12th Malaysia Plan: Economic highlights


  • Economy set to return to full employment with an unemployment rate of 4% by 2025
  • The government targets fiscal balance of -3.5 pct and -3 pct of GDP in 2025
  • The government expects the country's financial position to improve in 2023 when the economy strengthens.
  • Malaysia is expected to be a high-income, high-tech country by 2025.
  • GDP Growth of 4.5% to 5.5% from 2.7% in 11th Malaysia Plan.
  • GNP per capital end period RM57,882 vs RM42,503 in 11MP.
  • Compensation of employees, end period (% of GDP) 40% vs 37.2% in 11MP.
  • Average monthly household income RM7,160 vs RM10,065.
  • Malaysia wellbeing Index growth per annum at 1.2% vs 0.5%.
  • COVID-19 pandemic affects government’s financial position, 2020 fiscal deficit widens 6.2 percent of GDP.
  • Services, manufacturing, agriculture, construction and mining sector grow at 5.2%, 5.7%, 3.8%, 4.2% and 2.6% respectively per annum
  • Growth of high-impact strategic industries and MSME given a boost and enhanced.
  • Gov't guarantees to reduce bureaucracy, provide quality infrastructure and strengthen the ecosystem.
  • On the demand side, the private sector will continue to be the key driver of growth.
  • Private consumption is expected to increase at an annual average rate of 5.8%.
  • Higher household income arising from expected stable labour market conditions.
  • Private investment will rebound; to grow at 3.8% per annum or an average of RM258bil at current prices vs RM233bil in the 11th Plan.
  • Public investment to grow at 2.6% per annum driven by Federal Government development expenditure and capital spending of non-financial public corporations (NFPCs).
  • The investment focuses on infrastructure, transport, utilities as well as the oil and gas industry.
  • Major public sector projects will be undertaken.
  • Projects undertaken in phases are the ECRL, Johor Bahru-Singapore RTS, and the Pan Borneo Highway.
  • Public consumption is expected to expand by 3.7% per annum.
  • Total development expenditure allocation is estimated to be RM400bln vs RM260bil in 11MP
  • Services, manufacturing, agriculture, construction and mining sector grow at 5.2%, 5.7%, 3.8%, 4.2% and 2.6% respectively per annum
  • The current account of balance of payment BOP to remain in surplus at RM44b or 2.2% of GNI in 2025 supported by higher in the goods account
  • Gov’t to introduce more waqf instruments, including setting up a waqf fund at national level

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GNP , compensation , GDP , consumption , Fiscal deficit

   

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