GEORGE TOWN, Sept 23 — The implementation of the 13th Malaysia Plan (13MP) emphasises reducing the development gap between states through a more balanced distribution of development expenditure (DE).
Finance Minister II Datuk Seri Amir Hamzah Azizan said the Federal government will ensure that all states receive appropriate development allocations to spur regional economic growth, in line with the 13MP’s roadmap approved in the Dewan Rakyat on August 25.
“One of the improvements we are making in the 13MP is addressing inter-regional disparities. This is an important area for us to see how the Federal government can optimise the use of basic DE.
“We are ensuring that DE is allocated to all states to stimulate economic growth. In terms of investment attraction, we have introduced new incentive programmes whereby those who invest in sectors crucial for Malaysia but located in less developed regions will be given greater incentives,” he said.
Amir was speaking at a press conference after attending the Post-13MP Engagement Session for the Northern Zone at the Setia Spice Convention Centre in Bayan Lepas today.
Amir, who is also acting Economy Minister, said the focus of DE allocation will continue to be given to six less developed states: Kedah, Kelantan, Perlis, Sabah, Sarawak, and Terengganu.
He said that all projects approved under the 12th Malaysia Plan (12MP) will move forward. The selection of new development projects will be based on data, the actual needs of the people, and the priorities of the state.
This aims to ensure that planned development is more inclusive, balanced, and sustainable.
The government will also introduce a more structured and comprehensive incentive package coordinated across multiple agencies, like the Malaysian Investment Development Authority (Mida), the Finance Ministry, and the Malaysia Digital Economy Corporation (MDEC).
“In the future, we want to consolidate everything so that there is one incentive framework that everyone can understand. All investors coming to Malaysia will know the country’s direction, and emphasis will be placed on projects located in areas we prioritise.
"The incentives provided will be more focused on those areas. This will narrow existing gaps, and at the same time emphasise new industries that we consider important, as we want to enhance Malaysia’s economic diversity,” said Amir.
He added that the 13MP is driven by four main pillars: enhancing economic diversity, improving social mobility, accelerating the implementation of public service reform, and improving people’s well-being as well as environmental sustainability.
These pillars are supported by 122 strategies, more than 600 initiatives, and the setting of 162 national key performance indicators to ensure that policies are not viewed in a single dimension, but instead highlight the interconnection of various aspects of development.
“For the 13MP period, the government is committed to providing RM611 billion in investments, comprising RM430 billion in DE from the government, supported by RM120 billion in financing from government-linked companies and RM61 billion through public-private partnership methods,” said Amir.
Commenting on today’s engagement session, he said it was not only a platform to share the key direction of the country’s development for the next five years, but also a process to ensure that the development blueprint outlined in 13MP can be successfully implemented.
