Narrowing the Economic Gap between Sabah, Sarawak, and Peninsular Malaysia
PETALING JAYA: An analyst has called for a new economic policy to be drawn up specially for Bumiputeras of Sabah and Sarawak to narrow the economic gap between the two states and Peninsular Malaysia.
One-Size-Fits-All Policies Ineffective
Madeline Berma, a fellow at the Academy of Sciences Malaysia, said that one-size-fits-all policies drawn up for Bumiputeras in both Peninsular and East Malaysia have failed to close the economic gap between the two. She stated that policies and programmes that were drawn up by Putrajaya in the past had limited input from Sabah and Sarawak, which has had a detrimental effect on the economy of both states.
Diverse Bumiputera Communities
Madeline emphasized that the Bumiputera communities in these states are diverse and face different socio-economic realities. She noted that since the 1970s, Malaysia has implemented various development policies, including the New Economic Policy, the National Development Policy, and the National Vision 2020 Policy, which are over and above the five-year Malaysia Plans.
Economic Gaps Widening
Madeline said that despite the success of these initiatives in reducing poverty and narrowing inter-ethnic inequalities, the gap between rural and urban areas, as well as between Peninsular Malaysia and Sabah and Sarawak, is widening. She stated that the current policies are no longer sufficient to address these new economic challenges.
New Economic Policy Needed
Madeline was commenting on observations made by World Bank senior economist Ririn Salwa Purnamasari that the economic security of the Bumiputeras has grown rapidly over the past two decades, although this progress has not been felt equally in East Malaysia. Ririn said that nearly 30% of Bumiputeras were now deemed economically secure, up from 5% in the early 2000s.
Special Financial Allocation
Madeline emphasized the need for the special financial allocation agreed upon under the Malaysia Agreement 1963 (MA63) to be consistently implemented or revised over the years. She added that Sabahans and Sarawakians have been marginalized through underrepresentation in the civil service, government-linked companies (GLCs), and scholarship programmes.
Conclusion
To address the economic gap between Sabah, Sarawak, and Peninsular Malaysia, a new economic policy specifically tailored for Bumiputeras of Sabah and Sarawak is needed. Decentralization of power to empower Sabah and Sarawak, as well as increased development allocations for education, healthcare, connectivity, and infrastructure to both states, are crucial to ensure progress in the two Borneo states.
Frequently Asked Questions
Q: How long will it take to close the income disparity between Peninsular and East Malaysia?
A: According to Firdausi Suffian, CEO of Invest Sabah, it may take up to 10 years to close the gap.
Q: What are the special incentives for Sabah and Sarawak in Budget 2025?
A: The special incentives include increased allocations and a higher minimum wage of RM1,700.
Q: What is the current economic security of Bumiputeras?
A: According to Ririn Salwa Purnamasari, nearly 30% of Bumiputeras are now deemed economically secure, up from 5% in the early 2000s.