Streamlining and restructuring toward greater accountability

User-friendly, efficient services and the development of human capital are key to Malaysia’s rejuvenation

Prime Minister Badawi has been active in his first year of office outlining his strategies for the country and implementing some crucial first steps. While continuing with many of his predecessor’s successful economic policies, such as boosting private sector activity, Prime Minister Badawi has also worked to place his own personal stamp on the country’s development, cutting government expenditure, instigating new anti-corruption policies and working to improve government delivery of services. In the past year, the Prime Minister has unveiled his National Integrity Plan and created the National Integrity Institute, as well as the Anti-Corruption Agency. He has also formed the Royal Commission on the Police Force and has pushed to cut down on red tape in government services, while encouraging government agencies to make their services more efficient and user-friendly.

Government-linked companies (GLCs) have not escaped his reforms either and the Prime Minister has worked to put them on the path to greater accountability. Malaysia has some 40 GLCs, whoch account for 5% of the companies listed on Bursa Malaysia and 34% of its total market capitalization. Giants such as Telekom Malaysia, Tenaga, and Petronas Gas are GLCs that have spent much of the past year streamlining their business activities and working to boost production, while tightening their governance systems. Simultaneously, the government eliminated restrictions on foreign ownership of the companies.

Prime Minister Badawi has also turned the country’s focus towards its rural poor and new initiatives are in place to rejuvenate Malaysia’s agricultural sector. In line with the government’s interest in creating a new biotechnology industry, President Badawi has targeted the nation’s agricultural sector for increased investment. He comments, “We are now looking at agriculture as a source of new wealth. With the introduction of agro-based industries, we have the possibility to accelerate rural development without hindering urban industrial growth. The potential of agriculture is great for areas such as biotechnology and pharmaceutical activities, since Malaysia has one of the world’s richest bio-diversities.”

Finally, the Prime Minister has placed key importance on education as part of his plan to build a Malaysia of excellence, glory and distinction. Consequently, the government has plans to promote higher education in advanced technology, the sciences, and ICT. He states, “As Malaysia has to find a new competitive edge, it has to go for higher technology and undertake value-added activities, and we need to develop our human capital in order to move the country forward. We need more knowledge workers – more technicians and more professionals, so that is our emphasis.”