THE new economy roadmap launched by Prime Minister Anwar Ibrahim today provides a comprehensive and balanced strategy in charting Malaysia on a stronger development path, a think tank said today.

Khazanah Research Institute chairman Nor Mohamed Yakcop said the blueprint, called Madani Economy: Empowering the People, can address core national challenges. 

“The strategies outlined for industrial development, digitalisation and investment are expected to boost economic activities and generate better returns to businesses and higher wages for workers in both private and public sectors.

“Recognising that focusing on economic development alone can lead to disparities between regions and communities, the outlined social protection policies appear promising in closing such gaps.

“The prominent focus on health, education and housing will raise the rakyat’s quality of life,” Nor Mohamed said in a statement.

He added that the emphasis on good governance was also key to the realisation of Madani Economy. 

“With strong political will and the rakyat’s support, the governance and service delivery reforms will strengthen the confidence of the rakyat and foreign investors, while restoring the country’s competitiveness at the international level.

“The focus of the Madani Economy on empowering the people and promoting sustainable economic growth reflects a shared commitment towards building a prosperous Malaysia,” said Nor Mohamed, who was second finance minister from 2004 to 2009.

Anwar, who is also the finance minister, revealed his government’s economic blueprint this morning, identifying the roadmap towards achieving Malaysia as an economic leader.

He said the main aim was to elevate Malaysia’s economy to be among the world’s top 30 largest in under 10 years – from number 37 last year.

This will be done by focusing on greater regionalisation and competitiveness, prioritising economic complexity and moving up the value chain.

The Madani Economy framework also sets six other medium-term benchmarks to be achieved within 10 years.

Anwar said these include being in the top 12 in the Global Competitiveness Index, employees’ compensation to reach 45% of the GDP (12th Malaysia Plan target is 40% by 2025), women’s participation in the workforce at 60%, top 25 in the Human Development Index, top 25 best score in the Corruption Perception Index, and fiscal sustainability with the fiscal deficit at 3% or less. – July 27, 2023.