The 2006-2010 Ninth Malaysia Plan is the first since Prime Minister Abdullah Ahmad Badawi came to power in 2003 and closes the door on an era of ambitious mega-projects under former premier Mahathir Mohamad.

"The quality of life enjoyed by Malaysians has improved. Nevertheless great disparities in income and wealth still exist, especially between ethnic groups and between rural and urban areas," Abdullah told parliament.

"Malaysia must overcome these myriad challenges astutely and effectively ... we have no time to lose," he said as he released the plan.

The blueprint which focuses on rural development, education and stimulating economic growth, is to be rolled out at a cost of 200 billion ringgit (54 billion dollars), compared to 170 billion ringgit for the previous plan.

At the midway point on Malaysia's path to achieving developed nation status by 2020, it targets economic growth of 6.0 percent over the next five years, and 6.5 percent from 2011 to 2020.

Sucessive five-year economic plans have tried to bridge the wealth gap between urban and rural areas but the government has acknowledged that the divide has only become wider.