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WHAT IS MADANI?

Malaysia Madani (English: Civilised Malaysia)[1] is a policy framework and government slogan introduced by the administration of the 10th Prime Minister, Anwar Ibrahim.[2] The concept focuses on good governance, sustainable development and racial harmony

The Malaysia Madani concept was first published in a book and launched on 2 October 2022 in the Dorsett Grand Hotel in Subang, a month before the 2022 Malaysia general election.[5] After Anwar's appointment as the Prime Minister, the Malaysia Madani concept was introduced as a national policy on 19 January 2023 in Putrajaya.[4]

Madani is the acronym for the core values: keMampanan (sustainability), kesejAhteraan (prosperity), Daya cipta (innovation), hormAt (respect), keyakiNan (trust) and Ihsan (compassion).[6] The concept mainly targets the following domains:[2]

  • Community

  • Culture

  • Urban

  • Rural

The Malaysian government is implementing the Madani Economy Framework to empower and rejuvenate the country's economy over a ten-year period. This framework aligns with the 12th Malaysia Plan (12MP), which has been allocated RM415 billion to support development initiatives. Some key measures include:

  • Targeted Subsidies: The government is shifting towards targeted subsidies to ensure financial aid reaches those who need it most.

  • Tax Reforms: There are discussions about reintroducing the Goods and Services Tax (GST) and implementing a capital gains tax to expand the tax base.

  • Investment & Economic Growth: The framework aims to make Malaysia a competitive investment destination and strengthen industries like digital innovation and Islamic finance.

Challenges in Implementation

Despite its ambitious goals, the framework faces several hurdles:

  • Political Risks: Economic reforms, such as tax changes and subsidy adjustments, may have political implications for the unity government.

  • Economic Slowdown: The global economic climate poses challenges, making it harder to implement reforms effectively.

  • Structural Issues: Malaysia has struggled with low wages, declining investments, and stagnating growth since the Asian Financial Crisis.

  • Inequality & Poverty: Certain states still experience double-digit poverty levels, and over 400,000 households live in poverty.

MORE INFORMATION AT THIS LINK: https://malaysiamadani.gov.my/wp-content/uploads/2023/07/Brochure-BI-Ekonomi-MADANI-A-2.pdf 

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