Global Crisis Pressures Malaysia, High Value Industries Are Pursued

JAKARTA - Malaysia is beginning to shift the way it deals with the global crisis. The government is no longer relying solely on incentives, but wants to strengthen the economic structure to be more resistant to pressure.

As reported by Malay Mail quoting Bernama, Thursday, May 21, Malaysian Economic Minister Akmal Nasrullah Mohd Nasir said the current crisis is different from the Covid-19 pandemic. During the pandemic, the government needs to maintain spending because economic activity stops.

Now, the pressure starts from the oil supply, then spreads to other supply chains. The impact is more complicated.

"The crisis we are facing starts with the pressure on oil supplies before spreading to other supply chains," Akmal said at the Ministry of Economy's monthly meeting in Putrajaya, Thursday, May 21.

According to Akmal, this situation makes Malaysia have to strengthen economic resilience through more sustainable structural changes.

"Previously, the focus was more on incentives. Now the focus is on strengthening economic resilience," he said.

One of the directions chosen is the high-value industry. Akmal said the current geopolitical crisis is a signal for Malaysia to prioritize the semiconductor and advanced packaging sector, namely high-value chip packaging technology.

The government has also strengthened the People's Income Initiative Insan program to increase household income. This program has involved 1,125 vending machines throughout Malaysia.

Of that amount, 58 percent managed to record an average income of more than 2,000 Malaysian ringgit. The total sales of program participants have exceeded 20 million ringgit.

Cooperation with the Federal Territories Islamic Religious Council or MAIWP will also be expanded. Around 50 vending machines will be placed in MAIWP assets, including active mosques, surau, and educational institutions.

In the energy sector, Malaysia will introduce biodiesel starting June 1. Biodiesel is a vegetable oil-based blended fuel. This policy is aimed at extending the supply of diesel to 20 days per year, while supporting the energy transition and reducing carbon emissions.