Insight - 12MP: A tall order to deliver expectations

Lee Heng Guie: Malaysia’s potential output growth has slowed in recent years, from an average annual growth of 4.9% per annum in 2011-2019 to 3.3% in 2020 and 3%-4% in 2021. Hence, a substantial improvement in productivity, technology and capital efficiency is needed to boost the country’s economic growth potential.

IN continuation of the Vision 2020’s aspiration to achieve a high-income nation by 2025, the 12th Malaysia Plan (12MP) covering three development dimensions – economic empowerment, environmental sustainability and social re-engineering – will further crystalise the implementation of the Shared Prosperity Vision 2030 (SPV 2030).

The 12MP has outlined initiatives, transformational programmes, economic and institutional reforms (four enablers and 14 game changers) to reset the Covid-19 pandemic’s battered economy; accelerate economic and industrial transformation, achieve inclusive growth and strengthen competitiveness, while also create the foundations for higher long-term sustainable growth.