UNDP Report Commends Malaysia's Achievements

KUALA LUMPUR, Nov 26 (Bernama) -- Malaysia's ability to avoid violent political conflict in contrast to many of its neighbours has stood out even amid its formidable social and economic achievements. In stating this, Frances Stewart, professor emeritus of development economics at the University of Oxford, said success in inclusive growth provided the foundation of this vital political success. "For this reason - as well as the imperative of seeking a just society - it is essential that Malaysia continues to prioritise inclusive growth and social cohesion, and moves forward with the second generation policies that are needed to support this," she said. Stewart noted that Malaysia's success on the three fronts of growth, poverty reduction and improvements in horizontal equality over a prolonged period was one of the best in the world. Her remarks are contained in the 'Malaysia Human Development Report (MHDR) 2013: Redesigning An Inclusive Future' which was launched, here, Tuesday. With Dr Kamal Salih acting as the lead consultant and editor, the report was published by the United Nations Development Programme (UNDP), Malaysia. Stewart said that inclusive growth - growth that benefited poorer people more than proportionately - must remain the overriding objective of policies. "To achieve this, new policies may be needed," she said in the report. The document provides an independent assessment of Malaysia's growth and policy choices and implementation in its quest to achieve developed-country status by 2020. The 331-page report is framed by a paradigm that integrates inclusive growth as a core element of its analysis and policy recommendations. The document acknowledges that Malaysia is a complex nation politically, economically and socially to govern and manage. "But with balanced development and pragmatic policies, it has been able to make considerable advances towards inclusive development in terms of a fairer share in the benefits of economic performance. "The NEP (New Economic Policy) and its successive derivative development policies operating under the rubric of growth with redistribution have made commendable progress, but much more needs to be done if the nation is to simultaneously achieve developed status and inclusive growth," the report says. The report also touches on concerns over the implementation of the Goods and Services Tax (GST) next year that will broaden the country's tax base. It points out that judicious application of an exclusion list will protect the poor and vulnerable groups. The document also highlights that savings from rationalisation of subsidies would create room for the government to effect more targeted and enhance transfers to the lower income and vulnerable groups. This, the report says, will contribute to a more inclusive social policy and have a direct positive impact on household income distribution. -- BERNAMA