Only one – labour productivity – of the six multi-dimensional goals set during the 11th Malaysia Plan (11MP) was achieved, according to a review of the last plan.
The 11MP review, which was contained in the 12MP, said that the previous five-year plan had failed to meet the gross domestic product (GDP) growth, gross national income (GNI) per capita, share of compensation of employees (CE) to GDP, average monthly household income and Malaysian Wellbeing Index (MyWI) targets.
“The GDP was on track to register growth within the target range of 4.9% per annum over the 2016-2019 period. However, the contraction in 2020 due to the Covid-19 epidemic affected the growth trajectory for the overall period.
“The epidemic also led to unfavourable labour market conditions that affected the earnings of workers and households, thus resulting in the lower share of CE to GDP, average monthly household income and MyWI,” said the report.
The 12MP report was tabled by Prime Minister Ismail Sabri Yaakob (Bera-BN) in Parliament today.
Meanwhile, only four out of the 12 macroeconomic targets identified in 11MP were achieved.
They were real public consumption, trade balance, current account of the balance of payments and inflation.
“Growth of real public consumption was higher, supported by government spending on emoluments as well as supplies and services while the trade balance and current account of the balance of payments surpassed their targets due to sluggish imports following lower domestic demand.
“Inflation was stable and lower than targeted due to dampened household spending and lower global crude oil prices. The remaining macroeconomic targets were not met due to lower domestic and external demand,” said the report.
According to the report, the Malaysian economy registered a moderate average annual growth rate of 2.7% over the 11MP period as it was significantly weighed down by the impact of the Covid-19 outbreak
“As an open economy, Malaysia’s growth is influenced by the external economic environment.
“The global economy moderated at an annual rate of 3.4% between 2016 and 2019 amid a series of economic shocks. These include the inward-looking policies and normalisation of monetary policy among major economies, uncertainty over the outcomes of Brexit negotiations as well as volatile commodity prices,” said the report.
Amid the Covid-19 epidemic and other uncertainties the global economy experienced its first recession since the Global Financial Crisis 2008/2009 as it contracted by 3.3% in 2020, due to the epidemic. The pandemic has affected more than 200 countries with significant social impact, resulting in new behavioural norms.
“It has also severely interrupted economic activities and the global supply chain following lockdown measures undertaken in an attempt to halt the spread of the virus. Overall, the global economy grew by 2% per annum during the period.”
As a result of this, Malaysia’s GNI per capita in current prices increased by 3% per annum from RM36,710 in 2015 to RM42,503 in 2020.
“Malaysia’s gap to achieve a high-income status is 20.4%, based on the minimum threshold of a high-income economy set by the World Bank at US$12,696 (RM53,126) for 2020.” – TMI