Prime Minister Datuk Seri Anwar Ibrahim today unveiled the 13th Malaysia Plan (2026–2030) in Parliament, outlining the government’s strategic roadmap to drive inclusive economic growth, social reform and technological transformation over the next five years.
He said that under the Madani administration, fiscal reform measures had succeeded in consistently reducing the national deficit – from 5.5 per cent in 2022, to 5 per cent in 2023, and 4.1 per cent last year, with a target of 3.8 per cent this year.
“The government has successfully reduced its new debt commitments from around RM99 billion in 2022, to RM92.6 billion in 2023, and RM76.8 billion in 2024,” Anwar said.
“This significant achievement puts us on a solid path towards achieving a fiscal deficit of three per cent by reducing new debt year on year.”
The nine key initiatives outlined under the 13th Malaysia Plan are:
Ensuring transparent, responsive and efficient public services
Comprehensive reforms will be implemented through the Government Service Efficiency Commitment Act 2025, with priority given to reducing regulatory burdens on citizens and businesses.
The judiciary, including the Syariah Court, will be improved via GovTech initiatives. Enhancements to the e-Syariah system and digital case recording will streamline processes for the public, court officials and Syariah lawyers. The government will also proceed with the development of the Malaysian Syariah Judicial Academy.
Malaysia aims to emerge as an economic leader in Asia, rooted in its own identity and the cultural wisdom of the East.
Advancing towards a nation founded on AI
The National Artificial Intelligence (AI) Action Plan 2030 will drive talent development, research and commercialisation to support widespread AI adoption.
Upgrades to digital infrastructure aim to create new economic opportunities and attract strategic investments, particularly in the data centre sector. This will also support online education, e-commerce and smart applications.
By 2030, the government targets 5G coverage reaching 98 per cent of populated and industrial areas, including rural zones, and aims to produce at least 5,000 digital entrepreneurs.
Boosting the growth of the high-growth, high-value industry and strategic sector
Malaysia aims to increase halal exports to RM80 billion and raise the halal sector’s gross domestic product contribution to 11 per cent. This will be supported by the Malaysian Halal Commission and new Halal Industrial Parks in Melaka, Perak and Kelantan.
The digitalisation of financial services will continue, with a focus on asset tokenisation, central bank digital currencies and expanded sandbox platforms.
The tourism sector, which has rebounded strongly, remains a priority. Tourist spending reached RM102.2 billion in 2024.
Development of tourism investment zones will focus on Johor, Melaka, Negeri Sembilan and Sarawak through federal-state-private collaboration.
Ensuring balanced regional economic growth and reinforcing rural development
Basic infrastructure will be strengthened to stimulate economic activity and attract strategic investments, especially in rural areas and development zones owned by the Federal Land Development Authority, the Federal Land Consolidation and Rehabilitation Authority, and regional development boards.
Integrated public transport systems in major cities will be upgraded. These include 300 new demand-responsive transport vans to enhance first and last mile connectivity, 1,200 buses and 217 new passenger train sets to increase service frequency.
The road-to-rail initiative aims to raise freight rail usage from 6 to 13 per cent to reduce road accidents.
In Sabah and Sarawak, efforts will focus on positioning both states as sustainable national energy hubs with regional competitiveness.
Strengthening Malaysia’s participation and leadership in the global economy
To attract high-quality investment, the Johor–Singapore Special Economic Zone will include a one-stop investment centre to promote regional integration.
Malaysia is leveraging its Asean chairmanship to lead initiatives such as:
i. Asean Power Grid (APG) – to increase electricity supply security between Malaysia, Vietnam and Singapore
ii. Asean Connectivity by Rail – linking the Asean region to the world through a railway network
iii. Asia Zero Emission Community (AZEC) – Asean’s commitment to global climate change efforts
Malaysia is also expanding its export and investment markets to new regions, including Europe, Brazil, Russia, India, China and South Africa (BRICS), the African continent, and Organisation of Islamic Cooperation member countries.
The local franchise industry will be further internationalised through export facilitation and digital marketing.
Tackling the rising cost of living
Initiatives such as STR (direct cash aid) and SARA (Basic Rahmah Contribution) will continue, alongside the expanded Payung Rahmah programme – featuring Jualan Rahmah, Menu Rahmah, Kafe Rahmah and Bakul Rahmah – to provide affordable food options.
Price monitoring will be intensified to ensure transparency across the supply chain.
The government will also help reduce household utility bills, including through Tenaga Nasional’s Time-of-Use scheme.
Developing a social system centred on ‘Madani citizens’
Programmes like the Malaysian Unity Journey will promote values, education and intercultural dialogue. A Malaysian Harmony Charter will be introduced to guide interfaith and interethnic relations.
RM67 billion will be allocated to education for the construction of new schools, upgrades, and improvements to KEMAS kindergartens and public institutions of higher education.
School construction will become a prerequisite for large-scale housing projects. Vertical schools will be expanded to address overcrowding and limited land availability.
To improve educational outcomes, the government is moving towards making pre-school compulsory from the age of five.
Improving the quality of life for all Malaysians
Healthcare reform will focus on sustainable financing and wider access to quality, affordable services. Domestic pharmaceutical production and the use of generic medicines in both public and private sectors will be increased.
RM40 billion is allocated to the health sector under the plan, including to reduce out-of-pocket expenses.
One million affordable homes will be built between 2026 and 2035 through public–private partnerships.
The Technical and Vocational Education and Training (TVET) curriculum will be expanded to include the field of ageing care, with special incentives for students undergoing related industrial training.
Food import sources will be diversified to improve food security, alongside stricter regulation of imported food safety and quality.
Promoting social justice and equal opportunities
The retirement age will be reviewed in line with Malaysia’s demographic shift.
Support for persons with disabilities will be strengthened. As of June 2025, nearly 171,000 children with learning difficulties, including autism, have been registered.
To raise women’s labour force participation to 60 per cent, especially among mothers, more quality childcare centres and training will be introduced.
The Gate to Global programme will be expanded to support Bumiputera entrepreneurs in entering international markets. Bumiputera socio-economic development in Sabah and Sarawak will include more business premises and better access to financing.
Orang Asli students will receive additional schooling assistance and benefit from community-based schools.
Low-income Chinese and Indian communities will be supported through integrated initiatives in education, entrepreneurship and housing.
Anwar negotiates lower US tariff with Trump
Anwar also told Parliament he had spoken to US President Donald Trump, who is expected to announce a lower tariff on Malaysian goods tomorrow.
On April 3, Trump announced sweeping global tariffs, including a 24 per cent rate on Malaysian products. This was increased to 25 per cent on July 8, effective Aug 1.
Anwar said Trump would also attend the Asean Summit in Kuala Lumpur this October.
“He expressed his highest appreciation for Malaysia’s effective and positive role in resolving the conflict between Thailand and Cambodia.
“We also discussed tariffs in the spirit of free trade. After I explained Malaysia’s position, he agreed to review the rates no later than tomorrow,” Anwar added.
Main image: Anwar Ibrahim/Facebook
