13th Malaysia Plan

THE 13th Malaysia Plan (RMK13), to be tabled today by Prime Minister Datuk Seri Anwar Ibrahim, will focus on developing downstream industries as a key strategy to stimulate national economic growth and raise household income levels.

Communications Minister Datuk Fahmi Fadzil said this emphasis forms a core pillar of RMK13, which is underpinned by the Madani economic framework.

“We will focus on several sectors and industries that offer value creation, with particular attention to downstream development. That’s the broad direction. The detailed breakdown will be presented later,” he said at the International Connectivity Conference 2025 (ICC2025) yesterday.

He added that each ministry will be briefed on its respective allocations and inter-agency coordination plans once the full document is presented.

RMK13 outlines the government’s medium-term development strategy for 2026 to 2030, and will serve as the final phase in Malaysia’s roadmap towards achieving high-income and inclusive developed nation status.

In June, Anwar described RMK13 as a turning point for the administration’s efforts to address longstanding structural and fiscal challenges. 

These include regional and income inequality, limited fiscal space, and the slow pace of economic transformation.

Economists expect RMK13 to address five core areas affecting quality of life: education, healthcare, employment, housing and food security.

Fellow of the Institute of Malaysia’s Future (MASA), Datuk Dr Madeline Berma, said the plan is likely to continue building on two key principles within the Madani framework — raising both the floor and ceiling of the economy.

To raise the ceiling, she said the government must accelerate its involvement in new and future-facing economic sectors.

“We need to move into a new economic era through RMK13. Priority is expected to be given to three sources of economic growth — the blue economy, green economy and the silver economy related to ageing populations,” she told Utusan Malaysia.

She noted that Sarawak, for example, is exploring algae cultivation under the blue economy. The green economy includes sustainability-linked sectors, while the silver economy presents opportunities as Malaysia transitions to an ageing nation by 2030.

Madeline also urged the government to improve income adequacy, pointing out that many Malaysians still earn below a living wage.

“The government should focus on increasing income opportunities so that Malaysians can live with dignity, not just get by on RM1,700 a month,” she said.

She added that eliminating hardcore poverty and tackling relative poverty should remain national priorities. However, global instability and emerging trade blocs may pose challenges to RMK13’s execution.

“One concern is the ongoing US–China tariff conflict, and the rise of new economic blocs that may compete directly with Malaysia — even from within Southeast Asia,” she said.

Meanwhile, Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said RMK13 must ensure wider access to skills development, particularly for those at risk of underemployment.

He added that social protection and healthcare should be strengthened, while targeted interventions are needed to address malnutrition among children, especially in rural communities.

“RMK13 should also address skills–income mismatches, where qualified individuals are forced into low-paying, unrelated jobs,” he said.

Housing affordability should also be prioritised, with innovative payment models explored to reduce household debt burdens.

On agriculture, he said Malaysia must modernise the agro-food sector to boost domestic food production and reduce reliance on imports.

“We’re still using outdated technology in agriculture. Countries that have adopted modern systems are seeing higher yields and better profits. Agro-food must be made attractive to youth to ensure food security,” he said.

He added that RMK13 must be flexible enough to adapt to global uncertainties and avoid repeating past extractive economic models.

“We cannot repeat old approaches like exporting raw tin or crude oil. If we extract rare earths, we must process them domestically to retain value,” he said.

He also urged that Malaysia’s exploration of hybrid artificial intelligence (AI) technologies include knowledge transfer mechanisms so the country becomes a producer — not just a consumer — of digital innovation. –TMR

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