By Sherilyn Pang
THE economic growth of Selangor reported by the Department of Statistics Malaysia (DOSM) in August showed it exceeded the national gross domestic product (GDP) in 2019.
Compared to all the other states, Selangor’s GDP grew the fastest at 6.7 per cent, with the federal territory of Kuala Lumpur trailing from behind at 6 per cent.
This was due in part to the state’s substantial population size and its enterprising dynamics that continue to make it the economic powerhouse of the country.
In view of its stellar economic performance, the Belanjawan Selangor 2021 (2021 Selangor Budget) on Oct 30 is set to be an occasion that would stir major interest from Malaysians as Menteri Besar Dato’ Seri Amirudin Shari prepares to announce allocations for the nearly six million people living in the state.
Notwithstanding that, it is worth noting that Selangor has just emerged from a harrowing series of hurdles.
Not only has it got to cushion the economic impact of the US-China Trade War, but it also has to battle the deadly Covid-19 outbreak that has disrupted the country’s growth plans, with the unemployment rate the worst hit since the Financial Crisis of 2018.
Asian Strategy and Leadership Institute (Asli) director and economist Tan Sri Dato’ Dr Ramon V Navaratnam opines that Selangor should be able to sustain itself and lessen its dependence on the federal government as it is rich with natural resources and land.
“Selangor has the capacity to lead the whole country in a bigger way. It is time for Selangor to think out of the box and follow the 17 United Nations Sustainable Development Goals (UN SDGs). If the state follows every goal, there will be no poverty in Selangor,” he told Selangor Journal recently.
“What’s more, it is the richest state in the whole country but why do we still have pockets of poverty?”
Referring to poverty, Ramon believes that the Sultan of Selangor and the Menteri Besar’s dedication towards the state holds the key to its prosperity.
“The MB and the Sultan should step in to ensure that we will not tolerate corruption or wastage while those who are guilty should be exposed by the top,” Ramon said.
Unfortunately, Selangor is still dependent on the government to fund its development.
“Selangor is still dependent on the federal government when we shouldn’t have to because we can branch out on our own and be an ideal, exemplary state for the nation,” he said.
“I am proud of Selangor as the state’s citizen but I am disappointed that they are not doing better. However, it can certainly do better by following these steps.
“Encourage joint ventures with businesses; go for more agricultural activities to break the poverty cycle and create more employment; introduce more competition policies based on merit regardless of race; attract more FDIs; teach English in TVET, Science and Technology; and bring in more domestic investment via better incentives as well as having the state’s people to support the influential and caring Sultan, MB and Exco to persuade the federal government to raise the allocation for Selangor,” he listed down.
“We surely deserve more funds.”
According to Ramon, Selangor must lead the way by allowing more Malaysians to be given land to do farming.
“Selangor is not short of land. As long as farmers are citizens of Malaysia, provide them with more land to harvest so that everybody can work together as one Malaysian team, one Selangor team, regardless of race and religion. They can bring in the capital and labour. They just need the land. If racism and religious bigotry persist, the Sultan can act on these people if the police don’t. Make Selangor the ideal state for all other states to emulate,” Ramon emphasised.
“I wish Selangor would do better to lead the way for the whole nation. Policies should be reviewed. Be made more competitive and more meritocratic. Selangor citizens are collaborative, compassionate and more unifying. It can set an example for other states because of Selangor Boleh.”
First to rebound
Sunway University professor of economics Dr Yeah Kim Leng said in the last two years, Selangor’s economy has outperformed all the other states.
“Its GDP grew at 6.8 per cent in 2018 and 6.7 per cent in 2019, way above the national GDP growth of 4.8 per cent and 4.3 per cent respectively. Its growth performance is all the more impressive given it is also the largest state economy accounting for 24.2 per cent of the national GDP in 2019,” said Yeah.
The state’s performance may have contracted due to the Covid-19 pandemic in tandem with the country’s worst slump in 20 decades, but Yeah pointed out that Selangor will lead the nation’s economic recovery in the third and fourth quarter of this year as well as witness the V-shaped rebound in 2021 barring a resurgence of the coronavirus outbreak.
In echoing Ramon’s call for the state’s leadership to follow the UN SDGs, Yeah also urges Selangor to focus on the nation’s Shared Prosperity Vision 2030.
“These goals actually centre on three pillars — growth, inclusivity and sustainability.
“The inclusive growth pillar should focus on reducing income disparities and improving the livelihood and quality of life of the urban poor and disadvantaged groups such as single parents and the aged,” he stated.
For the Selangor Budget, Yeah hopes it will complement the national stimulus packages to propel Malaysia towards further recovery.
“It is hoped that the 2021 Selangor Budget can complement the national Covid-19 stimulus packages in sustaining the country’s recovery momentum especially in facing a weaker-than-expected global economy roiled by the pandemic and worsening US-China relations.”
A bigger budget, he said, would help Selangor offset any softness in consumer and business spending due to the resurgence threat of the virus that may linger longer than expected through 2021.
As such, Yeah welcomes a higher allocation for social and infrastructure spending to improve the quality of life of the B40 households, especially the urban poor as the state’s digital transformation efforts would be equally expected.
This article first appeared in the Selangor Journal monthly September edition, published on September 14, 2020.
