NAJIB: EFFICIENT DELIVERY SYSTEM LIFTED ECONOMY OUT OF DOLDRUMS

NAJIB: EFFICIENT DELIVERY SYSTEM LIFTED ECONOMY OUT OF DOLDRUMS
By Mikhail Raj Abdullah

PUTRAJAYA, April 5 (Bernama) -- The emphasis on a more efficient public
sector delivery system in implementing the RM67 billion (US$19.70
billion)stimulus package was crucial in lifting the Malaysian economy quickly
out of the doldrums after it was severely affected by the global recession last
year.

"The hundreds and thousands of projects, big and small, being implemented
under the stimulus package and delivered to the ground helped to turn the
economy around in such a short period," Prime Minister Najib Razak said here
Sunday.

Malaysia's Gross Domestic Product registered a positive growth of 4.5 per
cent in the last quarter of last year from a negative growth of 6.2 per cent
when the package was first unveiled in March 2009.

The public delivery system was enhanced with the setting up of the Project
Management Unit under the Finance Ministry to ensure projects and programmes
were executed efficiently to ensure maximum impact on the economy.

"It is a very clear manifestation of the success of the government's
administration including civil servants who have been working hard to deliver
the stimulus packages," he said.

Najib, who is also Finance Minister, was responding to questions on his
first year in office posed by Bernama Deputy Editor-in-Chief Zulkefli Salleh and
Bernama Economic Service Editor Mikhail Raj Abdullah during the programme "One
Year on Level 5: Special Interview with the Prime" aired over Bernama
TV.
To a question on why the stock market was mixed and somewhat lukewarm to the
just-announced New Economic Model (NEM), he said "the market has always
discounted whatever announcements made as they want to see specific details,
milestones, timeline allocation and incentives."

To this end, Najib said specific allocations would be set aside for national
key economic activities to be promoted when the 2011 budget is tabled on October
15.

He said the NEM would be announced and implemented in stages whereby after
the announcement on March 30, it would be incorporated into the 10th Malaysia
Plan, to be unveiled on June 10, and thereafter more details would be released
in August.

Najib also dismissed notions the government caved in to political pressure
in its implementation plans for the Goods and Services Tax (GST) and the dual
petrol price ruling, saying that more time was needed to get public support for
the initiatives.

He said the Opposition was twisting facts around on the GST proposal and
this was why the government needed to clarify it to the people as it was good
for them in the long-term.

"It is not a decision to back out but rather a decision to defer it for a
while so that there will be more buy-in for the project as the government is
receptive and sensitive to the feedback from the public," he said.

As for the dual-petrol price structure, he said it was a very complex
system and not worth the bother, but "we will reduce the fuel subsidies
gradually as we don't want to place too much burden on the people."

"So, its going to be a very carefully calibrated implementation," said
Najib.

To a suggestion that a reduction in fuel subsidies might be implemented
after the General Election, Najib laughed it off, saying, "Well, the cynics and
sceptics are always going to be there.you just have to take it as a challenge
and prove them wrong."

Asked on whether the Federal government was willing to work with the
opposition-held states for the development of the people, he said: "We have no
problem in implementing development projects for the people. Basically, we want
to be fair and substantial allocation has been given to states not controlled by
Barisan Nasional."

He said the government has implemented projects such as schools, clinics and
even IMalaysia clinics in "states we lost."

Najib also said the government would come down hard on employers who
terminate Malaysian workers without severance pay or dish out lower wages to
them or hire foreign workers at the expense of locals.

"Employers in this country should try their level best to employ more
Malaysians and not be over-dependent on foreign labour," he said.

On Malaysia's employment rate, Najib said it was about 3.6 per cent which is
really full employment "when you consider that we have 2.2 million foreign guest
workers and another million illegal ones."
--BERNAMA


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