Five-year development plan Malaysia: key highlights


Malaysia unveiled its most extensive development plan for the next five years, through 2025 with RM400 billion (S$129 billion) set out for existing and new projects. This is Prime Minister Ismail Sabri Yaakob’s administration’s first significant national policy paper.
The budget for the 12th Malaysia Plan is a 54 percent increase above the RM260 billion budget for the 11th iteration with the following are the highlights:
There are three primary topics.

  1. Economic rebalancing
  2. Improving well-being, security, and diversity
  3. Promoting long-term sustainability
    Main economic objectives
  4. Economy/Productivity – Aim for average GDP growth of 4.5 to 5.5 percent per year. During the 11th Malaysia Plan, the average GDP growth was 2.7 percent per year.
  • Raise Malaysia’s annual labor productivity increase from 1.1 percent to 3.6 percent.
  1. People – Raise Malaysia’s gross national income per capita from RM42,503 to RM57,882 (to meet the World Bank’s definition of a high-income economy).
  • Employee compensation will rise from 37.2 percent to 40 percent of GDP.
  • Raise the monthly average family income from RM7,160 to RM10,065.
  • Raise Malaysia’s happiness index from 0.5 percent to 1.2 percent every year.
    Other objectives: – Climate: Following the Paris Agreement, reduce greenhouse gas emission intensity by 45 percent of GDP by 2030 compared to 2005 levels.
    Reduce the GDP per capita difference between central districts and Borneo states, with a 1:2.5 and 1:1.2 ratio for Sabah and Sarawak, respectively.
  • Businesses: By 2025, micro, small, and medium-sized businesses will account for 45 percent of GDP and 25 percent of all exports.


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