KUALA LUMPUR: The government has allocated a total of RM400 billion under the 12th Malaysia Plan (12MP) to fund new and existing development projects, Prime Minister Datuk Seri Ismail Sabri Yaakob said at the Dewan Rakyat today.
“The government received many suggestions from the public, MPs and the state governments. However, due to the enormous need to protect lives and livelihoods in 2020 and 2021, space to implement development projects is very limited and this situation is expected to continue until next year,“ he said.
“Therefore, the government’s development allocation is more focused on existing projects,“ he said when announcing the 12MP (2021-2025), titled “A Prosperous, Inclusive, Sustainable Malaysia”.
It encompasses themes including Resetting the Economy, Strengthening Security, Wellbeing and Inclusivity as well as Advancing Sustainability.
Ismail Sabri pointed out that the pandemic has affected the government’s financial position.
Under the 11th Malaysia Plan, the government spent a total of RM248.5 billion for development purposes.
Of this amount, 58% went to the economic sector, 26% for social, 11% for security and defence, while 5% was for general administration.
Ismail Sabri highlighted that the government’s financial position is expected to improve in 2023 when the economy is more stable and by 2025, the country will be a high income country and will have a better quality of life.
He pointed out that the pandemic has affected the government’s financial position.
“In 2020, the fiscal deficit widened to 6.2% of Gross Domestic Product (GDP) and the total statutory debt of the Federal Government stands at 57.9% of GDP,“ he said.
“Under the 12MP, a total of eight aid and economic stimulus packages that began on March 27, 2020 have succeeded in stabilising the country’s economy as GDP increased by 16.1% in the second quarter of 2021 after contracting in the previous fourth quarter,“ he said.
The aim under 12MP among others is to achieve the targeted GDP growth of 4.5 to 5.5% per annum in the period 2021-2025 and the average household income is estimated at about RM10,000 per month in 2025.
The government has also agreed to approve several key programmes and projects to be implemented to boost the growth of strategic sectors and industries.
Among them are investment loan funds for research and development in the fields of aerospace, electrical and electronics; establishment of centres of excellence for Future Industry, intellectual property fund and easy financing scheme for digitisation and adoption of technology to support local companies in transitioning to advanced technology.
“With the implementation of these plans, I believe we will be able to achieve the average growth target of the services sector of 5.2%, manufacturing 5.7%, agriculture 3.8%, mining and quarrying 2.6% and construction of 4.2% during the 12th MP period,“ he said.
“The tourism sector, most affected by the pandemic, is expected to recover with a growth target of 3.8%, micro, small and medium enterprises (SMEs) are expected to contribute 45% to GDP, and 25% of the total exports in 2025,“ he said.
