Twelfth Malaysia Plan Catalyst for Sustainable Economic Growth

The Twelfth Malaysia Plan (12MP) is key to sustainable economic growth for Malaysia after efforts were being inhibited by the COVID-19 pandemic.

The national development agenda presented by the Malaysian Prime Minister Datuk Seri Ismail Sabri Yaakob were said to be based on comprehensive, long-term strategic goals to propel the economy to greater heights, encourage rapid growth and improve the overall wellbeing of Malaysians. 12MP is an ongoing effort of The Honourable Tan Sri Dato’ Haji Mahiaddin bin Haji Mohd Yassin, with holistic participation from various parties.

The allocation of RM400 billion reflects the government's commitment to meet the challenges of the dynamic global economy. The 12MP projects an average annual private investment of RM258 billion. To achieve this target, the Ministry of International Trade and Industry (MITI) will strengthen the country's economic fundamentals by promoting a transparent and business-friendly trade and investment environment. The Government will ratify the Regional Comprehensive Economic Cooperation Agreement (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which will provide wider market access to local industries.

Furthermore, the 12MP also emphasises the development of growing sectors for the betterment of the national economy, in line with MITI's efforts including the development of the Fourth Industrial Revolution (4IR), environmental, social and governance (ESG) elements, Halal and Aerospace industries. This conforms to the National Investment Aspirations Policy (NIA) to attract high-impact and high-tech foreign investors (FDI) to enhance Malaysia's competitiveness and attractiveness as a regional investment hub.

The Prime Minister's assertion to make Malaysia a carbon-neutral country as early as 2050 is in line with the NIA's thrust to accelerate green growth by placing more emphasis on ESG. Following this, MITI prioritises efforts to strengthen the ecosystem for the development of Energy Efficient Vehicles (EEV) including Electric Vehicles (EV). This includes manufacturing critical components, setting standards and promoting research capability to develop local technologies.

To ensure the growth of an inclusive new sector, micro, small and medium enterprises (MSMEs) are also encouraged to adopt automation, technology and digitalisation for business sustainability. As the MSMEs are the backbone of the national economy, the 12MP also aims to increase the sector's GDP contribution to 45%. 

The 12MP aims to increase the MSMEs sector GDP contribution by 45%

MITI provides various means aimed at assisting MSMEs such as easy financing schemes through MIDF. The empowerment of MSMEs through digitisation will inject dynamism into the entire economic chain, especially in rural areas in line with the Shared Prosperity Vision 2030 to make Malaysia a sustainable development country with fair, equitable and inclusive economic distribution.

While the investment and trade landscape remains challenging and competitive, I am confident that the 12MP is well on track, supported by the National Recovery Plan (VAT) which has outlined a number of proactive measures to drive the economic recovery agenda and ensure sustainable growth.

As Malaysia aspires to be carbon neutral by 2050, MITI will put more emphasis on the development of Energy Efficient Vehicles (EEV) particularly Electric Vehicles (EV). This will promote the manufacturing activities of critical EV components and build research capabilities among local technology developers too.