Thursday, July 7, 2011

Six Strategic Reform Initiatives (SRIs)

This latest set of initiatives is to wrap up the New Economic Model, with focus on trying to solve the problems of running a proper government machinery and correct the abuses of the past (or rather, the present). But somehow it lacks the Oomph! for the private sector - which I suppose the EPPs are suppose to be doing.

SRI 1: Public Finance: Increasing Revenue, Reducing Cost
+RM13 billion (contractionary on economy)
Improving tax administration
Rationalising corporate tax incentives
Transparent procurement
Control expenditure
Accrual accounting
Implement GST

SRI 2: Government's Role in Business
Since the government has a funding problem, the government will divest its stable of companies and will only be involved in business in strategic and "GNI-positive" areas:
Regional corridor developments
Procurement of defence technology, etc
Investment in "large growth capital, catalytic or new technology"
Biotechnology, renewable energy, public transport systems, etc

SRI 3: Human Capital Development for High-Income Economy
Minimum wage to be instituted
Talent Corporation to draw up a plan
Unemployment insurance to be introduced
To study labour market
Gender issues
SMEs workforce requirements

SRI 4: Public Service Delivery: Lean, Efficient, Facilitative Government
Remove overlapping processes
Standardise functions
Clear governance structure
Real-time performance monitoring
Real-time feedback rating mechanism
Greater public involvement in high level policy review
"Strategic human resources practices"
Open recruitment within civil service and public-private sectors
Enhancing "cross-moblility" by introducing "mobility characteristics" in new superannuation schemes and enhancing current pension scheme (meaning that civil servants can quit or be sacked halfway through their career and still get pension?)

SRI 5: International Standards and Liberalisation: Improving Malaysia's Competitiveness
Liberalisation of the services sector: healthcare, education, business services (professional businesses)
Standards
Competition law - to promote "competition, private investment and market dynamism" and safeguard against "anti-competition practices and abuse of market power"

SRI 6: Narrowing Disparities (Bumiputera SMEs): Capacity Building Boost
Develop Bumiputera SMEs
Promote wealth creation
Uplift low-income Malaysian households
TERAJU to "lead, coordinate, drive Bumiputera economic participation and to strengthen the Bumiputera development agenda"
High-Performance Bumiputera SME programme
Develop next generation of world-class Bumiputera entrepreneurs
To be able to compete in "open market without heavy reliance on Government contracts"

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