The Economic Impact of the Economic Transformation Plan (ETP) On Malaysian Economy by the Year 2020: An Input-Output Analysis

Abstract

Since independence, Malaysia has gradually built a robust and resilient economy, which has sustained strong economic growth. We have almost eradicated hardcore poverty, and at the same time, have been able to provide the society near universal access to basic health, education, communications and other public services. As a result, the quality of life for the vast majority of Malaysians has improved. However, achieving our bold aspirations of Vision 2020, by the year 2020, will be challenging. Despite the resilient economic condition, Malaysia still belongs to the middle-income group. In order to join the high-income nations, Malaysia needs to transform economically. This government is committed in pursuing this strategy to achieve high-income status. We have embarked on an Economic Transformation Programme (ETP) to propel our economy to 2020. The ETP builds upon the policy directions, strategies and programmes of the 10th Malaysia Plan incorporated in the New Economic Policy. In this ETP strategy programmes have laid out the long-term budget in order to achieve the vision 2020 objectives. Using these figures, this study has forecasted the expected economic impact on Malaysia in the year 2020 using the input-output analysis technique. The results of the study reveal that, by year 2020 Malaysia is expected to produce a total output estimated at RM1,603 billion, increase the total household income to RM 138.365 billion, and create 9.784 million employments for the Malaysian.

 

Keyword: Economic transformation programme, economic impact, inputoutput analysis.