Wednesday, April 19, 2017

Eleventh Malaysia Plan to Increase Income Per Capita

Malaysia’s economy is now in transition. Confronted by the pressures of a contracting globalization and the threat of being caught in the middle-income trap, Malaysian Government unveiled the New Economic Model (NEM) that was needed to transform Malaysia economy by 2020.

One of Malaysian Government initiatives is the Eleventh Malaysia Plan for 2016 to 2020 (also known as Rancangan Malaysia ke-11). The plan sets target and define some economics policies to reach the ultimate goal to make Malaysia a high income economy by 2020. The key target for the whole plan is for Malaysia to reach the advanced economy status, that is to say a national income per capita above USD 15,000.

Image result for 11th malaysia plan summary Enhancing inclusiveness towards an equitable society 

The six strategies thrusts in Eleventh Malaysia Plan.

Enhancing inclusiveness towards an equitable society
·         To enable all citizens – regardless of gender, ethnicity, socio-economic level, and geographic location – to participate in and benefit from the country’s prosperity

Improving wellbeing for all
·         To enhancing productivity and mobility, while simultaneously strengthening social cohesion and national unity..

Accelerating human capital development for an advanced nation
·         Human capital development is a critical enabler for driving and sustaining Malaysia’s economic growth and supporting the transition of all economic sectors towards knowledge-intensive activities.
·         An efficient and effective labour market is also necessary to attract investments into Malaysia and enable everyone to participate in and enjoy the benefits of economic growth.

Pursuing green growth for sustainability and resilience
·         To pursue development in a more sustainable manner from the start, rather than a more conventional and costly model of ‘grow first, clean up later’.
·         Will ensure that Malaysia’s precious environment and natural endowment are conserved and protected for present and future generations.

Strengthening infrastructure to support economic expansion
·         Infrastructure development ensures that the rakyat have access to essential amenities and services such as transport, communications, electricity and clean water.
·         An efficient infrastructure lowers the cost of doing business, which in turn improves national competitiveness and productivity.

Re-engineering economic growth for greater prosperity
·         To ensure that the aspiration of becoming an advanced economy is attained.
·         A strong and broad-based economy, producing high-value goods and services, will generate the high-paying jobs associated with an advanced nation.
·         The economy must be placed on a solid foundation to withstand external shocks and generate undisrupted prosperity for the people.

Government also identified another six "Game Changers" that will change the country's economic growth and enable it to reach the economic goals. the six "GameChangers" are:

1.      Unlocking the potential of productivity
Broad-based initiatives will be developed and tailored for each sector with targets set and monitored. At the national level, productivity-linked incentives will be introduced and regulatory reforms will be accelerated. At the industry level, industry champions will spearhead industry-specific productivity initiatives, while at the enterprise level, incentives and upskilling programmes will be provided.

2.      Uplifting the B40 households (bottom 40% household income group) towards a middle-class society
Implement strategies to raise the income and wealth ownership of the B40 households, address the increasing cost of living, and strengthen delivery mechanisms for supporting B40 households. The Government will also introduce the Multidimensional Poverty Index (MPI) to ensure that vulnerability and quality of life is measured in addition to income.

3.      Enabling industry-led Technical and Vocational Education and Training (TVET)
Encourage industry-led interventions and programmes as they are the stakeholders best placed to ensure that the supply of graduates meet their requirements.

4.      Embarking on green growth
Achieving these aspirations requires a fundamental shift away from a ‘grow first, clean up later’ development model towards one that views resilient, low-carbon, resource-efficient, and socially inclusive development.

5.      Translating innovation to wealth
Focus on strengthening relational capital by improving collaboration among all stakeholders. Innovation will be targeted at both the enterprise and societal levels, instead of previous efforts which focused primarily on national-level initiatives.

6.      Investing in competitive cities
Creating density to increase efficiency; expanding transit-oriented development to enhance mobility; and strengthening knowledge-based clusters to facilitate agglomeration and innovation. These master plans will take into account each city’s competitive advantages, and will be formulated by the respective local authorities in consultation with the private sector and civil society.

As for the conclusion, we can see that there’s a lot of government plans and  efforts to increase income per capita in Malaysia. We just hope all of the plans will be successful in order to increase our living standard. Thank you for reading my blog!

No comments:

Post a Comment