The seminar on Balanced Development in Malaysia, which was jointly organised by the ASLI Centre for Public Policy Studies (CPPS) and Yayasan Kajian dan Strategi Melayu (YKSM), was themed “Bringing the Poorer States Into the Mainstream”. The event, which was held at Crown Princess Hotel, Kuala Lumpur on the 13th July 2006 brought together key stakeholders in national development to discuss issues related to regional and balanced development in Malaysia. Leading experts and practitioners from the public and private sector were invited to share information and views with a strategic and select audience. Policy makers and implementers at federal, state and local levels, the business sector and grassroots oriented organisations were amongst the participants of this informative and interactive seminar.
The event, which was opened by YB Dato’ Sri Mohd Effendi Norwawi, saw the coming together of representatives from various organisations from the public and private sectors, including those from the Federation of Malaysian Manufacturers (FMM), United Nations Development Programme, Universiti Kebangsaan Malaysia, Institute for Indigenous Economic Progress Sabah, Institute of East Asian Studies, Universiti Malaysia Sarawak, State Economic Development Corporations (SEDCs), and civil society organisations. This event was regarded as timely, as one of the key goals for the country lies in prioritising regional and balanced development. Presentations focused on the challenges and opportunities arising from bringing the poorer states into the mainstream of development.
In his welcoming remarks, Dato’ Mohd Dahan Abdul Latiff, Senior Consulting Fellow of YKSM pointed out that the hallmark of the present government is about closing gaps and inequalities. While it is natural for investors to flock to richer states, it is important to reduce economic inequalities by focusing on poorer states such as Kelantan and Terengganu. This point was also taken up by Tan Sri Ramon Navaratnam, Chairman of the CPPS, who stressed that regional and state differences is a more superior approach of diagnosing wealth distribution as opposed to comparisons between racial groups. He however questioned the current situation of imbalance given the large quantum of financial resources allocated to poor states in the past. More crucial than financing infrastructure and facilities are the strategic issues of planning, maintenance and people development.
The first panel discussion, moderated by Dato’ Kamal Mat Salih, focused on the Investment Incentives Act (IIA) and Industrial Development and how it can work better for the poorer states, and saw lively presentations by Datuk Paul Low, and Dr Hoo Ke Ping. They were critical of the IIA in enhancing industrial development, particularly for the poorer states, as there has been little change in locational and pioneer incentives. Lack of focus on sustainable growth, fiercer regional competition and rural-urban migration may worsen matters. There is a need for new and creative strategies, focus, agencies and products.
Representatives from various SEDCs shared the objectives, strategies, and challenges in transforming their state corporations (Terengganu, Kelantan and Kedah respectively) into successful economic entities. Some constraints include government policies and procedures, limited internal resources and confused roles between state government agencies. SEDCs continue, however, to actively engage in socio-economic development through investment, property, and other sectors. Dato Ahmad Hassan, ex-Secretary General, Ministry of Housing and Local Government chaired the session. In the panel on “Optimizing Synergies between Thrusts One and Three in the 9th Malaysia Plan: Agricultural Modernization and Balanced Regional Development”, panelists shared their views on how agriculture modernization strategies in poor states have succeeded. New thrusts in agriculture are synergistic and workable, through the introduction of new technology and other ministry-approved programmes.
Prof Dr. Dimbab Ngidang moderated the session on Poverty Reduction of the Poorest Communities: Improving on Performance and Sustainability. Mr Khoo Khay Jin stated that the revision in the Poverty Line indicator revealed a doubling of percentage poor in Sabah and Sarawak. Malaysian Plans’ per capita allocations for Sarawak are significantly lower than national per capita average. Other speakers shared critical concerns of the Bumiputera minority community in Sabah, which include poverty eradication and equitable income distribution. In the final session, bottoms up participatory approaches were discussed, and how this could bring better outcomes in regional development. Panelists Prof Dr. Rahman Embong, Dr Chung Tsung Ping, and Prof Dr. Wan Zawawi Ibrahim stressed that the government should focus upon quality of life issues in regional development. Best results can be achieved through strategic partnerships and capacity building, challenges of which are institutional governance, cohesive civil society organisations and building mutually supportive bridges.
Officially closed by YB Datuk Zainal Abidin Osman, Deputy Minister of Rural and Regional Development, the one-day seminar challenged key stakeholders to seek creative solutions in reducing regional socio-economic balances in the country, stressing the need for strategic partnerships in bringing poorer states into the mainstream of national development.