KUALA LUMPUR – Malaysia has announced its most ambitious development strategy yet under the 13th Malaysia Plan (2026 to 2030), allocating RM611 billion over five years to boost economic growth, technology innovation, and high-value industries. Unveiled by Prime Minister Anwar Ibrahim in Parliament on July 31, the plan outlines annual GDP growth targets of 4.5 to 5.5 per cent and aims to elevate Malaysia to high-income nation status by 2030.
Marking a 53 per cent increase over the previous RM400 billion plan, Anwar described the new blueprint as a results-oriented initiative designed to “reshape development” and ensure the country does not miss what he termed a “generational opportunity” in artificial intelligence. The plan seeks to place Malaysia among the world’s top 30 economies from its current 37th position through aggressive investment in digitalisation, renewable energy, and the semiconductor industry.
Key elements include a target to increase electronic and electrical (E&E) exports from RM600 billion in 2024 to RM1 trillion by 2030, driven by Malaysia’s new High Value High Technology Semiconductor Industry Flagship project. Renewable energy is another core focus, aiming to increase its share to 35 per cent of installed electricity capacity by 2030, up from 29 per cent in 2024, with large-scale solar and green hydrogen initiatives kicking off in states like Terengganu and Kelantan.
Anwar also addressed the country’s fiscal health, pledging to reduce the national deficit to below 3 per cent of GDP and cap federal debt at a maximum of 60 per cent of GDP. Currently, Malaysia’s debt stands at RM1.3 trillion, or 64.6 per cent of GDP based on World Bank figures. Measures to ease investor concerns include commitments to judicial independence and ongoing structural reforms across various industries.
Despite the clear economic roadmap, the political climate remains tense. Calls of “Kekal Anwar” from government MPs countered growing opposition sentiment, punctuated by a recent rally calling for the Prime Minister’s resignation. Domestic unease, especially concerning tax hikes and fuel subsidy reductions, continues to challenge the administration’s popularity.
Still, analysts believe Malaysia’s existing industrial base and foreign investment links provide a solid foundation for this transformative blueprint. The country’s push to lead in AI, digital technology, and maritime infrastructure, including renewed efforts in shipbuilding, signals an intent to reposition Malaysia as a competitive and sustainable leader in the region.
With an eye on stability and implementation, the success of the 13th Malaysia Plan will depend heavily on sustained governance, policy continuity, and adaptability amid shifting global and domestic pressures.