Malaysian Government Launches Shared Prosperity Vision 2030
07 October 2019
The Prime Minister of Malaysia launched the Shared Prosperity Vision 2030
("SPV 2030") on 5 October 2019. SPV 2030 is a ten-year plan commencing 2021 to 2030.
The aim of SPV 2030 is to provide a decent standard of living to all Malaysians by 2030. The objectives of SPV 2030 are as follows –
- Development for All though Restructuring of the Economy;
- Address Wealth and Income Disparities by Addressing Inequalities; and
- Create a United, Prosperous and Dignified Nation through Nation Building.
SPV 2030 sets out 15 Guiding Principles, namely –
- Continuous Prosperity;
- Equitable Income;
- Equitable Growth;
- Distributed Economy;
- Learning Society;
- Future Economy;
- Need-Based Approach Economy;
- Institutional Political-Economy;
- Integrated Social Model;
- Economic Centre of Asia;
- Democracy and Stability;
- Integrity and Good Governance;
- Unity in Diversity; and
- Sovereignty and Sustainability.
SPV 2030 also sets out seven strategic trusts namely –
- Business and Industry Ecosystem;
- Key Economic Growth Activities;
- Human Capital;
- Labour Market and Compensation of Employees;
- Social Wellbeing;
- Regional Inclusion; and
- Social Capital.
Examples of targets to be achieved under each of the strategic trusts are as follows –
Strategic Thrust 1 - Business and Industry Ecosystem
- SME and microbusiness to contribute 50% of GDP;
- To create 30% high technology companies from total SMEs in the manufacturing and services subsectors;
- At least 20% of high- technology Bumiputera SMEs in each subsector; and
- Bumiputera SMEs to contribute 20% to GDP.
Strategic Thrust 2 - Key Economic Growth Activities
- Increased contribution of high technology of 50% of the manufacturing sector and 30% of the services sector;
- To build resilient key new sectors as follows –
- Islamic Finance Hub 2.0;
- Renewable Energy;
- Green Economy;
- Commodity 2.0;
- Centres of Excellence; and
- ASEAN Hub.
Strategic Thrust 3 - Human Capital
- 35% of high-skilled workers in labour force;
- Majority of workforce in high-skill jobs and future economic sectors will be Bumiputera;
- 40% of HRDF training skills to relate to 4IR;
- At least 60% of SPM leavers to pursue TVET field;
- Programme offerings at universities and training institutes will be tailored to the needs and requirements of industries;
- Increase local and Bumiputera employees in management and professionals in MNCs.
Strategic Thrust 4 – Labour Market and Compensation of Employees
- Labour market to be free from discrimination over age, gender, ethnicity and religion;
- Average salary increment to ¾ of annual productivity value increases;
- Increase labour productivity growth in line with quality of technology in industry by sector;
- Reduce the total number of foreign workers by implementing sector-based thresholds.
Strategic Thrust 5 – Social Wellbeing
- Equality in merit-based median salary ratio;
- Measure poverty level by using relative poverty index;
- Build day-care centres in every locality;
- Affordable housing cost to be determined using the Housing Cost Burden (HCB) approach, which is less than 30% of monthly median household income in Malaysia.
Strategic Thrust 6 – Regional Inclusion
- Integrated urban-rural transportation system;
- Ten listed companies in every developing state, half of which are Bumiputera;
- Reduce income disparity between regions by half;
- Reassess quantity and quality of Malay reserve land;
- Introduce new regional economic hotspots particularly outside Klang Valley areas;
- Ensure the nation’s Critical Infrastructure Development Plan is realised (e.g. hospital, schools and bridges).
Strategic Thrust 7 – Social Capital
- Achieve positive increases for the following indices -
- Unity Index;
- Integrity and Anti-Corruption Indicator;
- Religious Harmony Index;
- Environmental and Climate Change Index;
- Anti-Drug Index;
- Crime Prevention Index;
- Neighbourhood Harmony Index;
- Rakyat Health Index.