KUALA LUMPUR: Calling for a shift towards a more just and inclusive economic model, Datuk Seri Anwar Ibrahim stressed the need for a "humane economy" that champions social justice.
The Prime Minister expressed concern over current economic frameworks, arguing that they disproportionately benefit large corporations while leaving the marginalised behind.
Addressing the Khazanah Megatrends Forum audience here on Monday (Oct 7), Anwar reiterated his criticism of economic systems that shield big businesses through government intervention while failing to address the challenges faced by the lower-income population.
He stressed the importance of reforms focused on equitable wealth distribution and public well-being.
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"This approach looks very much like ‘socialism for the rich and capitalism for the poor,’ where the rich and powerful get to have the cake and eat it too, while the marginalised are left behind," Anwar said in his speech.
He underscored the need for the economy to prioritise the well-being of all citizens, ensuring that growth benefits everyone equally.
Anwar also highlighted the government's ongoing efforts to alleviate the burden of rising living costs on ordinary Malaysians.
He pointed out that recent subsidy rationalisation efforts and adjustments to electricity tariffs were designed to ensure continued support for the most vulnerable sections of society.
Meanwhile, the wealthy and large industries would bear a fair share of the financial burden, he added.
"We made tough decisions, including rationalising subsidies and adjusting electricity tariffs, not to inflict hardship, but to ensure that the majority continue to enjoy the benefits they deserve," Anwar said.
Although these measures were considered “unpopular,” he said they were necessary to safeguard the country's financial health and maintain long-term fiscal sustainability.
Elaborating on the government's approach, Anwar touched on the recent diesel subsidy rationalisation and electricity tariff adjustment as examples of policies aimed at achieving greater economic fairness.
He acknowledged the risk of unpopularity but said these reforms were critical to preventing financial mismanagement, which could have led to economic instability.
"If we had chosen to do nothing, knowing the path we were on was unsustainable, it would have been a dereliction of our moral duty," he said.
Anwar also highlighted the performance of the ringgit, noting that its positive trajectory was evidence of the effectiveness of the government’s structural reforms.
He linked the ringgit’s strengthening to recent economic measures that have boosted investor confidence, both domestically and internationally.
"Our measures at structural reforms are proving effective, as evidenced by the performance of the ringgit, the significant increase in investments, and the positive direction of our economic growth," Anwar said.
On Malaysia's readiness to navigate the complexities of the global economy, Anwar reaffirmed the government's commitment to making the country competitive in the face of emerging challenges.
He highlighted innovation, technology and climate policy as key drivers for future growth, all outlined in Malaysia's Madani Economy Framework.
"Malaysia is preparing for an increasingly dynamic and complex global economy. Our aim is to ensure that the country remains resilient and competitive, leveraging our strengths in technology and innovation," he said.
Anwar also noted the government’s collaboration with government-linked investment companies (GLICs) to boost venture capital financing for technological advancement over the next five years.
At the same time, he reaffirmed the government’s commitment to stamping out corruption and holding individuals accountable for abuses of power.
He said reforms would mean taking decisive action against those who exploit their position for personal gain.
"We will not compromise on our firm, decisive action against corruption and abuse of power," he declared.
"Our structural reforms must include the courage to take action against unscrupulous profiteers and power abusers without fear or favour."
The Prime Minister also reiterated his intention to end the government's practice of bailing out failing companies.
He criticised such interventions as "socialism for the rich," where large businesses benefit from state support while the lower-income population bears the consequences.
