Cost for NKEA labs 'exorbitant'

http://www.freemalaysiatoday.com/fmt-english/politics/barisan-nasional/10622-cost-for-nkea-labs-exorbitant-says-consultant

Cost for NKEA labs 'exorbitant'

FRI, 24 SEP 2010 14:37

By Syed Jaymal Zahiid

KUALA LUMPUR: The consultation fees for the entire Selangor economic blueprint cost just a fraction of what the Performance Management and Delivery Unit (Pemandu) had spent on just one of the 12 national key economic area (NKEA) labs, claimed prominent independent analyst Ong Kian Ming.

Ong, one of the consultants working closely with Pemandu for the education cluster in one of the NKEA labs, told FMT that the entire consultation cost for the 12 labs by the Najib administration was close to RM23 million, exorbitant when compared to the fees paid by the Selangor government for the state's economic blueprint.

"This whole exercise, in terms of the consultants' fees (independent poll centre Merdeka Centre and myself), will cost the Selangor government RM120,000, slightly more than 5% of an NKEA lab," he said, adding that one NKEA lab alone cost the government about RM2 million in terms of consultation fees.

"Will the end product be as 'good' as an NKEA lab? I cannot be the judge of that since the (economic) blueprint has not been written.

"But I think it will be at least on par if not better than an NKEA lab because of Merdeka Centre's experience in dealing with political issues and gauging what implementation plans can be more easily 'sold' and implemented and because of my own experience as a consultant, academic and political analyst," he said.

Ong is also one of the consultants hired by the Selangor government for its economic blueprint.

Staff shortage for NKEA labs

It is learnt that Pemandu, led by Minister in the Prime Minister Department Idris Jala, had to organise and run the NKEA labs at short notice. Most of the staff involved with the NKEA projects are those also working on the National Key Results Areas (NKRAs), another aspect of the Najib administration's reform efforts.

This had forced the outfit to rely heavily on external international consultants which included McKinsey, Boston Consulting Group and Ethos, with McKinsey leading the group and spearheading four labs. The rest are spread among the firms.

"If the existing Pemandu staff were not doing the NKRAs and perhaps had more consulting type experience, they probably would have been able to manage the NKEAs by themselves, without the help of external consultants.

"But because of the short time frame involved, they had to rely on the consultants... as a taxpayer, I would obviously not be happy with the amount of money spent on the consultants. As a consultant myself, I know that it could be done at a much cheaper rate. The Selangor blueprint is proof of this," said Ong.

Given that the overall cost of the NKEA labs are kept under the Official Secrets Act, FMT was told by sources that Pakatan Rakyat MPs will be seeking clarification on the matter when Parliament convenes mid-October.

Vision 2020 may not materialise

The NKEA labs were conducted to find ways to boost the economy of which the outcome was the identification of 131 entry point projects that the government claim can mobilise more than a RM1 trillion in private investments needed to realise the Economic Transformation Programme (ETP).

The ETP is one of the key programmes crafted by the Najib administration to realise Malaysia's developed nation status in 10 years although various leaders, including former premier Dr Mahathir Mohamad, believe that Vision 2020 is doomed to fail.

Some of the projects identified are infrastructural, such as the KL mass transit system, the high-speed rail system to Singapore and Penang and the construction of a huge oil storage facility next to Singapore.

Despite widespread scepticism that the private sector would respond, 60% of the identified investments worth RM1.4 trillion would come from the private sector, 32% from government-linked companies and 8% from the government.