Deciphering an economic report can consume hours and plenty of espresso, and so we have come up with a simple summary of the 12th Malaysia Plan for Millennials and Gen-Z.
A blueprint serving as a guideline for Malaysia’s development strategies, the 12th Malaysia Plan will be implemented from 2021 to 2025 to advance the country’s economy. Centred on “A Prosperous, Inclusive, Sustainable Malaysia”, the roadmap has taken on extra significance in the aftermath of the Covid-19 pandemic, which has devastated the country’s economy and, by extension, the people’s livelihoods and wellbeing.
Tabled by Prime Minister Datuk Seri Ismail Sabri Yaakob in a parliamentary sitting on September 27, the underlying objective of the 12th Malaysia Plan is to rebuild the economy and provide hope and confidence in the future of the country, especially the youth, with the goal that Malaysia will transition into a prosperous, high-income, inclusive, low-carbon, high-tech, sustainable and globally competitive nation.
The 12th Malaysia Plan addresses citizens of every social and economic class. As Millennials and Gen-Z, you are likely more concerned about how the ripples of the policy will affect your income and career trajectory, in addition to health and environmental concerns you might harbour.
The average monthly household income was RM7,160 when the 11th Malaysia Plan concluded. The target of the 12th Malaysia Plan is to raise this amount to RM10,065.
The global economy is expected to resume upward climbs forestalled by the pandemic. The Malaysian economy is projected to grow between 4.5% and 5.5% per annum, resulting in a higher GNI per capita of RM57,882 (US$14,842) in 2025.
The young generation can’t live without the Internet. While there may be more than a hint of hyperbole in that statement, the modern world is built on connectivity, and so digital connectivity will take into consideration inclusive development, aligning R&D towards commercialisation, wealth generation and economic growth.
In more tangible terms: 100% 4G coverage in populated areas, wider 5G coverage, 100% urban and rural households subscribing to the Internet, 2.5% gross expenditure on R&D to GDP, 10.5% contribution of e-Commerce to GDP and 25.5% contribution of the digital economy to GDP.
Sweeping sustainability practices
The focus on green growth will bridge sustainability and the economy. This includes enhancing energy sustainability and transforming the water sector to prioritise water security. It will concurrently address climate change, unsustainable consumption and production practices, loss of biodiversity, lack of coherence in the implementation of policies and inefficient water resources management, as the country moves towards a low-carbon nation.
Creating a circular economy
To balance between socioeconomic development and environmental sustainability, public and private sectors will be encouraged to adopt Sustainable Development Goals, and Environmental, Social, and Governance principles in business decisions. The circular economy while reducing pollution and waste generation creates green job opportunities – which leads us to below…
To construct a competitive economy, we need jobs that can satiate the demands of future challenges. Electrical and electronics, global services, aerospace, creative, tourism, halal, smart farming and biomass industries have been identified as the new catalysts of economic growth. Efforts will be channelled towards accelerating these industries to enable the production of high value-added activities and products, to attract quality investments and expand exports, and to contribute to the green economy agenda.
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