Malaysia unveils 10-year plan to reboot economy, create high-paying jobs

Prime Minister Anwar Ibrahim said he aims to place Malaysia among the top 30 global economies, boost wages and participation of women in the workforce

Anwar warned without implementing reforms, the country will face a ‘very serious crisis’ that would undoubtedly affect its structure

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Malaysian Prime Minister Anwar Ibrahim. Photo: Bernama/dpa

Published: 4:30pm, 27 Jul 2023

Malaysian Prime Minister Anwar Ibrahim unveiled a plan on Thursday to reset the Southeast Asian economy’s growth trajectory, with an eye on boosting incomes and participation of women in the workforce while lowering the budget deficit to reduce stress on government finances.

The plan involves attracting companies that create high-income jobs for locals with tax breaks, boost manufacturing and implement reforms to make its stock markets attractive, Anwar said in his speech on the 10-year plan in Kuala Lumpur.

The key outcomes he is targeting are: achieving a fiscal deficit of 3 per cent of gross domestic product or lower, placing Malaysia among the top 30 global economies and improving its human development index ranking to the top 25.

“My utmost priority in the near term is to rebuild the country’s fiscal capacity. We are all aware of the national debt situation,” Anwar said, referring to government debt at over 60 per cent of GDP. “Without any reforms, we will face a very serious crisis that would undoubtedly affect the country’s structure.”

The state of the economy has been a major theme as six key states head to the polls on August 12. Elevated inflation, a weak ringgit, stagnant wages and slowing growth could weigh on Anwar’s chances as he faces his biggest public vote of confidence since coming to power after a divisive general election in November.