Penang and Selangor are the testing ground for alternative and future styles of governance in Malaysia. What will be decisive in the long run is not so much the points gained in the daily rhetorical sniping that seems to be an inescapable part of a two-coalitional politics, but how well the state governments are run. The state budgets are therefore what analysts should be studying.
Amidst the noise and clamour of Malaysia’s politics, it is easy to forget that daily responsibilities continue for governments and bureaucrats. The Pakatan Rakyat (Pakatan) coalition for example, has suffered several recent shocks, namely the twin by-election losses in Galas and Batu Sapi, followed by the damage control it has had to put into action following Zaid Ibrahim’s decision to quit the Deputy Presidency race. These events have occupied much media space.
Whilst Pakatan’s political resilience is an absorbing issue, it is perhaps more important to examine the ways in which Pakatan state governments are running their states respectively. This is a more appropriate reflection of Pakatan’s philosophies translated into reality. For example, both Penang and Selangor state assemblies tabled their respective 2011 budgets recently. As two states that contribute significantly to the nation’s wealth and economic development, it is in the interest of all stakeholders (including the Barisan Nasional Federal Government) to ensure these states are properly run and managed in order to continue attracting domestic and foreign investment. A crucial aspect of this lies in the financial management of the states’ resources. Some common themes can be easily identified between the two state budgets.
First, both state governments seem confident about developing more efficient financial management tactics, and eventually shoring up better state reserves in the mid to long-term. Penang tabled a 2011 budget of RM897.36mil, a 25.7% increase compared to its 2010 budget of RM713.79mil. Out of this, 38% contributes to operating expenditure (RM343.1mil) and 62% to development expenditure (RM554.26mil). Selangor tabled a 2011 budget of RM1.43bil, a 3.4% reduction from the 2010 budget of RM1.49bil. Out of this, 58% contributes to operating expenditure (RM860mil) and 42% to development expenditure (RM600mil).
