Malaysia’s GDP Projected To Grow 4.5–5.5 Pct From 2026 To 2030, Driven By Domestic Demand

By Siti Radziah Hamzah

KUALA LUMPUR, July 31 (Bernama) — The country’s gross domestic product (GDP) growth is targeted at between 4.5 per cent and 5.5 per cent per annum during the 13th Malaysia Plan (13MP) period from 2026 and 2030, driven primarily by domestic demand, particularly private consumption and investment.

According to the 13MP report released by the Ministry of Economy today, GDP growth will be underpinned by domestic demand, particularly private consumption and investment, and supported by a positive external sector.

The report, themed “Reshaping Development,” noted that the services, manufacturing, and construction sectors will remain the key sources of growth, spurred by the transition to a value-creation-based economy.

Growth will also be driven by the implementation of key policies and strategies, especially the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap (NETR), and the National Semiconductor Strategy (NSS), all introduced in the first two years of the MADANI Economy framework.

“Malaysia’s economic outlook will be influenced by global environmental developments as well as the implementation of socio-economic policies and strategies during the 13MP,” the report stated.

It added that the uncertainty of the United States’ trade policies and other retaliatory economic measures is expected to impact Malaysia during the first half of the 13MP.

The report stated that the projected GDP growth will enable Malaysia to achieve a per capita gross national income (GNI) target of RM77,200 by 2030, thereby surpassing the high-income threshold.

A total of 10 macroeconomic targets have been set to reshape development by driving economic growth, enhancing people’s well-being, and strengthening good governance during the 13MP.

These targets include an average annual real private investment growth of six per cent, a fiscal deficit of below three per cent of GDP by 2030, an average annual gross export growth of 5.8 per cent, and a target for employee compensation to reach 40 per cent of GDP.

Other targets include an average annual real public investment growth of 3.6 per cent, an average inflation rate of between two and three per cent, a current account surplus equivalent to 2.2 per cent of GNI, and an annual growth rate of 1.6 per cent for the Malaysian Well-being Index (MyWI).

The report also states that these measures are expected to boost private investment growth by six per cent annually, with an average value of RM417.9 billion per year, making it the main driver of investment during the 13MP.

Public investment, comprising allocations from the federal government, state governments, local authorities, statutory bodies, and non-financial public corporations (NFPCs), is projected to grow by 3.6 per cent annually, averaging RM112.9 billion per year during the period.

A total of RM430 billion will be allocated to finance the federal government’s development programmes and projects under the 13MP.

These projects include infrastructure and infostructure developments, public transportation, the construction of schools, hospitals, and affordable housing, as well as flood mitigation and capacity-building programmes.

National development investments will also be supported by projects undertaken by government-linked companies, including through the Government-Linked Companies Activation and Reform Program (GEAR-uP), with an allocation of RM120 billion.

Additionally, the implementation of development projects through public-private partnerships (PPPs) will be enhanced, with private sector participation expected to contribute an estimated RM61 billion during the 13MP period.

— BERNAMA

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