PM Anwar Ibrahim stresses the need to revamp the MY economic structure to boost growth

Malaysian prime minister, Anwar Ibrahim has said in a speech that the Malaysian economic structure will need to undergo a revamp in order to be a leader in Southeast Asia. He made these remarks during a speech about empowering Malaysia through the MADANI economy. 

Double hatting the role of prime minister and finance minister, PM Anwar said that one of the prominent issues that is hindering the success of the economic system is the premature slowing down of growth in the early stages of the country’s efforts towards development. One example of this, as highlighted by PM Anwar, is the decline of the manufacturing sector which fell below the level of 25% of the country’s GDP. 

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One of the ways in which PM Anwar aims to address this issue is with a new industrial master plan (NIMP) which will invigorate industrialisation and push the economy forward. “In the short term, the mid-term review of the 12th Malaysia plan, which will be presented in parliament, will provide space for the government to reassess and prioritise, including striking a balance between moderate-term growth and a more sustainable fiscal policy,” PM Anwar said. 

Becoming an economic powerhouse should be the primary focus for Malaysia, PM Anwar thinks. To achieve its target of becoming one of the top 30 largest economies in the world in the medium term, PM Anwar said that Malaysia will need to think globally and internationalise the economy to generate prosperity. 

“If we are just satisfied with the status quo, it is expected that our economic growth will continue to grow between 4 to 5%. However, if we work hard towards implementing reforms aligned with Ekonomi MADANI, we are more than capable to reach 5.5% and I believe that it is not impossible to reach even up to 6%,” he explained. 

Another way to establish greater economic growth, according to PM Anwar, is with a greater economic integration with neighbouring countries. This is especially considering the supply chain constraints, which would require the need to nurture more high-competitive local companies to penetrate the ASEAN regional market. 

To fully maximise its potential, Malaysia will need to go beyond free trade agreements. Trade diplomacy and strategic arrangements can enhance the bilateral and multilateral market integration, and facilitate the movement of goods, capital, skilled workforce and technology which is shared with neighbouring countries. 

“The government will introduce outcome-based tax incentives to support and renew companies focusing on high impact activities,” PM Anwar added. 

PM Anwar has proactively been trying to capitalise on various ways to grow the Malaysian economy. Earlier this year, PM Anwar unveiled his plans to implement reforms this year to ease companies’ entry into the national stock exchange in attempts to attract more investors into the country. 

Speaking at an industry event that took place in June this year, PM Anwar said that the securities regulator and the stock exchange will expedite the process for initial public offerings and reduce time-to-market to ensure that Malaysia stays attractive and competitive, according to Reuters. Healso stressed the importance of increasing investor interest for the expansion of the Malaysia market, where he noted that the government understands the need for longer-term market and structural reforms to support Malaysia’s capital market and economic transformation, according to the New Straits Times.

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