IT is the dawn of 2024. May Malaysia's journey be one of ongoing prosperity and vibrant growth.
What endeavours shall occupy our focus in the unfolding year?
Let us envision a path forward where Malaysia not only sustains its current prosperity but also experiences a flourishing and dynamic trajectory. As we stand on the threshold of this new chapter, it beckons us to reflect upon and delineate the key focal points and aspirations that will shape our collective journey throughout the unfolding year. What endeavours, challenges and opportunities shall seize our attention and drive our actions in the days and months ahead? This is the contemplative terrain that beckons us to chart our course with purpose and vision.
Grow or Perish
Currently, the global environment remains challenging. World economic growth is expected to decline for the third consecutive time, along this path, 3.5 per cent (2022), 3.0 per cent (2023), and 2.9 per cent (2024). Advanced economies are also expected to experience sluggish growth, at 2.6 per cent (2022), 1.5 per cent (2023) and 1.4 per cent (2024).
As a small and open country, Malaysia's economic growth is generally dependent on global economic conditions and the performance of advanced economies. Likewise domestic demand (household spending, private investment, and government expenditure) also supports our growth.
The Madani Paradigm
Economic growth is the ultimate outcome of successful economic management. Although, we are often mesmerised by the cyclical rhythm of growth percentages. Then there is the global "high tide" effect that lifts all boats, which have alsoswayed us.
We have failed to give serious attention and commitment in ensuring that the fundamental structural aspects of the country's economy also changes in tandem in order to meet the needs of sustainable economic growth.
This is a significant problem and challenge for our economic management. This is the prelude to the launch of the Madani Economy. The Prime Minister said we are trapped, do not be complacent.
Restructuring the economy is the key to ensuring that Malaysia becomes an advanced, high-incomeeconomy, and respected nation. We must break free from this trap to move forward.
Almost all the structural issues we face today are not new; they have long been identified and stated in our development documents and plans. However, the commitment to successfully implementing the restructuring of the national economy has clearly been lacklustre.
Among the challenges are transforming the economy into a more complex and high-value one, enhancing digitalisation and technological adaptation. Improving the quality of human capital, workforce, and talent, increasing integrity and eliminating corruption, while enhancing market efficiency and providing a level playing field for all.
Fiscal strengthening and consolidation, improving the quality of public services, ensuring food security, balancing regional development, maintaining sustainability, enhancing dignity and the well-being of life, are among many of the other structural elements that needs to be addressed.
All leaders and economic planners in the country must be clear and focused on the mission of "restructuring" the national economy. If we want to measure the success of managing the national economy, these structural characteristics should be the indicators for us, not the 'percentage of economic growth,' which is influenced by global performance.
Views of a Luminary
In the opinion of leading economist Professor Tan Sri Dr. Noor Azlan Ghazali, restructuring the economy should be the top development agenda for 2024. We need a Strategic Action Plan for the Madani Economy. It would detail the strategic actions to be taken to achieve the goals of the Madani Paradigm.
The Madani Economy, launched in July 2023, set clear goals and objectives, but the devil lies in thedetails.This is where it is still unclear.
Noor Azlan applauds the clarity of the direction of the Madani Economy, aiming to propel the economy to greater heightswhile simultaneously enhancing the standard of living of Malaysians. In essence an apt rallying cry for economic reform.
He also welcomes the establishment of the new Madani Monitoring Unit. In his view, implementation and monitoring are crucial.
The question he raised is, how the framework of this Madani Economy will be implemented by all theministries and government agencies? What strategic actions will be taken to realise the Madani Economy? Clarity is essential to ensure that we all move together in the right direction according to him.
Rome wasn't built in a day
Nation-building is the responsibility of all. One ministry alone cannot suffice. Until now, the desire to restructure have only been heard from a few leaders. Several strategic actions that change approaches and procedures have been announced. This is what we need to prioritise.
We need to tackle the bull by its horns. Realising the Madani Economy requires all ministries to be clear about what they need to implement. Distinguish theroutine operational aspects from strategic actions. Embrace the overarching mission of restructuring the country's economy.
There must be cohesion among cabinet members. Every Minister and the agencies under them must be clear about this strategic mandate and be able to drive the necessary restructuring.
Do not let the Madani Economy only be in the Prime Minister's speech but not heard or found elsewhere.
It is highly recommended that these strategic actions be announced to the public. What strategic restructuring actions will be implemented to realize the Madani Economy?
Which ministry will lead each restructuring effort? What are the targets for 2024? Each restructuring action must be monitored for its implementation, and its performance reported.
In the final analysis, Rome, as the saying goes, wasn't erected in a single day. Similarly, as we usher in the year 2024, let it symbolise a period of heightened national awareness for all.
In unison, let us embark on the collaborative endeavor of fortifying and advancing our beloved nation.
*The writer is an economist who is an international relations expert. He is a senior consultant with Global Asia Consulting and was previously a senior researcher at the Malaysian Institute of Economic Research. The opinions expressed in this article are his personal views.