Govt to restructure economy based on three main strategies - PM Anwar

Prime Minister Datuk Seri Anwar Ibrahim said the nation's economic expansion and growth should be achieved in a wider context of human economy that prioritises the people's needs.

"(This is)...specifically to free the poor and marginalised from poverty's grip in an unbridled capitalistic system that nurtures inequality in wealth and living standards," he said during his address at the Developing a Malaysia Madani event here, today.

Anwar said the main driver that would form the core of Malaysia Madani would be anchored on four main strategies, comprising rebuilding the economy, guaranteeing wellbeing of the people, reforming democratic and legal institutions, as well as establishing a trustworthy administration.

The unity government under Anwar's leadership outlines the Madani concept as part of its initiative to map out its strategy to govern the country effectively and, at the same time, optimises the various government machinery responsible for policy implementation.

Anwar said the number of poor people is still high with more than 136,000 households in the hardcore poor category and over 308,000 households still in the poor category as of July 2022.

"Even though income is the basic element in determining poverty rate, other dimensions that form the basis of the quality of life should also be focused on," he said.

Hence, the prime minister has proposed the Multidimensional Poverty Index as an alternative to measure the poverty rate based on basic necessities dimension such education level and food nutrition.

Madani also outlines that economic restructuring must be based on sustainable ethics which covers avoiding wastage and luxury, eradicate leakages and bribery, expediting aid and infrastructure for the people and equitable wealth distribution.

Anwar said, besides that, in efforts to restore and generate the economy, the government will encourage and fully support local industries that contribute to growth and attract foreign investments to ensure the wellbeing of the people in line with the core Madani concept.

He said the development and progress of the small and medium enterprises (SMEs) is more meaningful to the country as this sector constitutes 97.2 per cent of businesses in Malaysia and employs almost 70 per cent of the workforce in the country.

"The development and progress of the SMEs is more meaningful than supporting the conglomerates. I don't hold up (their opportunities) to compete but the government policies must be slightly adjusted from the previous approach," he added.