Latest news with #NIMP
BusinessToday
2 days ago
- Business
- BusinessToday
13th MP Poised To Deliver Inclusive Growth And Future-Proof Economy
As the government prepares to table the 13th Malaysia Plan (13MP) in Parliament tomorrow, expectations are high for a blueprint that will deliver sustainable economic growth, equitable income distribution, and a higher quality of life for Malaysians. Anchored around three core themes—Quality and Sustainable Living, High and Equitable Income, and a Sustainable Environment—the plan is expected to build on the momentum of its predecessor while addressing emerging structural challenges. Building on 12MP: Steady Growth Amid External Headwinds Between 2021 and 2025, Malaysia recorded an average GDP growth of 5.1%, at the lower end of the 12MP's target. While recovery from the pandemic initially spurred strong activity, global trade volatility and weaker exports pulled down overall growth. Sectors like construction (+19.7%) and agriculture (+4.0%) outperformed, but mining contracted (-4.5%), while manufacturing and services fell short of targets. Still, strong labour market dynamics helped maintain momentum. Employment rose to nearly 17 million workers, and household spending has become a key growth driver, now accounting for over 60% of GDP—a significant jump from 45% in the mid-2000s. 13MP Outlook: Keeping Growth Above 4% Looking ahead, MBSB Research expects 13MP to target GDP growth of 4.0% to 5.0% over the next five years, supported by: Infrastructure projects like MRT3 and the Johor-Singapore Special Economic Zone (JS-SEZ), Higher public development spending (estimated at RM80 billion annually), Private sector investments and strategic FDIs. The government's commitment to long-term policy continuity is also clear. Flagship blueprints such as the New Industrial Master Plan (NIMP) 2030, National Energy Transition Roadmap (NETR), and National Semiconductor Strategy (NSS) are set to play central roles. Wage Growth, Productivity, and Labour Market Reforms A core pillar of 13MP is expected to be labour market transformation, with emphasis on raising the Compensation of Employees (COE) to 40% of GDP. In 2023, COE rose to 33.1% (from 32.2% during the pandemic slump), supported by robust job growth and wage policies like: Living wage initiatives by GLCs (setting minimum monthly pay at RM3,100), The Progressive Wage Policy (PWP) to drive corporate wage reforms. However, underemployment and skill mismatch remain challenges. As of Q1 2025, 1.95 million Malaysians were underemployed in skill-related jobs. While skilled employment reached 30.2%, the government aims to hit 35% by 2025, aligned with national productivity goals under NIMP. Regional Growth, Aging Population, and the Silver Economy A clear regional shift is underway. East Malaysia is gaining ground through new infrastructure and energy transition projects, while southern Johor stands to benefit from cross-border trade via the JS-SEZ and the RTS link. At the same time, Malaysia's aging population is becoming an economic focus. The 13MP is expected to advance the silver economy, promoting growth in long-term care, retirement housing, medical tourism, and age-related financial services. This transition is critical as Malaysia heads toward becoming an aged nation by 2030, with the total fertility rate now at 1.6. Strategic Focus on Food Security and Export Diversification Food security will be a strategic thrust, with emphasis on: Smart farming and agri-tech to boost domestic crop yields, Reducing import dependence, Engaging youth in agriculture entrepreneurship. Export diversification is also expected to feature prominently in the plan, as Malaysia seeks to reduce reliance on traditional markets. Penetrating ASEAN, the Middle East, and Africa—especially for halal products—will be vital to future-proof trade resilience. Fiscal Reform and Responsible Spending Despite external uncertainties, the government is expected to maintain development spending around RM80 billion annually—roughly 3.3% of GDP—without aggressive austerity measures. The Fiscal Responsibility Act 2023 (FRA2023) will guide commitments to: Reduce fiscal deficit to -3% of GDP by 2030, Keep government debt below 60% of GDP, Optimise public-private partnerships (PPP) to ease fiscal pressure. Bottom Line: The 13MP marks a crucial opportunity for Malaysia to recalibrate its economy for long-term resilience. With strategic interventions across labour reform, regional development, digital transformation, and fiscal sustainability, the plan could usher in a new chapter of inclusive and future-ready growth for the nation. Related
The Sun
2 days ago
- Business
- The Sun
Malaysia's structural reforms key to economic resilience says BNM governor
KUALA LUMPUR: Malaysia's ongoing structural reforms to ensure long-term resilience are critical to defend the economy against global shocks, Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said during an exclusive interview with Bernama. He said Malaysia's foresight enabled the country to weather these shocks, such as the ravaging COVID-19 pandemic five years ago and impending challenges brought on by the United States' imposition of tariffs. He said Malaysia's endeavour to push for social equity and fiscal sustainability has also reinforced the economy and elevated it to a position of strength. This includes preparing a future-ready workforce and enhancing social protection systems. Malaysia's foresight in undertaking financial and economic reforms over the decades has helped strengthen the nation's economic fundamentals, enabling the country to weather uncertainties. 'Where we are today, the position of strength that we have, our ability to weather the pandemic and tariff developments, comes from our previous structural reforms. That is why we need to really continue on this path,' he said. Abdul Rasheed emphasised that the government's commitment to reform, particularly through rebuilding fiscal space, is important for the government to support the economy effectively during challenging periods. He also commended the government's implementation of key national strategies, including the National Investment Aspirations (NIA), New Industrial Master Plan 2030 (NIMP), National Energy Transition Roadmap (NETR) and National Semiconductor Strategy (NSS), as initiatives which attracted quality investments and generated high-paying job opportunities. Key to this, he said, are policies to attract high-quality investments that increase economic complexity, create high-value jobs, extend domestic linkages, develop economic clusters and improve inclusivity, in line with the NIA. As evidence, Malaysia has recorded a historic high of approved investments amounting to RM378.5 billion in 2024, he said. 'We want high-quality investments that create high-quality jobs, high-income jobs and have strong domestic linkages. 'That also creates complexity in the economy. This is what Malaysia needs, and the plans have all these elements,' he said. He added that it is also important for Malaysia to embark on the next phase of reforms. Beyond creating new, higher-paying jobs, the central bank governor said Malaysia needs to create a more agile and future-ready workforce through labour market reforms, while enhancing the nation's social protection systems. 'The country is working hard to attract quality investments, which will in turn create high-quality and high-income jobs. Our workforce must be ready for this, and so will need to be re-skilled and up-skilled. 'The education system must evolve in tandem to better prepare Malaysians for an increasingly digital and knowledge-driven economy,' he said. On social security, Abdul Rasheed stressed the need to improve the design and targeting of assistance programmes to ensure inclusivity, maximise impact, and ensure that objectives are being met. He highlighted that funding for these education, healthcare, social protection and other initiatives can be further strengthened by channelling savings from fiscal consolidation efforts, including rationalising subsidies. He also said that the government remains committed to reforms, and at the same time, acknowledges the challenges faced by certain segments of the rakyat. These include facing ongoing cost-of-living pressure. He said that targeted rollout of measures, alongside supportive measures, can help ease the transition. On July 23, Prime Minister Datuk Seri Anwar Ibrahim announced a cost-of-living relief package, which includes a one-off RM100 SARA cash aid, a reduction in the RON95 fuel price, toll hike postponements and an expanded Rahmah Madani Sales allocation. - Bernama
Malay Mail
2 days ago
- Business
- Malay Mail
Structural reforms key to shielding Malaysia from future shocks, says Bank Negara governor
KUALA LUMPUR, July 30 — Malaysia's ongoing structural reforms to ensure long-term resilience are critical to defend the economy against global shocks, Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said during an exclusive interview with Bernama. He said Malaysia's foresight enabled the country to weather these shocks, such as the ravaging Covid-19 pandemic five years ago and impending challenges brought on by the United States' imposition of tariffs. He said Malaysia's endeavour to push for social equity and fiscal sustainability has also reinforced the economy and elevated it to a position of strength. This includes preparing a future-ready workforce and enhancing social protection systems. Malaysia's foresight in undertaking financial and economic reforms over the decades has helped strengthen the nation's economic fundamentals, enabling the country to weather uncertainties. 'Where we are today, the position of strength that we have, our ability to weather the pandemic and tariff developments, comes from our previous structural reforms. That is why we need to really continue on this path,' he said. Abdul Rasheed emphasised that the government's commitment to reform, particularly through rebuilding fiscal space, is important for the government to support the economy effectively during challenging periods. He also commended the government's implementation of key national strategies, including the National Investment Aspirations (NIA), New Industrial Master Plan 2030 (NIMP), National Energy Transition Roadmap (NETR) and National Semiconductor Strategy (NSS), as initiatives which attracted quality investments and generated high-paying job opportunities. Key to this, he said, are policies to attract high-quality investments that increase economic complexity, create high-value jobs, extend domestic linkages, develop economic clusters and improve inclusivity, in line with the NIA. As evidence, Malaysia has recorded a historic high of approved investments amounting to RM378.5 billion in 2024, he said. 'We want high-quality investments that create high-quality jobs, high-income jobs and have strong domestic linkages. 'That also creates complexity in the economy. This is what Malaysia needs, and the plans have all these elements,' he said. He added that it is also important for Malaysia to embark on the next phase of reforms. Beyond creating new, higher-paying jobs, the central bank governor said Malaysia needs to create a more agile and future-ready workforce through labour market reforms, while enhancing the nation's social protection systems. 'The country is working hard to attract quality investments, which will in turn create high-quality and high-income jobs. Our workforce must be ready for this, and so will need to be re-skilled and up-skilled. 'The education system must evolve in tandem to better prepare Malaysians for an increasingly digital and knowledge-driven economy,' he said. On social security, Abdul Rasheed stressed the need to improve the design and targeting of assistance programmes to ensure inclusivity, maximise impact, and ensure that objectives are being met. He highlighted that funding for these education, healthcare, social protection and other initiatives can be further strengthened by channelling savings from fiscal consolidation efforts, including rationalising subsidies. He also said that the government remains committed to reforms, and at the same time, acknowledges the challenges faced by certain segments of the rakyat. These include facing ongoing cost-of-living pressure. He said that targeted rollout of measures, alongside supportive measures, can help ease the transition. On July 23, Prime Minister Datuk Seri Anwar Ibrahim announced a cost-of-living relief package, which includes a one-off RM100 SARA cash aid, a reduction in the RON95 fuel price, toll hike postponements and an expanded Rahmah Madani Sales allocation. — Bernama
Barnama
2 days ago
- Business
- Barnama
Structural Reforms Critical For Long-term Economic Resilience
BUSINESS Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour during the press conference on the first quarter of 2025 (1Q 2025) at Sasana Kijang, today. By & Karina Imran KUALA LUMPUR, July 30 (Bernama) -- Malaysia's ongoing structural reforms to ensure long-term resilience are critical to defend the economy against global shocks, Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said during an exclusive interview with Bernama. He said Malaysia's foresight enabled the country to weather these shocks, such as the ravaging COVID-19 pandemic five years ago and impending challenges brought on by the United States' imposition of tariffs. He said Malaysia's endeavour to push for social equity and fiscal sustainability has also reinforced the economy and elevated it to a position of strength. This includes preparing a future-ready workforce and enhancing social protection systems. Malaysia's foresight in undertaking financial and economic reforms over the decades has helped strengthen the nation's economic fundamentals, enabling the country to weather uncertainties. 'Where we are today, the position of strength that we have, our ability to weather the pandemic and tariff developments, comes from our previous structural reforms. That is why we need to really continue on this path,' he said. Abdul Rasheed emphasised that the government's commitment to reform, particularly through rebuilding fiscal space, is important for the government to support the economy effectively during challenging periods. He also commended the government's implementation of key national strategies, including the National Investment Aspirations (NIA), New Industrial Master Plan 2030 (NIMP), National Energy Transition Roadmap (NETR) and National Semiconductor Strategy (NSS), as initiatives which attracted quality investments and generated high-paying job opportunities. Key to this, he said, are policies to attract high-quality investments that increase economic complexity, create high-value jobs, extend domestic linkages, develop economic clusters and improve inclusivity, in line with the NIA.
New Straits Times
2 days ago
- Business
- New Straits Times
BNM Governor: Reforms crucial to shield Malaysia from global shocks
KUALA LUMPUR: Malaysia's ongoing structural reforms to ensure long-term resilience are critical to defend the economy against global shocks, Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said. During an exclusive interview with Bernama, he said Malaysia's foresight enabled the country to weather these shocks, such as the ravaging COVID-19 pandemic five years ago and impending challenges brought on by the United States' imposition of tariffs. He said Malaysia's endeavour to push for social equity and fiscal sustainability has also reinforced the economy and elevated it to a position of strength. This includes preparing a future-ready workforce and enhancing social protection systems. Malaysia's foresight in undertaking financial and economic reforms over the decades has helped strengthen the nation's economic fundamentals, enabling the country to weather uncertainties. "Where we are today, the position of strength that we have, our ability to weather the pandemic and tariff developments, comes from our previous structural reforms. That is why we need to really continue on this path," he said. Abdul Rasheed emphasised that the government's commitment to reform, particularly through rebuilding fiscal space, is important for the government to support the economy effectively during challenging periods. He also commended the government's implementation of key national strategies, including the National Investment Aspirations (NIA), New Industrial Master Plan 2030 (NIMP), National Energy Transition Roadmap (NETR) and National Semiconductor Strategy (NSS), as initiatives which attracted quality investments and generated high-paying job opportunities. Key to this, he said, are policies to attract high-quality investments that increase economic complexity, create high-value jobs, extend domestic linkages, develop economic clusters and improve inclusivity, in line with the NIA. As evidence, Malaysia has recorded a historic high of approved investments amounting to RM378.5 billion in 2024, he said. "We want high-quality investments that create high-quality jobs, high-income jobs and have strong domestic linkages. "That also creates complexity in the economy. This is what Malaysia needs, and the plans have all these elements," he said. He added that it is also important for Malaysia to embark on the next phase of reforms. Beyond creating new, higher-paying jobs, the central bank governor said Malaysia needs to create a more agile and future-ready workforce through labour market reforms, while enhancing the nation's social protection systems. "The country is working hard to attract quality investments, which will in turn create high-quality and high-income jobs. Our workforce must be ready for this, and so will need to be re-skilled and up-skilled. "The education system must evolve in tandem to better prepare Malaysians for an increasingly digital and knowledge-driven economy," he said. On social security, Abdul Rasheed stressed the need to improve the design and targeting of assistance programmes to ensure inclusivity, maximise impact, and ensure that objectives are being met. He highlighted that funding for these education, healthcare, social protection and other initiatives can be further strengthened by channelling savings from fiscal consolidation efforts, including rationalising subsidies. He also said that the government remains committed to reforms, and at the same time, acknowledges the challenges faced by certain segments of the rakyat. These include facing ongoing cost-of-living pressure. He said that targeted rollout of measures, alongside supportive measures, can help ease the transition. On July 23, Prime Minister Datuk Seri Anwar Ibrahim announced a cost-of-living relief package, which includes a one-off RM100 SARA cash aid, a reduction in the RON95 fuel price, toll hike postponements and an expanded Rahmah Madani Sales allocation.
