Malaysia's economic model must be readjusted to withstand external pressures, says HR minister

The Star

2 days ago

PETALING JAYA: Malaysia must re-evaluate its economic model to withstand rising geopolitical and economic pressures, says Steven Sim Chee Keong, calling for long-term investments in local talent and innovation to ensure national resilience.
Speaking at the ESG Positive Impact Awards 2024 gala night, the Human Resources Minister highlighted the urgent need for Malaysia to chart its own path amid a polarised global environment.
'We must rethink our economic model if we are to survive the binary geopolitical and geoeconomic challenges - on one hand, direct global competition, and on the other, growing superpower protectionism,' he said in his speech on Tuesday (July 15).
He stressed that Malaysia should invest heavily in home-grown capabilities, including talent, technologies, products and services, as well as trademarks which include Malaysia's brands and patents.
'Fundamentally, we need to invest in long-term strategies that enhance the economic value chain in ways that benefit both people and the environment,' he said.
As global economic stress persists, Sim urged Malaysian businesses and policymakers to look beyond immediate returns.
'Today, when the global economy is under stress, we must think of long-term gains rather than short-term profits,' he added.
Sim also addressed the growing discourse around ESG, saying it must not be viewed as a regulatory burden but rather as a protective buffer for all stakeholders.
'ESG should not be seen as a burden, but as a buffer to protect all of us.
'This is not some Western stance that is incompatible with our country or regional culture,' he said.
He reaffirmed his belief in the capabilities of Malaysian companies, including SMEs, to adapt to global trends and adopt ESG strategies with foresight.
'Malaysian companies, including SMEs, are highly capable of recognising these trends strategically and investing in long-term value,' he said.
Reflecting on the region's history, Sim said Southeast Asia has long demonstrated its ability to thrive by remaining open and independent.
'Here in Southeast Asia, we understand this historical lesson well.
'We should not be caught in the binary between empires. We are partners, builders, traders, and navigators.
'We choose openness with safeguards, pursue cooperation with clarity, and embrace technology with humanity,' he said.
Themed 'Celebrating ESG Excellence,' the gala night paid tribute to companies that are integrating ESG values into their operations beyond profit margins.
Earlier, Star Media Group Berhad (SMG) group CEO Chan Seng Fatt said the efforts of the award recipients serve as a reminder that advancing the Sustainable Development Goals is no longer optional, but the defining opportunity of our time.
'These are the leaders proving that the future of business lies not just in profit, but in purpose - not just in growth, but in impact.
'We celebrate ESG changemakers - those with the conviction that business must be a force for good, and the courage to act on it,' he said in his welcome address.
Organised by SMG and advised by Ernst & Young, the initiative is supported by a wide network of partners and endorsed by the Investment, Trade and Industry Ministry (Miti) and the Natural Resources and Environmental Sustainability Ministry (NRES).
Also present were NRES secretary-general Datuk Dr Ching Thoo and Miti's Industry, Environmental, Social and Governance senior director Nor Hasnah Badroddin.
The event was further graced by SMG chairman Tan Sri Wong Foon Meng, chief operating officer Lydia Wang and chief content officer Datin Paduka Esther Ng.