Malaysian Government Launches Shared Prosperity Vision 2030

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