national conference on integrated social policies 7-8 february 2007, cairo, egypt social policy...

26
NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON RAJA ZAINAL ABIDIN

Upload: marian-park

Post on 25-Dec-2015

215 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES

7-8 FEBRUARY 2007, CAIRO, EGYPT

SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA

RAJA ZAHARATON RAJA ZAINAL ABIDIN

Page 2: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

BRIEFING OUTLINE

1. Background on Malaysia2. Development Philosophy and Planning

Machinery3. Major Policy Evolution4. Socio Economic Dimensions5. Development Record and Prospects

Page 3: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

FIGURE 1

PARLIAMENT

PARAMOUNT RULER

CABINET

MINISTRIES CENTRALAGENCIES

DEPARTMENT &AUTHORITIES

MEDIA POLITICALPARTIES

STATEADMINISTRATIONS

NGOs &INTEREST GROUPS

INDIVIDUALS

COUNCIL OFRULERS

Page 4: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Major improvements based on key economic indicators . . .

• GNP per capitaRMUSDUSD (in PPP)

• Unemployment (%)• Inflation (%)• Fed. Govt. account

(% to GDP)• Current a/c of BOP

(% to GNP)

1990

6,2992,3295,284

5.13.1

-2.9

-2.1

2000

13,3333,5098,360

3.11.6

-5.8

9.4

1970

1,132368

1,2477.41.9

-4.0

0.2

1980

3,7371,7174,487

5.66.7

-13.5

-1.2

2005

17,6824,690

10,3003.53.0

-3.8

16.4

2006F

19.7395,235

11,1003.5

3.5-4.0

-3.5

17.2

4

Page 5: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

POPULATION SIZE AND STRUCTURE,2000 and 2010

Total Population(million persons)• Bumiputera• Chinese• Indian

Age Structure (years)

• 0 – 14• 15 – 64• 65+

Dependency Ratio (%)

Median age (years)

2000

% to

Total

2010

% to

Total

% growth2001-

10

23.314.65.61.6

7.714.60.9

59.123.9

28.918.76.51.9

8.619.01.3

52.226.7

100.0

66.125.37.4

33.162.94.0

100.0

68.323.87.1

29.765.84.5

2.22.51.51.8

1.12.63.4

Page 6: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

through a MIXED ECONOMIC SYSTEM of free enterprise but with active government support and directionThe GOVERNMENT provides the broad thrusts and sets direction for the whole economy, and ensures the achievements of socio-economic goalsThe PRIVATE SECTOR is free to operate and given appropriate policy, institutional and infrastructural support.

DEVELOPMENT PHILOSOPHY

Page 7: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Inter AgencyInter AgencyPlanning GroupsPlanning Groups

(IAPGs)(IAPGs)

Consultations withConsultations withthe private sectorthe private sector

ThroughThroughGovernment - private sectorGovernment - private sector

dialoguesdialogues EPU dialogueEPU dialogue MOF budget dialogueMOF budget dialogue Bank Negara dialogueBank Negara dialogue MITI dialogueMITI dialogue

CONSULTATIVE PROCESS

Consultations Consultations with Civil Societywith Civil Society

MOF Budget MOF Budget Dialogue Dialogue Technical Technical

Working Groups Working Groups (TWGs)(TWGs)

Inter AgencyInter AgencyPlanning GroupsPlanning Groups

(IAPGs)(IAPGs)

Page 8: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

PLANNING PROCESSPLANNING PROCESS

TREASURYTREASURY ECONOMIC PLANNINGECONOMIC PLANNINGUNITUNIT

CENTRALCENTRALBANKBANK

DEPARTMENTDEPARTMENTOF STATISTICSOF STATISTICS

INTER AGENCYINTER AGENCYPLANNING GROUP (IAPG)PLANNING GROUP (IAPG)

ECONOMIC PLANNINGECONOMIC PLANNINGUNITUNIT

MINISTRIESMINISTRIES OTHEROTHERAGENCIESAGENCIES

STATESTATEGOVERNMENTGOVERNMENT

ADJUSTMENTAND MATCHING

NATIONALNATIONALDEVELOPMENTDEVELOPMENT

PLANNINGPLANNINGCOMMITTEECOMMITTEE

CABINETCABINET

PRIVATE SECTORPRIVATE SECTOR

PROGRAMMEPROGRAMMEAND PROJECTSAND PROJECTS

PLANNING FROM THE TOPPLANNING FROM THE TOP

PLANNING FROM BELOWPLANNING FROM BELOW

Page 9: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

PLANNING HORIZONPLANNING HORIZON

1. OUTLINE PERSPECTIVE PLAN

(Long term plan)

* OPP1 (1971 - 1990 )

* OPP2 ( 1991-2000 )

2. FIVE-YEAR PLAN ( Medium term )

3. MID-TERM REVIEW ( MTR ) OF THE

FIVE-YEAR PLAN

4. ANNUAL BUDGET ( Short term )

* OPP3 ( 2001-2010 )

Page 10: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Major Economic Policies

• Laissez-faire / export-oriented• Economic and rural development

Growth with Equity :To eradicate poverty & restructure of society

Total Development

Balanced Development : To establish a more united & just society

Building a Resilient & Competitive Nation : To raise quality of development & generate high sustainable growth

Post-independence

1957-70

New Economic Policy (NEP)

National Development Policy (NDP)

National Vision Policy (NVP)

Vision 2020

OPP1 (1971-1990)

OPP2 (1991-2000)

OPP3 (2001-2010)

10

THE NATIONAL MISSION

2006-2020

Enhancing Nation’s Capability ~

competitiveness, unity, distribution & quality of

life

Page 11: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

To integrate the population into the modern economy

To redistribute the wealth of the nation

To improve the quality of life of the people, especially those in the rural areas

Social Development Programmes

Page 12: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

3MP'76-'80

4MP'80-'85

5MP'86-'90

6MP'91-'95

7MP'96-'00

2MP'71-'75

50.618.314.614.42.9

13.17.11.91.7

10.41.5

100.09.8

54.418.713.016.06.3

14.66.21.25.2

14.21.9

100.024.9

60.516.313.620.29.9

21.510.11.68.5

16.21.8

100.046.3

64.820.811.321.510.224.816.12.64.17.23.2

100.035.3

50.611.67.4

22.57.8

24.813.44.43.3

20.14.5

100.054.7

47.68.2

11.421.05.5

31.619.93.83.4

11.89.0

100.099.0

8MP'01-'05

38.54.66.0

19.07.5

40.825.75.64.1

13.07.7

100.0170.0

Development Expenditure Gives Priority To Economic And Social Sectors . . .

(% to Total)

EconomicAgricultureIndustryInfrastructureUtilities

SocialEducationHealthHousing

SecurityAdministration

TOTALRM billion

Sector

12

9MP'06-‘10

44.95.79.9

16.210.937.520.65.45.0

10.66.9

100.0200.0

Page 13: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Malaysia had achieved most of the UN Millennium Development Goals

Eradicate poverty & hunger Achieve universal primary education Promote gender equality & empower women Reduce child mortality Improve maternal health Combat HIV/AIDS, malaria & other diseases Ensure environment sustainability Develop a global partnership for development

Socio-economic dimensions . . .

Page 14: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Major Success to Eradicate Poverty

0

10

20

30

40

50

60

Total 49.3 37.4 16.5 7.5 5.1 4.3

Rural 58.6 45.8 21.1 12.4 11.4 9.6

Urban 24.6 17.5 7.1 3.4 2.0 1.6

Hard-core poor 3.9 1.4 1.0 0.7

1970 1980 1990 1999 2002 2004

(% to

tal h

ouse

hold

s)

Note : a/ Poverty Line Income (PLI) revised methodolody for 2004 was RM661 per month in Peninsular Malaysia (household size 4.4); RM888 in Sabah (household size 5.2); & RM765 in Sarawak (household size 4.6). Hardcore poverty is estimated using half of PLI.

14

2004a

5.7

11.9

2.5

1.2

Page 15: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Focused on human resource development and quality of life improvements

Emphasize income-generating projects and not on welfare handouts Major programmes :

Rural development– New land and in-situ development– Drainage and irrigation– Agriculture support services– Village/small industries– Upgrade rural infrastructure - roads, electricity, water– Upgrade schools & health facilities

Other programmes (hard-core poor)– Direct assistance ~ old folks home / the aged, the

handicapped – food supplements and scholarships– interest free loans

Poverty Eradication Programmes . . .D

ISTR

IBU

TIO

N A

GEN

DA

Page 16: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

110.93

100.0

109.82

95

100

105

110

Better Quality of Life . . .Malaysian Quality of Life Index . . .

• Working life

• Culture & leisure

• Housing

• Transport & comm.

• Health

• Education

• Income & distribution

• Social participation

• Family life

• Environment

• Public safety

MQLI

Area% Change

1990/2004

22.1

21.2

18.9

18.1

18.1

15.9

8.0

6.6

4.2

-0.3

-21.5

10.9The Malaysian Quality of Life Index (MQLI) is an aggregate measure of the quality of life using forty-two indicators, representing eleven components of life

16

Page 17: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Selected Indicators Of Quality Of Life . . . reaching the level enjoyed in advanced

economies

61.6 65.6

39.4

4,302

58

17

48

44

1970 1990

Life expectancy (in years) :•Male•Female

Infant mortality rate / 1000

Population / Doctor ratio

Literacy rate (%)

Telephones / 1000 population 1

Utilities :•Pipe water (% of population)•Electricity (% of households)

68.8 73.5

13.1

2,533

85

131

80

80

2005

71.8 76.2

5.9

1,387

95.1

907

95

98

Note : 1/ Include mobile phones 2/ Universal coverage in urban areas

2

2

17

Page 18: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Real GDP Growth . . .Average 1971- 80Average 1981- 90Average 1991- 2000Average 2001- 05

200020012002200320042005e

2006F

2007F

7.5 %5.8 %7.1 %4.5 %

8.9 %0.3 %4.4 %5.5 %7.2 %5.2 %5.8 %6.0 %

Page 19: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Transformation From an Agro-based to an Industrial-based Economy . . .

1970 1980 1990 2000 2003 2005

Agriculture Construction Manufacturing Mining Services

RM billion

0

50

100

150

200

250

53.9 %

31.9 %

8.9 %

46.8 %

24.6 %

16.3 %26.7 %

37.5 %

12.2 % 43.1 %

17.2 %

21.0 %

58.2 %

31.6 %

8.2 %

(GDP in RM billion at 1987 prices / Percentage to Total in italics)

300

8.6 %

57.6 %

30.8 %

19

Page 20: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Diversification of exports products . . . (% to Total Exports)

Manufactures 11.9

Palm Oil5.1

Others9.8

Rubber33.4

Tin19.6

Forestry16.3

Oil & gas3.9

2005RM 533,790 million

(USD141,588 million)

Manufactures 80.5

Palm Oil3.6Others

2.7Rubber1.1

Tin0.2

Forestry

1.3

Oil & gas9.2

1970RM 5,163 million

(USD2,065 million)20

Page 21: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Implementing Pragmatic Fiscal Policy . . .The Federal Government Accounts, 1970-2006 (RM billion)

-20

0

20

40

60

80

100

120

'70 '76 '82 '88 '94 '97 '00 '03 '06

Revenue must cover operating expenditure and development expenditure must be financed through non-inflationary methods

RevenueRM120.6 bn

(2006)

OperatingExpenditureRM105.4 bn

(2006)

DevelopmentExpenditure

RM34.5 bn(2006)

DeficitRM19.3 bn /

-3.5% of GDP(2006)

21

Page 22: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

• Real GDP growth (% p.a.)

• Per capita GNP (RM) *

• Per capita GNP (US$)*

• PPP Per capita GNP (US$)*

• Inflation (% p.a.)

• Unemployment rate (%) *

• Current a/c of BOP (% GNP)*

• Fed. Govt. account (RM bil.)*

% of GDP

• Pub. Sector account (RM bil.)*

% of GDP

• External reserve (months of retained imports)*

* End of period

Prospects During The 9th Malaysia Plan, 2006-2010

9MP

Target

6.0

23,573

6,273

13,878

low

3.5

13.4

-24.3

-3.4

10.6

1.5

22

Page 23: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Gross Domestic Product, 2000-2010 (% per annum)

GDP (real)AgricultureMiningManufacturingConstructionServices

Govt. ServicesBus. & Non-Govt. Svs.•Utilities•Transport etc•Trade etc•Finance etc•Other Services

% of GDP

2000 2005 2010

% growth per annum

Achieved8MP

Target9MP

4.53.02.64.10.56.1

6.76.0

5.66.6

4.38.14.8

6.05.03.46.73.56.5

4.56.7

5.96.7

6.87.06.6

100.08.97.3

31.93.3

53.9

6.847.1

3.98.0

14.812.77.6

100.08.26.7

31.42.7

58.1

7.650.5

4.18.8

14.715.17.8

100.07.85.9

32.42.4

59.2

7.052.2

4.19.1

15.215.88.0

23

Page 24: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Political stability and harmonious society Efficient government with pro-business policies Getting fundamental policy framework right

Macroeconomic management High savings rate Industrialization strategy & Competitive investment

incentives Productive agriculture Human resource development High-quality infrastructure & social services

Key Factors For Success . . .C

oncl

usi

on

Page 25: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Political environment Administrative competence and

technical expertise Involvement of private sector and

NGOs

FACTORS AFFECTING THE SOCIAL POLICY PROCESS

Page 26: NATIONAL CONFERENCE ON INTEGRATED SOCIAL POLICIES 7-8 FEBRUARY 2007, CAIRO, EGYPT SOCIAL POLICY FORMULATION AND IMPLEMENTATION IN MALAYSIA RAJA ZAHARATON

Thank You