THE government has raised the budget for the 12th Malaysia Plan (12MP) by RM15 billion, taking its total allocation to RM415 billion.

“The 12MP will be realigned with the vision of the Madani economy, which aims to empower and stimulate the national economy for a period of 10 years,” Prime Minister Anwar Ibrahim saidwhen presenting the mid-term review of the 12MP in parliament.

“Thus, the government is committed to spending at least RM90 billion per year for the years 2023-25.”

Anwar said the policies, strategies and targets of the 12MP would be reviewed to take into account the development gap between the cities and rural areas, wealth disparity, swelling debt, limited fiscal space and the slow transition of the economic structure.

He said RM400 billion was set aside in the 12MP to finance new development projects. The government has spent 34% of the sum in the first two years.

“In 2021, the total development expenditure was only RM64.3 billion while in 2022 the amount rose to RM71.6 billion,” he said.

Anwar said that in the first half of 2023, the GDP grew 4.2%, supported by private sector activities and trade.

He said the productivity rate had improved to 3.7% per year for the period 2021-2022 while the unemployment rate dropped to 3.5% in the second quarter of 2023.

“The inflation rate in July 2023 dropped to 2%, the lowest in 24 months.

“Gross national income per capita is higher, at US$12,035 (RM53,000) in 2022 compared to US$10,191 (RM42,800) in 2020,” he said.

Anwar said the Malaysian People’s Wellbeing Index, which measures the level of economic and social well-being of the people, was rising 1.3% a year.

He said the average monthly household income rose to RM8,500 in 2022 from RM7,900 in 2019. — Bernama