Govt Adopting Pragmatic Approach In Economic Development - Rafizi

KUALA LUMPUR, Nov 6 (Bernama) -- The government is adopting a pragmatic approach in planning the country’s economic development, said Economic Minister Mohd Rafizi Ramli.

He said the approach will focus on three key areas: strengthening the national fiscal position, identifying new sources of growth, and implementing structural reforms to drive value-added economic activities.

Rafizi highlighted that the economic plans implemented by the MADANI government so far cover short-term, medium-term, and long-term strategies, which are aligned with the country’s macroeconomic objectives.

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He emphasised that the country’s fiscal position would be strengthened through increased revenue, re-targeting of subsidies, and the rationalisation of public spending to ensure more responsible public expenditure.

“For example, the MADANI economic framework sets an economic vision for the medium term, which is 10 years.

“This allows for quicker monitoring and adjustments so that any weaknesses can be addressed promptly,” he said during the winding-up session of the 2025 Supply Bill in the Dewan Rakyat today.

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Rafizi said that if the economic plans do not achieve their goals after five years, they will be further adjusted to meet the long-term objectives.

He cited the National Energy Transition Roadmap (NETR) as a dual-purpose plan, which not only aims to build new high-value industries based on energy transition but also ensures the sustainability and energy security necessary for the country’s growth until 2050.

“This aims to prevent us from relying on energy imports in the future, as well as the New Industrial Master Plan (NIMP), which seeks not only to develop new high-value sectors but also to ensure that our economy transitions to higher value creation chains.

“However, the economic aspirations outlined in these plans will not succeed if certain urgent reforms are not implemented,” Rafizi said.

In another development, he said the government has taken almost two years to decide on the re-targeting of the RON95 subsidy, with the priority of protecting as many people as possible from the direct or indirect impact of any cost increases.

“At this stage, the Ministry of Economy and the Ministry of Finance are in the process of refining the criteria for the targeting of the RON95 subsidy before presenting the final decision to the Cabinet.

“The classification of those who are eligible or ineligible for the RON95 subsidy will be based on the household’s disposable income, and the government’s intention is for up to 85 per cent of households to receive the subsidy according to this method, as it is fairer and more equitable,” he added.

-- BERNAMA