KUALA LUMPUR - With RM400 billion (S$129 billion) set aside for existing and new projects, Malaysia on Monday (Sept 27) unboxed its biggest development plan for the next five years until 2025.
This is the first major national policy document introduced by Prime Minister Ismail Sabri Yaakob's administration.
The budget for the 12th Malaysia Plan is a 54 per cent jump from the 11th iteration worth RM260 billion.
Here are the key highlights:
Three main themes
1. Resetting the economy
2. Strengthening well-being, security and inclusivity
3. Advancing sustainability
Main economic goals
- Target average gross domestic product (GDP) growth of 4.5 per cent to 5.5 per cent per annum. The average GDP growth for the 11th Malaysia Plan was 2.7 per cent per annum.
- Increase Malaysia's labour productivity growth from 1.1 per cent to 3.6 per cent per annum.
- Increase Malaysia's gross national income per capita from RM42,503 to RM57,882 (to qualify as a high-income economy by the World Bank's measure).
- Compensation of employees to increase from 37.2 per cent to 40 per cent of GDP.
- Increase average monthly household income from RM7,160 to RM10,065.
- Increase Malaysian well-being index growth from 0.5 per cent to 1.2 per cent per annum.
- Climate: Reduce greenhouse gas emission intensity by 45 per cent to the GDP by 2030 compared with 2005 levels, in line with the Paris accord.
- Sabah, Sarawak: Reduce the GDP per capita gap between central districts and the Borneo states, with a 1:2.5 ratio for Sabah and 1:1.2 ratio for Sarawak.
- Businesses: Micro, small and medium-sized enterprises to contribute 45 per cent of GDP and make up 25 per cent of all exports by 2025.