Malaysia: 11th Malaysia Plan - Quick Take

This is the second five-year plan presented by PM Najib Abdul Razak, the first being in 2010.

The 11th Malaysia Plan (11MP) will be the last before the Country achieves the developed nation status in 2020.

Following are the highlights of the 11MP.


- ECONOMIC OUTLOOK - Forecasted 5 to 6% real GDP growth from 2016 to 2020.

- INFLATION - To remain below 3% from 2016 to 2020.

- PRIVATE INVESTMENT - Growth forecasted at 9.4 percent between 2016 to 2020, estimated at RM291 billion annually.

- GROSS EXPORTS - Forecasted growth at 4.6% between 2016 to 2020. Trade balance surplus at RM57.3 billion by 2020.

- GST - Collection forecasted at RM157 billion over five years.

- GOVERNMENT DEBT - To drop below 45% by 2020.

- OIL DEPENDENCY - Dependence on oil-related revenue to drop to 15% by 2020.

- EMPLOYMENT - More than 35% of those employed will comprise skilled workers by 2020.

SALIENT POINTS: The Plan reaffirms the government's commitment to the people, and the belief that growth cannot be measured by economic success alone.
  • It reckons that the well-being of the rakyat and a commitment inclusive and sustainable growth are necessary hallmarks of an advance nation.
  •  The Economy to benefit from more robust global economic prospects, recovery of commodity prices and benign global inflation.
  • 11MP also looks beyond 2020 with Malaysia to remain as an open economy, regionally and globally integrated post-2020
 Malaysia's GDP to hit a whopping RM2.6 trillion in 2030 (RM1.4 trillion in 2020).
  • More than 40 percent of total employment will comprise skilled workers in 2030 (2020: 35%).
  • The GDP per capita is projected to more than double to RM117,260 in 2030 (2020:RM54,890).
  • World trade is estimated to grow to US$44 trillion in 2030 (US$26 trillion forecast in 2020).
  • 11MP targets the real Gross Domestic Product to expand at 5.6 percent per annum.
  • Labour productivity to increase to RM92,300 in 2020 (2015:RM77,100).
  • Gross National Income (GNI) per capita to reach RM54,100 (US$15,690) in 2020.
  • Average monthly household income to increase to RM10,540 in 2020 (2014: RM6,141)
  • The share of compensation of employees to GDP to increase to at least 40 percent in 2020;(2015: 34.9%).
  • The Malaysian Well-being Index to increase by 17% per annum, an indicator of improvement in the well-being of the rakyat.
  • Inflation to remain below 3.0%.
  • 1.5 million jobs to be created by 2020.
  • Growth would be driven by the private sector, with private investment expanding at 9.4% per annum.
  • Manufacturing and services sectors to contribute more than 75% of the GDP.
  • Balance of payment projected to remain in surplus at 2.6% of GNI.
  • The federal government's total debt to further decline to below 45% by 2020.
  • Revenue to expand by 7.9% per annum and the dependence on oil-related revenue to decline to 15.5% by 2020.
  • The introduction of GST will bring in a revenue of RM31.4 billion per annum over the next five years, compared with RM15.5 billion collected through the sales and services tax during the 10MP.
  • Literacy rate has increased to 98%, from 75% in 1970.
  • National GINI Ratio-to-Contract to 0.385 in 2020, from 0.401 in 2014.
  • Poverty rate dropped to 0.6% in 2014, from 49.3% in 1970.
  • Govt eyes average household income of over RM5,000 per month for "bottom 40%" group by 2020.
  • New power plants to be built at an estimated cost of RM28 billion, generate 7,626 MW of electricity and create 35,000 jobs under 11MP.
  • All five regional development corridors attracted RM307 bln in investments between 2011 and 2014.
  • Malaysia will develop four major cities,namely Kuala Lumpur, Johor Baharu, Kuching and Kota Kinabalu, as growth catalystcities in order to maximise benefits for the residents and to stimulate national development.
  • Size of country's middle-class expected to increase to 45% by 2020.           
11MP: Six strategic thrusts:

1) Enhancing inclusiveness towards an equitable society;

2) Improving well-being for all;

3) Accelerating human capital development for an advanced nation;

4) Pursuing green growth for sustainability and resilience;

5) Strengthening infrastructure to support economic expansion; and

6) Re-engineering growth for greater prosperity.

 /Malaysiakini 21-05-2015

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