KUALA LUMPUR: Malaysia has the potential to record higher growth if all policies announced by the government today can be implemented in a timely manner, economists opined.
They believed that the Madani Economy is a form of economic road map that will spell out the key challenges that the country has to overcome, the target that it wants to achieve and the outcome that it wants to see.
“It covers wide areas from governance, digitalisation, fiscal discipline, food security and progressive income among others,” Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama.
Prime Minister Datuk Seri Anwar Ibrahim today launched Madani Economy: Empowering the Rakyat, an economic framework that outlines two main focuses.
They are to restructure the economy to the level of Malaysia as an Asian economic leader and improve the quality of life for all Malaysians.
Anwar said earlier today that Malaysia is able to achieve 5.5 per cent gross domestic growth this year, and it is not impossible to hit 6.0 per cent through reforms.
Commenting on this, Mohd Afzanizam said this would mean that the country has the potential to record higher growth if all policies can be implemented in a timely manner.
“Also, the fiscal deficit target of 3.0 per cent has been maintained and it is seen as a universal target. Achieving such a target is quite critical as it would involve the rationalisation of subsidies and taxation would need be crafted so that it receives good response from the public,” he said.
The next thing to do is to ensure that the message will get across to society in Malaysia followed by timely execution, according to the economist.
Meanwhile, he stressed that regular updates on the initiative are also crucial as investors, businesses and the public would want to know where the country is currently standing.
“This will help them shape reasonable expectation on the eventual outcome.”
Maybank group chief economist Suhaimi Ilias said that at the heart of the Madani economic narrative is addressing structural issues facing the Malaysian economy, including the middle-income trap, decline in potential economic growth, strengthening global competitiveness and improving infrastructure and public services.
“Madani Economy aims to raise Malaysia’s average annual economic growth to 5.5 per cent to six per cent over the next 10 years versus the average of 4.7 per cent per annum since 1998.
“It also wants to raise and improve Malaysia’s standing in global positions and rankings on the size and complexity of the economy, on competitiveness, human development and corruption perception index to boost the country’s attractiveness for investment.
“This is crucial, especially in strengthening existing growth industries and sectors like electronics, as well as promoting new growth areas and future economic drivers like renewable energy and digital economy,” he said.
Suhaimi said all these are with the ultimate aim of ensuring that the rakyat can and will benefit via decent and quality jobs with higher pays as well as improving the social security system and safety nets to uplift the standards and quality of life.
Separately, speaking during Bernama TV programme “Apa Khabar Malaysia – Khas”, National Chamber of Commerce and Industry of Malaysia council member Datuk Dr AT Kumararajah Tambyraja summed up the Madani Economy narrative delivered by the prime minister today as very clear and has no leaks or weaknesses.
“However, it is very important for us to practise the 5Ps which are: Penerimaan (Acceptance), Pemahaman (Understanding), Perancangan (Planning), Pelaksanaan (Implementation) and also Penglibatan (Involvement) of stakeholders to realise the narrative,” he said.
“The current model is working but the speed is not enough so you need to change the gear,” he added.
According to Anwar, Madani Economy looks forward to a broader scope setting seven main benchmarks as medium-term targets to be achieved.
First, Malaysia is ranked among the 30 largest economies in the world; Second: Our Global Competitiveness Index ranks 12th in the world; Third: The percentage of labour income reaches 45 per cent of the total income; (the 12th Malaysia Plan target is 40 per cent by 2025).
The fourth target is to raise the participation rate of women in the labour force to 60 per cent, Fifth: Human Development Index in the top 25 of the world; Sixth: Corruption Perceptions Index in the world’s top 25; and Seventh: Fiscal sustainability with a fiscal deficit reaching three per cent or lower. –Bernama
