Government will improve policies to increase wage growth - Economic Outlook 2024

According to the Economic Outlook 2024 report released by the Ministry of Finance (MOF) today, the move was aimed at increasing the income share to 45 per cent of Gross Domestic Product (GDP) so as to be at par with developed countries.

"The government will also implement a multi-tiered levy to reduce the dependency on low-skilled foreign workers while encouraging automation," the report said.

Those measures are among the strategies underlined in two main thrusts under the MADANI Economy framework, namely 'Malaysia-Leading Asian Economy' and 'Elevating quality of life for the rakyat' to achieve the targets of building a better Malaysia.

The report stated that other strategies are providing equal opportunity; social protection for all; healthcare service reforms; educational and human resource reforms; infrastructure and public transportation; basic amenities and affordable housing for all Malaysians.

The main initiatives to position Malaysia as a leader in the Asian economy under the MADANI Economy framework include implementing a regional (ASEAN) agenda; promoting Malaysia as a prime investment destination; and internationalising local start-ups and Small and Medium Enterprises (SMEs).

According to the report, the government will also collaborate with Islamic financial industry players; accelerate the energy transition; and reassess the approach towards land use to balance between developmental, agricultural, and conservation needs.

The MADANI Economy framework sets short-term measures to address pressing issues that directly affect both the rakyat and the economy meanwhile the medium-term measures focus on raising the country's performance in various aspects.

The report said the successful implementation of the framework will revive Malaysia as Asia's most important economic axis, restoring the nation's dignity and glory.

This whole-of-nation approach is expected to uphold the spirit of unity and good governance, supported by an agile and collaborative delivery system to drive overall economic growth.

"The framework, which is anchored on 'raising the ceiling' and 'raising the floor' aims to enhance the nation's economic prosperity and promote greater inclusivity in wealth distribution, thereby improving the living standards of the rakyat," it said.