KUALA LUMPUR: Malaysia's policymaking approach must adopt a globalist approach amidst the changing world, Economy Minister Rafizi Ramli said in kicking off Forum Ekonomi Malaysia today.
"The global environment is changing and it demands more deliberate thought and action from all actors, increasingly so as Small, Open, and Non-Aligned (Sona) countries like Malaysia take a high-stakes role in the world stage," he said in his welcome address.
Rafizi said Malaysia and Southeast Asia must recognise the unique differentiations it possesses to carve its own path in this defining decade.
He highlighted the need for the region to embrace the differences, one of which include the unique demographic and growth profile, both now and its projected state in the future.
Southeast Asia will see the middle-class population double from two decades ago in five years, emerging as the supermajority at 65 per cent of the population.
The middle-class population in the region will exceed the population size of the United States and the European Union which Rafizi said will make the region a consumer powerhouse with a higher spending power and standard of living.
"Added to that is its youth and digital profile, as Southeast Asians will be younger, more entrepreneurial, and more digitally connected than other regions in the world. Even when other regions are expected to contract or slow down, Southeast Asia is still predicted to grow at a healthy pace of 4-5 per cent for the next decade.
"This demographic and growth profile—young, digital, middle class—is a rare and exceptional one. It explains why artifical intelligence, infrastructure, renewables, and digital investments have been pouring into Malaysia for the past two years, and it will continue to prove healthy as the region captures its next phase of growth," he added.
The main mode of growth for the region in the next decade, however, will continue to run against the global tide of protectionism and isolationism now, said the minister.
He said that for Southeast Asia to break out of its middle-income trap, it must adopt and develop innovation, and innovation requires open and collaborative cooperation with others.
"In a world where politics is increasingly polarised and ideological, Southeast Asia's relative political and policy stability looks like an attractive standout. "Even though Southeast Asia has been criticised for its ineffective cooperation and lack of ideological unity, the past few years have shown that growth-oriented policies could survive through successive governments," he added.