Malaysia Calls for Resetting Economic Policies Amid Global Transformations
KUALA LUMPUR, Jan 9 – Malaysian Prime Minister Anwar Ibrahim has underscored the need to capitalize on the decline of traditional economic systems during a period of global transformation. He called for a resetting of economic policies towards a more just and effective multilateralism approach.
In his opening speech at the Malaysian Economic Forum 2025, Ibrahim emphasized that the end of the era dominated by a limited elite controlling the global economy creates a rare opportunity. With major countries withdrawing into economic isolation to protect their domestic markets, there is an imperative to rethink economic strategies.
The Prime Minister highlighted the increasing influence of the Southeast Asian region as Malaysia assumes the presidency of the Association of Southeast Asian Nations (ASEAN). The organization is poised to emerge as the fourth largest economic bloc globally due to the rapid growth of the middle class and a strengthening regional influence, drawing advantages from collaboration with economic giants, China and India.
Ibrahim took the opportunity to review his government’s achievements since taking office in 2022. These accomplishments include achieving political and economic stability and implementing progressive economic policies. Noteworthy successes in 2024 include Malaysia’s ability to control inflation, reduce unemployment, and stabilize its currency. A surge in foreign investments in renewable energy and semiconductors has underpinned these achievements.
He shared his vision for achieving a “humane economy for social justice”, emphasizing the necessity of merging economic growth with efforts to promote social justice through innovative development models and a solid economic foundation.
The forum covered significant topics, focusing on advancing innovation and manufacturing to tackle global technological competition. Discussions included fiscal and monetary policy considerations, energy transition strategies, and dynamics of regional cooperation within ASEAN.
Education reform was also a point of discussion, exploring ways to close the gap between rural and urban education, thereby enhancing access and quality. Additionally, strategies were discussed to address multidimensional poverty and foster social justice.
The Malaysian Economic Forum 2025, held on Thursday, seeks to formulate distinct strategies addressing current economic challenges and to prepare for future developments.
