malaysia's transformation programme & reform initiatives · 2018-01-31 · malaysia's...

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