00:00With RMK13, we are not looking at just the next five years, but envisioning what Malaysia
00:15will look like in 2040.
00:19Taking this high vantage approach forces us to think beyond individual policies to determine
00:26what will drive the next generation of Malaysia's economy.
00:32Ladies and gentlemen, economic prospects are intrinsically defined by demographics and
00:40geography.
00:41Southeast Asia is projected to grow at a KG of 4% until 2040.
00:50That will enable Southeast Asia to become the fourth largest economy in the world by
00:57then.
00:59Malaysia is sitting at the centre of global growth.
01:03It falls on us then, within that time span, we are projected to be a country of 40 million
01:11people and therefore it is upon us to contend with the giant markets of India and China.
01:20This is why the third pivot of diversification is critical.
01:26I would argue that Malaysia must become a consumption powerhouse.
01:33An economy that is primarily driven by our people will be the most important determinant
01:40of our long-term trajectory and growth rate.
01:45By boosting domestic demand, we kick-start a virtuous economic cycle.
01:51Higher private consumption creates more jobs across all sectors in retail, services and
01:59manufacturing.
02:00This translates to lower unemployment and higher disposable income.
02:06This increase in savings helps to localise investments into better public infrastructure
02:13such as healthcare and education.
02:16A healthier and better educated people creates a more productive society.
02:23One that reinvests in lifelong talent development and stems brain drain.
02:29It creates the capacity to design and innovate, shaping an economy that is more resilient
02:36to fluctuations in global markets, trade disputes and geopolitics.
02:42However, placing this enhanced focus on consumption will not come at the expense of our export-oriented
02:51economy.
02:52It is about recognising the current imbalance between the two drivers and creating urgency
02:59to close the gap.
03:00Marrying a traditionally trading-based economy with greater consumption diversifies our growth
03:08and mitigates risks.
03:11To materialise this pivot, we have to take a different approach to our five-year plans.
03:18Over time, successive policy documents have grown in length.
03:25When I first came to the office, I had to spend one week going through voluminous plans.
03:32Sectoral plans, five-year plans, digital plans and everything.
03:38And I think we all understand that our policy documents in the past have become increasingly
03:45lengthy and have grown in complexity, and making it difficult for ordinary people to
03:54reach.
03:56And that is a challenge for any government, because if we were to make a pivot, we need
04:03everyone to be on board, and we need to shape the public discourse to focus on what is most
04:11productive in our society.
04:13And while we have to carry on with the nitty-gritty of economic and social planning, we also hope
04:24that we take a slightly different approach for RMK 13.
04:29So this is our vision.
04:32RMK 13 will be more similar to RMK 1.
04:39A strategic document that is equally concise and comprehensive.
04:45Each word must be committed towards a specific policy direction.
04:51Government does have a very important role in shaping the trajectory of our economy.
04:58Apart from our public finances, it is extremely important to provide the vision, and hopefully
05:07the vision will align everyone's vision, so that we can move in tandem towards our shared
05:16vision five years down the road and 15 years down the road.
05:20But having said that, it does not depend entirely on the government.
05:27It requires a whole of nation, and we need everyone to feel that they have a stake, and
05:36they have to invest in our country's future.
05:40So ladies and gentlemen, this is a kick-off conference.
05:46What is important is not my speech.
05:49What is important is what do we make out of these two days of the kick-off conference,
05:55and the subsequent process that will happen at different layers of society in the next
06:01six months, and the final product, which will be tabled in Parliament in July 2025.
06:10But this is an extremely important window, and I hope that I've given you a blank canvas
06:18to begin with.
06:20And I'm very much excited to see how that blank canvas eventually will fall and will
06:31come together as perhaps the most important document in the next five to six years for
06:36this country.
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