Malaysia’s New Economic Blueprint
Prime Minister Datuk Seri Anwar Ibrahim has announced that the Madani Government has implemented significant structural reforms since November 2022 to guide the nation towards sustainability and shared prosperity. The government’s new policy direction is encapsulated in the Madani Economy framework, which is built on the core principles of integrity, economic restructuring, and social justice. Under this comprehensive blueprint, the government has initiated wide-ranging structural economic reforms through key initiatives such as the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap (NETR), the National Semiconductor Strategy (NSS), and the National TVET Policy 2030. These interconnected policies are designed to modernize Malaysia’s economy, prepare it for future challenges, and ensure that growth benefits all segments of society in a fair and equitable manner.
Accelerating Investment and Regional Growth
The government is actively driving investment and development across the nation. The Prime Minister highlighted the crucial role of government-linked investment companies and domestic direct investments through the GEARuP program. Furthermore, the KL20 Action Plan has been launched with the ambitious goal of positioning Kuala Lumpur among the world’s top 20 start-up ecosystems. Strategic zones have also seen successful high-tech investments, including the Johor-Singapore Special Economic Zone and Kulim Hi-Tech Park. The government’s commitment to balanced regional development is also evident in its efforts to extend these initiatives to new areas such as the Kerian Integrated Green Industrial Park, the Tanjung Malim Automotive High-Tech Valley, and industrial parks in the states of Sabah and Sarawak, ensuring that economic progress is shared nationwide.
Welfare and Governance Reforms
In addition to its economic blueprint, the Madani Government is committed to enhancing social welfare and strengthening governance. To address the rising cost of living, the government continues to implement targeted subsidies for essential goods like diesel and electricity and has significantly expanded cash assistance programs. For example, the number of recipients for the Sumbangan Asas Rahmah (Sara) program has been greatly expanded from 700,000 to 5.4 million people, now covering the entire bottom 40% income group. Concurrently, the government has initiated legal and governance reforms, drafting or amending over 80 laws. Institutions such as the Malaysian Anti-Corruption Commission and the Malaysia Competition Commission have been empowered to combat corruption, while the new Fiscal Responsibility and Public Finance Act aims to strengthen national fiscal management and reduce the budget deficit.
Uplifting Labor and National Infrastructure
The government’s reform efforts also extend to the labor market and fundamental infrastructure. The Prime Minister noted a progressive increase in the national minimum wage, which has been raised from RM1,200 to its current level of RM1,700. Additionally, a new living wage benchmark of RM3,100 per month has been set for employees of government-linked companies. These measures are complemented by the government’s focus on improving skill sets, as evidenced by a 95.6% employment rate for technical and vocational education and training graduates, with most earning above the minimum wage. Simultaneously, the government remains steadfast in its commitment to prioritizing critical infrastructure upgrades, including the repair of dilapidated schools and clinics, essential road maintenance, and the implementation of crucial flood mitigation projects.
