KUALA LUMPUR, July 15 — When Prime Minister Datuk Seri Anwar Ibrahim took office two years ago, he promised reforms at the heart of his PKR party’s platform. While political changes have been gradual, his administration’s significant economic reforms have garnered international recognition. Investment firm JP Morgan upgraded Malaysia’s rating from underweight to neutral after almost six years, while Forbes praised the reforms for steering the Malaysian economy towards high growth and high value.
Key reforms include the diesel subsidy rationalisation programme, introduced to curb subsidised diesel leakages, expected to save RM4 billion annually. New taxes, including a higher Service Tax and Capital Gains Tax, aim to diversify and boost national revenue. The progressive wage policy seeks to align worker incomes with productivity gains, and the National Energy Transition Roadmap and New Industrial Masterplan 2030 outline ambitious goals for a green economy and robust manufacturing sector. However, despite these advancements, some Malaysians remain skeptical, with concerns about the reforms’ impact on living costs and a perceived widening wealth gap.
