Safer roads pay long-term dividends, say economists


PETALING JAYA: Safer roads don’t just mean fewer lives lost – having them frees billions of ringgit for Malaysia to invest in its people and infrastructure, say economists.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said education, healthcare and infrastructure are among productive areas where such money can be used.

Education and healthcare, he said, are also among areas that could be prioritised.

“Education prepares the future workforce and entrepreneurs. Healthcare is important for the longevity of our citizens and productivity.

“At the end of the day, healthy workers contribute to the country’s productivity,” he said.

Putra Business School professor Dr Ahmed Razman Abdul Latiff said public resources currently devoted to dealing with accidents could be redirected to more productive purposes.

He said healthcare and education are among areas the resul­ting economic dividend could support if accident rates and fata­lities were substantially reduced.

“This includes strengthening preventive healthcare, primary care and medical facilities.

“There could be more investment in schools, Technical and Vocational Education and Trai­ning, universities and reskilling programmes to raise Malaysia’s human capital.”

He added that public transport and infrastructure are other areas that could see benefits through better rail networks, pedestrian facilities, motorcycle lanes, ligh­ting and safer road designs.

There could also be stronger support for vulnerable households and families that lose their main income earner.

Ahmed Razman added that the government’s fiscal capacity could also stand to benefit, as a healthier and more productive population ultimately means a broader tax base and less pressure on public expenditure.

The experts were responding to Datuk Seri Dr Ahmad Zahid Hamidi’s statement yesterday that Malaysia suffers socio-economic losses of around RM30bil last year from road accidents when the estimation was made using the Value of Statistical Life approach.

After chairing a Cabinet committee meeting on road safety and congestion in Putrajaya yesterday, the Deputy Prime Minister said this strongly suggests money for road safety is not merely expenditure but an investment that protects families and reduces losses to the national economy.

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