RMK13 – Redesigning Policy Makers

Saleh Mohammed,

For the last few decades, is Malaysia running in circles or stuck to elevate to high-income status? In the 1980s, we already achieved middle-income. Fact is, we know the challenges, missteps and pitfalls but since the 1997 financial crisis we lost our way and has stagnated. Is this ambition and dream more of an illusion than an achievable reality? Thankfully, the World Bank’s latest report forecast says we will achieve high-income status by 2028 and it falls within the Thirteenth Malaysia Plan (RMK13).

Firstly, I wish to congratulate the ministry, its staff and people involved in producing the RMK13, themed ‘Melakar Semula Pembangunan’

(Redesigning Development), in a relatively short time. 

In the mid-term review of the RMK12, Anwar pledge a commitment to realise the reforms demanded by the rakyat, especially to improve the standard of living. During the review period (2021-2022), Malaysia accomplished remarkable socio-economic progress despite challenges due to Covid19, attributed to previous strategic development policies and credible economic governance.

Challenges include slow growths in the economy, wage, productivity, environmental management and corruption control. The real concerns are slowing labour productivity and productivity-reducing structural shifts as it effects real economic development. The labour productivity of Malaysian employees is ranked 62^nd in the world.  

Fortunately, value creation, improving efficiency of project governance and public financial management takes centre-stage in RMK13 which aims to drive sustainable economic growth and propel towards high-income nation status. The New Industrial Master Plan, the foundations of which was based on The National Investment Aspirations (adopted by the Cabinet in early 2021) should propel industrial development and help achieve the ambition. 

Meantime, there are the Madani initiatives emphasising both economic progress and social well-being, with a strong focus on inclusivity and sustainability.

But then, do the implementors understand or have internalised these concepts and initiatives especially value creation? 

For project governance and public financial management, just have a look at the numerous Auditor-General’s Report along with recommendations. Were there any concrete actions taken to avoid or mitigate the weaknesses from recurring and any punitive actions taken upon wrongdoers?  

Do bureaucrats/implementors understand what optimising limited resources and prioritising initiatives entails? A simple example is spending RM40 million for a development plan at Taman Persekutuan Bukit Kiara in Taman Tun Dr Ismail and trying to duplicating facilities such as an herbarium and arboretum (on a small-scale) when FRIM (Forest Research Institute Malaysia) – on a larger-scale – is only 12 kilometres away. Meanwhile, at the other end of the park, many facilities such as the suspension bridge, damaged since 2021 were left unattended (“Taman Persekutuan Bukit Kiara: Why We Must Rethink a RM40 Million Development Plan” – 22/7/25). 

Poor coordination among various ministries and agencies has often been cited as major stumbling block. On a lesser scale, how about good customer service, improving information sharing and heeding cost control? 

Ministers, chief secretary to the government and officers right down the line, have a responsibility to make things happen.

I would suggest, apart from deeper structural reforms, we accelerate public service reforms including accountability to enhance service delivery and improve transparency.

On policy perspective, how to elevate the aviation industry and strengthen Malaysia’s position as a regional maritime and logistics hub when we do not even have a proper aviation and seaport policy (“Malaysia Needs a Comprehensive Policy for Airports and Seaports Development?” – 1/1/25).

There must also be strong political will to tackle issues. 

To tackle significant affordable housing shortage, in RMK13, the government intends to implement the ‘build-then-sell’ (BTS) approach that encourages careful and responsible planning. But the industry cries pressure on working capital leading to higher gearing and the resultant reduction in supply could raise house prices leading to affordability issues. But at the same time, laws to protect homebuyers and regulate property developers are jaded with loopholes which has seen enforcement issues and the lack of prosecution on errant developers. These must be addressed first to really understand real issues. For far too long house-buyer have been exposed to risks while the benefits accrue into the hands of private developers.

Now, how to finance this grand plan? 

The total planned investment is RM611 billion. The RM430 billion earmarked translates to an average of RM86 billion per annum and nearly double the pre-pandemic average of RM48 billion between 2015 and 2019. The government do not want to take on any more unnecessary loans to burden the younger generation and will increase public-private partnerships (PPP) involving GLCs and GLICs.

Unfortunately, experience tells us that PPPs also drive rent-seeking and improper collusion between political actors and politically-linked businesses. Investment decisions then will be distorted by political considerations. Historically, GLCs and GLICs are seen as a persistent site of abuse of power and corruption. There are more than 600 projects in RMK13 and we must avoid “patronage cascades”. 

I will discuss in more details in RMK13, Part 2 on the financing issues.

For policies to be successful, there must be extensive stakeholders’ engagement. Since it was done in a relatively short time and many key themes have received limited enthusiasm by experts, I suspect this box on stakeholders’ engagement is not properly ticked and the Madani economic philosophy, which stresses inclusive development has been skipped. Are we still relying heavily on top-down approaches and still living in the ‘government knows all’ era?

I am also sure the Madani concept would not accept regional disparities. To be sustainable we must promote balanced development especially in the other economic zones apart from JS-SEZ. Basic services must be given priority while mega projects must be assessed objectively for viability and economic sustainability.  

Enough of ‘Maqasid Syariah’, effective implementation and sustainability talks.

Expectations now include strengthening government machineries (avoiding policy inconsistencies and civil service inefficiencies), good governance structures, transparent accountability frameworks, adaptive fiscal allocations and regular scorecards with real-time data monitoring and performance tracking comparing plans versus results. 

Policy makers must accept their limitations before expecting others to reform and perform and people on the ground have more appreciation of market realities.  

Malaysia MADANI must touch the ground and feel the heartbeat and regain the trust of the rakyat. Negligence or complacency has no place to achieve high-income status.

The following Hadith emphasises the importance of professionalism and quality in work, “Indeed, Allah loves when one of you does a job, he perfects it”. 

What say you…