Ensure reforms, policy coherence in revamped 13MP, urge trade groups

Free Malaysia Today

6 days ago

Finance minister II Amir Hamzah Azizan has taken on the duties of the economy minister following the resignation of Rafizi Ramli, and will lead the 13MP revamp.
PETALING JAYA : Two business groups want Putrajaya to uphold policy continuity and preserve key structural reforms in the revised 13th Malaysia Plan (13MP), following the recent resignation of economy minister Rafizi Ramli.
The Small and Medium Enterprises Association of Malaysia (Samenta) urged the government to uphold clarity and transparency in the 13MP overhaul, stressing that both domestic and foreign investor confidence hinges on it.
Samenta president William Ng said business confidence would improve if the revamped 13MP delivers a sharper focus, substantive structural reforms, and clear long-term direction.
However, he cautioned that a rushed process and excessive politicisation of reforms could undermine investor confidence.
'We want to see policy coherence, commitment to talent development, and a shift toward a more competitive and innovation-led economy. What we don't want is another round of short-termism or populism,' he told FMT.
Ng said his biggest concern was whether the input of industry players over the past one year would hold the same weight since finance minister II Amir Hamzah Azizan, tasked with leading the overhaul, was not fully involved in consultations.
'While Rafizi may have strong views that may not be fully appreciated by other ministers, these views are backed by extensive industry consultation.
'The timing of the revamp is certainly abrupt, but not necessarily unwelcome,' he said. 'Any changes at this stage will not erode investors' confidence as long as there is clarity and consistency in the final document.'
Meanwhile, the Malaysian Employers Federation (MEF) expressed support for the review, citing recent global developments, including US tariffs and the Iran-Israel conflict.
However, it expressed concern over the timing of the revamp, noting that the plan is scheduled to be tabled in Parliament at the end of July.
MEF president Syed Hussain Syed Husman said the group was concerned about policy continuity and predictability as employers need stability for long-term planning especially as regards investment, expansion and hiring decisions.
'Abrupt shifts in policy direction may erode investor confidence and disrupt strategic business planning.
'Investors may be concerned that such last-minute changes could lead to the abandonment of previous strategic initiatives, especially those related to digital transformation, ESG, and talent development, unless clear continuity is demonstrated,' he said.
Syed Hussain said it was unclear whether the overhaul process would be inclusive and consultative.
'MEF is concerned that without structured stakeholder engagement, the revamped 13MP may fall short in addressing ground level challenges,' he said.
Syed Hussain also expressed concern that, with the finance minister II leading the overhaul, the 13MP revamp may be skewed towards fiscal and budgetary considerations while omitting to address structural issues faced by employers.
He added that there were concerns that with a new economy minister expected to take office, key initiatives championed by the former minister might be sidelined without explanation.
These include digital economy initiatives, innovation ecosystems, and green economy aspirations, which he said may lose traction without firm ministerial commitment.
Syed Hussain expressed hope of a transparent, inclusive and balanced approach to finalising the revamped 13MP.
'It is essential that the revamped 13MP reflects the actual needs of the business community, supports productivity-led growth and addresses labour market challenges.
'Frequent shifts in national direction without broad stakeholder consultation may be perceived as policy volatility, undermining Malaysia's reputation as a stable investment destination.'
On Friday, the government announced that Amir had taken on the duties of the economy minister and would lead the 13MP revamp.
He said the revamp had become necessary following feedback from Cabinet colleagues.
Rafizi, however, questioned the last-minute decision to revamp the plan, although he acknowledged that it contained 'bold and radical' policies that may not have sat well with certain ministries.
The PKR leader said he had presented the plan to Prime Minister Anwar Ibrahim on multiple occasions, as well as twice to the Cabinet, in order to achieve a consensus.