New cabinet must prioritise tackling economic issues, say interest groups
PETALING JAYA: People’s issues – cost of living pressures, economic recovery and spurring investments – are the key issues that the new Cabinet must deliver amid a challenging 2024 outlook, say economic experts and business groups.
They say the new line-up must work fast to tackle the economic challenges, while delivering the promised key electoral and institutional reforms to demonstrate their capacity for governance.
Institute for Democracy and Economic Affairs (Ideas) chief executive officer Dr Tricia Yeoh said through the restructuring, the government is sending the signal that the issues of economy, health and cost of living are the key areas of focus, as seen in the new appointments.
She noted that the appointment of Datuk Seri Amir Hamzah Azizan as the Second Finance Minister in Prime Minister Datuk Seri Anwar Ibrahim’s latest Cabinet line-up has been “highly anticipated”.
The former EPF chief executive officer’s appointment is also likely to be welcomed by the market, given his strong corporate background, having been in Tenaga Nasional Bhd and MISC Bhd before joining EPF, said Yeoh.
“This appointment will strengthen the Finance Ministry’s policy execution and hopefully speed up the ministry’s plans towards fiscal consolidation,” she said.
Meanwhile, Yeoh said the new Domestic Trade and Consumer Affairs Minister Datuk Armizan Mohd Ali will have to focus on addressing cost of living issues, which has been the primary driver of dissatisfaction among voters in their perception of Anwar’s administration.
She also said the return of former ministers Gobind Singh Deo and Datuk Seri Dr Dzulkefly Ahmad to the Cabinet in their respective roles as Digital Minister and Health Minister was interesting as they had experience under the previous Pakatan Harapan administration.
Prof Dr Chung Tin Fah of HELP University said the new Cabinet must focus on delivering its manifesto promises, including bringing down cost of living, creating a more equitable social class, raising investment to grow the economy, and higher wages to share in growth prosperity.
“Investments and productivity are key drivers to help achieve these seemingly diverse goals,” he said.
Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said the government has to execute the promised reforms and policies to strengthen the country’s economic resilience against the still uncertain global environment in 2024.
“The government needs to rebuild trust with the people and businesses that it can deliver better outcomes through good governance and responsible fiscal management,” he said, adding that easing cost of doing business, creating a better investment climate, mitigating the higher cost of living, and generating better income jobs should be the economic agenda.
SME Association of Malaysia president Ding Hong Sing said economic development must be prioritised as the country’s economy has yet to improve while the cost of living continues to rise.
“In this regard, our expectations are high for the Second Finance Minister, Datuk Seri Amir Hamzah Azizan.
“With his extensive management experience in EPF, we believe he can play a crucial role in revitalising the national economy,” he said, adding that Hamzah must engage with the business sector and listen to industry suggestions before implementing policies.
“Ensuring the Minister comprehends the influence their policies may have on the business sector is pivotal. We must steer clear of any policies that could hinder our progress,” he said.
Ding also said that SMEs are more than willing to collaborate with the newly appointed Human Resources Minister Steven Sim to improve operations and drive the growth of the economy.
Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president Nivas Ragavan said the reshuffling is expected to serve as a positive beginning for 2024, particularly in bolstering efforts to enhance economic growth.
The government’s immediate focus must now be to address issues such as unemployment, inflation and economic recovery, said Nivas.
“The foreign direct investments secured in 2023 by the Investment, Trade and Industry Ministry during the trade delegations to various countries especially China and the United States should be quickly realised in 2024 so that adequate employment, business opportunities in the supply chain, and significant growth of the gross domestic product can be attained.
“We also hope that the Cabinet will concentrate on more reforms in 2024,” he said.
Associated Chinese Chambers of Commerce and Industry of Malaysia president Tan Sri Low Kian Chuan said the new Cabinet must work to implement promised reforms and policies.
Low emphasised the necessity of improving income levels and mitigating the impact of the rising cost of living, as well as the importance of close cooperation between the ministries and civil servants to enhance public delivery of services, streamlining of business investment procedures, and the reduction in the overall cost of doing business.
Low added the new ministers should prioritise these key areas, acknowledging the pressing need to address the cost of living challenges that Malaysians face.
Malay Chamber of Commerce president Norsyahrin Hamidon said the country’s economy has not fully recovered and numerous SMEs continue to face significant challenges.
He hoped that the new ministers, especially the Second Finance Minister, would quickly inject their expertise towards economic recovery and the strengthening of businesses, though he added that it is important that the new Cabinet members be given six months to demonstrate their capabilities.
