Malaysia to fully utilise RM227bn allocation for economic transformation under 13th Malaysia Plan

MITI has pledged to ensure that the RM227bn allocated to the economic sector under the 13^th Malaysia Plan 2026–2030 will be channelled towards driving the country’s economic transformation.

The 13MP outlines a total allocation of RM611bn, with RM227bn dedicated to strengthening Malaysia’s economy. The Ministry of Investment, Trade and Industry (MITI) has welcomed the government’s continued commitment to the Strategic Co-Investment Fund (CoSIF) under the New Industrial Master Plan (NIMP) 2030, to support high-value investments.

According to MITI, the plan’s implementation will be anchored by key strategic policies such as the NIMP 2030, the National Semiconductor Strategy (NSS), the National Investment Aspirations (NIA), the Green Investment Strategy (GIS), and the National ESG Industry Framework (i-ESG).

Boosting high-value industries

MITI will intensify efforts to expand the High Growth High Value (HGHV) sector through NIMP 2030 and the NSS. This includes positioning Malaysia as a high-tech semiconductor hub, targeting RM1tn in electrical and electronic (E&E) exports by 2030. Initiatives such as the IC MyChipStart Programme, Selangor Semiconductor IC Design Park, Penang Silicon Design@5km+, and Sama Jaya High Technology Park in Sarawak are already in place to support this shift.

Growing Malaysia’s halal industry

The development of Halal Industrial Parks will be strengthened, with the aim of increasing halal exports by RM80bn by 2030. Between January and June 2025 alone, Malaysia recorded RM33.32bn in halal exports.

Strengthening talent and competitiveness

From a talent perspective, MITI aims to make Malaysia a competitive regional hub for trade, investment, and skills development under the “Made by Malaysia” aspiration. Over 13,000 highly skilled Malaysian workers have been trained in the semiconductor sector through collaborations with the Collaborative Research in Engineering, Science and Technology (CREST) and TalentCorp. Studies show that participants in these skills upgrading programmes have seen salary increases of up to 20%, with more than half now earning over RM3,000 a month.

Advancing green growth

Sustainable growth will also be prioritised through the GIS, which focuses on areas such as renewable energy and the circular economy. As of March 2025, RM22.9bn in green investments have been approved, covering 1,492 projects that are expected to create 9,199 jobs.

Enhancing global competitiveness

Malaysia has moved up 11 spots to rank 23^rd in the World Competitiveness Ranking 2025. MITI is working towards the 13MP goal of placing Malaysia among the world’s top 12 most competitive economies by 2033, supported by the National Competitiveness Committee (JKDSN) and more than 1,000 regulatory reform initiatives.

Strengthening trade policies

MITI will introduce the National Trade Blueprint 2.0 to ensure trade strategies are effectively implemented. The ministry will continue to encourage industries to leverage 18 existing free trade agreements (FTAs), including the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Negotiations are ongoing with the European Union, the Gulf Cooperation Council, and the Republic of Korea, while regional economic collaborations such as the Johor-Singapore Special Economic Zone (JS-SEZ) will be reinforced.

Focus on delivery and governance

Tengku Datuk Seri Utama Zafrul Aziz, Minister of MITI highlighted the enhanced monitoring mechanism under the Policy Implementation Plan (PPD) Monitoring System, alongside initiatives such as the Invest Malaysia Facilitation Centre and the Delivery Management Unit for NIMP 2030. Progress updates will continue to be shared quarterly through the MITI Report Card.

“MITI will ensure that the 13MP economic policies under MITI’s supervision will be implemented as best as possible to drive Malaysia’s sustainable and inclusive growth, which will strengthen Government governance, improve the people’s quality of life, and open up more opportunities for small and medium enterprises (SMEs),” Tengku Zafrul said.

With this RM227bn allocation, MITI is set on ensuring that Malaysia’s economic transformation goals under the 13MP are achieved, positioning the nation as a driver of global growth potential.

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