East Asia must now overcome its geo-political challenges


March 20, 2017

East Asia must now overcome its geo-political challenges

by Jean-Pierre Lehmann

http://www.eastasiaforum.org/2017/03/01/in-search-of-an-east-asian-geopolitical-miracle/

East Asia has amazed the world with its economic miracles. But the region must now overcome its geopolitical challenges.

Image result for The United States in East Asia missile defence system for Korea

 In the wake of World War II, Japan was widely assumed to be ‘finished’, South Korea was a basket case of underdevelopment and China was chaotic and poor — indeed the terms ‘Chinese’ and ‘poor’ were held to be synonymous. Taiwan was hardly worth consideration economically notwithstanding its importance geo-politically. When I first visited Taipei half a century ago its main economic activity seemed to be as a base for US soldiers on rest and recreation from the Vietnam War. As to Southeast Asia, it was mired in poverty, instability and conflict.

Reflecting the perception of backwardness accompanied by a degree of condescending hopelessness, the Swedish Nobel economics laureate Gunnar Myrdal published in 1968 a three-volume magnus opus entitled ‘Asian Drama: an Inquiry Into the Poverty of Nations’. In 1993, 25 years later, the World Bank published its report entitled ‘The East Asian Miracle’.

Apart from confirming the fact that, yes, economists believe in miracles, the term has been quite widely used in describing economic developments in East Asia.

The first use of the term ‘economic miracle’ (to my knowledge) was applied to Japan in the 1960s. Contrary to expectations, the phoenix did rise from the ashes: in 1964 Tokyo held the Olympic Games, in 1965 it joined the OECD, in 1967 it surpassed West Germany in GDP, and from then on went about conquering international markets.

Following Japan’s rise there were the four ‘tigers’ — Taiwan, Hong Kong, Singapore and South Korea — which rank among the few economies worldwide that succeeded in rising from third world status and overcoming the middle income trap. Over the course of the late 1970s and 1980s, Southeast Asia transformed from a battlefield to a marketplace with the notably high growth rates of Thailand, Malaysia, Vietnam and Indonesia. And then came the most awesome miracle of all — China.

These East Asian economic miracles had significant positive social consequences: tremendous reduction of poverty, rise of a robust urban middle class, increased life expectancy, improvements in education, cultural achievements (for example in music) and increased leisure activities such as foreign travel.

There are, however, a number of egregious qualifications to this.While the region’s economic edifice remains impressive, its institutional, historical and geopolitical foundations are alarmingly weak. The contrast between the post-war settlement in Europe and the post-war settlement in East Asia illustrates the East Asian situation.

One begins with the starkest contrast of all in post-war Germany’s attitudes towards its neighbours and those of Japan. One cannot imagine a senior German politician paying respects to a memorial dedicated to former Nazi leaders, as Japanese political leaders repeatedly do in respect to war criminals at the Yasukuni Shrine — most recently the Minister of Defence Tomomi Inada. One cannot imagine the mayor of Berlin publicly denying the existence of the Dachau concentration camp, as the former long-serving governor of Tokyo, Shintaro Ishihara, publicly and repeatedly denied the occurrence of the Nanjing massacre. One cannot imagine a German chain hotel proprietor installing in every room a book praising Germany’s past military prowess as Toshio Motoya has done in his chain of APA hotels with a book he authored praising Japan’s past imperialist militarism.

Whereas Germany has been a major source of peace, reconciliation and stability in Europe, Japan, through its hubristically un-contrite behaviour is a source of friction, suspicion and instability in East Asia.

This is especially critical in a region that is the world’s most geopolitically explosive. A number of situations in East Asian could foreseeably degenerate into World War III. Offensive military action in the Korean Peninsula, US intervention in the conflict between Japan and China over the Senkaku/Diaoyu islands in the East China Sea or Secretary of State Rex Tillerson’s threatened blockade on the South China Sea could all be triggers.These are the biggest flashpoints in the region but there are others.

Image result for The United States in East Asia missile defence system for Korea

Every East Asian state has tense relations with one or more of its neighbours. As ASEAN celebrates its 50th anniversary this year it can be commended for the significant achievements it has made in neighbourly confidence-building. Yet even the most ardent ASEAN fan would admit there are fragilities.

Since the end of the Vietnam War, the impact of the United States in East Asia has been on balance benign. This is partly due to the economic dynamism of the region and its integration with global markets and especially the US market. It is also because the United States has been militarily bogged down in the Middle East following its interventionism and thus limited in its ability to do harm in East Asia.

Not just China but the whole region can be construed as the proverbial ‘china shop’ into which the US presidential election has unleashed a bull. Great delicacy and diplomatic sophistication is required. Following East Asia’s economic miracles, what is urgently required in the Trumpian era is a geopolitical miracle.

Jean-Pierre Lehmann is Emeritus Professor of International Political Economy at IMD, Switzerland, founder of the Evian Group, and Visiting Professor at Hong Kong University. You can follow him on Twitter at @JP_Lehmann.

J

Looking Back on Vietnam before the 1968 Tet Offensive


March 17, 2017

Looking Back on Vietnam before the 1968 Tet Offensive: America’s Defeat or Nixon’s Peace with Honor

 

Hopefully, this will remind President Donald Trump and his associates in The White House to deal with Asia with care.  We in Asia will not allow ourselves to be your pawns again. It is easy but expensive to make war.

Learn not only from Vietnam but also from Afghanistan, Somalia, Iraq, Libya and Syria. America, you are not invincible. So give diplomacy a chance and allocate more money to Foggy Bottom (The State Department) and control the military-industrial complex and The Pentagon. –Din Merican.

 

Saudi King Salman’s Visit to Indonesia: Bound by Ties of Islam


March 16, 2017

Image result for asia-pacific bulletinNumber 375 | March 16, 2017

ANALYSIS

Saudi King Salman’s Visit to Indonesia: Bound by Ties of Islam

 By Endy Bayuni

When he came to Indonesia last week, King Salman bin Abdulaziz Al Saud was not just another head of government passing through on an Asian tour. At least not by the way Indonesia greeted him. He received as close to a royal welcome as possible for a republic to provide. Perhaps deservedly so. King Salman is special because he is the custodian of the two Islamic holy cities, Mecca and Medina, while Indonesia is the country with the largest Muslim population in the world. The king is the first Saudi monarch to visit Indonesia in 47 years, and local media celebrated the significance of the visit. The 1,500-member royal delegation arrived in eight wide-bodied jets with cargo that included a few limousines. The king and his entourage spent a nine-day holiday in Bali – Indonesia’s most famous tourist island.

While the visit was historic, it raises the question: why now? If it has taken this long for a Saudi leader to visit Indonesia, what is the true state of relations between te two countries?

Image result for King Salman with Jokowi

In Asian culture, regular face-to-face encounters are essential in nurturing relations. Islam similarly has silaturrahim, the tradition of visiting friends and relatives on a regular basis. This is true in everyday life, and should also be true in diplomacy. Indonesian presidents, Suharto, Abdurrahman Wahid, Megawati Soekarnoputri, Susilo Bambang Yudhoyono, and Joko Widodo all visited Riyadh, symbolizing the importance they attached to Saudi ties.  The visits by Indonesia’s leaders were as much addressed to the Saudi hosts as to the Indonesian public who judge their leaders by their displays of religiosity. Religion is indeed the one thing that binds Indonesia and Saudi Arabia more than other factors like economics and politics. To suggest that the relationship lacks warmth because of the long absence of a Saudi king’s visit is to deny the power of Islam in bringing two nations together.

Trade and investment between the two countries have remained low in comparison with the economic ties Saudi Arabia has forged with Indonesia’s neighbor Malaysia and many non-Muslim countries. In Jakarta, King Salman witnessed the signing of several economic agreements, including a pledge of $1 billion from the Saudi Fund contribution to finance development projects. There were deals worth $2.4 billion signed separately by private business sectors. Prior to the visit, Indonesian officials had raised the prospect of multibillion dollar deals. After the king’s departure, they decided to include the $6 billon oil refinery project signed in December to the king’s overall economic package. Even that still falls short of the $25 billion they had touted ahead of the visit.

While the two countries have a growing economic relationship, the pace remains slow. Indonesia has never been a major beneficiary of Saudi’s petro-dollars. Any hope that the visit will change economic relations has to be tempered by the fact that Saudi Arabia is undergoing an economic recession and is itself undertaking a National Transformation Program making the economy less dependent upon oil.

There is probably more money flowing in the other direction. Indonesia sends the largest contingent of any country to the annual haj pilgrimage in Mecca/Medina. With rising economic prosperity, many Indonesians choose Saudi Arabia as their first overseas trip, to perform the umrah, the off-season pilgrimage. Riyadh is spending billions of dollars renovating and expanding the capacity of Mecca and Medina as part of its post-oil Saudi plan. When tourism replaces oil as a chief source of revenue, Indonesia will be the main target because of the sheer size of its Muslim population.

It is not exactly a two-way road when it comes to tourism. King Salman’s visit to Bali may be a good promotion for Indonesia, but the Middle East has never been a big market, and only a few places in Indonesia cater to the specific needs of Arab tourists. Instead, they go after the bigger markets like Australia, Europe, the United States, and Asia, including now China.

Indonesia also contributes a significant number of workers to Saudi Arabia, particularly domestic helpers. When Indonesia halted the flow of young women to work in Saudi houses following reports of abuse, Riyadh intervened, pleading with Jakarta to resume the flow of these workers.

Bali, a predominantly Hindu island, made the point of not covering up the nude statutes during King Salman’s visit. “Take Bali as it is” was the message when the island welcomed the Saudi royals. The Saudis could have gone to Lombok, the island next door, which is developing its sharia-tourism to attract Muslim tourists. Nevertheless the king chose Bali, even extending his stay by three days.

Indonesia and Saudi Arabia have some common but limited strategic interests. Although predominantly Sunni, Indonesia has stayed away from the rivalry between Sunni-Saudi Arabia and Shiite-Iran by cultivating relations with both countries. The week of King Salman’s visit, Indonesia announced billions of dollars of new oil deals with Iran. Indonesia has tried to mediate between Saudi Arabia and Iran, an effort that did not go very far. But the gesture is important diplomatically to show Jakarta’s non-aligned status in this rivalry that is almost as old as Islam itself.

Religion is the one big factor binding the two nations, but even in religion they do not always see eye to eye. Indonesia has not been spared from the global struggle within Islam between more traditional, strict interpretations of the religion and the moderate and tolerant brand that has evolved in Southeast Asia. The battle line has been drawn between Wahabism, the conservative ideology propagated and financed by the Saudi Kingdom, and Nusantara Islam, the name Indonesian Muslim scholars coined to describe the Islam widely practiced in nusantara (the archipelago) that incorporates local cultures and wisdoms.

King Salman also announced the establishment of Arab language centers in three Indonesian cities in addition to the one in Jakarta, which is also known as the center for the propagation of Wahabism. The Indonesian government raised no objection to the plan, but President Widodo organized a meeting between King Salman and leaders of various religions to show that in spite of being a majority-Muslim nation, Indonesia is progressive when it comes to interfaith relations.

The language used by the two countries’ leaders reflects an ideological gap. While King Salman in his speeches stresses the need for unity among Muslims to face their common challenges, Indonesian leaders put the emphasis on more tolerance and moderation. Islam may bind the two nations, but each seems to have its own interpretation.

About the Author

Endy Bayuni is editor-in-chief at The Jakarta Post. He can be reached at EndyBayuni@gmail.com
The East-West Center promotes better relations and understanding among the people and nations of the United States, Asia, and the Pacific through cooperative study, research, and dialogue.

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Malaysia: We’re not pro- or anti-government, says Chief Justice


March 14, 2017

Malaysia: We’re not pro- or anti-government, says Chief Justice

 Ok as long as the Judiciary is really independent, not Pro-Najib Razak like our Attorney-General
Chief Justice Arifin Zakaria does not think that today’s judicial colloquium on the sharing of good practices on international human rights law, organised by the Asean Intergovernmental Commission on Human Rights (AICHR), is part of an effort against the government.

 

Justice Arifin said the event – which began today and ends on Wednesday – is to provide a platform for dialogues among the judiciary, AICHR and the civil society.

Stressing that it is for the good of the people of Asean, he said the commission would like to develop jurisprudence, so that a common jurisprudence on what is meant by rights can be determined.

“This is indeed the first time we are having this kind of dialogue.It doesn’t mean we are against the government or are pro-government. The Judiciary, as I always mention, will always remain independent, not only of government, but also of other bodies, civil societies too.We have to be independent. Integrity has to be maintained at all time,” Justice Arifin said at a press conference during the event today.

However, he explained, this did not mean that the Judiciary was in favour of human rights to the extent that everything in relation to human rights would be upheld.

“We have to go and consider the law and the principle of human rights. Most importantly, it’s our own law. Whatever is ratified by the government, if it is not implemented in Malaysia, through our own Act in Parliament, (then) of course we can use this convention and declarations on human rights as an aid to the interpretation of our laws,” he said.

Meanwhile, Malaysia’s representative to AICHR, human rights lawyer Edmund Bon said the event was an effort to link human rights protection with the Judiciary, pointing out how Asean’s work had always been with the executive sector.

“A lot of the senior Asean officials have meetings with the governments. They come from the governments, but we have not had sufficient links with the judiciary. Malaysia, together with Laos and Thailand, have conceptualised this colloquium, so that all Asean judges can come together and try to explore certain commonalities in the region,” Bon said, citing that all the countries have signed the relevant human rights declarations and conventions.

The three-day programme will involve panel discussions as well as working group sessions on the role of the judiciary in the promotion and protection of human rights, among others.

The Foreign Ministry, which is part of the organising team for the programme, said in a statement today the colloquium involves more than 100 participants, including 20 senior judges from the highest judicial branches of Asean member states, representatives of the council of Asean chief justices, international judges and AICHR representatives.

Playing Malaysia’s Number Game


March 13, 2017

Manjit Bhatia’s article’s article is on my blog.

https://dinmerican.wordpress.com/2017/03/08/najibs-criminal-state-of-mind/

Image result for Najib Razak and the Malaysian economyThe Malaysian Treasury is all but full

What follows is my friend Nurhisham Hussein’s response.

My own reaction is that I do not trust Malaysian government statistics since they are subject to manipulation by politicians in power. I do respect Nurhisham’s views and commend him for attempting to defend  “economic data from Malaysia”.

The sad truth is that there is so much fake news from Najib Razak and his cohorts in recent years that I have difficulty in knowing what is fact and what is fiction. It is something I experienced in attempting to figure out Donald Trump. But when it comes to Malaysia it is pretty straight forward since in the Malaysian context, fiction is fact.

By the way, what China has to do with the issues raised in Manjit’s article. This statement which I quote from Nurhisham’s article –“One of the key tests to determine whether economic data is falsified is internal consistency and statistical irregularity. China, for example, fails on both counts”–is irrelevant.

Allow me to quote a comment from Greg Balkin who regards Nurhisham’s article as: “A very strong rebuttal to Manjit Bhatia’s shoddy arguments.

Unlike MB who simply fights against the wind and even with his own shadow, at least Nurhisham Hussein provided actual facts and statistics for readers to contemplate on and question if necessary.

As a long-time Southeast Asia watcher, I have been very concerned about Malaysia which is increasingly beset with contradictory developments. Economically, it continues to grow faster than some neighbouring countries such as Thailand and Cambodia (That is bull Greg, check your facts on Cambodia from the Asian Development Bank before making your comment. In its most recent assessment,the Bank described Cambodia as an emerging tiger economy), yet it is mired in a series of financial scandals over the past three years, not to mention the worrying political scene.

The problem is many Malaysians have lost faith in the Najib Administration to the extent that any article that chastises Putrajaya is welcome even if it is not backed up with facts and statistics. One can read many of them on Malaysiakini or Free Malaysia Today. But it does not help Malaysians to develop a more critical mind when it comes to holding the powers-that-be to account.

This explains why many opposition leaders, blinded by popular support and swayed by populist sentiment, simply make one unsubstantiated allegation after another, only to find their position untenable and forced to retract thereafter.

No worries, for they have the people behind them whose negative perceptions of the government are already cast in stone and it matters not if these allegations hold water. If this vicious circle persists, I would not surprise to see Malaysia vote out UMNO and replace it with another set of arrogant politicians armed with half-baked policies to administer the country.

But it is a politician’s job to make sensational yet unsubstantiated claims, and an economist’s one to right them. Precisely why MB’s latest article is not only a huge letdown, but one that is unbecoming of his credentials, if any.”

Let me present an alternative reaction to Nurhisham’s article. It is from someone who calls himself Bumiputera Graduate as follows:

“I am unsure if Nurhisham is trying to shore up confidence in the Malaysian economy or defend the credibility of social and economic data produced in Malaysia.

I think Nurhisham is an expert at  the sleight of hand.  He has shifted the focus in the article from the main points that Manjit is making to those where Manjit is inaccurate.

Among the inaccuracies Nurhisham pointed out is that Malaysia does publish its labour force participation numbers, and that its budget deficit is going down. But Nurhisham doesn’t deny that perceived inflation figures are higher than reported figures; he only says it’s also the case with the US, which is not an answer at all.

He doesn’t touch on Manjit’s point on Bank Negara Malaysia manipulating the currency. Is Manjit right? Or is he wrong? Nurhisham says that his friends and associates at IMF and the World Bank have full confidence in Malaysia’s statistics.

Who knows if Manjit’s friends at the Fund and the Bank don’t have any confidence in Malaysia’s statistics. Hardly an argument worth a pinch of salt coming from the general manager, economics and capital markets of a government agency – the Employers Provident Fund – whose investment decisions are themselves questionable.

Again, when there are conservative estimates of 2 million undocumented migrant workers, with what confidence will you say that the minimum wage is implemented?

The labour market, going by his 3.6% indicator, may be at full employment, but he’s sweeping away the big problem of graduate unemployment (predominantly a Malay problem), the huge migrant labour problem, and the low productivity.

But if Manjit does a bit more of research and does a full article on the Malaysian economy, he may come up with a longer menu of issues that plague the economy than Nurhisham will be able to defend.

Manjit Bhatia, the byline says, is with a risk analysis company. If people like Manjit have views like this, that says a lot for the confidence that foreign analysts have in the Malaysian economy.

I think Nurhisham fails miserably in trying to shore up optimism in the economy, if that was his intention, even as he defends the credibility of data coming from Malaysia. With rebuttals such as his, what little confidence the public has, will further slide down.”

I leave you, my blog readers, to decide between the two views (Greg Balkin and Bumiputera Graduate). As far as I am concerned, and if I have surplus cash to invest, I will stay out the Malaysian stock exchange, the bond market and the Malaysian ringgit for a while, since I have no confidence in the Najib Administration’s management of the Malaysian economy. –Din Merican

 Playing Malaysia’s number game

by Nurhisham Hussein

The article further states that there is no data for the job participation rate in Malaysia. This is rather unconventional classification, as everyone else uses the term labour force participation rate (LFPR) instead. In any case, the article is completely mistaken. The LFPR for Malaysia has been available at monthly frequencies since 2009, quarterly since 1998, and annual frequencies going back to 1982. The annual numbers are further broken down by age, gender, education, and ethnic background. The data shows, far from a decline in labour market conditions, a steeply rising LFPR from 62.6 per cent in 2009, to a near record high of 67.6 per cent in 2016 (with a long term average of 65 per cent). It should also be noted that Malaysia’s long term average unemployment rate is just under 4 per cent. At the current rate of 3.6 per cent, the labour market would still be considered to be at full employment.

Image result for Idris Jala

Between Idris Jala and Najib Razak–A Deformed Malaysia

The article goes on to say that Malaysia’s minimum wage is scarcely enforced. On the contrary, data from the EPF, to which all salaried workers are required to contribute, show a massive shift in Malaysia’s salary distribution when the minimum wage was introduced in 2013. Fully 10 per cent of the workforce shifted from below the minimum wage to above it, and the wage effect was evident across the entire bottom half of the distribution.

Fourth, the article claims that, “In Kuala Lumpur alone, credible estimates put inflation at least twice the ‘official’ number”, and “inflation hits close to double-digits, in real terms, according to some investment banks’ research.” The second statement is nonsensical – there is no such thing as inflation in “real” terms, because in economics real prices of goods refer to inflation-adjusted prices. But the larger point – that inflation is perceived to be higher than official statistics – is actually well known. Well known because the same discrepancy has been documented nearly everywhere.

A recent Federal Reserve research note explicitly addressing this issue, found that US citizens perceptions of inflation were consistently twice as high as the official statistics. Why that is so is an interesting question in itself and would take far too long to explore, but the larger point is that differences between perception and official statistics cannot be taken as prima facie evidence that those statistics are false. There is plenty of evidence that the opposite is true, for example via MIT’s Billion Prices Project, that it is perceptions that are mistaken and not the statistics. Furthermore, research into the methodology and mechanics of constructing consumer price indices conclude that if anything, the CPI tends to overstate inflation, not understate it.

Fifth, the article claims Malaysia’s fiscal deficit and national debt are “ballooning”. In fact, the deficit has been halved since 2009, to just 3.1 per cent for 2016, while the debt to GDP ratio has been kept under the 55 per cent limit the government imposed on itself. Manufacturing, far from being routed, has continued to thrive, with sales breaching an all time high of ringgit 60 billion a month over the past few months. Moreover, Malaysia has been one of the very few countries in the region to record positive trade growth over the past two years.

In the Age of Trump, democratic institutions are under attack everywhere. Trust in public institutions has declined, not just in Malaysia, but globally. Globalisation itself is in retreat, and schisms and conflicts that we thought were gone, have arisen anew. Be that as it may, undermining confidence in public institutions without substantive evidence reinforces these troubling trends, and works against the very foundations of a democratic society. Without them, the very thing that Manjit Bhatia appears to be arguing for, becomes further from reality.

Nurhisham Hussein is General Manager, Economics and Capital Markets at Employees Provident Fund, Malaysia.

Idris Jala strums the Permandu Blues– Delusional Transformasi


March 13, 2017

Idris Jala strums the Permandu Blues– Delusional Transformasi

by Idris Jala@www.thestar.com.my

Image result for Idris Jala playing guitar

Idris Jala: Strumming the Permandu Blues

WE started Pemandu in 2009 with two clear objectives: to drive Malaysia’s transformation into a high-income nation by 2020, and to work ourselves out of this job. I have always said that Pemandu will be successful when we become redundant, that is, when the civil service is prepared to take up the mantle to lead Malaysia’s transformation.

We were also clear that the handover of Pemandu’s work on the National Transformation Programme (NTP) can only be initiated when it is “sticky”, meaning there is strong potential for the civil service to independently implement the NTP’s initiatives.

Permandu-led NTP at what cost to Taxpayers?

In 2016, as the NTP reached almost seven years of implementation and continued to yield tangible results, it became apparent that the time had come for Pemandu to transition our work on the NTP to the civil service. On Jan 23 2017, the Prime Minister’s Office announced the commencement of this transition over a two-year period.

Image result for transforming malaysia dominant and competing paradigms

The Transformasi Hang Over:Najib Razak–Racism and Hududism

We have scheduled this transition into three categories. The first involves work which will be handed over immediately to the civil service without any need for transition. This was completed on 1 March 2017.

Under the second category, some of the NTP work will be transferred to the civil service on a gradual basis. This requires a two-year transition period during which Pemandu will continue to support the civil service in the NTP activities, until the civil service has built sufficient capacity to enable full handover in the third year.

Over this period, Pemandu will commit 45 of its employees to work with the civil service in 2017. This will reduce to 30 in 2018, until no further support is required from Pemandu in 2019.

The third category involves work which still requires NTP coordination even after work has been transferred to the civil service. Pemandu will hand over these coordination activities to the Economic Planning Unit’s Civil Service Delivery Unit.

Image result for transforming malaysia dominant and competing paradigms

Malaysia–Paradise Found or Lost?

The key to succeeding in this exercise is to ensure an orderly transition. As set forth by change management expert William Bridges, there are three stages of transition, namely Ending/Letting Go; the Neutral Zone; and the New Beginning.

In the past seven years, we have worked closely with the civil service to ensure adoption of the new processes introduced to ensure consistent delivery of the NTP initiatives. This has seen the civil service gradually applying these new processes across their operations.

We are confident of their continued ability and commitment to do so. In short, all our work thus far has been leading up to this point.However, in tandem with this gradual shift, there remains a segment of the civil service which has yet to adopt any of the new ways of working.Therefore, within the civil service now exists two methods of delivery – the old way of working and the new.

According to Bridges’ transition model, the civil service is in the Neutral Zone, which, if allowed to continue, results in the organisation becoming choked. Therefore, it is critical to our transition timeline that by February 2019, the civil service must make way for new beginnings to ensure we achieve our high-income aspirations by 2020.

Let me come to why we felt it was time to begin this transition. Since the start of the NTP, we have been committed to our True North: the high-income GNI per capita threshold as set by the World Bank, jobs and investment.

According to latest available data from the World Bank, Malaysia’s GNI per capita as at 2015 was US$10,570, just 15% short of the current high-income threshold of US$12,475.

This is compared to our GNI per capita of just US$8,280 in 2010, with a gap of 33% from the-then high-income threshold of US$12,276. Additionally, we have catalysed a 2.2 times growth in the CAGR of private investment, which previously recorded a CAGR of 5.5% in 2006-2010. Between 2011-2015, private investment recorded a CAGR of 12.1%.

This data shows that we are more than halfway to high-income status and on track to achieve our goals by 2020.

We have also assessed the ministries’ competencies in taking over the reins of the NTP, with the programme’s total KPIs recording an average score of more than 100% every year.More importantly, through the NTP, we have helped to raise the incomes of everyday Malaysians in an inclusive way, such as through the completion of 5,286 km of rural roads benefiting 3.5 million people.

We have also connected 144,025 rural houses to reliable electricity, lighting up the lives of 720,125 people, provided 1.68 million living in 334,593 rural houses with access to clean water and built and restored 79,137 houses benefiting 412,360 people.

With just three years left to our deadline, considering the pace of progress we have seen over the past seven years, I am confident of the civil service’s capability to deliver the national transformation.

In this transition, this will mark my final Transformation Unplugged entry. Pemandu as an organisation will also embark on a new journey as a global consultancy firm focusing on government transformation and business turnaround.

On behalf of the team, I would like to extend my heartfelt gratitude to everyone whom we have worked closely with in the past seven years. I would also like to thank the folks who have been following my column. I must commend the Prime Minister and civil servants for their commitment and cooperation in delivering the NTP to date. I look forward to work together with them to embrace this New Beginning in the coming two years.

Image result for Malaysia's Transformation Conference

In the meantime, I hope to see you at the Global Transformation Forum 2017 on March 22-23. The Government of Malaysia is playing host again, bringing the best minds in transformation from all over the world to inspire Malaysians. The transformation mindset you will experience will bring clarity and inspire real behavioural change in driving your own transformation.