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COMMENT by Ahmad Faiz Yazid

13MP must prove it can deliver T HE 13th Malaysia Plan (13MP) outlines ambitious targets for 2026–2030, including 4.5–5.5% annual GDP growth and reducing the fiscal deficit to below 3% by 2030. in the national budget. Liberal subsidies or unchecked wage growth would undermine the benefits of development spending. Therefore, achieving the plan’s goal of halving the fiscal deficit will require tough, disciplined measures on spending.

If the 13MP is to deliver its promise on productivity boosts and better living standards, it must include value-for money checks on its biggest programmes. – REUTERSPIC

It allocates RM430 billion in development expenditure over five years – about RM86 billion annually –to achieve these goals. However, history reminds us that even the most well funded plans can falter. The success of 13MP hinges on rigorous execution and fiscal discipline. It must not become yet another “shelf document” filled with slogans and wish lists. Emphasising execution, fiscal discipline A recurring concern with Malaysia’s development blueprints is their persistent implementation gaps. Even the 13MP acknowledges this, cautioning that its effectiveness “will depend more on how the money is spent” than on the size of the budget. In other words, , simply allocating funds is not enough; we need strong controls to ensure timely, efficient and cost-effective delivery. This starts with reining in the ever growing operating expenditure (OE) of the government. Under the 13MP, operating costs – on wages, subsidies and debt servicing – are projected at a staggering RM1.81 trillion, far exceeding the development expenditure budget. Without controlling these recurring expenses, even the most well-planned development spending will be insufficient to restore fiscal balance. Interest payments alone now consume about 15 sen of every ringgit of government revenue. Such non productive debt servicing will divert funds away from essential sectors such as education, healthcare and infrastructure. In practical terms, every additional ringgit borrowed for debt repayment is a ringgit unavailable for growth-oriented initiatives. Over time, this will undermine Malaysia’s fiscal flexibility and risk crowding out investment. To keep the debt path sustainable, 13MP must aim to reduce the share of OE

Annual budget reviews should be required to clearly align every expenditure line with the plan’s targets, ensuring that each ringgit spent contributes to a strategic outcome. History shows this is not a mere theory. Past auditor-general reports have exposed cost overruns and inefficiencies in state projects, with recent audits revealing irregularities in projects. To fulfil its promise of boosting productivity and improving living standards, the 13MP must include value-for-money checks on its largest programmes. Major infrastructure tenders and government-linked company ventures, for instance, should undergo rigorous audits and adhere to clear timelines. Annual, transparent progress scorecards would help keep implementation accountable. In practice, this will require aligning the national budget with the plan’s priorities, so that voters and legislators can see how policy commitments are being funded. Beyond rhetoric: Linking plans to action Another risk is that 13MP falls into the old ritual of planning without execution. In recent years, Malaysia’s five-year plans have become overloaded with frameworks and buzzwords – what critics call “strategy soup”. Most citizens outside policy circles can hardly recall the core pillars of 12MP or its “17 big shifts” under the Madani vision. This is not merely an academic concern: when the public and even officials lose sight of a plan’s core objectives, effective implementation becomes unlikely. Therefore, the 13MP must break this cycle by being treated as a living contract with the nation, not just a ceremonial launch event. The plan’s authors, comprising government officials and

national dashboard that tracks every agency’s five-year targets while Indonesia’s planning agency connects its development plan to real-time implementation updates. Malaysia can do the same. By reporting on progress quarterly or annually, perhaps via a user friendly online portal, we can transform the plan from a static document into an ongoing monitoring process. An empowered existing Economic Planning Unit under the Economy Ministry or secretariat should be charged with keeping this data updated and public. Critically, citizen engagement must be an integral part of 13MP. The plan should include launching an online platform where all Malaysians can track progress, download data and provide feedback. Such a portal would help move away from opaque decision-making. If people can monitor project progress and raise concerns, political leaders will become more accountable. Transparency fosters trust, turning the development plan into a genuine social contract with the rakyat instead of an ignored elite blueprint. Ahmad Faiz Yazid holds a Bachelor of Economics from Universiti Malaya and is a graduate executive trainee at Permodalan Nasional Berhad. Comments: letters@thesundaily.com

Cabinet members, must commit to institutional accountability. A crucial first step would be to publish a “report card” on 12MP, clearly outlining which policies succeeded, which fell short and the reasons behind both. This would not only help rebuild public trust but also guide better policy design. Going forward, starting in 2026, every ministry budget should be linked to the plan’s priorities to enable effective tracking of progress. Spending decisions cannot be made in a isolation; each ringgit must contribute to specific targets such as increasing exports, reducing poverty or enhancing human capital. The plan presentation should be simpler and results-oriented. Rather than overwhelming readers with dozens of sub-themes, it should focus on four or five key outcomes that matter most such as wage growth, affordable energy, efficient public services, digital skills and effective social safety nets. Clear KPIs (key performance indicators) for each outcome should be established and made public. For example, goals such as “full employment by 2030” or “an average household income of RM12,000” should include intermediate milestones and timelines rather than remain vague ambitions. Other countries have provided a proven model: South Korea operates a

“By reporting on progress quarterly or annually, perhaps via a user-friendly online portal, we can transform the plan from a static document into

an ongoing monitoring process.

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