Mr. Speaker, Respectfully, I stand in this august House to move the following THAT this House, is aware of the challenges to rehabilitate and regenerate the country’s economy to achieve sustainable growth, taking into account the post-COVID-19 socio-economic landscape and the achievements of the Eleventh Malaysia Plan, 2016-2020; commend the Government’s efforts to plan and implement a sustainable national development agenda in line with the spirit of the Malaysian Family.

The aspirations of the Vision for Shared Prosperity 2030 and the Sustainable Development Agenda 2030; and approved the Twelfth Malaysia Plan for the period 2021 to 2025 which sets a strategic direction to achieve the objective of “Prosperous, Inclusive, Sustainable Malaysia” by focusing on efforts to revive economic growth, ensure the country’s prosperity can be distributed more fairly and equitably and maintain environmental sustainability, according to the CMD.1 Order Paper of 2021.

THAT in approving the Twelfth Malaysia Plan, this august House calls on all Malaysians to work with full commitment and commitment, to develop the country sustainably to enable every member of the Malaysian Family regardless of religion, race and ethnicity to enjoy a decent standard of living. ” Malaysian Family – Prosperous, Inclusive, Sustainable. I am grateful to Allah Subhanahu Wa Ta’ala for giving me the opportunity to present the 12th Plan, 2021 to 2025 in this glorious House. I am also grateful that the 12MP proposal that I presented on 27 September 2021 has been approved by the Dewan Rakyat on 7 October 2021. I am happy because generally the 12MP is welcomed by all parties.

I have completed the Malaysian Family Pre -Launch on 8 October 2021 so that we can all fully appreciate the approach and direction of the Malaysian Family. The Malaysian Family approach encompasses the characteristics of inclusiveness, togetherness and gratitude. It is a spirit that needs to be nurtured based on the existing values ​​that we have in a large family as a guide to further strengthen Malaysia’s strength. This spirit is important for us to live and together translate it in the implementation of the 12MP. This is in line with our goal to revive the country’s economy, improve the well -being of the people and achieve the status of a high -income country.

We have seen the world affected by the spread of the COVID-19 pandemic. By 2020, the global economy has contracted at a rate of 3.2 percent. Malaysia also suffered the effects of the pandemic and recorded a contraction of 5.6 per cent in the same year. As a result, the country’s economy during the 11MP period, which is 2016 to 2020 only grew at an average rate of 2.7 percent per year, which is less than the target, between the target of 4.5 percent to 5.5 percent per year. Gross national income (or GNI) per capita is 42 thousand 500 ringgit, or 10 thousand 100 US dollars in 2020. Malaysia has achieved higher growth in the first four years of the 11MP, which is 4.9 percent per annum.

In the Eleventh Plan, the Government has spent a total of 248.5 billion ringgit for socio-economic development. Of this expenditure, 46 percent is distributed to six states that need more focus, namely Kedah, Kelantan, Perlis, Sabah, Sarawak and Terengganu. To address this twin economic and health crisis, the Government has implemented eight economic assistance and stimulus packages worth 530 billion ringgit. Alhamdulillah, the economy has stabilized and grown by 16.1 per cent in the second quarter of 2021. In line with the opening of more economic and social sectors, the country’s economy is beginning to show signs of a stronger recovery.

For the period January to August 2021, the country’s trade increased by 22.9 percent to 1.4 trillion ringgit, compared to the same period last year. The unemployment rate in August 2021 declined to 4.6 per cent, from a high of 5.3 per cent in May 2020. In addition, the Purchasing Managers’ Index (or PMI) for the manufacturing sector has improved since July 2021, indicating growing confidence in the country’s economic recovery. Today, the National COVID-19 Immunization Program has shown encouraging progress. As of October 11, 2021, 90.4 percent of the adult population has received a complete vaccination shot. The increasing vaccination rates and the widening coverage have enabled the Government to relax the Movement Control Order (PKP) on a targeted basis under the National Rehabilitation Plan.

The COVID-19 pandemic has caused emotional disturbance and emotional stress among some of the Malaysian Family. As I announced, cross -state movement has been allowed once the complete vaccination rate of the adult population reaches 90 percent. I hope this relaxation can heal our hearts to meet parents and family members who have long been separated. However, the standard operating procedures that have been set must be followed by the Malaysian Family.

The 12MP, with the aim of ‘Malaysian Families – Prosperous, Inclusive, Sustainable’, is a comprehensive development plan to ensure sustainable economic growth with a more equitable distribution of opportunities and outcomes. The reforms introduced in the 12MP include three Themes and four Policy Catalysts as well as 14 Drivers of Change. The Government takes a nationwide approach, with permission, a whole-of-nation approach involving the entire machinery and agencies of government, the private sector, academia, civil society organizations (or CSOs) as well as the people in the formulation and implementation of this Plan.

I am aware that the Malaysian Family places high hopes on the Government, to address this twin crisis. The Government will allocate 400 billion ringgit to meet the needs of the 12th Plan, especially to finance development projects. However, in the current limited financial situation, the focus of spending in 2021 and 2022 is to protect lives and livelihoods as well as meet extension project commitments. God willing, we expect the Government’s financial position to improve in 2023, when the economy strengthens. The 12MP sets several key targets to ensure that the strategies and initiatives implemented can be evaluated in terms of their success. Among the main targets are as follows:

  • First: GDP growth is targeted at 4.5 to 5.5 per cent per annum in the period 2021 to 2025;
  • Second: The average household income is estimated at about 10 thousand ringgit per month in 2025;
  • Third: The GDP per capita gap between the Central Region and Sabah will be reduced to 1 ratio 2.5, while for Sarawak it will be reduced to 1 ratio 1.2 in 2025; and
  • Fourth: Reduction in the intensity of greenhouse gas emissions or, with permission, green house gas (or GHG) by 45 percent to GDP by 2030 based on the intensity of emissions in 2005.

 For the purpose of today’s presentation, I enclose three themes, four policy catalysts and 14 drivers of change contained in the 12MP under nine main focuses as follows:

  • First: Boosting Economic Growth;
  • Second: Strengthening Growth Catalysts;
  • Third: Improving the Well -Being of Malaysian Families;
  • Fourth: Strengthening Security and Peace Awam;
  • Fifth: Eradicating Hardcore Poverty and Bridging it Income Gap;
  • Sixth: Empowering the Bumiputera and Family Agenda Malaysia;
  • Seventh: Boosting the Development of Sabah, Sarawak and Underdeveloped States;
  • Eighth: Accelerate Green Growth; and
  • Ninth: Improving the Efficiency of Public Service Delivery and Ensuring Policy Implementation effective.

The first focus is on restoring the growth momentum of all sectors of the economy. It also aims to create new sources of growth as well as accelerate the transformation of micro, small and medium enterprises (or SMEs). The growth of the services sector will be supported through the implementation of strategies to modernize the sector to make it a regional services hub as well as provide a conducive business environment to further encourage quality investment. The manufacturing sector will focus on the production of products in several strategic and high -impact industries, including electrical and electronics, aerospace and halal industries.

The agricultural sector will be strengthened by using smart technologies to increase productivity and the level of food security in the country. The construction sector will be boosted by the use of advanced technology. Activities in the mining sector will be focused to the production of processed minerals and new mineral materials of high added value as well as sustainable mining. The National Investment Aspirations Framework (or NIA) will attract quality investment and enable Malaysia to become an investment hub in the region.

Existing incentives will be reviewed to focus on investments that are based on advanced technology and meet environmental, social and governance (or ESG) principles. International trade will be strengthened by enhancing the competitiveness of key export industries, identifying new markets and improving the efficiency of trade facilitation. In addition, trade cooperation will be encouraged through the ratification of new free trade agreements (or FTAs) such as, with permission, the Regional Comprehensive Economic Partnership (or RCEP).

he Government is committed to continue to help revive PMKS, especially through the digital transformation agenda to drive growth in new post -pandemic norms. PMKS is the backbone of the national economy which is 97.2 percent of the total number of enterprises and will contribute 39 percent to GDP in 2020. However, most PMKS are still less competitive and affected by the pandemic. Under the 12MP, several major programs and projects will be implemented, to boost the growth of strategic sectors and industries.

Among them are research and investment loan funds aerospace development; the establishment, with permission, of the Center of Excellence for Future Industry; intellectual property funds; and simple financing schemes for digitization and adoption of technology. This effort is to support local companies in transitioning to advanced technology. With the implementation of several of these plans, during the 12th Plan period, the services sector is targeted to record an average growth of 5.2 per cent, manufacturing 5.7 per cent, agriculture 3.8 per cent, mining and quarrying 2.6 per cent and construction 4.2 per cent. PMKS is expected to contribute 45 percent to GDP, and 25 percent of total exports in 2025.

Malaysia’s goal is to become a high -income and advanced technology nation. The only option is for us to accept the use of new technology and create and develop our own technology. At the same time, infrastructure development needs to be strengthened and future talent developed to catalyze economic growth. Measures to accelerate the adoption of technology and innovation will be focused on digitization and advanced technologies, including Fourth Industrial Revolution (or 4-i-R) technologies. Earlier this year, the Government launched the MyDIGITAL agenda and followed up with the National 4-i-R Policy. Initiatives under both of these policies are in full swing implemented and monitored through the National Digital Economy Council and 4-i-R.

The Government is committed to spearheading the MyDIGITAL agenda through public sector digitization initiatives and PMKS transformation. We hope that efforts to provide digital infrastructure involving public and private sector investment worth 28 billion ringgit will improve the existing 4G network. A total of 15 billion ringgit of private sector investment will accelerate the implementation of 5G nationwide.

The Government is focusing specifically on improving digital infrastructure and services to address the digital divide. The implementation of the National Digital Network Plan or JENDELA is expected to provide 100 per cent 4G coverage in populated areas, wider 5G coverage and fixed line broadband to nine million premises by 2025. As of August 2021, 4G coverage has reached 94 per cent and is expected to reach 96.9 per cent by the end of 2022. More than 6 million premises have access to fixed line broadband services. Meanwhile, the 5G technology network, which will be launched at the end of 2021, is expected to reach 80 per cent coverage in populated areas by 2024.

These various digitization initiatives are expected to support the achievement of the target of 25.5 per cent digital economy contribution to GDP in 2025. The government is aware that the gig economy (or gig economy) is growing rapidly. Therefore, a conducive ecosystem will be created to provide alternative employment and income -increasing opportunities to the people. Among the efforts that will be implemented is the accreditation of local platforms, such as platforms that provide e-hailing and p-hailing services. A regulatory framework is being put in place to ensure that platform providers, employees and users are protected.

In addition, the welfare of gig workers will be given attention including by improving the provision of unemployment compensation benefits, health protection and savings for retirement. The issue of the digital divide between rural and urban areas will be addressed through the provision of digital infrastructure facilities. In this regard, the Malaysian Family Digital Center will be established by transforming the Internet Center, Rural Internet Center and Rural Community Center. The center will provide e-commerce activities, skills training, learning and community activities in an integrated manner.

I want this Malaysian Family Digital Center to play an important role in supporting the transformation of Malaysian Families, especially in rural areas. Efforts will be intensified to produce more technology developers and creators as well as local technology entrepreneurs to generate wealth and economic growth. To this end, all development and research, commercialization and innovation (or R&D and C&I) activities will be aligned with national priorities. The commercialization aspect will be emphasized by providing as much as 50 per cent of the research funds for experimental research.

In 2025, the percentage of gross R&D expenditure to GDP is expected to reach 2.5 per cent, compared to only 1.0 per cent in 2020. To this end, the contribution of the private sector is targeted to double, reaching 70 per cent of the total. R&D expenditure. Alternative funding sources including venture capital, international financing and endowment funds will also be enhanced. The Government will continue to implement large and high -impact projects. Among the major projects that will be completed are the Gemas Electric Double Track to Johor Bahru, the East Coast Rail Line (or ECRL) and the Central Spine Road from Bentong, Pahang to Kuala Krai, Kelantan.

Special means simple funds for infrastructure projects will be created under the Public Private Partnership model or, with permission, Public Private Partnership (or PPP) 3.0. This project implementation model will not involve additional financial commitment of the Government but instead use the method with permission, request for proposal (or RFP). The implementation model of this project is expected to be announced in mid -2022.

The availability of talent or, with permission, quality talent is very important for the development of the country. Therefore, the focus will be on improving the entire education system of the country and addressing the issue of mismatch in the job market. Among the main measures that will be implemented are as follows:

  • Strengthen science, technology, engineering and mathematics (or STEM) education to provide students with technological change including 4-i-R;
  • Provide a more conducive school environment, including through the replacement of poor school buildings;
  • Strengthen TVET programs through accreditation by international bodies and introduce a TVET institutional rating system; and
  • Introduce digital education plans at the school and tertiary levels.

The Graduate Marketability Strategic plan 2021 to 2025 was introduced to address the issue of mismatch in the labor market. In addition, with permission, the Job Creation Strategic Plan 2021 to 2023 will be introduced to provide a resilient and highly skilled workforce. To reduce dependence on low -skilled foreign workers, the use of automation and mechanization in the production process will be increased and foreign workers will be limited to 15 per cent of the workforce. Enforcement related to foreign workers will be strengthened for this purpose.

To strengthen the delivery of healthcare services, the Government is reviewing the effectiveness of the system existing health. National health policies will be formulated to increase preparedness to manage communicable diseases as well as health crises. The National Vaccine Development Roadmap that is being finalized will ensure that we are able to produce our own vaccines, and be prepared for any pandemic in the future.

The Government has also identified several measures to improve the readiness of hospitals and health facilities. In this regard, the Government is targeting a ratio of 2.06 hospital beds per thousand population by 2025. In addition, medical equipment and supplies, including the need for intensive care units (or ICUs) will be added. In an effort to bridge the gap between urban and rural health facilities, the Government will build and upgrade health clinics nationwide.

The Government is committed to ensuring the provision of quality and affordable housing for the well -being of Malaysian families. In the 12MP, a total of 500 thousand units of affordable housing will be built to increase the chances of the B40 and M40 groups to own a house. In addition, financing facilities will be improved to ensure that the B40 and M40 groups are not burdened with installment payments. 

To provide housing assistance to the poorest people, the Government will build and repair 85 thousand 500 units of houses in rural and urban areas. This will also be supported with housing construction implemented by state governments, the corporate sector and CSOs. As explained at the beginning of my speech, the Malaysian Family approach will strengthen unity among the people. As a family, differences in race, religion, ethnicity and political ideology will not prevent us from upholding the spirit of togetherness.

To build a nation -state, the understanding and appreciation of the Federal Constitution and the Rukun Negara, must continue to be inculcated and empowered to the next generation of the nation. The security of the people and the sovereignty of the country are fundamental to ensure the peace and stability of Malaysia. Among the initiatives that will be implemented include measures to improve preparedness, border control and enforcement, enhance public order, strengthen cyber security and defense as well as safeguard the welfare of members. I will make sure, more drastic steps will be taken to implement a comprehensive plan, and strengthen Ops Benteng to curb illegal immigrants.

Among the projects to be implemented, include the Marine Police Sea Monitoring System in five maritime provinces, the construction of Bare Base Bintulu Air Force, Sarawak, construction of Terendak Armed Forces Hospital, Melaka and enhancing the capacity of maritime assets. In addition, the assets of the Royal Malaysian Navy will complement the existing Bintulu Port to monitor maritime security in the waters of the South China Sea. The new army camp in Felda Sahabat, the 5 Brigade Camp in Kota Belud and the General Operations Force camp in Beluran, Sabah will be completed during the 12th Plan period.

The National Defense and Security Industry Policy will be introduced, to set the direction of local defense and security -related industries. To ensure the welfare of military personnel and enforcement personnel, 10,200 units of army family houses and quarters are being built and can be occupied during the 12th Plan period. The issue of poverty is very close to my heart. Born and raised in a family of rubber tappers, I deeply understand the hardships and hardships of people’s lives. The COVID-19 pandemic that has hit has increased poverty rates, affected individual and household incomes, further squeezing our families into poverty.

I would like to thank all parties, including CSOs, corporate bodies, individuals and state Islamic religious councils who have always cared and supported the Government in helping the affected communities throughout the pandemic. The Government is committed to eradicating hardcore poverty and bridging the income gap of the people. A nationwide approach will be used in tackling the issue of poverty. The Poverty Unit will be established under the Economic Planning Unit, Prime Minister’s Department (or EPU, JPM) through a reorganization of functions and staffing to coordinate all poverty matters, including more integrated data management. Similar units are proposed to be established in each state and district office.

Through these efforts, I am confident that the target of eradicating hardcore poverty can be achieved by 2025. Recognizing the impact of the pandemic on poverty rates and to ensure more effective poverty eradication initiatives, the existing Poverty Line Income (or PGK) will be updated based on the Household Income and Expenditure Survey 2022. Poverty measurement methods will also be further improved by expanding the scope Multidimensional Poverty Index (or MPI).

To improve the well -being of B40 families and vulnerable groups, more concerted efforts will be made to increase income and address the rising cost of living. ​​Targeted assistance such as cash grants and social protection, will be extended to those who are eligible. The Urban Community Economic Empowerment Program and the Rural People’s Well -Being Development Scheme, at a cost of RM1.5 billion, will be strengthened to enhance the marketability, well -being and purchasing power of B40 families. I call on the corporate sector and individuals to continue their noble endeavors helping Malaysian Family members out of poverty, including through the provision of zakat and wakaf.

Poverty today also exists in many dimensions. In terms of education, more students from B40 families will be given priority admission to high -performing schools and scholarships. For health, access to health care will be expanded. The issue of malnutrition among children from the B40 family will be addressed comprehensively, including through nutritious food intake. To enhance the capabilities, skills and marketability of the M40 group, training and re -skills training programs as well as entrepreneurial activities will be enhanced regardless of race. M40 children will also be ensured access to quality education at an affordable cost.

The Malaysian family includes Malays, Bumiputeras, Orang Asli and Sabahans who have 42 ethnicities and more than 200 sub-ethnic groups, including the Kadazan, Dusun, Murut, Rungus, and Bajau tribes. Also Sarawak Bumiputeras who have 27 ethnicities, including the Iban, Orang Ulu, Melanau and Bidayuh in addition to the Chinese, Indians and others. These low -income family members as well as the group specific and vulnerable groups regardless of race, who need advocacy and guidance, will be given attention.

I assure you that the Bumiputera agenda will continue to be strengthened and will not be ignored. This is as enshrined in Article 153 of the Federal Constitution which gives the rights and privileges of the Malays and natives, the natives of Sabah and Sarawak, and the legitimate interests of other races. The Government’s intention is to achieve more just and equitable and inclusive socio -economic development in line with the spirit of the Malaysian Family.

This agenda will be incorporated in the implementation of all policies to ensure that it becomes a priority component at all levels and aspects of development. All parties, including the Government, government-linked companies (or GLCs) and government-linked investment companies (or GLICs) and the private sector will work together to advance this agenda. To increase Bumiputera participation in economic activities, access to and educational opportunities as well as human capital development, including huffaz, will be strengthened, among others through the following initiatives:

  • Training in technical and professional fields to become experts in various fields; and
  • Skills for future careers, such as data analysts and scientists as well as big data specialists.

The resilience and sustainability of Bumiputera businesses will be further enhanced to achieve the target of 15 per cent contribution of Bumiputera PMKS to GDP in 2025. This achievement will supported through the provision of funding and implementation of new programs, including:

  • Bumiputera Prosperity Fund for Bumiputera companies;
  • Express Contract Financing Scheme under the Trust Council Rakyat (or MARA) for Bumiputera contractors; and
  • The participation of more Bumiputera entrepreneurs in the digital economy and industries with potential high growth.

To increase Bumiputera wealth, the policy and implementation of Bumiputera home ownership quotas will be strengthened through closer cooperation between the Federal Government, state governments and local authorities. Apart from that, financial assistance, guidance and mentoring by financial institutions will be expanded to support Bumiputera entrepreneurs

The National Wakaf Master Plan is being developed to ensure more efficient wakaf management. As an initiative in promoting more wakaf instruments, a wakaf fund at the national level will be established to fund Islamic and Bumiputera socio -economic development programs. the target of at least 30 per cent Bumiputera corporate equity ownership has yet to be achieved. The equity ownership status of the corporate sector based on market value in 2019 is as follows:

  • Bumiputera holdings only reached 17.2 percent;
  • Non -Bumiputera 25.0 per cent;
  • Foreign holdings 45.5 per cent; and
  • Nominee 12.3 percent.

Currently, nominee holdings are not required to disclose the true owners of shares under these holdings. In this regard, I would like to inform that the Companies Act 2016 and the Malaysian Anti -Corruption Commission Act 2009 are being improved to enable the real owners of shares to be identified. As I have also announced, an equity safety net framework will be introduced so that the sale of shares or companies owned by Bumiputera mandated agencies, is only offered and sold to other Bumiputera consortia, companies or individuals. Among these Bumiputera mandate agencies are PNB, which contributes the largest percentage to Bumiputera equity ownership, as well as MARA and EKUINAS.

I would like to emphasize that the proposal to introduce this equity safety net framework will not take away the interests of other races. Private companies are not subject to this proposal, instead they are subject to the existing rules under the regulation of the sector concerned. This is to ensure that the sale of shares and companies by local companies to foreign owners will be controlled and in turn can ensure that Bumiputera equity ownership is not eroded.

The government is committed to strengthening the socio -economic development of the Orang Asli. Indigenous socio -economic development plan which is being designed, among others, to improve aspects of increasing income and well -being as well as the provision of basic infrastructure for this community. The number of Comprehensive Special Model Schools 9 (or K9) will be increased and partially upgraded to K11 to provide greater opportunities for quality education to Orang Asli students. In addition, aspects of teaching and learning will continue to be improved, including improving the quality of teachers and facilities in schools.

Low -income Chinese households will also continue to be given attention. To increase participation in entrepreneurship and business growth, the Kampung Baru Residents Special Loan Scheme will be improved. Apart from that, basic infrastructure and social amenities programs will be continued to improve the well -being of the people in Kampung Baru Cina. In achieving inclusive development, the well -being of low -income Indians will continue to be the focus. Access to education, skills upgrading as well as employment and entrepreneurship opportunities will continue to be provided in line with the Indian Community Action Plan.

As the future asset of the country, the roles and responsibilities of young people in the Malaysian Family will continue to be given attention. In that regard, a national plan for the economic empowerment of youths is being drafted to strengthen their role in national development. The capacity and capability of the youth will be enhanced to give birth more skilled workers. In line with the constitutional amendment to allow 18 -year -old citizens to vote (or Vote18), the Government will ensure that Vote18 is implemented in the near future. This will enable the voices of young people to be heard and taken into account in the national development agenda through the practice of democracy.

By 2030, Malaysia is expected to be an old country when 15 per cent of the total population is aged 60 and above. The Government will improve the support system for senior citizens as well as improve and expand the coverage of the National Senior Citizens Registration System. People with disabilities (OKU) will also continue to be empowered by implementing programs such as Rehabilitation in the Community (or PDK), Independent Living Center services, OKU entrepreneurship programs and special career carnivals.

The involvement of women in the economic sector and the decision -making process will be enhanced. Steps will be taken to encourage more women to stay and return to work, further contributing to the target of 59 per cent female participation in the labor market by 2025. In addition, the development of women entrepreneurs will be strengthened by increasing access to funding and skills training. Efforts to empower gender and improve the law will be implemented to address issues related to women.

As I have stated before, I am committed to resolving issues relating to the claims of Sabah and Sarawak based on the 1963 Malaysia Agreement (or MA63). These include basic infrastructure requirements, gas and electricity regulation, digitization and security aspects. Therefore, the development of Sabah and Sarawak will continue to be given priority in the 12th Plan. The provision of basic infrastructure will be expanded by building bridges and upgrading 1,400 km of rural paved roads as well as completing the construction of 1,150 km of the Pan Borneo Highway.

Efforts to reduce the economic development gap between states, between regions and between urban and rural areas will continue to be focused. Efforts to boost the growth of underdeveloped states, especially Sabah and Sarawak will be intensified. It aims to accelerate the slowdown in GDP growth in the states of Kedah, Kelantan, Perlis, Sabah, Sarawak and Terengganu as well as reduce poverty, especially in Sabah, Kelantan and Sarawak.

For this purpose, at least 50 per cent of the total Federal Basic Development allocation shall be distributed to the said states. This allocation is focused on the provision of basic infrastructure, digitization, education, healthcare services and economic development. I myself will monitor its implementation closely. As I announced during Malaysia Day, an allocation of 7.7 billion ringgit, namely 3.61 billion ringgit to the state of Sabah and 4.09 billion ringgit to the state of Sarawak is provided for implementation of JENDELA during the 12MP period.

With this provision, broadband coverage will be enhanced through the construction of digital infrastructure, including the construction of telecommunication towers or transmitters. As of August 2021, a total of 2,645 digital infrastructures have been installed in Sabah and 2,117 in Sarawak. To improve electricity supply, a new power plant will be built and the Sabah East-West Grid transmission line will be upgraded. The Baleh hydroelectric construction project in Sarawak is expected to be completed in 2025.

Healthcare services will be enhanced with the completion of Universiti Malaysia Sabah Teaching Hospital and Universiti Malaysia Sarawak Teaching Hospital. The construction of 26 new clinics will be able to improve healthcare services at rural clinics in both states. Apart from that, the construction of new houses and the repair of poor houses under the housing assistance program will benefit 26 thousand poor households in Sabah and Sarawak.

To ensure security and enhance economic ties with Kalimantan, Indonesia, new border control posts in Manalunan, Simanggaris and Kalabakan, Sabah, will be built, while the Tebedu and Serikin ICQS Complexes, Sarawak will be upgraded. Apart from that, the Road Project from Ba’kelalan Border/CIQ Complex to Lawas will begin construction in 2022. With the implementation of these strategies and initiatives to accelerate the development of Sabah and Sarawak, the average annual GDP growth of Sabah is expected to increase at a rate of 6.5 percent and the state of Sarawak at a rate of 5.3 percent in the period 2021 to 2025.

I am confident these two states have the capacity and strength of resources that can be fully optimized. Thus, actual growth could be higher than these expectations. In an effort to transform rural areas, high value-added economic activities will be boosted through e-commerce platforms, smart agriculture and rural industries. Rural infrastructure will be enhanced by building and upgrading 2,800 km of paved roads, for example, including:

  • Jalan Nanga Tulie to Rumah Bujah, Nanga Pelagus in Kapit, Sarawak at a cost of 280 million ringgit;
  • Jalan Dudar to Taburan to Mendawang in Kota Belud, Sabah at a cost of 101 million ringgit;
  • Rural Road from Simpang FELCRA Ulu Kerut to Kampung Orang Asli Boats to FELDA Jengka 7 to Jalan Kilang Sawit Jengka 18 in Maran District, Pahang at a cost of 135.3 million ringgit; and
  • Jalan Baharu from Kampung Gagu to Ulu Beranang in Negeri Sembilan with a project cost of 179.2 million ringgit.

Apart from that, efforts will also be stepped up to ensure access to clean water supply reaches 98 per cent and electricity supply 99 per cent. To intensify local socio-economic activities, small rural projects will continue to be implemented such as the Social Amenity Program with an allocation of 310 million ringgit and the construction of Rural Roads with a cost of 1.6 billion ringgit. These efforts are expected to help bridge the income gap between rural and urban areas.

I appreciate every drop of sweat and fatigue of farmers, ranchers and fishermen. They are also an important component of rural development. Our family must be brought together in the economic transformation of the country. The FELDA Rehabilitation Plan is being actively implemented to enable FELDA to operate independently and sustainably as well as to improve the socio -economic status of FELDA residents. The recovery plan, among others, involves reducing the debt burden of FELDA and settlers, increasing core income, optimizing operational management and improving FELDA’s financial management and corporate governance.

Apart from that, the FELDA area will also be transformed into the country’s leading food producer based on smart agriculture and in turn become an example or, with permission, a role model for the transformation of modern and progressive rural communities. Accordingly, an action plan that will detail the implementation strategy will be prepared. The issue of second generation FELDA housing will be addressed by re -introducing the housing development model based on the concept of self -construction by the second generation. Through this model, the second generation will be offered standard house sites and designs by the Government. FELDA has identified 5 thousand lots in 54 land plans for sale at affordable prices to the second or new generation of FELDA nationwide.

Economic development should not affect the environment. Therefore, the Government will take into account the principles of ESG in the decision -making process. This measure will continue to be implemented to meet the commitment to reduce the intensity of GHG emissions by up to 45 per cent to GDP by 2030, based on the intensity of emissions in 2005, in line with the aspiration to become a low -carbon nation.

I would like to urge more parties to emulate the initiatives of several GLCs and GLICs as well as private companies that have expressed commitment to achieve, with permission, net zero carbon emissions by 2050. This move becomes increasingly important as trading partners, capital markets and financial institutions place conditions of compliance with ESG principles in their investment decisions and product production.

I have expressed my commitment that Malaysia will be a carbon neutral country as early as 2050. To further clarify this aspiration, I have chaired the Malaysian Climate Change Action Council Meeting No. 2 of 2021 on 11 October 2021. Details of measures for achievement the aspiration of zero net GHG emissions will be announced after the study of the country’s long -term low carbon development strategy is finalized in 2022. To support this effort, measures such as, with permission, carbon pricing, including carbon taxes as well as other economic instruments will be detailed.

In addition, the Government is also committed to no longer building new coal -fired power plants, but instead focusing on cleaner electricity generation. Malaysia will voice the country’s new aspirations on climate change in the 26th Conference of Member States to the United Nations Framework Convention on Climate Change from October 31 to November 12. A roadmap to reduce GHG emissions and a national adaptation plan will be introduced to ensure coordinated and comprehensive climate change mitigation and adaptation measures. Apart from that, the Government’s green procurement initiative will also be extended to the state government and local authority levels.

This will allow the Government’s green revenue to increase to 25 per cent by 2025. A comprehensive National Energy Policy will be introduced to provide a long -term strategic direction to support the aspirations of a carbon neutral nation. Acts related to energy efficiency and conservation will be created to regulate energy consumption by high -intensity consumers in the industrial and commercial sectors. Renewable energy generation from solar, biomass and biogas is targeted to increase to 31 percent of total installed capacity by 2025.

Under the 12MP, a cyclical economic model will be implemented to reduce waste generation, dependence on natural resources and pollution. The approach to expanding producer responsibilities will be intensified, while green investment will continue to be encouraged. In addition, CSOs will be recognized as development partners in achieving the 2030 Agenda.
Mr. Speaker,
85. The development of resilient green cities will be further intensified with the target of 120 cities achieving sustainable urban status. To this end, the implementation of the Green City Action Plan initiative and a multi -dimensional public data analytics system will be introduced. The Government will also give priority to the development of an energy efficient vehicle (or EEV) manufacturing industry to support environmentally friendly mobility initiatives.
86. To support the state government’s measures to conserve forest areas, the mechanism, with permission, of ecological fiscal transfer will be improved. Sanctuaries for increasingly endangered wildlife will also be improved for conservation purposes. In addition, a blue economic blueprint will be introduced to determine the direction of sustainable development of coastal and marine areas.
87. Floods and landslides have caused a lot of property damage as well as loss of life and livelihood. To address this issue, several flood mitigation projects, integrated river basin management and coastal erosion control as well as flood forecasting and warning programs will be implemented during the 12MP period. 30

88. The Water Sector Transformation Agenda 2040 will be introduced to transform the water sector from an economic enabler to a dynamic growth generator. Efforts to adopt integrated water resources management will be intensified at the Federal, state and district levels. Water governance will be improved by increasing citizen involvement, strengthening enforcement and reviewing innovative financing mechanisms. The unsuccessful water reduction program will be continued to reach the 25 percent target by 2025.

I would like to commit that the civil service, which is the heart of the country’s administration, will continue to be strengthened to increase transparency and efficiency. The civil service will be transformed through a government -wide approach taking into account that the successful implementation of an initiative depends on the involvement of all relevant parties. The structure and functions of ministries and agencies will be restructured to create a more horizontal organization and reduce red tape.

Mechanisms for the selection and recruitment of management and professional officers in various schemes will also be strengthened to acquire the best talent. Suggestions to introduce the civil service act will be reviewed to enable the implementation of a clear separation of powers and responsibilities between Members of the Administration and civil servants. The digitization of public services will be further enhanced through the implementation of the Public Sector Digitization Strategic Plan for 2021 to 2025.

The Government is targeting online services from the beginning to the end of the Federal Government or, with permission, end-to-end online federal services to increase to 80 per cent. in 2025. In addition, open data initiatives will be strengthened through the empowerment of open data as well as the strengthening of strategic collaboration with all stakeholders. I am committed to making this Government a corruption -free and high -performing Government through the implementation of the National Anti -Corruption Plan and the Organizational Anti -Corruption Plan.

Therefore, I assure you that all strategies and initiatives under the 12MP will be implemented with integrity and responsibility. The Malaysian Governance Index will be introduced to measure the performance of the governance machinery of the government machinery in delivering services to the people. To ensure the achievement of the outcomes set out in the 12MP, the Government is finalizing the Policy Implementation Plan (or PPD) under the coordination of EPU, JPM. These PPDs align strategies and initiatives with key performance indicators (or KPIs) as well as responsible coordinating and implementing ministries and agencies.

This PPD will be prepared this November. A monitoring committee will be established and will chaired by myself to closely monitor the implementation of the 12MP. I will be chairing the first monitoring committee meeting in mid -November. I also welcome feedback from Honorable Members on the proposed implementation of the 12MP policies and strategies. Although there are those who are skeptical about the achievement of the 12MP targets, but I am confident with the cooperation of all parties including government agencies, private sector, academia, CSOs, elected representatives, Members of Parliament and Honorable Senators as well as the people with the spirit of Family Malaysia, this goal can be achieved.

I would like to thank all the government officials who worked hard in the preparation of the 12th Plan. I also call for more precise and structured efforts to be continued to monitor and implement all strategies and initiatives under the 12MP. We have been almost successful in the fight against the impact of the COVID-19 pandemic. However, we should not be complacent and careless because COVID-19 is not over yet. We must be prepared to enter the endemic phase and move on with life with new habits.

For the sake of the Malaysian Family, the Government will continue its efforts to protect lives and livelihoods, while focusing on the agenda to revive the economy and increase the country’s competitiveness. The 2022 Budget will be tabled on 29 October 2021 by the Honorable Minister of Finance. It will detail the details of programs and projects to implement the strategies and initiatives under the 12MP and will support its achievements. I am optimistic that, with the current signs of economic recovery as well as the national development agenda in the 12MP and the Budget 2022 initiative to be announced shortly, we will be able to drive the country towards more sustainable economic growth.

 Indeed this crisis has united us all and provided an opportunity for us to make change inclusively. I hope that the Memorandum of Understanding for Transformation and Political Stability, which was agreed on 13 September, will continue to be respected by both parties in line with the Malaysian Family approach. This understanding will allow us to focus fully on fighting the pandemic and put the country on a stronger growth base.Let us work together to realize the goals of the 12MP by embracing the principle of working with the people, for a better future for the Malaysian Family. Be assured that only through the cooperation of the entire Malaysian Family, the struggle against the COVID-19 pandemic and economic recovery, God willing, will there be victory.

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