KUALA LUMPUR (Sept 5): The government prefers to roll out reforms in “pocket sizes” instead of a large blueprint, Economy Minister Mohd Rafizi Ramli said on Thursday, as it begins designing the 13th Malaysia Plan (13MP).

The government is now gathering inputs, and would then work on determining the priority items, according to the text of Rafizi’s speech at the kick-off conference for the 13MP. Getting the sequencing of policies correct is crucial, he noted.

“Instead of a large blueprint, the preference now is to roll out reforms in pocket sizes”, which would give the government “room to manoeuvre and adapt to our citizens' feedback”, Rafizi said.

The five-year 12MP is set to expire next year. During the plan’s mid-term review in 2023, the government raised the total spending allocation to RM415 billion, from RM400 billion when the plan was launched in 2021.

Among targets under the revised 12MP was for the economy to expand 5.0% to 6.0%, compared with 4.5%-5.5% under the original plan, driven by industries such as electronics and aerospace, as well as measures to improve productivity in a bid to boost wages.

For the next plan, however, Malaysia must become a consumption-driven economy to sustain growth over the longer term, Rafizi said.

“An economy that is primarily driven by our people will be the most important determinant of our long-term trajectory and growth rate,” he said. “By boosting domestic demand, we kickstart a virtuous economic cycle.”

However, the enhanced focus on consumption “will not come at the expense of our export-oriented economy”, he stressed. “It’s about recognising the current imbalance between the two drivers, and creating urgency to close the gap.”

Further, marrying a traditionally trading-based economy with greater consumption “diversifies our growth and mitigates risks”, he added.

Parliament tabling in July 2025

The 12PM had its share of misses, based on 2021-2023 figures published in the 13MP kick-off conference presentation.

Labour productivity annual growth averaged 2.8% in the period, versus its long-term target of 3.7%.

Monthly household income average of RM8,479 was still below the RM10,065 target by 2025. Employee compensation only made up 33.1% of gross domestic product in 2023, versus the 40% target by 2025.

Malaysia’s 2023 gross national income of RM52,991 compares with the 2025 target of RM61,000.

The 13MP, spanning five years in 2026-2030, is expected to be tabled in Parliament in July 2025.

The government’s recent efforts to spur growth include focusing on high-growth high-value ventures in sectors like energy, electrical and electronics, rare earth mineral mining, and agriculture.

On the list are reforms of social protection, housing, public transportation, and fiscal management.

Priority is also given to GovTech — integration of government services on a single digital platform to modernise and improve efficiency of the public sector.