RHB | Malaysia | The Eleventh Malaysia Plan, 2016-2020 – Focusing More on Domestic Engine Of Growth

Economic Research	21 May 2015
Malaysia
Economic Highlights
The Eleventh Malaysia Plan, 2016-2020 – Focusing More on Domestic Engine Of Growth The focus of the 11MP represents the last leg of the country’s aspiration to transform itself into a high income nation by 2020, via an increase in productivity, which will result in multifactor productivity-driven (MPF) contributing 40.0% of the growth target, and a sustained increase in investment. Also, the Government highlighted the need to strengthen macroeconomic resilience for sustained growth via maintaining the private sector as the major driver of growth. However, just like in the past Malaysia plans, we believe this is not going to be an easy task given the lack of skilled manpower in the country and a drop in the country’s education standard that will likely be a stumbling block. Hence, there are downside risks to the Government’s 5-6% p.a. GDP growth target in the 11MP, in our view, if the productivity and capital contributions fall short of expectation. Economist:  Peck Boon Soon  | +603 9280 2163 Economist:  Vincent Loo Yeong Hong  | +603 9280 2172