Madani Economics

A Deep-Dive Into the 13th Malaysia Plan (2026–2030)

James Chai

• Publisher: ISEAS Publishing
• Year: 2026
• Topic: Economics
• eBook ISBN:
  9789815361681
• Subtopic: Economic Policy
• Index: Economics

•Malaysia Plans are five-year national development plans that have been guiding Malaysia's economic and social policy since 1956. The 13th Malaysia Plan (13MP, 2026–2030) ("13MP") is the latest in this series. It is structurally different from the previous Malaysia Plans, totalling only 211 pages compared with the average of 458 pages from the past three editions. The 13MP also saw high direct involvement from civil servants with little direct external help.

•The 13MP is the first official document to operationalize the Madani economic vision under Prime Minister Anwar Ibrahim. The Madani framework, rooted in maqasid al-shariah and articulated in the Ekonomi Madani document, is translated in the 13MP into the policy triplet of economic growth ("raising the roof"), social protection ("raising the floor") and governance, albeit this has no direct connection to the Madani foundational texts, principles or prescribed policies.

•13MP shows the lowest share of "Economic Affairs" initiatives among the four recent Malaysia Plans, reflecting more diversified attention being paid to social protection, state capability, and governance. Malaysia Plans primarily guide development expenditure allocations.

•Within "Economic Affairs", the 13MP makes targeted sectoral bets on energy transition (20 per cent) and communications and digital economy (14 per cent); these are informed by Malaysia's fiscal constraints of declining oil revenue and subsidy commitments, requiring the country to double down on electronics manufacturing and attracting foreign direct investments in technology and renewables. This departs from previous Malaysia Plans, which rarely named specific sectors or picked winners.

•13MP introduces the most institutionalized governance framework since 10MP by leveraging existing high-profile forums; for example, the cabinet and the National Economic Action Council. Structural implementation challenges, including asynchronous planning and budget cycles, erosion of the Ministry of Economy's authority, and civil service capability gaps have not been fully addressed.

Table of contents

• Foreword
• Executive Summary
• Madani Economics: A Deep-Dive into the 13th Malaysia Plan (2026–2030)
• APPENDIX A: List of Consequential Policies (non-exhaustive)
• APPENDIX B: Classification of the Functions of Government (COFOG) and Sub-Items for Economic Affairs
• APPENDIX C: Official Instruments on the Madani Doctrine (non-exhaustive)
• APPENDIX D: National Blueprints Launched by the Madani Government (~2022–present) Before 13MP (non-exhaustive)
• APPENDIX E: Calculation of State Capability by “Years to Singapore” Using Pritchett et al. (2010)
• References