KUALA LUMPUR, May 21 — Malaysian Prime Minister Datuk Seri Najib Razak laid out his strategies to boost growth through 2020, seeking to re- instill confidence in his management of the economy after months of attacks from former leader Tun Mahathir Mohamad.
The government will focus on creating a larger pool of high-skilled workers and improve productivity to increase investment, according to a development plan presented by Najib in Parliament today.
Transport and logistics will be a crucial driver of growth with about 75 per cent of the population seen residing in urban areas by the end of the decade, the report known as the 11th Malaysia Plan showed.
The plan is Malaysia’s final five-year strategy before its target to become a high-income nation by 2020, a vision conceptualized more than two decades ago when Mahathir was premier.
Najib has seen his approval rating slide to about 40 per cent as he undertakes unpopular economic measures to plug a budget gap, and as rising debt at a state investment company threatens the nation’s credit rating.
“The Eleventh Plan emphasizes on re-engineering economic growth to enhance socio-economic development,” the report said. “The continued focus on knowledge-intensive sectors and high value-added activities will allow Malaysia to further capture growth opportunities and attract quality investments.”
The Malaysian economy is forecast to grow 4.5 per cent to 5.5 per cent this year, down from an earlier projection of as much as 6 per cent. The government trimmed expectations as it cut expenditure amid lower than expected revenue from oil.
The administration is targeting 5 per cent to 6 per cent growth annually from 2016 to 2020, it said today.
It projects gross domestic product of RM1.4 trillion in 2020 and RM2.6 trillion in 2030. — Bloomberg
