Harmonizing the Tenth Malaysia Plan Priorities with the New Economic Model and the Green World Order

Abstract

The New Economic Model (NEM) is a need-based concept intended to integrate innovative ideas in chartering the path of socio-economic development of Malaysia. NEM is timely for building resilience into the economic systems through the participation of all, and for the benefit of all sections of the society. In a high income society, there will have to be value for money and money for value, reduction in subsidies, efficient fiscal management to reduce unnecessary expenditure, management of value-added and market-driven products and services, revamping of the education system, reviewing of R&D priorities, enhancing staff efficiency, less discussion for more action, less paper work for more output, and realistic targets for delivery. The sustainability dimension of NEM should envisage sustainable management of natural resources. This is achievable by aligning our activities with the new concept of ‘Green World Order’ which expands the existing peace and stability mottos of the World Order to include environment and sustainability. Under this concept there is a need for making changes in our activities. For example, short-term economic gains at the expense of long-term benefits that produce footprints of irreversible damage have to be addressed. Our development planning requires resetting in the light of environmental limitations to achieve the goals of NEM. With the valuation of the ecosystem services becoming increasingly important, we should pursue this matter aggressively to seek best deals for the natural resources we are blessed with. We can claim a substantial amount of international climate change mitigation funds because some of our resources (forests, mangroves and coral reefs) are carbon sinks which international agencies are seeking for investment. This not only generates resources for conservation but also brings dividends to the custodians of the carbon sinks. With an effective action plan, Malaysia can take advantage of the growing carbon market and green economy. The main elements of the proposed action plan are discussed in this paper.

 

Keywords: Development plan, green perspectives, economic model.