• 12MP MTR is themed “Malaysia Madani: Sustainable, Prosperous and HighIncome”.

• 12MP will be realigned with the Ekonomi Madani vision, which aims to empower and rejuvenate the national economy over a 10-year period.

• The government is committed to spending at least RM90bn a year from 2023 until 2025 under 12MP.

• The government will fully spend the RM400bn allocation under 12MP and increase the ceiling by RM15bn, bringing the total sum to RM415bn.

• Malaysia’s economy is on track to grow between 5.0% and 5.5% for the remainder of the 12MP

• Inflation to hold between 2.8% to 3.8% yearly

• GNI per capita in current prices is projected to increase by 4.6 per cent per annum to RM61,000 or USD14,250 in 2025

The 12th Malaysia Plan (12MP) Mid-Term Review (MTR) was tabled at the Dewan Rakyat, revealing crucial information about the country’s development and the wellbeing of its people. The 12MP MTR was not a usual approach in assessing the country’s five-year development plan but instead encompasses new policies and strategies to address current challenges. The 12MP MTR has been realigned with the aspiration and vision of the Madani Economy, to boost Malaysia’s economy for a ten-year period and promote national development while enhancing the quality of life for the people.

Themed “Malaysia Madani: Sustainable, Prosperous, High-Income”, the 12MP MTR introduces 17 Big Bold measures covering 71 main strategies and initiatives that will serve as the main catalyst in accelerating the efforts to reform the socioeconomic development of the nation in line with the Malaysia MADANI aspiration.

Review of Themes and Policy Enablers of the Twelfth Malaysia Plan

The Twelfth Plan was anchored on the implementation of three key themes, namely resetting the economy, strengthening security, wellbeing and inclusivity as well as advancing sustainability. Four catalytic policy enablers, namely developing future talent, accelerating technology adoption and innovation, enhancing connectivity and transport infrastructure as well as strengthening the public service supported the implementation of these themes

Economic Performance, 2021-2022

During the review period, the gross domestic product (GDP) growth surpassed the target expanding by 5.9% per annum, led by improved labour productivity and private sector activities. Private investment increased by 4.9% per. Labour market conditions improved, leading to higher productivity growth of 3.7% per annum, with unemployment rate at 3.9% in 2022. Meanwhile, average inflation rate increased to 2.9% per annum. In terms of external trade, gross exports grew by 25.5% per annum whilst gross imports expanded by 27.1% per annum. The current account remained in surplus at RM55.1bn or 3.2% to gross national income (GNI) in 2022, supported by substantial goods surplus. The Federal Government fiscal deficit as a percentage of GDP narrowed from 6.2% in 2020 to 5.6% in 2022. Meanwhile, GNI per capita was higher at RM52,968 (US$12,035) in 2022 from RM42,838 (US$10,191) in 2020.

Framework of the Mid-Term Review of the Twelfth Malaysia Plan

The aspiration of the Malaysia MADANI and the framework of ‘Ekonomi MADANI: Memperkasa Rakyat’ are the pillar for the MTR of the Twelfth Plan that eventually will benefit the rakyat to lead a better quality of life. The MTR framework with the theme Sustainable, Prosperous, High-Income Nation, is supported by key enabler of enhancing efficiency of public service delivery and three main focus, namely strengthening sustainability, building prosperous society, and achieving high-income nation.

The MTR of the Twelfth Plan identifies 17 Big Bolds to catalyse the socioeconomic development in the remaining period. These Big Bolds will be implemented through at least 71 strategies and initiatives across the key enabler and the three main focuses. The progress of these Big Bolds will be monitored based on various selected targets.

Source: BIMB Securities Research - 12 Sept 2023