Resident Coordinator's speech: East Coast Economic Region SDG Summit

Yang Berbahagia Dato’ Luqman Ahmad, Deputy Secretary General (Macro), Ministry of Economy; 

Yang Berusaha Dr. Noranida Zainal, Director, Environmental and Natural Resources Division, Ministry of Economy; 

Yang Berbahagia Dato’ Baidzawi Che Mat, Chief Executive Officer of ECERDC; 

Yang Berbahagia Prof. Dato’ Dr. Fadzli bin Adam, Vice Chancellor of Sultan Zainal Abidin University; 

Yang Berbahagia Dato’ Ragu Sampasivam, Chief Operating Officer, ECERDC;

Yang Berusaha Cik Salida Azizi, Acting General Manager, Corporate Strategic Planning, ECERDC;

Yang Berusaha Encik Asfaazam Kasbani, Director of National SDG Centre, Ministry of Economy; 

Senior Officials representing Federal and State Governments; 

Dato’ Seri and Dato’-Dato’; Ladies and Gentlemen; 

I am honoured to be the guest speaker at the fifth of a series of SDG Summits organized across Malaysia in a joint initiative of the Regional Economic Corridors and the Ministry of Economy of Malaysia. 

This journey started in August last year and I am delighted that the United Nations in Malaysia has been part of all five summits organized successively in Johor, Sarawak, Perak, Sabah and Terengganu.

Bringing the sustainable development conversation to the sub-national level illustrates Malaysia’s firm commitment to accelerating implementation, mobilizing the necessary stakeholders, partners, and resources, and making equitable, inclusive and sustainable development a reality for everyone, everywhere.

I extend my deepest gratitude to the ECER Development Council of this event for engaging with the UN and for your hospitality. I also convey our sincere appreciation and our readiness, as the UN Country Team, comprising 22 agencies, funds and programmes, to accompany your efforts to address the development priorities of Terengganu, Kelantan, Pahang and the districts of Mersing and Segamat in Johor.

In my intervention, I will provide a brief overview and some insights to set the scene for your panels and deliberations later in the day.

I will use the SDGs as the main lens to present where Malaysia stands within the Asia Pacific region and globally. I will then zoom in on the East Coast of Peninsular Malaysia, highlighting both potentials and areas where urgent action is needed. 

I will conclude with a few entry points or enablers of progress, taking into account the vision of the federal government, charted under the banner of Malaysia Madani, and the aspirations of state governments, as outlined in the ECER Master Plan 2.0, a people-centered blueprint to address the needs and priorities of this beautiful and full-of-potential part of Malaysia. 

The year 2030, the terminal year for the SDGs, is less than seven years away. 

When the 2030 Agenda was adopted by 193 countries in September 2015, we all believed there was plenty of time to achieve the 17 SDGs and their 169 targets. While we knew some targets would be hard to reach, especially for developing countries, we nonetheless all believed we had a clear sense of direction, the necessary political will, financial resources and partnerships. 

The world committed to a plan of action for people, planet, prosperity, peace and partnership. There was also a firm promise to leave no one behind: no individual, community, village, city, country or island should be left behind.

But things did not go as planned. Foremost, climate change was more advanced than we had appreciated, but equally, policy responses on a suite of issues was too slow. And then inevitably, unforeseen events intervened, not least the COVID-19 pandemic, but also series of geopolitical crises. These had very severe knock-on effects throughout the SDGs, globally and in all regions.

And some eight years into the set timeframe, most SDG targets remain beyond reach. 

At the SDG Summit, held during the 78th UN General Assembly last September, the UN Secretary-General progress report 2023 painted a sobering picture, prompting the global call to rescue the SDGs and use them as a tool to guide planning and budgeting at national and local levels, set targets, and develop solutions that respond to the social, economic, and environmental context in which they are implemented.

The World is significantly off track to achieving the SDGs by 2030 and the data tell us a sobering story of lagging progress, inadequate and often fragmented policies, and insufficient financing. Progress has been too slow on climate and the environment, on food security, education, water and sanitation, digital transformation, employment and decent work, equal opportunities for men and women, and several other goals.

Referring to the 2023 special edition of the SDG Progress Report, only 15% of the targets for which data is available are on track; almost half are off-track; and 37 per cent show stagnation or regression. 

On these trends, by 2030, around 600 million people will be extremely poor; 1.6 billion people will lack access to safe water; 1 in 4 women and girls could be moderately or severely food insecure. Moreover, if no serious, decisive, collective action is taken to keep global warming below 1.5 degrees, life on earth and the future of our next generations are under existential threat.   

Positive stories remain too few and uneven across the globe, and inequalities are raging between and within countries. Yet, we need to remain optimistic. Malaysia’s story is one of hope and infinite opportunities.

In the second part of my remarks, I want to offer a summary of Malaysia’s progress against the 2015 baseline, the year when the SDGs were adopted. I do this by reporting the results of a preliminary quantitative assessment recently carried out by the United Nations in Malaysia, drawing on national data sourced from the Department of Statistics Malaysia. 

Based on our initial analysis, we found that for Malaysia, around two thirds of SDG targets with available data are on-track and one third are off-track. When we count in targets for which we don’t have data, 50% are assessed as on track and 28% are off-track.  For 22% of the targets, we don’t know because of data unavailability. 

This compares favourably to the global position I mentioned earlier– where only 15% of targets are on-track.

There is no doubt that Malaysia is making progress, on a trend similar to other countries approaching high-income status. 

However, achieving the targets that are currently off-track requires that we understand the underlying cause of the slow progress. In addition to the global drivers, I have described, there are important national dynamics. 

Indeed, national averages only tell us part of the story as they hide important state-level nuances. Malaysia is a mix of high-income, middle-income and low-income states and districts, and national progress on the SDGs can only be achieved if regional progress is boosted and major disparities are addressed.

This was our key message in the previous SDG summits and the East Coast Economic Region (ECER) is no exception. Malaysia’s overall progress towards its ambitious goals depends on the investments and progress achieved in Kelantan, Terengganu, Pahang and the Johor districts of Mersing and Segamat.

Moving to the third part of my talk, I will delve a bit more into the East Coast Economic Region (ECER), looking at the latest data consolidated by DOSM, and released earlier this year. Where relevant and useful, I will refer to global trends and to Malaysia’s overall performance on certain indicators.

I will use the headings of People, Planet, Prosperity, Peace and Partnerships and highlight achievements and gaps from an SDG perspective under the five Ps.

Starting with People, for Malaysia, the position on SDG 1 (Ending poverty in all its forms everywhere) is generally better that the ASEAN, Asia-Pacific and global positions: the proportion of people living below the national poverty line stands at 6.2 percent. When we zoom in on ECER, there picture is not homogeneous. Terengganu and Pahang are closer to the national rate, while poverty in Kelantan is more than double, standing at 13.2 percent. For the two Johor districts, it is at 10.1 percent.

This is one among many instances where Malaysia as a whole may seem on track to meet a 2030 global target, but state-level data highlight significant disparities.

On hunger and food insecurity, SDG 2, another major global issue, where we are seeing some stagnation and regression, the data show that this is also an issue for ASEAN and for Malaysia. We have noted alarming malnutrition trends, especially among children. Stunting and wasting rates for children under 5 are already too high for a country like Malaysia, but Pahang has even higher rates. Looking at child obesity, Terengganu and Kelantan have slightly lower rates than Malaysia’s 5.6 percent, but more children suffer from overweight in Pahang, at 7.5 percent.

Moving on to SDG 3, Health and Wellbeing seems to be an issue for all ECER states and districts with each performing poorly on non-communicable diseases such as cancer, cardiovascular and diabetes. Increases in the incidence of NDCs is also a weakness for Malaysia as a whole and should remain a priority for the Government, not only within the Ministry of Health, but also Education, Agriculture, Housing and Local Development. 

On headline health indicators, including maternal mortality ratio, at 26 nationally, Kelantan recorded a 44.4 ratio in 2022, Terengganu stood at 39.5 while Pahang and Johor’s districts of Mersing and Segamat combined seem to perform even better than the national average. 

Another example is the SDG indicator on road traffic fatalities. Pahang and the two Johor districts are way above the national rate, while Kelantan and Terengganu are doing much better. The two states also have a lower suicide rate both within the ECER and nationally.

SDG4 (Quality Education) data tell us a positive story, as compulsory and free primary and secondary education for all has ensured that progress in Malaysia and in ECER is on track. We note the challenge to access of education by refugees and migrants. One area with a striking deviation is early childhood education (preschool access), with Kelantan having a significantly lower rate than nationally.

Gender equality and women’s empowerment merit special mention with the People heading. 

SDG 5 has long been a defining feature of overall SDG progress, with the potential to accelerate or obstruct country performance. There remain major bottlenecks in Malaysia ranging from enabling women’s inclusion in the labour market to boosting their participation and representation in business and political life. 

In ECER, there are fewer women in managerial positions than nationally. Compared to Kelantan and Terengganu, but also to the national rates, more women hold political office in Pahang and the Johor northeastern districts.

Looking at adolescent birth rates, especially among girls aged 15-19, ECER, particularly Pahang, has the highest rate in Peninsular Malaysia at 8.2 percent (national 5.8 percent).

Such differences illustrate my earlier point on the importance to look at granular data. Why is there more maternal mortality in Kelantan? Why are there more adolescent pregnancies in Pahang? How does it correlate with poverty and deprivation? With connectivity and infrastructure? With poor nutrition? 

These are all pointers to policy gaps or inadequate investments that should be addressed or redressed through state-level tailoring of analysis and policy choices, not only to bring national averages up, but most of all, to ensure human rights of all people are protected and their needs met.

I come now to Prosperity.  The post-Covid recovery has been uneven, but overall, Malaysia’s macroeconomic situation is almost back to pre-pandemic status, especially on economic growth, unemployment and inflation. 

New global challenges have also emerged due to trade tensions and difficult geopolitics, but the country’s economic performance and ability to bounce back have been encouraging.

Considering the sub-region with all three states and two Johor districts, the economic performance is somewhat balanced; however, Kelantan, and to some extent Terengganu, record much lower growth rates (8.7 percent national GDP growth in 2023; only 3.2 percent in Kelantan and 4.5 in Terengganu). Pahang stands out with a much better economic performance. 

I mentioned inequalities in Malaysia earlier, SDG10, and I want to highlight the issue of inequality also within the ECER and within individual states. Interestingly, Kelantan is less equal than the other two states, but all three states are generally more equal than Malaysia. 

Here it is worth noting that the ECER Master Plan 2.0 (EMP 2.0) has at its core urban-rural integration as one of the seven game-changers and enabler of equitable distribution of development and hence more balanced outcomes and reduced inequalities.

Turning to the Planet-related SDGs, the global prognosis at all levels is disquieting. The “war on nature” has impacted most of the environmental SDG targets, and climate action remains insufficient in face of catastrophic scenarios.

In Malaysia, progress on SDG 6 (Clean water & sanitation) is on track, with 95 percent of the population using safely managed drinking water services. This is another instance where the national average hides state-level disparities, with only 74 percent of Kelantan’s population using safely managed drinking water services. Interestingly, more access is recorded in rural than urban areas. 

Piped water availability at household level is higher than the national level by around ten percentage points in Terengganu and Pahang, but again lower by 20 percentage points in Kelantan.

On other environmental and climate-related SDGs, progress at the national level is not on track to meet the 2030 targets. This is mainly due to inadequate climate action and decarbonization, declining quality of marine water and fish stocks, plastic pollution, and unsustainable patterns of consumption and production.

Transformative action at scale is the only way to avert a catastrophic future. Malaysia needs bold transitions to both mitigate and adapt, and action at state and district level is critical, especially as the impact of climate change and extreme weather conditions have far-reaching consequences, particularly on the most vulnerable.

I now come the Peace heading, which refers to stability, justice, the rule of law and the quality and effectiveness of policies and institutions. 

In comparison to global and Asia-Pacific trends, the position of Malaysia is significantly better, particularly on targets related to violence, safety and security. Yet we still see lagging areas on the pivotal SDG 16 on peace, justice and institutions. This goal calls for upholding human rights and consolidating good governance, and acts as an enabler of progress across all SDGs. Meeting SDG16 targets in this region will ensure that the needs of the poor and most vulnerable, those at higher risk of being left behind are met.  In turn this will enable them to positively impact the short and longer-term development of the ECER states and districts.

The fifth P is Partnerships and it is precisely what SDG 17 calls for: partnership, participation and inclusion. It also focuses on means of implementation. Progress requires political will, effective policy-making and rigorous implementation, and collaboration among all stakeholders. Sub-national budgeting and financing are key to achieving tangible outcomes and bridging the gap between state-level and Malaysia development status.

Moreover, effective policymaking relies on high quality data, a great challenge in this region, despite the commendable efforts by the statistical offices at state and federal levels. Disaggregated data is critical to targeting solutions to benefit those most in need and reaching the furthest behind first.

Investing in inclusive solutions that would gradually capitalize on the ECER resources, boosting the human capital and productivity, is particularly important, as it is a critical enabler of progress. Raising awareness and further engaging with Civil Society Organizations and universities has the potential to not only benefit local communities but also raise the floor and address development gaps outlined in the overview I have presented.

2025 marks the target year for the ECER Master Plan 2.0 framework, a strategy from this region and for this region, and also aligned with national priorities and the Sustainable Development Goals. Now is the time for action and acceleration.

Much has been achieved to date, yet the potential for progress is enormous. There is an immense value in employing the SDG framework to support state level planning, accelerate implementation and monitor progress and impact. Moreover, the SDGs hardwire fundamental considerations, chiefly environmental sustainability and inclusion, but crucially also, they embody human rights commitments.

The UN family in Malaysia stands ready to engage with the decision-makers and all development stakeholders at all levels, as the East Coast Region takes the transformative path mapped out in the Masterplan 2.0 towards inclusive and sustainable development that benefits all.

I thank you for your attention and convey my profound appreciation to the State Governments of Kelantan, Terengganu, Pahang and Johor; to the Ministry of Economy Malaysia, and the National SDG Centre and to the ECERDC for inviting the UN today to contribute to your region’s development journey. I reiterate the UN Country Team’s readiness to accompany your efforts to ensure a future of shared prosperity and sustainability.