A MORE dynamic development landscape necessitates economic, fiscal, governance and institutional reforms.
It would require steadfast commitment from stakeholders that will in turn strengthen good governance in managing the national treasury, administration and public institutions as well as upholding the principles of accountability and integrity.
The government has articulated this through the Malaysia Madani aspiration, in which the Madani Economy framework represents the comprehensive plan to push through reforms to enhance governance, improve public finance management and strengthen business competitiveness to build a better and sustainable Malaysia.
Under these measures and initiatives, the country’s performance on governance, accountability and transparency strengthened, reflected by Malaysia’s improved ranking in the 2023 Corruption Perception Index (CPI) to 57 from 61 in 2022 on efforts to combat corruption.
To accelerate reforms, the government in May 2024 formed the Special Task Force on the CPI with a mandate focusing on institutional, policy and legal reforms to enhance the country’s CPI ranking over the next decade.
The task force priorities would be on enforcement, public fund management, business competitiveness, investment risk, legislation and strategic communication.
The task force was complemented by the Madani Economy framework’s all-of-Malaysia approach to reform the legal and institutional framework, to empower integrity and accountability and to strengthen public finance management.
Under the Law and Institutional Reform Agenda Implementation Committee established in April 2024, the government in June 2024 undertook comprehensive engagements to set up Ombudsman Malaysia as an independent body to manage public complaints against government ministries and agencies.
Amendments were also proposed for the Whistleblower Protection Act 2010 to provide greater clarity and ensure investigations would be conducted impartially, while the government continues to conduct comprehensive and in-depth study on the separation of powers of the attorney general and the public prosecutor.
In the area of institutional reforms, the government has issued several guidelines for the prudent and diligent management of state-owned enterprises.
To reform parliament, the government has also taken steps to reintroduce the Parliamentary Service Act that was repealed in 1992, to strengthen the separation of powers and grant parliament greater autonomy to determine policy and governance.
To ensure the voice of the underprivileged would continue to be heard, the government has also proposed the establishment of the Madani Mediation Centre that focuses on addressing demands and disputes collaborating with key stakeholders.
To tackle corruption across the government and private sectors, the National Anti-Corruption Strategy 2024 to 2028 was developed as a comprehensive approach while a special task force would be established to implement recommendations regarding treatment of detainees in custody.
For the strengthening of public finance management, the Public Finance and Fiscal Responsibility Act 2023 came into effect in 2024 making the finance minister more accountable while institutionalising the role of the Fiscal Policy Committee.
Following the amendment to the Audit Act 1957, the auditor general’s role was expanded to include auditing entities receiving government financial guarantees.
As part of initiatives to accelerate the country’s economic growth while managing fiscal challenges, the Public-Private Partnership Master Plan 2030 was launched in September 2024 prioritising competitive bidding to enhance competitiveness, innovation, service quality, and provide value to the government and public.
