Malaysia pledges spending, green goals in economic plan

Malaysia's Prime Minister Ismail Sabri Yaakob tabled a new five-year economic plan, boosting infrastructure spending and committing to a carbon tax under climate change goals as the country looks to chart its way out of a pandemic-induced slump. Launching the 12th Malaysia Plan in parliament, Ismail Sabri said the country's financial position was expected to improve in 2023, with the economy targeted to grow 4.5 per cent-5.5 per cent per annum in the next five years.

Malaysia posted average annual growth of 2.7 per cent between 2016-2020, dragged down by a 5.6 per cent contraction last year due to the outbreak of COVID-19, the premier said. Gross national income per capita rose to 42,500 ringgit ($10,150) in 2020, about 20 per cent lower than the level required to become a high-income country. Malaysia now expects to reach that target by 2025, Ismail Sabri said. "The 12th Malaysia Plan is a comprehensive development plan that will introduce a number of reforms to ensure sustainable economic growth and more equal distribution of opportunities and results," Ismail Sabri said. - Reuters