• The 12MP will cover the period from 2021 to 2025
• 3 Themes of the Twelfth Malaysia Plan
• 4 Policy Enablers of the Twelfth Malaysia Plan
• 14 Game Changers of the Twelfth Malaysia Plan
• Strengthening macroeconomic resilience for sustained growth.

The economic development of Malaysia is steered by the five-year development plans. The Plans have always sought to identify the possible challenges during the five years and provided creative short and medium-term policy and strategy solutions. The Plans have served well to set out the medium-term policy priorities of the nation, the role of the government in the implementation of the Plan as well as the opportunity space for the private sector. Malaysia began publishing its five-year development plan documents with the First Malaya Plan in 1956, while the First Malaysia Plan was launched in 1965, bringing the overall total to 14 development plans. The 12th Malaysia Plan (12MP) is the nation’s 14th five-year development plan.

The 12MP, which will cover the period from 2021 to 2025, aims to restore the momentum of economic growth and achieve long-term development goals as the country faces challenges of the COVID-19 pandemic. The 12MP, which contains various initiatives, is centred on nine main areas of focus, namely boosting economic growth; strengthen growth catalysts; improving the well-being of Malaysian families; strengthen public safety and order; eradicating hardcore poverty, and bridging the income gap. The Plan will be based on three themes, four policy enables and fourteen game changes emphasizing the economic, social, environment and governance aspects.

The 12MP is a medium- and long-term economic recovery plan to address the impact of the COVID-19 pandemic and to put the economy back to its long-term growth trajectory. Considering the current challenges, a holistic plan is designed to reform and embrace structural changes in the pandemic era. The 12MP is designed to achieve sustainable economic growth, focusing on equitable wealth distribution, the rakyat’s wellbeing and environmental sustainability. The Plan will be the final roadmap before entering a new phase, becoming a developed nation. The Plan will take into account current challenges and emerging medium and long-term structural issues and the Shared Prosperity Vision 2030, which are at the beginning of implementation. With the challenges faced during the recent recession, the economic landscape is changing toward digitalization and sustainability, especially embracing a circular economy. Hence, the 12MP is the platform to address these challenges so that it can be a foundation to accelerate growth, strengthen resilience and achieve the socio-economic agenda and ensure that the country is on course towards becoming a High-Income Advanced Nation.

Themes, catalytic policy enablers and game changers

Themes - The Government has designed three themes to help Malaysia stay ahead of the challenges and embracing with the structural changes. The three themes of the Twelfth Plan are resetting the economy; strengthening security, wellbeing and inclusivity; and advancing sustainability. These thrusts aim to comprehensively address the end-to-end needs of the rakyat and the nation.

Source: BIMB Securities Research - 28 Sept 2021