Economic Reforms Over The Past Four Years Have Strengthened Malaysia -- PM Anwar
PUTRAJAYA, Oct 19 (Bernama) -- Economic reform efforts implemented by the government over the past four years have helped boost the country’s economy and improve public well-being, said Malaysia's Prime Minister Anwar Ibrahim.
He said Malaysia has the potential to achieve stronger economic growth and better public well-being over the next two to three years, provided the entire government machinery remains focused on effective policy implementation.
“I am confident that over the next two to three years, we can significantly strengthen the economy and improve the people’s well-being to a level far better than what we had projected,” he said in his speech at the Finance Ministry’s staff assembly here on Monday.
Anwar said the reform efforts included strengthening fiscal management, rationalising subsidies through targeted assistance, and improving government governance. These measures have enabled the country to continue recording positive developments despite global economic uncertainties.
He said the country’s economic performance could be seen in its gross domestic product (GDP) growth, unemployment and inflation rates, and the decline in the hardcore poverty rate to 0.09 per cent.
He said these achievements should be viewed in the context of current economic challenges, including the sharp increase in global crude oil prices, which had far exceeded the assumptions used by the government when preparing its economic projections last year.
Anwar said projections at that time were based on an oil price of around US$70 per barrel, whereas prices have since risen to between US$110 and US$120 per barrel.
He said higher oil prices could put pressure on the prices of goods and the cost of living, making it more difficult for the government to meet the people’s basic needs.
According to the Department of Statistics Malaysia (DOSM), Malaysia’s economy is estimated to have expanded by 5.3 per cent in the third quarter of 2026, following growth of 6.0 per cent in the preceding quarter.
In its advance estimates of gross domestic Product (GDP) for the third quarter of 2026, DOSM said the growth was supported by positive performance across all economic sectors, except mining and quarrying, which recorded a contraction.
“Cumulatively, for the first three quarters of 2026, Malaysia’s economy recorded growth of 5.5 per cent, higher than the 4.8 per cent recorded over the corresponding period in 2025,” it said last Friday.
Anwar said the government remained capable of reducing the fiscal deficit while continuing efforts to support the economy and assist the people through prudent economic management.
He also stressed the importance of managing national debt responsibly to ensure that borrowing was undertaken only when necessary and did not burden future generations.
“Responsible government means you only borrow what you have to in order to manage the economy, but you always plan ahead. You should not burden future generations to pay for the excesses of the present,” he said.
Anwar said economic reforms also needed to be supported by institutional reforms to strengthen governance, including through the implementation of the Fiscal Responsibility Act and the Parliamentary Services Act.
He said these measures reflect the government’s commitment to strengthening checks and balances and ensuring more mature and accountable public administration.
He added that efforts to strengthen the economy must go hand in hand with addressing issues that directly affect people’s daily lives, including workers’ incomes, rental rates, prices of essential goods and the need to develop basic infrastructure in less-developed states.
He said the MADANI Economy framework needed to strike a balance between promoting economic growth, attracting investment and expanding technology adoption, while ensuring that the benefits of development were shared by all Malaysians.
Anwar said the success of the reform agenda depended on the commitment of all parties to implementing policies with integrity, preventing leakages and combating corruption.
-- BERNAMA
