Opposition Leader Slams Economic Stagnation, Demands Overhaul to Escape Middle-Income Trap

Opposition leader Hamzah Zainudin attributes Malaysia’s 15-year middle-income trap to structural economic issues, urging a comprehensive policy and governance overhaul. He criticizes Malaysia’s stagnant industrial base, particularly its midstream focus in semiconductors, and calls for upstream and downstream expansion, alongside workforce and education reforms.

Middle-Income Trap

Comparing Malaysia to Taiwan’s progress since the 1970s, he highlights missed opportunities in high-value activities and over-reliance on imports, like 40% of rice, despite abundant resources. Hamzah emphasizes aligning education with economic policies to engage youth, warning of a mismatch causing income struggles, and stresses the need for leadership to instill confidence in young Malaysians.

On Petronas and Sarawak

Hamzah Zainudin also urges constructive dialogue to address Sarawak’s oil and gas demands, emphasizing national unity and fairness. He advocates collaboration between Sarawak and Petronas, Malaysia’s Fortune Global 500 company, to negotiate royalties, typically up to 15% globally, cautioning against excessive demands that could harm unity. On Sarawak’s push for gas aggregator control,

Hamzah stresses a viable business model ensuring equitable benefits. He calls for depoliticizing the issue, encouraging direct Petronas-Sarawak talks to determine a fair royalty formula, a principle he extends to all resource-rich states, to preserve Petronas for Malaysia’s future.

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