Calculation of Shared Prosperity Vision 2030 GDP target wrong, says Najib

Former prime minister Najib Razak says a fundamental mathematical calculation is wrong in this Shared Prosperity Vision 2030 booklet.

PETALING JAYA: Former prime minister Najib Razak has taken to task the government over what he says is a mathematical mistake in Putrajaya’s calculation of gross domestic product (GDP) figures.

In a Facebook post, Najib, who is also a former finance minister, commented on the government’s GDP growth estimate to achieve a RM3.4 trillion GDP in 2030 — one of its key targets of the Shared Prosperity Vision 2030 (SPV 2030) road map.

In the SPV 2030 booklet, it states that the aim is to achieve an RM3.4 trillion GDP in 2030, with an average growth rate of 4.7% per annum between 2021 and 2030.

But Najib says this 4.7% figure is inaccurate.

“I do not know which school’s mathematics this Pakatan Harapan minister is using to calculate the SPV 2030 targets.”

Najib said to hit the RM3.4 trillion mark between 2018, when the GDP stood at RM1.45 trillion, and 2030, the country needs to achieve an average growth rate of 7.36%, not 4.7%.

“At 4.7% per year, the GDP will only reach RM2.53 trillion by 2030. It will not reach the target of RM3.4 trillion.

“How can such a big mistake for an important policy occur?”

He said if the estimate on the key target was wrong, then SPV 2030 had already failed before it could start.

“You have a big event to announce a 10-year policy, invite journalists and make a mathematical mistake like this?”

Najib said he was not the only one who had noticed the error, noting that Malaysian Institute of Economic Research chairman Kamal Salih was also reported to have said that the GDP growth rate has to be between 6% and 8% to meet the SPV 2030 target and not 4% to 5%.

The objectives of the SPV 2030, launched by Prime Minister Dr Mahathir Mohamad today, are to ensure development for all, address wealth and income disparities and build a united, prosperous and dignified nation.

The SPV 2030 was developed by the economic affairs ministry and Institut Masa Depan Negara.