By the MALAYSIA SME Editorial Team
Source: The Winding-Up Speech on the Motion of the 13th Malaysia Plan, 2026-2030, in the Dewan Negara by YB DATUK SERI AMIR HAMZAH AZIZAN, Minister of Finance II and Acting Minister of Economy, on 3 September 2025.
Malaysia as a High-income Nation and Among the Top 30 global Economies
The 13th Malaysia Plan (RMK13), spanning from 2026 to 2030, and anchored by the theme “Reshaping Development”, RMK13 outlines a forward-looking vision to position Malaysia as a high-income nation and among the top 30 global economies by 2030. It is guided by the principles of the MADANI Economy, which emphasises sustainability, care and compassion, respect, innovation, prosperity, and trust.
Central to RMK13 is the transition to a value-driven economy propelled by digitalisation and high-value innovation. This includes the advancement of artificial intelligence (AI), semiconductors, energy transition technologies, and digital solutions.
The government envisions a shift from a “Made in Malaysia” model to a “Made by Malaysia” paradigm, in which local innovation and production are globally competitive.
In parallel, agri-food and agri-commodity sub-sectors will be strengthened to support food security, while new growth drivers will emerge from rare earth elements, green and blue economies, and carbon capture, utilisation, and storage (CCUS).
Malaysia’s green economy will be rooted in low-carbon, resource-efficient, and inclusive models of development, whereas the blue economy will leverage sustainable use of ocean and freshwater resources for livelihoods and growth.
The plan also identifies tourism, halal industries, the creative economy, air transport, global financial services, trade distribution, logistics, and sports as priority sectors.
These will be developed in tandem with national strategies such as the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap (NETR), and the National Semiconductor Strategy (NSS).
Structural transformation aimed at inclusive, sustainable growth
The economic revitalisation efforts within RMK13 will be shaped by structural transformation aimed at inclusive, sustainable growth, with particular attention given to regional balance and rural advancement.
The government is also committed to enhancing social development through a MADANI-inspired system that uplifts living standards, strengthens social mobility, and responds to cost-of-living pressures.
These social reforms will be underpinned by improvements to public service delivery, governance, and fiscal management, including reforms in education, healthcare, housing, and wealth creation.
At the regional level, RMK13 lays out a detailed development plan across multiple states and economic corridors.
In the northern region, key initiatives include the Kedah Rubber City, Bukit Kayu Hitam Special Border Economic Zone (SBEZ), Perlis Inland Port, Kulim Hi-Tech Park (KHTP), Kerian Integrated Green Industrial Park (KIGIP), and Lumut Maritime Industrial City (LuMIC).
In the east coast, Kelantan, Pahang, and Terengganu have been identified as key food production hubs, with Tok Bali in Kelantan set to attract investment in fisheries, aquaculture, shipping, and coastal tourism.
In Sarawak, development will centre around hydropower, hydrogen technology, and other renewable energy sources. A major project will also connect Sarawak’s electricity supply to Peninsular Malaysia, enhancing national energy infrastructure.
Sabah, meanwhile, will focus on energy security through the development of the Kota Kinabalu Industrial Park (KKIP), while the Samalaju Industrial Park in Sarawak is expected to catalyse high-impact industrial growth.
National infrastructure developments such as the East Coast Rail Link (ECRL) and the Pan Borneo Highway will increase the competitiveness of these development areas and ensure more equitable distribution of economic benefits.
To attract and distribute investments more effectively, State Economic Development Corporations (SEDCs) and corridor authorities will play a greater role. The government aims to secure RM75 billion in investments and create 50,000 skilled jobs through these channels.
In the southern region, the Johor-Singapore Special Economic Zone (JS-SEZ) has already attracted RM1.34 billion in investment commitments, with a further RM78 million in negotiations.
RMK13 outlines a development allocation of RM611 billion, comprising RM430 billion in Government Development Expenditure (DE), RM120 billion from government-linked companies (GLCs), and RM61 billion from government-linked investment companies (GLICs), with public-private partnerships (PPPs) serving as a key financing mechanism.
A substantial portion—approximately RM93.9 billion—will be dedicated to six less developed states: Kedah, Kelantan, Perlis, Terengganu, Sabah, and Sarawak. This marks an increase from the RM83.91 billion allocated under the 12th Malaysia Plan.
Development in these states will focus on expanding roads and highways, access to clean water, electricity, and internet connectivity. The plan includes a target to construct 2,800 kilometres of rural roads across Malaysia, with more than 70 percent of this work to be carried out in the six less developed states.
Development expenditure by sectors
RMK13 divides development expenditure by sector as follows: the economic sector receives the largest allocation at 52.8 percent, covering environmental conservation, research and development, transportation, finance, trade and industry, agriculture, and energy.
The social sector is allocated 30.9 percent, focusing on health, education, rural and community development, and housing. The security sector receives 12.3 percent, while the remaining 4 percent goes to the administrative sector.
In line with the goal of improving productivity, part of the allocation will be provided for efforts to enhance economic diversity, particularly in scaling up MSMEs; and channelled into technological capacity-building, innovation, and talent development, particularly in pioneering fields such as AI and RDCI (Research, Development, Commercialisation, and Innovation).
Social protection will be strengthened through measures targeting wages and income, poverty alleviation, and inclusive development. The government aims to support vulnerable groups such as the disabled (OKU) and indigenous communities.
To manage rising costs of living, the plan expands the Rahmah Cash Assistance (STR) and Basic Rahmah Assistance (SARA) to a total of RM15 billion, including a one-time RM100 cash aid for all adults aged 18 and above. Other initiatives include the Rahmah Umbrella programme—which covers Rahmah Sales, Basket, and Menu—and essential goods distribution schemes to ensure price uniformity in remote areas.
The plan also maintains affordable public transportation through subsidised monthly passes, special rates for students, senior citizens, and OKU, and subsidised airfares for university students.
For long-term cost containment, the strategy includes boosting food production and creating sustainable livelihood opportunities. Poverty and inequality will be addressed through medium- to long-term reforms in education, housing, and the labour market.
Reforms
Educational reforms under RMK13 aim to enhance student outcomes, teacher quality, and institutional capacity, with special focus on expanding special education through the construction of PPKI blocks in existing schools.
Healthcare reform will ensure equitable access to quality care, with innovative financing models to improve cost efficiency.
Housing reforms include a target to build one million affordable homes in ten years, expansion of rent-to-own schemes, and the Housing Credit Guarantee Scheme. A review of the Housing Developers Act will also be undertaken to support the build-and-sell concept, as a means to curb abandoned housing projects and offer greater protection to homebuyers.
Labour market reforms will raise the compensation of workers from 33.6 percent of GDP in 2024 to 40 percent by 2030. This will be achieved through periodic minimum wage reviews, implementation of a minimum living wage of RM3,100 for GLCs and GLICs, and strengthening of the National Wage Consultative Council.
Technical and Vocational Education and Training (TVET) will be expanded under a new TVET Commission, alongside the introduction of TVET legislation and enhanced skills certification.
Measures will also be introduced to reduce foreign worker dependency to 10 percent, including a multi-tiered levy, automation funds, and a matching programme via the Industrial Academy (ADI).
The Progressive Wage Policy (PWP), with an allocation of RM200 million, will target 50,000 workers, while protections for gig workers will be expanded under a new Gig Workers Bill and the establishment of the Malaysian Gig Economy Commission.
Inclusion in the workforce will be promoted for senior citizens, the Orang Asli, and OKU through dedicated programmes, training, and employer incentives.
Bumiputera, Chinese and Indian Communities Empowerment
In line with Article 153 of the Federal Constitution, RMK13 reaffirms its commitment to Bumiputera empowerment. This includes aligning entrepreneurship programmes with agency mandates, expanding the PuTERA35 framework, and engaging GLCs and GLICs to develop Bumiputera professionals and business owners.
The socioeconomic development of Sabah Natives and Sarawak Bumiputera will be advanced through commercial premises, financial support, and entrepreneurship training.
For the Chinese community, particularly low-income groups in New Villages, the New Villages Master Development Plan will enhance infrastructure and create business opportunities.
For Indian communities, the Malaysian Indian Blueprint and the Indian Community Action Plan will improve economic, housing, and social outcomes nationwide.
An Aging Nation
As Malaysia transitions toward an aged nation status by 2048, RMK13 incorporates strategies from the National Aging Action Plan (NAB) 2025–2045. This includes establishing a sustainable long-term care system, preparing the labour market with future-ready skills, and enhancing the quality of life for senior citizens.
Robust Monitoring
To ensure successful implementation, RMK13 introduces a robust monitoring system through the Policy Implementation Plan (PPD) and the MyRMK platform. The governance structure will be strengthened through coordination across ministries and agencies, enabling timely interventions and accountability at all levels.
RMK13 is a comprehensive roadmap for Malaysia’s transformation, bringing together economic growth, social protection, and regional equity under a unified national strategy. As the government shapes the development for the future, the path is being laid for participation, alignment, and action across all sectors and communities.
