PETALING JAYA: Latest figures show that Malaysia’s economy has performed well despite various global uncertainties, with the Madani Economy framework reflecting Putrajaya’s commitment to implementing reforms, say economists.
However, the experts contend that there must be stronger public engagement so that regular Malaysians can better understand the Madani Economy Framework that was launched last year.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the government has been committed to implementing unpopular decisions such as rationalising diesel and electricity subsidies, among others.
“On that note, it was never an easy feat for the government. Hence, I would say the present administration has delivered their reform agendas,” said Mohd Afzanizam when commenting on the launch of the 42-page Madani Economy one-year report by the Finance Ministry yesterday.
“With this information, the rakyat can form their own opinions in a fair manner as it is driven by facts.”
However, he maintained that the Madani Economy Framework can only be better understood by the public if there are more engagement sessions or discussions.
Economist Geoffrey Williams said the improving economic situation was largely due to conventional economic policy and a less interventionist approach by the government.
He is also of the opinion that the Madani Economy Framework has not been clearly or properly understood.
“It is unconventional and overly complex. So, any efforts to improve are welcome.
“The people will judge the policy based on whether or not they are better off and are able to cope with the cost of living through a higher income,” he said.
At the same time, Williams said the government still has space for improvement as there are many policies in the pipeline, such as the refinements to the Progressive Wage Policy and the effective rollout of the Central Database Hub (Padu).
He said it is also important to address pressing issues such as pension reforms, the retirement crisis, and income inequality, among others.
Institute Masa Depan Malaysia fellow Dr Shankaran Nambiar said he has no doubt that the economy is performing well, as the one-year Madani Economy report highlighted a better than expected GDP growth of 5.9% and impressive trade figures, among others.
“All indicators do point to a healthy economy that is doing well on many counts,” said Nambiar, who acknowledged that Malaysians will have their own assessment of the economy based on their “own metrics”.
“These could be very micro in nature, and they could include the cost of breakfast at a mamak, how long one has to wait at a hospital to get an appointment, the presence of foreign workers, and others.
“The government will have to keep its ears close to the ground.
“There is a lot that must be done in adjoining areas that ultimately will impact the economy, such as education, healthcare and social safety nets,” he added.
