KUALA LUMPUR, Nov 25 (Bernama) -- The private sector assumes a vital role in driving innovation, creativity and investments that are needed to boost Malaysia's global competitiveness and support its goal to become a high-income nation.

Deputy Prime Minister Tan Sri Muhyiddin Yassin said private sectors must therefore transform their thinking and reassess their practices.

"Malaysia needs to capitalise on its strengths to build more home-grown champions and strong international brands.

"We will like to see many more successes in a highly competitive and technology-driven global industry.

"We must recognise that diversity is the core strength and source of creativity and innovation needed to grow our economy," Muhyiddin said tonight at the Federation of Malaysian Manufacturers' annual dinner here today.

To achieve the goals, he said the public and private sectors must work together and utilise the talents of all diverse communities.

Muhyiddin added that the private sector must take risks and invest in new industries, products and services.

He said research and development expenditure and technology acquisition should be regarded as investments for long-term growth and profits.

The private sector should also value human capital by paying the right wages and allocate resources to nurture talent, he said, adding that businesses, industries and enterprises should invest in their employees to support growth and career development.

On the other hand, Muhyiddin said the government was strengthening the education system so that it can produce highly-skilled and educated employees needed by the industry.

"We are introducing measures to increase private sector investment and strategically aligning national key economic activities through the Economic Transformation Programme (ETP).

"This is how we will unleash the potential within the economy and make it easier for the private sector to drive economic growth. The government will continue its role to create an enabling environment that encourages and nurtures investment," he said.

Muhyiddin said the New Economic Model, the 10th Malaysia Plan, the Government and Economic Transformation Programmes collectively served as a roadmap to transform Malaysia into a high-income nation, supported by quality and sustainable economic growth.

-- BERNAMA