PRIME MINISTER Datuk Seri Anwar Ibrahim on Thursday set a clear benchmark for Malaysia’s economic trajectory, telling the Malaysia Economic Forum 2026 that renewed confidence will only matter if it delivers tangible improvements in people’s daily lives rather than flattering macroeconomic statistics.
Speaking at the Kuala Lumpur Convention Centre, Anwar used his keynote address to draw a sharp distinction between economic performance measured on paper and progress experienced by ordinary Malaysians, warning that growth without impact would ring hollow.
“This Second Malaysia Economic Forum is not merely about forecasts or policy instruments. It is about responsibility. Responsibility to govern with integrity, to reform with courage, and to ensure that economic progress carries true and tangible meaning for the rakyat,” he said.
Anwar said Malaysia was entering 2026 on firmer footing, pointing to steady growth, low inflation and returning investor confidence as signs that disciplined governance was beginning to restore credibility.
“Malaysia today stands on firmer ground. Our GDP is on track to grow by around 4.9 per cent in 2025, while inflation has been contained at 1.6 per cent. Investment confidence is returning,” he said.
But he stressed that the improvement was neither accidental nor sufficient in itself.
“This progress did not come about by chance,” he said. “It reflects a deliberate effort to restore trust in public finances, credibility to institutions, and integrity in the exercise of power.”
Anwar cautioned against equating economic success with headline figures, arguing that the true test of policy lies in lived experience.
“But let us be clear. Numbers alone do not define success. Markets may respond to data, but the rakyat judge by experience. Growth must be felt in homes, in workplaces, and in the cost of living faced by ordinary families. Otherwise, it remains hollow,” he said.
He cited the strengthening of the ringgit as a visible signal of returning confidence, noting that currencies ultimately reflect trust in institutions and policy direction.
“That trust is being rebuilt because this Madani Government has taken a clear, principled and uncompromising stand on governance,” he said.
“There will be no tolerance for corruption and no exceptions for the well-connected. Without accountability, there can be no credibility. Without credibility, there can be no sustainable growth.”
The prime minister emphasised that the government’s anti-corruption stance was not designed for publicity but for permanence, rooted in the rule of law and institutional reform.
“This is not a campaign for headlines, nor a passing phase,” he said. “It is a recognition that lasting confidence depends on the certainty that the law applies equally to all.”
He added that enforcement must be matched by structural reform to ensure integrity is embedded in systems rather than personalities.
“We are strengthening institutions so that integrity does not depend on personalities, but on systems. Rules must outlast individuals. Reform must endure beyond political cycles,” he said.
According to Anwar, investors were responding positively to this consistency.
“Investors are responding to consistency and predictability. They see firmer governance, clearer direction, and a country serious about long-term stability,” he said, adding that confidence must now result in better living standards.
“Cost-of-living pressures are real and felt daily by the rakyat. This is why our economic strategy combines macroeconomic discipline with targeted support, to protect purchasing power and ensure that growth improves real living standards,” he said.
Anwar framed development as a question of opportunity rather than output, arguing that reform only earns legitimacy when it broadens access and dignity.
“At its core, development is about expanding opportunity,” he said. “Growth becomes meaningful only when it opens doors to education, to decent work, to upward mobility, and to the ability to plan one's future with confidence.”
Education, he said, remains the central pillar of that effort, describing it as the most effective equaliser in society.
“Education remains central to this mission. It is the most powerful equaliser,” he said, referring to the more than RM84 billion allocated under Budget 2026 to support reforms in learning, skills and lifelong training.
The prime minister said the pace of technological change, particularly the rise of artificial intelligence, had sharpened the urgency for reform.
“The question is not whether change will come, but whether we are prepared. Whether technology widens opportunity or deepens inequality depends on the choices we make now,” he said.
He also warned against growth that is overly concentrated, calling for stronger regional development, greater support for small and medium enterprises and a move towards higher-value tourism.
“Growth must also be broad-based. Concentration benefits no one in the long run,” Anwar said.
Beyond income and jobs, he said economic policy must also secure dignity through access to essentials such as healthcare, housing and preparation for an ageing society.
“A nation cannot thrive if its people live in fear of illness, insecurity, or neglect,” he said.
On climate policy, Anwar said the energy transition was no longer optional, but a necessary response to shifting global markets and expectations, as Parliament prepares to consider a Climate Change Bill.
“We will pursue this transition in a manner that is orderly, evidence-based, and firmly anchored in national interest,” he said.
In closing, Anwar invoked the philosopher al-Farabi, describing leadership as a moral obligation to create conditions for human flourishing.
“This Madani Government takes that obligation seriously,” he said.
“We will not retreat from reform. And we will not compromise on integrity.”
“If we stay the course, I am confident that Malaysia will continue on a positive growth trajectory, one that is resilient, inclusive, and governed with honour.” - February 5, 2026
