KUALA LUMPUR, July 31 — Malaysia has the potential to grow more than 4.8 per cent if the newly launched Madani Economic narrative is executed swiftly among the ministries and government agencies, said an analyst.

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the collective efforts all depended on how quickly the government could execute their developmental programmes.

"Also, at the same time, how it can improve the coordination among the ministries and government agencies so that they are not working in silo and be able to produce the intended outcome,” he told Bernama.

Moreover, Mohd Afzanizam said Malaysia’s population is still growing and the country is endowed with an abundance of natural resources such as oil and gas.

"Not to mention we are a multicultural, multilingual and multiracial nation and these provide a strong foundation for foreign direct investments and talents to come here.

"These factors are good for businesses to thrive,” he said, adding that he hoped to foresee the execution of the Madani Economy soonest for the betterment of the rakyat.

The Madani Economy: Empowering the Rakyat was launched by Prime Minister Datuk Seri Anwar Ibrahim on July 27, 2023.

The economic framework outlines two main focus areas, namely to restructure the economy to the level of Malaysia as an Asian economic leader and improve the quality of life for all Malaysians.

The framework would also serve as the foundation for several other specific policies to be announced later, including the National Energy Transition Roadmap, the New Industrial Masterplan 2030, and the Mid-Term Review of the 12th Malaysia Plan (12MP).

Echoing a similar view, MIDF Research said the Madani Economic Narrative has identified high-level targets and it expects more details to be unveiled by each ministry going forward.

"For now, the impact on the government’s fiscal position cannot be fully measured until all initiatives are revealed,” it said.

However, the research house said that improvements in fiscal space this year on the back of sustained economic growth would allow the government to finance the initiatives that have been announced in the Madani Economic Narrative such as allowances for civil servants and e-Tunai credit.

"We opine that the document sets clear goals and targets for the country and if done right, Malaysia’s growth potential could be higher than the average growth of 4.7 per cent since 1998,” it said.

MIDF Research expects the announcement of other development plans, including the mid-term review of 12MP, the New Industrial Master Plan 2030, and the upcoming Budget 2024, would assimilate the same aspirations and targets as outlined in the Madani economic roadmap.

It also viewed the Madani Economy document as the country’s future economic development roadmap for the federal government to boost Malaysia’s competitiveness to become the regional champion, reinvigorating public service delivery and ultimately promoting economic growth which would benefit the rakyat.

"Not only the government and the public sector, but every unit in the economy will also play a part to propel the growth of the country to the next level,” it added. — Bernama