Economic policymakers must adapt to global changes

Prime Minister Datuk Seri Anwar Ibrahim said that economic policymaking must now consider geopolitics, digitalization, climate change and crucial global megatrends that shaped the year 2020 and beyond.

“It has become increasingly self-evident that economic policymaking in the 2020s and beyond cannot be divorced from careful consideration of circumstances around three global megatrends: geopolitics, digitalisation and climate change,” he said in his keynote address at the 29th International Conference on the Future of Asia otherwise known as Nikkei Conference.

“Hence, Malaysia has recently
unveiled three key policy frameworks to provide greater certainty, clarity and transparency on the future of the economy,” he added.

He explained the three key policy frameworks: Madani Economy framework, New Industrial Master Plan 2030, National Energy Transition Roadmap.

He said that the first is the Madani Economy framework, which outlines strategies to drive sustainable and inclusive development.

“At the core is the importance of not just raising the ceiling for real GDP
growth in the range of 5.5-6% per annum, but also raising the floor to ensure the fruits of prosperity are shared equitably among all Malaysians,” he said.

He stressed that the Madani Economy framework aligns closely with Japan Prime Minister Fumio Kishida-san’s New Form
of Capitalism policy, which underscored the deep connection and shared aspirations between the two countries.

“The second major policy that Malaysia has introduced is the New Industrial Master Plan 2030; which represents a whole-of-government approach to industrial policy,” he said.

“We have hit the ground running by convening stakeholders from the public and private sectors to chart the
way forward for specific strategic sectors, such as semiconductors and steel” he added.

He added that the successful implementation of this Plan will allow Malaysia to stand on the shoulders of giants in this region and bring Malaysia closer to achieving high-income status by the end of this decade.

“Finally, the National Energy Transition Roadmap is Malaysia’s comprehensive strategy to ensure the country meets its commitment to achieving net zero emissions as early as 2050,” he said.

He added: “This warrants that we operationalise initiatives in energy efficiency, renewable energy,
hydrogen, green infrastructure and carbon capture, utilisation and storage to build Malaysia’s climate resilience.”

He further said that these strategic blueprints are indicative of Malaysia’s role in building Asian leadership in the economic, digital and sustainability domains.

“Indeed, uncertainty abroad has only solidified our resolve to be forward-looking and proactive for the sake of domestic policy certainty and creating a prosperous future for all,” he said.

Anwar was on a three-day working visit to Japan since yesterday.