The 12th Malaysia plan propagates an idea that appeals to everyone: shared prosperity as one big ‘keluarga Malaysia’ (translates to ‘Malaysian family’ in English).

Themed “A Prosperous, Inclusive, Sustainable Malaysia”, the key objectives of 12MP mark a new phase in Malaysia’s development journey – the Shared Prosperity Vision 2030 (WKB 2030). The goal is to align Malaysia’s push towards sustainable growth with fair and equitable distribution across income groups, ethnicities, regions and supply chains.

To achieve these objectives, there is a pressing need for reform of key institutions as well as effective, reliable, and investor-friendly policies, on top of sustainable and prudent fiscal management. At the minimum, the 12 points below should be at the top of the list in implementing reforms for businesses and industries to thrive in Malaysia.

1. Level the level playing field, especially for the micro and mid-to-lower tiers end of the SME pie. This means supporting all SMEs in these sectors regardless of quotas and equity requirements. Encouraging collaboration among such businesses also helps achieve efficiency through collective strength. With the national digital transformation plan as the backbone, it is timely to double down on assisting this sector in expanding beyond our shores, primarily through promotions, incentives, and access to government agencies support overseas.

2. Reduce the cost of business and the bureaucracy that are choking SME growth.

3. Remove the burdensome approved permit (AP) requirements which only serve to benefit the AP holders, not the government or businesses.

4. Improve and overhaul the education and healthcare system so that we have access to a highly knowledgeable and skilled workforce.

5. Streamline licence applications and requirements and conditions at the Federal, state and local council levels. For example, establish a one-stop centre where all licensing processes can be dealt with quickly and efficiently.

6. The government should overhaul its procurement policy to buy Malaysian products first. Meritocracy is the key to fair competition that strengthens our industries. Encourage competitiveness and equal opportunities among all businesses, especially the micro and lower-tier SMEs, to quote and tender online equally for government procurements openly and transparently. This includes providing trade financing for this should be given to assist local companies to sell and supply to the government, and payments to these sectors must be prompt, transparent and open.

7. Quicken our pace into digitalisation by encouraging and enabling more digital financial instruments and services, which will bring the cost of financing down for SMEs. Boost peer-to-peer lending by imposing at lower rates than those of the financial institutions.

8. Take steps to increase liquidity in the market and curb capital outflows as far as is reasonable.

9. Improve investor confidence in the market and step up to draw foreign direct investments into the market.

10. Allow banks and financial institutions that cater to mid to lower-tier SMEs to have more flexibility in lending requirements.

11. Inculcate the idea of keluarga Malaysia and strengthen the idea that all ethnic groups need to work together in building up our nation and civil society. Everyone has a part to play in making this lovely country prosperous and blessed, with unity as a hallmark.

12. The commitment to achieve Keluarga Malaysia – equitable distribution of wealth – should be a consistent priority across the board. This means government policies and business regulations need to reflect the 12MP ambition or risk building a house of cards. For example, the recent requirement of 51% bumiputera equity in freight forwarding companies sends a mixed message about the government’s devotion towards shared prosperity – the condition is only imposed upon local companies, which would be at a major disadvantage compared to foreign companies. Non-bumiputra owners are no longer able to control and run their businesses, as 51% of the stakes would have to be sold to a bumiputra investor. If they fail to secure a suitable investor by the deadline (31 December), these non-bumiputra-owned businesses may have to close down.

No one should be left behind. It takes the whole of government and society to build each other up, including those in marginalised communities. That is what being a family means.