KUALA LUMPUR: The Mid-Term Review (MTR) of the 12th Malaysia Plan (12MP) is expected to have a new comprehensive action plan that focuses more on the implementation of "mega" infrastructure projects to spur growth in a sluggish economy and broadening the rakyat's income base.
The six-day special sitting of the Dewan Rakyat, starts today, with the tabling of the 12MP MTR by Prime Minister Datuk Seri Anwar Ibrahim at 10am. The next five days will be to debate the plan.
In fact, a new mapping is necessary based on the new dimensions that take into account the Madani Economic Framework launched by Anwar.
This time the broad-based plan is expected to encompass many aspects of the economy from human capital, economic activity, financial markets, promoting growth and income while enhancing Malaysia's standing globally as well as ensuring its security.
Independent economist Julian Suresh Sundaram said the comprehensive review of the 12MP needs to prioritize the reinvigoration of mega projects, especially those related to infrastructure.
Some key infrastructure projects include 5G roll-out, Central Spine Road, East Coast Highway 3, West Coast Expressway, ECRL, the Bayan Lepas Light Rail Transit in Penang, Mass Rapid Transit 3 project, that is undergoing cost review, and the remaining phase of the Pan Borneo Highway.
Given the Madani Economy goals, Julian believes the MTR will likely shift towards being more human centric and broadening the income base.
"Towards this end, small and medium enterprises will also benefit given its stronger local linkages and bigger participation in the local economy.
"Given the plan's environmental and information technology goals, companies involved in green technology and the tech start-up ecosystem will see greater resource allocation and support from the government," he told the New Straits Times.
In addition to infrastructure development, Malaysian Institute of Economic Research economist Dr Shankaran Nambiar said two other paramount areas of concern for the government that will receive significant attention, will be namely the green economy and energy transitioning, as well as digitalization.
"The green economy is slated to be a cornerstone of Malaysia's future development, aligning with global efforts to combat climate change. Investment in sustainable technologies, renewable energy, and eco-friendly practices is expected to surge as Malaysia solidifies its commitment to environmental stewardship," Nambiar said.
Economy Minister Rafizi Ramli said on Saturday, the 12MP MTR will encompass 17 policy shifts or radical approaches, in line with the current economic situation.
He said the policy transitions will provide a way out from issues that keep re-emerging because past policies were not radical enough.
It is expected that any economic planning, even if it is not as grand as before, includes projects worth tens of billions, with the amount of money and allocation distributed to the people, through various ways including the Progressive Wage Policy.
Sluggish growth, the country's gross domestic product slowed to 2.9 per cent in the second quarter of 2023, and a 5 per cent deficit target for 2023, however, is giving rise to doubts as to the speed at which the Madani government will be able to roll-out projects.
"Looking at the country's sluggish (growth) and the government's checkered finances, it is hard to expect that implementation will be carried out forthwith," Singapore Institute of International Affairs senior fellow Dr Oh Ei Sun Oh said.
The 12MP tabled under Prime Minister Datuk Seri Ismail Sabri Yaakob's government allocated RM400 billion as development expenditure or RM80 billion per annum, higher than 11MP's allocation of RM248 billion.
Source: https://www.nst.com.my/business/2023/09/953634/12th-malaysia-plan-mid-term-review-expected-kick-start-mega-projects-spur