Govt aims to narrow urban-rural income gap through MADANI Economic framework

THE Government has set out long-term strategies to reduce widening income disparities and expand high-paying employment opportunities between urban and rural areas, anchored on the MADANI Economic framework and the 13th Malaysia Plan (RMK13).

During Thursday’s session of the Dewan Negara, Senator Datuk Wira Koh Nai Kwong questioned the Minister of Economy on plans to tackle income and employment gaps, and how budget allocations for rural economic development are assessed for effectiveness.

Economy Minister Akmal Nasrullah Mohd Nasir told the Upper House that the ministry has outlined a multi-pronged approach designed to create an inclusive, high-quality growth model.

“The MADANI Economic framework forms the backbone of our national strategy to restructure the economy towards sustainable and equitable growth.

“RMK13 reinforces this by focusing on three core principles: raising the ceiling, strengthening governance, and lifting the floor. This demonstrates the Government’s commitment to ensure rural communities are not left behind while high-income employment opportunities are accessible across the nation,” the minister said.

Key initiatives include accelerating the growth of High Growth, High Value (HGHV) industries and strategic sectors capable of generating high-skilled jobs, offering competitive salaries, attracting quality investments, and extending supply chains to underdeveloped regions.

In addition, the Government is prioritising locally driven economic expansion, investing in education, supporting young entrepreneurs, enhancing rural services to reduce urban migration, and attracting high-quality investments to regional corridors.

Akmal also highlighted the use of data-driven metrics to monitor the effectiveness of budget allocations for rural development.

Indicators include state-level GDP growth, successful investment inflows to rural areas, household income levels, income gap reductions between urban and rural populations, labour force participation, new job creation, wage growth, and engagement in skills development, technical, and vocational training programmes.

“By combining these indicators, the Government can assess the effectiveness of development policies and initiatives, particularly in reducing development disparities and improving living standards for rural communities,” he said.

He added Malaysia’s long-term development strategy will continue to be systematically driven and evidence-based, ensuring the benefits of economic growth are shared equitably nationwide, creating a balanced, competitive, and prosperous national economy. - December 18, 2025