Planning Horizon

Development planning in Malaysia consists of three levels that covers the long-, medium- and short-term as follows:

Long-Term Planning

  • New Economi Model, 2011-2020
  • Third Outline Perspective Plan (OPP3), 2001-2010
  • Vision 2020, 1991-2020
  • Second Outline Perspective Plan (OPP2), 1991-2000
  • First Outline Perspective Plan (OPP1), 1971-1990

The long-term plans set the comprehensive thrusts and strategies to achieve the targets under the long-term national development agenda.

Medium-Term Planning

  • Five-year development plans, such as the Eleventh Malaysia Plan (11MP), 2016-2020
  • Mid-Term Reviews (MTR) of the five-year development plans

Medium-term planning covers five years based upon the framework set by the OPP. It is the main document for the implementation of the Government’s development programmes. The five-year development plans set the economic growth targets as well as the allocation ceiling for the public sector development program. In addition, it also outlines the role of the private sector.

The Mid-Term Reviews (MTR) are implemented in the middle of the five-year plans. The MTR aims to review the performance of macroeconomic and sectoral policy plans for the first two years of the Plan as well as to realign strategies to achieve the revised targets, if necessary. Under the Tenth Malaysia Plan, the two-year rolling plan approch was introduced to enable a more effective review of the prioritisation of programmes and projects based on the current financial position of the Government.

Short-Term planning

  • Annual Budget

Short-term planning is in the form of the Annual Budgets prepared by the Ministry of Finance. The annual implementation of policies and strategies are aligned with the medium- and long-term plans. The annual budget preparation takes into account the views of all stakeholders including the private sector and non-governmental organizations through the budget dialogues. The annual development allocation is provided based on the list of development programmes and projects approved under the two-year rolling plan.

Overall, the national development planning horizon can be shown as in the exhibit below.