'Anchoring growth on people' - PM unveils 11MP

Prime Minister Najib Abdul Razak is unveiling the Eleventh Malaysia Plan (11MP) in Parliament.

This is the second five-year plan presented by Najib, the first being in 2010.

However, unlike during his first five-year Malaysia plan, shortly after he rose to become prime minister in 2009, the country is now facing a gloomier economic situation.

Aside from the weak ringgit and collapse in the global oil price, which have hurt the country's revenue, Najib is also under siege over the massive RM42 billion debt accumulated by 1Malaysia Development Bhd (1MDB).

The plan will be the last before Putrajaya's widely touted goal of achieving developed nation status by 2020.

Following are the highlights of the 11MP, which has the theme, 'Anchoring Growth on People', according to Bernama.

• The five-year plan reaffirms the government's commitment to the people, and the belief that growth cannot be measured by economic success alone.
   
• The plan reckons that the well-being of the rakyat and a commitment inclusive and sustainable growth are necessary hallmarks of an advance nation.
   
• Malaysian economy to benefit from more robust global economic prospects, recovery of commodity prices and benign global inflation.,

• 11MP also looks beyond 2020 with Malaysia to remain as an open economy, regionally and globally integrated post-2020.

• Malaysia's GDP to hit a whopping RM2.6 trillion in 2030 (RM1.4 trillion in 2020).

• More than 40 percent of total employment will comprise skilled workers in 2030 (2020:35 pct).

• The GDP per capita is projected to more than double to RM117,260 in 2030 (2020:RM54,890).

• World trade is estimated to grow to US$44 trillion in 2030 (US$26 trillion forecast in 2020).

• 11MP targets the real Gross Domestic Product to expand at 5.6 percent per annum.

• Labour productivity to increase to RM92,300 in 2020 (2015:RM77,100).

• Gross National Income (GNI) per capita to reach RM54,100 (US$15,690) in 2020.

• Average monthly household income to increase to RM10,540 in 2020 (2014:RM6,141)
   
• The share of compensation of employees to GDP to increase to at least 40 percent in 2020;(2015:34.9 pct).

• The Malaysian Well-being Index to increase by 17 pct per annum, an indicator of improvement in the well-being of the rakyat.

• Inflation to remain benign at below 3.0 percent.

• 1.5 million jobs to be created by 2020.

• Growth would be driven by the private sector, with private investment expanding at 9.4 percent per annum.

• Manufacturing and services sectors to contribute more than 75 percent of the GDP.

• Balance of payment projected to remain in surplus at 2.6 percent of GNI.
   
• The federal government's total debt to further decline to below 45 percent by 2020.

• Revenue to expand by 7.9 percent per annum and the dependence on oil-related revenue to decline to 15.5 percent by 2020.

• The introduction of GST will bring in a revenue of RM31.4 billion per annum over the next five years, compared with RM15.5 billion collected through the sales and services tax during the 10MP.
   
• Literacy rate has increased to 98 percent, from 75 percent in 1970.
   
• National GINI Ratio-to-Contract to 0.385 in 2020, from 0.401 in 2014.
   
• Poverty rate dropped to 0.6 percent in 2014, from 49.3 percent in 1970.
   
• Govt eyes average household income of over RM5,000 per month for "bottom 40 pct" group by 2020.
   
• New power plants to be built at an estimated cost of RM28 billion, generate 7,626 MW of electricity and create 35,000 jobs under 11MP.
   
• All five regional development corridors attracted RM307 bln in investments between 2011 and 2014.
   
• Malaysia will develop four major cities,namely Kuala Lumpur, Johor Baharu, Kuching and Kota Kinabalu, as growth catalystcities in order to maximise benefits for the residents and to stimulate national development.
   
• Size of country's middle-class expected to increase to 45 per cent by 2020.
            

11MP: Six strategic thrusts:

1) Enhancing inclusiveness towards an equitable society;

2) Improving well-being for all;

3) Accelerating human capital development for an advanced nation;

4) Pursuing green growth for sustainability and resilience;

5) Strengthening infrastructure to support economic expansion; and

6) Re-engineering growth for greater prosperity.