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Mid-Term Review of the Eighth Malaysia Plan 2001–2005 Rukunegara

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Mid-Term Review of the Eighth Malaysia Plan 2001–2005 Rukunegara MID-TERM REVIEW OF THE EIGHTH MALAYSIA PLAN 2001–2005 RUKUNEGARA DECLARATION OUR NATION, MALAYSIA, being dedicated to achieving a greater unity of all her peoples; to maintaining a democratic way of life; to creating a just society in which the wealth of the nation shall be equitably shared; to ensuring a liberal approach to her rich and diverse cultural traditions; to building a progressive society which shall be oriented to modern science and technology; WE, her peoples, pledge our united efforts to attain these ends guided by these principles: Belief in God Loyalty to King and Country Upholding the Constitution Rule of Law Good Behaviour and Morality PRIME MINISTER MALAYSIA Foreword The Mid-Term Review of the Eighth Malaysia Plan marks another milestone in our journey towards national development. The Eighth Malaysia Plan, launched in 2001 as the first phase of the Third Outline Perspective Plan (2001-2010), translates into action the National Vision Policy that aims at enhancing competitiveness and strengthening economic resilience. The last three years were extremely challenging in view of the adverse global situation and its attendant effects on economic growth. Although the Malaysian economy grew at a lower rate than was targeted, it achieved creditable growth given its openness and high exposure to electronics exports and particularly in comparison with the performance of other economies in the region. More importantly, growth occurred in an environment of stable prices, low unemployment rate and strong surplus in the current account of the balance of payments. The economic base has become broader with increased contribution from the promoted services sectors and the shift of the manufacturing sector into high technology and knowledge-intensive activities. Although the fiscal deficit increased due to counter-cyclical measures introduced by the Government, it remained within prudent limits. We also made good progress towards creating a more equitable society in terms of poverty eradication, income distribution, and Bumiputera employment in strategic and modern economic sectors. v The experience of the past three years underscores the importance of being constantly prepared to face challenges that come our way. The rapid globalisation of the world economy together with the emergence of other players on the global scene makes it imperative to strengthen the nation by increasing its resilience, competitiveness and innovative capability. Greater efforts will have to be made to reduce the cost of doing business, raise productivity and increase the knowledge content of products, services and internal processes. We must make the acquisition of knowledge a life-long pursuit and develop our indigenous technological and innovative capabilities. This is necessary for the Malaysian economy to deal better with the changing global economic landscape and accelerate its transformation to a high technology and knowledge-based economy. While pursuing higher economic growth, we must also ensure that the ethical and moral basis of our actions is not eroded. Any diminution of our value system will negate the economic gains and render our success hollow. We need to reinforce and practise values that demonstrate our abiding concern for fellow members of society, particularly those who are disadvantaged and in the greatest need. Civic consciousness must entail consideration and protection of the environment. National development cannot be the sole responsibility of the Government, more so in a society of free enterprise and parliamentary democracy like ours. The Government can only set the broad parameters of national policy and make available the necessary funds for the public sector to discharge its responsibilities and implement its programmes. The private sector as a key component of society has a crucial role in providing the economic dynamism so that growth targets are met. The private sector should take advantage of the incentives provided by the Government to expand existing investments and pioneer into niche areas and new sources of growth. In the face of increased competition, the private sector has to relentlessly enhance its competitiveness, become more resourceful and innovative, and benchmark itself against the best performers to benefit from the dynamics in the global market place. Individual Malaysians have also a major role to play. We must all realise that the country’s rapid development and the billions of ringgit in investments by the Government and private sector have raised the quality of and accessibility to infrastructure and amenities that we now enjoy. Public property should be properly used and well maintained. Malaysians must accept that a higher quality of public services must come with a price. Paying for such a service would not vi in any way burden anyone as income has risen faster than the rate of inflation, which is low. In fact, by paying for the services they utilise, Malaysians will be able to enjoy an even better quality of service without straining public resources for their installation and operation. The last two decades of development, witnessed the tremendous rate of transformation. I am convinced that our success is not due to any fortuitous act but the result of the collective efforts of all those entrusted with the responsibility of planning and managing the nation’s economy. To them and the people of Malaysia who have demonstrated the highest sense of responsibility even during very trying times, I would like to express my gratitude. I am in no doubt that if the same commitment continues to be displayed by all, we will make the grade whatever the challenges may be. I want to record my appreciation as well as that of the Government to the National Development Planning Committee chaired by the Chief Secretary to the Government, the Economic Planning Unit and others who have contributed to the planning process for having worked diligently to produce the Mid-Term Review. DR. MAHATHIR BIN MOHAMAD Prime Minister, Malaysia Putrajaya 30 October 2003 vii ChapterChapter 88 InfrastructureInfrastructure andand UtilitiesUtilities 238 INFRASTRUCTURE AND 8 UTILITIES I. INTRODUCTION 8.01 During the review period, infrastructure and utility projects continued to contribute to economic growth through linkages and spillover benefits. Additional new projects, which supported tourism and trade, were also implemented. In addition, measures were taken to improve the efficiency of the delivery system of transportation and utility services. These efforts increased the capacity and improved the efficiency of infrastructure and utilities, which facilitated business activities and enhanced quality of life. 8.02 For the remaining Plan period, focus will be given towards improving service delivery and increasing capacity to further enhance the competitiveness and resilience of the economy. Measures will be taken to integrate transport services to ensure the seamless operation of a multimodal system. Priority will be given towards enhancing quality and reliability in the supply of water and electricity to meet the increasing demands from both domestic consumers and industries. New environmentally sustainable technologies will be studied and adopted to improve quality of life. II. PROGRESS, 2001-2003 8.03 During the review period, the value added of infrastructure and utilities grew by 4.6 per cent per annum, lower than the Plan target of 8.6 per cent. However, the implementation of infrastructure and utility projects contributed to the growth of the economy and constituted 12.6 per cent of Gross Domestic Product in 2003. The expansion in capacity of roads, rail, ports and airports was achieved with active participation of the private sector. The design and build method was used to shorten processing time while financing of projects was 239 facilitated by development financial institutions through privatisation and the deferred payment scheme. To enhance the reliability of supply of utilities, distribution networks were upgraded and expanded. Roads 8.04 During the review period, the implementation of road and bridge projects was accelerated with expenditure of RM10.3 billion, representing 73.6 per cent of the total allocation for this subsector under the Plan period. In addition, the private sector invested about RM1.3 billion under the privatisation programme to construct toll highways. Consequently, the national road network increased by 2,140 km to 75,160 km. 8.05 The completion of several roads and bridges such as the Titi Karangan - Kupang section of the Second East-West Link Road and the Pos Blau - Kampung Kuala Betis section of the Simpang Pulai - Gua Musang - Kuala Berang Road enhanced the development of new areas. Accessibility to the new airports at Tawau and Bintulu was improved with the upgrading of the access roads. In addition, two privatised road projects were completed, namely, the New North Klang Straits Bypass and the Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT Highway) Package A & B. The New North Klang Straits Bypass provided an alternative access road to the North Port, Port Klang, while the completion of the SPRINT Highway Package A & B provided a better linkage between Damansara and the western part of Kuala Lumpur. The list of major road projects implemented during the review period is as shown in Table 8-1. 8.06 In line with efforts to improve safety and driving comfort, several road- upgrading projects were completed during the review period. Among the major roads upgraded were the Brinchang
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