Economy Plans & Policies
10th Malaysia Plan 2011 – 2015
The Government's 10th Malaysia Plan (10MP) sets a robust development allocation to the tune of RM230b (the same amount was previously allocated for 9MP). Predictions pinpoint the services and manufacturing sectors as the main drivers of economic growth with a targeted growth rate of 6.0% per annum in 2011-15 vs. 4.2% per annum in 2006-2011. The 10MP will move in tandem with the New Economic Model's plan to achieve higher per capita income. Gross national income per capita is targeted to increase to RM38,850 or US$12,140 by 2015.
Two strategic components from the 10MP will positively impact the real estate sector:
Government efforts to foster closer public-private relationship will be intensified with private sector participation amongst the 52 projects worth RM62.7b, led by government-linked companies (GLCs). With major infrastructure and development projects that include construction of new highways, logistics and manufacturing plants, the key themes of the PPP initiative center around:
- Improvement of basic infrastructure
- Upgrading of public transportation in Greater KL.
Development of Greater Kuala Lumpur
Greater Kuala Lumpur encompasses 279,327ha of key districts such Kuala Lumpur, Putrajaya, Ampang Jaya, Petaling Jaya, Subang Jaya, Shah Alam and Kajang. Urban renewal projects within the area are likely to push up property values in the city centre fringe areas. Surrounding areas also stand to gain in value appreciation. Positive spillover effects include improvements in the building standards of properties, amenities and accessibility.