Kuala lumpur: The country’s gross domestic product (GDP) growth is targeted at between 4.5 per cent and 5.5 per cent per annum during the 13th Malaysia Plan (13MP) period from 2026 to 2030, driven primarily by domestic demand, particularly private consumption and investment.
According to BERNAMA News Agency, the 13MP report released by the Ministry of Economy today highlights that GDP growth will be supported by domestic demand and a positive external sector. The report, themed “Reshaping Development,” emphasized that services, manufacturing, and construction sectors will continue to be the main sources of growth, propelled by the shift towards a value-creation-based economy.
Growth is anticipated to be further fueled by key policies and strategies, especially the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap (NETR), and the National Semiconductor Strategy (NSS), which were introduced in the initial years of the MADANI Economy framework. The report also noted that Malaysia’s economic outlook will be shaped by global environmental developments and socio-economic policies during the 13MP.
The report warns that uncertainties related to the United States’ trade policies and other economic measures could impact Malaysia in the first half of the 13MP. However, the projected GDP growth is expected to enable Malaysia to reach a per capita gross national income (GNI) target of RM77,200 by 2030, thus exceeding the high-income threshold.
Ten macroeconomic targets have been set to drive economic growth, improve citizens’ well-being, and strengthen governance during the 13MP. These targets include an average annual real private investment growth of six per cent, a fiscal deficit of below three per cent of GDP by 2030, and an average annual gross export growth of 5.8 per cent. Another target is for employee compensation to reach 40 per cent of GDP.
Additional targets involve an average annual real public investment growth of 3.6 per cent, an average inflation rate of between two and three per cent, a current account surplus equivalent to 2.2 per cent of GNI, and a 1.6 per cent annual growth rate for the Malaysian Well-being Index (MyWI).
The report also projects that measures aimed at boosting private investment will result in a six per cent annual growth, averaging RM417.9 billion per year, thus becoming a key driver of investment during the 13MP. Public investment, which includes allocations from various government bodies, is expected to grow by 3.6 per cent annually, averaging RM112.9 billion per year during this period.
The federal government will allocate RM430 billion to finance development programmes and projects under the 13MP, including infrastructure and infostructure developments, public transportation, and the construction of schools, hospitals, and affordable housing. These projects will also address flood mitigation and capacity-building programmes.
National development investments will be further supported by projects from government-linked companies through the Government-Linked Companies Activation and Reform Program (GEAR-uP), with an allocation of RM120 billion. Additionally, public-private partnerships (PPPs) will play a significant role, with private sector participation expected to contribute an estimated RM61 billion during the 13MP period.