KUALA LUMPUR, Sept 11 — The 12th Malaysia Plan (12MP) Mid-Term Review (MTR) undertaken by the Unity Government is not a usual approach in assessing the country’s five-year development plan but instead encompasses new policies and strategies to address current challenges.
Prime Minister Datuk Seri Anwar Ibrahim said the 12MP MTR has been realigned with the aspiration and vision of the MADANI Economy, which he presented on July 27, to boost Malaysia’s economy for a ten-year period and promote national development while enhancing the quality of life for the people.
“The nation is at a crossroads, whether to maintain old policies and strategies or to undertake reform. This reform must encompass a framework for improving governance, policy shifts, and introducing new strategies and approaches in line with current demands,” he said.
When tabling the 12MP MTR at the Dewan Rakyat today, the Prime Minister said that a clear and comprehensive shift is needed by the Unity Government, which he has led since December 2022, to bring Malaysia back on the right track of proper economic growth.
Anwar, who is also Finance Minister, said the new approaches and strategies are necessary following political instability and the COVID-19 pandemic which began in early 2020, which led to job losses, a decline in average economic growth and a decrease in foreign investment.
To meet the needs of financing the people’s priority areas, improving management quality, and establishing targeted subsidies to support the basic needs of the population, the government will allocate an additional RM15 billion while fully utilising the RM400 billion allocation under the 12MP, bringing the total to RM415 billion.
Themed “Malaysia MADANI: Sustainable, Prosperous, High-Income”, the 12MP MTR introduces 17 Big Bold measures covering 71 main strategies and initiatives that will serve as the main catalyst in accelerating the efforts to reform the socioeconomic development of the nation in line with the Malaysia MADANI aspiration.
Anwar said that these Big Bold measures commence with eradicating hardcore poverty, addressing fundamental infrastructure and the basic needs of the people, including improving schools and underprivileged clinics, ensuring clean water supply, and advancing the Islamic economy.
“In eradicating hardcore poverty, Insya-Allah we will achieve significant success by the end of this year,” he said.
The Prime Minister said the 12MP MTR comprehensively reviews policies, strategies, and overall objectives, taking into account urban-rural development disparities, existing wealth disparities, growing debt, fiscal constraints, and the gradual economic structural transition.
The country’s macroeconomic achievements and current indicators show that the Gross Domestic Product (GDP) has recorded a growth of 4.2 per cent; labour market performance has improved, with a higher productivity rate of 3.7 per cent per year for the period 2021-2022; and the unemployment rate has decreased to 3.5 per cent in the second quarter of 2023.
The inflation rate in July 2023 has decreased to two per cent, the lowest in 24 months, while the Malaysian People’s Well-being Index which measures the level of economic and social well-being of the people has increased by 1.3 per cent per year.
Additionally, the average monthly household income has increased to RM8,479 in 2022 from RM7,901 in 2019.
The Prime Minister said there are 12 key affirmations at the core of 12MP MTR, which were structured around three main focuses, namely moving towards a high-income country, building a prosperous society, and strengthening sustainability and governance.
To propel Malaysia into a high-income nation in line with the goal of becoming an economic leader in Asia, Anwar stated that Malaysia aims for economic growth of at least five per cent per year throughout the 12MP period, with a focus on high-value-added industries and making the country a preferred investment destination.
