Madani Economic Narrative: Amalgamating All Plans to Set the Future Development Goals and Address Structural Issues

The Madani Economic Narrative is a comprehensive roadmap for Malaysia’s future economic development, aiming to address structural issues and set clear growth goals. It focuses on improving global competitiveness, promoting green growth, digitalization, and food security, in line with previous development plans like the 12th Malaysia Plan.

The narrative sets seven high-level goals, including becoming a top 30 global economy, achieving top 12 competitiveness, and reaching top 25 in the Human Development Index. Other objectives include increasing labor income, improving the Corruption Perception Index, strengthening fiscal sustainability, and enhancing female labor force participation.

A Comprehensive Roadmap for Inclusive Growth and Sustainable Development in Malaysia”

To achieve these goals, the Madani Economy emphasizes reforms and rebuilding to benefit all sectors of society. It recognizes past successes in transitioning from agriculture-driven to export-oriented manufacturing, but also acknowledges challenges like declining competitiveness and fiscal deficits.

The New Industrial Master Plan 2030 plays a key role, focusing on higher value-added manufacturing in sectors like E&E and Chemicals. It also prioritizes TVET enhancement, investment incentives, and green growth through initiatives like CCUS and Electric Vehicle adoption.

Empowering MSMEs and startups is another focus, with support for financing, venture capital, and the creation of local unicorns. Social protection programs aim to safeguard vulnerable groups like B40 and M40, with a focus on sustainable retirement savings.

While the narrative provides high-level targets, more details will be revealed by each ministry. The impact on the government’s fiscal position remains uncertain until all initiatives are unveiled. However, effective implementation could lead to higher growth potential than the average +4.7% since 1998. Other developments, like the 12MP mid-term review, New Industrial Master Plan 2030, and Budget 2024, are expected to align with the Madani roadmap’s aspirations and targets.