What are SRIs?

The eight Strategic Reform Initiatives (SRIs) are at the core of the Economic Transformation Programme (ETP). Within the SRIs, the NEAC has recommended a series of interconnected policy measures (not exhaustive). The eight SRIs are:

SRI 1: Re-energising the private sector to lead growth – Firing up the private sector through deregulation, liberalisation and effective enforcement of the competition law, in line with international standards will stimulate a jump in investment in high value added products and services, generating sustained growth and high income.

SRI 2: Developing quality workforce and reducing dependency on foreign labour – Inspiring the workforce to draw out their best requires better education and skill training programmes. The focus is on generating a talented workforce to meet the needs of a knowledge economy. Labour market distortions which hamper wage growth, such as excessive of foreign labour, will be removed.

SRI 3: Creating a competitive domestic economy – Malaysians will enjoy the benefits of vibrant markets and greater choices in the absence of market distortions that lead to misallocation of resources. Subsidies and price controls will be phased out gradually. The impact on the vulnerable groups will be cushioned with an enhanced social safety net.

SRI 4: Strengthening the public sector – A lean and customer-focused government will improve delivery of public services. Sound public finance is essential for safeguarding macroeconomic stability and enhancing the future prospects of the rakyat.

SRI 5: Transparent and market-friendly affirmative action – Affirmative action programmes will help the bottom 40% of households escape low income and will be centred on capacity building. Targeted programmes for certain groups outside of the bottom 40%, particularly small and medium enterprises (SMEs) within the Bumiputera Commercial and Industrial Community (BCIC), must be market-friendly, transparent, needs- and merit-based so as not to breed rent-seeking and patronage practices.

SRI 6: Building the knowledge base infrastructure – Recognising that entrepreneurship and innovation are not going to emerge on their own, the key focus here is to promote an environment and ecosytem for innovation by strengthening the delivery of high quality education that nurtures innovation and technology.

SRI 7: Enhance the sources of growth – Malaysia will leverage its natural endowment and sectors of comparative advantage as the main sources of high value added growth maximising, spillover effects into new areas of activities.

SRI 8: Ensure sustainability of growth – Preserving our natural resources and striving for sustainable public finances through stringent fiscal discipline, will safeguard the interest of future generations.

To understand more about the NEM, read our reports.