KUALA LUMPUR, June 18 — Bank Negara Malaysia’s (BNM) Sasana Symposium 2025 (SS2025) reaffirmed the ongoing and urgent need for collective action in advancing structural reforms to enhance the nation’s long-term resilience.
Prime Minister Datuk Seri Anwar Ibrahim, in his keynote address, said that the Madani reform agenda adopts a whole-of-nation approach as the country prioritises five critical areas: fiscal sustainability and governance, subsidy rationalisation, tax reform, human capital upliftment, and institutional integrity.
Guided by the theme “Structural Reforms: Building a Resilient Malaysia”, the two-day event, which ended today, gathered policymakers, industry leaders, academia and representatives from civil society at Sasana Kijang.
The discussions centre around key economic and financial issues through 23 panel sessions, fireside chats and workshops, with topics including digital assets, inflation and the cost of living, social safety nets, medical and healthcare costs, and climate finance.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour said the sessions encapsulate the range of reforms and initiatives the nation is driving, which aim to make a meaningful difference for the rakyat.
He noted that structural reforms are not something one institution or individual can tackle alone, as they require a whole-of-nation approach.
Rasheed said that one of the areas that needs reform is healthcare.
BNM, together with the Health Ministry and the Finance Ministry, is working to implement key initiatives, known as RESET, to address the high medical inflation.
Treasury Secretary-General Datuk Johan Mahmood Merican hopes the committee will play its part in resolving the particular issue, highlighting the importance of aligning the efforts of insurance providers, hospitals, and policymakers to ensure transparency and affordability.
“We do have healthcare that we should be proud of, so whilst we have these challenges, there’s also a lot of good in the system. We want to ensure continued growth and sustainability, and hopefully, this committee will play its part to resolve this particular issue,” he said during a panel session titled “Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation” today.
Johan also referenced the Rakan KKM programme, which was recently approved by the Cabinet, as a crucial step under the RESET initiative, expressing confidence that key elements will be implemented successfully.
Touching on fiscal measures, he said Budget 2025 saw a nearly 10 per cent increase, rising to RM45 billion from RM41 billion previously.
The Sales and Service Tax (SST) revision and expansion are part of the broader need for fiscal reform to widen our tax base.
“Malaysia still has one of the lowest tax-to-pay ratios in the region.
“We need to raise the revenues to meet the growing needs of an ageing population, particularly to ensure that we have a well-funded healthcare system,” Johan said.
Meanwhile, BNM Deputy Governor Datuk Marzunisham Omar highlighted the urgent need for structural reforms to address stagnant wage growth and ensure that incomes keep pace with rising prices.
He said that controlling inflation alone is insufficient to alleviate cost-of-living pressures.
Marzunisham stressed that Malaysia should focus on creating more high-paying and skilled jobs; therefore, attracting the right kind of investment is crucial to creating high-skilled jobs that lead to high income.
The digital asset market was also discussed at the symposium, where Maybank Securities Singapore stated that the global digital asset market is experiencing rapid growth, fueled by rising institutional interest, technological innovation and clearer regulatory frameworks.
The digital assets now extend beyond cryptocurrencies to encompass tokenisation, central bank digital currencies, and settlement infrastructure, signalling a deeper transformation of the financial ecosystem.
A key highlight of SS2025 is the launch of the Digital Asset Innovation Hub by the prime minister. This initiative aims to stimulate financial innovation in a controlled environment, allowing applicants to test new ideas and provide input to fine-tune regulatory and security frameworks.
SS2025 will also witness the launch of the Climate Finance Innovation Lab (CFIL) by the Joint Committee on Climate Change (JC3).
— Bernama
