13MP: Malaysia eyes up to 5.5pct GDP, 6.0pct private investment growths annually by 2030
Among the goals, the country's gross domestic product (GDP) is projected to grow between 4.5 and 5.5 per cent annually.
Sector-wise, agriculture is expected to expand by 1.5 per cent a year, mining by 2.8 per cent, construction by 5.0 per cent, manufacturing by 5.8 per cent and services by 5.2 per cent.
To drive economic expansion, total investments are projected to grow 5.5 per cent annually.
Private investment is targeted to grow at 6.0 per cent annually, amounting to RM417.9 billion while public investment is expected to rise by 3.6 per cent or RM112.9 billion annually.
Malaysia's gross exports are forecast to increase 5.8 per cent annually by 2030 with the current account balance to gross national income (GNI) projected to reach 2.2 per cent by 2030.
Other economic targets include increasing labour productivity by 3.6 per cent annually, achieving full employment by 2030, and keeping inflation within 2.0 per cent to 3.0 per cent.
The fiscal deficit is expected to fall below 3.0 per cent by the end of the plan period.
GNI per capita is projected to reach RM77,200, with employee compensation to GDP targeted at 40 per cent.
The average monthly household income is expected to rise to RM12,000, while the absolute poverty rate is targeted to drop to 4.7 per cent.
To strengthen socio-economic resilience, the plan targets a 1.1 per cent annual population growth and a 20-year increase in post-retirement life expectancy by 2050.
The Malaysia Well-being Index (MyWI) is projected to grow by 1.6 per cent annually.
In education, Malaysia aims to align its Programme for International Student Assessment (PISA) and Trends in International Mathematics and Science Study (TIMSS) scores with global benchmarks.
It also targets 70.1 per cent of graduates to work in fields related to their qualifications by 2030.
In healthcare, the plan aims to reduce out-of-pocket expenses and lower the percentage of adults with health risk factors to 32 per cent.
By 2030, the government aims to deliver 500,000 affordable housing units to meet rising demand and ensure broader homeownership access.
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The Star
28 minutes ago
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Proper execution key for 13MP's success
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As such, these goals, however lofty, seem to take on an aspirational tone rather than a commitment to implement within the timeframe. 'Meanwhile, we noticed that some initiatives, such as implementation of a foreign workers levy, have been recycled several times. Furthermore, we see the 13MP rollout happening in the heat of a shifting geopolitical landscape,' they said in a research note. As new trade deals are signed, the economists noted that it remains to be seen whether Malaysia can navigate these changes effectively or whether a broader policy overhaul may be needed. 'Regardless, the 13MP paves the way for a new direction for the (upcoming) annual budget. We expect Budget 2026's tabling in October to include elements of the 13MP, including possibly milder development expenditure growth, as well as greater emphasis on the new focus sectors. 'Overall, no changes to our 2025 gross domestic product (GDP) growth forecast of 4.2% year-on-year,' they added. 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The Sun
an hour ago
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13th Malaysia Plan ambitious, needs strong execution and clear funding plans: Analysts
PETALING JAYA: The 13th Malaysia Plan (13MP) is ambitious and its goals can only be delivered with strong execution and clear funding plans, analysts say. Berjaya Mutual Bhd chief investment officer Datuk Dr Nazri Khan said the government's 4.5–5.5% gross domestic product (GDP) growth target is challenging but not impossible to achieve. 'Given the current situation, it's very challenging to hit 5.5%. But it is achievable – just more challenging,' he told SunBiz. He welcomed the focus on high-value, high-growth sectors such as artificial intelligence (AI), describing the move as a good way to break out of the middle-income trap. 'Targeting a fiscal deficit below 3% of GDP and keeping government debt under 60% – that's excellent. It will strengthen governance and fiscal reforms,' Nazri said. He added that regional development in Sabah and Sarawak, targeted subsidies such as the Rahmah Cash Aid and structural transformation efforts are all positive steps. However, execution remains the main hurdle. 'Bureaucracy is the problem. The ability to coordinate – that's a key challenge,' Nazri said, adding that investments in digitalisation and rural internet infrastructure will require a whole-of-government approach and strong monitoring. 'We always want to cut debt, but our execution and oversight have been weak,' he said, warning that the global environment adds to the difficulty. Nazri also flagged concerns about heavy reliance on domestic demand amid a disrupted labour market, global commodity shocks and geopolitical tensions. He said the 13MP's privatisation mechanisms are not clearly explained and hoped Malaysia Madani will not become purely rhetorical. 'The RM430 billion development budget is great, but it's unclear how it will be funded. There are still many subsidies, so how exactly will the deficit be reduced?' He also stressed the need for more job creation to prevent the rakyat from being left behind and called for stricter project management, especially for infrastructure efforts in poorer regions. BIMB Securities chief economist Imran Nurginias Ibrahim described the 13MP as a forward-looking roadmap centred on digitalisation, inclusivity and economic competitiveness. He said the targeted 4.5–5.5% GDP growth is consistent with Malaysia's potential and supports both recovery and reform, adding that 'RM430 billion in development spending and the aim to bring the fiscal deficit below 3% by 2030 show a strong intent to balance growth with sustainability'. Imran Nurginias welcomed the focus on digital transformation, AI and data infrastructure, along with social equity and education-employment alignment under the Madani Framework. However, he cautioned that targets such as tripling household income or increasing wage share of GDP are ambitious and would require productivity reforms and private sector buy-in. 'The absence of concrete tax reform measures creates uncertainty over how these plans will be sustainably funded.' Imran Nurginias warned of diluted focus, noting the 600 initiatives and 120 strategies listed, and urged the government to establish clear priorities and delivery mechanisms. 'Critical issues such as ageing population policy, long-term healthcare and institutional governance remain underdeveloped,' he said. Ultimately, he added, the 13MP's success hinges not on the number of strategies outlined but on bold, disciplined implementation supported by strong interagency coordination. 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The recent OPR cut to 2.75% may help ease the government's debt servicing burden, and Malaysia's bond market remains relatively stable due to the Employees Provident Fund's role as a statutory purchaser, he said. Loh praised the government's balance between public and private spending, especially its prioritisation of education and technical and vocational education and training (TVET), which is allocated RM133 billion under the plan. 'Deficit spending should build the economy's productive capacity – human capital included. TVET is crucial to unlocking potential idle capacity over the long term,' he said. Loh also called for political culture reform to complement institutional changes. 'Political culture is the software, and institutional reform is the hardware. Without both, changes won't stick,' he said. Loh said Malaysia must avoid the 'First World infrastructure, Third World mentality' trap and emulate Singapore's model of high standards in both execution and mindset. He added that the 13MP should have included green bonds to modernise fiscal policy and support sustainable growth. To that end, Loh proposed a Green Investment Bank under Bank Negara Malaysia to issue and trade green bonds, supporting a debt-driven sustainability market alongside Bursa Malaysia's Voluntary Carbon Market.
