KUALA LUMPUR (Sept 21): Malaysia will transition into a high-income nation over the next decade, even as geopolitical factors and the global response to the pandemic create headwinds and disruption.
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said while income is only one measure of a developed economy, Malaysia also needs to ensure that its economic growth is sustainable and shared equitably by all.
"The government announced our 6R National Economic Recovery Strategy in May 2020, as the world was being roiled by the pandemic, impacting supply chains and markets equally. To date, the actual and potential impacts are still being calibrated. Against this backdrop, the first five stages of the 6R strategy have provided much support to all Malaysians and stabilised the economy against the fallout from the pandemic.
"With the vaccine roll-out underway, we will soon enter the final stage of the 6R strategy, that is, Reform," he said in his foreword in conjunction with the Capital Market Masterplan 2021-2025 report unveiled by the Securities Commission Malaysia today.
Tengku Zafrul noted the 12th Malaysia Plan (12MP) — which will be launched later this year — will set the agenda for the longer-term reforms of the Malaysian economy that will underpin the next stage of our economic development.
The aim, he said, is to drive economic growth and at the same time, ensure that the nation's prosperity is inclusive, for all Malaysians today, and sustainable for future generations.
As for the priorities of the 12MP, it would include creating a conducive environment for domestic businesses, accelerating the shift towards a greener economy, developing industries with high added value to the economy, eradicating poverty and reducing socio-economic inequality.
"Within this context, the capital market plays an important role to support the structural upgrade of the economy and help inculcate a more inclusive society. The Capital Masterplan 3 (CMP3) paves the way for the wider population to participate in the sustainable and productive growth of the nation, and the broader accumulation of wealth for all in the process.
"As we transition towards becoming a more developed nation, Malaysia will need to cultivate more domestic firms in the frontier sectors of the rapidly changing contours of the global economy, in order to capture economic growth," he added.
Citing reference, Tengku Zafrul said the Dana Penjana Nasional Programme was set up for this purpose to spur innovation and provide risk capital for domestic entrepreneurs.
"Strategies outlined in the CMP3 will address this priority more comprehensively, enabling more funding avenues for entrepreneurs and small and medium business owners to grow their companies into competitive firms in the global economy," he said.
Looking ahead, Tengku Zafrul said the digital economy is another key area of growth for the country moving forward.
"This agenda will be further supported by the CMP3, which encourages greater digital adoption in the capital market. Digital adoption on a wider scale can enable businesses to raise capital at lower cost, and at the same time, empower all Malaysians to invest for their future," he said.
To recap, the Malaysia Digital Economy Blueprint (MyDIGITAL) was launched earlier in 2021 to catalyse the growth of the country's digital economy and enable greater digital inclusiveness across the nation.
In addition, Tengku Zafrul said the CMP3 also supports the country's commitment to the United Nation Sustainable Development Goals (UN SDGs) and the Paris Agreement.
"Over the next five years, it is envisaged that the ever increasing amount of capital will be mobilised to enable the transition towards a low-carbon economy, and to fund projects that create a positive impact on society and the climate," he said.
Read more stories about the Securities Commission's Capital Market Masterplan 3 (CMP3) here.