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THE MADANI government has defended the progress of its economic reforms, saying more than three years of phased implementation have begun to deliver measurable improvements in growth, incomes and social wellbeing, despite continued pressure from rising living costs.
Economy Minister Akmal Nasrullah Mohd Nasir, in a release by the ministry on Saturday, said the reforms should not be judged solely on economic expansion but on broader indicators that reflect the lived realities of Malaysians, including wages, employment, poverty reduction and affordability.
“The MADANI Government remains committed to implementing reforms comprehensively and in phases, with the primary objective of restructuring the economy and improving the wellbeing of the people in an inclusive and sustainable manner,” he told the Dewan Rakyat.
Responding to a question from Larut MP Datuk Seri Hamzah Zainudin on the government’s reform record, Akmal said more than 40 new major policies and initiatives had been introduced since the MADANI administration took office, alongside amendments to more than 80 laws, including the enactment of new legislation.
He added that over 50 high-impact projects had also been implemented to directly enhance public welfare.
He said the reforms have contributed to a resilient macroeconomic performance despite a challenging global environment.
“Based on preliminary data from the Department of Statistics Malaysia, gross domestic product is estimated to have grown by 5.7 per cent in the fourth quarter of 2025,” he said.
This growth, he added, was supported by low inflation of 1.4 per cent in November 2025 and an unemployment rate of 2.9 per cent, the lowest level in 11 years since November 2014. Foreign direct investment reached RM663.7 billion between January and September 2025.
Akmal said these developments had translated into tangible gains for households. “Based on the 2024 Household Income and Expenditure Survey, average monthly household income increased by 3.8 per cent to RM9,155 in 2024 compared with RM8,479 in 2022,” he said.
Over the same period, the absolute poverty rate declined to 5.1 per cent from 6.2 per cent. “The combination of strong economic growth, controlled inflation and a stable labour market, together with rising incomes and reduced poverty, are indicators that economic reforms have begun to show results,” he said.
Looking ahead, Akmal said economic reforms would continue under the 13th Malaysia Plan (RMK13) through the MADANI Economy framework, guided by the twin approach of raising both the ceiling and the floor.
“This includes restructuring the economy towards value creation, labour market reforms, education and housing reforms, as well as targeted measures to address the cost of living and raise people’s incomes,” he said.
On wages, he said the government had fully enforced the nationwide minimum wage of RM1,700 per month from Aug 1, 2025, alongside the Progressive Wage Policy to ensure income growth keeps pace with productivity. “To date, a total of 43,363 workers and 3,610 employers have benefited,” he said.
He added that a living wage starting from RM3,100 has been implemented by government-linked companies and encouraged among large firms, while starting salaries for graduates, including TVET leavers, will be introduced. TVET certification levels will also be enhanced through the introduction of three new advanced tiers, levels six to eight, to recognise high-level technical skills.
To ease cost-of-living pressures, Akmal said the government is pursuing a two-pronged strategy of strengthening food security to curb price increases while boosting incomes through targeted assistance and subsidies.
“The first phase of Sumbangan Tunai Rahmah of up to RM500 has been credited to recipients in stages beginning Jan 20, 2026,” he said, adding that Sumbangan Asas Rahmah of up to RM200 had been credited into identity cards in stages starting Jan 9, 2026.
He said initiatives under the Payung Rahmah umbrella, including Rahmah sales and Rahmah menus, have been expanded, alongside the promotion of time-of-use tariffs to reduce utility bills.
Targeted subsidies such as BUDI MADANI for RON95 and diesel, as well as 17 forms of assistance for students, have also helped ease household expenses, particularly for middle- and lower-income groups.
On healthcare and housing, Akmal said the government remains committed to controlling medical inflation by upgrading, refurbishing and repairing public healthcare facilities nationwide, while also introducing basic private-sector medical insurance and takaful products.
The Skim Perubatan MADANI will continue to provide healthcare services to lower-income groups.
He added that affordable housing remains a priority, with a target of 500,000 units under RMK13.
“The Housing Credit Guarantee Scheme and the Rent-to-Own scheme will also be expanded,” he said, alongside a faster transition to the use of Industrialised Building Systems to reduce construction costs.
Akmal added the success of economic reforms must be assessed holistically.
“The success of the government’s economic reforms is measured not only through GDP growth, but through a combination of sustainable economic growth, controlled inflation, a stable labour market, improved worker compensation and a reduced cost-of-living burden,” he said. - January 24, 2026
