12th Malaysia Plan: GDP growth of 4.5% to 5.5%


The report said the 12th Plan needs to be transformational to overcome the global uncertainties, domestic structural economic challengers and shortcomings in the development approach.

KUALA LUMPUR: The government is aiming for a gross domestic product (GDP) of between 4.5% and 5.5% under the plan which was unveiled on Monday.

It is targeting GNI per capita at the end of the plan to increase to RM57,882 from RM42,503.

Under its selected targets for the plan, it wants to see compensation of employees to reach 40% by the end of the plan period from 37.2%.



The plan’s focus is to see a significant increase in the average monthly income to reach RM10,065 by the end of the plan from RM7,160.

Importantly, the government wants to see a more than double increase in the Malaysian wellbeing index growth per annum of 1.2% from 0.5% in the 11th Plan.

The report said the 12th Plan needs to be transformational to overcome the global uncertainties, domestic structural economic challengers and shortcomings in the development approach.

The first game changer are the imperatives for reform and transformation.

The report said the 12MP needs to be transformational to overcome global economic uncertainties, domestic structural challengers and shortcomings in the development approach.

The first game changer are the imperatives for reform and transformation.

The second game changer is to catalyse strategic and high impact industries to boost economic growth.

The third is transforming micro, small, and medium as the new drivers of growth.

The other are to embrace the circular economy; accelerating adoption of integrated water resources management.

The report said the government will step up its efforts to boost productivity growth under the 12MP with the MFP expected to contribute 40.4% to the GDP growth.

The improved GDP growth will contribute to higher labour productivity of 3.6% per annum.

It also said 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%.

The increase will be underpinned by higher household income arising from expected stable labour market conditions in tandem with the post-Covid economic recovery, higher minimum wage and cash assistance to target groups.

Private investment will rebound and is expected to grow at 3.8% per annum or an average RM258bil at current prices compared with RM233bil in the 11th Plan.

Public investment is expected to grow at 2.6% per annum driven by Federal Government development expenditure and capital spending of non-financial public corporations (NFPCs).

The investment will largely be in infrastructure, transport, utilities as well as the oil and gas industry.

Major public sector projects that will be undertaken include the ECRL, Johor Bahru-Singapore RTS and the Pan Borneo Highway. They will be undertaken in phases.

Public consumption is expected to expand by 3.7% per annum.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Business News

LNG demand to rise 25-50% by 2030, fastest growing hydrocarbon - Morgan Stanley
Bursa publicly reprimands JAKS and principal adviser
Serba Dinamik says EY review on-going, gets one-month extension to submit accounts
Cabnet bags RM22.26mil contract in Kulim, Kedah
Southern Cable to transfer listing to Main market on Oct 28
Bursa Malaysia ends near flat on cautious note
Lufthansa CEO sees business travel recovering faster than thought
PNB launches wakaf ASNB service
BNM's international reserves at US$115.6bil as at Oct 15, 2021
Annum partners Greentech IOT for RM62.25mil Sarawak Water Supply subcontract works

Others Also Read


Vouchers