Malaysia: 11th Malaysia Plan 2016 - 2020

The Government targets the economy to expand between 5% and 6% during the five-year period of the 11th Malaysia Plan, based on sustained domestic demand and increasing contribution from the external sector.
It achieved a 5.3% growth per year during the 10th Malaysia Plan (2011-2015) period, against the 6.0% original target.
On-going structural reforms will strengthen the foundation for economic expansion, including innovation and productivity improvements. This will in turn provide further impetus for growth, higher national per capita and household incomes as well as increased wellbeing of the rakyat . 
Monetary and fiscal policies will be implemented to ensure stable prices, exchange rates, and interest rates. 
Private sector investment will be encouraged to modernise key economic sectors, and the services sector in particular will pivot to focus on high-value, knowledge-intensive services. 
Importantly, the Federal Government will balance its fiscal position by 2020 by strengthening the tax base and improving the decision-making process of development allocation for proposed programmes or projects. Fiscal deficit will be reduced from 3.2% to 0.6% by 2020.
As for exports, it would be underpinned by improving product competitiveness, promoting exports of services, and diversifying markets, thus maintaining a surplus in the external account. 
Productivity improvements through enhanced capital efficiency and the contribution of multi-factor productivity (MFP) - productivity from multiple inputs - will be crucial for the nation’s economic growth.
Also, the economy is expected to benefit from more robust global economic prospects, recovery of commodity prices and benign global inflation.
The six multidimensional goals have been identified for the Plan are: 
1) Real GDP to expand at 5%-6% per annum.
2) Labour productivity to increase from RM77,100 in 2015 to RM92,300 in 2020.
3) Gross national income per capita to reach RM54,100 (US$15,690) in 2020.
4) Average monthly household income to increase from RM6,141 in 2014 to RM10,540 in 2020.
5) Share of compensation of employees to GDP to increase from 34.9% in 2015 to at least 40% in 2020.
6) Malaysian Wellbeing Index (MWI ),  an indicator of improvement in the wellbeing of the rakyat, is expected to increase by 1.7% per annum,. The index, with year 2000 as the base year, rose by 25.4 points up to 2012, representing a 1.9% growth per year, says the inaugural Malaysian Well-being Report 2013.

/theSTAR 21-05-2015

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