Abstract

Economic Transformation Programme (ETP) was launched in 2010 to elevate the Malaysianeconomy from middle-income classification to high-income. The key in keeping ETP’sdelivery on schedule lies in its KPI-centric result delivery. There is extensive use of data andindicators in this KPI-centric approach of result delivery. Four major elements of ETP deliveryare collaboration, implementation, accountability and transparency. KPI-setting processpromoted collaboration between implementing ministries, PEMANDU, and private sector.The KPIs set guide ministries towards timely implementation. Every implementing party

Economic Transformation Programme: KPI-Centric Approach of Result Delivery

0

The KPIs set guide ministries towards timely implementation. Every implementing partyinvolved in ETP is held accountable through an annual external agreed-upon-procedureexercise on reported KPIs at the end of the year. Finally, ETP outcomes are madetransparent to the public via annual reports.

Ku Kok PengDirector, ETP Investment and Palm Oil & Rubber NKEAEconomic Transformation Programme (ETP)Performance Management and Delivery Unit (PEMANDU)Prime Minister�’s DepartmentPerdana Putra Building62502 Putrajaya

Understanding Progress Through Data & IndicatorsMyStats 2013

1

18 November 2013

Ku Kok PengDirector, ETP Investment and Palm Oil & Rubber NKEA

MyStats 2013

A Collaboration

B Implementation

Four Key Elements Underpin KPI-centric Delivery Structure

2

C Accountability

D Transparency

Gross National

Income (GNI)

GNI

USD523bPer Capita USD15,000

6% GDP growth per annum

ETP’s TRUE NORTH

INVESTMENT

3.3 millionADDITIONAL

JOBS

INVESTMENT

USD444b92% Private

8% Public

73% DDIs

27% FDIs

FOCUS DRIVERS12 NKEAs • 131 EPPs • 60 BOsTRANSFORMATIONAL

ACTIONS

COMPETITIVENESSENABLERS

51 Policy Measures

6 SRIs & Natural Homes

NKEA: We ran 1,000-person workshop where 12 NKEAs were selected

EPP: Specific labs for all NKEAs

June – July 2010

1,000+ movers and shakers (CEO & top leaders) from 200+ MNCs, GLCs, SMEs, & Ministries & Govt agencies selected which sectors to become NKEA

May 2010

1

2

Collaboration: Government , Private Sector Co-Create ETPA

4

June – July 2010500+ members lab from 210 companies, 13 NGOs, & 32 government agencies produced the Entry Point Projects (EPPs)

KPI: Each EPP’s progress is rigorously tracked3

Delivery of EPP will must go through the phases of KPI setting, review, validation and ultimately, publication in Annual Reports

KPI Setting KPI Delivery KPI Review KPI Validation

Annual Report

KPI are set at ministerial level after consultations and meetings with stakeholders

KPI Setting KPI Delivery KPI Review KPI Validation

Annual Report

Implementation: ETP Governance Structure To Ensure KPI Delivery

B

5

All EPPs will have their KPI achievements

reviewed weekly, mont

hly and annually

Accountability: External ValidationC

GTP & ETP Results Endorsed by International Panel

Accountability Is Major Part Of The GTP & ETP Implementation Process

KPI Setting KPI Delivery KPI ReviewKPI Validation

Annual Report

AUP PARTNER

We have independent external assessor to validate the KPI delivery as true and fair

DR ALEX MOURMOURA

SIMF APAC

DivisionChief

HKYONGAdvisor

CommonwealthSecretariat

OMBENI SEFUE

Tanzanian Government

Chief Secretary

DR YUKONHUANG

Carnegie Asia Program Senior

Associate

DR RAVIBALAKRISHNA

NIMF APACResident

Representative

ANDREWLEE

Western AUS Govt Strategy,

Policy and Governance

MICHAELHERSHMANFairfax GroupPresident and

CEO

STEPHEN SEDGWICKAustralian

Public ServiceCommissioner

SIR MICHAELBARBER

IMF Institute European

Division Chief

MICHAELTHATCHER

Microsoft Asia Pacific

CTO

Malaysia: The Economic Transformation Program

(November 2012) by Prof Diego Comin & Ku Kok Peng

Tying Performance Management to Service Delivery:

Public Sector Reform in Malaysia, 2009-2011 (July 2011)

By Deepa Iyer

ETP, GTP Case Studies By Ivy League Institutions

Transparency: Annual ReportsD

KPI Setting KPI Delivery KPI ReviewKPI Validation

Annual Report

Annual Report Is The Opportunity For The Public To Assess GTP & ETP Impact

77

KPIMET

2011

123%

2012

118%

2013

66%

1H2013

Overall NKEA RESULTS

Oil , Gas &

Energy

Healthcare Electrical &

Electronics

Education Communications Content & Infra

Tourism

Greater

Kuala Lumpur

Financial

Services

Business

Services

Agriculture Wholesale &

Retail

Palm Oil &

Rubber

BENCHMARKINGBENCHMARKING

8,372

9,733 9,990

GNI per capitaON THE RISE

Source: Department of Statistics, BNM

201220112010

253.9 282.8

Gross National Income

NKEA Non-NKEA

RM862.6bRM905.2b

4,666.104,813.50 4,819.30

Employment

NKEA Non-NKEA

11,899.512,284.4

12,723.2

NKEA 69% of GNI, 670k new jobs IN 2 YEARS

605.2 621.0

2011 2012

70.5% 68.7%

7,233.40 7,470.90 7,903.90

4,666.10

2010 2011 2012

60.8% 60.8%62.1%

Source: Department of Statistics

Investment TrackingCommitted & Realised Investment Data Are CollectedDirectly From The Investors

20

25

30

35

CommittedRM (bil)

86%

16.64

29.61

Source: PEMANDU, data provisional only and subject to revision

0

5

10

15

2011 2012 2011 + 2012

Committed

Realised

RM (bil)

84%88%

13.98

11.44

25.41

16.64

12.99

20

25

30

CommittedRM (bil)

21.58

24.90

22.09

Investment TrackingPlanned Investment Indicates Future Pipeline

13

0

5

10

15

2013 (1H) 2014 2015

RealisedRM (bil)

44.2%

9.54

Source: PEMANDU, data provisional only and subject to revision

Corroborative DataExternal Statistics Corroborates Shift In Investment Trend

100

120

140

160

180

111.3

148.9

137.0

104.9 105.6

154.6

162.4

97.4

2013 1H Approved

Investment: 65.8% Of

10MP Annual Target

14

0

20

40

60

80

2006 2007 2008 2009 2010 2011 2012 2013 (H1)

2012 (H1)

Approved InvestmentSource: MIDA

75.0

65.8

%

Target Actual NKEA share

In RM billion

9.3%86b

94b

140.2b

127.9b

128.8b

148.4b9.6%

9M 2013: 87% of

target

achieved

NKEASHARE

Corroborative DataExternal Statistics Corroborates Shift In Investment Trend

15

2011 2012 2013

128.8b (9M)

Source: Department of Statistics 2013

Actual investment figures are based on SNA 2008 after the rebasing exercise conducted in

2012

NKEASHARE

RM68.2b

SHARE

RM85.7b

(72.6%)

(61.4%)

20

25

30

35

17.3

22.3

28.7(% of GDP)

Total Investment

Share of Private Investment HIGHEST IN 8 YEARS

0

5

10

15

20

2005 2006 2007 2008 2009 2010 2011 2012 9M 2013

17.3

12.2

10.1 11.4

Source: Department of Statistics 2013, GDP at constant prices

Private Investment

Public Investment

116.9

95.8

69.6

86.779.1

Private Investment (RM billion)

BNM FORECAST FOR 2013:

15.6%

Private Investment ACCELERATED post-ETP

17

2012201120102006 2008

ETP

Source: Department of Statistics, Private Investment in Constant 2005

Prices

BEFORE ETP

52% 54% 57% 58% 61%

Private Investment Public Investment

Private – Public InvestmentW I D E N I N G

Source: Department of Statistics, GDP at constant prices

42%43%34%

46%48%

1H 201320122009 20112010

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