KUALA LUMPUR: The 11th Malaysia Plan (11MP) 2016-2020, which is to be tabled by Prime Minister Datuk Seri Najib Razak in Parliament today, is expected to outline the final road map for the current government to steer the country towards achieving Vision 2020.
It is apparent that the 11MP will pay much attention to the bottom 40% of Malaysians in terms of income due to tougher economic conditions, with a slowdown in consumer spending due to the implementation of the goods and services tax (GST) as well as falling commodity prices.
Measures such as the targeted subsidy Bantuan Rakyat 1Malaysia, which was increased from RM650 to RM950 in the 2015 budget and affordable housing schemes Perbadanan PR1MA Malaysia and Syarikat Perumahan Negara Bhd are expected to be continued in the 11MP to improve the livelihoods of the bottom 40%.
The emphasis on education as a driver to improve the livelihoods of the low-income group is also expected to be highlighted in 11MP, as the prime minister had previously said that in Malaysia, every student can go to university as long as they have the will power to succeed. He had said that the cost of higher education at public institutions is 90% funded by the government, and students have only to come up with 10%. And those who cannot afford that 10% can take loans from the National Higher Education Fund (PTPTN).
Among the key areas expected to be addressed in the 11MP in the final jigsaw piece in becoming a fully developed nation is the issue of gross national income (GNI) per capita.
As per data released by the World Bank for 2015, high-income economies are those with a GNI per capita of US$12,746 (RM46,109) or more, and considering that Malaysia is still short of this with a GNI per capita of US$10,426 in 2014, achieving the GNI per capita of a high-income nation is expected to be highlighted in the 11MP.
Last year’s budget was considered a people-centric one, likewise the 11MP is expected to address the needs of the people, as Najib has hinted that inclusiveness and sustainability will be the core values of the 11MP.
In the spirit of economic inclusiveness, issues such as the minimum wage, job creation, education, and improvement in the living standards of the lower-income groups are expected to be addressed.
Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar had said in an interview with The Edge weekly last year that the government is conscious of criticism that the country’s economic progress is not being felt by the people, particularly those in the bottom 40% of households.
Under the 10MP, the government had shifted its focus from absolute to relative poverty by focusing on the bottom 40% and special target groups.
During the 10MP, development expenditure of RM230 billion was set aside, which was the same amount allocated for this purpose in the 9MP. This is expected to be the highlight of 11MP.
The government is expected to increase its allocation for development expenditure considering that it is the last plan before Vision 2020 is realised.
As with previous plans, the bulk of this expenditure is usually allocated to the economic sector, in particular for infrastructure spending, with the balance allocated to improving the social well-being of Malaysians through the building of schools and hospitals, as well as for security and general administration expenses.
The domestic economy grew 5.6% in first quarter of 2015, underpinned mainly by private sector demand, and thus the 11MP will also focus on private investment and consumption as a key growth driver.
This article first appeared in The Edge Financial Daily, on May 21, 2015.