Malaysia to Vote on National Development Plan
Malaysia’s parliament will today vote on the 12th Malaysia Plan.
The five-year development plan— introduced by Prime Minister Ismail Sabri Yaakob and postponed due to the pandemic—is aimed at improving the nation’s COVID-struck economy. By granting $129bn to several infrastructure and transportation projects, the government hopes to turn the country into a lucrative business center while also lowering nationwide poverty and income inequality.
Under the plan, Kuala Lumpur will allocate large capital to build additional highways and roads. As a result, large Malaysian companies will be able to make direct contact with small businesses in rural areas. Such notable construction projects will be similar to the current West Coast Highway project which looks to connect the suburban state of Perak to the Capital. Kuala Lumpur will also aim to solidify foreign investor confidence. The target audience here will mainly be technological and renewable energy companies overseas. However, while small and medium sized businesses will flourish, this will not necessarily mean that Malaysia’s income gap will narrow down.
All things considered, these reforms will likely be more successful than Malaysia’s previous development plan which was halted by the pandemic, laying the groundwork for Malaysia’s GDP to rise considerably in the long-term.
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