Malaysia targets 5.5% GDP growth in next 5 years

Economy KUALA LUMPUR: Malaysia is targeting a gross domestic product (GDP) growth between 4.5 per cent to 5.5 per cent/annum in 2021 to 2025, under its 12th five-year economic plan, unveiled by the government on Monday.

The growth will be supported by strong domestic demand and a higher contribution from the external sector, it said.

“Against the backdrop of the challenging economic environment, including expectation of a prolonged and the uncontainable Covid-19 pandemic, the Malaysian economy is expected to recover in line with the measures to reopen the economic sectors,” it said.

The potential output is expected to expand between 4 per cent and 5 per cent, while the private sector activity will rebound and remain the anchor of growth supported by accommodative monetary and fiscal policies, it said.

The economic growth will also be led by higher labour productivity growth, resulting in a 6.4 per cent/annum rise in the gross national income per capita, from 42,503 ringgit (around $10,111) in 2020 to 57,882 ringgit (around $14,842) in 2025, according to the plan.

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