Prime Minister Datuk Seri Anwar Ibrahim launched the Ekonomi Madani: Memperkasa Rakyat initiative on July 27 with the aim of restructuring the economy and improving the quality of life for Malaysians. Economist Dr Nungsari Ahmad Radhi explains that Ekonomi Madani is based on the philosophy that economic development is influenced by social factors and societal norms. The initiative emphasizes the values advocated by Malaysia Madani and aims to reform and transition the country to a better economic trajectory.
Unlike previous policies such as Vision 2020 and the New Economic Model (NEM) that focused solely on growth targets, Ekonomi Madani aims to generate growth that benefits both the people and the nation. The initiative involves strengthening governance and monitoring, providing social safety nets, generating growth and competitiveness, and fostering collaboration between the public sector, private sector, and third sector.
Dr Nungsari dismisses claims that Ekonomi Madani is similar to the NEM, pointing out that the NEM was not based on societal and cultural aspects and was not implemented correctly. He explains that Malaysia’s economy is still reliant on low-wage sectors such as agriculture, commodity, and manufacturing, as well as low-income domestic markets. To transition to a new trajectory that benefits the nation and its people, Malaysia needs to enhance national competitiveness, expand foreign trade, and increase the presence of Malaysian companies in international markets.
In terms of addressing the rising cost of food, Dr Nungsari explains that inflation is driven by global factors such as conflicts and interest rate hikes. The government has taken measures to control inflation, improve financial management, and provide subsidies and cash assistance to targeted groups. However, the weak value of the ringgit compared to the past contributes to higher food prices. To strengthen the ringgit’s value, Malaysia needs to develop competitive companies capable of exporting to international markets and expand international trade.
Regarding the common people not feeling the benefits of foreign direct investment (FDI), Dr Nungsari acknowledges that significant investments take time to materialize and create job opportunities. He stresses the importance of skills development and preparing the workforce for these opportunities.
Credit: The Star : News Feed
