MADANI Reforms Strengthen Governance, Raise Ceiling And Floor -- MOF
KUALA LUMPUR, Aug 18 (Bernama) -- The MADANI Government has made progress in governance reform, national competitiveness and efforts to raise the people’s living standards over the past three and a half years, guided by the three pillars of Good Governance in Public Administration, Raising the Ceiling and Raising the Floor.
The Ministry of Finance (MOF), in its pre-budget statement for 2027 today, said the MADANI Government inherited a country under strain.
“Global uncertainty was weighing on the economy, while Malaysia was already saddled with a staggering debt burden of RM1.2 trillion, equivalent to more than 60 per cent of gross domestic product (GDP) in 2023.
“Corruption and abuse of power in public office were systemic. Investment had yet to regain its pre-pandemic strength. The strain was felt most acutely by ordinary Malaysians, where food inflation reached 5.8 per cent in 2022, while unemployment stood at 3.9 per cent,” it said.
MOF said that in just three and a half years, the government’s reforms have begun to unpick the structural knots that had long held the country back.
“The MADANI Economy framework has guided policies and measures across the government, with results now evident across the three pillars,” it said.
MOF said that under the Good Governance in Public Administration pillar, the MADANI Government has always prioritised governance reform from the outset.
“This encompasses fiscal discipline, combating corruption, improving the ease of doing business, and managing development projects in the public interest.
“Governance reform was swiftly advanced through the establishment of the STAR Team, the Special Task Force on Agency Reform led by the chief secretary to the government, to reform the public service and government agencies and resolve high-impact bottlenecks in infrastructure and digitalisation,” it said.
Meanwhile, as part of the Raising the Ceiling pillar, MOF said Malaysia’s competitiveness has risen by 19 places in just two years, from 34th in 2024 to 23rd in 2025 and then to 15th in the IMD World Competitiveness Ranking 2026, its best result since 2015.
“This improvement reflects the effectiveness of integrated reforms to raise the efficiency of government and business, alongside improvements in infrastructure,” it said.
MOF said that under the Raising the Floor pillar, cash assistance for the people has reached a historic high.
“The 2026 allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) totals RM15 billion, with assistance of up to RM4,600. This exceeds Bantuan Rakyat 1Malaysia in 2018 (RM6 billion; up to RM1,200) and Bantuan Keluarga Malaysia in 2022 (RM8 billion; up to RM2,500).
“More importantly, these benefits are not reserved only for the poor. Under SARA for All, 22 million people receive RM100 in SARA assistance; a family of five may therefore receive RM500,” it added.
-- BERNAMA