Household income of RM10,000 per month can be achieved via macro strategies - Eddin

KUALA LUMPUR: The government is confident that the household income target of RM10,000 a month by 2025 can be achieved through various macro strategies introduced to revive and strengthen the economic fundamentals.

Deputy Minister in the Prime Minister's Department (Economy) Datuk Eddin Syazlee Shith said the strategies included efforts to increase productivity, promote quality investment, accelerate economic structural transition, leverage participation in the global value chain, increase the proportion of workers' compensation, and ensure long-term fiscal sustainability.

"The target set is realistic based on the achievement in increasing the average household income for the period of 2009 to 2019 at 7.0 percent per year," he said during a question and answer session at the Dewan Rakyat today.

Eddin was responding to a question from Datuk Mahfuz Omar (PH-Pokok Sena) who wanted to know the government's plans to ensure that Malaysia achieves a high-income country by 2025.

Under the 12th Malaysia Plan (12MP), the government is targeting to increase the average household income from RM7,089 in 2020 to RM10,065 in 2025, an increase of 7.3 per cent per annum.

Eddin said the target set was also in line with the expected gross domestic product (GDP) growth at current prices of 7.4 per cent per annum under the 12MP and the goal to become a high-income and developed country.

"The role of the private sector will continue to be strengthened to resume the role as the main driver of economic growth. And to strengthen the role of the private sector, the National Investment Aspirations Policy will be the basis for comprehensive reforms in all investment-linked initiatives and policies," he said.

He said investment institutions will be restructured to attract more quality investments that will encourage the development of complex products and services, as well as encourage the adoption of advanced technology.

"The government is also committed to increasing and diversifying sources of income, including providing income and capacity-building programmes, improving access to basic necessities, encouraging entrepreneurship and investment towards income-generating portfolios, and enhancing the social protection system," he said.

-- BERNAMA