Malaysia Set For Transformative Economic Renewal - Economist

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, Aug 9 (Bernama) -- Malaysia is set to undergo a transformative economic renewal, promising substantial impacts across various sectors, said an economist. 

Wealth management company SPI Asset Management managing partner Stephen Innes told Bernama that the additional RM120 billion domestic direct investments initiative unveiled by the Finance Ministry via six government-linked investment companies in the next five years represents a significant milestone in the nation’s economic strategy.

Known as GEAR-uP, the ambitious plan led by Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, targets critical areas such as green technology, infrastructure, and the Johor-Singapore Special Economic Zone (SEZ), he said. 

These strategic investments are designed to catalyse job creation, stimulate sectoral growth, and attract foreign direct investment, he said.

Innes said Anwar’s “Malaysia MADANI” promotes a civil and inclusive society founded on sustainable development, which is being actualised through these initiatives. 

"His leadership is focused on fostering long-term economic resilience and inclusivity, potentially enhancing Malaysia's regional and global standing. 

"This strategic direction aligns with the aspirations of Malaysians and underscores a commitment to global sustainability and technological innovation," Innes said. 

At the sectoral level, he said the emphasis on green and technology sectors positions Malaysia to assume leadership in these industries within ASEAN. 

The expected outcomes include the development of new expertise, the emergence of new industries, and the diversification of Malaysia’s economic portfolio well beyond its traditional reliance on natural resources.

"Investments in infrastructure are pivotal and render Malaysia an increasingly attractive destination for investments.

"Over the next decade, these investments are anticipated to yield tangible benefits such as a robust infrastructure, a fortified high-tech sector, and enhanced economic indicators, propelling Malaysia toward a diversified and resilient economy," said Innes.

The six GLICs involved in the first phase of GEAR-uP are Khazanah Nasional Bhd, the Employees Provident Fund, Kumpulan Wang Persaraan (Diperbadankan), Permodalan Nasional Bhd, Lembaga Tabung Haji, and Lembaga Tabung Angkatan Tentera.

He said the timing of these investments is opportune and aligns with global movements toward sustainability and advanced technology from a macroeconomic perspective. 

These developments “safeguard” Malaysia against economic downturns while enhancing its competitive edge internationally.

On the microeconomic level, he stressed that the projected growth is expected to permeate various economic strata. 

Small and medium enterprises (SMEs), in particular, would benefit from heightened demand and new opportunities spawned by these expansive projects, fostering local business innovations and entrepreneurship within the targeted sectors.

The journey ahead, nonetheless, is fraught with challenges. He said the consensus among economists and investors – both domestic and international – is one of cautious optimism. 

"They acknowledge the significant potential of these investments but are also mindful of possible impediments such as implementation delays, funding challenges, and the pressing need for a skilled workforce. 

"The ultimate success of this programme will depend on its efficient and transparent management, ensuring that the investments are well-integrated with Malaysia’s broader economic goals and global market dynamics," he said.

Overall, he said Malaysia’s focus on sustainability and technological innovation, supported by inclusive societal values, is poised to substantially refine its socio-economic landscape, heralding a new era of prosperity and resilience under Anwar’s adept leadership via strategic capital investments.

-- BERNAMA