Cluster I: National Development Planning
Preparation of Five-Year Malaysia Plan
Q1: Overall, how is the national development planning implemented?
Last updated : 07 Oct 2021

  • National development planning is implemented in three stages, namely the long-term, medium-term and short-term.

  • Long-term planning ranges between a period of 10 to 30 years, as follows:
    1. New Economic Policy (1971-1990)
    2. Vision 2020 (1991-2020)
    3. National Development Policy (1991-2000)
    4. National Vision Policy (2001-2010)
    5. National Transformation Policy (2011-2020)
    6. Wawasan Kemakmuran Bersama (2021-2030)

  • The objectives identified under each long-term plan will be translated into strategies and initiatives under the five-year medium-term development plans. To date, there are 13 five-year plans, namely:
    1. First Malaya Plan (1956-1960)
    2. Second Malaya Plan (1961-1965)
    3. First Malaysia Plan (1966-1970)
    4. Second Malaysia Plan (1971-1975)
    5. Third Malaysia Plan (1976-1980)
    6. Fourth Malaysia Plan (1981-1985)
    7. Fifth Malaysia Plan (1986-1990)
    8. Sixth Malaysia Plan (1991-1995)
    9. Seventh Malaysia Plan (1996-2000)
    10. Eighth Malaysia Plan (2001-2005)
    11. Ninth Malaysia Plan (2006-2010)
    12. Tenth Malaysia Plan (2011-2015)
    13. Eleventh Malaysia Plan (2016-2020)
    14. Twelfth Malaysia Plan (2021-2025)
  • The short-term plan is implemented through the Federal Government annual budget.
Q2: How are the medium-term plans prepared?
Last updated : 04 Oct 2021

  • The plans were prepared using both top-down and bottom-up approaches.

  • The top-down approach begins with the preparation of the macroeconomic framework by the central agencies, namely the Economic Planning Unit, Prime Minister’s Department (EPU), Ministry of Finance and Bank Negara Malaysia. As the agency responsible for preparing the medium-term plan, EPU coordinates and recommends the macroeconomic targets as well as publishes the plan guidelines as reference for all ministries and agencies.

  • The bottom-up approach involves extensive engagements with various stakeholders, providing avenues for everyone to contribute and to ensure development projects and programs are aligned to the objectives and goals of the plans.

  • EPU then brings the proposed main development policies and programmes to the National Development Planning Committee (JPPN), the highest-ranked committee among government officials, chaired by the Chief Secretary to the Government, before it is submitted to the Special Committee of the Prime Minister and the Cabinet. These development policies and programmes are then tabled to Parliament by the Prime Minister.
Q3. What is contained in the Twelfth Plan?
Last updated : 04 Oct 2021

  • The Twelfth Plan sets the foundation to realise the spirit of Keluarga Malaysia which will change the course of national development over the next five years to achieve a prosperous, inclusive and sustainable Malaysia. The Twelfth Plan also outlines comprehensive policy responses in facing the challenges arising from the COVID-19 pandemic. The Twelfth Plan contains three Themes, four Policy Enablers and 14 Game Changers.
Q4. What is the meaning of the Theme, Policy Enabler and Game Changer?
Last updated : 28 Sep 2021

  • Themes are the main emphases of strategies and initiatives to ensure the objectives of prosperity, inclusivity and sustainability are achieved during the Twelfth Plan period. The three Themes are:
    1. Resetting the Economy
    2. Strengthening Security, Wellbeing and Inclusivity
    3. Advancing Sustainability
  • Policy Enablers form the foundation and building blocks for the nation’s development to support the achievement of targets set under the Themes. The four Policy Enablers are:
    1. Developing Future Talent
    2. Accelerating Technology Adoption and Innovation
    3. Enhancing Connectivity and Transport Infrastructure
    4. Strengthening the Public Service
  • Game Changers represent bold and innovative actions to shift mindsets and change the approach to national development. The 14 Game Changers are:
    1. Game Changer I: Imperatives for Reform and Transformation
    2. Game Changer II: Catalysing Strategic and High Impact Industries to Boost Economic Growth
    3. Game Changer III: Transforming Micro, Small and Medium Enterprises as the New Driver of Growth
    4. Game Changer IV: Enhancing National Security and Unity for Nation-Building
    5. Game Changer V: Revitalising the Healthcare System in Ensuring a Healthy and Productive Nation
    6. Game Changer VI: Transforming the Approach in Eradicating Hardcore Poverty
    7. Game Changer VII: Multiplying Growth in Less Developed States especially Sabah and Sarawak to Reduce Development Gap
    8. Game Changer VIII: Embracing the Circular Economy
    9. Game Changer IX: Accelerating Adoption of Integrated Water Resources Management
    10. Game Changer X: Improving TVET Ecosystem to Produce Future-Ready Talent
    11. Game Changer XI: Enhancing Digital Connectivity for Inclusive Development
    12. Game Changer XII: Aligning Research and Development towards Commercialisation, Wealth Generation and Economic Growth
    13. Game Changer XIII: Transforming the Logistics Ecosystem for Greater Efficiency
    14. Game Changer XIV: Transforming the Public Service through the Whole-of-Government Approach
Q5. Why are short-term projections not stated in the Twelfth Plan?
Last updated : 07 Oct 2021

  • The Twelfth Plan is a medium-term socioeconomic development plan for a period of five years, while the short-term plan is implemented through the annual budget.

  • Gross domestic product growth projection for the short-term planning is under the purview of the Ministry of Finance (MOF). The projections for 2021 and 2022 will be announced by the MOF during the tabling of the Budget 2022.
Q6. Did the Government appoint any foreign consultants in preparing the Twelfth Plan document?
Last updated : 07 Oct 2021

  • No. The Twelfth Plan was prepared by EPU officers through extensive engagement sessions with various stakeholders including ministries, state governments, the private sector and civil society organisations (CSOs), as well as the general public.
Development Allocation
Q1: What are the criteria used in determining the priority of development projects?
Last updated : 07 Oct 2021

  • The criteria used in determining new projects are as follows:
    1. High impact projects that will benefit the larger population and inline with the national outcome and Wawasan Kemakmuran Bersama 2030
    2. Best value for money by ensuring that every ringgit spent will benefit the rakyat, the Government and the country
    3. The project site should be ready for implementation
    4. Coordination of priorities between the Federal Government and state governments
    5. Emphasis on the six less developed states namely Sabah, Sarawak, Kelantan, Terengganu, Kedah and Perlis
Q2. What are the main issues faced in implementing development projects?
Last updated : 05 Oct 2021

  • The main issues are:
    1. land or site is not ready
    2. incomplete project brief
    3. inaccurate estimation of costs
Q3. What are the additional measures to reduce development project delays?
Last updated : 05 Oct 2021

  • The measures to be undertaken are:
    1. Introducing Value at Entry initiative at the initial stage of project proposals
    2. Enhancing the collaboration among the Federal Government, state governments and local authorities