The journey towards formulating the NIMP 2030 is underscored by the need to build a robust industrial sector as an important prerequisite to achieving socioeconomic prosperity. Compared to IMP 3.0, the NIMP 2030 shifts from a sectoral-based approach to a Mission-based approach.
On the thrust of 4 Missions and enhancement by Enablers, a total of 21 Strategies and 62 Actions Plans will be executed. These missions are supported by 4 key Enablers which are (i) Mobilise financing ecosystem; (ii) Foster talent development and attraction; (iii) Strengthen best-in-class investor journey for ease of doing business; and (iv) Introduce whole-of-nation governance framework.
With NIMP 2030 as a catalyst, manufacturing is expected to record a CAGR of +6.5% between 2022-2030 (2015-2019 CAGR: +4.8%), reaching RM587.5b contribution to total GDP in 2030. It is also set to drive employment up by +2.3% annually on average between 2022-2030, creating a total of 3.3m new jobs or 20% increase in employment by 2030.
NIMP 2030 recognises that the roadmap toward a high-income nation relies on acquiring and applying productive knowledge to develop sophisticated industries and output while at the same time ensuring sustainable growth.
MIDF calls the new National Industrial Master Plans as a paradigm shift from ‘who’ to ‘what’. Previously, IMP 3.0 took a Sectoral-based approach (‘who’) which focused on the vertical action plans of individual sectors. Now, the NIMP 2030 is shifting to a Mission-based approach (‘what’) which outlines the targeted and focused horizontal action plans across the sectors.
The utmost emphasis it said, is on raising economic complexity. The first mission of the NIMP 2030 is to increase economic
complexity which is to encourage innovation and production of more sophisticated high-value-added products. This effort
encompasses the creation of a robust domestic ecosystem that promotes RDCI activities. Higher economic complexity will
heighten the competitiveness of Malaysia in the global market.
Higher competitiveness could engender a positive impact on equity valuation. The emphasis on raising economic complexity is of long-term strategic importance to the nation’s well-being. Tying it to the financial market, this mission could help to improve Malaysia’s overall return profile which would naturally drive market valuation higher in the long term. In gist, the positive impact on equity market may manifest albeit over an extended period.
However, in the short term, the announcement of NIMP 2030 is not expected to spur significant buying (or selling) reactions in the equity market and expects the immediate market undertone shall continue to be dominated by the monetary action of the US Fed.
