KUCHING: Economic reforms must always keep the rakyat at the centre, with growth that translates into jobs, fair wages and inclusion for all Malaysians, said Universiti Malaysia Sarawak (UNIMAS) senior lecturer Dr Nor Afiza Abu Bakar.
Afiza said Malaysia Day this year, under the theme Malaysia MADANI: Rakyat Disantuni, is a reminder that national unity and economic resilience are inseparable.
“True prosperity comes not when GDP rises, but when every Malaysian feels that progress touches their lives.
“That is the true spirit of Malaysia MADANI: Rakyat Disantuni, where progress is not only measured in GDP but in the dignity, security and hope experienced by every Malaysian,” she told Sarawak Tribune in her Malaysia Day message.
Malaysia’s resilience, she added, has been tested many times.
“Our economy has shown resilience throughout history, from the Asian Financial Crisis of 1997 to the Global Financial Crisis in 2008 and more recently the COVID-19 pandemic. Each challenge tested our strength but also taught us the importance of unity and smart policymaking,” she said.
She noted that the latest data shows Malaysia’s economy is still on steady ground.
GDP grew 5.1 per cent in 2024, rebounding from 3.6 per cent in 2023, before moderating to around 4.4 per cent in the first half of 2025.
Bank Negara Malaysia projects growth of between 4.0 and 4.8 per cent for the full year.
“While this slower pace reflects global uncertainties such as weaker external demand and geopolitical risks, it also shows that Malaysia is steady enough to weather external headwinds,” she said.
Investor confidence remains intact, she noted, with foreign direct investments continuing to flow into digitalisation, renewable energy and advanced manufacturing.
“Although reforms such as subsidy rationalisation and fiscal consolidation bring short-term discomfort through higher fuel and living costs, they are designed to free resources for social protection and development programmes,” she said.
Looking ahead, Afiza said reforms must focus on productivity, competitiveness and fairness.
Education and skills, she stressed, are the most urgent areas.
“Industry 4.0, artificial intelligence and digital services are reshaping the job market, yet many workers still lack the training needed to take advantage of these opportunities.
“The government has begun expanding TVET programmes, retraining initiatives and digital skills development. The key is execution and ensuring rural as well as urban communities benefit equally,” she said.
She added that Malaysia must continue to improve the business environment.
“For too long, red tape and bureaucratic hurdles have slowed investment and innovation.
“Efforts to streamline regulations, improve transparency and enhance governance are crucial to building investor confidence.
“Budget 2025 included measures such as expanding the tax base and introducing new environmental levies, which signal alignment with global standards,” she said.
She said that small and medium enterprises (SMEs) also deserve special attention as they make up nearly 90 per cent of businesses, contribute about 40 per cent of GDP and employ half the workforce.
“Supporting SMEs means supporting jobs and innovation at the grassroots level, which directly benefits families and communities.
“Budget 2025 allocated RM40 billion in financing and RM20 billion in loan guarantees, alongside digitalisation grants to help SMEs modernise,” she said.
Inclusivity, she added, must go hand in hand with growth.
Malaysia’s poverty rate has fallen dramatically from more than 50 per cent in the 1970s to below 7 per cent today, but disparities persist.
“Challenges remain, particularly in Sabah and Sarawak and among B40 households in both rural and urban areas.
“On Malaysia Day, it is worth reminding ourselves that every citizen, regardless of region or income level, deserves to feel included in national progress. Inclusivity is not merely charity. It is an investment in stability and unity,” she said.
She highlighted recent measures such as raising the minimum wage to RM1,700 and rationalising diesel subsidies, which are expected to save billions of ringgit for redistribution to small traders, farmers and lower-income households.
“These measures are not without short-term discomfort, but they help build a more sustainable economy. If Malaysians feel cushioned against sudden shocks, they will be more willing to support necessary reforms,” she said.
Afiza added that inclusivity also means tackling inequality in practical ways.
“Empowering women and youth, expanding access to affordable housing, and strengthening social safety nets all make growth feel real for ordinary Malaysians.
“SMEs also play a central role in this by creating jobs in local communities. Regional development is another priority, with greater investment in healthcare, education and infrastructure for East Malaysia,” she said.
She said inclusivity cannot be left to the government alone.
“Private sector players and communities must also ensure that wages are fair, opportunities are equal and growth is sustainable. When rural communities feel the benefits of progress, Malaysia as a whole becomes stronger,” she said.
