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KUALA LUMPUR: A leading economist is calling for a more strategic alignment between Malaysia's annual budgets and the nation's long-term development blueprints, the Malaysia Plans. Former Economic Action Council executive director, Noor Azlan Ghazali, argues that this synchronisation is crucial for ensuring effective implementation and maximising the impact of government initiatives.

Speaking to The Star, Azlan highlighted a recurring disconnect between budgetary allocations and the overarching goals outlined in the Malaysia Plans. These five-year plans – currently the 12th Malaysia Plan (12MP) – serve as the nation's roadmap for economic and social progress, setting targets and strategies across various sectors including infrastructure, education, healthcare, and technology. However, he suggests that annual budgets often lack a clear and consistent link to these broader objectives, potentially leading to fragmented efforts and diluted impact.

“The Malaysia Plans are meticulously crafted documents that detail our national aspirations and the pathways to achieve them. Yet, year after year, we see budgets that don’t fully reflect the priorities and strategies laid out in these plans,” Azlan stated. “This misalignment can result in resources being allocated inefficiently, projects being delayed, and ultimately, hindering our progress towards achieving our national goals.”

Why Alignment Matters

The importance of budget alignment extends beyond mere efficiency. Azlan explains that it fosters accountability and allows for a more holistic assessment of policy effectiveness. When budgets are directly tied to the Malaysia Plans, it becomes easier to track progress, identify areas needing adjustment, and ensure that public funds are being used to their full potential.

“It’s about creating a system where every ringgit spent contributes directly to the realisation of our national development objectives,” he elaborated. “This requires a more integrated approach, where budget planning is not a separate exercise but an integral part of the Malaysia Plan implementation process.”

Recommendations for Improvement

Azlan suggests several steps that can be taken to strengthen the alignment between budgets and the Malaysia Plans. These include:

• Enhanced Collaboration: Increased collaboration between the Ministry of Finance and the relevant ministries responsible for implementing the Malaysia Plans.
• Prioritisation Framework: Developing a clear prioritisation framework that explicitly links budget allocations to specific targets and indicators within the Malaysia Plans.
• Regular Reviews: Conducting regular reviews of budget performance against Malaysia Plan targets, with mechanisms for corrective action.
• Transparency and Communication: Improving transparency and communication regarding budget decisions and their alignment with the Malaysia Plans.

By embracing these recommendations, Malaysia can unlock the full potential of its development plans and ensure a more sustainable and prosperous future for all Malaysians. The alignment of budgets isn’t just a matter of good governance; it’s an investment in the nation’s long-term well-being.

The current 12MP focuses on strengthening economic resilience, promoting social inclusion, and advancing environmental sustainability. Achieving these ambitious goals requires a concerted effort and, crucially, a budget that reflects these priorities.