KUALA LUMPUR: Public sector reform is essential to strengthening governance, accountability and enhancing competency and public service delivery, according to the Economic Outlook 2025.
The report said as Malaysia navigates economic challenges, comprehensive fiscal reforms are crucial for increasing transparency, optimising resource allocation, and maintaining fiscal discipline.
"Strengthening governance frameworks is key to fostering trust in public institutions. Additionally, improving the effectiveness of public service delivery ensures that government services are accessible, efficient, and responsive to the needs of the people.
"In parallel, parliamentary reforms are vital for enhancing legislative oversight and accountability, reinforcing governance, and fostering greater public engagement in policymaking," it added.
The report further noted that Malaysia's steady domestic demand, favourable external sector, and the measures outlined in the 2025 Budget will drive economic growth between 4.5 and 5.5 per cent next year.
The report highlighted the country's aim to enhance global competitiveness, improve the people's quality of life, and ensure economic benefits are distributed across all segments of society.
"To achieve this, the government will expand the green economy, develop quality infrastructure, enhance border security, promote regional trade, and strengthen fiscal sustainability.
"This will also involve fortifying domestic industries through the promotion of broad-based technological advancements, productivity, and competitiveness.
"The 2025 Budget will focus on restructuring the economic foundation to sustain growth, attract quality investments, and advance innovation and sustainability across all sectors," it added.
The report also said the government will prioritise efforts to improve the people's well-being by enhancing the social protection system, providing employment with meaningful wages, and strengthening policies to ensure equitable wealth distribution.
"The government remains optimistic that the 2025 Budget will bring Malaysia closer to realising the vision of the Madani Economy framework, supported by a whole-of-nation approach," it said.