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A ROBUST RM611 billion investment portfolio under the 13th Malaysia Plan (RMK13) is projected to usher Malaysia into the ranks of high-income economies by 2030—assuming sustained annual growth of around 5 per cent, according to analysts.
Bank Muamalat’s chief economist, Dr Afzanizam Abdul Rashid (pic), said the government’s RM430 billion development expenditure over five years, compared to RM400 billion in RMK12, reflects serious intent to accelerate economic transformation.
“On average that equates to RM86 billion per year, most of which will be directed to the economic and social sectors,” he said.
“If economic growth holds steady at around 5 per cent and population growth remains between 1.1 to 1.2 per cent, Malaysia can cross the high-income threshold by the end of the decade.”
Currently, Malaysia’s gross national income (GNI) per capita stands at approximately US\$12,000. Dr Afzanizam noted that reaching the US\$14,000 threshold would require sustained economic growth and a strengthening ringgit—possibly at RM3.90 to RM4.00 against the US dollar by 2030.
He made these projections during a podcast discussion on RMK13 hosted by leading business news editors in Bangsar.
Former Chairman of the Malaysian Institute of Economic Research (MIER), Tan Sri Sulaiman Mahbob, described the growth target of 4 to 4.5 per cent per year as realistic—provided domestic political stability is maintained.
“External headwinds such as the Palestine conflict, US trade tariffs, and global economic volatility are the major risks to this outlook,” said Sulaiman. Yet, he expressed confidence that effective strategies such as market diversification could enable Malaysia to exceed the 4.5 per cent benchmark.
“I was pleased that the Prime Minister briefly mentioned exploring new markets. This is crucial, as we cannot rely solely on traditional channels,” he stated. Sulaiman pointed to the vast potential in the Caspian region, home to over 370 million people, where only Petronas currently operates. He urged agencies like MIDA, MATRADE, and EXIM Bank to actively promote Malaysian small and medium enterprises (SMEs) and palm oil across new frontiers.
“Our domestic base is solid. Many investments have been secured for MIDA over the past three years. Now we must focus on strengthening the resilience and productivity of our firms,” he advised.
Sulaiman also proposed adopting a TIGER model—acceleration powered by Technology and Innovation Led Economic Growth and Resilience—to maintain Malaysia’s competitive edge on the global stage. - July 31, 2025
