Concerned with the difficulties faced by the people in coping with the rising cost of living, Prime Minister Datuk Seri Najib Tun Razak said the government would intensify efforts to ease their burden.
He said the measures included providing cash assistance, ensuring food prices remained reasonable, building affordable houses, improving and expanding the public transportation system as well as increasing access to public health.
"We are also focusing on empowering the people to earn higher wages that commensurate with increased productivity. This will be achieved through better education outcomes as well as continuous training and upskilling."
Najib said this in the preface of the 2014/2015 Economic Report released by the Finance Ministry in conjunction with the tabling of the Budget 2015 in the Dewan Rakyat today.
Najib, who is also finance minister, said amid the challenging external environment, Malaysia's economy expanded at a stronger-than-expected pace of 6.3 per cent during the first six months of the year (Jan-June 2013: 4.4 per cent), the highest among Asean countries.
He pointed out that the sterling performance was supported by a rebound in gross exports, which surged 12.5 per cent, and resilient domestic demand, which expanded by 6.5 per cent.
The private sector, he said, continued to spearhead investment activities with a growth of 15 per cent to RM97.5 billion during the first half of the year.
"This reflects strong business confidence amid a pro-growth, business-friendly environment brought about by the national transformation programmes," the prime minister said.
He highlighted great strides achieved in improving the nation's competitiveness as indicated by Malaysia having moved up three notches to 12th position in 2014 from 15th in 2013, according to the World Competitiveness Yearbook 2014.
In the World Bank's 'Doing Business Report 2014', Malaysia jumped to sixth from 12th position in 2013 and improved to 20th position from 24th in 2013 out of 144 countries surveyed by the World Economic Forum in its Global Competitivenss Report 2014-2015.
Despite the progress, Najib said, the government was mindful that the country was operating in an increasingly competitive global environment and acknowledged the need to remain agile and to adapt to the changes in the domestic and global economic environment.
"We have to take bold steps and engage in high value-added, technologically-driven economic activities so that Malaysia will remain competitive," the prime minister said.
Najib said one of the ways to achieve this was by developing a strong culture of entrepreneurship, innovation and creativity among the people as he alluded to the setting up of the Malaysian Global Innovation and Creativity Centre (MaGIC) to attract the best global and local talents and to inspire a new wave of entrepreneurs.
He noted that while the Malaysian economy continued to achieve creditable growth rates and improve in various global rankings, the government recognised that more needed to be done to ensure that growth was inclusive and the fruits of development were enjoyed by every segment of society.
"Hence, the government will not only continue to focus on spurring economic activities, but will intensify income redistribution efforts to achieve inclusive growth and to foster a greater sense of belonging," he said.
On the need to ensure that public financial management remained sound, Najib said the government would continue to focus on its fiscal transformation agenda.
"The strategies encompass ensuring effective and efficient government spending, broadening the tax base including implementing the Goods and Services Tax (GST) as well as improving the subsidy targeting mechanism," he said.
Najib pointed out that the Budget 2015 was crucial since it was the final budget under the 10th Malaysia Plan.
"It reminds us that we have barely six years to achieve the target of being a high-income and developed nation by 2020.
"In this respect, we must further intensify our efforts in the spirit of 1Malaysia to generate greater and equitable wealth for the people," he concluded.
He said the measures included providing cash assistance, ensuring food prices remained reasonable, building affordable houses, improving and expanding the public transportation system as well as increasing access to public health.
"We are also focusing on empowering the people to earn higher wages that commensurate with increased productivity. This will be achieved through better education outcomes as well as continuous training and upskilling."
Najib said this in the preface of the 2014/2015 Economic Report released by the Finance Ministry in conjunction with the tabling of the Budget 2015 in the Dewan Rakyat today.
Najib, who is also finance minister, said amid the challenging external environment, Malaysia's economy expanded at a stronger-than-expected pace of 6.3 per cent during the first six months of the year (Jan-June 2013: 4.4 per cent), the highest among Asean countries.
He pointed out that the sterling performance was supported by a rebound in gross exports, which surged 12.5 per cent, and resilient domestic demand, which expanded by 6.5 per cent.
The private sector, he said, continued to spearhead investment activities with a growth of 15 per cent to RM97.5 billion during the first half of the year.
"This reflects strong business confidence amid a pro-growth, business-friendly environment brought about by the national transformation programmes," the prime minister said.
He highlighted great strides achieved in improving the nation's competitiveness as indicated by Malaysia having moved up three notches to 12th position in 2014 from 15th in 2013, according to the World Competitiveness Yearbook 2014.
In the World Bank's 'Doing Business Report 2014', Malaysia jumped to sixth from 12th position in 2013 and improved to 20th position from 24th in 2013 out of 144 countries surveyed by the World Economic Forum in its Global Competitivenss Report 2014-2015.
Despite the progress, Najib said, the government was mindful that the country was operating in an increasingly competitive global environment and acknowledged the need to remain agile and to adapt to the changes in the domestic and global economic environment.
"We have to take bold steps and engage in high value-added, technologically-driven economic activities so that Malaysia will remain competitive," the prime minister said.
Najib said one of the ways to achieve this was by developing a strong culture of entrepreneurship, innovation and creativity among the people as he alluded to the setting up of the Malaysian Global Innovation and Creativity Centre (MaGIC) to attract the best global and local talents and to inspire a new wave of entrepreneurs.
He noted that while the Malaysian economy continued to achieve creditable growth rates and improve in various global rankings, the government recognised that more needed to be done to ensure that growth was inclusive and the fruits of development were enjoyed by every segment of society.
"Hence, the government will not only continue to focus on spurring economic activities, but will intensify income redistribution efforts to achieve inclusive growth and to foster a greater sense of belonging," he said.
On the need to ensure that public financial management remained sound, Najib said the government would continue to focus on its fiscal transformation agenda.
"The strategies encompass ensuring effective and efficient government spending, broadening the tax base including implementing the Goods and Services Tax (GST) as well as improving the subsidy targeting mechanism," he said.
Najib pointed out that the Budget 2015 was crucial since it was the final budget under the 10th Malaysia Plan.
"It reminds us that we have barely six years to achieve the target of being a high-income and developed nation by 2020.
"In this respect, we must further intensify our efforts in the spirit of 1Malaysia to generate greater and equitable wealth for the people," he concluded.
