PM: High-income economy remains a govt priority

THE government is committed to transforming Malaysia into a high-income economy as the country emerges from the current economic crisis, said Prime Minister Datuk Seri Najib Razak.

"This remains a key priority and resources will be committed to achieve this objective," he said when addressing an economic conference in Kuala Lumpur yesterday.

The text of his speech was read by Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

"The road to recovery will be long and challenging. For us to return to the situation where we stood prior to the crisis would be still a few years away."

However, Malaysia has managed to change its economic model before and it has also weathered recessions in the mid-1980s and in 1997-98.

Asia now needs to find a new growth model where it has to balance international and regional ties and develop sustainable sources of growth.

"Our new economic model will shift the emphasis from industrial manufacturing, which depends on semi-skilled and low-cost labour, to one that is based on high technology and modern services, driven by skilled and highly paid workers."

Growth will also be more centred on domestic demand particularly in the services sector.

Strategic key reforms and initiatives have already been initiated while new comprehensive strategies are still being drawn up, he added.

Significant efforts have been directed towards improving the quality of the national education system at all levels while efforts are also under way to create a trained and a competitive workforce.