The Malaysian Insight

THE 12th Malaysia Plan (12MP), which was tabled in Parliament today, will focus on rebuilding the economy following the economic setbacks caused by the Covid-19 epidemic.

Among the targets for the five-year plan (2021-2025) are gross domestic product (GDP) growth of 4.5-5.5% per annum, increasing gross national income (GNI) per capita from RM42,503 to RM57,882 and increasing employee compensation from 37% to 40%.

12MP also aims to increase the average monthly household income from RM7,160 to RM10,065 by the end of the five-year plan.

“During the 12MP, the global economy is expected to regain momentum as it recovers from the Covid-19 pandemic. 

“World trade is expected to grow by 5.3% per annum, mainly supported by better trade performance of emerging markets and developing economies,” the 12MP envisaged.

According to the 12MP, focus will be given to gearing up for the 4th Industrial Revolution, providing an enabling environment for the digital economy and intensifying research and development. 

With better labour market conditions, the 12MP said that Malaysia will regain full employment and in tandem with the economic growth, salaries and wages are also projected to rise, thus contributing to higher household income.

According to the 12MP, there will be three themes, four catalytic policy enablers and 14 game changers.

The three 12MP themes are resetting the economy; strengthening security, well-being and inclusivity; and advancing sustainability, while the four catalytic policy enablers are focusing on developing future talent; accelerating technology adoption and innovation; enhancing connectivity and transport infrastructure; and strengthening the public service. 

The 12MP will be guided by Wawasan Kamakmuran Bersama 2030 (Shared Prosperity Vision 2030) by focusing on programmes to alleviate the poverty, with specific focus on the hardcore poor or bottom 10%.

According to 12MP, it hopes to achieve its targets by:

• Transformational leadership involving all levels of government.
• Monitoring progress at the national level and problem-solving intervention.
• Rakyat-first policy is embedded into socioeconomic planning.
• Whole of nation is mobilised in pursuing national goals.
• Strengthening the governance ecosystem.
• Political buy-in to ensure successful fundamental change.
• Enhancing collaboration among government agencies, private sector, academia and civil society groups.
• Strengthening Malaysian identity, inculcating noble values and patriotism.

The 12MP and other resources can be downloaded here. – September 27, 2021.