By Zarul Effendi Razali<\/p>\n\n\n\n
KUALA LUMPUR, Nov 23 (NNN-Bernama) — Malaysia\u2019s Unity Government led by Prime Minister Anwar Ibrahim has planned various initiatives and strategies to serve as a strong foundation in its effort to revitalise the country\u2019s economy and the people despite only being a year in office.<\/p>\n\n\n\n
Anwar, together with his Cabinet ministers, has successfully generated various strategies to improve the standard of living for the people and ensure that the nation\u2019s wealth is enjoyed equitably by all segments of the population despite facing various challenges and uncertainties in the domestic and international economies.<\/p>\n\n\n\n
In his inaugural speech as Prime Minister a year ago, Anwar pledged to address issues afflicting the people, including the rise in the cost of living, while emphasising good governance in his administration by combating corruption and moral decay.<\/p>\n\n\n\n
As a result, Anwar, who is also the Finance Minister, and the Cabinet of the Unity Government made significant progress in the face of various challenges domestically and globally to steer Malaysia back on track towards becoming an advanced nation after a year.<\/p>\n\n\n\n
The pledge is not just empty talk as the Unity Government under his leadership has successfully attracted approximately RM333.69 billion (US$71.3 billion) in potential investments and RM11.56 billion (US$1=RM 4.68) in potential exports since taking over Putrajaya.<\/p>\n\n\n\n
These investments, which come from several major countries such as the United States, China, Japan, South Korea, the UAE and Singapore, clearly demonstrate the confidence of foreign investors in the capabilities, political stability and long-term plans outlined by the country\u2019s leadership.<\/p>\n\n\n\n
Improvements and Enhancements under the Unity Government<\/strong><\/p>\n\n\n\n Director of MBA programmes and associate professor at Putra Business School, Dr Ahmed Razman, said that from an economic perspective, there are several macro indicators showing improvements and enhancements.<\/p>\n\n\n\n \u201cEspecially when we refer to the gross domestic product (GDP) growth, our country still records positive growth although it is slightly lower compared with the previous year but it still demonstrates the ability of our country to make economic progress in a challenging global environment, particularly on the global stage.<\/p>\n\n\n\n \u201cThe inflation rate continues to decrease for nine consecutive periods to only two per cent currently and we also don\u2019t see drastic hikes in interest rates such as the overnight policy rate (OPR), only three per cent,\u201d he told Bernama.<\/p>\n\n\n\n Furthermore, he said the latest data showed the unemployment rate decreased to 3.2 per cent accompanied by a continuous increase in the labour force.<\/p>\n\n\n\n \u201cOverall, we see that our country is still capable of generating income in the face of a challenging environment, unlike some other countries that are still grappling with an uncertain economic situation,\u201d he said.<\/p>\n\n\n\n On July 27, the National Energy Transition Roadmap (NETR) Phase 1 was launched by the Economy Minister Rafizi Ramli, marking the beginning of efforts to mainstream the narrative of energy transition in the country\u2019s development.<\/p>\n\n\n\n Simultaneously, Rafizi announced 10 flagship projects that are expected to generate investments totalling RM25 billion and create 23,000 high-value job opportunities.<\/p>\n\n\n\n NETR is not just a document outlining steps to achieve net-zero targets but a combination of strategies and initiatives that can transform the economy, people\u2019s livelihood and country\u2019s position on the world map.<\/p>\n\n\n\n The New Industrial Master Plan (NIMP 2030), launched on Sept 1, 2023, will breathe new life into planning the country\u2019s industrial direction for the next phase of economic growth, aligning with the increasingly challenging global environment.<\/p>\n\n\n\n The master plan takes a four-mission-based approach to drive large-scale industrial transformations, aimed to advance the economy, build a technologically advanced nation, move towards reducing carbon emissions and establish a sustainable economy.<\/p>\n\n\n\n At the recent parliamentary seating, Anwar also assured his commitment to the country and economic growth by constantly seeking opportunities to establish relationships with countries of potential to attract investors.<\/p>\n\n\n\n He said the government does not miss opportunities to hold bilateral meetings, officially or separately, with several countries while attending the 30th Asia-Pacific Economic Cooperation (APEC) Economic Leaders\u2019 Meeting that was held in the United States (US) on Nov 14-17, 2023.<\/p>\n\n\n\n Challenges of the Unity Government<\/strong><\/p>\n\n\n\n However, Ahmed Razman said every country faced unique challenges and for the Unity Government, one significant challenge lies in the weakness of the ringgit compared to the US dollar.<\/p>\n\n\n\n \u201cAt the same time, people are complaining about the cost of living. Although there are price controls on goods, the overall cost of living remains an issue that is frequently discussed.<\/p>\n\n\n\n \u201cIt may not be fair to assess the performance of any government within just a year but credit should be given if successful achievements have been obtained,\u201d he said.<\/p>\n\n\n\n He said undoubtedly, some improvements and efforts to further boost the economy would take a longer time.<\/p>\n\n\n\n According to Ahmed Razman, the assessment of a government\u2019s performance should be seen more holistically and not just for a one-year period but over the span of the administration term, approximately four to five years.<\/p>\n\n\n\n He said the Prime Minister\u2019s focus and primary agenda are to ensure that no one is left behind in terms of income and wealth.<\/p>\n\n\n\n \u201cWhen any government focuses on boosting the economy, we don\u2019t want a scenario where economic growth increases and the profits and income of companies rise but only large corporations benefit.<\/p>\n\n\n\n He said in the tabling of Budget 2023, there are commitment to eradicate hardcore poverty, aiming to improve the living standards of those genuinely below the poverty line.<\/p>\n\n\n\n Attracting Foreign Investors\u2019 Commitment<\/strong><\/p>\n\n\n\n He said this year witnessed a significant influx of foreign direct investment (FDI) commitments into the country coupled with memoranda of understanding (MoUs) with several major trading nations, all of which the impacts would not be immediately visible.<\/p>\n\n\n\n \u201cThese are investor commitments and they need time to build factories or establish their businesses in our country, hire workers and then we will see the effects where the people will begin to enjoy competitive wages,\u201d he said.<\/p>\n\n\n\n He said within a year, various reports and plans related to the economy have been presented and various existing policies have been improved or new policies introduced, meeting the expectations of business owners and investors.<\/p>\n\n\n\n Institute for Democracy and Economic Affairs (IDEAS) chief executive officer Dr Tricia Yeoh said among positions taken by the government, investors have responded well to the Public Finance and Fiscal Responsibility Act, which was most recently tabled and passed by Parliament.<\/p>\n\n\n\n \u201cThis signals that the government will use specific measures and limits to manage its public finances, for instance capping the debt-to-GDP ratio at 60 per cent (which is below the current ratio of 65 per cent).<\/p>\n\n\n\n \u201cIt has also released its slate of policy documents including the NETR, NIMP, Malaysia Madani framework and the Mid-Term Review of the 12th Malaysia Plan, which provides to the public its policy priorities,\u201d she said.<\/p>\n\n\n\n In business and trade affairs, Ahmed Razman said perception is crucial as it demonstrates the government\u2019s seriousness in implementing a particular agenda.<\/p>\n\n\n\n \u201cWhen the Madani Economy was launched, we saw many countries wanting to collaborate (with Malaysia), including during the APEC meeting recently.<\/p>\n\n\n\n \u201cFor investors, the most important thing is political stability. When there have been many changes in government leadership before, investors begin to lose confidence because if the government changes, what about the promises made by the previous government?\u201d he said.<\/p>\n\n\n\n He said investors\u2019 confidence increased when they could see signs of a stable government capable of completing its term coupled with clear documents outlining the goals to be achieved.<\/p>\n\n\n\n Echoing the view, Tricia said political stability is fundamental in ensuring investor confidence as this contributed to economic viability.<\/p>\n\n\n\n \u201cI believe there is generally a positive outlook on Anwar\u2019s administration, primarily because there has been greater political stability now than we have experienced over the last few years,\u201d she said.<\/p>\n\n\n\n The Approach in Developing the People\u2019s Economy<\/strong><\/p>\n\n\n\n Ahmed Razman said the government\u2019s strategy so far is to ensure that every assistance provided is targeted and goes to those who truly need it while reducing waste and corruption.<\/p>\n\n\n\n He said when targeted subsidies are implemented, it would be directed towards those genuinely eligible and at the same time, cash assistance to those in need would be increased, aligning with the government\u2019s original focus.<\/p>\n\n\n\n \u201cThe goods and services tax (GST), if reintroduced now, would actually cause the government\u2019s efforts to fail because this tax is based on purchases. When people spend, they will be taxed.<\/p>\n\n\n\n \u201cIf we look at household spending, the B40 group spends more on food compared with the T20 group. If GST is reintroduced and many food items are taxed, it will leave them (B40) with no surplus income,\u201d he said.<\/p>\n\n\n\n \u201c(Nevertheless) In the first year of this Unity Government, I see the focus, trend and policy orientation are more towards a gradual transition as evident in the implementation of targeted subsidies,\u201d he said.<\/p>\n\n\n\n Tricia said there is a sharper focus on fiscal consolidation, which was seen given the removal of price ceilings on chicken, subsidy rationalisation for electricity and diesel and talk of possible targeted subsidies from next year.<\/p>\n\n\n\n \u201cUltimately it is about the government laying the groundwork with independent and robust institutions, providing a strong and clear regulatory framework and a stimulating ecosystem that can invite businesses to operate in Malaysia,\u201d she said.<\/p>\n\n\n\n — NNN-BERNAMA<\/p>\n","protected":false},"excerpt":{"rendered":" By Zarul Effendi Razali KUALA LUMPUR, Nov 23 (NNN-Bernama) — Malaysia\u2019s Unity Government led by Prime Minister Anwar Ibrahim has planned various initiatives and strategies to serve as a strong foundation in its effort to revitalise the country\u2019s economy and the people despite only being a year in office. 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