12MP to set path for M’sia becoming a high-income nation

By S. Laveenya

KUALA LUMPUR, Aug 29: To recover the country’s growth following the Covid-19 epidemic and therefore achieve the goal of becoming a high-income economy as early as 2024, the government will need to focus on the digital economy and digital infrastructure, as well as productivity, under the 12th Malaysia Plan (12MP).

Yasuhiko Matsuda, World Bank Representative and Country Manager for Malaysia, said that the five-year development plan focuses on vulnerable populations, regional inequalities, the need to connect the country’s economy with global climate change concerns, and making the economy stronger ecologically.

He added that the 12MP was developed during a difficult time owing to the uncertainty caused by the COVID-19 pandemic, which made economic predictions difficult because the situation changed fast on a weekly and daily basis.

“We believe that a long-term strategy is essential. What matters is how it is put into action,” he said today during a virtual briefing on the Malaysian economy.

Meanwhile, Apurva Sanghi, the World Bank’s Chief Economist for Macroeconomics, Trade, and Investment, stated that short-term fiscal assistance for individuals impacted by the COVID-19 epidemic was still required and critical to ensuring ongoing recovery.

Malaysia, he added, needs to enhance its medium-term fiscal plan since restricted financial headroom would hinder long-term fiscal sustainability.

“Malaysia must strengthen its tax and tax administration structure, as well as spend more effectively, in order to decrease leakages,” he added.