Rafizi: Govt-industry cooperation crucial for 13MP success, calls for paradigm shift in economic planning Posted on January 24, 2025 By serv KUALA LUMPUR, Jan 23 — Economy Minister Datuk Seri Rafizi Ramli has called for a paradigm shift in how Malaysia’s economic policies are formulated and implemented, emphasising the importance of collaboration between the government and the private sector. Speaking at a recent engagement session with industry leaders, Rafizi outlined the principles underpinning the 13th Malaysia Plan (RMK-13), which seeks to move beyond the traditional project-centric approach to focus on long-term structural and behavioural changes. “RMK-13 is not just a list of projects or billions allocated it’s about setting a foundation for meaningful change that aligns with our aspirations as a developed nation. The old approach, which heavily relied on government spending and isolated initiatives, is no longer sufficient,” he told reporters at the 13th Malaysian Plan engagement session today in Kuala Lumpur. Rafizi highlighted the significance of continuous dialogue and engagement sessions with industries as the cornerstone of the new approach. By involving the private sector from the ground up, the government aims to craft policies that address real-world challenges while fostering innovation and resilience. “This is a departure from the past. We are building policies collaboratively, ensuring they reflect the realities faced by businesses and align with the government’s broader goals. This is what will make RMK-13 successful.” The minister noted that this collaborative model is essential for breaking down the barriers that previously hindered effective policymaking. He acknowledged the challenges faced by industries — particularly small and medium enterprises (SMEs) — in navigating complex regulatory landscapes. By harmonising regulations across ministries and agencies, Rafizi believes the government can reduce bureaucratic hurdles and create a more conducive environment for growth. A key focus of RMK-13 is the overhaul of government incentives. Rafizi clarified that incentives under the new plan will not merely involve allocating funds for projects but will be designed to enable and empower industries. “The future of government incentives is not about distributing money and launching projects, it’s about creating an ecosystem where industries can thrive independently, supported by targeted policies and basic infrastructure,” he said. He mentioned the need for these incentives to adapt to the evolving needs of industries, particularly as Malaysia aims to transition to a high-technology and high-expertise economy. Sectors such as manufacturing, tourism, and technology will require a blend of regulatory reforms, financial support, and capacity-building initiatives to remain competitive. Rafizi used the example of SMEs, which often struggle under the weight of multiple regulatory requirements from various ministries. “Imagine an SME having to comply with seven or eight different sets of regulations. It becomes a burden that stifles growth. By streamlining processes and engaging directly with industry players, we can ensure that incentives are meaningful and impactful.” The event also showcased a significant departure from the traditional siloed approach to governance. Rafizi praised the collaboration between ministries and the private sector, describing it as a “game-changer” for Malaysia’s economic planning. “For the first time, we’re seeing ministries working together and engaging directly with industries to understand their needs. This allows us to craft policies that are not just top-down directives but solutions that balance the needs of both the public and private sectors,” he added. He noted that the Ministry of Economy’s role as a bridge between these stakeholders is central to RMK-13’s implementation. By acting as a coordinator, the ministry ensures that policies are not only coherent but also practical and mutually beneficial. Rafizi also addressed specific industries, such as tourism, which he described as a key area requiring regulatory reform. “Tourism is an industry with immense potential, but it’s hampered by outdated regulations,” he said. “By modernising these frameworks, we can unlock opportunities and integrate tourism into the broader economic narrative of RMK-13.” Beyond tourism, he highlighted the need for sectors like manufacturing and services to embrace higher levels of technology and expertise. This transition, he said, will require a combination of government facilitation and private sector innovation. In conclusion, Rafizi reiterated the long-term vision of RMK-13, which is not merely about immediate economic gains but about creating a resilient and sustainable foundation for future growth. “This is not just another five-year plan, it’s a roadmap to transform our economy and society. It’s about ensuring that every policy, every incentive, and every collaboration contributes to a Malaysia that’s ready to compete on the global stage.” News
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