KUALA LUMPUR: THE government has set 10 targets, with an emphasis on gross domestic product (GDP) growth, for the Shared Prosperity Vision 2030.
By 2030, the GDP is projected to reach RM3.4 trillion with an annual growth rate of 4.7 per cent between 2021 and 2030.
This target is among the benchmarks for economic growth and will be used to determine the targets and goals of the Shared Prosperity Vision 2030.
Malaysia, through the Shared Prosperity Vision 2030, has chosen to adopt a national development plan that centres on an outcome-based approach.
When it began, the New Economic Policy made Bumiputera equity ownership and eradication of poverty as measurements of outcomes.
Thus, there is an immediate need for the Shared Prosperity Vision 2030 to set targets and indicators of outcomes that are comprehensive and would benefit the people.
Shared Prosperity Vision 2030 serves as a continuity of the nation’s existing vision and takes into account the realities of wealth and income gaps in three objectives.
It seeks to encompass development in a holistic manner, including infrastructure development, economy, government delivery system, environment, societal values and education.
The goals identified as the Shared Prosperity Vision 2030’s main outcome indicators are paired with strategies.
Besides aiming for GDP to reach RM3.4 trillion, the second target is to have small- and medium-sized enterprises and micro businesses contribute 50 per cent to GDP, compared with 38.3 per cent last year.
The third target is to boost Bumiputera enterprises’ contribution to GDP to 20 per cent, while average income (based on spending) should be no less than RM5,800 a month for the Bottom 40 group.
It also aims to achieve an equal salary median among Bumiputeras, Chinese and Indians at a ratio of 1:1:1.
The salary median ratio between Bumiputeras and Chinese was at 0.88:1, while the ratio between the Indians and Chinese was at 0.82:1 in 2016. The ratio underscores the fact that an income gap between the races exists and needs to be addressed.
The next target is to level the salary median ratio between Bumiputeras, Chinese and Indians, which stands at 0.9:1:1.
In 2016, there was an income gap between Bumiputeras and Chinese at a ratio of 0:74:1, while the ratio between Indians and Chinese was 0.81:1.
The seventh target is to achieve a per capita financial asset ratio of 0.6:1 for Bumiputeras and Chinese, with the ratio for Indians and Chinese at 0.8:1.
This is to address the income gap between Bumiputeras and Chinese at a ratio of 0.5:1, and Indians and Chinese at a ratio of 0.7:1.
The eighth target is to ensure the contribution of Compensation of Employees (CE) to GDP reaches 48 per cent, which is the rate in high-income nations.
Last year, the CE contributed 35.7 per cent to the GDP, which showed that the nation’s wealth was not distributed well among employees and capital owners.
Inter-state development disparities are given focus in the ninth target by targeting a regional development ratio based on per capita GDP measured in comparison with the central region.
The ratio for the northern region is targeted at 1.6 (2.1 in 2020); east coast at 2.0 (2.7 in 2020); central region at 1.0 (1.0 in 2020); southern region at 1.5 (1.7 in 2020); Sabah at 1.5 (2.6 in 2020); and Sarawak at 1.2 (1.3 in 2020).
The final target is to ensure Malaysia achieves a Gini coefficient of 0.34. This is in line with Shared Prosperity Vision 2030’s efforts that emphasise reducing the gap between high and low-income groups.
These 10 targets will strengthen the monitoring of the outcomes that will then serve as the basis for the government’s initiatives.