Value creation takes centre stage in 13MP to drive high-income ambitions

New Straits Times

3 days ago

KUALA LUMPUR: Value creation takes centre stage in the 13th Malaysia Plan (13MP), which aims to drive sustainable economic growth and propel Malaysia towards high-income nation status by 2030.
Universiti Malaya's International Institute of Public Policy and Management adjunct professor Tan Sri Dr Sulaiman Mahbob said the five-year plan focuses heavily on generating greater economic value across all sectors.
"This is particularly through enhancing existing resources and developing new opportunities," he said on a programme titled '13th Malaysia Plan: What it means for you and the nation', broadcast live on NST Online and Berita Harian digital platforms.
"The strongest message was about value creation. It means generating more jobs, entrepreneurship and higher productivity. This approach is visible in almost every sector outlined in the plan."
Sulaiman explained that value creation is linked to how inputs are transformed into higher output, contributing directly to gross domestic product growth.
While the idea is not new, he said it has not always been fully addressed in past national plans.
Sulaiman also pointed to the plan's alignment with the Madani economic philosophy, which stresses inclusive development, human capital, and environmental sustainability.
"The plan highlights the importance of TVET, upskilling, and addressing environmental concerns. All of this supports the Madani agenda," he said.
He added that the 13MP is realistic and can be implemented effectively with proper planning and coordination.
"We are not starting from scratch. The foundation is already there. What is needed now is to act, build on what we have, and explore new markets," he said.
Sulaiman also stressed the need for better project execution within the civil service, calling for proper design, reduced wastage, and clear evaluation mechanisms to ensure results.
"Good project planning is essential. It must be done right from the start so that the intended benefits are realised," he said.
Meanwhile, Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid said the government's continued focus on value creation reflects a clear intent to move Malaysia further up the value chain.
"We can see that with the increase in development expenditure from RM400 billion under the 12th Malaysia Plan to RM430 billion now.
"That shows the government's seriousness in funding growth-related initiatives," he added.
Afzanizam noted that the allocation translates to about RM86 billion annually, with significant portions directed at the economic and social sectors.
He added that funding will not come solely from the government, with government-linked investment companies and government-linked companies expected to contribute RM120 billion, and the private sector providing RM61 billion through Public-Private Partnership arrangements — bringing total planned investment under 13MP to RM611 billion.
"This is quite a significant figure that could kick-start our journey toward high-income status by the end of 2030," he said, adding that the development expenditure hike was in line with his expectations.
Afzanizam described the Prime Minister's approach to economic planning as structured, incorporating fiscal ceilings and floors.
He noted that value creation goes hand in hand with social upward mobility, as the goal is to help people improve their current economic position.
On the fiscal front, Afzanizam said Malaysia is seeing early signs of improvement as tax revenue rose 30 per cent in the first quarter of 2025 compared to the same period last year, climbing from RM600 billion to RM800 billion.
He added that the fiscal deficit also narrowed to 4.5 per cent, compared to 5.7 per cent previously, following subsidy rationalisation measures, including the June 2024 diesel subsidy reform.
"If this trajectory continues, the government will have greater fiscal space to spend in the coming years.
"That is why I believe a higher budget allocation under 13MP is justified," he said.