Urgent need for Malaysia to improve public service delivery, says Sta Maria

Asia-Pacific Economic Cooperation secretariat executive director Tan Sri Dr Rebecca Fatima Sta Maria said the COVID-19 pandemic has brought into sharp focus the need to manage, among others, data as the government tries to get help out to the citizens in dire need.

She said the pandemic also exposed widening gaps among the population and its growing inequalities.

"Despite huge investments that have gone into the education system, we fell short when children had to switch to online classes, revealing how the bottom 40 per cent (B40) children were clearly disadvantaged.

"On the digital front, it showed how much more needs to be done to bridge the digital divide," she said in a panel discussion at the launch of the World Bank's flagship report, 'Aiming High -- Navigating the Next Stage of Malaysia's Development', on Tuesday.

Sta Maria highlighted that the government also needed to review the past methods of issuing business licences as they were seen as adding to the confusion, delay and disappointment as they failed to yield the desired results of getting essential manufacturing back.

"This is no fault of the individuals manning the system, but it calls for the need to reform the system," she said.

Touching on the competition within the government-linked companies (GLC) sector, she commented that there is a wide variety of GLCs with some primarily playing a commercial role while others have an explicit development mandate.

"We need to be clear of their objectives, their role in societal and public value creation, and what differentiates them from their counterparts in the private sector.

"Ultimately, what matters is transparency, integrity and a merit-based system that is equitable," Sta Maria said, adding that any reduction in the role of GLCs needed to be carefully calibrated.

She said as demonstrated during the pandemic, GLCs were mobilised as part of the government 'ecosystem' to support vulnerable groups during the Movement Control Order, as well as supplementing the government's efforts to provide welfare and social protection.

"However, over time, this vital social security role should be played directly by the government and effective welfare providing institutions, deploying fiscal resources derived from a broad-based, progressive tax system.

"Thus, GLCs can focus on supporting structural reform in those sectors where they play a key role, and gradually exit from those sectors where their presence is not clearly justified.

"This should be the definition of GLC 'graduation' for the next phase of Malaysia's economic development," she said.

In moving the country to the next level, she pointed out the need for a deep reflection of its current position.

"For me, it is about going back to basics. Focus on structural reform and governance.

"The public sector cannot do this alone as it must work with the business sector and civil society."

Sta Maria said effective policy implementation also needed a holistic government approach as it is no longer a step-by-step approach but a concentrated, synchronised approach.

"We also need to build trust in our institutions, to be independent and operating in the interest of the country. Governance and integrity must take centre stage.

"Understand the needs of the people, implement sustainable growth and no high-handed policy implementation," she said, adding that the system should be fair and equitable and must go beyond rhetoric.

She highlighted that Malaysia needed to enhance its competitiveness through regional and international community engagement with strong participation in the process of rule-making and not end up being subjected to them.

Malaysia is an open economy with a relatively small domestic market but it is well connected to the regional and global value chains, she added.

Hence, the country needed to demonstrate its readiness to take on international commitments and stand tall on the international stage, she said.

"For example, we need to look at ratifying the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

"By default, keeping still is the same as moving backward on the 'openness' of Malaysia's economy," she said.