“We need to internationalise local start-ups and small- and medium-sized enterprises (SMEs)!” said the Prime Minister of Malaysia, Anwar Ibrahim, at the launch of the Madani Economic Framework.
He shared this poignant point to reiterate how the Madani Economic Framework is inclusive and will not leave any Malaysian behind. This will be achieved via two key thrusts:
- Create more successful globally-recognised Malaysian SMEs through more Domestic Direct Investments (DDIs) and supporting the development of local industry leaders in growth sectors
- Grow the export capabilities of SMEs via development initiatives, such as the Mid-Tier Companies Development Programme (MTCDP) and Market Development Grant (MDG)
With the latter, an allocation of RM20 million will be allocated via the Malaysia External Trade Development Corporation (MATRADE).
“(With these imminent growths,) the capital market also needs to be more lively and bring in more company listings. This (,eventually,) will give birth to new local unicorns! As s, the banking system and capital markets must act quickly to meet the financing needs of businesses,” Anwar added.
To power the growth of Micros and SMEs (MSMEs), the Malaysian Prime Minister also announced the following:
- An additional RM1 billion investment to match private funds to support local start-ups, digital ecosystem players, and technopreneurs
- Widening the implementation of upskilling programmes, such as hackathons (Corporate Hackathon and MYHackathon) and similar initiatives under the SUPER 2021-2030 platform
- Extra allocation of RM100 million to intensify the Research, Development, Commercialisation, and Innovation ecosystem (R&D&C&I)
- Increasing the digitalisation matching grant by another RM100 million to assist MSMEs with accelerating their digital transformation efforts
“(It goes without saying how) about 79% MSMEs consist of micro-businesses. Although most of them are single owners or inherited family businesses, they have greater potential for growth and foreign market expansion when they are provided with the necessary support and facilities. While Belanjawan MADANI 2023 contains over 70 initiatives for MSMEs, more needs to be done!” Anwar noted.
To quickly address this, Malaysia’s Ministry of Economy already deployed its Inisiatif Pendapatan Rakyat programme to reinforce domestic spending and bolster businesses business-as-usual capabilities.
Beyond ongoing initiatives that are in place, Anwar also confirmed that each ministry that is working towards creating a sustainable growth economy for Malaysia will be announcing their own respective programmes to support the Madani Economic Framework.
“With this initiative, the efforts to empower the nation’s economy and (sustain the livelihood of all Malaysians) will continue to be further improved,” said Anwar.
He believes how Malaysia, which now ranks 20th globally in the Global Startup Ecosystem Report 2023 and is valued at $46 billion for the first half of 2020 to 2022, can climb up the ranks and widen its valuation with the new Madani Economic Framework.
“We need to think globally and internationalise the economy to generate prosperity for all Malaysians,” Anwar added.
Key takeaways about the Madani Economic Framework can be viewed below:
(Video credit: Malaysia Madani)