13MP review crucial to avoid policy pitfalls, say economists

New Straits Times

4 hours ago

KUALA LUMPUR: Finance Minister II Datuk Seri Amir Hamzah's main duty of finalising the 13th Malaysia Plan (13MP) will improve policy coordination between the Finance Ministry and the Economy Ministry, say economists.
Economist Professor Geoffrey Williams said it is essential for the 13MP to be a robust framework and, as such, it should undergo a comprehensive final review.
He said that increased external and independent scrutiny of the process would enhance the quality of the final document.
"Although there are no details on the exact content, it is important that each proposal is evaluated by independent experts to ensure there are no unintended consequences or obvious issues that need to be addressed.
"There is only a short time for the final review, but it is worth undertaking this exercise to avoid the risk of presenting a document that may attract criticism from the outset," he said.
He said the move would improve policy coordination between the Finance Ministry and the Economy Ministry, and also help in understanding the long-term financial implications and funding strategies.
Yesterday, Chief Secretary to the Government Tan Sri Shamsul Azhar Abbas announced that Amir Hamzah would assume the duties and functions of the Economy Minister with immediate effect.
He said Amir Hamzah's primary responsibility is to revise and reformulate the contents of the 13MP document, which will be tabled in parliament on July 31.
The portfolio became vacant after Datuk Seri Rafizi Ramli resigned from the post on May 28, following his defeat in the PKR central leadership election, where he failed to retain the party's deputy president post.
However, Rafizi, in a statement, expressed concern over the move to revise and reformulate the document, warning that a last-minute decision could undermine public confidence in the national policy document.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the review could improve policy coordination, as there would be greater connectivity between the Finance Ministry and the Economy Ministry.
"I'm sure the 13MP will reflect budget constraints and aim for a higher multiplier effect on growth, while at the same time remaining disciplined in managing government finances," he said.
He said Amir Hamzah, as a technocrat, would take a pragmatic approach to reviewing the document.
"In addition, the plans are being prepared by government machinery that is highly competent, so I suppose the changes would take into consideration the country's long-term growth interests," he said.