etp 2nd year
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From PemanduTRANSCRIPT
ETP: 2nd year in action 27th November 2012
30 March 2010: NEM was announced by YAB PM
25 October 2010: ETP Roadmap launched
TODAY
2 years have passed: Rigorous execution and monitoring,
Progress updates, Problem Solving Meetings
Quick recap of the ETP
Updates on NKEAs & SRIs
How our economy has performed
Challenges we have faced
1
2
3
4
Items we will go through today……
Low Income Lower Middle Income
Upper Middle Income
High Income
GNI per capita : USD 1,025 or less
GNI per capita : USD 1,026 – USD 4,035
GNI per capita : USD 4,036 – USD 12,475
GNI per capita : USD 12,476 or more
36 countries 52 countries 54 countries 69 countries
6.9% 5.4% 5.2%* 3.9%
Examples : • Mali • Bangladesh • Cambodia • Nepal • Tanzania
Examples : • Indonesia • India • Sri Lanka • Vietnam • Ghana
Examples : • Malaysia • China • Brazil • Turkey • Mexico
Examples : • Singapore • USA • Switzerland • Japan • Israel
World Bank classifies nation economies into 4 categories. 69 out of 212 countries (33%) are classified as high income
1 2 3 4
4
*Without China
Average GDP growth (Asian)
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
Recap of how GNI target was derived
1 Took World Bank’s current threshold for high income economy
US$12,476
2 World Bank’s published historical global inflation figure
2%
US$15,000 in 2020
RM 661 bil
RM 1,733 bil
RM billions Nominal GNI
RM 359 bil
2020 GNI
Target
Entry Point
Projects
(EPPs)
Growth in
other
sectors
RM 337 bil
2009 GNI Business
Opportunities
(BOs)
11 Sector NKEAs
1 2
RM 376 bil
3
There are many components that will contribute to
the growth of our economy
Source: NKEA Labs
SRIs SRIs
&
To Become A High-Income Nation, We Need:
We need “Drivers” to ensure focus on
high-impact areas
FOCUS
NKEAs
We Need “Enablers” To Ensure
Competitiveness
COMPETITIVENESS
51 Strategic Reform Initiatives 12 National Key Economic Areas
Two years of ETP = Vertical Take-Off
Comms Content &
Infra
11 Economic Sectors
+
Greater
Kuala Lumpur
Wholesale & Retail
Oil, Gas & Energy
Palm Oil & Rubber
Healthcare
Financial Services
Greater KL/Klang
Valley
Agriculture
Tourism
Education Electrical & Electronics
Business Services
141% (142%)
108% (81%)
118% (96%)
120% (91%)
151% (73%)
101% (92%)
109% (86%)
138% (86%)
119% (110%)
170% (106%)
98% (83%)
103% (76%)
123% (94%)
Note: YTD Oct 2012 % in brackets
NKEA
2011 FY % Achievement (2012 YTD% Achievement)
Quick recap of the ETP
Updates on NKEAs & SRIs
How our economy has performed
Challenges we have faced
1
2
3
4
SRI: Competition, Standards & Liberalisation
Competition Act Enforced on 1 January 2012
Remove Anti-Competitive Agreements
Remove Abuse Of A Dominant Position
X
Malaysia Has 6,260 Standards But Less Than 10% Are Enforced
6,260 328 3,759
Malaysian Standards Have Been Developed
60% Are Aligned With International Standards
5.3% Have Been Made Mandatory
But
SRI: Competition, Standards & Liberalisation
MS developed in 2012 as of 30 October 2012 is 347 MS
No. of MS made mandatory in 2012: 8 MS
SRI: Competition, Standards & Liberalisation
Liberalisation Of Sub-Sectors
Up to 100% foreign equity participation will be allowed
17 sub-sectors announced in Budget 2012 for liberalisation
15 sectors fully liberalised:
Accounting/Taxation; Courier; Dental Specialist; Departmental & Specialty Stores; Incineration; Int’l Schools; Legal; Medical Specialist; Private Hospital; Private Universities; Skills Training; Telco ASP; Telco NFP & NSP; Technical & Vocational Schools; Technical & Vocational Schools (for special needs students);
Approval of Construction Permits now
within 100 days (previously 260 days)
22 steps
10 steps
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
88.4% Very Satisfied
11.4% Satisfied 0.1%
Unsatisfied
0.1% Very
Unsatisfied
Total ratings: 102,919 (January – Oct 2012)
SRI: Public Service Delivery
Selangor Immigration
Centres
National Registration Department
Dewan Bandaraya
Kuala Lumpur
Perbadanan Putrajaya
Effective April 2012, rating services also available at the places below:
SMS Rating Available
Human Capital Development
Upskilling/Reskilling - NTEP
• The National Talent Enhancement Programme (NTEP) was launched covering 5 states/regions and 650 placements across Malaysia for E&E & BSvc (Green Tech)
• 347 trainees in companies • Accelerate development of skilled
workforce through partnership via industry attachment programmes
HR Management in SMEs
• 4,567 SMEs benefited from free tailored HR solutions via interactive HR portal
• 7,301 SMEs benefited from HR Capability Building Programme
Minimum Wage
• PM announced minimum wage of RM900/RM800 on 30 Apr 2012
• 6 months to implement post-gazette, 12 months for micro-enterprises
Employment Act 1955 (Phase 1 & 2)
• Phase 1 of Employment Act 1955 passed in Parliament includes 28 amendments to the current provisions, 17 new provisions and 2 provisions repealed
• Phase 2 in progress • Bill on raising minimum
retirement age to 60 passed on 28 June
Project Flip - O&G NOSS
• Leverage PETRONAS Skills Training (POSS) to develop National Skills Training (NOSS) in 7 disciplines
• Enable technical-vocational training centres to deliver up-to-date, industry relevant skills training
Up-skilling / Re-skilling – MyProcert • MyProcert programme launched on 11 Oct
2011 for BSvc & CCI • 11 partners to date including SAP, Huawei,
Oracle, iTrain, Scicom, SnT, National Instrument, Autodesk
• 1,250 professionals targeted, 946 enrolled • Catalytic to up-skill Malaysians to global
certification standards
NKEA Milestones
MRT Making Good Progress
Work Package Tender Status
Awarded In Progress To Be Called
53 (RM22.31b)
8
24
NKEA: Greater KL
ILLUSTRATIVE
Heavy Industry
Lig
ht In
du
stry
RAPID
6,500 ac
PETRONAS RAPID
RM60 billion
6,500 acres
Refinery
Petrochemicals
2016 commissioning
DIALOG-VOPAK
RM9 billion
500 acres reclaimed land
Petroleum Terminal
LNG Regasification Plant
2014 Phase 1 commissioning
500 ac
Heavy Industry
Potential Investor B
RM30 billion
4,000 acres
Refinery
Petrochemicals
4,000
ac
Potential Investor A
RM24 billion
2,000 acres
Refinery
Petrochemicals
(future phase)
2,000
ac
Total Potential
RM170+ billion of investment
22,000 acres of industrial area
Pengerang Integrated Petroleum
Complex (PIPC) Goes Beyond RAPID
NKEA: Oil, Gas & Energy
2020 GNI
impact:
RM17.7 Billion
Total job
creation
8,500
2020 GNI and Job creation from Oil
& Gas investment in Pengerang
Bio Gas for a Green Economy Capturing methane gas to generate electricity for a greener economy. This energy generated can be sold to the national grid or used by mills internally.
Examples Of Completed Biogas Plants Biogas Development at Mills YTD 2012
Mills Completed
Under Construction
Planning Stages
NKEA: Palm Oil & Rubber
57
15
149
Expediting growth in food and health based
segment – Tocotrienols and carotenes
*FY2011 + YTD2012
NKEA: Palm Oil & Rubber
2 10 R&D grants approved for clinical
trials on palm phytonutrients
Business proposals approved to-date on tocotrienol and carotenes
production
• Tocotrienols has been known to reduce cholesterol, lower blood pressure, reverse arterial blockage, protect
against heart injury, anti-cancer, suppress tumors and many others.
• Carotenes are natural antioxidants and are known for their pro Vitamin A properties.
Worth
RM29.2mil
Worth
RM24.3mil *FY2011 + YTD2012
Sukuk – Malaysia is still ahead!
NKEA: Financial Services
70% of total global sukuk
issuance are from Malaysia!
(Total Middle East:
approximately 25%)
2 of 4 largest global IPOs in 2012 listed in Malaysia
Facebook Japan Airlines Felda Global Ventures IHH Healthcare
IPO (USD Billion)
16.0
8.5
3.3
2.0
Source: News reports, ECM Analytics
1
3
4
2
NKEA: Financial Services
E&E is moving into higher value R&D activities
all along the value chain
NKEA: Electrical & Electronics
Assembly Manufacturing Research and Development
These will enable the E&E industry to achieve RM90 billion in GNI
by 2020 and contribute an additional 157,000 jobs
Higher quality of jobs and higher GNI contribution for Malaysia!
NKEA: Electrical & Electronics
EPP Assembly Manufacturing
Activities R&D Activities Remarks
1 Wafer fab Infineon opened a new plant in Kulim. Silterra and MIMOS
actively involved in R&D
2 Advanced packaging Infineon and On-Semiconductors are expanding their R&D
activities
3 IC Design 5 companies are expanding operations and 3 new companies
are setting up
4 Substrates Penchem is heavily involved in R&D of advanced polymers.
Ibiden is expanding their facility with Phase 2
5 Solar silicon producers Tokuyama is involved in manufacturing polysilicon substrates
6 Solar cell & wafer
producers
TS Solartech and Panasonic involved in manufacturing and R&D of solar cells and wafers
7 Solar module producers HBE Gratings, Panasonic and Solartif involved in
manufacturing and R&D activities
8 LED front-end
operations Osram is expanding their LED wafer fabrication plant
9 Packaging & equipment Philips Lumileds expanded R&D and manufacturing facilities
10 Local SSL champions 6 local companies participating in a programme with SME
Corp to penetrate regional / global market
11 Test & measurement Agilent launched vendor development programmes with 3
local companies to develop local capabilities
12 Wireless
communications
Smartag implemented an RFID tagging system with Royal Customs
13 Automation equipment 9 companies have obtained approvals to expand / diversify
their operations via automation
14 Transmission &
distribution Tenaga Switchgear is setting up a high power testing lab
15 Electrical home
appliances
Pensonic is setting up a manufacturing hub and expanding their international distribution network
More manufacturing and R&D activities
Before After
Improving the Livelihood of more than 1000 Sundry Shop Owners - TUKAR
1,077 shops transformed
since 2011 (519 in 2011 + 558 YTD in 2012)
NKEA: Wholesale & Retail
~30% average revenue growth within several months
post transformation of stores!
Quick recap of the ETP
Updates on NKEAs & SRIs
How our economy has performed
Challenges we have faced
1
2
3
4
Items we will go through today……
Steady Growth!
2009 2010 2011 9M 2012
Real GDP Growth % (YoY)
Real GDP Growth % (YoY)
-1.6
7.2
5.1 5.3
Source: Department of Statistics
Country Q3 yoy
APAC consensus for Malaysia (in Jan 2012)
3.8
Thailand 3.0%
Singapore 1.3%
South Korea 1.6%
Taiwan 1.0%
Hong Kong 1.3%
Public Investment Private Investment
9M 2011
9M 2012
Target 2012
RM52.7b
RM66.1b
RM89.5b
RM112.2b
Note: Based on current prices
25.4%
Encouraging total investment growth until September 2012
25.5%
RM100.0b
RM127.9b
Private Outpacing Public Investment
0
20
40
60
80
100
120
2009 2010 2011 9M 2012 2012F
Public (RM b) Private (RM b)
51.7%
48.3% 43.0%
57.0% 22.5% 9M 2012
12.2% FY 2011 Average 6.7%
2000-2010
Source: Department of Statistics, at constant prices
56.1%
43.9%
62.9%
37.1%
Investment Growth
2009 2010 2011 2015** target
2020 target
6.6% 5.6%
4.8%
3% 0% / Neutral
As percentage of GDP (rebased figures) * forecast **2015 Target as per 10th Malaysia Plan
4.5% 4%
2012* 2013 target
Gradual Reduction in Fiscal Deficit…
Sovereign
crisis
levels
Safe zone
Public debt (% of GDP), 2009*
Greece
United Kingdom
Spain USA
India
Japan
Singapore
Hong Kong
Indonesia
Thailand
-15 1 -14 -13 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0
50
100
150
200
Surplus / deficit (% of GDP), 2009*
Malaysia
2009
Malaysia
2010
Malaysia
2011
Malaysia is moving closer to the “Safe Zone”
Source: EPU, MOF, BCG analysis, Economist Intelligence Unit
Notes: 1. Malaysia’s figures are for 2009, 2010, 2011 2. Position of other countries in 2010 and 2011 will move, but not
shown in the chart above
Target for
Malaysia
2012
Market capitalization is up at RM1.46 trillion Bursa Malaysia hit historical high on 1 Nov 2012
FTSE Bursa Malaysia KLCI
RM 1.46 trillion 1st November 2012
30% RM340 billion
RM 1.12 trillion Aug 2010
Market Capitalisation 1 Nov 2012:
1,675.69pts
What Do The External Validators Say About Our Economy?
Consumers Remain Optimistic
81
87
96 95 98 99
103
107 105
110
101 101
107 110
101
70
75
80
85
90
95
100
105
110
115
120
Q1 09
Q2 09
Q3 09
Q4 09
Q1 10
Q2 10
Q3 10
Q4 10
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Source: Nielsen Consumer Confidence Index
FDI Confidence Rising
.
Source: AT Kearney Foreign Direct Investment Confidence Index®, 2012
World Bank Doing Business Report
Getting credit: #1 (unchanged) Protecting investors: #4 (unchanged)
Getting electricity: #28 from #59 Registering property: #33 from #59 Paying taxes: #15 from #41 Trading across borders: #11 from #29 Dealing with construction permits: #95 from #113
Ahead of Sweden, Taiwan, Germany, Japan & Switzerland
2010 (n=183)
2011 (n=183)
2012 (n=183)
#18
#23 #23
2013 (n=183)
#12
World Bank Doing Business 2013
#14 out of 59 countries globally #4 amongst 13 Asia Pacific countries #5 of 29 economies with more than 20 million population #2 after Taiwan among 29 economies with GDP per capita less than US$20,000 Ahead of Australia, UK, South Korea, Japan & France
Institute for Management Development World Competitiveness Yearbook 2012
IMD World Competitiveness Yearbook
2010 (n=58)
2011 (n=59)
2012 (n=59)
#14
#10
#16 #18
2010 (n=57)
World Economic Forum Global Competitiveness Report 2012 #25 out of 144 countries globally
#8 amongst Asia Pacific countries
#2 in ASEAN Upgraded to transition stage between efficiency-driven towards innovation-driven Ahead of Israel, Ireland & China
WEF Global Competitiveness Report
2009 (n=133)
2010 (n=139)
2011 (n=142)
#21
#24
#26
2012 (n=144)
#25
#4 ranked in the World by CNN
#2 amongst Asia Pacific after Japan
3 of the world's 10 largest malls are in Kuala Lumpur Scored a maximum 10 on Value (Bargain opportunities, such as sale seasons and average prices) Ahead of Paris & Hong Kong
Our initiatives in Tourism and Greater KL are working!
CNN World's 10 Best Shopping Cities
KL ranked #2 in Asia Pacific by the Globe Shopper Index due to a large number and variety of shops
ETP Progress since October 2010
+ = 110 Projects
Investment: RM179.2 b GNI in 2020: RM129.5 b
Jobs: 313,741
39 Projects Investment: RM32.8 b GNI in 2020: RM8.1 b
Jobs: 97,151
149 Projects Investment: RM212.0 b GNI in 2020: RM137.6 b
Jobs: 410,892
2011 2012 Total
Source: Department of Statistics, Ministry of Finance
100%
Target = RM884 billion
Target = RM127.9 billion
GNI (nominal figure)
Private Investment
RM436 bil (49%) (Q2)
RM112.2 bil (88%) (Q3)
2012 Results Benchmarked Against Targets
2011 GDP Growth: 5.1% 2011 GNI per capita: $9,500 Note: 2009 GNI per capita: $6,700 Figures are before rebasing by BNM/MoF (2011 GNI after rebasing: $9,700)
45
Countries from all around the world
requested to learn our methodology
BFR Seminar 21 – 24 November 2011
14 Countries, 52 participants
Tanzania 4 – 5 August 2012
Russia 9 August 2012
Upcoming
proposed visits
Sierra
Leone
Egypt
Brunei 4 Sept 2012
46
Case studies on ETP & GTP in
Ivy League Universities
Title: TYING PERFORMANCE
MANAGEMENT TO SERVICE DELIVERY:
PUBLIC SECTOR REFORM IN
MALAYSIA, 2009 – 2011
Published: July 2011
Author: Deepa Iyer
For download:
http://www.princeton.edu/successfulsocieties/content/focusa
reas/CS/policynotes/view.xml?id=160
Not available for distribution or download
Title: Economic Transformation:
All About Focus, Competitiveness, and
Execution
Published: November 2012
Author: Prof Diego Comin/Ku Kok Peng
Quick recap of the ETP
Updates on NKEAs & SRIs
How our economy has performed
Challenges we have faced
1
2
3
4
Items we will go through today……
The ETP Scorecard KPIs
48
The Traffic Light Approach
<50%, Underperformed
Achieved 50% or more
100% or Exceeded Targets
NKEA Education – Educity @ Iskandar
What happened? • Target student enrolment not met due to immigration issues and scholarship dependencies
(115 Actual 2011 Versus 1,600 FY Target)
Actions Initiated: • Collaboration between relevant agencies eg. IRDA, MOHE, PEMANDU, Immigration,e tc • A paper was tabled to Cabinet to assist Marlborough College Malaysia to resolve issues related to
work visas for foreign teachers and enhance ease of daily commute across the Singapore-Malaysia border
• JPA and MARA scholarship students for Newcastle University Medicine (NUMed)
And Now: • Marborough College Malaysia exceeded target student intake in 2012 (350 students) • Education Malaysia Global Services (EMGS) set-up as a one-stop-centre for processing of student
visas as well as to promote Malaysia as an education destination for international students
For further information, please refer to page #167 of the ETP Annual Report 2011
NKEA Palm Oil & Rubber – Accelerating Replanting and New Planting
What happened? • FY2011 target plant area was 126,500 ha but achieved 103,000 ha (approx
1.5 times Singapore)
Actions Initiated: • On-going monitoring, tracking and boost replanting and new planting
efforts with grant from Federal Government for the period 2011-2013 And now:
• Growth on track despite highest average CPO price in past 3 years • Current hectares planted (YTD 0ct 12) is 96,396 ha versus FY2012 target of
130,000 ha
For further information, please refer to page #89 of the ETP Annual Report 2011
Other Challenges
We’ve also announced several other projects that have received some
media attention. Here, we will share you the updates of these projects.
Karambunai
52
What happened? • Delay of a year in the implementation of the first phase due to the many appeals
against the Housing Developers Act requirements • Knock on delays in the re-approval of development permits due to business plan
changes • Construction set backs We are: • Ensuring that both federal and state government bodies provide full support in
facilitating the progress of the project • Awaiting Project Owners to review the development plans for the Golf Waterfront. And now: • RM4.9 Million Restaurant – operational Oct 2012 • Beachfront Resort Residences - approved for development March 2012 • Master Land Use Plan – approved July 2012
This initiative is a part of EPP5 (Eco-Nature Integrated Resort Development) under the Tourism NKEA
TriCubes
53
What happened? • Low adoption rates for My Email We are: • Working to educate the public on an authenticated, secure email service and
other advantages of e-services And now: • Company has invested more than RM5mil in 2011, created 20 jobs, growing
user base of more than 22,000 active users. • New eServices: JPJ's Driving License, Road Tax Reminders, and eBilling • PDRM to pilot MySOS mobile application in IPK KL
This initiative is a part of EPP6 (Deepening E-Government) under the Communications Content & Infrastructure NKEA
What happened? LFoundry's was planning to relocate its European operations to Malaysia. Several months after its commitment to construct five wafer fabs including the pilot facility, the parent company filed for bankruptcy. When it was clear that there were no players to forward the project in its original form, we removed the committed investment from the total sum of committed investment in 2011. We have: • Organically growing our existing capabilities and infrastructure throughout the
country
And now: • Seven existing FABs throughout Malaysia producing 78k wafers per month • Establishment of The Semiconductor Fabrication Association of Malaysia to
enable FABs to collaborate, optimize resources and knowledge sharing to increase overall production.
LFoundry
This initiative is a part of EPP1 (Mature Technology Fabrication) under the Electrical and Electronics NKEA
Our nation is heading towards the right direction
The ETP is an Evolving
Document
ETP started out with 131 EPPs in 2010
In the past 2 years, some EPPs have been dropped, and some
new ones were added.
Today, we have 152 EPPs with 149 projects
announced to date.
EPPs : Entry Point Projects
Source: Department of Statistics Projections: PEMANDU team Analysis
2009
We are 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
Source : Bank Negara 2011 Figures (rebased)
We also need to encourage more Malaysian
businesses to invest overseas!
GNI
Net Factor
Income
From
Abroad
RM 664.7b
- RM 44.6 b
GDP
CONSUMPTION
INVESTMENT
TRADE
INVENTORY
RM 709.3b
RM446.9b (63%)
RM166.5b (23%)
RM92.6b (13%)
RM3.2b (1%)
• World's second-largest hospital group by market capitalisation;
• Hospitals present in many countries including China, India, Hong Kong, Turkey, Vietnam and Brunei
• Consortium consists of SP Setia, Sime Darby, EPF
• Gross Development Value of RM50 billion (£8 bil)
10 point evidence of success:
ETP is catalytic to the Malaysian economy
Currently there are 152 EPPs with 149 projects already announced with total committed investment of RM212 billion, RM137 bil GNI in 2020, creating 410,892 jobs
Healthy GNI increase From only US$6,700 in 2009 to US$9,700 in 2011 (45%)
Strong GDP growth during global economic slowdown
7.2% in 2010, 5.1% in 2011, 5.3% up until Q3 2012. By comparison for Q3 year on year; Singapore is 1.3%, Thailand 3.0%, South Korea 1.6%, Taiwan 1.0%, Hong Kong 1.3%
Record GDP/GNI ensured record Govt revenue
Ensured Govt achieve highest revenue in history (RM185 bil in 2011)
Record private investment 10-year high
RM111.8 bil private investment , RM36.6 bil FDI, 2012 on track to achieve better results
1
2
3
4
5
Continued…..
10 point evidence of success:
Healthy domestic consumption growth
7.3% growth in 2011 and 8.5% growth in 2012
Record stock market performance
FTSE Bursa Malaysia KLCI market capitalisation scaled a new historic high on 1 November of 1,675.69 points (RM1.12 trillion market cap)
Reducing fiscal deficit 6.6% in 2009, 4.8% in 2011, while Govt strive to constantly reduce the deficit further
Recognition from external parties
World Bank’s Ease of Doing Business ranking (18 to 12); AT Kearny FDI Confidence Index (21 to 10), IMD World Competitive Ranking (16 to 14)
NKEA KPIs met/surpass targets
123% achievement in 2011, currently stands at 94% (2012 YTD)
6
7
8
9
10
We’ve made a lot of progress together. Let’s keep the momentum!
THANK YOU • www.etp.pemandu.gov.my • www.businesscircle.com.my • www.kopitiamekonomi.com • www.facebook.com/etpmalaysia • @etp_roadmap • http://etp.pemandu.gov.my/form_how_to_participate.aspx