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Malaysia's Transformation
Programme & Reform Initiatives: A Critical Assessment
By YB Senator Dato’ Sri Idris Jala
Minister in the Prime Minister’s Department and
CEO of Performance Management and Delivery Unit (PEMANDU)
NEW ECONOMIC MODEL:Making Us A Rich Country, For Everyone &For A Long Time
High-Income
Inclusiveness Sustainability
Target USD 15,000 GNI per capita by 2020
Enables all communities to
benefit from the wealth of
the country
Meets present needs without compromising future generations
Quality of Life
2020 GNI
Target
2009 GNI
Malaysia’s target of
becoming a
high income
nation by 2020
Nominal GNI (USD)
USD 15,000
USD 6,700
SRIsSRIs
&
To become aHigh-Income Nation, We Need:
We need “Drivers” to ensure focus on
high-impact areas
FOCUS
NKEAs + NKRAs
We Need “Enablers” To Ensure
Competitiveness
COMPETITIVENESS
Strategic Reform Initiatives National Key Economic AreasNational Key Result Areas
SRIsSRIs
& FOCUS
NKRAs + NKEAs
We Need “Enablers” To Ensure
Competitiveness
COMPETITIVENESS
Strategic Reform Initiatives National Key Result AreasNational Key Economic Areas
To become aHigh-Income Nation, We Need:
We need “Drivers” to ensure focus on
high-impact areas
SRIs Provide The Enablers For Malaysia To Be Competitive
37Grouped In SIX
Clusters ForExecution
14With Natural HomesWithin The NKEAs /
NKRAs51
Policy Measures
Competition, Standards and Liberalisation
Public Service Delivery
Human Capital Development
Public Finance
Government’s Role in
Business
Narrowing Disparities
1 2
3 4
5 6
SRI: Competition, Standards & Liberalisation
Competition ActEnforced on 1 January 2012
Remove Anti-Competitive Agreements
Remove Abuse Of A Dominant Position
X
SRI: Competition, Standards & Liberalisation
LiberalisationOf Sub-Sectors
Up to 100% foreign equity participation will be allowed
17 sub-sectors announced in Budget 2012 for liberalisation
9 sectors fully liberalised1. Accounting/Taxation Services2. Courier Services3. Departmental & Specialty Services4. Incineration Services5. Private Hospital Services6. Skills Training Services7. Telecommunications: Applications
Services Provider (ASP) 8. Technical & Vocational Schools9. Technical & Vocational Schools (for
students with special needs
SRI: Public Service Delivery
761licences
386 licenses to be eliminated or simplified this year
Estimated reduction of RM729 million in business license compliance cost
375licences-52%
Approval of
Construction Permits now
within 100 days(previously 260 days)
22steps
10steps
SRI: Public Service Delivery
92 Police Stations in Selangor,
Will be extended Nationwide
SRI: Public Service Delivery
Real Time Performance
Monitoring
Option 2:Send SMS to 15888
Option 1: Counter Rating
SRI: Public Service Delivery
Results: Real Time Performance
Monitoring
86.8%Very Satisfied
12.9%Satisfied 0.2%
Unsatisfied
0.1%Very
Unsatisfied
Total ratings: 13,812 (January 2012)
Four areas where Government should be in business
Private Investor needs Co-InvestorsPPP e.g. Corridor Development projects
Business must be owned domesticallyNational security e.g. Defence / Paddy
Large growth capital, catalytic or new technology requiredProjects with long gestation periods e.g. nanotechnology
National InfrastructureE.g. MRT
TotalTarget
2011-2012Completed
2011Balance
Target 2012Target 2013
Pare Down 5 5 0 5 0
List 7 6 5 1 1
Outright Sale 21 14 6 8 7
TOTAL 33 25 11 14 8
SRI: Government’s Role in Business
Government’s Role in Business
Companies that have been divested:
Under FELDA (via IPO)• MSM Co Ltd• FGV Perlis Sdn Bhd• Kilang Gula Felda Perlis Sdn Bhd• MSM Properties• Astakonas Sdn Bhd
Under Khazanah(via divestment/ outright sale)• PLUS• POS Malaysia• EON Cap• Proton
Under MoF Inc (via divestment/ outright sale)• KLIA Consultancy• Irat Hotels
Under LTAT (via divestment/ outright sale)• Bousted Sissons
SRIsSRI
& FOCUS
We Need “Enablers” To Ensure
Competitiveness
COMPETITIVENESS
Strategic Reform Initiatives National Key Economic AreasNational Key Result Areas
NKEAs + NKRAs
We need “Drivers” to ensure focus on
high-impact areas
To become aHigh-Income Nation, We Need:
USD 188 bil
USD 523 bil
USD billions
Nominal GNI
USD 112 bil
2020 GNI
Target
Entry Point
Projects
(EPPs)
Growth in
other
sectors
USD 138 bil
2009 GNI Business
Opportunities
(BOs)
11 Sector NKEAs
1 2
USD 86 bil
3
2020 GNI
per capita:
USD 15,000
CAGR
~6%
Entry Point Projects (EPPs) and Business Opportunities (BOs) will
add to the growth in other sectors to achieve 2020 GNI target
Source: NKEA Labs
First year ETP results are
equivalent to a vertical takeoff
CommsContent &
Infra
11 Economic Sectors
+
Greater
Kuala Lumpur
Wholesale& Retail
Oil, Gas & Energy
Palm Oil Healthcare
FinancialServices
Greater KL/Klang
Valley
Agriculture
Tourism
Education Electrical& Electronics
BusinessServices
141%
108%
118%
120%
151% 101% 109% 138%
119% 170% 98% 103%
123%
Corridors
& Cities
lab
256Projects
Identified
RM 161 billion GNIin 2020
18
579,808 Jobsin 2020
~RM 418 billion Investments(89% private)
90%NKEA Business
Opportunities
Converted
into EPPs
10%New
EPPs
19
Impact of
Transformation on
the Malaysian
Economy…..
Source: Department of Statistics, Ministry of Finance
100%
Target = RM797 billion
Target = RM86 billion
Target = 330,000
Jobs Committed
GNI Private Investment
JobsCommitted
RM830 bil(104%)
RM94 bil(109%)
313,741 Jobs
(95%)
2011 Results Benchmarked Against Targets
Source: ETP Update 1-8
2011 GDP Growth: 5.1%2011 GNI per capita: $9,500Note: 2009 GNI per capita: $6,700
Source: Department of StatisticsProjections: PEMANDU team Analysis
2009
On track to achieve GNI target for 2020
2010 2011
$15,000
$6,700
$7,455
$8,200
$8,100
$9,500
2020
$15,000
21%
17%
2018
Private Investment, Trade Grew Strongly in 2011
RM32.9bFY 2011
12.3%
RM29.3bFY 2010
FDI
Source: Department of Statistics
Trade
Source: MITI
RM1.27 trilFY 2011
RM1.17 trilFY 2010
RM94 bFY 2011
RM78.7bFY 2010
Private
Investment
Source: Department of Statistics
19.4% 8.7%
Note: Figures in Current Prices
SRIsSRI
& FOCUS
We Need “Enablers” To Ensure
Competitiveness
COMPETITIVENESS
Strategic Reform Initiatives National Key Result AreasNational Key Economic Areas
NKEAs + NKRAs
We need “Drivers” to ensure focus on
high-impact areas
To become aHigh-Income Nation, We Need:
NKRA Overall Performance
Urban Public Transport
Crime
Rural Basic Infrastructure
Education
Low Income Household
Corruption
NKPIs 2010
107%
Overall Composite Scoring 121%
79%
121%
156%
91%
168%
108%
130%
123%
187%
103%
133%
131%
2011
GTP Continued to deliver in Year 2 (2011)
Direct impact of GTP Benefited ~10.15 million (36%) Malaysians (2010 & 2011)
NKRA Est. Rakyat benefited from GTP
Description
UPT 2,813,321 2.4 million additional LRT ridership 370,000 taken the BET 44,000 from new MyKomuter trains Bandar Tasik Selatan, Pudu Station users
RBI 3,169,980* Water = 542,135 Electricity = 271,020 Housing = 156,825 Roads = 2,200,000
LIH 505,600* 44,535 Hardcore Poor reduced 9,906 Poor reduced 45,454 low-cost houses rented by Poor 23,239 low-cost houses bought by Poor 3,200 Entrepreneur Women trained
Edu 2,426,976 701,144 (2010), 732,902 (2011) pre-school enrolment 24,179 (2010), 14,122 (2011) for fee assistance 7000 (2010), 6421 (2011) Pre-school teachers trained 15,500 LINUS teachers trained 891,327 students underwent LINUS 34,381 New Deals Recipient
Crime 1,091,720 51,926 criminal cases reduced Fear of Crime index reduced by 3.4%
[952,000 people of 28 mil] 86,794 criminal offenders brought to trials (2011) Satisfaction with PDRM survey increased by 13.9%
(1000people surveyed satisfied)
COR 138,615 132,459 integrity pacts signed 743 corruption offenders 249 cases processed in corruption courts 5,157 Government contracts published online 7 whistleblower cases
10.15 mil
17.85 mil
Others:BR1M: 4 millionMinimum wage: 3.2 million(figures not added on top to avoid double counting)
Source : PEMANDU Team Analysis
* Assumption : 5 people per household
External Validation
and
Surveys
Public Perception
on GTP
7.2Insitut
IntegritiMalaysia
(sample size: 13,602)
7.4Frost &Sullivan
(sample size: 2,040)
GTP, ETP 2011 Results Endorsed ByAn International Panel & Audit Firm
Key takeaway:•Innovative•Exciting •High impact
• Speedy• Transformation process is
gathering global recognition
“Keep it Going!”
Steady GDP Growth…
2007 2008 2009 2010 2011 2012 (F)
Real GDP Growth % (Annual)
Real GDP Growth % (Annual)
6.5
4.8
-1.6
7.2
5.1 5.0
GDP strength continues in 1Q 2012…
2007 2008 2009 2010 2011 2012 (F)
Real GDP Growth %
Real GDP Growth % (Annual)
6.5
4.8
-1.6
7.2
5.1 5.04.7
Consumer Remains Optimistic…
8187
96 95 98 99103
107 105110
101 101107
0
20
40
60
80
100
120
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Source: Nielsen Consumer Confidence Index
FDI Confidence Rising2012 FDI Confidence Index
.
Source: AT Kearney Foreign Direct Investment Confidence Index®, 2012
2010(n=183)
2011(n=183)
2012(n=183)
#18
#23 #23
World BankEase of Doing Business
Report 2012
World Economic Forum Global Competitiveness
Report 2011
2009(n=133)
2010(n=139)
2011(n=142)
#21
#24#26
Record Breaking Achievements!
Highest Crime Reduction
51,934 crimes reduced
Record rural road completion
1,780 kms
Best UPSR results in 4 years
Record Number of Integrity pacts signed
132,459 pacts
Record passengers carried on public transport
2,813,321 passengers
Innovative approach to COL
BR1M, 1M Clinic, KR1M
Record GNI
830.7 billionRecord GDP
RM852.7 billion
Record Government Revenue
RM185.54 billionHighest Private Investment
in 10 years
RM94 billionHighest FDI in 10 years
RM32.9 billion
Top 3 years in total trade
RM1.27 trillion
Record Private Consumption
RM406.7 billion
Key Challenges…….
1 Lose Focus
Key Challenges…….
1 Lose Focus 2Fail to be Competitive
37
In Summary…..
The Transformation is a
comprehensive/holistic programme
that tackles both focused action as well as
strategic reform
initiatives
Being“Character”
Doing“Action”
• 12 NKEAs
• 131 EPPs
• 60 BOs
• Cities & Corridor
• Rural Transformation
Programme (RTP)
• 51 Strategic Reform
Initiatives under the NEM
• Other initiatives under the
GTP e.g. Corruption
NKRA, Education NKRA,
Crime NKRA, Urban Public
Transportation NKRA
THANK YOU+ pemandu.gov.my+ etp.pemandu.gov.my+ www.facebook.com/etpmalaysia
Widen the discourse, follow us on Twitter+ @etp_roadmap & @gtp_roadmap
Sign up for more updates on the ETP + http://etp.pemandu.gov.my/form_how_to_participate.aspx
2012 Quarter 1 PerformanceGDP
2012 Quarter 1 PerformanceConsumption & Investment
4
261 pages (GTP)
601 pages (ETP)
37 pages (GTP)
55 pages (ETP)
6 minute
Video
Published programme becomes the anchor to drive national policies and strategies into action