KUALA LUMPUR: The construction, service and manufacturing sectors are expected to transform and grow under the 11th Malaysia Plan (11MP), driven by government’s strategies to propel the country towards a developed nation by 2020.
The construction sector is becoming more important due to higher demand for modern and efficient infrastructure, said the Economic Planning Unit (EPU) of the Prime Minister’s Department in the 11MP.
Prime Minister Datuk Seri Najib Tun Razak tabled the five-year plan (2016-2020) in the Dewan Rakyat today.
Under the 11MP, the sector is expected to grow 10.3 per cent per annum with a contribution of RM327 billion or 5.5 per cent to the gross domestic product (GDP) by 2020.
This is in comparison with the estimated record of an average annual growth rate of 11.1 per cent during the 10th Malaysia Plan, which was supported by expansion in the civil engineering, residential and non-residential sub-sectors.
The EPU said the government would introduce the Construction Industry Transformation Programme 2016-2020 to propel the industry forward and meet market demand.
The transformation of the construction sector will be underpinned by four main strategies, including driving productivity by increasing technology adoption and modernising construction methods.
The other strategy also include enhancing knowledge content by increasing human capital quality, accelerating capacity and capability building of small and medium enterprises and Bumiputera contractors.
It is also aim at reducing the mismatch between labour demand and supply.
The services sector will be guided by the Services Sector Blueprint, which aims at unlocking the potential of the sector and transform it to become more knowledge intensive and innovation-led.
In the new Malaysia plan, the sector is expected to grow at 6.9 per cent per annum, contributing 56.5 per cent to the GDP in 2020, and providing 9.6 million jobs.
The 11MP will focus on the development of sub-sectors and industries that are tradeable, have high-knowledge intensity and linkages with the rest of the economy, and the potential to generate high-income jobs.
Industries such as Islamic finance, oil and gas services, private healthcare, private higher education, ecotourism, halal industry and professional services will be further promoted.
Meanwhile, to facilitate international market penetration, Malaysia halal standards will be linked to international standards to enhance global acceptance.
The manufacturing sector will aid transition towards more high-value, diverse and complex products, driven by three catalytic sub-sectors, namely chemicals, electrical and electronics as well as machinery and equipment.
The sector will also be supported by industries with high potential growth such as medical devices and aerospace.
The transition will be underpinned by enhanced research and development, more sustainable manufacturing practices, greater compliance to global standards, and collaboration between stakeholders.
The EPU said to this end, five strategies had been identified to grow and energise the manufacturing sector, such as stimulating innovation-led growth and ramping up internationalisation. – Bernama