Malaysia targets 4-5% GDP growth under 13MP, says MBSB Research
Key drivers include infrastructure development, domestic consumption, and strategic initiatives like the Johor-Singapore Special Economic Zone.
Prime Minister Datuk Seri Anwar Ibrahim will table the 13MP later today. MBSB Research highlighted private consumption, which contributes over 60 per cent of GDP, as a major growth engine, supported by rising employment and incomes.
Development expenditure is projected at RM80 billion annually, accounting for 3.3 per cent of GDP, ensuring steady project flow for construction firms.
'This spending level is crucial to sustain infrastructure projects without excessive fiscal tightening,' the bank noted.
Key infrastructure projects under the 13MP include MRT3, Penang LRT, East Coast Rail Link, Pan Borneo Highway, and airport expansions.
Sabah and Sarawak are set to receive significant funding for roads, water supply, and health facilities.
Public-private partnerships (PPPs) will play a vital role, with projects like the West Ipoh Span Expressway and Putrajaya-Bangi Expressway boosting private sector involvement.
The 13MP also addresses structural reforms in public services, education, and labour markets, aiming for 35 per cent skilled employment by 2030.
MBSB Research forecasts corporate earnings to grow at 5.0 per cent annually, potentially lifting the FBM KLCI to between 1,810 and 2,510 points by 2030. - Bernama
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