Malaysia in need to postpone “developed country” target

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Malaysia will become a developed country not before 2022, missing its longstanding “Vision 2020” target by at least two years, based on current government projections.

According to official sources cited by the New Straits Times, the country will need an extraordinary 7.3 per cent annual  GDP growth or a sudden surge in the ringgit’s value to 3.81 to the US dollar, if it is to meet Vision 2020.

The concept – the to become a developed country such as the likes of the UK or Germany – was originally conceived by Prime Minister Mahathir Mohamad when tabling the Sixth Malaysia Plan in 1991. Malaysia Plans are five-year economic roadmaps.

The 11th Malaysia Plan presented in 2015 targeted an average of 5.8 per cent annual GDP growth to meet the World Bank’s high-income threshold by 2020, but the economy has so far managed just 5.1 per cent growth in the two years since. Economists expect Malaysia’s GDP to grow by about five per cent per annum from this year to 2020.

Currently, the country’s annual gross national income (GNI) per capita stands at $9,556, about 21 per cent short of this year’s $12,056 threshold for developed nations

The 11th Malaysia Plan had targeted GNI per capita to hit $15,690 by 2020, surpassing the future expected threshold of $15,000. The plan’s growth target was partly based on about $64 billion being spent on development, or almost $13 billion a year, but the former Barisan Nasional administration allocated just around $11 billion a year on average between 2016 and this year.

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Reading Time: 1 minute

Malaysia will become a developed country not before 2022, missing its longstanding “Vision 2020” target by at least two years, based on current government projections.

Reading Time: 1 minute

Malaysia will become a developed country not before 2022, missing its longstanding “Vision 2020” target by at least two years, based on current government projections.

According to official sources cited by the New Straits Times, the country will need an extraordinary 7.3 per cent annual  GDP growth or a sudden surge in the ringgit’s value to 3.81 to the US dollar, if it is to meet Vision 2020.

The concept – the to become a developed country such as the likes of the UK or Germany – was originally conceived by Prime Minister Mahathir Mohamad when tabling the Sixth Malaysia Plan in 1991. Malaysia Plans are five-year economic roadmaps.

The 11th Malaysia Plan presented in 2015 targeted an average of 5.8 per cent annual GDP growth to meet the World Bank’s high-income threshold by 2020, but the economy has so far managed just 5.1 per cent growth in the two years since. Economists expect Malaysia’s GDP to grow by about five per cent per annum from this year to 2020.

Currently, the country’s annual gross national income (GNI) per capita stands at $9,556, about 21 per cent short of this year’s $12,056 threshold for developed nations

The 11th Malaysia Plan had targeted GNI per capita to hit $15,690 by 2020, surpassing the future expected threshold of $15,000. The plan’s growth target was partly based on about $64 billion being spent on development, or almost $13 billion a year, but the former Barisan Nasional administration allocated just around $11 billion a year on average between 2016 and this year.

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