Malaysia must break free from middle-income trap, says Anwar


BUKIT MERTAJAM: Malaysia must break free from being trapped as a middle-income country by setting a clear direction towards a high-value economy driven by technology and digitalisation, says Datuk Seri Anwar Ibrahim.

The Prime Minister said the country's economic fundamentals are now increasingly strong, and this momentum must be followed through with the comprehensive implementation of digital transformation policies, including at the local authority level through the development of smart cities.

"When the country has laid a more convincing economic foundation, it must be followed by a clear direction so that Malaysia is no longer trapped as a middle-income or so-called middle-income trap country.

"We observe developments in other countries - they progress, then get stuck at a certain stage. That is why we have formulated several policies under the industrial master plan and digital transformation," he said when officiating the Seberang Perai Aspire Centre and Community Outreach Programme at the Seberang Perai City Council (MBSP) complex here Saturday (Jan 24).

Also present were Penang Chief Minister Chow Kon Yeow, Deputy Chief Minister I Datuk Dr Mohamad Abdul Hamid and Seberang Perai mayor Datuk Baderul Amin Abdul Hamid.

Anwar, who is also Finance Minister, said Malaysia is now emerging as a leading investment destination in high-tech sectors, including semiconductors and artificial intelligence (AI), with global companies such as Infineon Technologies, Nvidia Corporation and Google choosing the country as a regional hub and investment base.

He said these developments place Malaysia in a strategic position, but require a step change in human capital capabilities through skills training, upskilling and reskilling to ensure the people can take advantage of the opportunities available.

Elaborating further, the Prime Minister said Penang has an advantage in terms of its industrial ecosystem, particularly in the semiconductor sector, and that the Seberang Perai City Council (MBSP) was among the earliest local authorities to take the initiative to translate the smart city concept into practice, despite financial constraints.

He also said the country’s encouraging economic performance — including the strengthening ringgit, rising investment and trade reaching RM3 trillion — reflects the confidence and commitment of Malaysians from all walks of life.

Earlier, Anwar officiated the launch of the Seberang Perai ASPIRE Centre (SPACE), which also serves as MBSP’s integrated operations centre to strengthen smart city management through data integration, an intelligent complaints system, traffic monitoring, public safety, and real-time management of municipal services.

SPACE was established as MBSP’s integrated operations centre to support smart city management and improve the efficiency of service delivery to the public, while also serving as the main platform for systematically coordinating city operations using the latest technology. - Bernama

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