PUTRAJAYA: The reform agenda implemented under the Madani Economy framework, which emphasises fiscal discipline, has strengthened investor confidence in the country and contributed to the ringgit’s strengthening last year, according to Treasury secretary-general Datuk Johan Mahmood Merican.
He said that Prime Minister Datuk Seri Anwar Ibrahim’s leadership and the reforms implemented have also been recognised at the international level.
This was proven by Malaysia’s successful Asean chairmanship last year, which earned praise from member states, dialogue partners, and international credit rating agencies, Johan said.
“The reforms implemented by the government are indeed recognised internationally, giving the country credibility when we chaired Asean at all levels... (top officials from) major countries came to Malaysia.
“That, among other things, shows the effectiveness of the economic reform agenda implemented by the Madani Government (and) we hope that these reforms will continue for the prosperity of the nation,” he told Bernama recently.
According to Johan, the targeted subsidy approach, for instance, differentiates Malaysia from other countries that have opted for across-the-board price increases and cash handouts to address fiscal challenges without sufficient mechanisms to protect the people.
“Through targeted subsidies, our government can ensure that assistance is channelled to those who truly need it, while avoiding higher inflationary pressures on the majority of the population,” he said.
On the ringgit, he noted that the local currency recorded the best performance against the US dollar last year, thereby helping to reduce imported inflationary pressures through the costs of goods and raw materials from abroad.
“The strengthening of the ringgit plays an important role in curbing increases in domestic prices, especially those dependent on global supply chains,” he said.
Regarding the country’s economic direction, Johan stressed that the government will continue the Madani Economy reform agenda consistently, with a focus on attracting high-quality investments capable of generating value-added employment opportunities and offering commensurate wages. — Bernama
