Through this vision, we will restore confidence in the market and investors, and would place Malaysia as a new Asian Tiger, says PM

by SHAZNI ONG/ pic by BERNAMA

PUTRAJAYA’S Shared Prosperity Vision 2030 (SPV 2030) is set to bring the country to greater heights in the years to come.

Prime Minister (PM) Tun Dr Mahathir Mohamad (picture) said SPV 2030 would give a higher value to the country’s economy and make it a nation that is competitive, of high integrity and dignity.

“Through this vision, we will restore confidence in the market and investors, and would place Malaysia as a new Asian Tiger,” he said.

Dr Mahathir said it is a vision and a gift for the current generation and generations to come and it will bring more equitable growth.

He said the blueprint is an effort to make Malaysia a country that continues to grow sustainably with wealth distribution that is fair and inclusive — encompassing each income group, across ethnic groups and regions “based on the principle that no one should be left behind”. He added that it also includes the supply chain so as to create social harmony and political stability.

The Malaysian Reserve takes a look at the SPV 2030 and how it would chart the country and its future.

What is SPV 2030?

The official definition of SPV 2030 reads: “Shared Prosperity Vision 2030 is a commitment to make Malaysia a nation that achieves sustainable growth along with fair and equitable distribution, across income groups, ethnicities, regions and supply chains.

“The commitment is aimed at strengthening political stability, enhancing the nation’s prosperity and ensuring that the rakyat is united, while celebrating ethnic and cultural diversity as the foundation of the nation-state,” according to the document.

The SPV 2030 sets out 15 guiding principles by taking into account a wide spectrum of thoughts, views and philosophies embedded in the sociocultural context of the unique nature of Malaysia’s society.

This, it said, represents the foundation for the preparation of the strategic thrusts, enablers and target achievements, which also outlines three objectives — namely development for all, addressing wealth and income disparities, and united, prosperous and dignified nation.

The SPV 2030 also outlined seven strategic thrusts with several examples of targets, and eight enablers. The seven thrusts are on business and industry ecosystems, key economic growth activities, human capital, labour market and compensation of employees, social well-being, regional inclusion and social capital. Bumiputera outcomes are also included in all of the strategic thrusts.

The eight enablers are on fiscal sustainability, financial capital, effective institutional delivery, governance and integrity, education and technical and vocational education and training, big data, sustainability and enlightened society.

Fifteen key economic growth activities have been proposed, alongside with the proposed distribution of economic regions throughout the country.

Basis of SPV 2030

Malaysia’s GDP is lagging behind countries and regions such as China, East Asia and the Pacific. The country’s adoption of high technology in manufacturing and services sectors also remains low.

The country also faces a widening income disparity between workers and owners, household groups, ethnicities and regions too. Others include corruption and abuse of power which lead to stifled economic growth and distribution.

SPV 2030’s Target

With the vision aiming to achieve a GDP of RM3.4 trillion (nominal) in 2030 with an average growth rate of 4.7% per annum (constant) within the 2021 to 2030 period, SMEs and micro business will contribute 50% to the GDP, and contribution of Bumiputera enterprises will account for 20% of the national income.

The document noted that the implementation of SPV 2030 will encompass all Malaysians where nine target groups have been identified.

“However, in line with the concept of equality underpinning this effort, certain groups will be given priority in order to improve their socio-economic status and ensure that they are not left behind in the government’s efforts to achieve the goals of the shared prosperity vision.

“The polarity management will be guided by scrutinising compilation of issues and challenges, objectives, gui-ding principles, strategic thrusts and enablers, as well as targets.

“This includes policies and initiatives of existing Bumiputera affirmative actions under specific, federal and state agencies,” it said.