27 Sept 2021
Malaysia Announces Spending Five-Year Spending Plan
The Index Today
Malaysia’s Prime Minister Ismail Sabri Yaakob announced on Monday to implement The 12th Malaysia Plan. Under the new five-year plan, the country will aim to move out of the pandemic-induced slump with a boost to infrastructure spending and carbon taxation.
Ismail Sabri noted that the country’s financial position will see new levels of growth by 4.5% - 5.5% per year in 2023. The average annual growth of 2.7% which was recorded during 2016-2020 saw a major decline by 5.6% during the Covid pandemic.
Malaysia’s Prime Minister further stated, “The 12th Malaysia Plan is a comprehensive development plan that will introduce a number of reforms to ensure sustainable economic growth and more equal distribution of opportunities and results.”
Since the country’s economy relies heavily on exports, the pandemic negatively impacted GDP growth. Malaysia’s central bank also had to cut growth forecast to 3.0%-4.0% from 6%-7%, making it the second cut this year.
The government has announced to allocate a budget of 400 billion ringgit on infrastructure and development. New projects will include a number of rail networks, housing schemes, health and education, broadband connectivity and industry. Ismail Sabri has said Malaysia will be on track to become a carbon neutral country by 2050 with the help of carbon tax.