Rukun Negara

Our nation, malaysia, being dedicated: We, her peoples, pledge our united efforts
to attain these ends guided by these
to achieving a greater unity of all her peoples; principles:

to maintaining a democratic way of life; KEPERCAYAAN KEPADA TUHAN

KESETIAAN KEPADA RAJA DAN NEGARA
to creating a just society in which the wealth of KELUHURAN PERLEMBAGAAN
the nation shall be equitably shared; KEDAULATAN UNDANG-UNDANG
KESOPANAN DAN KESUSILAAN
to ensuring a liberal approach to her rich and
diverse cultural traditions; and

to building a progressive society which shall be

oriented to modern science and technology.
MID-TERM REVIEW OF THE TWELFTH MALAYSIA PLAN 2021-2025

ISBN 978-967-5842-36-8

-0-2398-24-0

-25709-4-3

--9-

9 789675 842368

For further information refer to:

KEMENTERIAN EKONOMI
Secretary General
(paperback)
Ministry of Economy
Menara Prisma
No. 26, Persiaran Perdana, Precint 3
Federal Government Administrative Centre
62675 Putrajaya
MALAYSIA

https://www.ekonomi.gov.my

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MID-TERM REVIEW

2O21-2025
MALAYSIA MADANI: sustainable,
ProspErous, high-income
 The Mid-Term Review
of the Twelfth Malaysia
Plan (MTR of the Twelfth
Plan) is a commitment by
the Government to realise
the reforms demanded
by the rakyat, in line with
the aspiration of Malaysia
MADANI.
 Mid-Term Review of the Twelfth Malaysia Plan
V

Foreword
The Mid-Term Review of the Twelfth Malaysia Plan (Twelfth Plan) is a firm assurance of the Government to realise the needed reforms desired by the rakyat,
with full efforts in translating the aspiration of Malaysia MADANI based on Ekonomi MADANI. In this context, the last two years of the implementation of
the Twelfth Plan will be an important and critical point in ensuring continuous planning to accelerate development by elevating the dignity of the nation
and empowering the rakyat. It covers various areas, including economy, social and politics, which need to be adapted to the shared aspiration of Malaysia
MADANI, a vision and direction encompassing aspects of justice, diversity, harmony, and progress.

The remaining two years also offer opportunities for the Unity Government to undertake bold, proactive and innovative actions to embrace the aspiration of
the rakyat and face the challenges that have afflicted the country ever since. Hence, ‘Ekonomi MADANI: Memperkasa Rakyat’ outlines a number of priorities
and focuses on economic development that will certainly improve the wellbeing of the rakyat and propel Malaysia’s economy forward.

Through this initiative, Malaysia strives to reach a higher level of development, in ensuring that every individual feels the positive impact of economic
growth and social development. Therefore, the Mid-Term Review of the Twelfth Plan is an important pillar in the journey towards a more inclusive, dynamic,
and competitive Malaysia, of which the interests and wellbeing of the rakyat are given top priority.

In order to accomplish this agenda, we are required to immediately take the necessary and important steps in developing Malaysia as a leader in the Asian
economy as well as emphasising the importance in improving the governance to restore confidence in the system and government.

In the effort to become the leader of the Asian economy, we need to transform the economic structure, increase investment competitiveness and expand
the market to the ASEAN region. The source of economic growth will also be diversified by focusing on economic activities that have large spillover
effects. Strengthening the competitiveness of local firms, from start-ups to listed companies, supported by a competitive capital market will be able to
create more successful local companies.

Steps to reform and expand Islamic finance will be accelerated for Malaysia to be a leader in the global Islamic economy. In addition, micro and small
enterprises as well as the informal sector will be mainstreamed to generate higher income. Efforts to accelerate green growth in ensuring climate resilience
and increasing productivity of the land use for food security will assure economic sustainability.

The Government aim to improve the standard of living of the rakyat will be realised through the provision of better social protection and comprehensive
healthcare services, better employment opportunities, higher compensation of employees, reform of the education system and human resource development
as well as the provision of affordable housing. In addition, the provision of better facilities, including public transport, water and electricity supply as well
as broadband services will pave more equitable opportunities to improve the quality of life of the rakyat.

The Government also needs to regain the trust of the rakyat by ensuring good governance in the national administration, public institutions and upholding
of democratic principles. Insaniah values will be strengthened by upholding the principles of accoutability and aspects of integrity. These values should be
enculturated by each and every rakyat to support our noble commitment in building a new plan for Malaysia.

I would like to express my heartfelt appreciation and gratitude to all that have contributed ideas and efforts in the preparation of this Mid-Term Review of
the Twelfth Plan. Numerous consultations have been held with various stakeholders, including ministries, agencies and state governments as well as the
private sector and MADANI civil society organisations to ensure that comprehensive strategies and initiatives are developed and implemented.

Let us together make a commitment to achieve the Mid-Term Review of the Twelfth Plan agenda with the theme ‘Malaysia MADANI: Sustainable, Prosperous,
High-Income’. Indeed, this initiative is not easy to be implemented. Insya-Allah, with utmost commitment from all of us based on the Malaysia MADANI
approach, success will definitely be ours.

ANWAR IBRAHIM
Prime Minister
Putrajaya

11 September 2023
 Mid-Term Review of the Twelfth Malaysia Plan
VI

Preface
The Mid-Term Review of the Twelfth Malaysia Plan (MTR of the Twelfth Plan) with the theme of ‘Malaysia MADANI: Sustainable, Prosperous, High-Income’
is the main policy document of the Unity Government in realising the aspiration of ‘Ekonomi MADANI: Memperkasa Rakyat’. The MTR of the Twelfth
Plan is the starting point towards the effort in addressing major economic challenges of the nation, namely disparity in development and income, limited
fiscal space and slow structural transition of the economy.

During the review period, 2021-2022, Malaysia has accomplished remarkable socioeconomic progress despite weathering global and domestic challenges.
Moving forward, the country needs to be more resilient in facing risks and uncertainties of the global economy besides accelerating structural transition
and narrowing socioeconomic development gaps. Therefore, it is imperative to review the policies and strategies of the Twelfth Plan in ensuring Malaysia
remains on the growth trajectory.

The framework of the MTR of the Twelfth Plan outlines strengthening efficiency of public service delivery as the key enabler. This will involve efforts to
improve governance, among others, include institutional framework as well as legislation related to corruption and rent-seeking. The MTR of the Twelfth
Plan also highlights three main focus, namely strengthening sustainability, building prosperous society and achieving high-income nation.

A total of 17 Big Bold measures are introduced covering important strategies and initiatives that will serve as the main catalyst in accelerating the efforts
to reform the socioeconomic development of the nation in line with the Malaysia MADANI aspiration. Among the Big Bold measures include developing
high growth high value (HGHV) industries, enhancing fiscal sustainability, retargetting subsidies, accelerating energy transition, advancing digitalisation and
technology through GovTech as well as empowering micro, small and medium entreprises (MSMEs). Meanwhile, reforming social protection, acculturating
MADANI society, improving access to healthcare services, housing and public transportation as well as reforming labour market and wages towards
ensuring future ready talent are also part of the Big Bold initiatives.

The participation of all in preparing the MTR of the Twelfth Plan exemplifies the spirit of shared responsibility among the rakyat. In realising these reforms
and Big Bold measures, all parties including the government, private sector, civil society organisations and the rakyat need to work together in accelerating
the implementation of policies and strategies of the MTR of the Twelfth Plan. Insya-Allah, with tireless effort and the spirit of togetherness, we can achieve
the aspired goals.

RAFIZI RAMLI
Minister of Economy
Putrajaya

11 September 2023
 A total of 17 Big Bold
measures are introduced
covering important strategies
and initiatives that will
serve as the main catalyst in
accelerating the efforts to
reform the socioeconomic
development of the nation
in line with the Malaysia
MADANI aspiration.
 Mid-Term Review of the Twelfth Malaysia Plan
VIII Contents

Contents Overview

Malaysia MADANI: Sustainable,

Prosperous, High-Income

Introduction O-2

Progress, 2021–2022 O-3

Economic Performance O-3
Review of Themes and Policy Enablers of the Twelfth O-3
Malaysia Plan

Malaysia MADANI and the Mid-Term Review O-8

Way Forward, 2023–2025 O-15

Macroeconomic Prospects O-15
Enhancing Efficiency of Public Service Delivery O-15
Main Focus Areas O-15
Strengthening Sustainability O-15
Building a Prosperous Society O-16
Achieving High-Income Nation O-17

Conclusion O-19
 Mid-Term Review of the Twelfth Malaysia Plan
Contents IX

Chapter

Future-Proofing Economy
1 Chapter

Enhancing Efficiency of Public

2
Service Delivery
Introduction 1-2

Introduction 2-2
Progress, 2021-2022 1-3
World Economy 1-3
Progress, 2021-2022 2-3
Domestic Economy 1-3
Performance of Selected Targets 2-3
Achievement by Priority Area 2-5
Issues and Challenges 1-9
Priority Area A: Developing High-Performing Civil Service 2-5
Slow Structural Economic Transition 1-9
Priority Area B: Advancing Whole-of-Government 2-6
Disruption in Global Supply Chain 1-9 Approach
Continued Growth Disparity between Regions and States 1-9 Priority Area C: Enhancing Budgeting and Project 2-8
Elevated Inflation 1-9 Management
Risks of Population Dynamics 1-9
Limited Fiscal Space 1-9 Issues and Challenges 2-9
Weak Governance 2-9
Way Forward, 2023-2025 1-12 Constraints in Human Capital Development 2-9
World Economic Outlook 1-12 Low Adoption of Digital Technology 2-9
Domestic Economic Outlook 1-12 Unconducive Environment for Organisation and Business 2-9
Accelerating Structural Economic Reforms 1-15 Limited Fiscal Space and Inefficient Project Management 2-9
Strengthening External Trade in the Global Supply Chain 1-17
Optimising Economic Potential of Regions and States 1-17 Way Forward, 2023-2025 2-10
Managing Inflation 1-17 Selected Targets, 2021–2025 2-11
Improving Federal Government Financial Position 1-18 Focus Area A: Enhancing Value-Based Governance 2-13
Focus Area B: Enriching Human Capital in the Civil Service 2-15
Conclusion 1-19 Focus Area C: Accelerating Digital Transformation 2-16
Focus Area D: Strengthening Institutional and Business 2-20
Framework
Focus Area E: Improving the Effectiveness and Efficiency 2-21
of Budget and Project Management

Conclusion 2-23
 Mid-Term Review of the Twelfth Malaysia Plan
X Contents

Chapter

Boosting Economic Resilience for a

3
Sustainable Growth

Introduction 3-2 Way Forward, 2023-2025 3-19

Selected Targets, 2021-2025 3-20
Progress, 2021-2022 3-3 Focus Area A: Strengthening Sectoral and Strategic 3-23
Performance of Selected Targets 3-3 Industries Resilience

Achievement by Priority Area 3-8 Focus Area B: Driving Competitiveness for Sustainable 3-29
Growth
Priority Area A: Boosting Productivity Growth 3-8
Focus Area C: Boosting the Efficacy of the Financial 3-31
Priority Area B: Expanding Export Markets 3-9 Support
Priority Area C: Strengthening the Effectiveness of 3-10 Focus Area D: Strategising Industrial Estates and Food 3-33
Financial Intermediation Ecosystem Production Areas
Priority Area D: Strengthening the Role of Industrial 3-12 Focus Area E: Breaking the Barriers for MSMEs to Scale Up 3-34
Estates and Food Production Areas
Priority Area E: Improving Governance and Policy 3-12
Conclusion 3-37
Priority Area F: Accelerating the Development of Strategic 3-12
and High Impact Industries
Priority Area G: Boosting Capabilities of Entrepreneurs and 3-15
Enterprises

Issues and Challenges 3-17

Lacklustre Performance of Economic Sectors and Industry 3-17
Development
Lack of Sectoral Competitiveness 3-18
Impediments in the Financial Sector 3-18
Lack of Effective Management of Industrial Estates and 3-18
Food Production Areas
Inability of MSMEs to Scale Up and Stay Competitive 3-18
 Mid-Term Review of the Twelfth Malaysia Plan
Contents XI

Chapter

Strengthening Key Enablers

4
Towards High-Income Economy

Introduction 4-2 Way Forward, 2023-2025 4-14

Selected Targets, 2021-2025 4-15
Progress, 2021-2022 4-3 Focus Area A: Reforming Labour Market 4-19
Performance of Selected Targets 4-3 Focus Area B: Reshaping Talents for Future of Work 4-20
Achievement by Priority Area 4-7 Focus Area C: Strengthening the Digital Economy 4-21
Ecosystem
Priority Area A: Realigning the Labour Market for Inclusive 4-7
and Sustainable Growth Focus Area D: Optimising the Potential of R&D&C&I and 4-24
Escalating the Advancement of Technology
Priority Area B: Developing Future-Ready Talent 4-7
Focus Area E: Building Resilient Transport and Logistics 4-27
Priority Area C: Advancing Digital Economy 4-8
Infrastructure
Priority Area D: Mainstreaming Digitalisation for Inclusive 4-9
Development
Conclusion 4-29
Priority Area E: Accelerating Research, Development, 4-9
Commercialisation and Innovation
Priority Area F: Capitalising on Advanced Technology 4-10
Potential
Priority Area G: Ensuring Integrated, Affordable, Reliable 4-11
and Seamless People Mobility
Priority Area H: Driving Transport and Logistics Industry to 4-11
Enhance Competitiveness
Priority Area I: Strengthening Institutional and Regulatory 4-12
Framework

Issues and Challenges 4-13

Inefficient Labour Market 4-13
Unconducive Education Ecosystem 4-13
Unfavourable Digital Economy Ecosystem 4-13
Challenges in Accelerating R&D&C&I and Advancing 4-13
Technology
Gaps in Supporting the Growth of Transport Subsector and 4-13
Logistics Industry
 Mid-Term Review of the Twelfth Malaysia Plan
XII Contents

Chapter

Progressing towards Regional

5
Balance

Introduction 5-2 Way Forward, 2023-2025 5-16

Selected Targets, 2021-2025 5-17
Progress, 2021-2022 5-3 Focus Area A: Enhancing Regional Economic Potential 5-21
Performance of Selected Targets 5-3 Focus Area B: Accelerating Sustainable Urban Development 5-22
Achievement by Priority Area 5-8 Focus Area C: Intensifying Rural Development 5-23
Priority Area A: Optimising Regional Economic Potential 5-8 Focus Area D: Optimising Opportunities from Subregional 5-25
Priority Area B: Developing Sustainable Cities 5-9 Cooperation
Priority Area C: Transforming Rural Areas to Bridge 5-10 Focus Area E: Intensifying Development in Sabah and 5-26
Development Gap Sarawak
Priority Area D: Solidifying Provision of Infrastructure 5-10
Priority Area E: Optimising Economic Potential 5-11 Conclusion 5-29
Priority Area F: Improving Access to Social Services 5-12
Priority Area G: Enhancing Inclusive Development 5-13
Priority Area H: Strengthening Cooperation between the 5-13
Federal Agencies and State Governments

Issues and Challenges 5-14

Imbalanced Regional Development 5-14
Low Level of Urban Resilience 5-14
Developmental Constraints in Rural Areas 5-14
Ineffectiveness in Leveraging Opportunities from 5-15
Subregional Cooperation
Challenges in Development of Sabah and Sarawak 5-15
 Mid-Term Review of the Twelfth Malaysia Plan
Contents XIII

Chapter

Building an Inclusive and More

6
Resilient Society

Introduction 6-2 Way Forward, 2023-2025 6-15

Selected Targets, 2021-2025 6-17
Progress, 2021-2022 6-3 Focus Area A: Addressing and Preventing Poverty 6-19
Performance of Selected Targets 6-3 Focus Area B: Empowering Vulnerable Households 6-26
Achievement by Priority Area 6-5 Focus Area C: Facilitating M40 6-28
Priority Area A: Addressing Poverty from a Multidimensional 6-5 Focus Area D: Narrowing Inequality 6-29
Perspective and Empowering B40 Focus Area E: Achieving an Equitable Outcome for 6-30
Priority Area B: Supporting the M40 6-8 Bumiputera
Priority Area C: Achieving an Equitable Outcome for 6-9 FocusArea F: Enhancing Development of Orang Asli 6-33
Bumiputera Community
Priority Area D: Enhancing Development of Orang Asli 6-10 Focus Area G: Empowering Specific Target Groups 6-34
Community Focus Area H: Strengthening Policy and Service Delivery 6-36
Priority Area E: Empowering Specific Target Groups 6-11
Conclusion 6-37
Issues and Challenges 6-13
Persistence of Poverty 6-13
Vulnerability of the B40 6-13
Challenges Faced by the M40 6-13
Multifaceted Inequality 6-13
Inequitable Bumiputera Socioeconomic Outcomes 6-13
Lagging Socioeconomic Development of Orang Asli 6-14
Community
Social Deprivations of Specific Target Groups 6-14
Ineffective Delivery Ecosystem 6-14
 Mid-Term Review of the Twelfth Malaysia Plan
XIV Contents

Chapter

Enhancing Unity, Defence, Security

7
and Wellbeing

Introduction 7-2 Way Forward, 2023-2025 7-13

Selected Targets, 2021-2025 7-14
Progress, 2021-2022 7-3 Focus Area A: Strengthening Unity for a Prosperous Nation 7-15
Performance of Selected Targets 7-3 Focus Area B: Ensuring National Security and Sovereignty 7-16
Achievement by Priority Area 7-6 Focus Area C: Enhancing Healthcare Service Delivery 7-17
Priority Area A: Strengthening Unity for a Prosperous 7-6 Focus Area D: Increasing the Supply of Quality and 7-18
Nation Affordable Housing
Priority Area B: Ensuring National Security and Sovereignty 7-7 Focus Area E: Leveraging Sports in Building an Active 7-20
Priority Area C: Enhancing Healthcare Service Delivery 7-8 Society

Priority Area D: Increasing the Supply of Quality Affordable 7-9

Houses Conclusion 7-23
Priority Area E: Leveraging Sports in Building an Active 7-10
Nation

Issues and Challenges 7-12

Continued Incidences of Disunity 7-12
Evolving Threats to Security and Public Safety 7-12
Wider Disparities in Healthcare 7-12
Lack of Quality and Affordable Houses 7-12
Untapped Sports Potential 7-12
 Mid-Term Review of the Twelfth Malaysia Plan
Contents XV

Chapter

Advancing Sustainability
8 Malaysia Beyond 2025

A Sustainable and Progressive

Society
Introduction 8-2

Introduction B-2
Progress, 2021-2022 8-3
Performance of Selected Targets 8-3
Key Concerns of the Rakyat B-3
Achievement by Priority Area 8-6
Focus Area A: Implementing a Low Carbon, Clean and 8-6
Transition towards a Better Malaysia B-5
Resilient Development
Just Society B-8
Focus Area B: Managing Natural Resources Efficiently to 8-7
Safeguard Natural Capital Inclusive Economic Growth B-10
Focus Area C: Strengthening the Enabling Environment for 8-8 Healthier Planet B-12
Effective Governance Good Governance B-13
Focus Area D: Ensuring Sustainable Energy 8-9
Focus Area E: Transforming the Water Sector 8-10 Conclusion B-14

Issues and Challenges 8-12

Challenges in Addressing Climate Change and 8-12
Environmental Degradation Appendix
Loss of Biodiversity and Unsustainable Use of Natural 8-12
Resources Tables A-1
Low Implementation of SDGs and Adoption of ESG 8-12
Ineffective Environmental Governance 8-12 Charts A-31

Way Forward, 2023-2025 8-13 Glossary A-35

Selected Targets, 2021-2025 8-14
Focus Area A: Accelerating the Implementation of Low 8-16 Index A-45
Carbon, Clean and Resilient Development
Focus Area B: Managing Natural Resources More Efficiently 8-19
Focus Area C: Advancing the Implementation of Sustainable 8-21
Development Goals and Adoption of Environmental, Social
and Governance Principles
Focus Area D: Strengthening the Enabling Environment 8-25

Conclusion 8-27
Overview
Malaysia MADANI:
Sustainable, Prosperous, High-Income

Introduction O-2

Progress, 2021–2022 O-3

Economic Performance O-3
Review of Themes and Policy Enablers of the Twelfth Malaysia Plan O-3

Malaysia MADANI and the Mid-Term Review O-8

Way Forward, 2023–2025 O-15

Macroeconomic Prospects O-15
Enhancing Efficiency of Public Service Delivery O-15
Main Focus Areas O-15
Strengthening Sustainability O-15
Building a Prosperous Society O-16
Achieving High-Income Nation O-17

Conclusion O-19
Introduction
The Twelfth Malaysia Plan, 2021-2025 (Twelfth Plan), is a medium-term plan with the
objective of achieving ‘A Prosperous, Inclusive, Sustainable Malaysia’. During the review
period of 2021-2022, Malaysia registered commendable socioeconomic development
despite several global and domestic challenges. Nevertheless, these challenges need
to be addressed in ensuring the targeted outcomes are achieved. Thus, a review of
targets, policies and strategies of the Twelfth Plan is imperative in ensuring Malaysia
remains on the right growth trajectory.

The Mid-Term Review (MTR) of the Twelfth Plan, 2023-2025 encompasses revised
policies and strategies towards achieving the aspiration of ‘Ekonomi MADANI: Memperkasa
Rakyat’ that will regain honour and dignity of the rakyat as well as building Malaysia
as an advanced and prosperous nation. The MTR of the Twelfth Plan is based on the
theme ‘Sustainable, Prosperous, High-Income Nation’. Enhancing efficiency of public
service delivery is the key enabler that will accelerate the implementation of three
main focus areas, namely strengthening sustainability, building a prosperous society
and achieving a high-income nation. A total of 17 Big Bolds are introduced as catalytic
strategies in accelerating the move towards achieving the targeted outcomes. The
MTR of the Twelfth Plan document consists of eight main chapters, with a chapter on
Overview as well as Beyond 2025 chapter as a prelude to the Thirteenth Malaysia Plan,
2026-2030. The ultimate goal of the MTR of the Twelfth Plan is to ensure that no
one is left behind from reaping the benefits of socioeconomic development and have
equal access to opportunity in increasing the standard of living as well as in providing
a bright future for generations to come, regardless of ethnicity, location, gender and
socioeconomic background.
 Mid-Term Review of the Twelfth Malaysia Plan
Overview O-3

Progress, 2021-2022 Efforts to strengthen economic resilience through the implementation of

various measures were hampered by headwinds emanating from global
and domestic fronts. Global challenges include geopolitical tensions,
Economic Performance global trade and supply chain disruptions as well as higher commodity
prices and inflation. Meanwhile, domestic issues include slow structural
During the review period, the gross domestic product (GDP) growth economic transition, continued growth disparity between regions and
surpassed the target expanding by 5.9% per annum, led by improved labour states, and limited fiscal space. In the remaining Twelfth Plan period,
productivity and private sector activities. Private investment increased by measures will be undertaken to address these persistent issues in boosting
4.9% per annum supported by acquisition of machinery and equipment the economic growth.
(M&E). Labour market conditions improved, leading to higher productivity
growth of 3.7% per annum, with unemployment rate at 3.9% in 2022.
Meanwhile, average inflation rate increased to 2.9% per annum. In terms
Review of Themes and Policy
of external trade, gross exports grew by 25.5% per annum driven by an Enablers of the Twelfth Malaysia
increase in demand for the electrical and electronic (E&E), petroleum
and chemical products. Gross imports expanded by 27.1% per annum on Plan
account of continuous demand for intermediate, capital and consumption
goods. The current account remained in surplus at RM55.1 billion or The Twelfth Plan was anchored on the implementation of three key
3.2% to gross national income (GNI) in 2022, supported by substantial themes, namely resetting the economy, strengthening security, wellbeing
goods surplus. The Federal Government fiscal deficit as a percentage of and inclusivity as well as advancing sustainability. Four catalytic policy
GDP narrowed from 6.2% in 2020 to 5.6% in 2022. Meanwhile, GNI per enablers, namely developing future talent, accelerating technology adoption
capita was higher at RM52,968 (US$12,035) in 2022 from RM42,838 and innovation, enhancing connectivity and transport infrastructure as
(US$10,191) in 2020. The wellbeing of the rakyat, as reflected by the well as strengthening the public service supported the implementation
Malaysian Wellbeing Index (MyWI) in 2021, also improved in line with of these themes.
the economic progress.
 Mid-Term Review of the Twelfth Malaysia Plan
O-4 Overview

Theme 1: Theme 2:
Resetting the Economy Strengthening Security,
The theme on resetting the economy focused on restoring the growth Wellbeing and Inclusivity
momentum and propelling the growth of strategic and high impact industries
as well as micro, small, and medium enterprises (MSMEs). Efforts were Theme 2 focused on strengthening security, wellbeing and inclusivity. In
undertaken to rejuvenate the economy by boosting productivity growth, ensuring national security and sovereignty, measures were undertaken
expanding export markets, strengthening the effectiveness of financial towards providing a conducive environment for economic activities and
intermediation ecosystem, enhancing the role of industrial estates and food safe living as well as ensuring a dignified and resilient nation. The main
production areas as well as improving governance and policy. In boosting strategies include safeguarding national sovereignty and intensifying
productivity growth, focus was given to, among others, strengthening the efforts in crime prevention, rehabilitation and emergency preparedness
planning, evaluation and monitoring mechanisms as well as scaling up green as well as improving the welfare of personnel. By the end of 2022, index
practices. Meanwhile, measures to enhance the contribution of eight strategic crime cases recorded 147 cases per 100,000 population, better than the
and high impact industries as well as boost capabilities of entrepreneurs target. Meanwhile, the remaining two targets are on track. Despite the
and enterprises were undertaken. Strategies implemented to accelerate the continuous measures undertaken to ensure security and sovereignty,
development of strategic and high impact industries include boosting E&E some challenges remain and need to be addressed. The challenges include
industry in moving up the value chain, reenergising the tourism industry the increased risk in cross border crime, lack of enforcement at border
and intensifying smart farming activities. Additionally, strategies to boost areas, increased threats on country’s sovereignty, escalation losses in
entrepreneurs and MSMEs capacities and capabilities were implemented cybercrime and lack of coordination in disaster management.
by creating innovative and sustainable entrepreneurs as well as a conducive
and holistic entrepreneurial ecosystem. Priority areas implemented in improving wellbeing consist of enhancing
healthcare service delivery, increasing the supply of quality affordable
A total of 38 targets were set under the theme, with 15 of the targets housing, leveraging sports in building an active nation and strengthening
were achieved, 20 are on track, while the remaining three are lagging. unity for a prosperous nation. Strategies for healthcare include
Measures to strengthen economic sectors affected by COVID-19 pandemic implementation of measures in combating non-communicable diseases,
have succeeded in several areas during the review period. These include strengthening healthcare programmes for older persons and digitalising
improvement in productivity growth of the manufacturing sector at 5.4% per healthcare services. Meanwhile, in increasing the supply of quality
annum, and services sector at 3.6% as well as higher exports in manufacturing affordable housing, among the efforts undertaken were to improve
sector at RM1,304.7 billion in 2022, mining sector at RM117.3 billion, access to affordable housing and ensure inclusive housing. Strategies to
agriculture sector at RM120.9 billion and construction sector at RM6.1 leverage sports include promoting sports for active and healthy living,
billion. In addition, for strategic and high impact industries, export value of and developing sports industry. Measures undertaken in strengthening
E&E products reached RM593 billion in 2022, average growth of domestic unity consist of programmes to promote rakyat in embracing diversity as
visitors increased by 10.8% per annum, while exports of halal products an asset and building a more tolerance society. A total of nine targets
registered a value of RM59 billion in 2022. Meanwhile, digitalisation rate were set to enhance the wellbeing of the rakyat. From these, two were
among MSMEs reached 98.1%. Despite these achievements, the economy achieved, five are on track, while the remaining two are lagging. The
is still lagging behind regional peers in terms of competitiveness due to hospital beds per 1,000 population was 2.07 in 2022, exceeding the
slow structural economic transition. Lacklustre performance of economic target of 2.06 in 2025, while the National Unity Policy was formulated.
sectors and industry development, lack of competitiveness, impediments Despite various measures undertaken, several issues and challenges remain
in the financial sector and ineffective management of industrial estates and need to be addressed. Among the issues identified include wider
and food production areas as well as MSMEs inability to scale up and stay disparities in healthcare, lack of quality and affordable houses as well
competitive continue to hamper the growth momentum. as untapped sports potential in building an active society. In addition,
issues related to unity include lack of cross-ethnic social interactions
and low comprehension of the Federal Constitution and Rukun Negara.

In addressing poverty and building an inclusive society, focus was

given to address poverty and narrow inequality from a multidimensional
perspective, empower B40, support the M40 and achieve an equitable
 Mid-Term Review of the Twelfth Malaysia Plan
Overview O-5

outcome for Bumiputera. In addition, priority was given to enhance Measures undertaken in enhancing socioeconomic development in Sabah
development of Orang Asli community and empower specific target and Sarawak include solidifying provision of infrastructure, optimising
groups. In addressing poverty and inequality, strategies implemented economic potential, improving access to social services, enhancing
include increasing income and uplifting the standard of living of the poor. inclusive development and strengthening cooperation between the Federal
Meanwhile, in empowering B40, among the strategies undertaken were Government and state governments. The provision of infrastructure
to increase income and improve access to basic services. In supporting and connectivity for both states were extended to facilitate economic
the M40 towards inclusive society, strategies implemented involved activities and enable better service delivery. Strategies implemented to
encouraging participation in health and employment protection schemes optimise economic potential include reenergising economic activities,
as well as increasing home ownership. In addition, strategies to achieve advancing rural development and promoting green growth. Meanwhile,
an equitable outcome for Bumiputera include increasing the resilience and efforts were undertaken to improve access to education, healthcare
sustainability of Bumiputera businesses and optimising Malay Reserve Land services and affordable housing. Focus was given to enhance inclusive
and waqf instruments. Two strategies were executed in enhancing the development by addressing poverty and diversifying sources of income
development of Orang Asli community, namely strengthening education as well as advancing socioeconomic development of Anak Negeri Sabah
and accelerating their socioeconomic development. In empowering and Bumiputera Sarawak. In strengthening the cooperation between the
specific target groups, strategies were geared towards advancing children Federal Government and state governments, strategies undertaken include
wellbeing and aged population as well as empowering women. A total establishing a supportive ecosystem for cooperation and enhancing
of 18 targets were set in addressing poverty and building an inclusive collaboration among authorities. A total of 19 targets were set, of
society. Out of these targets, 15 are on track while three are lagging. which one was achieved and 18 are on track. The coverage of access
The efforts to build an inclusive and more resilient society were not to clean and safe water for Sarawak was 99.1% in 2022, exceeding the
spared from challenges, notably the adverse impact of the COVID-19 target of 98%. Although various efforts were undertaken, socioeconomic
pandemic on the livelihood of low-income households as well as eroding development in Sabah and Sarawak continue to face challenges, such
purchasing power as a result of rising cost of living. Other challenges as lack of basic infrastructure as well as gaps in economic development
include the prevalence of pockets of poverty, vulnerability of the B40 and standard of living.
and M40 groups, inequitable Bumiputera socioeconomic outcomes,
lagging development of Orang Asli community and social deprivation of
specific target groups.

In improving regional balance and inclusivity, measures were undertaken

towards optimising regional economic potential, developing sustainable
cities and transforming rural areas. Strategies implemented to optimise
regional economic potential include attracting quality investment and
enhancing subregional cooperation. Meanwhile, strategies to develop
sustainable cities include promoting effective urban planning and
governance as well as prioritising green and resilient urban development.
Efforts to transform rural areas were intensified by accelerating the
provision of infrastructure and services as well as diversifying and
boosting economic activities. A total of 24 targets were set towards
inclusive regional development. From these, nine were achieved and the
rest are on track. Despite vigorous efforts to ensure regional balance
and inclusion, development gap between regions and states as well
as urban and rural areas remain. Among key issues and challenges are
imbalance development, low level of urban resilience, development
constraints in rural areas and ineffectiveness in leveraging opportunities
from subregional cooperation.
 Mid-Term Review of the Twelfth Malaysia Plan
O-6 Overview

Theme 3: Policy Enabler 1:

Advancing Sustainability Developing Future Talent
Theme 3 focused on advancing green growth, enhancing energy sustainability In developing future talent, priority was given to realign the labour market
and transforming the water sector through the whole-of-nation approach. and enhance talent development at all levels. Among the key strategies
Various strategies were undertaken in advancing green growth for implemented in realigning labour market were promoting higher compensation
sustainability and resilience. In implementing a low carbon, clean and of employees (CE) and labour participation as well as strengthening the
resilient development, among the strategies were strengthening actions labour market support system. Meanwhile, in developing future-ready talent,
towards a low carbon nation, accelerating circular economy and encouraging emphasis was given to raise the quality of education and training programmes,
sharing of responsibility in pollution prevention. Meanwhile, in managing leverage emerging technology, ensure equitable learning outcomes and
natural resources efficiently, measures undertaken include conserving the address overlapping issues in governing TVET programmes. A total of nine
ecosystems and enhancing conservation of water resources. Efforts on targets were set in developing future talent. From these nine targets, two
strengthening the enabling environment were also emphasised through were achieved, six are on track, while one is still lagging. Labour productivity
scaling-up green financing and promoting green investments as well as per worker recorded an average growth of 3.7% during the review period,
instilling sense of ownership and shared responsibility. A total of nine targets above the target of 3.6%. The rate of graduate employability in HEIs and
were set in advancing green growth. One of the targets was achieved, while public TVET institutions achieved 90.2% in 2022, exceeding the target of
the remaining five are on track and three are lagging. The government green 85%. However, issues and challenges in talent development persist, which
procurement for selected green products and services recorded 27.8%, include inefficient labour market and less conducive education ecosystem.
exceeding the 25% target. Despite various efforts undertaken, challenges
in addressing climate change and environmental degradation as well as
loss of biodiversity and unsustainable use of natural resources continue to
persist. In addition, low implementation of sustainable development goals
(SDGs) and low adoption of environmental, social and governance (ESG) Policy Enabler 2:
as well as ineffective governance remain a challenge.
Accelerating Technology
During the review period, measures were undertaken to enhance energy Adoption and Innovation
sustainability for all. Concerted efforts were undertaken in enhancing the
energy sector, ensuring sustainable and progressive oil and gas subsector Focus was given in boosting digitalisation and advanced technology. Among
as well as enhancing the electricity subsector. Five targets were set in the strategies implemented were providing an enabling environment for
ensuring sustainable energy. Two of the targets were achieved, while the growth of the digital economy, expanding digitalisation, strengthening
the remaining three are in progress. The National Oil & Gas Services and capacity and capability in research & development & commercialisation &
Equipment (OGSE) Industry Blueprint, 2021-2030 was launched in 2021 innovation (R&D&C&I) as well as gearing up for the adoption of Fourth
and the National Energy Policy, 2022-2040 in 2022. However, there are Industrial Revolution technologies. A total of 20 targets were set, three
challenges that need to be addressed pertaining to global climate change exceeded the targets, 16 are in progress while one is still lagging. The three
pressure, lack of integrated plan and strategies in accelerating energy that had exceeded the targets were contribution of eCommerce to GDP at
transition, impediments in the oil and gas industry as well as low deployment 13% in 2021, compared to target of 10.5%, percentage of internet users at
and adoption of renewable energy (RE). 97.4% compared to 90% and speed of mobile broadband at 116 megabits
per second (Mbps) compared to 100 Mbps. Despite the progress, issues
Priority was given on transforming the water sector to ensure water and challenges persist in boosting digitalisation, R&D&C&I and advanced
security. In this regard, focus was given on empowering people, ensuring technology. These include unfavourable digital economy ecosystem,
sustainable financing and developing sustainable infrastructure with cost- ineffective R&D&C&I resource utilisation, slow progression of technological
effective technology. A total of five targets were set in transforming the advancement and wider digital exclusion.
water sector. Out of these targets, four are on track while one is lagging.
Major obstacles that impeded the transformation of the water sector were
lack of collaboration, lack of data driven decision-making, poor governance,
weak financial capability as well as ageing and outdated infrastructure.
 Mid-Term Review of the Twelfth Malaysia Plan
Overview O-7

Policy Enabler 3: Policy Enabler 4:

Enhancing Connectivity and Strengthening the
Transport Infrastructure Public Service
In enhancing efficiency of transport and logistics infrastructure, emphasis In strengthening the public service delivery, efforts were focused on
was given on ensuring integrated, affordable, reliable, and seamless people developing high-performing civil servants, advancing whole-of-government
mobility, driving transport and logistics industry towards competitiveness, approach, and enhancing budgeting and project management. Among
and strengthening institutional and regulatory framework. The strategies measures undertaken were improving human resource management,
implemented for people mobility include improving overall accessibility of government administration and operational efficiency, streamlining
public transport and encouraging behavioural shift from private to public institutions, strengthening governance including integrity and transparency
transport. Meanwhile, various efforts were carried out in enhancing efficiency as well as enhancing effectiveness of project implementation. A total of
of services, leveraging digitalisation, improving governance and promoting 10 targets were set, of which two were achieved, two are on track and
green initiatives to drive competitiveness of the transport and logistics the remaining six are still lagging. The Circular on Flexible Working Hours
industries. A total of seven targets were set and during the review period, in the Public Service was issued in 2021, while the total of end-to-end
four targets were achieved, one is on track, while two are still lagging. Federal Government online services achieved 81.3% in 2022, exceeding
The public transport ridership in the Greater Kuala Lumpur/Klang Valley the target of 80%. However, various issues and challenges remain, which
recorded an average growth of 6.9%, the air transport passengers increased include weak governance, constraints in human capital development and
by 104.3% and cargo handling via rail increased by 32.1%. In addition, digitalisation, unconducive environment for business, limited fiscal space
Malaysia was ranked 26th out of 139 countries in the World Bank Logistics and inefficient project management.
Performance Index Report 2023, achieving the top 30 target. Despite
these achievements, challenges remain in enhancing efficiency of transport
and logistics services, including inadequate data, ineffective governance,
inadequate connectivity and infrastructure, insufficient maintenance and
inefficient port community system.
 Mid-Term Review of the Twelfth Malaysia Plan
O-8 Overview

Malaysia MADANI and the Mid-Term Review

Malaysia MADANI launched in January 2023 with the aspiration to develop Malaysia as a civilised nation. It focuses on six core values, namely
kemampanan, kesejahteraan, daya cipta, hormat, keyakinan and ihsan. This aspiration is supported by eight imperative elements, namely economy,
legal, institution, education, culture, society, urban and rural. Three strategic thrusts were introduced, namely advancing sustainability of national
economy, reforming institution and governance, and upholding social justice.

The framework of ‘Ekonomi MADANI: Memperkasa Rakyat’ is then introduced on 27 July 2023 as a platform to restore the honour and dignity of
the country. The main emphasis is to restructure the Malaysian economy towards becoming a leader in the Asian economy. The aspiration of the
Malaysia MADANI and the framework of ‘Ekonomi MADANI: Memperkasa Rakyat’ are the pillar for the MTR of the Twelfth Plan that eventually will
benefit the rakyat to lead a better quality of life. The MTR framework with the theme Sustainable, Prosperous, High-Income Nation, is as shown in
Exhibit O-1. This theme is supported by key enabler of enhancing efficiency of public service delivery and three main focus, namely strengthening
sustainability, building prosperous society, and achieving high-income nation.

Exhibit O-1
Framework of the Mid-Term Review of the Twelfth Malaysia Plan
Aspiration Ekonomi MADANI: Memperkasa Rakyat

Theme Sustainable, Prosperous, High-Income Nation

Under the new
Key Enhancing efficiency of 1 Governance and institutional framework
framework, enabler public service delivery 2 Legislation related to corruption

17 ‘Big
Bolds’
Strengthening Building prosperous Achieving
have been sustainability society high-income nation
outlined 3 Fiscal sustainability and 6 Enculturation of MADANI 11 Digital- and technology-
financial systems Society based HGHV industries
to catalyse 4 HGHV Industry based on 7 Social protection reforms 12 High value E&E HGHV
development Focus
energy transition 8 Housing for the rakyat industry
across the key areas 5 Targeted subsidies 9 Strengthening healthcare 13 Agriculture and agro-
enabler and services based HGHV industry
3 focus areas 10 Strengthening national 14 Rare earths HGHV
security and defense industry
moving forward 15 Empowering MSMEs and
social enterprises
16 Streamlining the public
transport network
17 Future-ready talent
 Mid-Term Review of the Twelfth Malaysia Plan
Overview O-9

The MTR of the Twelfth Plan identifies 17 Big Bolds to catalyse the socioeconomic development in the remaining period. Details on the Big Bolds are as
shown in Exhibit O-2. These Big Bolds will be implemented through at least 71 strategies and initiatives across the key enabler and the three main focuses.
The progress of these Big Bolds will be monitored based on various selected targets and 21 of the targets are as shown in Exhibit O-3.

Exhibit O-2
17 Big Bolds and 71 Main Strategies and Initiatives
Big Bold Main Strategies/Initiatives

● Strengthening governance and integrity to rebuild trust and confidence of the rakyat
Governance and
● Improving the institutional framework to enhance efficiency of public service delivery
Institutional
● Enhancing the role of the Special Task Force on Agency Reform (STAR)
Framework
● Developing the Landslide Early Warning System (SAATR) to improve disaster management

● Strengthening the regulatory framework in improving accountability and transparency

Legislation Related to
● Introducing an integrity plan based on the core values of MADANI
Corruption
● Enacting laws related to anti rent-seeking

● Introducing the fiscal responsibility act

● Accelerating the drafting of the government procurement act
Fiscal Sustainability ● Broadening the revenue base
and Financial System ● Realigning surplus funds under federal statutory bodies and Government-linked companies
● Enhancing cost-effective project implementation
● Strengthening Malaysia as a global Islamic financial centre

● Implementing National Energy Transition Roadmap (NETR)

● Creating electricity exchange system to enable cross-border RE trading
● Increasing RE capacity - solar, hydro, bioenergy and hydrogen
HGHV Industry Based ● Introducing natural gas roadmap
on Energy Transition ● Accelerating the preparation of regulatory framework for carbon capture, utilisation and storage (CCUS)
● Formulating long-term low emissions development strategy (LT-LEDS)
● Implementing carbon pricing
● Accelerating ESG adoption

● Retargeting all types of subsidies such as electricity, diesel and RON95

Targeted Subsidies
● Developing data repository on households, Pangkalan Data Utama (PADU)
 Mid-Term Review of the Twelfth Malaysia Plan
O-10 Overview

Big Bold Main Strategies/Initiatives

● Developing a progressive society

● Building self-identity based on Rukun Negara
Enculturation of
● Fueling the spirit of nationalism and unity through the flagship Kembara Perpaduan programmes
MADANI Society
● Developing insan MADANI by inculcating the elements and values of Maqasid Syariah
● Enhancing inclusive participation in sports

● Strengthening the national social protection system through a life-cycle approach

Social Protection ● Formulating guidelines on informal workers for more comprehensive social protection
Reform ● Expanding the Inisiatif Pendapatan Rakyat (IPR) programme to cover the hardcore poor, poor and B40 to
increase income

● Accelerating the transition from ownership concept to shelter

Housing for the Rakyat ● Introducing attractive and sustainable housing financing packages
● Harnessing the potential of retirement villages

● Strengthening the financing of health protection

Strengthening ● Expanding the MADANI medical scheme
Healthcare Services ● Introducing leasing mechanism for the procurement of health equipment
● Establishing a national institute of mental health

Strengthening ● Enhancing national border security

National Security and ● Strengthening readiness and capabilities in managing security threats
Defence ● Establishing Prison Incorporated as a coordinator in improving prisoner rehabilitation programmes

● Accelerating digitalisation through Government Technology (GovTech)

Digital- and ● Accelerating National Digital Identity implementation
Technology-Based ● Implementing national-level digital leadership and upskilling programme
HGHV Industry ● Strengthening tech start-up ecosystem - focusing on angel investors and seed funding
● Strengthening the INNOVATHON programme as a platform to promote innovation

● Strengthening front end manufacturing ecosystem to accelerate industry transition towards higher
value chain
High Value E&E HGHV
● Emphasising on high value added activities in integrated circuit design, engineering design and wafer
Industry
fabrication
● Enhancing quality investment that prioritise advanced technology
 Mid-Term Review of the Twelfth Malaysia Plan
Overview O-11

Big Bold Main Strategies/Initiatives

● Strengthening modernisation in the agriculture sector through private investment to accelerate

adoption of smart farming technology
HGHV Agriculture and ● Diversifying agro-based industries to reduce dependency on food imports
Agro-Based Industry ● Promoting low carbon agriculture practises
● Expanding implementation of the Program Inisiatif Usahawan Tani (INTAN) programme under IPR as a
strategy to strengthen food supply chain and increase income

● Developing a comprehensive business model for rare earths covering upstream, midstream and
downstream
● Preparing detailed mapping of rare earths resources in states that have potential rare earths resources
Rare Earths HGHV
● Revising the National Mineral Policy 2 to support and set the direction of the mineral industry including
Industry
rare earths
● Enhancing research & development & commercialisation & innovation (R&D&C&I) to promote local rare
earths output and product

● Integrating MSMEs into domestic and global supply chain

● Promoting alternative financing for MSMEs
Empowering MSMEs ● Accelerating MSMEs productivity growth through technology adoption
and Social Enterprises ● Scaling up MSMEs through smart ventures
● Encouraging social enterprises to venture into innovative social entrepreneurship projects
● Optimising waqf potential for enterprise development

● Improving first- and last-mile connectivity through the expansion of the Bus Rapid Transit (BRT) and
Streamlining the intracity bus services
Public Transport ● Strengthening passenger mobility data
Network ● Increasing accessibility and connectivity to facilitate better movements of people and goods
● Implementing green aviation by increasing the efficiency of air traffic management

● Implementing a progressive wage policy

● Accelerating the implementation of multi-tier levy
Future-ready Talent
● Conducting continuous upskilling and reskilling
● Introducing Academy in Industry (AiI) programme as a government and industry collaboration platform
 Mid-Term Review of the Twelfth Malaysia Plan
O-12 Overview

Exhibit O-3
Selected Targets of the Mid-Term Review of the Twelfth Malaysia Plan
Strengthening Sustainability

5.0% Average Private 2.8%

to RM278 Average Annual
GDP Growth Investment in Current to
billion Inflation Rate
6.0% Prices
3.8%
2021-2025 2021-2025 2021-2025

GDP per Capita Gap -3.5% Percentage of Fiscal Recycling Rate of

1:1.9 between Central and to
Balance to GDP 40% Household Waste
Sabah Regions
-3.0%
2025 2025 2025

Renewable Energy
31% Installed Capacity

2025
 Mid-Term Review of the Twelfth Malaysia Plan
Overview O-13

Building a Prosperous Society

HEIs and Public TVET

0% Hardcore Poverty 86.7% Graduate Employability 3.3% Unemployment Rate

2025 2025 2025

2.06
Hospital Beds per 500 Affordable Housing 100%
Interneta Coverage in
1,000 Population thousand Populated Areas

2025 2025 2025

Malaysian Wellbeing
1.4% Index Growth

2021-2025

Note: a Internet Includes WiFi and 4G.

 Mid-Term Review of the Twelfth Malaysia Plan
O-14 Overview

Achieving High-Income Nation

Contribution of Digital
RM61,000 GNI per capita 40% Share of CE of GDP 25.5% Economy to GDP

2025 2025 2025

End-to-End Online
Share of MSMEs Gross Expenditure on
41 %
to GDP 2.5 %
R&D (GERD) to GDP 80 % Federal Government
Services

2025 2025 2025

Top Ranking in Corruption

30 Perceptions Index

2025
 Mid-Term Review of the Twelfth Malaysia Plan
Overview O-15

Way Forward, 2023–2025 Digital- and Technology-Based Industry. Meanwhile, under the Big Bold
Targeted Subsidies, Pangkalan Data Utama (PADU) will also be developed
as a data repository to support accurate and transparent distribution of
Macroeconomic Prospect targeted subsidies and assistance in addressing the socioeconomic issues
at individual household level. Institutional and business framework will
During the remaining period of the Twelfth Plan, the economy is expected also be strengthened by reviewing structure and function of ministries
to grow between 5% and 5.5% per annum driven by domestic demand, and agencies as well as enhancing ease of doing business.
particularly contributed by private sector expenditure. Efforts will be
intensified to improve labour productivity, which is estimated to grow The Government will also prioritise on improving the effectiveness and
at 3.8% per annum. The increase will be supported by improvement in efficiency of budget and project management for better service delivery.
labour market conditions with the economy to remain in full employment. In this regard, through the Big Bold of Fiscal Sustainability and Financial
The expected improvement in the labour market will contribute towards System, the Government will expedite the enactment of procurement
achieving the target share of CE of GDP at 40% in 2025 and eventually act, improve revenue generation and optimise surplus funds of federal
at 45% within 10 years. GNI per capita in current terms is projected statutory bodies and Government-linked companies. These initiatives will
to reach RM61,000 (US$14,250) in 2025. Meanwhile, inflation rate is drive the efforts in strengthening sustainability, building a prosperous
expected to remain manageable between 2.8% and 3.8% per annum. society and achieving high-income nation.
On the supply side, the services and manufacturing sectors will remain
as the main sources of growth. In addition, higher growth in the civil
engineering and residential building subsectors are expected to support Main Focus Areas
recovery of the construction sector. The continuous economic growth
will pave the way towards Malaysia achieving a high-income nation and Three main focus areas outlined in the MTR of the Twelfth Plan are
becoming among the top 30 economies in the world. strengthening sustainability, building a prosperous society and achieving
high-income nation. Each focus area is complemented with comprehensive
strategies and initiatives to address the identified key issues and challenges.
Enhancing Efficiency of Public Service Delivery The implementation of these focus areas will ensure Malaysia remains on
the right growth trajectory towards achieving the aspiration of ‘Ekonomi
In the remaining Twelfth Plan period, the Government will focus on enhancing
MADANI: Memperkasa Rakyat’.
value-based governance by improving accountability and transparency as
well as strengthening and acculturating integrity in public service. These
strategies will be supported by two Big Bolds, namely Governance and Strengthening Sustainability
Institutional Framework as well as Legislation related to Corruption.
In this regard, initiatives that will be implemented include strengthening The MTR of the Twelfth Plan will continue to focus on strengthening
the institutional structure of ministries and agencies as well as enhancing sustainability by boosting economic growth, enhancing fiscal sustainability
the role of the Special Task Force on Agency Reform (STAR) to enhance and accelerating transition towards a future-proof economy. Efforts will
efficiency of the public service delivery. In addition, efforts in enriching be intensified in accelerating structural economic reforms, strengthening
human capital in the civil service will be implemented through priming external trade in the global value chain, optimising economic potential of
premier leaders and improving competency of civil servants. regions and states, and managing inflation. In this regard, measures will be
undertaken to strengthen competitiveness and productivity. Priority will be
In line with the whole-of-nation approach, digital transformation will also given to accelerate the development of new sources of growth, particularly
be accelerated by improving end-to-end online services and boosting in high growth high value (HGHV) industries. In addition, focus will be
data sharing. In addition, the modernisation of the public service will be given to attract more quality investment in technology-based industries
undertaken through the Government Technology (GovTech), which include to spur sectoral growth and create high-paying jobs.
universally accessible citizen-centric public services, digital government
transformation as well as simple, efficient and transparent government In enhancing fiscal sustainability, emphasis will be given to strengthen
systems. Under the GovTech, implementation of the National Digital Identity fiscal governance, expand revenue base, retarget subsidies and enhance
will be accelerated. These are among the initiatives under the Big Bold budget management as well as improve debt and liabilities management
 Mid-Term Review of the Twelfth Malaysia Plan
O-16 Overview

towards achieving fiscal deficit target between 3.5% and 3% to GDP in

2025. Fiscal management will be improved by establishing a legislation
Building a Prosperous Society
on fiscal responsibility as well as developing new acts on debt and
The efforts to build an inclusive and more resilient society will be
procurement. In addition, revenue management will be improved by
pursued during the remaining Plan period in building a prosperous
widening the tax base as well as adopting technology and digitalisation
society. In addressing and preventing poverty, efforts will be intensified
to enable better collection.
towards increasing income and improving standard of living. Measures to
empower vulnerable households include enlarging economic opportunities
Efforts will be undertaken to implement Targeted Subsidies as one of the
and protection, as well as improving access to basic services. The M40
Big Bold in ensuring the right target groups benefit from the assistance
will be further facilitated to increase income and access to housing as
provided as well as ensuring prudent fiscal spending. In this regard,
well as improve health and employment protection. Improving access
PADU will be leveraged as a central reference system for assistance
to opportunities and strengthening social protection are pivotal in
targeting based on household disposable income. Among the subsidies
narrowing inequality. Meanwhile, strategies to scale up businesses and
include electricity, diesel and petrol as well as other social assistances.
increase wealth creation will be intensified to ensure equitable outcome
for Bumiputera. Emphasis will be placed on accelerating socioeconomic
The energy transition presents significant opportunities for Malaysia to
development for Orang Asli community. Strategies to empower specific
unlock the green growth potential. This transition include transformation
target groups include enhancing wellbeing of children and aged population
towards HGHV Industry Based on Energy Transition as one of the
as well as gender empowerment.
Big Bolds. In this regard, a national energy transition roadmap will be
implemented to accelerate the development of RE sources such as solar,
Social Protection Reform will be undertaken as one of the Big Bolds to
bioenergy and hydrogen. Meanwhile, an electricity exchange system to
improve efficiency and effectiveness in assisting the poor and vulnerable.
enable cross-border RE trading, capitalising on rising regional RE demand,
This reform will be implemented holistically at the Federal and state levels.
will be created, while the preparation of the regulatory framework
In this regard, social protection system will be strengthened, taking into
for carbon capture, utilisation and storage (CCUS) will be accelerated.
account different risks and vulnerabilities faced by individuals through
In addition, towards achieving aspiration of a net-zero greenhouse gas
a life-cycle approach.
emissions as early as 2050, a long-term low emissions development
strategies (LT-LEDS) will be formulated and a carbon pricing mechanism
Main strategies in maintaining peace and stability include safeguarding
will be implemented. Pursuing a just energy transition is an integral part
national sovereignty as well as intensifying efforts in crime prevention
of economic restructuring, employment creation, economic growth and
and rehabilitation. These strategies will be supported through the
sustainable development.
implementation of the Big Bold Strengthening National Security and
Defence. Initiatives under this Big Bold include enhancing national border,
In advancing sustainability, climate change and other environmental
strengthening readiness and capabilities in managing security threats as
challenges will be addressed, including in the energy and water sectors.
well as establishing Prison Incorporated as a coordinator in improving
In accelerating the implementation of low carbon, clean and resilient
prisoner rehabilitation programmes. Meanwhile, among the measures
development, strategies will be focused on, among others accelerating
that will be intensified in strengthening unity include encouraging the
transition to circular economy and encouraging sharing of responsibility in
rakyat to embrace diversity as a national asset. Measures to develop
pollution prevention. In managing natural resources efficiently, emphasis
insan MADANI by inculcating the elements and values of Maqasid
will be given to conserve natural ecosystems as well as strengthen water
Syariah principles and progressive society are among the initiatives
management. Efforts will be intensified to accelerate SDGs implementation
under Big Bold Enculturation of MADANI Society. In addition, building
and ESG adoption. Measures in strengthening the enabling environment
self-identity based on Rukun Negara and efforts in fuelling the spirit of
will be focused on strengthening sustainability governance as well as
nationalism and unity through Kembara Perpaduan flagship programmes
instilling sense of ownership and shared responsibility.
as well as measure in enhancing inclusive participation in sports will
also be implemented under this Big Bold. In addition, strategies will be
undertaken to revive sports activities and develop sports industry in
building an active society.
 Mid-Term Review of the Twelfth Malaysia Plan
Overview O-17

Strengthening Healthcare Services is one of the Big Bolds that will be In driving competitiveness for sustainable growth, measures will be
implemented to enhance the wellbeing of the rakyat. Leasing of medical undertaken in enhancing technology adoption and digitalisation, elevating
equipment will be introduced as a bold move to ensure availability of best talent acquisition, strengthening value chain and improving governance
medical equipment, in terms of function, maintenance and performance mechanism. Meanwhile, the efficacy of the financial support will be
in providing effective healthcare services. This initiative will also address boosted, particularly by strengthening Malaysia as a global Islamic financial
the issue of high cost in procuring and replacing medical equipment due centre, which is one of the Fiscal Sustainability and Financial System Big
to rapid advancement of technology. Bold initiatives. In addition, industrial estates and food production areas
will be enhanced as growth catalyst. In this regard, implementation of
The supply of quality and affordable housing will be increased by Program Inisiatif Usahawan Tani (INTAN) under Inisiatif Pendapatan Rakyat
improving access and providing inclusive affordable housing. Big Bold (IPR) will be expanded and agro-based industry will be diversified as
Housing for the Rakyat will be implemented by shifting the emphasis from initiatives under the agriculture Big Bold.
ownership to shelter. The Rent-to-Own programme will be expanded to
increase access to housing, while collaboration with financial institutions Measures to break the barriers to scale up MSMEs will be undertaken
will be pursued to provide attractive and sustainable housing financing by integrating MSMEs into domestic and global supply chain as well
packages. In addition, focus will be given to ensure inclusive housing that as accelerating MSMEs productivity growth. Social enterprises will be
will benefit older persons. The implementation of various measures to encouraged to venture into innovative social entrepreneurship projects.
promote greater social harmony as well as safe, conducive and healthy These strategies are part of the Big Bold initiatives of Empowering
living for the rakyat will contribute in building a prosperous society. MSMEs and Social Enterprises. These measures will contribute in achieving
high-income, competitive and resilient economy for a sustainable growth.
Achieving High-Income Nation
Measures will be undertaken to strengthen key enablers in accelerating
Measures to boost economic resilience will be undertaken to achieve economic growth, namely talent, technology, R&D&C&I and digitalisation
high-income nation. Focus will be given on strengthening sectoral and as well as transport and logistics infrastructure. The labour market will
strategic industries resilience, driving competitiveness for sustainable be reformed to improve efficiency. Efforts for reshaping talent for future
growth, boosting the efficacy of the financial support as well as of work will include strengthening education initiatives and enhancing
strategising industrial estates and food production areas. In addition, TVET ecosystem. A Future-Ready Talent is one of the Big Bolds,
breaking the barriers for MSMEs to scale up will also be emphasised to complemented with continuous upskilling and reskilling programme as
boost the growth and increase contribution to the economy. Structural well as introduction of Academy in Industry programme. These measures
economic reforms will be accelerated with the aim to become a regional will lead to a stronger labour market and ensure the talent produced
leader in HGHV industries. In this regard, High Value E&E HGHV meets industry requirements.
Industry will be given emphasis as one of the Big Bolds by prioritising
on high value-added activities and quality investments. Focus will be A progressive wage model will be introduced to accelerate wage growth
given on implementation of HGHV Agriculture and Agro-Based Industry and address the issue of low share of CE to GDP. In addition, an action
Big Bold, including through initiatives to accelerate modernisation with the plan will be developed to ensure the number of foreign workers does not
involvement of private investment in adopting smart farming technology exceed 15% of the total workforce. This plan will include implementing a
and promote low carbon agriculture. multi-tier levy mechanism and promoting automation and mechanisation.
The implementation of the action plan will increase upskilling and
The non-radioactive rare earths industry will be developed holistically reskilling opportunities for local workers and reduce dependency on
as one of the initiatives under the Big Bold Rare Earths HGHV Industry foreign workers. In improving the welfare of workers, a social protection
to maximise its contribution to the economy. In supporting this, several scheme that covers injuries of employees outside working hours and
initiatives will be undertaken including revising the National Mineral not related to employment will be introduced. In addition, guidelines
Policy 2 and developing a comprehensive business model for the rare for informal sector workers, which include classification of gig workers
earths. In addition, R&D&C&I activities will be enhanced to develop and as employees, will be developed.
promote high value midstream and downstream local rare earths products.
 Mid-Term Review of the Twelfth Malaysia Plan
O-18 Overview

Priority will be given in boosting the growth of Digital- and Technology- that will be implemented under this Big Bold include expanding the Bus
Based HGHV Industry as one of the Big Bolds. An enabling ecosystem Rapid Transit (BRT) and intracity bus services, strengthening passenger
will be enhanced by establishing digital inclusive policies and building mobility data, facilitating better movements of people and goods as well
conducive infrastructure. In addition, efforts will be intensified to as implementing green aviation. The implementation of these efforts will
scale up R&D&C&I activities and elevate advanced technology. improve people mobility, increase industry productivity and fulfill the
In this regard, measures will be undertaken to attract more participation needs of global market.
into INNOVATHON programme, which encourages innovation among the
rakyat. The venture capital ecosystem will also be strengthened, focusing Greater focus will be given in promoting regional balance and inclusivity
on angel investors and seed funding to promote entrepreneurship and by enhancing regional economic potential, accelerating sustainable cities
innovation. These measures will establish a dynamic ecosystem that and rural development as well as optimising opportunities from subregional
fuels socioeconomic development, the creation of an inclusive society cooperation. Measures to enhance regional economic potential will include
and global competitiveness. attracting quality investment in niche areas. Rural development will be
intensified by expanding the provision of infrastructure and services,
Greater emphasis will be given on building resilient transport and logistics and unlocking local economic potential. Opportunities from subregional
infrastructure. Among the strategies that will be implemented include cooperation will be optimised to accelerate development in the border
strengthening governance and connectivity, improving maintenance as areas. Meanwhile, the development of Sabah and Sarawak will be
well as increasing the competitiveness of logistics and trade facilitation. accelerated by intensifying economic activities and improving access to
In this regard, the Big Bold Strengthening Public Transport Network is basic infrastructure. These efforts will reduce imbalances among regions
introduced to provide better accessibility and connectivity. Initiatives and states, while promoting equitable growth and inclusivity as well as
enhancing the wellbeing of the rakyat.
Conclusion
The MTR of the Twelfth Plan highlights the progress for 2021-2022, outlines issues and
challenges that need to be addressed as well as pave the way for 2023-2025 towards
a sustainable, prosperous and high-income nation. During the review period, economic
growth was commendable despite the challenging environment. The implementation
of all development initiatives will need to be accelerated in ensuring domestic and
global challenges are addressed effectively. The successful implementation of the 17
Big Bolds is imperative in driving the achievement of the set targets, in line with the
‘Ekonomi MADANI: Memperkasa Rakyat’ aspiration.
Chapter
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-1

Future-Proofing Economy

Introduction 1-2

Progress, 2021-2022 1-3

World Economy 1-3
Domestic Economy 1-3

Issues and Challenges 1-9

Slow Structural Economic Transition 1-9
Disruption in Global Supply Chain 1-9
Continued Growth Disparity between Regions and States 1-9
Elevated Inflation 1-9
Risks of Population Dynamics 1-9
Limited Fiscal Space 1-9

Way Forward, 2023-2025 1-12

World Economic Outlook 1-12
Domestic Economic Outlook 1-12
Accelerating Structural Economic Reforms 1-15
Strengthening External Trade in the Global Supply Chain 1-17
Optimising Economic Potential of Regions and States 1-17
Managing Inflation 1-17
Improving Federal Government Financial Position 1-18

Conclusion 1-19
 Mid-Term Review of the Twelfth Malaysia Plan
1-2 Chapter 1: Future-Proofing Economy

Introduction
During the review period of the Twelfth Malaysia Plan, 2021-2025 (Twelfth Plan), the
average annual growth rate of the national gross domestic product (GDP) increased by
5.9%, higher than the original target of between 4.5% and 5.5% per annum, despite a
challenging environment. The Malaysian economy rebounded and recorded a remarkable
growth of 8.7% in 2022 as compared to 3.3% in 2021, in line with the recovery of the world
economy. Labour market conditions also improved, leading to an increase in employment.
The current account of the balance of payments (BOP) remained in surplus, supported
by strong external demand. In addition, the Federal Government fiscal deficit continued
to narrow. The wellbeing of the rakyat improved as reflected by the Malaysian Wellbeing
Index (MyWI) in 2021, in line with the economic progress. Meanwhile, domestic inflation
was elevated due to higher global commodity prices, but remained manageable. Despite
the overall positive performance, global and domestic issues and challenges remain. Global
risks include geopolitical tensions, global trade and supply chain disruptions as well as
higher commodity prices and inflation. On the domestic front, among the issues include
slow structural economic transition, continued growth disparity between regions and
states, and limited fiscal space.

Moving forward, to future-proof the economy, emphasis will be given on economic

transformation by enhancing competitiveness and ensuring sustainable growth. Efforts
will be intensified in accelerating structural economic reforms, strengthening external
trade in the global supply chain, optimising economic potential of regions and states,
and managing inflation. In addition, strengthening fiscal governance, expanding revenue,
retargeting subsidies and enhancing budget management as well as improving debt and
liabilities management will also be emphasised towards enhancing fiscal sustainability and
credibility. The Government will continue to emphasise on economic growth, inclusivity
and sustainability towards achieving the aspiration of ‘Ekonomi MADANI: Memperkasa
Rakyat’ and becoming a high-income nation.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-3

Progress, 2021-2022
World Economy Domestic Economy
The world economy grew by 4.9% per annum during the review period, During the review period, potential output expanded by 3.8% per annum.
indicating global economic recovery from the aftermath of the COVID-19 The GDP grew by 5.9% per annum, contributed by better labour productivity
pandemic. The recovery was supported by the implementation of economic growth of 3.7% per annum. Private sector remained the driver of growth
stimulus packages, rollout of vaccination programmes and reopening of supported by accommodative monetary and expansionary fiscal policies.
economies worldwide. Emerging markets and developing economies grew Labour market conditions improved, returning to full employment level.
by 5.4% per annum, while advanced economies rose by 4%. Growth in Higher labour demand contributed to better salaries and wages, particularly
advanced economies was led by the United States (US), driven by greater in the manufacturing and services sectors. However, inflation elevated to
business fixed investment as well as research and development spending. 3.3% in 2022. Gross national income (GNI) per capita in current prices
World trade expanded by 7.9% per annum, mainly supported by stronger was higher at RM52,968 (US$12,035) in 2022 compared with RM42,838
performance of emerging markets and developing economies. Meanwhile, (US$10,191) in 2020. The overall wellbeing of the rakyat improved,
world inflation increased by 6.7% per annum, following prolonged supported by better progress in both economic and social aspects.
Russia-Ukraine conflict and high commodity prices. During the review period, seven out of the 12 macroeconomic targets
were achieved, four are on track, while the remaining one is lagging, as
shown in Exhibit 1-1. In addition, four out of the eight multidimensional
goals were achieved, as shown in Exhibit 1-2.
 Mid-Term Review of the Twelfth Malaysia Plan
1-4 Chapter 1: Future-Proofing Economy

Exhibit 1-1
Performance of Selected Macroeconomic Targets
Consumption and Investment

5.8% 6.4% 3.8% 4.9% 2.6% -3.3%

2021-2025 2021-2022 2021-2025 2021-2022 2021-2025 2021-2022

Average Growth of Average Growth of Average Growth of

Real Private Consumption Real Private Investment Real Public Investment

RM258 RM243 RM80 RM70

3.7% 5.5% billion billion billion billion

2021-2025 2021-2022 2021-2025 2021-2022 2021-2025 2021-2022

Average Growth of Average Private Investment Average Public Investment

Real Public Consumption in Current Prices in Current Prices
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-5

International Trade

RM191 RM256
5.0% 25.5% billion billion

2021-2025 2021-2022 2025 2022

Average Growth of Gross Exports Trade Balance

RM44 RM55 2.2% 3.2%

billion billion to GNI to GNI

2025 2022 2025 2022

Current Account of Balance of Payments

Unemployment Inflation Fiscal Balance

-3.5%
4.0 %
3.9 %
2.7 %
2.9 %
to -5.6%
-3.0%
2025 2022 2021-2025 2021-2022 2025 2022

Unemployment Rate Average Annual Inflation Rate Percentage of

Fiscal Balance to GDP
 Mid-Term Review of the Twelfth Malaysia Plan
1-6 Chapter 1: Future-Proofing Economy

Exhibit 1-2
Performance of Multidimensional Goals
Goals Performance Goals Performance

4.5% to 5.5% RM57,882 RM

GDP growth per annum 5.9% GNI per capita in 2025 52,968

2021-2022 2022

3.6% 40%
Labour productivity growth 3.7 % Share of compensation of 32.4%
per annum employees of GDP in 2025

2021-2022 2022

RM10,065 1:2.5
RM
Average monthly
8,479
GDP per capita gap between 1:1.9
household income in 2025 Central and Sabah regions in 2025

2022 2022

45% In 1.2%
Reduction in GHG emissions
progressb Malaysian Wellbeing Index growth 1.3%
intensity to GDP by 2030a per annum

2021

Notes: a Based on emission intensity in 2005.

b
Latest data will be published in the Biennial Transparency Report Malaysia in 2024.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-7

Achievement of Key Economic Indicators, 2021-2022

Productivity

● Average contribution of multifactor productivity (MFP) to GDP stood at 36.9%

● Labour productivity per worker increased by 3.7% per annum to RM95,858 in 2022 from RM89,179 in 2020

● Labour productivity in the manufacturing sector surged by 5.4% per annum, supported by higher external demand

● Share of compensation of employees (CE) of GDP registered 32.4% in 2022 with the services sector remaining as the largest
contributor

Aggregate Demand

● Private consumption grew by 6.4% per annum, contributed by pent-up demand, improved labour market conditions and continued
policy support

● Private investment increased by 4.9% per annum or an average of RM243 billion per year in current prices, supported by the
acquisition of new machinery and equipment (M&E) and continued investment in physical structures

● Public consumption rose by 5.5% per annum, driven by higher spending on supplies and services

● Public investment contracted by 3.3% per annum. Average public investment recorded RM70 billion per year in current prices, mainly
from infrastructure projects, such as the East Coast Rail Link, Electrified Double Track Gemas-Johor Bahru and Pan Borneo Sabah and
Sarawak Highways

● Net exports contracted by 2.5% per annum, as imports growth outpaced exports due to strong household spending and higher
investment activity

Sectoral Output

● Services sector expanded by 6.5% per annum, led by stronger growth in consumer-related activities

● Manufacturing sector increased by 8.8% per annum, driven by robust demand for electrical and electronics (E&E) products

● Mining sector grew by 1.8% per annum, supported by higher natural gas production

● Agriculture sector contracted marginally by 0.02% per annum, due to weaker oil palm output

● Construction sector declined by 0.2% per annum, attributed to slower activity in the civil engineering and residential building
subsectors
 Mid-Term Review of the Twelfth Malaysia Plan
1-8 Chapter 1: Future-Proofing Economy

Gross Domestic Product by State

● All states recorded positive growth with two states growing higher than national GDP
o Pulau Pinang grew by 10% and Selangor by 8.5%, driven by the services and manufacturing sectors

● Selangor, Federal Territory (FT) of Kuala Lumpur, Johor, Sarawak and Pulau Pinang remained as the top five contributors of GDP,
constituting 67%

International Trade and Balance of Payments

● Gross exports grew by 25.5% per annum, driven by E&E, petroleum and chemical products

● Gross imports increased by 27.1% per annum, following higher demand of intermediate goods for the manufacturing sector and capital
goods for investment activities

● Current account remained in surplus at RM55.1 billion or 3.2% to GNI in 2022, supported by the substantial surplus in the goods
account

Federal Government Financial Position

● Fiscal deficit as percentage to GDP reduced to 5.6% in 2022, attributed to proactive fiscal reforms and better debt management

● Share of Federal Government revenue to GDP increased to 16.4% in 2022

● Operating expenditure (OE) grew by 14.2% per annum to RM292.7 billion in 2022

● About 94% of the RM144.6 billion development expenditure (DE) allocation was spent

● Federal Government debt stood at RM1,079.6 billion or 60.3% to GDP in 2022

Inflation and the Labour Market

● Average inflation rate increased to 2.9% per annum, mainly attributed to higher food and non-alcoholic beverages, restaurants and
hotels as well as transport components

● Labour market conditions improved further with employment growth at 2.2% in 2022

● 327.6 thousand new jobs created with unemployment rate of 3.9% in 2022

Malaysian Wellbeing Index

● MyWI grew by 1.3% from 117.7 points in 2020 to 119.2 points in 2021
o Economic wellbeing subcomposite index increased by 1% to 127.2 points, due to better income and distribution, improved
communication and higher quality education
o Social wellbeing subcomposite index improved by 1.4% to 114.7 points, attributed to governance, culture and public safety
components
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-9

Issues and Challenges

During the review period, various measures were undertaken to strengthen economic resilience. Nevertheless, downside risks emanating from global
and domestic fronts remain. Among the domestic issues and challenges include slow structural economic transition, disruption in global supply chain,
continued growth disparity between regions and states, elevated inflation and limited fiscal space. In addition, the changing population dynamics
continue to remain a challenge for economic growth, as shown in Box 1-1.

Slow Structural Economic

Transition I
Disruption in Global
● Lack of high value-added activities
II Supply Chain
● Inadequate quality investment
● Slower exports growth
● Slow adoption of advanced technology and digitalisation
● Deeper fragmentation among economies
● Lack of facilitative business ecosystem
● Low leverage on trade agreements
● Low productivity

● Lack of skilled talent

Elevated Inflation
Continued Growth Disparity IV
● High global commodity prices

between Regions and States III ● Shortage in food supply

● Volatility of exchange rate

● Ineffectiveness in maximising development opportunities
in regions and states, including border areas

● Inadequate basic infrastructure in less developed states

● Lack of private sector participation in subregional cooperation

Limited Fiscal Space
VI
● Narrow revenue base

● Inefficient subsidies allocation

Risks of Population Dynamics ● Ineffective management and monitoring of the
V Federal Government expenditure
● Risk of slower economic growth
● Poor management and monitoring of debt and
● Risk of declining working age population
liability
● Increase in fiscal burden, including cost of healthcare,
long-term care and social protection
 Mid-Term Review of the Twelfth Malaysia Plan
1-10 Chapter 1: Future-Proofing Economy

Box 1-1 productivity, insufficient retirement saving, higher fiscal commitment, rise
in non-communicable diseases (NCDs) and impact on long-term care (LTC)
Socioeconomic Development for an and social protections.
Aged Nation Economic and Fiscal Implications
Malaysia towards an Aged Nation Declining Labour Force Participation
Population ageing is a global phenomenon in which older persons constitute
a high percentage of the total population. Following the demarcation The total fertility rate (TFR) decreased from 4.9 births per woman in 1970
adopted by the United Nations World Assembly on Ageing in Vienna to 1.61 in 2022 and expected to reduce further in the future. Meanwhile,
1982, older persons are defined as individuals aged 60 years and above. the proportion of those below the working age population declined from
Based on this definition, Malaysia will become an aged nation in 2030 45% to 23% in the same period, and this may influence economic and
when the share of older persons reaches 15% of the total population. productivity growth. The decline in the working age population will increase
Meanwhile, the United Nations defines the ageing level of a nation into demand from industries to hire foreign labour.
three categories, namely as ageing nation when the population aged 65
Insufficient Retirement Saving
and above reaches 7% of the total population, aged nation at 14%, and
super-aged nation at 20%. Based on this definition, Malaysia became Sufficient retirement savings are crucial for older persons to sustain their
an ageing nation in 2021 and is expected to become an aged nation by quality of life and wellbeing. Older persons with insufficient savings are
2044 (World Bank, 2023). The Malaysian population by age group is as vulnerable and face difficulties to obtain essential services, such as utilities,
shown in Figure 1. healthcare and LTC. In addition, higher cost of living and lack of family
support increase the probability of older persons falling into poverty.
The transition period of 23 years towards an aged nation for Malaysia The savings during the working years will enable the older persons to
is at a faster pace if compared with most Organisation for Economic draw down it for consumption at retirement age. In 2022, about 52%
Co-operation and Development (OECD) countries, which took about 50 of Employees’ Provident Fund (EPF) members have savings of less than
to over 100 years. However, the transition period is of a similar pace to RM10,000, whereas 22% have less than RM1,000. Meanwhile, out of
the People’s Republic of China, Japan and Republic of Korea. In moving 15.7 million members, only 8.4 million members have active accounts.
towards aged nation, Malaysia is expected to face several challenges such This low savings level indicates that most Malaysians will be vulnerable
as slower economic growth, declining labour force participation, lower at the older age.

Figure 1
Malaysia: Population by Age Group, 1970-2050
Age Group Age Group Age Group
70+ 70+ 70+
65 - 69 65 - 69 65 - 69
60 - 64 60 - 64 60 - 64
55 - 59 55 - 59 55 - 59
50 - 54 50 - 54 50 - 54
45 - 49 45 - 49 45 - 49
40 - 44 40 - 44 40 - 44
35 - 39 35 - 39 35 - 39
30 - 34 30 - 34 30 - 34
25 - 29 25 - 29 25 - 29
20 - 24 20 - 24 20 - 24
15 - 19 15 - 19 15 - 19
10 - 14 10 - 14 10 - 14
5-9 5-9 5-9
0-4 0-4 0-4

0 1,000 2,000 3,000 4,000 5,000 0 1,000 2,000 3,000 4,000 5,000 0 1,000 2,000 3,000 4,000 5,000

Population (‘000) Population (‘000) Population (‘000)

1970 1980 1990 2000 2010 2020 2030 2040 2050

Source: Department of Statistics Malaysia

1
Preliminary data.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-11

Higher Fiscal Commitment in social assistance disbursement as well as expanding the coverage of
contributory for retirement income, especially for women and informal
Government spending on public healthcare, especially age-related
workers, including unpaid carers. Insufficient retirement savings and
expenditures is estimated to be at 4.3% to GDP in 2050 (World Bank,
inefficient financial management will affect the income security, which
2023). This will lead to higher fiscal commitment in providing healthcare
may increase the probability of older people to fall into poverty.
services and assistance for the elderly. Meanwhile, older persons without
sufficient savings and social protection are at greater risk of poverty, Preparing towards an Aged Nation
therefore increasing the need for Government assistance. The lower labour
force participation and rising number of retirees may reduce Government In addressing the risks and challenges of population ageing, a national ageing
revenue from labour income, limiting the Government expenditure in blueprint will be developed to mitigate risks and capitalise on potential
funding social services and causing fiscal challenges and budget deficit. opportunities. The blueprint will outline policies, strategies and action plans
In 2022, tax revenue from individual workers contributed about 16% to in preparing towards a healthy, productive and inclusive aged nation.
total tax revenue. In addition, as life expectancy increases, the pension
payment will continue to be a pressure on Government expenditure, which Economic Opportunities
is projected to reach 4.4% to GDP by 2050. In promoting older persons to remain in the workforce, incentives will be
given to employ older workers with flexible working arrangements and
Social Implications provide a senior citizen-friendly working environment. Experienced older
persons with soft skills and expertise will be able to continue contributing
Increase in Intergenerational Gap
to the economy, and this will promote intergenerational learning. In addition,
Changing the mindset, culture and behaviour in society is among the technology and digitalisation will be further enhanced and leveraged to
main challenges in preparing the country towards an aged nation. In this increase the opportunity for older people to continue working. Furthermore,
regard, the increase in the intergenerational gap may influence the changes to balance the labour market following the shrinking of the working age
in values within society, including the value of respect and compassion population, a comprehensive foreign labour policy will be improved to
for the elderly. Besides, the intergenerational relationships and support ensure adequate labour supply in sustaining economic growth.
between generations are deteriorating in line with modernisation and
technological advancements. Furthermore, low emphasis on education in The care economy will be leveraged to create an inclusive, efficient and
gerontology may hamper the efforts to bridge the intergenerational gap. sustainable LTC industry. The creation of a conducive market ecosystem
will attract private investment, provide quality care and boost the
Impact on the Healthcare System
participation of women in the labour market. In addition, investment in
Wellbeing of the rakyat has improved as a result of advancement in healthcare research, development, commercialisation and innovation (R&D&C&I) will
and medical innovation. However, the rapid increase in NCDs such as be promoted to enhance silver economy, especially in the production of
diabetes, heart disease and cancer, poses a challenge to the healthcare elderly-friendly products and services. Meanwhile, progressive taxes on
system, particularly on NCDs prevention and management among older unhealthy products will be explored to promote healthy ageing.
people. In addition, there are also new challenges in meeting the specific
needs of older people, such as dementia, palliative care, frailty and mental Social Wellbeing
health. Without healthcare reforms, an increasing older population will Long-term intervention as well as suitable policies and incentives will
pose a significant pressure on the healthcare system. be strengthened to slow down the declining fertility rates in addressing
the low population growth rate. Intergenerational gaps will be reduced,
Impact on Long-Term Care
while noble values, such as respect, compassion and responsibility will
A rising share of older people and smaller family size will increase the be further fostered among younger generations. A comprehensive action
need to expand the formal aged LTC system. As the number of young plan will be developed to strengthen and transform healthcare service
workers and women participating in the labour force increase, providing delivery and promote healthy longevity, particularly for the elderly. In
informal care for the elderly becomes a challenge, which may result in the addition, an LTC policy that incorporates traditional family support into
increase of older persons living alone or being abandoned. In addition, community-based care will be explored to provide better care for the
limited public financing, inadequate human resources as well as unclear elderly. This effort will increase the opportunity for women to participate
standards for attracting, retaining and incentivising professionals and care in the labour market. Meanwhile, the national social protection system
workers create a stumbling block to a sustainable LTC system. will be reformed by harmonising social assistance, social insurance and
labour market intervention to ensure a holistic protection and leaving no
Inadequate Coverage of Social Protection
one behind. Inclusive affordable housing will also be provided through
The need to provide adequate social protection for the rakyat continues retirement villages to foster cohesive communities and create a liveable
to be a challenge as the population ages and life expectancy increases. environment. Provision of infrastructure and basic amenities will also be
These include the challenges of reducing the inclusion and exclusion errors improved to cater for the needs and comfort of the elderly.
 Mid-Term Review of the Twelfth Malaysia Plan
1-12 Chapter 1: Future-Proofing Economy

Way Forward, 2023-2025 Table 1-1

World Economic Outlook,
2021-2025
In the remaining Twelfth Plan period, efforts will be intensified in accelerating
structural economic reforms, strengthening external trade in the global
supply chain, optimising economic potential of regions and states, and
managing inflation. In addition, strengthening fiscal governance, expanding Average Annual Growth Rate, %
revenue, retargeting subsidies and enhancing budget management as well as
Item Actual Outlook
improving debt and liabilities management will also be emphasised towards
enhancing fiscal sustainability and credibility. These strategies will propel 2021-2022 2023-2025 2021-2025
Malaysia in achieving a high-income nation and ultimately becoming among
World Output 4.9 3.1 3.8
the top 30 economies in the world.
Advanced Economies 4.0 1.6 2.6

World Economic Outlook Emerging Market and

Developing Economies
5.4 4.0 4.6

World economy is projected to grow by 3.1% per annum in the remaining World Trade 7.9 3.1 5.0
Twelfth Plan period, driven by emerging markets and developing economies,
World Consumer Prices 6.7 5.3 5.8
particularly the People’s Republic of China. Meanwhile, the US economy
will lead growth among advanced economies, as shown in Table 1-1. World Commodity Prices
trade is expected to moderate by 3.1% per annum, attributed to several
Nonfuel1 16.9 -2.3 5.4
factors that have dampened global demand. High inflation and cost of living,
tighter monetary policy, global banking system turmoil, geopolitical tensions, Crude Oil 51.9 -11.4 9.9
resurgence of COVID-19 cases and emergence of a new global health threat
Crude Oil Price
are expected to weigh on world economic outlook. 82.8 69.7 74.9
(US$ per barrel)2
Notes: 1 Average based on world commodity import weights.
2
The average of UK Brent, Dubai Fateh and West Texas Intermediate crude oil
prices.
Source: International Monetary Fund, World Economic Outlook (April and July 2023)

Domestic Economic Outlook

Potential output is projected to expand between 5.5% and 6% per annum,
attributed to higher productivity. The economy is expected to grow between
5% and 5.5% per annum driven by domestic demand, particularly private
sector expenditure, as shown in Exhibit 1-3. Private consumption is anticipated
to increase at an average annual rate of 6.1%. The increase will be supported
by improvement in labour market conditions with the economy to remain
in full employment and inflation rate is expected to remain manageable.
On the supply side, the services and manufacturing sectors will remain
as the main sources of growth. Meanwhile, the construction sector is
expected to rebound supported by stronger growth in the civil engineering
and residential building subsectors. GNI per capita in current prices is
projected to increase by 4.6% per annum to RM61,000 (US$14,250) in 2025,
as shown in Exhibit 1- 4.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-13

Exhibit 1-3
Selected Macroeconomic Targets
Consumption and Investment

Average Growth of
6.2% Real Private 5.8% Average Growth of
Real Private Investment
1.0% Average Growth of
Real Public Investment
Consumption

2021-2025 2021-2025 2021-2025

Average Private Average Public

Average Growth of RM278 RM78
3.2 %
Real Public Consumption billion
Investment in
billion
Investment in
Current Prices Current Prices

2021-2025 2021-2025 2021-2025

International Trade

RM51
billion

Average Growth of RM290 Current Account of the

11.9% Gross Exports billion
Trade Balance 2025
Balance of Payments

2021-2025 2025 2.5%

to GNI

2025

Unemployment Inflation Fiscal Balance

2.8% Average Annual -3.5% Percentage of Fiscal

3.3 % Unemployment Rate to Inflation Rate to Balance to GDP
3.8% -3.0%
2025 2021-2025 2025
 Mid-Term Review of the Twelfth Malaysia Plan
1-14 Chapter 1: Future-Proofing Economy

Exhibit 1- 4
Multidimensional Goals, 2021-2025

RM10,065 3.7%
5.0% to 6.0% RM61,000
Average monthly household Labour productivity growth
GDP growth per annum GNI per capita in 2025
income in 2025 per annum

1:1.9 1:2.1
Up to 45% 40% Central and Central and 1.4%
Reduction in GHG emissions Share of compensation of Sabah Eastern Malaysian Wellbeing Index
intensity to GDP by 2030 based employees
GDP per capita gap between growth per annum
on emission intensity in 2005 of GDP in 2025
regions in 2025
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-15

Accelerating Structural Economic Table 1-2

Reforms Gross Domestic Product by Kind

of Economic Activity
Intensifying High Value-Added Activities
Average Annual Growth Rate, %
Sectoral reforms will be accelerated by boosting the high growth high
value (HGHV) industries related to energy, technology and digitalisation, Item Progress Revised Target
E&E, agriculture and agro-based, and non-radioactive rare earths. These
five HGHV industries have been identified as part of the Big Bolds in the 2021-2022 2023-2025 2021-2025
Mid-Term Review of the Twelfth Plan. The implementation of the reform
GDP 5.9 5.0~5.5 5.0~6.0
through these Big Bolds is expected to support the targeted growth of all
sectors. Agriculture -0.02 2.7 1.6

The services sector is expected to grow at an annual average rate of 5.7%, Mining and Quarrying 1.8 3.1 2.6
particularly led by consumer-related activities such as in retail trade,
accommodation, and food and beverage subsectors, as shown in Table 1-2. Manufacturing 8.8 4.9 6.4
In this regard, strategic measures will be intensified to expedite the recovery
Construction -0.2 6.7 3.9
of the tourism industry, rejuvenate the creative industry and strengthen the
development of halal industry in optimising the potential of these industries. Services 6.5 5.7 6.0
Efforts will also be undertaken to increase the contribution of the modern
services subsector by focusing on the ICT services industry and leveraging on
The manufacturing sector is expected to grow by 4.9% per annum. Priority will
financial technology, as one of the initiatives under the Big Bold Digital- and
be given to accelerate the transition towards new sources of growth within
Technology-based HGHV Industry. In addition, strategies will be enhanced
the sector, particularly in E&E. Measures will be undertaken to intensify the
to elevate sustainable financing, including Islamic finance. Meanwhile, the
production of high value-added and complex products by fostering advanced
electricity subsector will be enhanced by increasing renewable energy
front-end manufacturing activities and strengthening the overall ecosystem,
(RE) capacity with the target of 31% in 2025, in line the Big Bold HGHV
particularly in integrated circuit (IC) design, IC packaging, wafer fabrication,
Industry based on Energy Transition. In this regard, emphasis will be given on
embedded system, testing service and design engineering. These are part of
increasing uptake of solar, hydropower, and bioenergy as well as expediting
the initiatives under the Big Bold High Value E&E HGHV Industry. Efforts
development of new and nascent energy resources, particularly hydrogen.
will also be undertaken on strengthening knowledge-intensive industries,
including the M&E, petroleum as well as chemicals and chemical products
to support the growth. In addition, low carbon mobility initiative will be
enhanced through production and installation of energy-efficient vehicles,
including electric and hybrid vehicles. Environmental, social and governance
(ESG) adoption will be promoted to achieve the aspiration of net-zero
greenhouse gas (GHG) emissions as early as 2050.

The agriculture sector is projected to grow moderately by 2.7% per

annum, mainly due to continuously low production of crude palm oil.
Greater efforts will be undertaken to transform the agrofood subsector
as one of the initiatives under the Big Bold HGHV Agriculture and
Agro-Based Industry. Measures will be undertaken to promote investment
and increase productivity of the agrofood subsector by utilising smart farming
technologies, increasing high value crops and optimising food production
areas. The implementation of these measures is expected to increase the
share of agrofood subsector to approximately 57% of the total agriculture
value-added in 2025 towards achieving food security.
 Mid-Term Review of the Twelfth Malaysia Plan
1-16 Chapter 1: Future-Proofing Economy

The construction sector is expected to grow at an annual average rate of 6.7%, involvement of higher learning institutions, research institutes and the
mainly driven by the civil engineering and residential building subsectors. private sector to accelerate research, development, commercialisation and
Acceleration of public infrastructure projects will continue to support the innovation (R&D&C&I) activities. These initiatives will attract higher quality
growth of this sector. In addition, the development of affordable housing investment, particularly focusing on advanced technology.
in strategic locations under several initiatives, including Residensi Wilayah,
Program Perumahan Rakyat and Perumahan Inklusif MADANI will accelerate Public investment is expected to grow by 3.9% per annum or an average of
growth in the residential buildings subsector. Efforts will be intensified to RM83 billion per year in current prices attributed to the Federal Government
expand the implementation of Industrialised Building System and Building DE and capital expenditure by non-financial public enterprises. The
Information Modelling to increase productivity. The implementation of Government will continue to implement programmes and projects to expand
the Government Green Procurement (GGP) Works initiative will also be the productive capacity of the economy. These projects include the opening
expanded to promote utilisation of green construction products and foster of new high-tech industrial estates in Kimanis and Kota Belud, Sabah and
sustainable growth. Chuping Valley Industrial Area in Perlis, as well as expansion of Samajaya
High-Tech Park in Sarawak and Tok Bali Industrial Park in Kelantan, besides
The mining sector is expected to grow by 3.1% per annum, mainly driven the construction of Central Spine Road and implementation of Pelan Jalinan
by the increase in natural gas production. In this regard, efforts will be Digital Negara (JENDELA).
undertaken to boost production from the new facilities and projects in the
pipeline to support growth. In addition, measures will be undertaken to Boosting Productivity
enhance policy framework and develop a new business model to promote
growth in the rare earths industry as one of the initiatives under the Big Efforts will be intensified to accelerate productivity in enhancing quality
Bold Rare Earths HGHV Industry. growth. MFP is expected to contribute 42.8% to GDP growth, with labour
productivity growth of 3.8% per annum in the remaining Plan period. The
Attracting Higher Quality Investment collaboration between the government, private sector and academia will
be strengthened to further increase productivity at the national, state,
Private investment is expected to grow by 6.4% per annum or an average of sectoral and enterprise levels. The planning mechanism at the national
RM301 billion per year in current prices, supported by faster implementation level will be improved by enhancing the governance of the productivity
of new and ongoing projects across key economic sectors. Efforts will be council and related committees to enable better monitoring of the Malaysia
intensified to promote technology-linked investment in HGHV industries, Productivity Blueprint (MPB) targets. Meanwhile, the ecosystem at the
including E&E, smart farming and RE. In addition, firms will be encouraged state, sectoral and enterprise levels will be strengthened. In order to ensure
to increase investment in M&E to expand capacity and productivity. agility, efficiency and effectiveness of regulations, the establishment of
Furthermore, existing investment initiatives will be reviewed to attract MyMudah units will be expanded at all levels of governments as well as
quality investment, which utilise frontier technologies and offer technology business associations.
transfer. The private sector will be encouraged to intensify green investment
in business operations and premises, including for the development and Efforts will be undertaken to address talent mismatch, boost labour
utilisation of RE sources. productivity and improve income, which is expected to increase the
share of CE of GDP at 40% in 2025 and eventually at 45% within
The ecosystem and regulations to enable more effective public service 10 years. These efforts will be further supported by the introduction of a
delivery and facilitate ease of doing business will be further strengthened progressive wage model, which is a crucial policy tool to accelerate wage
through the Special Task Force to Facilitate Business (PEMUDAH). growth. Meanwhile, demand-driven talent development as well as upskilling
In addition, a comprehensive review and reform of investment policies, and reskilling programmes will be intensified. In addition, measures will
including on incentives and institutions will be undertaken under the National be implemented to strengthen R&D&C&I activities. The productivity gap
Investment Aspirations. In this regard, emphasis will be given to attract between large firms and micro, small and medium enterprises (MSMEs) will
quality investment that promote the development of complex products and be narrowed by adopting technology and digitalisation. Access to financing
services, that create skilled and high-paying jobs. Firms will be encouraged will also be improved in supporting innovation and skills development. The
to invest in advanced technologies, such as blockchain, artificial intelligence successful initiatives under the existing productivity nexus will be replicated
and big data analytics. Meanwhile, the Government will facilitate greater for the new nexus.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-17

Strengthening External Trade in Optimising Economic Potential of

the Global Supply Chain Regions and States
Improving Exports Potential Accelerating Socioeconomic Development
Gross exports is projected to moderate by 3.7% per annum, in line with the In the remaining Twelfth Plan period, growth of the regions and states is
global trade prospects. The expected economic recovery of major trading expected to be within target. Economic potential of the regions and states
partners will support Malaysian exports, despite global headwinds and will be further strengthened to attract more quality investment in niche
geopolitical conflict. In this regard, trade and investment will be enhanced by areas by promoting adoption of advanced technology in the upstream and
leveraging trade agreements. The National Trade Blueprint (NTBp) will focus downstream activities. In this regard, Federal and state regional development
on improving export facilitation, enhancing export capacity and expanding agencies will be encouraged to streamline development priorities by
market access to ensure conducive trade ecosystem. Concerted efforts will leveraging uniqueness and available resources in each state. In addition,
be undertaken to enhance participation in the global supply chain, advance basic infrastructure provisions in less developed states will be scaled-up
regional integration and strengthen industrialisation initiatives. Meanwhile, and talent development programmes will be intensified to ensure equal
Malaysian products and services will be promoted globally to increase development opportunities and improve regional balance.
exports market. In addition, a framework for establishing Malaysia as a
regional gas market hub will be incorporated in the natural gas roadmap.
Efforts will also be undertaken in developing electricity exchange system
Leveraging Opportunities from
to enable RE trading. Subregional Cooperation
Subregional cooperation will be leveraged to optimise economic potential
Reducing Imports Reliance and attract investment into the subregions. Priority will be given to enhance
economic activities within the subregions by providing better infrastructure
Gross imports is projected to grow by 3.6% per annum due to steady increases
and facilities. In addition, cross-border trade activities will be intensified
of intermediate and capital goods in supporting manufacturing and investment
through a more active participation of local stakeholders, especially the
activities. Focus will be given to enhance domestic industries and create
private sector. The socioeconomic development in border areas will be
higher demand for locally produced goods to reduce reliance on imported
increased by improving security facilities and developing border towns.
goods. In this regard, existing import policies will be reviewed, particularly
These will contribute in narrowing the growth disparity and increase the
to ensure food security and safety as well as boost agrofood production.
wellbeing of the rakyat in the regions and states.
Overall, trade balance is projected to reach RM290 billion in 2025.

Sustaining Current Account Surplus of the Managing Inflation

Balance of Payments Containing Price Pressure and Easing the
The current account of the BOP is expected to remain in surplus at 2.5% Burden of the Rakyat
to GNI in 2025 contributed by the continued surplus in the goods account
and lower deficit in the services account. The improvement in the services Inflation is expected to be between 2.8% and 3.8% per annum, attributed
account will be supported mainly by higher travel receipts following to the gradual implementation of a targeted subsidy, stronger domestic
aggressive tourism promotions. Greater emphasis will be placed on improving demand and improvement in the labour market. Efforts will be strengthened
the income accounts by encouraging repatriation of profits by Malaysian to contain inflationary pressures by increasing the stocks of various food
companies abroad and reducing the outflow of remittances. items as well as improving distribution efficiency in ensuring undisrupted
 Mid-Term Review of the Twelfth Malaysia Plan
1-18 Chapter 1: Future-Proofing Economy

supply. In addition, concerted measures will be undertaken in addressing measures will strengthen fiscal governance and widen fiscal space
price issues to improve purchasing power and wellbeing of the rakyat, towards achieving a fiscal deficit target between 3.5% and 3% to GDP by
especially vulnerable groups. In easing the burden of the rakyat, the existing 2025.
mechanism will be reviewed by providing a comprehensive and inclusive
social protection system. Measures will be undertaken to develop an
Expanding Revenue
integrated database to improve subsidy targeting mechanism, streamline
delivery channels and enable implementation of targeted programmes, Revenue management will be enhanced to enable better collection,
including the introduction of progressive wage. as one of the initiatives under the fiscal Big Bold. The initiatives that
will be implemented include widening the tax base as well as adopting
Strengthening Enforcement and Consumer technology and digitalisation, among others by diversifying tax resources
as well as introducing a special voluntary tax disclosure programme and
Awareness an electronic invoicing system. In addition, enforcement activities will be
intensified to enhance tax compliance and curb leakages. These initiatives
Monitoring of price control will be intensified, particularly during festive are expected to enhance revenue towards achieving fiscal deficit target.
seasons to ensure fair price and avoid profiteering activities. Data-driven
mindset will be inculcated to help consumers make better decisions. Consumer
awareness will continue to be emphasised to ensure that consumer rights Retargeting Subsidies and Enhancing
are protected. This include advocating greater consumerism and providing Budget Management
access to information on best and competitive prices of goods and services
through various platforms. In addition, consumer related associations and Measures will be undertaken to ensure prudent fiscal spending. A more
civil society organisations will be empowered. targeted subsidy mechanism will be identified to ensure the right target
groups benefit from Government assistance. In this regard, a comprehensive

Improving Federal Government household database, Pangkalan Data Utama (PADU), as one of the initiatives
under the Big Bold Targeted Subsidy, will be developed as central reference
Financial Position for assistance targeting. Meanwhile, implementation of development
projects will be monitored thoroughly to reduce spending leakages and

Strengthening Fiscal Governance wastages. The basic DE will be increased to at least 60% of the total annual
DE allocation. Efforts will be undertaken to repurpose unutilised funds of
government-linked companies (GLCs) and statutory bodies to optimise
Fiscal management will be strengthened by establishing a legislation
available resources. This will ensure efficiency of public expenditure and
on fiscal responsibility. This is one of the initiatives under the Big Bold
optimisation of resources for development purposes.
Fiscal Sustainability and Financial System. Efforts will be intensified to
expand revenue base, streamline tax reliefs, reduce leakages and spending
wastages as well as improve debt management. In addition, Medium Improving Debt and Liabilities
Term Revenue Strategy (MTRS) framework will be developed to increase
Management
Government revenue, review tax incentives and encourage data sharing
among government agencies. Expenditure efficiency will be improved Measures will be implemented in improving debt and liabilities management.
by retargeting subsidy, developing a single window budget application In this regard, focus will be given in diversifying debt portfolio and realigning
and enhancing the effectiveness of Public Expenditure Review (PER). the debt issuance schedules of Government and GLCs. In addition, assessment
Furthermore, the Debt Management Committee will be reactivated of risks and liabilities exposure on the commitments of government
to monitor the management of debt and liability. In addition, efforts guarantees and PPP projects will be improved. These measures will ensure
will be undertaken to develop new acts on debt and procurement debt remains manageable and liabilities exposure contained towards fiscal
as well as review public private partnership (PPP) guideline. These sustainability and credibility.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 1: Future-Proofing Economy 1-19

Conclusion
During the review period of the Twelfth Plan, the economy increased by 5.9% surpassing
the original target. Despite the overall positive performance, domestic issues and challenges
remain, such as slow structural economic transition, disruption in global supply chain and
limited fiscal space. In the remaining Twelfth Plan period, macroeconomic strategies will
focus on accelerating structural economic reforms, strengthening external trade in the
global supply chain, optimising economic potential of the regions and states, and managing
inflation. In improving Federal Government financial position, efforts will be undertaken
to strengthen fiscal governance, expand revenue, retarget subsidies and enhance budget
management as well as improve debt and liabilities management. Concerted efforts and
effective implementation of these strategies and initiatives will contribute in future-proofing
economy towards achieving the aspiration of ‘Ekonomi MADANI: Memperkasa Rakyat’ and
becoming a high-income nation.
 Mid-Term Review of the Twelfth Malaysia Plan
1-20 Chapter 1: Future-Proofing Economy

Chapter
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-1

Enhancing Efficiency of
Public Service Delivery

Introduction 2-2

Progress, 2021-2022 2-3

Performance of Selected Targets 2-3
Achievement by Priority Area 2-5
Priority Area A: Developing High-Performing Civil Service 2-5
Priority Area B: Advancing Whole-of-Government Approach 2-6
Priority Area C: Enhancing Budgeting and Project Management 2-8

Issues and Challenges 2-9

Weak Governance 2-9
Constraints in Human Capital Development 2-9
Low Adoption of Digital Technology 2-9
Unconducive Environment for Organisation and Business 2-9
Limited Fiscal Space and Inefficient Project Management 2-9

Way Forward, 2023-2025 2-10

Selected Targets, 2021–2025 2-11
Focus Area A : Enhancing Value-Based Governance 2-13
Focus Area B : Enriching Human Capital in the Civil Service 2-15
Focus Area C : Accelerating Digital Transformation 2-16
Focus Area D : Strengthening Institutional and Business Framework 2-20
Focus Area E : Improving the Effectiveness and Efficiency of Budget and 2-21
Project Management

Conclusion 2-23
 Mid-Term Review of the Twelfth Malaysia Plan
2-2 Chapter 2: Enhancing Efficiency of Public Service Delivery

Introduction
Malaysia remains steadfast in its commitment to transform and improve the public
service delivery to meet the higher expectations of the rakyat. During the review
period of the Twelfth Malaysia Plan, 2021-2025 (Twelfth Plan), the Government has
embarked on several strategies to enhance the quality of the public sector by investing
in the development of human capital, accelerating digitalisation, emphasising on good
governance, and enhancing budgeting and project management. Despite these efforts,
the Government continues to face issues and challenges in governance, human capital,
digitalisation, and budget and project management. In line with the Government’s vision
to rebuild trust, and strengthen integrity and transparency, a standard of governance
on leadership and decision-making will be refined to instil the values of sustainability,
prosperity, innovation, respect, trust and compassion.

Moving forward, good governance principles such as accountability, transparency and

inclusivity will be further emphasised in ensuring public services are delivered with higher
integrity. Focus will also be given in developing agile human capital that aims to equip
civil servants with imperative knowledge and capabilities to deliver high-quality and
efficient public services. Furthermore, adoption of digital technologies and innovative
solutions will drive a more seamless and accessible public service delivery experience
to the rakyat. The institutional and business framework will also be strengthened in
enhancing the efficiency of public service. The Government will improve the effectiveness
and efficiency of budget and project management to optimise resource allocation and
achieve development outcomes. Implementation of these initiatives with the adoption
of the whole-of-nation approach will enhance the public service delivery in providing
exceptional services to the rakyat.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-3

Progress, 2021-2022
A total of 10 targets were set in the effort to strengthen public service delivery. Out of the 10, two targets were achieved, three are on track, while
the remaining five are lagging during the review period as shown in Exhibit 2-1.

Exhibit 2-1
Performance of Selected Targets
Developing High-Performing Civil Service

Circular on

90 %
81.5 %
100 %
80 % Flexible
Working
Completed
Hours

2025 2022 2025 2022 2021 2021

Score of Civil Servants to be Issuance of Circular on

Sistem Pengurusan Amalan Nilai Digitally Literatea Flexible Working Hours

Advancing Whole-of-Government Approach

Top Top Top

9 38 12 53 30 61

2025 2022 2025 2022 2025 2022

Ranking in Government Efficiency Ranking in Online Services Ranking in Corruption

Sub-Index of the IMD World Sub-Index of the United Nations Perceptions Index of the
Competitiveness Yearbook e-Government Development Index Transparency International

Note: a Based on pilot study by Institut Tadbiran Awam Negara.

 Mid-Term Review of the Twelfth Malaysia Plan
2-4 Chapter 2: Enhancing Efficiency of Public Service Delivery

Advancing Whole-of-Government Approach

80% 81.3% 90% 88.8%

2025 2022 2025 2022

End-to-End Online Local Authorities

federal Government Services Achieve 4-Star Rating

Enhancing Budgeting and Project Management

-3.5% 61 47
to -5.6% 100
-3.0% 100

2025 2022 2025 2022

Percentage of Fiscal Balance Minimum Score in

to GDP Open Budget Index of the
International Budget Partnership
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-5

Achievement by Priority Area

Priority Area A: Developing High-Performing Civil Service

Strategy A1: Transforming the Public Service

Enhancing Human Resource ● Four guidelines1 related to human resource management issued to government agencies in
Management 2022
● Digital literacy of civil servants
o Pilot study on digital literacy completed in 2021
o The digital literacy programme started in 2022

Strategy A2: Developing Future Leaders

Improving Process in Recruiting and ● Kajian Keberkesanan Pelaksanaan Dasar Waktu Bekerja Fleksibel Dalam Perkhidmatan Awam
Retaining Talent completed in 2022
● MyPerformance module incorporated into Human Resource Management Information System
(HRMIS) in 2022

Priming Premier Leaders in the ● 54 out of 57 agencies submitted succession plans

Public Service ● The Public Services Commission improved the screening and selection mechanism for three
Managerial and Professional service schemes

Inculcating Good Ethics ● Guideline on Sistem Pengurusan Amalan Nilai 2.0 (second edition) issued
● A report on Kajian Keberkesanan Intervensi Nilai completed in November 2022

Enabling Continuous and ● 475 Chief Digital Officers (CDOs) appointed

Comprehensive Learning and ● Fourth Industrial Revolution (4IR) courses ranging from internet of things, blockchain and
Talent Development cyber security implemented by Institut Tadbiran Awam Negara
● 27 officers participated in cross-fertilisation programme

1
Panduan Pembangunan Pembelajaran Secara Dalam Talian, Panduan Pengajaran dan Pembelajaran Secara Dalam Talian Melalui Penggunaan Teknologi Maklumat dan Komunikasi (ICT),
Panduan Pelaksanaan Pakej Latihan and Panduan Penyediaan Kajian Impak Latihan.
 Mid-Term Review of the Twelfth Malaysia Plan
2-6 Chapter 2: Enhancing Efficiency of Public Service Delivery

Priority Area B: Advancing Whole-of-Government Approach

Strategy B1: Improving Government Administration and Operational Efficiency

Improving Government Administration ● Jabatan Perkhidmatan Awam undertaken a feasibility study on the introduction of a public
service act

Streamlining Institutions ● 50% of the Sandbox Technology Programme initiatives for public service implemented

Fostering Efficiency in Public ● Guidelines on implementation of key performance indicators (KPIs) for top Government official
Service Delivery reviewed in 2022
● 27 agencies from ministries cluster and six agencies from central agencies cluster implemented
assessment based on Malaysia Government Performance Index
● Licensing, financial management, enforcement and complaint management criteria introduced
as new indicators in Sijil Penarafan Bintang-Pihak Berkuasa Tempatan in 2022

Strengthening Collaboration and ● Specific platforms on the Sustainable Development Goals and poverty eradication programmes
Coordination among Stakeholders involving civil society organisations (CSOs), private sector, higher education institutions, state
governments and local communities established
● The National Centre for Governance, Integrity and Anti-Corruption conducted various
engagement sessions including a town hall and Bribery BUSTER (Rasuah BUSTER) programme

Expanding Digitalisation Initiatives ● 208 federal and 465 state agencies offered e-payment options
● Sistem Pengurusan Aduan Awam is being enhanced with chatbot and smart mobile application,
and cloud computing

Strengthening Open Data Governance ● A circular on Dasar Perkhidmatan Pengkomputeran Awan Sektor Awam issued in 2021
● A circular on Dasar Perkongsian Data Sektor Awam issued in 2021
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-7

Strategy B2: Enabling Better Decision-Making and Innovation

Enabling Quality Decision-Making ● Five Behavioural Insights pilot studies completed in 2022
● 30 ministries and agencies utilised the Unified Public Consultation platform to conduct
engagement with stakeholders
● Pangkalan Data Perlindungan Sosial, a central data repository for social assistance established in
2022

Promoting Greater Innovation ● A study on innovation best practices to accelerate innovation among civil servants carried out
in 2022

Strategy B3: Strengthening Governance Ecosystem

Upholding Integrity, Transparency ● 661 Organisational Anti-Corruption Plan (OACP) documents, comprising of 232 at the federal
and Neutrality at All Levels and 429 at state levels developed

Improving the Electoral System ● The Constitution (Amendment) Act 2019 [ Act A1603 ] relating to minimum voting age from
21 years old to 18 years old came into force on 15 December 2021

Digitalising Court Information ● Six new modules2 developed in the e-Kehakiman system
Management System and Process

Enhancing Corporate Governance ● Prinsip Tadbir Urus Baik bagi Syarikat Pelaburan Kerajaan launched in April 2022
in State-Owned Enterprises and
Statutory Bodies

2
eDenda, eExecution for Bailiff, ePlead Guilty, eRekod Rayuan, Long Call Solution and Statistics based on Offense.
 Mid-Term Review of the Twelfth Malaysia Plan
2-8 Chapter 2: Enhancing Efficiency of Public Service Delivery

Priority Area C: Enhancing Budgeting and Project Management

Strategy C1: Reviewing Budgeting Framework and Process

Enhancing Budgeting Transparency ● Pre-Budget Statement published for the year 2021 and 2022
and Aligning Priorities ● The basic development expenditure (DE) allocated to the six less developed states exceeded
50% target

Introducing Value at Entry (VAE) ● VAE (Acquisition Categorisation (ACAT), Value Management Strategic (VMS), Gerbang Nilai 0
(GN0)) imposed as a requirement for new physical project applications in 2022

Developing a Legal Framework in ● The Domestic Review Procedure introduced to improve complaint management on government
Government Procurement procurement in 2022

Strategy C2: Improving Effectiveness of Project Implementation

Improving Project Delivery Mechanism ● The Jawatankuasa Tertinggi Pemantauan RMKe-12, chaired by the Prime Minister established in
2021
● Garis Panduan Penyediaan Kajian Separuh Penggal Rancangan Malaysia Kedua Belas
(KSP RMKe-12) and Permohonan Projek Pembangunan Tahun 2024-2025 was issued in 2022
● 130 projects reviewed by Jawatankuasa Kerja Penilaian Outcome in 2021 and the achievement
of outcomes based on the four categories
o Significantly Exceed Target: 55 Projects
o Exceed Target: 43 Projects
o On Target: 22 Projects
o Below Target: 10 Projects

Strengthening MyProjek ● MyProjek enhanced in 2022 to incorporate states’ priority list of projects
● Various systems such as Public Sector Comparator, Integrated Government Financial
Management Accounting System (iGFMAS) and Sistem Pengurusan Tanah Persekutuan dan
Pembahagian Pusaka (MyeTaPP) integrated with MyProjek from 2021
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-9

Issues and Challenges

Efforts were undertaken to strengthen public service delivery efficiency and effectiveness in meeting the rising expectations from the rakyat and
stakeholders. Nevertheless, the improvements are still insufficient to deal with the ongoing issues and challenges. In this regard, main issues and challenges
which need to be addressed are weak governance, constraints in human capital development, low adoption of digital technology, and unconducive
environment for organisation and business. Furthermore, limited fiscal space and inefficient project management also need to be addressed.

I
Weak Governance
● Ambiguity in implementing policy and legislation
II
● Limited enforcement capacity and low compliance rate Constraints in Human Capital
● Misconduct and corruption Development
III
Low Adoption of Digital Technology ● Limitation in competency-based postings

o Challenges in identifying competency gap among

● Underutilisation of MyGovernment portal for online services officers due to unavailability of job specification data
● Lack of data sharing ● Ineffective management of leadership talent pool due
● Lack of commitment to support digital transformation to incomprehensive implementation of Public Service
Leadership Model, and lack of data profiling and succession
o Low appointment of CDO at federal and states agencies
plan for civil servants
o Slow development of digital enterprise architecture (EA) in
● Insufficient data to extrapolate trends on digital literacy
public sector organisations
among civil servants

V ● Lack of required skills among persons with disabilities

Limited Fiscal Space and Inefficient (PWDs) to be appointed in the civil service
Project Management IV

● Insufficient sources of revenue and narrow revenue base

Unconducive Environment for
● Mistargeted subsidies causing inefficient allocation of resources
Organisation and Business
● Insufficient allocation of basic development expenditure ● Overlapping structures and functions of ministries and
agencies
● Leakages in procurement process mainly due to direct
negotiations ● Unfavourable business environment

● Lack of comprehensive evaluation for off-budget projects o Ineffective business facilitation

● Resources constraint for infrastructure and public utilities

maintenance

● Ineffective project management

 Mid-Term Review of the Twelfth Malaysia Plan
2-10 Chapter 2: Enhancing Efficiency of Public Service Delivery

Way Forward, 2023-2025

During the remaining Twelfth Plan period, the Government will continue to focus on providing efficient and effective public service delivery through
the whole-of-government approach. This will be undertaken by enhancing value-based governance, enriching human capital, accelerating digital
transformation, and strengthening institutional and business framework for improved public service delivery efficiency. In addition, efforts in improving
the effectiveness and efficiency of budget and project management will be strengthened to ensure a more transparent public service delivery that meet
the expectation of rakyat.

Focus Area A: Focus Area B:

Enhancing Value-Based Governance Enriching Human Capital in the
Civil Service

Strategy A1: Strategy B1:

Improving Accountability and Transparency Streamlining Job Placement
Strategy A2: Strategy B2:
Strengthening and Acculturating Integrity in Public Service Priming Premier Leaders
Strategy B3:
Improving Competency of Civil Servants
Strategy B4:
Focus Area C: Increasing Participation of Persons with Disabilities in
Public Service
Accelerating Digital Transformation

Strategy C1:
Improving End-to-End Online Services Performance Focus Area D:
Strategy C2: Strengthening Institutional and
Boosting Data Sharing Business Framework
Strategy C3:
Facilitating Change and Digital Innovation Strategy D1:
Reviewing Structure and Function
Strategy D2:
Enhancing Ease of Doing Business
Focus Area E:
Improving the Effectiveness and
Efficiency of Budget and Project
Management
Strategy E1:
Strengthening Budget Management
Strategy E2:
Improving the Effectiveness of Project Management
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-11

Selected Targets, 2021–2025

Enhancing Value-Based Governance

Ranking in Corruption Score in Corruption

Top Perceptions Index Perceptions Index Integrity Introduction of a New
30 of the Transparency 62 of the Transparency Plan Integrity Plan
International International

2025 2025 2025

Enriching Human Capital in the Civil Service

Civil Servants Mastering Score of Sistem

100% Digital Competency 90% Pengurusan Amalan Nilai

2025 2025

Accelerating Digital Transformation

Ranking in Online
End-to-End Online Services Sub-Index
Top Local Authorities Achieve
80% Federal Government
12
of the United Nation 90% 4-Star Rating
Services e-Government
Development Index
2025 2025 2025

New Target
 Mid-Term Review of the Twelfth Malaysia Plan
2-12 Chapter 2: Enhancing Efficiency of Public Service Delivery

Strengthening Institutional and Business Framework

Ranking in Government Score in Government

Top Efficiency Sub-Index Efficiency Sub-Index Top Ranking based on Score
20 of the IMD World 70 of the IMD World 12 in B-READY 2025 Report
Competitiveness Yearbook Competitiveness Yearbook

2025 2025 2025

Improving the Effectiveness and Efficiency of Budget and Project Management

Minimum Score in Open

-3.5% Percentage of Fiscal 61 Budget Index of the
to
-3.0%
Balance to GDP
100 International Budget
Partnership

2025 2025

Percentage of
Basic Development Sick Projects Exceed 20%
60% Expenditure (DE) to Total zero or 60 Days from Schedule
DE Allocation

2025 2025

New Target
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-13

Focus Area A: Improving Public Complaints Management

Enhancing Value-Based Governance In the remaining Twelfth Plan period, an ombudsman act will be enacted
and an ombudsman body introduced. The ombudsman act will improve
In line with efforts towards a corrupt-free government, it is imperative to enforcement, increase transparency and efficiency in addressing public
ingrain value-based governance that incorporates integrity, accountability complaints. Meanwhile, the ombudsman body will be empowered to ensure
and transparency in the public service to realise the whole-of-nation that public complaints are duly addressed and resolved.
approach. Thus, public service underpinned by respect, trust and
compassion will boost economic growth and the well-being of the
Enhancing the Function of National Audit
rakyat. Two Big Bolds, namely Governance and Institutional Framework,
and Legislation related to Corruption will be realised in enhancing The Audit Act 1957 [ Act 62 ] will be amended by expanding the duties
value-based governance. The two strategies to be implemented are of the Auditor General (AG) to audit companies in which the Government
improving accountability and transparency as well as strengthening and has interest in the form of guarantees, investments and loans guaranteed
acculturating integrity in public service. by the Government. The amendment will also restrict AG from being
involved in any activities or committees at federal or state levels. The
role of Ag as an independent, transparent and professional entity will be
further strengthened to be on par with the standards of Independence
Strategy A1 Improving Accountability and Transparency of Supreme Audit Institutions and International Organization of Supreme
Audit Institutions.

Strategy A2
Strengthening and Acculturating Integrity in Improving Beneficiary Ownership Reporting
Public Service
Mechanism
Provision on beneficial ownership will be reviewed in the Companies Act
2016 [ Act 777 ] and incorporated in the Limited Liability Partnership Act
Strategy A1: 2012 [ Act 743 ], in line with the best practices and international standards.
Improving Accountability and These revised and new provisions will emphasise on the beneficial ownership
reporting framework by defining the ownership of share and control in
Transparency company management as well as updating information and submitting
annual statements to the company registrar. The implementation of this
Strengthening Accountability in initiative will further enhance transparency in both private and public
Political Donation sectors. These revised and new provisions will be tabled in the Parliament
during the remaining Twelfth Plan period.
A new legislation on political donation will be enacted to regulate any
form of contribution made by individuals and special interest groups. Strengthening the Function of the National
This donation will not be confined to only during elections. The legislation
will be governed by an independent body to ensure all political parties,
Anti-Financial Crime Centre
politicians, election candidates and political agents are accountable
The National Anti-Financial Crime Centre (NFCC) will be strengthened to
to the rule of law. This law will forbid funding from any foreign entity for
coordinate the management of confiscated and disenfranchised property.
the purpose of political activities and further improve the transparency
This involves the amendment of the National Anti-Financial Crime Centre
in the political donation.
Act 2019 [ Act 822 ] and other laws under the purview of relevant ministries
and agencies. In addition, NFCC will outline the proper guidelines and
develop relevant database to facilitate planning and monitoring to address
financial leakages and crime.
 Mid-Term Review of the Twelfth Malaysia Plan
2-14 Chapter 2: Enhancing Efficiency of Public Service Delivery

Strategy A2:
Strengthening and Acculturating
Integrity in Public Service
Introducing a Comprehensive Governance Act
for Public Sector
A governance act will be introduced to provide a comprehensive governance
framework across ministries and agencies in supporting the whole-of-
government approach. In this regard, a study will be conducted to evaluate
the suitability in enacting the act. This study will also identify the need
of establishing an independent body in governing and monitoring the
direction of the proposed act.

Profiling Corruption Traits

A pilot project using criminogenic profiling will be conducted through
collaborative efforts between selected agencies and public universities.
The profiling will determine the corruption tendency of an individual.
The outcome of this pilot project will determine the use of criminogenic
profiling as one of the tools to profile corruption traits in the public service.

Developing Integrity Instruments Expanding the Integrity Awareness Programme

A pilot study will be conducted to measure the level of integrity in leadership The importance of integrity through multi-layered public awareness
for the purpose of career development using the leadership integrity campaigns in cultivating integrity culture within societies will be carried
profile instrument. In addition, health check instruments on integrity will out through various programmes. The Enforcer Integrity Module training
be developed to measure the level of good governance compliance among programme will be extended to all relevant ministries and agencies.
civil servants. The Malaysia Governance Index will also be developed as Additionally, a Corruption Risk Management Training Module will be
an indicator to measure the national governance performance. developed as an online learning programme through the e-Pembelajaran
Sektor Awam portal.
As part of the legislation related to corruption Big Bold initiatives, a
new integrity plan with the core values of MADANI will be introduced A Community Integrity Building (CIB) programme, implemented in seven
in cultivating humanistic values and attitude. A new anti-corruption plan selected local authorities3, will be expanded to more local authorities. The
will also be introduced that serves as a guideline to all public and private
CIB programme is designed to nurture a responsible behaviour within the
institutions on issues related to integrity, governance and corruption. In
local communities. The implementation of this programme will also improve
addition, a new legislation on anti rent-seeking will be explored in promoting
integrity within the local authorities and society.
transparency and economic efficiency.

3
Dewan Bandaraya Kuching Utara, Majlis Bandaraya Melaka Bersejarah, Majlis Bandaraya
Subang Jaya, Majlis Perbandaran Sibu, Majlis Daerah Hulu Terengganu, Majlis Daerah
Limbang and Majlis Daerah Matu & Daro.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-15

Focus Area B: Strategy B1:

Enriching Human Capital in the Streamlining Job Placement
Civil Service Enhancing Competency-Based Placements
Enriching human capital enables civil servants to embrace a high-performance
Job specification (JS) that describes knowledge, skills level, capabilities and
culture to meet the rising expectations of the rakyat. In this regard, the
competencies requirements for each position will be introduced in every
Government needs to invest in the development and enrichment of civil
agency. The existence of JS will complement the current job description
servants. The strategies to be implemented are streamlining job placement,
for each position which will enhance competency-based placements. Thus,
priming premier leaders, improving competency of civil servants and
the Government will be able to identify manpower requirements, and
increasing participation of PWDs in the public service.
develop subject matter experts and leadership programmes. In addition,
data profiling of civil servants will be enhanced to enable the heads of
agencies to assess, identify and groom future leaders based on competencies.

Strategy B1 Streamlining Job Placement

Strategy B2:
Priming Premier Leaders
Strategy B2 Priming Premier Leaders
Developing Future Leaders
Efforts will be intensified to develop future leaders in the public service.
Strategy B3 Improving Competency of Civil Servants The concept of “leaders create leaders” will be introduced to ensure an
effective transition of leaders in an organisation and will be incorporated
in the Sistem Pemantauan dan Penilaian Petunjuk Prestasi Utama for heads
Increasing Participation of Persons with of agencies. Elements of coaching and mentoring will be enhanced to
Strategy B4 develop outstanding leadership skills and personality traits. In addition,
Disabilities in Public Service
a standardised leadership and management module will be introduced to
all schemes of service.

Strategy B3:
Improving Competency of Civil Servants
Improving Fundamental Competencies
The assessment process and tools for competencies will be improved
to further enhance skills and competencies required in preparing future
ready civil servants. Learning modules including emerging technology, and
problem-solving and communications skills, will be continuously improved for
all levels of civil servants. These modules will inculcate good interpersonal
skills to better serve the rakyat. The upskilling and reskilling programmes
will also be enhanced through a systematic assessment, based on the Digital
Government Competency and Capability Readiness framework to address
competency gap among civil servants.
 Mid-Term Review of the Twelfth Malaysia Plan
2-16 Chapter 2: Enhancing Efficiency of Public Service Delivery

Strengthening Digital Competency Strategy B4:

Measures will be undertaken to ensure civil servants to be digitally savvy. Increasing Participation of Persons with
In this regard, the CDOs will be tasked to achieve the target of all civil Disabilities in Public Service
servants are digitally competent in 2025 as one of the KPIs. Competency
assessments will be implemented in all government agencies. Meanwhile, Enhancing the Readiness of Persons with
engagement sessions on the guidelines and measuring tools of digital
competency assessment will be carried out.
Disabilities
The Government will continue to encourage more participation of the
Implementing Behavioural Insights PWDs in the public sector. Skills training programmes will be implemented
to enhance the skills and readiness of PWDs to be employed in the public
Behavioural Insights (BI) plays a pivotal role in enabling policy makers service through collaboration with relevant agencies and CSOs. Through this
to gain better understanding on human behaviour, hence enhancing the approach, PWDs will be equipped with specific skills and competencies that
efficacy of policy-making. Efforts will be continued in advancing the are aligned with the current and future requirements of the public service.
implementation of BI in policy-making by developing local talents among
civil servants. Awareness programmes will continue to be carried out at
the federal and state levels. The integration of BI into policy-making will Focus Area C:
enable incorporation of evidence and insights from social sciences that Accelerating Digital Transformation
are not only effective but also be able to address the diverse needs of
the rakyat. The incorporation of BI into policy-making will also fosters a Swift changes in digitalisation create an urgent need to accelerate digital
more citizen-centric governance model. transformation in enhancing the efficiency of public service delivery.
In this regard, the Government will accelerate digitalisation initiatives
through Government Technology (GovTech) to modernise public service
delivery that stresses on the importance of universally accessible citizen-
centric public service. A description on GovTech in Malaysia is as shown in
Box 2-1. GovTech is one of the initiatives under the Big Bold Digital-and
Technology-Based Industry. Under this Big Bold, the implementation of
the National Digital Identity will also be expedited. In addition, strategies
on improving end-to-end (E2E) online services performance, boosting data
sharing, and facilitating changes and digital innovation will be implemented.

Improving End-to-End Online Services

Strategy C1
Performance

Strategy C2 Boosting Data Sharing

Strategy C3 Facilitating Change and Digital Innovation

 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-17

Strategy C1: Strategy C3:

Improving End-to-End Online Services Facilitating Change and Digital
Performance Innovation
Strengthening Digital Services Improving the Effectiveness of Change
The Government will continue to strengthen digital services by encouraging Management in Organisations
the use of Government Service Catalogue. This Catalogue will provide a
The appointment of the CDOs is to accelerate digital transformation and
clear guide of categories for Government services4 and serve as the basis
for ministries and agencies to meet the requirement of online services. promote digital-driven work culture across all ministries and agencies
The usage of this Catalogue will enhance the quality and efficiency as well by referring to Panduan Pengurusan Perubahan Sektor Awam. CDO will be
as increase the percentage of E2E online services in the public sector. responsible to spearhead initiatives on digital technology, data governance
and digital literacy in organisation. Continuous efforts will be undertaken
to ensure CDOs will be appointed in all federal and state agencies.
Strategy C2: In addition, awareness and promotion programmes will be targeted
Boosting Data Sharing for all levels, especially top management to expedite digital transformation
agenda.

Developing Data Repository on Households

Expanding the Development of Enterprise
A socioeconomic data repository on households, known as Pangkalan Data Architecture
Utama (PADU) will be developed to facilitate distribution of a more targeted
subsidy and assistance. PADU is an initiative under the Big Bold Targeted In ensuring efficiency and effectiveness of business operations, all ministries
Subsidies. Near real-time micro data on individuals such as demography, and agencies will be urged to develop EA. Public Sector Enterprise
income and social assistance will be captured in this platform as a reference
Architecture Master Plan will serve as the main guideline for ministries
to government agencies. In addition, PADU will provide access to enable
and agencies in aligning business and technology strategies. In this regard,
individuals to review and update personal data. In this regard, the Government
an assessment on the effectiveness of adopting EA in the public sector
will ensure data confidentiality and security are protected.
will be carried out.

Strengthening Regulatory Framework on

Driving Creativity, Innovation and Value to
Data Sharing
the Rakyat
The introduction of Omnibus Act will govern data sharing and cloud
Rangka Tindakan Inovasi Sektor Awam will serve as a policy in promoting
storage. This act will enable the revision of agency internal regulations
and policies in supporting data sharing and digitalisation requirements. In creativity and innovation in public service. In this regard, a circular on this
addition, impact studies on the implementation of Dasar Perkongsian Data innovation policy will be issued. Ministries and agencies will be encouraged
Sektor Awam and the National Data Sharing Policy will be conducted to to adopt the existing value creation concept through customers engagement
identify gaps in implementation and the effectiveness of these policies sessions in ensuring satisfaction and seamless experience to the rakyat.
in encouraging data sharing. Engagement at the federal and state levels In addition, the development of service delivery application systems
will continue to be conducted, focusing on awareness and value creation by ministries and agencies will incorporate expectations and needs of
of data sharing. the rakyat.

4
The service categories are based on government-to-business (G2B), government-
to-citizen (G2C), government-to-employee (G2E) and government-to-government
(G2G).
 Mid-Term Review of the Twelfth Malaysia Plan
2-18 Chapter 2: Enhancing Efficiency of Public Service Delivery

Box 2-1 Figure 1

Driving Transformation Through Govtech Malaysia Score in GovTech Maturity Index
(GTMI) 2022
Public Service Delivery Index
0.904
What is GovTech? 9 indicators

core
Government Technology (GovTech) is a whole-of-government approach to
public sector modernisation. GovTech emphasises on three aspects, namely
Government
universally accessible citizen-centric public service, digital government Systems Index
transformation as well as simple, efficient and transparent government 0.827
17 indicators Malaysia
systems. GovTech initiatives are reshaping the operations of the government
and interactions with the citizen, leading to a more empowered and
Overall
participatory society. Score: 0.793 govtech
Enablers
GovTech initiatives facilitate governments to modernise service delivery Index
by leveraging on emerging technology. It enables the government to adopt 0.769
data-driven decision-making and optimise resource allocation as well 16 indicators
as provide current information and online services to the stakeholders.
Digital Citizen
Adoption of technology is becoming more important post pandemic to
Engagement Index
ensure uninterrupted service delivery. Hence, more countries are advancing
0.671
GovTech to enhance governance and service delivery, promote citizen
6 indicators
participation and address socioeconomic challenges.
Source: GTMI Report 2022, World Bank

GovTech Maturity Index

The Malaysia GovTech Landscape
GovTech Maturity Index (GTMI) is an assessment tool developed by the
Malaysia has started early in introducing electronic government through
World Bank to measure the adoption of GovTech. GTMI measures the state
of four GovTech focus areas in 198 economies using 48 key indicators. The flagship applications under the Multimedia Super Corridor in 1996. Since
four GovTech focus areas are Core Government Systems, Public Service the commencement, the implementation of flagship applications faced
Delivery, Digital Citizen Engagement and GovTech Enablers. issues and challenges that slowed down the progress. Rapid development
of digital technologies has changed economic landscape which enticed the
In 2022, Malaysia was placed as one of the GovTech leaders in group A Government to embark on a new digitalisation agenda. The Government
scoring 0.793, above average score of 0.552 for 198 economies based formulated the Malaysia Digital Economy Blueprint which outlines
on the GTMI as shown in Figure 1. Out of the four focus areas, Malaysia strategies and initiatives to accelerate the growth of digital economy. Six
showed excellent performance in the Public Service Delivery Index and strategic thrusts were identified in which the first thrust is to drive digital
Core Government Systems Index. This achievement is a result of several transformation in the public sector. In this regard, the Government has
key digital Government programmes, such as the MyGovCloud, the Malaysia expedited implementation of various existing and new GovTech strategies
Government Central Data Exchange, core public finance management and initiatives. Some notable initiatives based on GTMI focus areas
systems and the MyGovernment online service portal. implemented by the Government include:
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-19

1. Core Government Systems 4. GovTech Enablers

GovTech initiatives improve interoperability and enable shared digital The Government has been actively driving digitalisation agenda
platforms through whole-of-government approach. In this regard, the across sectors through various enablers such as the Malaysia Digital
Government introduced the Public Sector Enterprise Architecture Economy Blueprint, the National Fourth Industrial Revolution (4IR)
Master Plan as a guideline for ministries and agencies to leverage Policy and Pelan Strategik Pendigitalan Sektor Awam. The implementation
technology in improving service delivery efficiency. In addition, the of 4IR policy is supported by the deployment of 5G technology that
Government established cloud platforms, namely MyGovCloud@PDSA enables faster and more reliable connectivity in adopting emerging
and Government Hybrid Cloud which are available for government technologies such as artificial intelligence, internet of things and big
entities. These platforms enable ministries and agencies to leverage data analytics. In addition, the Government will implement Omnibus
scalable and secure infrastructure, and facilitate the hosting of digital Act to facilitate data sharing across ministries. These enablers have
services and applications. provided a conducive ecosystem in implementing GovTech initiatives
efficiently and effectively.
2. Public Service Delivery

GovTech initiatives aim to streamline administrative processes, reduce

bureaucracy and enhance service efficiency. Online portals and digital
services enable the rakyat to access Government services easily and
conveniently, saving time and effort. Notably, federal agencies such The Need for Coordinated Strategy and
as the Ministry of Local Government Development, the Immigration Governance
Department of Malaysia and the Road Transport Department Malaysia
have played a pivotal role in ensuring seamless accessibility, resulting in Currently, GovTech initiatives are being implemented by various agencies
record high user satisfaction. In addition, the Government also recognises resulting in suboptimal outcomes. It is imperative to adopt a well-coordinated
the value of data from public participation in making informed decision. and holistic approach through GovTech in accelerating modernisation
The Open Data Initiative, spearheaded by the Malaysian Administrative of public service delivery. This requires a centralisation of planning,
Modernisation and Management Planning Unit (MAMPU), promotes coordination and monitoring of GovTech initiatives in line with the whole-
data sharing with the public. This initiative encourages transparency, of-nation approach. In this regard, GovTech Malaysia will be established.
accountability, and citizen engagement by providing access to government In addition, the Government will provide a conducive environment to
data for research, analysis, and innovative solutions. Portals such as implement GovTech initiatives. Concerted efforts will be undertaken
the MyGovernment and the Government Open Data have provided in streamlining EA, improving digital competency in the public sector
accessibility to online government services and comprehensive datasets. as well as providing the supportive digital infrastructure. Furthermore,
awareness and willingness to change among civil servants is pivotal in
3. Digital Citizen Engagement ensuring the success of GovTech. As Malaysia embraces GovTech, the
Government will further harness the potential of advanced technology in
GovTech platforms provide avenues for public participation, encourage creating a more efficient and rakyat-centric government, ultimately paving
feedback, and promote collaboration between the Government and the the way for a digitally empowered nation.
rakyat. These platforms foster trust, inclusivity and a sense of public
ownership, leading to a more responsive and rakyat-centric policies.
The Unified Public Consultation, Sistem Pengurusan Aduan Awam and
continuous engagement by respective ministries and agencies through
various social media platforms with the rakyat, serve to provide feedback,
opinions and policy discussions.
 Mid-Term Review of the Twelfth Malaysia Plan
2-20 Chapter 2: Enhancing Efficiency of Public Service Delivery

Focus Area D: Empowering the Special Task Force on Agency

Reform
Strengthening Institutional and
Business Framework The governance and institutional framework Big Bold initiatives also
emphasised efforts in enhancing the role of the Special Task Force on
Firm institutional and business frameworks are vital in ensuring the efficiency Agency Reform (STAR). This task force is specifically designed to improve
and effectiveness of public service delivery. In this regard, concerted effectiveness and efficiency of public service delivery in line with aspirations
measures will be undertaken to strengthen the institutional framework and emphasis on MADANI. Among the key initiatives planned include
in reducing bureaucracy. Meanwhile, the Government will also provide expediting the upgrading of dilapidated schools, adoption of cashless
a more favourable business environment by focusing on ease of doing payment methods and improving ease of doing business.
business. The implementation of these measures will unlock significant
benefits, such as increased productivity, improved service quality and
Strategy D2:
greater satisfaction of the rakyat.
Enhancing Ease of Doing Business
Promoting Favourable Business Ecosystem
Strategy D1 Reviewing Structure and Function
Procedures and regulations that are burdensome will be simplified, while
that of outdated will be reviewed to improve governance and administrative
procedures. Approval committees as well as procedures for business
Strategy D2 Enhancing Ease of Doing Business registration and obtaining permits and licenses will be streamlined to reduce
time and cost. The investor protection mechanism will be strengthened and
corporate governance practices will be promoted through enforcement of
existing regulations. Additionally, efforts will be undertaken to enhance
Strategy D1: transparency as well as provide clear and reliable mechanisms for dispute
resolution. Meanwhile, initiatives for digital innovation will be introduced to
Reviewing Structure and Function accelerate adoption of digital technologies among ministries and agencies.
These initiatives will ensure a business-friendly governance and regulations,
Streamlining Structure and Function of which will attract more investments and technology startups.
Ministries and Agencies
A new framework to identify and encourage continuous improvements
The Government will continue to enhance efficiency of public service by in developing business enabling environment for ease of doing business
further reviewing and streamlining the structure and functions of ministries will be adopted by Malaysia in 2024. In this regard, Malaysia will participate
and agencies as one of the Big Bold initiative of governance and institutional in Business Ready (B-READY) project that assesses competitiveness
framework. This initiative will reduce overlapping and clearly define functions of business environment of the country. The assessment will focus
of agencies in the public sector. Efforts will be undertaken by conducting on regulatory framework, public service and efficiency with introduction
engagement sessions with relevant ministries and agencies to re-evaluate of indicators to assess business and investment climate throughout
the existing roles and functions. In addition, measure will be undertaken to the life cycle of businesses. Adoption of digital technology and
review existing laws and outdated legislations. In addition, the Government environmental sustainability are among the aspects that will be captured
will also strengthen the roles and functions of agencies responsible for in the assessment.
legislature as well as management of whistleblower protection.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-21

Focus Area E:
Improving the Effectiveness and
Efficiency of Budget and Project
Management
The Government remains committed to improve effectiveness and efficiency
of budget management to enhance fiscal sustainability. In addition, existing
measures will be enhanced, while new measures will be introduced to
ensure effective project management. These improvements will accelerate
project implementation as well as provide direct benefits to the rakyat.

Strategy E1 Strengthening Budget Management

Improving the Effectiveness of Project

Strategy E2
Management

Strategy E1:
Strengthening Budget Management
Initiatives under the Big Bold targeted subsidies will focus to establish a
more targeted subsidy framework under PADU. At the initial stage, emphasis
Improving Revenue Generation and Retargeting
will be given to subsidies for electricity, diesel and petrol. Savings from
Subsidy subsidies retargeting will be utilised to fund socioeconomic projects and
programmes, benefitting the rakyat.
The Government will implement Big Bold Fiscal Sustainability and Financial
System to maximise national revenue generation by diversifying tax resources,
broadening tax base as well as adopting digitalisation and technologies. In Reprioritising Development Expenditure
congruent with this initiative, an electronic invoicing system will be introduced
in phases and a rule based on two pillar approach will be implemented to The basic DE allocation will be increased to at least 60% of the total
address base erosion of tax and profit shifting. These measures are expected annual DE allocation, compared to the current 50%. This will provide
to prevent tax avoidance by eligible individuals and cross-border tax evasion more opportunities for the implementation of people-centric, strategic
by companies. In addition, a special voluntary disclosure programme will be and high-impact projects. Towards this end, the Government will ensure
implemented to encourage declaration of unpaid taxes and underestimated that the distribution of DE allocations has an impact on economic growth
or erroneous tax declaration. Moreover, excess funds5 under federal statutory as well as improve regional balance, in line with the development
bodies and Government-linked companies will be repurpose for development aspirations.
programmes and projects.

5
Unutilised financial resources in the form of cash and cash equivalents originating
from government allocations.
 Mid-Term Review of the Twelfth Malaysia Plan
2-22 Chapter 2: Enhancing Efficiency of Public Service Delivery

Enhancing Procurement Legal Framework Strategy E2:

The policy on government procurement will continue to emphasise on Improving the Effectiveness of Project
open tendering option to ensure an efficient and transparent procurement Management
as well as cost-effective project implementation. For this purpose, the fiscal
sustainability and financial system Big Bold initiative on accelerating the Improving Project Planning and Implementation
formulation of the government procurement act will be implemented to
improve the procurement system. In addition, the Government will amend The project planning stage will be improved by enhancing the MyProjek
the Financial Procedures Act 1957 [ Act 61 ] to incorporate clauses on system to integrate the VAE process, which includes ACAT, VMS and GN0
procurement practises including direct negotiation practises to better to verify project requirements, viability and costs. The MyeTaPP system will
manage procurement process. also be integrated with the MyProjek system to ensure land is available
and free from any encumbrances. Meanwhile, emphasis will be given to

Establishing a Single Window Mechanism prioritise the use of land in the land bank rather than acquiring new land.

Efforts will be undertaken in enhancing the off-budget projects’ assessment A more effective implementation of projects and costs through a decentralised
including Public-Private Partnership (PPP) project through a single window approach will be adopted as one of the initiatives under the Big Bold fiscal
sustainability and financial system. As such, the implementation of small-
mechanism to improve development project planning, decision-making and
scale projects such as village roads, public toilets and drainage as well as
monitoring. In this regard, MyProjek system will serve as a single window
maintenance and repair of dilapidated schools and clinics will be accelerated.
to manage all development projects. In addition, the implementation
In this regard, exemption from existing rulings under the Treasury Instruction
and financing models for PPP projects will be reviewed to introduce the
(AP) 182 which requires technical departments, namely Department of Public
Public-Private Partnership Master Plan 2023-2032 that provides a new
Works and Department of Irrigation and Drainage to be the implementing
policy direction based on the user-pay model.
agencies for all federal projects, will be continuously reviewed in allowing
ministries and agencies as well as state and local governments to implement
Enhancing Maintenance of Government Assets small-scale projects without having to refer to the technical departments. In
addition, Inisiatif Kemudahan Rakyat will be promoted for the public to apply
A more sustainable mechanism to finance the maintenance of assets will be small-scale projects directly to all ministries and agencies.
explored, among others through adopting a strategic procurement model
based on the principle of life cycle cost to extend asset lifespan in the Extension of time for projects will be monitored and managed in a more
long run. This mechanism will include initiatives on exploring the usage stringent manner to minimise delay and reduce cost overrun. Provision
of PPP user-pay model and establishing a special fund for maintenance. under the Malaysian Construction Industry Development Board Act 1994
In this regard, a guideline will be issued to enable a more sustainable [ Act 520 ] and circulars on government procurement with regard to
management of national assets and facilities. registration, appointment and termination of contractors will be strengthened.
An operational readiness and outcome delivery assessment mechanism will
be strengthened to assess all completed development projects. In addition,
projects that failed to takeoff for a protracted period will be cancelled to
address the issue of delay in project implementation.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 2: Enhancing Efficiency of Public Service Delivery 2-23

Conclusion
During the review period of the Twelfth Plan, various transformative efforts have been
implemented in the public sector to strengthen service delivery by developing high-performing
civil service, advancing whole-of-government approach and enhancing budgeting and project
management. Nonetheless, the public sector continues to face challenges in areas of good
governance, talent development, digital technology adoption, organisational and business
environment as well as project management. Moving forward, the public service will remain
as the enabler through a whole-of-nation approach, in achieving the aspirations of Malaysia
MADANI. The Government will further strive to attain high-performing public services
by enhancing value-based governance, enriching human capital, accelerating modernisation
through digital transformation, strengthening institutional and business framework
as well as improving the effectiveness and efficiency of budget and project management.
These efforts will be essential in realising the theme of ‘Sustainable, Prosperous and
High-Income’ in the remaining Twelfth Plan period.
 Mid-Term Review of the Twelfth Malaysia Plan
2-24 Chapter 2: Enhancing Efficiency of Public Service Delivery

Chapter
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-1

Boosting Economic Resilience for

a Sustainable Growth

Introduction 3-2

Progress, 2021-2022 3-3

Performance of Selected Targets 3-3
Achievement by Priority Area 3-8
Priority Area A : Boosting Productivity Growth 3-8
Priority Area B : Expanding Export Markets 3-9
Priority Area C : Strengthening the Effectiveness of Financial Intermediation 3-10
Ecosystem
Priority Area D : Strengthening the Role of Industrial Estates and Food Production 3-12
Areas
Priority Area E : Improving Governance and Policy 3-12
Priority Area F : Accelerating the Development of Strategic and High Impact 3-12
Industries
Priority Area G : Boosting Capabilities of Entrepreneurs and Enterprises 3-15

Issues and Challenges 3-17

Lacklustre Performance of Economic Sectors and Industry Development 3-17
Lack of Sectoral Competitiveness 3-18
Impediments in the Financial Sector 3-18
Lack of Effective Management of Industrial Estates and Food Production Areas 3-18
Inability of MSMEs to Scale Up and Stay Competitive 3-18

Way Forward, 2023-2025 3-19

Selected Targets, 2021-2025 3-20
Focus Area A: Strengthening Sectoral and Strategic Industries Resilience 3-23
Focus Area B: Driving Competitiveness for Sustainable Growth 3-29
Focus Area C: Boosting the Efficacy of the Financial Support 3-31
Focus Area D: Strategising Industrial Estates and Food Production Areas 3-33
Focus Area E: Breaking the Barriers for MSMEs to Scale Up 3-34

Conclusion 3-37
 Mid-Term Review of the Twelfth Malaysia Plan
3-2 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Introduction
During the review period of the Twelfth Malaysia Plan, 2021-2025 (Twelfth Plan),
implementation of the theme on resetting the economy has been focusing on restoring
the growth momentum and propelling the growth of strategic and high impact industries
as well as micro, small and medium enterprises (MSMEs). These measures to strengthen
economic sectors affected by COVID-19 have succeeded in achieving better growth in
several areas. Progress has also been recorded, among others, in increasing productivity
growth of construction and services sectors, improving growth of exports in construction,
mining, agriculture and manufacturing sectors, strengthening financial intermediation
ecosystem and increasing utilisation rate of dedicated food production areas. In addition,
continuous growth of strategic and high impact industries has been achieved while
digitalisation rate among MSMEs has increased. However, Malaysia is seen lagging behind
regional peers in terms of competitiveness due to lack of significant structural economic
reforms. Lacklustre performance of economic sectors and industry development, and lack
of sectoral competitiveness, impediments in the financial sector and lack of effective
management of industrial estates and food production areas as well as inability of MSMEs
to scale up and stay competitive are among the issues that need to be addressed.

In the remaining Twelfth Plan period, measures will be undertaken to spearhead structural
reforms, enhance competitiveness as well as rebuild a sustainable and globally oriented
economy. Malaysia aims to be a regional leader in high growth high value (HGHV)
industries. In this regard, focus will be given on strengthening sectoral and strategic
industries resilience, driving competitiveness for sustainable growth, boosting the
efficacy of the financial support and strategising industrial estates and food production
areas. Breaking the barriers for MSMEs to scale up will be given priority to boost the
growth and increase contribution to the economy. These include accelerating MSMEs
supply chain integration into domestic and global value chain. Successful implementation
of these measures will contribute in achieving high income, competitive and resilient
economy for a sustainable growth towards becoming top 30 economies in the world.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-3

Progress, 2021-2022
In the Twelfth Plan period, a total of 38 targets were set under the theme of resetting the economy. 15 of the targets were achieved,
20 targets are on track, while the remaining three targets are lagging during the review period, as shown in Exhibit 3-1.

Exhibit 3-1
Performance of Selected Targets
Boosting Productivity Growth
Average Growth of Labour Productivity

2.5% 0.1% 1.5% 0.3% 3.8% 0.4%

2021-2025 2021-2022 2021-2025 2021-2022 2021-2025 2021-2022

Agriculture Mining Construction

4.3% 5.4% 3.6% 3.6%

2021-2025 2021-2022 2021-2025 2021-2022

Manufacturing Services
 Mid-Term Review of the Twelfth Malaysia Plan
3-4 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Expanding Export Markets

Total Exports

RM90.6 RM120.9 RM81.5 RM117.3 RM2.7 RM6.1

billion billion billion billion billion billion

2025 2022 2025 2022 2025 2022

Agriculture Mining Construction

RM1,075.6 RM1,304.7 RM171.2 RM140.3

billion billion billion billion

2025 2022 2025 2022

Manufacturing Services

Strengthening the Effectiveness of Financial Intermediation Ecosystem

Financial Capital
Services Completed Market Completed
Blueprint 3 Masterplan 3

2021 2022 2021 2021

Financial Services Capital Market

 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-5

Strengthening the Role of Industrial Estates and Food Production Areas

In
80% 75.1% 15% progressa

2025 2022 2025 2022

Utilisation Rate of Dedicated Increase Utilisation Rate in

Food Production Areas Selected Industrial Estate

Improving Governance and Policy

National
DAN 2.0 Chemical
In Construction
& Completed Industry Completed
progressc Policy
DAKN2030b Roadmap
2030

2021 2022 2021 2022 2021 2021

Agriculture Mining Construction

New New
Industrial In Services In
Master Plan progress Sector progressd
2030 Blueprint

2021 2022 2021 2022

Manufacturing Services

Notes: a Will be reported by MIDA in early 2024.

b
National Agrofood Policy 2021-2030 (DAN 2.0) and National Agricommodity Policy 2021-2030 (DAKN2030).
c
Chemical Industry Roadmap is expected to be launched in 2023.
d
Selected services subsectors will be incorporated in the New Industrial Master Plan 2030.
 Mid-Term Review of the Twelfth Malaysia Plan
3-6 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Accelerating the Development of Strategic and High Impact Industries

RM120 RM113.2 RM495 RM593 RM89 RM65

billion billion billion billion billion billion

2025 2022 2025 2022 2021-2025 2021-2022

Value Added of Export Value of Total Approved Investment

Electrical and Electronics Electrical and Electronics Products of Global Services

RM30 RM15.3 30,000 28,000 RM31.9 RM26.3

billion billion jobs jobs billion billione

2025 2022 2021-2025 2021-2022 2025 2021

Revenue from the Job Opportunities Created in the Contribution of Creative

Aerospace Industry Aerospace Industry Industry to GDP

RM73 RM28.2
5.5% 10.8% billion billion 8.1% 7.4%

2021-2025 2021-2022 2025 2022 2025 2022

Average Growth of Total Inbound Contribution of Halal

Domestic Visitors Tourist Expenditure Industry to GDP

RM56 RM59 RM10 RM783

billion billion billion million

2025 2022 2021-2025 2021-2022

Export Value of Halal Products Total Approved Investment in

Biomass Industry
Note: e The contribution of the Creative Industry to GDP is based on preliminary data.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-7

Boosting Capabilities of Entrepreneurs and Enterprises

RM60 RM45.5 RM2.8 RM1.4 RM149 RM26.8

billion billion billion billion million million

2025 2022 2025 2022 2025 2022

Revenue of Cooperatives Revenue of Pertubuhan Revenue of Persatuan

Peladang Kawasan (PPK) Nelayan Kawasan (PNK)

45% 38.4% 25% 10.5% 3.5% 7.5%

2025 2022 2025 2022 2021-2025 2021-2022

Share of MSMEs Share of MSMEs Average Growth of

to GDP to Exports Labour Productivity of MSMEs

90% 98.1%

2025 2022

MSMEs to Digitalise
Business Operations
 Mid-Term Review of the Twelfth Malaysia Plan
3-8 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Achievement by Priority Area

Priority Area A: Boosting Productivity Growth

Strategy A1: Moving up the Value Chain

Improving Operational and Production ● 13 Agrofood Parks equipped with modern farming facilities
Process ● 8,479 hawkers and small traders adopted multi-channel payment gateways under the Retail
Digitalisation Initiative
● 122 companies approved for matching grants of RM44.5 million under the Industry4WRD
Intervention Fund

Increasing High Value-Added Activities ● 11 high sea vessels modernised for deep and high sea fishing
● Six pilot projects on road and bridges using advanced materials and innovative technologies
implemented
● Six premium wellness packages amounting to RM6.9 million through partnerships between
hotels and private hospitals which offer premium services introduced in 2022

Accelerating Talent Development ● Four collaborative training programmes between universities and industries for the
construction sector conducted and benefitted 1,268 students
● 2,085,950 participants trained in the upskilling and reskilling programmes of the Human
Resource Development Corporation

Strategy A2: Strengthening Financial Capability

Enhancing Incentives and Financial ● 92.7% of RM1 billion of Dana Jaminan Makanan disbursed
Assistance ● RM251.2 million of the Domestic Investment Strategic Fund disbursed
● RM68.5 million of the High Impact Fund disbursed

Introducing New Financing Mechanism ● 61% of RM60 million of the Agrofood Value Chain Modernisation Programme fund disbursed
and Incentives for Technology Adoption

Strategy A3: Scaling Up Successful Productivity Nexus

Expanding the Coverage of ● The construction and Built Environment Productivity Nexus and the Logistics Productivity
Productivity Nexus Nexus established in 2022

Enhancing Effectiveness of ● 114 projects implemented under the 11 Productivity Nexus

Productivity Nexus Initiatives ● Industry Digital Roadmap for Engineering and Industry Digital Roadmap for Legal formulated
by the Professional Services Productivity Nexus (PSPN)
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-9

Strategy A4: Scaling Up Green Practices

Accelerating the Adoption of Green ● 2,679 farms certified with MyGAP certification
Practices among Industries ● 5.6 million hectares oil palm planted areas certified with Malaysian Sustainable Palm Oil
(MSPO) as at end 2022
● MSPO awareness programmes
○ 326 sessions of Hari Bertemu Pelanggan/Kaunter Bergerak MSPO involving 11,799
smallholders
○ 132 MSPO certification briefings involving 7,965 smallholders
● 52% of mines and quarries attained at least 3 stars based on the Sustainability Rating of the
Mining Sector in 2022
● 783 applications approved under the Green Investment Tax Allowance (GITA) and the Green
Income Tax Exemption (GITE)

Enhancing Implementation Mechanisms ● Designs for 29 construction projects assessed using the Green Rating Assessment
for Green Practices ● 4,577 green products and services received the MyHijau Mark recognition
● RM30 million disbursed under the Sustainable and Green Biz Financing Scheme

Priority Area B: Expanding Export Markets

Strategy B1: Improving Market Efficiency

Connecting Suppliers and Consumers ● 8,906 agropreneurs and 7,823 products registered in the AgroBazaar Online platform with a
through Digital Platforms total transaction of RM10,188,121

Positioning Malaysia as a Regional ● 33 logistics companies, including 21 local companies accredited as Authorised Economic
Logistics Hub Operator

Strategy B2: Empowering Industry to Compete in the Domestic and Global Markets

Scaling Up Capacity and Capability ● One consortium established under the PSPN and two projects secured in Timor Leste
of Industry Players ● The National Oil & Gas Services and Equipment (OGSE) Industry Blueprint 2021-2030
completed in 2022
● RM8.5 million apportioned to 36 companies under the OGSE Development Grant
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3-10 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Strategy B3: Strengthening Trade Facilitation

Leveraging Trade Agreements ● The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) entered
into force on 29 November 2022
● Regional Comprehensive Economic Partnership (RCEP) Agreement entered into force on
18 March 2022
● Negotiations on Indo-Pacific Economic Framework commenced in 2022

Intensifying Marketing and Exports ● 18 franchise companies with a potential investment of RM689.9 million participated in trade
Promotion missions
● 16 products by MSMEs placed in the local and foreign supermarkets operating in Malaysia
under Access to Retail Programme
● 2,080 companies with a potential sale of RM91.8 billion utilised market expansion grants

Priority Area C: Strengthening the Effectiveness of Financial Intermediation Ecosystem

Strategy C1: Transforming the Financial Ecosystem to Meet Future Economic Needs

Promoting Innovation and ● Implemented future-proof key financial infrastructure

Competitiveness to Enhance Efficiency ○ Increased e-payment adoption, from 170 transactions per capita in 2020 to 291 in 2022
○ Expanded cross-border payment linkages with Thailand, Indonesia and Singapore using
QR code
● Enhanced pathways for new digital innovation
○ Five licenses awarded for digital banks
○ Live-testing of five new Regulatory Sandbox applications
○ Enabled approximately 10 million digital account openings in the financial sector through
the Electronic Know-Your-Customer initiative
● RM30 million Digital Innovation Fund established in 2022

Facilitating More Financing across ● Enhanced financing needs for small and medium enterprises (SMEs) and the underserved segment
Business Life Cycle ○ Total financing through BNM’s Fund for SMEs increased RM8 billion, from RM23.1 billion
in 2020 to RM31.1 billion in 2022
○ Growth of non-debt financial solutions, with RM475 million of CAKNA scheme
applications approved as at end 2022, from RM21 million as at end 2021
● Review of liberalisation of equity crowdfunding and peer-to-peer frameworks facilitated
7,218 MSMEs to raise more than RM4.4 billion
○ Continued co-investments through the Malaysia Co-Investment Fund (MyCIF)
○ Increased fundraising limits and widened scope of permitted issuers
○ Opened registration for new players
● Enhanced public market efficiency through streamlining of the Access, Certainty, Efficiency
(ACE) market listing process
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-11

Strategy C2: Enhancing the Resilience and Governance of the Financial System

Strengthening Safeguards for Financial ● More than 2.8 million customers including SMEs benefitted from loan repayment assistance
Stability in 2021
● Strengthened consumer safeguards against improper advice and mis-selling
○ Policy documents on Bancasurrance/Bancatakaful as well as Prudent and Professional
Conduct by Financial Advisers issued
● Malaysia re-elected to the International Organization of Securities Commissions (IOSCO) Board
● More collaborative approach to financial safeguards through the signing of the IOSCO Asia
Pacific Regional Committee Multilateral Memorandum of Understanding for Supervisory
Cooperation in 2022

Enhancing Good Governance in the ● Intensified efforts to strengthen cyber security resilience
Financial Sector ○ Industry-wide key measures to combat financial scams implemented
○ The National Scam Response Centre established
● Strengthened domestic institutional fund practices
○ Principles of Good Governance for Government-Linked Investment Companies (GLICs) released
○ Malaysian Code for Institutional Investors 2022 updated
● Bursa Malaysia Listing Requirements Rules on board quality, transparency and diversity
amended in 2022

Strategy C3: Promoting a Sustainable and Inclusive Financial System

Promoting the Islamic Finance Agenda ● The Value-based Intermediation Financing and Investment Impact Assessment Framework
(VBIAF) Sectoral Guides for the first and second cohorts issued
● Islamic Capital Market products and services expanded through the issuance of the
Sustainable and Responsible Investment linked (SRI-linked) and expansion of Waqf-Featured
Fund Frameworks

Advancing the Financial Inclusion and ● Access to financial services enhanced through the expansion of bank agents, with 96.2% of
Literacy Agenda mukim served as at end 2022 from 95% as at end 2020
● The Malaysian Financial Literacy and Capability Index improved from 57.1 points in 2018 to 59 in 2021
○ Sustained efforts in elevating financial literacy through the Financial Education Network (FEN)
● Continued holistic approach in protecting and empowering investors through various
education outreach programmes and social media engagements

Enhancing Sustainable Financial Services ● Enhanced climate resilience of the financial sector
○ The Climate Change and Principle-based Taxonomy rolled out
○ Standards and frameworks on climate risk management practices issued
○ The Principles-based Sustainable and Responsible Investment Taxonomy for the Malaysian
Capital Market issued in 2022
○ The Climate Data Catalogue published as a reference for the financial sector in 2022
● Greening Value Chain Programme and NaviGate: Capital Market Green Financing Series
launched
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Priority Area D: Strengthening the Role of Industrial Estates and Food Production Areas

Strategy D1: Achieving Balanced Industrial Estates Development

Improving Industrial Estates Distribution ● Economic Accelerator Projects promoted along the East Coast Rail Link (ECRL)
for Balanced Development ○ Malaysia-China Kuantan International Logistics Park at ECRL Kuantan Port City Station
○ Integrated sustainable industrial township at Kapar ECRL Station
● RM17.6 million disbursed to 10 existing industrial estates for upgrading basic infrastructure
in Kelantan, Perak, Pulau Pinang, Sarawak, Selangor and Terengganu

Priority Area E: Improving Governance and Policy

Strategy E1: Strengthening Coordination and Collaboration

Enhancing the Effectiveness of ● The establishment of MyMudah unit in all government agencies approved in 2021
Existing Mechanism

Strategy E2: Strengthening Policies and Legislation

Developing New and Reviewing ● New Investment Policy launched in 2022

Existing Policies for Sectoral ● National Agricommodity Policy 2021-2030 launched in 2022
Development ● National Agrofood Policy 2021–2030 launched in 2021
● National Construction Policy 2030 launched in 2021
● Natural Gas Roadmap Study completed in 2021

Priority Area F: Accelerating the Development of Strategic and High Impact Industries

Strategy F1: Boosting Electrical and Electronics Industry in Moving Up the Value Chain

Strengthening the Electrical and ● The Electrical and Electronics Roadmap: Technology Development 2021–2030 launched in 2022
Electronics Industry Ecosystem for ● 180 students participated in MOHE-INTEL Elite Internship Programme in the field of chip design
Higher Value Chain

Promoting High Adoption of Technology ● Seven SMEs benefitted from the Vendor Development Programme to adopt 4IR technologies
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-13

Uplifting the Development of Talent ● Industry4WRD electrical and electronics (E&E) talent development programmes
and Capability ○ 242 instructors and 54 master trainers in selected 4IR technologies trained under the
Training of Trainers (ToT) programmes
○ 84 trainees involving 15 employers from the E&E industry trained under the RiSE4WRD
programmes
● 467 employers registered and 2,608 jobseekers hired within the E&E industry through
MYFutureJobs in 2021

Enhancing Research and Development ● RM500 million matching grant allocated for research and development (R&D) in E&E industry
as well as Design and Development ● RM147.4 million venture capital funding allocated for investments in high growth and high
technology companies

Strategy F2: Enhancing Competitiveness of Global Services

Enhancing Talent and Capability of ● 2,844 high-value job opportunities offered with investment amounting to RM2.8 billion
Global Service Providers

Strategy F3: Establishing a Sustainable Aerospace Industry

Developing a Sustainable Aerospace ● National Aerospace Industry Corporation Malaysia incorporated in 2022
Ecosystem ● RM500 million matching grants allocated for R&D in aerospace industry

Venturing into Sustainable Energy ● Sustainable Aviation Energy Task Force established in 2021
● Sustainable aviation fuel from the refining of used cooking oil tested on two commercial flights

Strategy F4: Maximising the Potential of the Creative Industry

Upskilling Talent to Match Industry ● 15 companies and 124 participants trained in Creator Studio in 2022
Needs ● Malaysia Creative Capacity Enhancement Programme developed in 2021
● 22 Technical & Vocational Education and Training (TVET) programmes offered by Akademi
Seni Budaya dan Warisan Kebangsaan (ASWARA) as at end 2022

Strengthening Product Development ● Digital Content Fund expanded for the music industry in 2022
and Promotion

Strategy F5: Re-energising the Tourism Industry

Restoring Tourist Confidence ● 850 tourism industry players trained under the Malaysia Virtual Experience programme in 2022
● The Tourism Accommodation Digital Roadmap developed in 2022

Enhancing Quality of Products and ● 11 workshops and 21 visits conducted for tourism package development
Services
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3-14 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Enhancing Sustainability of Tourism ● Malaysia Travel, an interactive digital brochure mobile application launched in 2022
Products

Strengthening the Malaysia Brand ● Sayangi Malaysia campaign commenced in 2022

and Marketing Strategies ● 521,448 seats sold for domestic and international flights in 2022
● Strategic cooperation between Tourism Malaysia with Emirates Airline and Qatar Airways
in 2022

Intensifying Domestic Tourism ● 29,198 packages amounting to RM9.6 million sold during eight Jualan Cuti-Cuti Malaysia
roadshows in 2022

Strategy F6: Fostering Competitiveness of Inclusive Halal Industry

Uplifting the Development of Halal ● 102 individuals obtained Sijil Kemahiran Malaysia through four halal National Occupational
Talent Skills Standards (NOSS) as at end 2022
● Five higher education institutions (HEIs) participated in halal talent development programmes
in 2022

Accelerating Halal Industry Development ● 110 companies benefitted from the Halal Home Grown Champion programme, generating
RM328.7 million sales in 2021

Improving Halal Product Competitiveness ● Malaysia halal products penetrated into 17 countries as at end 2022

Positioning Malaysia as a Global Halal Hub ● RM15.9 million potential halal investment recorded in 2022
● A framework of Wakaf-Usahasama developed in 2022

Strategy F7: Intensifying Smart Farming Activities

Accelerating the Adoption of Modern ● Geospatial information systems for improvement of operational efficiency adopted by FELDA
Technologies

Enhancing Participation of Technology ● 43 smart farming technologies identified for adoption

Providers

Empowering Local Communities ● 12,570 individuals involved in community farming

Strategy F8: Realising the Potential of Biomass Industry

Developing Local Technology through ● 25 companies involved in developing local technology in biomass industry
Research, Development, Commercialisation ● Research projects to produce sustainable aviation fuel (SAF) from bio-materials commenced
and Innovation (R&D&C&I) in 2021
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-15

Accelerating the Development of High ● Six R&D projects related to biomass implemented
Value-Added Products and Services ● Oil Palm Based Beef Cattle Feed Pellet Formulation, an innovative biomass product produced
in 2022
● Two memorandum of agreements signed for biomass initiatives
○ Evaluating oil palm empty fruit bunch for moulded pulp packaging products
○ Producing activated carbon from bamboo and oil palm biomass for heavy metal removal
from wastewater and carbon dioxide absorption

Promoting Utilisation of High ● A social awareness programme on biomass products held at the National Seminar on Palm Oil
Value-Added Biomass Products Milling, Refining, Environment and Quality 2022

Priority Area G: Boosting Capabilities of Entrepreneurs and Enterprises

Strategy G1: Creating Innovative and Sustainable Entrepreneurs

Enhancing Entrepreneurship ● 441 programmes benefitting 1.6 million MSMEs implemented

Development Programmes

Promoting Innovation-Driven ● Business Accelerator Programme 3.0 supported 525 companies

Entrepreneurs ● Malaysia Commercialisation Year initiative commercialised 151 MSMEs R&D products
● Productivity improvement programmes
○ RM3 billion of operational cost saving achieved under the Productivity Improvement Through
Innovation
○ 6,000 companies adopted technology through the Digital Technology Adoption Programme

Strategy G2: Promoting Inclusive Participation through Micro, Small and Medium Enterprises, Cooperatives and Agriculture-Based
Associations

Increasing MSMEs Contribution to the ● 29 anchor companies offered business opportunities to 1,288 registered vendor companies in
Economy vendor development programme
● 22 companies benefitted from Program Peningkatan Industri Strategik dan Syarikat Berprestasi
Tinggi (PRESTIGE) matching grant for technology adoption and market expansion
● 865 companies received financial incentives under the eTrade 2.0 programme

Increasing Market Access and ● Program Promosi Pasaran Tempatan dan Antarabangsa for timber sector generated RM13.7
International Trade Opportunities million sales in 2022
● Program Tanaman Baharu Kenaf generated RM5.6 million sales in local and international
markets in 2022
● 1,647 MSMEs benefitted from Program Pembangunan UDA in 2022
● 338 MSMEs participated in the Global Linkages SME Programme (GLOSMEP)
 Mid-Term Review of the Twelfth Malaysia Plan
3-16 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Capitalising Cooperatives, Agriculture- ● Malaysia Social Entrepreneurship Blueprint 2030 launched in 2022
Based Associations and Social Enterprises ● A New Accreditation Framework for social enterprises introduced in 2022
in Developing Entrepreneurs ● 48 social enterprises with value of total sales turnover of RM100 million accredited in 2022
● 279 Pertubuhan Peladang Kebangsaan (PPK) and 103 Pertubuhan Nelayan Kebangsaan (PNK)
established as at end 2022

Strategy G3: Creating a Conducive and Holistic Ecosystem for Entrepreneurship

Enhancing Governance, Regulations ● Majlis Pembangunan Usahawan, Koperasi, Penjaja dan Peniaga Kecil Peringkat Daerah established
and Institutional Roles in 2022

Improving Access to Financing ● 70,463 entrepreneurs benefitted from RM1.1 billion micro financing offered in 2022
● Program Intervensi Peluang Kedua
○ 664 MSMEs assisted in financial restructuring
○ 40 MSMEs participated in an intensive mentoring programme
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-17

Issues and Challenges

During the review period, measures to restore the economic growth momentum have made some progress in several areas. However, several issues and
challenges continue to hamper efforts in resetting the economy towards greater resilience. Notable issues and challenges, which need to be addressed
are lacklustre performance of economic sectors and industry development, lack of sectoral competitiveness, impediments in the financial sector, lack of
effective management of industrial estates and food production areas as well as inability of MSMEs to scale up and stay competitive.

Lacklustre Performance of Economic Sectors and Industry Development

I
Economic Sectors Global Services
● Slow transition towards high value-added activities ● Deterrents in attracting investments
● Lack of significant structural economic reforms o Lack of energy support to operationalise
data centres
Electrical and Electronics Industry o Unattractive tax incentives
● Shortage of highly skilled front-end design ● Lack of tracking and monitoring mechanisms
engineers and researchers on priority areas
● Limited local R&D activities and mostly focused
on back-end manufacturing activities Halal Industry
● Low investment in automation, new technology ● Lack of talent
and innovation
● Overlapping functions of agencies

Aerospace Industry ● Lack of integrated database

● Absence of framework in developing new ● Dependency on traditional industry and

integrated aerospace clusters export markets

● Insufficient skilled talent to meet industry Tourism Industry

requirements
● Lack of technology adoption and slow transition
● Constraints and complexities of regulatory
towards digital marketing
requirements
● Outdated and incomprehensive laws and
Creative Industry regulations

● Lack of coordination and monitoring on ● Unsustainable tourism

initiatives and programmes
Smart Farming
● Lack of integrated database
● Limited access to financing for technology
● Lack of awareness, interest and support
adoption
for career advancement
● Lack of interest and awareness among youth
Biomass Industry ● Lack of collaboration between technology
● Inconsistent supply of biomass feedstock providers and farmers

● Lack of access to financing for smallholders and industries

 Mid-Term Review of the Twelfth Malaysia Plan
3-18 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Lack of Sectoral Competitiveness Impediments in the Financial

● Low technology and digital adoption
Sector
II III
o Low acceptance of the Malaysian Health Data Warehouse ● Slow state of technological readiness
(MyHDW) system among private healthcare institutions o Slow implementation of infrastructure enablers
o Absence of a comprehensive and real-time database impedes technological adoption
on Small and Medium Professional Practices (SMPPs) o Shortage of skilled workforce with technology
o Absence of a centralised and digitalised farmers database capabilities

o Lack of technology adoption in controlling high o Heightened risk of cyber incidences and financial scams
post-harvest losses ● Slow transition towards green and sustainable practices
o Lack of motivation to adopt advanced technology o Lack of policy clarity at the national level on
and readiness to migrate to Industry 4.0 net-zero objectives
● Insufficient and incompetent workforce in the o Low participation of companies towards low
construction sector carbon transition
● Absence of supply chain management system in o Lack of financial assistance and incentives
the manufacturing sector
● Challenges in strengthening Malaysia position as a
● Inadequate governance framework global Islamic financial centre
o Absence of guidelines for environmental, social ● Continuous gaps in financial literacy and awareness
and governance (ESG) adoption
o Gaps in terms of product knowledge, financial
o Outdated policy in mineral development numeracy and planning for long-term financial goals
o Lack of low carbon financing incentives in agriculture sector o Low levels of digital literacy and awareness of
o Lack of planning and coordination in development cyber hygiene
of gas market
o Inefficient management of incentives
Inability of MSMEs to Scale Up
● Inadequate market expansion V
and Stay Competitive
o Low market penetration and non-uniformity ● Inadequate policies and initiatives in scaling up MSMEs
in ways of doing business ● Disruptions in the supply chain and poor linkages
o Lack of efforts in leveraging on free trade ● Lack of awareness and framework on ESG adoption
agreements (FTAs) by SMPPs
● Lack of coordination and monitoring on
o Low stakeholder participation in developing and initiatives and programmes
commercialising premium wellness packages
● Financing constraints

Lack of Effective Management o Fragmented sources

of Industrial Estates and Food o Limited access to scale up

Production Areas
IV o Lack of alternative financing
● Low awareness and limited investment in
● No centralised coordinating body on industrial estates digitalisation and emerging technologies
● Limited farm size for economies of scale ● Shortage of skilled workforce
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-19

Way Forward, 2023-2025

In the remaining Twelfth Plan, measures will continue to be undertaken in resetting the economic sectors towards greater resilience. This will be implemented
by strengthening sectoral and strategic industries resilience, driving competitiveness for sustainable growth, and boosting the efficacy of the financial
support. Efforts will be continued to strategise industrial estates and food production areas as well as breaking the barriers for MSMEs to scale up.

Focus Area A: Focus Area C:

Strengthening Sectoral and Strategic Boosting the Efficacy of the Financial
Industries Resilience Support

Strategy A1: Strategy C1:

Accelerating Structural Economic Reforms Advancing Technological Adoption
Strategy A2: Strategy C2:
Elevating Electrical and Electronics Industry Elevating Sustainable Financing
Strategy A3: Strategy C3:
Diversifying Global Services Strengthening Malaysia as a Global Islamic Financial Centre
Strategy A4: Strategy C4:
Accelerating Aerospace Industry Growth Increasing Financial Literacy and Awareness
Strategy A5:
Rejuvenating Creative Industry
Strategy A6:
Boosting the Recovery of Tourism Industry
Strategy A7: Focus Area D:
Creating a Robust and Diversified Halal Industry Strategising Industrial Estates and
Strategy A8: Food Production Areas
Intensifying Smart Farming Activities
Strategy D1:
Strategy A9:
Enhancing Industrial Estates and Food Production Areas
Realising the Potential of Biomass Industry

Focus Area B: Focus Area E:

Driving Competitiveness for Breaking the Barriers for MSMEs to
Sustainable Growth Scale Up

Strategy B1: Strategy E1:

Enhancing Technology Adoption and Digitalisation Unleashing the Potential of MSMEs, Cooperatives, Agriculture-
Strategy B2: Based Associations and Social Enterprises
Elevating Talent Acquisition Strategy E2:
Strategy B3: Integrating MSMEs into Domestic and Global Supply Chain
Strengthening Value Chain Strategy E3:
Strategy B4: Improving Accessibility of Financing and Capacity Development
Improving Governance Mechanism Programmes
Strategy B5: Strategy E4:
Expanding Export Markets Accelerating Productivity Growth among MSMEs
 Mid-Term Review of the Twelfth Malaysia Plan
3-20 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Selected Targets, 2021-2025

Strengthening Sectoral and Strategic Industries Resilience

Total Approved
RM125.5 Value Added of RM643 Export Value of Electrical RM89 Investment of Global
billion Electrical and Electronics billion and Electronics Products billion Services

2025 2025 2021-2025

Job Opportunities
RM30 Revenue from the 30,000 Created in the RM31.9 Contribution of Creative
billion Aerospace Industry jobs Aerospace Industry billion Industry to GDP

2025 2021-2025 2025

RM76.8 Contribution of Halal

5.5%
Average Growth of
Domestic Visitors billion
Total Inbound
Tourist Expenditure
8.1% Industry to GDP

2021-2025 2025 2025

Total Approved
RM63.1 Export Value of RM3 Investment in
billion Halal Products billion Biomass Industry

2025 2021-2025
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-21

Driving Competitiveness for Sustainable Growth

Average Growth of Labour Productivity

1.4% Agriculture Sector 2.8% Mining Sector 4.3% Construction Sector

2021-2025 2021-2025 2021-2025

4.2% Manufacturing Sector 3.8% Services Sector

2021-2025 2021-2025

Total Exports

RM125.6 Agriculture Sector

RM127.7 Mining Sector
RM6.5 Construction Sector
billion billion billion

2025 2025 2025

RM1,467.8 Manufacturing Sector

RM209.4 Services Sector
billion billion

2025 2025
 Mid-Term Review of the Twelfth Malaysia Plan
3-22 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Strategising Industrial Estates and Food Production Areas

Utilisation Rate of Increase Utilisation Rate

80 % Dedicated Food 15 % in Selected Industrial
Production Areas Estates

2025 2025

Breaking the Barriers for MSMEs to Scale Up

RM60 Revenue of Cooperatives

RM2.8 Revenue of Pertubuhan RM149 Revenue of Persatuan
billion billion Peladang Kawasan (PPK) million Nelayan Kawasan (PNK)

2025 2025 2025

Average Growth of
Share of MSMEs
3.5 % Labour Productivity of 41% Share of MSMEs to GDP 15% to Exports
MSMEs

2021-2025 2025 2025

MSMEs to Digitalise
90% Business Operations

2025
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-23

Focus Area A:
Strengthening Sectoral and Strategy A7 Creating a Robust and Diversified Halal Industry

Strategic Industries Resilience

The development of economic sectors will focus on strengthening industries Strategy A8 Intensifying Smart Farming Activities
competitiveness to adapt to new global supply chain and generate economic
growth. Future ready talent, technology adoption and innovation, quality
investment on high-value activities and products, market expansion,

governance and enabling ecosystem will be emphasised for improvement. Strategy A9 Realising the Potential of Biomass Industry
Thus, strategies will be implemented by accelerating structural economic
reforms and enhancing the growth of strategic industries. These include
elevating E&E industry, diversifying global services, accelerating aerospace
industry growth, rejuvenating creative industry, boosting the recovery Strategy A1:
of tourism industry, creating a robust and diversified halal industry,
intensifying smart farming activities and realising the potential of biomass
Accelerating Structural Economic Reforms
industry.
Transforming Manufacturing Sector
The manufacturing sector will be shifted towards smart manufacturing
through advanced 4IR technology, skilled talent, high value-added activities
Strategy A1 Accelerating Structural Economic Reforms and compliance to ESG to achieve industries resilience and stay competitive
globally. The New Industrial Master Plan 2030 will provide a pathway in
transforming the manufacturing sector. Measures will be undertaken to
develop a robust supply chain and strengthen company readiness to adopt
Strategy A2 Elevating Electrical and Electronics Industry
effective solution through market-proven technology. These measures will
be spearheaded by MNCs and large local companies with related vendors
and supported by private sector financing.

Strategy A3 Diversifying Global Services

Accelerating Services Sector
In accelerating the services sector, efforts will be undertaken to boost
Strategy A4 Accelerating Aerospace Industry Growth tourism activities by encouraging the utilisation of digital technologies
and streamlining regulations. The increase in tourism activities will have
a trickle-down effect to other subsectors such as retail trade, food and
beverage as well as accommodation. Furthermore, measures will be
Strategy A5 Rejuvenating Creative Industry implemented to drive modern services subsectors1 by enhancing digitalisation
and strengthening collaboration among stakeholders. A comprehensive
database on the professional services will be developed by consolidating
and maintaining real time data. This initiative will be undertaken through
Strategy A6 Boosting the Recovery of Tourism Industry collaboration among government agencies and industry players. Meanwhile,
public-private partnership will be strengthened in improving medical
facilitation and promoting private healthcare services. These efforts
will enhance the competitiveness, thus accelerate the services sector.

1
Consists of information & communication, finance & insurance, business services,
private health services and private education services subsectors.
 Mid-Term Review of the Twelfth Malaysia Plan
3-24 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Elevating Construction Sector

Box 3-1
In the construction sector, efforts will be undertaken to emphasise green
building practices in addressing the sustainability concerns. The adoption Strengthening Agrofood towards
of advanced material and construction technology will be further pursued
to reduce energy consumption and operating costs. Meanwhile, workers
Food Security
will be trained to acquire necessary skills for the changing demands of
the construction industry. These efforts will elevate the sector to be more
Enhancing Domestic Production
efficient, environmentally conscious, and technologically advanced with
The agrofood subsector remains important to ensure food security
skilled workforce.
in Malaysia. According to Food and Agriculture Organisation of the
United Nations, food security exists when all people, at all times,
Advancing Agriculture Sector have physical, social and economic access to sufficient, safe and
nutritious food. Despite increased local production, the supply of
In the agriculture sector, focus will be shifted to strengthening food security
agrofood is still unable to meet local demand. This underpin the need
and improving competitiveness of the agricommodity subsector. This will
for higher productivity to ensure food availability. According to data
be achieved by intensifying smart farming activities across all subsectors
from the Kajian Perancangan Guna Tanah Kawasan Sumber Makanan
including accelerating adoption of technologies, attracting talent, increasing
Negara, land use for agrofood activities in the Peninsular Malaysia
participation of technology providers as well as expanding farm size to boost
is at 0.9 million hectares in 2021. This constituted 16.3% of the 5.4
domestic production. Particular attention will also be given in embracing
million hectares agricultural land in the Peninsular Malaysia, while
sustainable practices and adopting mechanisation and automation in
the balance of 4.5 million hectares are for agricommodity, as shown
plantation subsector to promote activities that combine sustainability and
in Table 1. Areas for paddy and fruits cultivation made up more than
productivity. Specific efforts will be concentrated towards strengthening
70% of the total agrofood land use. The land use for agrofood is
selected subsectors under agrofood, namely paddy, fruits and vegetables,
estimated to increase by 1.2% by 2025, contributed mainly by the
fisheries and ruminant towards food security, as shown in Box 3-1.
increase in areas for vegetables and aquaculture. However, paddy
areas are estimated to decrease by 1.4% in the same period.

Figure 1
Agriculture Land Use, 2021

Sector Land Use (Hectares)

Overall Agriculture 5,356,141.1

Agricommodity 4,485,146.7

Agrofood 870,994.4

Paddy 378,840.7

Fruits 206,391.0

Vegetables 29,993.3

Livestock 29,932.8

Aquaculture 23,062.1

Other crops 202,774.5

Source: PLANMalaysia
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-25

In order to increase local production, the agrofood subsector needs to be

transformed towards technologically driven, yet sustainable and resilient.
Food availability relies on self-sufficiency that requires capital, manpower,
technology, and efficient management to ensure higher productivity in food Fisheries
production. In the remaining Twelfth Plan period, emphasis will be given,
particularly to subsector-specific strategies in order to boost productivity In line with the Dasar Agromakanan Negara 2021-2030 (DAN 2.0), focus will
growth and address issues faced by the related subsectors. be given to reduce pressure on marine fisheries by increasing contribution
of aquaculture to total fisheries production, from 20% in 2020 to 30%
or 650,000 metric tonnes in 2025. In achieving this target, emphasis
will be given in adopting modern equipment such as electronic feeding
system, sensors and monitoring system that will enable fast and accurate
decision making, reduce input wastages and prevent spread of diseases.
These will improve overall productivity without compromising the quality
of fish produce.
Paddy
Demand for rice is expected to increase from 2.9 million metric tonnes in
2020 to 3.2 million metric tonnes in 2025. Production of rice is expected
to reach above 3 million metric tonnes by 2025 with a total parcel area of
427,894 hectares. Measures will be undertaken to consolidate small paddy
field, ensure adequate irrigation and drainage infrastructure as well as
introduce new high yielding varieties and subsidies based on performance. Ruminant
Efforts to enhance productivity of the ruminant subsector remain as a
challenge partly due to low adoption of technology, high operation cost and
limited economies of scale. Strategies will be concentrated to increase SSR
of beef from 27.7% in 2020 to 50% in 2025, mutton from 16.1% to 30%
Fruits and Vegetables and fresh milk from 64% to 100%. Focus will also be given on intensifying
research in genetic enhancement and breeding techniques, improving
Production of fruits and vegetables will be increased to meet domestic and feed formulations, strengthening dairy facilities as well as consolidating
export market demand. Focus will be on non-seasonal fruits and highland small-scale ruminant farms.
vegetables. The average self-sufficiency ratio (SSR) of fruits is expected to
reach 106.5% in 2025 as compared to 100.2% in 2020, while the average Redesigning the agrofood subsector requires not only shifting farm
SSR for vegetables is expected to reach 95.1% in 2025 as compared to 90.9% practices, adopting advanced technology and enhancing productivity,
in 2020. Efforts will be focused on increasing productivity by developing but also strengthening the ecosystem to facilitate the transformation.
fruit and vegetable clusters, rehabilitating of farms, strengthening contract The end goal is to establish a resilient, inclusive, competitive and
farming arrangements and widening adoption of modern technologies. sustainable agrofood subsector in mitigating any future food security
These will ensure consistent supply of fruits and vegetables. crisis.
 Mid-Term Review of the Twelfth Malaysia Plan
3-26 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Rejuvenating Mining Sector design engineering. These initiatives are part of the Big Bold High Value
E&E HGHV Industry. In addition, specific investment missions will be
The mining sector will be transformed towards sustainability and low carbon organised for major players to attract quality investment prioritising on
aspiration through advanced technology adoption as well as talent and advanced technology into the country.
holistic ecosystem development. In this regard, the oil and gas subsector
will emphasise on future-proof digital transformation to achieve cost Strategy A3:
competitiveness along the value chain. Meanwhile, the adoption of carbon
capture and storage (CCS) will unlock new investment opportunities in Diversifying Global Services
CCS-related activities and substantively reduce emissions in the oil and
gas production. Attracting High Quality Investments

The mineral subsector will be repositioned to be more competitive and Policies in attracting quality investments will be developed to attract
sustainable. In this regard, detailed mapping of non-radioactive rare earths talent, improve ease of doing business and facilitate energy requirement
element (NR-REE) resources and a comprehensive business model which for the setting up of data centres. In this regard, a collaboration
integrates the upstream, midstream and downstream of non-radioactive rare between the Federal Government and state governments will be
strengthened to support the policy implementation. The existing tax
earths industry will be developed. These efforts are part of the initiatives
incentives will be reviewed to be more systematic, flexible and investor
under the Big Bold Rare Earths HGHV Industry. The business model will
friendly.
guide the development of a responsible mineral industry and become a
new source of economic growth.
Establishing a Database for Global Services
Strategy A2: A database for global services industry will be developed to enable data
Elevating Electrical and Electronics Industry sharing among stakeholders. This database will provide end-to-end data
with regards to the supply chain ecosystem, including classification codes
for global services companies. In this regard, tracking and mapping on the
Establishing Pool of Future-Ready Talent priority areas will be undertaken through close coordination between the
Federal Government and state governments to accelerate investment in
Local talent development programmes will be scaled up through strategic
global services.
collaboration among relevant ministries and agencies, training institutions
and industry to establish pool of future ready talent in E&E industry.
Emphasis will be given on producing skilled talent in niche areas through Strategy A4:
harmonisation of curriculum and training modules that meet the industry
needs. Efforts will be undertaken to increase front-end design engineers
Accelerating Aerospace Industry
and enhance capability of researchers to attract foreign investors in Growth
conducting R&D activities in Malaysia.
Developing Framework for Aerospace Clusters
Grooming Local Electrical and Electronics
A framework will be formulated to serve as a point of reference in planning
Companies as Leading Players in Front-End and developing new integrated aerospace clusters. This framework will
Activities support in achieving a balanced industry growth across five core areas,
namely maintenance, repair and overhaul (MRO), aerospace manufacturing,
Local companies will be nurtured in front-end manufacturing activities
engineering and design capabilities, research and technology, and human
to become major players in the global E&E value chain. The front-end capital, as well as across regions. Greater engagement with relevant
manufacturing ecosystem will be enhanced to accelerate industry transition stakeholders will be undertaken towards the formulation and adoption of
towards higher value chain, particularly in integrated circuit (IC) design, this framework, thus enabling a strategic promotion of the local aerospace
IC packaging, wafer fabrication, embedded system, testing service and industry capabilities.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-27

Enhancing Training for Future Ready Talent Strategy A6:

Talent gap in the aerospace industry will be addressed through training
Boosting the Recovery of Tourism
enhancement programmes by leveraging centre of excellence (COE). Industry
This involves introducing new modules, improving existing programmes
and continuously developing trainers in the industry. An apprenticeship Driving Digitalisation
programme at the COE will also be implemented through a structured
project that will enable industry-led skills mapping. These measures will The usage of digital technologies in the tourism industry such as cashless
address the specific skills required by the industry, investors, and the payment systems, self-check-in applications and online bookings will be
changes in technology. encouraged to reduce reliance on manual operations. In addition, tourism
service providers, particularly in rural areas, will be trained to adopt digital
Facilitating Maintenance, Repair and Overhaul technology in promoting products and services. Training on content creation
and digital marketing will be provided to homestay operators in reaching
Administrative procedures for customs duties exemption on eligible MRO out to a wider segment of the tourist market. Meanwhile, data derived
parts and components will be reviewed to be more simplified and facilitative from digital applications will be utilised to analyse tourist behaviour for
in reducing cost of doing business. List of spare parts and components better marketing and promotion strategies.
eligibility for duties exemption will also be reviewed to standardise the tax
treatment at entry points. These measures will allow for a more simplified Improving Regulatory Framework
custom procedures for MRO in attracting investment and strengthening
industry competitiveness. The Tourism Industry Act 1992 [ Act 482 ] will be reviewed to ensure
that the legislation and related regulations continue to be relevant, in line

Strategy A5: with the current development of the tourism industry and technological
advancement. A collaborative effort among Federal and state agencies, as
Rejuvenating Creative Industry well as industry players will be enhanced to develop a legislative framework
to govern the short-term rental accommodation entities and online travel
Strengthening Creative Industry Environment agencies. These measures will ensure safety and interest of consumers
are well protected and promote level playing field. In addition, Malaysia
Efforts will be undertaken to strengthen coordination and monitoring Tourism Excellence (MaTEx) certification, an industry-led initiative, will
mechanism in aligning initiatives and programmes among ministries and be reviewed to promote self-regulation in enhancing quality of tourism
agencies of creative industry. In this context, a study to strengthen the products and services.
ecosystem of creative industry will be pursued. In addition, the establishment
of creative industry satellite account will facilitate better policy planning
Promoting Sustainable Tourism
and monitoring. Meanwhile, centralised big data analytics for creative
industry will be developed to consolidate data from various sources. These The adoption of carrying capacity and limits of acceptable change in
measures will facilitate data driven initiatives, optimisation of resources sensitive ecotourism sites will continue to be encouraged. Existing fee
and better monitoring of creative industry. structure will be reviewed in reflecting actual costs of conservation
and management incurred by the government to increase awareness on
Producing Quality Creative Talent sustainable tourism among tourists. Nature-based tourism (NBT) will be
promoted to capture high-value travellers, who usually stay longer and
Programmes to increase awareness on creative career pathways will be spend more, and have smaller environmental footprint. New tourist products
introduced. In addition, industry bridging programme with local and global and sites will be identified and developed to diversify offerings, disperse
digital content studios will be intensified to produce a creative talent pool. tourists and reduce overcrowding at environmentally sensitive tourism
Furthermore, a feasibility study on the establishment of accreditation sites. Meanwhile, existing promotional and marketing strategies will be
scheme for creative industry will be undertaken to recognise skills of the shifted to position Malaysia as a premier NBT destination, leveraging the
industry players. beautiful landscape as well as diverse and rich cultural and heritage assets.
 Mid-Term Review of the Twelfth Malaysia Plan
3-28 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Strategy A7: Strategy A8:

Creating a Robust and Diversified Halal Intensifying Smart Farming Activities
Industry
Facilitating Financing for Smart Farming
Ensuring Sustainability of Halal Talent Access to financing for the agriculture sector will be further expanded
to accelerate adoption of smart farming. In this regard, a comprehensive
A proactive role will be undertaken in providing industry-specific training
information on financing will be made available in a single platform.
and certification programmes through the halal occupational framework.
Through this platform, a mechanism to matchmake financing capabilities of
This initiative will also include the establishment of halal related NOSS and
farmers with suitable technology will be introduced to facilitate application.
the development of an e-learning portal. Through this effort, the number
In addition, adoption of smart farming technology through private investment
of competent halal professionals and experts will be increased to support
will be encouraged as one of the initiatives under the Big Bold HGHV
future development of the halal industry.
Agriculture and Agro-based Industry.

Improving Coordination among Stakeholders Attracting Talent in Modern Agriculture

The initiatives in the Halal Industry Master Plan 2030 will be
Participation of youth in the agriculture sector will be intensified through
implemented to better support the halal business ecosystem. In this dedicated apprenticeship programmes in collaboration with industry
regard, the implementation will involve better coordination among players. In this regard, promotion programmes will be targeted towards
stakeholders, particularly in streamlining policy and legislation, enhancing various career opportunities in the agriculture sector. In addition, financial
infrastructure and logistics as well as improving processes and procedures. assistance and training will be expanded to young agropreneurs venturing
Better coordination will ensure a holistic development of the halal into activities related to production of food crops, livestock and fisheries
industry. as well as agro-based industry.

Leveraging Digitalisation Facilitating Technology Providers

A halal digital platform will be established to serve as a centralised hub Technology providers will be encouraged to conduct complimentary on-
for halal-related data and services. This platform will facilitate application site demonstration with farmers. In addition, incentives will be provided to
for certification, auditing and monitoring, and the exchange of data across technology providers based on technology capacity to boost productivity
the supply chain. In addition, public will easily get access to information of farmers. This measure will encourage greater adoption of smart farming
with regard to halal certified products and services. technology among farmers.

Strengthening the Position of Malaysia in the Strategy A9:

Global Market
Realising the Potential of Biomass Industry
Industry players will be encouraged to explore and tap potential new
markets for halal products and services, in advancing Islamic economic Accelerating the Development of Biomass
development. In this regard, trade promotion will be expanded through Feedstock Hub
new and existing programmes to penetrate non-traditional market and
increase the demand for halal products and services. Meanwhile, standards Collaboration with the private sector will be intensified to establish biomass
for new halal products such as medical devices, modest fashion and feedstock hub in ensuring a provision of more efficient aggregation and
pharmaceuticals will be developed to attract potential global traders. pre-treatment facilities. In addition, sharing of industry knowledge and best
These efforts will boost halal exports, penetrate new markets, and position practices among players will be facilitated through training and transfer
Malaysia in the forefront of the global halal market for these high-value of technology. These efforts will accelerate the development of the hub
products. and ensure sustainable supply of biomass feedstock.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-29

Enhancing Financing and Investment Incentive Strategy B1:

Special financial products will be introduced in collaboration with financial Enhancing Technology Adoption and
institutions to meet the needs of the biomass industry. Meanwhile, access Digitalisation
to existing financing and incentives related to green initiatives will be better
facilitated to accelerate growth of the biomass industry. These efforts will
Enhancing Data Integration for Private Healthcare
further promote investment in the biomass industry and accelerate the
transition to a more sustainable and low carbon economy. The private healthcare institutions will be encouraged to utilise the
MyHDW system. This initiative will provide an integrated, interoperable
Focus Area B: and comprehensive data for healthcare services. The system will assist
private hospitals in identifying specific services to be provided across the
Driving Competitiveness for country, thus enable rakyat to get access to quality healthcare services.
Sustainable Growth
Establishing Registry of Farmers
Competitiveness coupled with productivity growth will be pertinent
in unlocking economic advancement, improving living standards, and A registry on farmers, location, size of land, yield, types of produce
fostering sustainable development. Five strategies will be undertaken in and assistance received will be established. The registry will support
the remaining Twelfth Plan period, namely enhancing technology adoption improvement in decision making on allocation of assistance from output-
and digitalisation, elevating talent acquisition, strengthening value chain, based to outcome-based including rationalisation of subsidy. In this regard,
the collection of the information through the Agriculture Census in 2024
improving governance mechanism and expanding export markets. These
will provide a comprehensive data for this registry.
efforts will foster innovation, drive better performance in productivity,
improve competitiveness, as well as enhance economic growth and
wellbeing of the rakyat. Sustaining Indigenous Natural Gas Supply
As the upstream regulator, PETRONAS will continue to collaborate with
industry players in enhancing adoption of advanced technologies in the
Enhancing Technology Adoption and upstream sector to unlock mature gas resources. These technologies,
Strategy B1
Digitalisation including the Enhanced Oil Recovery and High Pressure High Temperature,
will be adopted for deepwater and marginal fields. Furthermore, the
digitalisation of field operations will be further enhanced to improve supply
Strategy B2 Elevating Talent Acquisition chain and ensure lower cost of production. In addition, the deployment
of CCS technology will provide opportunities to continue monetising
depleted fields and enhance new investment in oil and gas services and
equipment (OGSE) activities.
Strategy B3 Strengthening Value Chain
Accelerating Adoption of Advanced Technologies
The manufacturing sector will be transformed by adopting advanced
Strategy B4 Improving Governance Mechanism technologies of Industry 4.0. New conditions in manufacturing licensing
approval will be introduced to accelerate technology adoption. In addition,
adoption of these technologies will be a prerequisite to apply for Government
incentives. These measures will be a transformation catalyst for smart
Strategy B5 Expanding Export Markets manufacturing and contribute towards improving production efficiency,
lowering greenhouse gas (GHG) emissions and supporting supply chain
resilience.
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Strategy B2: Intensifying Mechanisation and Automation

Elevating Talent Acquisition Efforts will be intensified to advance technology integration in farming
operations of agricommodity subsector, including application of robotics,
Accelerating Talent Development drones, AI and digitalisation. Adoption of technologies in the upstream
activities will attract local workers to involve in farming operations, which
The Academy in Industry (AiI) programme, as one of the initiatives under is synonymous with 3D (dirty, dangerous and difficult) jobs. These cutting-
the Big Bold Future Ready Talent, will be a platform for greater government edge technologies have the potential to revolutionise traditional farming
and industry collaboration. AiI will be implemented in all high-impact practices, thus increasing productivity levels, while reducing dependency
industries to boost productivity growth. Digital matching of applicants on labour. These efforts will drive the agricommodity subsector towards
with potential employers according to the demand-based approach will be greater competitiveness and sustainability.
undertaken to encourage more participation. The participants of AiI will
be trained according to the level of qualifications and skills. Focus will be
given to industries with high productivity, competitive salary and wages,
Strategy B4:
significant mismatch and high shortage of skilled workers. Improving Governance Mechanism
In developing talent for the construction sector, Akademi Binaan Malaysia
will be transformed into an international TVET institution offering training
Strengthening Policy Framework for Mineral
on high demand industrial skill sets such as Building Information Modelling Development
(BIM), advanced IBS and the use of drone technology. Meanwhile, training
programmes related to construction technology and innovation will be The National Mineral Policy 2 will be reviewed, as one of the initiatives
expanded to include courses on roads and highways as well as rails and under the rare earths Big Bold, to drive the development of the mineral
slopes. This initiative will create a pool of skilled workers to meet the industry holistically based on sustainable and responsible principles.
industry demand and increase the number of accredited subprofessionals. The review will emphasise on R&D&C&I and set the directions on the
The implementation of these initiatives will continue to boost productivity development of five strategic minerals, namely NR-REE, bauxite, tin, silica
growth in ensuring the sustainability of the construction sector. and kaolin. The revision of the policy will contribute in enhancing growth
of the mineral industry as targeted under the National Mineral Industry

Strategy B3: Transformation Plan 2021–2030.

Strengthening Value Chain Expanding the Coverage of Productivity Nexus

Enhancing Supply Chain Management The Productivity Nexus will be expanded to several other industries to
improve programmes at the sectoral level. In this regard, close collaboration
The domestic supply chain will be enhanced by leveraging technological with industry associations will be further undertaken to establish the nexus
advancements, including track and trace using blockchain data and predictive governing committee to develop productivity improvement initiatives. In
analysis. The supply chain mapping exercise will be undertaken to increase addition, the role of existing nexus will be strengthened to support the
sectoral integration and facilitate decision making. These measures will transformation of the manufacturing sector, including in high value E&E
contribute to the development of a robust supply chain management system industry and specialty chemicals manufacturing. The expansion of nexus
to support domestic and global value chain. These will also mitigate any will accelerate development of skilled talent, adoption of technology and
disruptions to business operation and limit its impact to the economy. productivity growth.

Minimising Post-Harvest Losses Enhancing Adoption of Green Practices

The productivity potential will be increased by focusing on minimising post- The adoption of ESG in the manufacturing sector will be enhanced to achieve
harvest losses. In this regard, the requisite support and infrastructure facilities the aspiration of net-zero GHG emissions as early as 2050. In this regard,
along the supply chain will be improved. A comprehensive Surveillance a guide on the implementation and improvement of ESG practices within
and Intervention Supply Demand Agrofood (SISDA) system will be utilised organisations will be developed. The guide will specify the requirements
to monitor the supply and demand of agrofood along the supply chain. on establishing, maintaining, reviewing and improving ESG practices.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-31

A national OGSE sustainability roadmap will be developed to promote mechanism will be developed to assess current programmes to ensure
adoption of sustainability practices among OGSE companies. Simplified significant impact at international level, including the Enhanced Franchise
sustainability reporting standards, specifically designed for small and Development Programme and Access to Retail Programme.
medium-sized OGSE enterprises will be formulated to enhance transparency,
consistency, and comparability of ESG reporting across all OGSE companies. The SMPPs will be encouraged to form consortiums in leveraging the
This initiative will encourage more OGSE companies to comply with FTAs. These consortiums will offer a comprehensive set of customised
sustainability practices and be eligible for competitive financing. services to improve business competitiveness. This initiative will provide
more opportunities for SMPPs to venture into new international markets.
Sustainable green practices in the agriculture sector will be intensified. In
this regard, a baseline study will be conducted to develop a low carbon Private hospitals and hotels will be encouraged to establish more strategic
agriculture modelling, pioneering on the paddy subsector. The study will partnerships in developing and commercialising premium wellness packages
recommend solutions to reduce carbon footprints, as one of the initiatives nationwide. In addition, advanced technology in the areas of health, such
under the agriculture Big Bold, as well as formulate verification framework as genomics, predictive analysis and precision medicine will be incorporated
to assess carbon credit. into the wellness packages. These initiatives will create a niche market and
promote Malaysia as a preferred medical tourism destination.
Efforts will be intensified to strengthen enforcement and expand acceptance
of industry standards, such as the Malaysian Sustainable Palm Oil (MSPO),
Malaysian Timber Certification Scheme (MTCS), and Malaysian Sustainable
Focus Area C:
Natural Rubber (MSNR). Plantation subsector will be further encouraged to Boosting the Efficacy of the
Financial Support
enhance the adoption of the ESG principles, towards achieving a low carbon
and climate-resilient economy. These initiatives will enhance sustainability
practices in the agricommodity subsector and reinforce Malaysia’s position
as a responsible global player. The Government remains committed to ensure the financial sector is robust
to provide support for economic growth. Measures will be undertaken in
boosting the efficacy of the financial sector to create a strong, stable and
Formulating National Natural Gas Roadmap progressive financial system. These include advancing technological adoption,
elevating sustainable financing, strengthening Malaysia as a global Islamic
The competitiveness of domestic gas market will be boosted to encourage
financial centre as well as increasing financial literacy and awareness.
trading activities and leverage opportunities to be a regional gas market hub. In
this regard, a national natural gas roadmap will be developed which comprises
short-, medium-, and long-term strategic directions of the gas industry as
well as a framework for establishing Malaysia as a regional gas market hub. Strategy C1 Advancing Technological Adoption
Meanwhile, a delivery unit will be established to strengthen coordination
among stakeholders and drive the implementation of the roadmap.

Strategy B5: Strategy C2 Elevating Sustainable Financing

Expanding Export Markets

Strengthening Malaysia as a Global Islamic
Facilitating Market Penetration Strategy C3
Financial Centre
A collaboration with trade commissioners from various countries will
be established to educate and facilitate local businesses in penetrating
foreign markets. This collaboration will enable local businesses in gaining Strategy C4 Increasing Financial Literacy and Awareness
information on international markets and fostering relationships with
foreign partners. In addition, a structured monitoring and evaluation
 Mid-Term Review of the Twelfth Malaysia Plan
3-32 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Strategy C1: security training and certification. Reforms to better protect consumers
will also be accelerated by enacting consumer credit act and amending
Advancing Technological Adoption the Personal Data Protection Act 2010.

Embracing Digitalisation to Enhance Strategy C2:

Competitiveness and Transparency
Elevating Sustainable Financing
Measures will be undertaken to allow greater technological adoption by
improving critical ecosystem enablers and shared infrastructures as well Aligning Incentives
as removing impediments to data accessibility. Efforts will also be made
to further foster innovative digital solutions and deepen the FinTech A comprehensive study will be undertaken to review and streamline
ecosystem through liberalisation of alternative financing avenues as well government incentives to benefit more domestic investors. Matching
as enhancement of targeted capacity building and talent development grants will be gradually reduced and replaced with other incentives,
programmes. In addition, greater cost transparency will be promoted to including interest rate subsidy. This measure will ensure a conducive and
address medical claims inflation for a more sustainable insurance and takaful competitive investment ecosystem. Financial incentives for the construction
for medical and health. These initiatives will support the development of sector will be strengthened to cover every stage in the ecosystem, from
an innovative financial sector, benefitting consumers through more diverse planning to demolition, to promote advanced technology adoption. In this
options, better customised services and lower cost. regard, companies investing in BIM, IBS-related machinery and equipment
as well as construction technology and innovation will be given priority
to receive financial incentives.
Preparing Future Talent
The talent ecosystem will be further developed with strong industry-led Advancing Sustainable Financing and
initiatives to prepare the workforce of the future with the right skillsets Strengthening Ecosystem for ESG
and competencies. In this regard, the roles of industry associations, training
providers and professional bodies will be strengthened in identifying Strong inter-agency collaboration will be pursued to ensure alignment
talent development and skills needed to future-proof the workforce of of financial sector response with the national strategy to achieve
the financial sector. These initiatives will address the growing needs for net-zero GHG emission targets. This includes calibrating fiscal incentives
a workforce with strong digital skills and acumen to be in line with the to encourage green financial solutions and new instruments. Internal
financial sector transformation. competence and awareness within the financial sector will be enhanced
to promote sustainability in the financial operations.
Reducing Cyber Risks and Combatting Financial
Scams Initiatives will be undertaken to extend current engagements and
capacity building within the financial sector to consider nature-related
Efforts will continue to be undertaken to enhance digital literacy and cyber financial risks in implementing strategies and actions as well as identify
hygiene practices among financial consumers to protect from online threats. opportunities in strengthening climate resilience. In the capital market,
Collaboration with industry associations, law enforcement agencies and the Sustainable and Responsible Investment (SRI) strategic priorities will
government bodies will be pursued in raising cyber security awareness be identified to ensure a more conducive SRI ecosystem. The technical
among consumers to protect data and digital devices. In order to support screening criteria for key economic sectors will be developed with
greater technology adoption and ensure consumer protection, a regulatory the establishment of the SRI Taxonomy Plus Standards. Meanwhile,
framework on management of technology risks for capital market entities relevant guidelines will be amended to incorporate ESG into advisory
will be rolled out as guidance in improving cyber resilience. Measures will services of financial planners and unit trust consultants. In addition,
be undertaken to safeguard and strengthen cyber security ecosystem in a guidance on ESG considerations and due diligence for investments
the financial industry by promoting standardisation in cyber resilience in private markets and alternative capital market segments will be
terminology at the national level as well as facilitating specialised cyber introduced.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-33

Strategy C3: Focus Area D:

Strengthening Malaysia as a Global Strategising Industrial Estates and
Islamic Financial Centre Food Production Areas
Strategising Development for Islamic Finance The role of industrial estates and food production areas is important for
and Capital Market a balanced industrial growth and attracting investment. Measures will
be undertaken to better plan, coordinate and manage IEs and FPAs. In
Initiatives will be undertaken to promote greater penetration of retail this regard, focus will be given on enhancing industrial estates and food
and institutional investors into the Islamic fund management industry. production areas as growth catalysts.
A framework will be introduced to expand the breadth and depth of
Islamic fund management products as well as promote greater awareness
of the Islamic finance. The Islamic finance ecosystem in Malaysia will be
Strategy D1 Enhancing Industrial Estates and Food
strengthened by establishing the Malaysia International Islamic Financial Production Areas
Centre (MIFC) Leadership Council, modernising Shariah contract applications
to drive impactful innovations as well as strengthening ecosystem enablers
to advance Islamic economic development. These efforts are part of the
initiatives under the Big Bold Fiscal Sustainability and Financial System.
Strategy D1:
The entire ecosystem with a strong industry leadership will be aligned to Enhancing Industrial Estates and Food
realise the full potential of Islamic finance and further promote ‘value-based
Production Areas
growth’, characterised by progressiveness, sustainability and inclusivity.
A guide to promote the application of Maqasid al-Shariah principles in
the capital market will be introduced to achieve a balance between
Developing a Guideline for Industrial Estates
economic development and societal good, in alignment to the Malaysia Planning and Management
MADANI aspiration. This guide will effectively include ESG elements into
A guideline will be developed to streamline industrial estates management.
assessment criteria of the Shariah screening, provide a source of reference
A Geographical Information System based dashboard will be developed as
to stakeholders and promote growth of SRI instruments.
a tool to map the development of industrial estates. The utilisation rate
of industrial estates will be monitored effectively through this dashboard.
Strategy C4: These measures will enhance industrial estates management and assist
Increasing Financial Literacy and potential investors in identifying suitable locations for investment.

Awareness Expanding Farm Size for Economies of Scale

Enhancing the Role of the Financial Education The farm size of dedicated food production areas will be expanded for
Network economies of scale to ensure better adoption of modern technologies and
optimise operational costs. A comprehensive mechanism in financing and
The role of FEN to improve financial education initiatives will be enhanced managing the food production areas will be formulated through collaboration
by enlarging strategic partnerships, improving awareness through digital between the Federal and state governments. In addition, utilisation of
platforms and establishing a research ecosystem. In addition, the FEN fragmented land belonging to smallholders will be managed through
Programmatic Roadmap will be further pursued to elevate the financial collaboration between farmers with farmers associations and cooperatives.
capability of consumers, aligned with the National Strategy for Financial Meanwhile, implementation of Program Inisiatif Usahawan Tani (INTAN)
Literacy 2019-2023. These initiatives are crucial to empower and protect under Inisiatif Pendapatan Rakyat (IPR) will be expanded and agro-based
consumers. industry will be diversified as two initiatives under the agriculture Big Bold.
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3-34 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Focus Area E: to scale up firms, including for smart ventures among the industries
as one of the initiatives under the Big Bold Empowering MSMEs and
Breaking the Barriers for MSMEs to Social Enterprises. The scaling up of MSMEs will accelerate productivity

Scale Up
to achieve inclusive growth and enable businesses to evolve and
grow.

Focus will be given in ensuring MSMEs stay competitive and resilient

by breaking the barriers to grow and scale up. Several areas will be
Transforming Cooperatives, Agriculture-based
strengthened to achieve the set targets, particularly in increasing Associations and Social Enterprises as Catalysts
productivity and exports. Therefore, efforts in unleashing the potential of for Socioeconomic Growth
MSMEs including cooperatives, agriculture-based associations and social
enterprises, integrating MSMEs into domestic and global supply chain, Continuous efforts will be undertaken to strengthen and advance cooperatives
improving accessibility to financing and capacity development programmes, and agriculture-based associations as well as informal sector. These efforts
and accelerating productivity growth among MSMEs will be undertaken. include creating a more inclusive ecosystem and comprehensive value
These measures will ensure MSMEs regain the growth momentum, and chain as well as enhancing the capacity of these entities to grow and
stay vibrant and progressive. increase competitiveness. Measures will also be undertaken to enhance
the social enterprise landscape to move it from its current nascent stage
to the entrepreneurial mainstream. Therefore, strategic programmes will
Unleashing the Potential of MSMEs, be conducted to promote innovation in social entrepreneurship projects
Strategy E1 Cooperatives, Agriculture-based Associations through collaboration between the academia and industry, as another
and Social Enterprises initiative under the MSMEs Big Bold. In addition, impact measurement
tools will be introduced to ensure a sustainable social enterprise business
model. These will enrich cooperatives and agriculture-based associations
Integrating MSMEs into Domestic and Global
Strategy E2 as well as mainstream social enterprises and informal sector to become
Supply Chain
catalyst for socioeconomic growth.

Improving Accessibility of Financing and Strategy E2:

Strategy E3 Capacity Development Programmes
Integrating MSMEs into Domestic and

Global Supply Chain
Accelerating Productivity Growth among MSMEs
Strategy E4
Accelerating Integration of MSMEs into the
Supply Chain
Strategy E1: The integration of MSMEs into domestic and global supply chain through
business linkages, supply chain financing and use of trading houses will
Unleashing the Potential of MSMEs, be further promoted, as one of the initiatives under the MSMEs Big
Cooperatives, Agriculture-based Bold. In this regard, market expansion of highly competitive MSMEs
into the ASEAN and global markets will be facilitated through export
Associations and Social Enterprises assistance and trade advisory services such as on quality accreditation,
certification requirements and procedural guidance. Meanwhile,
Adopting a Targeted Approach in Scaling Up MSMEs participation of MSMEs in the Government procurement and domestic
supply chain of large enterprises as well as multinational companies
Policies will be targeted to ease access to financing, skills and technology will be intensified through the creation of demand driven products
in scaling up MSMEs. These policies will increase efficiency of the and services. These measures will ensure effective participation in the
enterprises and industries that have the potential to grow. Efforts will be supply chain in accordance with the changing global trends, as shown in
undertaken to strengthen and consolidate growth-facilitating assistances Box 3-2.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-35

Box 3-2
Strengthening Msmes Position in the Global Supply Chain
MSMEs must participate effectively in the global supply chain, which compared to imports. Building a healthy and robust supply chain ecosystem
links firms across countries for greater market access, new technology will increase the resilience of the domestic economy. Measures proposed
adoption, lower cost of production and an efficient business operation to to increase MSMEs participation in global supply chain include:
increase their growth productivity and competitiveness. Role of MSMEs
is critical in building a strong base of suppliers to support the growth of • Provision of targeted assistance for MSMEs to increase exports through
targeted industries in the country. Availability of a strong local supply market intelligence, capacity building as well as enhancement of supply
base will make anchor companies less susceptible to move elsewhere chain financing and guarantee schemes;
in search of lower costs. Meanwhile, dynamic local suppliers among
• Implementation of supplier development programmes including specific
MSMEs help the buyers become more innovative and move up their value
accreditation and certification assessment to build the capacity of the
chain. MSMEs;

However, participation of MSMEs in the global supply chain is minimal • Creation of proactive measures through broadcasting requirements on
due to the poor production linkages with larger firms. Findings of local sourcing by foreign investors prior to realisation of investments;
MSME Survey 2023 by SME Corporation Malaysia indicates that these and
linkages were weakest in the production and supply of output, where • Development of a structured and holistic ESG ecosystem for MSMEs
only 20.8% of MSMEs supply products and services to large firms to increase their value proposition in the domestic as well as global
in Malaysia. This finding suggests that large firms are likely inclined supply chain.
towards importing inputs while maintaining a poor backward linkage with
MSMEs. Strong participation of MSMEs in the supply chain will transform firms into
high-growth entities, characterised by higher concentration of knowledge
Poor participation of MSMEs in the supply chain is attributed to various and technology. Simultaneously, resources will be reprioritised for better
deficiencies that affect their competitiveness such as not offering the distribution of funding assistance. Increasing the number of these entities
product and services required by buyers, unable to meet specific request of will result in high value-added to the economy as well as high-paying jobs
customers, low quality products and services and low cost competitiveness in the future.
 Mid-Term Review of the Twelfth Malaysia Plan
3-36 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Facilitating Compliance to ESG Requirements be implemented to educate MSMEs on the alternative financing processes,
associated benefits, risks and typical deal structure. These efforts will
A comprehensive framework comprising guidelines, standards, incentives enable MSMEs to obtain suitable and necessary capacity development
and financial assistance will be developed to accelerate the adoption of programmes and timely assistance in scaling up operations.
ESG. MSMEs will be equipped with the knowledge and understanding on
ESG through capacity development programmes and information sharing Strategy E4:
platforms. ESG compliance will accelerate participation of MSMEs in
domestic and global green supply chains. Accelerating Productivity Growth
among MSMEs
Strategy E3:
Capitalising on Technologies and Digitalisation
Improving Accessibility of Financing and
Capacity Development Programmes The MSMEs will be facilitated in capitalising on technologies and digitalising
business operations, as one of the initiatives under the MSMEs Big Bold,
Promoting Alternative Financing to improve productivity and become more competitive. A national business
digital adoption index will be established to measure the adoption rate
Market-based financing such as venture capital, equity crowdfunding and amongst the various sizes of businesses. In addition, efforts will be continued
peer-to-peer financing will be promoted as one of the initiatives under to facilitate greater involvement of HEIs, research institutes and industries
the MSMEs Big Bold. In addition, efforts will be undertaken to encourage to accelerate R&D and innovation activities.
institutional investors to invest in MSMEs through financial instruments,
such as mutual funds, hedge funds and pension plans. Continuous efforts Attaining Critical Talent in Supporting Business
will be undertaken to facilitate access to financing for MSMEs with limited
Growth
financing options. Among others, alternatives to traditional collateral-based
lending, namely collateral registries and intellectual property monetisation Efforts to increase skilled talent and upskill existing talent will be intensified
will be further promoted. through the development of a MSMEs talent management framework.
Measures will be undertaken to identify new needs of MSMEs as well as
Streamlining Information on Capacity encourage collaboration between MSMEs with HEIs and industry experts
Development Programmes in developing and harmonising training modules. These modules will focus
on strengthening human capital development within the MSME workforce.
In reducing fragmentation and duplication of MSME programmes, the SME Meanwhile, MSMEs will also be facilitated to conduct upskilling and reskilling
Integrated Plan of Action (SMEIPA) will be enhanced to ensure better training through AiI programme. These efforts will address critical talent
planning, tracking, monitoring and assessment. Specific programmes will gaps and skills mismatches to support business growth.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 3: Boosting Economic Resilience for a Sustainable Growth 3-37

Conclusion
During the review period of the Twelfth Plan, various measures have been implemented
in resetting the economy. These measures have recorded progressive growth in several
areas in restoring the growth momentum of economic sectors and propelling the growth
of strategic and high impact industries and MSMEs. Nonetheless, the economy has
not fully recovered from the impact of COVID-19 and still lagging behind in terms of
competitiveness due to lack of significant structural economic reforms. In the remaining
Plan period, the focus will continue on boosting economic resilience for a sustainable
growth. Strategic measures will be implemented in spearheading structural reforms by
strengthening sectoral and strategic industries resilience, driving competitiveness for
sustainable growth, boosting the efficacy of the financial support, strategising industrial
estates and food production areas and breaking the barriers for MSMEs to scale up.
These strategies will be the catalyst towards transforming Malaysia as a regional leader
in HGHV in achieving the aspiration of ‘Ekonomi MADANI: Memperkasa Rakyat’.
 Mid-Term Review of the Twelfth Malaysia Plan
3-38 Chapter 3: Boosting Economic Resilience for a Sustainable Growth

Chapter
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-1

Strengthening Key Enablers towards

High-Income Economy

Introduction 4-2

Progress, 2021-2022 4-3

Performance of Selected Targets 4-3
Achievement by Priority Area 4-7
Priority Area A : Realigning the Labour Market for Inclusive and Sustainable Growth 4-7
Priority Area B : Developing Future-Ready Talent 4-7
Priority Area C : Advancing Digital Economy 4-8
Priority Area D : Mainstreaming Digitalisation for Inclusive Development 4-9
Priority Area E : Accelerating Research, Development, Commercialisation and 4-9
Innovation
Priority Area F : Capitalising on Advanced Technology Potential 4-10
Priority Area G : Ensuring Integrated, Affordable, Reliable and Seamless People 4-11
Mobility
Priority Area H : Driving Transport and Logistics Industry to Enhance Competitiveness 4-11
Priority Area I : Strengthening Institutional and Regulatory Framework 4-12

Issues and Challenges 4-13

Inefficient Labour Market 4-13
Unconducive Education Ecosystem 4-13
Unfavourable Digital Economy Ecosystem 4-13
Challenges in Accelerating R&D&C&I and Advancing Technology 4-13
Gaps in Supporting the Growth of Transport Subsector and Logistics Industry 4-13

Way Forward, 2023-2025 4-14

Selected Targets, 2021-2025 4-15
Focus Area A : Reforming Labour Market 4-19
Focus Area B : Reshaping Talents for Future of Work 4-20
Focus Area C : Strengthening the Digital Economy Ecosystem 4-21
Focus Area D : Optimising the Potential of R&D&C&I and Escalating the Advancement 4-24
of Technology
Focus Area E : Building Resilient Transport and Logistics Infrastructure 4-27

Conclusion 4-29
 Mid-Term Review of the Twelfth Malaysia Plan
4-2 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Introduction
During the review period of the Twelfth Malaysia Plan, 2021-2025 (Twelfth Plan) focus was
given on developing future talent, boosting digitalisation and advanced technology as well
as enhancing efficiency of transport and logistics infrastructure in supporting economic
growth. The strategies and initiatives for talent development contributed towards realigning
the labour market and developing future-ready talent. Meanwhile, various initiatives were
undertaken in advancing the digital economy, mainstreaming digitalisation for inclusive
development, accelerating research, development, commercialisation and innovation
(R&D&C&I) as well as capitalising advanced technology potential to improve national
competitiveness and resilience. In enhancing efficiency of the transport and logistics
services, measures were introduced to improve people mobility, industry competitiveness,
and institutional and regulatory framework. However, challenges remained and hampered
the realisation of national targets and commitment to achieve sustainable economic growth.

In the remaining Twelfth Plan period, emphasis will be given to reform labour market,
reshape talents for future of work, strengthen the digital economy ecosystem, and
optimise the potential of R&D&C&I and escalate the advancement of technology.
Meanwhile, efforts will be intensified to build resilient transport and logistics
infrastructure. These efforts will further strengthen the key enablers in achieving a
high-income nation, building upon the aspirations of ‘Ekonomi MADANI: Memperkasa Rakyat’
and the 2030 Agenda for Sustainable Development (2030 Agenda).
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-3

Progress, 2021-2022
In the Twelfth Plan, a total of 36 selected targets were identified in developing future talent, boosting digitalisation, and advanced technology as well as
enhancing efficiency of transport and logistics infrastructure. During the review period, nine targets were achieved, 22 are on track, while five are still
lagging. The performance of these targets is as shown in Exhibit 4-1.

Exhibit 4-1
Performance of Selected Targets

Developing Future Talent

40% 32.4% RM2,900 RM2,250 3.6% 3.7%

2025 2021 2025 2021 2021-2025 2021-2022

Share of Compensation of Monthly Median Salaries and Wages Average Growth of

Employees to GDP Labour Productivity

At par with Below Universal Universal

International
Average
International
Average
Enrolment 87% Enrolment 93.5%
(>95%) (>95%)

2025 2022 2025 2022 2025 2022

PISA and TIMSS Score Enrolment of Preschool Students Enrolment of Secondary

School Students

2 in Top
55% 40.9% 86.7% 90.2% 100 1

2025 2022 2025 2022 2025 2022

Intake of SPM Leavers Graduate Employability Public Universities in

or Equivalent into TVET from HEIs and Public TVET Top 100 of the QSWUR
Programmes Institutions
 Mid-Term Review of the Twelfth Malaysia Plan
4-4 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Boosting Digitalisation and Advanced Technology

25.5% 23.2% 10.5% 13% 8% 3% 200 125

2025 2021 2025 2021 2021-2025 2021-2022 2021-2025 2021-2022

Contribution of Digital Contribution of eCommerce Average Growth of Digital IP Creation in Digital

Economy to GDP to GDP Content Exports Content

9 7.7
>100 116
100 %
96.9 %
Mbps Mbps
million million 90% 97.4%
Premises Premises

2025 2022 2025 2022 2025 2022 2025 2022

4G Coverage in Populated Speed of Mobile Broadband Access to Fixed Broadband Percentage of Internet Users
Areas Services

4,323 297 50 10 100% 96.9% 100% 89.2%

2025 2022 2021-2025 2021-2022 2025 2022 2025 2021

Number of Points of Number of Local Sharing Percentage of Urban Percentage of Rural

Presence for Broadband Economy Platforms Households Subscribing to Households Subscribing to
Connectivity in Rural Areas Accredited Internet Internet
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-5

2.5% 0.95% 70% 34.21% 130 33 50% 45.5%

2025 2020a 2025 2020a 2025 2020a 2025 2020a

Gross Expenditure on R&D Business Expenditure on Number of Researchers Experimental Development

(GERD) to GDP R&D (BERD) to GERD per 10,000 Labour Force Research Expenditure
to GERD

Top
2,000 936 40.4% 36.9% 20 36 500 112

2025 2022 2021-2025 2021-2022 2025 2022 2021-2025 2021-2022

Number of Patent Average Multifactor Ranking in the Global Number of Products/Solutions

Applications by Malaysians Productivity Contribution Innovation Index Commercialised through
to GDP the National Technology &
Innovation Sandbox (NTIS) and
Malaysia Commercialisation
Year (MCY)

Note: a According to the latest data obtained from National Survey of Research and Development (R&D) in Malaysia 2021.
 Mid-Term Review of the Twelfth Malaysia Plan
4-6 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Enhancing Efficiency of Transport and Logistics Infrastructure

1 1 at
5% 6.9% 20% 104.3% within 12th
Top 10 Rank

2021-2025 2021-2022 2025 2022 2025 2022

Average Growth of Increase in Air Transport Ranking in the World

Public Transport Ridership in Passengers Container Port’s Report
GKL/KV

Top
30 26 10% 32.1%

2025 2022b 2025 2022

Ranking in the World Bank Increase in Cargo Volume via

Logistics Performance Index Rail in Northern, Central and
Southern Regions

National Green
In
Warehouse
progressc
Transport 20%
Regulation Index

2025 2022 2025 2022

Standardisation of Formulation of Green

Warehouse Regulation Transport Index

Notes: b Based on the ranking reported in the World Bank Logistics Performance Index 2023.
c
Discussion on standardisation of warehouse regulation among industries and agencies is still ongoing.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-7

Achievement by Priority Area

Priority Area A: Realigning the Labour Market for Inclusive and Sustainable Growth

Strategy A1: Promoting Equitable Compensation of Employees and Labour Participation

Strengthening Labour Market ● Amendments to the Employment Act 1955 [ Act 265 ] completed in 2022
● The Industrial Harmony Index increased to 78.9% in 2022

Facilitating Labour Force Participation ● Composition of skilled workers increased to 29.6% in 2022
● The Housewives’ Social Security Scheme implemented in 2022

Strategy A2: Strengthening the Labour Market Support System

Promoting Responsive Workforce ● 2,085,950 workers trained in the Human Resource Development Corporation upskilling and
Training reskilling programmes

Addressing Labour Displacement due to ● 282,326 new jobs created and 1,021,667 individuals assisted in jobs placements under the
COVID-19 Pandemic Retention and Generation of Jobs programmes

Priority Area B: Developing Future-Ready Talent

Strategy B1: Raising the Quality of Education

Improving Learning Outcomes ● 88 projects to reconstruct dilapidated school buildings completed

● 18 new schools built

Promoting a Flexible Higher Education ● The Guide to Entrepreneurship Integrated Education introduced in 2022
System

Strengthening Assessment Approach ● Alternative Assessment in Higher Education: A Practical Guide to Assessing Learning published
in 2022
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Strategy B2: Enhancing TVET Programmes and Governance

Strengthening Technical and Vocational ● 20,190 trainees benefitted from the National Dual Training System, a collaboration between
Education and Training (TVET) TVET institutions and industries
Programmes ● The Centre for Instructor and Advanced Skill Training recognised as a Centre of Excellence for
TVET Instructors in 2021
● 37 TVET institutions adopted the Teaching Factory model

Improving TVET Governance ● The establishment of TVET Collaboration Hub and the Government-Industry TVET
Coordination Body approved in 2022

Priority Area C: Advancing Digital Economy

Strategy C1: Providing an Enabling Environment for the Growth of the Digital Economy

Streamlining Digital Governance ● MyDIGITAL Corporation established in 2021

● The Sharing Economy Committee established in 2022

Boosting Trade through eCommerce ● 1,126,047 micro, small and medium enterprises (MSMEs) onboarded eCommerce as at 2022

Expanding the Sharing Economy ● 13,398 digital freelance and gig workers trained in 2022

Strengthening Cyber Security ● 80 MSMEs undergone cyber security assessment under Program Galakan Pemerkasaan
Keselamatan Siber Malaysia

Strategy C2: Strengthening Provision of Digital Infrastructure and Services

Ensuring Equitable Access ● Communication services gazetted as a public utility in 2021

● 5G network technology launched in 2021
● 5G coverage in populated areas reached 47.1% as at end 2022

Strategy C3: Developing Future-Ready Digital Talent

Nurturing Future-Ready Digital Talent ● 64,694 students participated in the digital making activities in 2022

Strategy C4: Positioning Malaysia as the ASEAN Digital Centre

Digitalising Micro, Small and Medium ● 90 new start-ups based in Malaysia Digital Hub in 2022
Enterprises (MSMEs) to Broaden Market ● 200 local MSMEs exported digital solutions in 2022
Access o 24 with export revenue above RM20 million
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Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-9

Priority Area D: Mainstreaming Digitalisation for Inclusive Development

Strategy D1: Expanding Digitalisation

Facilitating Digital Opportunities ● 911 Pusat Ekonomi Digital (PEDi) includes

o 874 rebranded from Pusat Internet Komuniti
o 37 newly established

Creating More Online Business Ventures ● 21 active local sharing economy platforms validated in 2022

Priority Area E: Accelerating Research, Development, Commercialisation and Innovation

Strategy E1: Strengthening Capacity and Capability in Research, Development, Commercialisation and Innovation

Streamlining National Science, Technology ● 37% of the initiatives under the National Science, Technology and Innovation Policy Action
and Innovation Priority Areas Plan implemented
● The National Nanotechnology Policy and Strategy 2021-2030 developed in 2021
● The National Biotechnology Policy 2.0 and National Nuclear Technology Policy 2021-2030
developed in 2022
● The National Vaccine Development Roadmap developed in 2021

Strengthening Funding for Research, ● The inaugural Malaysia Innovates Summit, involving seven ministries organised in 2022
Development, Commercialisation and ● The R&D&C&I category in MyProjek system introduced in 2022
Innovation (R&D&C&I) ● The MyR&D portal, a one-stop platform for R&D&C&I funding developed in 2022

Translating Research and Development as ● Malaysian Research Accelerator for Technology and Innovation (MRANTI) established in 2021
well as Intellectual Property into High ● Dasar Pengkomersialan Harta Intelek dan Reka Cipta Dibiayai Kerajaan 2021-2025 introduced in
Value-Added Products 2021
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Strategy E2: Nurturing Quality Talent in Science, Technology and Innovation

Increasing Supply of Quality Talent in ● 294 science, technology and innovation (STI) experts participated in the Researcher-Industry
Science, Technology and Innovation Scientific Exchange (RISE) programme
● 93% of 5,000 job seekers employed by the participating companies under the Upskilling for
Deeptech & Futureskills programme in 2022

Championing Effective and Fun Non-Formal ● 2.5 million participants benefitted from the implementation of STI enculturation programmes
Science, Technology, Engineering and ● 15 edutainment activities, supported by 21 strategic partners and 21 professional astronomers
Mathematics Learning implemented under the Big Bang Astronomy programme in 2021

Increasing Effectiveness of Communication ● e-estidotmy, a virtual platform in creating innovative and inquisitive minds on science,
and Awareness Programmes technology, engineering and mathematics (STEM) among students introduced in 2021

Priority Area F: Capitalising on Advanced Technology Potential

Strategy F1: Gearing up for the Fourth Industrial Revolution

Seizing Economic Growth Opportunities ● 25 initiatives under Phase 1 of the National Fourth Industrial Revolution (4IR) Policy
Arising from the 4IR implemented
● Technology roadmaps developed in 2022
o The National Advanced Material Technology Roadmap 2021-2030
o The National Blockchain Roadmap 2021-2025
o The Artificial Intelligence Roadmap 2021-2025
o The National Robotics Roadmap 2021-2030
o The Electrical and Electronics (E&E) Roadmap: Technology Development 2021-2030

Creating a Conducive Ecosystem to ● Existing sandbox ecosystem expanded to include digital internet of things (IoT), smart cities
Harness the Potential of the 4IR and healthtech in 2022
● One unicorn company created, while six soonicorn companies identified as at end 2022
● The Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030 launched in 2021
● 4,136 users and 2,717 start-up companies registered in the MYStartup portal
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Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-11

Priority Area G: Ensuring Integrated, Affordable, Reliable and Seamless People Mobility

Strategy G1: Improving Overall Accessibility of Public Transport

Integrating Transport Modes ● PULSE application, an integrated journey planner, upgraded in 2022
o 290,020 downloads
o 78,047 active users

Enhancing First- and Last-Mile Connectivity ● RAPID Mobility, an alternative community based public transportation, introduced in 2022

Encouraging Transit Oriented Development ● Kajang 2 Station complemented with mixed development completed in 2022

Strategy G2: Encouraging Behavioural Shift from Private to Public Transport

Propelling Public Transport as the First ● 1.4 million unlimited MY50 monthly travel passes sold in 2022
Choice of Travel ● Passengers of Electric Train Service (ETS) increased to 3.3 million in 2022

Priority Area H: Driving Transport and Logistics Industry to Enhance Competitiveness

Strategy H1: Enhancing Efficiency of Services

Upgrading Aviation Systems and ● The Kuala Lumpur Air Traffic Control Centre and Kota Kinabalu Flight Information Region
Equipment completed in 2022

Implementing Preventive Maintenance ● Six pilot projects using advanced materials and innovative technology completed in 2022

Strategy H2: Leveraging Digitalisation in Services

Developing a Centralised Database ● Peta Geospatial Fasiliti Logistik dan Jaringan Pengangkutan (MyLogistik) application launched in
2021
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Priority Area I: Strengthening Institutional and Regulatory Framework

Strategy I1: Improving Governance

Strengthening Coordination among ● Jawatankuasa Penilai Projek Logistik established in 2022

Stakeholders ● A Single Border Agency Nucleus Team established in 2021
● Sharing of prime movers and semi-trailers within a group of companies is allowed since 2021

Developing National Warehousing ● Guidebook on Starting Warehousing Business in Malaysia launched in 2021
Regulation

Restructuring the Model for Highway ● 19 highway concession agreements reviewed

Development

Strategy I2: Promoting Green Initiatives

Implementing the Low Carbon Mobility ● Exemption on motor vehicle licence fee for full electric vehicles from 2022 to 2025
Blueprint
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-13

Issues and Challenges

During the review period, various measures were undertaken to strengthen talent development, digitalisation and advanced technology growth, transport
and logistics infrastructure. However, issues and challenges still persist and need to be addressed. These include inefficient labour market, unconducive
education ecosystem, unfavourable digital economy ecosystem, challenges in accelerating R&D&C&I and advancing technology as well as gaps in supporting
the growth of transport subsector and logistics industry.

Inefficient Labour Market

● Shortage of workers I Unconducive Education Ecosystem
● Low wages
II ● Insufficient technical and soft skills elements in STEM
● Increasing skills-related underemployment curriculum
● High dependency on foreign workers ● Lack of critical thinking, creative learning, and problem-
● Lack of social protection for workers solving skills aspects in the training and teaching
methods at school

● Fragmented higher education institutions (HEIs)

Unfavourable Digital Economy ecosystem in term of synergy between public and
private HEIs, digitalisation plans, new programmes
Ecosystem offerings and research focuses
III
● Ineffective governance and coordination ● Duplication of TVET programmes and fragmented data

● Uneven progress in digital infrastructure ● Lack of industry participation

● Lack of digital talent development

● Extended digital exclusion has widened inequality

Challenges in Accelerating
IV
R&D&C&I and Advancing
Gaps in Supporting the Growth of Technology
Transport Subsector and Logistics
V ● Ineffective R&D&C&I resource utilisation
Industry
● Decreasing private investment in R&D&C&I activities
● Inadequate current and real-time passenger mobility data for ● Overlapping and conflicting priorities among
public transportation Government Research Institutes (GRIs) and HEIs
● Ineffective transport governance ● Low commercialisation of intellectual property (IP)
● Inadequate connectivity and transport infrastructure ● Insufficient technology creators and developers
● Insufficient maintenance of transport infrastructure ● Unpreparedness of industry to adopt new technology
● Absence of synchronisation and standardisation among the ● High costs for development and adoption of technology
port community systems

● Lack of awareness and understanding on sustainable logistics

 Mid-Term Review of the Twelfth Malaysia Plan
4-14 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Way Forward, 2023-2025

In the remaining Twelfth Plan period, focus will be given on strengthening key enablers in accelerating the momentum of economic growth. Measures will
be undertaken to reform labour market, reshape talents for future of work, strengthen the digital economy ecosystem, optimise the potential of R&D&C&I
and escalate the advancement of technology, as well as build resilient transport and logistics infrastructure. The implementation of these measures will
boost the economy in achieving a high-income nation.

Focus Area A: Focus Area B:

Reforming Labour Market Reshaping Talents for Future of Work

Strategy A1: Strategy B1:

Improving Labour Market Strengthening Education Initiatives and Character Building
Strategy B2:
Boosting Higher Education Excellence
Strategy B3:
Focus Area C: Enhancing TVET Ecosystem

Strengthening the Digital Economy

Ecosystem
Strategy C1:
Focus Area D:
Enhancing Digital Governance Optimising the Potential of R&D&C&I
Strategy C2:
and Escalating the Advancement of
Building a Conducive Digital Infrastructure Technology
Strategy C3: Strategy D1:
Boosting the Growth of Digital Industries Scaling Up R&D&C&I Activities
Strategy C4: Strategy D2:
Enhancing Future-Ready Digital Talent Elevating Adoption of Advanced Technologies
Strategy C5:
Expanding Digital Inclusivity

Focus Area E:
Building Resilient Transport and Logistics
Infrastructure
Strategy E1:
Improving Passenger Mobility Data
Strategy E2:
Strengthening Transport Governance
Strategy E3:
Enhancing Connectivity and Transport Infrastructure
Strategy E4:
Improving Infrastructure Maintenance
Strategy E5:
Increasing Competitiveness of Logistics and Trade Facilitation
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-15

Selected Targets, 2021-2025

Reforming Labour Market

Share of Compensation Average Growth of Monthly Median Salaries

40% of Employees to GDP 3.7% Labour Productivity
RM2,700
and Wages

2025 2021-2025 2025

Reshaping Talents for Future of Work

At par with Universal Universal

Enrolment of Preschool Enrolment of Secondary
International PISA and TIMSS Score Enrolment Enrolment
Students Students
Average (≥95%) (≥95%)

2025 2025 2025

Intake of SPM Leavers Graduate Employability

Public Universities in
55 % or Equivalent into TVET 86.7 % from HEIs and Public 2 Top 100 of the QSWUR
Programmes TVET Institutions

2025 2025 2025

 Mid-Term Review of the Twelfth Malaysia Plan
4-16 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Strengthening the Digital Economy Ecosystem

Interneta Coverage in
100% Populated Areas
Number of Points
Contribution of Digital of Presence for
25.5% Economy to GDP
2025 4,323 Broadband Connectivity
in Rural Areas

2025 9 2025
Access to Fixed
million
Broadband Services
Premises
Number of Local Sharing
Contribution of
15.7 %
eCommerce to GDP
2025 50 Economy Platforms
Accredited

2025 Percentage of Rural 2021-2025

100% Households Subscribing
to Internet

Average Growth of IP Creation in

8% Digital Content Exports
2025 200 Digital Content

2021-2025 Percentage of Urban 2021-2025

100 % Households Subscribing
to Internet

2025

Note: a Internet includes WiFi and 4G.

 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-17

Optimising the Potential of R&D&C&I and Escalating the Advancement of Technology

Gross Expenditure on Top Ranking in the Global

2.5% R&D (GERD) to GDP 30 Innovation Index

2025 Number of Researchers 2025

130 per 10,000 Labour Force

Business Expenditure on Multifactor Productivity

70% R&D (BERD) to GERD
2025
40.4% Contribution to GDP

Number of Patent
2025
2,000 Applications by 2025
Malaysians

Number of Products/
Experimental 2025 Solutions Commercialised
50% Development Research 500 through the NTIS
Expenditure to GERD
and MCY

2025 2021-2025
 Mid-Term Review of the Twelfth Malaysia Plan
4-18 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Building Resilient Transport and Logistics Infrastructure

Increase in Air Transport

20% Passengers

Average Growth of Public Average Growth of

5 % Transport Ridership in 2025
9.1 % Transportation and
GKL/KV Storage Subsector

Ranking in the
2021-2025 Top 2021-2025
World Bank Logistics
20 Performance Index

1
Ranking in the World 2025
within
Container Port’s Report
Top 10

2025 National Standardisation of

Warehouse
Regulation Warehouse Regulation

Increase in Cargo Volume

via Rail in Northern, 2025
10% Central and Southern
Regions
Green Formulation of Green
2025 Transport
Index Transport Index

2025

New Target
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-19

Focus Area A: Addressing Labour Shortages

Reforming Labour Market An initiative will be introduced to encourage employers to hire those
aged 60 years and over. This will help to tackle the labour shortage and
In the remaining Twelfth Plan period, focus will continue to be given in at the same time, prepare the country as an aged nation. Efforts will
reforming the labour market. Thus, emphasis will be given in improving be undertaken to increase the female labour force participation rate
the labour market by raising wages, tackling skills mismatch, addressing by facilitating the setting up of childcare centres by employers. In this
labour shortages, implementing multi-tier levy and improving the welfare of regard, existing tax incentives and guidelines on childcare centres will be
workers. The implementation of all these initiatives will lead to a stronger streamlined.
labour market as well as competent and skilled workforce in meeting industry
demand and improving the wellbeing of the workers. Efforts will be undertaken to encourage employers to hire former inmates
and paroled prisoners, including to participate in the Academy in Industry
(AiI) programme. In addition, refugees in the country will be allowed to
work in certain sectors, while waiting for relocation to third countries.
Strategy A1 Improving Labour Market Data on refugees will be consolidated to ensure smooth implementation
in hiring refugees.

Implementing Multi-Tier Levy

Strategy A1:
Improving Labour Market An action plan, which includes implementing multi-tier levy mechanism and
promoting automation and mechanisation will be developed to ensure the

Raising Wages number of foreign workers does not exceed 15% of the total workforce.
The implementation of the action plan will increase upskilling and reskilling
A progressive wage model will be introduced as part of the Big Bold Future opportunities for local workers and reduce the dependency on foreign
Ready Talent as a complement the minimum wage policy. Engagements with workers. Meanwhile, continuous review of sectors permitted to hire foreign
stakeholders will be carried out in formulating a suitable mechanism to workers will be undertaken as a complement to the implementation of
implement the progressive wage model. The National Employment Returns multi-tier levy mechanism. This measure is another initiative under the
(NER) survey will also be revived to identify trends in wages, employment future talent Big Bold.
and skills including on gig workers. A better wage system will contribute
towards achieving a decent living standard and reducing brain drain in the Improving the Welfare of Workers
long run.
A social protection scheme that covers injuries of employees outside working

Tackling Skills Mismatch hours and not related to employment will be introduced to improve the
welfare of the workers. The scheme aims to narrow the gap in providing
A dynamic national skills framework will be developed to tackle skills social coverage for workers. In response to increased opportunities in the
mismatch and complement the Critical Occupations List (COL). This gig economy which transformed the employment landscape, guidelines of
framework will provide comprehensive and current information on skills informal workers will be developed, and subsequently enable classification
required by industries. The first phase is expected to be completed in of gig workers as employees. This is one of the initiatives under the Big Bold
2023. The COL will also be enhanced to identify critical occupations at the Social Protection Reform. In addition, efforts in introducing a mandatory
regional and state levels. These measures will help to improve continuous contribution for retirement savings for informal worker will be explored.
upskilling and reskilling programmes, as part of the future talent Big Bold These measures will enable workers to benefit from more comprehensive
in meeting the requirements of the industries, which are crucial in reducing social protection.
underemployment.
 Mid-Term Review of the Twelfth Malaysia Plan
4-20 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Focus Area B: Strategy B1:

Reshaping Talents for Future of Work Strengthening Education Initiatives and
Quality education is crucial in ensuring that talent produced meets future
Character Building
of work and is versatile in adapting to changes. In the remaining Twelfth
Plan period, emphasis will be given in reforming the education system to
Improving STEM Curriculum and Teachers
elevate the quality of education and leverage emerging technologies. Among Capability
the measures to be undertaken include strengthening education initiatives
Efforts will be undertaken to increase the enrolment of students in STEM. In
and character building, boosting higher education excellence and enhancing
this regard, new STEM curriculum embedded with digital technologies will
TVET ecosystem. These measures will improve access as well as enhance
be introduced to prepare students in embracing 4IR. Meanwhile, training
the delivery of education and training, in line with the 2030 Agenda.
and teaching methods for teachers in critical thinking, creative learning,
and problem-solving will be further enhanced to develop skills of students
for the future.
Strengthening Education Initiatives and
Strategy B1
Character Building Enhancing Inculcation of Karamah Insaniah among
Students
Strategy B2 Boosting Higher Education Excellence Efforts to enhance the development of human capital MADANI through the
inculcation of Karamah Insaniah among students will be expanded. This will
emphasise on the aspects of behavioural and self-development in building
character among students to produce a generation that manifests resilience
Strategy B3 Enhancing TVET Ecosystem and competitiveness. The inculcation of Karamah Insaniah among students
will be implemented through the teaching and learning methods (PdP) in
and outside the classroom.

Strategy B2:
Boosting Higher Education Excellence
Creating a Synergy among HEIs
A framework will be created to harmonise the ecosystem of higher
education, by aligning programmes offered by all HEIs with national
aspirations. Towards this purpose, an extensive stock taking of programmes
offered will be undertaken and this information will be clustered based
on national aspirations and niche areas. Under this framework, public
HEIs will be anchoring at least one national priority and complemented
by programmes offered in private HEIs. The framework will also
outline a more robust mechanism in assessing programmes offered by
private HEIs.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-21

Digitalising Vetting Process of New Programmes multiculturalism, religious traditions as well as history of the nation to
foster care and compassion, in line with Malaysia MADANI aspiration. These
A digitalised system will be developed to enhance the effectiveness of the initiatives will enable HEIs to assume a more active role in empowering
vetting process for new programmes offered by public universities. The community and building a just society.
system will be integrated with related databases, which include job forecasts,
international programme offerings and accredited programmes. This effort Strategy B3:
is expected to address skill mismatch at the source, thus minimising the
number of bridging courses. Enhancing TVET Ecosystem
Strengthening TVET Governance
Introducing a Comprehensive Digitalisation Plan
A single rating system for TVET programme will be established to ensure a
A comprehensive digitalisation plan for public HEIs will be developed. The
standard evaluation across all TVET providers. In addition, Sistem Pengurusan
plan will comprise six focus areas, namely governance, academic excellence,
Integrasi Kemahiran Malaysia (MySPIKE) will be expanded to integrate
digital competency, digital infrastructure and infostructure, research and
TVET data across ministries for better and accurate projection of TVET
innovation as well as digital acculturalisation. Among the salient features of
graduates. As a result, these measures will improve the quality of the TVET
this plan is the definition of a smart campus with milestones for digitalising
programmes and graduates.
teaching and learning, security, transportation, accommodation and other
related components.
Expanding Strategic Collaboration
Encouraging Social Innovation and Research on The Industry Lead Body (ILB) will be empowered to expand industry driven
Building Just Society training, which will increase recognition of TVET graduates for job placement.
ILB will also drive the development of a skilled workforce in accordance with
The involvement of HEIs in projects that provide innovative solutions the National Occupational Skills Standards. Strategic collaborations between
for community related problems will be promoted. In addition, HEIs will public TVET institutions and industries will continue to be pursued through
be encouraged to expand social research pertaining to respect, equality, industry placement in aligning skills to meet industry needs. Additionally,
upskilling and reskilling programmes will be expanded to equip TVET
instructors with skills that are in line with emerging technology as well as
improve social and cross-disciplinary skills.

Focus Area C:
Strengthening the Digital Economy
Ecosystem
In the remaining Twelfth Plan period, efforts will be intensified to strengthen
the ecosystem for the development of digital economy. The strategies include
enhancing digital governance, building a conducive digital infrastructure,
boosting the growth of digital industries, enhancing future-ready digital
talent and expanding digital inclusivity. These measures will foster innovation
and contribute to socioeconomic development towards building a digitally-
inclusive nation.
 Mid-Term Review of the Twelfth Malaysia Plan
4-22 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Strategy C2:
Strategy C1 Enhancing Digital Governance Building a Conducive Digital Infrastructure
Enhancing Digital Infrastructure and Connectivity
Strategy C2 Building a Conducive Digital Infrastructure
Government-owned lands and buildings will be prioritised to accelerate
the development of telecommunication infrastructure. Additionally, the
gazettement of the Uniform Building By-Laws (UBBL) Amendment 1984
Strategy C3 Boosting the Growth of Digital Industries by state governments to support the policy of communication services as a
public utility will be expedited. Establishment of Jawatankuasa Penyeragaman
Kos Caj dan Fi Pembangunan Infrastruktur Komunikasi to standardise charges
and fees nationwide will encourage more people to leverage internet access
Strategy C4 Enhancing Future-Ready Digital Talent and reap the benefits of digital economy. Meanwhile, steps will be taken to
increase Wi-Fi hotspots and access points in public areas for better internet
connectivity and mobility. Audit and enforcement activities based on the
Mandatory Standards for Quality of Service will be increased to improve
Strategy C5 Expanding Digital Inclusivity the quality of access to wireless broadband services.

Strategy C3:
Strategy C1: Boosting the Growth of Digital Industries
Enhancing Digital Governance
Offering Better Opportunities in the Digital
Streamlining Roles and Functions of Ministries and Economy
Agencies Priority will be given in providing incentives for existing validated platforms to
attract more sharing economy businesses to apply for validation. Concomitant
Efforts will be undertaken to strengthen initiatives and improve monitoring
with the need for sustainable development, digital technology companies
mechanisms in aligning the roles and functions of ministries and agencies. In
will be supported to develop and deploy digital solutions, which addresses
this regard, integration of data on programmes related to the digital economy
environmental, social and governance (ESG) challenges. Meanwhile, the
from multiple ministries and agencies will be implemented. Measures will
rapid development of metaverse will be incorporated into the current
be undertaken to align digital economy programmes offered by the Federal
digital content ecosystem.
and state governments in optimising resources.

Bolstering Regulations and Guidelines Strategy C4:

Enhancing Future-ready Digital Talent
Existing regulations and guidelines will be reviewed to meet the current
global trends and to enhance the resilience of digital economy. For this
Fostering Digital Leadership
purpose, a bill will be tabled in order to address cyber security issues
and management. A regulatory framework for sharing economy will also Efforts will be undertaken to enhance awareness on the importance and
be established to effectively support the evolving industry. In addition, a advancement of digital technology among top managers and leaders. In
standard on eCommerce will be introduced to build trust and credibility accelerating digital adoption, leadership programmes will be introduced to
of the platforms.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-23

mould more digital savvy leaders from industries as one of the initiatives guideline for digital technology internship placement in the industry will
under the Big Bold Digital- and Technology-Based Industry. Meanwhile, be established. Digital training and assessments for educators will also be
leaders within education system will be further exposed to the latest digital conducted regularly to ensure quality and competency in teaching digital
trends and talent requirements. and technology related subjects. Awareness programmes on the digital
and emerging technology for counsellors in the education system will be
Enhancing Digital Infrastructure provided to enable counsellors to advise and encourage students to pursue
digital or technology-based careers.
Laboratories and classrooms will be equipped with digital devices to provide
a more conducive and attractive digital learning environment. Additionally, Inculcating Interest in Technology among Students
cloud computing will be promoted to assist educators in administration
processes, for example, in accessing educational information, sharing Interest in developing digital and creative content will be inculcated for all
teaching resources and undertaking academic assessment effectively. A students in school through more hands-on and engaging activities. Student
standard operating procedure will also be established to support the ‘bring empowerment through programmes designed ‘by students for students’
your own device’ approach in assisting the teaching and learning process in using digital platforms will be introduced. Subsequently, Reka Bentuk dan
schools. Teknologi, Asas Sains Komputer and Sains Komputer subjects will be offered
in English to students in the dual language programme for Mathematics and
Improving Digital Capacity and Capability Science. Digital and technology related clubs such as robotics, coding, and
digital content will be added in the co-curricular list of activities to inculcate
Upskilling programmes in collaboration with industry players, as one of the interest among students. In this regard, competitions at national and school
initiatives under the digital and technology Big Bold, will be implemented to levels will be expanded. Consistency and continuity in implementing these
address the demand for high-skilled digital talent. Furthermore, a structured measures will contribute towards producing quality digital talent.
 Mid-Term Review of the Twelfth Malaysia Plan
4-24 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Strategy C5: Strategy D1:

Expanding Digital Inclusivity Scaling up R&D&C&I Activities
Improving Digital Adoption Reprioritising R&D&C&I Niche Areas
The Malaysia Digital Inclusiveness Index (MyDID) will be developed to Selected niche areas for R&D&C&I will be streamlined based on the
measure digital divide and enable targeted policy prescriptions, including 10-10 MySTIE framework for government funding consideration. This
resource allocation and talent development. Earmarked programmes will be will ensure optimum return on investment of all government funded
identified to increase digital literacy and enhance trust in achieving wider R&D&C&I programmes and projects. Efforts will also be undertaken to
digital adoption, particularly among vulnerable groups. Concurrently, a pre- strengthen and support R&D for the selected niche areas by establishing
requisite digital adoption requirement for businesses will be introduced to an alliance comprising of experts, business associations and professional
complement existing campaigns for society to go cashless. Meanwhile, in bodies. Meanwhile, a cross-institutional mobility programme will be
order to uphold the safety and security of transactions and activities in digital introduced to support GRIs and HEIs in scaling up the selected research
healthcare, the end-to-end requirements for enabling digital signature will activities.
be pursued. Additionally, knowledge sharing programmes will be initiated
for teachers in remote areas to emulate successful teaching practices in Restructuring of R&D&C&I Governance
selected developing countries with limited infrastructure. These measures
will further enhance digital inclusion1, while improving digital adoption. The Research Management Unit (RMU) will be restructured and empowered
as an independent agency entrusted in managing allocations for public-

Focus Area D: funded R&D&C&I programmes and projects. An effective monitoring

system based on a unique research identification tag will be developed to
Optimising the Potential of improve management of R&D&C&I programmes and projects. In addition,

R&D&C&I and Escalating the

research funding will be streamlined based on technology readiness level
and ecosystem readiness. Existing policy will be reviewed to increase
Advancement of Technology investment of government-linked companies (GLCs) in local R&D&C&I
activities and talent development. A cost sharing voucher programme will
In the remaining Twelfth Plan period, focus will be given on optimising be introduced to enable doctorate graduates to commercialise research
the potential of R&D&C&I and escalating the advancement of technology outputs by establishing start-ups.
to accelerate economic growth. In this regard, two new strategies will be
implemented, namely scaling up R&D&C&I activities and elevating adoption Waqf for R&D will be introduced to increase the contribution of companies
of advanced technologies. The implementation of these strategies are and individuals in R&D&C&I activities. In order to improve flexibility and
essential in ensuring an exponential progression to a high technology and performance of GRIs, efforts will be undertaken to review structure, scale
high-income nation, which is characterised by higher productivity and and operating model. Meanwhile, a platform will be developed for leasing
increased competitiveness. of research equipment, facilities and technology to optimise utilisation of
resources in GRIs and HEIs.

Generating Maximum Value-Added from

Strategy D1 Scaling Up R&D&C&I Activities Intellectual Property
Technology Transfer Offices (TTOs) in GRIs and HEIs will be leveraged to
strengthen capacity and capabilities in research and commercialisation.
Strategy D2 Elevating Adoption of Advanced Technologies TTOs will be supported by specialised talent in technology transfer, IP
management and IP valuation to accelerate commercialisation activities

1
Affordable, quality, safe and secure access to digital technologies and services,
including connectivity, for everyone to better lives.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-25

and encourage collaboration among GRIs, HEIs and industries. The policy innovation through latest science and technology. These measures are
on IP will be reviewed to enhance the national IP ecosystem that will expected to increase talent in the science and technological sphere, who
proliferate technology ownership, adoption and transfer. Meanwhile, IP will eventually become technopreneurs.
assets will be leveraged in the assessment to secure funding in encouraging
commercialisation and innovation activities. Continuous efforts will be undertaken to create five local or homegrown
unicorns by 2025. These will include providing start-ups with access to
The existing scope and key performance indicators of the Malaysia mentors, connecting with investors regionally and globally, and assisting in
Commercialisation Year 2.0 (MCY 2.0) programme will be reviewed based on market expansion. In addition, the start-up ecosystem and connection to
best practices to allow more products to qualify for nominations. In addition, other innovation hubs around the world will be strengthened to facilitate
collaboration among stakeholders through the Innovation Acceleration cross-border collaboration, connectivity and market access. A start-up
Network under the National Technology and Innovation Sandbox (NTIS) convention will also be held to promote technoprenuership and innovation.
initiative will be enhanced to support marketing of local R&D technology.
In relation to this, measures will also be undertaken to enhance brand Boosting the Commercialisation of Technology
intervention and market validation studies by businesses to ensure the
product is well positioned in the market. Efforts will be intensified to nurture ideas into products and services by
leveraging the role of technology commercialisation accelerator in bringing
Strategy D2: together key stakeholders including start-ups. In this regard, innovation hubs
that provide 4IR-ready infrastructure and integrated facilities for innovators
Elevating Adoption of Advanced as well as entrepreneurs will be optimised to further strengthen the start-up
Technologies ecosystem. These measures are expected to attract foreign and domestic direct
investment in elevating advanced technology and boosting economic growth.

Enhancing Innovation and Indigenous Technological

Development Enhancing 4IR Ecosystem
The newly established Centre for the Fourth Industrial Revolution Malaysia,
Focus will be given to develop sufficient and competent STI talent pool
the first in ASEAN, will serve as a platform in providing insights from policy
towards enhancing innovation as well as indigenous technological creation
experts and global best practices in the areas of digital transformation,
and development. For this purpose, strategic collaboration with relevant
GovTech and energy transition. The centre will also provide technical
stakeholders will be strengthened to allow thorough assessment and
support for pilot projects, knowledge transfer and 4IR talent development in
address STI talent needs effectively. Additionally, efforts to improve the
positioning Malaysia as a 4IR Innovation Hub. In this regard, the centre will
performance of selected key indicators in the Global Innovation Index
bring together government, business leaders, academia and experts through
(GII), such as the Programme for International Student Assessment (PISA)
a global network. Meanwhile, a comprehensive review on existing initiatives
scales in reading, mathematics and science as well as tertiary enrolment
outlined under the Malaysia Digital Economy Blueprint and the National 4IR
in STEM will be given priority. In this regard, the Inter-Agency Global
Policy will be undertaken to identify gaps and strengthen implementation.
Innovation Index Competitiveness Monitoring Committee (JIPGII) will be
established to monitor and recommend intervention measures to enhance
the innovation ecosystem. Strengthening Venture Capital Ecosystem
Efforts will be intensified to attract more participation into INNOVATHON, a Efforts will be undertaken to streamline venture capital funding mechanism
reality TV programme that inspires the rakyat to capitalise their ideas through to develop a sustainable venture capital ecosystem as one of the initiatives
competition. INNOVATHON, as one of the initiatives under the digital under the digital and technology Big Bold, focusing on angel investors and
and technology Big Bold, is in line with one of the core values of Malaysia seed funding. In this regard, a five-year venture capital roadmap will be
MADANI which emphasises and encourages innovation. The programme, as developed to promote entrepreneurship and innovation. Additionally, this
shown in Box 4-1, will be implemented annually with greater collaboration measure will further support the implementation of SUPER 2021-2030
from industry and strategic partners. In addition, a social innovation policy and signify the importance of research and innovation to transform the
will be introduced to provide long-term strategies in implementing social domestic economy, and thus accelerate economic growth.
 Mid-Term Review of the Twelfth Malaysia Plan
4-26 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Box 4-1 total of 1,033 innovative projects covering various areas such as agriculture,
health and engineering. These projects were pitched by students from
Innovathon - A Reality tv Show on schools, higher education institutions and TVET institutions as well as
Innovation academicians and entrepreneurs.

The 56 contestants selected for the seven episodes were supported

The Ministry of Economy initiated an edutainment programme to mainstream in the form of exposure to Intellectual Property legislation as well as
innovation in the format of a reality TV show, known as INNOVATHON. The business and product development consultation during the programme.
programme was launched on 14 April 2023 in collaboration with the Ministry The final five winners in the grand finale were given cash prizes
of Science, Technology and Innovation together with ASTRO. This reality up to RM245,000 and grant worth up to RM1 million to support
TV show aims to mainstream innovation, while fostering and enculturing these innovation-based entrepreneurs in various stages of business
science and technology, especially among the younger generation. development.

INNOVATHON provides Malaysian innovators, entrepreneurs and individuals The first season has been beneficial in creating awareness to attract more
a platform to pitch ideas, prototypes and products. The TV show is divided innovators to come forward with creative ideas that could potentially be
into three segments namely, physical and online audition, grooming and commercialised. Moving forward, INNOVATHON will be expanded into
mentoring session as well as pitching and selection of winners. The physical serial TV programme to scale up home-grown technologies and contribute
audition was held in six cities, from 8 May to 17 May 2023, attracting a towards innovation-led growth.

Source: Ministry of Economy

 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-27

Focus Area E: of big data analytics will be explored to determine factors influencing
passenger needs and transport demand. Strengthening mobility data to be
Building Resilient Transport and comprehensive and real-time, as one of the initiatives under the Big Bold
Strengthening Public Transport Network will support the redesigning of
Logistics Infrastructure public transport system in meeting travel demand.

In the remaining Twelfth Plan period, concerted efforts will be undertaken

to build resilient transport and logistics infrastructure. In this regard, five Strategy E2:
new strategies will be introduced, namely improving passenger mobility data,
strengthening transport governance, enhancing connectivity and transport
Strengthening Transport Governance
infrastructure, improving infrastructure maintenance as well as increasing
the competitiveness of logistics and trade facilitation. The implementation Providing Conducive Ecosystem to Support the
of these strategies will address the needs of the rakyat, industries and global Drone Industry
market as well as support efforts to boost economic growth.
An enabling environment to foster the growth of Unmanned Aircraft System
(UAS) industry will be provided by improving regulations and formulating
new policies. A comprehensive UAS traffic management system will also
be developed to allow monitoring and enforcement on drone activities. In
Strategy E1 Improving Passenger Mobility Data
addition, capacity building programmes will be implemented to support the
adoption of the technology.

Strategy E2 Strengthening Transport Governance Improving Maritime Competitiveness

A national port blueprint comprising a comprehensive port policy and
implementation plan will be developed to propel the growth of the blue
Enhancing Connectivity and Transport economy. In addition, port services will be improved to attract more
Strategy E3
Infrastructure collaboration among port operators and shipping alliances as well as open
up new investment and trade opportunities. The expansion of Westports
container terminal will increase cargo handling capacity to handle ultra large
Strategy E4 Improving Infrastructure Maintenance container ship and further strengthen Port Klang as a regional transhipment
hub. This initiative will contribute RM55.3 billion to the economy and create
more than 6,000 job opportunities in the logistics industry.

Strategy E5
Increasing Competitiveness of Logistics and
Advancing Implementation of Green Transportation
Trade Facilitation
The formulation of Green Transport Index will be expedited towards the
implementation of green transportation. In this regard, a green transport
committee will be established to coordinate and harmonise the various
Strategy E1: rules and regulations in the transport subsector. In addition, human capital
Improving Passenger Mobility Data development will be strengthened to provide extensive support in governing
green transport. The implementation of these measures will contribute towards
achieving the aspiration of net-zero greenhouse gas emissions as early as 2050.
Redesigning Public Transport System with
Data-Driven Approach Efforts will be undertaken to advance green aviation by improving air traffic
management, as one of the initiatives under the public transport Big Bold.
A study will be undertaken to identify transport modal share as well as In this regard, the efficiency of aircraft movements will be enhanced to
passenger trends and behaviour to better understand travel demand and minimise aircraft fuel consumption and emissions. In addition, air traffic
needs. Meanwhile, a collaboration between the public transport authority control system and equipment will be upgraded to maximise aircraft
and telecommunication service providers will be established to leverage performance and the use of airspace. These efforts will reduce fuel burn
real-time data on spatial distribution of passengers. In addition, the usage as well as noise and air pollution affecting airports and the airspace.
 Mid-Term Review of the Twelfth Malaysia Plan
4-28 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Strategy E3: Enhancing Roads Infrastructure

Enhancing Connectivity and Transport Roads infrastructure will be further enhanced with the construction of
Infrastructure new alignment and upgrading of existing roads to improve connectivity
and support economic development. In this regard, the construction of the
new phases of Sabah Pan Borneo Highway and Sarawak-Sabah Link Road
Strengthening First- and Last-Mile Connectivity as well as the Trans Borneo Highway will connect major roads in Sabah
and Sarawak. Furthermore, the Senai-Desaru Expressway and the North-
Efforts will be intensified to improve first- and last-mile connectivity
South Expressway in Johor will be upgraded. These developments worth
in Greater Kuala Lumpur/Klang Valley. In this regard, the Bus Rapid
RM27 billion will enhance roads connectivity and support economic growth.
Transit (BRT) and intracity bus services will be expanded to increase
accessibility and connectivity from origin to final destination. This initiative
is part of the public transport Big Bold. In addition, the frequency of Strategy E4:
buses will be improved, while the routes will be realigned to minimise
passengers travelling time. The implementation of these efforts will Improving Infrastructure Maintenance
enhance public transport efficiency, reduce dependency on private
vehicles and subsequently, contribute towards increasing public transport Strengthening Transport Maintenance
ridership.
Upgrading projects involving existing road and rail infrastructure will be
prioritised to manage the growing needs for maintenance works. Additionally,
the monitoring mechanism on scheduled road and rail maintenance will be
strengthened. Meanwhile, the use of advanced materials in maintaining roads
will be further expanded to extend the life span of selected roads as well as
to reduce maintenance cost. The capacity of the agencies on maintenance
works for rail assets and air navigation equipment will be enhanced in the
efforts to reduce reliance on contractors.

Strategy E5:
Increasing Competitiveness of Logistics
and Trade Facilitation
Establishing a Single Platform for Port Community
A single platform will be established to connect federal ports in providing
fast and transparent access to industry players. The platform will function
as a central database to facilitate end-to-end information flow and serve
as a one-stop portal for maritime regulatory and port services transactions.
Upgrading Airport Infrastructure The system will also enable the Government to carry out evidence-based
planning in improving competitiveness of logistics services.
Airport infrastructure will be upgraded to increase accessibility and
connectivity in improving mobility of people and goods. The expansion of
Penang International Airport will cater the increase of passenger movements Encouraging Green Initiatives
and improve air connectivity. Meanwhile, Sultan Abdul Aziz Shah Airport,
Subang will be upgraded under the Subang Airport Regeneration Plan (SARP), Efforts will be undertaken to develop an internationally recognised green
which will also comprise of infrastructure for aerospace and business aviation logistics certification system to encourage logistics service providers to
as well as terminal expansion. The SARP will contribute RM216.6 billion adopt green supply chain best practices. The Government will also provide
to the economy, as well as creating more than 8,000 high-income jobs. support for green supply chain initiatives such as green design and purchasing,
reverse logistics as well as route and load optimisation. In addition, new
incentives will be explored to encourage the adoption of green technology
by logistics service providers.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 4: Strengthening Key Enablers towards High-Income Economy 4-29

Conclusion
During the review period of the Twelfth Plan, emphasis was given in developing future
talent, boosting digitalisation and advanced technology as well as enhancing efficiency
of transport and logistics infrastructure. Even though several targets were achieved,
issues and challenges still remain and need to be addressed. In the remaining Twelfth
Plan period, new strategies will be introduced to strengthen the key enablers in achieving
a high-income nation. Efforts will be intensified on reforming labour market, reshaping
talent for future of work, strengthening the digital economy ecosystem, optimising the
potential of R&D&C&I and escalating the advancement of technology, as well as building
resilient transport and logistics infrastructure. The new strategies aim to create efficient
labour market, expedite talent development, advance digital economy, boost innovation
and technology advancement as well as spur sustainable transport and logistics services,
building upon the aspiration of ‘Ekonomi MADANI: Memperkasa Rakyat’.
 Mid-Term Review of the Twelfth Malaysia Plan
4-30 Chapter 4: Strengthening Key Enablers towards High-Income Economy

Chapter
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-1

Progressing towards Regional Balance

Introduction 5-2

Progress, 2021-2022 5-3

Performance of Selected Targets 5-3
Achievement by Priority Area 5-8
Priority Area A : Optimising Regional Economic Potential 5-8
Priority Area B : Developing Sustainable Cities 5-9
Priority Area C : Transforming Rural Areas to Bridge Development Gap 5-10
Priority Area D : Solidifying Provision of Infrastructure 5-10
Priority Area E : Optimising Economic Potential 5-11
Priority Area F : Improving Access to Social Services 5-12
Priority Area G : Enhancing Inclusive Development 5-13
Priority Area H : Strengthening Cooperation between the Federal Agencies and 5-13
State Governments

Issues and Challenges 5-14

Imbalanced Regional Development 5-14
Low Level of Urban Resilience 5-14
Developmental Constraints in Rural Areas 5-14
Ineffectiveness in Leveraging Opportunities from Subregional Cooperation 5-15
Challenges in Development of Sabah and Sarawak 5-15

Way Forward, 2023-2025 5-16

Selected Targets, 2021-2025 5-17
Focus Area A : Enhancing Regional Economic Potential 5-21
Focus Area B : Accelerating Sustainable Urban Development 5-22
Focus Area C : Intensifying Rural Development 5-23
Focus Area D : Optimising Opportunities from Subregional Cooperation 5-25
Focus Area E : Intensifying Development in Sabah and Sarawak 5-26

Conclusion 5-29
 Mid-Term Review of the Twelfth Malaysia Plan
5-2 Chapter 5: Progressing towards Regional Balance

Introduction
Regional balance and inclusion are pertinent to ensure equitable socioeconomic
development. During the review period of the Twelfth Malaysia Plan, 2021-2025 (Twelfth
Plan), measures were undertaken to optimise regional economic potential, develop
sustainable cities, transform rural areas, and enhance socioeconomic development of
the less developed states, including Sabah and Sarawak. Nevertheless, the challenges
to narrow development gaps among regions and states as well as rural and urban areas
still persist and need to be addressed towards achieving regional balance.

In the remaining Twelfth Plan period, focus will be on enhancing regional economic
potential, accelerating sustainable urban development and intensifying rural development.
In addition, optimising opportunities from subregional cooperation and intensifying
development in Sabah and Sarawak will also be given emphasis. These efforts will
reduce imbalances among regions and states, while promoting equitable growth and
enhancing the wellbeing of the rakyat. Measures will also be undertaken to accelerate
the implementation of green growth initiatives, particularly in Sabah and Sarawak in
pursuing socioeconomic development and environmental sustainability.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-3

Progress, 2021-2022
A total of 43 targets were set in the effort to improve regional balance and inclusion, including enhancing socioeconomic development in Sabah and Sarawak. Out
of the 43, 10 targets were achieved and 33 are on track during the 2021-2022 period. The performance of these targets is as shown in Exhibit 5-1.

Exhibit 5-1
Performance of Selected Targets
Optimising Regional Economic Potential
Region GDP per Capita Ratio to Central Region

Northern Central Southern

1.7 1.7 1.0 1.0 1.7 1.7

2025 2022 2025 2022 2025 2022

Eastern Sabah Sarawak

2.3 2.2 2.5 1.9 1.2 0.9

2025 2022 2025 2022 2025 2022

 Mid-Term Review of the Twelfth Malaysia Plan
5-4 Chapter 5: Progressing towards Regional Balance

Average GDP Growth

Northern Central Southern

5.6% 6.8% 4.3% 6.8% 5.1% 5.3%

2021-2025 2021-2022 2021-2025 2021-2022 2021-2025 2021-2022

Eastern Sabah Sarawak

6.5% 4.9% 6.4% 2.6% 5.3% 4.8%

2021-2025 2021-2022 2021-2025 2021-2022 2021-2025 2021-2022

Median Monthly Household Income

Northern Central Southern

RM5,560 RM4,957 RM9,290 RM9,131 RM7,480 RM6,879

2025 2022 2025 2022 2025 2022

Eastern Sabah Sarawak

RM5,210 RM4,658 RM5,380 RM4,668 RM5,430 RM4,978

2025 2022 2025 2022 2025 2022

 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-5

Developing Sustainable Cities

120 84 14 In
progressa
cities cities cities

2025 2022 2021-2025 2021-2022

Achieve Sustainable City Status Implement Green City Action Plan (GCAP) under
based on MURNInets IMT-GT and BIMP-EAGA Platforms

Transforming Rural Areas

2,800km 1,175km 98% 97.04% 99% 98.27% 0.67:1 0.57:1

2021-2025 2021-2022 2025 2022 2025 2022 2025 2022

Constructing and Upgrading Coverage of Access to Coverage of Access to Rural-Urban Income Ratio
Rural Paved Roads Clean and Safe Water Electricity

Note: a GCAP initiated in three cities, namely, Kota Bharu, Kuching and Langkawi.
 Mid-Term Review of the Twelfth Malaysia Plan
5-6 Chapter 5: Progressing towards Regional Balance

Solidifying Provision of Infrastructure

98% 96.64% 98% 99.12% 99% 96.61% 99% 95.73%

Sabah Sarawak Sabah Sarawak

2025 2022 2025 2022 2025 2022 2025 2022

Coverage of Access to Clean and Safe Water Coverage of Access to Electricity

700km 110.5km 700km 65.3km 382 sites In 636 sites 2

Sabah Sarawak Sabah progressa Sarawak sites

2021-2025 2021-2022 2021-2025 2021-2022 2025 2022 2025 2022

Constructing and Upgrading Rural Paved Roads New Sites for Digital Infrastructure Development

781 PoP 59 643 PoP 60 150 286 60 76

minutes minutes
Sabah PoP Sarawak PoP minutes minutes
Sabah Sarawak

2025 2022 2025 2022 2025 2022 2025 2022

Number of Points of Presence (PoP) for Broadband System Average Interruption Duration Index (SAIDI)
Connectivity for Rural Schools

Note: a In the process of getting site approval.

 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-7

Optimising Economic Potential

6.5% 2.6% 5.3% 4.8%

RM5,380
RM4,577
RM5,430
RM4,978
Sabah Sarawak Sabah Sarawak

2021-2025 2021-2022 2021-2025 2021-2022 2025 2022 2025 2022

Average GDP Growth Median Monthly Household Income

Improving Access to Social Services Enhancing Inclusive Development

65,000 29,812 397,000 127,741

26,000 14,572 hectares
hectares hectares hectares
Sabah Sarawak

2021-2025 2021-2022 2021-2025 2021-2022 2021-2025 2021-2022

Houses Constructed and Repaired for the Poor Households Mapping of Native Customary Rights (NCR) Land
in Sabah and Sarawak
 Mid-Term Review of the Twelfth Malaysia Plan
5-8 Chapter 5: Progressing towards Regional Balance

Achievement by Priority Area

Priority Area A: Optimising Regional Economic Potential

Strategy A1: Accelerating Development Based on Key Growth Nodes and Hotspot Area

Promoting Economic Activities of Key ● Sabah Development Corridor (SDC) Blueprint 2.0, 2021-2030 completed in 2022
Growth Nodes and Hotspot Areas

Strategy A2: Attracting Quality Investment

Focusing on High Value-Added, ● RM100.4 billion investment in five regional economic corridors (RECs), realised as at 2022
Advanced Technology and Knowledge- o Iskandar Malaysia (IM) - RM23.2 billion
Intensive Activities o East Coast Economic Region (ECER) - RM5.6 billion
o Northern Corridor Economic Region (NCER) - RM65.2 billion
o Sarawak Corridor of Renewable Energy (SCORE) - RM2.7 billion
o Sabah Development Corridor (SDC) - RM3.7 billion

Strategy A3: Improving the Business Ecosystem

Intensifying Talent and Entrepreneurship ● 214,888 jobs and 48,973 entrepreneurship opportunities created in five RECs
Development o IM - 77,626 jobs and 7,504 entrepreneurship opportunities
o ECER - 27,413 jobs and 6,238 entrepreneurship opportunities
o NCER - 51,503 jobs and 35,231 entrepreneurship opportunities
o SCORE - 49,685 job opportunities
o SDC - 8,661 job opportunities

Strategy A4: Enhancing Strategic Collaboration and Coordination

Prioritising Development Allocation for ● RM28.7 billion or 51.3% of the total basic development expenditure (DE) allocated to the six
Less Developed States less developed states

Strategy A5: Enhancing Cooperation under IMT-GT and BIMP-EAGA

Strengthening Cross-Border Economic ● Nine Physical Implementation Projects (PIPs) in Sabah, Sarawak and Labuan completed in 2022
Activities and Value Chains
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-9

Priority Area B: Developing Sustainable Cities

Strategy B1: Promoting Effective Urban Planning and Governance

Strengthening Urban Development Planning ● 47 of the 64 initiatives in the Second National Urbanisation Policy (NUP2) implemented
● Urban profiling for 281 cities completed through Kajian Penentuan Sempadan Bandar

Promoting Sustainable and Smart City ● 127 out of 155 local authorities adopted the Malaysian Urban-Rural National Indicators
Approach Network for Sustainable Development (MURNInets)
● 12 local authorities developed smart city action plans

Improving Coordination and Governance ● Implementation of Sustainable Development Goals (SDGs)

Mechanisms o Five Cities Roadmaps developed
o Two Voluntary Local Reviews (VLR) published

Strategy B2: Fostering Sustainable Urban Economy

Encouraging the Growth of Economic ● 8,479 businesses benefitted from the Retail Sector Digitalisation Initiative Programme
Activities in Cities ● 1,734 participants benefitted from the Program Pemerkasaan Ekonomi Komuniti Bandar

Strategy B3: Prioritising Green and Resilient Urban Development

Strengthening Waste Management ● 260,360 premises involved in the waste separation enforcement exercise
● 5,717 recycle waste facilities provided to local authorities, civil society organisations (CSOs),
recycling businesses and factories

Promoting Green Mobility ● 902 public charging stations for electric vehicles (EVs) installed nationwide
● Usage of the Planning Your Lifestyle Efficiently (PULSE) mobile application in assisting public
transport commuters increased from 44,520 in 2021 to 56,520 in 2022

Enhancing Urban Biodiversity ● 7,637.5 hectares of land gazetted as open space in urban area

Strategy B4: Building Sustainable Urban Society

Improving Liveability and Inclusiveness ● 108,373 units of Rumah Mampu Milik (RMM) constructed
 Mid-Term Review of the Twelfth Malaysia Plan
5-10 Chapter 5: Progressing towards Regional Balance

Priority Area C: Transforming Rural Areas to Bridge Development Gap

Strategy C1: Accelerating the Provision of Infrastructure and Services

Enhancing Basic Services ● 10 villages involved in the Komuniti Sihat Pembina Negara Programme
● 3,644 new houses built and 23,270 houses repaired under the Program Bantuan Rumah

Improving Connectivity and Mobility ● 2.6 million rural passengers benefitted from Majlis Amanah Rakyat stage buses services
● 13,203 rural entrepreneurs benefitted from 4,388 activities under Program Pemerkasaan Pusat
Komuniti Desa (PKD)

Strategy C2: Diversifying and Boosting Economic Activities

Optimising Land Use for Rural Economy ● 17 projects under the Program Bersepadu Pembangunan Ekonomi Kampung commenced in 2021
● 2,083 projects conducted under the Program Pembangunan Peneroka

Re-energising Rural Cottage Industries ● 153 village cooperatives leveraged to operate rural cottage industries
● Three rural ecotourism projects undertaken
o Kompleks Pelancongan Warisan Tanjung Balau, Kota Tinggi, Johor completed in 2022
o Kompleks Pelancongan Warisan Pulau Tanjung Surat, Kota Tinggi, Johor and Kompleks
Pelancongan Taman Herba, Tasik Kenyir, Terengganu commenced in 2021

Strategy C3: Improving Governance

Streamlining Delivery System ● 20,726 village profiles recorded and updated in the Sistem Profil Kampung Peringkat Nasional (SPKPN)

Priority Area D: Solidifying Provision of Infrastructure

Strategy D1: Extending the Provision of Infrastructure

Improving the Provision of Basic ● Construction progress of the Pan Borneo Highway
Infrastructure o 92% in Sarawak
o 74% of Phase 1A in Sabah

Strategy D2: Extending the Provision of Connectivity

Enhancing Rural Air Services ● RM190.85 million in 2021 and RM182.09 million in 2022 allocated as subsidies for Rural Air
Services (RAS)
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-11

Priority Area E: Optimising Economic Potential

Strategy E1: Re-energising Economic Activities

Modernising Agriculture Sector ● RM39 million funds approved, benefitting 75 farmers in Sabah and Sarawak

Enhancing the Services Sector ● RM4 million worth of tour packages sold in over 10 international tourism roadshows and
exhibitions through collaboration between local tourism players in Sabah and Sabah Tourism
Board in 2022
● The Malaysian Productivity Corporation in Sarawak completed the study on business
registration reform in 2022

Accelerating the Construction Sector ● Two testing laboratories for cement and ready-mixed concrete products, each in Sabah and
Sarawak, have been operating since 2022
● 48 upskilling and reskilling programmes in Sabah and 98 in Sarawak accredited

Strategy E2: Advancing Rural Development

Re-energising Rural Economic Activities ● 900 farmers at 90 locations in Sabah and 556 farmers at 54 locations in Sarawak implemented
smart and clustered farming, utilising idle land

Providing Access to Online Businesses ● 15 PKD in Sabah and six PKD in Sarawak have provided access and facilities for online businesses
● 118 Pusat Ekonomi Digital (PEDi) in Sabah and 133 PEDi in Sarawak have provided digital
entrepreneurship courses

Strategy E3: Accelerating Urban Development

Improving Development Potential of Cities ● 14 out of 48 initiatives in the City Competitiveness Master Plan (CCMP) Kota Kinabalu implemented
● Three out of 13 initiatives in the CCMP Kuching implemented

Upgrading Urban Services ● One city in Sabah achieved sustainability status, while 25 other cities achieved medium
sustainability status based on MURNInets assessment

Strategy E4: Promoting Green Growth

Conserving Natural Capital ● Totally Protected Area within the Heart of Borneo
o Sabah: 1,459,181 hectares in 2021 from 551,879 hectares in 2007
o Sarawak: 554,280 hectares in 2021 from 362,860 hectares in 2007
 Mid-Term Review of the Twelfth Malaysia Plan
5-12 Chapter 5: Progressing towards Regional Balance

Priority Area F: Improving Access to Social Services

Strategy F1: Improving Access to Education

Improving Access to Education and Training ● 88 projects on the reconstruction of dilapidated school buildings categorised as level six and
seven in the School Building Condition Index

Enhancing Industry Collaboration Network ● 4,392 trainees attended National Dual Training System programme in Sabah and Sarawak
● The Teaching Factory model has been rolled out to five pilot TVET institutions in Sabah and
Sarawak, specialising in the field of electrical, mechanical, and oil and gas, benefitting 717
students

Strategy F2: Improving Access to Affordable Housing

Increasing the Supply of Affordable ● 516 units out of 1,300 Rumah Mesra Rakyat (RMR) in Sabah completed
Housing for Targeted Groups ● 414 units out of 1,200 RMR in Sarawak completed

Strategy F3: Enhancing Security and Public Safety

Enhancing Border and Maritime Security ● Integrated forces to control the border have been mobilised under the National Task Force
● Four Littoral Mission Ship, three Helicopter Operation Maritime and six Fast Interceptor Craft
operationalised
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-13

Priority Area G: Enhancing Inclusive Development

Strategy G1: Addressing Poverty and Diversifying Sources of Income

Alleviating Poverty through the Provision ● 7,053 units of houses constructed and repaired in rural and urban areas in Sabah
of Basic Infrastructure and Services ● 7,519 units of houses constructed and repaired in rural and urban areas in Sarawak
● Two Passenger Landing Facilities (PLF) projects under Program Khas Bumiputera (PKB) Sarawak,
completed in Nanga Sejiran, Kapit and Sungai Kut, Dalat
● Tambunan Native Court completed under Program Khas Anak Negeri (PKAN) Sabah
● 39.3 kilometres farm roads paved under PKB Sarawak

Increasing and Diversifying Sources of ● 33 hectares of land planted with durian, banana and pineapple, involving 33 participants under PKB
Income Sarawak

Strategy G2: Strengthening Anak Negeri Sabah and Bumiputera Sarawak

Improving Employability and Promoting ● 57 skills training programmes implemented involving 741 participants under PKAN Sabah
Entrepreneurship ● 35 human capital development programmes consisting of 33 courses and two study tours
implemented, involving 1,555 participants under PKB Sarawak
● Eight community colleges in Sabah and six in Sarawak offered 1,601 lifelong learning programmes,
benefitting 29,767 students

Priority Area H: Strengthening Cooperation between the Federal Agencies and State
Governments

Strategy H1: Establishing a Supportive Ecosystem for Cooperation

Reviewing the Rights of Sabah and ● Three out of 10 projects on electrification under the Sabah Special Project Delivery Unit completed
Sarawak in 2022
● Jabatan Kerja Raya (JKR) Sabah and Sarawak authorised as the technical agencies to implement
Federal projects worth RM50 million and below

Prioritising Development Allocation for ● RM10.3 billion or 18.4% of the total basic DE allocated to Sabah
Sabah and Sarawak ● RM8.2 billion or 14.6% of the total basic DE allocated to Sarawak
 Mid-Term Review of the Twelfth Malaysia Plan
5-14 Chapter 5: Progressing towards Regional Balance

Issues and Challenges

Development gap between regions and states as well as urban and rural areas remain despite vigorous efforts to improve regional balance and
inclusion. Among the key issues and challenges are imbalanced development, low level of urban resilience, developmental constraints in rural areas and
ineffectiveness in leveraging opportunities from subregional cooperation. In addition, challenges in development of Sabah and Sarawak continued to
hinder progress. Failure to address these issues will further widen development gap between areas and contribute to regional development imbalances.

Imbalanced Regional I
Development
● Low adoption of the national strategic spatial planning
policies in developing identified growth areas

● Insufficient investment in niche areas and high value-

added activities
II Low Level of Urban Resilience
● Fragmented regional development planning and ● Challenges in addressing climate change
overlapping roles between Federal and state agencies o Low adoption of green practices

o Inefficient urban planning and governance

o Slow development of smart city

Developmental Constraints in III ● Challenges in uplifting wellbeing of urban
Rural Areas communities
o Rising cost of living and urban poverty
● Insufficient basic rural infrastructure and amenities
o Lack of access to affordable housing
● Limited access to basic government and private sector
services o Inefficient public transportation

● Lack of socioeconomic opportunities

● Lack of community involvement in the maintenance of

rural infrastructure

● Poor training quality for grassroots leadership

● Untapped potential of idle land

 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-15

V
Challenges in Development of
Sabah and Sarawak
● Lack of basic infrastructure and connectivity

● Inadequate digital infrastructure

● Slow economic growth

o Challenges in survey and mapping of Native
Customary Rights (NCR) land

o Lack of quality investment

Ineffectiveness in Leveraging IV
o Lacklustre promotion for tourism activities
Opportunities from Subregional
o Lack of high value-added activities in gas industry
Cooperation o Low adoption of technology in agriculture practices
● Subregional cooperation ● Overdependency to fossil fuels and lack of balance in
o Insufficient infrastructure accessibility and connectivity energy mix
o Lack of collaboration and coordination among stakeholders ● Challenges in advancing green growth initiatives
● Development in border areas ● Challenges in providing quality education
o Fragmented border areas development o Increasing number of dilapidated schools
o Slow socioeconomic development in border areas o Lack of learning facilities for children with
special needs
● Security aspects
o Limited assets and security manpower to control border o Inadequate teaching and learning skills
areas
o Increasing number of dropout students in
o Increasing risks from illegal activities and incursion at the remote areas
border
● Limited access to affordable housing and healthcare
services

● Inefficient public service delivery

o Varied charges and fees for the construction of
telecommunication infrastructure by agencies and
local authorities

o Delay in obtaining permit and site approval from the

state governments and agencies, local authorities
and state-related companies

o Uncoordinated development of gas industry

 Mid-Term Review of the Twelfth Malaysia Plan
5-16 Chapter 5: Progressing towards Regional Balance

Way Forward, 2023-2025

In the remaining Twelfth Plan period, focus will continue to be given on regional balance and inclusion for wider distribution of socioeconomic
benefits. This will be undertaken by enhancing regional economic potential, accelerating sustainable urban development, intensifying rural development,
optimising opportunities from subregional cooperation and intensifying development in Sabah and Sarawak. These measures will promote better
economic growth in all regions and improve wellbeing of the rakyat in rural and urban areas.

Focus Area A: Focus Area B:

Enhancing Regional Economic Potential Accelerating Sustainable Urban
Development

Strategy A1: Strategy B1:

Intensifying Regional Development at Potential Growth Areas Strengthening Development towards Resilient Cities
Strategy A2: Strategy B2:
Leveraging on Federal and States Agencies Cooperation Promoting Wellbeing of Urban Society

Focus Area C: Focus Area D:

Intensifying Rural Development Optimising Opportunities from
Subregional Cooperation

Strategy C1: Strategy D1:

Expanding the Provision of Infrastructure and Services Leveraging Cooperation under IMT-GT, BIMP-EAGA and JMCIM
Strategy C2: Strategy D2:
Unlocking Rural Economic Potential Accelerating Border Development
Strategy C3:
Strengthening Governance

Focus Area E:
Intensifying Development in Sabah and
Sarawak

Strategy E1:
Enhancing the Provision of Infrastructure
Strategy E2:
Optimising Economic Potential
Strategy E3:
Improving Wellbeing of the Rakyat
Strategy E4:
Strengthening the Whole-of-Government Approach
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-17

Selected Targets, 2021-2025

Enhancing Regional Economic Potential
Northern central Southern Eastern Sabah Sarawak

Region GDP
per Capita
Ratio to
1.6 1.0 1.7 2.1 1.9 0.8
Central Region

2025 2025 2025 2025 2025 2025

Average GDP
Growth 6.0% 5.6% 5.4% 6.1% 4.3% 5.1%

2021-2025 2021-2025 2021-2025 2021-2025 2021-2025 2021-2025

Median
Monthly rm5,560 rm9,290 rm7,480 rm5,210 rm5,380 rm5,430
Household
Income

2025 2025 2025 2025 2025 2025

 Mid-Term Review of the Twelfth Malaysia Plan
5-18 Chapter 5: Progressing towards Regional Balance

Accelerating Sustainable Urban Development

Implementing Green City

120 Achieving Sustainable
City Status based on
14 Action Plan (GCAP) under 5
cities MURNInets cities IMT-GT and BIMP-EAGA cities Rated as Smart Cities
Platforms

2025 2021-2025 2025

Intensifying Rural Development

Constructing and
Coverage of Access to
2,800km Upgrading Rural Paved 98% Clean and Safe Water
Roads

2021-2025 2025

Coverage of Access to Rural-Urban Income

99% Electricity 0.67:1 Ratio

2025 2025

New Target
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-19

Intensifying Development in Sabah and Sarawak

98% 99% 700km

Sabah Sabah Sabah
Constructing and
Coverage of Access to Coverage of Access to
Upgrading Rural Paved
Clean and Safe Water Electricity
Roads

98% 99% 700km

Sarawak Sarawak Sarawak

2025 2025 2021-2025

382 sites 695 PoP 150

minutes
Sabah Sabah
Number of Points of Sabah
System Average
New Sites for Digital Presence (PoP) for
Interruption Duration
Infrastructure Development Broadband Connectivity
Index (SAIDI)

636 sites 741 PoP

for Rural Schools
60
minutes
Sarawak Sarawak Sarawak

2025 2025 2025

 Mid-Term Review of the Twelfth Malaysia Plan
5-20 Chapter 5: Progressing towards Regional Balance

Intensifying Development in Sabah and Sarawak

4.4% RM5,380
Sabah Sabah
Median Monthly
Average GDP Growth
Household Income

5.1% RM5,430
Sarawak Sarawak

2021-2025 2025

65,000
hectares
Houses Constructed and Sabah
Repaired for the Poor Mapping of Native
26,000 Households in Sabah and Customary Rights (NCR)
Sarawak Land
353,190
2021-2025 hectares
Sarawak

2021-2025
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-21

Focus Area A: manufacturing as well as oil and gas. Incentive packages will also be
enhanced to attract investment, particularly in the less developed areas.
Enhancing Regional Economic In addition, a special financial zone will be establised in Iskandar Malaysia
to attract foreign investors and skilled workers to reside in Malaysia.
Potential These initiatives will create more employment and entrepreneurship,
thus enhancing socioeconomic development in the region.
Efforts to narrow inter- and intra-regional imbalances will continue to be
pursued as a priority by boosting regional economic potential. Measures
will be undertaken to intensify regional development in potential growth
Strategy A2:
areas and leverage Federal and states agencies cooperation. In this regard, Leveraging on Federal and States Agencies
emphasis will be given to accelerate strategic development in the growth
areas and entice quality investment in boosting regional growth within Cooperation
the remaining Twelfth Plan period.
Solidifying Cooperation and Collaboration
Cooperation between Federal and state agencies will continue to be
Strategy A1 Intensifying Regional Development at Potential
strengthened to address fragmented development. In this regard, the
Growth Areas regional economic corridors authorities will continue to play an essential
role in accelerating investment in the region. These will include facilitating
development approvals across multiple agencies as well as solving land
Strategy A2 Leveraging on Federal and States Agencies issues and other related matters to ensure committed investment are
Cooperation realised. In addition, the overlapping role of key agencies at the Federal
and state level will be streamlined for better development planning and
coordination. The implementation of these initiatives will contribute towards
a stronger cooperation and collaboration among Federal and state agencies.
Strategy A1:
Prioritising Development in Less Developed States
Intensifying Regional Development at
Potential Growth Areas Efforts to narrow the development gap in the less developed states will
be continued to ensure more equitable socioeconomic development.
The industrial development based on geographical factors will be
Enhancing Development in Identified Growth Areas encouraged to reduce regional development gaps. In this regard, priority
will continue to be given by allocating at least 50% of the total basic
The Fourth National Physical Plan (NPP4) will be optimised to boost DE for the less developed states, especially for the states of Kelantan
development in the identified growth areas. In this regard, business ecosystem and Terengganu. Cross-border economic activities will be intensified to
will be further enhanced to facilitate ease of doing business and attract quality promote development in these states.
investment. Meanwhile, talent development programmes will be intensified
to retain skilled workers from talent migration. These measures will foster
economic activities that contribute towards balanced regional development.

Attracting Investment in Niche Areas

The Federal and states regional development agencies will be encouraged to
streamline development priorities by leveraging strengths, uniqueness and
available resources in each region. Efforts will continue to be undertaken
in promoting advanced technology in the upstream and downstream
activities. In this regard, the Chuping Valley Industrial Area, a high-impact
project in the northern region, will focus on four main clusters, namely
green manufacturing, halal industries, renewable energy generation and
automotive. Meanwhile, Tok Bali Industrial Park, another high-impact
project in the eastern region will focus on downstream activities in
 Mid-Term Review of the Twelfth Malaysia Plan
5-22 Chapter 5: Progressing towards Regional Balance

Focus Area B: adoption of the Low Carbon Cities Framework and enhance capacity
of local authorities. Strategic cooperation and coordination among the
Accelerating Sustainable Urban Federal Government, state governments, local authorities, private sector
and civil society organisations (CSOs) will be strengthened in championing
Development low-carbon agenda to reduce the impact of climate change.

Efforts will be undertaken to address rapid urbanisation and climate

change impacts on cities towards accelerating sustainable urban
development. In the remaining Twelfth Plan period, emphasis will be given
on strengthening development towards resilient cities and promoting
wellbeing of the urban society. These measures will contribute
towards better quality of life in cities aligned with the goals of the
2030 Agenda.

Strategy B1 Strengthening Development towards

Resilient Cities

Strategy B2 Promoting Wellbeing of Urban Society

Enhancing Urban Planning and Governance
Efficiency
The third national urbanisation policy will be formulated as a
Strategy B1: comprehensive urban planning policy by addressing the impact of

Strengthening Development towards climate change, COVID-19 pandemic, and growing urban dwellers’
needs and evolving businesses landscape in urban areas. This policy will
Resilient Cities guide local authorities to identify new potentials of cities. In addition,
Kajian Penambahbaikan Penyediaan Rancangan Pemajuan will improve
the formulation of development plans for a better and dynamic urban
Providing a Resilience-Enabling Environment planning. Meanwhile, the first phase implementation of Malaysia Urban
Observatory (MUO) system will contribute towards a comprehensive
The adoption of Pelan Induk Saliran Mesra Alam (PISMA) will be emphasised database on urban planning. The MUO will facilitate local authorities in
to address flood prone urban areas. In this regard, the land use planning planning, monitoring and governing cities.
in state structure plans and local plans will be aligned with PISMA towards
improving the drainage system in urban areas to reduce major flood
occurrence. In addition, relevant state governments and local authorities Promoting Smart City Development
will be encouraged to adopt the National Coastal Zone Physical Plan 2 to
ensure better protection and management of coastal areas. Meanwhile, Measures will be undertaken to accelerate the recognition of smart
efforts to accelerate green practices in cities will continue to focus on cities, based on the Sustainable Cities and Communities-Indicators for
improved enforcement of waste separation at source and promotion of Smart Cities (MS ISO 37122:2019) standard. This effort will enable local
the reduce, reuse and recycle (3R) initiative. authorities to improve service delivery and attract more investment.
During the remaining Twelfth Plan period, at least five cities are targeted
to be recognised as smart city early adopters.
Improving Implementation of Low-Carbon
Development Improving Urban Biodiversity
The implementation of low-carbon development among local authorities Efforts on improving urban biodiversity will continue to be pursued to
will be encouraged towards reducing greenhouse gas emission. In support green growth. The recreational areas and urban landscaping in
promoting energy efficiency, efforts will be undertaken to increase the new township development will be revitalised to improve cities image
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-23

and enhance liveability. In addition, community-based urban farming

programmes will be leveraged to support food security while reducing
carbon footprint. The implementation of these measures will contribute Expanding the Provision of Infrastructure and
Strategy C1
towards improving the quality of life in urban areas. Services

Strategy B2:
Strategy C2 Unlocking Rural Economic Potential
Promoting Wellbeing of Urban Society
Intensifying Efforts in Addressing Urban Poor
Strategy C3 Strengthening Governance
Efforts will be undertaken to address poverty incidence in urban areas.
The implementation of the Program Inisiatif Pendapatan Rakyat (IPR),
which also covers the hardcore poor, poor and low-income households
in urban areas will focus on empowering relevant households to increase
the ability to generate sustainable income. Efforts will also be undertaken
to develop entrepreneurs and provide skill trainings. These measures will
improve the wellbeing of the urban society.

Improving Access to Affordable Housing and

Transportation
The implementation of Program RMR, Residensi Wilayah and PPR will be
expedited to increase the supply of affordable housing. Collaboration
with financial institutions to provide attractive and sustainable housing
financing packages will be pursued. Meanwhile, more transit-oriented
development and provision of efficient public transportation will improve
access to transportation in major cities.

Strategy C1:
Accelerating Sustainability of Cities
Expanding the Provision of Infrastructure
The adoption of the MURNInets system by local authorities in Sabah
and Sarawak will be accelerated to promote sustainable cities. Efforts on
and Services
SDGs localisation will be emphasised to promote sustainability elements
into urban development. In this regard, more local authorities will be Increasing Provision of Rural Infrastructure
supported in the preparation of the SDGs VLR to showcase achievements
in realising sustainable development agenda. The existing initiatives in expanding provision of infrastructure such
as roads, as well as electricity and water supply, including through

Focus Area C:
alternative systems such as solar hybrid, tube well and rainwater harvesting
will continue to be implemented. In this regard, the remaining 1,625

Intensifying Rural Development kilometres of roads will be constructed and upgraded. Meanwhile, access
to water supply coverage will be expanded to achieve 98% and that
of electricity to 99%. Maintenance culture will be cultivated among
Narrowing development disparity between urban and rural areas is crucial
community to ensure long-term rural infrastructure sustainability, among
towards achieving a more equitable and sustainable economic growth.
others, by providing courses to enhance necessary skills. Collaboration
In this regard, efforts will be undertaken to expand the provision of
between CSOs, private sector, higher education institutions and rural
infrastructure and services, unlock rural economic potential and strengthen
community will be further fostered. In addition, a portal will be created
governance. These strategies will contribute towards improving rural-urban
to enable online lodging of complaints on damaged and deteriorated
income disparity from 0.57:1 in 2022 to 0.67:1 in 2025.
infrastructures.
 Mid-Term Review of the Twelfth Malaysia Plan
5-24 Chapter 5: Progressing towards Regional Balance

Improving Waste Management availability of land, proximity to natural endowments and rural heritage.
The implementation of these initiatives will create more job opportunities
Rural community-based solid waste and sanitation management programmes and increase the income of rural community.
will be implemented through collaborative work with CSOs and private
sector. In addition, recycling activities will be encouraged among rural Strengthening Rural Cottage Industries
population to raise environmental awareness. These efforts aim to
empower rural communities to improve waste management and ensure Efforts will be undertaken to further utilise PKD as the hub to promote and
preservation of the environment. market rural cottage products. Digital economy will be leveraged to promote
rural cottage products for better market access. Meanwhile, rural cottage
Enhancing Connectivity and Mobility entrepreneurship programmes will be enhanced by improving contractual
agreement and imposing minimal participating fees to instil accountability,
Access to internet will be further improved in enhancing connectivity responsibility and commitment of entrepreneurs. In addition, capacity
in rural areas. In this regard, broadband coverage under Pelan Jalinan development programmes, including digital skills will be enhanced for rural
Digital Negara (JENDELA) will be expanded to ensure the target of 100% entrepreneurs to expand market access, domestically and internationally.
internet coverage in populated areas by 2025 is met. Efforts will also
be undertaken to rejuvenate public transportation services that were Rural entrepreneurial ecosystem will be improved to increase business
impacted by the COVID-19 pandemic. capacity in rural areas. In this regard, development training, business
development programmes, financing facilities and business support
services will be further enhanced. Meanwhile, efforts will be intensified in
Strategy C2: developing rural entrepreneurs through various initiatives and programmes,
Unlocking Rural Economic Potential in line with the needs of the local industry.

Marketing for agro-based products will be strengthened, while financial

Maximising Land Use for Rural Economy assistance, microcredit and loan programmes for agricultural activities will
be improved. In addition, cooperation with private sector on agricultural
Community-based modern agricultural activities to optimise idle land will
activities will be promoted to achieve economies of scale. These efforts will
be increased. In this regard, suitable land in rural areas will be identified
boost rural economy and generate more income of the rural community.
and utilised for agricultural activities under Inisiatif Usahawan Tani
(INTAN), one of the components under IPR. Assistance will be provided
for infrastructure costs, agricultural inputs, training and technical advisory Strategy C3:
services. This initiative will be implemented through collaboration with
reputable off-takers. Strengthening Governance
Efforts to increase income of rural farmers will be intensified under the Enhancing Training for Rural Leadership
additional agricultural activity programme. In this regard, agricultural
inputs, such as seeds and fertilisers as well as advisory services will Leadership training courses for rural leaders at grassroots level will be
be provided to support farmers in venturing into additional agricultural enhanced by benchmarking with other recognised leadership programmes
activities. Large scale and high value farming, such as plantation of durian, for a better training content. Digital courses will also be offered to
avocado and pineapple will also be encouraged. improve the quality of grassroots leadership. Meanwhile, government
premises will be optimised as learning centres for rural leadership training
Business premises, such as shophouses, food courts and kiosks will be courses.
constructed and upgraded for rural entrepreneurs. Meanwhile, incubators
for start-ups will be provided with a supportive ecosystem, including
mentoring, research and development facilities and shared business
Enhancing Rural Delivery System
equipment. These measures will create job opportunities and foster
The SPKPN will be upgraded and integrated with the Spatial Characteristics
entrepreneurship, thus unlock rural economic potential.
of Rural Malaysia System (S-CHARMs) to be a more user-friendly system.
The integration will include geographic information database as well as
The natural landscapes and biodiversity as well as cultural heritage and
analytical capability of spatial information of villages and public facilities.
traditional way of life in rural areas will be preserved to promote rural
tourism. Hence, rural tourism products will be improved by leveraging the These efforts will provide a more interactive and centralised database
for better rural development planning.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-25

The PKD Mobile will be introduced to expand the existing services

offered in PKD, particularly in remote areas. Among the facilities provided
Strategy D1:
include mobile counters for government services such as renewal of Leveraging Cooperation under IMT-GT,
vehicle road tax, issuance of birth certificate and application of identity
card. Meanwhile, private sector services will include banking, courier and
BIMP-EAGA and JMCIM
postage services. This initiative is to ensure rural population will have
better access to various services. Optimising Subregional Cooperation

Focus Area D:
Subregional cooperation will be optimised to accelerate economic
development, environmental conservation and cultural exchange. In this
Optimising Opportunities from regard, the cooperation and collaboration among local stakeholders will
be intensified in achieving common objectives and economies of scale.
Subregional Cooperation These collaborative initiatives will overcome barriers and facilitate better
negotiations in attracting investment.
Subregional cooperation, Indonesia-Malaysia-Thailand Growth Triangle
(IMT-GT), Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Focus will be given on developing and enhancing infrastructure
Area (BIMP-EAGA), and Malaysia-Singapore Joint Ministerial Committee within subregions, including transportation networks, electricity grids,
for Iskandar Malaysia (JMCIM) platforms will be leveraged to optimise telecommunication facilities and border check points. Emphasis will also
development opportunities in border areas. Meanwhile, development at be given to streamline trade and investment facilitation and reduce trade
potential border areas will be accelerated by enhancing socioeconomic barriers. In addition, investment in human capital development will be
development as well as security and public safety of the areas. These intensified.
measures will attract quality investment and contribute towards an
inclusive regional development.
Strategy D2:
Accelerating Border Development
Leveraging Cooperation under IMT-GT, BIMP-
Strategy D1
EAGA and JMCIM Enhancing the Potential of Socioeconomic
Development at Border Areas
Measures will be undertaken to accelerate development of areas bordering
Strategy D2 Accelerating Border Development Thailand and Kalimantan, Indonesia. These encompasses the provision of
basic infrastructure, enhancement of security facilities and development of
border towns to optimise cross-border economic activities. In this regard,
Kajian Sempadan Antarabangsa Malaysia-Thailand and Kajian Pembangunan
Ekonomi di Sempadan Sabah as well as existing development master plan
of Sarawak will be the basis for a comprehensive border planning of the
respective border areas.

Enhancing Security and Public Safety

Efforts will continue to be undertaken in enhancing border security
towards creating safe border environment, especially the porous areas
in Sabah and Sarawak. In this regard, more security posts will be set
up, while frequency of patrolling and monitoring will be intensified to
strengthen border controls. Remote sensor site in Sabah will be upgraded,
while new facilities will be developed in Sarawak to address potential
threats. In addition, the Immigration, Custom, Quarantine and Security
complex at selected entry points will be constructed and upgraded to
ensure effective enforcement at the border.
 Mid-Term Review of the Twelfth Malaysia Plan
5-26 Chapter 5: Progressing towards Regional Balance

Focus Area E: Strategy E1:

Intensifying Development in Sabah Enhancing the Provision of Infrastructure
and Sarawak Improving the Provision of Basic Infrastructure
The development in Sabah and Sarawak will continue to be a priority
Road infrastructure development in Sabah and Sarawak will focus
towards achieving balanced regional development. Efforts will be intensified
on connecting major roads to underserved areas. In this regard, new
to uplift the socioeconomic development in both states. Greater focus
alignment and upgrading of existing roads, especially in urban areas will
will be given to enhance the provision of infrastructure, optimising
be implemented, in line with the Highway Network Development Plan
economic potential, improve the wellbeing of the people, and strengthen
Sabah and Sarawak 2040. In addition, construction and upgrading of
the whole-of-government approach. In addition, growth opportunity for
rural roads will be continued to improve connectivity.
Sabah and Sarawak will be based on green economy. These efforts will
promote inclusive development and improve wellbeing of the rakyat in
Rural electrification will be intensified to complement the state electricity
Sabah and Sarawak.
grid system. Alternative systems, such as solar hybrid, solar photovoltaic
and small hydro will be enhanced in remote areas. In addition, supply to
the Sabah grid will be further strengthened through the interconnection
Strategy E1 Enhancing the Provision of Infrastructure with Sarawak grid, scheduled in 2024.

In ensuring water security, the resources capacity will be enhanced

through optimisation of technology to explore alternative sources, such
Strategy E2 Optimising Economic Potential as underground water, lake and rainwater. Meanwhile, efforts to improve
water supply in rural areas will be intensified, including the provision of
alternative resources for a wider coverage. These measures will ensure
adequate water supply and improve coverage of clean and safe water.
Strategy E3 Improving Wellbeing of the Rakyat
The upgrading and development of airports and Short Take-Off and Landing
(STOLports) will be prioritised based on safety, security and convenience
of the air passengers. In this regard, Bario STOLport will be upgraded by
Strategy E4 Strengthening the Whole-of-Government expanding the runway for aircrafts to take-off and land with maximum
Approach passenger load. The expansion of airports and STOLports in Sabah and
Sarawak will ensure safety compliance by the airlines and provision of
sufficient facilities, in line with the National Airports Strategic Plan.

Digital infrastructure will continue to be provided in the remaining locations

in Sabah and Sarawak under JENDELA. The construction of telecommunication
infrastructure will be expedited by prioritising government-owned land
or buildings. Continuous efforts in providing Points of Presence in areas
surrounding schools will be undertaken to improve broadband connectivity.

Strategy E2:
Optimising Economic Potential
Accelerating the Development of Native Customary
Rights Land
Development of the NCR land based on an integrated land development
approach will be further strengthened through cooperation among federal
agencies, state governments and the private sector. In addition, survey
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-27

and mapping exercises of the NCR land will be expedited to facilitate re-establish direct routes and improve international flight connectivity to
state governments in gazetting and granting land titles. These initiatives major airports in Sabah and Sarawak. The aim is to restore routes and
will enable NCR land development and create more income generating seating capacity to the pre-pandemic level. New routes and markets will
opportunities for Anak Negeri Sabah and Bumiputera Sarawak. be continuously established to boost tourist arrivals.

Boosting Aerospace Industry Enhancing Deployment of Renewable Energy

Efforts in promoting sustainable aviation activities in Sarawak will focus on Efforts will be focused to accelerate the energy transition and increase
developing sustainable aviation fuel (SAF) made from algae. Collaboration the share of renewable energy in Sabah and Sarawak. In this regard,
with various parties will be forged to further accelerate SAF development the development of large scale solar, small hydroelectric and bioenergy
and ecosystem integration in Sarawak. This collaboration will charter the will be enhanced, while the deployment of large scale solar and battery
path to develop algae production technology for SAF. Meanwhile, the energy storage system will be implemented in Sabah. Meanwhile, hydrogen
development of aerospace industry in Sabah will continue to focus on plant and large scale hydroelectric for local and export markets will
intensifying maintenance, repair and overhaul activities and enhancing be developed in Sarawak. These efforts will support the aspiration of
skills training at the aerospace centre of excellence. achieving net-zero greenhouse gas emissions as early as 2050.

Promoting High Technology and Sustainable Optimising Natural Gas Resources

Industrial Estate
The natural gas resources will be optimised through the implementation
A more conducive investment ecosystem will be established, which includes of strategies outlined in the Sabah Gas Masterplan and Sarawak Gas
developing new and optimising existing industrial estates to enhance Roadmap. Strategies under the Sabah Gas Masterplan include monetisation
competitiveness and attract investors. Focus will be on opening of new of gas resources to enhance investment in the production of petrochemical
high-tech industrial estates in Kimanis and Kota Belud in Sabah as well as derivatives and support gas demand growth from industrial and commercial
upgrading of the Samajaya High-Tech Park in Kuching, Sarawak towards segments. Meanwhile, the Sarawak Gas Roadmap will emphasise on
attracting high-value investments and adopting sustainable practices. enhancing the growth of petrochemical industry and exploring new
These three industrial estates will be the high impact projects identified
gas fields through collaboration between PETRONAS and Petroleum
to boost economic growth in Sabah and Sarawak.
Sarawak Berhad.

Reinvigorating Economic Activities in Regional Accelerating Green Growth

Economic Corridors
Measures will be undertaken to accelerate the implementation of green
The implementation of SDC Blueprint 2.0 will emphasise on building growth initiatives in Sabah and Sarawak. In this regard, the existing
a more accommodative business ecosystem in facilitating the needs of government green procurement of products and services will be expanded
investors in Sabah. Focus will also be given to intensify the implementation to the construction sector to elevate the green market. Meanwhile,
of main activities identified, namely tourism, agriculture, manufacturing the implementation of carbon capture, utilisation and storage (CCUS)
and logistics services. Meanwhile, efforts will be continued to leverage initiative will be a new source of economic growth and generate high
the abundant natural resources to attract quality investment in the region,
value investment. The implementation will require the formulation of
particularly in energy intensive industries. In broadening the industrial
regulatory framework in governing CCUS holistically and coordinating the
and economic activities in SCORE area, measures will be undertaken to
deployment of CCUS at the state level. Additionally, the development
improve the provision of basic infrastructure and enhance ease of doing
of local industries in green technology, such as in the production of
business. In this regard, the Samalaju Industrial Park will be one of the
hydrogen and bioenergy, will be intensified to support green and low
high impact projects identified to boost economic growth in Sarawak.
This project will focus on heavy and energy intensive industries, such carbon development.
as steel, aluminium, glass as well as oil and gas.
Efforts will also be continued to restore degraded forest and gazette
more protected areas in Sabah and Sarawak. Advanced technology will
Revitalising Tourism Industry be utilised in consolidating data of natural resources to improve the
planning, development, management and conservation of the natural
Coordinated promotional activities will be intensified to attract foreign
ecosystem as well as strengthen the protection of the natural assets.
and domestic tourists to visit Sabah and Sarawak, leveraging the nature,
Furthermore, implementation of sustainable development goals and adoption
culture and heritage diversity. In addition, efforts will be intensified to
 Mid-Term Review of the Twelfth Malaysia Plan
5-28 Chapter 5: Progressing towards Regional Balance

of environmental, social and governance in business practices will be due to heart disease. School dental services will also be expanded to
intensified to promote green and sustainable growth. These efforts will school teachers, staffs and families, in line with the Universal Health
create competitive advantages and further advance the implementation Coverage for Oral Health WHO (WHA74.5). Meanwhile, the development
of green economy initiatives in Sabah and Sarawak. of Makmal Kesihatan Awam dan Makmal Keselamatan & Kualiti Makanan
in Kuching, Sarawak will commence in 2023. A regional blood centre
will also be built in Sabah to enhance transfusion services for the state,
Improving Productivity in Agriculture Sector the Federal Territory of Labuan and the northern region of Sarawak.
Skim Perubatan MADANI will continue to be implemented to enable
Efforts will be continued to promote wider adoption of high-tech farming people with limited financial capability in obtaining services from private
methods in the agriculture sector, such as Big Data Analytics, Artificial healthcare providers. This effort will reduce congestion in public healthcare
Intelligence and Internet of Things. In Sabah and Sarawak, focus on facilities.
smart farming will continue to be given in paddy, aquaculture and palm
oil production. These efforts will enhance productivity in the agriculture
sector and contribute to economic development in both states. Strategy E4:
Strengthening the Whole-of-Government
Strategy E3: Approach
Improving Wellbeing of the Rakyat
Enhancing Collaboration in Providing Digital
Enhancing Access to Education Infrastructure
In enhancing access to education in Sabah and Sarawak, Comprehensive Collaboration between the Federal Government and state authorities
Special Model School 11 (K11) will be established to reduce the number will be further strengthened to streamline policies, procedures and
of dropout students from Form 3 to 4 and to provide access until 11 initiatives on digital infrastructure development. In addition, Jawatankuasa
years of schooling (Standard 1 to Form 5). In addition, more dilapidated Penyeragaman Kos Caj dan Fi Pembangunan Infrastruktur Komunikasi will
schools at scale seven based on the School Building Condition Index further strengthen the mechanism in standardising charges and fees at
will be replaced. Centre for children with special needs will also be state and local authority levels for construction of telecommunication
established in Sabah and Sarawak to ensure children with autism receive infrastructure. These efforts will expedite the provision of digital
early intervention and education. Focus will also be given to develop infrastructure and enhance service delivery.
teaching and learning skills among the teachers through adapting and
understanding local culture in rural and remote areas. Meanwhile, facilities
and infrastructure including digital infrastructure in schools and education Improving Service Delivery
offices will be improved.
The functions of agencies at Federal and state levels will be streamlined
to facilitate development in Sabah and Sarawak. The delegation of
Improving Access to Housing authority to JKR Sabah and Sarawak for projects worth up to RM50
million will better facilitate the implementation of development projects
The Government will continue to intensify initiatives in providing quality in the states. In addition, the transfer of regulatory powers pertaining
and decent houses for poor and low-income households through affordable to the electricity supply in Sabah, commencing in 2024, will enable
housing programmes. A total of 26,000 dilapidated houses will be repaired the Sabah State Government assuming control over the regulation of
and rebuilt under Program Bantuan Rumah to improve living condition of electricity supply. This measure will facilitate better planning in electricity
the poor in Sabah and Sarawak. In addition, state governments will be industry in Sabah.
encouraged to provide more affordable houses to benefit more poor,
low- and middle-income households.
Strengthening the Development Planning of Natural
Expanding Access to Healthcare Services Gas Industry
Care services for older persons in health clinics and hospitals will be The Sabah Gas Masterplan and Sarawak Gas Roadmap will be consolidated
integrated, while the Private Aged Healthcare Facilities and Services Act as part of a national natural gas roadmap. This national roadmap will
2018 will be enforced. In addition, invasive cardiac laboratories in public streamline gas industry planning and optimise the utilisation of natural
hospitals will be developed in phases to reduce morbidity and mortality gas resources nationwide. This will provide a comprehensive strategic
direction of the gas industry in supporting energy transition in Malaysia.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 5: Progressing towards Regional Balance 5-29

Conclusion
During the review period of the Twelfth Plan, various measures were undertaken to optimise
regional economic potential, develop sustainable cities, transform rural areas, and enhance
socioeconomic development of the less developed states, including Sabah and Sarawak.
Even though several targets were achieved, there are issues and challenges that need to
be addressed. In the remaining Twelfth Plan period, efforts will continue to be focused
on enhancing regional economic potential, accelerating sustainable urban development,
intensifying rural development and optimising opportunities from subregional cooperation.
In addition, development in Sabah and Sarawak will be intensified to bridge the gap and
reduce disparities. The implementation of these initiatives will support the aspiration of
‘Ekonomi MADANI: Memperkasa Rakyat’ in enhancing society sustainability and creating a
more balanced development in the urban and rural areas.
Chapter
Building an Inclusive and
More Resilient Society

Introduction 6-2

Progress, 2021-2022 6-3

Performance of Selected Targets 6-3
Achievement by Priority Area 6-5
Priority Area A : Addressing Poverty from a Multidimensional Perspective and 6-5
Empowering B40
Priority Area B : Supporting the M40 6-8
Priority Area C : Achieving an Equitable Outcome for Bumiputera 6-9
Priority Area D : Enhancing Development of Orang Asli Community 6-10
Priority Area E : Empowering Specific Target Groups 6-11

Issues and Challenges 6-13

Persistence of Poverty 6-13
Vulnerability of the B40 6-13
Challenges Faced by the M40 6-13
Multifaceted Inequality 6-13
Inequitable Bumiputera Socioeconomic Outcomes 6-13
Lagging Socioeconomic Development of Orang Asli Community 6-14
Social Deprivations of Specific Target Groups 6-14
Ineffective Delivery Ecosystem 6-14

Way Forward, 2023-2025 6-15

Selected Targets, 2021-2025 6-17
Focus Area A : Addressing and Preventing Poverty 6-19
Focus Area B : Empowering Vulnerable Households 6-26
Focus Area C : Facilitating M40 6-28
Focus Area D : Narrowing Inequality 6-29
Focus Area E : Achieving an Equitable Outcome for Bumiputera 6-30
Focus Area F : Enhancing Development of Orang Asli Community 6-33
Focus Area G : Empowering Specific Target Groups 6-34
Focus Area H : Strengthening Policy and Service Delivery 6-36

Conclusion 6-37
Introduction
Inclusive and sustainable development remain as principles of socioeconomic planning
in Malaysia to improve the wellbeing of the rakyat. During the review period of the
Twelfth Malaysia Plan, 2021-2022 (Twelfth Plan) efforts in addressing poverty from a
multidimensional perspective, inequality and cost of living were intensified to promote
equitable economic participation. These efforts were aimed to uplift income and standard
of living of the poor, B401, M402, Bumiputera, Orang Asli and specific target groups in
building an inclusive society. Nevertheless, adverse effects from the COVID-19 pandemic
and polycrisis3, including geopolitical conflicts and climate change, have exposed households
to greater vulnerability and thus partly hindered the progress of achieving inclusive and
sustainable development.

Moving forward, greater efforts will be undertaken in building an inclusive and more
resilient society. Strategies will continue to focus on addressing poverty and inequality
from multidimensional perspective, raising income and improving wellbeing of the poor,
vulnerable households, M40, Bumiputera, Orang Asli and specific target groups. In addition,
policy and service delivery will be strengthened. Implementation of these measures
upholds the inclusive principle of ‘leaving no one behind’ in line with ‘Ekonomi MADANI:
Memperkasa Rakyat’ and the 2030 Agenda for Sustainable Development (2030 Agenda).

1
Bottom 40% household income group. B40 monthly household income at the national level is below RM5,250 based on the Household Income and Expenditure Survey 2022 (HIES 2022).
2
Middle 40% household income group. M40 monthly household income at the national level is between RM5,250 and RM11,820 (HIES 2022).
3
A cluster of related global risks with compounding effects, such that the overall impact exceeds the sum of each part (World Economic Forum, 2023).
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-3

Progress, 2021-2022
In addressing poverty and building an inclusive society, 18 targets were set in the Plan period. Out of these targets, 15 were on track while the remaining
three were lagging during the review period. The performance of these targets is as shown in Exhibit 6-1.

Exhibit 6-1
Performance of Selected Targets
Addressing Poverty and Narrowing Inequality

0.388 0.404 4.2% 6.2% 15.6% 16.6%

2025 2022 2025 2022 2025 2022

Gini Coefficient Incidence of Absolute Poverty Incidence of Relative Poverty

0.0026 0.0079 0% 0.2%

2025 2022 2025 2022

Multidimensional Poverty Index Incidence of Hardcore Poverty

Increasing Income and Standard of Living of B40

RM4,200 RM3,401 RM4,300 RM3,440 16.7% 16.1% 13.7% 11.7%

2025 2022
2025 2022 2025 2022 2025 2022
Mean Monthly B40 Median Monthly B40 Share of Income of B40 from Share of Skilled Workers out
Household Income Household Income Overall Household Income of Total Head of Households
of B40
 Mid-Term Review of the Twelfth Malaysia Plan
6-4 Chapter 6: Building an Inclusive and More Resilient Society

Achieving an Equitable Outcome for Bumiputera

At least
0.88:1 0.71:1 1:1 0.78:1 65% 61.0%

2025 2022 2025 2021 2025 2022

Median Monthly Household Income Median Monthly Salary and Wages Participation of Bumiputera in Skilled
Ratio Bumiputera to Chinese Ratio Bumiputera to Chinese Occupation Category

At least At least

75% 73.0% 30% 18.4%

2025 2022 2025 2020

Percentage of Bumiputera Bumiputera Corporate Equity

Households Owning a Residential Ownership with Effective Control
Unit

Empowering Specific Target Groups

Not less than

70.8 70.2 59% 55.8% 1% 0.3% 8 7.93

2025 2022 2025 2022 2025 2022 2025 2022

Malaysian Youth Index Female Labour Force Percentage of PWDs in Public Family Wellbeing Index
Participation Rate Service
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-5

Achievement by Priority Area

Priority Area A: Addressing Poverty from a Multidimensional Perspective and

Empowering B40

Strategy A1: Increasing Income of Low-income Households

Uplifting and Diversifying Sources of ● 1,734 participants in urban areas completed entrepreneur programmes under Program
Income Pemerkasaan Ekonomi Komuniti Bandar
● 1,352 participants in rural areas benefitted from Program Peningkatan Pendapatan
● 3,246 participants attended Program Latihan & Keusahawanan
● 3,700 participants attended Kursus Keusahawanan Digital
● 3,652 entrepreneurs received assistance under Program Pembangunan Perniagaan Usahawan
Mikro
● 100,100 entrepreneurs received a total of RM1.65 billion from TEKUN Financing Programme
● Cash Assistance
o Bantuan Prihatin Rakyat - 8.5 million recipients, RM6.5 billion disbursed in 2021
o Bantuan Prihatin Nasional 2.0 - 11 million recipients, RM7 billion disbursed in 2021
o Bantuan Khas COVID-19 - 11 million recipients, RM4.6 billion disbursed in 2021
o Bantuan Keluarga Malaysia - 8.7 million recipients, RM7.8 billion disbursed in 2022
o Assistance under the Department of Social Welfare (JKM) - 519,000 recipients, RM2.4
billion disbursed in 2021 and 530,000 recipients, RM2.4 billion disbursed in 2022

Promoting a Whole-of-Nation Approach in ● Program Pembasmian Miskin Tegar (BMT)

Addressing Poverty o 1,656 recipients
o 103 recipients recorded higher income after four months joining the programme
● Program Usahawan Sosial Hebat
o 6,074 beneficiaries involved in 30 social enterprises (SEs)
 Mid-Term Review of the Twelfth Malaysia Plan
6-6 Chapter 6: Building an Inclusive and More Resilient Society

Strategy A2: Improving Access to Essential Services

Improving Provision for Quality Education ● Biasiswa Kecil Persekutuan

and Skills Training o 124,848 students, RM104.2 million disbursed in 2021
o 179,563 students, RM142.7 million disbursed in 2022
● 4,031 students from B40 households benefitted under Program Bantuan untuk Pendidikan
(BUDI) Maktab Rendah Sains MARA (MRSM)
● 60.2% of MRSM intake offered to students from B40 household in 2022
● 16,594 students from B40 households in 70 sekolah berasrama penuh (SBP) or 36.6% from total
students
● RM4.6 billion new loan approved for 162,463 students by Perbadanan Tabung Pendidikan Tinggi
Nasional
● 56,900 students from B40 families received education loan from Majlis Amanah Rakyat (MARA)
● 35,320 trainees from B40 households received scholarships to undergo training in technical
and vocational education and training (TVET) institutions under Ministry of Rural and Regional
Development

Improving Healthcare Services ● 10 health clinics built and 271 clinics of various types upgraded in 2021
● Seven health clinics and three dental clinics built, and 379 clinics of various types upgraded in
2022
● 4,895 outreach programmes on health implemented in underserved areas in 2021 and 7,770 in
2022
● 268,887 heads of household (KIR) of hardcore poor and poor registered in eKasih system
covered by Skim Insurans Kesejahteraan Rakyat
● 101,673 participants underwent health screening under Skim Peduli Kesihatan untuk Kumpulan
B40 (PeKa B40) in 2021 and 275,560 participants in 2022

Strategy A3: Uplifting Standard of Living

Improving Basic Amenities and

● 7,492 households benefitted from Projek Rintis Pengurusan Sisa Pepejal
Infrastructure

Upgrading Living Conditions ● Projek Baik Pulih Rumah di Bandar

o 1,579 houses repaired in 2021
o 2,044 houses repaired in 2022
● Projek Perumahan Rakyat Termiskin in rural areas
o 23,270 houses repaired
o 3,644 houses built
● 108,373 units of Rumah Mampu Milik built
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-7

Elevating Standard of Living of Low-Income ● RM2.1 million loan disbursed to 36 entrepreneurs under Skim Pinjaman Khas Penduduk
Chinese Households Kampung Baru Cina (PKBC)
● 761 houses refurbished under Program Bantuan Baik Pulih Rumah in Kampung Baru
● 787 public amenity projects completed in Kampung Baru

Elevating Standard of Living of Low-Income ● 164,059 individuals benefitted from 72 human capital development programmes
Indian Households ● 3,468 entrepreneurs received RM72.2 million from Skim Pinjaman Usahawan Masyarakat India
under TEKUN

Strategy A4: Strengthening Service Delivery Mechanism

Enhancing the Service Delivery System ● Poverty Units established at federal, state and local authority levels
● Social assistance data involving 167 programmes and 13.7 million profiles consolidated into
the Pangkalan Data Perlindungan Sosial (PDPS)

Improving Poverty Measurement and Policy ● A study to improve the national Multidimensional Poverty Index (MPI) commissioned in 2022
Implementation ● A study on measuring and addressing poverty commissioned in 2022
● A framework to review household income group category developed in 2022

Strategy A5: Addressing Cost of Living

Managing Pressure on Prices ● RM11.1 billion spent on subsidies for petrol, diesel and LPG in 2021 and RM50.8 billion in
2022
● RM1.8 billion spent on subsidies on price of chicken and eggs
● RM9.8 billion spent on subsidies for electricity
● RM4.6 billion spent on subsidies for cooking oil
● Price control of selected items during festive seasons
● RM400 million spent on Community Drumming programme
● 5.7 million consumers benefitted from program jualan murah in 2022
● 1.65 million number of price enforcement inspections as at end 2022
● 1,910 cases recorded involving misappropriation of subsidised and price-controlled items
valued at RM26.1 million
● The Financial Education Network (FEN) Strategic Plan on financial literacy developed in 2021
● 273,274 first-time home buyers accessed Rumahku, an online home financing module to make
informed decision as at end 2022

Strengthening Social Protection for All ● A study to strengthen social protection policy commissioned in 2022
● Skim Keselamatan Sosial Suri Rumah introduced in 2022
 Mid-Term Review of the Twelfth Malaysia Plan
6-8 Chapter 6: Building an Inclusive and More Resilient Society

Priority Area B: Supporting the M40

Strategy B1: Boosting Income of the M40

Incentivising Participation of M40 in ● 1% reduction in tax rate for taxable income range between RM50,000 to RM70,000 starting
Income Generating Activities 2021
● Income tax relief
o Expanded to include approved course fees for upskilling and self-enhancement limited up
to RM1,000
o Limit for fees upskilling and self-enhancement course increased from RM1,000 to RM2,000
in 2022

Strategy B2: Improving Access to Quality and Affordable Education

Incentivizing Early Childhood Care and ● Extension of income tax relief

Education, and Financing for Higher o Up to RM3,000 on fees paid to approved childcare centres and kindergarten in 2022
Education o Up to RM8,000 on net annual savings in Skim Simpanan Pendidikan Nasional

Strategy B3: Encouraging Health and Employment Protection

Promoting Health and Employment ● RM500 additional lifestyle tax relief of related to sports activity in 2022
Insurance ● Up to RM7,000 expansion of income tax relief for Employees Provident Fund (EPF)
contributors starting with 2022 assessment in order to include voluntary contributors from the
private sector and civil servants under pension scheme

Strategy B4: Increasing M40 Housing Ownership

Facilitating Ownership of Affordable ● Limit on value of first time residential property purchase eligible for full stamp duty exemption
Homes on instrument of transfer and loan agreement is increased up to RM500,000 for sales and
purchase agreement completed until 2025
● Inisiatif Pembiayaan Perumahan Malaysia
o 48,449 first-time house buyers benefitted from Skim Rumah Pertamaku with amount of
financing of RM12 billion
o 6,726 first-time house buyers with no fixed income benefitted from Skim Jaminan Kredit
Perumahan with amount of financing of RM1.3 billion
● 16,334 units of affordable housing for M40 built under PR1MA, Residensi Wilayah and
Kediaman SPNB
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-9

Priority Area C: Achieving an Equitable Outcome for Bumiputera

Strategy C1: Improving Governance

Improving Governance of Bumiputera ● Unit Pemerkasaan Agenda Bumiputera (UPAB) established in all ministries in 2022
Institutions and Mandated Agencies ● Kajian Impak Agensi-Agensi Bermandat Bumiputera completed in 2022

Enhancing Transparency of Ownership ● The Companies Act 2016 and Limited Liability Partnership Act 2012 reviewed on disclosure of
beneficial ownerships

Strategy C2: Strengthening Education and Empowering Human Capital

Increasing Bumiputera Participation in ● 20,901 participants enrolled in Peneraju Tunas, Peneraju Skil and Peneraju Professional
Certified Professional Programmes programmes under Yayasan Peneraju Pendidikan Bumiputera (YPPB)

Improving the Quality of Skills Programmes ● Employability rate of TVET graduates under MARA institutions in 2022
o German-Malaysia Institute: 98%
o Universiti Kuala Lumpur: 97%
o Institut Kemahiran MARA: 93%
o Kolej Kemahiran Tinggi MARA: 91%
o GIATMARA: 81%

Increasing Access to Education ● Two new MRSMs with a total of 1,500 student-capacity commenced operation in 2022

Strategy C3: Increasing Wealth Creation and Resilience of Bumiputera Businesses

Enhancing Bumiputera Micro, Small and ● RM294.6 million equity investment by VentureTECH in 27 Bumiputera companies involved in
Medium Enterprises (MSMEs) Participation green, emerging and biotechnology industries as at end 2022
in the Strategic High Impact and Emerging ● Agreement between Agrobank and Unit Peneraju Agenda Bumiputera (TERAJU) on
Economic Sectors environmental, social and governance fund for Bumiputera SMEs signed in 2022

Enhancing Capacity and Capability of ● 2,219 entrepreneurs benefitted from Program Pensijilan Usahawan MARA
Bumiputera Entrepreneurs ● Four new commercial premises under UDA Holdings built with cost of RM19 million
● 1,392 entrepreneurs benefitted from initiatives under UDA Holdings with cost of RM3.26
million
● 9,539 companies and 13,500 entrepreneurs benefitted from Program Premis Perniagaan and
Program Pembiayaan Keusahawanan under PUNB as at end 2022
● Rent-to-Own (RTO) scheme under PUNB introduced in 2022
 Mid-Term Review of the Twelfth Malaysia Plan
6-10 Chapter 6: Building an Inclusive and More Resilient Society

Priority Area D: Enhancing Development of Orang Asli Community

Strategy D1: Strengthening Education

Improving Education of Orang Asli ● Eight schools upgraded to Comprehensive Special Model School 9 (K9) in 2022
● 10,996 secondary school students received cash assistance under Skim Bantuan Galakan
Pendidikan in 2022
● 1,446 students at tertiary level received scholarships
● 1,385 participants attended Program Masuk U
● 780 participants enrolled in TVET institutions

Strategy D2: Accelerating Socioeconomic Development of Orang Asli

Formulating Comprehensive Socioeconomic

● A study on the Orang Asli socioeconomic development commissioned in 2022
Development Plan for Orang Asli

Increasing Income of Orang Asli ● 450 households from 12 Orang Asli villages participated in hardcore poverty eradication
programme
● 934 participants benefitted from Bantuan Input Pertanian
● 599 participants benefitted from Projek Ladang Masyarakat Orang Asli
● 104 entrepreneurs received Geran Bantuan Usahawan amounting to RM668,000
● 77 Orang Asli trained under Program Latihan Keusahawanan

Expanding Basic Infrastructure, Amenities ● 56 villages connected with new roads

and Services for Orang Asli ● 125 clean water supply projects completed
● 20 villages benefitted from electricity supply projects
● 81 new houses built and 558 repaired

Improving Leadership ● 375 participants benefitted from Program Literasi Fungsian Orang Asli
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-11

Priority Area E: Empowering Specific Target Groups

Strategy E1: Advancing Children Wellbeing

Strengthening Governance for Children ● 3,113 childcare centres registered as at end 2022
Development and Protection ● 3,013 children benefitted from childcare centre subsidies
● 1,427 children benefitted from 37 registered institutions for children as at end 2022

Strategy E2: Building Dynamic, Resilient and Competitive Youth

Strengthening Youth Development and ● 83,269 participated in leadership and volunteerism programmes
Participation ● 496,770 benefitted from programmes under FEN
● 2,649,691 participated in healthy and active lifestyle programmes
● 13,047 participated in entrepreneurship programmes

Strategy E3: Empowering Women

Promoting Gender Equality ● Women participation in top-level management

o 38.2% in the public sector
o 25.8% in the private sector
● 540,438 women entrepreneurs benefitted from RM4.9 million financing under Amanah Ikhtiar
Malaysia, TEKUN Nasional and MARA

Enhancing Legal Protection ● Anti-Sexual Harassment Act 2022 [ Act 840 ] gazetted in 2022
● 131,048 women benefitted from Klinik Literasi Undang-Undang

Strategy E4: Increasing the Wellbeing of Aged Population

Enhancing Care and Support for Older ● 283 caregivers for older persons obtained Malaysian Skills Certification
Persons ● 245,415 older persons benefitted from lifelong learning programmes at health clinics
● 53,241 older persons benefitted from programmes at Pusat Aktiviti Warga Emas
● 6,950 older persons benefitted from the Home Help Service programme

Strengthening Social Protection ● Bantuan Warga Emas

o 140,447 benefitted from cash assistance
o The amount raised from RM350 to RM500 monthly in 2022
● 6,924 participants benefitted from intergeneration programmes as at end 2022
 Mid-Term Review of the Twelfth Malaysia Plan
6-12 Chapter 6: Building an Inclusive and More Resilient Society

Strategy E5: Empowering Persons with Disabilities

Ensuring Inclusiveness of Persons with ● 633,653 persons with disabilities (PWDs) registered as at end 2022
Disabilities ● Exemption of licence fee for motor vehicles owned by PWDs since 2022
● Bantuan Penjagaan OKU Terlantar/ Pesakit Kronik Terlantar
o 26,904 caregivers benefitted from cash assistance
o The amount raised from RM350 to RM500 monthly

Strategy E6: Strengthening the Family Institution

Building Strong Family Institution ● 176,940 participants benefitted from programmes on parenting skills, family values, marriage
education and psychosocial aspects
● 716,140 individuals benefitted from reproductive and social health programmes and services
such as saringan kesejahteraan, pap smear and mammogram
● The Employment (Amendment) Act 2022 [ Act A1651 ] incorporated amendments
o Maternity leave increased from 60 to 98 days
o Paternity leave increased from three to seven days
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-13

Issues and Challenges

During the review period, with various efforts undertaken to address poverty and build an inclusive society, several progress were recorded. However,
issues related to persistence of poverty, multifaceted inequality and vulnerabilities in the B40 as well as challenges faced by the M40 continue to exist.
Furthermore, inequitable Bumiputera socioeconomic outcomes, lagging development of Orang Asli community, social deprivation of specific target groups
and ineffective delivery ecosystem remain a challenge.

Persistence of Poverty Vulnerability of the B40

I II
● Prevalence of multidimensional poverty ● Lack of income protection
● High dependency on cash transfer ● Lack of employment opportunities
● Low participation in insurance schemes ● Limited access to affordable housing
● Lack of sustainable and scalable poverty eradication ● Rising cost of living
programme ● Challenges of households in Kampung Baru
o Underutilisation of microcredit facility
Challenges Faced by the M40 III
o Ineffectiveness of Jawatankuasa Pembangunan dan
● Slow income growth amidst rising cost of living Keselamatan Kampung and Majlis Pengurusan Komuniti
● Constraints for upward social mobility Kampung

● Lack of access to affordable housing ● Challenges of low-income Indian households

o Lack of capacity and capability
Inequitable Bumiputera Socioeconomic V o Persistence of social issues
Outcomes
Multifaceted Inequality
● Declining savings among Bumiputera IV
● Disparity between household income groups exists
● Low competitiveness among enterprises
● Inequalities of opportunities and outcomes as well as
● Lack of capacity and capability to scale up businesses
intergenerational mobility persist
● Slow wealth creation
● Incomprehensive social protection
o Diminishing size of Malay Reserve Land
● Low financial literacy
o Untapped potential of waqf
● Low Bumiputera participation in skilled jobs
● Slow growth of Bumiputera equity ownership
● Weak implementation and coordination
o Overlapping programmes
o Ineffectiveness in implementing sectoral policy
 Mid-Term Review of the Twelfth Malaysia Plan
6-14 Chapter 6: Building an Inclusive and More Resilient Society

Lagging Socioeconomic Development of Orang

VI
Asli Community
Social Deprivations of Specific Target Groups
VII ● High poverty incidence
● Insufficient interventions in child development and
● Ineffective governance
protection
● Low education and skill levels
● Emerging challenges in managing ageing society
● Lack of socioeconomic opportunities
● Persistent challenges in developing youth
o High bankruptcy Ineffective Delivery Ecosystem
o Inadequate democratic literacy VIII
● Ineffective targeting mechanism based on income group
● Lack of support towards the needs of PWDs
classification
● Lack of support system for women to fully participate in
● Ineffective implementation and monitoring mechanism
the labour market
with unclear exit policy
● Increasing trend of family-related issues
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-15

Way Forward, 2023-2025

The Mid-Term Review of the Twelfth Plan focused on building an inclusive and more resilient society through multidimensional perspective to achieve a
just society or “masyarakat Malaysia yang adil” 4. In the remaining Twelfth Plan period, integrated efforts will be undertaken in addressing and preventing
poverty, empowering vulnerable households and facilitating M40 on needs basis. Focus will also be given to achieve an equitable outcome for Bumiputera,
enhance development of Orang Asli community and empower specific target groups. In addition, measures to narrow inequality and strengthen service
delivery will be emphasised.

Focus Area A Focus Area C

Addressing and Preventing Poverty Facilitating M40

Strategy A1: Strategy C1:

Increasing Income of the Poor Enhancing Income Generation
Strategy A2: Strategy C2:
Improving Standard of Living and Access to Essential Services Improving Health and Employment Protection, and Access to
Housing

Focus Area B
Empowering Vulnerable Households Focus Area D
Narrowing Inequality
Strategy B1:
Enlarging Economic Opportunities and Protection Strategy D1:
Strategy B2: Improving Access to Opportunities
Improving Access to Basic Services Strategy D2:
Strategy B3: Strengthening Social Protection
Elevating Socioeconomic Status of Low-Income Chinese and
Indian Households

4
Book excerpt from Membangun Negara MADANI: Visi dan Kerangka Dasar Reformasi (2022)
 Mid-Term Review of the Twelfth Malaysia Plan
6-16 Chapter 6: Building an Inclusive and More Resilient Society

Focus Area E
Focus Area G
Achieving an Equitable Outcome for
Empowering Specific Target Groups
Bumiputera
Strategy E1: Strategy G1:
Strengthening Service Delivery Advancing Wellbeing of Children
Strategy E2: Strategy G2:
Scaling Up Bumiputera Businesses Building Dynamic, Resilient and Competitive Youth
Strategy E3: Strategy G3:
Increasing Bumiputera Wealth Creation Empowering Women
Strategy E4: Strategy G4:
Empowering Human Capital and Enhancing Financial Literacy Increasing the Wellbeing of Aged Population
Strategy E5: Strategy G5:
Ensuring Sustainable Corporate Equity Ownership Empowering Persons with Disabilities
Strategy G6:
Strengthening the Family Institution

Focus Area F
Enhancing Development of Orang Asli
Community Focus Area H
Strengthening Policy and Service
Strategy F1:
Accelerating Socioeconomic Development
Delivery
Strategy F2: Strategy H1:
Strengthening Education as a Catalyst for Development Enhancing Socioeconomic Policy
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-17

Selected Targets, 2021-2025

Addressing and Preventing Poverty

Incidence of Hardcore Incidence of Absolute

0% Poverty 15.6% Poverty

2025 2025

Incidence of Relative Multidimensional Poverty

15.6% Poverty 0.0026 Index

2025 2025

Empowering B40 and Narrowing Inequality

Share of Income of B40

Mean Monthly B40 Median Monthly B40
RM4,200
Household Income
RM4,300
Household Income 16.7 % from Overall Household
Income

2025 2025 2025

Share of Skilled Workers

13.7 % out of Total Heads of 0.388 Gini Coefficient
Household of B40

2025 2025
 Mid-Term Review of the Twelfth Malaysia Plan
6-18 Chapter 6: Building an Inclusive and More Resilient Society

Achieving an Equitable Outcome for Bumiputera

Median Monthly Median Monthly Salary At least Participation of

0.88:1 Household Income Ratio 1:1 and Wages Ratio
65%
Bumiputera in Skilled
Bumiputera to Chinese Bumiputera to Chinese Occupation Category

2025 2025 2025

Percentage of
At least At least Bumiputera Corporate
Bumiputera Households
Equity Ownership with
75% Owning a Residential 30% Effective Control
Unit

2025 2025

Empowering Specific Target Groups

Female Labour Force

70.8 Malaysian Youth Index 59% Participation Rate

2025 2025

Percentage of PWDs in Not less than

1% Public Service 8
Family Wellbeing Index

2025 2025
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-19

Focus Area A:
Addressing and Preventing Poverty
Measures to address poverty will not only focus on reduction but also
on prevention aspect. Multidimensional perspective will continue to be
emphasised in tackling various deprivations. In this regard, strategies consist
of increasing income as well as improving standard of living and access to
essential services for urban and rural poor will be undertaken. Analysis
on Poverty Line Income (PLI) and absolute poverty before and after the
COVID-19 pandemic is shown in Box 6-1.

Strategy A1 Increasing Income of the Poor

Improving Standard of Living and Access to

Strategy A2
Essential Services
 Mid-Term Review of the Twelfth Malaysia Plan
6-20 Chapter 6: Building an Inclusive and More Resilient Society

Box 6-1 household appliances. A household is categorised as absolute poor if the

income is below the overall PLI. Meanwhile, a household is hardcore poor
Poverty Line Income and Absolute if the income is less than food PLI. The value of the overall PLI depends
Poverty: Pre- and Post-COVID-19 on caloric needs, household demography (size, age and gender), location,
price of goods and services, and the availability and options of products
Background by different needs. Thus, the average PLI varies between states and strata
(urban and rural).
Poverty eradication has been emphasised in Malaysia’s socioeconomic
development. This strategy has been embedded in all policies and The PLI value is updated twice in five years through the Household Income
development plans since the New Economic Policy, 1971-1990. The Twelfth and Expenditure Survey (HIES). Meanwhile, the PLI methodology will be
Malaysia Plan, 2021-2025 continues to focus on addressing poverty and reviewed taking into account changes in consumption pattern, current
strengthening inclusivity in line with the principle of leaving no one behind. calorie requirements and cost of basic needs.

Malaysia measures poverty based on absolute, relative and multidimensional PLI and Poverty Trends: Pre- and Post-COVID-19
methods. Absolute poverty is measured based on cost of basic needs.
Pandemic
Meanwhile, relative poverty refers to household income in proportion to
national median monthly household income. Multidimensional poverty takes HIES 2022 was conducted from January to December 2022, involving about
into account income and non-monetary dimensions, including education, 90,000 samples of 7.9 million Malaysian households from the 2020 Census.
health and standard of living in measuring deprivations. Based on HIES 2022, the overall PLI post-COVID-19 pandemic at national
level was RM2,589 in 2022, which is 5.3% higher than RM2,208 recorded
Absolute Poverty in 2019, pre-COVID-19 pandemic. Seven states registered higher PLI than
the national average, with the Federal Territory (FT) of Kuala Lumpur as the
Absolute poverty is a condition where household income is insufficient to highest at RM2,816 (2019: RM2,216).
cover for the cost of basic needs by using the Poverty Line Income (PLI)
measurement. The PLI refers to the total monthly household income needed Meanwhile, food PLI showed a marginal increase to RM1,198 in 2022 from
for food and non-food requirements by every household member to live a RM1,169 in 2019. Eight states recorded food PLI higher than the national
healthy and active life. Two components of PLI are food PLI and non-food average, with Terengganu being the highest at RM1,376 (2019: RM1,312).
PLI. Food PLI is based on optimum food requirements and healthy eating As for non-food PLI, five states surpassed the national average, with the
for the amount of nutrition needed for each member of the household. FT of Kuala Lumpur registered highest non-food PLI at RM1,707 (2019:
Meanwhile, non-food PLI is based on spending pattern of the bottom 20 RM1,107). The overall values of PLI by state for 2019 and 2022 are shown
percent household income group (B20) on 146 non-food items, including in Figure 1.
clothing, transport, communication, education, health, housing, utilities and
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-21

Figure 1
PLI by State, 2019 and 2022
PLI 2019 (RM) PLI 2022 (RM)
2,208 1,038 1,169 Malaysia Malaysia 1,198 1,392 2,589

2,633 1,314 1,319 FT of Labuan Selangor 1,274 1,556 2,830

2,537 1,358 1,179 Sabah FT of Kuala Lumpur 1,109 1,707 2,816

2,507 1,195 1,312 Terengganu Terengganu 1,367 1,383 2,751

2,505 1,240 1,265 Johor Sabah 1,218 1,524 2,742

2,375 1,097 1,279 Melaka Melaka 1,244 1,426 2,670

2,270 1,069 1,201 Pahang Johor 1,161 1,465 2,627

2,254 1,040 1,214 Kedah Sarawak 1,298 1,320 2,618
2,216 1,107 1,110 FT of Kuala Lumpur FT of Labuan 1,268 1,308 2,576
2,139 959 1,181 Kelantan Pahang 1,204 1,276 2,480
2,131 1,035 1,096 Sarawak FT of Putrajaya 1,206 1,244 2,450
2,128 1,054 1,074 FT of Putrajaya Negeri Sembilan 1,173 1,230 2,402
2,088 872 1,216 Negeri Sembilan Kelantan 1,084 1,213 2,297
2,077 975 1,102 Perak Perak 1,196 1,101 2,297
2,022 856 1,166 Selangor Kedah 1,156 1,115 2,271
1,989 985 1,004 Pulau Pinang Pulau Pinang 1,036 1,213 2,250
1,967 833 1,133 Perlis Perlis 1,139 1,001 2,140

Food PLI Non-Food PLI Total PLI

Note: Total PLI value may differ due to rounding.

Source: Department of Statistics Malaysia

Malaysia managed to reduce incidence of absolute poverty from 49.3% in 1970 to 0.4% in 2016, as shown in Figure 2. The PLI in 2016 was RM980 by using
2005 methodology. The PLI methodology was revised in 2019 to better reflect current socioeconomic needs in tandem with level of development, which
resulted in a higher PLI of RM2,208. The incidence of absolute poverty decreased from 7.6% in 2016 to 5.6% in 2019 by using the PLI 2019 methodology.
This decreasing trend indicated a sustained effort in poverty alleviation.
 Mid-Term Review of the Twelfth Malaysia Plan
6-22 Chapter 6: Building an Inclusive and More Resilient Society

Figure 2
Time Series of PLI and Incidence of Absolute Poverty, 1970–2022
Percent, % Methodology 2019 Average PLI
Year
Methodology 2005 (RM)
19772 252
50.0 49.3
19893 390
1999 650
37.7 2009 800
40.0 37.4 2016 980
2016 2,141
2019 2,208
30.0
2022 2,589
20.7
19.4
20.0
16.5

10.0 8.7 8.4

7.6 6.2
5.7 5.6

0.4
0.0
1970 1976 1979 1984 1987 1989 1992 1995 1997 1999 2002 2004 2007 2009 2012 2014 2016 2019 20201 2022

Notes: 1 Household Income Estimates and Incidence of Poverty, 2020.

2
PLI 1977 for Peninsula Malaysia.
3
PLI 1989 onwards at national level.
Source: Department of Statistics Malaysia

The COVID-19 pandemic and the Movement Control Orders (MCOs) In terms of location, incidence of absolute poverty in urban areas increased
reversed the poverty reduction trend in Malaysia. In general, the COVID-19 from 3.8% in 2019 to 4.5% in 2022, while in rural areas decreased from
pandemic and MCOs as well as other socioeconomic challenges have 12.4% to 12.1% during the same period. Meanwhile, incidence of hardcore
affected income, thus elevated incidence of poverty and exacerbated the poverty showed a downward trend for both urban and rural areas. Although
overall state of deprivations. The incidence of absolute poverty increased incidence of poverty in the urban areas is lower than that of rural, the
from 5.6% in 2019 to 8.4% in 20205. However, the trend normalised with number of urban poor is larger as 75.5% of households resided in urban
the incidence decreased to 6.2% in 2022. Similarly, incidence of hardcore areas in 2022.
poverty that increased from 0.4% in 2019 to 1% in 2020, decreased below
the pre-pandemic level to 0.2% in 2022. The average monthly household All states indicated an increase in incidence of absolute poverty except the
income declined from RM7,901 in 2019 to RM7,089 in 2020 and recorded FT of Putrajaya between 2019 and 2020. Meanwhile, all states excluding
an increase to RM8,479 in 2022, which is higher than the pre-pandemic the FT of Kuala Lumpur recorded a decrease in incidence of absolute
level. The decrease in incidence of poverty and increase in income were poverty between 2020 and 2022. High poverty incidences persist in the
due to the reopening and recovery of the economic and social sectors. less developed states, particularly Sabah at 19.7% in 2022 (2019: 19.5%),
Kelantan at 13.2% (2019: 12.4%) and Sarawak at 9.0% (2019: 10.8%).

5
 ased on the Household Income Estimates and Incidence of Poverty Report
B
2020 published by the Department of Statistics Malaysia.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-23

Strategy A1:
The FT of Kuala Lumpur recorded significant increase in incidence of Increasing Income of the Poor
absolute poverty from 0.2% in 2019 to 0.4% in 2020, and to 1.4% in
2022, in contrast with the poverty incidence trend. Further analysis Uplifting, Diversifying and Protecting Income
indicates that this was partly contributed by the rising prices of items
in the non-food PLI for FT of Kuala Lumpur, from RM1,107 in 2019 Income generating programmes undertaken by various agencies that help
to RM1,707 in 2022. This implies the resurgent of pockets of poverty the poor become economically independent will be further enhanced. The
in urban areas. Inisiatif Pendapatan Rakyat (IPR) programme, which commenced in 2023,
will be intensified to complement existing poverty eradication programmes
Conclusion and initiatives. These programmes will enable the poor to diversify sources
of income on sustainable basis, thus safeguarding this group from falling
Malaysia’s efforts in poverty eradication and inclusive development back into poverty trap. In protecting income of poor households, affordable
have shown remarkable progress. However, the COVID-19 pandemic insurance or takaful schemes will be introduced. Greater focus will be given
brought about unprecedented challenges, leading to an increase in on districts with the highest incidence of poverty, as shown in Exhibit 6-2.
poverty rates in 2020. Poverty rates began to decrease in 2022 following
economic recovery post-COVID-19 pandemic, supported by the various
poverty eradication programmes and projects. Moving forward, it is
important to sustain and address existing disparities in ensuring the
wellbeing of the rakyat is continuously improved. The development of
Pangkalan Data Utama (PADU) will facilitate the Government’s efforts
in eradicating poverty evidence-based interventions.
 Mid-Term Review of the Twelfth Malaysia Plan
6-24 Chapter 6: Building an Inclusive and More Resilient Society

Exhibit 6-2
Distribution of Poverty Incidence by Districts, 2022

State Border
District Border
% Incidence of Poverty
by District
0-9
10 - 19
20 - 29
30 - 39
0 65 130 260 390 520
40 - 49 Kilometers
50 - 53

Source: Department of Statistics Malaysia

Improving Effectiveness in Addressing Poverty Registration, validation and monitoring of IPR programme will be done through
online platform, in line with the digitalisation initiative of the Government.
Implementation of poverty eradication programmes will be strengthened This effort will promote transparency and expand the outreach to the
through a whole-of-nation approach involving the public and private sectors, applicants. In addition, this will minimise inclusion and exclusion errors as
academia, civil society organisations (CSOs), community-based organisations well as facilitate better monitoring and evaluation processes. Summary of
(CBOs) and local communities. Community leaders will be empowered and Inisiatif Pendapatan Rakyat is shown in Box 6-2.
given proper exposure to spearhead relevant in-site economic activities.
This approach will optimise utilisation of resources across all stakeholders
in eradicating hardcore poverty. Cash transfer programmes will be reviewed
based on fiscal position of the Government and streamlined to improve
effectiveness.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-25

Box 6-2
INTAN
Inisiatif Pendapatan Rakyat
INTAN focuses on producing strategic crops, such as chilli and grain
Background corn in reducing dependency on imports. Under this programme,
assistance will be provided in the form of agricultural inputs and
Inisiatif Pendapatan Rakyat (IPR) was announced by the Prime Minister to modern equipment, training and technical advisory services as well
eradicate hardcore poverty during the 2023 Budget Speech in the Dewan as pre-harvest allowance. This programme will be implemented
Rakyat on 24 February 2023. The Minister of Economy, on 26 February 2023 throughout the country through cooperation and collaboration
subsequently launched the first IPR programme. The implementation of IPR between various parties including ministries, agencies, state
focuses on efforts to eradicate hardcore poverty and narrow inequality in governments and the private sector.
line with the Twelfth Malaysia Plan, 2021-2025, Malaysia MADANI and
Agenda 2030.

IKHSAN
Objectives of IPR
IPR with a two-pronged strategy aims to increase income of the target IKHSAN aims to create job opportunities with a decent salary
groups and address structural issues including rising cost of living as well as especially those involved in the 3D (dirty, dangerous and difficult)
overdependence on food imports and foreign labours. The implementation jobs, which currently employs many foreign workers. This programme
of this initiative is based on the whole-of-nation approach that involves aims to reduce overdependence on service providers that employ
collaboration among the Federal, state and local governments, and strategic foreign workers. The Government will support part of the salary for
partners including the private sector, government-linked companies (GLCs), a period of two years.
CSOs and CBOs.

The IPR Implementation Inisiatif BMT

IPR currently consists of three programmes namely, Inisiatif Usahawan
Inisiatif BMT is a targeted programme to eradicate hardcore poverty
Makanan (INSAN), Inisiatif Usahawan Tani (INTAN) and Inisiatif Operator
nationwide, mostly focused on individual approach. It aims to help
Perkhidmatan (IKHSAN). In addition, Inisiatif Pembasmian Miskin Tegar (Inisiatif
hardcore poor to generate additional income through agricultural
BMT) has been rebranded and integrated under IPR. These initiatives
and entrepreneurial activities. Assistance given by the Government
are designed to address common issues faced by the rakyat such as high
includes training, equipment and technical advice as well as marketing
food prices, food supply disruption, unemployment and limited marketing
support by relevant agencies.
platforms.

Application for participation in IPR is open to all Malaysians that meet the
INSAN
requirements. Application can be made via the website: www.ipr.ekonomi.
gov.my. As at 14 August 2023, a total of 106,491 inviduals have registered
INSAN aims to promote entrepreneurship in providing quality ready- as applicants. Eligibility of the participants is vetted by crosschecking
to-eat food at affordable prices. This involves providing platform to with related databases such as Bank Data Kemiskinan Nasional (eKasih),
participants to market their food products using vending machines Sistem Informasi Data Maklumat Masyarakat Orang Asli (iDamak) and Sistem
at strategic locations. Under this programme, the Government will Sumbangan Tunai Rahmah (MySTR).
provide assistance in the form of machine rental payments for a
period of two years.
 Mid-Term Review of the Twelfth Malaysia Plan
6-26 Chapter 6: Building an Inclusive and More Resilient Society

Strategy A2: Focus Area B:

Improving Standard of Living and Access Empowering Vulnerable Households
to Essential Services Several strategies will be implemented to empower the vulnerable households,
particularly among the B40. Focus will be given to enlarge economic
Enhancing Access to Quality Education and Skills opportunities and protection, and improve access to basic services. Efforts
Training will also be undertaken to elevate socioeconomic status of low-income
Chinese and Indian households.
Subsidised early childhood care and education (ECCE) will be expanded to
offer more affordable and high-quality childcare services. Assistance for
digital learning will continue to be provided to students from low-income
families. Targeted interventions, such as tuitions, scholarships and cash Enlarging Economic Opportunities and
assistance, will be continued to reduce dropouts among students from Strategy B1
Protection
poor households.

TVET and skill-based programmes will be promoted through job matching

Strategy B2 Improving Access to Basic Services
in collaboration with private sector to increase the take-up rate among
members of poor households. In addition, the first eligible child to further
study in higher education institutions (HEIs) from the poor households will be
Elevating Socioeconomic Status of Low-Income
offered scholarships. This initiative aims to promote upward social mobility Strategy B3
Chinese and Indian Households
by enhancing knowledge and skills of the members of poor households.

Improving Health Outcome

Strategy B1:
Skim Perubatan MADANI will be implemented to enable poor households
to have better access to healthcare, including from private healthcare Enlarging Economic Opportunities and
providers. Program Pemulihan Kanak-Kanak Kekurangan Zat Makanan will Protection
be further improved to ensure better health outcome for children. In
addition, community sports will be promoted for healthy lifestyle among Enhancing Capacity and Capability
poor households. Prevention and early management on diseases, especially
non-communicable diseases, will be enhanced to address a health issue that Capacity and capability of the B40 will continue to be strengthened using
is prevalent among the poor. tailor-made and community-based programmes. Members of B40 will be
further supported to pursue higher education and skills training, including
Uplifting Living Conditions and Basic Amenities micro credential programmes, in enhancing employability and entrepreneurial
ability. The B40 will also be encouraged to leverage latest technology such
Provision of housing assistance programme will continue to be implemented as in automation, online marketing and digital business platforms. These
on need-basis to build, refurbish and repair dilapidated houses in order initiatives will increase and diversify sources of income of the B40.
to improve living conditions of the poor, particularly among the hardcore
poor households. Basic utilities and communication services such as clean Encouraging Entrepreneurship
water, electricity and internet connectivity will be enhanced, particularly
in remote areas. Low-income households will continue to benefit from SEs will be leveraged to create sustainable community-based businesses, and
subsidised utilities. employment and income opportunities for B40, while solving social issues
and optimising local resources. In addition, inclusive business approach will
be further promoted to enable B40 to participate in business value chain.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-27

The B40 communities will also be encouraged to be involved in income Addressing Housing Needs
generating activities through cooperatives.
Existing housing programmes will continue to be implemented with priority
The B40 will also benefit from the entrepreneurship opportunities under to low-income households. The RTO housing programme will be enhanced
the IPR programme. Furthermore, the B40 will continue to be encouraged to provide better access to home ownership financing. Meanwhile, a
to participate in gig economy with high value-added activities, such as new rental tenancy regulation will be introduced to promote rental as an
digital content development, knowledge-based and creative services, as an alternative to home ownership.
additional source of income. In addition, access to financing will be better
facilitated in encouraging entrepreneurship among the B40.
Strategy B3
Reducing Income Vulnerabilities Elevating Socioeconomic Status of Low-
The B40 are urged to participate in voluntary employment insurance scheme
Income Chinese and Indian Households
under Social Security Organization (SOCSO) and voluntary retirement
contributions under EPF to reduce vulnerabilities during economic shocks.
Elevating Standard of Living of Low-Income
Financial education among B40 will be strengthened to encourage responsible Chinese Households
spending and prioritising saving. In this regard, financial awareness
programmes will be intensified to prevent B40 from becoming financial Access to business financing facilities under PKBC will be improved by
scam victims. In addition, B40 will be encouraged to subscribe to life and simplifying procedures and providing new loan scheme ranging from
health insurance policies. RM50,001 to RM150,000. The improvement will provide more financing
modality for business expansion and income generation. An impact
assessment on the financing facilities will be conducted to measure the
Addressing Rising Cost of Living outcome of the PKBC. Commercial activities will be promoted to create
business opportunities for youth.
The National Action Council on Cost of Living will intensify efforts in
addressing rising cost of living that affects purchasing power and wellbeing
A study will be conducted to assess the current condition and needs of
of the rakyat. In this regard, targeted subsidies will be enhanced and an index
low-income Chinese households in Kampung Baru nationwide. The outcome
to measure cost of living by localities will be developed. Payung Rahmah and
of the study will facilitate in improving socioeconomic planning for this
Jualan Terus dari Ladang initiatives that offer affordable goods and services
community. The roles and functions of village councils and committees will
for consumers will be expanded to more localities.
be strengthened to facilitate more effective implementation of programmes
in Kampung Baru. Meanwhile, public amenities and services will be enhanced
Strategy B2: to improve the standard of living for the residents including the elderly.
Improving Access to Basic Services Additionally, Kampung Baru with tourism potential will be transformed and
promoted as tourist destinations through collaboration with private sector,
CBOs and other relevant stakeholders.
Enhancing Access to Healthcare Services
The PeKa B40 initiative, which provides financial assistance for healthcare Elevating Standard of Living of Low-Income
services and medical equipment will be further promoted. Meanwhile, the Indian Households
potential of waqf and cooperatives will be optimised to support healthcare
needs of B40. These include provision of health clinics, dialysis centres and The implementation of the Malaysian Indian Blueprint and Pelan Tindakan
ambulance services. Masyarakat India will be continued to enhance the wellbeing of low-income
Indian households. Efforts will be directed towards improving access to
quality education, including TVET and science, technology, engineering and
mathematics (STEM) programmes as well as addressing the issues of low
educational attainment and high dropout rates in this community. Targeted
 Mid-Term Review of the Twelfth Malaysia Plan
6-28 Chapter 6: Building an Inclusive and More Resilient Society

upskilling programme will be offered to increase employability of low-income

Indians. Entrepreneurship opportunities will also be enhanced through
Strategy C2
microcredit facilities. Programmes to empower women as well as address Improving Health and Employment
dysfunctional families and social issues among youth will be improved. Protection, and Access to Housing
Focus Area C Promoting Participation in Health and
Facilitating M40 Employment Insurance
The M40 will be further encouraged to subscribe health insurance, meanwhile
Concerted efforts will be intensified in improving the wellbeing of M40.
those in informal employment are urged to contribute to employment
Focus will be given on enhancing income generation as well as improving
insurance and voluntary retirement contribution. In this regard, awareness
health and employment protection, and access to housing. These measures
programme on benefits of the insurance protection will be enhanced.
will contribute towards building an inclusive and more resilient society.
Furthermore, existing income tax reliefs on health and life insurance will
be reviewed.

Strategy C1 Enhancing Income Generation

Improving Health and Employment Protection,

Strategy C2
and Access to Housing

Strategy C1:
Enhancing Income Generation
Boosting Income
In raising the income, emphasis will be given to promote continuous
education and learning as well as upskilling and reskilling among the M40
households. Participation in entrepreneurial and sharing economy activities
using digital platforms and income generating investment portfolios will Providing Affordable Housing
be further promoted. In addition, the private sector will be encouraged to
improve the wage and non-wage benefits of employees such as healthcare More engagement will be undertaken with state governments and private
coverage, flexible work arrangement and childcare facilities to increase sector to provide quality affordable housing in strategic locations, particularly
disposable income of the M40. Meanwhile, fiscal measures to increase in urban conurbation and transit-oriented development areas. The RTO
disposable income will also be explored. housing programme will be strengthened to enhance access to housing
by facilitating affordable monthly instalments. This will enhance liveability
and wellbeing of the M40.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-29

Focus Area D: Improving Fiscal Measures

Narrowing Inequality
Progressive tax policy that ensures wealthier individuals and corporations
Addressing inequality requires a comprehensive understanding of the current contribute proportionately more to society will be explored in line with
nature of inequality and a holistic approach to narrow disparities. In this international best practices. In addition, efficient redistribution of resources
regard, improving access to various opportunities and strengthening social will reduce income disparities and provide resources for social programmes.
protection will be emphasised. These strategies will contribute to address In this regard, progressive approach in implementing targeted subsidy will
inequality of outcome to promote social cohesion and justice for all. be adopted.

Promoting Financial Inclusion

Strategy D1 Improving Access to Opportunities Provision of suitable, affordable and quality financial services to all segments
of society will be expanded to increase financial inclusion. Financial literacy
will be enhanced among children and youth to inculcate good financial
behaviour. Education programmes on investment and financial products
Strategy D2 Strengthening Social Protection
will be intensified to promote savings and prudent financial management.

Strategy D2:
Strategy D1: Strengthening Social Protection
Improving Access to Opportunities
Formulating Policy on Social Protection
Enhancing Access to Opportunities for All The national social protection system will be strengthened to provide targeted
protections throughout the life cycle as one of the initiatives under the Big
Basic infrastructure and services will be improved towards providing equal
Bold Reforming Social Protection. In this regard, a collaborative study with
access to opportunities necessary for intra- and intergenerational upward
UNDP that is being undertaken aims to strengthen social protection policy
socioeconomic mobility. Basic infrastructure such as electricity, water and
for inclusive development and growth. This study will guide in developing a
telecommunication will be made more accessible across socioeconomic
coherent and inclusive national social protection policy as well as enhance
groups and geographical locations. Meanwhile, education and skills will
architecture of PDPS. Additionally, capacity-building programmes will be
be enhanced to increase capacity and capability. Affordable and quality
conducted to strengthen technical and institutional capacity of the relevant
healthcare will be promoted through life cycle approach.
social protection providers.

Adopting Inclusive Economic Policy Enhancing the Malaysia Social Protection Council
Inclusive policy will continue to be a key pillar in socioeconomic development
The role of Malaysia Social Protection Council (MySPC) will be strengthened
including by promoting investment in underserved areas and supporting
by harmonising and intensifying various programmes under the thrusts
MSMEs and entrepreneurship activities. In addition, policies on fair and
of social assistance, social insurance and labour market intervention. In
meaningful wages as well as rights of workers will be instituted. Furthermore,
addition, the social assistance programmes will be enhanced by improving
investment in human capital will be enhanced to prepare for future jobs
service delivery and administration, ensuring data accuracy and eligible
and challenges.
beneficiaries as well as enabling access to real time data. Mapping exercise
 Mid-Term Review of the Twelfth Malaysia Plan
6-30 Chapter 6: Building an Inclusive and More Resilient Society

for social insurance and labour market intervention will be undertaken

subsequent to that of social assistance. The completion of the mapping
Strategy E1:
exercise will ensure PDPS serves as a single gateway and main reference Strengthening Service Delivery
for social protection programmes. The PDPS will be integrated with PADU
to provide interoperable single data reference. Strengthening the Role of Bumiputera Mandated
Agencies and Unit Pemerkasaan Agenda
Focus Area E: Bumiputera
Achieving an Equitable Outcome for The realignment of Bumiputera mandated agencies strategies based on their
Bumiputera original roles and functions will ensure more effectiveness of service delivery.
A shared key performance indicator (KPIs) for Bumiputera mandated agencies
The Bumiputera agenda will remain as a national agenda for attaining will be established for this purpose. Roles and functions of TERAJU will be
fair, equitable and inclusive socioeconomic growth. Strategies include reviewed as the lead coordinating agency for Bumiputera agenda. The role
strengthening service delivery, scaling up Bumiputera businesses and of UPAB in ministries will be strengthened to improve the effectiveness of
increasing Bumiputera wealth creation will be implemented. Efforts will sector regulators towards increasing Bumiputera participation in the economy.
also be undertaken in empowering human capital and enhancing financial
literacy as well as ensuring sustainable corporate equity ownership. Enhancing Governance of Bumiputera Mandated
Agency
The integrity and governance of Bumiputera mandated agencies will be
Strategy E1 Strengthening Service Delivery further strengthened through a collaborative initiative with Institut Integriti
Malaysia (IIM). This initiative will leverage on existing training, advocacy
and consultation programmes under IIM. These programmes will assist
Bumiputera mandated agencies to obtain International Organization for
Strategy E2 Scaling Up Bumiputera Businesses
Standardization (ISO) certifications, thus establishing credibility and gaining
trust among stakeholders.

Strategy E3 Increasing Bumiputera Wealth Creation Strategy E2:

Scaling Up Bumiputera Businesses
Empowering Human Capital and Enhancing
Strategy E4
Financial Literacy
Enhancing Competitiveness of Bumiputera
Enterprises
Ensuring Sustainable Corporate Equity In enhancing participation and competitiveness of Bumiputera enterprises,
Strategy E5
Ownership implementation of the carve-out and compete policy for development
projects will be intensified. Meanwhile, an exit policy will be implemented
to facilitate transition of existing entrepreneurs to the next level, while
providing opportunity to new entrepreneurs. Relevant training such as
bookkeeping, business proposal writing, and cash flow management will
be made mandatory for entrepreneurs applying for government funding.
This training will improve skillsets of the entrepreneurs and promote proper
financial management.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-31

Bumiputera entrepreneurs will also be encouraged to leverage digital to the mandates of ministries and agencies. The roles of HEIs will be
platforms and fintech for business advancement. Retail champions will be strengthened in raising awareness among Bumiputera graduates from
facilitated to occupy premises and operate in prime commercial areas to being job seekers to job creators. In addition, HEIs will be encouraged
promote Bumiputera presence in these areas. Bumiputera cooperatives to increase the collaboration with related agencies to facilitate business
and chambers of commerce will be empowered to upscale Bumiputera continuity post-graduation.
businesses, thus enabling participation along the supply chain.

Strategy E3:
Penetrating Global Market
Increasing Bumiputera Wealth Creation
In facilitating penetration into the global market, Bumiputera entrepreneurs
will be assisted in complying with international standards, including through Reviewing Existing Policies on Malay Reserve Land
certifications. Measures will also be undertaken to increase participation in
trade promotions as well as identify new markets for Bumiputera products The existing policies on revocation and substitution of Malay Reserve Land
and services. Furthermore, Bumiputera businesses will be encouraged will be reviewed to ensure the valuation process reciprocates with the
to leverage free trade agreements (FTAs) through collaboration between initial land characteristics. In addition, caveats or restrictions in interest
Bumiputera mandated agencies and selected multinational corporations. on land title will be imposed on Malay Reserve Land owned by Bumiputera
A study will be conducted to assess the socioeconomic impact of FTAs on mandated agencies. Furthermore, the mechanism to monitor direct and
Bumiputera and recommend policy interventions. indirect transfers of Malay Reserve Land to a non-Malay interest will be
improved. These measures will ensure the existing Malay Reserve Land

Strengthening Roles of Ministries and Agencies are safeguarded.

in Promoting Entrepreneurship
Optimising the Potential of Waqf
Ministry of Entrepreneur and Cooperatives Development (MECD) will be
Potential of waqf will be optimised as one of the initiatives under the
tasked as a single coordinator for entrepreneurship programmes across
Big Bold Empowering MSMEs and SEs. Efforts will also be intensified to
ministries and agencies. All entrepreneurship programmes will be realigned
undertake commercial development on potential waqf land through strategic
partnership among state Islamic authorities, Bumiputera mandated agencies
 Mid-Term Review of the Twelfth Malaysia Plan
6-32 Chapter 6: Building an Inclusive and More Resilient Society

and the private sector. In addition, corporate waqf entities will acquire and
rent out commercial properties to Muslim Bumiputera enterprises in prime
Strategy E4:
areas to generate income and increase presence of Bumiputera enterprises Empowering Human Capital and
in these areas. Measures will also be undertaken to increase cash waqf
Enhancing Financial Literacy
under Yayasan Wakaf Malaysia to finance more socioeconomic projects.

Enhancing Employability of Huffaz, PWDs and

Improving Information on Unsold Properties for Juveniles
Bumiputera
Participation of Bumiputera among huffaz, PWDs and juveniles in skilled
Information on unsold properties for Bumiputera will be made available jobs will be increased by expanding reskilling and upskilling programmes.
on Unsold Property Inquiry System Malaysia, an online platform under the In this regard, TVET programmes will be leveraged to provide relevant skills
National Property Information Centre. This initiative will provide information set to enhance employability. In addition, implementation of nurturing and
to wider potential Bumiputera buyers. Furthermore, the implementation development programmes will be intensified in developing necessary soft
and monitoring of existing Bumiputera housing quota at state level will be skills.
reviewed to improve and facilitate home ownership.

Promoting Financial Awareness

Facilitating the Ownership of Commercial
Properties Financial education programme will be conducted to enhance financial
literacy among children from low-income Bumiputera households. Financial
The RTO programme will be widened with involvement of more Bumiputera awareness programme will also be focused on low-income Bumiputera
mandated agencies to increase Bumiputera ownership of commercial households. This is to encourage sufficient savings for retirement, especially
properties. In addition, collaboration among related agencies will be enhanced through voluntary contributions in EPF.
to undertake commercial property development in selected locations. A
study will be conducted by Pelaburan Hartanah Berhad to explore potential
investment in commercial properties in six less developed states.
Strategy E5:
Ensuring Sustainable Corporate Equity
Ownership
Accelerating Growth of Equity Ownership
High potential Bumiputera mid-market companies will be encouraged to
leverage on Dana Asas amounting to RM100 million with a cap from RM10
million to RM30 million under Ekuiti Nasional Berhad to accelerate growth.
Starting 2023, the maximum limit for ASB investment is increased from
RM200,000 to RM300,000 to increase Bumiputera equity ownership.
Awareness programmes on equity investment opportunity will be expanded
to accelerate growth of Bumiputera equity ownership. Meanwhile, the
Bumiputera Special Shares Programme will be reviewed to improve the
effectiveness of this programme.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-33

Focus Area F:
Enhancing Development of Orang
Asli Community
Efforts will be intensified towards enhancing the wellbeing of the Orang Asli
community. In this regard, strategies to be undertaken include accelerating
socioeconomic development and strengthening education as a catalyst for
development. These efforts are envisaged to further advance development
of Orang Asli community.

Expanding Basic Infrastructure, Services and

Strategy F1 Accelerating Socioeconomic Development
Amenities
Efforts will be strengthened to improve the livelihood of Orang Asli by
Strengthening Education as a Catalyst for enhancing basic infrastructure, services, and amenities. The provision of clean
Strategy F2
Development water, electricity and telecommunication will be expanded and upgraded
while housing and healthcare services will be improved. State governments
will be encouraged to facilitate the provision of infrastructure for Orang Asli.

Strategy F1:
Strategy F2:
Accelerating Socioeconomic Development
Strengthening Education as a Catalyst for
Formulating Socioeconomic Development Plan Development
A study to formulate a comprehensive development plan to uplift the Improving Education of Orang Asli
socioeconomic status of Orang Asli will be completed in 2025. The study
will propose recommendations on strengthening governance and policies, Measures will be intensified to improve access to ECCE, which will enable
formulating action plans and setting KPIs. This development plan will serve children of Orang Asli community to acquire essential skills of reading,
as a reference in charting the socioeconomic development of Orang Asli. writing and counting (3M). Additionally, innovative teaching and suitable
learning methods will be adopted to improve student attendance and
Increasing Income learning outcomes. The Jom Belajar programme will be realigned to cater for
students to improve literacy. Meanwhile, more K9 schools will be upgraded
Orang Asli will be encouraged to participate in commercial crops plantation to K11 to provide 11 years of schooling for students in remote areas. This
such as oil palm, rubber and cocoa through replanting and expansion of effort will allow more Orang Asli students to pursue tertiary education,
existing smallholdings to increase income. In addition, Orang Asli will be thus securing better employment opportunities.
facilitated to commercialise traditional handicrafts, forest produce and bee
farming as additional sources of income. Microfinancing facilities and skills The Bringing School to Community programme will be introduced through
training will be enhanced to enable Orang Asli to venture into business collaboration involving the Government, universities, and CSOs. Kelas
Komuniti programme will be continued to ensure the adults are able to
master the basic 3M skills. The ongoing educational programmes will be
improved by expanding access to TVET and tertiary education.
 Mid-Term Review of the Twelfth Malaysia Plan
6-34 Chapter 6: Building an Inclusive and More Resilient Society

Focus Area G: Strategy G1:

Empowering Specific Target Groups Advancing Wellbeing of Children
Various initiatives will be undertaken to fulfil the needs of specific target Improving Governance for Child Development
groups in building a better inclusive society. Priority will be given in and Protection
advancing wellbeing of children, building dynamic, resilient and competitive
youth, and empowering women. Efforts will be intensified to increase the The National Child Policy will be revised to develop a more comprehensive
wellbeing of aged population, empower PWDs as well as strengthen the policy, meanwhile an action plan will be formulated to ensure child
family institution. survival, protection, development and participation. A child development
department will be established to provide comprehensive support services
to children. Special pathway for children from post-JKM institutions will
be explored to ensure better education opportunities and careers through
Strategy G1 Advancing Wellbeing of Children strategic collaboration involving the private sector and financial institutions.
Measures to address stunting will be intensified by expanding the nutritional
programme to ECCE centres. The child protection and moral officers will be
Building Dynamic, Resilient and Competitive strengthened in terms of role and number to ensure the safety and wellbeing
Strategy G2 of abused and neglected children. In addition, a dedicated team will be
Youth
formed to eradicate child pornography and apprehend the perpetrators
through collaboration with various agencies.

Strategy G3 Empowering Women

Strategy G2:
Building Dynamic, Resilient and
Strategy G4 Increasing the Wellbeing of Aged Population Competitive Youth
Strengthening Youth Development and
Strategy G5 Empowering Persons with Disabilities Participation
A national plan on youth economic empowerment with the focus on enhancing
youth employability will be launched in the remaining Twelfth Plan period.
Strategy G6 Strengthening the Family Institution A study to identify the profile of youth in the not in employment, education
or training (NEET) category will be conducted to mainstream this group
back into the society. More programmes under the new phase of Rakan
Muda initiatives will be organised in collaboration with various stakeholders
to develop and unlock youth potential. Meanwhile, more programmes
will be undertaken to enhance awareness on democratic literacy among
youth. Development and sharing of granular data on youth participation
in government programmes and initiatives will be made compulsory for all
ministries and agencies to enable more accurate reporting, analysis and
formulation of policy on youth development.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 6: Building an Inclusive and More Resilient Society 6-35

Strategy G3:
Empowering Women
Strengthening Governance for Women
Empowerment
Gender focal teams led by Gender Focal Point will be formed in all ministries as
an effort to mainstream gender into policy development and implementation.
Advocacy programmes will be intensified and a tribunal will be established
under the Anti-Sexual Harassment Act 2022 [ Act 840 ]. Meanwhile, the
potential of the care industry for children, PWDs and older persons will be
explored to improve the quality care required in a family. This effort will
encourage more participation of women in the labour market with the aim
to achieve the target of 60% participation rate within the next 10 years.

Strategy G4:
Increasing the Wellbeing of Aged
Population
Strengthening Care and Support for Older Persons will be expanded, particularly in rural areas to improve access to information
on assistance and services for PWDs. In addition, the information on PWDs
A legislation to ensure the rights and protection of older persons will jobseekers will be integrated in the MyFutureJobs portal, while standard
be introduced. The geriatric development programmes and services will operating procedures (SOP) of recruitment in the public services will be
be intensified to meet the rising needs of older persons. Training for improved to enhance employment opportunities.
caregivers will be enhanced and the profession of social service workers
will be recognised. A study will be undertaken to develop a blueprint on
Strategy G6:
ageing society as preparation for Malaysia to be an aged nation. Meanwhile,
availability of existing public facilities, particularly in rural areas will be Strengthening the Family Institution
explored as a centre to conduct activities for older person in promoting
active and productive life. Building Strong Family Institution
The National Family Policy and relevant action plan will be revised in
Strategy G5: ensuring family perspective in socioeconomic development continue to be
Empowering Persons with Disabilities enhanced in building strong family institution. Existing pre-marital courses
will be restructured to emphasise on the roles, responsibilities and rights of
Supporting the Needs of Persons with husbands and wives as well as the reality of marriage and family life. Post-
marital courses organised by government agencies and CSOs will be improved.
Disabilities
Meanwhile, access to reproductive health services will be expanded and the
The Persons with Disabilities Act 2008 [ Act 685 ] will be amended to implementation of reproductive health and social education programmes
strengthen empowerment and increase protection of the rights of the will be intensified. The national family planning programme will be reviewed
PWDs. Public advocacy on the importance of registering the PWDs will be to strengthen quality family life. Family programmes will be intensified to
intensified to enable the PWDs to get services that match their needs and inculcate noble values and aligned with core values of Malaysia MADANI.
aid the Government in policy planning for the PWDs. Outreach programmes
 Mid-Term Review of the Twelfth Malaysia Plan
6-36 Chapter 6: Building an Inclusive and More Resilient Society

Focus Area H: Establishing Single Data Reference

Strengthening Policy and Service PADU, a new single database will integrate all databases including PDPS,

Delivery eKasih and Sumbangan Tunai Rahmah. PADU will be used for big data analytics
and evidence-based policy decision. PADU will also be used as the main
Policy and service delivery will be strengthened for holistic planning and reference for socioeconomic assistance that include poverty alleviation and
implementation towards building an inclusive and more resilient society. targeted subsidy programmes.
Strategies on enhancing socioeconomic policy as well as integrating data
for evidence-based service delivery will be undertaken. These strategies will
contribute to better policy formulation and targeted assistance to improve
the wellbeing of the rakyat.

Strategy H1 Enhancing Socioeconomic Policy

Strategy H1:
Enhancing Socioeconomic Policy
Improving Policy and Measurement of
Socioeconomic Outcomes
Policy and measurement of socioeconomic outcomes will be improved to
better guide the planning and implementation of socioeconomic programmes
for the rakyat. An overarching policy on addressing poverty at the national
level will be formulated to promote policy coherence and coordination
among ministries and agencies. In addition, the dimensions and indicators
in measuring household deprivation in the MPI will be improved. Household
income category will be reviewed for more accurate targeted assistance.

A study is being conducted to develop a comprehensive framework in

understanding the overall extent, evolution and drivers of inequality in
Malaysia. A range of inequality measurement apart from Gini coefficient
will be explored. These measurements will not only focus on disparities of
monetary outcome but also on broader aspects of economy and opportunities.
Recommendations from this study will be used as policy formulation guidance
to monitor and address inequality.
Conclusion
During the review period of the Twelfth Plan, various efforts were undertaken to achieve
more equitable development outcomes and improve the overall wellbeing of the rakyat,
in line with the inclusive development principle of leaving no one behind. Key strategies
implemented include addressing multidimensional poverty and inequality, enhancing
purchasing power and improving standard of living. Nonetheless, issues and challenges
remain, partly aggravated by the polycrisis. In the remaining period of the Twelfth Plan,
efforts will be intensified to address the issues and challenges in building an inclusive
and more resilient society. In this regard, strategies will be geared towards improving
multidimensional wellbeing of the poor, vulnerable households, Bumiputera, Orang Asli
and specific target groups. These measures are in tandem with the aspiration to elevate
quality of life for the rakyat.
Chapter
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-1

Enhancing Unity, Defence,

Security and Wellbeing

Introduction 7-2

Progress, 2021-2022 7-3

Performance of Selected Targets 7-3
Achievement by Priority Area 7-6
Priority Area A : Strengthening Unity for a Prosperous Nation 7-6
Priority Area B : Ensuring National Security and Sovereignty 7-7
Priority Area C : Enhancing Healthcare Service Delivery 7-8
Priority Area D : Increasing the Supply of Quality Affordable Houses 7-9
Priority Area E : Leveraging Sports in Building an Active Nation 7-10

Issues and Challenges 7-12

Continued Incidences of Disunity 7-12
Evolving Threats to Security and Public Safety 7-12
Wider Disparities in Healthcare 7-12
Lack of Quality and Affordable Houses 7-12
Untapped Sports Potential 7-12

Way Forward, 2023-2025 7-13

Selected Targets, 2021-2025 7-14
Focus Area A : Strengthening Unity for a Prosperous Nation 7-15
Focus Area B : Ensuring National Security and Sovereignty 7-16
Focus Area C : Enhancing Healthcare Service Delivery 7-17
Focus Area D: Increasing the Supply of Quality and Affordable Housing 7-18
Focus Area E : Leveraging Sports in Building an Active Society 7-20

Conclusion 7-23
 Mid-Term Review of the Twelfth Malaysia Plan
7-2 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Introduction
Enhancing unity, defence, security and wellbeing are paramount in pursuing inclusive
socioeconomic development. During the review period of the Twelfth Malaysia Plan,
2021-2025 (Twelfth Plan), persistent efforts were undertaken in strengthening national
unity, upholding the country’s stability through stronger defence and security, improving
healthcare, providing affordable housing and promoting active lifestyle. Despite various
measures being implemented, several issues related to unity, security and public safety,
healthcare, affordable housing and sports potential have hampered further progress in
enhancing wellbeing.

In the remaining Twelfth Plan period, efforts will be further intensified in strengthening
unity, ensuring national security and sovereignty, enhancing healthcare, increasing affordable
housing and leveraging sports for socioeconomic development. The implementation of these
strategies will contribute towards building a sustainable and prosperous Malaysia where
inclusiveness and equality is embraced by the whole nation and ultimately elevate quality
of life for the rakyat. This is in line with the aspiration of 'Ekonomi MADANI: Memperkasa
Rakyat' and the 2030 Agenda for Sustainable Development (2030 Agenda).
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-3

Progress, 2021-2022
A total of 12 targets were set to enhance the unity, national defence, security, and wellbeing of the rakyat. Three of these targets were achieved, seven
targets are on track, while the remaining two still lagging. The performance of these targets is as shown in Exhibit 7-1.

Exhibit 7-1
Performance of Selected Targets
Strengthening National Unity

Unity
0.7 0.63 Policy
Completed

2025 2022 2025 2021

National Unity Index Formulation of a Unity Policy

Ensuring National Security and Sovereignty

10 18 238 147 10 13
cases cases minutes minutes

2025 2022 2025 2022 2025 2022

Ranking in the Global Peace Index Index Crime Cases per 100,000 Police Response Time
Population
 Mid-Term Review of the Twelfth Malaysia Plan
7-4 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Enhancing Healthcare Service Delivery

114.1 108.4 1:400 1:420 2.06 2.07

2025 2021 2025 2021 2025 2022

Health Index in Malaysian Wellbeing Doctor to Hospital Beds
Index (MyWI) Population Ratio per 1,000 Population

In In
2% progressa 6.3% progressa

2025 2022 2025 2022

Reduction in Risk Reduction in Prevalence
of Premature Mortality of Smoking

Note: a Latest data will be available once the National Health and Morbidity Survey is conducted in 2023.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-5

Increasing the Supply of Quality Affordable Houses

500,000 108,373

2025 2021 - 2022

Number of Affordable Houses
Constructed

Leveraging Sports in Building an Active Nation

63.3 52.0

2025 2022
Malaysian Sports Culture Index
 Mid-Term Review of the Twelfth Malaysia Plan
7-6 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Achievement by Priority Area

Priority Area A: Strengthening Unity for a Prosperous Nation

Strategy A1: Embracing Diversity as an Asset

Promoting Social Interaction ● 1,134 unity-related programmes implemented

● 31,865 participants involved in 13,645 programmes under Pelan Kepimpinan Komuniti Rukun
Tetangga

Capitalising Educational Platforms ● 761 students attended ethnic language courses at the higher education institutions (HEIs)
● 960 Tabika Perpaduan adopted the Teaching Multilingual Communication syllabus

Strategy A2: Building a More Tolerant Society

Strengthening Patriotism and ● 68.4% of Rukun Tetangga appointed youth as committee members
Volunteerism ● 388 programmes related to religious and cultural festivals organised by the Malaysian
diplomatic missions

Strategy A3: Strengthening Governance

Formulating Policy on Unity ● The National Unity Policy launched in 2021

Strengthening Stakeholders Collaboration ● 2,792 teams of Bomba Komuniti established nationwide as at end 2022
● 460 community mediators appointed
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-7

Priority Area B: Ensuring National Security and Sovereignty

Strategy B1: Safeguarding National Sovereignty

Managing Threats from Illegal Immigrants ● 26,477 persons arrested

and Activities at the Border ● Assets worth RM1.09 billion seized
● 4,314 illegal immigrants detained during joint operations
● Six new Malaysian Armed Forces (ATM) security posts constructed at Sabah and Sarawak
international borders

Enhancing the Defence Capacity and ● 20 defence diplomacy collaborations established at the end of 2022
Capability ● Four Littoral Mission Ship, three maritime operation helicopters and six Fast Interceptor Craft
operationalised

Strategy B2: Intensifying Efforts in Crime Prevention, Rehabilitation and Emergency Preparedness as well as Enhancing
the Welfare of Personnel

Improving Crime Prevention Measures ● 3,066 support programmes conducted

● 2,393 media releases published

Combatting Drug Abuse and Trafficking ● 12,134 Anti-Drug Squad members in 108 districts participated in the Anti-Drug Squad
Programmes
● 2,213 company representatives registered under Program Tempat Kerja Bebas Dadah
● 90 operations against drug abuse and trafficking carried out

Curbing Trafficking in Persons ● The amendment of the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007
[ Act 670 ] enforced in 2022

Enhancing Management and Operation of ● 20,043 inmates underwent the Community Rehabilitation Programme
Prisons ● 1,750 inmates offered jobs upon release

Improving Emergency Preparedness ● 728,635 civil defence volunteers recruited

Enhancing the Welfare of ATM ● 1,081 units of Rumah Keluarga ATM and one polyclinic constructed
and Enforcement Personnel

and Enforcement Personnel and Enforcement Personnel

 Mid-Term Review of the Twelfth Malaysia Plan
7-8 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Strategy B3: Strengthening Security Governance

Strengthening the Role and Function of ● NSC empowered as the lead agency in security management at all levels of government
National Security Council (NSC) through the implementation of the National Security Policy, 2021-2025

Improving Legislation on Public Safety ● The Offenders Compulsory Attendance (Amendment) Act 2022 [ Act A1660 ] enforced in 2022
and Security

Improving Coordination and Collaboration ● The Single Border Agency (SBA) Nucleus team formed in 2021

Enhancing Data Sharing and System ● The Offender Management Information System version 2 (SMPPv2) operationalised in 2022
Integration

Priority Area C: Enhancing Healthcare Service Delivery

Strategy C1: Redesigning the Healthcare Service

Introducing Healthcare Policy ● 57 policies and guidelines related to health services introduced

Combatting Communicable Diseases ● The National Vaccine Development Roadmap launched in 2021
● Vaccination against COVID-19 for the population
o 86.1% for Dose 1
o 84.3% for Dose 2

Combatting Non-communicable Diseases ● 12 states implemented Human Papillomavirus tests while remaining two states will commence
(NCDs) in 2023
● The Sugar Sweetened Beverage tax imposed in 2021
● 90.7% participants of Program Komuniti Sihat Pembina Negara underwent health screening in
2022

Strengthening Healthcare Programmes for ● 236 Klinik Desa provided health services for the elderly in 2022
Older Persons

Increasing Preparedness in ● More than 85% of medication supply for the treatment of COVID-19 delivered within 30 days
Handling Health Crises ● Standard operating procedures (SOPs) and preparedness plan in handling various health
hazards at the international airports enforced since 2021
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-9

Ensuring Quality and Accessibility of ● 14 specialist dental services in hospital and dental specialist clinics in operation as at end 2022
Healthcare Services ● 216 medical and dental contract officers underwent Program Latihan Kepakaran in 2022
● 21% of the Orang Asli and Penan communities received oral healthcare services in 2022
● Two buses for mobile tuberculosis x-ray screening provided, each to Sabah and Sarawak in
2022

Strategy C2: Strengthening Public Awareness

Enhancing Health Literacy and Awareness ● 69,009 participants enrolled in Wellness Hub programme in 2022
● 4,382 volunteers trained as health agents in 2022

Strategy C3: Leveraging Technology

Digitalising Healthcare Services ● 541 food and beverage products listed under the Healthier Choice Logo portal
● Health Information Exchange for Electronic Medical Record pilot project commenced operation
at 11 healthcare facilities in Kuala Pilah, Negeri Sembilan in 2022

Improving Research, Development and ● External Quality Assurance (EQA) Malaria Microscopy and EQA Mycobacteriology programmes
Innovation Capacity implemented
● 46 research collaborations between local companies and universities established in 2022

Priority Area D: Increasing the Supply of Quality Affordable Houses

Strategy D1: Improving Access to Affordable Housing

Increasing Access to House Financing ● 22,196 poor and low-income households benefitted from the Rent-to-Own (RTO) housing
programme
● 16,808 households benefitted from Skim Jaminan Kredit Perumahan with loan value of RM2.32
billion
● 158,928 unit houses with a total value of RM101.37 billion sold under the Home Ownership
Campaign

Managing Housing Construction Costs ● Four Industrialised Building System (IBS) standard design concepts comprising 43 types of
affordable house designs developed
● Eight Program Perumahan Rakyat comprising 2,807 unit houses using IBS completed
 Mid-Term Review of the Twelfth Malaysia Plan
7-10 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Strategy D2: Enhancing Governance

Strengthening Institutional Capability in ● Big data analytics (BDA) framework on housing completed in 2022
Building Affordable Houses ● The Housing Integrated Management System completed in 2022

Strategy D3: Ensuring Inclusive Housing

Adopting Best Practices in Enhancing ● 65 projects under Program Penyenggaraan Perumahan for low- and medium-cost public housing
Liveability completed
● 94 projects under Tabung Penyelenggaraan Perumahan Malaysia for low- and medium-cost
private housing completed

Priority Area E: Leveraging Sports in Building an Active Nation

Strategy E1: Promoting Sports for Active and Healthy Living

Enhancing Accessibility to Sports Facilities ● 15 new sports facilities constructed

● 282 sports facilities upgraded

Strengthening Community-Based Sports ● 9,434,914 people participated in 9,413 grassroots sports enculturation programmes organised
Bodies by community-based sport bodies

Promoting Inclusive Participation in Sports ● 7,352,594 people participated in National Sports Day
● 405,770 women, person with disabilities, senior citizens and Orang Asli participated in sport
programmes organised for these groups, respectively

Strategy E2: Enhancing Sports Excellence

Strengthening Governance of High ● The National Sports Vision 2030 launched in 2021
Performance Sports

Enhancing Athletes Performance ● Achievement of national athletes in major tournaments

o One silver and one bronze medals in the 2020 Tokyo Olympic Games
o Three gold and two silver medals in the 2020 Tokyo Paralympic Games
o Seven gold, eight silver and eight bronze medals in the 2022 Birmingham
Commonwealth Games
● 55 Malaysian athletes in various sports achieved top six in the world ranking as at end 2022
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-11

Improving Support Services for Sports ● 22 researches on enhancing the capacity of sports science and medical services commenced in
2021

Strategy E3: Developing Sports Industry

Improving Sports Industry Ecosystem ● RM13.7 million investment realised in Ekspo Industri Sukan Kuala Lumpur 2022 involving 131
exhibitors and 20,000 visitors
● RM16.6 million out of RM20 million allocation under Skim Pembiayaan Industri Sukan approved
for 410 enterprises affected by COVID-19 pandemic
● RM230 million investment in sports products and equipment involving 70 projects approved
and 4,600 jobs created

Promoting Sports Tourism ● RM5.35 million spent by 11,800 spectators during the Le Tour De Langkawi 2022
 Mid-Term Review of the Twelfth Malaysia Plan
7-12 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Issues and Challenges

Various measures undertaken during the 2021-2022 period have contributed towards strengthening national unity, upholding the country’s stability,
improving healthcare, providing affordable housing and promoting active lifestyle. Nevertheless, there are issues and challenges that need to be addressed
to attain a sustainable and prosperous Malaysia. Among the issues are continued incidences of disunity, evolving threats to security and public safety,
wider disparities in healthcare, lack of quality and affordable houses, and untapped sports potential. Failure to address these issues can impede the
harmony and wellbeing of the rakyat.

Continued Incidences of Disunity I

● Lack of cross-ethnic social interactions

● Low understanding of the Federal Constitution and Rukun
II Evolving Threats to Security and
Negara
● Lack of comprehension of the spirit of unity
Public Safety
● Increase risk of cross border crime
● Lack of collaboration among multi-ethnic stakeholders
● Lack of enforcement at border areas
● Increase threats on country’s sovereignty
Wider Disparities in Healthcare III ● Escalation losses in cybercrime

● Reversal effects of COVID-19 pandemic on health status of ● Lack of coordination in disaster management
the rakyat
● Increase in the incidence of double burden diseases
● Fragmented health information systems
● Low awareness, knowledge and understanding on the basic
health information
● High costs and limited care services facilities for the elderly IV Lack of Quality and Affordable
● Unsustainable healthcare financing
Houses
● Resource constraint to fund new healthcare infrastructure ● Lack of affordable houses
● Fragmented housing data
● Low quality of affordable houses
Untapped Sports Potential V
● Poor maintenance culture
● Low adoption of healthy and active lifestyle ● Escalating housing prices

● Limited accessibility to sports and recreational facilities ● Lack of inclusive housing

● Low maintenance culture of sports facilities

● High dependency on Government funding among national
sports associations (NSAs)
● Lack of new sports talents
● Uncoordinated and fragmented data on sports industry
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-13

Way Forward, 2023-2025

The Mid-Term Review of the Twelfth Plan will continue to focus on efforts in upholding national unity and sovereignty as well as enhancing the wellbeing
of the rakyat towards achieving a just society. These will be undertaken by strengthening unity, ensuring national security and sovereignty, enhancing
healthcare service delivery, increasing the supply of quality and affordable houses, and leveraging sports in building an active society. These strategies
will promote greater social harmony as well as safe, conducive and healthy living for the rakyat.

Focus Area A: Focus Area B:

Strengthening Unity for a Prosperous Ensuring National Security and
Nation Sovereignty
Strategy A1: Strategy B1:
Embracing Diversity as an Asset Safeguarding National Sovereignty
Strategy A2: Strategy B2:
Fostering Culture of MADANI Society Intensifying Efforts in Crime Prevention and Rehabilitation
Strategy A3: Strategy B3:
Strengthening Governance Strengthening Disaster Management

Focus Area C: Focus Area D:

Enhancing Healthcare Service Delivery Increasing the Supply of Quality and
Affordable Housing
Strategy C1: Strategy D1:
Rejuvenating the Healthcare Service Improving Access to Quality and Affordable Housing
Strategy C2: Strategy D2:
Broadening Health Financing Options Enhancing Governance
Strategy D3:
Providing Inclusive Affordable Housing

Focus Area E:
Leveraging Sports in Building an Active
Society

Strategy E1:
Reviving Sports Activities for Active and Healthy Living
Strategy E2:
Enhancing Sports Excellence
Strategy E3:
Developing Sports Industry
 Mid-Term Review of the Twelfth Malaysia Plan
7-14 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Selected Targets, 2021-2025

Upholding Unity, Defence and Security

0.7 National Unity Index 10 Ranking in the Global

Peace Index

2025 2025

10 Police Response Time

238 Index Crime Cases per
minutes cases 100,000 Population

2025 2025

Enhancing Wellbeing

Health Index in
111.0 Malaysian Wellbeing 20% Reduction in Prevalence
of Smoking
1:400 Doctor to Population
Ratio
Index (MyWI)

2025 2025 2025

2% Reduction in Excess
Mortalitya
500,000 Number of Affordable
Houses Constructed
55.0 Malaysian Sports
Culture Index

2025 2021-2025 2025

Note: a Excess mortality is defined as the difference in the total number of deaths in a crisis compared to those expected under normal conditions.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-15

Focus Area A: media content will be increased. Communication methods to convey unity
elements through the History subject in schools will be diversified, including
Strengthening Unity for a by leveraging digital technology.

Prosperous Nation
Strategy A2:
Embracing the value of unity as a nation's key asset is vital in maintaining
peace and stability of the nation. In this regard, measures will continue
Fostering Culture of MADANI Society
to be undertaken to embrace diversity, fostering culture of MADANI
society and strengthen governance in promoting complete unity. This will
Developing a Progressive Society
contribute towards building bridges of trust for unity across multicultural,
Developing a progressive society is one of key components in Big Bold
multi-ethnic and multi religion societies, that pursues sustainability with
Fostering Culture of MADANI Society. In this regard, embracing Maqasid
care and compassion, reinforced with respect.
Syariah principles and strong noble values among society is important to
develop Insan MADANI and a progressive society. Various parties including
government agencies, HEIs, schools, private sector and civil society
organisations (CSOs) will be encouraged to be more active in inculcate
Strategy A1 Embracing Diversity as an Asset
Maqasid Syariah principles and fostering noble values. Awareness campaigns
and programmes on Maqasid Syariah principles and noble values through
various platforms including social media will be implemented. Meanwhile,
Strategy A2 Fostering Culture of MADANI Society the Rukun Tetangga will be empowered as an important driver and mediator
in organising community, volunteerism and nationalism programmes at the
grassroots level.

Strategy A3 Strengthening Governance Developing Self-Identity Based on Rukun Negara

Efforts to develop self-identity based on Rukun Negara as well as enhance
unity and national spirit will be intensified to foster culture of MADANI
Strategy A1: society. In this regard, various programmes under Kembara Perpaduan
flagship will continue to be undertaken. In addition, elements of advocacy
Embracing Diversity as an Asset and spirit of unity will be embedded in various Government programmes
to foster a better understanding of Rukun Negara. Kelab Rukun Negara and
Promoting Social Interaction Sekretariat Rukun Negara as well as Sekolah Rukun Negara programme will be
further leveraged to raise the level of comprehension of the Rukun Negara
Programmes in promoting and advocating unity will be intensified to further
principle among society particularly students and youth.
strengthen social cohesion. More social interactions programmes and
engagements will be organised, particularly at community level. Community
mediator services will be further promoted nationwide to manage conflicts Strategy A3:
at community level. An analytical dashboard will be developed to monitor Strengthening Governance
the situation of unity at community level. This information is important in
improving the planning and implementation of specific programmes based
Strengthening Stakeholders Collaboration
on needs.
Pelan Tindakan Perpaduan Negara will be aligned with core values of Malaysia
Efforts to document national history with a focus on promoting unity as MADANI in developing an inclusive, competence and advance society.
a reference for the present and future generations will be intensified. In The governance on unity will be improved to strengthen national unity.
addition, the production of films, documentaries, short videos and social In this regard, Majlis Penasihat Perpaduan Negara will be reactivated and
 Mid-Term Review of the Twelfth Malaysia Plan
7-16 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

strengthened to address unity issues, monitor policy implementation and

recommend effective measures. Collaboration based on the whole-of-nation
approach among the government, private sector, civil society and community-
based organisations will be intensified to enhance the understanding and
implementation of the National Unity Policy.

Focus Area B:
Ensuring National Security and
Sovereignty
National security and sovereignty are vital in ensuring better standard of
living and wellbeing of the rakyat. Various measures will be undertaken by
safeguarding national sovereignty, intensifying efforts in crime prevention and
rehabilitation, and strengthening disaster management. The implementation
of these strategies will contribute in maintaining peace and stability of the
nation.

System and remote sensor sites will be upgraded to enhance the capacity
Strategy B1 Safeguarding National Sovereignty in identifying potential threats. In addition, the national border control
system with artificial intelligence technology will be adopted to enhance
the effectiveness of border control.

Intensifying Efforts in Crime Prevention and

Strategy B2 New military camps will be built to strengthen security at the borders.
Rehabilitation
The development of the naval base in Bintulu, Sarawak will support joint
operations domestically and at regional level. Enforcement and border
controls will be tightened by increasing the number of ATM security
Strategy B3 Strengthening Disaster Management posts along the borders of Sabah and Sarawak with Indonesia. The role of
Pasukan Gerakan Am at the border posts will also be expanded to include
the task of receiving reports from local communities, particularly on cross
border crimes, including the intrusion of illegal immigrants and smuggling
Strategy B1: of prohibited goods. In addition, the upgrading and new establishment of
Immigration Custom Quarantine and Security complex at selected entry
Safeguarding National Sovereignty points will ensure effective enforcement at the border in Sabah, Sarawak
and northern Peninsular Malaysia. New jetty and observation tower for
Enhancing National Border Security surveillance will be built in Perlis. Pasukan Jabatan Sukarelawan Malaysia
(RELA) will be established at the border through a collaboration among
Enhancing the national border security as one of the initiatives under the
relevant enforcement agencies. Meanwhile, hydrographic capabilities in
Big Bold Strengthening National Security and Defence will be focused
maritime mapping will be enhanced for border security. These efforts will
by acquiring strategic military assets such as armoured vehicles, Littoral
contribute in enhancing the readiness and capabilities in managing security
Mission Ship, helicopters and light combat aircrafts. Meanwhile, border
threats which is one of the initiatives under the Big Bold strengthening
surveillance capabilities will be strengthened through upgrading of maritime
national security.
operation control centre and construction of new operation base for Malaysia
Maritime Enforcement Agency. The Malaysian Maritime Sea Surveillance
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-17

Strategy B2: Focus Area C:

Intensifying Efforts in Crime Prevention Enhancing Healthcare Service
and Rehabilitation Delivery
Combatting Cybercrime The Big Bold Strengthening Healthcare Services will be implemented to
transform the healthcare service delivery. Focus will be given to rejuvenate
The existing laws will be amended to improve effectiveness in combatting the healthcare service and broaden health financing options in improving
cybercrime activities. Efforts to mitigate the public from being victims of healthcare service delivery and quality. These will be realised by improving the
cybercrime will be enhanced through numerous collaborations between healthcare system, strengthening healthcare programmes for older persons
the public and private sectors. Cybercrime awareness programme through and expanding health financing. The implementation of these measures will
social media platforms will be intensified. contribute towards healthy lives, sustainable healthcare financing and better
wellbeing of the rakyat. These will also contribute towards achieving the
Intensifying Rehabilitation Programme goal for Malaysia to be in the 25th rank in the United Nations Development
Programme Human Development Index within 10 years.
The Prison Incorporated will be established as one of the initiatives under
the Big Bold strengthening national security to manage My Pride products
by inmates. This entity will provide guidance and training to the inmates in
the production of food, fabrics, woven product, handicraft and furniture. Strategy C1 Rejuvenating the Healthcare Service
Meanwhile, Drug Dependants (Treatment and Rehabilitation) Act 1983 [ Act
283 ] will be reviewed to ensure relevancy and effectiveness in rehabilitation.
The revised law will enable drug abusers to undergo treatment instead of
facing arrests and incarceration. Strategy C2 Broadening Health Financing Options

Strategy B3:
Strengthening Disaster Management Strategy C1:
Rejuvenating the Healthcare Service
Improving Disaster Management
A disaster management policy under the purview of the National Disaster
Improving the Healthcare System
Management Agency will be reviewed to strengthen disaster preparedness Public health programmes will be improved to ensure the readiness of
and capacity to deal with disasters. The revised policy will enhance the role the country in managing crises and emerging healthcare threats. In this
of related agencies to manage pre-, during and post disaster holistically, regard, healthcare services will be better equipped with upgraded facilities,
covering the aspects of governance, enforcement, preparedness, disaster integrated information systems and advanced medical equipment. Efforts
risk reduction, response, rehabilitation and redevelopment. This will also will also be pursued to strengthen cardiology services, including provision
strengthen the coordination among relevant agencies at the Federal and of invasive cardiac laboratories in public hospitals. Meanwhile, measures
state levels in managing disaster. will be undertaken to improve dental services in line with the Universal
Health Coverage for Oral Health WHO (WHA74.5), through the expansion
of the services to school teachers, staffs and their families. In addition,
250 schools will be assisted to fulfil the criteria of Program Pemasyarakatan
Perkhidmatan Klinik Pergigian Sekolah. A national mental health institute will
be established as part of the initiatives under the healthcare Big Bold to
address mental health issues nationwide.
 Mid-Term Review of the Twelfth Malaysia Plan
7-18 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Digitalising Healthcare Services Leasing of Medical Equipment

The national food safety system phase 2.0 will be developed to enhance the Efforts will be undertaken in ensuring the availability of best medical
existing information systems through data integration. This will facilitate equipment for the rakyat through leasing option. This is part of the
better monitoring and auditing of food safety. The implementation of healthcare Big Bold initiative that will address the issue of high cost of
the Electronic Medical Record in public hospitals and clinics will also be procurement, maintenance and replacement of medical equipment due to
expanded nationwide to ensure seamless sharing of medical records. An rapid advancement in technology. This new financing option will provide
action plan for the Malaysian Health Data Warehouse data migration to better financial flexibility to acquire medical equipment with the latest
MyGOVCloud will be developed to enable data sharing across government technology for the benefit of the rakyat.
agencies. MyCHAMPION registration system will be upgraded for better
organisation of content and activities of health volunteers in providing
awareness on NCDs. Focus Area D:
Increasing the Supply of Quality and
Strengthening Healthcare Programmes for Older
Persons Affordable Housing
The Government will continue to play a strategic role in promoting the
Efforts will be undertaken to integrate care services between health clinics
development of more quality and affordable houses. In line with inclusive
and hospitals to better serve the older persons in preparation for Malaysia
development, focus will be given in improving access to quality and affordable
becoming an aged nation. The Private Aged Healthcare Facilities and Services
housing, enhancing governance as well as providing inclusive affordable
Act 2018 [ Act 802 ] will be enforced to ensure compliance with the safety
housing. These measures will contribute to the provision of adequate,
and standards requirements. In addition, new geriatric care centres will
quality and affordable housing, as part of the efforts in enhancing the
be established to provide long-term healthcare services in improving the
wellbeing of the rakyat.
quality of life for older persons.

Strategy C2:
Improving Access to Quality and Affordable
Broadening Health Financing Options Strategy D1
Housing

Strengthening Health Protection and Healthcare

Financing Strategy D2 Enhancing Governance

Health protection coverage for targeted groups will be expanded through

the implementation of Skim Perubatan MADANI. This healthcare Big Bold
initiative will cater the needs of patients with limited financial capability
in seeking private healthcare services, thus reducing congestion at public Strategy D3 Providing Inclusive Affordable Housing
healthcare facilities. Meanwhile, a new model to finance health facilities
will be explored to improve accessibility to healthcare services in ensuring
no one is left behind. Greater investment in developing and providing
healthcare services will also be promoted.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-19

Strategy D1:
Improving Access to Quality and
Affordable Housing
Accelerating the Transition from
Ownership to Shelter
The housing programme implemented by the Government will be guided by
the concept of shelter as a basic need and human right instead of ownership.
This transition is to support the Big Bold Housing for the Rakyat. In this regard,
the role of public and private sectors will be crucial by actively participating
in the provision of housing that are safe, secure, and affordable. Under this
concept, the focus will be shifted from development of housing for sale to
rental. Under this Big Bold, the roles and functions of Syarikat Perumahan
Negara Berhad (SPNB) and Perbadanan PR1MA Malaysia (PR1MA) will be
aligned to support the shift.

Increasing Supply of Affordable Housing

In the effort to ensure adequate supply of affordable housing, the regulation
to limit the purchase of only one affordable house per eligible citizen will be
enforced. In this regard, the housing database will be developed to enable
more accurate cross-qualification screening of ownership information with
relevant agencies. Meanwhile, land inventory information that integrates
all information on waqf land will be established to identify suitable land for Increasing Access to House Financing
more affordable housing. In addition, collaboration with the state religious
councils and relevant agencies will accelerate the development of affordable Collaboration with financial institutions to provide attractive and sustainable
houses on the waqf land. housing financing packages will be pursued. The expansion of RTO programme
as one of the housing Big Bold initiative will be implemented to diversify
The regulation related to exit policy for public housing will be enforced by housing financing options. This programme will enable the target group
developing guidelines and procedures for overqualified tenants to move to to rent with an option to purchase within a stipulated rental period. First-
appropriate housing options. In addition, the 10-year moratorium period on time homebuyers will be equipped with the necessary financial knowledge
resale of houses will be expanded to include all public housing. Meanwhile, a to own a home through an online financial education module at Rumahku
comprehensive study will be undertaken to explore strategies and initiatives Portal by the Credit Counselling and Debt Management Agency. Meanwhile,
in managing affordable housing supply through the secondary market. The a study will be conducted on the establishment of an affordable housing
development of a national housing action plan to identify real housing needs fund to provide alternative housing financing. The study will propose the
will facilitate the provision of suitable housing. governance structure, mechanism and source of funding. In addition, a
comprehensive study will be undertaken to enhance the development of
the housing industry.
 Mid-Term Review of the Twelfth Malaysia Plan
7-20 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Managing Housing Construction Costs Strategy D3:

A guideline to assess and standardise the charges for land premium and Providing Inclusive Affordable Housing
compliance costs will be developed to expedite the approval of development
order for affordable housing development. In addition, incentive packages for Exploring the Potential of Retirement Village
developers who obtain a score of more than 70% in the Quality Assessment
System for Building Construction Works will be explored. Pre-approved The potential of developing retirement villages will be explored to meet the
plans (PAP) developed by the Construction Industry Development Board growing demand and improve the quality of life for retirees. In this regard, a
will be adopted as a standard design to expedite building plans approval by study on the demand and supply for retirement villages in major cities will
the local authorities, thus facilitating faster and more efficient construction be carried out. The study will provide policy recommendations, including
of affordable houses. In addition, a training module will be developed in regulatory frameworks that set standards and sustainable business models
collaboration with vocational training institutions and industry associations to facilitate the development of retirement villages.
to equip construction workers with the necessary skills in using IBS.
Creating Cohesive Community
Strategy D2: The Government will intensify its efforts to create a more cohesive
Enhancing Governance community in line with the spirit of housing for all. Planning guideline to
foster a more balanced and inclusive environment will be developed to
Strengthening Rules and Regulations for ensure that individuals with different income levels can live in the same
neighbourhoods. The adoption of this guideline will support in preventing
Homebuyers and Tenants the side effects of gentrification caused by rapid development and rising
The Housing Development (Control and Licensing) Act 1966 [ Act 118 ] will property prices. In addition, the Perumahan Inklusif MADANI projects will
be amended to include the development of residences on commercial land be developed in major urban areas through a public-private partnership
such as service apartments, small office and home office, and small office approach. The projects will adopt co-operative living arrangements, bringing
virtual office to protect homebuyers. Meanwhile, a new rental tenancy act together various target groups, such as older person, youth, and young
will be introduced to promote rental as an alternative to home ownership. family to foster inclusive housing and create a more liveable environment.
This act will offer greater flexibility, and lower initial costs and financial
risk to homeowners and tenants. Focus Area E:
Improving Strata Housing Management Leveraging Sports in Building an
Active Society
The Strata Management Act 2013 [ Act 757 ] will be amended to further
strengthen the function of Joint Management Body (JMB) and Management Efforts will be continued to leverage sports in building an active society.
Corporation (MC). The amendments will include requirement for strata Strategies will be undertaken in reviving sports activities for active and
residences to be managed by a probationary property manager registered healthy living, enhancing sports excellence and developing sports industry
under the Board of Valuers, Appraisers and Estate Agents and Property as a new source of economic growth. These strategies will boost the sports
Managers. This will improve building maintenance and management as culture and improve Malaysia's presence at international level.
well as encourage good governance. In addition, training programmes on
good governance and in managing conflicts of interest will be conducted
for JMB and MC to ensure efficient and accountable management of strata
residences.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-21

Strategy E2:
Strategy E1
Reviving Sports Activities for Active and
Healthy Living
Enhancing Sports Excellence
Strengthening Governance of High Performance
Strategy E2 Enhancing Sports Excellence Sports
The NSAs will be encouraged to diversify their funding sources by
functioning as sport social enterprises. In this regard, NSAs will be more
Strategy E3 Developing Sports Industry viable in generating income, and able to improve relationships with the
community and reduce dependency on the Government funding. NSAs
will enhance the professionalism of the management, thus encourage more
sponsorship. Alternative financial sources, including corporate sponsorship
Strategy E1: will be explored to increase sports development fund. Sports related tax
incentives will be revised to encourage the private sector and community
Reviving Sports Activities for Active and involvement in sports development, such as sponsoring sports events and
Healthy Living providing employment for former athletes. Meanwhile, national sports
talent plan will be developed as a guideline for stakeholders in implementing
Enhancing Inclusive Participation in Sports systematic and sustainable sports talent development.

Measure to increase inclusive participation in sports is one of the initiatives

Enhancing Athletes Performance
under the Big Bold Fostering Culture of MADANI Society. In this regard,
sports programmes at the grassroots level will be intensified to increase Efforts in realising Malaysia’s first Olympic Games gold medal will be further
awareness on active lifestyles and enhance inclusive participation in sports. intensified. In this regard, a long term framework to incorporate the Paris
Meanwhile, the use of the e-MYind system will be expanded to various 2024 and Los Angeles 2028 Olympic will be developed by the Road to Gold
government agencies as a platform for data collection of mass sports activities project team. This framework will include training, exposure to domestic and
organised by these agencies. The data will provide significant information in international competitions, as well as provision of coaching services, and
enhancing planning for inclusive participation in mass sports programmes. sports science and medical services. Concerted efforts will be undertaken
to develop athletes at all levels in the sports that offer many medals, such
Enhancing Accessibility to Sports Facilities as athletic, swimming and martial art. These efforts are expected to improve
Malaysia's performance in major sporting events.
Access of sports facilities in public schools, HEIs and training institutions
will be expanded to the rakyat. In this regard, a comprehensive SOP will be
Improving Support Services for Sports
developed as a guideline for administrators to facilitate the usage of these
facilities. Meanwhile, public awareness will be enhanced to uphold shared Local coaches will be equipped with relevant knowledge and skills to
responsibility in maintaining the facilities. improve the quality of athletes. In this regard, the qualification structure,
schemes, monitoring and assessment will be enhanced to attract and retain
best quality coaches. Capacity building programmes will be implemented
to provide opportunities for youth to pursue in sports profession such
as coaches, personal trainers and technical officials. The services of the
National Medical Sports Centre will be expanded to the international level in
generating more income to enhance the capacity of the centre in providing
more support services. A satellite centre for sports science and medicine will
be established in collaboration with strategic partners to expand services
 Mid-Term Review of the Twelfth Malaysia Plan
7-22 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

and enhance knowledge on sports science and sports medicine for athletes, Improving Database on Sports Industry
particularly at the early stages of development. In this regard, assessment
will be undertaken to measure the ability and capacity of strategic partners A centralised database on sports industry will be established to facilitate
as prerequisite in establishing the satellite centres. informed decision-making in advancing development of the industry. The
database will provide information such as sports product, employment and

Strategy E3: consumer spending. This will facilitate better planning in developing the
sports industry.
Developing Sports Industry
Enhancing Value Chain of the Sports Industry
Establishing a Sports Industry Centre of
Excellence Efforts to expand the value chain of sports industry such as event management
services, journalism and broadcasting as well as sports coaching will be
A Sports Industry Centre of Excellence will be established in collaboration intensified by optimising the potential of the industry. In this regard,
with a selected HEI to develop the sports industry. The centre will act as a professional sports leagues will be expanded to various types of sports.
reference centre in providing knowledge and conducting research in various These efforts will create more job opportunities, such as sports coaches,
segments of sports industry. The centre will collaborate with stakeholders medical personnel and commentators as well as business opportunities for
in identifying new ideas, knowledge and innovation related to sports. local entrepreneurs.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 7: Enhancing Unity, Defence, Security and Wellbeing 7-23

Conclusion
During the review period of the Twelfth Plan, continuous efforts were undertaken in
strengthening national unity, upholding the country’s stability, improving healthcare,
providing affordable housing and promoting active lifestyle. Nevertheless, several issues
and challenges still remain and need to be addressed effectively to enhance the wellbeing
of the rakyat. In the remaining Twelfth Plan period, measures will be undertaken to further
strengthen the national unity as well as ensure national security and sovereignty. In addition,
priority will also be given in enhancing healthcare service delivery and providing more
affordable and quality houses for the rakyat. Sports will be further leveraged to build an
active and healthy society. These efforts portray the Government continued dedication
and commitment in elevating quality of life for the rakyat.
 Mid-Term Review of the Twelfth Malaysia Plan
7-24 Chapter 7: Enhancing Unity, Defence, Security and Wellbeing

Chapter
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-1

Advancing Sustainability

Introduction 8-2

Progress, 2021-2022 8-3

Performance of Selected Targets 8-3
Achievement by Priority Area 8-6
Focus Area A : Implementing a Low Carbon, Clean and Resilient Development 8-6
Focus Area B : Managing Natural Resources Efficiently to Safeguard Natural Capital 8-7
Focus Area C : Strengthening the Enabling Environment for Effective Governance 8-8
Focus Area D: Ensuring Sustainable Energy 8-9
Focus Area E : Transforming the Water Sector 8-10

Issues and Challenges 8-12

Challenges in Addressing Climate Change and Environmental Degradation 8-12
Loss of Biodiversity and Unsustainable Use of Natural Resources 8-12
Low Implementation of SDGs and Adoption of ESG 8-12
Ineffective Environmental Governance 8-12

Way Forward, 2023-2025 8-13

Selected Targets, 2021-2025 8-14
Focus Area A : Accelerating the Implementation of Low Carbon, Clean and 8-16
Resilient Development
Focus Area B : Managing Natural Resources More Efficiently 8-19
Focus Area C : Advancing the Implementation of Sustainable Development Goals 8-21
and Adoption of Environmental, Social and Governance Principles
Focus Area D: Strengthening the Enabling Environment 8-25

Conclusion 8-27
 Mid-Term Review of the Twelfth Malaysia Plan
8-2 Chapter 8: Advancing Sustainability

Introduction
Advancing sustainability is crucial in ensuring sustainable economic growth, while protecting
the environment and conserving natural resources. During the review period of the Twelfth
Malaysia Plan, 2021-2025 (Twelfth Plan), several measures were undertaken to implement
a low carbon, clean and resilient development, manage natural resources, strengthen the
enabling environment, ensure energy sustainability and transform the water sector. Despite
these efforts, various issues continue to persist, including challenges in addressing climate
change and environmental degradation as well as loss of biodiversity and unsustainable
use of natural resources. In addition, low implementation of sustainable development
goals (SDGs) and low adoption of environmental, social and governance (ESG) as well as
challenges in accelerating energy transition need to be addressed.

In the remaining Twelfth Plan period, more efforts will be focused on advancing environmental
sustainability, while accelerating a just energy transition. Among the strategies are to
accelerate the implementation of low carbon, clean and resilient development as well
as manage natural resources more efficiently. Focus will also be given to advance the
implementation of SDGs and adoption of ESG principles as well as strengthen the enabling
environment. Through these efforts, it will ensure sustainable and inclusive development
for planetary health, safeguard natural endowments and address environmental challenges
towards achieving net-zero aspiration as early as 2050. These efforts are also consistent
with the 2030 Agenda for Sustainable Development (2030 Agenda).
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-3

Progress, 2021-2022
A total of 19 targets were set in advancing sustainability. During the review period, three targets were achieved, while the remaining are still in progress.
The performance of these targets is as shown in Exhibit 8-1.

Exhibit 8-1
Performance of Selected Targets
Low Carbon, Clean and Resilient Development

Up to
In progressa 25% 27.8% 40% 33.2% 67% 64.8%
45 %

2030 2022 2025 2021 2025 2022 2025 2022

Reduction in Greenhouse Government Green Recycling Rate of Reduction of
Gas (GHG) Emissions Procurement Household Waste Hydrochlorofluorocarbon
Intensity to GDP by (HCFC) Consumption
2030b Based on Emissions
Intensity in 2005

Managing Natural Resources Eff iciently

At least
13.3%
At least
5.4% 100% In progressc 10 1
20 % 10 % IRBM Plans

2025 2022 2025 2022 2025 2022 2025 2022

Terrestrial and Inland Water Coastal and Marine Areas Stabilisation of Tiger Implementation of the
Areas Conserved through Conserved through Population Integrated River Basin
Gazettement and Other Gazettement and Other Management (IRBM) Plans
Effective Area-Based Effective Area-Based
Conservation Measures Conservation Measures

Notes: a Latest progress will be published in the Biennial Transparency Report Malaysia in 2024.
b
Malaysia’s Nationally Determined Contribution to the Paris Agreement of the United Nations Framework Convention on Climate Change to reduce up to 45% greenhouse
gas (GHG) emissions intensity to GDP by 2030 based on emissions intensity in 2005.
c
Malayan Tiger Population indicator will be concluded in 2025.
 Mid-Term Review of the Twelfth Malaysia Plan
8-4 Chapter 8: Advancing Sustainability

Strengthening the Enabling Environment for Effective Governance

DRM In
Policy progress

2025 2022
Introduction of the Policy on Disaster Risk Management (DRM)

Ensuring Sustainable Energy

National OGSEd Regional

Energy Completed Industry Completed Gas Market 90%
Policy Blueprint Hub

2025 2022 2025 2022 2025 2022

Introduction of a Comprehensive Formulation of OGSE Industry Blueprint Framework for Establishment
National Energy Policy of Regional Gas Market Hub

8% 5.8% 31% 24.3%

2025 2022 2025 2022

Reduction in Electricity Consumption Renewable Energy of Total Installed Capacity

Note: d Oil & Gas Services and Equipment.

 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-5

Transforming the Water Sector

10 Integrated
Centre for
98% 97% TMDL e
4 Data and 40%
Studies R&D&C&I

2025 2022 2025 2022 2025 2022

Coverage of Access to Clean Total Maximum Daily Load Establishment of an
and Safe Water in Rural Area Study Conducted for Critical Integrated Centre for
Rivers Water Data and R&D&C&I

25% 37.2% 98% 96.3%

2025 2022 2025 2022

Percentage of Non-Revenue Water Coverage of Safely Managed Sanitation
System in Rural Area

Note: e Total Maximum Daily Load.

 Mid-Term Review of the Twelfth Malaysia Plan
8-6 Chapter 8: Advancing Sustainability

Achievement by Priority Area

Focus Area A: Implementing a Low Carbon, Clean and Resilient Development

Strategy A1: Moving towards a Low Carbon Nation

Promoting Green and Resilient Cities ● The National Low Carbon Cities Masterplan launched in 2021
and Townships

Enhancing Green Mobility ● The Low Carbon Mobility Blueprint 2021-2030 approved in 2021
● Road tax exemption for electric vehicles (EVs) from 2022 until 2025

Expanding the Green Market and ● Green Jobs Malaysia Portal

Government Green Procurement o Launched in 2021
o 537 companies registered and 560 jobs offered as at end 2022
● Pekeliling Perbendaharaan Malaysia - Dasar Perolehan Hijau Kerajaan (PK 1.9) enforced in 2022

Strategy A2: Accelerating Transition to Circular Economy

Creating an Enabling Ecosystem for the ● The Malaysia Plastics Sustainability Roadmap, 2021–2030 completed in 2021
Circular Economy

Strategy A3: Promoting Sharing of Responsibility in Pollution Prevention

Prioritising Environmental Health ● The Hydrochlorofluorocarbon Phase-Out Management Plan Stage 2 completed in 2022

Strategy A4: Increasing Resilience against Climate Change and Disasters

Implementing Evidence-Based and Risk- ● Six Flood Hazard Maps developed for reference
Informed Actions

Enhancing Early Warning Systems and ● The Flood Forecasting and Early Warning System for 22 river basins completed in 2022
Disaster Response

Enhancing Disaster Preparedness and ● 14 flood mitigation projects completed

Recovery ● Three coastal erosion prevention and rehabilitation projects completed
● 15 flood mitigation projects and five coastal erosion projects nationwide approved
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-7

Focus Area B: Managing Natural Resources Efficiently to Safeguard Natural Capital

Strategy B1: Conserving Natural Ecosystems

Enhancing Conservation Measures for ● Gazettement of Permanent Reserved Forest (PRF)

Terrestrial and Inland Water Areas o 676.5 hectares in Pulau Pinang
o 176.7 hectares in Perlis
o 23.8 hectares in the Federal Territory (FT) of Kuala Lumpur
● Gazettement of Totally Protected Area within the Heart of Borneo
o Sabah: 1,459,181 hectares in 2021 compared to 551,879 hectares in 2007
o Sarawak: 554,280 hectares in 2021 compared to 362,860 hectares in 2007

Enhancing Conservation Measures for ● 299 square kilometres of water surrounding seven islands and four rocks in Johor waters
Coastal and Marine Areas gazetted as marine parks in 2022
● 294.4 hectares of coastal areas planted with more than 342,000 mangroves and other suitable
species

Mainstreaming Natural Ecosystem Science ● The Master Plan for Ecological Linkages Central Forest Spine completed in 2022
and Approaches into Development ● Rancangan Fizikal Zon Persisiran Pantai Negara-2 published in 2022
Planning

Strategy B2: Protecting and Conserving Species and Genetic Resources

Strengthening Species Management and ● The National Tiger Conservation Task Force established in 2021
Conservation ● 13 freshwater sanctuaries established as at end 2022
● The Malayan Tapir Conservation Action Plan approved in 2022

Strategy B3: Ensuring Sustainable Utilisation and Benefits Sharing

Strengthening Sustainable Utilisation of ● Five geoparks recognised as national geoparks

Natural Resources

Enhancing Mineral Resources Management ● 52% of mines and quarries attained at least 3 stars based on the Sustainability Rating of the
Mining Sector in 2022
● Three standard operating procedures (SOP) for mining activities and export of bauxite
developed in 2021

Diversifying Conservation Funding ● RM70 million allocated for the Ecological Fiscal Transfer for Biodiversity Conservation in 2022
● RM16 million worth of conservation projects and activities funded by the National
Conservation Trust Fund for Natural Resources as at end 2022
 Mid-Term Review of the Twelfth Malaysia Plan
8-8 Chapter 8: Advancing Sustainability

Ensuring Equitable Benefit Sharing from ● 158 research & development & commercialisation & innovation (R&D&C&I) projects on
Natural Resources Utilisation forestry and forest biodiversity conducted in 2021
● 61 new research projects worth RM37.6 million financed through sponsorship approved in
2021

Strategy B4: Enhancing Conservation of Water Resources

Strengthening Water Resources Governance ● The National Water Balance Management System adopted in seven river basins

Addressing Water Pollution ● 489 out of 670 rivers categorised as clean based on the Water Quality Index in 2021

Focus Area C: Strengthening the Enabling Environment for Effective Governance

Strategy C1: Strengthening Environmental Governance

Improving Policy and Legislation ● The National Forestry (Amendment) Act 2022 enacted
● The Sarawak Forest (Amendment) Ordinance 2022 enacted

Strengthening Institutional Framework and ● The National SDG Centre established in 2022
Human Capital ● The establishment of the National Greenhouse Gas (GHG) Centre approved in 2022

Strategy C2: Scaling-up Green Financing and Investments

Enhancing Domestic Green Financing and ● The Sustainable and Responsible Investment Taxonomy developed in 2022
Investments ● The Financial Sector Blueprint 2022-2026 launched in 2022
● The Climate Change and Principle-based Taxonomy (CCPT) document introduced in 2021
● RM1 billion allocated to small and medium enterprises (SMEs) under the Low Carbon Transition
Facility (LCTF) in 2022

Leveraging Bilateral and Multilateral ● US$21.9 million allocated for Malaysia under the Global Environment Facility 7
Financing ● US$10 million granted under the Nature-based Climate Adaptation Programme for the Urban
Areas of Penang Island in 2022

Enhancing Environmental Economic ● The National Guidance on International Voluntary Carbon Market Mechanisms developed in
Instruments 2022
● The world’s first Shariah-compliant voluntary carbon exchange launched in 2022
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-9

Strategy C3: Instilling Sense of Ownership and Shared Responsibility

Increasing Awareness to Steer Behavioural ● The Greening Malaysia Programme through the 100 Million Tree-Planting Campaign launched
Change in 2021
● Kampus Lestari study completed in 2022

Focus Area D: Ensuring Sustainable Energy

Strategy D1: Enhancing the Energy Sector

Formulating a Comprehensive National ● The National Energy Policy, 2022-2040 (DTN) launched in 2022
Energy Policy

Strategy D2: Ensuring Sustainable and Progressive Oil and Gas Subsector

Attracting High Value Investment in the ● Pengerang Integrated Petroleum Complex recorded
Petrochemical Industry o RM5.1 billion committed investment
o RM4.2 billion realised investment

Scaling Up Biofuel Usage ● The Front End Engineering Design and Detailed Engineering Design studies completed in 2022

Enhancing the Capability of Local Players in ● The National OGSE Industry Blueprint 2021-2030 launched in 2021
Oil & Gas Services and Equipment (OGSE) ● RM8.5 million allocated to 36 companies under the OGSE Development Grant
Subsector

Developing a Comprehensive Natural Gas ● The Regional Gas Market Hub study completed in 2022
Roadmap

Strategy D3: Enhancing the Electricity Subsector

Creating a Resilient Electricity Supply ● The Malaysian Electricity Supply Industry 2.0 study completed in 2022
Industry

Strengthening Electricity Supply System in ● Three out of 10 transmission projects under the Sabah Special Project Delivery Unit completed
Sabah in 2022
● The System Average Interruption Duration Index for Sabah improved to 286.2 minutes/
customer/year in 2022, from 332.1 minutes/customer/year in 2021
 Mid-Term Review of the Twelfth Malaysia Plan
8-10 Chapter 8: Advancing Sustainability

Enhancing the Grid System ● Construction of gas-fired power plants

o The Edra Melaka Power Plant with a capacity of 2,242 megawatts (MW) completed in 2022
o The Pulau Indah Power Plant with a capacity of 1,200 MW started in 2021
● The construction of 500 kilovolt (kV) electricity transmission lines from Ayer Tawar-Bentong
South-Lenggeng commenced in 2022

Expanding Rural Electricity Coverage ● The rural electricity coverage as at end 2022
o Peninsular Malaysia: 99%
o Sabah: 96.6%
o Sarawak: 95.7%

Increasing Renewable Energy (RE) Installed ● The Green Electricity Tariff Programme introduced in 2021
Capacity ● The Corporate Green Power Programme introduced in 2022
● 9.8 gigawatt (GW) RE installed capacity available as at end 2022

Enhancing Energy Efficiency ● RM27.5 million total rebates provided under the Sustainability Achieved Via Energy Efficiency
(SAVE) 2.0 Programme in 2021
● RM35.8 million total rebates provided under the SAVE 3.0 Programme in 2022

Focus Area E: Transforming the Water Sector

Strategy E1: Empowering People

Implementing Comprehensive Awareness, ● Four modules on Awareness, Advocacy and Capacity-Building for academicians, businesses and
Advocacy and Capacity-Building industries, community, and government agencies completed in 2022
Programmes

Expanding Community-Driven ● 670 Friends of River community-driven programmes conducted as at end 2022
Conservation Programmes

Strategy E2: Enhancing Capability in Data-Driven Decision-Making

Enhancing Capacity of Water Industry ● 322 Indah Water Konsortium (IWK) operational staffs received Sijil Kemahiran Malaysia in 2022
Players and the Scientific Community
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-11

Strategy E3: Ensuring Sustainable Financing

Strengthening Financial Sustainability of ● Tariff adjustment for non-domestic and special category consumers in Peninsular Malaysia and
Water Services Providers the FT of Labuan came into effect in 2022

Strategy E4: Developing Sustainable Infrastructure with Cost-Effective Technology

Adopting Alternative System for Water ● Additional 12,838 houses supplied with treated water under the Rural Water Supply
Services in the Rural Area and Island Programme
● Wakaf Air fund received RM4.4 million contributions
o Funded 50 projects worth RM2.2 million, benefitting 5,034 houses

Optimising Water Resources through Cost- ● The National Groundwater Mapping and Development Project in Kedah commenced in 2021
Effective Infrastructure

Implementing Circular Economy in Water ● Non-core businesses of IWK involving water and biosolid recycling for industrial purposes
Sector commenced in 2022
 Mid-Term Review of the Twelfth Malaysia Plan
8-12 Chapter 8: Advancing Sustainability

Issues and Challenges

In the review period, various measures were undertaken to enhance the sustainability of the environment, as well as energy and water sectors. Nevertheless,
several issues and challenges continue to persist and need to be addressed, including climate change, environmental degradation, biodiversity loss and
unsustainable use of natural resources. In addition, implementation of SDGs is still low and ESG principles are still not widely adopted in the business
sector, while environmental governance is ineffective.

Challenges in Addressing Climate I

Change and Environmental
Degradation
II Loss of Biodiversity and
• Absence of integrated and comprehensive policy and
regulatory framework Unsustainable Use of Natural
• Challenges to comply with international standards and Resources
regulatory requirements
• Fragmented and incomprehensive policy and
• Unsustainable consumption and production patterns legislation on natural assets
• Lack of integrated plan and strategies in accelerating energy • Sprawling conurbation and uncontrolled development
transition
• Conflicting priority between development and
• Low deployment and adoption of RE conservation
• Lack of comprehensive planning in optimising natural gas • Ineffective natural resources management and
resources enforcement mechanisms
• Inadequate financing as well as R&D&C&I for sustainable • Limited understanding on the economic value of
practices ecosystem function and services

• Insufficient alternative funding for sustainable

Low Implementation of SDGs and III projects

Adoption of ESG
• Low appreciation and awareness of SDGs
IV Ineffective Environmental
• Lack of conducive ecosystem in supporting ESG adoption
Governance
by the corporate sector • Lack of commitment among stakeholders

• Ineffective and unintegrated coordination and

monitoring at all levels

• Ineffective communication, education and public

awareness (CEPA) programmes
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-13

Way Forward, 2023-2025

During the remaining Plan period, focus will continue to be given on advancing sustainability in addressing climate change and other environmental challenges,
including in the energy and water sectors. This will be undertaken by accelerating the implementation of low carbon, clean and resilient development,
managing natural resources more efficiently, advancing the implementation of SDGs and adoption of ESG principles as well as strengthening the enabling
environment. These strategies underscore the need to advocate the just transition principle towards a green, fair and inclusive economy, creating decent
work opportunities and leaving no one behind. The energy transition will be accelerated by further reducing dependency on fossil fuels, adopting new
technologies in renewables, ensuring energy supply security as well as enhancing inclusivity in the oil and gas industry. In addition, the implementation
of water sector transformation will be strengthened to ensure a secure and safe water supply for the rakyat.

Focus Area A: Focus Area B:

Accelerating the Implementation of Low Managing Natural Resources More
Carbon, Clean and Resilient Efficiently
Development
Strategy B1:
Strategy A1: Conserving Natural Ecosystems
Strengthening Actions towards a Low Carbon Nation Strategy B2:
Strategy A2: Protecting and Conserving Species and Genetic Resources
Accelerating Transition to Circular Economy Strategy B3:
Strategy A3: Ensuring Sustainable Utilisation of Natural Assets
Sharing Responsibility in Pollution Prevention Strategy B4:
Strategy A4: Strengthening Water Management
Increasing Resilience against Climate Change and Disaster

Focus Area D:
Focus Area C: Strengthening the Enabling
Advancing the Implementation of Environment
Sustainable Development Goals and
Strategy D1:
Adoption of Environmental, Social and Strengthening Sustainability Governance
Governance Principles Strategy D2:
Instilling Sense of Ownership and Shared Responsibility
Strategy C1:
Intensifying the SDGs Implementation
Strategy C2:
Advancing the Adoption of Environmental, Social and Governance
Principles
 Mid-Term Review of the Twelfth Malaysia Plan
8-14 Chapter 8: Advancing Sustainability

Selected Targets, 2021-2025

Accelerating the Implementation of Low Carbon, Clean and Resilient Development

Reduction in Greenhouse
Gas (GHG) Emissions Government Green Recycling Rate of
Up to
Intensity to GDP by 30% Procurement 40% Household Waste
45% 2030 Based on Emissions
Intensity in 2005
2025 2025
2030

Reduction of Framework for

Regional Gas Reduction in Electricity
67% Hydrochlorofluorocarbon
Market Hub
Establishment of
8% Consumption
(HCFC) Consumption Regional Gas Market Hub

2025 2025 2025

Formulation and
National
Renewable Energy of Implementation of Natural Gas Formulation of the
Energy
31 %
Total Installed Capacity Transition the National Energy Roadmap Natural Gas Roadmap
Roadmap Transition Roadmap

2025 2025 2025

New Target
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-15

Managing Natural Resources More Efficiently

Coastal and Marine
Terrestrial and Inland
Areas Conserved through
Water Areas Conserved Stabilisation of Tiger
At least through Gazettement 5.6% Gazettement and Other 100% Population
20% and Other Effective
Effective Area-Based
Conservation Measures
Area-Based Conservation
Measures 2025 2025
2025

8
Implementation of the
Integrated River Basin
Coverage of Access to 10 Total Maximum Daily
IRBM Management (IRBM)
98 % Clean and Safe Water in TMDL Load Study Conducted
Plans Rural Area Studies for Critical Rivers
Plans

2025 2025 2025

Integrated Establishment of an
Coverage of Safely
Centre for Integrated Centre Percentage of Non-
Data and for Water Data and 31 %
Revenue Water 98 % Managed Sanitation
R&D&C&I System in Rural Area
R&D&C&I

2025 2025 2025

Strengthening the Enabling Environment

Introduction of the
DRM Policy on Disaster Risk
Policy Management (DRM)

2025
 Mid-Term Review of the Twelfth Malaysia Plan
8-16 Chapter 8: Advancing Sustainability

Focus Area A: actions needed to achieve Malaysia’s climate actions targets. Through these
efforts, Malaysia will be better equipped in identifying opportunities and
Accelerating the Implementation addressing challenges in the transition towards a low carbon nation.

of Low Carbon, Clean and Resilient A feasibility study on carbon pricing, which include carbon tax and

Development emissions trading system will be conducted. This study will provide suitable
recommendations for implementation of carbon pricing. The development
of LT-LEDS and carbon pricing will support the implementation of Big Bold
It is imperative to accelerate implementation of a low carbon, clean
Energy Transition-based Industry. In addition, the online trading platform
and resilient development in ensuring planetary health and sustainable
for the Bursa Carbon Exchange (BCX) will be developed to enable trading
socioeconomic growth. Efforts will be undertaken in strengthening actions
of standardised carbon credit contracts. In supporting BCX implementation,
towards achieving a low carbon nation, accelerating transition to circular
efforts will be undertaken to publish a voluntary carbon market (VCM)
economy, sharing responsibility in pollution prevention and increasing
handbook, establish a VCM directory and organise VCM awareness
resilience against climate change and disaster. These strategies will address
programmes on a regular basis. In addition, a climate change legislation that
environmental vulnerabilities due to the impacts of climate change and
takes into account the recent development at domestic and international
challenges related to sustainable development.
levels will be formulated to regulate the implementation of national climate
change policies and obligations.

Strategy A1
Strengthening Actions towards a Low Carbon Enhancing Low Carbon Mobility
Nation
Measures will be implemented to expand infrastructure for EVs in increasing
accessibility to EVs. In addition, local authorities will be encouraged to
Accelerating Transition to Circular adhere to the Active Mobility Planning Guideline. These measures will
Strategy A2 promote low carbon transport options by consumers and the development
Economy
of green transport infrastructure.

Strategy A3 Sharing Responsibility in Pollution Prevention

Developing Regulatory Framework for the
Implementation of Carbon Capture, Utilisation
and Storage Initiative
Increasing Resilience against Climate Change
Strategy A4
and Disaster A regulatory framework in governing carbon capture, utilisation and storage
(CCUS) will be developed, in line with the energy transition Big Bold. This
framework will include a regime to coordinate the implementation of CCUS
at national and state levels as well as address transboundary movement
Strategy A1: according to the international protocol. In addition, a coordination unit will
Strengthening Actions towards a Low be established to drive the planning, implementation and monitoring of
CCUS. The investment value in the CCUS industry in Malaysia is expected
Carbon Nation to reach US$200 billion within 30 years. The industry also anticipated to
create up to 200,000 job opportunities per annum.
Enhancing Mechanisms for Climate Action
A long-term low emissions development strategies (LT-LEDS) and a nationally
determined contributions (NDC) roadmap will be developed to enhance
mechanisms for climate action. These initiatives will outline strategies and
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-17

Expanding the Implementation of Government

Green Procurement Box 8-1
In boosting green market to support sustainable growth, the implementation Powering Malaysia’s Future through
of the Government Green Procurement (GGP) will be expanded to the Just Energy Transition
construction sector through the GGP Works initiative. In this regard, a
pilot project under the GGP Works will be carried out to identify suitable Energy is at the heart of climate agenda because it accounts for
mechanisms in implementing green procurement for physical projects. This 73.2% of greenhouse gas (GHG) emissions worldwide according to
initiative will spur the development of green products for the construction the International Energy Agency (IEA). In achieving the 1.5°C frontier,
sector. IEA’s pathway stated the world economy needs to consume 7% less
energy than today, as the world economy is expected to expand by
Formulating the National Energy Transition 40% by 2030. This requires a massive push in fossil fuels phase-down,

Roadmap energy efficiency and renewables. The transition away from a carbon-
intensive system is difficult for many countries, including Malaysia.
The reliance on coal in electricity generation, stems from it being the
A national energy transition roadmap (NETR) an initiative under the energy
cheapest, relative to other sources such as natural gas and renewables.
transition Big Bold, is being formulated to support the operationalisation of
the National Energy Policy, 2022-2040 (DTN) in decarbonising the energy
The Twelfth Malaysia Plan has set the target to become a net-zero
sector. This initiative will contribute towards achieving the commitment of
GHG emissions nation as early as 2050. This underscored the need for
Malaysia in reducing up to 45% of GHG emissions intensity to gross domestic
Malaysia to accelerate energy transition, while balancing the energy
product (GDP) by 2030 based on emissions intensity in 2005. The NETR
trilemma of security, affordability and sustainability.
will enhance the competitiveness of Malaysia as the world transitions to a
low carbon future through various decarbonisation pathways. The NETR
The National Energy Policy, 2022-2040 (DTN) defines energy transition
implementation will give priority to high-impact flagship projects, financing,
as a structural shift of energy systems towards cleaner sources. DTN’s
technology adoption and capacity building, while promoting policies that
Low Carbon Nation Aspiration 2040 sets to transform Malaysia’s
support net-zero commitment. The proposed flagship projects and initiatives
primary energy supply towards clean and renewable energy (RE). With
which cover energy efficiency, RE, carbon capture and storage, hydrogen,
this policy, the transition is expected to occur at an accelerated pace,
bioenergy and green mobility are projected to attract initial investment of
driven by rapid technological progress and strong climate change
more than RM25 billion. A summary of the plan for a just energy transition
policies. The energy transition will be based on the principles of just,
in Malaysia is as shown in Box 8-1.
inclusive and orderly, which emphasises on opportunities for decent
work for all, active community participation and effective governance.

The Government is developing a national energy transition roadmap

(NETR) to operationalise the DTN and accelerate energy transition.
In this regard, NETR aims to identify investment opportunities in six
energy transition levers, namely energy efficiency, RE, hydrogen and
ammonia, bioenergy, green mobility as well as carbon capture and
storage. To date, 10 flagship projects and initiatives that are ready
to be implemented have been identified. NETR will also feature
key energy transition pathways, energy mix and emission reduction
targets. Malaysia is an ardent proponent of just energy transition that
protects the rakyat, creates opportunity and supports innovation, with
a coordinated whole-of-nation approach.
 Mid-Term Review of the Twelfth Malaysia Plan
8-18 Chapter 8: Advancing Sustainability

Accelerating Adoption of Renewable Energy Optimising Natural Gas in Energy Transition

Advancement in energy storage system, smart grid infrastructure and A natural gas roadmap will be formulated to address the challenges of
sustainable material consumption will be leveraged to optimise energy use energy security, affordability and sustainability. This roadmap, which is
and reduce environmental impacts. The capacity of RE sources, particularly identified as one of the initiatives under the energy transition Big Bold will
solar, hydrogen, biomass and hydropower will be enhanced to generate guide in optimising the value of indigenous gas resources and increasing
clean energy as one of the intiatives under the energy transition Big Bold. the utilisation of natural gas resources as a cleaner alternative to reduce
In addition, feed-in tariff schemes and competitive bidding processes will carbon emissions. An additional liquefied natural gas storage in Pengerang,
be continued to attract investments in RE projects. Meanwhile, the current Johor will be developed to support gas market liberalisation and supply
tariff structure will also be reformed to align with system costs, protect availability. Meanwhile, availability of indigenous gas resources will be
vulnerable segments, and reposition commercial and industrial tariffs. The sustained by leveraging advanced technology to effectively develop marginal
tariff reform will enable increase in RE penetration, ensure cost-reflective and deepwater gas fields, and decarbonise upstream gas production.
prices and enhance economic advantage to support the Big Bold Targeted
Subsidies implementation. These efforts will benefit domestic market and
position Malaysia as a regional leader in green technology.
Enhancing Sustainability in the OGSE Businesses

RE trading across borders is expected to expand domestic RE implementation. A national OGSE sustainability roadmap will be formulated to promote
The share of RE in installed capacity mix will be retargeted from the original sustainability practices and develop simplified reporting standards. More
target of 40% in 2040 to 70% in 2050. An electricity exchange system for SMEs in OGSE businesses will be able to comply with ESG principles and
RE trading will be introduced as an initiative under the energy transition improve the consistency and comparability of sustainability reporting for
Big Bold. In addition, the expansion of RE implementation through a self- better access to competitive financing with this roadmap. Wider adoption
contained system will pave the way for the development of RE zones that of sustainability practices among OGSE businesses will support the climate
maximise the potential of solar energy and battery storage facilities. These aspirations of the oil and gas industry.
efforts will reduce dependency on fossil fuel-based electricity generation,
create new economic opportunities and attract multinational companies, Strategy A2:
especially RE1001 companies to operate in Malaysia. Furthermore, Malaysia
will continue to leverage on the growing demand for clean and RE in the Accelerating Transition to Circular
region in becoming a hub for the trading and supply of clean and RE under Economy
the ASEAN Power Grid initiative.
Developing Circular Economy Policy Framework
Ensuring Energy Efficiency
In accelerating the transition towards the circular economy, an overarching
Existing policies and programmes aimed at promoting energy efficiency and framework will be developed to provide a long-term vision for the circular
implementing energy-saving measures in the industrial, commercial and economy implementation. The framework will be supported by various
residential sectors will be enhanced. Various initiatives under the National mechanisms, particularly in the manufacturing sector, the biomass industry
Energy Efficiency Action Plan, 2016-2025 will be further pursued, including and solid waste management. In the manufacturing sector, a circular economy
the implementation of the Minimum Energy Performance Standards, Energy policy framework will be developed to improve the competitiveness of the
Audit Conditional Grant Programme and Building Energy Index Labelling. industry and the marketability of the products internationally. Meanwhile, a
In addition, the legislation on energy efficiency and conservation will be national biomass action plan will be developed for energy and agro-based
enforced on high-intensity electricity users in the industrial and commercial material production that will reduce reliance on fossil fuels and promote
sectors, while the energy efficiency legal framework will be strengthened. environmental sustainability. In addition, the ongoing study on circular
economy for solid waste will provide strategies and action plans towards a
more comprehensive solid waste management. These efforts will maximise
1
The global corporate renewable energy initiative bringing together hundreds of
resources efficiency and minimise waste to support green growth initiative.
large and ambitious businesses committed to 100% renewable electricity.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-19

Strategy A3: structural-based approach in mitigating flood. In addition, alternative and

sustainable financing for flood mitigaton will be explored.
Sharing Responsibility in Pollution
Prevention Strengthening Disaster Management

Establishing a National Chemical Governance An assessment on the impact of disasters on affected groups will be
conducted. In addition, the development and sharing of flood and slope
Committee hazard maps will be continued to cover more critical areas throughout the
country. In this regard, a landslide early warning system (SAATR) for Federal
A national chemical governance committee will be established to address
the gaps in the current chemical-related acts and guidelines to prepare for roads will be developed to improve disaster management. Meanwhile, a
emergency response related to chemical risks at the national level as well as national geological disaster centre will be established by expanding roles
ensure compliance with international requirements. In promoting sharing of of the existing institution. Strategies to enhance community preparedness
responsibility in pollution prevention, this committee will adopt the whole- will also be developed to complement the national disaster risk reduction.
of-nation approach to coordinate involvement of various related agencies. Additionally, the capacity of the community response team will be enhanced
The committee will also facilitate the development of an integrated and to assist in the post-recovery process.
holistic chemical management database. A more comprehensive approach
in chemical management will mitigate risks associated with chemicals to
protect human health and environment. Focus Area B:
Managing Natural Resources More
Strategy A4:
Increasing Resilience against Climate
Efficiently
Change and Disaster Measures will be continued to manage natural resources more efficiently.
New initiatives will be introduced in halting biodiversity loss and improving
Formulating National Adaptation Plan planetary health. In this regard, efforts will be undertaken by conserving
natural ecosystems, protecting and conserving species and genetic resources,
A national adaptation plan will be formulated to address current and future ensuring sustainable utilisation of natural assets as well as strengthening
vulnerabilities on the impacts of climate change. The plan will consist of water management.
adaptation measures in five priority areas, namely public health, agriculture
and food security, forestry and biodiversity, water resources and security,
as well as infrastructure and cities. These measures will bolster adaptive
capacities in the priority areas and strengthen climate-resilient society. Strategy B1 Conserving Natural Ecosystems

Strategies to manage heat-related impacts, such as heat stress, heat stroke

and heat exhaustion will be incorporated into the national adaptation plan.
Among the initiatives to be implemented include increasing green spaces
Protecting and Conserving Species and Genetic
and tree coverage, improving urban planning to reduce urban heat island Strategy B2
Resources
effect as well as evaluating all activities in managing heat-related impacts. In
addition, heat action plans and early warning systems will be covered in the
national adaptation plan to enhance the resilience of vulnerable communities.

Strategy B3 Ensuring Sustainable Utilisation of Natural Assets

Strengthening Flood Management
Flood mitigation programmes will be given greater emphasis to cover
more flood-prone areas. In this regard, a study to assess the effectiveness
of nature-based solutions will be conducted to identify alternatives to Strategy B4 Strengthening Water Management
 Mid-Term Review of the Twelfth Malaysia Plan
8-20 Chapter 8: Advancing Sustainability

Strategy B1: Enhancing Protection and Conservation of

Conserving Natural Ecosystems Species
New sanctuaries will be established to conserve the freshwater aquatic
Strengthening the Management of Protected species in natural habitat, such as kelah and temoleh. In addition, the SOP
Areas for turtle management and national plan of action for endangered species
will be reviewed, while Labuan Marine Park sustainable management plan
In the effort to protect Malaysia’s biodiversity and conserve the ecosystem, will be developed by the end of 2023. Meanwhile, the Fisheries Act 1985
species and genetic diversity, a national framework for protected areas will [ Act 317 ] will be reviewed to include additional provisions. The review will
be developed to strengthen the management of the areas. This will include, focus on undertaking fisheries impact assessment for coastal and marine
among others, the gazettement of new protected areas. Meanwhile, states development projects as well as regulating transhipment at sea. In addition,
in Peninsular Malaysia will be encouraged to increase the forested areas the review will also involve improvement on marine park provisions and raise
to 50% by the year 2040, in line with the Fourth National Physical Plan. in penalties, particularly for offences related to marine habitat and species.
State governments will implement a moratorium on the approval of new
forest plantation development in the PRF areas in Peninsular Malaysia for The National Elephant Conservation Action Plan and National Tiger
a period of 15 years. Conservation Action Plan will be revised to better conserve elephants
and tigers in Peninsular Malaysia. In addition, future road and highway
A blueprint for marine protected areas (MPA) will be completed in 2024 to development designs will incorporate safe wildlife crossing structures and
strengthen the planning for the expansion of MPA. In addition, a system effective ecological linkages. The National Policy for Biological Diversity
on fisheries resources that consolidates data on marine ecosystems and will also be reviewed to align with the commitment under the Kunming-
biodiversity, including maps and spatial information will be completed in Montreal Global Biodiversity Framework.
2025. The system will facilitate the identification of potential locations for
the establishment of MPA corridors.
Strengthening Biosafety Management
Strategy B2: Malaysia aims to ratify the Nagoya-Kuala Lumpur Supplementary Protocol

Protecting and Conserving Species and on Liability and Redress by 2025. In this regard, a comprehensive regulatory
framework and an effective system on biosafety management will be
Genetic Resources developed. The Biosafety Act 2007 [ Act 678 ] will be revised to enhance the
effectiveness of biosafety management. This revision will address emerging
Leveraging Technology Advancement in issues related to advanced biotechnology, including through the labelling
Enforcement of living modified organisms (LMO) products. In addition, the development
of MyBiosafety 2.0 system as a one-stop centre for applications, approvals
The use of artificial intelligence will be explored for effective surveillance and other transactions involving LMO will be completed by 2025.
and enforcement to enhance the survival of the species, especially the
endangered ones. Meanwhile, electronic permit system for the Convention Strategy B3:
on International Trade in Endangered Species of Wild Fauna and Flora
(CITES)2 in Malaysia or MyCITES will be developed. The automation of Ensuring Sustainable Utilisation of Natural
CITES processes is crucial to ensure safe trade, increase transparency as Assets
well as reduce opportunities for misconduct.
Valuing Economic Benefits for Terrestrial and
Marine Areas
2
An international agreement between governments. CITES aims to ensure that The current total economic value (TEV) assessments in coastal areas along
international trade in specimens of wild animals and plants does not threaten the
the states of Johor, Melaka, Negeri Sembilan, Pulau Pinang and Selangor
survival of the species.
will be completed in 2023. The TEV assessments will be expanded to other
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-21

states in Peninsular Malaysia in the remaining Twelfth Plan period. Similar Addressing Water Pollution
initiative will be implemented to other natural ecosystems in the terrestrial
and marine areas. These assessments will support evidence-based policy In managing effluent from the industries, a study on the establishment of a
formulation in the conservation of natural ecosystem towards sustainable centralised industrial wastewater treatment plant is being conducted. The
utilisation. study will propose initiatives to ensure effluents from multiple sources in
an industrial area are treated and released into the river from one point
Preparing a National Forest Inventory source. In addition, the Environmental Quality Act 1974 [ Act 127 ] and
the Water Services Industry Act 2006 [ Act 655 ] will be reviewed. The
The sixth National Forest Inventory (NFI), which will be completed in 2024 amendment for both Acts which include new emerging environmental issues
will facilitate better planning, development, management and conservation and heavier penalties, will be tabled in the Parliament in the remaining
of forest resources. In addition, a special NFI for the mangrove forest will Twelfth Plan period.
be prepared to document the available natural assets in the forest. These
inventories will also be leveraged for carbon stock assessment. Enhancing Water Security
Developing Mineral Industry and Promoting In ensuring water security, alternative water sources from groundwater
Geological Heritage abstraction, rainwater harvesting and off-river storages will be further
explored through the construction of cost-effective infrastructure. The
The National Mineral Policy 2 will be reviewed to provide a more holistic approach for the National Non-Revenue Water Programme will be expanded
direction to drive the mineral industry development, including non- and revised to deliver continuous and holistic solutions for non-revenue
radioactive rare earths element (NR-REE), bauxite, tin, silica and kaolin, water reduction. The water and sewerage tariffs will be periodically reviewed
based on sustainable and responsible principles. The review which is one according to market segments. These initiatives will strengthen financial
of the initiatives under the Big Bold Rare Earths Industry will incorporate capability of water operators in ensuring efficient, equitable and sustainable
policies on mining activities in permanent forest reserve, environmentally water management.
sensitive areas and protected areas. It will also emphasise on R&D&C&I,
another initiative under the rare earths Big Bold. It is estimated that the
non-radioactive rare earths industry will create 6,550 jobs and contribute
Focus Area C:
RM9.5 billion to GDP by 2025. Additionally, development and implementation Advancing the Implementation of
plans for geopark will be introduced to further develop geoparks in Malaysia.
These efforts are expected to revitalise the mineral subsectors, generate
Sustainable Development Goals
economic benefits and promote natural resources conservation. and Adoption of Environmental,
Social and Governance Principles
Strategy B4:
Strengthening Water Management In realising the nation’s aspiration to achieve net-zero GHG emissions as
early as 2050, initiatives on SDGs and ESG will continue to be strengthened.
Efforts will be focused on intensifying the SDGs implementation at local
Improving Water Resources Governance level. Meanwhile, measures to promote ESG adoption by businesses will
be accelerated, in realising the energy transition Big Bold. A conducive ESG
A holistic policy on water will be introduced, in line with the Water Sector
ecosystem will be established to accelerate ESG adoption and disclosure
Transformation Agenda 2040 to ensure sustainable management of water. The
by businesses, particularly among SMEs. The ecosystem will include policy
policy, anchoring on the source-to-source approach, will incorporate various
direction and regulatory framework as well as financial and technical support
concepts, including the circular economy and green economy in promoting
to promote sustainable business practices. These efforts will promote
the use of water resources sustainably and eff iciently. Meanwhile, the
sustainable development for planetary health towards the attainment of
governance of the IRBM will be strengthened to enable better coordination
the 2030 Agenda.
as well as accelerate and monitor the implementation of the IRBM.
 Mid-Term Review of the Twelfth Malaysia Plan
8-22 Chapter 8: Advancing Sustainability

Strategy C1 Intensifying the SDGs Implementation Box 8-2

The Sustainable Development Goals
Roadmap Phase 2
Advancing the Adoption of Environmental, Social
Strategy C2
and Governance Principles The 2030 Agenda for Sustainable Development (2030 Agenda) is a global
commitment towards sustainable, resilient and inclusive development,
with 17 sustainable development goals (SDGs) and 169 targets. It is a
call for action to end poverty, protect the planet and ensure that all
Strategy C1: people live peaceful and prosperous lives. Malaysia is committed to
Intensifying the SDGs Implementation the implementation of the SDGs in three phases, between 2016 and
2030. Phase 1 coincided with the Eleventh Malaysia Plan, 2016-2020

Localising the SDGs and Phase 2 with the Twelfth Malaysia Plan, 2021-2025, while Phase
3 will coincide with the next plan.
Efforts will be undertaken to empower state governments, authorities
and communities at local level in localising the SDGs implementation to The SDGs Roadmap Phase 2 provides a clear direction on the
achieve the 2030 Agenda. The SDGs Roadmap Phase 2, 2021-2025 will contextualisation and implementation of the 2030 Agenda for the
guide the localisation of SDGs, while ensuring policy coherence across all period of 2021-2025. This Roadmap captures efforts undertaken in
levels of governments. This will intensify SDGs implementation through a the first two years of Phase 2 and will outline the initiatives in the
comprehensive top-down and bottom-up approach at local level. The summary remaining Twelfth Plan period. It provides an essential guidance to
of the SDGs Roadmap Phase 2, 2021-2025 is as shown in Box 8-2. shift the economy towards a high-income, high-productivity and
sustainable nation and serves as a primary reference for the SDGs
Enhancing the SDGs Reporting implementation in Malaysia, with the emphasis on localising SDGs.
In strengthening the SDGs implementation, the Roadmap provides
The SDGs reporting will be strengthened to document and highlight all specific action plans with clear objectives and quantitative targets,
initiatives undertaken by multi-stakeholders as well as serve as a guide for while aligning and integrating with national policies. The aspiration
policy intervention and implementation by ministries and agencies. The of Malaysia MADANI is embedded in the Roadmap Phase 2, in line
National SDGs Progress Monitoring System, known as SDGs Dashboard will with the principle of leaving no one behind.
be the single data source to coordinate the compilation of data based on SDGs
indicators. A mechanism to report the SDGs performance at the subnational The inputs to develop the SDGs Roadmap Phase 2 was derived from
level to the National SDG Council will be established. The SDGs achievement multiple stakeholders through a whole-of-nation approach, whereas
at the subnational level will also be presented at the United Nations High- the detailed mapping of the SDGs, targets, and indicators were based
Level Political Forum on Sustainable Development via the publication of the on existing Malaysia’s development policies. The Roadmap was built
Voluntary Subnational Reviews (VSR) or Voluntary Local Reviews (VLR). All upon and complements the SDGs Roadmap Phase 1, 2016-2020, the
states will be encouraged to produce at least one VSR or VLR to strengthen Voluntary National Reviews in 2017 and 2021, various SDGs Indicator
SDGs localisation. All these achievements will be collated for the next Malaysia Reports, and the United Nations Common Country Analysis.
Voluntary National Review report scheduled in 2025.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-23

Strategy C2:
Advancing the Adoption of Environmental,
Social and Governance Principles
Formulating National ESG Policy Framework
A national ESG policy framework will be formulated to provide clear direction
on ESG implementation among stakeholders. The policy framework will
enable coordination and acceleration of ESG disclosure among businesses
as well as increase confidence among investors. The CCPT, Principles-based
Sustainable and Responsible Investment Taxonomy as well as the Principles
of Good Governance for Government-Linked Investment Firms will lay the
groundwork in formulating this framework.

Introducing Guideline for ESG Disclosure

In encouraging and facilitating SMEs on ESG reporting, a guideline with
the 11 themes developed by Bursa Malaysia will be introduced for ESG
disclosure. The emissions management theme under this guideline will be
made as a minimum requirement for ESG disclosure by the businesses.
The introduction of a standard guideline for ESG will reduce inconsistent
reporting practices and lack of comparability between businesses. In addition,
companies subjected to global ESG obligation will be required to facilitate
the SMEs along the local supply chain in adhering to the compliance.

Ensuring Sustainable Financing for ESG Adoption

Sustainable financing is crucial to promote ESG adoption and facilitate
the growth of sustainable and socially responsible initiatives in business
practices. The SMEs will be encouraged to utilise the special funding facilities
for SMEs, including the LCTF as well as High Tech and Green Facility to
accelerate the transition to sustainable practices. A multi-pronged outreach
and communication programmes in collaboration with various stakeholders
will be implemented to increase awareness on sustainable financing.

Establishing a Centralised Sustainability

Reporting Platform
A centralised sustainability reporting platform will be established to assist
in streamlining reporting by the multinational corporations, public listed
companies and companies along the supply chains. This will allow ESG data
collation towards interoperability and informed decision making for potential
investment. In addition, the platform will enhance access to funding facilities
for businesses, especially SMEs, enable businesses benchmarking and facilitate
banks in developing suitable sustainable financing products. Initiative in
driving businesses towards ESG adoption is as shown in Box 8-3.
 Mid-Term Review of the Twelfth Malaysia Plan
8-24 Chapter 8: Advancing Sustainability

Box 8-3 The roll-out of Financial Times Stock Exchange-Russell Group (FTSE4Good)

Driving Businesses towards Index by Bursa Malaysia in 2014 includes ESG ratings for selected companies
that demonstrate sound ESG practices. The Index currently listed 98
Environmental, Social and Governance companies that met the stringent criteria set by FTSE Russell and consistently
Adoption as the Catalyst for a Sustainable outperformed other counters. In addition, all 954 public listed companies
(PLCs) in the Main Board and Access, Certainty, Efficiency (ACE) markets
Economy have already produced ESG disclosures. These PLCs are further required
by Bursa Malaysia to comply with the enhanced sustainability disclosures
Environmental, social and governance (ESG) is a framework that guides by 2024 for the Main Board, followed by ACE markets in 2025.
stakeholders to understand performance, risks and opportunities of an
organisation for business sustainability. There is an increasing expectation Multinational companies and PLCs are at the forefront on ESG disclosure,
and requirement for businesses to embrace sound ESG practices and while small and medium enterprises (SMEs) are still grappling with ESG
disclosures due to issues related to climate change, social aspects of adoption and disclosure. Therefore, the Ministry of Investment, Trade
employment and demand for good governance. The extensive adoption and Industry (MITI) is developing a national ESG industry framework for
of ESG among businesses will position Malaysia as a competitive trading the manufacturing sector. Bank Negara Malaysia has rolled out the Low
partner in the international market. Carbon Transition Facility to support the SMEs in adopting sustainable
and low carbon practices. Meanwhile, Bursa Malaysia is working with the
A survey by UN Global Compact (UNGC) Network Malaysia & Brunei in London Stock Exchange Group to develop the Centralised Sustainability
2022 indicated 45% of companies in Malaysia did not allocate budget for platform to facilitate greater transparency and consistency in sustainability
sustainability initiatives. Another survey by SME Corporation Malaysia disclosures, while providing wider access to green financing products. In
in 2022 revealed that approximately 40% of micro, small and medium addition, various initiatives including engagement and upskilling programmes
enterprises (MSMEs) were aware of ESG practices. Nevertheless, MSMEs are being undertaken by SME Corporation, UNGC and private sector to
lack information, talents and funds, with the environmental principle lagging promote companies at all levels in preparing the ESG reports. Meanwhile, the
behind social and governance principles, as shown in Figure 1. Ministry of Economy will drive various initiatives undertaken by ministries
and agencies as well as regulators and private sector in establishing a
Figure 1 conducive ESG ecosystem, focusing on SMEs.
ESG Implementation among MSMEs by
The commonly used ESG ecosystem is as shown in Figure 2. The ecosystem
Selected Indicators is based on the guiding principles, namely leveraging existing solutions with
minimal efforts to transition, providing minimum common guideline for
ESG disclosure, increasing utilisation of existing financing and incentives
E
Energy Management & Climate Change
Water Management as well as establishing an internationally recognised single reference data
Waste Management point on ESG. This ecosystem will promote ESG compliance, which will
Labour Practices & Standards
eventually increase competitive advantage for Malaysian companies and
S
Safety & Health
Employee Benefits
be the catalyst for a sustainable economy.
Corporate Social Responsibility
Culture & Commitments

G
Integrity / Anti-Corruption
Risk Governance & Internal Controls
Decision Making & Strategic Oversight
Disclosure, Transparency & Data Protection
0 20 40 60 80 100

Basic Advanced
Level of Practice

Source: SME Corporation Malaysia, 2022

 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-25

Focus Area D:
Figure 2 Strengthening the Enabling
Common ESG Ecosystem Environment
Policy Strengthening the enabling environment is crucial for Malaysia’s progress
and in advancing sustainability. A supportive and conducive environment will
Framework ensure the effectiveness of policies and strategies implementation. In the
remaining Twelfth Plan period, strategies will be focused on strengthening
Standards Financing sustainability governance as well as instilling sense of ownership and shared
and and responsibility. These strategies will require collaborative efforts of various
Guideline Incentives stakeholders in addressing environmental issues and challenges.
RM

ESG Strategy D1 Strengthening Sustainability Governance

Ecosystem
Awareness
Digital and
Platform Capability
Instilling Sense of Ownership and Shared
Building Strategy D2
Responsibility

Strategy D1:
Strengthening Sustainability Governance
Strengthening Biodiversity Governance
The establishment of a national centre of excellence on biodiversity
conservation and management by enhancing the existing institution, will be
explored to strengthen biodiversity governance. Meanwhile, the Malaysian
Platform for Business and Biodiversity, driven by the private sector will
be leveraged to encourage companies in adopting ESG for biodiversity
conservation. These efforts will contribute towards fulfilling commitments
under the Kunming-Montreal Global Biodiversity Framework.

Bolstering the SDGs Governance

The National SDGs Centre will continue to spearhead efforts in ensuring
effective coordination and collaboration among various stakeholders in
supporting the United Nations Decade of Actions to accelerate SDGs
implementation in Malaysia. Under the auspices of the National SDGs Council,
the working committees will be entrusted to play a more significant role in
coordinating, monitoring and reporting of SDGs implementation at all levels.
The implementation of SDGs will be further intensified by empowering a
lead ministry to champion each goal based on respective indicators and
targets. These efforts will ensure timely achievement of the 2030 Agenda.
 Mid-Term Review of the Twelfth Malaysia Plan
8-26 Chapter 8: Advancing Sustainability

Strategy D2: Enhancing Communication, Education and Public

Instilling Sense of Ownership and Shared Awareness Programmes
Responsibility In the remaining Twelfth Plan period, CEPA programmes on SDGs, ESG,
environment, natural resources and energy transition will be further
Intensifying Collaboration among Stakeholders enhanced to increase public awareness, sense of ownership and shared
responsibilities. This initiative will also create opportunities for businesses
Collaboration and partnership among stakeholders will be intensified to to grow towards sustainable economy. In order to increase awareness,
promote collective action and shared responsibility towards environmental enhance knowledge and skills as well as promote sustainable practices,
sustainability. This will be realised through the adoption of quadruple new media will be leveraged. CEPA programmes will be carried out with the
helix model to enable greater cooperation among the society, industry, collaboration and involvement of various stakeholders, including civil society
academia and government. Cooperation and policy dialogues on sustainable organisations, media outlets and local communities to nudge behavioural
development at the regional and international levels will be enhanced, shift among the rakyat.
while community involvement at local level will be encouraged to promote
knowledge sharing and social innovation. These measures will foster a
better collaborative effort in addressing and mitigating issues related to
sustainability.
 Mid-Term Review of the Twelfth Malaysia Plan
Chapter 8: Advancing Sustainability 8-27

Conclusion
Advancing sustainability is crucial for Malaysia’s long-term development and wellbeing.
During the review period of the Twelfth Plan, several measures were undertaken to
implement a low carbon, clean and resilient development, manage natural resources
including water and strengthen the enabling environment. Despite the progress made
in various areas, there are still challenges to be addressed in advancing the nation’s
sustainability. In the remaining Twelfth Plan period, efforts will be focused on accelerating
the implementation for low carbon, clean and resilient development, managing natural
resources more efficiently, advancing the implementation of SDGs and adoption of ESG
principles as well as strengthening the enabling environment. These concerted efforts
and effective measures will accelerate the advancement of green growth in achieving
sustainable development.
 Mid-Term Review of the Twelfth Malaysia Plan
8-28 Chapter 8: Advancing Sustainability

2025
Beyond
 Mid-Term Review of the Twelfth Malaysia Plan
Malaysia Beyond 2025: A Sustainable and Progressive Society B-1

Malaysia Beyond 2025

A Sustainable and Progressive Society

Introduction B-2

Key Concerns of the Rakyat B-3

Transition towards a Better Malaysia B-5

Just Society B-8
Inclusive Economic Growth B-10
Healthier Planet B-12
Good Governance B-13

Conclusion B-14
 Mid-Term Review of the Twelfth Malaysia Plan
B-2 Malaysia Beyond 2025: A Sustainable and Progressive Society

Introduction
We are living in a complex and rapidly changing world that is shrouded with uncertainties.
In these unprecedented times, Malaysia is at a critical juncture. We can either rest on
our laurels with our current socioeconomic conditions or strive towards building a better
Malaysia together by realising the vision of ‘Ekonomi MADANI: Memperkasa Rakyat’. Every
one of us must take bold steps and actions to become a sustainable and progressive society
built on our unique culture and values as well as patriotism and togetherness to elevate
the dignity and status of our nation.

Over the last six decades, the Malaysian economy has undergone a number of transformations
in the pursuit of growth and prosperity. Our once agricultural-based economy has shifted
towards one that is more manufacturing and services-based. Most recently, digitalisation
and advanced technology as well as environmental sustainability have influenced every
facet of our lives. As Malaysians live longer and fertility rates decline, we will undergo a
significant demographic change that will have massive implications on how households
and institutions behave and function. Rapid urbanisation and climate change will compel
us to reimagine how we live and interact with our surroundings. Above all, the future will
hold significant challenges in bringing forth a new generation that is ready to face what
is yet to come.

This chapter builds upon the foundation that has been laid in forging Malaysia MADANI.
It voices out key concerns that are at the heart of the rakyat. It then highlights the
aspirations of the rakyat from all walks of life for the betterment of society and the nation
for the years to come.
 Mid-Term Review of the Twelfth Malaysia Plan
Malaysia Beyond 2025: A Sustainable and Progressive Society B-3

Key Concerns of the Rakyat

Demographic Change and Urbanisation
Malaysia’s population stands at 32.7 million people in 2022 and is expected
to reach 36.9 million in 2030. Babies born in 2022 are expected to live
up to 2095 with an estimated life expectancy of 73.4 years. The total
fertility rate (TFR) has fallen significantly, from 4.9 births per woman in
As is To be
1
her reproductive age in 1970 to 1.6 in 2022. These trends have led to an
increase in the proportion of Malaysians aged over 65 years, from 3.3%
in 1970 to an estimated 7.3% in 2022, classifying Malaysia as an ageing
32.7 36.9 nation. Unless addressed effectively, a growing silver population can induce
million million higher healthcare costs and raise concerns surrounding old age poverty. The
Government is spending approximately RM900 million a year for elderly
Population
care. Along with this, non-communicable diseases (NCDs) also show an
increasing trend, placing a greater burden on Government expenditure for
healthcare services. The Ministry of Health and World Health Organisation

Urbanisation
75.1% 80% reported that in 2017 alone, a total of RM9.7 billion was spent to treat NCDs.

Rate Meanwhile, the urbanisation rate in 2020 was at 75.1% and is expected
to reach 80% in 2030, partly as a result of higher economic density and
better infrastructure development in urban areas. This raises concerns on
affordable and comfortable housing, decent cost of living and efficient
transportation, among others.

1
Preliminary data

As is To be
Income
1.8 3.2 In 2022, Malaysia’s gross domestic product (GDP) was RM1.8 trillion
trillion trillion and gross national income (GNI) at RM1.7 trillion with GNI per capita of
GDP RM52,968. However, time and again, the rakyat have expressed that slow
improvements in their standard of living do not correspond with the stellar
macroeconomic performance. By 2030, GNI per capita is expected to reach
RM85,115, whereas Malaysia’s GDP is projected to reach RM3.2 trillion.
RM52,968 RM85,115
RM

As we are approaching high-income nation status, economic prosperity

GNI
per Capita from this achievement must be felt to be more meaningful to the rakyat.
 Mid-Term Review of the Twelfth Malaysia Plan
B-4 Malaysia Beyond 2025: A Sustainable and Progressive Society

As is To be

Less than Climate Change

1.2°C
Global
Warming
1.5°C We cannot deny that the effects of climate change have become more
rampant and severe in recent times. Extreme weather has not only affected
the lives and livelihoods of thousands but also threatened our planetary
health. Global temperatures in 2022 were around 1.2°C above pre-industrial
Up to times. Realising the importance of climate action, Malaysia has committed to
29.4%a
45%b
reduce up to 45% of greenhouse gas (GHG) emissions intensity to GDP by
GHG
Reduction 2030 based on emissions intensity in 2005. Malaysia also aspires to achieve
the target of net-zero GHG emissions as early as 2050. As such, we should
adopt sustainable practices in our daily lives and actively participate in the
Note: a Greenhouse gas (GHG) emissions intensity to GDP in 2016 global initiative to pursue efforts in limiting the average global temperature
based on emissions intensity in 2005.
b
The nation’s commitment through Malaysia’s Nationally Determined rise to 1.5°C.
Contribution to the Paris Agreement of the United Nations Framework
Convention on Climate Change to reduce up to 45% GHG emissions
intensity to GDP by 2030 based on emission intensity in 2005.

As is To be Integrity and Effective Leadership

Malaysia’s rank in the Corruption Perceptions Index (CPI) has fallen from

Top 25
51st out of 180 countries in 2019 to 61st in 2022. An amelioration of this
Ranked 61st situation would see Malaysia being ranked in the top 25 countries in ten
CPI years. Meanwhile, in the Government Efficiency sub-index of the IMD World
Competitiveness Yearbook, Malaysia placed 29th out of 64 countries in 2023.
In 2022, Malaysia ranked 53rd out of 193 countries in the UN E-Government
Development Index (EGDI), and by 2030, Malaysia is expected to be in

Ranked 53rd Top 30 the top 30 positions. In realising the aspiration to build a better Malaysia,
embedded with the core values of MADANI, our governance ecosystem must
EGDI be more open and transparent spearheaded by transformational leaders.
 Mid-Term Review of the Twelfth Malaysia Plan
Malaysia Beyond 2025: A Sustainable and Progressive Society B-5

Transition towards a Better Malaysia

In the spirit of inclusivity, ideas were solicited from Malaysians from all walks of life. Their perceptions, ranging from economic prosperity to social wellbeing were
analysed to chart a more meaningful pathway for Malaysia. The following aspirations were built from these findings, together with analysis on government policies
and other studies.

The Beyond 2025 aspirations are clustered into four perspectives, namely just society, inclusive economic growth, healthier planet and good governance,
towards achieving a sustainable and progressive society. These aspirations are in line with the MTR of the Twelfth Plan, which focuses on achieving a
sustainable, prosperous, and high-income nation. The hopes of the rakyat will also be the basis for crafting the Thirteenth Malaysia Plan. A summary of
the aspirations for the next decade is as shown in Exhibit B-1.

Source: The Borneo Post

Exhibit 9-1 Mid-Term Review of the Twelfth Malaysia Plan
Malaysia
B-6 Beyond
Malaysia2025: A Sustainable
Beyond and Progressive
2025: A Sustainable Society
and Progressive Society
 Mid-Term Review of the Twelfth Malaysia Plan
Malaysia Beyond 2025: A Sustainable and Progressive Society B-7
 Mid-Term Review of the Twelfth Malaysia Plan
B-8 Malaysia Beyond 2025: A Sustainable and Progressive Society

Just Society
We, as Malaysians, share common universal values anchored on the Rukun Negara. Our strength lies in our diverse yet united society, with insaniah2 values. We also
experience safer and more peaceful lives as a result of the collective commitment of every one of us to ensure public safety. We lead dignified lives with full access
to diverse opportunities, including high quality healthcare and education as well as the ability to improve our standard of living. At the same time, Malaysians age
gracefully and continue contributing to the nation.

Insaniah Values Dignified Lives

Nurturing insaniah values begins at home at an early age. Families as an Everyone is treated with respect, regardless of our race, religion, gender
important social unit are supported by the surrounding environment to and origin, which subsequently fosters unity. Everyone, including those
nurture holistic growth of children towards becoming insaniah individuals. from disadvantaged and vulnerable groups, feels a profound sense of
In addition, our communities provide a conducive ecosystem to build all belonging and is empowered for greater social mobility. Greater coverage
the necessary characteristics. Our education system emphasises balanced of social protection insures us against socioeconomic risks. Additionally,
development along social, emotional, mental, spiritual, physical, cognitive we benefit from access to high quality products and services, as well as
and intellectual aspects. Subsequently, both formal and informal education fulfilling experiences. We no longer compromise on quality when it comes
fosters, among others, the development of life skills, problem-solving and to meeting our needs and wants. Enhanced rural development, sustained
critical thinking skills. In addition, individuals are encouraged and given the income generation and greater access to basic infrastructure reduce
support to build their own unique set of skills through continuous technical socioeconomic gaps. Smaller inequality gaps reflect that prosperity is shared
and vocational education and training to meet the escalating demands for more equitably among the rakyat.
advanced skills in high growth high value (HGHV) industries.

Safe Nation
We feel safe living in a peaceful nation. Safeguarding the homeland becomes
a shared responsibility of all to ensure Malaysia remains a safe place to live.
A comprehensive border security management, through the use of advanced
technology, ensures the country is well-protected from any form of threats
as well as upholds sovereignty and the rule of law. Improved crime index
rate reflects that public safety is well protected. Reduced cybersecurity
infringements strengthen confidence and trust among the rakyat in online
activities. Meanwhile, improved rehabilitation programmes reduce the
stigma toward former inmates, hence facilitate their reintegration into
society. The increased perception of feeling safe among the rakyat makes
Malaysia a country that is renowned to be a safe nation.

2
Individuals that possess good virtues including empathy, sincerity, humility,
well-mannered and trustworthy.
 Mid-Term Review of the Twelfth Malaysia Plan
Malaysia Beyond 2025: A Sustainable and Progressive Society B-9

Source: SCORE Sports Management Sdn Bhd

Advanced Healthcare Productive Ageing

We enjoy accessible and affordable healthcare services of the highest quality. Malaysians enjoy better health and longevity. Older persons contribute
Digitalisation and artificial intelligence (AI)-powered techniques are leveraged productively towards the socioeconomic development of the country
to improve efficiency of healthcare services for the rakyat. The threats of based on their capabilities. The ecosystem, including housing, working
communicable diseases and NCDs have reduced substantially, generating a conditions, healthcare and social protection are age-friendly for older
healthier and productive nation as well as lowering healthcare expenditures. persons. Community support enables productive and active ageing. In
Meanwhile, mental health issues are addressed comprehensively without addition, lifelong learning is well promoted for older persons to engage
discrimination, stigma or neglect. The presence of these combined vital in activities as well as acquire new knowledge and skills, supported by
factors enhances the quality of life of the rakyat. digitalisation, technology and innovation.
 Mid-Term Review of the Twelfth Malaysia Plan
B-10 Malaysia Beyond 2025: A Sustainable and Progressive Society

Inclusive Economic Growth

Malaysia is truly an inclusive and advanced economy. The presence of skilled Malaysians, along with HGHV local industries, position Malaysia as a premier
investment destination and global hubs. Cutting-edge technologies adopted and developed in the country increase productivity and enable domestic industries
to move up the value chain. Malaysian talents are well recognised for their competitiveness and highly valued for their contributions, while the workforce enjoys
progressive wages and a decent standard of living. Furthermore, innovative entrepreneurs are highly capable of introducing new products and services, creating
new wealth for the country. The Government’s diligent management of the economy through a fairer tax system and efficient spending enables the provision of
better services to the rakyat.

Advanced Nation Progressive Wages

Capitalising on our strengths as an advanced nation, we are able to maintain We value fair compensation which goes beyond just wages. Employees
our competitiveness and sustainable growth. Our country is more politically are properly remunerated according to their respective qualifications,
stable and well connected, with greater adoption of advanced technology experience, job complexity and productivity. By being rewarded fairly,
and digitalisation. We enjoy balanced regional development, inclusive employees feel motivated and valued, leading to improved productivity,
social protection and higher firm productivity, among others. We are able higher job satisfaction and increased loyalty. The financial freedom gained
to attract high quality investment and have sufficient future-ready talent. through higher disposable incomes provides greater financial security and
Best practices are adopted in both the public and private sectors, creating a flexibility, leading to a higher standard of living.
conducive work environment, higher job satisfaction, fair career advancement
and more work-life balance.
High Growth High Value Industries
Decent Standard of Living HGHV industries drive Malaysia’s robust economic growth. These industries
create high value in the economy by directing businesses towards sophisticated
We lead more comfortable lives as economic benefits trickle down and economic activities that focus on creating unique yet ubiquitous products
are spread equitably. Living in an advanced nation, we possess stronger and services. In addition, HGHV industries unlock higher productivity, rapid
purchasing power, attributed to higher incomes, effective price and exchange technological advancements and greater economic diversification. We
rate management as well as stable supply of essential goods and services. build a competitive ecosystem, thus attracting higher quality investments
Quality homes are made affordable for all income groups and can withstand that foster more high-end research, development, commercialisation and
the forces of nature. Most importantly, these homes are designed to innovation (R&D&C&I) activities. The prompt transition towards renewable
accommodate the number of individuals in households. Furthermore, high and sustainable sources of energy establishes Malaysia as a focal point
quality utilities, public infrastructure and facilities, such as transportation in the region and enables us to capitalise on opportunities centred on
networks, educational institutions, healthcare facilities and recreational environmental, social and governance (ESG) principles. The benefits of
amenities are not only adequately provided but also properly maintained. HGHV industries reach beyond the economy, as these industries create
employment opportunities that offer well-paying jobs, hence increase the
wellbeing of the rakyat.
 Mid-Term Review of the Twelfth Malaysia Plan
Malaysia Beyond 2025: A Sustainable and Progressive Society B-11

Innovative Entrepreneurs Fiscal Sustainability

Highly productive and digitally savvy entrepreneurs operate in a robust Our economy possesses a revenue base that is broad, reflecting greater
business environment that is seamlessly integrated into the global economic diversification. The tax system that is fairer for both individuals
marketplace. As a result of proliferated commercialisation of research and businesses promotes high compliance. Meanwhile, efficient and prudent
and development (R&D) as well as innovation activities, our country spending ensures lower public debt and higher reserves. The Government
houses cutting-edge indigenous technology. State-of-the-art business effectively utilises fiscal policy as a socioeconomic development tool to
and entrepreneurship education as well as continuous learning enable encourage industries with high growth potential, provide adequate soft and
entrepreneurs to introduce new products, services and business practices hard infrastructure, and deliver effective social welfare programmes, among
to the market. A supportive ecosystem nurtures entrepreneurs to bring others. With a sound fiscal position, the Government is able to mitigate
forth ground-breaking ideas and solutions for the betterment of the nation. economic shocks and fluctuations.
 Mid-Term Review of the Twelfth Malaysia Plan
B-12 Malaysia Beyond 2025: A Sustainable and Progressive Society

Healthier Planet
We understand the significance of our role in protecting and preserving the health of our planet in order to address the impacts of climate change. We realise that
climate change poses significant threats and thus engage in concerted efforts to minimise the impact, ensuring that we are all protected. Sustainable practices
and enhanced implementation of the circular economy are ingrained in our daily lives, enabling us to maximise efficient use of resources and minimise waste. The
transition towards renewable and sustainable sources of energy is seamless, economical and just, resulting in minimal impacts on the environment and the rakyat.

Eco-friendly Development Cleaner and Greener Nation

Socioeconomic development advances in tandem with the conservation Renewable and sustainable sources of energy power our economy and
and preservation of our environment. We hold ourselves accountable contribute to the reduction of GHG. Our industrial estates produce low
for the environmental impact of physical development by venturing into carbon emissions and manage waste effectively. We primarily commute
initiatives, including wider adoption of carbon accounting and commitment within and between cities by using sustainable and reliable public transport.
to GHG emission reduction. In addition, ESG principles are embedded More Malaysians embrace green transport, including new energy vehicles
in our development to ensure the benefits extend far beyond pecuniary and micromobility. Cleaner and greener urban and rural areas are more
gains. Meanwhile, we make environmentally conscious choices, opting for liveable for all.
sustainable practices in our daily lives, including consuming organic food
and biodegradable products, energy saving appliances as well as managing
and recycling waste.
Conservation of Natural Ecosystem
Malaysians are committed to the conservation of the natural ecosystem
Circular Economy and care for planetary health. Urban and rural developments incorporate
nature-based solutions, whilst protecting habitats of flora and fauna. Our
Our organisations and businesses are actively implementing the circular biodiversity conservation efforts serve as a reference point for researchers
economy along the value chain, from raw materials to sanitary landfills, all over the world. The sustainable management of our coastal and marine
resulting in reduced reliance on non-renewable sources as well as boosted ecosystems inspires other tropical countries in their ecological preservation
innovation and productivity. Our households adopt the circular economy by efforts.
implementing the refuse, reduce, reuse, recycle and recovery (5R) approach
and utilising resources efficiently. In addition, we are also more energy
sensitive and actively play our role as consumers in supporting Malaysia’s
aspiration of reaching net-zero GHG emissions as early as 2050.
 Mid-Term Review of the Twelfth Malaysia Plan
Malaysia Beyond 2025: A Sustainable and Progressive Society B-13

Good Governance
Malaysia practises good governance that promotes accountability, integrity and transparency as well as upholds the rule of law. Public policies are designed and
implemented based on the real needs of the rakyat, considering the complexity and social dynamics. We develop visionary, transformational and trustworthy
leaders. These leaders possess strong ethics, imbued with insaniah and ihsan values and guided by the Federal Constitution and Rukun Negara.

Open and Efficient Government Transformational Leaders

The Government advocates transparency on important decisions that Malaysian leaders are visionary, transformational and trustworthy. They
affect the rakyat and the country. We respect and uphold the doctrine of have clear foresight and are able to communicate their ideas well. Leaders
separation of powers among the three branches of government, namely are brave enough to make bold and tough decisions for the betterment of
executive, legislative and judiciary in the spirit of a mature democracy. the rakyat and the country. In achieving our common goals, these leaders
The Government continues to combat corruption, empower citizens, and inspire and motivate as well as emphasise the importance of upholding strong
adopt advanced technology, creating a lean and efficient administration. values and morals. They appreciate diversity and fairness by respecting and
Rules and regulations are up-to-date, accommodating to the needs, and accommodating the various needs of the rakyat, without compromising the
changing environment. In promoting an inclusive and open government, the core values as stated in the Federal Constitution and Rukun Negara.
whole-of-nation approach is widely practised. Civil servants are competent,
professional and passionate in serving the nation. They are continuously
provided with opportunities to enhance their skills and knowledge as well
as gain exposure internally and externally to drive good governance.

Human-centred Policies
In ensuring the efficacy of policy measures, local communities are highly
involved throughout the policy cycle to ensure that their respective
complexities and dynamic social needs are accounted for, leaving no one
behind. Policymakers at the Federal, state and local levels adopt social
anthropology approaches to better understand the people they serve.
Behavioural insights together with digitalisation and advanced technology
are widely practised and implemented to ensure programmes and projects
are well-received. The implementation of these programmes and projects
are monitored and refined accordingly.
Conclusion
The aspirations for a sustainable and progressive society represent the collective voices of
Malaysians from all walks of life. These aspirations not only focus on the transformation
of the economy, but also emphasise equitable opportunities and outcomes for all. They
also cover our commitment towards safeguarding planetary health. Good governance and
transformational leadership are crucial towards realising the aspirations in building a better
Malaysia together. Going beyond 2025, the hopes of the rakyat will be the starting point in
crafting our medium- to long-term socioeconomic development plans.
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Appendix
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-1

Appendix

Tables A-1 Population by Age, Ethnic and Strata, 2015-2025 A-18

Gross Domestic Product by Expenditure Category, A-2
2015-2025 (at constant 2015 prices) Labour Force, Employment and Job Creation, 2015-2025 A-19

Gross Domestic Product by Expenditure Category, A-3 Employment by Major Occupational Group, 2015-2025 A-20
2015-2025 (at current prices)
Employment by Skills Category and State, 2015-2025 A-21
Gross Domestic Product by Kind of Economic Activity, A-4
2015-2025 (at constant 2015 prices) Students Enrolment in Education Institution, 2015-2022 A-25

Gross Domestic Product Income Approach, 2015-2025 A-5 Students Intake in Higher Education Institution, 2015-2022 A-28
(at current prices)
Students Enrolment in Higher Education Institution, A-29
Gross Domestic Product by State and Kind of Economic A-6 2015-2022
Activity, 2015-2025 (at constant 2015 prices)
Students Output in Higher Education Institution, A-30
Merchandise Trade, 2015-2025 A-11 2015-2022

Balance of Payments, 2015-2025 A-12 Charts A-31

Incidence of Absolute Poverty by Strata and Ethnic, A-31
Malaysian Wellbeing Index, 2015-2025 A-13 2019 and 2022

Labour Productivity by Kind of Economic Activity, A-14 Incidence of Absolute Poverty by State, 2019 and 2022 A-32
2015-2025 (at constant 2015 prices)
Percentage of Household by Category of Income, A-33
Federal Government Financial Position, 2015-2025 A-15 2019 and 2022

Median Monthly Household Gross Income by Ethnic, A-16 National Household Income Category, 2019 and 2022 A-34
Strata and State, 2009-2022
Glossary A-35
Incidence of Absolute Poverty by Ethnic, Strata and State, A-17
2009-2022 Index A-45
 Mid-Term Review of the Twelfth Malaysia Plan
A-2 Appendix

Table 1
Gross Domestic Product by Expenditure Category, 2015-2025
(at constant 2015 prices)
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual
Target Plan Original
Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Private Expenditure 833,249 1,013,400 1,034,064 1,140,804 1,364,362 4.0 5.4 6.1 6.1 6.1

Consumption 635,099 802,747 817,756 908,974 1,085,249 4.8 5.8 6.4 6.1 6.2

Investment 198,150 210,653 216,308 231,830 279,113 1.2 3.8 4.9 6.4 5.8

Public Expenditure 260,295 250,243 253,942 265,928 284,191 -0.8 3.4 3.1 2.2 2.6

Consumption 154,021 179,721 191,268 199,943 210,228 3.1 3.7 5.5 1.7 3.2

Investment 106,274 70,522 62,674 65,985 73,964 -7.9 2.6 -3.3 3.9 1.0

Net Exports 88,592 87,070 83,578 82,743 91,461 -0.3 3.1 -2.5 3.4 1.0

Exports of Goods and

817,370 830,157 984,094 1,126,661 1,200,910 0.3 5.8 16.5 2.2 7.7
Services

Imports of Goods and

728,778 743,087 900,516 1,043,918 1,109,449 0.4 6.1 18.5 2.1 8.3
Services

Gross Domestic Product 1,176,941 1,346,249 1,390,644 1,510,939 1,757,315 2.7 4.5 ̴ 5.5 5.9 5.0 ̴ 5.5 5.0 ̴ 6.0

Note: The added total may differ due to rounding.

Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-3

Table 2
Gross Domestic Product by Expenditure Category, 2015-2025
(at current prices)
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual
Target Plan Original
Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Private Expenditure 833,249 1,087,709 1,128,881 1,285,698 1,675,567 5.5 8.1 8.7 9.2 9.0

Consumption 635,099 865,450 897,573 1,031,759 1,347,172 6.4 8.7 9.2 9.3 9.3

Investment 198,150 222,259 231,308 253,939 328,395 2.3 5.5 6.9 8.9 8.1

Public Expenditure 260,295 258,274 264,071 281,217 311,020 -0.2 4.1 4.3 3.4 3.8

Consumption 154,021 183,869 196,941 208,887 224,172 3.6 4.4 6.6 2.4 4.0

Investment 106,274 74,405 67,130 72,330 86,848 -6.9 3.5 -1.4 6.3 3.1

Net Exports 88,592 90,325 111,973 129,632 158,057 0.4 3.1 19.8 6.8 11.8

Exports of Goods and

817,370 873,477 1,093,895 1,378,452 1,572,466 1.3 6.5 25.6 4.5 12.5
Services

Imports of Goods and

728,778 783,152 981,922 1,248,820 1,414,409 1.4 6.9 26.3 4.2 12.6
Services

Gross Domestic
1,176,941 1,418,491 1,548,898 1,791,358 2,162,336 3.8 7.4 12.4 6.5 8.8
Product

Gross National Income 1,144,829 1,389,971 1,506,745 1,731,944 2,079,210 4.0 7.4 11.6 6.3 8.4

Gross National Income

Per Capita

RM 36,710 42,838 46,253 52,968 61,000 3.1 6.4 11.2 4.6 7.2

US$ 9,399 10,191 11,163 12,035 14,250 1.6 8.0 8.7 5.8 6.9

Inflation, % 2.1 -1.2 2.5 3.3 - 1.3 2.7 2.9 2.8 ̴ 3.8 2.8 ̴ 3.8

Unemployment, % end
3.1 4.5 4.6 3.9 3.3 - 4.0 - - -
period

Note: The added total may differ due to rounding.

Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
A-4 Appendix

Table 3
Gross Domestic Product by Kind of Economic Activity, 2015-2025
(at constant 2015 prices)
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual
Target Plan Original
Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Agriculture 97,539 99,109 99,000 99,073 107,209 0.3 3.8 -0.02 2.7 1.6

Mining and Quarrying 103,059 92,879 93,717 96,199 105,341 -2.1 2.6 1.8 3.1 2.6

Manufacturing 262,381 307,606 336,839 364,131 420,170 3.2 5.7 8.8 4.9 6.4

Construction 55,381 53,616 50,889 53,441 65,003 -0.6 4.2 -0.2 6.7 3.9

Services 643,883 777,693 794,552 881,310 1,041,281 3.8 5.2 6.5 5.7 6.0

Electricity, Gas and Water 31,710 37,950 39,025 40,337 46,329 3.7 4.8 3.1 4.7 4.1

Wholesale and Retail

Trade, Food & Beverage 220,242 265,100 265,875 308,058 369,775 3.8 5.0 7.8 6.3 6.9
and Accommodation

Transport and Storage,

Information and 104,360 131,281 137,292 155,375 190,315 4.7 7.2 8.8 7.0 7.7
Communication

Finance, Insurance, Real

Estate and Business 130,064 154,867 158,927 171,810 203,154 3.6 5.7 5.3 5.7 5.6
Services

Government Services 99,783 124,699 131,484 138,015 155,482 4.6 3.7 5.2 4.1 4.5

Other Services 57,724 63,796 61,950 67,715 76,226 2.0 3.7 3.0 4.0 3.6

Plus : Import Duties 14,699 15,346 15,646 16,785 18,311 0.9 2.8 4.6 2.9 3.6

Gross Domestic Product 1,176,942 1,346,249 1,390,643 1,510,939 1,757,315 2.7 4.5 ̴ 5.5 5.9 5.0 ̴ 5.5 5.0 ̴ 6.0

Note: The added total may differ due to rounding.

Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-5

Table 4
Gross Domestic Product Income Approach, 2015-2025
(at current prices)
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual
Target Plan Original
Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Compensation of Employees 412,240 529,996 544,165 579,709 864,934 5.2 8.9 4.6 14.3 10.3

Gross Operating Surplus 709,048 849,920 969,014 1,200,643 1,257,103 3.7 6.3 18.9 1.5 8.1

Taxes Less Subsidies 55,653 38,575 35,720 11,005 40,298 -7.1 8.5 -46.6 54.1 0.9

Gross Domestic Product 1,176,941 1,418,491 1,548,898 1,791,358 2,162,336 3.8 7.4 12.4 6.5 8.8

Share of GDP, %

Compensation of Employees 35.0 37.4 35.1 32.4 40.0 - - - - -

Gross Operating Surplus 60.2 59.9 62.6 67.0 58.1 - - - - -

Taxes Less Subsidies 4.7 2.7 2.3 0.6 1.9 - - - - -

Note: The added total may differ due to rounding.

Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
A-6 Appendix

Table 5
Gross Domestic Product by State and Kind of Economic Activity, 2015-2025
(at constant 2015 prices)
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual Original
Target Plan Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Johor

Agriculture 15,610 16,857 16,980 17,304 18,178 1.5 3.2 1.3 1.7 1.5

Mining and Quarrying 476 658 587 631 855 6.7 5.1 -2.0 10.7 5.4

Construction 7,269 4,176 3,424 3,967 5,038 -10.5 2.1 -2.5 8.3 3.8

Manufacturing 32,359 38,651 40,727 42,949 52,016 3.6 5.9 5.4 6.6 6.1

Services 53,058 66,406 68,316 75,672 89,109 4.6 5.3 6.7 5.6 6.1

GDP 110,002 128,074 131,303 142,056 166,875 3.1 5.1 5.3 5.5 5.4

GDP Per Capita 30,469 33,861 36,505 41,001 48,024

Kedah

Agriculture 5,423 5,518 5,667 5,614 5,648 0.3 2.9 0.9 0.2 0.5

Mining and Quarrying 83 112 103 111 155 6.1 4.6 -0.3 11.6 6.7

Construction 863 1,113 1,019 1,206 1,540 5.2 4.4 4.1 8.5 6.7

Manufacturing 11,427 13,619 14,465 15,633 18,039 3.6 5.5 7.1 4.9 5.8

Services 21,465 25,434 25,933 28,024 36,724 3.5 7.3 5.0 9.4 7.6

GDP 39,550 46,042 47,511 50,937 62,498 3.1 6.2 5.2 7.1 6.3

GDP Per Capita 18,864 22,701 23,597 26,061 32,142

Kelantan

Agriculture 5,102 5,818 5,888 5,601 6,375 2.7 5.2 -1.9 4.4 1.8

Mining and Quarrying 229 342 353 382 435 8.3 5.3 5.7 4.4 4.9

Construction 445 396 401 480 511 -2.3 3.2 10.1 2.1 5.2

Manufacturing 1,147 1,234 1,260 1,299 1,507 1.5 5.2 2.6 5.1 4.1

Services 14,455 17,374 17,862 19,086 23,156 3.7 7.3 4.8 6.7 5.9

GDP 21,408 25,188 25,797 26,894 32,036 3.3 6.7 3.3 6.0 4.9

GDP Per Capita 12,159 14,956 15,598 16,555 19,559

 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-7

Table 5
Gross Domestic Product by State and Kind of Economic Activity, 2015-2025
(at constant 2015 prices)–cont.
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual Original
Target Plan Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Melaka
Agriculture 4,141 4,584 4,556 4,526 4,898 2.0 3.8 -0.6 2.7 1.3
Mining and Quarrying 44 59 55 60 78 6.1 4.7 0.2 9.6 5.7
Construction 947 992 897 943 1,274 0.9 5.7 -2.5 10.6 5.1
Manufacturing 14,068 15,322 15,835 16,905 20,751 1.7 5.6 5.0 7.1 6.3
Services 16,811 19,970 20,497 22,988 26,337 3.5 4.3 7.3 4.6 5.7
GDP 36,077 41,030 41,900 45,488 53,411 2.6 4.8 5.3 5.5 5.4
GDP Per Capita 40,582 42,880 44,679 50,363 58,703

Negeri Sembilan

Agriculture 3,235 3,319 3,306 3,287 3,772 0.5 4.4 -0.5 4.7 2.6

Mining and Quarrying 165 200 186 201 260 3.8 4.4 0.3 9.0 5.5

Construction 1,339 1,370 1,366 1,445 1,757 0.5 5.3 2.7 6.7 5.1

Manufacturing 15,678 16,761 17,962 19,394 22,379 1.3 5.1 7.6 4.9 6.0

Services 18,951 23,822 24,352 26,195 30,064 4.7 5.0 4.9 4.7 4.8

GDP 40,186 46,336 47,783 50,840 58,575 2.9 5.0 4.7 4.8 4.8

GDP Per Capita 36,908 41,292 44,552 49,851 57,793

Pahang

Agriculture 11,665 13,001 13,000 13,633 15,226 2.2 4.5 2.4 3.8 3.2

Mining and Quarrying 1,311 614 507 557 691 -14.1 4.0 -4.8 7.5 2.4

Construction 2,105 1,352 1,603 1,586 1,462 -8.5 3.8 8.3 -2.7 1.6

Manufacturing 10,417 12,246 12,990 13,745 15,950 3.3 5.8 5.9 5.1 5.4

Services 23,885 27,597 27,252 31,823 42,147 2.9 7.6 7.4 9.8 8.8

GDP 49,450 54,885 55,403 61,395 75,533 2.1 6.3 5.8 7.2 6.6

GDP Per Capita 30,754 38,022 41,335 47,127 58,055

 Mid-Term Review of the Twelfth Malaysia Plan
A-8 Appendix

Table 5
Gross Domestic Product by State and Kind of Economic Activity, 2015-2025
(at constant 2015 prices)–cont.
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual Original
Target Plan Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Pulau Pinang

Agriculture 2,084 2,049 2,002 2,069 2,015 -0.3 1.3 0.5 -0.9 -0.3

Mining and Quarrying 124 139 130 140 159 2.3 4.3 0.4 4.2 2.7

Construction 2,712 2,234 2,522 2,721 2,364 -3.8 0.8 10.4 -4.6 1.1

Manufacturing 33,597 41,627 46,768 54,182 61,161 4.4 5.7 14.1 4.1 8.0

Services 38,917 45,979 47,064 52,371 61,859 3.4 5.5 6.7 5.7 6.1

GDP 78,146 92,691 99,111 112,126 128,265 3.5 5.4 10.0 4.6 6.7

GDP Per Capita 46,020 55,783 59,733 69,591 79,333

Perak

Agriculture 10,352 11,430 11,798 11,338 12,166 2.0 4.3 -0.4 2.4 1.3

Mining and Quarrying 354 432 402 438 536 4.1 4.4 0.6 7.0 4.4

Construction 2,578 2,057 1,920 2,038 2,152 -4.4 1.1 -0.5 1.8 0.9

Manufacturing 11,190 14,156 15,453 15,606 18,008 4.8 5.8 5.0 4.9 4.9

Services 38,628 46,137 47,314 50,742 61,760 3.6 6.0 4.9 6.8 6.0

GDP 63,176 74,264 76,923 80,213 94,680 3.3 5.6 3.9 5.7 5.0

GDP Per Capita 25,610 31,633 34,399 37,031 44,374

Perlis

Agriculture 1,161 1,088 1,024 1,046 1,403 -1.3 5.4 -1.9 10.3 5.2

Mining and Quarrying 32 30 29 31 35 -1.1 2.9 0.9 4.3 2.9

Construction 193 151 151 153 186 -4.9 3.2 0.6 6.7 4.3

Manufacturing 458 444 468 489 564 -0.6 4.0 5.0 4.9 4.9

Services 3,414 4,032 4,121 4,354 5,189 3.4 6.2 3.9 6.0 5.2

GDP 5,353 5,785 5,868 6,200 7,533 1.6 5.8 3.5 6.7 5.4

GDP Per Capita 21,540 21,117 21,522 23,126 28,539

 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-9

Table 5
Gross Domestic Product by State and Kind of Economic Activity, 2015-2025
(at constant 2015 prices)–cont.
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual Original
Target Plan Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Selangor

Agriculture 4,076 4,721 4,954 4,874 5,485 3.0 5.5 1.6 4.0 3.0

Mining and Quarrying 499 755 708 777 950 8.7 5.1 1.4 6.9 4.7

Construction 16,674 18,665 17,493 18,203 22,728 2.3 4.2 -1.2 7.7 4.0

Manufacturing 75,537 95,114 107,531 117,207 135,245 4.7 6.1 11.0 4.9 7.3

Services 163,967 200,127 205,213 233,125 265,852 4.1 3.6 7.9 4.5 5.8

GDP 268,825 326,805 343,983 384,871 441,857 4.0 4.3 8.5 4.7 6.2

GDP Per Capita 43,513 48,591 51,980 59,804 67,296

Terengganu

Agriculture 2,765 2,903 2,753 2,623 3,046 1.0 4.3 -4.9 5.1 1.0

Mining and Quarrying 146 176 178 192 208 3.8 4.3 4.5 2.7 3.4

Construction 904 1,080 1,107 1,145 1,329 3.6 4.6 2.9 5.1 4.2

Manufacturing 11,296 11,862 12,994 14,061 15,898 1.0 5.4 8.9 4.2 6.0

Services 15,965 17,943 18,190 19,280 25,073 2.4 7.8 3.7 9.2 6.9

GDP 31,124 33,994 35,238 37,309 45,564 1.8 6.6 4.8 6.9 6.0

GDP Per Capita 26,808 29,508 30,966 32,210 38,935

Sabah

Agriculture 14,817 12,798 12,520 12,492 13,837 -2.9 4.0 -1.2 3.5 1.6

Mining and Quarrying 18,207 19,936 20,574 20,307 22,227 1.8 3.7 0.9 3.1 2.2

Construction 2,446 2,197 2,370 2,517 2,555 -2.1 4.4 7.0 0.5 3.1

Manufacturing 6,266 6,042 5,931 5,780 6,818 -0.7 4.1 -2.2 5.7 2.4

Services 31,755 36,597 37,364 40,565 50,570 2.9 9.1 5.3 7.6 6.7

GDP 73,776 77,840 78,999 81,931 96,318 1.1 6.5 2.6 5.5 4.4

GDP Per Capita 19,830 24,657 30,022 35,766 39,808

 Mid-Term Review of the Twelfth Malaysia Plan
A-10 Appendix

Table 5
Gross Domestic Product by State and Kind of Economic Activity, 2015-2025
(at constant 2015 prices)–cont.
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual Original
Target Plan Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Sarawak
Agriculture 16,988 14,907 14,434 14,542 15,025 -2.6 2.3 -1.2 1.1 0.2
Mining and Quarrying 29,852 28,591 27,875 29,475 32,975 -0.9 2.5 1.5 3.8 2.9
Construction 3,843 4,082 4,497 4,676 4,582 1.2 3.3 7.0 -0.7 2.3
Manufacturing 32,128 33,428 37,122 39,207 42,979 0.8 5.3 8.3 3.1 5.2
Services 38,370 46,160 47,288 51,832 67,764 3.8 7.9 6.0 9.3 8.0
GDP 121,585 127,556 131,572 140,161 163,799 1.0 5.3 4.8 5.3 5.1
GDP Per Capita 45,006 55,907 66,027 80,772 93,864

FT of Kuala Lumpur1
Agriculture 2 2 2 2 2 1.9 3.8 1.8 0.9 1.3
Mining and Quarrying 117 138 134 145 165 3.3 4.0 2.2 4.4 3.5
Construction 12,915 13,589 11,974 12,215 17,345 1.0 5.7 -5.2 12.4 5.0
Manufacturing 5,641 5,733 5,978 6,297 7,266 0.3 4.8 4.8 4.9 4.9
Services 159,752 194,204 197,788 218,981 248,292 4.0 4.0 6.2 4.3 5.0
GDP 180,865 217,447 219,706 239,811 275,431 3.8 4.2 5.0 4.7 4.8
GDP Per Capita 97,060 108,985 112,084 126,423 144,358

FT of Labuan
Agriculture 118 115 117 121 131 -0.5 5.0 2.5 2.7 2.6
Mining and Quarrying 0 0 0 0 0 0.0 0.0 0.0 0.0 0.0
Construction 148 163 143 148 180 1.8 3.7 -4.6 6.7 2.1
Manufacturing 1,168 1,368 1,354 1,377 1,589 3.2 5.6 0.3 4.9 3.0
Services 4,490 5,910 5,997 6,274 7,387 5.6 5.5 3.0 5.6 4.6
GDP 5,999 7,613 7,650 7,954 9,327 4.9 5.5 2.2 5.5 4.1
GDP Per Capita 63,069 80,602 81,652 85,522 99,135
Notes: 1
Includes FT of Putrajaya.
The added total may differ due to rounding.
GDP per capita refers to value at current prices.
Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-11

Table 6
Merchandise Trade, 2015-2025
RM million Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual
Target Plan Original
Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Gross Exports 777,355 983,827 1,241,022 1,550,009 1,729,828 4.8 5.0 25.5 3.7 11.9

Agriculture 67,247 71,724 98,093 120,903 125,572 1.3 4.8 29.8 1.3 11.9

Mining 80,194 58,414 69,757 117,346 127,661 -6.1 7.3 41.7 2.8 16.9

Manufacturing 625,429 849,498 1,068,431 1,304,668 1,467,781 6.3 4.9 23.9 4.0 11.6

Others 4,485 4,191 4,740 7,092 8,814 -1.3 0.3 30.1 7.5 16.0

Gross Imports 685,778 800,481 987,344 1,293,811 1,439,802 3.1 5.9 27.1 3.6 12.5

Retained Imports 582,594 615,852 758,323 965,836 1,072,927 1.1 6.1 25.2 3.6 11.7

Capital Goods 95,551 90,733 103,823 120,231 135,997 -1.0 5.5 15.1 4.2 8.4

Intermediate Goods 399,526 429,190 545,801 706,551 783,523 1.4 6.5 28.3 3.5 12.8

Consumption Goods 62,430 74,134 83,893 104,017 115,001 3.5 5.4 18.5 3.4 9.2

Others1 25,087 21,794 24,805 35,036 38,407 -2.8 4.1 26.8 3.1 12.0

Imports for Re-exports 103,184 184,630 229,021 327,975 366,876 12.3 5.3 33.3 3.8 14.7

Total Trade 1,463,134 1,784,308 2,228,366 2,843,821 3,169,631 4.0 5.4 26.2 3.7 12.2

Share to GDP, % 124.3 125.8 143.9 158.8 146.6 - - - - -

Trade Balance 91,577 183,345 253,678 256,198 290,026 14.9 0.7 18.2 4.2 9.6

Note: 1
Dual use goods, goods not elsewhere stated and transactions below RM5,000.
Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
A-12 Appendix

Table 7
Balance of Payments, 2015-2025
RM million
Item Actual Revised Target
2015 2020 2021 2022 2025

Goods and Services, net 88,592 90,325 111,973 129,632 158,057

Goods, net 109,224 137,486 177,634 186,029 205,233
Exports 681,275 780,511 1,005,841 1,238,180 1,363,105
Imports 572,051 643,024 828,206 1,052,151 1,157,872
Services, net -20,632 -47,161 -65,661 -56,397 -47,176
Transportation -24,565 -27,427 -31,863 -34,045 -38,463
Travel 26,941 -7,569 -14,857 -1,156 15,488
Other Services -22,405 -11,551 -18,037 -20,531 -23,349
Government Transaction n.i.e.1 -603 -614 -904 -665 -851
Primary Income, net -32,112 -28,520 -42,153 -59,414 -83,127
Compensation of Employees -5,595 -8,061 -6,659 -7,235 -11,362
Investment Income -26,517 -20,459 -35,494 -52,179 -71,765
Secondary Income, net -21,325 -2,714 -9,642 -15,120 -23,772

Current Account Balance 35,155 59,091 60,178 55,098 51,158

% to GNI 3.1 4.3 4.0 3.2 2.5

Capital Account, net -1,136 -419 -469 -454 -

Capital Transfers -8 -242 -204 -226 -
Non-Produced Non-Financial Assets -1,127 -178 -264 -228 -
Financial Account, net -55,350 -77,396 16,242 12,356 -
Direct Investment -1,810 3,111 31,065 15,920 -
Abroad -41,187 -10,170 -19,373 -58,633 -
In Malaysia 39,377 13,281 50,438 74,552 -
Portfolio Investment -26,122 -49,584 18,802 -50,560 -
Other Investment -26,755 -31,330 -31,375 49,208 -
Public Sector -1,878 -324 -177 -268 -
Private Sector -24,877 -31,006 -31,197 49,476 -
Balance on Capital and Financial Account -56,486 -77,815 15,774 11,902 -
Net Errors and Omissions -32,222 -572 -30,266 -13,641 -

Overall Balance -53,553 -19,297 45,686 53,359 -

BNM International Reserves, net 409,117 432,244 486,793 503,285 -
Months of Retained Imports 8.5 8.6 7.7 5.2 -
Notes: 1
n.i.e. - not included elsewhere.
Numbers are calculated according to Balance of Payments Manual 6 (BPM6).
Source: Bank Negara Malaysia, Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-13

Table 8
Malaysian Wellbeing Index, 2015-2025
Index Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual Estimate Original
Target Plan Progress1 Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Economic Wellbeing 124.1 126.0 127.2 129.3 134.4 0.3 1.1 1.3 1.3 1.3

Transport 125.1 127.2 125.8 127.3 131.0 0.3 1.6 0.04 1.0 0.6

Communication 127.6 129.4 131.1 132.8 136.5 0.3 1.2 1.3 0.9 1.1

Working Life 115.5 123.4 124.7 126.7 132.5 1.3 1.1 1.3 1.5 1.4

Income and Distribution 129.6 117.8 120.6 123.9 129.9 -1.9 0.9 2.6 1.6 2.0

Education 122.8 132.2 133.8 135.8 141.9 1.5 0.7 1.4 1.5 1.4

Social Wellbeing 111.9 113.1 114.7 116.5 122.0 0.2 1.2 1.5 1.6 1.5

Social Participation 119.3 132.8 130.9 132.1 135.7 2.2 1.8 -0.3 0.9 0.4

Environment 103.9 105.6 108.5 111.6 121.1 0.3 1.6 2.8 2.8 2.8

Health 101.7 110.4 108.4 111.7 120.5 1.6 1.4 0.6 2.6 1.8

Housing 112.7 119.6 120.8 122.4 128.0 1.2 1.3 1.2 1.5 1.4

Governance 116.9 117.7 125.7 126.5 128.9 0.1 1.2 3.6 0.6 1.8

Public Safety 119.0 134.1 138.7 139.0 140.1 2.4 1.1 1.8 0.3 0.9

Family 99.7 97.7 98.9 99.8 102.9 -0.4 1.0 1.1 1.0 1.0

Entertainment and
126.8 109.8 104.5 107.7 119.7 -2.8 0.9 -1.0 3.6 1.7
Recreation

Culture 107.0 90.2 96.0 97.6 101.4 -3.4 0.8 4.0 1.3 2.4

Malaysian Wellbeing Index 116.3 117.7 119.2 121.1 126.4 0.2 1.2 1.4 1.5 1.4

Note: 1
Ministry of Economy estimates.
Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
A-14 Appendix

Table 9
Labour Productivity by Kind of Economic Activity, 2015-2025
(at constant 2015 prices)
RM Value Added Per Worker Average Annual Growth Rate, %

Twelfth Plan
Revised Eleventh
Item Actual
Target Plan Original
Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Agriculture 51,984 53,116 52,840 53,240 56,890 0.4 2.5 0.1 2.2 1.4

Mining and
1,303,562 1,259,637 1,249,966 1,267,278 1,449,300 -0.7 1.5 0.3 4.6 2.8
Quarrying

Manufacturing 110,305 120,550 128,662 133,902 148,210 1.8 4.3 5.4 3.4 4.2

Construction 36,496 38,322 36,732 38,658 47,290 1.0 3.8 0.4 6.9 4.3

Services 79,095 84,480 85,089 90,636 101,770 1.3 3.6 3.6 3.9 3.8

Overall 84,114 89,179 90,952 95,858 107,170 1.2 3.6 3.7 3.8 3.7

Source: Department of Statistics Malaysia and Ministry of Economy

 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-15

Table 10
Federal Government Financial Position, 2015-2025
RM million RM million

Twelfth Plan
Revised Eleventh
Item Actual
Target Plan Original
Progress Revised Target
Target

2015 2020 2021 2022 2025 2016-2020 2021-2025 2021-2022 2023-2025 2021-2025

Revenue 219,089 225,070 233,752 294,357 316,384 1,155,194 1,227,816 528,109 904,832 1,432,941

Operating Expenditure 216,998 224,600 231,515 292,693 311,263 1,146,574 1,231,517 524,208 901,168 1,425,376

Current Balance 2,091 470 2,237 1,664 5,121 8,620 -3,701 3,901 3,665 7,565

Gross Development Expenditure 40,768 51,360 64,257 71,574 73,283 248,507 400,200 135,831 264,376 400,207

Less: Loan Recoveries 1,483 1,259 990 1,407 1,046 6,849 3,100 2,397 2,779 5,176

Net Development Expenditure 39,285 50,101 63,267 70,167 72,236 241,658 397,100 133,434 261,597 395,031

COVID-19 Fund - 38,019 37,711 30,979 - 38,019 47,000 68,690 - 68,690

Overall Balance -37,194 -87,650 -98,741 -99,482 -67,116 -271,057 -447,801 -198,223 -257,932 -456,155

% to GDP -3.2 -6.2 -6.4 -5.6 -3.5 ̴ -3.0 -6.2 -3.5 ̴ -3.0 -5.6 -3.5 ̴ -3.0 -3.5 ̴ -3.0

Source: Ministry of Finance and Ministry of Economy

 Mid-Term Review of the Twelfth Malaysia Plan
A-16 Appendix

Table 11
Median Monthly Household Gross Income by Ethnic, Strata and State,
2009-2022
Median Monthly Household Gross Income, RM
Item
2009 2012 2014 2016 2019 2022

Malaysia 2,841 3,626 4,585 5,228 5,873 6,338

Ethnic
Bumiputera 2,534 3,282 4,214 4,846 5,420 5,793
Chinese 3,643 4,643 5,708 6,582 7,391 8,167
Indian 2,853 3,676 4,627 5,428 5,981 6,627
Others 2,162 2,762 4,372 3,780 4,181 4,339

Strata
Urban 3,435 4,238 5,156 5,860 6,561 7,243
Rural 1,836 2,372 3,123 3,471 3,828 4,094

State
Johor 2,958 3,650 5,197 5,652 6,427 6,879
Kedah 1,966 2,633 3,451 3,811 4,325 4,402
Kelantan 1,713 2,276 2,716 3,079 3,563 3,614
Melaka 3,005 3,923 5,029 5,588 6,054 6,210
Negeri Sembilan 2,711 3,575 4,128 4,579 5,005 5,226
Pahang 2,479 3,067 3,389 3,979 4,440 4,753
Pulau Pinang 3,200 4,039 4,702 5,409 6,169 6,502
Perak 2,094 2,665 3,451 4,006 4,273 4,494
Perlis 1,832 2,387 3,500 4,204 4,594 4,713
Selangor 4,306 5,353 6,214 7,225 8,210 9,983
Terengganu 2,096 3,034 3,777 4,694 5,545 5,878
Sabah 2,066 2,860 3,745 4,110 4,235 4,577
Sarawak 2,394 3,047 3,778 4,163 4,544 4,978
FT of Kuala Lumpur 4,409 5,847 7,620 9,073 10,549 10,234
FT of Labuan 3,498 5,063 5,684 5,928 6,726 6,904
FT of Putrajaya 5,450 6,486 7,512 8,275 9,983 10,056
Note: Data is based on Malaysian citizens.
Source: Department of Statistics Malaysia
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-17

Table 12
Incidence of Absolute Poverty by Ethnic, Strata and State, 2009-2022
Incidence of Absolute Poverty, %
Item
2009 2012 2014 2016 2019 2022

Malaysia 3.8 1.7 0.6 7.6 5.6 6.2

Ethnic

Bumiputera 5.3 2.2 0.8 9.7 7.2 7.9

Chinese 0.6 0.3 0.1 2.2 1.4 1.9

Indian 2.5 1.8 0.6 5.5 4.8 5.4

Others 6.7 1.5 0.9 20.5 13.5 6.5

Strata

Urban 1.7 1.0 0.3 4.8 3.8 4.5

Rural 8.4 3.4 1.6 17.5 12.4 12.0

State

Johor 1.3 0.9 0.0 6.2 3.9 4.6

Kedah 5.3 1.7 0.3 14.3 8.8 9.0

Kelantan 4.8 2.7 0.9 19.5 12.4 13.2

Melaka 0.5 0.1 0.1 2.6 3.9 4.2

Negeri Sembilan 0.7 0.5 0.4 6.4 4.3 4.4

Pahang 2.1 1.3 0.7 9.2 4.3 6.3

Pulau Pinang 1.2 0.6 0.3 2.2 1.9 2.0

Perak 3.5 1.5 0.7 8.2 7.3 7.5

Perlis 6.0 1.9 0.2 7.2 3.9 4.0

Selangor 0.7 0.4 0.2 0.8 1.2 1.5

Terengganu 4.0 1.7 0.6 6.8 6.1 6.2

Sabah 19.7 8.1 4.0 23.9 19.5 19.7

Sarawak 5.3 2.4 0.9 11.9 9.0 10.8

FT of Kuala Lumpur 0.7 0.8 0.1 0.8 0.2 1.4

FT of Labuan 4.3 1.1 1.1 6.8 3.1 2.5

FT of Putrajaya 0.0 0.0 0.0 0.0 0.4 0.1

Note: Starting 2016 onwards, calculation of incidence of absolute poverty was based on 2019 PLI methodology.
Source: Department of Statistics Malaysia
 Mid-Term Review of the Twelfth Malaysia Plan
A-18 Appendix

Table 13
Population by Age, Ethnic and Strata, 2015-2025
Actual Revised Target Average Annual Growth
2015 2020 2021 2022 2025 Rate, %
Item
Eleventh Twelfth
% to % to % to % to % to
Million Million Million Million Million Plan Plan
Total Total Total Total Total
2016-2020 2021-2025

Total Population 31.2 100.0 32.4 100.0 32.6 100.0 32.7 100.0 34.3 100.0 0.9 1.1

Age Structure

0-14 years 7.8 24.9 7.8 24.0 7.7 23.6 7.6 23.2 7.7 22.4 -0.5 -0.3

15-64 years 21.6 69.2 22.5 69.3 22.6 69.3 22.7 69.5 24.0 70.0 1.1 1.3

65 years and above 1.8 5.9 2.2 6.8 2.3 7.1 2.4 7.3 2.6 7.6 4.9 3.4

Ethnic

Citizen 28.1 90.0 29.9 91.7 30.0 92.1 30.2 92.6 31.2 91.1 1.1 0.9

Bumiputera 1
19.2 68.3 20.7 69.4 20.9 69.6 21.1 69.4 21.9 70.3 1.5 1.1

Chinese 6.6 23.6 6.9 23.2 6.9 23.0 6.9 23.2 6.9 21.8 0.3 0.0

Indian 2.0 7.1 2.0 6.7 2.0 6.7 2.0 6.7 2.2 7.0 0.0 1.9

Others 0.3 1.0 0.3 0.7 0.2 0.7 0.2 0.7 0.2 0.9 0.0 -7.8

Non-Citizen2 3.1 10.0 2.7 8.3 2.6 7.9 2.4 7.4 3.1 8.9 -0.7 2.5

Strata

Urban 23.2 74.3 24.4 75.1 24.5 75.3 24.7 75.5 27.1 79.1 1.5 2.1

Rural 8.0 25.7 8.1 24.9 8.1 24.7 8.0 24.5 7.2 20.9 -0.3 -2.4

Total Fertility Rate, % 2.0 1.8 1.7 1.7 1.5

Median Age, years 27.8 29.7 30.1 30.4 30.7

Dependency Ratio, % 44.5 44.3 44.1 43.9 44.2

Notes: 1
Includes Malay and other Bumiputera.
2
Includes permanent residents, foreign workers with work permits, expatriates and foreign students.
Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-19

Table 14
Labour Force, Employment and Job Creation, 2015-2025
Average Annual Growth
Actual Revised Target Job Creation
Rate, %

Twelfth Plan
Twelfth Plan Eleventh Plan 2021-2025
Item 2015 2020 2021 2022 2025
Eleventh 2021-2025 2016-2020
Plan Revised Target
2016-2020
‘000 % to ‘000 % to ‘000 % to ‘000 % to ‘000 % to Revised ‘000 % to ‘000 % to
Person Total Person Total Person Total Person Total Person Total Target Person Total Person Total

Total
13,992 100.0 15,097 100.0 15,290 100.0 15,762 100.0 16,398 100.0 1.3 1.7 1,065 100.0 1,341 100.0
Employment1

Agriculture 1,876 13.4 1,866 12.4 1,874 12.3 1,861 11.8 1,884 11.5 -0.4 0.0 10 -0.9 -2 -0.1

Mining and
79 0.6 74 0.5 75 0.5 76 0.5 73 0.4 -1.5 -0.4 -5 -0.5 -1 -0.1
Quarrying

Manufacturing 2,379 17.0 2,552 16.9 2,618 17.1 2,719 17.3 2,835 17.3 1.1 2.1 173 15.7 283 21.1

Construction 1,517 10.8 1,399 9.3 1,385 9.1 1,382 8.8 1,375 8.4 -2.2 0.5 -178 -10.7 36 2.7

Services 8,141 58.2 9,206 61.0 9,338 61.1 9,724 61.7 10,231 62.4 2.3 2.1 1,065 96.4 1,025 76.5

Total Labour
14,518 15,668 15,797 16,022 17,402 1.5 2.1
Force

Unemployed 450 711 733 630 435

Unemployment
3.1 4.5 4.6 3.9 3.3
rate, %

Labour Force
67.9 69.1 68.6 69.3 71.0
Participation, %

Male 80.6 80.6 80.9 81.9 83.0

Female 54.1 55.3 55.5 55.8 59.0

Notes: 1
Labour Productivity Publication uses establishment and household approach.
The added total may differ due to rounding.
Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
A-20 Appendix

Table 15
Employment by Major Occupational Group, 2015-2025
Average Annual Growth
Actual Revised Target
Rate, %

Twelfth
Item 2015 2020 2021 2022 2025 Plan
Eleventh
2021-2025
Plan
2016-2020
‘000 % to ‘000 % to ‘000 % to ‘000 % to ‘000 % to Revised
Person Total Person Total Person Total Person Total Person Total Target

Skilled

Managers 719 5.1 808 5.4 687 4.6 712 4.6 1,197 7.3 1.2 8.2

Professionals 1,462 10.4 1,868 12.5 1,961 13.0 1,993 12.9 2,181 13.3 5.6 3.1

Technicians and
1,407 10.0 1,547 10.3 1,807 12.0 1,855 12.1 2,361 14.4 3.4 8.8
Associate Professionals

Semi-Skilled

Clerical Support Workers 1,241 8.8 1,242 8.3 1,507 10.0 1,535 10.0 1,476 9.0 1.4 3.5

Service and Sales

3,189 22.7 3,632 24.3 3,612 24.0 3,763 24.4 3,280 20.0 2.1 -2.0
Workers

Skilled Agricultural,
Forestry, Livestock and 940 6.7 916 6.1 720 4.8 724 4.7 984 6.0 -0.7 1.4
Fishery Workers

Craft and Related Trade

1,579 11.2 1,473 9.8 1,301 8.6 1,381 9.0 1,640 10.0 -2.8 2.2
Workers

Plant and Machine

Operators and 1,585 11.3 1,690 11.3 1,554 10.3 1,584 10.3 1,476 9.0 1.8 -2.7
Assemblers

Low-Skilled

Elementary Occupations 1,946 13.8 1,780 11.9 1,915 12.7 1,845 12.0 1,804 11.0 -1.1 0.3

Total Employment 14,068 100.0 14,957 100.0 15,064 100.0 15,392 100.0 16,398 100.0 1.4 1.9

Note: The added total may differ due to rounding.

Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-21

Table 16
Employment by Skills Category and State, 2015-2025
Average Annual Growth
Actual Revised Target
Rate, %

Twelfth Plan
Item 2015 2020 2021 2022 2025
Eleventh 2021-2025
Target
‘000 % to ‘000 % to ‘000 % to ‘000 % to ‘000 % to 2016-2020 Revised
Person Total Person Total Person Total Person Total Person Total Target

Malaysia 14,068 100.0 14,957 100.0 15,064 100.0 15,392 100.0 16,398 100.0 1.2 1.9

Skilled 3,588 25.5 4,223 28.2 4,455 29.6 4,561 29.6 5,739 35.0 3.3 6.3

Semi-Skilled 8,534 60.7 8,953 59.9 8,694 57.7 8,987 58.4 8,855 54.0 1.0 -0.2

Low-Skilled 1,946 13.8 1,780 11.9 1,915 12.7 1,844 12.0 1,804 11.0 -1.8 0.3

Johor 1,583 100.0 1,776 100.0 1,765 100.0 1,819 100.0

Skilled 345 21.8 421 23.7 513 29.1 488 26.8

Semi-Skilled 1,044 66.0 1,136 64.0 1,024 58.0 1,127 61.9

Low-Skilled 194 12.2 219 12.3 228 12.9 205 11.3

Kedah 882 100.0 915 100.0 934 100.0 965 100.0

Skilled 161 18.2 199 21.8 249 26.7 254 26.3

Semi-Skilled 616 69.9 617 67.5 597 63.9 615 63.7

Low-Skilled 105 11.9 98 10.7 88 9.4 96 10.0

Kelantan 652 100.0 681 100.0 690 100.0 714 100.0

Skilled 109 16.8 127 18.6 160 23.2 138 19.4

Semi-Skilled 454 69.6 463 67.9 429 62.2 446 62.5

Low-Skilled 89 13.6 92 13.4 101 14.6 129 18.1

Melaka 398 100.0 417 100.0 435 100.0 448 100.0

Skilled 109 27.5 139 33.2 156 35.9 152 34.0

Semi-Skilled 256 64.3 246 59.0 242 55.6 256 57.1

Low-Skilled 33 8.3 32 7.7 37 8.5 40 8.9

 Mid-Term Review of the Twelfth Malaysia Plan
A-22 Appendix

Table 16
Employment by Skills Category and State, 2015-2025–cont.
Average Annual Growth
Actual Revised Target
Rate, %

Twelfth Plan
Item 2015 2020 2021 2022 2025
Eleventh 2021-2025
Target
‘000 % to ‘000 % to ‘000 % to ‘000 % to ‘000 % to 2016-2020 Revised
Person Total Person Total Person Total Person Total Person Total Target

Negeri Sembilan 469 100.0 474 100.0 468 100.0 474 100.0

Skilled 114 24.3 149 31.4 150 32.0 166 35.0

Semi-Skilled 290 61.9 269 56.8 261 55.9 249 52.6

Low-Skilled 65 13.8 56 11.7 57 12.1 59 12.4

Pahang 698 100.0 716 100.0 705 100.0 716 100.0

Skilled 121 17.4 161 22.5 185 26.2 156 21.8

Semi-Skilled 446 64.0 448 62.6 415 58.8 453 63.2

Low-Skilled 130 18.6 107 15.0 106 15.0 108 15.0

Pulau Pinang 834 100.0 833 100.0 857 100.0 874 100.0

Skilled 243 29.2 301 36.2 310 36.2 308 35.2

Semi-Skilled 514 61.6 471 56.6 480 56.0 506 57.9

Low-Skilled 77 9.3 61 7.3 67 7.8 60 7.0

Perak 982 100.0 1,043 100.0 1,043 100.0 1,067 100.0

Skilled 209 21.3 246 23.6 270 25.9 302 28.3

Semi-Skilled 665 67.7 677 64.9 664 63.7 645 60.4

Low-Skilled 108 11.0 120 11.5 109 10.5 120 11.3

Perlis 98 100.0 106 100.0 109 100.0 110 100.0

Skilled 19 19.2 29 27.4 27 24.7 28 25.7

Semi-Skilled 99 100.4 67 63.0 69 63.2 71 64.6

Low-Skilled 10 9.7 10 9.6 13 12.2 11 9.8

 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-23

Table 16
Employment by Skills Category and State, 2015-2025–cont.
Average Annual Growth
Actual Revised Target
Rate, %

Twelfth Plan
Item 2015 2020 2021 2022 2025
Eleventh 2021-2025
Target
‘000 % to ‘000 % to ‘000 % to ‘000 % to ‘000 % to 2016-2020 Revised
Person Total Person Total Person Total Person Total Person Total Target

Selangor 3,135 100.0 3,447 100.0 3,519 100.0 3,598 100.0

Skilled 1,232 39.3 1,400 40.6 1,245 35.4 1,403 39.0

Semi-Skilled 1,598 51.0 1,797 52.1 1,953 55.5 1,957 54.4

Low-Skilled 305 9.7 250 7.3 321 9.1 237 6.6

Terengganu 421 100.0 465 100.0 469 100.0 480 100.0

Skilled 88 20.8 98 21.0 105 22.4 111 23.0

Semi-Skilled 285 67.8 314 67.6 315 67.2 318 66.2

Low-Skilled 48 11.3 53 11.4 49 10.4 52 10.8

Sabah 1,771 100.0 1,870 100.0 1,857 100.0 1,876 100.0

Skilled 244 13.8 317 17.0 329 17.7 357 19.0

Semi-Skilled 1,035 58.4 1,149 61.5 1,055 56.8 1,057 56.4

Low-Skilled 493 27.8 403 21.6 473 25.5 462 24.6

Sarawak 1,215 100.0 1,262 100.0 1,278 100.0 1,313 100.0

Skilled 224 18.4 252 19.9 296 23.1 274 20.9

Semi-Skilled 793 65.3 815 64.6 794 62.1 831 63.3

Low-Skilled 198 16.3 196 15.5 188 14.7 208 15.8

FT of Kuala
853 100.0 875 100.0 856 100.0 857 100.0
Lumpur

Skilled 340 39.9 357 40.8 427 49.9 391 45.6

Semi-Skilled 427 50.0 440 50.3 358 41.8 416 48.5

Low-Skilled 87 10.1 78 8.9 71 8.3 51 5.9

 Mid-Term Review of the Twelfth Malaysia Plan
A-24 Appendix

Table 16
Employment by Skills Category and State, 2015-2025–cont.
Average Annual Growth
Actual Revised Target
Rate, %

Twelfth Plan
Item 2015 2020 2021 2022 2025
Eleventh 2021-2025
Target
‘000 % to ‘000 % to ‘000 % to ‘000 % to ‘000 % to 2016-2020 Revised
Person Total Person Total Person Total Person Total Person Total Target

FT of Labuan 40 100.0 43 100.0 44 100.0 45 100.0

Skilled 10 26.1 13 29.2 17 38.1 16 36.0

Semi-Skilled 25 62.5 27 62.9 24 53.2 24 54.0

Low-Skilled 5 11.4 3 8.1 4 8.8 5 10.0

FT of Putrajaya 39 100.0 36 100.0 37 100.0 38 100.0

Skilled 19 49.4 17 46.2 17 45.4 18 47.2

Semi-Skilled 17 43.4 17 47.3 15 41.4 17 44.5

Low-Skilled 3 7.3 2 6.5 5 12.9 3 8.3

Note: The added total may differ due to rounding.

Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-25

Table 17
Students Enrolment in Education Institution, 2015-2022
Actual
Average Annual
Growth Rate, %
2015 2020 2021 2022
Item
Eleventh Twelfth
Number of % to Number of % to Number of % to Number of % to
Plan Plan
Students Total Students Total Students Total Students Total
2016-2020 2021-2022

Pre-school, 4 to 6 years old

Government School 486,954 8.0 499,412 8.2 482,126 7.9 481,575 7.8 0.5 -1.8

Ministry of Education 198,574 3.3 208,459 3.4 207,943 3.4 207,867 3.4 1.0 -0.1

Department of Community
219,481 3.6 218,258 3.6 206,082 3.4 207,965 3.4 -0.1 -2.4
Development

Department of National Unity

37,699 0.6 38,657 0.6 30,918 0.5 36,635 0.6 0.5 -2.7
and Integration

Malaysia Department of
31,200 0.5 34,038 0.6 37,183 0.6 29,108 0.5 1.8 -7.5
Islamic Development

Private School 346,938 5.7 340,834 5.6 303,553 4.9 289,312 4.7 -0.4 -7.9

Private 338,140 0.1 332,909 0.1 297,271 4.8 283,436 4.6 -0.3 -7.7

Muslim Islamic Youth

8,798 7,925 0.1 6,282 0.1 5,876 0.1 -2.1 -13.9
Movement of Malaysia

Total 833,892 13.7 840,246 13.8 785,679 12.8 770,887 12.5 0.2 -4.2

Primary

Government School 2,711,333 44.6 2,798,176 46.1 2,891,913 47.1 2,930,468 47.4 0.6 2.3

Government and Government

2,683,992 44.1 2,741,995 45.2 2,766,234 45.1 2,770,015 44.8 0.4 0.5
Aided School (MOE)

State Religious Department 27,341 0.4 56,181 0.9 125,679 2.0 160,453 2.6 15.5 69.0

Private School 59,007 1.0 75,257 1.2 74,386 1.2 71,973 1.2 5.0 -2.2

Total 2,770,340 45.6 2,873,433 47.4 2,966,299 48.3 3,002,441 48.5 0.7 2.2
 Mid-Term Review of the Twelfth Malaysia Plan
A-26 Appendix

Table 17
Students Enrolment in Education Institution, 2015-2022–cont.
Actual
Average Annual
Growth Rate, %
2015 2020 2021 2022
Item
Eleventh Twelfth
Number of % to Number of % to Number of % to Number of % to
Plan Plan
Students Total Students Total Students Total Students Total
2016-2020 2021-2022

Lower Secondary

Government School 1,349,373 22.2 1,258,910 20.7 1,287,409 21.0 1,310,611 21.2 -1.4 2.0

Government and Government

1,290,690 21.2 1,186,023 19.5 1,215,123 19.8 1,240,969 20.1 -1.7 2.3
Aided School (MOE)

Malaysia Department of
39,648 0.7 51,766 0.9 50,535 0.8 47,951 0.8 5.5 -3.8
Islamic Development

MARA Junior Science

19,035 0.3 21,121 0.3 21,751 0.4 21,691 0.4 2.1 1.3
Colleges

Private School 82,700 1.4 79,423 1.3 76,200 1.2 87,458 1.4 -0.8 4.9

Total 1,432,073 23.6 1,338,333 22.1 1,363,609 22.2 1,398,069 22.6 -1.3 2.2

Upper Secondary

Government 817,894 13.5 779,148 12.8 791,477 12.9 795,923 12.9 -1.0 1.1

Government and Government

Aided School - Academic 596,228 9.8 595,553 9.8 601,987 9.8 601,924 9.7 -0.0 0.5
(MOE)

Government and Government

Aided School - Technical and 185,244 3.0 138,909 2.3 142,677 2.3 142,102 2.3 -5.6 1.1
Vocational (MOE)

Malaysia Department of
20,603 0.3 28,570 0.5 30,800 0.5 35,202 0.6 6.8 11.0
Islamic Development

MARA Junior Science

15,360 0.3 15,668 0.3 15,509 0.3 16,201 0.3 0.4 1.7
Colleges

The Royal Military College 459 0.0 448 0.0 504 0.0 494 0.0 -0.5 5.0

Private School 42,370 0.7 51,031 0.8 42,098 0.7 43,626 0.7 3.8 -7.5

Total 860,264 14.1 830,179 13.7 833,575 13.6 839,549 13.6 -0.7 0.6
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-27

Table 17
Students Enrolment in Education Institution, 2015-2022–cont.
Actual
Average Annual
Growth Rate, %
2015 2020 2021 2022
Item
Eleventh Twelfth
Number of % to Number of % to Number of % to Number of % to
Plan Plan
Students Total Students Total Students Total Students Total
2016-2020 2021-2022

Post Secondary

Government 171,551 2.8 171,285 2.8 174,993 2.9 163,788 2.6 -6.7 -2.2

Government and Government

Aided School - Form Six 109,493 1.8 118,211 1.9 124,624 2.0 114,393 1.8 -9.1 -1.6
(MOE)

Pre-University (MOE) 185 0.0 232 0.0 186 0.0 198 0.0 4.6 -7.6

Matriculation (MOE) 21,002 0.3 26,630 0.4 24,932 0.4 21,853 0.4 4.9 -9.4

Form Six (JAKIM) 4,964 0.1 5,110 0.1 3,070 0.1 2,463 0.0 0.6 -30.6

Institutes of Teacher
35,907 0.6 21,102 0.3 22,181 0.4 24,881 0.4 -10.1 8.6
Education (MOE)

Private 1 11,654 0.2 14,316 0.2 11,980 0.2 12,388 0.2 4.2 -7.0

Total 183,205 3.0 185,601 3.1 186,973 3.0 176,176 2.8 -5.9 -2.6

Overall 6,079,774 100.0 6,067,792 100.0 6,136,135 100.0 6,187,122 100.0 -0.2 1.0

Notes: 1
Form Six/Post Secondary.
Item in brackets refers to the ministry or agency responsible for the respective educational institution.
All data provided is as of 30 June 2022. The data does not include Lower Form 6 who have yet to register on 30 June 2022.
Source: Ministry of Education
 Mid-Term Review of the Twelfth Malaysia Plan
A-28 Appendix

Table 18
Students Intake in Higher Education Institution, 2015-2022
Actual Average Annual Growth
2015 2020 2021 2022 Rate, %
Item
Eleventh Twelfth
Number of % to Number of % to Number of % to Number of % to
Plan Plan
Students Total Students Total Students Total Students Total
2016-2020 2021-2022

Institutions
Public Higher Education
218,937 42.8 206,852 55.6 219,948 57.2 222,007 56.4 -1.1 3.6
Institutions
Public Universities 168,127 32.9 177,710 47.8 181,901 47.3 188,969 48.0 1.1 3.1
Polytechnics 37,971 7.4 23,743 6.4 29,318 7.6 25,170 6.4 -9.0 3.0
Community Colleges 12,839 2.5 5,399 1.5 8,729 2.3 7,868 2.0 -15.9 20.7
Private Higher Education
292,217 57.2 165,158 44.4 164,760 42.8 171,889 43.6 -10.8 2.0
Institutions
Total 511,154 100.0 372,010 100.0 384,708 100.0 393,896 100.0 -6.2 2.9

Level of Study
PhD 7,665 1.5 10,328 2.8 15,460 4.0 14,017 3.6 6.1 16.5
Master’s 36,561 7.2 27,217 7.3 33,432 8.7 32,248 8.2 -5.7 8.9
Bachelor’s 189,748 37.1 171,331 46.1 168,903 43.9 165,107 41.9 -2.0 -1.8
Diploma 189,995 37.2 107,382 28.9 109,137 28.4 116,833 29.7 -10.8 4.3
Certificates 51,906 10.2 10,561 2.8 17,888 4.6 17,868 4.5 -27.3 30.1
Others 1
35,279 6.9 45,191 12.1 39,888 10.4 47,823 12.1 5.1 2.9
Total 511,154 100.0 372,010 100.0 384,708 100.0 393,896 100.0 -6.2 2.9

Fields of Study
General Programmes 43,236 8.5 24,762 6.7 26,064 6.8 29,712 7.5 -10.5 9.5
Education 27,327 5.3 22,510 6.1 24,707 6.4 27,627 7.0 -3.5 10.8
Arts and Humanities 37,183 7.3 33,753 9.1 33,309 8.7 31,029 7.9 -1.9 -4.1
Social Sciences, Business and
186,530 36.5 129,341 34.8 136,732 35.5 140,515 35.7 -7.1 4.2
Law
Science, Mathematics and
56,119 11.0 49,672 13.4 50,059 13.0 55,659 14.1 -2.40 5.86
Computing
Engineering, Manufacturing
88,200 17.3 66,216 17.8 68,341 17.8 61,559 15.6 -5.6 -3.6
and Construction
Agriculture and Veterinary 6,920 1.4 4,864 1.3 4,930 1.3 4,651 1.2 -6.8 -2.2
Health and Welfare 32,888 6.4 19,572 5.3 20,468 5.3 21,277 5.4 -9.9 4.3
Services 32,751 6.4 21,320 5.7 20,098 5.2 21,867 5.6 -8.2 1.3
Total 511,154 100.0 372,010 100.0 384,708 100.0 393,896 100.0 -6.2 2.9

Note: 1
Refers to advanced diploma, matriculation, postgraduate diploma, professional and others.
Source: Ministry of Higher Education
 Mid-Term Review of the Twelfth Malaysia Plan
Appendix A-29

Table 19
Students Enrolment in Higher Education Institution, 2015-2022
Actual Average Annual Growth
2015 2020 2021 2022 Rate, %
Item
Eleventh Twelfth
Number of % to Number of % to Number of % to Number of % to
Plan Plan
Students Total Students Total Students Total Students Total
2016-2020 2021-2022

Institutions
Public Higher Education
655,236 53.0 686,664 56.1 690,013 57.1 688,679 57.3 0.9 0.1
Institutions
Public Universities 540,638 43.7 584,576 47.8 589,879 48.8 595,624 49.5 1.6 0.9
Polytechnics 96,069 7.8 85,936 7.0 84,556 7.0 77,816 6.5 -2.2 -4.8
Community Colleges 18,529 1.5 16,152 1.3 15,578 1.3 15,239 1.3 -2.7 -2.9
Private Higher Education
580,928 47.0 537,434 43.9 517,580 42.9 513,523 42.7 -1.5 -2.2
Institutions
Total 1,236,164 100.0 1,224,098 100.0 1,207,593 100.0 1,202,202 100.0 -0.2 -0.9

Level of Study
PhD 36,967 3.0 47,424 3.9 56,144 4.6 62,392 5.2 5.1 14.7
Master’s 84,329 6.8 82,924 6.8 87,531 7.2 90,356 7.5 -0.3 4.4
Bachelor’s 592,149 47.9 641,189 52.4 638,133 52.8 626,222 52.1 1.6 -1.2
Diploma 401,009 32.4 370,217 30.2 349,959 29.0 338,108 28.1 -1.6 -4.4
Certificates 78,208 6.3 26,766 2.2 29,742 2.5 29,767 2.5 -19.3 5.5
Others1 43,502 3.5 55,578 4.5 46,084 3.8 55,357 4.6 5.0 -0.2
Total 1,236,164 100.0 1,224,098 100.0 1,207,593 100.0 1,202,202 100.0 -0.2 -0.9

Fields of Study
General Programmes 50,339 4.1 34,023 2.8 32,361 2.7 37,694 3.1 -7.5 5.3
Education 76,117 6.2 83,183 6.8 88,142 7.3 94,858 7.9 1.8 6.8
Arts and Humanities 102,540 8.3 109,315 8.9 108,327 9.0 102,967 8.6 1.3 -2.9
Social Sciences, Business and
430,581 34.8 433,903 35.4 427,622 35.4 425,242 35.4 0.2 -1.0
Law
Science, Mathematics and
147,038 11.9 148,850 12.2 150,151 12.4 157,701 13.1 0.2 2.9
Computing
Engineering, Manufacturing
263,972 21.4 245,494 20.1 234,244 19.4 219,124 18.2 -1.4 -5.5
and Construction
Agriculture and Veterinary 21,400 1.7 14,579 1.2 14,328 1.2 14,083 1.2 -7.4 -1.7
Health and Welfare 78,278 6.3 81,148 6.6 82,171 6.8 84,500 7.0 0.7 2.0
Services 65,899 5.3 73,603 6.0 70,247 5.8 66,033 5.5 2.2 -5.3
Total 1,236,164 100.0 1,224,098 100.0 1,207,593 100.0 1,202,202 100.0 -0.2 -0.9

Note: 1
Refers to advanced diploma, matriculation, postgraduate diploma, professional and others.
Source: Ministry of Higher Education
 Mid-Term Review of the Twelfth Malaysia Plan
A-30 Appendix

Table 20
Students Output in Higher Education Institution, 2015-2022
Actual Average Annual Growth
2015 2020 2021 2022 Rate, %
Item
Number Eleventh Twelfth
Number of % to Number of % to Number of % to % to
of Plan Plan
Students Total Students Total Students Total Total
Students 2016-2020 2021-2022

Institutions
Public Higher Education
155,420 53.6 150,670 59.2 194,053 59.5 183,079 58.2 -0.6 10.2
Institutions
Public Universities 122,454 42.3 114,709 45.0 157,868 48.4 144,579 45.9 -1.3 12.3
Polytechnics 25,388 8.8 28,924 11.4 28,117 8.6 31,967 10.2 2.6 5.1
Community Colleges 7,578 2.6 7,037 2.8 8,068 2.5 6,533 2.1 -1.5 -3.6
Private Higher Education
134,374 46.4 104,018 40.8 132,238 40.5 131,621 41.8 -5.0 12.5
Institutions
Total 289,794 100.0 254,688 100.0 326,291 100.0 314,700 100.0 -2.5 11.2

Level of Study
PhD 3,709 1.3 3,976 1.6 4,324 1.3 4,426 1.4 1.4 5.5
Master’s 19,229 6.6 17,582 6.9 22,717 7.0 23,328 7.4 -1.8 15.2
Bachelor’s 117,754 40.6 110,498 43.4 147,444 45.2 147,247 46.8 -1.3 15.4
Diploma 107,476 37.1 89,715 35.2 113,061 34.7 105,505 33.5 -3.5 8.4
Certificates 33,182 11.5 9,341 3.7 16,275 5.0 14,445 4.6 -22.4 24.4
Others1 8,444 2.9 23,576 9.3 22,470 6.9 19,749 6.3 22.8 -8.5
Total 289,794 100.0 254,688 100.0 326,291 100.0 314,700 100.0 -2.5 11.2

Fields of Study
General Programmes 24,101 8.3 20,049 7.9 24,264 7.4 21,502 6.8 -3.6 3.6
Education 29,871 10.3 12,683 5.0 15,035 4.6 16,427 5.2 -15.7 13.8
Arts and Humanities 19,481 6.7 23,927 9.4 25,466 7.8 22,446 7.1 4.2 -3.1
Social Sciences, Business and
92,315 31.9 83,428 32.8 113,809 34.9 113,641 36.1 -2.0 16.7
Law
Science, Mathematics and
30,322 10.5 29,473 11.6 38,083 11.7 37,907 12.0 -0.6 13.4
Computing
Engineering, Manufacturing
55,211 19.1 54,789 21.5 70,026 21.5 64,473 20.5 -0.2 8.5
and Construction
Agriculture and Veterinary 4,119 1.4 4,151 1.6 4,230 1.3 3,662 1.2 0.2 -6.1
Health and Welfare 18,831 6.5 10,954 4.3 15,393 4.7 15,541 4.9 -10.3 19.1
Services 15,543 5.4 15,234 6.0 19,985 6.1 19,101 6.1 -0.4 12.0
Total 289,794 100.0 254,688 100.0 326,291 100.0 314,700 100.0 -2.5 11.2

Note: 1
Refers to advanced diploma, matriculation, postgraduate diploma, professional and others.
Source: Ministry of Higher Education
 Mid-Term Review of the Twelfth Malaysia Plan
Chart A-31

Chart 1
Incidence of Absolute Poverty by Strata and Ethnic, 2019 and 2022

2019 2022
(%) (%)
Strata Strata

National 5.6 National 6.2

Urban 3.8 Urban 4.5

Rural 12.4 Rural 12.0

Ethnic Ethnic

Bumiputera 7.2 Bumiputera 7.9

Chinese 1.4 Chinese 1.9

Indian 4.8 Indian 5.4

Note: Calculation of incidence of absolute poverty was based on 2019 PLI methodology.
Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
A-32 Chart

Chart 2
Incidence of Absolute Poverty by State, 2019 and 2022

Incidence of Poverty, %
5.6
Malaysia 6.2

Johor 3.9
4.6
8.8
Kedah 9.0

Kelantan 12.4
13.2
3.9
Melaka 4.2
4.3
Negeri Sembilan 4.4
4.3
Pahang 6.3
1.9
Pulau Pinang 2.0
7.3
Perak 7.5
3.9
Perlis 4.0
1.2
Selangor 1.5

Terengganu 6.1
6.2
19.5
Sabah 19.7

Sarawak 9
10.8
0.2
FT of Kuala Lumpur 1.4
3.1
FT of Labuan 2.5

FT of Putrajaya 0.4
0.1

2019 2022

Note: Calculation of incidence of absolute poverty was based on 2019 PLI methodology.
Source: Department of Statistics Malaysia and Ministry of Economy
 Mid-Term Review of the Twelfth Malaysia Plan
Chart A-33

Chart 3
Percentage of Household by Income Category, 2019 and 2022

%
14.0
2019 2022
12.0

Median Income 2019 (RM5,873)

10.0
Mean Income 2019 (RM7,901)
Median Income 2022 (RM6,338)
8.0 Mean Income 2022 (RM8,479)

6.0

4.0

2.0

and above
Less than
RM2,000

RM2,000-
RM2,999

RM3,000-
RM3,999

RM4,000-
RM4,999

RM5,000-
RM5,999

RM6,000-
RM6,999

RM7,000-
RM7,999

RM8,000-
RM8,999

RM9,000-
RM9,999

RM10,000-
RM10,999

RM11,000-
RM11,999

RM12,000-
RM12,999

RM13,000-
RM13,999

RM14,000-
RM14,999

RM15,000
Below RM5,000 RM5,000-RM9,999 RM10,000 and above
2019: 41.6% 2022: 37.4% 2019: 34.6% 2022: 35.2% 2019: 23.8% 2022: 27.4%

Income Category

Source: Department of Statistics Malaysia and Ministry of Economy

 Mid-Term Review of the Twelfth Malaysia Plan
A-34 Chart

Chart 4
National Household Income Category, 2019 and 2022

2019 2022
Monthly % of Number of Monthly % of Number of
Household Household Household Household Household Household
Income Income
7.28 million 7.90 million
100% 100%

T20 T20
1.46 million 1.58 million
RM10,960 80% RM11,820 80%

M40 M40
2.91 million 3.16 million

RM4,850 40% RM5,250 40%

B40 Median Income B40 RM3,440

2.91 million Mean Income B40 RM3,401
Median Income B40
Mean Income B40
RM3,166
RM3,152 B40
3.16 million

Share of Income 2019 Share of Income 2022

16% 16.1%

46.8%
46.3%

37.6%
37.2%

T20 M40 B40 T20 M40 B40

Source: Department of Statistics Malaysia and Ministry of Economy

 Mid-Term Review of the Twelfth Malaysia Plan
Glossary A-35

Glossary
2030 Agenda 2030 Agenda for Sustainable Development

3D dirty, dangerous, and difficult

4G fourth generation technology standard

4IR Fourth Industrial Revolution

5G fifth generation technology standard

ACAT Acquisition Categorisation

ACE Access, Certainty, Efficiency

Act 685 Person with Disabilities Act 2008

Act 804 Anti-Sexual Harassment Act 2022

AG Auditor General

AI artificial intelligence

AiI Academy In Industry

ASB Amanah Saham Bumiputera

ASEAN Association of Southeast Asian Nations

ASTRO All-Asia Satellite Television and Radio Operator

ASWARA Akademi Seni Budaya dan Warisan Kebangsaan

ATM Malaysian Armed Forces

B40 bottom 40% household income group

BDA big data analytics

BERD business expenditure on research and development

BI Behavioural Insights

BIM Building Information Modelling

BMT Inisiatif Basmi Miskin Tegar

BOP balance of payments

BRT Bus Rapid Transit

BUDI Program Bantuan untuk Pendidikan

BYOD bring your own device

CBOs community-based organisations

 Mid-Term Review of the Twelfth Malaysia Plan
A-36 Glossary

CCPT Climate Change and Principle-based Taxonomy

CCS carbon capture and storage

CCUS carbon capture, utilisation and storage

CDOs Chief Digital Officers

CE compensation of employees

CEPA communication, education and public awareness

CIB Community Integrity Building

CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora

COE Centre of Excellence

COL Critical Occupations List

COVID-19 Coronavirus disease

CPI Corruption Perceptions Index

CPTPP Comprehensive and Progressive Agreement for Trans-Pacific Partnership

CSOs civil society organisations

DAKN2030 National Agricommodity Policy 2021-2030

DAN 2.0 National Agrofood Policy 2.0 2021-2030

DE development expenditure

DRM Disaster Risk Management

DTN National Energy Policy, 2022-2040

e-Kasih Bank Data Kemiskinan Nasional

E&E electrical and electronics

E2E end-to-end

EA enterprise architecture

ECCE early childhood care and education

ECER East Coast Economic Region

ECRL East Coast Rail Link

EGDI E-Government Development Index

EPF Employees Provident Fund

EQA External Quality Assurance

ESG environmental, social and governance

 Mid-Term Review of the Twelfth Malaysia Plan
Glossary A-37

ETS Electric Train Service

EVs electric vehicles

FELDA Federal Land Development Authority

FEN Financial Education Network

FPAs Food Production Areas

FT Federal Territory

FTAs free trade agreements

FTSE4Good Financial Times Stock Exchange-Rusell Group

GDP gross domestic product

GERD gross expenditure on research and development

GGP government green procurement

GHG greenhouse gas

GII Global Innovation Index

GITA Green Investment Tax Allowance

GITE Green Income Tax Exemption

GKL/KV Greater Kuala Lumpur/Klang Valley

GLCs government-linked companies

GLICs government-linked investment companies

GLOSMEP Global Linkages SME Programme

GN0 Gerbang Nilai 0

GNI gross national income

GovTech Government Technology

GP government procurement

GRIs Government Research Institutes

GTMI GovTech Maturity Index

GVC global value chain

GW gigawatt

HCFC hydrochlorofluorocarbons

HEIs higher education institutions

HGHV high growth high value

 Mid-Term Review of the Twelfth Malaysia Plan
A-38 Glossary

HIES Household Income & Expenditure Survey

HIES & BA 2019 Household Income & Expenditure Survey and Basic Amenities 2019

HIMP 2030 Halal Industry Master Plan 2030

HRMIS Human Resource Management Information System

IBS Industrialised Building System

IC integrated circuit

iDamak Sistem Informasi Data Maklumat Masyarakat Orang Asli

IEA International Energy Agency

IEs industrial estates

iGFMAS Integrated Government Financial Management Accounting System

IIM Institut Integriti Malaysia

IKHSAN Inisiatif Operator Perkhidmatan

ILB Industry Lead Body

IM Iskandar Malaysia

Industry4WRD National Policy on Industry 4.0

INNOVATHON reality television show on innovation

INSAN Inisiatif Usahawan Makanan

INTAN Agro Entrepreneur Initiative

IOSCO International Organization of Securities Commissions

IoT internet of things

IP intellectual property

IPR Inisiatif Pendapatan Rakyat Programme

IR4.0 Fourth Industrial Revolution, or Industry 4.0

IRBM Integrated River Basins Management

ISO International Organization for Standardization

IWK Indah Water Konsortium

JENDELA Pelan Jalinan Digital Negara

JIPGII Inter-Agency Global Innovation Index Competitiveness Monitoring Committee

JKM Department of Social Welfare

JKR Jabatan Kerja Raya

 Mid-Term Review of the Twelfth Malaysia Plan
Glossary A-39

JMB Joint Management Body

JMCIM Joint Ministerial Committee for Iskandar Malaysia

JS job specification

K11 Comprehensive Special Model School 11

K9 Comprehensive Special Model School 9

KIR Heads of Household

KPIs key performance indicators

KUSKOP Ministry of Entrepreneur and Cooperative Development

kV kilovolt

LAC Limits of Acceptable Change

LCTF Low Carbon Transition Facility

LMO living modified organisms

LNG liquefied natural gas

LT-LEDS long-term low emmissions development strategies

LTC long-term care

M&E machinery and equipment

M40 middle 40% household income group

MAMPU Malaysian Administrative Modernisation and Management Planning Unit

MARA Majlis Amanah Rakyat

MaTEx Malaysia Tourism Excellence

Mbps megabits per second

MC Management Corporation

MCO Movement Control Order

MCY Malaysia Commercialisation Year

MCY 2.0 Malaysia Commercialisation Year 2.0

MDH Malaysia Digital Hub

MFP multifactor productivity

MITI Ministry of Investment, Trade and Industry

MNCs multinational companies

MoU memorandum of understanding

 Mid-Term Review of the Twelfth Malaysia Plan
A-40 Glossary

MPA marine protected areas

MPB Malaysia Productivity Blueprint

MPI Multidimensional Poverty Index

MRANTI Malaysian Research Accelerator for Technology and Innovation

MRO maintenance, repair and overhaul

MRSM Maktab Rendah Sains MARA

MSMEs micro, small and medium enterprises

MSNR Malaysian Sustainable Natural Rubber

MSPO Malaysian Sustainable Palm Oil

MSQoS Mandatory Standards for Quality of Service

MTCS Malaysia Timber Certification Scheme

MTRS Medium Term Revenue Strategy

MW megawatts

MyDID Malaysia Digital Inclusiveness Index

MyDIGITAL MyDIGITAL Corporation

MyeTaPP Sistem Pengurusan Tanah Persekutuan dan Pembahagian Pusaka

myGAP Malaysia Good Agricultural Practice

MyHDW Malaysian Health Datawarehouse

MyLogistik Peta Geospatial Fasiliti Logistik & Jaringan Pengangkutan

MyMUDAH Malaysia Mudah Unit platform

MySPC Malaysia Social Protection Council

MySPIKE Sistem Pengurusan Integrasi Kemahiran Malaysia

MySTIE Malaysian Science, Technology, Innovation and Economy

MySTR Sistem Sumbangan Tunai Rahmah

MyWI Malaysian Wellbeing Index

NACCOL National Action Council on Cost of Living

NBT nature-based tourism

NCDs non-communicable diseases

NCER Northern Corridor Economic Region

NCP 2030 National Construction Policy 2030

 Mid-Term Review of the Twelfth Malaysia Plan
Glossary A-41

NDC nationally determined contribution

NEET not in employment, education or training

NEP New Economic Policy

NER National Employment Returns

NETR National Energy Transition Roadmap

NFCC National Anti-Financial Crime Centre

NFI National Forest Inventory

NOSS National Occupational Skills Standards

NSAs national sports associations

NSC National Security Council

NTBp National Trade Blueprint

NTIS National Technology and Innovation Sandbox

OACP Organisational Anti-Corruption Plan

OE operating expenditure

OECD Organisation for Economic Co-operation and Development

OEMs original equipment manufacturers

OGSE oil and gas services and equipment

PADU Pangkalan Data Utama

PAP pre-approved plans

PDPS Pangkalan Data Perlindungan Sosial

PEDi Pusat Ekonomi Digital

PeKa B40 Skim Peduli Kesihatan untuk Kumpulan B40

PEMUDAH Special Task Force to Facilitate Business

PER Public Expenditure Review

PETRONAS Petroliam Nasional Berhad

PIPs Physical Implementation Projects

PISA Programme for International Student Assessment

PISMA Pelan Induk Saliran Mesra Alam

PKAN Program Khas Anak Negeri

PKB Program Khas Bumiputera

 Mid-Term Review of the Twelfth Malaysia Plan
A-42 Glossary

PLCs public listed companies

PLF Passenger Landing Facilities

PLI Poverty Line Income

PNK Pertubuhan Nelayan Kebangsaan

PoP Points of Presence

PPK Pertubuhan Peladang Kebangsaan

PPP public private partnership

PR1MA Perbadanan PR1MA Malaysia

PRESTIGE Programme for Enhancement of Strategic Industry and High Growth Enterprise

PRF Permanent Reserved Forest

PSPN Professional Services Productivity Nexus

PTPTN Perbadanan Tabung Pendidikan Tinggi Nasional

PULSE Planning Your Lifestyle Efficiently

PUNB Perbadanan Usahawan Nasional Berhad

PWDs person with disabilities

QSWUR Quacquarelli Symonds World University Rankings

R&D research and development

R&D&C&I research, development, commercialisation and innovation

RAPID Mobility alternative community based public transportation

RCEP Regional Comprehensive Economic Partnership

RE renewable energy

RELA Jabatan Sukarelawan Malaysia

RISE Researcher-Industry Scientific Exchange

RiSE4WRD programme to accelerate digital transformation journey of SMEs in manufacturing and related sectors

RMM Rumah Mampu Milik

RMR Rumah Mesra Rakyat

RMU Research Management Unit

RTO rent-to-own

S-CHARMs Spatial Characteristics of Rural Malaysia System

SAF Sustainable Aviation Fuel

 Mid-Term Review of the Twelfth Malaysia Plan
Glossary A-43

SARP Subang Airport Regeneration Plan

SAVE Sustainability Achieved Via Energy Efficiency

SBA Single Border Agency

SBP Sekolah Berasrama Penuh

SDGs Sustainable Development Goals

SEs social enterprises

SIRIM Standard and Industrial Research Institute of Malaysia

SISDA Surveillance and Intervention Supply Demand Agrofood

SMEIPA SME Integrated Plan of Action

SMEs small and medium enterprises

SMPPs small and medium professional practices

SMPPv2 Offender Management Information System version 2

SOCSO Social Security Organisation

SOP standard operation procedure

SPM Sijil Pelajaran Malaysia

SPNB Syarikat Perumahan Negara Berhad

SRI Sustainable and Responsible Investment

SSPN Skim Simpanan Pendidikan Nasional

SSR self-sufficiency ratio

STAR Special Task Force on Agency Reform

STEM science, technology, engineering and mathematics

STI science, technology and innovation

SUPER Startup Ecosystem Roadmap

TCFD Task Force on Climate-related Financial Disclosures

TERAJU Unit Peneraju Agenda Bumiputera

TEV total enterprise value

TFR total fertility rate

TIMSS Trends in International Mathematics and Science Study

ToT training of trainers

TTOs technology transfer offices

 Mid-Term Review of the Twelfth Malaysia Plan
A-44 Glossary

TVET technical and vocational education and training

Twelfth Plan Twelfth Malaysia Plan, 2021-2025

UAS unmanned aircraft system

UBBL Uniform Building By-Laws

UNDP United Nations Development Programme

UNGC UN Global Compact

UPAB Unit Pemerkasaan Agenda Bumiputera

US United States

VAE value at entry

VCM voluntary carbon market

VDP Vendor Development Programme

VLR Voluntary Local Reviews

VMS Value Management Strategic

VSR Voluntary Subnational Reviews

WHA74.5 Universal Health Coverage for Oral Health WHO

WHO World Health Organization

Wi-Fi wireless fidelity

YPPB Yayasan Peneraju Pendidikan Bumiputera

 Mid-Term Review of the Twelfth Malaysia Plan
Index A-45

Index
2022 Birmingham Commonwealth Games 7-11 agrofood 3-8, 3-24, 3-25, 3-30

2030 Agenda for Sustainable 6-2, 6-25, 7-2, 8-2, 8-4, airport 4-27, 4-28, 5-26, 5-27
Development (2030 Agenda) 8-21, 8-22, 8-25 Akademi Binaan Malaysia 3-30
A Anak Negeri Sabah O-19, 5-13, 5-26
absolute poverty 6-3, 6-17, 6-19, 6-20, Anti-Trafficking in Persons and Anti- 7-7
6-21, 6-22, 6-23 Smuggling of Migrants Act 2007
academia 1-16, 3-34, 6-24 [ Act 670 ]

academic 4-21, 4-23 aquaculture 3-24, 3-25

Academy in Industry (AiI) O-25, 3-30, 4-19 artifical intelligence (AI) 1-16, 2-19, B-9

access O-18, O-19, O-30, O-31, athletes 7-11, 7-21

O-32, 2-17, 2-19, 4-4, ATM security posts 7-16
4-8, 4-9, 4-16, 4-20, 4-22,
automation O-32, 4-19, 6-26
4-23, 4-24, 4-25, 4-28,
6-6, 6-8, 6-9, 6-13, 6-15, aviation O-25, 3-13, 3-14, 4-11,
6-19, 6-26, 6-27, 6-28, 4-27, 4-28
6-29, 6-33, 6-35, B-8 B
accountability O-29, 2-13, 2-19, B-13
B40 O-18, O-19, O-24, 6-2,
acculturating O-29, 2-14 6-3, 6-5, 6-6, 6-13, 6-17,
adaptation 8-8, 8-19 6-26, 6-27

aerospace 3-6, 3-13, 3-17, 3-19, balance of payments (BOP) 1-2, 1-5, 1-8, 1-13, 1-17
3-20, 3-23, 3-26, 3-27,
Bank Negara Malaysia 8-24
5-27
behavioural insights 2-7, 2-16, B-13
affordable housing O-18, O-19, O-27, O-31
1-11, 1-16, 5-12, 5-14, best practices 2-7, 2-13, 3-28, 6-29
5-15, 5-23, 5-28, 6-8, big data analytics (BDA) 1-15, 2-19, 4-27, 5-28,
6-13, 6-28, 7-1, 7-2, 7-9,
7-10
7-12, 7-13, 7-18, 7-19,
7-20, 7-23 biodiversity O-20, O-22, 5-9, 5-22,
5-24, 8-19, 8-20, 8-25,
aged nation 1-10, 1-11, 6-35, 7-18
B-12
agriculture O-18, O-23, O-31, 3-3,
3-15, 3-16, 3-18, 3-21, biomass 3-6, 3-14, 3-15, 3-17,

3-24, 3-28, 3-29, 3-31, 3-20, 3-23, 3-28, 3-29

3-33, 3-34, 4-26, 8-19 biotechnology 6-9
agriculture sector O-18, O-23, 1-7, 1-15, blockchain 1-16, 2-5, 3-30
3-18, 3-21, 3-24, 3-28,
Bomba Komuniti 7-6
3-31, 5-11, 5-28
 Mid-Term Review of the Twelfth Malaysia Plan
A-46 Index

Border Security O-25, 7-16, B-8 communicable diseases O-18, 7-8, B-9

Bribery BUSTER (Rasuah BUSTER) 2-6 community mediators 7-6, 7-15

programme community-based organisations (CBOs) 6-24, 6-25, 6-27, 7-16
broadband O-20, 4-4, 4-16, 4-22 community-based sport bodies 7-10
Bumiputera Agenda 6-9, 6-30 Companies Act 2016 [ Act 777 ] 2-13, 6-9
business ecosystem 2-20, 5-8, 5-21, 5-27 compensation of employees (CE) O-20, 1-6, 1-7, 1-14, 4-3,
C 4-7, 4-15

capacity building 3-32, 3-35, 6-29, 8-10, competency assessments 2-16

8-17 competency gap 2-9, 2-15
Carbon Capture, Utilisation and Storage O-30, 8-16 competency-based placements 2-15
(CCUS)
Comprehensive Special Model Schools 11 5-28
carbon accounting B-12 (K11)
carbon tax 8-16 connectivity O-17, O-19, O-21, O-25,
O-32, 4-4, 4-11, 4-13,
cardiology services 7-17
4-14, 4-16, 4-22, 4-24,
cashless 2-20, 4-24 4-25, 4-27, 4-28, 5-10,
5-13, 5-15, 5-23, 6-26
Central Forest Spine (CFS) 8-7
conservation O-20, 5-25, 5-27, 8-3,
Central Spine Road 1-16 8-7, 8-8, 8-10, 8-12, 8-15,
centralised database 5-24, 7-22 8-18, 8-20, 8-21, 8-25,
B-12
chatbot and smart mobile application 2-6
construction sector O-18, O-29, 1-7, 1-12,
childcare centres 4-19, 6-8, 6-11, 6-28 1-16, 3-18, 3-21, 3-24,
circular O-20, O-21, O-22, O-30, 3-30, 3-32, 5-11, 5-27,
2-6, 2-17 8-17

circular economy O-20, O-22, O-30, 8-6, Core Government Systems Index 2-18, 2-19
8-11, 8-13, 8-16, 8-18,
core public finance management systems 2-18
B-12
corrupt-free government 2-13
civil society organisations (CSOs) 2-6, 5-9, 5-22, 6-24, 6-25,
6-33, 6-35, 7-15 Corruption Risk Management Training 2-14
Module
clean and safe water O-19, 5-5, 5-6, 5-18, 5-19,
5-26, 6-10, 6-26, 6-33 counsellor 4-23
climate change O-20, O-30, 8-2, 8-12, COVID-19 O-18, O-19, 1-4, 1-10,
8-13, 8-16, 8-17, 8-19, 5-22, 5-24, 6-5, 6-19,
8-24, B-2, B-4, B-12
6-20, 6-22, 6-23, 7-8, 7-9,
cloud computing 4-23 7-11, 7-12

coastal 5-22, 8-3, 8-6, 8-7, 8-15, creative industry 3-6, 3-13, 3-17, 3-20,
8-20, B-12 3-23, 3-27

commercial land 7-20 creative learning 4-13, 4-20

 Mid-Term Review of the Twelfth Malaysia Plan
Index A-47

Credit Counselling and Debt Management 7-19 digital economy O-20, O-28, 2-18, 5-24
Agency
digital inclusivity 4-14, 4-21, 4-22, 4-24
criminogenic profiling 2-14
digital infrastructure 5-6, 5-15, 5-19, 5-26,
Critical Occupations List (COL) 4-19 5-27, 5-28

critical thinking 4-13, 4-20, B-8 digital leadership O-23, 4-22

cross border crimes 7-12, 7-16 digital literacy 2-5, 2-9, 2-17, 4-24

cross fertilisation programme 2-5 digital platforms 2-19, 3-9, 4-23, 6-26,
6-28, 6-30
cross-border O-23, O-30, 5-8, 5-21,
5-25 digital savvy leaders 4-23

current account of balance of payments 1-2, 1-5, 1-13, 1-17 digital talent 4-8, 4-13, 4-14, 4-21,
4-22, 4-23
cyber security 2-5, 4-8, 4-22, B-8
digital technology O-21, 2-9, 2-17, 2-20
cybercrime O-18, 7-12, 7-17
digital technology companies 4-22, 7-15
D
digital transformation O-29, 2-9, 2-16, 2-17,
Dasar Perkhidmatan Pengkomputeran 2-6 2-18
Awan Sektor Awam
digital-driven work culture 3-18, 3-23, 3-27, 3-28,
Dasar Perkongsian Data Sektor Awam 2-6, 2-17
3-29, 3-30, 3-32, 3-36
data analytics 3-27, 4-27, 6-36
dilapidated schools 4-7, 5-12, 5-15, 5-28
data profiling 2-9, 2-15
disaster management O-18, 7-17
data repository O-24, O-29, 2-7, 2-17,
disaster risk management 7-12, 7-13, 7-16, 7-17,
2-21
8-4, 8-15
data sharing O-22, O-29, 2-16, 2-17,
downstream activities 5-21
2-18, 3-26
Drug Dependants (Treatment and 7-17
defence O-22, 7-2, 7-3, 7-7, 7-16
Rehabilitation) Act 1983 [ Act 283 ]
dental services 7-9, 7-17
E
developers 7-20
e-Kehakiman 2-7
development expenditure (DE) 1-8, 1-18, 2-8, 5-8
e-MYind system 7-21
development gap O-19, 5-10, 5-21
e-payment 2-6
digital adoption 4-22, 4-24
e-Pembelajaran Sektor Awam 2-14
Digital Citizen Engagement Index 2-18
East Coast Rail Link 1-7, 3-12
digital competency 2-16, 2-19, 4-21
eCommerce O-20, 4-4, 4-8, 4-16, 4-22
digital content O-20, 4-4, 4-16, 4-22,
economic growth O-17, O-22, O-29, O-30,
4-23
O-32, O-33, 3-23, 3-26,
digital devices 4-23 5-15, 5-16, 5-23, 5-27,
8-2, 8-16, B-5, B-10
digital divide 4-24
economic wellbeing subcomposite index 1-8
 Mid-Term Review of the Twelfth Malaysia Plan
A-48 Index

ecosystem O-18, O-19, O-20, O-23, enforcer integrity module 2-14, 3-15
O-30, O-32, 8-6, 8-7,
entrepreneurship development 3-15, 5-8
8-12, 8-13, 8-19, 8-20,
8-21, 8-24, 8-25, B-4, B-8, environmental health 8-6
B-9, B-10, B-11, B-12 environmental impact 8-18, B-12
ecotourism 3-27, 5-10 environmental sustainability 1-15, 8-18, 8-26
eKasih 6-6, 6-25, 6-36 environmental, social and governance O-20, 5-27, 8-12, 8-13,
Ekonomi Madani: Memperkasa Rakyat 1-19 (ESG) 8-18, 8-21, 8-22, 8-23,
8-24, 8-25, 8-26, 8-27,
elderly 7-8, 7-12, B-3
B-10, B-12
electric vehicles 3-13, 3-23, 3-26, 5-9
equitable access 4-8
electrical and electronics (E&E) 1-7
equity 6-9, 6-13, 6-16, 6-18,
electricity O-20, O-23, O-24, O-30, 6-30, 6-32
5-5, 5-6, 5-18, 5-19, 5-23,
export O-17, O-18, 1-7, 1-8, 1-9,
5-25, 5-26, 5-28
1-13, 1-17
Electrified Double Track Gemas-Johor 1-17
F
Bahru
Family Wellbeing Index 6-4, 6-18
emerging technology O-20, 2-15, 2-18, 3-26,
4-21, 4-23 fauna 8-20

emissions O-23, O-30, 8-3, 8-14, federal O-24, 2-19, 2-21, 3-26,
8-16, 8-17, 8-18, 8-21, 3-27, 3-33, 6-7
8-23, B-4, B-12 Federal Constitution O-18, B-13
emissions trading system 8-16 Federal Territory (FT) 1-8, 6-20, 8-7
employment O-19, O-29, O-30, O-32, female labour force participation rate 4-19, 6-4, 6-18
1-2, 1-3, 1-12, 4-7, 4-13, (FLFPR)
4-19, B-10
financial O-18, O-20, O-24, O-29,
Employment Act 1955 [ Act 265 ] 4-7 O-31, 2-21, 2-22, 3-8,
enabling environment O-20, O-30, 4-8, 4-27 3-10, 3-11, 3-15, 3-16,
3-17, 3-18, 3-28, 3-29,
end-to-end 2-16, 2-17, 4-24, 4-28
3-31, 3-32, 3-33, 3-36,
endangered species 8-20 6-7, 6-27, 6-29, 6-34, 8-8,
8-10, 8-21, 8-24
energy efficiency (EE) 8-10, 8-17, 8-18
Financial Education Network (FEN) 6-7, 6-11
energy transition O-20, O-23, O-30, 1-15,
8-2, 8-12, 8-13, 8-14, financial literacy 3-11, 3-18, 3-31, 3-33,
8-16, 8-17, 8-18, 8-21, 6-7, 6-13, 6-16, 6-29,
8-26 6-30, 6-32, 6-8, 6-15,
6-34, 6-38
energy trilemma 8-17
Financial Procedures Act 1957 [ Act 61 ] 2-22
enforcement O-18, 2-6, 2-9, 2-13, 2-20
 Mid-Term Review of the Twelfth Malaysia Plan
Index A-49

fiscal deficit O-17, O-29, 1-2, 1-8, 1-18 geospatial 3-14

fiscal governance O-29, 1-2, 1-12, 1-18 geriatric care 7-18

fiscal management O-29, 1-18 gig economy 4-19, 6-27

fiscal policy 1-3 gig workers O-24, O-32, 4-8, 4-19

fiscal position 6-24, B-11 Gini coefficient 6-3, 6-17, 6-36

fiscal sustainability O-22, O-24, O-29, 1-2, Global Peace Index 7-3, 7-14
1-12, 1-18, 2-21, 2-22,
global trend 4-22
B-11
governance O-18, O-19, O-20, O-21,
fisheries 3-24, 3-25, 3-28, 8-20
O-22, O-25, O-29, O-30,
Fisheries Act 1985 [ Act 317 ] 8-20 O-31, O-32, 2-2, 2-7, 2-9,
2-10, 2-13, 2-14, 2-16,
flora 8-20, B-12
2-17, 2-18, 2-19, 2-20,
food security O-23, 3-24, 3-25, 5-23 2-23, 6-9, 6-11, 6-14,
foreign workers O-32, 4-13, 4-19, 6-25 6-30, 6-33, 6-34, 6-35,
7-6, 7-8, 7-10, 7-13, 7-15,
fossil fuels 5-15, 8-13, 8-17, 8-18
7-17, 7-18, 7-19, 7-20,
Fourth Industrial Revolution (4IR) 2-5, 4-10, 4-25 7-21, 8-2, 8-4, 8-8, 8-12,
8-13, 8-17, 8-19, 8-21,
free trade agreements (FTAs) 3-18, 3-31, 6-31
8-22, 8-24, 8-25
front-end manufacturing 1-17
governance act 2-14
full employment O-15
Government Green Procurement (GGP) 1-16, 5-27
funding O-23, O-32, 3-13, 3-35,
government-linked companies (GLCs) 1-18, 6-25
6-30
Government Research Institutes (GRI) 4-13, 4-24, 4-25
funding facilities 8-23
GovTech Enablers Index 2-18, 2-19
future-ready talent O-20, O-25, O-32, 3-26,
4-2, 4-7 Government-Industry TVET Coordination 4-8
Body (GITC)
G
graduate O-20, O-27, 4-3, 4-15,
gas O-20, O-23, 3-18, 3-26,
4-21
3-29, 3-31, 8-3, 8-4, 8-8,
8-9, 8-12, 8-13, 8-14, green economy 5-25, 5-27, 8-21
8-17, 8-18
green financing O-20, 8-8, 8-24
gazetted 6-11, 8-7
green growth O-20, O-30, 8-18, 8-27
genetic 8-9, 8-15, 8-21, 8-22
green market 5-27, 8-6, 8-17
gentrification 7-20
green mobility 5-9, 8-6, 8-17
geological heritage 8-21
green practices O-18, 3-9, 3-30, 3-31,
geopark 8-7, 8-21 5-14, 5-22
 Mid-Term Review of the Twelfth Malaysia Plan
A-50 Index

green technology 5-27, 8-18 human capital O-21, O-29, 2-9, 2-15
3-36, 5-13, 5-25
greenhouse gas (GHG) 3-29, 3-30, 3-32, 5-22,
5-27, 8-3, 8-8, 8-14, 8-17, Human Papillomavirus 7-8
8-21, B-4, B-12
I
gross domestic product (GDP) O-17 1-3, 1-5, 1-6, 1-8,
illegal immigrants 7-7, 7-16
1-12, 1-13, 1-14, 1-17,
4-3, 4-4, 4-5, 4-15, 4-16, Immigration Department of Malaysia 2-19
4-17, B-3, B-4 import O-17, O-23 1-7, 1-8, 1-14,
groundwater 8-11, 8-21 1-19

H inclusive O-16, O-18, O-19, O-30,

O-31, O-32, 3-11, 3-14,
healthcare O-18, O-19, O-22, O-24,
3-15, 3-25, 3-34, 5-7, 5-9,
O-31, 3-29, 6-6, 6-26,
5-13, 5-25, 5-26, 6-2, 6-3,
6-27, 6-28, 6-29, 6-33,
6-12, 6-13, 6-15, 6-23,
7-1, 7-2, 7-4, 7-8, 7-9,
6-26, 6-28, 6-29, 6-30,
7-12, 7-13, 7-17, 7-18,
6-34, 6-36, 6-37, B-5,
7-23, B-3, B-8, B-9, B-10
B-10, B-13
Heart of Borneo (HoB) 5-11, 8-7
inclusive housing O-18, O-31, 7-10, 7-12,
high growth high value (HGHV) O-29, 1-15, B-8, B-10 7-20

High Performance Sports 7-10, 7-21 Index Crime O-18, 7-3, 7-14

high-income O-16, O-22, O-28, O-29, Indian households 6-7, 6-13, 6-15, 6-26,
O-31, O-33, 1-2, 1-12, 6-27
1-19, 4-2, 4-14, 4-24,
industrial estate O-18, O-31, 3-5, 3-12,
4-28, 4-29, B-3, B-5
3-18, 3-22, 3-33, 5-27,
high-skilled 4-23 B-12

higher education 4-7, 4-13, 4-14, 4-20, Industrial Harmony Index (IHI) 4-7
4-26
Industrialised Building System (IBS) 1-16, 7-10, 7-20
higher education institutions (HEIs) 3-14, 3-36, 4-13, 4-26,
inflation O-17, O-26, O-29, 1-2,
5-23, 6-26, 6-31, 7-6,
1-3, 1-5, 1-8, 1-9, 1-12,
7-15, 7-17, 7-21, 7-22
1-13, 1-17
Highway Network Development Plan 5-26
informal employment 6-28
Sabah and Sarawak 2040
Inisiatif Pendapatan Rakyat (IPR) O-23, O-31, 3-33, 5-23,
homebuyers 7-19, 7-20
5-24, 6-23, 6-24, 6-25,
Housing Development (Control and 7-20 6-27
Licensing) Act 1966 [ Act 118 ]
Inisiatif Usahawan Makanan (INSAN) 6-25
housing industry 7-19
Inisiatif Usahawan Tani (INTAN) O-31, 3-33, 5-24, 6-25
huffaz 6-32
Inisiatif Operator Perkhidmatan (IKHSAN) 6-25
 Mid-Term Review of the Twelfth Malaysia Plan
Index A-51

Inisiatif Pembasmian Miskin Tegar (Inisiatif 6-5, 6-25 L

BMT)
labour O-17, O-20, O-22, O-29,
INNOVATHON 4-25, 4-26 O-32, 1-2, 1-3, 1-7, 1-8,
1-11, 1-12, 1-17, 4-2, 4-7,
innovation 4-2, 4-5, 4-9, 4-10, 4-17,
4-13, 4-14, 4-15, 4-19,
4-21, 4-25, 4-26, 4-29
4-29, 6-14, 6-29, 6-35
integrated circuit (IC) 1-15
land development 5-26, 5-27
Integrated River Basin Management 8-3, 8-15, 8-21
land inventory 7-19
(IRBM)
Le Tour De Langkawi 2022 7-11
integrity O-21, O-22, O-25, O-29,
2-6, 2-7, 2-13, 2-14, B-4, lifelong learning (LLL) 5-13
B-13
Limited Liability Partnership Act 2012 2-13
intellectual property 4-9, 4-13, 4-24, 4-25 [ Act 743 ]

International Organization of Supreme 2-13 local authorities 5-9, 5-15, 5-22, 5-23
Audit Institutions
long-term care 1-9, 1-10, 1-11
internet of things (IoT) 2-5, 2-19
logistics services O-21, O-25, O-32
investment O-17, O-19, O-20, O-23,
Low Carbon Cities Framework 5-22
O-26, O-29, O-31, O-32,
3-10, 3-11, 3-12, 3-13, low carbon O-20, O-22, O-23, O-30,
3-14, 3-17, 3-18, 3-20, O-31, 1-15, 3-18, 3-26,
3-26, 3-28, 3-29, 3-32, 3-29, 3-31, 8-3, 8-6, 8-8,
3-33, 6-9, 6-28, 6-29, 8-13, 8-14, 8-16, 8-17,
6-32, 7-11, 7-18 8-24, 8-27

investor protection mechanism 2-20 M

J Majlis Amanah Rakyat (MARA) 5-10, 6-6, 6-9, 6-11

Jabatan Perkhidmatan Awam 2-6 Majlis Penasihat Perpaduan Negara 7-15

job placement 4-21 Malaysia Digital Hub 4-9

Joint Management Body (JMB) 7-20 Malaysia Government Central Data 2-18
Exchange
K
Malaysia MADANI O-8, 1-2, 1-19, 3-33, 4-21,
Kajian Keberkesanan Intervensi Nilai 2-5
4-25, B-2
Kampung Baru 6-7, 6-13, 6-27
Malaysia Maritime Enforcement Agency 7-16
Karamah Insaniah 4-20
Malaysia Productivity Blueprint (MPB) 1-18
Klinik Desa 7-8
Malaysia Urban Observatory (MUO) 5-22
Komuniti Sihat Pembina Negara (KOSPEN) 5-10 system

Kunming-Montreal Global Biodiversity 8-20, 8-25 Malaysian Administrative Modernisation 2-19

Framework and Management Planning Unit (MAMPU)
 Mid-Term Review of the Twelfth Malaysia Plan
A-52 Index

Malaysian Armed Forces (ATM) 7-7, 7-8, 7-9, 7-17 MyGovernment 2-9, 2-18, 2-19

Malaysian Health Data Warehouse 7-18 MyPerformance 2-5

Malaysian Sports Culture Index 7-5, 7-14 MyProjek 2-8, 2-21, 4-9

Malaysian Urban-Rural National Indicators 5-5, 5-9, 5-11, 5-18, 5-23 N

Network for Sustainable Development
(MURNInets) National Anti-Financial Crime Centre Act 2-13
2019 [ Act 822 ]
Malaysian Wellbeing Index (MyWI) 1-2, 1-8, 7-4, 7-14
National Coastal Zone Physical Plan 5-22
Maqasid al-Shariah 3-33
National Data Sharing Policy 2-17
manufacturing sector 1-7, 1-8, 1-14, 3-18, 3-21,
3-23, 3-29, 3-30 National Digital Identity O-10, O-15, 2-16

marine protected areas (MPAs) 8-20 National Disaster Management Agency 7-17

mechanisation and automation O-18, 3-17, 3-24, 3-30, National Dual Training System 4-8, 5-12
4-19 National Energy Transition Roadmap 8-17
median monthly household income 5-4, 5-7, 5-17, 5-20 6-3, (NETR)
6-14, 6-17, 6-18, 6-20 national food safety system phase 2.0 7-18
Medium Term Revenue Strategy (MTRS) 1-18 National Health and Morbidity Survey 7-4
metaverse 4-22 National Medical Sports Centre 7-21
micro, small and medium enterprises 1-16, 3-7, 3-10, 3-15, National Physical Plan (NPP4) 5-21
(MSMEs) 3-16, 3-17, 3-18, 3-22,
National Security Policy 7-8
3-34, 3-35, 3-36, 4-8, 4-9,
6-9, 6-29, 6-31 national sovereignty O-4, O-17, 7-7, 7-13, 7-16

mineral O-11, O-17, 3-18, 3-26, national sports associations (NSAs) 7-12, 7-21
3-30, 8-7, 8-21 National Sports Day 7-10
minimum wage 4-19 national strategic spatial planning policies 5-14
mining sector O-4, 1-7, 1-17, 3-9, 3-21, National Unity Index 7-3, 7-14
3-26
National Unity Policy O-4, 7-3, 7-6, 7-16
Ministry of Local Government 2-19
Development National Urbanisation Policy 5-9, 5-22

modern agricultural 5-24 National Vaccine Development Roadmap 4-9, 7-8

monetary policy 1-12 natural gas O-9, 1-7, 1-16, 1-17, 3-12,
3-29, 3-31, 5-27, 5-28
multi-tier levy 4-19
natural resources O-6, O-16, 5-27, 8-2, 8-3,
My Pride 7-17
8-7, 8-8, 8-12, 8-13, 8-15,
MyCHAMPION 7-18 8-19, 8-21, 8-26, 8-27

MyGOVCloud 2-18, 2-19, 7-18 non-communicable diseases (NCDs) 1-10, 6-26, 7-8, 7-18, B-3,
B-9
 Mid-Term Review of the Twelfth Malaysia Plan
Index A-53

O planetary health 8-2, 8-16, 8-19, 8-21, B-4,

B-12, B-14
Offender Management Information 7-8
System version 2 (SMPPv2) political donation 2-13

oil and gas 3-26, 3-29, 5-12, 5-21, pollution O-6, O-16, 8-6, 8-8, 8-13,
5-27, 8-9, 8-13, 8-28 8-16, 8-19, 8-21

oil and gas services and equipment 3-9, 3-29, 3-31, 8-4, 8-9, poor households 5-7, 5-20, 6-2, 6-6, 6-15,
(OGSE) 8-18 6-20, 6-22, 6-23, 6-26,
6-37
oil palm 1-7, 3-9, 3-15, 6-33
populated areas 4-4, 4-8, 4-16
old age poverty B-3
poverty eradication programmes 2-6
Olympic Games 7-11, 7-21
Poverty Line Income (PLI) 6-19, 6-20, 6-22
Ombudsman Act 2-13
Prison Incorporated O-10, O-17, 7-17
Omnibus Act 2-17, 2-19
Private Aged Healthcare Facilities and 5-28, 7-18
Open Data Initiative 2-19
Services Act 2018 [ Act 802 ]
operating expenditure (OE) 1-8
private consumption 1-4, 1-7, 1-13
Orang Asli O-5, O-16, 6-2, 6-10,
private investment O-3, O-10, O-12, O-17,
6-13, 6-14, 6-15, 6-16,
1-4, 1-7, 1-11, 1-13, 1-16,
6-33, 6-37
4-13
ownership O-5, O-6, O-10, O-16,
private sector O-3, O-15, 1-3, 1-9, 1-12,
O-17, 4-25, 6-4, 6-8, 6-9,
1-16, 1-17, 3-23, 3-28,
6-13, 6-16, 6-18, 6-27,
5-24, 5-25, 6-8, 6-11,
6-30, 6-32, 7-9, 7-19,
6-24, 6-25, 6-26, 6-27,
7-20
6-28, 6-31, 6-34, B-10
P
procurement process 2-9, 2-22
Panduan Pengurusan Perubahan Sektor 2-17
productivity O-3, O-4, O-6, O-11,
Awam
O-15, O-17, O-18, 1-3,
Pasukan Jabatan Sukarelawan Malaysia 7-16 1-6, 1-7, 1-9, 1-10, 1-12,
patent 4-5, 4-17 1-14, 1-15, 1-16, 2-20,
3-3, 3-8, 3-15, 3-21, 3-22,
paternity leave 6-12
3-24, 3-25, 3-28, 3-29,
Pelan Induk Saliran Mesra Alam (PISMA) 5-22 3-30, 3-34, 3-35, 3-36,
4-3, 4-5, 4-15, 4-17, 4-24,
Pelan Jalinan Digital Negara (JENDELA) 1-16, 5-24
B-10, B-12
Pelan Strategik Pendigitalan Sektor Awam 2-19
Program Bantuan Rumah 5-10, 5-28
Pelan Tindakan Perpaduan Negara 7-15
Program Komuniti Sihat Pembina Negara 7-8
Pangkalan Data Utama (PADU) 1-18, 2-17, 2-21
Program Perumahan Rakyat 1-16, 7-10
petrochemical 5-27
progressive wages 1-18, B-10
 Mid-Term Review of the Twelfth Malaysia Plan
A-54 Index

progressive wage model O-11, O-18, 1-16, 4-19 renewable energy (RE) 1-15, 5-21, 5-27, 8-4,
8-10, 8-14, 8-17, 8-18
protected areas 5-27, 8-20, 8-21
research and development (R&D) 3-13, 3-15, 3-17, 3-26,
Public Complaints Management 2-6, 2-13, 2-19
3-36, B-11
public consumption 1-4, 1-7, 1-13
research, development, commercialisation 1-11, 1-16, 3-14, 4-9, 8-5,
Public Expenditure Review (PER) 1-18 and innovation (R&D&C&I) 8-8, 8-12, 8-15, 8-21, B-10
public healthcare facilities 5-28 Residensi Wilayah 1-16, 6-8
public hospitals 7-17, 7-18 resilience 3-11, 3-20, 3-23, 3-32,
public housing 7-10, 7-19 3-35, 4-20, 4-22, 5-22,
6-9, 8-6, 8-13, 8-16, 8-19
public investment 1-4, 1-7, 1-13, 1-16
retirement villages O-10, 7-20
Public-Private Partnership (PPP) 1-18, 2-22, 7-20
Road Transport Department Malaysia 2-19
public safety 5-12, 5-25, 7-1, 7-2, 7-8,
7-12 Rukun Negara O-4, O-10, O-17, 7-12,
7-15 B-8, B-13
public sector modernisation 2-18, 2-19
rural areas O-5, 5-5, 5-10, 5-14, 5-23,
Public Service Delivery Index 2-16, 2-17, 2-18, 2-19
5-24, 5-26, 6-5, 6-6, 6-22,
Public Service Leadership Model 2-9 6-35, 8-10, 8-15, B-12
public transport O-7, O-8, O-11, O-18, 4-6, rural communities 5-24
4-11, 4-13, 4-18, 4-27,
4-28, 5-9, B-12 rural cottage industries 5-10, 5-24

purchasing power 6-27, 6-37, B-10 rural development O-5, O-18, 5-11, 5-18,
5-23, 5-24, B-8, B-12
Pusat Ekonomi Digital (PEDi) 4-9, 5-11
rural economy 5-10, 5-24
Pusat Komuniti Desa (PKD) 5-10, 5-11, 5-24
rural farmers 5-24
Q
rural infrastructure 5-23
quality education 4-20, 5-15, 6-37
rural leaders 5-24
quality of life O-8, 5-22, 5-23, B-9
rural tourism 5-24
R
rural-urban income ratio 5-5, 5-18
refugees 4-19
S
regulatory framework O-7, O-9, O-16, 2-17,
2-20, 3-27, 3-32, 4-2, salaries and wages 4-3, 4-15
4-12, 4-22
sanctuaries 8-7, 8-20
rehabilitation O-4, O-10, O-17, 7-7,
Sandbox Technology Programme 2-6
7-13, 7-16, 7-17, 8-6, B-8
School Building Condition Index 5-12, 5-28
relative poverty 6-3, 6-17, 6-20
science, technology, engineering and 4-10, 6-27
remote areas 5-15, 5-24, 5-26, 5-28
mathematics (STEM)
 Mid-Term Review of the Twelfth Malaysia Plan
Index A-55

security O-3, O-4, O-6, O-8, O-10, solar O-9, O-16, 1-15, 5-23,
O-17, 7-3, 7-7, 7-8, 7-12, 5-26, 5-27
7-13, 7-16, 7-17
solid waste 5-24
services sector O-4, 1-3, 1-7, 1-15, 3-5,
3-21, 3-23, 5-11 Spatial Characteristics of Rural Malaysia 5-24
System (S-CHARMs)
sharing economy 4-4, 4-8, 4-9, 4-16, 4-22,
6-28 Special Task Force to Facilitate Business 1-16
(PEMUDAH)
Sistem Pengurusan Amalan Nilai 2.0 2-5
sports 6-8, 6-26, 7-1, 7-5, 7-10,
Sistem Profil Kampung Peringkat Nasional 5-10, 5-24 7-11, 7-12, 7-13, 7-14,
(SPKPN) 7-20, 7-22, 7-23

skilled workers 3-30, 6-3, 6-17 sports culture O-4, O-10, O-17, 7-5,
7-14, 7-20
skills 2-15, 4-7, 2-16, 3-14,
3-27, 3-30, 3-32, 3-34, sports excellence 7-10, 7-13, 7-20, 7-21
3-36, 4-13, 4-19, 4-20,
4-21, 6-6, 6-9, 6-26, 6-29, sports industry O-4, O-17, 7-11, 7-12,
6-32, 6-33, B-8, B-9, B-13 7-13, 7-20, 7-21, 7-22

skills mismatch 4-19 sports science and medical services 7-11, 7-21, 7-22

Skim Jaminan Kredit Perumahan 7-9 sports talent 7-12, 7-21

Skim Pembiayaan Industri Sukan 7-11 start-ups 4-8, 4-24, 4-25

smart cities 5-18, 5-22 structural economic reforms O-15, O-17, 1-2, 1-12,
1-15, 1-19
smart farming O-4, O-10, O-17, 1-15,
1-16, 3-14, 3-17, 3-23, subject matter experts 2-15
3-24, 3-28, 5-28
subregional cooperation O-5, O-18, 1-2, 1-9, 5-14,
social anthropology B-13 5-15, 5-16, 5-25, 5-29

social assistance O-16 subsidies O-8, O-9, O-15, O-16,

1-2, 1-9, 1-18, 1-19, 3-25,
social enterprises (SEs) O-8, O-11, O-17, O-18, 3-29, 6-7, 6-11, 6-27
3-16, 3-34, 6-5, 6-31
supply chain 1-2, 1-9, 1-12, 1-17, 1-19
social mobility B-8
sustainability O-2, O-3, O-5, O-6, O-8,
social protection scheme 4-19 O-9, O-12, O-15, O-16,
social wellbeing sub-composite index 1-8 O-17, 3-14, 3-24, 3-26,
3-28, 3-31, 3-32, 3-33,
socioeconomic data repository on 2-17
5-11, 5-23, 5-29, 8-10,
households
8-12, 8-13, 8-17, 8-18,
socioeconomic development O-2, O-5, O-9, O-16, 8-23, 8-24, 8-25, 8-26,
O-18, 5-3, 5-15, 5-21,
8-27
5-25, 5-26, 5-29, 6-10,
6-14, 6-16, 6-20, 6-29, sustainable cities O-5, O-18, 5-5, 5-9, 5-22,
6-33, 6-35, B-9, B-11,
5-23, 5-29
B-12, B-14
 Mid-Term Review of the Twelfth Malaysia Plan
A-56 Index

sustainable development O-6, O-16, 3-21, 3-29, transparency O-7, O-9, O-15, 2-7, 2-8,
6-2, 8-2, 8-13, 8-16, 8-21, 2-13, 2-14, 2-19, 2-20,
8-22, 8-26, 8-27 3-11, 3-31, 3-32, B-13

sustainable growth O-17, O-18, 5-27, B-10 TVET Collaboration Hub (TCH) 4-8

T U

talent development O-6, 2-5, 3-8, 3-13, 3-14, underemployment 4-13, 4-19
3-26, 3-30, 3-32, 5-21
unemployment O-3, O-13, 1-5, 1-8, 1-13,
tax O-16, 1-10, 1-11, 1-18, 6-25
2-21, 3-9, 3-17, 3-26,
Unified Public Consultation 2-7, 2-19
3-27, 6-8, 6-28, 6-29
unity O-4, O-10, O-17
teaching and learning 4-20, 4-21, 4-23
Unit Pemerkasaan Agenda Bumiputera 6-9, 6-30
Teaching Factory model 4-8, 5-12
(UPAB)
Technical and Vocational Education and O-6, O-13, O-18, 3-13,
Unit Peneraju Agenda Bumiputera 6-9, 6-30
Training (TVET) 3-30, 4-3, 4-8, 4-13, 4-14, (TERAJU)
4-15, 4-20, 4-21, 4-26
upskilling and reskilling O-11, O-18, 1-16, 2-15,
technology O-3, O-6, O-8, O-10, 3-8, 3-36, 4-7, 4-19, 4-21
O-11, O-15, O-16, O-17,
O-18, 1-9, 1-11, 1-15, urban development O-5, 5-2, 5-9, 5-11, 5-16,
1-16, 1-17, 1-18, 2-6, 2-9, 5-18, 5-22, 5-23, 5-29
2-15, 2-17, 2-18, 2-19, urban poor 5-23, 6-22
2-20, 2-23, 3-8, 3-13,
urban resilience O-5, 5-14
3-14, 3-15, 3-17, 3-18,
3-23, 3-24, 3-25, 3-26, urbanisation 5-9, 5-22, B-2, B-3
3-27, 3-28, 3-29, 3-30, V
3-31, 3-32, 3-34, 3-35,
6-9, 6-26, 6-27, B-2, B-8, value chain O-4, O-10, O-15, O-17,
3-8, 3-11, 3-12, 3-26,
B-9, B-11, B-13
3-29, 3-30, 3-34, 3-35,
Technology Transfer Offices (TTOs) 4-24 5-8, 6-26, B-10, B-12
telecommunication infrastructure 4-22 value-added 1-9, 1-15, 3-8, 3-15, 3-17,
Third National Urbanisation Policy 5-22 3-23, 3-35, 5-8, 5-15,
6-27
Totally Protected Area 8-7
value-based governance O-15, 2-10, 2-13
tourism O-14, 1-15, 1-17, 3-13,
3-14, 3-17, 3-23, 3-27, venture capital O-18, 3-13, 3-36
3-31, 5-11, 5-15, 5-24, village profiles 5-10
5-27, 6-27
Voluntary Local Reviews (VLR) 5-9, 8-22
trade balance 1-5, 1-13, 1-17
Voluntary National Review (VNR) 8-22
 Mid-Term Review of the Twelfth Malaysia Plan
Index A-57

Voluntary Subnational Reviews (VSR) 8-22

vulnerable groups 1-10, 1-18, 4-24, B-8

waqf O-5, O-11, 4-24, 6-13,

6-27, 6-31, 7-19

waste management 5-9, 5-24, 8-18

Water Sector Transformation Agenda 8-21

2040

water supply 5-23, 5-26, 6-10, 8-11,

8-13

wellbeing O-2, O-3, O-6, O-8, O-11,

O-14, O-17, O-18, 1-2,
3-29, 4-19, 5-2, 5-14,
5-16, 5-22, 5-23, 5-26,
5-28, 6-4, 6-11, 6-16,
6-18, 6-23, 6-27, 6-28,
6-33, 6-34, 6-35, 6-36,
6-37, 7-1, 7-3, 7-4, 7-12,
7-14, 7-16, 7-17, 7-18,
7-23, B-5, B-10

wellness hub 7-9

whole-of-government approach O-3, O-4, O-5, O-13,

O-17, O-18, 2-6, 2-18,
2-19

whole-of-nation approach 2-13, 2-19, 7-16, 8-22

Yayasan Peneraju Pendidikan Bumiputera 6-9

(YPPB)

youth 3-17, 3-28, 6-4, 6-11,

6-14, 6-16, 6-18, 6-27,
6-28, 6-29, 6-34