‘Shared Prosperity Vision’ to close economic gap

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Dr Mahathir (centre) fields questions during the press conference at Perdana Putra. The Prime Minister is flanked by Dr Wan Azizah and Azmin. — Bernama photo

PUTRAJAYA: The ‘Shared Prosperity Vision’ is an effort to close the gap between the rich and the poor, urban and rural as well as worker’s income, says Prime Minister Tun Dr Mahathir Mohamad.

Speaking at a media conference after chairing a special cabinet meeting on ‘Shared Prosperity Vision’ at Perdana Putra here yesterday, Dr Mahathir said that the discussion papers had been agreed in principle and would be submitted at the next cabinet meeting for verification as cabinet papers.

“For three hours, we discuss extensively and debated. This show how serious we are,” he spoke at the media conference, which was attended by Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail and other federal cabinet ministers.

Dr Mahathir said under the vision, the government would give more priority to results, compared to opportunities.

The Prime Minister said the cabinet ministers generally agreed that were disparity between states.

“Some states are very wealthy while some are poor. We have to reduce the gap between the rich and poor states.

“This means the focus would be given to poor states. If possible, the government would like to improve their income,” he said.

Asked which states were categorised as poor, Dr Mahathir listed Kelantan, Perlis and Kedah.

Dr Mahathir said there was also an income gap between urban and rural areas, with the urban areas being generally richer even though there was poverty there as well.

“A programme must be set up to raise the income of rural areas,” he said.

Dr Mahathir said there were significant gaps between the rich and the poor, where the poor are found to be extremely poor compared to the rich.

“The rich, for example, may be an executive of a company who can earn two to three million annually, compared to low-ranking workers who earn much less. The disparity is very great,” he said.

The Prime Minister said to improve the standard of lower-income workers, it would not be just through raising their salaries, but also raising the capability of workers to become more productive.

“Give them training so that they have greater capacity to be more efficient and carry out more sophisticated tasks,” he said.

Dr Mahathir said the technical and vocational education and training (TVET) had an important role in improving the capacity and skills of workers and as such, the government would give priority to
TVET.

“When we decide on a certain priority, the national budget will also focus on the priority,” he said, adding that if the government did not have sufficient funds, the budget for non-priority sectors would be reduced so as to raise the allocation for those with
priority.

Under the ‘Shared Prosperity Vision’, Dr Mahathir stressed that the government would only select those truly eligible to be given government contracts.

“Now, we do not allow sales of whatever contracts or licenses or AP (approved permit) from the government. No more selling to anybody.

“On the other hand, we will determine that the people to be awarded contracts or AP or licenses are really eligible.

“If he is not eligible, has no money, no skills, does not know the business, and if he is suddenly given a contract, he would not achieve the objective in the end.

“We now have the objective that in the end, we will achieve the target,” he said.

Meanwhile, Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said the spirit of ‘Shared Prosperity Vision’ would be imbued in Budget 2020, to be tabled in Parliament on Oct 11, with priority to areas like TVET and skills-training.

According to him, the ‘Shared Prosperity’ is a vision that will start from the 12th Malaysia Plan (12MP) and running up to 13MP – for 10 years.

Considerations relating to the ‘Shared Prosperity Vision’ to be inserted in Budget 2020 could be fine-tuned by the Finance Ministry, said Mohamed Azmin.

In May, Dr Mahathir introduced the new vision known as ‘Shared Prosperity Vision’ with the objective of providing reasonable standard of living for all Malaysians in the effort to develop the country.

The vision is an effort to enable Malaysia continue the sustainable development, in line with equitable economic distribution for each level of the value chain, class, race and geography to create a sense of harmony and stability among the people, by 2030. — Bernama