Govt focuses on structural reforms in the medium term to enhance nation - PM

KUALA LUMPUR: Prime Minister Datuk Seri Ismail Sabri Yaakob today assured that the government's priority in the medium term is to implement structural reforms that will enhance the country's economic potential, resilience and prospects as well as make Malaysia a more attractive investment destination.

He said the government's measures and commitment would promote more sustainable and inclusive economic growth for all Keluarga Malaysia.

"Going forward, the government will continue to monitor the development of various economic risks and ensure the effectiveness of policy decisions in managing external shocks which can affect the well-being of Keluarga Malaysia," he said at the Barisan Nasional Convention here today.

Although the country's economy is on a strong footing, the government is taking a cautious approach to the latest global developments that have the potential to pose a risk to the country's economic growth, said Ismail Sabri.

"For example, geopolitical tensions have resulted in economic pressure in various aspects, particularly the increase in global inflation due to rising commodity prices," he added.

Nevertheless, Ismail Sabri said the government was constantly monitoring the latest situation in the Russia-Ukraine conflict and remained committed in implementing proactive measures through the modification of certain policies, in line with the changing global economic scenario which is usually "beyond our control".

He said that should the Russia-Ukraine conflict continue, it would have implications on the commodities and also affect the prices of goods while the action of some countries such as India and Indonesia to stop food exports would worsen the situation.

The Prime Minister said the government was also taking a cautious approach to the latest global developments which could potentially pose a risk to growth.

"For example, geopolitical tensions have resulted in economic pressure in various aspects, especially the increase in global inflation due to rising commodity prices.

"As an open economy with the total value of foreign trade accounting for almost 120 per cent of Gross Domestic Product, Malaysia is no exception to the effects of geopolitical tensions and global climate change," he added.

-- BERNAMA