The 13th Malaysia Plan (13MP) will see the government putting up a target of 4.5% to 5.5% annual gross domestic product (GDP) for the 2026 to 2030 period, according to the country's latest five-year economic development blueprint, released on Thursday.
The latest five-year GDP target compares with an average growth rate of 5.2% recorded between 2021 and 2024, which was at the lower end of the 12MP’s 5%-6% target range.
The government has also projected RM430 billion for the federal government's development expenditure (devex) — up 3.6% from 2021-2025 — or an average of RM86 billion a year in the five-year period, the report showed. Federal government fiscal deficit is aimed to hit under 3% of GDP by 2030, from 4.1% in 2024.
Economists polled by The Edge project that GDP will expand by 4%-5.5% annually in the next five years, reflecting a more moderate outlook amid global uncertainties.
The devex target is also within The Edge's poll of RM400 billion-RM450 billion. Allocation for the 12MP (2021-2025) was RM415 billion, raised from the initial RM400 billion during the 2023 mid-term review, a sharp increase from RM248.5 billion under the 11MP (2016-2020).
The 13MP, tabled in Parliament on Thursday by Prime Minister Datuk Seri Anwar Ibrahim, also projected 6% annual growth in private investment (RM417.9 billion a year on average) and 3.6% public investment (RM112.9 billion a year on average).
Meanwhile, gross exports are expected to rise by 5.8% annually over the planned period.
Inflation is expected to remain 2%-3% per annum, broadly in line with the 2.5% average seen from 2021-2024.
Economic restructuring continues
The five-year plan sees the government continue highlighting its ongoing focus of improving living standards, restructuring the economy, and enhancing Malaysia’s competitiveness as a leading Southeast Asian economy.
Other sectoral priorities targets under the 13MP include:
- Ensuring 70.1% of graduates are employed in jobs matching their qualifications by 2030, with scores on par with international averages
- Reducing out-of-pocket spending to 32% of total health expenditure, with 60% of citizens having digital health records by 2030
- Raising compensation of employees — comprising both salary and non-monetary remuneration — to 40% of GDP, up from just over one-third of the economy currently. Average monthly household income is targeted to reach RM12,000, with the absolute poverty rate reduced to 4.7% by 2030, and
- Building 500,000 more affordable housing units by 2030.
Overall, the 13MP is anchored on three main pillars: building an AI-driven economy, developing a human-centred social system under the Madani framework, and fostering a sovereign and dignified nation. It is supported by over 120 strategies and more than 600 initiatives.
Source: theedgemalaysia