KUALA LUMPUR (Oct 29): Budget 2022 will focus on driving economic recovery, rebuilding national resilience and catalysing reforms across the private and public sectors.

The Ministry of Finance (MoF) said in its 2022 Economic Outlook Report that the worst-hit sectors such as tourism and its related industries will be prioritised, while businesses will be encouraged to enhance their competitive edge and venture into new growth areas to build resilience and withstand future adversities.

“Malaysian companies capitalise on well-developed local infrastructure, talents and natural resources. In this regard, Islamic products and services will be strengthened, while tourism — especially ecotourism — will be promoted,” it said.

In addition, the MoF said Budget 2022 seeks to create new job opportunities by strengthening human capital and preparing the workforce to operate in “the new norm”. “Lifelong learning, reskilling and retraining initiatives will be strengthened to future-proof the workforce,” the ministry said.

Budget 2022 aims to rebuild the nation’s resilience by enhancing the National Covid-19 Immunisation Programme (PICK) initiative to ensure the entire population is fully vaccinated against the coronavirus, as well as improving the capacity for local vaccine development to prepare for any future pandemics, the MoF stressed.

There will also be efforts to enhance digital and technological infrastructure chiefly in the business and education sectors, as well as remote areas, while various programmes and projects will be implemented to boost micro small and medium enterprises (MSMEs)’ contribution to the economy, it added.

Digital transformation among MSMEs will also be intensified with the development of 5G infrastructure and implementation of Fourth Industrial Revolution (4IR) programmes across all sectors.

“MSMEs will be encouraged to tap emerging online businesses. Overall, the government will facilitate and provide the necessary support for the transition to the new business model via intensified upskilling and retraining initiatives.

“The intent is particularly vital in equipping the workforce with the right digital and technological skills to remain relevant post-pandemic. Efforts will be intensified to foster productivity through teleworking and increase workforce opportunities in securing decent jobs in the digital era,” the ministry said.

A more effective public sector, the MoF noted, can substantially affect the levels of economic activity and a country's future growth trajectory. It also cited the Worldwide Governance Indicators, which indicated that countries with higher scores on the Government Effectiveness Indicator tend to have higher gross domestic product per capita growth rates.

Hence, to catalyse reforms and attain the sustainable development goals (SDGs) of the 12th Malaysia Plan (12MP), Putrajaya will improve the efficiency of the public service delivery and emphasise the importance of environmental, social and governance in public service, statutory bodies and government-linked companies.

“To achieve the vision of recovering from the pandemic and becoming a prosperous, inclusive and sustainable nation, the government has introduced the concept of Keluarga Malaysia [to tighten] co-operation and collaboration between stakeholders irrespective of political affiliation or idealogical differences,” the ministry said.

The government will also focus on digitalising work processes in the public sector to fulfil stakeholders’ aspirations. This, said the MoF, would align with the Public Sector Digitalisation Strategic Plan (2021-2025), which provides guidelines for government to government (G2G), government to citizen (G2C), government to business (G2B) and government to employee (G2E).

“The plan [is to] further enhance the digital government initiative by enhancing data, application, technology, capability and governance. Hence, existing procedures will be reviewed to promote efficiency in the public service and enhance its quality to fulfil stakeholders’ requirements,” the ministry explained.

In addition, the government will enhance co-operation with the third sector of the economy including non-government organisations and civil society organisations as its partners. “The government will foster closer collaboration with various organisations to empower them to partake in national development,” the ministry added.

For more stories on the Economic Report 2021/2022, click here.