Malaysia and Taiwan are both open, trade-based economies with a deep economic relationship, despite the lack of a formal trade agreement. Both economies face questions over how they will remain competitive over the coming years. Competition in the region is increasingly fierce, with new technologies further fragmenting value chains. These trends are complicated by a shifting policy environment – where once the Trans-Pacific Partnership was set to provide the framework for trade, it has been downgraded to the CPTPP and the US is taking a unilateralist approach. Whereas Taiwan – linked to its ambitious Southbound Policy – has signalled its intention to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
Malaysia has signed the agreement but is unwilling to ratify and implement. How would Taiwan’s membership impact the Malaysian economy? What are the prospects for the CPTPP moving forward as the vehicle for rules-based trade in the Asia Pacific? How can Malaysia and Taiwan achieve continued economic and industrial growth amid the continued pressure to compete and turbulence in the global economy?
This webinar will discuss the economic impact on Malaysia if Taiwan joins the CPTPP. Sign up now!
https://us02web.zoom.us/webinar/register/WN_VXKoecaNQsyoabQG1Bv7Aw
Malaysia has signed the agreement but is unwilling to ratify and implement. How would Taiwan’s membership impact the Malaysian economy? What are the prospects for the CPTPP moving forward as the vehicle for rules-based trade in the Asia Pacific? How can Malaysia and Taiwan achieve continued economic and industrial growth amid the continued pressure to compete and turbulence in the global economy?
This webinar will discuss the economic impact on Malaysia if Taiwan joins the CPTPP. Sign up now!
https://us02web.zoom.us/webinar/register/WN_VXKoecaNQsyoabQG1Bv7Aw
Zoom Video
Welcome! You are invited to join a webinar: IDEAS Webinar: Malaysia, Taiwan and the CPTPP: An opportunity for growth?. After registering…
This webinar will discuss the economic impact on Malaysia if Taiwan joins the CPTPP. Malaysia and Taiwan are two open, trade-based economies with a deep economic relationship, despite the lack of a formal trade agreement. Both economies face questions over…
5th IDEAS Liberalism Conference 2020
"Political and Pandemic Plight: The Future of Liberalism?”
7-8 November 2020 (Saturday & Sunday)
Introduction
2020 has been a year of great change and instability for countries all around the world. The COVID-19 crisis has posed tremendous challenges for all communities, putting immense stress on governments, economies and institutions. The pandemic has also posed an important question for policymakers striking the right balance between public health and civil liberties.
Malaysia has been no exception to these trends and has indeed grappled with weighing these demands, but has been doubly challenged by a political crisis that began in February 2020 and has continued for over 8 months. We are crippled by uncertainty over political leadership and an unstable government, yet needing to manage COVID-19 and its economic fallout. The Budget 2021 will be tabled on 6 November 2020, expected to be the most controversial yet important budget in recent history.
IDEAS will be hosting the 5th Annual Liberalism Conference on 7 November 2020. This Conference is an annual exercise to deliberate on the overall progress towards "A Malaysia that upholds the principles of liberty and justice", according to the vision pronounced by the country’s first Prime Minister, Al-Marhum Tunku Abdul Rahman Putra Al-Haj.
Given the backdrop of Malaysia's unique political, economic and public health conditions, what is the future of liberalism? Are economic stimulus packages anti-competitive, and how will Budget 2021 address the current economic recession? How can the government provide adequate social protection for the most vulnerable communities? Are authoritarian states better at managing pandemics than democratic ones, and what are the lessons for democratic consolidation? What have Malaysia's 2020's political developments taught us about democracy and authoritarian practices?
The conference tracks progress and developments in Malaysia alongside the parameters of the rule of law, competitive markets, limited government and individual liberty and responsibility. We believe that these values are necessary for a liberal and just Malaysia. Drawing on data, expert analysis, statements by the nation's leaders and inputs from the public at large, this Conference provides a snapshot of Malaysia’s socioeconomic and political developments.
To register click on the following link
Day 1, Session 1 7 Nov 2020 (10:00 am - 12:00pm) - https://us02web.zoom.us/webinar/register/WN_rjEWcT_RRpKyu77dHz4clg
Day 1, Session 2, 7 Nov 2020 (2:00pm - 3:30 pm) - https://us02web.zoom.us/webinar/register/WN_D36dL26SQAijqZQbwthfrg
Day 2, 8 Nov 2020 (10:00 am - 12:00pm) - https://us02web.zoom.us/webinar/register/WN_yjDD-lLQSGeiMk62CumqCg
"Political and Pandemic Plight: The Future of Liberalism?”
7-8 November 2020 (Saturday & Sunday)
Introduction
2020 has been a year of great change and instability for countries all around the world. The COVID-19 crisis has posed tremendous challenges for all communities, putting immense stress on governments, economies and institutions. The pandemic has also posed an important question for policymakers striking the right balance between public health and civil liberties.
Malaysia has been no exception to these trends and has indeed grappled with weighing these demands, but has been doubly challenged by a political crisis that began in February 2020 and has continued for over 8 months. We are crippled by uncertainty over political leadership and an unstable government, yet needing to manage COVID-19 and its economic fallout. The Budget 2021 will be tabled on 6 November 2020, expected to be the most controversial yet important budget in recent history.
IDEAS will be hosting the 5th Annual Liberalism Conference on 7 November 2020. This Conference is an annual exercise to deliberate on the overall progress towards "A Malaysia that upholds the principles of liberty and justice", according to the vision pronounced by the country’s first Prime Minister, Al-Marhum Tunku Abdul Rahman Putra Al-Haj.
Given the backdrop of Malaysia's unique political, economic and public health conditions, what is the future of liberalism? Are economic stimulus packages anti-competitive, and how will Budget 2021 address the current economic recession? How can the government provide adequate social protection for the most vulnerable communities? Are authoritarian states better at managing pandemics than democratic ones, and what are the lessons for democratic consolidation? What have Malaysia's 2020's political developments taught us about democracy and authoritarian practices?
The conference tracks progress and developments in Malaysia alongside the parameters of the rule of law, competitive markets, limited government and individual liberty and responsibility. We believe that these values are necessary for a liberal and just Malaysia. Drawing on data, expert analysis, statements by the nation's leaders and inputs from the public at large, this Conference provides a snapshot of Malaysia’s socioeconomic and political developments.
To register click on the following link
Day 1, Session 1 7 Nov 2020 (10:00 am - 12:00pm) - https://us02web.zoom.us/webinar/register/WN_rjEWcT_RRpKyu77dHz4clg
Day 1, Session 2, 7 Nov 2020 (2:00pm - 3:30 pm) - https://us02web.zoom.us/webinar/register/WN_D36dL26SQAijqZQbwthfrg
Day 2, 8 Nov 2020 (10:00 am - 12:00pm) - https://us02web.zoom.us/webinar/register/WN_yjDD-lLQSGeiMk62CumqCg
We just wrapped up our webinar on affirmative action.
Facebook: https://www.facebook.com/239848446510/videos/163785742082154
Facebook: https://www.facebook.com/239848446510/videos/163785742082154
Facebook Watch
IDEAS
The special position of the Malays as prescribed in the Federal Constitution has been a source of debate and tension between politicians, academics,...
Youtube: https://youtu.be/lKktr-tVRUw
YouTube
Affirmative Action: Assistance or Discrimination? (Kedudukan Istimewa: Tongkat atau Diskriminasi?)
The special position of the Malays as prescribed in the Federal Constitution has been a source of debate and tension between politicians, academics, civil society and Malaysians for decades. Since Malaysia’s formation, the government has proposed and implemented…
'IDEAS is excited to announce our digital forum "IDEAS API Forum 2020"! As part of IDEAS' ASEAN Prosperity Initiative (API), the forum aims to facilitate discussions to rethink policy direction for the region in order to create a sustainable and equitable ASEAN recovery plan. Hear from subject matter experts such as Dr. Jayant Menon (Senior Fellow, IDEAS & ISEAS), Tan Sri Dr. Rebecca Fatima Sta Maria (Executive Director, APEC Secretariat) and more on.
What do the new COVID-19 trends imply about the future development of ASEAN? How would they affect future business opportunities across ASEAN? How can ASEAN take this opportunity to promote shared prosperity and equality within the region?
Link to register for Session 1, ‘RCEP becomes official: What does it mean to post-pandemic recovery for ASEAN?’:
https://us02web.zoom.us/webinar/register/WN_Pic3WrpfSvGsLQ3bynlyxQ
What do the new COVID-19 trends imply about the future development of ASEAN? How would they affect future business opportunities across ASEAN? How can ASEAN take this opportunity to promote shared prosperity and equality within the region?
Link to register for Session 1, ‘RCEP becomes official: What does it mean to post-pandemic recovery for ASEAN?’:
https://us02web.zoom.us/webinar/register/WN_Pic3WrpfSvGsLQ3bynlyxQ
Link to register for Session 2, ‘Closing borders: What’s the future of ASEAN migration?’:
https://us02web.zoom.us/webinar/register/WN_bDi7Ny4PRcWJ6kWjYvdOsg
https://us02web.zoom.us/webinar/register/WN_bDi7Ny4PRcWJ6kWjYvdOsg
MEDIA STATEMENT
For Immediate Release
IDEAS: The latest setback with Melaka Gateway highlights the need for better infrastructure planning
1.) The Melaka Gateway has previously been delayed and is now set to be terminated
2.) The project has faced a number of challenges, including pushback from the local community and concerns of economic infeasibility
3.) The termination of the project highlights the need to improve infrastructure project planning, to ensure that Malaysia can benefit from the Belt and Road initiative and now be left with “white elephants”
Kuala Lumpur, 18 November 2020 - The Melaka State government has terminated the land reclamation agreement for the Melaka Gateway Development after the developer failed to complete the project. The Melaka Gateway is a large mixed development to construct artificial islands serving both commercial and tourist functions, in addition to a new deep seaport. The development was considered part of the Belt and Road Initiative (BRI), with a consortium of Chinese State-Owned Enterprises, led by PowerChina International, and local Malaysian company KAJ Development Sdn Bhd.
As with many large infrastructure projects, The development has faced a number of challenges. The project has attracted criticism from the local community, who have complained about the impact on their way of life. To date construction activities have been limited, but concerns have been raised about the impact on the local environment. The economic feasibility of the project had also been questioned – particularly the demand for additional port capacity, when Malaysia’s current ports, including nearby Klang, continue to operate below capacity. Government support for the project has also been mixed. The development was originally backed by the federal government under Barisan Nasional but negotiations over the port license became strained with the Pakatan Harapan government, suggesting a policy discontinuity between the two administrations. The Melaka state government initially granted the developer freehold land status on the islands but subsequently sought to move to a leasehold arrangement. Now, due to failure to progress the project, the Melaka State government has terminated the land reclamation agreement.
These issues partly reflect inadequate infrastructure project planning. Infrastructure on this scale requires rigorous planning, specifically: social and environmental impact assessments to secure local buy-in and protect the local ecosystem; and economic and financial feasibility assessments to ensure there is an underlying need for the new infrastructure and the project implementers have the capacity to deliver. The Melaka Gateway was primarily a privately driven initiative, but the Malaysian government should take this opportunity to ensure that infrastructure planning is strengthened both for public and private-led projects. Without these processes in place, the projects themselves are placed at significant risk of being left unfinished.
Commenting on these developments, IDEAS Research Director Laurence Todd said: “The Belt and Road initiative has the potential to deliver significant economic benefits to Malaysia and the wider region, through much need infrastructure. However, delivering large scale infrastructure is not straightforward and without proper planning can result in white elephants. This may now be the fate for the Melaka Gateway. We should learn from this and ensure that all future infrastructure projects are subject to thorough economic and financial feasibility assessments and social impact assessments, made publicly available.”
--- END ---
For media enquiries, please contact amir@ideas.org.my
For Immediate Release
IDEAS: The latest setback with Melaka Gateway highlights the need for better infrastructure planning
1.) The Melaka Gateway has previously been delayed and is now set to be terminated
2.) The project has faced a number of challenges, including pushback from the local community and concerns of economic infeasibility
3.) The termination of the project highlights the need to improve infrastructure project planning, to ensure that Malaysia can benefit from the Belt and Road initiative and now be left with “white elephants”
Kuala Lumpur, 18 November 2020 - The Melaka State government has terminated the land reclamation agreement for the Melaka Gateway Development after the developer failed to complete the project. The Melaka Gateway is a large mixed development to construct artificial islands serving both commercial and tourist functions, in addition to a new deep seaport. The development was considered part of the Belt and Road Initiative (BRI), with a consortium of Chinese State-Owned Enterprises, led by PowerChina International, and local Malaysian company KAJ Development Sdn Bhd.
As with many large infrastructure projects, The development has faced a number of challenges. The project has attracted criticism from the local community, who have complained about the impact on their way of life. To date construction activities have been limited, but concerns have been raised about the impact on the local environment. The economic feasibility of the project had also been questioned – particularly the demand for additional port capacity, when Malaysia’s current ports, including nearby Klang, continue to operate below capacity. Government support for the project has also been mixed. The development was originally backed by the federal government under Barisan Nasional but negotiations over the port license became strained with the Pakatan Harapan government, suggesting a policy discontinuity between the two administrations. The Melaka state government initially granted the developer freehold land status on the islands but subsequently sought to move to a leasehold arrangement. Now, due to failure to progress the project, the Melaka State government has terminated the land reclamation agreement.
These issues partly reflect inadequate infrastructure project planning. Infrastructure on this scale requires rigorous planning, specifically: social and environmental impact assessments to secure local buy-in and protect the local ecosystem; and economic and financial feasibility assessments to ensure there is an underlying need for the new infrastructure and the project implementers have the capacity to deliver. The Melaka Gateway was primarily a privately driven initiative, but the Malaysian government should take this opportunity to ensure that infrastructure planning is strengthened both for public and private-led projects. Without these processes in place, the projects themselves are placed at significant risk of being left unfinished.
Commenting on these developments, IDEAS Research Director Laurence Todd said: “The Belt and Road initiative has the potential to deliver significant economic benefits to Malaysia and the wider region, through much need infrastructure. However, delivering large scale infrastructure is not straightforward and without proper planning can result in white elephants. This may now be the fate for the Melaka Gateway. We should learn from this and ensure that all future infrastructure projects are subject to thorough economic and financial feasibility assessments and social impact assessments, made publicly available.”
--- END ---
For media enquiries, please contact amir@ideas.org.my
KENYATAAN MEDIA
Untuk Sebaran Segera
IDEAS: Halangan terbaharu berkenaan Melaka Gateway menunjukkan keperluan perancangan infrastruktur yang lebih baik
1.) Melaka Gateway pernah ditangguhkan sebelum ini dan kini akan dibatalkan
2.) Projek ini telah menghadapi beberapa cabaran, termasuk penolakan dari komuniti tempatan dan kebimbangan mengenai ketidakbolehlaksanaan ekonomi
3.) Pembatalan projek ini menunjukkan keperluan untuk menambahbaik perancangan projek infrastruktur, untuk memastikan Malaysia beroleh manfaat dari inisiatif Belt and Road dan kini hanya tinggal projek “gajah putih”
Kuala Lumpur, 18 November 2020 - Kerajaan negeri Melaka telah membatalkan perjanjian tebus guna tanah untuk Melaka Gateway Development, selepas pihak pemaju gagal menyiapkan projek tersebut. Melaka Gateway merupakan satu projek pembangunan bercampur untuk membina pulau-pulau buatan sebagai memenuhi keperluan komersial dan pelancong, sebagai tambahan kepada satu pelabuhan laut dalam baharu. Pembangunan ini dianggap sebahagian dari Belt and Road Initiative (BRI), bersama satu konsortium perusahaan milik negara China, diketuai oleh PowerChina International, dan syarikat tempatan KAJ Development Sdn. Bhd.
Sebagaimana projek infrastruktur besar lain, pembangunan ini menghadapi beberapa cabaran. Projek ini telah menerima kritikan dari komuniti tempatan yang telah membuat aduan mengenai kesan terhadap kehidupan mereka. Sehingga kini, aktiviti pembinaan telah dihadkan, tetapi kebimbangan telah dibangkitkan mnegenai kesan terhadap alam sekitar. Kebolehlaksanaan ekonomi projek ini juga telah dipersoalkan – terutamanya mengenai permintaan kapasiti tambahan pelabuhan, di kala pelabuhan-pelabuhan Malaysia yang sedia ada, termasuk Pelabuhan Klang yang berdekatan, beroperasi di bawah kapasiti sebenar. Sokongan kerajaan terhadap projek ini juga bercampur-campur. Pembangunan ini pada awalnya disokong oleh kerajaan persekutuan di bawah Barisan Nasional tetapi rundingan mengenai lesen pelabuhan bersama kerajaan Pakatan Harapan menjadi tegang, menunjukkan kemungkinan ketidaksinambungan dasar antara dua pentadbiran tersebut. Kerajaan negeri Melaka pada awalnya memberikan pulau-pulau itu status tanah pegangan bebas kepada pemaju tetapi kemudian cuba menukar kepada pegangan pajakan. Kini, disebabkan kegagalan menyiapkan projek tersebut, kerajaan negeri Melaka telah membatalkan perjanjian tebus guna tanah itu.
Isu-isu seperti ini sebahagiannya menunjukkan perancangan projek infrastruktur yang tidak mencukupi. Infrastruktur pada skala ini memerlukan perancangan yang teliti, terutamanya: penilaian impak terhadap alam sekitar dan sosial untuk menjamin sokongan tempatan serta melindungi ekosistem tempatan; dan penilaian kebolehlaksanaan ekonomi dan kewangan untuk memastikan terdapat keperluan yang mendasari infrastruktur baharu dan pelaksana projek mempunyai kemampuan untuk melakukannya. Melaka Gateway merupakan satu inisiatif yang dipandu oleh pihak swasta, tetapi kerajaan Malaysia perlu mengambil peluang ini untuk memastikan perancangan infrastruktur diperkukuhkan untuk projek yang dipandu oleh kedua-dua sektor awam dan swasta. Tanpa proses sebegini, projek-projek tersebut berisiko tidak dapat disiapkan.
Mengulas mengenai perkembangan ini, Pengarah Penyelidikan IDEAS Laurence Todd berkata, “Inisiatif Belt and Road ini berpotensi untuk memberikan manfaat ekonomi kepada Malaysia dan rantau yang lebih luas, melalui infrastruktur yang amat diperlukan. Namun, menyempurnakan infrastruktur berskala besar bukan sesuatu yang mudah dan tanpa perancangan yang rapi akan menghasilkan projek gajah putih. Melaka Gateway kini mungkin menerima nasib sebegini. Kita perlu mengambil teladan dari perkara ini dan memastikan semua projek infrastruktur pada masa hadapan akan melalui penilaian kebolehlaksanaan ekonomi dan kewangan yang menyeluruh dan penilaian impak sosial, yang tersedia untuk diakses oleh masyarakat awam.”
--- TAMAT ---
Untuk sebarang pertanyaan, sila hubungi amir@ideas.org.my
Untuk Sebaran Segera
IDEAS: Halangan terbaharu berkenaan Melaka Gateway menunjukkan keperluan perancangan infrastruktur yang lebih baik
1.) Melaka Gateway pernah ditangguhkan sebelum ini dan kini akan dibatalkan
2.) Projek ini telah menghadapi beberapa cabaran, termasuk penolakan dari komuniti tempatan dan kebimbangan mengenai ketidakbolehlaksanaan ekonomi
3.) Pembatalan projek ini menunjukkan keperluan untuk menambahbaik perancangan projek infrastruktur, untuk memastikan Malaysia beroleh manfaat dari inisiatif Belt and Road dan kini hanya tinggal projek “gajah putih”
Kuala Lumpur, 18 November 2020 - Kerajaan negeri Melaka telah membatalkan perjanjian tebus guna tanah untuk Melaka Gateway Development, selepas pihak pemaju gagal menyiapkan projek tersebut. Melaka Gateway merupakan satu projek pembangunan bercampur untuk membina pulau-pulau buatan sebagai memenuhi keperluan komersial dan pelancong, sebagai tambahan kepada satu pelabuhan laut dalam baharu. Pembangunan ini dianggap sebahagian dari Belt and Road Initiative (BRI), bersama satu konsortium perusahaan milik negara China, diketuai oleh PowerChina International, dan syarikat tempatan KAJ Development Sdn. Bhd.
Sebagaimana projek infrastruktur besar lain, pembangunan ini menghadapi beberapa cabaran. Projek ini telah menerima kritikan dari komuniti tempatan yang telah membuat aduan mengenai kesan terhadap kehidupan mereka. Sehingga kini, aktiviti pembinaan telah dihadkan, tetapi kebimbangan telah dibangkitkan mnegenai kesan terhadap alam sekitar. Kebolehlaksanaan ekonomi projek ini juga telah dipersoalkan – terutamanya mengenai permintaan kapasiti tambahan pelabuhan, di kala pelabuhan-pelabuhan Malaysia yang sedia ada, termasuk Pelabuhan Klang yang berdekatan, beroperasi di bawah kapasiti sebenar. Sokongan kerajaan terhadap projek ini juga bercampur-campur. Pembangunan ini pada awalnya disokong oleh kerajaan persekutuan di bawah Barisan Nasional tetapi rundingan mengenai lesen pelabuhan bersama kerajaan Pakatan Harapan menjadi tegang, menunjukkan kemungkinan ketidaksinambungan dasar antara dua pentadbiran tersebut. Kerajaan negeri Melaka pada awalnya memberikan pulau-pulau itu status tanah pegangan bebas kepada pemaju tetapi kemudian cuba menukar kepada pegangan pajakan. Kini, disebabkan kegagalan menyiapkan projek tersebut, kerajaan negeri Melaka telah membatalkan perjanjian tebus guna tanah itu.
Isu-isu seperti ini sebahagiannya menunjukkan perancangan projek infrastruktur yang tidak mencukupi. Infrastruktur pada skala ini memerlukan perancangan yang teliti, terutamanya: penilaian impak terhadap alam sekitar dan sosial untuk menjamin sokongan tempatan serta melindungi ekosistem tempatan; dan penilaian kebolehlaksanaan ekonomi dan kewangan untuk memastikan terdapat keperluan yang mendasari infrastruktur baharu dan pelaksana projek mempunyai kemampuan untuk melakukannya. Melaka Gateway merupakan satu inisiatif yang dipandu oleh pihak swasta, tetapi kerajaan Malaysia perlu mengambil peluang ini untuk memastikan perancangan infrastruktur diperkukuhkan untuk projek yang dipandu oleh kedua-dua sektor awam dan swasta. Tanpa proses sebegini, projek-projek tersebut berisiko tidak dapat disiapkan.
Mengulas mengenai perkembangan ini, Pengarah Penyelidikan IDEAS Laurence Todd berkata, “Inisiatif Belt and Road ini berpotensi untuk memberikan manfaat ekonomi kepada Malaysia dan rantau yang lebih luas, melalui infrastruktur yang amat diperlukan. Namun, menyempurnakan infrastruktur berskala besar bukan sesuatu yang mudah dan tanpa perancangan yang rapi akan menghasilkan projek gajah putih. Melaka Gateway kini mungkin menerima nasib sebegini. Kita perlu mengambil teladan dari perkara ini dan memastikan semua projek infrastruktur pada masa hadapan akan melalui penilaian kebolehlaksanaan ekonomi dan kewangan yang menyeluruh dan penilaian impak sosial, yang tersedia untuk diakses oleh masyarakat awam.”
--- TAMAT ---
Untuk sebarang pertanyaan, sila hubungi amir@ideas.org.my
IDEAS Webinar - Direct Negotiation: Should we abandon the practice?”
Date: 27 November 2020
Time: 10:00 AM (Malaysia Time)
Presenter - Sri Murniati, Manager, Public Finance Unit, IDEAS
Panellist:
YB Dr Ong Kian Ming - MP of Bangi
Alan Kirupakaran - Partner, OAKS Consultancy, Governance and Transparency Practitioner
Tan Sri Mohd Sheriff Mohd Kassim - Founding Member, G25
Moderator - Tricia Yeoh
Debates on direct negotiation have garnered significant attention in recent times when the Minister of Finance revealed 101 direct negotiation contracts awarded by the PH government. This method has been heavily criticised in the past for being prone to abuse, as well as promoting unfair practices. Are these criticisms fair? What are the problems with the current practice of direct negotiation? Is it possible to improve the practice or should we just abandon it? In conjunction with the release of IDEAS’ policy paper entitled “Improving Direct Negotiation Rules in Malaysia: Learning from Current Practices and International Laws”, this webinar aims to uncover the problems in the current rules and practices of direct negotiation and explore recommendations for reform.
To register, log on to https://us02web.zoom.us/webinar/register/WN_2QnRbvFFSwmCu3PaCm1NWw
Date: 27 November 2020
Time: 10:00 AM (Malaysia Time)
Presenter - Sri Murniati, Manager, Public Finance Unit, IDEAS
Panellist:
YB Dr Ong Kian Ming - MP of Bangi
Alan Kirupakaran - Partner, OAKS Consultancy, Governance and Transparency Practitioner
Tan Sri Mohd Sheriff Mohd Kassim - Founding Member, G25
Moderator - Tricia Yeoh
Debates on direct negotiation have garnered significant attention in recent times when the Minister of Finance revealed 101 direct negotiation contracts awarded by the PH government. This method has been heavily criticised in the past for being prone to abuse, as well as promoting unfair practices. Are these criticisms fair? What are the problems with the current practice of direct negotiation? Is it possible to improve the practice or should we just abandon it? In conjunction with the release of IDEAS’ policy paper entitled “Improving Direct Negotiation Rules in Malaysia: Learning from Current Practices and International Laws”, this webinar aims to uncover the problems in the current rules and practices of direct negotiation and explore recommendations for reform.
To register, log on to https://us02web.zoom.us/webinar/register/WN_2QnRbvFFSwmCu3PaCm1NWw
Zoom Video
Welcome! You are invited to join a webinar: Direct Negotiation: Should we abandon the practice?. After registering, you will receive…
Debates on direct negotiation have garnered significant attention in recent times, once again catching the eye of the public in August, where the Minister of Finance revealed 101 direct negotiation contracts awarded by the PH government. This method has been…
Media Statement
For immediate release
IDEAS: Revise Direct Negotiation Methods and Introduce Competitive Negotiations
• Current policies are inadequate to address prevailing issues indirectly negotiated contracts, including corruption and chronic mismanagement.
• Analysis of the Auditor-General’s Report 2014-18 indicates that there were multiple instances of abuse where no further action was taken.
• To respond to non-catastrophe related urgent needs direct negotiation should be replaced with competitive negotiations, building on international best practice.
• The upcoming Government Procurement Act provides an opportunity for the government to improve value for money, accountability, and transparency in the direct negotiation process. IDEAS calls for the inclusion of “competitive negotiations” and “review system” in the upcoming Act, as well as strengthening of the current circulars.
Kuala Lumpur, 26 November 2020 - The Institute for Democracy and Economic Affairs (IDEAS) has published a policy paper, “Improving Direct Negotiation Rules in Malaysia: Learning from Current Practices and International Laws” co-written by Sri Murniati and Danial Ariff.
Public procurement through direct negotiation has been viewed negatively by the public due to its proclivity for abuse and cronyism. The Finance Minister's revelation of 101 directly-negotiated contracts in August put direct negotiations in the spotlight once again. IDEAS CEO Tricia Yeoh said, "This paper is part of IDEAS' initiative to contribute to the government’s plan to introduce a procurement legislation by 2023, as mandated by the National Anti-Corruption Plan 2020. The paper evaluates the limitations of current rules on direct negotiation, how they are practised, and presents recommendations for reform. To show how the current rules are being practised, this paper conducted an analysis of direct negotiation contracts disclosed in Auditor-General’s report 2014-18."
The paper argues that the current rules of direct negotiation (Circulars P.K 7.15 & P.K 7.16) have measures to ensure direct negotiation contracts are delivered with some accountability, achieve value for money, and foster fair competition. However, they do not have adequate transparency measures and contain measures that may negatively impact accountability and value for money. Additionally, the analysis of the direct negotiation projects in the Auditor General Reports from 2014-2018 shows that the rules are not implemented well. The paper identifies multiple violations of rules in the approval process, qualification of contractors, and negotiation process.
The paper recommends revision to the current policies and the adoption of “competitive negotiations” as an alternative to the current model of direct negotiation. This reform should be coupled with a review system in the upcoming procurement legislation. Additionally, IDEAS calls for a clear separation between the power and responsibility of bureaucrats and politicians in procurement exercises. It also reiterates our previous call to publish information about direct negotiation before and after the procurement exercise.
Yeoh added that “Direct negotiation is a necessary procurement method to address the needs for expedited service delivery. However, the gaps in the current rules create loopholes that can be exploited by individuals in positions of power for their advantages. The recommendations that the paper puts forward can minimise the loopholes and strengthen the potential of this procurement method to deliver value for taxpayers' money."
--- END ---
A copy of the paper can be downloaded here (https://bit.ly/directnegotiation)
We will be discussing the paper tomorrow at a webinar titled "Direct Negotiations: Should we abandon the practice?" (27 Nov 2020, 10:00 am). To register, log on to https://us02web.zoom.us/webinar/register/WN_2QnRbvFFSwmCu3PaCm1NWw
For immediate release
IDEAS: Revise Direct Negotiation Methods and Introduce Competitive Negotiations
• Current policies are inadequate to address prevailing issues indirectly negotiated contracts, including corruption and chronic mismanagement.
• Analysis of the Auditor-General’s Report 2014-18 indicates that there were multiple instances of abuse where no further action was taken.
• To respond to non-catastrophe related urgent needs direct negotiation should be replaced with competitive negotiations, building on international best practice.
• The upcoming Government Procurement Act provides an opportunity for the government to improve value for money, accountability, and transparency in the direct negotiation process. IDEAS calls for the inclusion of “competitive negotiations” and “review system” in the upcoming Act, as well as strengthening of the current circulars.
Kuala Lumpur, 26 November 2020 - The Institute for Democracy and Economic Affairs (IDEAS) has published a policy paper, “Improving Direct Negotiation Rules in Malaysia: Learning from Current Practices and International Laws” co-written by Sri Murniati and Danial Ariff.
Public procurement through direct negotiation has been viewed negatively by the public due to its proclivity for abuse and cronyism. The Finance Minister's revelation of 101 directly-negotiated contracts in August put direct negotiations in the spotlight once again. IDEAS CEO Tricia Yeoh said, "This paper is part of IDEAS' initiative to contribute to the government’s plan to introduce a procurement legislation by 2023, as mandated by the National Anti-Corruption Plan 2020. The paper evaluates the limitations of current rules on direct negotiation, how they are practised, and presents recommendations for reform. To show how the current rules are being practised, this paper conducted an analysis of direct negotiation contracts disclosed in Auditor-General’s report 2014-18."
The paper argues that the current rules of direct negotiation (Circulars P.K 7.15 & P.K 7.16) have measures to ensure direct negotiation contracts are delivered with some accountability, achieve value for money, and foster fair competition. However, they do not have adequate transparency measures and contain measures that may negatively impact accountability and value for money. Additionally, the analysis of the direct negotiation projects in the Auditor General Reports from 2014-2018 shows that the rules are not implemented well. The paper identifies multiple violations of rules in the approval process, qualification of contractors, and negotiation process.
The paper recommends revision to the current policies and the adoption of “competitive negotiations” as an alternative to the current model of direct negotiation. This reform should be coupled with a review system in the upcoming procurement legislation. Additionally, IDEAS calls for a clear separation between the power and responsibility of bureaucrats and politicians in procurement exercises. It also reiterates our previous call to publish information about direct negotiation before and after the procurement exercise.
Yeoh added that “Direct negotiation is a necessary procurement method to address the needs for expedited service delivery. However, the gaps in the current rules create loopholes that can be exploited by individuals in positions of power for their advantages. The recommendations that the paper puts forward can minimise the loopholes and strengthen the potential of this procurement method to deliver value for taxpayers' money."
--- END ---
A copy of the paper can be downloaded here (https://bit.ly/directnegotiation)
We will be discussing the paper tomorrow at a webinar titled "Direct Negotiations: Should we abandon the practice?" (27 Nov 2020, 10:00 am). To register, log on to https://us02web.zoom.us/webinar/register/WN_2QnRbvFFSwmCu3PaCm1NWw
Kenyataan Media
Untuk Sebaran Segera
IDEAS: Semak semula kaedah-kaedah rundingan langsung dan perkenal rundingan berdaya saing
· Dasar semasa tidak mencukupi untuk menangani isu-isu yang sedang berlaku dalam kontrak-kontrak rundingan langsung, termasuk rasuah dan salah urus yang kronik.
· Analisis Laporan Ketua Audit Negara pada tahun 2014-2018 menunjukkan terdapat pelbagai contoh kejadian salah guna kuasa yang tidak diambil sebarang tindakan.
· Untuk keperluan mendesak yang wajar (tidak berkaitan dengan sebarang bencana/krisis), rundingan langsung perlu digantikan dengan rundingan berdaya saing, menuruti amalan terbaik antarabangsa.
· Akta Perolehan Kerajaan yang akan datang memberi satu peluang kepada kerajaan untuk menambahbaik nilai untuk wang, kebertanggungjawaban, dan ketelusan dalam proses rundingan langsung. IDEAS menyeru kepada pemasukan “rundingan berdaya saing” dan “sistem mengkaji semula” dalam akta yang akan dibentangkan, serta mengukuhkan pekeliling semasa.
Kuala Lumpur, 26 November 2020 – Institut Demokrasi dan Hal Ehwal Ekonomi (IDEAS) telah menerbitkan satu kertas dasar, “Improving Direct Negotiation Rules in Malaysia: Learning From Current Practices and International Laws” yang ditulis secara bersama oleh Sri Murniati dan Danial Ariff.
Perolehan awam melalui rundingan langsung dilihat secara negatif oleh masyarakat awam disebabkan oleh kecenderungan kepada salah guna kuasa dan kronisme. Pendedahan oleh Menteri Kewangan mengenai 101 kontrak rundingan langsung pada Ogos lalu telah menyebabkan rundingan langsung sekali lagi menjadi tumpuan.
Ketua Pegawai Eksekutif IDEAS Tricia Yeoh berkata, “Kertas ini merupakan sebahagian dari inisiatif IDEAS untuk menyumbang kepada perancangan kerajaan untuk memperkenal satu perundangan perolehan menjelang tahun 2023, seperti yang dimandatkan oleh Pelan Antirasuah Nasional 2020. Kertas ini menilai had peraturan semasa mengenai rundingan langsung, bagaimana peraturan tersebut diamalkan, dan memberikan cadangan untuk pembaharuan. Untuk menunjukkan bagaimana peraturan semasa diamalkan, kertas ini telah melakukan analisis terhadap kontrak-kontrak rundingan langsung yang didedahkan dalam Laporan Ketua Audit Negara pada tahun 2014-2018.”
Kertas ini memberi hujah yang peraturan rundingan langsung semasa (Pekeliling P.K 7.15 & P.K 7.16) mempunyai langkah-langkah untuk memastikan kontrak rundingan langsung dilaksanakan dengan sedikit kebertanggungjawaban, mencapai nilai untuk wang, dan memupuk persaingan yang adil. Namun, peraturan tersebut tidak mempunyai langkah-langkah ketelusan yang mencukupi dan mengandungi langkah-langkah yang mungkin memberi impak negatif terhadap kebertanggungjawaban dan nilai untuk wang. Tambahan pula, analisis terhadap projek-projek rundingan langsung dalam Laporan Ketua Audit Negara pada tahun 2014-2018 menunjukkan peraturan-peraturan ini tidak dilaksanakan dengan baik. Kertas ini mengenalpasti pelbagai pelanggaran peraturan dalam proses kelulusan, kelayakan kontraktor, dan proses rundingan.
Kertas ini mencadangkan semakan terhadap dasar semasa dan penggunaan “rundingan berdaya saing” sebagai satu alternatif kepada model rundingan langsung semasa. Pembaharuan ini perlu disertakan bersama satu sistem kajian semula dalam perundangan perolehan yang akan datang. Tambahan pula, IDEAS menyeru kepada satu pengasingan yang jelas antara kuasa dan tanggungjawab birokrat dan ahli politik dalam amalan perolehan. Hal ini juga mengulangi seruan kami sebelum ini untuk mendedahkan maklumat mengenai rundingan langsung sebelum dan selepas proses perolehan.
Tambah Yeoh, “Rundingan langsung merupakan satu kaedah perolehan yang diperlukan untuk menangani keperluan penyampaian perkhidmatan yang dipercepatkan. Walaupun begitu, jurang yang terdapat dalam peraturan sedia ada telah menghasilkan kelompongan yang dapat dieksploitasi oleh individu-individu yang mempunyai kuasa untuk kepentingan mereka.
Untuk Sebaran Segera
IDEAS: Semak semula kaedah-kaedah rundingan langsung dan perkenal rundingan berdaya saing
· Dasar semasa tidak mencukupi untuk menangani isu-isu yang sedang berlaku dalam kontrak-kontrak rundingan langsung, termasuk rasuah dan salah urus yang kronik.
· Analisis Laporan Ketua Audit Negara pada tahun 2014-2018 menunjukkan terdapat pelbagai contoh kejadian salah guna kuasa yang tidak diambil sebarang tindakan.
· Untuk keperluan mendesak yang wajar (tidak berkaitan dengan sebarang bencana/krisis), rundingan langsung perlu digantikan dengan rundingan berdaya saing, menuruti amalan terbaik antarabangsa.
· Akta Perolehan Kerajaan yang akan datang memberi satu peluang kepada kerajaan untuk menambahbaik nilai untuk wang, kebertanggungjawaban, dan ketelusan dalam proses rundingan langsung. IDEAS menyeru kepada pemasukan “rundingan berdaya saing” dan “sistem mengkaji semula” dalam akta yang akan dibentangkan, serta mengukuhkan pekeliling semasa.
Kuala Lumpur, 26 November 2020 – Institut Demokrasi dan Hal Ehwal Ekonomi (IDEAS) telah menerbitkan satu kertas dasar, “Improving Direct Negotiation Rules in Malaysia: Learning From Current Practices and International Laws” yang ditulis secara bersama oleh Sri Murniati dan Danial Ariff.
Perolehan awam melalui rundingan langsung dilihat secara negatif oleh masyarakat awam disebabkan oleh kecenderungan kepada salah guna kuasa dan kronisme. Pendedahan oleh Menteri Kewangan mengenai 101 kontrak rundingan langsung pada Ogos lalu telah menyebabkan rundingan langsung sekali lagi menjadi tumpuan.
Ketua Pegawai Eksekutif IDEAS Tricia Yeoh berkata, “Kertas ini merupakan sebahagian dari inisiatif IDEAS untuk menyumbang kepada perancangan kerajaan untuk memperkenal satu perundangan perolehan menjelang tahun 2023, seperti yang dimandatkan oleh Pelan Antirasuah Nasional 2020. Kertas ini menilai had peraturan semasa mengenai rundingan langsung, bagaimana peraturan tersebut diamalkan, dan memberikan cadangan untuk pembaharuan. Untuk menunjukkan bagaimana peraturan semasa diamalkan, kertas ini telah melakukan analisis terhadap kontrak-kontrak rundingan langsung yang didedahkan dalam Laporan Ketua Audit Negara pada tahun 2014-2018.”
Kertas ini memberi hujah yang peraturan rundingan langsung semasa (Pekeliling P.K 7.15 & P.K 7.16) mempunyai langkah-langkah untuk memastikan kontrak rundingan langsung dilaksanakan dengan sedikit kebertanggungjawaban, mencapai nilai untuk wang, dan memupuk persaingan yang adil. Namun, peraturan tersebut tidak mempunyai langkah-langkah ketelusan yang mencukupi dan mengandungi langkah-langkah yang mungkin memberi impak negatif terhadap kebertanggungjawaban dan nilai untuk wang. Tambahan pula, analisis terhadap projek-projek rundingan langsung dalam Laporan Ketua Audit Negara pada tahun 2014-2018 menunjukkan peraturan-peraturan ini tidak dilaksanakan dengan baik. Kertas ini mengenalpasti pelbagai pelanggaran peraturan dalam proses kelulusan, kelayakan kontraktor, dan proses rundingan.
Kertas ini mencadangkan semakan terhadap dasar semasa dan penggunaan “rundingan berdaya saing” sebagai satu alternatif kepada model rundingan langsung semasa. Pembaharuan ini perlu disertakan bersama satu sistem kajian semula dalam perundangan perolehan yang akan datang. Tambahan pula, IDEAS menyeru kepada satu pengasingan yang jelas antara kuasa dan tanggungjawab birokrat dan ahli politik dalam amalan perolehan. Hal ini juga mengulangi seruan kami sebelum ini untuk mendedahkan maklumat mengenai rundingan langsung sebelum dan selepas proses perolehan.
Tambah Yeoh, “Rundingan langsung merupakan satu kaedah perolehan yang diperlukan untuk menangani keperluan penyampaian perkhidmatan yang dipercepatkan. Walaupun begitu, jurang yang terdapat dalam peraturan sedia ada telah menghasilkan kelompongan yang dapat dieksploitasi oleh individu-individu yang mempunyai kuasa untuk kepentingan mereka.
Cadangan-cadangan yang diutarakan oleh kertas ini dapat meminimumkan kelompongan tersebut dan mengukuhkan potensi kaedah perolehan ini supaya dapat menyampaikan nilai untuk wang para pembayar cukai.”
--- TAMAT ---
Laporan boleh dimuat turun di pautan ini (https://bit.ly/directnegotiation)
Kami akan membincangkan laporan ini di webinar kami bertajuk "Direct Negotiation: Should we abandon the practice?" pada 27 November 2020, jam 10:00 pagi. Untuk mendaftar sila klik pautan ini (https://us02web.zoom.us/webinar/register/WN_2QnRbvFFSwmCu3PaCm1NWw)
--- TAMAT ---
Laporan boleh dimuat turun di pautan ini (https://bit.ly/directnegotiation)
Kami akan membincangkan laporan ini di webinar kami bertajuk "Direct Negotiation: Should we abandon the practice?" pada 27 November 2020, jam 10:00 pagi. Untuk mendaftar sila klik pautan ini (https://us02web.zoom.us/webinar/register/WN_2QnRbvFFSwmCu3PaCm1NWw)
MEDIA STATEMENT
For Immediate Release
IDEAS: MoF must provide fiscal transparency following Budget 2021 amendments
30 November 2020: IDEAS welcomes the fact that Budget 2021 is being subject to scrutiny and amendment in line with the democratic process. Following the debate, a number of amendments to the budget have now been proposed. However, it is vital that any and all amendments, especially that are proposed by the Minister of Finance on last Thursday (26 November 2020), are fully transparent. Specifically, how new spending will be funded and what is the impact on debt and the deficit. Malaysia has gradually improved its budget transparency score but still needs to improve in many areas.
The committee-level debate is taking place without clarity over the final amount in the supply bill. IDEAS CEO Tricia Yeoh commented, “The Minister of Finance in his closing speech for the policy level debate on Thursday announced additional allocation for some items in the budget. Among them are allocations for eBelia, frontliners, as well as the fishermen. Based on the speech, the total additional allocation is more than RM100 million. While this additional allocation may be welcomed by the recipients, the Minister did not specify which budget line this allocation would come from. If additional allocation for eBelia is taken from the Minister of Youth and Sports’ allocation, the final amount allocated for this Ministry in the Supply Bill should be increased. If this allocation is taken from the additional RM17 billion COVID-19 fund, this should be clarified to the public.”
From whichever sources these additional funds come from, IDEAS calls for the Minister of Finance to provide information about which expenditures in the Supply Bill are affected by these additional allocations. “The information is needed because the additional allocation will affect the deficit level as well as the amount of debt needed to cover the shortfall. The current government’s commitment to be responsive to the rakyat’s needs should also include passing the budget with a certain level of transparency”, Tricia added.
Separately, IDEAS welcomes the Minister of Finance’s announcement that JASA (or J-KOM) funds will be reduced, but he did not say by how much. We also laud the efforts of some MPs to reduce the funding for JASA, including the suggestion to reallocate the excess funds to more urgent needs, such as to the Ministry of Health. Starting from yesterday (30 November 2020) until 15 December 2020, the Members of Dewan Rakyat are debating the budget at the committee level. In this period, the MPs can propose to reduce allocation for any expenditure. The standing orders, however, only allow Ministers to reallocate expenditures from one purpose to another. The Minister of Finance and government should therefore clarify how much the JASA allocation is being reduced by and where reallocations are being made. When the vote is taken for the Ministry of Communications and Multimedia budget, the total amount must therefore be announced.
Finally, it is hoped that the government takes fiscal transparency seriously, especially in its intention to table the Fiscal Responsibility Act in 2021. “I hope that the Ministry of Finance will work closely with external stakeholders, including think tanks like ours, in the process of formulating the details of the Fiscal Responsibility Act. Fiscal and budgetary transparency is imperative points to include in any legislation regarding fiscal responsibility”, Yeoh concluded.
--- END ---
For media enquiries - tricia@ideas.org.my
For Immediate Release
IDEAS: MoF must provide fiscal transparency following Budget 2021 amendments
30 November 2020: IDEAS welcomes the fact that Budget 2021 is being subject to scrutiny and amendment in line with the democratic process. Following the debate, a number of amendments to the budget have now been proposed. However, it is vital that any and all amendments, especially that are proposed by the Minister of Finance on last Thursday (26 November 2020), are fully transparent. Specifically, how new spending will be funded and what is the impact on debt and the deficit. Malaysia has gradually improved its budget transparency score but still needs to improve in many areas.
The committee-level debate is taking place without clarity over the final amount in the supply bill. IDEAS CEO Tricia Yeoh commented, “The Minister of Finance in his closing speech for the policy level debate on Thursday announced additional allocation for some items in the budget. Among them are allocations for eBelia, frontliners, as well as the fishermen. Based on the speech, the total additional allocation is more than RM100 million. While this additional allocation may be welcomed by the recipients, the Minister did not specify which budget line this allocation would come from. If additional allocation for eBelia is taken from the Minister of Youth and Sports’ allocation, the final amount allocated for this Ministry in the Supply Bill should be increased. If this allocation is taken from the additional RM17 billion COVID-19 fund, this should be clarified to the public.”
From whichever sources these additional funds come from, IDEAS calls for the Minister of Finance to provide information about which expenditures in the Supply Bill are affected by these additional allocations. “The information is needed because the additional allocation will affect the deficit level as well as the amount of debt needed to cover the shortfall. The current government’s commitment to be responsive to the rakyat’s needs should also include passing the budget with a certain level of transparency”, Tricia added.
Separately, IDEAS welcomes the Minister of Finance’s announcement that JASA (or J-KOM) funds will be reduced, but he did not say by how much. We also laud the efforts of some MPs to reduce the funding for JASA, including the suggestion to reallocate the excess funds to more urgent needs, such as to the Ministry of Health. Starting from yesterday (30 November 2020) until 15 December 2020, the Members of Dewan Rakyat are debating the budget at the committee level. In this period, the MPs can propose to reduce allocation for any expenditure. The standing orders, however, only allow Ministers to reallocate expenditures from one purpose to another. The Minister of Finance and government should therefore clarify how much the JASA allocation is being reduced by and where reallocations are being made. When the vote is taken for the Ministry of Communications and Multimedia budget, the total amount must therefore be announced.
Finally, it is hoped that the government takes fiscal transparency seriously, especially in its intention to table the Fiscal Responsibility Act in 2021. “I hope that the Ministry of Finance will work closely with external stakeholders, including think tanks like ours, in the process of formulating the details of the Fiscal Responsibility Act. Fiscal and budgetary transparency is imperative points to include in any legislation regarding fiscal responsibility”, Yeoh concluded.
--- END ---
For media enquiries - tricia@ideas.org.my
KENYATAAN MEDIA
Untuk Sebaran Segera
IDEAS: Kementerian Kewangan perlu memberikan ketelusan fiskal berikutan pindaan Belanjawan 2021
30 November 2020: IDEAS mengalu-alukan penelitian dan pindaan ke atas Belanjawan 2021. Ini selari dengan proses demokrasi. Beberapa pindaan terhadap belanjawan telah dicadangkan oleh ahli Dewan Rakyat. Namun, amat penting untuk setiap pindaan, terutama pindaan yang dicadangkan oleh Menteri Kewangan pada hari Khamis lepas (26 November 2020), dilakukan secara telus. Khususnya, bagaimanakah perbelanjaan baharu ini akan dibiayai dan apakah impak terhadap hutang dan juga defisit. Malaysia secara beransur-ansur telah menambah baik skor ketelusan belanjawannya, tetapi masih memerlukan penambahbaikan dalam banyak perkara.
Perbahasan peringkat jawatankuasa berlangsung tanpa kejelasan mengenai jumlah akhir dalam Rang Undang-undang Perbekalan. Ketua Pegawai Eksekutif IDEAS, Tricia Yeoh mengulas, “Menteri Kewangan dalam ucapan penggulungan bagi perbahasan peringkat dasar Khamis lepas (26 November 2020) mengumumkan tambahan peruntukan untuk beberapa perkara dalam belanjawan. Antaranya ialah peruntukan untuk e-belia, petugas barisan hadapan, serta nelayan. Berdasarkan ucapannya, jumlah peruntukan tambahan tersebut melebihi RM100 juta. Walaupun pertambahan ini dialu-alukan oleh penerima, Menteri tidak menyatakan dari mana peruntukan ini diambil. Jika peruntukan tambahan untuk e-belia diambil dari perbelanjaan Menteri Belia dan Sukan, jumlah akhir yang diperuntukkan kepada kementerian ini dalam Rang Undang-undang Perbekalan perlu ditambah. Andai peruntukan ini diambil dari dana tambahan COVID-19 sebanyak RM17 bilion, hal ini perlu dijelaskan kepada masyarakat awam.”
Tanpa mengambil kira dari mana sumber dana tambahan ini, IDEAS menyeru Menteri Kewangan untuk memberikan maklumat mengenai perbelanjaan manakah yang akan terkesan oleh peruntukan tambahan ini. “Maklumat ini diperlukan kerana peruntukan tambahan ini akan memberi kesan terhadap tahap defisit serta jumlah hutang yang diperlukan untuk menanggung kekurangan. Komitmen pihak kerajaan untuk menjadi responsif terhadap keperluan rakyat juga perlu merangkumi meluluskan belanjawan dengan telus”, tambah Tricia.
IDEAS pun mengalu-alukan pengumuman dari Kementerian Kewangan mengenai pengurangan peruntukan untuk JASA (J-KOM), tetapi beliau tidak menyatakan jumlah pengurangan. Kami juga mengalu-alukan cadangan beberapa ahli Parlimen untuk meminda peruntukan JASA, termasuk cadangan untuk menguntukkan semula peruntukan ini untuk perbelanjaan yang lebih penting, seperti perbelanjaan bagi Kementerian Kesihatan. Bermula semalam (30 November 2020) sehingga 15 Disember 2020, ahli-ahli Parlimen membahaskan belanjawan pada peringkat jawatankuasa. Dalam peringkat ini, ahli-ahli Parlimen boleh mengemukakan cadangan pengurangan terhadap perbelanjaan mengurus dan perbelanjaan pembangunan. Peraturan-peraturan Majlis Mesyuarat hanya membenarkan Menteri untuk menguntukkan semula satu peruntukan kepada peruntukan lain. Oleh itu, kami meminta pihak kerajaan untuk menjelaskan jumlah pengurangan ke atas peruntukan JASA dan kemanakan pengurangan ini akan disalurkan. Justeru itu, apabila undian ke atas peruntukan Kementerian Komunikasi dan Multimedia dibuat nanti, jumlah akhir peruntukan untuk JASA ini mestilah didedahkan.
Akhir sekali, kami berharap pihak kerajaan mengambil serius kepentingan ketelusan fiskal terutama matlamat kerajaan untuk membentangkan Akta Tanggungjawab Fiskal pada tahun 2021. “Saya berharap Kementerian Kewangan akan bekerja dengan erat bersama pemegang taruh luar, termasuk badan pemikir seperti kami, dalam proses merumuskan Akta Tanggungjawab Fiskal ini. Ketelusan fiskal dan belanjawan merupakan perkara yang mustahak untuk dimasukkan dalam mana mana perundangan berkaitan tanggungjawab fiskal”, kata Yeoh.
--- Tamat ---
Untuk sebarang pertanyaan media, hubungi tricia@ideas.org.my
Untuk Sebaran Segera
IDEAS: Kementerian Kewangan perlu memberikan ketelusan fiskal berikutan pindaan Belanjawan 2021
30 November 2020: IDEAS mengalu-alukan penelitian dan pindaan ke atas Belanjawan 2021. Ini selari dengan proses demokrasi. Beberapa pindaan terhadap belanjawan telah dicadangkan oleh ahli Dewan Rakyat. Namun, amat penting untuk setiap pindaan, terutama pindaan yang dicadangkan oleh Menteri Kewangan pada hari Khamis lepas (26 November 2020), dilakukan secara telus. Khususnya, bagaimanakah perbelanjaan baharu ini akan dibiayai dan apakah impak terhadap hutang dan juga defisit. Malaysia secara beransur-ansur telah menambah baik skor ketelusan belanjawannya, tetapi masih memerlukan penambahbaikan dalam banyak perkara.
Perbahasan peringkat jawatankuasa berlangsung tanpa kejelasan mengenai jumlah akhir dalam Rang Undang-undang Perbekalan. Ketua Pegawai Eksekutif IDEAS, Tricia Yeoh mengulas, “Menteri Kewangan dalam ucapan penggulungan bagi perbahasan peringkat dasar Khamis lepas (26 November 2020) mengumumkan tambahan peruntukan untuk beberapa perkara dalam belanjawan. Antaranya ialah peruntukan untuk e-belia, petugas barisan hadapan, serta nelayan. Berdasarkan ucapannya, jumlah peruntukan tambahan tersebut melebihi RM100 juta. Walaupun pertambahan ini dialu-alukan oleh penerima, Menteri tidak menyatakan dari mana peruntukan ini diambil. Jika peruntukan tambahan untuk e-belia diambil dari perbelanjaan Menteri Belia dan Sukan, jumlah akhir yang diperuntukkan kepada kementerian ini dalam Rang Undang-undang Perbekalan perlu ditambah. Andai peruntukan ini diambil dari dana tambahan COVID-19 sebanyak RM17 bilion, hal ini perlu dijelaskan kepada masyarakat awam.”
Tanpa mengambil kira dari mana sumber dana tambahan ini, IDEAS menyeru Menteri Kewangan untuk memberikan maklumat mengenai perbelanjaan manakah yang akan terkesan oleh peruntukan tambahan ini. “Maklumat ini diperlukan kerana peruntukan tambahan ini akan memberi kesan terhadap tahap defisit serta jumlah hutang yang diperlukan untuk menanggung kekurangan. Komitmen pihak kerajaan untuk menjadi responsif terhadap keperluan rakyat juga perlu merangkumi meluluskan belanjawan dengan telus”, tambah Tricia.
IDEAS pun mengalu-alukan pengumuman dari Kementerian Kewangan mengenai pengurangan peruntukan untuk JASA (J-KOM), tetapi beliau tidak menyatakan jumlah pengurangan. Kami juga mengalu-alukan cadangan beberapa ahli Parlimen untuk meminda peruntukan JASA, termasuk cadangan untuk menguntukkan semula peruntukan ini untuk perbelanjaan yang lebih penting, seperti perbelanjaan bagi Kementerian Kesihatan. Bermula semalam (30 November 2020) sehingga 15 Disember 2020, ahli-ahli Parlimen membahaskan belanjawan pada peringkat jawatankuasa. Dalam peringkat ini, ahli-ahli Parlimen boleh mengemukakan cadangan pengurangan terhadap perbelanjaan mengurus dan perbelanjaan pembangunan. Peraturan-peraturan Majlis Mesyuarat hanya membenarkan Menteri untuk menguntukkan semula satu peruntukan kepada peruntukan lain. Oleh itu, kami meminta pihak kerajaan untuk menjelaskan jumlah pengurangan ke atas peruntukan JASA dan kemanakan pengurangan ini akan disalurkan. Justeru itu, apabila undian ke atas peruntukan Kementerian Komunikasi dan Multimedia dibuat nanti, jumlah akhir peruntukan untuk JASA ini mestilah didedahkan.
Akhir sekali, kami berharap pihak kerajaan mengambil serius kepentingan ketelusan fiskal terutama matlamat kerajaan untuk membentangkan Akta Tanggungjawab Fiskal pada tahun 2021. “Saya berharap Kementerian Kewangan akan bekerja dengan erat bersama pemegang taruh luar, termasuk badan pemikir seperti kami, dalam proses merumuskan Akta Tanggungjawab Fiskal ini. Ketelusan fiskal dan belanjawan merupakan perkara yang mustahak untuk dimasukkan dalam mana mana perundangan berkaitan tanggungjawab fiskal”, kata Yeoh.
--- Tamat ---
Untuk sebarang pertanyaan media, hubungi tricia@ideas.org.my
Media Statement
For immediate release
IDEAS: Malaysia must prioritise governance reforms following Fitch’s downgraded rating
5 December 2020, Kuala Lumpur: IDEAS echoes Fitch’s concerns over governance and political uncertainty in Malaysia, following its downgrading of Malaysia’s rating to ‘BBB+’ from ‘A-‘ on 4 December 2020. We believe that the Malaysian government must take this very seriously and urgently address structural reforms that can improve governance standards, including through greater transparency, control of corruption, and open data standards. The downgrade means that it will become more costly for Malaysia to borrow, which in turn has a fiscal impact, and the government needs to communicate its plans to rationalise public spending and reform the tax systems in the post-pandemic economy.
IDEAS CEO Tricia Yeoh commented, “I appreciate that the government has responded to the COVID-19 pandemic with an expansionary budget and therefore fiscal consolidation of our public finances may not be able to be immediately addressed. Yes, providing aid and assistance to affected groups is of utmost importance at this time, but there is now a growing urgency to look past these stop-gap measures and place greater emphasis on finding new sources for growth.
However, the Prime Minister and his administration must realise that this is a wake-up call: governance actually matters. He needs to take steps now to address our deteriorating governance standards. I, therefore, welcome the Minister of Finance’s statement that Malaysia remains committed to good governance.”
Here are some immediate measures that can and should be taken by the government in addressing good governance:
1) Legislate a robust Government Procurement Act to create a rules-based procurement system.
2) Adopt international standards for mega-infrastructure public-private partnerships (PPPs) and provide open procurement data to the public.
3) Introduce oversight, regulation, monitoring and evaluation of our government-linked companies (GLCs).
4) Ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
5) Legislate the Political Funding Act to regulate how political funds are raised and spent both within parties and during campaigns, which forms the heart of corruption in Malaysia.
6) Adopt the International Open Data Charter that would improve the way our government provides open data by default to the public.
The Malaysian government securities are currently benefiting from surging net inflows and strong foreign demand. We should undertake bolder reforms on governance and structure of the economy while we still have the policy space to do so. Governance and structural reforms will present the Malaysian economy with new growth opportunities, especially following the signing of RCEP and the possibility of ratifying the CPTPP.
“Malaysia can no longer afford to cruise along, thinking that economic recovery will magically take place after the pandemic’s end, the timing of which is still unpredictable. Hard steps must be taken now, or we will seriously risk losing out to our regional neighbours, many of whom have over the last decade already implemented reform measures to improve their governance.
The institutional governance of a country’s economic environment is therefore imperative to the international investing community. I urge the government to take this opportunity to demonstrate strong leadership by making reform policies a priority and also a reality as we position ourselves for a potential rebound in 2021.
I look forward to seeing what the government will do to avoid any further negative downgrade in the immediate future”, concluded Yeoh.
--- END ---
For media enquiry, contact tricia@ideas.org.my
For immediate release
IDEAS: Malaysia must prioritise governance reforms following Fitch’s downgraded rating
5 December 2020, Kuala Lumpur: IDEAS echoes Fitch’s concerns over governance and political uncertainty in Malaysia, following its downgrading of Malaysia’s rating to ‘BBB+’ from ‘A-‘ on 4 December 2020. We believe that the Malaysian government must take this very seriously and urgently address structural reforms that can improve governance standards, including through greater transparency, control of corruption, and open data standards. The downgrade means that it will become more costly for Malaysia to borrow, which in turn has a fiscal impact, and the government needs to communicate its plans to rationalise public spending and reform the tax systems in the post-pandemic economy.
IDEAS CEO Tricia Yeoh commented, “I appreciate that the government has responded to the COVID-19 pandemic with an expansionary budget and therefore fiscal consolidation of our public finances may not be able to be immediately addressed. Yes, providing aid and assistance to affected groups is of utmost importance at this time, but there is now a growing urgency to look past these stop-gap measures and place greater emphasis on finding new sources for growth.
However, the Prime Minister and his administration must realise that this is a wake-up call: governance actually matters. He needs to take steps now to address our deteriorating governance standards. I, therefore, welcome the Minister of Finance’s statement that Malaysia remains committed to good governance.”
Here are some immediate measures that can and should be taken by the government in addressing good governance:
1) Legislate a robust Government Procurement Act to create a rules-based procurement system.
2) Adopt international standards for mega-infrastructure public-private partnerships (PPPs) and provide open procurement data to the public.
3) Introduce oversight, regulation, monitoring and evaluation of our government-linked companies (GLCs).
4) Ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
5) Legislate the Political Funding Act to regulate how political funds are raised and spent both within parties and during campaigns, which forms the heart of corruption in Malaysia.
6) Adopt the International Open Data Charter that would improve the way our government provides open data by default to the public.
The Malaysian government securities are currently benefiting from surging net inflows and strong foreign demand. We should undertake bolder reforms on governance and structure of the economy while we still have the policy space to do so. Governance and structural reforms will present the Malaysian economy with new growth opportunities, especially following the signing of RCEP and the possibility of ratifying the CPTPP.
“Malaysia can no longer afford to cruise along, thinking that economic recovery will magically take place after the pandemic’s end, the timing of which is still unpredictable. Hard steps must be taken now, or we will seriously risk losing out to our regional neighbours, many of whom have over the last decade already implemented reform measures to improve their governance.
The institutional governance of a country’s economic environment is therefore imperative to the international investing community. I urge the government to take this opportunity to demonstrate strong leadership by making reform policies a priority and also a reality as we position ourselves for a potential rebound in 2021.
I look forward to seeing what the government will do to avoid any further negative downgrade in the immediate future”, concluded Yeoh.
--- END ---
For media enquiry, contact tricia@ideas.org.my
Kenyataan Media
Untuk sebaran segera
IDEAS: Malaysia harus mengutamakan pembaharuan tadbir urus susulan penurunan penarafan oleh Fitch
5 Disember 2020, Kuala Lumpur: Institut Demokrasi dan Hal Ehwal Ekonomi (IDEAS) senada dengan Fitch dalam kerisauan terhadap ketidaktentuan tadbir urus dan politik di Malaysia, susulan penurunan penarafan Malaysia kepada ‘BBB+’ dari ‘A-’ pada 4 Disember 2020. Kami percaya kerajaan Malaysia harus mengambil serius perkara ini dan dengan segera melaksanakan pembaharuan struktural yang boleh menambah baik piawaian tadbir urus, termasuk melalui lebih ketelusan, kawalan terhadap rasuah, dan piawaian data terbuka. Penurunan penarafan ini bererti ia akan menjadi lebih mahal kepada Malaysia untuk membuat pinjaman wang, seterusnya akan memberi satu kesan fiskal, dan kerajaan perlu menyampaikan perancangan untuk merasionalisasi perbelanjaan awam serta pembaharuan sistem percukaian dalam ekonomi pasca wabak.
Ketua Pegawai Eksekutif IDEAS, Tricia Yeoh mengulas, “Saya amat menghargai tindak balas yang diambil kerajaan terhadap wabak COVID-19 dengan satu belanjawan pengembangan dan oleh itu, satu pengukuhan fiskal kewangan awam mungkin tidak dapat segera ditangani. Betul, menyediakan bantuan kepada golongan terjejas merupakan keutamaan terpenting pada masa ini, tetapi sekarang terdapat keperluan mendesak untuk melihat melangkaui langkah-langkah sementara ini dan memberikan penekanan kepada mencari sumber pertumbuhan baharu.
Namun, Perdana Menteri dan pentadbirannya harus sedar bahawa hal ini merupakan satu peristiwa yang memberikan pengajaran: tadbir urus merupakan sesuatu yang penting. Beliau kini perlu mengambil langkah untuk menangani piawaian tadbir urus kita yang semakin merosot. Justeru saya amat mengalu-alukan kenyataan Menteri Kewangan bahawa Malaysia kekal komited terhadap tadbir urus yang baik.”
Berikut merupakan beberapa tindakan segera yang boleh dan perlu diambil oleh kerajaan dalam menangani tadbir urus yang baik:
1.) Menggubal satu Akta Perolehan Kerajaan yang teguh untuk mencipta satu sistem perolehan berasaskan peraturan.
2.) Mengguna pakai piawaian antarabangsa untuk infrastruktur mega perkongsian awam-persendirian (PPP) serta menyediakan data perolehan terbuka kepada awam.
3.) Memperkenal pengawasan, pengawalan, pemantauan, dan penilaian terhadap syarikat-syarikat berkaitan kerajaan (GLC).
4.) Meratifikasi Perjanjian Perkongsian Komprehensif dan Progresif Trans-Pasifik (CPTPP).
5.) Menggubal Akta Pembiayaan Politik untuk mengawal selia pengumpulan serta perbelanjaan dana politik dalam parti dan ketika kempen, yang menjadi teras kepada rasuah di Malaysia.
5.) Mengguna pakai Piagam Data Terbuka Antarabangsa yang akan menambah baik cara kerajaan menyediakan data terbuka kepada awam seperti yang telah ditentukan.
Sekuriti kerajaan Malaysia kini sedang menerima manfaat dari lonjakan aliran masuk bersih dan permintaan asing yang kukuh. Kita perlu melakukan pembaharuan yang lebih berani terhadap tadbir urus serta struktur ekonomi sementara masih mempunyai ruang dasar untuk melakukan sedemikian. Pembaharuan tadbir urus dan struktural akan menghadirkan peluang pertumbuhan baharu kepada ekonomi Malaysia, terutamanya susulan penandatanganan RCEP dan kemungkinan ratifikasi CPTPP.
“Malaysia tidak lagi mampu sekadar menjadi penumpang, mengharapkan keajaiban pemulihan ekonomi akan berlaku selepas wabak ini berakhir, sedangkan ketikanya masih tidak dapat diramalkan. Langkah yang tegas harus diambil sekarang atau kita akan mengambil risiko tewas kepada jiran serantau, yang kebanyakannya sejak lebih sedekad yang lalu telah melaksanakan langkah-langkah pembaharuan untuk menambah baik tadbir urus mereka.
Tadbir urus institusi persekitaran kewangan sesebuah negara oleh itu merupakan sesuatu yang mustahak kepada komuniti pelabur antarabangsa. Saya menggesa kerajaan untuk mengambil peluang ini untuk menunjukkan kepimpinan yang kuat dengan menjadikan pembaharuan dasar satu keutamaan dan juga satu realiti ketika kita memposisikan diri untuk kebangkitan semula pada tahun 2021.
Untuk sebaran segera
IDEAS: Malaysia harus mengutamakan pembaharuan tadbir urus susulan penurunan penarafan oleh Fitch
5 Disember 2020, Kuala Lumpur: Institut Demokrasi dan Hal Ehwal Ekonomi (IDEAS) senada dengan Fitch dalam kerisauan terhadap ketidaktentuan tadbir urus dan politik di Malaysia, susulan penurunan penarafan Malaysia kepada ‘BBB+’ dari ‘A-’ pada 4 Disember 2020. Kami percaya kerajaan Malaysia harus mengambil serius perkara ini dan dengan segera melaksanakan pembaharuan struktural yang boleh menambah baik piawaian tadbir urus, termasuk melalui lebih ketelusan, kawalan terhadap rasuah, dan piawaian data terbuka. Penurunan penarafan ini bererti ia akan menjadi lebih mahal kepada Malaysia untuk membuat pinjaman wang, seterusnya akan memberi satu kesan fiskal, dan kerajaan perlu menyampaikan perancangan untuk merasionalisasi perbelanjaan awam serta pembaharuan sistem percukaian dalam ekonomi pasca wabak.
Ketua Pegawai Eksekutif IDEAS, Tricia Yeoh mengulas, “Saya amat menghargai tindak balas yang diambil kerajaan terhadap wabak COVID-19 dengan satu belanjawan pengembangan dan oleh itu, satu pengukuhan fiskal kewangan awam mungkin tidak dapat segera ditangani. Betul, menyediakan bantuan kepada golongan terjejas merupakan keutamaan terpenting pada masa ini, tetapi sekarang terdapat keperluan mendesak untuk melihat melangkaui langkah-langkah sementara ini dan memberikan penekanan kepada mencari sumber pertumbuhan baharu.
Namun, Perdana Menteri dan pentadbirannya harus sedar bahawa hal ini merupakan satu peristiwa yang memberikan pengajaran: tadbir urus merupakan sesuatu yang penting. Beliau kini perlu mengambil langkah untuk menangani piawaian tadbir urus kita yang semakin merosot. Justeru saya amat mengalu-alukan kenyataan Menteri Kewangan bahawa Malaysia kekal komited terhadap tadbir urus yang baik.”
Berikut merupakan beberapa tindakan segera yang boleh dan perlu diambil oleh kerajaan dalam menangani tadbir urus yang baik:
1.) Menggubal satu Akta Perolehan Kerajaan yang teguh untuk mencipta satu sistem perolehan berasaskan peraturan.
2.) Mengguna pakai piawaian antarabangsa untuk infrastruktur mega perkongsian awam-persendirian (PPP) serta menyediakan data perolehan terbuka kepada awam.
3.) Memperkenal pengawasan, pengawalan, pemantauan, dan penilaian terhadap syarikat-syarikat berkaitan kerajaan (GLC).
4.) Meratifikasi Perjanjian Perkongsian Komprehensif dan Progresif Trans-Pasifik (CPTPP).
5.) Menggubal Akta Pembiayaan Politik untuk mengawal selia pengumpulan serta perbelanjaan dana politik dalam parti dan ketika kempen, yang menjadi teras kepada rasuah di Malaysia.
5.) Mengguna pakai Piagam Data Terbuka Antarabangsa yang akan menambah baik cara kerajaan menyediakan data terbuka kepada awam seperti yang telah ditentukan.
Sekuriti kerajaan Malaysia kini sedang menerima manfaat dari lonjakan aliran masuk bersih dan permintaan asing yang kukuh. Kita perlu melakukan pembaharuan yang lebih berani terhadap tadbir urus serta struktur ekonomi sementara masih mempunyai ruang dasar untuk melakukan sedemikian. Pembaharuan tadbir urus dan struktural akan menghadirkan peluang pertumbuhan baharu kepada ekonomi Malaysia, terutamanya susulan penandatanganan RCEP dan kemungkinan ratifikasi CPTPP.
“Malaysia tidak lagi mampu sekadar menjadi penumpang, mengharapkan keajaiban pemulihan ekonomi akan berlaku selepas wabak ini berakhir, sedangkan ketikanya masih tidak dapat diramalkan. Langkah yang tegas harus diambil sekarang atau kita akan mengambil risiko tewas kepada jiran serantau, yang kebanyakannya sejak lebih sedekad yang lalu telah melaksanakan langkah-langkah pembaharuan untuk menambah baik tadbir urus mereka.
Tadbir urus institusi persekitaran kewangan sesebuah negara oleh itu merupakan sesuatu yang mustahak kepada komuniti pelabur antarabangsa. Saya menggesa kerajaan untuk mengambil peluang ini untuk menunjukkan kepimpinan yang kuat dengan menjadikan pembaharuan dasar satu keutamaan dan juga satu realiti ketika kita memposisikan diri untuk kebangkitan semula pada tahun 2021.