MALAYSIA can exit the middle-income trap if the country can resolve communication issues, the digital divide, and channel new investments to certain sectors, said Communications and Digital Minister Fahmi Fadzil.

He said Malaysia’s ability to attract new investments can also solve the issue of stagnant wages amid rising living costs.

“If we have clear direction, we are more strategic in raising funds and investments, then economic growth will happen but the basis is political stability,” he said at the monthly Communications and Digital Ministry assembly in Putrajaya today.

He said efforts to realise the Madani Economy should be holistic because there is no other way to solve basic economic problems without tweaks to pre-pandemic plans.

Madani Economy is a revival framework announced by Prime Minister Anwar Ibrahim on Wednesday. It is expected to bring an overflow of revenue.

“For Malaysia as a country that looks far into the future, the first thrust is the digital economy, and the second is renewable energy,” Fahmi said.

He said these thrusts will provide huge investment opportunities, focusing on several sectors for downstreaming.

“This is so we are no longer just a country that exports crude oil, palm oil and semiconductors, but an (exporter of more specific commodities), and Malaysia can become a leading producer of some of these goods,” he said. – Bernama, July 31, 2023.