23rd July, 2010

KOTA KINABALU: The government will continue to work hard to bridge the economic gap not just among regions in Sabah but also between the State and Peninsular Malaysia.

It will strive to stimulate innovation and creativity, enhance the skill and increase the productivity of its human resource as well as swiftly address any structural barrier to growth in the fast changing economic environment, said Chief Minister, Datuk Seri Musa Haji Aman.

“The government’s role is to enable and empower the private sector and to do this, the government too needs to be transformed and re-energised to be more responsive and accountable to the private sector,” Musa said in his speech said at the New Economic Model (NEM) briefing by the National Economic Advisory Council yesterday.

He was represented by Industrial Development Minister, Datuk Raymond Tan.

The private sector will continue to be the primary driver of the country’s growth and to unleash its growth potential, the government must modernise business regulation, liberalise the services sector and remove market distortions by rationalising subsidies, he added.

Apart from supporting the private sector, the government machinery must also be serious in implementing all development programmes, he said.

He then urged all the implementing agencies to speed up the remainder of projects over the five months left before the end of the Ninth Malaysia Plan (9MP).

Musa also pointed out the need for the government to broaden its revenue base and not be overly dependent on just a few sectors.

The government will also enhance and strengthen safety net programmes that support the welfare of vulnerable citizens in Malaysia, especially the poor.

On the NEM, Musa said that it was formulated to allow Malaysia to forge ahead as a nation.

“It is the backbone of our long-term policy agenda and its main goals are to pursue economic policies that will bring the nation to succeed in the knowledge industries of the future, with high wage jobs and prosperity that can be shared by all. This economic model is a vital part of the Malaysia that we are building,” he said.

The NEM is guided by principles of high income, sustainability and inclusiveness.

“Creating a high income nation will mean growth must be derived from a knowledge economy through investments in new technology, innovation and creativity as drivers of the public and private sectors.”

He said that sustainability is not merely about economic activities but the impact of development on the environment and natural resources.

“There is a need to ensure growth takes into consideration environment protection and stewardship. Pursuing growth that depletes resources and degrades the environment will lead to dire consequences for future generations. Raising the quality of life must be an integral part of development,” he said.

Inclusiveness, said Musa, is a key pre-requisite for fostering a sense of belonging in nation building.

“This economic model will ensure that no one is left out in contributing to and sharing wealth as we progress. We need to strive for an inclusive society where inequalities are narrowed and we must give priority to eradicating poverty. We cannot have a high income, sustainable and inclusive economy when disparities in income are not addressed,” he said.

Present at the event were State Secretary, Datuk Sukarti Wakiman, State Economic Planning Unit (UPEN) director, Datuk Ismail Abdullah and National Economic Advisory Council chairman, Senator Tan Sri Amirsham Aziz.

(Source: New Sabah Times)