Including increased infrastructure spending and a carbon tax commitment under climate change targets.

As the country looks to move out of the coronavirus crisis-fuelled slump, the Prime Minister said at the launch of the 12th Malaysia Plan in parliament that the financial position was due to improve in 2023, with yearly growth of 4.5%-5.5% predicted in the next five years.

Malaysia posted average annual growth of 2.7% between 2016 and 2020, weighed by a 5.6% contraction in 2020 due to the outbreak of the pandemic, the PM added.

In addition, gross national income per capita increased to 42,500 ringgit ($10,150) last year, around 20% less than the required level to become a high-income country, Reuters reports. Malaysia predicts reaching this goal by 2025, according to Ismail Sabri.

"The 12th Malaysia Plan is a comprehensive development plan that will introduce a number of reforms to ensure sustainable economic growth and more equal distribution of opportunities and results," the Prime Minister said.

Malaysia’s central bank lowered its full-year growth forecast to 3.0%-4.0% from 6-7.5% last month, the second reduction this year.

The government is due to spend 400 billion ringgit ($95.53 billion) on current and new development projects between now and 2025, compared to 260 billion ringgit in the 11th Malaysia plan.

These projects include new rail networks and highways connecting rural areas with urban and industrial hubs, more affordable housing and improvements to health and education.

The Prime Minister also said that Malaysia plans to become a carbon neutral country by 2050, with the implementation of carbon pricing and a carbon tax. The government also vowed to increase efforts to reduce greenhouse gas emissions intensity of GDP by 45% in 2030.