MALAYSIA must climb out of the middle-income trap after languishing more than two decades in the upper middle-income bracket according to World Bank classification, Deputy Prime Minister Ahmad Zahid Hamidi said.

Zahid said if Malaysia fails to elevate its competitive advantage and attractiveness as a centre for investment, its competitors will forge ahead and this will affect national prosperity and the people’s well-being.

He said the government is committed to creating an economic environment where every Malaysian can fulfil their potential, where entrepreneurs and the spirit of entrepreneurship are of the upmost importance.

“Toward this end the government will continue to cut red tape that hinders businesses and entrepreneurs. Making profit, paying your fair share of taxes, and creating quality employment is a good thing, it must be facilitated at all levels of government be it federal, state or local.

“There must be a continuous mind shift that the private sector is the main engine of growth for the nation; it must prosper for the nation to prosper. Malaysia must get out of the middle-income trap we are currently in and take our rightful place as a high-income nation within the next five years,” he said.

Zahid said this in his speech when officiating a seminar organised by MarkPlus Institute Asean titled “Entrepreneurial Marketing: How to Grow your Business Post-Pandemic” in Kuala Lumpur today.

The deputy prime minister said in the last three years, Malaysia had seen how businesses were forced to face a host of global challenges during the Covid-19 pandemic.

He said moving forward post-pandemic, technology is still the most important factor that continues to change the socioeconomic landscape and influence consumer choices, along with the people’s level of know-how.

“The full value of technology will, in the end, still depend on the human factor. Yes, it is true that to a certain extent using technology does help businesses to grow and profit, but it has its limits as in the final analysis it is the people, the talent behind the application, machine and processes that determine the level of outcome.

“Nevertheless in this age of technology, to achieve optimum results, man and technology must continue to be fused together more efficiently and seamlessly. This is true for any organisation not only to survive but thrive,” he said. – Bernama, February 9, 2023.