We want Malaysia to be a high-income nation, says Hamzah

Free Malaysia Today

22-05-2025

Opposition leader Hamzah Zainudin said Malaysia can no longer remain complacent and that steps must be taken to revive its economy. (Envato Elements pic)
PETALING JAYA : Freeing Malaysians from the middle-income trap and taking the nation to a high-income level will form the core of a Perikatan Nasional (PN) government's economic policy, according to opposition leader Hamzah Zainudin.
Hamzah, the PN deputy chairman and Bersatu deputy president, said the approach would be based on fairness to ensure shared prosperity.
'Given the current state of our economy, Malaysia can no longer afford to be complacent,' he said at the ISEAS-Yusof Ishak Institute in Singapore today.
'It is time for us to revive the economy, and to move forward smarter, faster, and more equitably,' he said.
Hamzah said that for Malaysia, a vibrant and dynamic economy was still within reach 'if we have the will and the capability for structural reform'.
He said Malaysians would also have to redefine national priorities, adopt responsible fiscal discipline, and expand the revenue base in a sustainable and strategic manner.
The Larut MP said Malaysia must be able to strike a balance between development spending and welfare allocation to protect vulnerable groups.
'Our focus must shift to high-impact investments and capacity-building – in education, women and youth empowerment, digital infrastructure, and technical skills – to prepare our country for the future.'
He said PN would ensure fiscal discipline to reduce the nation's over-dependence on debt.
'This will require reforms in the tax system for greater efficiency, eliminating leakage and wastage, and streamlining government services through digitalisation while cutting red tape,' he said.
Hamzah said that to expand the revenue base, the government would have to tap new and sustainable sources of wealth such as renewable energy and critical minerals like rare earth while it moves up the global supply chain, especially in semiconductors, to capture higher value-added opportunities.
To make it an incentive to increase productivity, he said, bold measures would be introduced to drive economic output, enhance national competitiveness, and generate higher income and tax revenue.
The former minister said that to attract quality investments and make Malaysia globally competitive, steps would be taken to enhance transparency and efficiency to improve investor confidence.
He said PN would make it a priority to return Malaysia to the Top 10 in the 'Ease of Doing Business' ranking by simplifying licensing, cutting approval times, and aggressively combating corruption. The country has slipped to 12th place in the ranking.
'We are also committed to restoring investor confidence by ensuring political stability, as well as clear and consistent policies, because investors value predictability, not uncertainty.'
He said the capital and equity markets would see new and diverse financial instruments to offer domestic and international investors 'a fresh flavour'.
Hamzah also said Malaysia must reduce its reliance on external sources for food and labour in order to build a resilient and self-sustaining economy.
As of 2023, Malaysia had spent more than RM75 billion on food imports, he said, describing this figure as unsustainable.
He said steps would be taken to strengthen food security by boosting the domestic agro-industry and modernising agricultural practices while offering targeted incentives and training to empower young agricultural entrepreneurs.
Hamzah said that to reduce reliance on migrant labour, there would be investments in automation, the local workforce would be upskilled, and vocational and technical training would be given priority.
'We will protect workers' rights by encouraging collective bargaining to ensure fairness and dignity for all,' he added.