Economic highlights of the 13th Malaysia Plan 2026-2030

 

Prime Minister Datuk Seri Anwar Ibrahim received the 13MP document from Second Finance Minister Datuk Seri Amir Hamzah Azizan at Seri Perdana, Putrajaya. - Photo: AFIQ HAMBALI / Prime Minister's Office

KUALA LUMPUR: The following are the economic highlights of the 13th Malaysia Plan (13MP) 2026-2030 which was tabled by Prime Minister Datuk Seri Anwar Ibrahim in Parliament today, with the theme "Melakar Semua Pembangunan” (Redesigning Development).”

- Investments of RM611 billion required to successfully implement 13MP

- Development allocation from the government is estimated at RM430 billion, with RM227 billion to be channelled to the economic sector.  

- Gross domestic product (GDP) growth is targeted at 4.5-5.5 per cent annually, to be led by domestic demand, particularly private consumption and investment 

- Average real private investment is expected to grow by 6.0 per cent per year, while average real public investment is projected to grow by 3.6 per cent per year. 

- RM120 billion will be allocated for national development investment for 2026-2030. 

- The federal government's fiscal deficit is expected to gradually decrease to below 3.0 per cent of GDP, with government debt not exceeding 60 per cent of GDP.  

- The average inflation rate is expected to remain stable between 2.0 per cent and 3.0 per cent annually. 

- Gross National Income (GNI) per capita is targeted to increase to RM77,200. 

- Gross exports are expected to grow by 5.8 per cent annually, with broader trade opportunities.

- Gross imports are expected to moderate to 6.1 per cent per year from 2026-2030, compared to 14.4 per cent during the first four years of 12MP. 

- The trade balance is expected to remain positive at RM116.3 billion, with a current account surplus of 2.2 per cent of GNI by 2030. 

- Malaysia aims for Electrical & Electronics product exports to approach RM1 trillion by 2030. 

- The government targets to increase halal export value to RM80 billion, with the halal industry contributing 11 per cent to GDP by 2030. 

- The manufacturing sector is projected to grow by 5.8 per cent per year. 

- RM61 billion will be allocated for development projects under public-private partnership (PPP).

- The services sector is projected to grow by 5.2 per cent per year. 

- The agriculture sector is expected to grow by 1.5 per cent per year. 

- The mining and quarrying sector is projected to expand by 2.8 per cent annually from 2026-2030, supported by increased production of natural gas and crude oil. 

- By 2030, Malaysia aspires to become a high-income nation and be among the world’s top 30 economies. 

- Malaysia must rise quickly to lead in technology and produce world-class ‘Made by Malaysia’ products and services by 2030. 

- Malaysia sets a direction to lead the Southeast Asian economy in artificial intelligence (AI), digital technology, and renewable energy, aspiring to be an influential global player. 

- The National AI Action Plan 2030 will drive talent development, research, and commercialisation of technology to support broad AI adoption. 

- Implementation of NIMP 2030 (New Industrial Master Plan), NSS (National Science Strategy), and NETR (National Energy Transition Roadmap) will be intensified in 13MP to drive inclusive and sustainable economic growth. 

- The government is considering nuclear energy as one of the clean, competitive, and safe energy sources. 

- Malaysia targets to increase the share of installed capacity to 35 per cent by 2030 from 29 per cent at present.

- The government is committed to accelerating the development of the rare earth industry, in cooperation with state governments.

- The government will strengthen the green economy through various initiatives. 

- Focus will be placed on strengthening economic integration through Free Trade Agreements (FTA) and resuming Malaysia-EU (European Union) negotiations. 

- Malaysia’s participation in FTAs such as Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and Malaysia-Turkey FTA (MTFTA) will be enhanced to expand markets and strengthen trade relations. 

- Malaysia will continue to leverage BRICS and ASEAN to reduce dependency on existing trade partners. - Bernama 

Related stories:

• Reforming semiconductor industry, revitalising global services among 13MP focus areas
• First and last-mile connectivity to improve under 13th Malaysia Plan
• Extra RM20bil allocated for flood mitigation plans nationwide, says Anwar
• Minimum wage to be expanded to cover grads, semi-skilled workers, says PM
  
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Cut red tape, let business grow’, 13MP must clear the way for private sector growth, say economists

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BE LABEL-SAVVY TO STAY HEALTHY for organic food among health-conscious consumers

 

PETALING JAYA: The multi-billion-­ringgit global organic food and beverage market is expected to grow more by 2030, according to market research firm Grand View Research.

For Malaysia, there is a growing appetite for organic food among health-conscious consumers.

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But how do people know whether the “organic” foodstuff they buy are truly organic?

An important source is the myOrganic sticker that is usually found on the packaging of organic foodstuff sold at shops.

The myOrganic certification scheme is used to promote, implement and facilitate the adoption of organic agriculture, explains Agriculture Department (DOA) director-general Datuk Nor Sam Alwi.

“This certification scheme covers various organic activities, including fresh produce farming, beekeeping, the breeding of organic plant varieties and wild harvesting.

ALSO READ: Verifying food markers not quite an organic process

“The Malaysian Organic Certification Scheme is now known as myOrganic,” she said in in a statement to The Star.

To safeguard the authenticity of certified organic products, the regulation of organic items is primarily governed under the Food Act 1983 and Food Regulations 1985, overseen by the Health Ministry, she added.

The Agriculture and Food Security Ministry has also registered the myOrganic certification logo with the Intellectual Property Corporation of Malaysia (MyIPO) as a legitimate trademark.

“If the DOA receives complaints about the misuse of this logo, the matter will be referred to the Domestic Trade and Cost of Living Ministry for further investigation.

“In cases where fraud is confirmed, the offending company may be prosecuted under the Trademarks Act 2019,” she said.

Upon conviction, offenders may face a fine of up to RM10,000 per item bearing the misused trademark, imprisonment of up to three years or both.

ALSO READ: How bugs help you spot organic durians

Nor Sam said the department has issued guidelines to certificate holders outlining the terms and conditions for the use of the myOrganic logo.

“However, we also rely on the cooperation of consumers to address the risks of fraud and logo misuse by lodging complaints where appropriate.

“Matters related to processing, repackaging or importation of organic products fall strictly under the jurisdiction of the Health Ministry,” she said.

To create awareness, the department is actively carrying out promotional activities targeting consumers through physical events and social media platforms, as well as by engaging with local organic associations.

“These initiatives focus on promoting Good Agricultural Prac­tices (GAP), highlighting the importance of recognising the myOrganic logo, encouraging the purchase of certified farm produce.

“Additionally, consumers can verify the validity of organic certification by visiting the DOA website at www.doa.gov.my under the list of certified recipients,” she said.

Dr Juju Nakasha Jaafar, senior lecturer at the Faculty of Agri­culture at Universiti Putra Malay­sia, said there has been confusion on the authenticity of organic products.

“For example, a seller might claim he is selling pesticide-free or chemical-free vegetables, which gives consumers the impression that the products are organic.

“In reality, these vegetables may be free from chemical pesticides but are still grown using chemical fertilisers and thus do not qualify as organic,” she said.

“For vegetables to be certified as organic, all input must be completely natural.

“This includes compost fertilisers, organic pesticides and non-genetically modified organism seeds.”

These are outlined in the myOrganic certification guidelines.

“Consumers can look for the myOrganic logo on vegetable products to ensure they are truly organic.

“The DOA strictly regulates this certification,” she said, adding that more details can be found on the DOA website.

Federation of Malaysian Consumers Associations (Fomca) secretary-general Dr Saravanan Thambirajah said traders must verify the certification documents provided by suppliers before selling or labelling any product as organic.

“They should only use the term ‘organic’ when backed by certification,” he said.

Saravanan said consumers should look for official certification logos on packaging and not rely solely on general claims like ‘natural’.

“If you suspect a product is being falsely marketed as organic, you should report it to the Domestic Trade and Cost of Living Ministry or lodge a complaint with Fomca,” he added.--

By KHOO GEK SAN, DIVYA THERESA RAVI and RAGANANTHINI VETHASALAM

https://www.thestar.com.my/news/nation/2025/07/12/be-label-savvy-to-stay-healthy

Govt urged to intervene as new US tariff brings jitters for businesses

 

 

Trying times: The tariff would significantly impact manufactures like those in Bayan Lepas, Penang. — CHAN BOON KAI/The Star

JOHOR BARU: The 25% tariff imposed by the United States on Malaysia has sent jitters through the manufacturing sector, with many warning of cancelled orders and a potential wave of business closures.

The furniture industry, for one, fears losing business to Vietnam, which faces a 20% tariff, while some other industries are even thinking of relocating.

Malaysian Furniture Council president Desmond Tan said Vietnam, Malaysia’s closest competitor in the global furniture market, produced a similar range of products and targets the same export destinations – especially the United States.

The tariff for Vietnam was reduced to 20% from the original 46%.

“Since the announcement was only made yesterday (Tuesday), it is still too early to gauge the full extent of its impact on order volumes but the council will continue to monitor developments closely,” he said.

Tan said the industry was also being squeezed by rising costs on the domestic front.

“These include the expanded Sales and Service Tax (SST), which now imposes a 5% tax on raw materials and directly drives up production costs. We also face higher labour expenses with the new minimum wage,” he added.

The new Employees Provident Fund contributions for foreign workers would add further strain while fuel and electricity prices had also gone up, he said.

The council is now urging Putrajaya to commence urgent talks with the United States to negotiate a reduction of the tariff.

He also appealed for a rethink on the new taxes and price hikes to lower production costs, and for export incentives to protect jobs.

The United States accounts for 60% of the country’s total furniture exports, totalling RM2.039bil in just the first four months of the year.

Malaysia also exports furniture to Singapore, Australia, Japan and the United Kingdom, among others.

Muar Furniture Association president Steve Ong said the new tariff was a major blow, as Muar supplied more than RM4bil worth of furniture to the United States in 2024.

It made up 67% of Malaysia’s total furniture exports there, he said.

“The 25% tariff will likely lead to clients cancelling orders and local manufacturers scrambling to stay afloat. This is an urgent crisis,” Ong said.

Another industry player urged the government to act swiftly.

“If nothing is done, a globally competitive industry like ours could shrink or even collapse,” said Goh Song Huang.

“At a time like this, we need clear, steady policies and a government that understands and responds to the real pressures we face.”

In Penang, local industries are bracing for reduced demand with some considering relocation.

“Companies in Malaysia may be forced to shift parts of their production to countries with lower tariffs,” said Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai, adding that higher prices driven by import tariffs tend to suppress global demand.

“When the cost of imported goods rises, demand naturally falls. In the end, everyone along the supply chain, especially buyers of raw materials, will be affected,” he said.

Earlier, it was reported that semiconductor exports would be exempt from the tariffs but it is unclear whether exemptions will remain under the new tariff regime.

“Vietnam’s tariff is at 20%, which gives them a pricing advantage. US buyers may look for cheaper alternatives, putting Malaysian exporters at a disadvantage,” he said.

Federation of Malaysian Manufacturing (FMM) Penang chapter chairman Datuk Seri Lee Teong Li said the 25% tariff would significantly impact exporters to the US.

“It’s a substantial amount. For local manufacturers shipping to the US, it will reduce profit margins. Costs will rise, and customers may start sourcing from other suppliers.

“Even when the 24% tariff was announced in April, it was already a heavy blow. We had hoped for a reduction, not an increase,” he said.

He noted that for now, the strategy was to ship out as much as possible before the Aug 1 deadline.

Meanwhile, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) is urging the government to temporarily lower the expanded SST to 4% to ease the financial burden on businesses and preserve Malaysia’s competitive edge.

Its president Datuk Ng Yih Pyng said the government should reduce the expanded SST rate from the current 6%-8% for the first two years of implementation.

He said businesses, already grappling with higher operational costs driven by multiple government-imposed measures, would now have to face the the tariff headwinds and global uncertainties as well.

Source link https://www.thestar.com.my/news/nation/2025/07/10/govt-urged-to-intervene-as-new-us-tariff-brings-jitters-for-businesses

Why the cooperative spirit of ‘greater BRICS’ resonates worldwide

The 17th BRICS Summit is being held from July 6 to 7 in Rio de Janeiro, Brazil. This marks the first high-profile gathering of the "greater BRICS family" in its new "11+10" format - comprising 11 member countries and 10 partner countries - following Indonesia's official entry into the BRICS cooperation mechanism in January and Vietnam's official joining as a BRICS partner country in June. The summit is themed "Strengthening Global South Cooperation for More Inclusive and Sustainable Governance." As the host country, Brazil has outlined three key priorities for the meeting: deepening cooperation in public health, promoting a unified stance on climate change, and establishing mechanisms to facilitate trade and investment among member states.

On the eve of the summit, Colombia and Uzbekistan formally joined the New Development Bank as full members. Today, the BRICS family represents over half of the world's population, accounts for one-fifth of global trade, and contributes nearly 30 percent of global GDP. This remarkable momentum is no accident - it reflects the growing appeal of the "BRICS spirit" of openness, inclusiveness, and win-win cooperation. According to data from the International Monetary Fund (IMF), in 2024, BRICS collectively reached 4 percent GDP growth, significantly outpacing the global average. This demonstrates that the "greater BRICS" has become a "southern engine" that continuously fuels global development.

According to some foreign media outlets, this year's summit will discuss important topics, including the establishment of a new guarantee fund and the "Tropical Forests Forever Facility," and will voice collective positions on IMF reform. As the world is entering a new period of turbulence and transformation, characterized by rising unilateralism and protectionism, and some major powers increasingly disengaging from international governance, BRICS remains steadfast in its original aspiration, focusing squarely on cooperation and development. All its agendas and agreements are being gradually implemented, turning words on paper into real development outcomes. As of 2024, the BRICS New Development Bank has approved 120 projects worth a total of $39 billion, covering key sectors such as transport infrastructure, clean energy, healthcare, and social development. As the "vanguard of the Global South," the "greater BRICS" governance proposals are receiving global attention, and the world is looking to the "greater BRICS" for wisdom and contributions.

The growing influence of the "Greater BRICS" is evident in Western reporting. From the very start, the Rio BRICS Summit has become a focal point of global attention. Reuters noted that the expansion of the "Greater BRICS" "has added diplomatic weight to the gathering" and the bloc is presented "as a defender of multilateralism in an increasingly fractured world." The New York Times focused on the new role of "BRICS" in global governance, emphasizing its ambition to "rebalance global power dynamics." Although some media outlets maintain a "critical" and "skeptical" attitude toward the BRICS Summit, the inherent "traffic appeal" of the Rio Summit is enough to reflect the international community's attention to and recognition of BRICS.

The BRICS countries differ in terms of historical culture, political systems, economic size, and development levels, and there are differences between overall interests and individual interests. However, this precisely reflects the valuable inclusiveness and complementarity of the BRICS mechanism. BRICS cooperation is a systematic collaboration of the Global South; it is both comprehensive cooperation and open-door cooperation. It embodies the voices of the Global South, providing more development opportunities and equal rights for countries in the Global South, and promoting an equal and orderly multipolar world as well as a universally beneficial and inclusive economic globalization. This not only aligns with the interests of the Global South but also contributes to the common good of the world.

From promoting the establishment of the New Development Bank to advocating for the "BRICS+" cooperation model; from articulating the "four major partnerships" among BRICS countries to building new industrial revolution partnerships within BRICS, China's contributions to the BRICS mechanism are evident. According to the "Hand in Hand: China-LAC Mutual Perception Survey," released by the Global Times Institute during the "Global Times' Overseas China Week and Global South Dialogue" series of events held in Latin America in late June, a majority of respondents from six Latin American countries believe that the BRICS can represent the Global South to voice its concerns on the international stage. Furthermore, 93 percent of Latin American respondents believe that China has brought opportunities for development to the region, and 84 percent recognize China's development prospects. Through its own actions, China has built a bridge of hope for common development, making the gears of "greater BRICS" cooperation operate more smoothly.

IIn the face of the ever-changing international landscape, BRICS countries have demonstrated strong cohesion and action, providing a "BRICS answer" to the changes unseen in a century, which enhances the credibility of BRICS. The Rio Summit will mark a new starting point. Looking ahead, BRICS countries will continue to uphold the "BRICS spirit," deepen cooperation in various fields, promote reforms in the global governance system, and make greater contributions to world peace and development.- Global Times

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BRICS: not against anything, but for development, fairness and Global South

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26 Oct 2024 — Malaysia made it as a partner country into the Brics alliance on Thursday, along with neighbours Thailand and Indonesia.

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Online scams becoming ‘silent killers’, police say

 

ACP Abdul Rozak (centre) launching the poster. With him are Teoh (right) and Hoe. — Photos: ZHAFARAN NASIB/The Star

THE growing menace of online scams have become impossible to ignore, with police describing them as “silent killers”, where the crimes not only drain victims financially but also leave lasting emotional scars and shatter livelihoods.

Investigation officer Inspector Muhammad Hyzreen Mohd Zain said such scams could wipe out victims’ savings and “subsequently destroy their lives.”

“Scams don’t just take your money, they destroy futures. They’re silent killers,” he said during his speech at Scam Awareness Talk + Say No to Scam campaign held at a mall in Farlim, Air Itam, Penang.

He said such crimes could also tarnish the reputation of enforcement agencies and erode public trust when victims mistakenly believe authorities failed to act.

He urged the public to practise digital vigilance to prevent falling prey to such schemes.

Insp Muhammad Hyzreen urges the public to practise digital vigilance.

Insp Muhammad Hyzreen stressed that many victims unknowingly allow scammers access to their financial information simply by downloading suspicious apps or clicking unverified links.

He advised the public to avoid sharing personal or banking information over the phone, even if the caller claimed to be from a government agency or financial institution.

He said scammers would often impersonate officials to gain trust and extract confidential data.

Insp Muhammad Hyzreen also reminded attendees to be wary of investment offers that promise unusually high returns.

“Always verify with Bank Negara or official sources before committing to any investment platform,” he said.

He encouraged the public to report any suspicious activity immediately to the National Scam Response Centre (NSRC) at 997, or contact the nearest police station for guidance.

The talk, organised as part of the campaign, aimed to educate the public on emerging fraud tactics and reinforce the importance of community vigilance in combating financial crime.

Organised by 30 Lions Clubs from Penang with collaboration from police, the event also saw the launch of the Call 997 poster.

Event organising chairman Teoh Shaw Jhee said the club had printed 2,000 copies of A2 posters which will be put up around Penang.

“The posters will be placed in public areas such as markets, schools, malls and high-rise buildings,” Teoh said in his speech.

Teoh said cyber and financial scam cases were now a threat to the public, and as such, it was important to raise awareness.

He said Lions Clubs could help police raise awareness of scams.

He said the posters was also to inform and educate the public on who to call if they faced the threat of scams in their daily life.

“Awareness is our first line of defence, calling 997 is the right way when you risk being scammed,” he added.

Present during the programme were George Town OCPD Asst Comm Abdul Rozak Muhammad, his deputy Supt Lee Swee Sake and District Governor Lions 308 B2 Don Hoe.

ACP Abdul Rozak, who launched the poster, praised Lions Clubs for organising the event and described the initiative as a noble effort.

“While we remain fully committed to combating corruption, success requires the collective support and cooperation of all stakeholders,” he said in his speech.

He advised the public not to be easily misled or duped by attractive offers from unknown individuals online.

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