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8/13/2019 Planning Full

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Planning Horizon

Planning is a process of thinking or breakthrough about future activities and ways to

achieve desired goals. Meanwhile, planning horizon means the time or period of process

to apply the strategic or policy to achieved desired goals in future. Planning horizonusually classify by 3 categories which are short term, medium term and long term. In

short term, Suruhanjaya Komunikasi dan Multimedia Malaysias smartphone rebate for

youth program will be annotate further to enlighten the significance of short term

planning horizon. For medium term and long term, Rancangan Malaysia and Wawasan

2020 will be chosen to annotate respectively.

Short term plan

Smartphone RM200 Rebate for Youth and RM1, 000 Grant for Online Entrepreneurs

program coordinate by Malaysian Communications and Multimedia Commission (MCMC)

was announced by Prime Minister as part of Budget 2013.

It is a program that provided RM200 phone rebate for youth aged 21 to 30 and salary is

lower than RM3000 per month. The program had started on 1 January 2013 until 31

December 2013 or estimated 1.5 million youth will be beneficial by the program.

The primary role of the Malaysian Communications and Multimedia Commission is to

implement and promote the Governments national policy objectives for the

communications and Multimedia Act 1998 (CMA). The MCMC is also charged with

overseeing the new industries of the telecommunications, broadcasting and online

activates, as well as postal services and digital certifications.

This program had been implemented because there is a research showing a majority of

the 22% of Malaysian who use smartphones to surf the internet are youth. To enable

the youth to access the information highway, a special package need to be introducedby the Government with the cooperation between the MCMC and telecommunication

companies.


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The idea is to incentive access to those who do not yet use smartphone. We really want

to help those who cannot afford to change phones to upgrade from their old 2G phones

to a basic 3G smartphone.

The program had estimated that one-third of all registrations were students, while therest were working youths. They were reportedly 35.5 million mobile phone subscriptions

in 2011. An MCMC hand phone user survey for that year showed that 20.7% of mobile

phone users were in Selangor followed by Johor (11.7%) and Kuala Lumpur (11%). This

report is shows that the heavy user for the mobile phone was the prosperity areas.

Achievement

A long line had formed outside the YES outlet to get the 4G cloud phone at

Queensbay Mall in Penang by April 22 due to the RM200 rebate program.

By June 3, more than a million people have signed up for the RM200 youth

smartphone rebate since Jan 1, with an average of 12, 000 new registrations

every day.

513, 025 people had cashed in their rebates by May 29. As of May 29, a total of 583, 767 rebates are still up for grabs. The full number

of those who had not applied was not immediately known.

Most of the youths seize the opportunity to upgrade cellphones. Small business entrepreneurs who had registered websites and fulfills all the

terms and conditions would receive a RM1, 000 grant from MCMC. A total of 4,

600 authorized mobile phone dealers across the country had joined the program.

The RM200 rebate has boosted smartphone demand in Asia since January 2013. These RM200 rebate had backup some of the newly mobile phone brand for

example Ninetology and Alcatel.


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Lessons learned

The government had distribute 300 million for the phone rebate program that

quite a big amount of money for the people to make change on their basic

phone to smartphone. Most of the consumers glad the Government understands

not everyone can afford a smartphone worth more than RM500.

Since there is too much of people not intended to buy a phone that worth not

more than RM500, as a result the people keep holding the voucher and ignoring

it and this make the Government change the rule and regulation into the voucher

could use to buy a new phone that priced RM500 and above.

Previously, the redemption period was set to one month, but was extended to

three due to a small selection of phones and operators preparing their dealers

for the package.

In many cases, the applicant did not or forgot to bring their approved application

slip to authorized dealers, it causing difficulties and it cause the Government

make a new website specially for the authorized dealer to verified the details of

the applicants with condition that the applicant have to apply it by themselves.

The rebate was aimed at enabling old second generation mobile phones users,

who earned less than RM3, 000 a month, to own a basic 3G smartphone but the

point is nowadays people is not intended to have a normal one but they seek for

a branded one although they are not affordable but they could use some other

ways for instance, credit card user, ask parent to granted it.

Instead of a rebate, a plan that could help youths save on their monthly phone

internet bills would be a better choice. For instance, what is the use of having a

smartphone but afterward they have to pay high phone bills every month later.

It is not worth it to spend money to get something just because of the RM200

rebate. After all you need to top up more, in another word, this is not free.


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Medium term plan

Medium term planning can be used by country, organization, businessman and company.

To establish the idea to business, industry sector or government organization, it is

convenient for medium term planning to tie it to a few years and attach strategy to atime frame everyone in sport is familiar with and will understand. The example of

medium term planning is Malaysia plan. New Malaysia Plan would establish and

announce every 5 years by Prime Minister of Malaysia.

Thus, the policy selected for our medium term planning was Ninth Malaysia Plan (2006-

2010). Ninth Malaysia Plan is a comprehensive blueprint prepare by the economic

planning unit (EPU) of the prime ministers Departmen t and the Financial Ministry of

Malaysia with the approval by the Cabinet of Malaysia. This plan was unveiled by our

fifth Prime Minister of Malaysia, Datuk Seri Abdullah Ahmad Badawi in parliament.

The Ninth Malaysia Plan was organized according to the thrusts of the National Mission.

There have 5 trust was establish in 9 th Malaysia Plan that is to boost the economy up the

value chain, to raise the capacity for knowledge and innovation and nurture first class

mentality, to address persistent socio -economic inequalities constructively and

productively, to improve the standard and sustainability of quality of live and to

strengthen the institutional and implementation capacity.

The purposed for the 9 th Malaysia Plan was more to improvement and increasing the

status of economic in Malaysia for 5 years period time. That was planned to improve the

few sector and provided the plan to solve the problem was faced in the country. At the

same time, the economic growth in Malaysia will also increase according to the

improvement in that particular sector.


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Achievement

The contribution of total productivity to GDP growth increase to 37.45% from 29%

compared to Eight Malaysia Pan, 2001-2005.

Growth of employment rate 1.6% per annum and 0.9 million jobs was createdduring the Ninth Malaysia Plan.

Reduced the unemployment rate from 3.5% in 2005 to 3.2% in 2007. Private consumption growth rate was attributed to supporting the financial

environment, and bring higher disposal income and positive wealth effect.

Public investment grew at 8.9% per annum, more than the expected rate of

Ninth Malaysia Plan, 5% per annum.

Malaysia position in the IMD World Comparativeness ranking rose from 24 th in

2006 to 10 th in 2010. World Competitiveness ranking improved from 26 th position out of 55 countries in

2005 to 19 th in 2008.

Global Competiveness, the rank position from 25 th out of 125 countries in 2005

to 21 st out of 131 countries in 2007.

Ease of doing business also improved from 25 th position out of 175 countries in

2006 to 24 th position out of 178 countries in 2008.

Enhancing higher contribution to growth from private sector and government-

linked companies to attracting quality foreign direct investment to accelerate

progress towards higher technology activities and expand market linkage.

Contribution of TFP to GDP growth increased from 29% during the Eight

Malaysia Plan to 34.8% during year 2006-2007.

Federal Government continue to pursue a prudent fiscal policy from the Ninth

Malaysia Plan as reflected by reduce the fiscal deficit from 3.6% in 2005 to 3.2%

in 2007.

Total revenue from petroleum income tax and return on investment income hascontributed a high growth rate (14.7%).

Higher revenue has help to reduce the total debt of government from 43.8% in

year 2005 to 41.6% in year 2007.


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Lesson learned

Communication and co-operation between government and non-government

institution is a crucial key to accessing successful.

Advancing in technology and human capital is encouraged to go further because

it will improve the productivity of Malaysia.

Human capital is a necessary requirement to upgrade in order to become a

developed country.

Malaysia had learned to enhance the level of technology regarding to improve

the growth of GDP and there are few programs were occurred under the NinthMalaysia Plan such as skill, leadership and entrepreneur program.

Planning establish by government is important to the investors to analysis the

return of investment rate.

It is important to build up the image of country to increase the credibility and

attract foreign investor to make investment in Malaysia.

The higher the reputation of Malaysia, the more the foreign investors to invest in

Malaysia.

The result and the achievement of the plan could be a good material and data

for further research in the title of How Government Policy impact the country.

Well achievements had been done for the Ninth Malaysia Plan.


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Long term plan

Wawasan 2020 was an ideal introduced by Tun Dr Mahathir which was the fourth prime

minister of Malaysia during the tabling of Sixth Malaysia Plan in 1991. The period to

achieve the ideal was 29 years and it consider as long term planning. Although the idealwas still in progress but still there existed several problems and learning lesson for

Malaysia and the peoples to put in great effort regarding to achieve Wawasan 2020s

objectives and goals.

In 2008, our fifth Prime Minister Datuk Seri Abdullah Ahmad Badawi mentioned the ideal

of Wawasan 2020 will be influenced because of the rising of fuel price. This is because

increased in price of fuel cause the standard living of Malaysian become higher and

affect the level of income per capita become lower. Improving in standard living was the

main objective of Wawasan 2020, thus inflation of fuel price or other daily goods will

critically influence the progress rate of Wawasan 2020. In this case, we realize that

inflation rate in Malaysia can drag on the schedule of Wawasan 2020 or any other

policies and this as a lesson learned from the ideal of Wawasan 2020.

Besides, in the way to achieve Wawasan 2020, same unexpected issues were out the

planning schedule. In 2008, recession in whole world influenced Malaysian productivity

and many workers were unemployed during the economic crisis. This phenomenon

creates a decline on standard of living and gross domestic products due to the recession.

Malaysia unemployment rate was increased to 3.8% in 2008 which was the highest rate

from 1999. Unemployment made peoples suffer in unfulfilled daily demand such as daily

meals or basic requirements. Standard living of peoples started to pull down and

criminal rate seems to increase because thats the only way to survive from the

recession for certain people. Therefore, unexpected issues such as recession and

financial crisis gave Malaysian a lesson of prevent better than cure.

Foremost, facilities provided in Malaysia also not perfect or adequate. Educationspending in Malaysia for the year 2008 was recorded 4.1 per cent which lower than

developed country such as United Stated with 5.5 per cent. Education level was a crucial

key point for a country to produce human capital and develop higher gross domestic

products and standard living because it can produce more human capital and profession

to contribute on productivity and growth of gross domestic product.


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On the other hand, health expenditure in Malaysia was recorded 8 per cent from total

GDP in 2009 which much lower compared to developed country such as United State

recorded 17.6 per cent of total GDP. This means level of Malaysia applies the medical,

paramedical and nursing knowledge was not achieving maturity as United State. Health

and education facilities were important for citizens to develop more productivity and

create innovation.

Meanwhile, health level can ensure citizens in Malaysia to promote restore and remain

health to achieve higher productivity and lower death rate. Therefore, higher education

and health level can contribute to higher standard living and towards higher GDP as

objective of Wawasan 2020. This was consider a lesson learned regarding to achieving

the goals of Wawasan 2020 and government should provide more facilities in education

and health sector to ensure the sustainability of economic and GDP.

In addition, maturity of democratic society in Malaysia also needs to improve to ensure

the stability of economic and politic to raise the gross domestic products. In the election

of 2013, many controversies were incited because the transparency of election was not

sufficient to ensure the fairness of election. For many democracy countries, process of

election was able to sight, thus less argument will incite because nothing can be argue

since the process of election was transparency sufficiently. In this case, Malaysia should

improve the system of election and provide Malaysias citizen a more transparencyelection to avoid controversy. Therefore, maturity of democratic society also consider a

lesson for Malaysia towards Wawasan 2020, because it might become the core obstacle

to achieve Wawasan 2020 since growth of economic and GDP are stopped with the path

of unstable of politic and economic.

Although there are several obstacles exist in the progress to achieve Wawasan 2020, but

there are some achievements for Malaysia regarding to increase growth rate of GDP and

towards Wawasan 2020. In 2011, the gross domestic products amount was recorded

453 billion ringgit Malaysia which increased 338 billion ringgit Malaysia from the

beginning of establishes of Wawasan 2020 which only recorded 115 ringgit Malaysia of

GDP. Nevertheless there is still a long path to achieve the GDP as expected in Wawasan

2020 which recorded 920 billion ringgit Malaysia, but the progress of growth of GDP

might contribute a good impact regarding to achieve Wawasan 2020. Thus, this is the


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achievement of GDP rate until nowadays and ideal of Wawasan 2020 can be attained in

year 2020.

Currently, urbanization in Malaysia recorded 72 per cent of total population. This means

72 per cent of citizens in Malaysia living in urban areas and the remains still living inrural areas. It was an excellent level of urbanization because this meaning that poverty

rate can be reduced due to increase of urban area. Governments had established and

launch many policies to assist the rural area and reduce the poverty rate in rural areas.

Poverty elimination program was launched to ensure the poverty rate decline with the

predicted rate. In 2013, our Prime Minister announced that poverty rate achieve 1.7 per

cent. This shows there are less peoples suffering in poverty in our country and led to

increase of standard living, income per capita and toward increase of GDP. With this

achievement on urbanization and reduction of poverty rate, Wawasan 2020 may achieveprospectively.

In the theory of aggregate demand, increase in GDP can contribute by addition in export

or reducing in import. In year 2011, Malaysia export amount achieve 225.6 billion ringgit

Malaysia with the growth of 7.3 per cent from 2010 which fulfill the target of

government to encourage export in Malaysia. On the hand, import was recorded with

177.1 billion ringgit Malaysia. Although the import was in rate of increasing but the

growth percentage was much lower than export which only recorded 1.6 per cent from2010. Thus, the rate of increase in export still higher than import and contributed

increased in GDP and towards ideal of Wawasan 2020. Government had established

Malaysia external trade Development Corporation to encourage citizens in Malaysia

support local products instead to import products. Therefore, another achievement for

Malaysia towards Wawasan 2020 was successfully encouraging export and lessens

import.

As a conclusion, all policies and strategic applied in country must planned in effective

and systematic to ensure the higher performances can be achieved. Besides, well known

the time frame and lesson learned also can apply as recommendation for the next

policies to enhance the outcomes and minimize the costs and faults.


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Tan, R. (2013, January 18). The star online: Hundreds of youngsters eligible for RM200rebate snap up 4G Cloud Phone . Retrieved October 14, 2013, from The staronline: http://www.thestar.com.my/News/Nation/2013/01/18/Hundreds-of-youngsters-eligible-for-RM200-rebate-snap-up-4G-Cloud-Phone.aspx

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