The Ministry of Economy has a significant portfolio of being the planning and coordinating ministry for the government. This ranges from the most important policy papers, such as the 13th Malaysian Plan, to handling the development expenditure, and undertaking long-term economic reform.
“A key pillar of this agenda entails jumpstarting the labour market. Our stagnant wages have created a wage compression effect, particularly for those just entering the labour force. This is pervasive for our prospects, as the bedrock of our economy lies in the quality of our talents. That is why implementing the Progressive Wage Policy is critical to incentivising, on a voluntary-basis, companies to start pushing wages upwards, said Ministry of Economy Deputy Secretary General (Policy) Datuk Dr. Zunika Mohamed (pic) said at the opening of the National Economic Forum (NEF) 2024 orgainsed by the National Chamber of Commerce and Industry of Malaysia (NCCIM) today.
At the forum held under the theme of “Strategic Innovation & Global Alliances: Propelling Malaysia to the Forefront of the Global Economy” she added that making the labour market lucrative is one of the structural pain points in Malaysia’s economy, particularly for our small and medium enterprises. That is why initiatives like Academy in Industry and Reverse Linkages are pivotal to elevating our workforce, and ensure there’s sufficient fit for the demands for our SMEs.
“This is part of an intentional effort to consolidate the public sector’s resources through policies such as PADU and subsidy rationalisation. We embarked on a historic data collection exercise that will facilitate data-driven policymaking. This will help to minimise the inclusion and exclusion errors that will be fundamental to our retargeting efforts,” Dr. Zunika, who represented Economy Minister Rafizi Ramli at the event, said.
At the same time, when charting the future pathway of the Malaysian economy, the ministry also has to grasp the new growth verticals that are present. This is why careful planning in the form of the KL20 and the National Energy Transition Roadmap (NETR) bridge Malaysia’s economic gaps.
With the former, KL20 presents a new vertical for startups to access newfound capital, have the mentorship from international venture capital firms, and the energy of a digital savvy youth. This has generated a lot of buzz across not just Malaysia, but the entire region, and will accelerate the ministry’s efforts to become a more highly skilled, high growth economy.
With the latter, the NETR has been well received by industry players and the market as a whole. As the nation pushes for energy transition, championing of six levers for green transformation which will unlock up to RM1.85 trillion in investment opportunities. This will have a multiplier effect for the economy and will be a new growth driver.
“As we take a step back, we recognise the greater context where we face stark realities of an ageing population, brain drain, and a strained fiscal bill. Whilst challenging, reforms have to be equally firm to set our economy in the right direction.
“However, to get there, there has to be cross partnership between the public and private sectors. In fact, it hinges on the dynamism and agility of the private sector – to guide the nation on what is needed, how to get there, and what it will take,” she said. Dr Zunika explained, so long as the nation keeps steady to the plans, engage with stakeholders, and deliver these long needed reforms, Malaysia will be able to finally fulfil its potential. “By successfully overcoming the challenges of our time, we can transform our economy and Malaysia’s future.”
