On July 31,2025, Malaysian Prime Minister Anwar Ibrahim tabled the 13th Malaysia Plan (13th MP) (2026–2030), a roadmap for the country’s development in the next 5 years. The Plan is titled “Melakar Semula Pembangunan” (Reshaping Development). The 13MP outlines nine focus areas under the MADANI economic pillars. Madani is an acronym in Bahasa Malaysia for a policy that embraces six core values – keMampanan (Sustainability), KesejAhteraan (Prosperity), Daya Cipta (Innovation), hormAt (Respect), keyakiNan (Trust) and Ihsan (Compassion). The MADANI framework was launched by Anwar Ibrahim in 2023. The seven aspirations of the MADANI Economy outline Malaysia’s vision for inclusive and sustainable growth. They aim to position Malaysia among the top 30 largest economies globally, and within the top 12 in global competitiveness. The plan also seeks to place the country in the top 25 on the Corruption Perception Index and the top 25 on the Human Development Index. It targets an increase in the labour share of income to 45%, greater female labour force participation reaching 60%, and achieving fiscal sustainability with a budget deficit of 3% or lower — ensuring balanced, resilient, and equitable national development. Launching the Plan, the Malaysian Prime Minister stated, “This plan is not merely rhetoric; rather, the government has established clear and measurable targets for success, defined through economic indicators, to effectively guide and monitor the implementation of all planned initiatives.”
13 MP identifies a total of nine focus across three objectives of the MADANI Economy, namely: (1) Raise the Ceiling (Economic Restructuring); (2) Strengthen Good Governance (Public Service Reform); and (3) Raise the Floor (Improving the Rakyat’s (common people) Wellbeing).
Under the 13th Malaysia Plan (13MP), the economy is projected to grow at 4.5%–5.5% annually between 2026 and 2030, driven primarily by domestic demand—notably private sector spending—and supported by robust external trade. The services and manufacturing sectors will continue to serve as the main growth engines. Inflation is expected to stay moderate at 2.0%–3.0%, while unemployment is targeted to decline to 3.0% by 2030. Total planned investments amount to Malaysian Ringgit (RM) 611 billion, comprising RM430 billion in federal development spending, RM120 billion from Government Linked Companies (GLCs) and Government Linked Investment Companies (GLICs) and RM61 billion through Public–Private Partnerships (PPPs). The fiscal deficit is set to narrow to 3.0% of GDP by 2030, from 3.8% in 2025.
The 13th Malaysia Plan (13MP) is seen as a stepping stone for Malaysia to achieve the status of a High-Income country by 2030. Since 1992, Malaysia has constantly featured in the bracket of upper-middle-income country. 13 MP sets a target for per capita income to reach RM77,289 or US$17,470 by 2030, in line with the timeline outlined in a joint report by the World Bank and the Ministry of Economy, which anticipates Malaysia achieving high-income nation status between 2028 and 2030.
The 13th Malaysia Plan (13MP) rests on four pillars. The first pillar is enhancing economic resilience. It includes 10 priorities and 46 strategies. The 10 priorities of the first pillar are: Surge in Growth of High-Growth High-Value (HGHV) Industries and High-Impact Strategic Sectors; Strengthening the Green Economy; Empowering the Blue Economy; Strengthening Food Security; Enhancing the Research, Development, Commercialisation and Innovation (R&D&C&I) Ecosystem; Enhancing National Productivity and Competitiveness; Strengthening Flood Mitigation and Adaptation; Improving Public Transport Infrastructure Readiness; Scaling Up Micro, Small and Medium Enterprises (MSMEs); and Empowering the Third Sector.
The second pillar is enhancing social mobility. It includes five priorities and 32 strategies. The five priorities are Education Reform; Labour Market Reform; Strengthening Inclusive Development from Multi-Dimensional Perspectives; Enhancing the Socioeconomic Status of Target Groups; and Balancing Regional Economic Development and Strengthening Rural Development.
The third pillar is Accelerating the Implementation of the Public Service Reform Agenda. It includes 5 Priorities & 18 Strategies. The five priorities are Improving Government Service Delivery Based on ILTIZAM Principles (Commitment, Determination and Will); Empowering GovTech Towards Government Service Reform; Strengthening Good Governance; Reforming Project and Fiscal Management; and Strengthening the Social Economy Ecosystem to Mainstream the Third Sector.
The fourth pillar is Enhancing People’s Well-being and Environmental Sustainability. It includes 7 priorities and 26 Strategies. The seven priorities of the fourth pillar are: Nation-Building; Preparing for an Ageing Nation; Healthcare Reform; Housing Reform; Strengthening Security and Defence; Planetary Health Preservation; and Strengthening Disaster Management.
