12MP review: At least 5% GDP growth per annum targeted

KUALA LUMPUR: Malaysia’s gross domestic product (GDP) is targeted to grow by at least 5% per annum during the 12th Malaysia Plan (12MP) period, Datuk Seri Anwar Ibrahim said in tabling the Mid-Term Review of the government’s five-year development plan.

The Prime Minister said the target was set based on two factors including strengthening productivity by migrating to high value industries, advanced technology and highly skilled talent.

“The government will also work with the private sector and academics to improve the country’s productivity,” he told the Dewan Rakyat on Monday (Sept 11).

“Multifactor productivity (MFP) is expected to contribute an average of 42.8% to the country’s productivity while labour productivity is expected to grow at 3.8% a year,” he said.

He said the government also intends to make Malaysia an attractive investment hub.

This, he said, will be done by strengthening Malaysia’s competitive advantage through improvements to business regulations including through the MyMudah unit.

He said this is expected to spur domestic direct investment (DDI) and foreign direct investment (FDI).

"Private investment is expected to grow at 6.4% per annum and at an average of RM300bil annually in the latter half of the 12MP,” he said.

The government will also be focussing on five high-growth high value (HGHV) sectors: renewable energy; technology and digital; electrical and electronics; agriculture and agro-based; and rare earth industries.