PETALING JAYA: The country needs to broaden the Madani Economy Framework announced last July, says Deputy Investment, Trade and Industry Minister Liew Chin Tong.
He said any clarity on the economy does not mean that the nation will get rich overnight, adding that the Madani Economy Framework has clearly articulated the need to raise the ceiling and the floor.
"On July 27 last year, Prime Minister Datuk Seri Anwar Ibrahim presented his Madani Economy Framework.
"As we celebrate the anniversary of the unveiling of the Madani Economy Framework, I would like to present my interpretation of the ceiling and the floor to sharpen our thinking," he said.
Liew said that Malaysia needs to do the 3 I’s – investment, innovation, and internationalisation – very concertedly and intensively to raise the ceiling.
"To raise the floor, 3 W’s are needed – wages, women empowerment, and welfare reform," added Liew during the National Chamber of Commerce and Industry of Malaysia (NCCIM) Annual General Meeting on Friday (July 26).
He said that the clarity of policy intentions is now appreciated by the market and by the investors.
"Malaysia approved the highest amount of investment in history in 2023 and the economy is estimated to have grown by 5.8% in the second quarter of 2024," said Liew.
He said that when Anwar articulated the aspiration that Malaysia’s economy would be able to grow at 6% per annum one year ago, it was hard for many to imagine that.
"It is now not far-fetched to envisage growing at closer to 5% this year, a bit higher in 2025, and above 6% in 2026 if we get our act together and if the global conditions are in our favour," said Liew.
"The Madani Economy Framework has clearly articulated the need to raise the ceiling and raise the floor, and the nation would not grow if the people are not sharing the fruits of growth," he added.
Liew said that the country's vicious cycle of low wages, low skills, low technology and low productivity has to end.
"We should come to a national consensus to end this silly situation of employing millions of unskilled foreign workers while Malaysians work as foreigners in Singapore, Australia and Korea," he said.
Liew then added that Malaysia must regain the spirit of the 1990s to tell our young generation that the opportunities are here, and we build the nation together.
"Making our workers richer also makes perfect economic sense. Their wages will be spent in our economy and thus create stronger aggregate demand, and feed into much larger domestic consumption funded by income and not by debts," he said.
As for women, Liew said women empowerment works the same way, 65% of our public university students are women, which indicates a higher enrollment rate of women compared to men.
However, he said the balance changes upon these graduates entering the workforce, as 58% of the civil service are women.
"At the decision-making levels of the civil service, 42% are women. This is very high among developing countries. From 2023 onwards, Malaysia has mandated 30% of public listed board membership to be constituted by women, and compliance is high.
"Yet, the female labour participation rate in Malaysia is 56% as compared to 82.9% for men, which is lower than many of the Southeast Asian economies.
"It is clear that Malaysia is doing well as far as developing women leadership but women at the lower end of the workforce are finding it hard to stay due to the lack of support," said Liew.
Liew then called on businesses to bring more women into the workforce and keep them longer in the workforce.
"The more women are paid better and the longer women stay in the workforce, the richer their families would be, and the richer the whole nation would be," he said.
