Mustapa: New economic sectors to be identified under 12MP

Focus will be on accelerating the development of high potential industries, among others aerospace, advanced electrical and electronics, halal, creative industry, biomass, and smart farming.

"These industries have been identified based on their prospects in generating high value-added activities and products, advanced technology adoption, research and development and innovation, high-skilled employment, as well as their contribution in achieving the green agenda," he said.

Mustapa said this in his keynote address during a webinar on 12MP: A Conversation with Datuk Seri Mustapa Mohamed hosted by the Malaysian Economic Association today.

To recap, the unveiling of the 12MP 2021-2025 has been postponed to early next year to allow for more input from stakeholders and importantly to take into consideration the policy adjustments and economic reforms needed to rebuild and restructure the economy in the post-pandemic period.

The minister also said the successful implementation of these measures would enhance competitiveness and resilience of the economy, and position Malaysia as an important player in the global supply chain, for complex and high value-added products and services.

Focus would also be given on attracting quality investments which promote the development of complex products and services, create high-skilled and high-paying jobs, encourage higher use of domestic inputs and improve development in underserved areas.

"The expectations of the 12MP are high. I admit that formulating the plan is a daunting task. Even without the pandemic, we have been grappling with a number of structural issues. We need bold and radical ideas to address long outstanding issues, such as low value-added economic activities, inequitable income distribution and regional disparity.

"Malaysia, being an open economy, is pretty much affected by the global economic situation...COVID-19 has caused global economic turmoil, pushing the economy to the deepest recession.

"Even without COVID19, a number of issues such as intense trade tensions especially between the US and China, and geopolitical conflicts have led to uncertainties, dragging the economy deeper into volatility," he stressed.

Mustapa explained that the 12MP, as with previous Malaysia plans, is a very important document that will lay the foundation for Malaysia to recover from the pandemic.

It will chart the path to a sustainable economy, while ensuring the wellbeing of the people, in the context of shared prosperity.

"We are putting emphasis on the issue of economic and institutional reforms, while making the agenda of sustainability to be more explicit in this national development plan.

"We need to move up the value chain; adopt technology and innovation to enhance economic growth; develop an inclusive society to ensure social justice and improve the wellbeing of the rakyat; boost environmental sustainability by implementing a clean, green and resilient development agenda; and improve the efficiency of the delivery system to be more people-centric, efficient and productive," he said.