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The Star
2 hours ago
- Business
- The Star
Execution key for 13MP growth
KUALA LUMPUR: Economists are generally confident that the government can attain its 13th Malaysia Plan (13MP) goal of sustaining gross domestic product (GDP) between 4.5% and 5.5%, despite cautioning that banana skins lie ahead. At the parliamentary tabling of the 13MP yesterday, Prime Minister Datuk Seri Anwar Ibrahim revealed his administration's growth target up until 2030. The Prime Minister also pointed out the country is estimated to register a GDP growth of 5% on average between 2021 and 2025, the median value of the targeted growth range over the next five years. At the same, he is expecting gross exports to grow by 5.8% annually amid broader trade opportunities, while reducing the government's fiscal deficit to under 3% of GDP, after having lowered it from 5.5% in 2022 to 4.1% as of last year. 'The country's gross national income (GNI) per capita is forecast to increase to RM77,200 and is expected to exceed the threshold of a high income nation,' said Anwar, before commenting that the services, manufacturing, and construction sector remains as the main source of growth contributed by a shift to a value-creation based economy. Inflation is projected to remain stable between 2% and 3% annually. Anwar said Malaysia's economy grew at an average of 5.2% annually from 2021 to 2024, outpacing the global economic trend during the same period. The prime minister observed that the overall approved investments between 2021 to 2024 had achieved RM1.29 trillion, increasing at a rate of 23.1% each year. The total approved investments last year was the highest in history at RM384bil. Meanwhile, an economics research analyst from a foreign research house calls the GDP growth target 'realistic but ambitious', given both domestic strengths and external headwinds. 'The plan builds on a strong base, judging from Malaysia's economic performance over the past five years, despite global economic moderation. 'The continued focus on private-sector-led demand, high-value sectors, and digital transformation, particularly artificial intelligence (AI) adoption, reflects a deliberate strategy to deepen economic complexity and productivity—both crucial for sustaining mid-to-high growth,' he told StarBiz. On the other hand, he commented that achieving growth towards the upper end of the target would depend heavily on a number of factors, including private sector buy-in, in the context of the projected RM61bil in public-private partnership (PPP) participation. Anwar had estimated in his speech that an investment value of RM611bil is necessary to ensure the success of 13MP, as he called for a share of RM61bil from the private sector. On top of that, the analyst said global trade environment, political and policy stability, as well as effective execution of public investment plans including the RM430bil allocated for development spending, will also be strong influencing factors. Economist Geoffrey Williams concurred that the growth target is ambitious, as it was only days ago that Bank Negara downgraded its own 2025 GDP growth projection to between 4% and 4.8%. 'The underlying growth potential is more like 4% to 5%. However, there is no special concern about inflation in Malaysia, and recent price pressures were due to external factors. At present, inflation is steady and should continue to be stable,' he opined. Anwar said the government's commitment to fiscal consolidation is reflected in the reduction of new debt to RM76.8bil in 2024, down from RM99.4bil in 2022. 'The framework of the 13MP aims to restructure the economy, and no longer depend only on producing basic products like agriculture, industrial and services. Economic engagement needs to be rejuvenated by a shift to value creation in all sectors,' he added. Furthermore, he noted that fiscal reformation will be continued to ensure financial assistance will be channelled to the needy groups, even as the government continues to prioritise cost efficiency and value-for-money in all public infrastructure projects to optimise returns to the rakyat. On the government's other major objective of raising GNI per capita, the analyst from the foreign research firm sees clear challenges in accomplishing the goal while keeping inflation in check to within 2% and 3%. 'The first challenge is wage growth versus productivity. To sustainably raise GNI, Malaysia needs not just higher wages, but higher productivity per worker —especially in the services sector, which remains fragmented and uneven in quality. 'If wage hikes outpace productivity, it could fuel inflation,' he said. Secondly, he reckoned that food and energy security remain structural weak spots, as supply-side disruptions or fuel subsidy rollbacks could reignite inflation, affecting real income gains. The analyst said: 'While headline inflation is currently low, being 1.1% in June 2025, that may not reflect actual cost-of-living pressures in housing, transport, and food.' Additionally, he explained that human capital and skills mismatch could limit the country's ability to transition to high-value sectors, because without targeted upskilling or industry-academia alignment, GNI growth could stall, and structural unemployment risks may rise. To counter these possibilities, he suggested Putrajaya could double down on upskilling programmes linked to high-growth sectors such as semiconductors and AI, and maintain subsidy rationalisation with a social safety net to prevent inflation shocks from disproportionately hitting the B40 and M40 'Moreover, the Madani administration could also promote research and development incentives and innovation funding to spur productivity-led growth, not just capital accumulation,' he said. Separately, Anwar said the government is also targeting a contribution of 50% to GDP for micro, small and medium enterprises (MSMEs) by 2030, underpinned by the creation of a more progressive MSME ecosystem. This will include the scaling up of MSMEs by the support and active involvement of government-linked companies, through capacity development programmes, digitalisation and operation improvement. 'Among the initiatives that have been put into place in line with this objective are the Strategic Co-Investment Fund, the strengthening of working capital SME Capacity and Capability Enhancement Scheme,' he said.
New Straits Times
16 hours ago
- Business
- New Straits Times
13MP: Malaysia eyes up to 5.5pct GDP, 6.0pct private investment growths annually by 2030
KUALA LUMPUR: The 13th Malaysia Plan (13MP), covering 2026 to 2030, has set ambitious yet attainable targets aimed at boosting economic growth, raising household income and ensuring inclusive development across sectors. 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.
The Sun
a day ago
- Business
- The Sun
15,000 Sarawak students receive special financial aid for higher education
KUCHING: A total of 15,000 applications for the Special Financial Aid for Sarawak Students in Institutions of Higher Learning (IPTs) have been approved, with some recipients already receiving the assistance. Deputy Prime Minister Datuk Seri Fadillah Yusof confirmed the approvals in a Facebook post today, stating that payments will be distributed in stages to remaining beneficiaries. The aid programme, launched by Sarawak Premier Tan Sri Abang Johari Tun Openg in Kuala Lumpur, is set to benefit 42,000 students with an allocation of RM50.5 million. Fadillah highlighted that the initiative provides RM1,200 in pocket money to all Sarawakian students in IPTs, regardless of family income. 'This reflects the Sarawak Government's commitment to ensuring no student is left behind due to financial constraints,' he said. The aid aims to ease parents' financial burdens while helping students manage daily expenses. In addition to the pocket money assistance, the state government is rolling out other support measures, including free laptops and book vouchers for students from low-income families. The Sarawak Graduates Return Initiative (IGPS), offering a RM300 flight ticket subsidy twice a year, is also available. Fadillah expressed gratitude to the Sarawak Premier for approving the aid, emphasising its role in inclusive development. 'These initiatives stem from Sarawak's sustainable economic policy, translating state revenue into direct welfare benefits,' he said. - Bernama
Borneo Post
2 days ago
- Business
- Borneo Post
Sarawak rolls out special cash aid for tertiary students, RM50.4 mln allocated
Abang Johari (fourth left) shows the S Pay Global app on his phone to some Sarawakian students attending the ceremony in Kuala Lumpur today. – Photo by Sarawak Public Communications Unit KUCHING (July 30): The Sarawak government has allocated RM50.4 million for the Special Financial Aid (BKK) to support Sarawakian students pursuing higher education during its launch in Kuala Lumpur today. Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg during the launch announced that each eligible student will receive RM1,200, disbursed in two phases of RM600 per semester via the S Pay Global platform. Open to all Sarawakian students regardless of household income, the BKK aims to ease the financial burden on families and help students focus on their academic journey. The aid is expected to benefit around 42,000 Sarawakian students currently enrolled in institutions of higher learning nationwide. 'The Sarawak government under Gabungan Parti Sarawak (GPS) has delivered on its promise. This shows that we care, not only about the students as Sarawakians, but because we are a government that is genuinely concerned about the future of our state,' said Abang Johari. Also at the ceremony here were Deputy Prime Minister Dato Sri Fadillah Yusof; Sarawak Minister for Education, Innovation and Talent Development, Dato Sri Roland Sagah Wee Inn; Works Minister Dato Sri Alexander Nanta Linggi; Sarawak State Secretary Datuk Amar Mohamad Abu Bakar Marzuki; Sarawak Attorney-General Dato Sri Saferi Ali; and other dignitaries. The Premier described the BKK as part of a larger strategy to empower youth through education and enhance Sarawak's global economic competitiveness. 'This assistance is provided regardless of students' backgrounds. We want to cultivate a generation that is knowledgeable, competitive and ready to seize opportunities not just within Sarawak, but internationally,' he said. Abang Johari also stressed the importance of preparing Sarawak's youth to become globally competent professionals in an increasingly borderless economic landscape. 'This is a strategic form of assistance. We have bright Sarawakian students who are intellectually capable and can pursue studies that are relevant to current global economic developments,' he said. He further noted that application numbers are expected to increase and reaffirmed the state's commitment to introducing more student-focused initiatives in the future. Introduced as part of Abang Johari's winding-up speech during the Sarawak State Legislative Assembly sitting in November last year, the assistance was initially targeted at students from households with a per capita income of RM1,500 or below. However, the eligibility has since been broadened to include all full-time diploma and bachelor's degree students with Sarawakian status, regardless of socioeconomic background. Meanwhile, Sarawak Minister for Education, Innovation and Talent Development, Dato Sri Roland Sagah Wee Inn, in his speech said the aid is designed not only to ease students' financial pressures but also to motivate them to excel in their studies. A second application phase will open in September, catering to newly enrolled students and those who missed the initial round. Abang Johari BKK financial aid tertiary education
GMA Network
2 days ago
- Business
- GMA Network
Bill seeking P1,200 national minimum wage refiled in House
A bill mandating a P1,200 national daily minimum wage was refiled in the House of Representatives Wednesday. In filing House Bill 2599, Makabayan bloc lawmakers Antonio Tinio of ACT Teachers party-list and Renee Co of Kabataan party-list said the regional wage board system in the last 30 years only resulted in poverty-level wages for workers. They proposed the abolition of the Regional Tripartite Wages and Productivity Board by amending Article 99 of the Labor Code and replace it the National Wages and Productivity Board. 'Filipino workers have weighed in on the regionalized wage regime through 36-year history and found it a big failure. They are now demanding that it be scrapped and for the Philippines to return to the regime of uniform national minimum wage that is based on the family living wage,' the lawmakers said in their explanatory note. The authors then cited an IBON Foundation study showing that the amount needed to raise the current minimum wage to P1,200 living wage only requires 29.7% to 49.1% of the profits amassed by private employers, making it feasible if only employers are willing to cut down on profits. 'The surge in the prices of oil and other basic goods and services in the last several years likewise has devoured, according to some estimates, the wages of our workers by 25-30%. Workers are now groaning under the crushing effect of heavy taxes and high prices on their wages and income,' the lawmakers said. 'It is therefore imperative for the State to ensure that what the Constitution-the workers' just share in the fruits of production and the workers' right to living wage-is fulfilled in pursuit of the equitable distribution of income and wealth towards economic and social development. The State must recognize its justice and necessity given the workers' contribution to society and the economy amid all the hardships,' they added. Violators will face several penalties, including a fine of 100% of the total wage increment due their employees multiplied by the number of unpaid working days, plus P50,000 moral damages to each employee, and suspension of business permit.—with a report from Tina Panganiban Perez/AOL, GMA Integrated News
