KUALA LUMPUR (Sept 27): The 12th Malaysia Plan (12MP), a roadmap for the country’s development from 2021 to 2025, has set a target annual gross domestic product (GDP) growth of between 4.5% and 5.5% for the five-year period.

Under the 11MP (2016-2020), the country achieved GDP growth of 2.7% per year.

The ‘transformational’ 12MP also set a gross national income (GNI) target of RM57,882 or US$14,842 by end-2025. Under the 11MP, Malaysia achieved GNI of RM42,503 by the end of 2020.

Table 1: Selected targets of 12MP

The 12MP, tabled in Parliament by Prime Minister Datuk Seri Ismail Sabri Yaakob, on Monday, is a medium-term plan with the objective of “A prosperous, inclusive, sustainable Malaysia” and marks the start of the country’s development journey towards the Shared Prosperity Vision 2030.

Other targets under the 12MP are labour productivity growth of 3.6% per year, compensation of employees of 40% of GDP, average monthly household income of RM10,065 by 2025 and Malaysian Wellbeing Index growth of 1.2% per year.

In the foreword to the “Twelfth Malaysia Plan, 2021-2025” issued by the Economic Planning Unit, Prime Minister’s Department, Ismail Sabri said the plan aims to “address current issues and at the same time to restart and rejuvenate Malaysia’s socioeconomic development for long-term sustainability and prosperity”.

The plan is a major agenda for national recovery — arising from the challenges of the Covid-19 pandemic — to restore economic stability, regenerate and reinvigorate national economic growth, as well as restructure the economy as the foundation in improving the wellbeing of the rakyat.

The 12MP is based on three themes, four catalytic policy enablers and 14 game changers.

The three themes of 12MP are resetting the economy; strengthening security, wellbeing and inclusivity; and advancing sustainability.

The four catalytic policy enablers focus on developing future talent, accelerating technology adoption and innovation, enhancing connectivity and transport infrastructure, and strengthening public service.

Meanwhile, the 14 game changers represent “bold and innovative actions to shift mindsets and change the approach to national development”.    

According to the document, various game-changing and radical initiatives will be implemented, including programmes to alleviate the poor and uplift the standard of living of the rakyat.

“Specific focus will be given to the hardcore poor and poor in the bottom 10% household income decile group (B1). The 12MP will address the plight of all Malaysians, irrespective of gender, ethnicity, socioeconomic status and location,” it stated.

It is worth noting that the formulation of the 12MP has taken into account the 6R (Resolve, Resilient, Restart, Recovery, Revitalise and Reform) approach implemented to mitigate the impact of the pandemic and as such includes the eight economic stimulus packages amounting to RM530 billion and the phased transition under the National Recovery Plan.  

The priorities of the 12MP are aligned with the Sustainable Development Goals of the 2030 Agenda for Sustainable Development.

Table 2: 14 Game changers representing innovative actions towards national development