Our success as a trading nation depends on the ability to execute policies efficiently and effectively. Among the key success factors that is required is the need for a good data-sharing platform. — Bloomberg
MALAYSIA has enormous potential to rise as a vibrant economy. It has the necessary ingredients like resources, a skilled workforce and good economic fundamentals.
Under the unity government, they have crafted a series of policies, namely, the Madani Economy, the National Energy Transition Roadmap (NETR), the New Industrial Masterplan 2030 (NIMP 2030) and the recently tabled 12th Malaysia Plan (12MP) Mid-Term Review (MTR).
The NETR is seen as a unique plan to make this country a hub for renewable energy and green technology.
As for the NIMP 2030, it is not a rehash of the old plan. It is a departure from sectoral to focus on specific missions, new thrusts and economics of complexity.
The MTR is not just an ordinary review of the old plan. It entails a shift in focus, policies and direction – taking into account good governance and accountability and transform Malaysia into a vibrant and economically, socially and academically successful nation.
Our success as a trading nation depends on the ability to execute policies efficiently and effectively. Among the key success factors that is required is the need for a good data-sharing platform.
Let us take the Covid-19 pandemic period as a case study. The pandemic has had severe implications that go far beyond the observable macroeconomic impacts.
Besides the health effects, many micro, small, medium and large firms were impacted by the lockdown policy measures.
It provided loopholes to take advantage of the financial assistance that were meant for the deserving rakyat. Living costs shot up following the lockdown besides the global effects.
The categorisation of “essential and non-essential” business given the complexity of the supply chains during the movement control order caused havoc.
Such categorisation has partly led to the slowdown in the economy, disrupted domestic supply like basic necessities that include food and resulted in opportunity revenue loss due to the lack of foreign workers while hurting businesses who were struggling to keep operations going.
Many have shut down. The list goes on.
Part of the issues could be attributed to the lack of data sharing and poor analytics. It led to huge economic and social costs on our economy and the society.
If anything, the poor data sharing and analytics showed us that health and economic risks cannot be addressed in isolation. It is not just about lives at the expense of livelihoods.
Today, we are paying the price in part for the high living costs and shortages of certain basic necessities like eggs.
> Need for a good data-sharing platform and analytics
To address the ongoing challenges from past policies and strategies and support the new strategies drawn out under the unity government, we need a good data-sharing platform.
If we go back to basics, by having a good data-sharing platform, it improves the analytics to formulate policies that are well coordinated and effective to address the economic risks and opportunities.
Through data sharing, it affects the wider community and enables greater public understanding of what can at times be a complex subject matter.
It enables stakeholders to access relevant data. It fosters a culture of data-driven decision at federal, state, local council, businesses and other stakeholders.
The government can critically analyse the effects of the policy measures, help address the reform gaps as well as monitor and evaluate risks arising from systemically important economic activities.
Today, data sharing is still the exception rather than the rule in many governments. However, such perception will fade as data analytics adoption is increasing rapidly.
It is reasonable to expect that many will seek key performance indicators in near-real-time via transparency portals.
The MTR said the introduction of the Omnibus Act will govern data sharing and cloud storage. “This act will enable the revision of agency internal regulations and policies in supporting data sharing and digitalisation requirements”.
According to the MTR, a socio-economic data repository on households, known as the Main Data Base System (Padu), an initiative under the Big Bold Targeted Subsidies, will also be developed to facilitate the distribution of a more targeted subsidy and assistance.
Near real-time micro data on individuals such as demography, income and social assistance will be captured in this platform as a reference to government agencies.
And Padu will provide access to enable individuals to review and update personal data. In this regard, the government will ensure data confidentiality and security are protected.
To improve the effectiveness of our change management, the MTR cited the government will appoint a chief digital officer (CDO) to accelerate the digital transformation, and promote a digital-driven work culture across all ministries and agencies by referring to the Guideline for Change Management in the Public Sector.
The CDO will be responsible to spearhead initiatives on digital technology, data governance and digital literacy in the organisation.
> Data-driven decisions will have to be the pattern for the government’s innovations
Mission-driven analytics have the potential to help the government to do more with limited resources.
Technology has advanced to the point at which data can be gathered, collected and analysed effectively.
Our aspiration on the “economic of complexity” unveiled in the NIMP 2030 clearly needs strong data sharing and analytics in order to reap the full potential of the complexity and boost the economy.
Policy strategies and debate will soon become a commonplace. Our politicians and leaders will need to create a credible and reliable data-driven culture in their debates that promotes governments’ missions and public purpose fulfillment.
They should not be merely relying on anecdotal evidences.
Given that there is a need to develop analytical techniques that can help to find the right balance between data accessibility and safeguarding data privacy, in the MTR’s initiative on data sharing, it is important to develop and promote an international data standard.
It will improve the ability for us to jointly analyse data from different domains, allows researchers and policymakers to gain a better understanding of new phenomena and make sound policy decisions.
We must remember, today’s “extraordinary” will soon become routine tomorrow. And our economy is closely interwoven between domestic and global markets.
The journey towards data-driven resource allocation needs political leadership, a commitment to sustained technological progress and a willingness to measure and report success transparently.
Through a good data-sharing platform, we will be able to address potential health and economic risks more strategically.
Anthony Dass is professor of economics, Unitar International University; and economic adviser, KSI Strategic Institute for Asia-Pacific. The views expressed here are the writer’s own.
