KUALA LUMPUR, July 27 — Prime minister Datuk Seri Anwar Ibrahim acknowledged today the aspirations of Wawasan 2020 and grandiose promises of the past were unattainable, as the country remains trapped in a vicious economic cycle of high costs, low competitiveness and low wages.

In launching the federal government’s Ekonomi Madani: Memperkasa Rakyat (Madani Economy: Empowering the People) framework, Anwar said the present circumstances necessitate meaningful change in the country after taking into account the years of poor governance, cracks in the economic structure and dominance of the ruling elite.

"It is very regrettable that there are people who still want to defend the broken practices and policies that have contributed to the country’s decline.

"I wish to invite all my friends, political leaders, entrepreneurs and traders, civil servants, workers and citizens to be more honest and braver in embracing a new reality.

"We need a new complete and fresh economy platform. We need a new economic framework,” he told delegates during the framework’s launch at the Securities Commission here.

Wawasan 2020 or Vision 2020 is a Malaysian ideal introduced by former prime minister Tun Dr Mahathir Mohamad in 1991, in which he outlined nine strategic challenges that Malaysia must overcome by 2020.

Anwar said Malaysia had, in the past, experienced rapid development from the 1960s to 1980s with average growth of more than 7 per cent per annum.

"At that time, the rakyat enjoyed revenue spillage as both economic growth and wage increment were aligned.

"However, the 1997-1998 Asian Financial Crisis has nevertheless widened the gap between economic growth and wages,” he said.

As increments in wages were mismatched against the economic boom, Anwar said almost half of the households in the country were subsequently burdened with debts, with poverty soaring further at the onset of the Covid-19 pandemic in 2020.

He cited the Department of Statistics’ Salaries and Wages Survey Report 2021, pointing out that almost half of the nation’s workforce aged 24 and below earned less than RM2,250 monthly.

"As I have stressed, the continued deficit in our expenditures since 1998 coupled with debts expecting to reach over 60 per cent of the gross domestic product (GDP) will bring about a significant impact to the country’s economy.

"The country is burdened with bloating national debts and 16 per cent of the nation’s revenue is allocated just to service its debt.

"This concerning phenomenon will impede our ability to focus on development that will ensure comfortability to the people including public investment,” he said.

Thus, Anwar said the Madani Economy: Empowering the People framework is a comprehensive plan for Malaysia to address various challenges and issues related to the country’s competitiveness and investment attractions, as well as outlining actions to address current issues that affect people’s lives.

"It is about elevating the status and dignity of our nation, with two main focuses: restructuring the economy towards making Malaysia a leading Asian economy, and ultimately, providing the people with the benefits to enjoy a better quality of life,” he said.