Govt allocates RM400b in 12MP for sustainable economic growth

The PM expects the govt’s financial position to improve in 2023


PRIME Minister (PM) Datuk Seri Ismail Sabri Yaakob (picture), in his tabling of the 12th Malaysia Plan (12MP) in Parliament yesterday, announced that the government will allocate RM400 billion to fund existing and new development projects.

The 12MP now has the highest allocation to spend on development programmes, a title previously held by the 11MP at RM260 billion in 2015.

“Due to the enormous need to protect lives and livelihoods in 2020 and 2021, the space to implement development projects is very limited and is expected to continue until next year.

“Therefore, the government’s development allocation is more focused on existing projects,” he said.

The PM expects the government’s financial position to improve in 2023, when the economy strengthens, and that the 12MP will complement the National Recovery Plan to restore the momentum of economic growth and achieve longterm development goals.

The 12MP is a comprehensive development plan which will introduce a number of reforms to ensure sustainable economic growth, with a more equitable distribution of opportunities and outcomes.

“To this end, three themes and four policy catalysts as well as 14 drivers of change have been introduced.

“The government takes a whole-of-nation approach which involves the entire machinery and agencies of government, industry and society in a single mission to implement reforms,” he said.

Ismail Sabri added that the purpose of these reforms is not to generate national wealth alone, but to address some of the challenges of economic structure, provide workforce for the future, improve the wellbeing of Keluarga Malaysia and bridge the development gap between regions.

With the implementation of these reforms, he said Malaysia will be a high-income, high-tech country and have a better quality of life by 2025.

Among the highlights of the 12MP are accelerating the growth of several strategic and high-impact industries, namely electrical and electronics, global services, aerospace, halal industries, as well as strengthening the transformation of micro, small and medium enterprises (MSMEs).

Under the 12MP, the government aims to spearhead the digital transformation agenda through public sector digitisation initiatives and the transformation of MSMEs.

The provision of digital infrastructure involves public and private sector investment worth RM28 billion to improve the existing 4G network. To accelerate the implementation of 5G nationwide, another RM15 billion will be invested by the private sector.

The 12MP will also introduce the Graduate Marketability Strategic Plan 2021-2025 to address the issue of mismatch in the labour market. In addition, the Job Creation Strategic Plan 2021-2023 will be introduced to provide the country with a resilient and highly skilled workforce needed by industries.

On provisions of affordable housing and continuation of the 11MP period, another 500,000 units of affordable housing will be built under the 12MP to increase the chances of the bottom 40% (B40) and middle 40% (M40) groups to own a house.

In addition, financing facilities including the Fund for Affordable Housing, Youth Housing Scheme and Rent-to-Own Programme will be further improved to ensure that the B40 and M40 groups are not burdened by instalment payments.