Kuala lumpur: The 13th Malaysia Plan (13MP) is expected to enhance Malaysia’s competitiveness by promoting high-value manufacturing through business and investor-friendly policies, say economists.
According to BERNAMA News Agency, Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff stated that the 13MP, which serves as an indicative plan from 2026 to 2030, will help stimulate both domestic and foreign investments through policy reforms and incentives. Dr Razman highlighted that the plan could position Malaysia as a leader by leveraging existing strengths in manufacturing and semiconductors, driving regional integration through ASEAN frameworks, and adopting strategic regional positioning. He emphasized the importance of advancing the semiconductor value chain and enhancing regional supply chain resilience while considering sustainability and inclusivity among local businesses.
The 13MP document is scheduled to be tabled at the Dewan Rakyat sitting on July 31 by Prime Minister Datuk Seri Anwar Ibrahim. Dr Razman added that the five-year strategic plan should also promote automation through incentives for technology adoption, support for workforce transitions, and clear and stable policies. He suggested that 13MP should accelerate digitalisation by investing in digital infrastructure, providing incentives for digital adoption, fostering ecosystem and collaboration, as well as strengthening cybersecurity and data governance.
Meanwhile, Sunway University economics professor Dr Yeah Kim Leng remarked that the 13MP should prioritise creating and enabling an environment for free markets to thrive, allowing private enterprises to innovate, compete, and prosper. He noted that Malaysia is expected to transition into a high-income nation, as defined by the World Bank, during the 13MP period from 2026 to 2030. Dr Yeah emphasized that the ongoing expansion of high-value and advanced manufacturing and service sectors is a key driver of this transition.
Dr Yeah pointed out the recent increase in foreign direct investment in areas such as semiconductors and data centres, which has enhanced the country’s competitiveness and strategic position as a regional hub for the semiconductor supply chain and data centres. He also identified industries like artificial intelligence (AI) and those related to the Fourth Industrial Revolution (Industry 4.0) as significant, with the 13MP expected to promote structural advancements in these high-growth and high-value industries, including renewable energy, carbon capture and storage, medical devices, and pharmaceuticals. Dr Yeah added that the 13MP initiatives should also address the increasing demand for more sophisticated and higher-quality services, subsequently driving growth in finance, education, healthcare, and aged care.