Twelfth Malaysia Plan, 2021-2025

Preparation of Five-Year Malaysia Plan

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.

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.

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.

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

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.

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

The main issues are:
1. land or site is not ready
2. incomplete project brief
3. inaccurate estimation of costs

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

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