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21.05.2015 03:49 Age: 5 days

Malaysia targets 5-6 per cent growth in new economic plan

Malaysia's 11th and final 5-year economic plan leading up to its target of being a developed nation in 2020 aims to balance the government budget but still see 5-6 per cent annual economic growth through a 20-per-cent rise in labour productivity, reportsStraits Times.

This will see gross per capita income hit RM54,000 (S$20,024) - meeting the high-income nation benchmark - with the average household income rising to RM10,540 per month, doubling the figure in just eight years.

The 11th Malaysia Plan (11MP), tabled in parliament by Prime Minister Najib Razak on Thursday, will also see the shape of the economy changing, with oil and gas expected to make up just 15.5 per cent of government revenue in 2020, compared to 21.5 per cent now.

The manufacturing and services sectors are expected to make up three-quarters of the economy, helping to boost takings from the newly-introduced Goods and Services Tax to RM31 billion by 2020, double that of the defunct Sales and Services Tax last year.

"We foresee greater volatility and uncertainty in the global economy as a result of the decline in oil prices, realignment of exchange rates, as well as geopolitical risks.

"In order to sustain our growth momentum and ensure that the people continue to prosper, we need to forge ahead with greater resolve and introduce bold measures for the long-term benefit of all Malaysians," Datuk Seri Najib said in the foreword to the blueprint.