In a research note released today, MARC chief economist Firdaos Rosli said that greater clarity on development planning was not only necessary to reshape the economy in the post-pandemic era, but more importantly, to tee up the private sector.

Although he commended the 12MP for reorganising Malaysia’s “erratic development priorities” caused by the pandemic and political instability, he said that unless the 532-page plan provided more details, MARC expected the private sector to “remain timid, taking a wait-and-see stance”.

“While the 12MP intends to be a comprehensive blueprint on how to take the country forward, there is a conspicuous lack of details on how the government expects to address unprecedented challenges and the long-term scarring brought about by the pandemic,” he said.

“The expected impact of policy actions on growth, for example, is critical given the uncertainties surrounding the pandemic, supply chain disruptions, and deterioration in balance sheets of major sectors.

“The government needs to adapt its policy responses to what we expect will continue to be a rapidly changing environment to enhance the efficacy of the 12MP.”

Firdaos also noted that given the impact the pandemic has had on the economy, MARC believed the targets set in the 12MP were “exceedingly ambitious”.

Among the targets were boosting real gross domestic product (GDP) growth to between 4.5% and 5% per annum during the 12MP period compared with 2.7% under the 11MP, with Firdaos pointing out that the previous plan did not have to deal with the aftermath of a pandemic and lockdowns.

He also highlighted the 12MP’s goal to increase gross national income (GNI) per capita to RM57,882 at the end of the 12MP period, up from RM42,503 previously, as among the other lofty targets.