Instead of focusing on good governance and well-informed policies, the 2011 Budget revealed a disturbing reliance on the private sector. Malaysia can get out of the middle-income trap, but economic decentralisation is required for that to happen.
Let’s get it right. The Budget is a fiscal plan informing the people how the government intends to raise and spend money in fulfilment of growth and development objectives that reflect the collective social choice of citizens. To say that the private sector will be the main engine of growth or “private push” as headlines in The Star put it might cause people to think that the government is no longer relevant, which is wrong. It is more correct to remind the citizenry during budget day about the importance of collective efforts as a people and as a nation. Beyond our individual identities and personal aspirations, beyond private risk-takings and anticipated returns, the whole is better than the sum of our individual parts. Instead of focusing on good governance and well-informed policies, the 2011 Budget revealed a disturbing reliance on the private sector. Malaysia can get out of the middle-income trap, but economic decentralisation is required for that to happen. Government Budget GDP
The message from the 2011 Budget should not be reduced to the issue of the private sector being in the driver’s seat. The private sector can drive, but it is the government that must pave the road ahead by doing things right so that the journey forward can be faster and safe. To do this, Malaysia’s current economic circumstances must be assessed correctly, shortcomings identified and then steps taken to overcome these.
