolute poverty where it remains, on a needs-basis. For this the term ‘B40’ is too broad and both policies and rhetoric need to be more targeted,” he said.
Maybank Investment Bank group chief economist Suhaimi Ilias stated in a note that Malaysia’s productivity would be the key catalyst in achieving the Shared Prosperity goals.
“SPV 2030’s strategies and targets are mainly productivity-related. SPV 2030 stated that salary increment should be three-quarters of productivity value.
“Priority is transition from lowskill labour-intensive economy to knowledge-based economy, reflected in key economic growth areas such as Digital Economy, Industrial Revolution 4.0, Content Industry, Smart and High Value Agriculture and Advanced Modern Services,” he said.
Suhaimi also pointed out that the country’s upcoming medium-tolong-term economic and industry plans would provide more details on the SPV 2030, especially in terms of implementation.
They included the 12th Malaysia Plan (2021-2025), 4th Industrial Master Plan (2021-2030) and the SME Masterplan.