13MP Reflects Holistic, Equitable, Dynamic Approach - Economists

By Ahmad Erwan Othman

KUALA LUMPUR, Aug 1 (Bernama) -- The 13th Malaysia Plan (13MP) is a comprehensive and resilient national development document that addresses current socio-economic needs, according to economists.

Unlike the 12MP, which focused more on post-COVID-19 pandemic recovery, the 13MP drives national development more strategically through the implementation of people-centric polices, empowerment of digital economy and environmental sustainability.

Malaysia University of Science and Technology (MUST) economic expert Prof Emeritus Dr Barjoyai Bardai said the 13MP has received positive feedback from various parties, including academia, who view the plan as being centred on the well-being of the people and balanced economic development.

"It (13MP) encompasses a good approach, as well as touches on key issues, including high income, environmental sustainability and quality of life for the people.

"More importantly, the 13MP introduces a transparent performance monitoring system and mandates annual reporting to the people. This is a huge leap in ensuring every target does not just remain on paper,” he said when contacted by Bernama today.

The five-year plan for the 2026-2030 period is outlined as the final phase in the framework of the 2021-2030 Malaysian long-term development plan under the Shared Prosperity Vision 2030 (SPV2030).

This emphasises several key sectors, including the social economy, development and education, food security, creative industry transformation, health, the green economy and new technologies.

Barjoyai said one crucial aspect that needs to be given comprehensive emphasis is the need to increase the contribution of micro, small and medium enterprises (MSMEs) to the Gross Domestic Product (GDP).

"The MSMEs currently employ over 65 per cent of the country's workforce but contribute less than 35 per cent to the GDP. We need to increase this contribution to at least 50 or 60 per cent for a more equitable balance between large and small industries,” he said.

An increased contribution from the MSMEs in the national economy, he said, would not only stimulate an inclusive economic growth, but also help address issues of income inequality as the sector employs millions of workers with medium and low salaries.

An economist from the Putra Business School of Universiti Putra Malaysia (UPM), Assoc Prof Dr Ahmed Razman Abdul Latiff, said one of the main differences between the 13MP and the previous plan is the presence of a more dynamic and responsive monitoring structure.

"The 13MP outlines the establishment of a National Development Committee and periodic reporting to the National Economic Action Council (MTEN). This is to ensure smooth implementation and achievement of all key performance indicators (KPIs) and avoid delays experienced under the 12MP,” he said.

Among the significant improvements under the 13MP are the implementation of a ’Whole of Nation’ approach, which integrates collaboration between the government, private sector and society, a more dynamic monitoring mechanism, in addition to emphasising the transition to a high-income economy.

The 13MP, according to him, focuses on high-impact sectors, such as renewable energy, green technology, vehicle electrification, as well as the creative and innovative economy.

Ahmed Razman also welcomed the emphasis on fiscal balance outlined in the 13MP, without neglecting economic growth and efforts to reduce the annual fiscal deficit, as well as allocate development more equitably across regions to reduce the socio-economic disparities between states.

Meanwhile, Assoc Prof Dr Mustazar Mansur, the senior lecturer at the Faculty of Economics and Management at Universiti Kebangsaan Malaysia (UKM), described the 13MP as a continuation of the 12MP mid-term review, which introduced 17 major shifts towards policy reform.

The 13MP, he said, is inclusive, emphasising two main aspects - the effectiveness of public policy and the efficiency of its implementation - in addition to combining the strengths of the public and private sectors to realise large-scale projects like public transportation and infrastructure.

"The government cannot act on its own. Collaboration with the private sector is important for implementing infrastructure, transport systems and social services projects,” he said. 

He added that the 13MP's approach also takes into account the balance between supply and demand in the economy, including the need for skilled human capital, housing, healthcare and social well-being to enable Malaysia to be better prepared to face global challenges. 

"The government is also seen as being prepared to carry out targeted interventions if there are changes to the current landscape, making the 13MP flexible and adaptive to new challenges,” said Mustazar, who is also the deputy executive director (Facilities and Digital Management) at the UKM Centre for Income Generation Management (JANA@UKM).

-- BERNAMA