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

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 RMK-13. 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 citizen’s feedback,” Rafizi said.

The five-year 12th Malaysia Plan 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 12th Malaysia Plan was for the economy to expand 5.0% to 6.0%, compared to 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.

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