Uplifting Living Standards in Malaysia: A Multifaceted Approach Under Anwar Ibrahim's Government

New Straits Times16-05-2025

IN Malaysia today, under Prime Minister Datuk Seri Anwar Ibrahim's leadership, something intriguing is unfolding.
The government is attempting a high-wire act: balancing the urgent need to lift living standards amid rising costs and global economic turbulence, while laying down the scaffolding for a more resilient, inclusive economy.
And it's doing this not with flashy stimulus checks or slogans, but through a blend of fiscal realism and strategic reform.
If you zoom in on the 2025 Budget, you'll notice a quiet but significant pivot in how Malaysia supports its people.
The government has allocated RM13 billion - the largest direct cash aid allocation in national history - to programmes like Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA).
These are not mere handouts; they're micro-targeted relief channels reaching nine million citizens, or about 60 per cent of the adult population. The idea is simple: soften the blows of inflation, especially on food and fuel, and inject purchasing power into the base of the economy.
At the same time, the minimum wage has been raised to RM1,700 per month (effective February 2025), signaling that labor dignity still matters in this algorithmic age.
But Anwar's team knows that Band-Aids won't fix structural wounds. Rather than launching a headline-grabbing stimulus package, the administration is pushing forward with what could be described as an "invisible stimulus" - a layered reform agenda that targets fuel subsidies, tax structures, and long-term investments.
Malaysia is now rolling back blanketsubsidies for RON95 petrol and diesel, replacing them with targeted assistance.
It's politically risky - no one likes to pay more at the pump - but it's the kind of reform that says: the days of fiscal leakage are over.
Meanwhile, high- income earners are now subject to a two per cent tax on dividend income above RM100,000, and the Sales and Services Tax has been expanded to new sectors.
These are moves aimed at rebuilding state revenue without triggering austerity.
The government is also playing the long game. Billions are being committed to infrastructure, education, and health, not just as social investments, but as tools for growth.
A prime example is the Johor-Singapore Special Economic Zone, engineered to attract foreign investors and create a new class of skilled jobs.
Meanwhile, RM40 billion in credit facilities and loan guarantees are being mobilised to support SMEs, a critical step to ensure the middle class and entrepreneurial base aren't left behind in a two-speed economy.
Global institutions are taking note.
In its April 2025 Malaysia Economic Monitor, the World Bank projects GDP growth at 3.9 per cent for 2025, slightly lower than earlier estimates due to global economic headwinds.
But more importantly, it urges Malaysia to focus on inclusive growth through higher social spending, education, and place-sensitive policies that address regional inequality.
Similarly, the IMF's 2025 Article IV Consultation Report pegs growth at 4.1 per cent and calls for Malaysia to take advantage of improved macroeconomic conditions to rebuild buffers, enhance policy credibility, and accelerate structural reforms.
Both institutions commend Malaysia's fiscal strategy while sounding a common theme: now is not the time to blink.
Of course, none of this will be easy. Anwar's coalition government walks a political tightrope, and subsidy rationalisation is a dangerous game in a populist age. The cost of miscommunication or delay could be steep.
But if Malaysia can hold this course if it canmanage the optics while maintaining the discipline - it could emerge not just as a recovering economy, but as a case study in how a middle-income country transitions through turbulence with its dignity, cohesion, and competitiveness intact.
In a world addicted to short-term fixes, Malaysia is attempting something harder: think long-term, act incrementally, and bet on its own maturity. In this era of geopolitical fragmentation and economic anxiety, that's not just commendable—it's strategic.
*The writer is an international relations analyst and economic commentator. A former senior researcher at the Malaysian Institute of Economic Research, he has written extensively for numerous regional outlets. Currently he is a senior consultant with Global Asia Consulting and an adjunct lecturer at Universiti Teknologi Petronas.

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#NSTviral: Johor MB raps poor bus flow at CIQ, orders urgent fix [WATCH]

New Straits Times

an hour ago

New Straits Times

#NSTviral: Johor MB raps poor bus flow at CIQ, orders urgent fix [WATCH]

JOHOR BARU: Bus commuters queuing dangerously long, even down the staircase and spilling near the lanes, at the Bangunan Sultan Iskandar (BSI) checkpoint drew immediate flak from Johor Menteri Besar Datuk Onn Hafiz Ghazi. He conducted a surprise spot check early yesterday morning at 4.30am, inspecting the Customs, Immigration and Quarantine (CIQ) Complex. The visit exposed a congested and unsafe situation for thousands of public bus passengers crossing the Johor-Singapore border daily. The inspection revealed a severe congestion problem, prompting Onn Hafiz to call for immediate remedial action to safeguard commuter safety and restore efficient cross-border travel. Calling the situation "unacceptable, unsatisfactory and unsafe", Onn Hafiz convened a high-level coordination meeting with key enforcement and infrastructure agencies at noon the same day to hammer out urgent solutions. He expressed concern over the poor management of public transportation at the checkpoint and said the present system did not reflect the standards expected of Johor's international gateways. The state government, he said, proposed short- and medium-term measures to increase the number of buses and improve service efficiency to cut down long waiting times. He also stressed the need to enhance the overall quality of public transport and to tighten enforcement on factory buses to ensure full compliance with operational standards. "Our people, many of whom rely on these buses to get to work in Singapore, deserve better. "Their safety and daily experience should never be compromised," he said. Meanwhile, Johor Works, Transportation and Infrastructure Committee chairman Mohamad Fazli Mohamad Salleh carried out a follow-up visit to BSI to assess conditions and ensure immediate follow-through. "I visited the CIQ, BSI to monitor the issues arising at the border crossing with the departments and agencies involved. "Several matters were discussed and immediate action will be taken for the smooth flow of traffic at BSI," he said. The menteri besar's visit is part of a broader push to improve the efficiency and safety of Johor's international checkpoints, particularly ahead of the anticipated increase in traffic due to the Johor-Singapore Special Economic Zone. Onn Hafiz's regular inspections at the CIQ complexes in BSI and Sultan Abu Bakar Complex (KSAB) are not about assigning blame but resolving longstanding issues. He said the problems were legacy in nature and that the state is working closely with the Immigration Department and Home Ministry to ensure safe, smooth service at both checkpoints. Footage of his visit was captured and uploaded on social media platforms, where Onn Hafiz was heard calling for the safety and convenience of commuters, especially those heading to Singapore for work, to be prioritised. He was also heard saying "the current state of affairs does not reflect the standards Johor aspired to". The Johor government has made CIQ efficiency a state priority, especially with the Johor-Singapore Special Economic Zone (JS-SEZ) set to further increase cross-border traffic.

#NSTviral: Johor MB raps poor bus flow at CIQ, orders urgent fix [WACTH]

New Straits Times

an hour ago

New Straits Times

#NSTviral: Johor MB raps poor bus flow at CIQ, orders urgent fix [WACTH]

MADANI govt committed to reforms, but needs time

The Sun

2 hours ago

The Sun

MADANI govt committed to reforms, but needs time

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim says the MADANI unity government is deeply committed to tackling corruption and abuse of power but the reforms to combat these menaces will take time to materialise. 'There's no turning back. What I am certain is that every month and every year there must be some progression in addressing these issues,' he said. Anwar, who is also Finance Minister, said there are those who are impatient and want reforms fast, but they are 'blinded to the facts and reality.' He said there must be wisdom (hikmah) in the way the MADANI government goes about undertaking such reforms. He cited how Pakatan Harapan does not even have a simple majority in Parliament, which is why as a coalition government, 'we have to work together.' 'And we are fortunate, because UMNO and Barisan Nasional have now turned to be one of the core pillars committed to this reform and support,' he said in his keynote address at the launch of the Centre of Excellence for Research and Innovation in Islamic Economics (i-RISE) here today. 'But you can't take things for granted, because the process of negotiations, discussions and engagement is important,' he said. He said it is vital to work gradually and get the consensus between the key parties including those from Sabah and Sarawak. He also highlighted that proper governance is essential to ensure economic growth and progress whether a country practices Islamic or conventional banking or both banking systems like in Malaysia. He said that there should be sustainability and clarity in a country's macroeconomic policies and in governance which promotes development but avoids financial leakages and endemic corruption. 'Almost without exception, Muslim countries are not poor, but the poverty is because of the tendency to either condone and use power and privilege to squander wealth,' he said. He also lamented over gender poverty in Muslim countries, but said Malaysia is fortunate as the problem is relatively absent. He said that the MADANI unity government remains committed to support studies and research and allow Islamic economics and Islamic instruments to be practiced, supported and expanded. To this end, he called on bankers, academicians, intellectuals, scholars, professionals and Islamic scholars 'not to ignore the importance of what proper and good governance entails' when undertaking reforms in related disciplines. 'Through good governance with clear policies and instruments, institutions must protect the system from excesses,' said Anwar. In this way, the country would grow and possess the capacity to attract foreign direct investments and penetrate new markets as a trading nation. He described the global halal industry as having massive potential of up to US$3 trillion (US$1 = RM4.23), but said this means nothing if 'you don't engage, penetrate and expand into new markets.' On an encouraging note, he said, Malaysia has emerged as a major centre of halal certification envied by other countries wanting to learn and share its expertise, which in the process would help develop linkages with halal ventures globally.