12MP aims to raise average household income to RM10,000 per month by 2025, says PM

KUALA LUMPUR: The 12th Malaysian Plan (12MP) will be a detailed roadmap for the introduction of a higher quality of life by 2025, says Datuk Seri Ismail Sabri Yaakob.

The Prime Minister said among the goals set in 12MP are achieving a gross domestic product (GDP) growth rate of between 4.5% and 5.5% annually between 2021 and 2025 and raising the average household income to RM10,000 per month by 2025.

He also said there was an aim to reduce the GDP per capita gap between Peninsular Malaysia and Sabah from 1.0 to 2.5 and between Peninsular Malaysia and Sarawak from 1.0 to 1.2 by 2025.

Ismail Sabri said that the fourth aim of the 12MP is to reduce the intensity of greenhouse gas emissions in the GDP to 45% by 2030.

He also said that the transformation targets are not just about generating national wealth.

"They will overcome several structural economic problems, to prepare a future workforce, to increase the harmony of Keluarga Malaysia (Malaysian Family) and to reduce development gaps between states," said Ismail Sabri.

"Aside from that, it is also a more efficient implementation method in delivering services to the people," he added during the tabling of the 12MP in Parliament on Monday (Sept 27).

Ismail Sabri said that the 12MP will use an unprecedented "whole-of-nation" approach that will involve all government agencies, industry players, as well as society in a mission to transform the nation.

He also said that the government will also focus on ensuring growth in several strategic and high-impact industries such as electric and electronics, global services, aerospace, the halal industry, creative, tourism, biomass, and smart farming activities.

Ismail Sabri said that under 12MP, the government will introduce clearer policies and legislation, as well as create a more conducive business environment in order to ensure quality investments.

"In line with the fourth Industrial Revolution (IR4.0), the manufacturing sector is expected to shift towards the production of high-added-value products and the Malaysian industry is an important player in the global supply value chain," he said.

Ismail Sabri added that the farming sector will also be improved using smart technology in order to increase productivity and the level of food security in the country.

He then added that international trade will be strengthened by identifying new markets and products and international trade cooperation will be encouraged through the ratification of free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP).

Ismail Sabri added that transformation will be ensured among the 1.2 million micro small and medium scale enterprises (SMEs) across the country.

"Micro-SMEs are the backbone of the country's economy. However, a big portion of micro-SMEs remained incompetent and needed to be empowered after being affected by the pandemic," said Ismail Sabri.

"Therefore, the government is committed to continuing supporting recovery among the micro-SME community," he added.

He also said that the government has approved several projects under 12MP, including investment loan funds for research and development in aerospace, electrical and electronics and the establishment of the Centre for Excellence for Future Industry.

He also said that other projects under 12MP include the establishment of intellectual property funds, a simplified financing scheme to assist local businesses in transitioning digitally.

Ismail Sabri also said that he is confident that with the implementation of the above plans is confident Malaysia will be able to achieve an average growth of 5.2% in the services sector, 5.7% in manufacturing, 3.7% in farming, 2.6 in the mining sector, and 4.2% in construction between 2021 to 2025.

"For the badly affected tourism industry, it is expected to recover with the rate of 3.8% growth and micro-SMEs are able to contribute 45% to the GDP and 25% to total exports in 2025," said Ismail Sabri.