12MP aims to raise average household income to RM10,000 per month by 2025, says PM
KUALA LUMPUR: The 12th Malaysian Plan (12MP) will be a detailed roadmap for the introduction of a higher quality of life by 2025, says Datuk Seri Ismail Sabri Yaakob.
The Prime Minister said among the goals set in 12MP are achieving a gross domestic product (GDP) growth rate of between 4.5% and 5.5% annually between 2021 and 2025 and raising the average household income to RM10,000 per month by 2025.
He also said there was an aim to reduce the GDP per capita gap between Peninsular Malaysia and Sabah from 1.0 to 2.5 and between Peninsular Malaysia and Sarawak from 1.0 to 1.2 by 2025.
Ismail Sabri said that the fourth aim of the 12MP is to reduce the intensity of greenhouse gas emissions in the GDP to 45% by 2030.
“They will overcome several structural economic problems, to prepare a future workforce, to increase the harmony of Keluarga Malaysia (Malaysian Family) and to reduce development gaps between states,” said Ismail Sabri.
“Aside from that, it is also a more efficient implementation method in delivering services to the people,” he added during the tabling of the 12MP in Parliament on Monday (Sept 27).
Ismail Sabri said that the 12MP will use an unprecedented “whole-of-nation” approach that will involve all government agencies, industry players, as well as society in a mission to transform the nation.
He also said that the government will also focus on ensuring growth in several strategic and high-impact industries such as electric and electronics, global services, aerospace, the halal industry, creative, tourism, biomass, and smart farming activities.
Ismail Sabri said that under 12MP, the government will introduce clearer policies and legislation, as well as create a more conducive business environment in order to ensure quality investments.
“In line with the fourth Industrial Revolution (IR4.0), the manufacturing sector is expected to shift towards the production of high-added-value products and the Malaysian industry is an important player in the global supply value chain,” he said.
Ismail Sabri added that the farming sector will also be improved using smart technology in order to increase productivity and the level of food security in the country.
He then added that international trade will be strengthened by identifying new markets and products and international trade cooperation will be encouraged through the ratification of free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP).
Ismail Sabri added that transformation will be ensured among the 1.2 million micro small and medium scale enterprises (SMEs) across the country.
“Micro-SMEs are the backbone of the country’s economy. However, a big portion of micro-SMEs remained incompetent and needed to be empowered after being affected by the pandemic,” said Ismail Sabri.
“Therefore, the government is committed to continuing supporting recovery among the micro-SME community,” he added.
He also said that the government has approved several projects under 12MP, including investment loan funds for research and development in aerospace, electrical and electronics and the establishment of the Centre for Excellence for Future Industry.
He also said that other projects under 12MP include the establishment of intellectual property funds, a simplified financing scheme to assist local businesses in transitioning digitally.
Ismail Sabri also said that he is confident that with the implementation of the above plans is confident Malaysia will be able to achieve an average growth of 5.2% in the services sector, 5.7% in manufacturing, 3.7% in farming, 2.6 in the mining sector, and 4.2% in construction between 2021 to 2025.
“For the badly affected tourism industry, it is expected to recover with the rate of 3.8% growth and micro-SMEs are able to contribute 45% to the GDP and 25% to total exports in 2025,” said Ismail Sabri. ANN
PM tables 12th Malaysia Plan, RM400b allocated for development
Prime Minister Ismail Sabri Yaacob is now tabling the 12th Malaysia Plan in the Dewan Rakyat and has announced that the government will allocate RM400 billion for existing and new development projects.
He said the Covid-19 pandemic had forced the government to focus less on development projects, placing priority instead on overcoming the health crisis.
He added that the government guarantees to reduce bureaucracy, provide quality infrastructure and strengthen the ecosystem to support private investment to help economic growth.
Under the plan, the growth of high-impact strategic industries and medium and small-medium enterprises will be given a boost and enhanced.
He also said the government was committed to eradicating hardcore poverty as well as reducing the income gap.
Ismail described the plan as a holistic one and said it would focus on nine main areas.
He said that under this plan, Malaysia expected to be a high-income, high-tech country by 2025
Parliament’s session will end today after the tabling of the plan.
The full plan can be read here:
Only 1 of 6 goals under 11MP met, says Putrajaya
ONLY one – labour productivity – of the six multi-dimensional goals set during the 11th Malaysia Plan (11MP) was achieved, according to a review of the last plan.
The 11MP review, which was contained in the 12MP, said that the previous five-year plan had failed to meet the gross domestic product (GDP) growth, gross national income (GNI) per capita, share of compensation of employees (CE) to GDP, average monthly household income and Malaysian Wellbeing Index (MyWI) targets.
“The GDP was on track to register growth within the target range of 4.9% per annum over the 2016-2019 period. However, the contraction in 2020 due to the Covid-19 epidemic affected the growth trajectory for the overall period.
“The epidemic also led to unfavourable labour market conditions that affected the earnings of workers and households, thus resulting in the lower share of CE to GDP, average monthly household income and MyWI,” said the report.
Meanwhile, only four out of the 12 macroeconomic targets identified in 11MP were achieved.
They were real public consumption, trade balance, current account of the balance of payments and inflation.
“Growth of real public consumption was higher, supported by government spending on emoluments as well as supplies and services while the trade balance and current account of the balance of payments surpassed their targets due to sluggish imports following lower domestic demand.
“Inflation was stable and lower than targeted due to dampened household spending and lower global crude oil prices. The remaining macroeconomic targets were not met due to lower domestic and external demand,” said the report.
According to the report, the Malaysian economy registered a moderate average annual growth rate of 2.7% over the 11MP period as it was significantly weighed down by the impact of the Covid-19 outbreak
“As an open economy, Malaysia’s growth is influenced by the external economic environment.
“The global economy moderated at an annual rate of 3.4% between 2016 and 2019 amid a series of economic shocks. These include the inward-looking policies and normalisation of monetary policy among major economies, uncertainty over the outcomes of Brexit negotiations as well as volatile commodity prices,” said the report.
Amid the Covid-19 epidemic and other uncertainties the global economy experienced its first recession since the Global Financial Crisis 2008/2009 as it contracted by 3.3% in 2020, due to the epidemic. The pandemic has affected more than 200 countries with significant social impact, resulting in new behavioural norms.
“It has also severely interrupted economic activities and the global supply chain following lockdown measures undertaken in an attempt to halt the spread of the virus. Overall, the global economy grew by 2% per annum during the period.”
As a result of this, Malaysia’s GNI per capita in current prices increased by 3% per annum from RM36,710 in 2015 to RM42,503 in 2020.
“Malaysia’s gap to achieve a high-income status is 20.4%, based on the minimum threshold of a high-income economy set by the World Bank at US$12,696 (RM53,126) for 2020.” TMI
ANN / MKINI / THE MALAYSIAN INSIGHT