The Madani Economy aims at restructuring the economy by making Malaysia the leader in Asia and raising the quality of life for the people. - FAIHAN GHANI/The Star
How the Madani Civil Economy will raise the country’s dignity, protect everyone’s interest
AT the launch of the Madani Economy: Empowering the People framework on July 27, Prime Minister Datuk Seri Anwar Ibrahim quoted a verse from a letter sent by Saidina Ali Bin Abi Talib to the Governor of Egypt, Malik Bin Al-Haris Al-Ashtar.
In the letter sent in conjunction with Malik’s appointment as governor in year 655 AD, Saidina Ali penned messages, among others about the responsibilities of the government towards the people and how to carry them out with honesty and fairness.
It was to convey that things must be done at the right place and in the right time. If consensus is reached, do not then try to voice your personal opinion and do not neglect the shouldered obligations because people are always watching, and you are responsible for the people.
On Dec 31, 2022, Anwar delivered the same message at the Putra Mosque in Putrajaya as part of his New Year 2023 Special Mandate (Amanat), and was reiterated during the announcement on the initiatives laid out by the Unity Government to restructure the economy of Malaysia as the pioneer in Asia and improving the quality of life for its citizens.
The launch of the Madani Economy: Empowering the People framework is the fruition derived through discussions with various parties, economists, planners, civil servants and streamlined after gathering views from workers, farmers, women, settlers and youth via a series of discourses and meetings with the people in mosques and university campuses.
This immediate effort was launched at a time when we are stuck in an economic cycle that the Prime Minister described as dangerous especially with the rising cost of loving, low wages and profits as well as lack of competitiveness.
With two main focuses outlined, the Madani Economy aims at restructuring the economy by making Malaysia the leader in Asia and raising the quality of life for the people by driving the economy, encouraging investments and strengthening local industries with more innovation and competitiveness that can propel them into the global market.
The improvement in the quality of life is designed through efforts to empower the people, regardless of status and location in order to build a better Malaysia not only for the current generation but also for the children in the future.
With the assistance and support provided by the government for the deserving lot, will see a section of the society enjoying the benefits from the country’s economic developments equally.
The focus on ‘raising the ceiling’ and ‘raising the floor’, which are the two most important components for a house has been adapted to become the symbol of holistic vision for the Unity Government’s in raising the country’s economic position while improving the dignity of its people.
In the aspect of ‘raising the ceiling’, the focus is on reforming and restructuring the economy in order to achieve more wealth by moving to a more global and complex economy to make Malaysia a regional hub, creating more success as the region’s leader while ensuring the security and sustainability of our economic model.
As for ‘raising the floor’, the focus is on the people by ensuring wealth can be shared more equitably, including creating jobs that can provide a meaningful standard of living as well as providing equal opportunities for all levels of society to achieve success and enjoying world-class services, including the improvement in the quality of education, health services and basic infrastructure for urban and rural people.
In order to realise the vision for the Madani Economy instilled with Madani values, it will require the mobilisation of support from all Malaysians to uphold the seven benchmarks set as medium-term targets. The first is to improve Malaysia’s ranking to be among the 30 largest economies in the world.
The second benchmark is to be among the world’s top-12 in the Global Competitiveness Index, followed by target set for the percentage of labour income to reach 45% of total income, exceeding the 40% target set in the 12th Malaysia Plan (RMK12) by 2025.
The fourth benchmark is to see the participation rate of women in the labour force sector reach 60%, while the Human Development Index goes up to the top 25 and the Corruption Perception Index among the top 25 in the world, followed by the seventh benchmark, which is to achieve fiscal sustainability with a fiscal deficit reaching 3% or lower.
Several long-term and medium-term policies are also designed to continue Malaysia’s growth path, among which the government and the government-linked investment company (GLIC) will invest RM1 billion in additional funds to match with private funds to support local start-ups and encourage technopreneurs, including ensuring the provision of funds for each high growth company phase.
The next effort is to improve loan scheme under Syarikat Jaminan Kredit Perumahan (SJKP) through an allocation of RM5 billion to guarantee financing up to 120% of the house price worth until RM300,000. This will allow all home ownership cost to be covered through the loan, including principal financing, legal fees, appraisal fees, insurance, furniture purchases and remodelling costs.
Apart from that, another RM400mil is provided for micro loan schemes under agencies including SME Corp, TEKUN, MARA and Teraju, and the government also agreed to prepared funds around RM1bil for an e-cash credit initiative with RM100 given to Malaysian adults earning RM100,000 per year and below. This is estimated to benefit more than 10 million people from B40 and M40 segments through the RM1 billion allocation.
The government also aims to increase jobs with dignified and reasonable wages, implement policies to increase wage rates in line with the national level, review the minimum wage level, introduce laws to guarantee the working environment as well as the gradual implementation of foreign worker levy to reduce the country’s dependence on unskilled foreign labour.
Creation of equal opportunities regardless of gender, race or background by prioritising low-income groups in terms of scholarships and boarding schools, strengthening the economic chain value for the states based on focused sectors, increasing the liveability and sustainability of cities, improving legal and regulatory aspects as well as support programmes to increase female labour participation.
Various other initiatives that are agreed by government and stakeholders, including creating a social protection network for all through Social Insurance benefiting over 40% of the formal and informal workforce sectors who do not have proper retirement savings, in addition ensuring the level of the retirement savings were adequate and as well as strengthen the social safety net of the people.
Reforms on health services, education and human resources are also given priority by the government, this is in addition to the efforts in improving the health sector based on the guidelines set in the Health White Paper by treating patients using the preventive concept and guaranteeing education provision for all Malaysians.
Focus is also given through the plans to merge land public transport management by optimising all existing assets and improving the ‘last mile connectivity’ issue as well as basic facilities. Basic infrastructure with access to water supply in Sabah and Kelantan for that all the people are also being resolved.
In order to help people own their own homes, the framework for the Madani Economy has sets affordable housing targets for all, drawing up the National Housing Action Plan that includes the supply of houses based on metrics such as the capping (catuan) of median house prices based on median income, continuation of public housing and stimulating the rental market as an effort to meet the housing demands.
In order to reach the ‘ceiling’, the Malaysian economy will be developed in line with efforts to make it a leader in Asia. Importance are given towards the guidelines containing seven focuses including topics on ASEAN regional agenda, investment aspects, expanding the market and local business potential, Islamic economic leaders as well as efforts to boost micro-entrepreneurs and the informal sectors, boosting green growth for climate protection, incorporating aspects of land use and food security.
Realistically, the main policies and benchmarks set as medium and long-term targets for the continuation of Malaysia’s trajectory in the Madani Economy can be achieved with the collaboration from all the ministries via specific frameworks including the Industrial Master Plan, Malaysia’s National Energy Transition Roadmap (NETR) and the Kajian Separuh Penggal RMK12.
