By Syafirah Mohd Shahar, Multipotentialite
According to Free Malaysia Today, Perikatan Nasional chairman Muhyiddin Yassin has recently voiced concerns about Prime Minister Anwar Ibrahim's economic policies, suggesting they have made people's lives more challenging. However, economists offer a counterpoint, asserting that the Madani economic policy has yielded positive outcomes within a relatively short timeframe.
Muhyiddin highlighted issues such as a lower-than-projected GDP growth and a downward trend in trade figures. Economist Idham Razak of UiTM Melaka, drawing from data provided by CEIC Data, rebuts this claim by emphasizing a significant increase of almost RM7.4 billion in foreign direct investments (FDI) in September 2023. This surpasses the growth observed in the previous year, indicating heightened investor confidence in Malaysia's economic prospects.
Addressing Muhyiddin's concern about the withdrawal of bulk subsidies and increased taxes impacting the cost of living, economists underline the effectiveness of the Madani economic policy. Goh Lim Thye of Universiti Malaya notes that net FDI more than doubled in the third quarter of 2023, attributing this to the policy's goals of elevating Malaysia's global economic standing and fostering a conducive investment environment.
Despite Muhyiddin's criticism of Prime Minister Anwar for allegedly suppressing political opponents instead of addressing economic issues, economists argue that the Madani economic framework, launched less than a year ago, is already bearing fruit. The policy, which aims to achieve seven key targets within a decade, focuses on demand-driven education and strengthening cooperation with industries and employers.
Another point of contention raised by Muhyiddin is the rationalization of subsidies. Anwar justifies this approach, stating that it ensures subsidies for essentials benefit those in need while maintaining fiscal sustainability. Economist Ahmed Razman Abdul Latif of Putra Business School points to positive quarterly GDP growth as an indicator of the Madani policy's success, emphasizing the importance of accountability, transparency, and effective policy execution.
In conclusion, the economic landscape of Malaysia is a complex interplay of policies, geopolitical factors, and global economic trends. While Muhyiddin expresses concerns about the challenges faced by the people, economists argue that the Madani economic policy is proving to be a catalyst for positive change. Through ongoing dialogue between policymakers and economists, Malaysia's economic trajectory will continue to take shape, and the effectiveness of these policies will ultimately be measured by their long-term impact on the well-being of the citizens.
Syafirah Mohd Shahar is an HR enthusiast, economics geek, and seasoned media contributor. With a strong background in Human Resource Management and Economic Analysis, she has made significant contributions in roles spanning HR leadership, project management, and data-driven decision-making. Syafirah's ability to solve complex problems and her effective communication skills have been key assets in her career. Her work experience includes collaborations with reputable organizations such as DELL, JABIL, and more. As a dynamic professional, she continually seeks opportunities to drive positive change and make a lasting impact.
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