Madani Economy ensures lower-income earners not sidelined: Expert

PETALING JAYA: The Madani Economy framework is a breath of fresh air that aims at providing a more equitable share of the economy and gross domestic product (GDP) to everyone, said think-tank Emir Research president and CEO Datuk Rais Hussin Mohamed Ariff.

He said the main aim of the policy is to help the lower income group benefit from economic growth, which previously benefited the T20 group while the former was neglected.

He said low pay and the lack of a progressive wage system left the lower income earners out of the nation’s economic success.

“Madani Economy plans to realise growth in new economic areas, which include high technology and high value investments. Having a progressive wage system in these new economic areas will encourage workers to upskill for higher salaries.

“It will also help them enjoy the success of economic growth and higher GDP. The bottom end of the workforce will have a more equitable share of the pie.”

Rais Hussin, who labelled the Madani plan “Anwarnomics”, said this new approach will take into account all those who have been previously left behind.

He said today, it is no longer relevant to talk about B40, M40 and T20 categories as they no longer exist, adding that post-pandemic, they have to be recategorised as B70, M20 and T10.

He said Prime Minister Datuk Seri Anwar Ibrahim realised the B70 group are those who need the most help and has tailored his policies to help them uplift themselves.

“Anwarnomics is all about helping those with lower income get themselves out of the poverty trap. Concentrating on economic growth, the new economy, green technology and renewable energy are among the ways to help the B70 group.”

Anwar previously said the main focus of the Madani Economy framework is the restructuring of the national economy to make Malaysia a force in Asia. The spillover effect of this will help improve the people’s livelihood and welfare.

He said the Madani Economy concept is a comprehensive and complex framework that will help the country face long-term challenges. It will also transform the country into an attractive and competitive destination for investors.

“The Madani Economy framework will also roll out plans to address issues, such as the rise in the cost of living, that affect the lives of people,” he said.

Apart from positioning Malaysia as one of the top 30 major economies around the globe, Anwar said the framework also outlined six other benchmarks to be achieved by the country in less than 10 years.

They include placing the country in the top 12 of the Global Competitiveness Index, increasing participation among women in the country’s workforce to 60%, and placing the country in the top 25 nations in the world in the Corruption Perception Index.

Others are boosting the nation’s fiscal strength with a fiscal deficit of 3% or lower, and positioning Malaysia in the top 25 of the Human Development Index.

He said one of the initiatives to support the government to achieve the benchmark is developing the Klang Valley into one of Asia’s major city centres and an Asean regional hub for prominent companies.

Economist Ong Kian Meng said the Madani Economy is forward-looking and will bring about significant economic progress to the country, especially if it is properly implemented with other policies such as the National Energy Transition Roadmap and the National Industry Masterplan 2030.

“There are several social protection programmes which will benefit the B40 community that were announced in the Madani Economy plan.

“The ability of the unity government to attract investors to set up shop in Malaysia can also create high-paying jobs, including (for those) at the bottom of the income ladder. The unity government is on the right track to help the lower-income group. Like all economic plans, implementation is key.”

Ong said implementing the Madani Economy plans would need buy-in from the Cabinet, civil servants and the backbenchers in Parliament to ensure that the publicly announced timelines are adhered to.

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