Latest news with #SulaimanMahbob
New Straits Times
31-07-2025
- Business
- New Straits Times
Value creation takes centre stage in 13MP to drive high-income ambitions
KUALA LUMPUR: Value creation takes centre stage in the 13th Malaysia Plan (13MP), which aims to drive sustainable economic growth and propel Malaysia towards high-income nation status by 2030. Universiti Malaya's International Institute of Public Policy and Management adjunct professor Tan Sri Dr Sulaiman Mahbob said the five-year plan focuses heavily on generating greater economic value across all sectors. "This is particularly through enhancing existing resources and developing new opportunities," he said on a programme titled '13th Malaysia Plan: What it means for you and the nation', broadcast live on NST Online and Berita Harian digital platforms. "The strongest message was about value creation. It means generating more jobs, entrepreneurship and higher productivity. This approach is visible in almost every sector outlined in the plan." Sulaiman explained that value creation is linked to how inputs are transformed into higher output, contributing directly to gross domestic product growth. While the idea is not new, he said it has not always been fully addressed in past national plans. Sulaiman also pointed to the plan's alignment with the Madani economic philosophy, which stresses inclusive development, human capital, and environmental sustainability. "The plan highlights the importance of TVET, upskilling, and addressing environmental concerns. All of this supports the Madani agenda," he said. He added that the 13MP is realistic and can be implemented effectively with proper planning and coordination. "We are not starting from scratch. The foundation is already there. What is needed now is to act, build on what we have, and explore new markets," he said. Sulaiman also stressed the need for better project execution within the civil service, calling for proper design, reduced wastage, and clear evaluation mechanisms to ensure results. "Good project planning is essential. It must be done right from the start so that the intended benefits are realised," he said. Meanwhile, Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid said the government's continued focus on value creation reflects a clear intent to move Malaysia further up the value chain. "We can see that with the increase in development expenditure from RM400 billion under the 12th Malaysia Plan to RM430 billion now. "That shows the government's seriousness in funding growth-related initiatives," he added. Afzanizam noted that the allocation translates to about RM86 billion annually, with significant portions directed at the economic and social sectors. He added that funding will not come solely from the government, with government-linked investment companies and government-linked companies expected to contribute RM120 billion, and the private sector providing RM61 billion through Public-Private Partnership arrangements — bringing total planned investment under 13MP to RM611 billion. "This is quite a significant figure that could kick-start our journey toward high-income status by the end of 2030," he said, adding that the development expenditure hike was in line with his expectations. Afzanizam described the Prime Minister's approach to economic planning as structured, incorporating fiscal ceilings and floors. He noted that value creation goes hand in hand with social upward mobility, as the goal is to help people improve their current economic position. On the fiscal front, Afzanizam said Malaysia is seeing early signs of improvement as tax revenue rose 30 per cent in the first quarter of 2025 compared to the same period last year, climbing from RM600 billion to RM800 billion. He added that the fiscal deficit also narrowed to 4.5 per cent, compared to 5.7 per cent previously, following subsidy rationalisation measures, including the June 2024 diesel subsidy reform. "If this trajectory continues, the government will have greater fiscal space to spend in the coming years. "That is why I believe a higher budget allocation under 13MP is justified," he said.
New Straits Times
31-07-2025
- Business
- New Straits Times
Experts call for supply-side push in 13MP to strengthen market efficiency
KUALA LUMPUR: The 13th Malaysia Plan (13MP) should place greater emphasis on addressing supply-side challenges to better manage the rising cost of living, economists said. They called for broader structural reforms to enhance market efficiency and ensure that inflation management efforts provide real relief for consumers. Universiti Malaya International Institute of Public Policy and Management adjunct professor Tan Sri Dr Sulaiman Mahbob said that although the official inflation rate appears low, prices remain high due to structural factors triggered during the Covid-19 pandemic. "Prices increased during the pandemic and became embedded in the system," he said on a programme titled 13th Malaysia Plan: What it means for you and the nation, broadcast live on NST Online and Berita Harian digital platforms. "Even though inflation is now low, the cost of goods has not decreased because those higher prices are already built into the final products we consume." Sulaiman pointed out that the depreciation of the ringgit against the US dollar, driven by rising interest rates in the United States, has also contributed to higher prices for imported goods. He explained that monetary policy typically addresses inflation from the demand side through interest rate adjustments or exchange rate management, but the supply side is often overlooked. "For example, the food industry faces its own set of structural issues. That is why we need to promote modern farming to boost production and help bring prices down," he said. Sulaiman added that increasing production could lead to stock accumulation, which would eventually help ease prices. However, he noted that in sectors dominated by monopolies or cartels, such benefits are often undermined by market distortions. "In Malaysia, there are monopolies, collusion and cartels. These imperfections prevent the market from functioning efficiently and contribute to persistently high prices," he said. He stressed that tackling the cost of living requires a more balanced approach that includes both demand and supply-side reforms, especially in food and other essential goods. He also urged policymakers to go beyond monetary tools and consider reforms that strengthen production capacity and market competitiveness, particularly in sectors that affect everyday living costs. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that in many cases, producers or businesses have little incentive to reduce prices, even after pandemic-related pressures have subsided. "This is the typical behaviour of firms or producers. They may think, why should I lower the price? Covid-19 is over, flight ticket prices have come down, but if I keep my price the same, people will still buy. Even if I raise it slightly, they will still buy. "So, at the business or export level, there is no push to reduce prices," he said. In view of this, Afzanizam said the government must play a role in injecting more competition into the market to drive prices down and expand consumer choice. "For instance, we used to rely solely on Touch 'n Go for toll payments. Now, other cards are accepted as well. That is an example of how breaking a monopoly can make the market more dynamic. The same principle can be applied to other sectors," he said. He added that increasing competition would help make prices more flexible and more responsive to actual production costs and consumer demand. He noted that, at present, prices tend to remain rigid and continue to rise despite improvements in the broader economic environment.
![Experts break down the 13MP [LIVE]](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fimages%2Farticles%2Ftalk31_NSTfield_image_socialmedia.var_1753931593.jpg&w=3840&q=100)
New Straits Times
31-07-2025
- Business
- New Straits Times
Experts break down the 13MP [LIVE]
KUALA LUMPUR: As Prime Minister Datuk Seri Anwar Ibrahim prepares to table the 13th Malaysia Plan (13MP) in Parliament at noon today, the New Straits Times (NST) and Berita Harian (BH) present a live discussion offering expert insights into the country's next five-year development roadmap. The session, "Insights into the 13MP", features Tan Sri Dr Sulaiman Mahbob, adjunct professor at Universiti Malaya's International Institute of Public Policy and Management, and Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid. Moderated by NST Business Times news editor Muhammed Ahmad Hamdan and BH business editor Kamarulzaidi Kamis, the programme will begin with a recap of the 12th Malaysia Plan and the panellists' expectations for the 13MP. This first segment will run for about 30 minutes before giving way to the live streaming of the tabling in Parliament at noon. Post-tabling, the programme will resume with a post-session discussion, diving into the key highlights of the 13MP and gathering expert views on the plan's implications and priorities. Catch the full programme starting at 11.30am on the official Facebook pages of the New Straits Times, Berita Harian and Harian Metro.
New Straits Times
31-07-2025
- Business
- New Straits Times
Experts break down the 13MP
KUALA LUMPUR: As Prime Minister Datuk Seri Anwar Ibrahim prepares to table the 13th Malaysia Plan (13MP) in Parliament at noon today, the New Straits Times (NST) and Berita Harian (BH) present a live discussion offering expert insights into the country's next five-year development roadmap. The session, "Insights into the 13MP", features Tan Sri Dr Sulaiman Mahbob, adjunct professor at Universiti Malaya's International Institute of Public Policy and Management, and Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid. Moderated by NST Business Times news editor Muhammed Ahmad Hamdan and BH business editor Kamarulzaidi Kamis, the programme will begin with a recap of the 12th Malaysia Plan and the panellists' expectations for the 13MP. This first segment will run for about 30 minutes before giving way to the live streaming of the tabling in Parliament at noon. Post-tabling, the programme will resume with a post-session discussion, diving into the key highlights of the 13MP and gathering expert views on the plan's implications and priorities. Catch the full programme starting at 11.30am on the official Facebook pages of the New Straits Times, Berita Harian and Harian Metro.
