Restructuring of business and industrial ecosystems important for the future: PM

KUALA LUMPUR (Oct 5): The restructuring of the business and industrial ecosystems is important to adapt to the economy of the future and for effective value creation, said Prime Minister Tun Dr Mahathir Mohamad.

The restructuring of the business ecosystem is among seven core strategies developed to ensure the success of the Shared Prosperity Vision (WKB2030) initiative.

The other six strategies are exploring new economic growth activities; human capital transformation; strengthening the labour market and increasing workers' compensation; social welfare; regional inclusion and social capital.

The prime minister said this in his speech during the launching of WKB2030 “Restructuring Malaysia Development Priority”, which is the new economic direction for the country from 2021 to 2030 here today.

In addition to strengthening existing economic activities, the strategic thrust of exploring new economic growth activities will also enable Malaysia to not only become a consumer country to the new economy but to be the creator, producer, supplier and service provider of a more competitive future economy.

He also said human capital transformation should also focus on providing more productive, effective, skilled, technological and high-value human capital including to industries related to the new economy.

Meanwhile, the strategic core on Regional Inclusion has outlined emphasis on the development of economic hotspots especially those located outside the Klang Valley and major economic cities.

“The holistic development of these economic hotspots comprise broader ecosystem development, strengthening of the supply chain and downstream industries, provision of human resources, skills and funds, support infrastructure and the accessibility of roads and linkages for logistics and communication,” he said.

In another development, Mahathir also hoped that Malaysia could move from delivering works solely on output and performance to a country that is based on deliverables and outcomes.

“Key Performance Index (KPI) must change to Key Results Indicator (KRI) or key performance indicator that can be assessed, for example from the point of increasing income, job creation or value-added business and others.

“To achieve this, the monitoring and reporting system, especially at the government level must be upgraded and strengthened,” he said.

According to the prime minister, the WKB should be evaluated based on the performance of each minister, ministry and agency as well as various government and private institutions.

Setting clear and comprehensive targets and indicators is important to ensure the success of WKB2030 which has set at least 10 main economic targets to be achieved by 2030.

In addition to these key indicators, other indicators and targets based on strategic core, enabling and initiative would be introduced to ministers and at various levels of ministries, government-linked investment companies (GLICs) and government-linked companies (GLCs) and agencies so that they can be aligned towards the achievement of WKB, said Mahathir.

“Some are spreading false rumours that the Pakatan Harapan government today or the WKB2030 has set aside Bumiputera rights and their futures by making equal all opportunities and liberalising all sectors.

However, the prime minister stressed that the WKB would not leave out the Bumiputera community, but instead they will be developed to be more competitive so that they are capable of standing tall with other ethnic groups.

“At the same time as I always emphasise that Bumiputera should not just wait for government assistance and support. If we know that we are lagging, we must run faster to catch up those in front," he said.