RMK13: A bold vision that demands bold execution, says Pikom

• Execution, fiscal discipline, and talent retention remain critical risks
• RMK13 positions Malaysia as a regional tech and green economy hub

The 13th Malaysia Plan (RMK13), 2026–2030, unveiled recently under the theme “Redefining Development”, represents a transformative shift in Malaysia’s approach to nation-building—anchored in tech-driven growth, inclusive prosperity, and environmental sustainability.

A caveat is that the latest US tariff of 19% was only announced days after RMK13’s release, lower than the earlier proposed 25%. Hopefully, buffers were factored into the plan before this final announcement. From an actuarial perspective, scenario analysis of varying tariff levels and contingency measures must be embedded in the five-year strategy.

While RMK13 highlights major opportunities, the execution phase will determine its success.

Opportunities in RMK13

1. Positioning Malaysia in the Global Tech Ecosystem

• Semiconductors & AI: With targeted exports of US$214 billion (RM1 trillion), the National AI Office, and partnerships with global leaders such as ARM and Intel, Malaysia is poised to become a regional tech hub.
• MyDigital ID & National Data Bank: Potential game-changers for digital governance and public sector efficiency.
• The digital economy’s contribution to GDP is targeted to hit 25% by end-2025.

[RM1 = US$0.22]

2. Green Economy & Sustainability

• NETR & ETS: Commitment to 35% renewable energy, carbon markets, and hydrogen hubs.
• Circular & Blue Economy: Eco-tourism in Sabah/Sarawak and waste-to-energy projects could generate rural income and jobs.

3. Industrial Rejuvenation via NIMP 2030

• High-value sectors—rare earths, semiconductors, biotech—can revive industrial competitiveness.
• TVET reforms targeting 700,000 jobs in manufacturing and 500,000 in the digital economy aim to tackle unemployment and underemployment.

4. Inclusive Growth & Social Reform

• Strong focus on Madani values, gender equity (60% female labour participation), elderly and OKU inclusion, and direct aid (STR/SARA).
• Progressive wage policy and 500,000 affordable housing units address cost-of-living pressures.

5. Global Integration & Investment

• KL20 Initiative and Johor–Singapore SEZ as key investor magnets.
• Strategic alignment through BRICS/OIC partnerships and the ASEAN Power Grid.

Challenges to Realisation

1. Execution & Bureaucratic Inefficiencies

• Past under-delivery of mega-projects raises doubts over implementation capacity.
• Civil service digital readiness remains uneven.
• Political stability is critical.

2. Fiscal Constraints

• With RM611 billion in planned spending and a deficit target below 3%, balancing investment and debt will be challenging.
• Malaysia’s external debt rose to RM1,375.3 billion in Q1 2025 (from RM1,350.2 billion in Q4 2024), its highest level on record.

3. Talent & Brain Drain

• Attracting and retaining skilled workers in semiconductors, AI, and green tech is an ongoing challenge.
• Weak STEM outcomes and TVET perception gaps risk misalignment between workforce supply and industry demand.
• Brain drain continues as Malaysian talent migrates to regional economies.

4. Geopolitical & Market Risks

• Heavy reliance on E&E exports and rare earths leaves Malaysia exposed to global volatility.
• BRICS/OIC trade expansion offers opportunities, but intensifying fragmentation (tech decoupling, protectionism, US tariffs) could disrupt supply chains.

5. Environmental–Economic Trade-offs

• Energy transition targets may face resistance from fossil fuel industries and entrenched interests.
• Carbon market enforcement and green regulations could compromise short-term competitiveness, jobs, and income.

A Defining Crossroads

RMK13 is arguably Malaysia’s most future-focused plan yet—aligning economic ambition with digital transformation underpinned by AI and 5G. But high-level intent must translate into practical delivery.

Pikom chairman Alex Liew (pic) welcomes the vision with measured optimism, “Pikom applauds the government’s commitment to building a future-ready digital ecosystem that accelerates AI and 5G adoption, empowering businesses and communities alike.”

However, he cautions, “Visionary planning alone is not enough. Execution and robust monitoring are critical. Inclusivity must remain central, ensuring equitable benefits across all demographics. GovTech must involve quadruple helix collaboration—government, industry, academia, and civil society as co-creators of public digital services.”

This reinforces a key truth: infrastructure alone is insufficient. Bridging gaps in digital literacy, fostering public-private partnerships, and ensuring interoperability are equally essential.

If RMK13 is to build national resilience and inclusivity by 2030, the pivot must be from planning to execution—with clear metrics, transparency, and participatory governance leaving nothing to chance.