LETTER: Despite efforts to reduce regional imbalance, urban and rural divide persists, especially in Sabah and Sarawak, as well as the eastern and northern regions.
The Mid-Term Review of the 11th Malaysia Plan showed that in 2016, Sabah recorded the lowest gross domestic product per capita at RM22,098, followed by the eastern states at RM23,392 and northern states at RM29,725.
Access to clean and treated water supply in rural areas remains a challenge. In 2017, access to rural electricity supply was the lowest in Sarawak at 85.4 per cent and Sabah at 92.4 per cent.
Due to limited private investments and complicated local authority procedures, Sabah and Sarawak recorded a lower-than-national average of 117.3 per 100 inhabitants for broadband penetration in 2017, with 64.5 in Sabah and 106.5 in Sarawak.
The Covid-19 pandemic has exposed how vulnerable people are in rural areas. This is evident in Sabah and Sarawak, where there is a smaller distribution of doctors, specialists and teachers. Moreover, the lack of medical centres and amenities has raised the cost of healthcare, while the lack of education facilities has deprived rural dwellers from getting access to education.
Due to poverty or lack of awareness, at least 35 per cent of students do not have proper digital tools or appliances to access knowledge digitally. Therefore, to promote balanced growth between the urban and rural areas, state government agencies have to take the lead in fostering economic development in the states.
They have to work closely with the federal government on interstate projects such as roads, utilities and flood mitigation infrastructure. With allocation in development expenditure, less developed states such as Sabah, Sarawak, Kelantan, Terengganu, Kedah and Perlis can enjoy better infrastructure access, as well as generate more economic activities.
The state government agencies also need to expand downstream activities to spur economic growth. For instance, the development of the Kedah Rubber City in the Northern Region, which focuses on rubber industries such as specialised latex and rubber products, as well as precision engineered rubber products, will enable the production of high value-added products.
The Palm Oil Industrial Cluster in Sandakan and Lahad Datu in Sabah will have the potential to boost investment in higher value-added downstream processing activities. Increasing accessibility and connectivity will stimulate socio-economic activities including the creation of new jobs for the locals, thus reducing regional imbalances.
To accelerate rural development, Sarawak needs to capitalise on newly established development agencies such as the Highland Development Agency, Upper Rajang Development Agency and Northern Region Development Agency to harness growth and boost rural transformation.
It is also crucial for state government agencies to work with the private sector in order for the rural folk to enjoy quality infrastructure. Private sector participation in rural areas would help to attract higher-value investment, promote rural tourism and agrotourism, enable products to be sold via digital applications and social media, as well as enhance employability.
Through regional inclusion, the government would be able to create an integrated urban-rural public transportation system, reduce income disparity between regions by half and introduce new regional economic hotspots, particularly outside the Klang Valley.
It is also important to align the goals of achieving regional inclusion under the Shared Prosperity Vision 2030 with the Mid-Term Review of the 11th Malaysia Plan and the 2030 Agenda for Sustainable Development 2030.
AMANDA YEO
EMIR Research, Kuala Lumpur
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times