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Thursday, April 21, 2011

EDITORIAL : THE NEW STRAITS TIMES, MALAYSIA



Capitalising on innovation

RECENTLY, Prime Minister Datuk Seri Najib Razak returned from his official visit to South Korea with RM5 billion in promised investments. On Monday, he announced RM901 million worth of assured investments in seven brand new Entry Point Projects (EPPs). This raises the cumulative investments since the launch of the Economic Transformation Programme (ETP) in October to more than RM106 billion in 72 projects that can create 300,000 jobs and add RM154 billion to the economy. As the latest update is the fifth progress report, it shows that the government has lived up to its promise to bring the nation up to speed on the latest developments in the ETP. More importantly, the fact that two-fifths of the targeted 131 EPPs are in various stages of implementation is an indication that the ETP has not been all visionary talk about economic transformation but, rather, actual execution of tangible plans of action.
Of course, it's early days yet. Of the 60 projects announced earlier, only four are up-and-running, 26 have just started operating, and the rest are gearing to get under way. Nevertheless, given the bare six months since the ETP's launch, this is a telling demonstration of the determination to translate the economic road map into action with all possible speed. In any event, it shows that the momentum for economic transformation is picking up. Though there's still some way to go, it won't be long before the multiplier effects of the considerable spending in significant National Key Economic Areas will be felt across all sectors of the economy. With projected growth expected to range between five and six per cent this year, exports likely to expand within eight to 10 per cent, inflation manageable at three per cent, the stock market climbing, consumer confidence improving, and foreign and domestic investment rising, the economy appears to be well on track.
But as the prime minister pointed out, investments alone are not enough to steer the country towards a high-income economy by the end of the decade. We can no longer rely on cheap labour and borrowed technology to grow the economy. To attain developed nation status, we need to move up the value chain based on high technology and innovation. As the 113 inventions out of 1,000 that have commercial potential suggest, there is no dearth of marketable ideas at local research institutions. In this regard, "Innovation Lift-off" is a step in the right direction, as it would allow innovators to cash in on their inventions and the country to profit from the creation of new products and markets.

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