By: DR FAHMI NGAH
The concerns raised by several assemblymen on the accountability and governance structure of the Darul Ehsan lnvestment Group (DEIG) during the current assembly session are not to be taken lightly. These are legitimate concerns, which should be addressed constructively, as the need for aneffective state-owned entity for rationalising and consolidating existing state assets in Selangor has already been agreed by all the relevant stakeholders at the State level.
A more sustainable wealth creation model is required for the Selangor State. A new balance is required, namely, whether to fully adopt the monopolistic model: where certain state agencies are given assets preferentially with no emphasis on value maximization; and, the extreme free market model: where all state agencies are allowed to compete against each other whilst ignoring synergistic principles and returns to the rakyat.
To answer this question, let us not forget the role and duties of the state. ln so much as the state aims to maximize wealth generation, it cannot choose to ignore the basic needs of the rakyat. This duty remains and must continue to be fulfilled not only when the rakyat are needy but even to the extent that when every single person is already wealthy. ln this regard, the present administration had chosen to operate not only as a market oriented government that is pro-business but also with a clear commitment to socialjustice and focussed at ensuring the best delivery to the rakyat.
The question that arise is what would be the best mechanism to manage state assets that ensures the maximization of returns and value creation, with the view of channelling the generated dividends back into developmental programs beneficial to the rakyat, ideally, at no cost to the rakyat.
In doing so, the administration must continue to be answerable to the rakyat and open to scrutiny by the federal government. Principles such as transparency, accountability and good governance, all of which despite being openly flouted by the federal government must continue to underline and guide any new approaches and methods adopted by the state.
We continue to owe the rakyat on their demands for a cleaner Selangor, improved infrastructure and public safety. Any administration wanting to deliver these should be supported and not treated with suspicion and hostility.
Let us all focus on delivering our obligations to the rakyat. The rakyat is watching and should this administration fails, we all fail.
# Dr Fahmi Ngah – Chief Executive Officer Office of Selangor Economic Advisor