Dear Malaysia,
Selamat Hari Malaysia!
I am proud to join all of you in celebrating our upcoming 62nd Malaysia Day. This is the fifth consecutive year that I am sharing my thoughts with all of you. The responses have been encouraging and I have enjoyed engaging with many of you who contacted me personally.
Since my last essay, there have been several developments both on the local and international fronts. Globally, the international rules-based order we had in place for decades is under severe stress and strain, amplifying the era of seemingly never-ending crises that we are living in.
This is not just about tariffs and trade wars, although those are bad enough. It is also about the potentially dangerous developments intensifying the rivalries between major powers.
There are many experts who say that we are witnessing the end of one era and the birth of a very different new world order. Fortunately, the news is much more positive domestically.
We have had close to three years of political stability after a period when we had four prime ministers in four years. This political stability has been instrumental in attracting investors, both foreign and domestic, that are helping our economy maintain its upward trajectory.
The unemployment rate dropped to 3% earlier this year, the lowest in a decade, according to the Department of Statistics, which also reported that inflation, at 1.2%, is the lowest in 51 months.
Malaysia’s investment figures for the first quarter of this year alone stood at RM89.8 billion in approved investments, marking a steady 3.7% year-on-year increase. Foreign investments accounted for RM60.4 billion, whereas domestic investments contributed RM29.4 billion.
While those are very encouraging news, we cannot become complacent. The impact of these economic realities on the ground is somewhat uneven and not all Malaysians are benefitting equally.
For instance, while the overall inflation is low, certain segments of the economy are experiencing price increases which are higher than the inflation rate. And while Malaysia’s unemployment rate has dropped, underemployment has been rising, largely due to a persistent skills mismatch in the jobs market.
In this context, the 13th Malaysia Plan launched by the government outlines a forward-looking framework that aspires to transform Malaysia into a high-income, equitable and compassionate nation. It seeks to equip the country with the necessary resilience to navigate the turbulent waters of this uncertain era.
It also makes me proud to see Malaysia gaining positive international recognition for championing peace and promoting values-based leadership.
