13th Malaysia Plan 2026 – 2030. The numbers I personally like

13th Malaysia Plan 2026 – 2030. The numbers I personally like.

Let’s face the facts. When things are not planned, we are planning to fail. Failure to plan is Planning to Fail. Even for our own career and relationships, we need to strategize and plan ahead so that we have some ideas how to work towards the outcome(s) we truly wanted. Some may want to be a C-level by 40. Well, if we want to be a C-Level and we did not offer to take up more responsibilities to learn more, faster, then it will be slower learning for us. Plan for it and go for it.

So, it’s good to have a guiding Malaysia Plan to guide Malaysia. Whether we need to keep doing these 5 year plans is up for debate though. These days, the world changes so fast. Perhaps we need both long term and short term plans? That’s for the PM to think about.

Let’s get into some numbers which I like from the announcement and also why I personally think that’s good.

#1 – RM611 billion would have to be spent for 13MP.

Comment: First, this meant we have the money to spend, if we do not, it meant we could have the money to spend. Think of some countries where they do not have the money to spend and could not think of ways to get the money to spend. We are good for this part yeah. Indicating strong economic fundamentals and good confidence too.

#2 – Gross domestic product (GDP) growth is targeted at 4.5-5.5 per cent annually, to be led by domestic demand, particularly private consumption and investment 

Comment: 4.5 to 5.5 are good numbers yeah. In fact, if this also translates to higher income and subsequently, higher property prices because people could afford to pay more, than it will be even better too. Just 2 percent increase in property price every year and I will already be super happy. This is just less than half of the GDP growth, so it’s definitely considered low inflation.

#3 – The federal government’s fiscal deficit is expected to gradually decrease to below 3.0 per cent of GDP, with government debt not exceeding 60 per cent of GDP.  

Comment: If this can truly be done, this is good. However, without the ‘help’ from GST, this is likely to be harder to achieve. We will see how much SST would have to be tweaked in order to help the government to achieve this figure. As PM has said, unless lowest income Malaysians are earning RM4,000 per month, GST will not be reintroduced… Okay, noted.

#4 – The average inflation rate is expected to remain stable between 2.0 per cent and 3.0 per cent annually. 

Comment: As long as this is a positive number, this is good as it meant the economy is growing and demand is growing. Let’s not have negative inflation lah. If prices are going down every year, this is not a good sign lah. If it is, then why should there be salary increments…Businesses would also not invest because the price they could sell is lower! Better restrict the supply until prices move upwards lah.

#5 – The trade balance is expected to remain positive at RM116.3 billion, with a current account surplus of 2.2 per cent of GNI by 2030. 

Comment: By the way, this is a very healthy number. Ringgit should just continue to appreciate because demand is higher for exports from Malaysia. They need Ringgit in order to pay us. In other words, the demand for ringgit should be up which meant the value should also be up… I just have no idea why it is not really moving up.

#6 – The manufacturing sector is projected to grow by 5.8 per cent per year. The services sector is projected to grow by 5.2 percent per year.

Comment: These are the largests sector yeah. If these are growing it meant more jobs. More jobs meant more demand for goods and you can see the rest coming through too.

#7 – By 2030, Malaysia aspires to become a high-income nation and be among the world’s top 30 economies.

Comment: Based on population size, this is a lofty goal and in fact shows that we are fast becoming a very strong economy. Malaysia is not relying on mining… or agriculture… or low-cost manufacturing. In fact our economy is considered a complex one and this meant not many nations can easily replace us yeah. This is not like switching from one country to the other for raw materials…

#8 – The National AI Action Plan 2030 will drive talent development, research, and commercialisation of technology to support broad AI adoption. 

Comment: I do hope we will be able to do well in this as well. I wonder when will we have one super duper amazing AI company here in Malaysia. The ones which will make Google or Facebook come knocking and wanting to acquire or to cooperate.

Happy understanding. Keep doing everything as well as we could in order to also help the country achieve its goals too.

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