PM Najib Tables 11th Malaysia Plan (11MP) As "Final Lap" In Race Towards Wawasan 2020

The five-year plan, according to Najib, reaffirms the government’s commitment to the people, and its belief that growth cannot be measured by economic success alone. The plan reckons that the well-being of the rakyat and a commitment to inclusive and sustainable growth was necessary hallmarks of an advanced nation.

The Malaysian economy would benefit from more robust global economic prospects, recovery of commodity prices and benign global inflation, he said.

The 11MP also looks beyond 2020 with Malaysia to remain as an open economy, regionally and globally integrated post-2020. Growth would be driven by the private sector with private investment expanding at 9.4 per annum. The manufacturing and services sectors are expected to contribute more than 75 per cent of the GDP.

freemalaysiatoday.com

The government has allocated a ceiling budget of RM260 billion for development between 2016 to 2020.

- Gross National Income (GNI) per capita to reach RM54,100 (US$15,690) in 2020. Revenues are expected to expand by 7.9% per annum and the dependence on oil-related revenue to decline to 15.5 per cent by 2020. Private investment growth forecasted at 9.4% between 2016 to 2020, while gross exports will grow at 4.6%.

- Malaysia’s gross domestic product (GDP) to hit RM2.6 trillion in 2030 (RM1.4 trillion in 2020). The GDP per capita is projected to more than double to RM117,260 in 2030 (2020: RM54,890). World trade is estimated to grow to USD44 trillion in 2030 (USD26 trillion forecast in 2020).

- The introduction of GST to bring in revenue of RM31.4 billion per annum over the next five years compared with RM15.5 billion collected through the sales and services tax during the 10MP.

- Inflation to remain at below 3% from 2016 to 2020.

- The Federal Government’s total debt is expected to decline to below 45% by 2020.

- About 1.5 million jobs to be created by 2020. More than 40% of total employment will comprise of skilled workers in 2030 (2020 will have 35%) and labour productivity will increase to RM92,300 in 2020 (2015: RM77,100).

- 11MP aims to see 59% of women in the workforce by 2020 as compared to 54% last year.

- Average monthly household income to increase to RM10,540 in 2020 (2014: RM6,141).

- The Malaysian Well-being Index to increase by 17% per year, indicating an improvement in the well-being of the rakyat.

- Literacy rate has increased to 98% compared to 75% in 1970.

- Poverty rate has dropped to 0.6% in 2014 compared to 49.3 percent in 1970.

- The government is aiming to elevate B40 (households in the bottom 40% income bracket with mean income of RM2,537 per month) to middle-class by 2020, with average household income of over RM5,000 per month. Size of country's middle-class is expected to increase to 45% by 2020.

- In 2013, the government targetted to build 1 million affordable homes for the people. 182,000 units are expected to be completed by the end of this year with 653,000 nire ti be constructed under 11MP. There will also be a new renovation programme involving 400,000 homes in villages and rural areas.

- The number of beds at private and government hospitals will be increased by upgrading several hospitals and constructing six new ones. To increase access to healthcare, 165 1Malaysia Clinics will be set up in rural areas. By 2020, the ratio of doctor to patient is expected to increase to 1:400.

- At least 80 new schools will be built across the country, including 2 in Perlis, 2 in Malacca, and 5 each in Sabah and Sarawak.

- Children between the ages of 13 to 18, living at welfare institution will be given a chance to obtain education, technical and vocational training (TVET).

- New power plants to be built at an estimated cost of RM28 billion, generate 7,626 MW of electricity and create 35,000 jobs under 11MP.

- Malaysia will develop four major cities, namely Kuala Lumpur, Johor Bahru, Kuching and Kota Kinabalu, as growth catalyst cities in order to maximise benefits for the residents and to stimulate national development.

- The Pan Borneo Highway that spans 2,239 kilometres currently being constructed is expected to increase the connection between Sabah and Sarawak.

- Flood mitigation programmes: The government will execute the Sungai Kelantan RTB with the construction of the Nenggiri and Lebir Dams. malaysiakini.com

The 11th Malaysia Plan (11MP) is to be the basis of a five-year development roadmap where Najib, who is also Finance Minister, will propose that the Dewan Rakyat endorses the government's efforts to continue implementing the National Transformation Policy and to be supported by the Malaysian National Development Strategy (MyNDS) as a development policy framework for the realisation of Vision 2020.

astroawani.com

It is apparent that the 11MP will pay much attention to the bottom 40% of Malaysians in terms of income due to tougher economic conditions, with a slowdown in consumer spending due to the implementation of the goods and services tax (GST) as well as falling commodity prices.

The emphasis on education as a driver to improve the livelihoods of the low-income group is also expected to be highlighted in 11MP, as the prime minister had previously said that in Malaysia, every student can go to university as long as they have the will power to succeed.

theedgemarkets.com