Jumaat, Julai 06, 2012


Errors forced ETP impact revision, says Pemandu

Pemandu said the relative novelty of the GNI concept led to errors in its initial application. — File pic

KUALA LUMPUR, July 6 — The original gross national income (GNI) projections of Economic Transformation Programme (ETP) were slashed due to erroneous assumptions made during the initial estimates, said Pemandu today.

This comes after the ETP Annual Report was criticised by opposition-linked think tank Research for Social Advancement (Refsa) for not providing sufficiently detailed explanations for the large reductions in GNI impact and job creation of ETP projects.

Refsa said in a statement yesterday that, in the annual report, RM107.7 billion of gross national income (GNI) and 75,000 jobs equivalent to 45 per cent and 20 per cent of the respective original forecasts were “written off”, which they said raised questions about the level of due diligence exercised during the original forecasts.

Today, the government’s performance management unit said that the revision of the investment and job creation numbers is primarily due to changes in business plans over the next five years as well as shifts in the trade environment.

It also said the GNI forecasts were affected by mistakes such as unrealistic growth rates, the conflation of GDP with GNI, and the use of revenue to denote GNI.

“Being a relatively new concept, most corporations struggled with it,” said Pemandu, referring to the fact that the GNI forecasts are formulated together with input from companies involved in the ETP’s entry point projects (EPPs).

Pemandu said that GNI is defined simply as income of Malaysians, and it is the nation’s net GDP after corporate and personal repatriations, giving a better measure of actual income.

It said that during the original forecasts, errors included using revenue as GNI without stripping out cost, inaccurate projections due to unrealistic growth rates and assuming GDP equated to GNI without taking into account that some corporations such as subsidiaries of multi-nationals or companies in joint ventures with foreign companies, repatriate a substantial amount of their profits.

“Similarly, in calculating job creation numbers, there have been exceptions and revisions,” said Pemandu.

“For example, while we focus on new job creation, several projects involve the expansion of existing plants or production lines and the existing workforce was not discounted. This has since been corrected.”

It added that in order to avoid “spurious conjecture”, it wanted to categorically state that the investment value of the MRT has not changed and once it is fully awarded the actual cost will then be announced.

Pemandu said that the decision to release the amended figures was voluntary and where exceptions are discovered, the data is amended and made public.

It also stressed that the ETP is a living document that undergoes changes to fit changing circumstances and that the NKEA (National Key Economic Area) teams and their counterparts in various ministries and agencies strive to be as dynamic as possible.

“In some cases further refinement has resulted in greater GNI projection,” said Pemandu.

“As an example, under the Healthcare NKEA a lab was run for the Medical Devices Business Opportunity which was then converted into seven new EPPs. Their combined GNI was appreciably higher than that of the original Business Opportunity.”

The ETP is an initiative by the Najib administration to lift the country to high income status by 2020 partly by increasing GNI through new EPPs.

By Lee Wei Lian


15 ulasan:

  1. Hope that the corporations will go through with the new concepts well.

  2. harap semuanuya seperti yang dirancang.

  3. Harap...harap...harap...Memang itu yang kita harapkan..Perancangan sebelum ini sememangnya perlulah dipastikan berjaya sepenuhnya.

  4. Pelaksanaan ETP mungkin perlu diteliti semula dan sebarang kelemahan dikenalpasti untuk diperbaiki.

    1. ya.. apa2 kelemahan perlu diperbaiki.

  5. The 4 per cent increase in cost of living since 1993, as seen in the compound annual growth rate (CAGR), has prompted the government to continue increasing new products through the 1Malaysia label to ease the burden of the people.

  6. Performance Management and Delivery Unit (Pemandu) special director Datuk Aziyah Bahauddin said products introduced under 1Malaysia to date, has continued to receive good response and the facility would be expanded.

  7. As an example, the number of the 1Malaysia People's Store is now approaching its targeted 85 stores by December. There are 48 stores operating with 19 new stores opening in July, as mentioned in a briefing on the GTP Roadmap 2.0.

  8. More than 5,000 people attended the open day where members of the public could raise their views on the effectiveness of the government's transformation plan introduced by Prime Minister Datuk Seri Najib Tun Razak's administration.

  9. He said even though goods at KRIM were sold 40 per cent cheaper than regular prices, there was no compromise on quality of the products.

  10. On 1Malaysia Menu, he said even though there were differences in prices of goods and food between the Peninsula, Sabah and Sarawak, the actual cost was due to transportation.

  11. Aziyah said shops and restaurants involved in the 1Malaysia People's Menu were becoming more popular and by year's end, there would be more than 3,000 1Malaysia shops compared with 2,400 in operation currently.

  12. On the 1Malaysia Clinic, she said 4.6 million people received treatment at the clinics which imposed just a RM1 charge since it was launched by Prime Minister Datuk Seri Najib Tun Razak, two years ago.

  13. She said apart from the initiatives, the government had also helped relieve the people's cost of living through the 1Malaysia People's Aid (BR1M), 1Malaysia People's Welfare (Karisma), RM100 school assistance and 1Malaysia Aid Voucher for book purchase to 1.3 million university students, costing the government RM553 million.