INTERVENTION BY YB MINISTER OF FOREIGN AFFAIRS FOR THE APEC MINISTERIAL MEETING (AMM) 14 NOVEMBER 2024

INTERVENTION BY

YB MINISTER OF FOREIGN AFFAIRS

FOR THE

APEC MINISTERIAL MEETING (AMM)

14 NOVEMBER 2024

SESSION 1: INNOVATION AND DIGITALIZATION TO PROMOTE TRANSITION TO THE FORMAL AND GLOBAL ECONOMY

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1. Excellency Elmer Schialer, thank you for the opportunity to address this session.

2. Over the years, Malaysia has seen a significant decline in the rate of informal employment - dropping from 38.4 per cent in 2012, to 26.8 per cent in 2022.

3. A World Bank study showed this trend is set to continue, and further decrease to 21 per cent by 2040.

4. However, the gig economy stands out as a significant exception. According to the Malaysia Digital Economy Corporation, it continues to grow over time - highlighting a shift in workforce dynamics, especially post-pandemic.

5. Indeed, the growth of the gig economy is a multifaceted phenomenon, fuelled by innovation and digitalisation.

Excellencies,

6. Malaysia is committed towards embracing digital transformation. We recognise its vast potential to drive economic growth, enhance connectivity, and foster innovation.

7. Our roadmap for progress is clearly outlined in the Malaysian Digital Economy Blueprint and the National 4th Industrial Revolution Policy, integrating key initiatives to drive digital transformation.

8. This Blueprint is also aligned with the Global Digital Compact, a comprehensive framework adopted during the United Nations' Summit of the Future this year, which emphasises the need for equitable access and opportunities in the digital landscape.

Excellencies,

9. We encourage the growth of the gig economy, keeping in mind that a transition from an informal to a formal economy can bring about significant benefits for employers and employees.

10. It allows for streamlining of bureaucracy for business registrations; reducing barriers for small enterprises; and empowering businesses with affordable financial services for self-investment.

11. In this spirit, Malaysia welcomes the Lima Roadmap to Promote the Transition to the Formal and Global Economy as a crucial and strategic approach to support this transition.

12. At the same time, raising awareness is essential. We must be able to effectively communicate benefits to the relevant stakeholders.

13. Educational initiatives, including capacity building, business management, and financial literacy, can help informal workers navigate the complexities of formal business practices.

Excellencies,

14. Malaysia recognises the importance of gender equality as a foundation for a just and progressive society.

15. We seek to advance this fundamental human right through legislative reforms, targeted policies, and collaboration with civil society.

16. Our goal is to integrate women into all sectors of national development and boost their workforce participation.

17. The MADANI Economy framework aims to raise the female labour force participation rate to 60 per cent over the next decade.

18. In 2020, Malaysia introduced the National Entrepreneurship Policy 2030 to create a thriving entrepreneurial ecosystem that enhances global competitiveness and promotes inclusivity.

19. Malaysia then developed the Social Entrepreneurship Action Framework 2030 in 2022, focused on fostering social entrepreneurship while ensuring financial sustainability.

20. We also established the Social Enterprise Accreditation and offer attractive tax incentives, as tools to assist these enterprises to scale and achieve their objectives.

21. We believe APEC economies must continuously collaborate to explore ways to overcome the structural disadvantages faced by women, and other vulnerable groups, in the transition towards a formal and global economy.

Thank you.

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