Economic Affairs Minister Datuk Seri Azmin Ali. – Bernama
KUALA LUMPUR: The Ministry of Economic Affairs is in the midst of preparing the mid-term review of the Eleventh Malaysia Plan and it is scheduled to be tabled in mid-October 2018, says its Minister Datuk Seri Mohamed Azmin Ali.
He said on Monday that besides reviewing the achievements in the first two years, issues and development challenges will be identified and steps to tackle them will be proposed.
“While the current macroeconomic indicators seem to exhibit strong performance on the back of robust gross domestic product (GDP) growth, stable and low inflation as well as full employment, the situation behind the headline indicators indicate a different situation.
“This the mid-term review will seek to address, among others, the disparity of growth across the states, the income gap between the income groups especially the bottom 40%, high youth unemployment and the rising cost of living,” he said.
Azmin was speaking at speaking at the launch of the "Malaysian Economic Monitor – Navigating Change" by the World Bank, where he elaborated on the reforms undertaken by the Pakatan Harapan government when it came to power in the 14th General Election on May 9.
He said the Malaysian economy in general is fundamentally strong, with all sectors performing well at the macro level and supported by a stable and strong banking and financial sector.
Sustaining the real economic growth will remain a priority for the government with more focus given to humanising it to ensure a better quality of life for the people, he added.
He said this will be carried out simultaneously with the efforts to strengthen the government’s fiscal position.
“While it is very likely that the economic growth may be affected by the various reforms, it is expected that their impact will be short-lived.
“This trade-off is necessary to strengthen the fiscal position of the government and to return the economy to a sturdier position and sustainable growth path,” he said.
He said currently the ministries and agencies are working closely with the Council of Eminent Persons to review the previous governance setup and then recommend new policy priorities. Urgency is given to discontinue opaque financial practices and address leakages at all levels.
Azmin pointed out the government’s operating expenditure will be further optimised while development projects that are unsustainable will be reviewed.
“Only higher-impact projects that can directly enhance the well-being of the people will be continued.
“Granted the government’s revenue will be affected with the withdrawal of the goods and services tax (GST), however, with the more efficient expenditure plan, I am confident that our fiscal consolidation target is still on track,” he said.
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