MADANI Economic Reform Agenda Yielding Results

PUTRAJAYA, June 20 (Bernama) – The MADANI economic reform agenda has yielded results, said Prime Minister Datuk Seri Anwar Ibrahim.

Despite global geopolitical and economic uncertainties, Malaysia has shown encouraging achievements in investment, economic performance, and fiscal stability, said Anwar, who is also the Finance Minister.

Citing the World Competitiveness Ranking 2025 by the Institute for Management Development (IMD) recently, Anwar said Malaysia ranks 23rd in the global ranking, up 11 places from 34th in 2024.

"This is the best achievement since 2020. We are the only country to record an improvement of more than 10 places," he said at the Finance Ministry’s monthly assembly today.

Anwar said the overall ranking was driven by improvements in three key areas — economic performance, which rose four spots to 4th in 2025, up from 8th in 2024; government efficiency, which jumped eight steps to 25th in 2025 from 33rd last year; and business efficiency, which rose eight rankings to 32nd in 2025 from 40th in 2024.

"This achievement is not only the result of prudent fiscal and financial policies but also due to the competence and capability of our civil servants.

"It shows that introducing the Public Service Remuneration System was not in vain – it’s an encouragement to consider bonus-related matters next,” he added.

Anwar also said the International Monetary Fund (IMF) had noted the reform efforts.

"Through the 2025 Article IV mission, the IMF praised Malaysia’s commitment to fiscal reforms.

They described the implementation of the Public Finance and Fiscal Responsibility Act (FRA) 2023 as a key pillar of the country’s fiscal reform," he said.

Anwar reiterated that targeted subsidies and taxation measures are intended to protect the majority of the population.

He explained that each fiscal reform initiative does not neglect the welfare of the people. Instead, the government is broadening the tax base and targeting subsidies to improve aid and public services.

He noted that in 2023, the government adjusted electricity subsidies in a way that did not burden 85 per cent of the population.

"As a result, we saved RM4 billion – for what? For schools and hospitals,” he said.

Anwar added that the targeted diesel subsidy implemented last year also did not burden the public.

"Smuggling to Thailand and Indonesia had gone on for decades and (cost us) tens of billions of ringgit. The government cannot allow that. That is why we enforced controls," he said.

He said the inflation rate was kept under control at 1.8 per cent in 2024 versus 2.5 per cent in 2023 due to targeted subsidy measures.

He also said the ringgit continues to record encouraging performance, becoming one of Asia's best-performing currencies, which reflects investors' confidence in the MADANI economic reforms.

"As of June 18, 2025, the ringgit strengthened by 5.2 per cent vis-à-vis the US dollar to RM4.25. It outperformed other major and regional currencies. It registered a 6.3 per cent rise against the Indonesian rupiah, up 3.6 per cent versus the Chinese renminbi, improved 3.2 per cent vis-a-vis the Philippine peso, 0.6 per cent better against the Australian dollar, and rose by 0.1 per cent against the Thai baht," said the Prime Minister.

— BERNAMA