MY initial reaction to the Madani economy speech by Prime Minister Anwar Ibrahim was that this was a mini-budget announcement. Indeed, there were elements of “goodies” being handed out such as the RM300 special appreciation assistance for civil servants, the RM200 for pensioners, and the RM100 e-wallet transfer to all Malaysians earning less than RM100,000 a year. But a more careful reading between the lines drew me to the catalytic potential of this speech to propel the country towards what Deputy International Trade and Industry Minister Liew Chin Tong likes to term as Malaysia’s “second take-off”.

Firstly, there are substantive policy announcements that can generate exciting economic activities that have high multiplier effects, especially in the longer term. For example, the formation of GovTech Malaysia can not only lead to improvements in the delivery of government services via digital channels but it can also open new opportunities for the private sector to introduce innovative products and services via a whole-of-government approach. For example, private sector operators of last-mile connectivity services such as e-hailing and e-scooters can tap into real time public transport operations data so that customers can travel with greater convenience and better planning. Singapore’s GovTech has led to several initiatives such as the National Digital Identity, the Codex e-payments platform, and the Smart Nation Sensor platform, just to name a few, all of which have accelerated private sector economic activity in the island nation.

Low-hanging fruits such as relaxing the Malaysia My Second Home requirements and facilitating tourist entry through visa on arrival and the return of the 15% tax rate for knowledge workers in Iskandar Malaysia (which was earlier available through the Returning Experts Programme under TalentCorp) is a positive signal that Malaysia will be more open to foreign talent coming to our shores. This will be welcomed by the expatriate community and multinational companies expanding and starting new operations in the country.

Secondly, the speech provides a framework and a reference point for other ministries to launch their own set of initiatives and roadmaps in various policy areas under their respective jurisdictions. Deputy Prime Minister Ahmad Zahid Hamidi, who is also the rural and regional development minister, has already announced he will put forth his ministry’s own economic plan next week, following the prime minister’s speech.

Examples of substantive projects, policy updates, strategic enablers, and upcoming legislative initiatives could be found at the launch of the National Energy Transition Roadmap (NETR) at the Invest Malaysia 2023 event organised by Maybank and CLSA.

Standard setting projects with already identified champions such as an Integrated Renewable Energy Zone under Khazanah, Hybrid Hydro-Floating Solar PV projects at dams and reservoirs under Tenaga Nasional Bhd, and the development of a Green Hydrogen Hub in Sarawak under the Sarawak Energy Development Corporation are some of the more interesting projects announced under the NETR launch. What is important to note is that the planning and rollout of these projects will also spur the development of relevant government policies such as regulations to allow for floating solar farms to be installed on water bodies that will pave the way for other private sector entities to propose and bid for future projects. The development of these policies is a necessary step for the growth of the RE sector in the country. With more clear-cut policies, the funding for these projects, which will mostly come from the private sector, can also be unleashed.

At the same time, a new legislation – the Energy Efficiency and Conservation Act – was also announced at the NETR launch.

I am confident the New Industrial Master Plan 2023 by the International Trade and Industry Ministry will have elements that mirror the NETR from the project, policy, enabler, and legislation standpoints.

Thirdly, the launch of these plans and initiatives following the Madani economy speech will not only provide the momentum for greater policy clarity and direction for the private sector, but they will also contribute to the crafting of Budget 2024. With good policy designs and effective implementation, these measures can quickly snowball into an ecosystem that can provide real economic momentum for the country across major sectors of the economy.

Of course, the success of these initiatives is partly dependent on how well the key performance indicators (KPIs) are designed and tracked. This is where each ministry needs a strong project management and tracking team. Not only must the KPIs be tracked at the individual ministry level, the Prime Minister’s Office must also put in processes where these achievements (and gaps) can be communicated to the prime minister for further action.

With a whole-of-government approach involving the civil servants working as a team and not in silos, and the individual ministers playing their effective leadership roles, and the prime minister acting as the conductor of the orchestra, I am confident that “Ekonomi Madani” can propel Malaysia to a “second economic take-off” of higher wages and a better standard of living and allow us to build a better Malaysia together. – July 28, 2023.

* Prof Dr Ong Kian Ming is former deputy international trade and industry minister.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.