The Eighth Malaysia Plan (8MP) will emphasise on preparing the country for a knowledge-based economy without compromising moral values and social harmony, said Prime Minister Dr Mahathir Mohamad in Parliament today.

In his 90-minute speech, the premier stressed the importance for the use of knowledge in all economic spheres, including agriculture, manufacturing and government sectors to create greater job opportunities.

Mahathir also emphasised the need to defend the country from any negative influence which could be detrimental to the nation's well-being.

"We need to make sure that we are capable of defending ourselves against the negative influence which might destroy moral values, harmony and tolerance in society," he said when unveiling the RM110-billion five-year plan.

Finance Minister Daim Zainuddin was present in Parliament for the announcement of 8MP amid speculations that he would be absent from the session following his decision to go on two months' leave starting last week.

The prime minister explained that strong foundations of macro-economy and the finance sector would continue to provide the basis for national economic growth under the plan.

"Our economic strength has been tested time and again by internal and external factors, the latest challenge being the speculation of our currency and stock market. But we managed to recover and continue to develop," he said.

He refuted claims by certain quarters including the opposition that the statistics on the country's economy were "falsified" and "inauthentic", adding that "those people were not able to distinguish between good and bad because of their own political interests".

Soros agrees

While commenting on the achievements of the Seventh Malaysia Plan, Mahathir defended the government's decision to impose capital control measures and not to seek help from the International Monetary Fund (IMF) since the outset of the economic crisis.

"The assault on the tigers of East Asia caused economic turmoil in this region. We created our own solutions to the problems and we did not owe IMF a large sum of money like our neighbours," he said.

"Even foreign economic experts including (international financier) George Soros had to admit that our approach worked," added Mahathir.

Meanwhile, Mahathir said the main focus for the next five years is to turn Malaysia into an international information and communication technology (ICT) hub, adding that more ICT infrastructures would be constructed in suburban areas.

Poverty and equity

Among other suggestions, the five-year plan also touched on the eradication of poverty to 0.5 percent by the year 2005 and the redistribution of wages to minimise the imbalance of earnings among ethnic groups, economic sectors and states.

It is said that the indigenous peoples and bumiputras in East Malaysia would be given primary attention in the mission to eradicate poverty.

The plan also aims at promoting greater bumiputra equity in the corporate sector to achieve the target of 30 percent by year 2010.

In light of this, Mahathir called on bumiputras to be "serious" about shaping the bumiputra trade and industry community, adding that the government would be stern and strict in selecting those to participate in the process.

"We will identify those with talents, give them intensive training in finance management and entrepreneurship and provide them with the proper work ethics. Only those qualified will be awarded the opportunities, licenses, loans and others," he said.

"Those who abuse the opportunities or money given, will be blacklisted. We want them to know that this is no short-cut scheme for wealth but a serious effort to restructure our society," warned Mahathir.

The 8MP is the first phase of the Third Outline Perspective Plan (OPP3) 2001-2010 - dubbed as The National Vision Policy - which was announced by Mahathir on April 3.

A total of RM110 billion has been allocated by the government to realise the five-year plan.

Urgent motion

Earlier, a commotion broke out in the House prior to the unveiling of the plan, when an urgent motion raised by a BN member of parliament was shot down by the deputy speaker.

MP for Kinabatangan, Bung Moktar Bung Radin raised the motion to discuss the "mismanagement of RM40 million meant for colleges and religious schools in Terengganu by the state government".

However, deputy speaker Lim Si Cheng rejected the motion on the grounds that it was not "urgent enough" and subsequently saw a wave of protest from opposition MPs.

"This motion has to be discussed now because it is slander," said PAS MP for Dungun, Mustafa Ali.

The commotion lasted for about10 minutes and ended following repeated orders to sit by the deputy speaker.