“EKONOMI Madani” by Prime Minister Anwar Ibrahim vividly portrays Malaysia’s aspiration to be at the forefront of global economic competition by setting seven medium-term targets to be achieved within ten years. With the tabling of Budget 2024 this October, the government will be able to fulfill its aspirations through effective allocation of resources in the appropriate areas. 

The first target is to be among the top 30 largest economies in the world, which Malaysia can aim for by leveraging its strong manufacturing base. In particular, its electronics and automotive industries have attracted global investments and contributed to economic growth. By fostering innovation and developing high-technology industries like semiconductor manufacturing and the digital technology sector, Malaysia can further enhance its global standing and capitalise on the growing digital economy. 

Initiatives to support startups, enhance digital infrastructure, and promote digital transformation across industries can create new opportunities for businesses. Additionally, strategic investments in infrastructure, such as the East Coast Rail Link and the expansion of ports, can improve connectivity and boost trade, making Malaysia an attractive investment destination. 

Implementing reforms to enhance ease of doing business, promoting sustainable practices, and investing in education and skill development, including digital skills, will also play a crucial role in helping Malaysia achieve this aim. 

The second target is the aim to be within the top 12 in the Global Competitiveness Index by enhancing its business environment, innovation, and human capital development by implementing reforms on business processes and promoting collaboration between universities and industries. This will drive innovation and create a knowledge-based economy. Investing in education and skill development will further enhance Malaysia’s human capital and workforce productivity.  

Malaysia has already established technology hubs like Cyberjaya and invested in educational institutions that prioritised STEM (Science, Technology, Engineering, and Mathematics) fields.   

The third and fourth target is to achieve labour income and female workforce participation goals. Malaysia needs to ensure equal employment opportunities, promote affordable and accessible childcare options, review labour policies to address gender disparities in wages, and provide support for female entrepreneurs to encourage more of them to join and remain in the workforce.  

Investing in education and skill development, particularly in fields with high labour income potential, and eliminating gender stereotypes through awareness campaigns will empower women to pursue rewarding careers.  

The fifth target is to achieve a rank within the top 25 in the Human Development Index (HDI). To do this, Malaysia can allocate more resources to improve the quality of public schools and ensure equal access to education for all. By investing in healthcare infrastructure, increasing the availability of medical facilities, and providing affordable healthcare services, the country would enhance its population’s health and life expectancy and improve its HDI ranking.  

The sixth target is where Malaysia can implement robust anti-corruption measures and promote a culture of transparency and accountability. Strengthening the independence and effectiveness of anti-graft institutions such as the Malaysian Anti-Corruption Commission will be crucial. Implementing electronic governance and digitalising government services can reduce opportunities for corruption and enhance transparency. 

The country can also introduce laws that protect whistleblowers and encourage reporting of corruption. Additionally, public awareness campaigns and ethics training for public officials and private sector employees can foster a culture of integrity in all aspects of society. By demonstrating a strong commitment to combating corruption and ensuring effective enforcement, Malaysia can improve its Corruption Perceptions Index ranking and gain international recognition as a transparent and corruption-free nation. 

The seventh target is where Malaysia can implement prudent fiscal management and focus on revenue enhancement and expenditure control. Increasing tax collection efficiency and expanding the tax base can boost government revenue. At the same time, the government can rationalize spending and prioritize key areas such as education, healthcare, and infrastructure while cutting back on non-essential expenses.  

Implementing performance-based budgeting can ensure that public funds are allocated efficiently and effectively. Moreover, Malaysia can explore public-private partnerships for infrastructure projects to share the financial burden and attract private sector investments. By exercising fiscal discipline and implementing revenue and expenditure reforms, Malaysia can work towards achieving a sustainable fiscal deficit level of 3% or lower and maintain economic stability and growth. 

By diligently implementing these strategies and maintaining a strong commitment to economic progress, Malaysia can chart a path towards sustainable and competitive economic development, transforming itself into a dynamic and prosperous economy within the global landscape. – September 20, 2023.  

* Paul Anthony Mariadas and Uma Murthy read The Malaysian Insight.   

* 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.