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Making TN50 Happen Making TN50 Happen 12 January 2018 | Sunway University by JASMIN IRISHA JIM ILHAM The Jeffrey Cheah Institute on policies. The goal of TN50 is to make What the People Want Southeast Asia (JCI), the Jeffrey Sachs Malaysia one of the top 20 countries While TN50 is a continuation of the Center on Sustainable Development in the world,” said Professor Woo. government’s long-term planning, it is (JSC), and the TN50 Special Unit-CSDU novel in that it employs a ‘bottom-up Economic Planning Unit (EPU) co- Johan Mahmood Merican, Deputy approach’. As Johan put it, ‘TN50 is by organised a public forum themed Director General (Human Capital) and the people, for the people’. The TN50 ‘TN50: The Road Ahead’ on 12 January Head of the TN50 Special Unit at EPU, vision needs to be fleshed out and 2018 at Sunway University. The started off his presentation by putting given meaning by Malaysians session was a public discussion on forward the notion that Malaysia had themselves as “no longer does Transformasi Nasional 2050 (TN50), been very successful over the years government know best”, said Johan. Malaysia’s latest national despite having faced some major As such, more than 2 million development vision following on the challenges. Malaysia had done well in Malaysians were engaged in the heels of the New Economic Policy reaching the goals of past formulation of TN50, through public (1971-1990) and Wawasan 2020 development plans such as the New dialogues, town halls, surveys, and (Vision 2020, 1991-2020). Economic Policy’s vision of eliminating social media. poverty and diminishing the Change and Continuity correlation between race and Professor Woo Wing Thye, President economic function, and the Vision of JCI and Director of JSC, opened the 2020 goal of achieving developed event with the reminder that TN50 is nation status. not the first ground-breaking programme of the Najib Notable achievements include the administration to reform the elimination of absolute poverty, Malaysian economy. Earlier efforts at reduced income inequality, reduced reform included policy strategies such interracial differences, and an as the New Economic Model, and the increase in Malaysia’s global “No longer does government know Bumiputera Economic Empowerment competitiveness. Several challenges, best.” Johan Merican Mahmood Program; and the establishment of however, still remain – relative new state agencies such as the poverty still persists, wealth inequality Performance Management and remains high, and social well-being is Johan pointed out three key themes Delivery Unit (PEMANDU) to lagging. In order to address these emerged from the 100,000 collated supplement the efforts of the challenges and propel the country aspirations: (i) Malaysians aspire for Implementation Coordination Unit towards becoming a top 20 nation by Malaysia to be a global leader; (ii) (ICU) in the Prime Minister’s 2050, Johan emphasized the Malaysians want a sustainable and Department. importance of continuing Malaysia’s inclusive society; and (iii) Malaysians tradition of long-term economic and aspire for unity in diversity. According “TN50 is another new bold, ambitious, national planning. to Johan, the youth especially wanted and comprehensive revamping of the country to be carbon neutral by MAKING TN50 HAPPEN 2 2050 and to be a global exemplar in its may not be sustainable. The correct markets are at record levels despite quality of public education. measure is to relate GDP (flow) with bad politics, and so sentiments can wealth (stock), as wealth produces reverse quite rapidly; easy money Johan also stressed that the TN50 plan future income flows. cannot last because central banks will will need to respond to megatrends soon take away the punch-bowl; and such as urbanisation, digitalisation, Tan Sri Dr. Lin thinks that Malaysia’s Malaysia’s upcoming general election resource scarcity, geopolitical shifts, real economy has lost its edge. The can be a wild card. and an ageing society. To this end, current high growth is reflective of an Malaysia will need to formulate and economy on a “sugar high”; and it Tan Sri Dr. Lin expressed the urgent implement policies that will increase masks growing signs of fatigue. There need for real change: “there is no way investment in urban infrastructure, is a growing disconnect between what we can get out from where we are embrace the ‘digital revolution’, government statistics say and the without serious fundamental reforms.” implement environmentally experience on the streets. Current These reforms should include shifting sustainable practices, and strengthen growth is too narrowly focused on the drivers of growth to digital the social safety net. consumption growth, which is not a manufacturing and higher value- reliable driver. “If as many say, the added construction; injecting more Fundamental Reforms economy is structurally strong, why is market-based competition into the Professor Tan Sri Dr. Lin See-Yan, the ringgit so weak? Why is there no economy; reducing the expansion in research professor at Sunway rush-in of FDI? Why is youth the economic role of state-owned University and former deputy unemployment so high?” questioned enterprises to avoid further crowding government of Bank Negara Malaysia, Tan Sri Dr. Lin. out of private initiative; raising total responded to Johan’s speech by factor productivity through AI and stating that the time has come to Tan Sri Dr. Lin warned that there were robotics; adopting a strong exchange change the way of measuring the several things that did not happen in rate policy; adopting structural wealth of a nation. GDP does not 2017 but might return to haunt the reforms to raise potential GDP e.g. by equate with well-being and well-being economy. For example, global bull upgrading education and retaining MAKING TN50 HAPPEN 3 talent; rebalancing income and wealth volunteered the expert services of the concerned however that the existing between wages and profits to reduce Jeffrey Cheah Institute and the Jeffrey hardware and software may not be inequality; and reducing the tax and Sachs Center to the EPU to assist in the effective. He elaborated that the key debt burdens on the middle-class. design of the policy mechanisms to ‘hardware’ component is a dynamic produce the outcomes enunciated in private sector that is not hobbled by TN50. government-linked companies. The key ‘software’ component is a good Drawing on his experience on advising governance system, and the centrally-planned economies to maintenance of a good governance transition to dynamic market system requires public oversight economies, Professor Woo outlined through free and fair elections, an the crux of the problem as being, first, independent and competent judiciary getting the Big Picture right, and, body, and a competitive free press. second, getting the details right. “There is no way we can get out Getting the Big Picture right is akin to According to Professor Woo, the way from where we are without the understanding that one cannot get to achieve TN50 is a dynamic private serious fundamental reforms.” to the moon in a sailboat but only in a sector working in partnership with a Prof. Tan Sri Dr. Lin See-Yan space vehicle. Getting the details right competent government that is means using the best hardware and committed to producing socially- To meet the objectives of TN50, the software available in constructing the inclusive and economically-innovative economy needs to radically focus on space ship. outcomes that are environmentally- achieving rising material living friendly. standards (MLS). This means In the cases of Russia and China, associating income and consumption getting the right Big Picture meant not with wealth creation and its having leaders who – for ideological distribution; and broadening the reasons or out of ignorance – are concept of income to include non- against the employment of the right market activities, e.g. leisure. There is hardware and the right software. For also the urgent need to focus on the example, the goal of economic quality of life – here, the compilation prosperity cannot be achieved by of a set of quality of life indicators is Stalinist leaders who are opposed to critical, covering all dimensions and the use of market mechanisms in domains. resource allocation, and to private ownership of capital. Tan Sri Dr. Lin concluded his presentation by emphasizing the importance of ensuring sustainability. Economic sustainability requires that we do not overconsume economic wealth, and environmentally sustainability requires that we meet the targets in the Paris Pact on Climate Change. “The way to achieve TN50 is to Hardware and Software have a dynamic private sector In his closing remarks, Professor Woo working in partnership with a said he looked forward to the delivery competent government.” of the vision promised in TN50. As Prof. Woo Wing Thye there has not yet been announcements of the policy Professor Woo agreed that the TN50 mechanisms to translate the TN50 vision is a good objective. He is vision into reality, Professor Woo .
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