Doris Liew's recent article, "Budget 2024 needs to revisit state allocations," has raised an eyebrow regarding federal funding allocation in Malaysia. While her concerns are well-intentioned, it's important to critically assess her proposed solutions and examine its potential implications in more general terms.
The Pitfall of Economic Performance-Based Allocation
Liew's proposal suggests linking federal funding to a state's economic performance. This approach, however, carries several pitfalls. It disproportionately favours already economically developed states, such as Selangor, Penang and Johor. These regions, with established workforces, robust infrastructure, and attractive business environments, would receive even more significant shares of funding, potentially exacerbating the divide between economically advanced and less developed states.
Neglecting State-Specific Needs
A fundamental issue with the performance-based approach is its failure to consider the unique needs of various states. Malaysia's diversity is evident in its multifaceted economic activities and resources. For instance, states like Sabah and Sarawak possess abundant natural resources that significantly contribute to the national economy. Other states in the east coast of the peninsula, though they might have smaller populations, still require substantial investments in infrastructure. Relying solely on GDP to gauge a state's contribution overlooks these distinctions.
Short-Term Gain at the Expense of Long-Term Development
Furthermore, Liew's proposal could inadvertently discourage states from pursuing long-term development projects. Under this system, states may be incentivised to prioritise short-term economic gains to increase their federal funding. This focus on immediate returns could lead to neglecting crucial long-term investments in areas like education, healthcare, and infrastructure – key elements for sustainable development.
Unseen Sacrifices: Migrants and Food Providers
In evaluating the economic contributions of states, it's essential to acknowledge the unseen sacrifices made by two important groups – migrant workers and food providers from less developed states. Migrant workers, often hailing from economically disadvantaged regions, play a pivotal role in the workforce of more advanced states. They bear the emotional burden of separation from their homes, families, and hometowns, all while longing for their migration to support their state's prosperity.
Similarly, the contributions of food providers from less developed states cannot be fully measured by GDP. These individuals supply essential goods and play an indispensable role in supporting the more advanced states, particularly in providing nutrient supplies. Their intangible contributions should be recognised and respected in any discussion about funding allocation.
National Policies and Unity
Beyond economic contributions, the current funding allocation system seeks to promote equity and reduce inequality. It acknowledges that some states have inherent advantages and disadvantages. Imposing a performance-based system may exacerbate existing inequalities, favouring those who are already economically advanced.
Moreover, it could limit the federal government's ability to implement national policies. If a state is disinclined to invest in a particular sector or project, the federal government might have limited influence to push for it. This constraint on national policies could hinder the country's overall development and unity.
Conclusion
In conclusion, while Liew's concerns about federal funding allocation in Malaysia are valid, her proposed solution lacks a broader perspective. It risks further economic disparity, neglects the unique needs of states, and discourages long-term investments in crucial sectors. In addition, it doesn't account for the sacrifices made by migrant workers and food providers from less developed states, who contribute significantly to the nation's prosperity.
A more balanced and equitable approach to funding allocation is essential for the holistic development of all Malaysian states, while also respecting their unique strengths and challenges. Furthermore, it is critical to remember that beyond state allocations, federal funds are vital for developing infrastructure, supporting national projects, and ensuring the nation's unity.