Madani Economic Framework has helped the economy, but it can still be stretched
PETALING JAYA: The Madani Economic Framework has produced some improvements in the economy, but experts and consumer groups feel that more needs to be done to address “deep structural systemic issues” before tangible results can be achieved.
Economist and policy specialist Geoffrey Williams said the general macroeconomic environment has improved, with inflation returning to normal levels, interest rates stabilising, economic growth continuing and the ringgit strengthening.
“In terms of the overall fiscal position, the increased spending is conservative; there is an emphasis on cutting wastage, leakages and corruption, especially through diesel rationalisation, and the deficit is likely to be reduced,” he said when contacted yesterday.
However, Williams said there were many policy initiatives still in the pipeline, including the effective rollout of the Central Database Hub (Padu) to target social assistance as well as the finalisation of the Progressive Wage Policy.
He said the government should also prioritise other pending initiatives such as the pensions reform and retirement crisis, raising incomes, the underemployment of two million people, a potential higher education funding crisis, persistent income inequalities and opportunities, and reform of taxes and spending.
Prime Minister Datuk Seri Anwar Ibrahim is expected to present the Madani Economy report during his address at the closing ceremony of the Southern Zone Madani Rakyat (PMR) Programme 2024 tomorrow.
His presentation will follow on the heels of another special address on the civil servants’ pay review today.
The Madani Economic Framework, aimed at boosting the Malaysian economy, was launched on July 27 last year. Its goal is to elevate the status of the country through seven key performance indicators as medium-term targets to be achieved within 10 years.Centre for Market Education (CME) chief executive officer Carmelo Ferlito said it was still too early to evaluate the performance of the Madani Economic Framework.
“I think that the most significant initiative is the subsidy rationalisation. However, we will only start to see its effects and results once the plan is applied to RON95 (petrol).
“Despite some good points in the Madani Economic Framework or the industrial plan, I think there is still a long path to build a truly business-friendly environment, with a pro-market approach.“Too little has been done to rationalise spending in general, reform government-linked companies or harmonise the tax system. On the other hand, initiatives like e-invoices remain quite questionable and a burden for small businesses,” said Ferlito.
Federation of Malaysian Consumers Associations (Fomca) vice- president and legal adviser Datuk Indrani Thuraisingham agreed that some initiatives under the Madani Economic Framework will take time to yield results.
“This is because we are tackling structural and systemic issues that have been ongoing for quite some time.
“We won’t see immediate positive results,” she said, citing the management of public spending and high cost of living as some of these persistent issues.
Indrani said she hopes the government could enhance enforcement and monitoring of policies to ensure targeted groups genuinely benefit from such programmes.
“Having a report card is a good start, but more can be done to keep the momentum going, specifically in providing services to the public,” she said. “Issues such as the rising cost of living and transportation and health matters are close to the rakyat and should be addressed effectively.”
She added that several initiatives under the social protection framework, such as social assistance programmes to help vulnerable groups, sometimes overlap at the federal and state levels.
“If the Madani government can ensure better cross collaborations, things will be better for the rakyat,” she said.
