The RM2.5b giveaway that Malaysia can't afford
| When Prime Minister Anwar Ibrahim delivered his 'Penghargaan Untuk Rakyat' speech on 23 July 2025, he painted a confident picture of Malaysia's economic trajectory.
Growth stood at 4.4 percent for the first quarter of 2025, with expectations of 4.5 percent in the second. The ringgit had strengthened against the US dollar, climbing to RM4.23/US$.
Malaysia rose by 11 spots to 23rd place in the World Competitiveness Index, and total approved investments reached a record RM384 billion last year.
However, beyond the headline figures lies a more complex and fragile reality. Analysts have pointed out that Q1 growth underperformed market expectations.
Exports remain uneven. Domestic consumption is cooling, and Bank Negara's recent rate cut reflects the underlying weakness that persists despite upbeat official messaging.
If this is truly a period of recovery, it should have been...
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
2 hours ago
- New Straits Times
Corporate Malaysia backs Sejahtera Madani with RM120mil, surpassing target
KUALA LUMPUR: Corporate Malaysia has stepped up in a big way to support the government's mission to eradicate poverty, with 38 companies collectively contributing close to RM120 million to the Sejahtera Madani Fund—a national initiative aimed at uplifting poor and hardcore poor households registered under the eKasih National Poverty Database. The fund, launched by Prime Minister Datuk Seri Anwar Ibrahim last week, exemplifies a whole-of-nation commitment to targeted poverty eradication and sustainable socio-economic upliftment, having already more than doubled its initial RM50 million target. Among the top contributors is the Weststar Group, leading with a RM15 million donation. Other key corporate giants such as YTL Corporation Bhd, Berjaya Corporation Bhd, MMC Corporation Bhd, Genting Bhd, DRB-Hicom Bhd, and Tradewinds Group (M) Sdn Bhd/Yayasan AlBukhary each pledged RM10 million, demonstrating strong private sector commitment to national development goals. Other notable contributors include Sapura Secured Technologies with RM3 million and Yayasan Pembangunan Ekonomi Islam Malaysia with RM2.61 million. A wide range of companies have also pledged between RM1 million and RM500,000, reflecting diverse industry participation across infrastructure, healthcare, logistics, and property sectors. These include Malaysia Resources Corporation Bhd, Yinson Holdings Bhd, WCT Bhd, Westports Malaysia Sdn Bhd, S P Setia Bhd, SD Guthrie Bhd, and ITMAX System Bhd. Smaller but meaningful contributions were also received from FGV Holdings Bhd (RM150,000), Farm Fresh Bhd, Pharmaniaga Bhd, YHA Travel and Tours, and Darul Fikir, each contributing RM100,000—demonstrating that companies of all sizes are participating in this national effort. Beyond financial contributions, several companies have launched parallel programmes to support economic resilience. Telekom Malaysia pledged RM10 million for a Digital Entrepreneurship Programme, Grab Malaysia introduced a RM5 million Economic Empowerment Initiative, while Prudential BSN Takaful committed RM3 million to expand its Microtakaful Jariyah (MTJ) programme. National champions Petronas and Khazanah Nasional Bhd have also been appointed strategic partners of the fund, ensuring sustainability and institutional backing. The Sejahtera Madani Fund reflects a powerful synergy between government policy and private sector commitment, aimed at driving inclusive and sustainable development. Beyond delivering targeted aid to vulnerable communities, the fund supports long-term economic empowerment through initiatives focused on entrepreneurship, micro-insurance, and digital inclusion. The strong response from corporate Malaysia underscores a growing recognition of Environmental, Social, and Governance (ESG) responsibilities—and highlights the evolving role of businesses as key partners in shaping the nation's socioeconomic future.
The Star
4 hours ago
- The Star
13th Malaysia Plan urged to include Indian community initiatives
PETALING JAYA: The upcoming 13th Malaysia Plan (13MP) should incorporate the Malaysian Indian Blueprint and the Indian Community Action Plan if the government is committed to uplifting the Indian community, says the Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry (KLSICCI). Its president Nivas Ragavan said Prime Minister Datuk Seri Anwar Ibrahim acknowledged that while the majority in hardcore poverty are Malays, the Indian community remains severely affected. "If the Prime Minister and the Unity Government are truly serious about advancing the Madani Economic Framework, both the Malay and Indian communities must be placed at the heart of the nation's mainstream economic agenda," he said in a statement on Monday (July 28). The Star highlighted that the 13MP is expected to enhance Malaysia's competitiveness by promoting high-value manufacturing through business and investor-friendly policies, according to economists. The 13MP document is scheduled to be tabled at the Dewan Rakyat sitting on July 31 by Prime Minister Datuk Seri Anwar Ibrahim. The prime minister previously said the 13MP was being formulated with a focus on the economic empowerment of the people through increased income, inclusive and sustainable economic structural reforms, and strengthening governance and efficiency in the delivery of public services.
Malaysiakini
4 hours ago
- Malaysiakini
EU: Anchor of stability amid global trade tensions
COMMENT | In a world where trade tensions are rising and protectionism is creeping back, the European Union is doubling down on its commitment to free trade and international cooperation. European Commission president Ursula von der Leyen put it plainly: 'Tariffs are taxes that only hurt businesses and consumers.' This straightforward message reflects the EU's firm belief that walls and barriers won't help anyone in the long run. The EU's robust legal framework, enforced by EU member states, the European Commission, and the Court of Justice, ensures that international trade follows clear, agreed-upon rules. These rules, grounded in the principles of the United Nations and the World Trade Organization, are not just about trade. They promote prosperity, cooperation and stability worldwide, including in the fast-growing and strategically vital Indo-Pacific region. While some countries might be tempted to retreat behind protectionist policies, the EU is keeping its doors open, especially towards Southeast Asia. This openness is based on a simple conviction: that fair, rules-based trade and investment are powerful engines for sustainable growth and development. This is exactly how peace and prosperity in the EU were built over the past decades. Now, this belief is driving a renewed effort to conclude an ambitious, comprehensive and balanced free trade agreement (FTA) with Malaysia. Partners in stability and prosperity The partnership between the EU and Malaysia, as well as with Asean, is built on trust, transparency, and a shared vision for peace, stability, and prosperity. And on mutual engagement, as evidenced by the renewed dynamics in our partnership with the visits of Prime Minister Anwar Ibrahim – also as Asean chair – to Brussels, Rome and Paris in the past months, as well as the visits to Kuala Lumpur by the Poland president, Denmark foreign minister, Finland trade minister and most recently the EU high representative and vice-president of the commission on the occasion of the 58th Asean Foreign Ministers Meeting. Stability and predictability are vitally important for business and the global economy. The recent relaunch of trade negotiations reflects our shared commitment to an open, rules-based international trade order – a principle Anwar has consistently advocated, and that both sides strongly uphold. The highly promising first round of EU-Malaysia trade negotiations has just concluded in Brussels, the substantive engagement from both sides signalling a fresh push to deepen economic ties. These ties are already significant: the EU is Malaysia's fourth-largest trading partner and second-largest source of foreign direct investment. For the EU, Malaysia ranks as its third-largest trading partner in Asean. But there's plenty of untapped potential, and the free trade agreement is key to unlocking it. By slashing tariffs and removing non-tariff barriers, the agreement would open up markets for goods, services, investment, and procurement flows. It would also provide clearer rules on intellectual property and digital trade - areas that are increasingly important in today's economic landscape. Freer trade also helps cushion the impact of global supply shocks by diversifying sourcing and reducing dependence on any single country or supplier. For consumers both in the EU and Malaysia, the benefits are tangible: lower prices, more choice, and greater supply security, especially in essential sectors like food, medicine, and technology. For Malaysian businesses, this means preferential and easier access to the EU's vast single market - the second-largest in the world - creating new opportunities, boosting competitiveness, and attracting high-quality investment. FTA to strengthen ties Ultimately, the FTA is more than just a commercial tool - it is a platform to shape a future-oriented, resilient relationship that reflects the shared ambitions of Malaysia and the EU for sustainable and inclusive growth. It will further strengthen the foundation of our relationship, built on trust and mutual benefit. In a time of growing trade tensions and geopolitical uncertainty, the EU's commitment to open markets and international rules provides an anchor of stability. As a predictable, transparent, reliable and open partner, the EU is ready to deepen its engagements with the like-minded. The renewed EU-Malaysia free trade talks highlight how cooperation, not confrontation, can pave the way for a more prosperous future for both regions and the global economy. RAFAEL DAERR is EU ambassador to Malaysia. This op-ed is also jointly written by 16 ambassadors of EU member states in Malaysia. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
