PETALING JAYA: Despite having fallen short of its average annual growth target under the 10th Malaysia Plan (10MP), Malaysia will still have a second shot under the next five-year development blueprint to put the country’s economy on the right track towards achieving high-income status by 2020, economists say.

“Planning for the 11MP is very critical… it is not only the final phase of development planning before Malaysia realises its dream of becoming a high-income nation, but it is also the most crucial programme to navigate the country’s economy through one of the most challenging and highly uncertain times for the global economy,” an economist with a local bank said.

“Having said that, there’s no doubt yet that the 11MP will help propel Malaysia towards high-income status by 2020, as most indicators are already suggesting that in terms of numbers, we are moving in the right direction. But the question is the country’s growth quality and sustainability,” he added.

The Government is currently in the midst of gathering feedback from all states in order to draft the 11MP, which will be tabled in Parliament by May. The new five-year development plan will be implemented from 2016 to 2020, to replace the 10MP, which will expire by the end of the year.

The Government had said that under the 10MP, Malaysia needed to achieve a gross domestic product (GDP) growth of 6% per year to realise its Vision 2020. But the country’s GDP growth since 2011 had consistently come in below 6%.

According to the World Bank’s definition, high-income economies are those with a gross national income (GNI) per capita of more than US$12,745 (RM44,575). Malaysia’s GNI per capita stood at US$10,060 in 2013, up about 50% from US$6,700 in 2009.

The country is currently eyeing a GNI per capita of US$15,000 by 2020.

According to an economist with a local brokerage firm, the Government would likely set a more “modest and realistic” growth target of around 5% to 6% under the 11MP, given the uncertain global economic prospects and the direction of crude oil prices.

In addition, he noted, the Government would likely have a more moderate assumption of crude oil prices at around US$70 to US$80 per barrel in planning for the country’s budgets in the years under the 11MP.

“We don’t think the Government would slow down in the implementation of construction and infrastructure projects that are needed to raise the quality of life in the country,” the economist said.

“And the Government’s intention to focus on inclusive growth under the 11MP is a welcomed remark, as that could help us achieve quality and sustainable growth,” he added.

Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar, who is in charge of economic planning for Malaysia, had on several occasions revealed that “inclusiveness” would be one of the main thrusts of the 11MP.

“Inclusiveness is a necessary key process to a more prosperous society, so we must ensure that economic opportunities are available to all,” Wahid said in his official address in conjunction with the launch of the World Bank’s latest edition of Malaysia Economic Monitor two weeks ago.

“We must ensure that every single person will benefit, and no one will be left out or marginalised from mainstream development and hence, the continuous focus on inclusive development,” he explained, adding that 11MP would lay a solid foundation for Malaysia beyond 2020.

According to Wahid, the basic principles of inclusiveness under the 11MP would include:

1) Being market-friendly, where all resources will be used optimally to avoid market distortions;

2) Being needs-based, where the bottom 40% of households and underprivileged people will receive special required assistance;

3) Being merit-based, where programmes organised by the Government will provide equitable opportunities to individuals and businesses;

4) Being transparent, where policies, procedures and criteria will be communicated to the public;

5) Being pro-growth, where programmes conducted will promote growth; and

6) Having sustainable competitiveness, where policies and programmes will be reviewed to ensure companies will have a fair chance to succeed and be globally competitive.