Latest news with #PSFTC
Borneo Post
4 days ago
- Business
- Borneo Post
GDP not true measure of prosperity, focus must be on fair growth, says Abang Johari
Abang Johari arrives at the PSFTC 2025. – Photo by Mohd Faisal Ahmad KUCHING (Aug 6): Gross Domestic Product (GDP) figures should not be viewed as the sole measure of a nation's prosperity, said Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. Speaking at the Public Sector Financial Transformation Conference (PSFTC) 2025 here today, he pointed out that while GDP growth is often used to gauge economic progress, it does not necessarily reflect the true quality of life or economic well-being of the people. 'GDP growth can reflect that a country is developing and achieving higher economic returns. But it doesn't really reflect what's happening on the ground. 'GDP does not necessarily give you the right picture. A country can appear prosperous, but its people may still struggle,' he said, citing Nobel Prize-winning economist Joseph Stiglitz, who has long argued that GDP is a limited and sometimes misleading measure of national well-being. Abang Johari explained that GDP, which is calculated by dividing the total value of goods and services by the population, does not capture existing inequalities in society. 'There are certain sectors of the society that remain poor. 'Because of that, my view is that while we maintain and try to put good GDP numbers, we must also have a process to redistribute that growth fairly to our citizens,' he said. He highlighted education as a key pillar of equitable development under the state's Post Covid-19 Development Strategy (PCDS) 2030. 'Against that background, we can uplift the quality of our people with the right educational background to add value to our resources. 'Thus, God willing, starting next year, we will give free tertiary education to all Sarawakians,' he said. Addressing the audience of senior officials, department heads, and finance professionals, Abang Johari also outlined the importance of sound financial planning. He emphasised three core principles: consumption, investment, and savings. 'These three components must be the determining factors when you draw your budget. 'If we follow this principle, I believe that the state or the government will be on the right path,' he said. Drawing comparisons to Nordic countries such as Norway, Finland, and Sweden, Abang Johari praised their disciplined and effective financial management. He noted that although Norway discovered its oil and gas reserves later than Malaysia, it has successfully elevated the living standards of its people through careful resource management. 'In Sarawak, we have some income but we have to look into how we manage our income. 'That is why I set up our sovereign wealth fund and whatever we have, we don't spend it lavishly,' he said. Abang Johari also stressed that public finances must ultimately benefit the people, especially through strategic redistribution efforts. 'We must make sure that when we redistribute, it must have an impact on the people. 'This is what I call a re-engagement exercise.' Abang Johari fair growth GDP
Borneo Post
5 days ago
- Business
- Borneo Post
Premier: Financial transformation crucial for Sarawak's 2030 vision
Abang Johari delivering his keynote address at the PSFTC 2025 in Kuching today. – Photo by Mohd Faisal Ahmad KUCHING (Aug 6): Financial transformation is no longer a matter of choice but a necessity for Sarawak, as it underpins the state's ambition to become a high-income, low-carbon economy by 2030, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. He said the rapidly evolving global landscape has made the role of public finance more critical than ever, particularly in maintaining fiscal discipline, enabling sustainable development, and building public trust. 'Public finance is more than just numbers in a budget. It is the lifeblood of governance, the engine of development, and the bridge between policy aspirations and delivery. 'The strength of our public financial management determines our ability to deliver services, invest in infrastructure, address inequality, and ensure intergenerational equity,' he said in his keynote address at the Public Sector Financial Transformation Conference (PSFTC) 2025 here today. Abang Johari stressed that in the face of global challenges such as climate change, digital disruption, and geopolitical uncertainty, efficient financial management is no longer sufficient. 'We must now transform them. We must embed resilience, sustainability, transparency, and innovation into the very fabric of public financial governance,' he said. He said under the Post Covid-19 Development Strategy (PCDS) 2030, Sarawak has adopted a development-centric fiscal policy guided by the principles of fiscal prudence and discipline, results-based budgeting, revenue diversification, and investments in catalytic sectors and the green economy. 'One of the significant milestones in our journey is the ongoing transition to accrual accounting under the Malaysian Public Sector Accounting Standards (MPSAS). 'This move will enable more accurate, complete, and transparent financial reporting, giving stakeholders a clearer picture of public assets and liabilities,' he said. He also commended the Sarawak State Treasury Department for its leadership in the move from cash-based to accrual accounting. 'Let us ensure that the implementation of accrual accounting is not merely a compliance exercise, but a platform for better policymaking and resource allocations,' he said. Despite global economic headwinds, he noted that Sarawak remains fiscally strong. 'We continue to maintain a health cash reserve, invest in long-term infrastructure and social capital, and pursue revenue reengineering through mechanisms like the state sales tax (SST), carbon trading framework, and public-private partnerships (PPP).' Abang Johari called for a 'whole-of-government and whole-of-society' approach to drive the state's financial transformation, stating that 'financial transformation is not the job of accountants alone.' 'I urge all ministries, departments, agencies, statutory bodies and government-linked companies (GLCs) to embed performance and outcomes into every budget; embrace digital tools to enhance transparency and efficiency; invest in talent development and capacity-building; and champion accountability as a shared responsibility,' he said. Organised by the Sarawak Centre of Performance Excellence (SCOPE) in collaboration with the Sarawak Treasury Department, the PSFTC brought together more than 250 senior officials, department heads, and finance professionals from across Sarawak and Malaysia. Themed 'Strengthening Public Finance for a Sustainable Future', the conference aimed to enhance public sector financial practices amid economic uncertainties, technological disruption, and growing demands for fiscal accountability. Also present were State Food Industry, Commodity, and Regional Development Minister Dato Sri Dr Stephen Rundi Utom; State Secretary Datuk Amar Mohamad Abu Bakar Marzuki; Sarawak Accountant General Datu Elean Masa'at; Auditor General of Malaysia Datuk Seri Wan Suraya Wan Mohd Radzi; and SCOPE chief executive officer Joseph Lim.
