Malaysia today unveiled new economic forecasts and goals in its mid-term review of the five-year development plan covering 2016 to 2020.
Here are the key targets and forecasts from the report (all are for 2016-2020 period, unless stated otherwise):
Economic targets
Economic growth of 4.5 percent to 5.5 percent a year, versus earlier target of 5-6 percent.
Current account of the balance of payments to remain in surplus at 39.9 billion ringgit (US$9.6 billion) or 2.5 percent of gross national income in 2020. It had earlier targeted US$46.5 billion ringgit.
Inflation to average 2-3 percent annually.
Average real private investments growth of 6.1 percent, down from earlier target of 9.4 percent. Public investment to drop 0.6 percent versus an earlier target for growth of 2.7 percent.
Unemployment below 3.5 percent by 2020 versus earlier projection of 2.8 percent.
Gross exports expected to grow at an annual average of 7.5 percent, while gross imports seen increasing at 7.8 percent annually.
Trade surplus forecast to be US$118.3 billion ringgit in 2020, compared with the initial target of US$57.3 billion.
Per capita income targetted to hit 47,720 ringgit in 2020 from 41,093 ringgit in 2017.
Expects Malaysia to breach the threshold of a high-income nation by 2024.
Fiscal targets
Fiscal deficit seen at 3.0 percent by 2020, versus an earlier target of a balanced budget that year.
Development expenditure ceiling slashed to 220 billion ringgit from original allocation of US$260 billion ringgit for 2016-2020. Operating expenditure to also be reduced.
Sees revenue diversification from indirect taxes and non-tax revenue.
Efforts to be intensified to provide affordable housing and increase home ownership.
Incentives to be considered for developers who provide affordable housing.
Governance and development
Efforts to be undertaken to limit the term of office for the prime minister to two terms, and introduce legislation on political financing.
To undertake a review to formulate legislation providing tougher actions and better management of misconduct and wrongdoing of public officials.
To establish a task force to conduct a comprehensive audit and review across public sector institutions and agencies.
To continue the “Bumiputera agenda” – an affirmative action policy for the majority Malay population and the country’s indigenous groups – at the national level through implementation of inclusive policies and initiatives.