Govt focusing on three major aspects to ensure sustainable economy
21 Jun 2023
The government is focusing on three major aspects in ensuring a sustainable economy, namely, the strengthening of the nation’s fiscal position, structural economic reforms and reviewing the implementation of progressive wages.
In a written reply to Dewan Negara on Tuesday, the Prime Minister’s Department (PMD) said the main priority would be strengthening the country’s fiscal position by increasing revenues and boosting the development of high-growth, high-value sectors, as well as ensuring environmental sustainability.
“Emphasis will be given to accelerating growth in strategic sectors which will also generate investments in the electrical and electronics industry, global services, aerospace, creative industry, tourism, halal, biomass, smart farming activities and renewable energy,” it said.
According to the PMD, the government is also focusing on strengthening the domestic economy, with the private sector continuing to be a development partner, catalysing economic growth by increasing high-quality and high-technology investments.
“To encourage private investments, the government has continued to offer incentives to potential investors, including restructuring investment incentives towards a progressive revenue-based tax rate.
“The development of micro, small and medium-sized enterprises (MSMEs) will be accelerated through the adoption of technology and digitisation; the focus will also be on MSME’s shift from the domestic market to the global market and taking advantage of the cooperative movement in the development of entrepreneurs,“ it said.
At the same time, PMD said the government is also drafting the Madani economic narrative to provide a clearer picture of the Unity Government’s main policy direction in facing global and domestic challenges.
It said the Madani economic narrative, set to be launched in August, will be aligned with several medium and long-term policies, including the National Industrial Plan, the Half-Term Review of the 12th Malaysia Plan and the National Energy Transition Roadmap.
“Additionally, short-term policy focus will also be provided in the second Madani Budget that will be presented in October this year,“ said PMD.