RMK11 | Malaysia today unveiled new economic forecasts and goals in its mid-term review of the five-year development plan covering 2016 to 2020. Here are the key targets and forecasts from the report (all are for 2016-2020 period, unless stated otherwise.)
- Economic growth of 4.5 percent to 5.5 percent a year, versus earlier target of 5-6 percent.
- Current account of the balance of payments to remain in surplus at 39.9 billion ringgit (US$9.6 billion) or 2.5 percent of gross national income in 2020. It had earlier targeted US$46.5billion ringgit.
- Inflation to average 2-3 percent annually.
- Average real private investments growth of 6.1 percent, down from earlier target of 9.4 percent. Public investment to drop 0.6 percent versus an earlier target for growth of 2.7 percent.
- Unemployment below 3.5 percent by 2020 versus earlier projection of 2.8 percent.
- Gross exports expected to grow at an annual average of 7.5 percent, while gross imports seen increasing at 7.8 percent annually.
- Trade surplus forecast to be US$118.3 billion ringgit in 2020, compared with the initial target of US$57.3 billion.
- Per capita income targetted to hit 47,720 ringgit in 2020 from 41,093 ringgit in 2017.
- Expects Malaysia to breach the threshold of a high-income nation by 2024.
- Fiscal deficit seen at 3.0 percent by 2020, versus an earlier target of a balanced budget that year.
- Development expenditure ceiling slashed to 220 billion ringgit from original allocation of 260 billion ringgit for 2016-2020. Operating expenditure to also be reduced.
- Sees revenue diversification from indirect taxes and non-tax revenue.
- Efforts to be intensified to provide affordable housing and increase home ownership.
- Incentives to be considered for developers who provide affordable housing.
Governance and development
- Efforts to be undertaken to limit the term of office for the prime minister to two terms, and introduce legislation on political financing.
- To undertake a review to formulate legislation providing tougher actions and better management of misconduct and wrongdoing of public officials.
- To establish a task force to conduct a comprehensive audit and review across public sector institutions and agencies.
- To continue the "Bumiputera agenda" - an affirmative action policy for the majority Malay population and the country's indigenous groups - at the national level through implementation of inclusive policies and initiatives. - Reuters
(US$1 = 4.1560 ringgit)