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The Influence of MADANI Values on Economic Policies and Green Industry Practices in Malaysia

This quantitative study employing PLS-SEM analysis demonstrates that all six dimensions of Malaysia's MADANI sustainable governance framework significantly and positively influence both green industry practices and domestic economic policies, thereby validating the framework's effectiveness and contextual adaptability.

Original authors: Murad AL-ZAQEBA, Ahmad Nader Aloqaily, Suhaila Abdul Hamid, Hartini Binti Mohammad, Nurul Nazlia Jamil, Izlawanie Muhammad, Nehad Ibrahim Ineizeh

Published 2026-10-07
📖 4 min read☕ Coffee break read

Original authors: Murad AL-ZAQEBA, Ahmad Nader Aloqaily, Suhaila Abdul Hamid, Hartini Binti Mohammad, Nurul Nazlia Jamil, Izlawanie Muhammad, Nehad Ibrahim Ineizeh

Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). ✨ This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer

In the modern world, nations face a difficult balancing act. They must grow their economies to provide jobs and prosperity, yet they cannot do so by destroying the environment or ignoring the well-being of their people. For decades, the standard approach to progress focused almost entirely on financial numbers, often treating nature and social fairness as secondary concerns. However, a growing consensus among experts suggests that true, lasting development requires a different kind of leadership. This new approach relies on a set of guiding values—principles like trust, respect, and care—that shape how governments make decisions and how industries operate. When these values are woven into the very fabric of a country's policies, they can drive a transformation toward a greener, more inclusive future. The question is no longer just whether such values sound good in theory, but whether they actually work in practice to change real-world outcomes.

A team of researchers in Malaysia set out to answer this question by examining a specific national framework called MADANI. Launched by the Malaysian government, this framework is built on six core values: sustainability, prosperity, innovation, respect, trust, and care and compassion. The researchers wanted to know if these abstract values could be measured and if they genuinely influenced two critical areas: how local industries adopted green practices, such as using renewable energy and recycling materials, and how the country formulated its economic policies. To find out, they did not rely on theory alone. Instead, they gathered data from 284 people who are deeply involved in Malaysia's development, including government officials, business leaders, financial experts, and academics. These participants shared their experiences and opinions through detailed surveys, allowing the researchers to see the direct link between the presence of these values and the actual progress being made on the ground.

The study revealed a clear and powerful connection. The researchers found that when the six MADANI values are strong, both green industry practices and economic policies improve significantly. In fact, the combined effect of these values explained 73.8% of the variance in local green industry practices and 74.6% of the variance in national-level economic policies. This means that the framework is not just a collection of nice ideas; it is a practical engine for change. Among the six values, the concept of sustainability had the strongest influence on how industries adopted green methods, suggesting that a focus on long-term environmental health is the primary driver for companies to change their ways. On the other hand, the value of care and compassion had the most significant impact on economic policy, indicating that when leaders prioritize the well-being of people, they create policies that are more effective and inclusive.

Every single one of the twelve specific connections the researchers tested was confirmed to be positive and statistically significant. This means that each of the six values—sustainability, prosperity, innovation, respect, trust, and care—contributes to better outcomes in both industry and government. The study challenges the old assumption that economic growth and environmental protection are separate goals that must be traded off against one another. Instead, the findings show that a governance model built on ethical values and social responsibility can actually strengthen a country's economic resilience and industrial competitiveness. The researchers noted that while the framework works well, it is not a magic solution that fixes everything instantly. The study was a snapshot in time, capturing the current state of affairs, and it focused specifically on the Malaysian context. However, the results offer a compelling blueprint for other nations, suggesting that the path to a sustainable future is paved not just with technology and regulations, but with a deep commitment to shared human values.

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