00:00Economists have welcomed the government's shift toward investment-led growth in the 2026 budget,
00:06but cautioned that the private sector must take the lead to maintain momentum.
00:11The RM470 billion budget allocated RM50.8 billion for investments via government-linked investment companies,
00:19public-private partnerships, statutory bodies, and the Ministry of Finance, Inc.,
00:24plus RM30 billion for the GEARUP initiative to boost domestic investment through GLICs.
00:30Economist Jeffrey Williams described the approach as a pragmatic evolution in economic management
00:35aimed at pushing growth through investment,
00:38as real growth comes from raising the supply-side potential of the economy.
00:43He said allocating part of development expenditure through GLICs balances fiscal prudence with market efficiency,
00:50helping to reduce the deficit while delivering potential returns to contributors through annual dividends.
00:56However, Carmelo Ferlito, CEO of the Centre for Market Education,
01:02said Malaysia must now focus on crowding in private investment rather than crowding it out.
01:08To reduce reliance on GLICs, Ferlito pointed to enterprise networks,
01:13collaborations among SMEs that with fiscal incentives could boost competitiveness
01:17competitiveness without sacrificing entrepreneurial independence.
01:21Hanyu Zhou, FMT.
Comments