Economists see Malaysia's 13MP growth goals as achievable

Kuala Lumpur: Malaysia's 13th Malaysia Plan (13MP) growth goals of 4.5 percent to 5.5 percent are achievable with the right policy mix, economists said.

CIMB Securities said in a note on Thursday that the 13MP growth expectation is achievable, given Malaysia's economy grew by an average of 5.2 percent during 2021-2024, supported by robust private consumption.

"We view the plan as a strategic blueprint prioritizing fiscal consolidation while driving growth through semiconductors, artificial intelligence, clean energy, the halal industry, and rare earth elements," it noted.

Meanwhile, Hong Leong Investment Bank Research said in a note on Friday that the 13MP was largely in line with expectations, with key initiatives anchored on the MADANI framework and continuity across flagship policies such as the National Energy Transition Roadmap, New Industrial Master Plan 2030, and National Semiconductor Strategy.

Separately, Hong Leong said it is encouraged to see a lower fiscal deficit target at less than 3 percent of GDP by 2030. In its view, this is the government's commitment to responsible public spending and continued reform intent.

Maybank Investment Bank also said in a note on Friday that the timing of the 13MP could not be more timely, considering Malaysia is at a crossroads to balance external headwinds despite strong domestic tailwinds.

"The 13MP is set to raise development spending to boost domestic demand as the country's key growth engine. Standouts in the 13MP were the focus on high-value manufacturing and industrial parks, with broad infrastructure spending as enablers," said the research house.