Economists expect 13MP will set out to boost Malaysia's competitiveness
KUALA LUMPUR: The 13th Malaysia Plan (13MP) is expected to enhance Malaysia's competitiveness by promoting high-value manufacturing through business and investor-friendly policies, say economists.
Putra Business School associate professor Dr Ahmed Razman Abdul Latiff said that the 13MP, which serves as the country's indicative development plan from 2026 to 2030, will help stimulate both domestic and foreign investments through policy reforms and incentives.
'The 13MP can position Malaysia as a leader by leveraging existing strengths in manufacturing and semiconductors, driving regional integration through Asean frameworks and adopting strategic regional positioning.
'It should also aim for the advancement of the semiconductor value chain and enhance regional supply chain resilience while not forgetting sustainability and inclusivity among local businesses,' Ahmed Razman said.
The 13MP document is scheduled to be tabled at the Dewan Rakyat sitting on July 31 by Prime Minister Datuk Seri Anwar Ibrahim.
The prime minister had previously said the 13MP was being formulated with a focus on the economic empowerment of the people through increased income, inclusive and sustainable economic structural reforms, as well as strengthening governance and efficiency in the delivery of public services.
In addition, Ahmed Razman said the five-year strategic plan should also promote automation through incentives for technology adoption, support for workforce transitions, and clear and stable policies.
'The 13MP should accelerate digitalisation by investing in digital infrastructure, providing incentives for digital adoption, creating ecosystems and collaboration, as well as strengthening cybersecurity and data governance,' he added.
Sunway University economics professor Dr Yeah Kim Leng said the 13MP should prioritise creating and enabling an environment for free markets to thrive and for private enterprises to innovate, compete, and prosper.
Yeah noted that Malaysia is expected to transition into a high-income nation, as defined by the World Bank, during the 13MP period from 2026 to 2030. Yeah emphasised that one of the key drivers of this transition is the ongoing expansion of high-value and advanced manufacturing and service sectors.
'The recent increase in foreign direct investment in these areas has enhanced the country's competitiveness and its strategic position as a regional hub for the semiconductor supply chain and data centres.
'In addition to semiconductors and data centres, industries such as artificial intelligence and those related to the Fourth Industrial Revolution (Industry 4.0) are also significant.
'The 13MP is expected to promote structural advancements in other high-growth and high-value industries, including renewable energy, carbon capture and storage, medical devices, and pharmaceuticals,' he said.
Yeah added that the 13MP initiatives should also address the increasing demand for more sophisticated and higher-quality services, which will subsequently drive growth in finance, education, healthcare, and aged care. — Bernama
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