[unclear: ter] Tempo for Third Malaysian Plan

[unclear: The] Malaysian Government is stepping [unclear: ne] pace of development in the last two [unclear: s] the Third Malaysia Plan. It will [unclear: d] M$13.2 billion in the next two years [unclear: pared] to the M$11.8 billion spend [unclear: du-] the first three years. The original [unclear: allo-on] for the Plan was M$ 18.6 billion. But [unclear: eview] tabled in Parliament this after—[unclear: n] shows public expenditure revised to [unclear: 2.1] billion, an increase of 73%. With [unclear: 1.8] billion of the original allocation al[unclear: y] spent, M$20.3 billion is left to be [unclear: t] this year and next.

[unclear: However], allowing for shortfalls in [unclear: im-lientation], the actual total expenditure [unclear: pected] to be about M$25 billion, [unclear: lea-] a balance of M$13.2 billion. Of the revised allocation, about 67% is for economic sector, 17.4% for social [unclear: ser-] 11.8% for defence and internal [unclear: se-y], and 3.8% for general administration.

[unclear: The] review report says the expenditure [unclear: imated] to raise public investment by [unclear: a] per annum in real terms against the [unclear: t] of 6.2%. The bulk of the [unclear: expendi-] will be financed by domestic [unclear: borro-] External loans will provide only [unclear: t] 18.6% of the requirements.

[unclear: The] government's current revenue in [unclear: e] two years is to grow by nine per cent per annum, with direct taxes increasing by 15.9% and contributing nearly 38% of the total. The growth in direct tax revenue is due to the enlarged tax base as well as revenue from petroleum production.

While considering progress was made in implementing land development projects, this was partly offset by shortfalls in the implementation of in-situ projects. Major factors included the inability of the State Government to provide supporting staff and facilities for the agricultural subsidy programmes and the inability of fisherman to contribute towards the initial capital cost under the fisherman subsidy scheme.

The higher rubber prices and encumbrances associated with land titles inhibited the progress of rubber replanting schemes, while the high input cost and inadequate labour and access roads retarded pineapple replanting efforts.

The report says that despite concerted efforts by the public sector agencies to accelerate development in less-developed states, their overall expenditure performance was below expectations because of limited absorptive capacity.

Preliminary estimates indicate that the expenditure in Kedah. Kelantan and Perlis averaged about 10% of the allocation. The low achievement reflects the problems associated with efforts by poor states to embark upon a significantly larger development programme in the face of administrative constraints in the implementation machinery of these states.

(The Star 20.3.79)

Subversion of New Economic Policy

Allegations to attempt to subvert the New Economic Policy (NEP) were contained in a report to the Supreme Council submitted jointly the Labour Bureau and Youth Section of UMNO (United Malaysia National Organisation), the dominant partner in the ruling National Front government.

According to Haji Suhaimi Haji Kamaruddin, who is both chairman of the UMNC Labour Bureau and the national leader of UMNO Youth, they had looked into 15 aspects of the implementation of the NEP, which is designed to transfer 30% of the ownership of commerce and industry into Malay hands by 1990.

Firstly, there was little transfer of technological skills from the expatriates to local employees, especially bumiputras. "The big organisations were happier to import foreign experts to run their industries rather than train the local workers," he said.

"We are very concerned about this matter, and it is happening in at least 6 of the biggest electronic component organisations in the country." "Secondly, Haji Suhaimi criticised firms which appointed bumiputra executives for window dressing without giving them executive power. Finally he said that UMNO was very concerned about shares allocated to bumiputras falling in to the hands of non-bumiputras.

(Ref. NST 1.2.79, 7.2.79)

No MAS Flights to UK and Australia

As the MAS (Malaysian Air Line System) resumes normal services, international flights to Australia and England remain suspended. Rights to Europe go only to as far as Frankfurt, West Germany. Air workers in these boycotting airports refused to handle MAS flights in response to a call made by the ITWF (Internal Transport Workers Federation) to protest against the Malaysian government detention of the ITWF Asian representative Mr Donald Uren, and the deportation from Malaysia of its visiting Secretary Mr Johann Hauf. The ITWF and the local Malaysian union have persistently called on the Malaysian government to release Mr Donald Uren.

Since the MAS workers industrial action which began on December 5, 1978, 213 workers had been suspended by the management, and 22 active trade unionists arrested under ISA. Of the 213 suspended, 90 had been dismissed and 45 reinstated, and the rest are appearing before the Board of Inquiry. Contrary to the expectation of the government, the MAS workers are not cowed by either the arrests or by the presence of troops in Port Klang and at the Subang International Airport. As one trade unionist put to the Feer, "The Malaysian economy depends on the movement of our primary products around the world, we can be thrown into jail, but you cannot force anyone to unload our exports under any law in the world."

The events surrounding the MAS industrial action point to the direct intervention of the government at all levels. Even though the government, may have tried to justify its action, if the MAS union action was illegal, why did the government not take out a court injunction to stop it?

(Ref. NST Feer)