Proffessor Geoffrey Williams
The economist cautions that while the RM430b plan offers stability and social focus, its unambitious reforms risk failing to tackle inequality, low incomes, and productivity gaps.
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, Aug 25 – Malaysia’s 13th Malaysia Plan (RMK13), launched this month as the country’s development roadmap until 2030, sets out RM430 billion in spending under the banner of Ekonomi MADANI. While the government hails it as a balanced strategy to strengthen resilience and inclusivity, economist Prof Geoffrey Williams sees it as cautious, modest — and lacking the bold reforms Malaysia urgently needs.
“The 13MP is rather low key compared to some of the earlier plans. The launch was somewhat overshadowed by the announcement of the US tariff negotiations,” Prof Williams told TNS News. “Many of the key themes have been welcomed with little enthusiasm by experts especially in health and education and seem unambitious. Perhaps this is a lesson learned from previous plans which promised a great deal but delivered very little.”
RM430 Billion Framework
At the heart of RMK13 is a RM430 billion development expenditure, roughly RM86 billion annually, to be supported by RM120 billion from government-linked investment companies (GLICs) and RM60 billion via public-private partnerships (PPPs).
“Actually the amount of investment is in line with normal government Development Expenditure around RM86 billion per year. The GLIC and GLC contribution of RM120 billion is similar to the GEAR-up programme and the PPP estimates of RM60 billion or RM12 billion per year are about the same as we see now,” Prof Williams explained.
He warned, however, that execution remains the critical test. “Unfortunately these look like patronage cascades but fortunately there is a clear commitment to put most projects to competitive tender as far as possible and this should help them be more efficient and avoid wastage, leakages and corruption.”
Inequality, Productivity and Social Concerns
RMK13 is positioned around Ekonomi MADANI values, aiming to strengthen social protection and inclusivity. Yet Williams believes the structural challenges of inequality and productivity are not meaningfully addressed.
“It doesn’t really address inequality issues, this will require redistribution policies. Nor will it raise productivity but then this is not an issue the government can effectively tackle because this is a market driven issue for businesses,” he said.
On social investments, he acknowledged a shift in focus. “There is more of a social focus than is usual in MPs especially in health, education and social protection such as pensions. However the plans are unambitious and not truly transformative.”
“Overall it is conservative and safe but will not address pressing concerns such as structurally low-income jobs, underemployment, pensions inadequacy, student debt and healthcare deficiencies which are at the core of people’s concerns.”
ESG and Green Economy
A major feature of RMK13 is its emphasis on environmental, social and governance (ESG) priorities, alongside digitalisation and AI. Williams remains unconvinced of the government’s role in driving these sectors.
“The emphasis on digital, AI, green economy and so on are predictably agenda driven but actually the role of the government in these areas is misplaced because these are all better driven by the market,” he noted.
Lessons from Past Plans
When asked what lessons could be drawn from past Malaysia Plans, Williams was cautious.
“It is difficult to point to reforms that worked well from past MPs and that can be used as lessons for success because objective and independent performance metrics are very scarce and full impact analyses are not available.”
He added: “Often we see poor implementation and wastage only in the Auditor General reports after the fact. There was an attempt to do this under the Performance Management and Delivery Unit (Pemandu) but somehow this fell by the wayside and became a consultancy company. Without proper ongoing and post-implementation assessments we cannot evaluate the impact of former Malaysia Plans and will not be able to judge RMK13. So proper ongoing monitoring will be essential.”
Looking Ahead to 2030
For Prof Williams, the real success of RMK13 will only be measurable in the years to come.
“RMK13 would be successful if direct links can be made from the policy framework itself to actual economic development, improvements in incomes and an overall rise in living standards for millions of people not just a few select groups.”
Background: The 13th Malaysia Plan
RMK13 is Malaysia’s latest five-year development plan, charting the nation’s economic and social strategies until 2030. Launched in August 2025, it emphasises Ekonomi MADANI, introduced by Prime Minister Datuk Seri Anwar Ibrahim, which promotes sustainability, inclusivity, and resilience. RMK13 also comes against the backdrop of heightened global uncertainty, including escalating U.S. tariff measures that could reshape trade flows for Malaysia and ASEAN.
About Prof Geoffrey Williams
Prof Geoffrey Williams is an economist and founder of Williams Business Consultancy Sdn Bhd. Based in Kuala Lumpur, he has worked in higher education, policy, and corporate advisory roles for more than two decades. Known for his independent and critical perspectives, he is a frequent commentator on economic policy, governance, and sustainable development in Malaysia and across the region.
- TNS NEWS