economic reform in malaysia

Allauddin Anuar

Director (Macroeconomics)

Economic Planning Unit

Prime Minister‘s Department

8 March 2011

Driving Towards a high-income, inclusive and sustainable economy

RTD ON MALAYSIA‘S

COMPETITIVENESS PERFORMANCE

11

PROSPECTS & IMPLEMENTATION

OF 10MP

A MACROECONOMIC SNAPSHOT

OF THE MALAYSIAN ECONOMY

CURRENT ECONOMIC REFORM

PROGRAMMES

CONCLUSIONS

22


OF 10MP




PROGRAMMES

CONCLUSIONS

Malaysia has made remarkable strides in its economic growth and

development over the last 40 years

Real GDP, RM millions

48,592

557,449

Real GDP has grown at an average rate of 6.3% per annum from 1970 until 2010

Poverty rate, %

49.3%

3.8%

The Poverty

Rate of the

country has

reduced

substantially

since 1970. As

of 2009,

Hardcore

Poverty stands

at 0.7%

Gini Coefficient

0.513

0.441

Inequality in

the country

has also

reduced

since 1970

3

GNI per capita:

USD8,300

Recent trends in the overall Malaysian economy have also been very

encouraging1

2.8%INFLATION (%)

Inflation in Malaysia is expected to remain stable, at

approximately 2.8% at end 2010

14.1%CURRENT ACCOUNT BALANCE (% of GNI)

The Balance of Payments Current Account Balance is

expected to register a healthy surplus

883JOBS CREATED (‗000), 2006-2010

The Labour Market in Malaysia is currently operating at full

employment

53.4%PRIVATE CONSUMPTION (% of GDP)

Private Consumption remained robust despite the recent

global financial crisis

1: 2010 DOS Prelim estimate, unless stated

Source: EPU and Ministry of Finance estimates

57.3%SERVICES SECTOR (% of GDP)

The Services Sector remained the main driver of growth in

the economy, accounting for 57.3% of GDP

4

While Malaysia has made tremendous progress over the years, there are still economic issues and concerns to be addressed

. . . it has lost momentum since the Asian Financial Crisis at the turn of the century . . .

SOURCE: World Economic Outlook (April 2010), International Monetary Fund

3.1

5.3

6.7

6.9

6.7

7.5

8.3

8.6

9.2

11.5

Philippines

India

Thailand

Indonesia

Taiwan

Korea

Vietnam

Singapore

Malaysia

China

4.4

7.2

3.9

5.1

3.1

3.9

7.3

4.2

4.7

10.1

GDP growth, (%)

1990-1997

GDP growth, (%)

2000-2009

2nd

highest

growth

5

Malaysia also risks being stuck in the Middle Income group . . .

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Vietnam

Thailand

Taiwan

South Korea

Singapore

Philippines

Malaysia

Japan

Indonesia

Hong Kong

China

20082000199019801970

GDP per capita 1970-2008

USD

SOURCE: The Conference Board and Groningen Growth and Development Centre, Total Economy Database, January 2009

Malaysia

started in

similar

position as

Taiwan and

South Korea

but has fallen

behind over

the past

decades

6

Private investment declined significantly after the Asian Financial Crisis & has yet to return to pre-crisis levels while the fiscal deficit has increased . . .

SOURCE: Economic Planning Unit and Ministry of Finance

31.6%

10.8%

Private Investment, % of GDP

Federal Government Fiscal Position, % of GDP

2010

2000

1997

-5.6%-5.5%

2.4%

The Government

recognises the need for

the private sector to

take the driving seat in

the economic growth,

and is thus committed

to facilitating the

increase in private

investment, particularly

with its fiscal deficit

being at 5.6% of GDP in

2010

7

8


OF 10MP




PROGRAMMES

CONCLUSIONS

Growth is

Not a Given

Achieving high-income status by 2020 requires an average GDP growth

of 6% per annum. Growing the economy has been more challenging in

recent years, as growth in private investment has been lacklustre, and

there has been an outflow of financial and human capital

We are at a critical period in our history

Malaysia can no longer rely on its low cost advantage as it did in the

past. However we are also not in a position to compete with high value-

added economies, lacking in talent and innovation to do so

Stuck in the

Middle

Globalisation has made the world flat. Competition can come from

economies as far away as South America and Eastern Europe. The

financial crisis has intensified competition for investment and trade

Changing

Global

Landscape

Regional economies like India, China, Indonesia and Vietnam are fast

growing, taking advantage of their scale and attempting a technological

leapfrog over their smaller middle income peers

Intensifying

Asian

Competition

We are at a critical juncture in our nations development journey. Making

a concerted drive for high income status is necessary to avoid the risk

of relative decline

Malaysia

Must Forge

Ahead

9

The Honourable Prime Minister has launched 5 key initiatives to drive Malaysia towards becoming a developed country by 2020

10

The New Economic Model sets out the characteristics of an ideal Malaysia in the year 2020

11

The New Economic Model lists out 8 Strategic Reform Initiatives to drive the Malaysian economy towards becoming a high-income, inclusive and sustainable economy

Re-Energising the Private Sector to Lead

Growth

Developing a Quality Workforce and Reducing

the Dependency on Foreign Labour

Creating a Competitive Domestic Economy

Strengthening the Public Sector

Transparent and Market-Friendly Affirmative

Action

Building the Knowledge-Base Infrastructure

Enhancing the Sources of Growth

Ensuring the Sustainability of Growth

1

2

3

4

5

6

7

8

12

To achieve high-income economy by 2020, Malaysia‘s GNI must grow by at least 6% per year

Projected GNI

~USD

475-525

billion1

2020

1 At current prices , consistent with EPU assumptions for inflation=2.8% and population growth=1.1%

2 2009 population 27.9 million, 2020 projected population 31.6 million (EPU projection)

SOURCE: World Bank, EPU, DOS

2009

Current

GNI ~

USD190

billion

Projected GNI

~USD

390-430

billion

GNI per capita (USD)

~6,700

GNI per

capita

~12,200-

13,500

GNI per

capita

~15,000-

16,600

13

The Tenth Malaysia Plan encapsulated all efforts to transform Malaysia into a developed high-income nation

Tenth Malaysia Plan

CHAPTER 4

Moving towards

inclusive socio-

economic

development

CHAPTER 3

Creating the

environment for

unleashing economic

growth

CHAPTER 5: Developing and retaining a first-world talent base

CHAPTER 6: Building an environment that enhances quality of life

CHAPTER 7: Transforming Government to transform Malaysia

CHAPTER 2: Building on the nation’s strengths

CHAPTER 1: 1Malaysia: Charting development towards a high-income nation

Developed high-income economy

▪ Crime

▪ Education

▪ Corruption

▪ Low Income Households

▪ Urban Public Transport

▪ Rural Basic Infrastructure

▪ Re-energizing the private sector

▪ Developing a quality workforce

▪ Creating a competitive

domestic economy

▪ Strengthening the public sector

▪ Transparent and market friendly

affirmative action

▪ Building the knowledge base

and infrastructure

▪ Enhancing the sources

of growth

▪ Ensuring sustainability of

growth

NEM : Strategic reform

initiatives (SRIs)

S1

S2

S3

S4

S5

S6

S7

S8

GTP National Key Result

Areas(NKRAs)

N1

N2

N3

N4

N5

N6

14

▪ Structural changes needed to sustain growth

▪ To move from an economy that competes on

cost and natural resources, to one driven by

productivity, innovation & able to attract &

retain talent, companies & capital

▪ 7 core strategies

1

2

3

4

5

6

7

Creating a private sector-led economy

Supporting innovation-led growth

Rationalising the role of government in business

Developing small and medium enterprises (SMEs)

as an engine of growth and innovation

Competing globally

Putting in place the infrastructure for growth

Focusing on key engines of growth ~ 12 NKEAs

Creating the Environment for Unleashing Economic Growth . . .

15

▪ Modern & market friendly business

regulation to make Malaysia one of the top

10 nations in the WB Doing Business report

by 2015, from 23rd in 2010

▪ Remove market distortions by rationalising subsidies

▪ Introduce Competition Law to govern all firms including GLCs against anti-competitive practices

▪ Liberalise the services sectors

▪ Enhance the ease of doing business– a

comprehensive review of business

regulations to reduce cost of doing

business & increase efficiency of

competition; a revamped Malaysian

Productivity Corporation will be

mandated to actualise this

Creating a private sector-led economyImplement 3 key new initiatives to drive competitiveness & private sector investment . . .

Private sector investment is critical to

achieving high income status

Overall GDP 6.04.2

Imports8.6

2.8

Exports7.2

1.8

Public consumption4.84.8

Public investment5.0

6.2

Private consumption7.7

6.5

Private investment 12.82.01

1 Private investment contracted by 17.2% in 2009

Source: EPU

Growth rate (%)10th MP

9th MP

16

The private sector will be step-up as a partner, as the Government rationalises its role in the economy . . .

Rationalising the role of government in business

Initiative examples

Divesting assets

Increasing

privatisation and

public private

partnerships

Putting in place a

Facilitation Fund

▪ A sequenced strategy to divest shares and land

▪ Ensure level playing field between GLCs

and private sector

▪ Implement new wave of privatisation with more

stringent evaluation process

▪ Allocate RM20 billion to facilitate private sector

investment in projects with high strategic value

to bridge the viability gap for private investments

Description

17

A range of programmes will be put in place to develop SMEs as an engine of growth and innovation . . .

Developing SMEs as an engine of growth and innovation

Key action areas

Reduce the

regulatory costs

borne by SMEs

▪ Exempt costly business regulations for knowledge intensive

companies employing five or fewer people

Example of programmes

Build capacity

and capabilities

of SMEs

▪ Target 20,000 SMEs to attend training programmes including soft

skills

Support the creation of an entrepreneurial culture

▪ Sponsor and promote a systematic programme of business plan

competitions in schools and universities

Strengthening enabling infrastructure

▪ Set up specialised SME retail outlets nationwide with private sector

participation

Enhancing SME access to financing

▪ Venture capital, financing and guarantee, preferential loan &

hybrids

18

Programmes will be put in place to allow Malaysia to compete

effectively in global markets & attract capital & talent . . .

▪ Designate MIDA as the

central investment

promotion agency for

manufacturing &

services sectors with

the authority to

negotiate directly with

investors for targeted

projects

▪ Set-up Talent

Corporation to attract &

retain talent

▪ Reform labour law

Competing to attract

foreign investment &

talent to Malaysia

▪ Help firms to extract

and unlock the potential

of FTAs

▪ Assist firms to break

into export markets

▪ Reduce transaction

costs such as customs

procedures and

logistics to facilitate

trade

Competing in global

markets

Competing globally

19

Geographic growth will be focused around conurbations

where agglomeration can boost economic growth . . .

Cities will be developed as

economically dense urban

clusters which will compete

for talent, companies and

capital

Corridors will be focused

around several key clusters

with competitive advantage

in order to maximise

economic growth

Focusing on key engines of growth (sectors and geographies)

20

Living

spaces

Building vibrant and attractive living spaces. Influencing the form and character of places to make them attractive places to live, work and play with a focus on cities

Developing a rakyat-centric public transport system. Restructuring the transport sector and continuing to invest in infrastructure to make public transport an attractive mode of choice

Public

transport

Transforming healthcare to improve quality and universal access.Restructuring the healthcare delivery system and moving from strategies that emphasise treatment to wellness and disease prevention

Health

Ensuring access to quality and affordable housing. Meeting the needs of a growing population by matching demand and supply for affordable housing, and promoting an efficient and sustainable housing industry

Housing

Strengthening the provision of efficient public utilities and essential services. Driving efficiency and productivity gains in the provision of reliable services for water and sewerage, electricity, broadband as well as waste management and public cleansing services

Public

utilities

Making our streets and communities safer. Reducing crime and improving people’s sense of securitySafety

Valuing the nation‘s environmental endowments. Ensuring Malaysians do their part for future Malaysians through prudent management and conservation of existing resources

Environment

CHAPTER 6: BUILDING AN ENVIRONMENT THAT ENHANCES QUALITY OF LIFECHAPTER 5: DEVELOPING AND RETAINING A FIRST-WORLD TALENT BASE

The Government will complement its efforts to boost private sector

participation by building an environment that enhances quality of life

21

NKEAs selected which can materially

impact economic growth

Greater KL

Agriculture

Palm oil

CCI

Private

education

Electrical &

electronics

Oil and gas

TourismWholesale

and retail

Financial

services Business and

Professional

services

Health

National Key Economic Areas (NKEAs), under the ETP can materially

impact economic growth . . .

22

ECONOMIC TRANSFORMATION PROGRAMME SALIENT POINTS:

NKEA projects will contribute to the achievement of economic growth

of at least 6-7%

Malaysia will become a high-income nation with GNI per capita of

USD15,000 ~ USD16,600 by 2020

The 11 sector NKEAs will contribute over 70% of Malaysia‘s GNI which will have risen to USD 524 billion (currently at 60%)

92% of funding for the projects will come from private investment and only 8% of which will come from public funding

The ETP will generate an additional 3.3m jobs, over 60% of which will be in medium-income or high-income salary brackets

The ETP features 131 EPPs worth USD138 bil. (RM430 bil.) & 60 business opportunities over 2011-2020 period:

• ETP1: 9 EPPs worth RM5.3 bil. - announced 25 Oct 2010

• ETP2: 9 EPPs worth RM8.3 bil. - announced 30 Nov 2010

• ETP3: 19 EPPs worth RM67 bil. - announced 11 Jan 201123

144

1515

1818

2427

31

72

144

Health

Svcs

CCIEdu-

cation

Biz

Svcs

E&ETourism Others2 2020

GNI

524

380

Agri-

culture

W/sale

& Retail

50

54

Palm

Oil

55

Fin.

Svcs

Oil,

Gas &

Energy

Total Nominal GNI1 by Sector in 2020

USD Billion

The 11 sector NKEAs will contribute ~70% of total GNI in 2020

1 Does not include GNI impact from Greater KL to avoid double-counting

2 Others includes: Transport & storage, Livestock & fisheries, Real Estate, Automotive & Assembly, Construction, Forestry & Related Products, Metal

Products & Heavy Equipment, Rubber & plastic products, Utilities based on EPU growth forecast

SOURCE: Week 9 EPP & Business Opportunities Templates (28 July 2010)

10 10 10 6 5 5 3 3 3 27314% of total

2020 GNI

27% of

total GNI

73% of

total GNI

24

25


OF 10MP




PROGRAMMES

CONCLUSIONS

Achieving economic growth of 6.0% p.a. towards high income growth

Growth to be led by the private sector

Narrowing down of the Federal Government fiscal deficit

Medium Term (10th MP) Growth Target

26

Souces: Economic Planning Unit & Department of Statistics

38.8

26.4

19.1

8.0% p.a.

2015141312111009082005 0706

9th MP 10th MP

USD$12,188

USD$8,295

740.3

449.3

552.1

20151406 1312111009080720059th MP 10th MP

6.0% p.a.Malaysia

Real GDP (RM billion)

Government Fiscal Deficit (%)

Forecast

27

GNI per capita (RM thousand)

Macroeconomic Strategies: GDP is targeted to grow by 6% p.a. to achieve high-income nation & the need to contain fiscal deficit

700++

27

SOURCE: Economic Planning Unit

6% p.a.

2015

RM700++ bn

-111.6

116.0

11.2

13.9

12.658.0

2010

RM557.4 bn

-99.1

109.9

11.8

10.2

13.4 53.6

… GDP growth

Share to GDP by aggregate demand (%)

7.7

4.8

12.8

5.0

7.2

8.6

Exports

Imports

Public Consumption

Private Consumption

Public Investment

Private Investment

Growth (%) per annum, 2011-2015

GDP Growth 6.0

Share to GDP by sector (%)

… GDP growth6% p.a.

2015

RM700++ bn

2.9

6.6

5.926.3

61.1

2010

RM557.4bn

3.3

7.5

7.5 26.7

58.0

7.2

5.7

1.1

3.3

3.7

Services

Mining & Quarrying

Manufacturing

Construction

Agriculture

Growth (%) per annum, 2011-2015

6.0GDP Growth

Macroeconomic Strategies: GDP growth to be driven by private investment

28

Private

Investment

9th MP~ RM71 bn

per year

10th MP~ RM115

bn per year

10thMP

Policy Direction & Recommendations―High Level‖

Programmes/NKEAs /

ETP

Sector Specific

Industries

Products

Capex

―Low level‖

Reform Initiatives

Policy Measures

Legislations

Procedures

Practices

Implementing Agencies―Ground level‖

10th MP Post Launch – taking the high level

recommendations to the ground for implementation

29

What are currently being done . . .

Action plan – to translate 10MP initiatives

into action & outcome

Implementation of projects under Public

Sector Investment Programme

Development projects

Continuation projects

NKRA projects

NKEA projects

30

10MP 1st Rolling Plan (2011-2012): Proposed DE...

RM billion Ceiling 2011-2012

% tototal

Proposed 2011

% to total

Proposed 2012

% to total

Total DE 103.6 100.0 49.18 100.0 54.41 100.0

9MP ContinuationProjects

34.90 33.7 21.99 44.7 12.91 23.7

NKRA 14.06 13.6 8.30 16.9 5.76 10.6

NKEA 11.85 11.4 5.46 11.1 6.39 11.7

PPP Facilitation Fund

4.00 3.9 1.00 2.0 3.0 5.5

New Projects (Committed)

13.26 12.8 3.90 7.9 9.36 17.2

New Projects (Others)

25.52 29.6 8.53 17.4 16.99 31.2

31

Monitoring of 10MP initiatives

Report to National Action Council

Maping out implementation plan at initiative level

Identify:

Key Milestone

Led Agency

Target Dates

Major Outcomes

Use standardize Template

Regular monitoring by

Project Managenment Unit (PMU)/MOF

Report to Economic Council

32

The Government is also focused on ensuring rapid and effective

delivery of the Economic Transformation Programme

The Government has made several promises towards the successful implementation of the

ETP

Ensure the private sector owns EPPs wherever possible

Revamp MIDA to effectively attract FDI and

DDI at targetted EPPs

Regularly seek and responsively act on feedback from the private sector

Fast-track amending

regulations, removing barriers and establishing other enablers

Award public contracts for EPPs

using a merit-based, market-friendly transparent and rapid process

1: In the interest of equity, cash vouchers to mitigate the effect of a VAT will be distributed to the poor and as the VAT becomes

more firmly entrenched, the cash vouchers will be gradually reduced.

Focus investment of public funds on EPPs only as a

catalyst

33

The Government is taking several key measures to ensure

successful implementation of the ETP

All of Government

will come together

and partner with

the private sector

to ensure delivery

•Ministries will

play a

supporting role

to resolve

issues in

implementation

•EPU and MOF

to allocated and

disburse

necessary

public funding

•MIDA will

target and

attract foreign

and domestic

investors

•Solve issues

that arise and

support

implementation

•Bring necessary

parties together

to invest in EPPs

•Ensure

accountability

and monitory

delivery of

outcomes

•Provide an

annual report to

public

ETP Unit will work

with EPU to

facilitate delivery.

The ETP Unit

plays many roles

Allocating

Funding to

Achieve the

Highest Impact

•Prioritising

public funding to

NKEAs and

Highest Impact

EPPs

•Transparently

select owners

based on merit

•Disbursing

funds based on

performance

•Ongoing

funding and

capturing future

growth

opportunities

Performance

Monitoring and

Reporting

•Ensuring single

point

accountability for

each EPP (EPP

led by most

natural owners)

•Common

governance

structures

across NKEAs to

ensure

accountability

•Lead Minister

responsible for

overall NKEA

performance

34

ETP Forum

Economic Council

NKEA Steering

Committee

EPP / BO

owners

Semi-Annual

Weekly

Monthly

Year-round

PM Engagement with EPP Owners

/ Private Sector Owners on overall

update

Weekly monitoring & NKEA update

with dedicated sessions to problem

solve major issues

Problem Solving sessions at the

NKEA level led by Lead Minister.

Investment Committee jointed

led by MITI

Implementation of the EPPs / BO

Secretariat

Respective Ministries /

EPP owners

Investment

Committee

The current ETP governance structure takes place at all levels of

Government as well as in the private sector

35

3636


OF 10MP




PROGRAMMES

CONCLUSIONS

Malaysia is at a critical juncture in its development journey

At the same time, the

Government

recognises that what

got us here today

may not get us to

where we want

tomorrow, and thus,

we cannot adopt a Business-As-Usual attitude

Thus, the

Government has

come up with 5 major initiatives to transform the nation – 1Malaysia,

the NEM, the GTP, the

ETP and the Tenth

Malaysia Plan

Moving forward,

economic growth will be private-sector driven and

market-based, with

the Government committed in its role as facilitator

Malaysia has

advanced by leaps and bounds over

the past 40 years to

its current socio-

economic

development levels

today

The marathon ~ need to run faster to catch-up with the advanced economies . . .

37

ECONOMIC PLANNING UNIT

PRIME MINISTER‘S DEPARTMENT

MALAYSIA

http://www.epu.gov.my

+603-8888 3755+603-8872 3333

Prioritisation of 85 initiatives under 10MP into the three categories

Chapter 3: Environ.

for economic growth

22. Driving growth by urban

agglomerations

Chapter 4: Socio-

economic dev.

29. Strengthening Bumiputera

entrepreneurship to create

competitive businesses in high-

impact sectors

31. Promoting Bumiputera rep.

in high paying jobs through

enhanced capability building &

demand-side incentives

30. Broadening and increasing

Bumiputera wealth ownership to

ensure sustainability

Chapter 5: First-world

talent base

48. Attracting and retaining

talent

46. Making the labour

market more flexible

Chapter 6: Enhanced

quality of life

56. Transforming delivery

of the healthcare system

51. Strengthening

connectivity (increasing

broadband penetration)

Chapter 7: Transform

Government

83. Rationalising existing

Govt org. & structures

80. Increasing the role of

the private sector in

national investments &

delivery of public services

74. Devolving powers to

agencies at the frontline of

delivery

EPU-

supported

initiatives

Centrally-

guided

initiatives

Ministry-led

initiatives

1. Modernising biz. reg.

6. Shaping a supportive

ecosystem for innovation

24. NKEAs

7. Creating innovation

opportunities

4. Introducing Competition

legislation

21. Ensuring effective

sourcing and delivery of

energy

20. Continuing to upgrade

physical infra to enhance

access. & connectivity

2. Liberalising the services

sector

25. Raising income generation

potential of bottom 40% HHs

27. Strengthening social safety

net to reduce vulnerability of

disadvantaged groups

28. Addressing the needs of

special target groups with

integrated programmes

32. Ensuring basic infrastructure

is accessible to all

38. Strengthening the family

institution to overcome

challenges of modern living

33. Empowering women to

enhance their economic

contribution

44. Mainstreaming and

broadening access to

quality technical education

and vocational training

47. Upgrading the skills

and capabilities of the

existing workforce

45. Enhancing the

competency of tertiary

graduates to prepare them

for entering the labour

market

39. Ensuring every child

can succeed

59. Improving the quality of

human resource for health

60. Streamlining delivery

system for public housing

63. Managing water

endowment and supply

64. Investing in efficient

waste management and

public cleansing

70. Developing a climate

compatible growth strategy

for Malaysia

61. Providing high quality,

inclusive and sustainable

housing dev.

62. Promoting a healthy

and sustainable housing

industry

72. Designing efficient &

convenient svs for ppl & biz

76. Combating corruption

77. Enabling the outcome-

based approach

78. Shifting funding from

physical infra to soft infra

73. Adopting a more

consultative approach and

proactively seeking input

and feedback

85. Attracting, developing

and retaining top talent in

the public service

79. Strengthening Govt’s

role as policy-maker and

indpt regulator

15 initiatives 5 initiatives 4 initiatives 14 initiatives 4 initiatives

Next chart . . .

Chapter 3: Environment

for economic growth

3. Removing market

distortions by rationalising

subsidies

9. Increasing privatisation

and public-private

partnerships

19. Increasing broadband

penetration

5. Improving the interface

between Govt & business

23. Focusing corridors

around clusters

13. Building capacity &

capability

14, Supporting creation of an

entrepreneurial culture

15. Strengthening support

systems for SMEs

16. Enhancing access to

financing for SMEs

17. Competing in global mkts

18 Competing to attract

foreign investment & talent to

Malaysia

11. Achieving appropriate

balance b/w Govt, GLCs and

private sector

10. Establishing a facilitation

fund

8. Funding innovation

12. Reducing regulatory

costs borne by SMEs

Chapter 4: Socio-

economic dev.

37. Integrating persons with

disabilities into society

35. Ensuring the protection

and well-being of children

34. Molding youth to

become dynamic & inspired

future leaders

26. Assisting children in

bottom 40% households to

boost their education and

skills attainment

36. Supporting older

persons to lead productive

and fulfilling societal roles

Chapter 5: First-world

talent base

40. Holding schools

accountable for changes in

student outcomes

42. Attracting and

developing top talent in

teaching

43. Transforming the

effectiveness of delivery

41. Investing in great

leaders for every school

Chapter 6: Enhanced

quality of life

49. Building world-class

vibrant and livable cities

66. Strengthening efforts to

fight crime

68. Creating a safer and more

secure environment

65. Ensuring the reliability of

electricity supply

71. Enhancing conservation

of the nation's ecological

assets

67. Forging relationship

between police, public and

private sector

58. Shifting towards wellness

and disease prevention

57. Increasing quality,

capacity and coverage of

healthcare infra

53. Increasing inv. in transport

capacity

54. Promoting a seamless

system across modes and

operators

55. Establishing a robust perf.

monitoring and enforcement

regime

69. Providing more

transparency on performance

and perception

52. Driving transportation

regulatory and industry reform

50. Raising the quality of life

in rural areas

Chapter 7: Transform

Government

81. Systematically reducing

Government ownership and

control of non-core assets

75. Introducing Competition

& mkt mechanisms within

public services

82. Driving productivity to

ensure prudent use of

public finances

84. Building capacity in

organisations focused on

national priorities

Ministry-

led

initiatives

Next chart . . .

Prioritisation of 85 initiatives under 10MP into the three categories (continuation . . .)

Identify 85

initiatives in

10MP

Prioritise

initiatives

Categories

initiativesDevelop implementation plan

• Lead ministry/agency required to complete

templates and submit to EPU

• Input from relevant ministries / agencies to

be incorporated into implementation plan

Chapter

3

Chapter

4

Chapter

5

Chapter

6

Chapter

7

24 initiatives

14 initiatives

10 initiatives

23 initiatives

14 initiatives

EPU-supported:

11 initiatives

Centrally-

guided:

32 initiatives

Ministry-led:

42 initiatives

Prioritise initiatives

based on:

• Criticality of initiative

to the nation's

development

• Complexity of the

implementation of

initiative

Summarise all

initiatives in 10MP

by chapter

Initiatives prioritised

and bucketed into 3

categories

Prioritisation of

initiatives by

chapter

10275442-01-Presentation to NPDC 10Aug2010-JL-Draft-v4-RR.ppt

Implementation plan—Talent Corporation (I)Capture existing projects and detail areas not covered by existing plans

Define roles and

responsibilities of the

Talent Corporation

Define organization

structure and key

positions

Prime Minister's

Department

Prime Minister's

Department

Dec 2010

Feb 2011

Define the mission, vision and

strategic goals of the Talent

Corporation

Define the specific role of the

Talent Corporation in public sector

enablement and private sector

development support

Design the organization structure

and define the role mandates and

KPIs for key positions

OwnerOwnerTarget

date

Target

date Action planAction planMilestoneMilestoneExpected

outcomes

Expected

outcomes

Operating

model of the

Talent

Corporation

defined

Organization

structure, key

positions, and

KPIs defined

SAMPLE

Captured in existing plans Plan owners

PMO

BackupIllustrative – For discussion only2

PMO

Set initiative milestones

Highlight responsible owner

Develop detailed action plans

Agree on target deadlines

Determine target outcomes

–

+

– +

Completed by

project team1

Templates for lead

ministry/agency to fill2Alignment

with lead

ministry/

agency3

1

2

3

4

5

22

21

20

19

18

1716

15

1413

12

11

10

98

7

5

6

5

4

3

2

1

24

23

4321

–

–

Development of the 10MP Implementation Plan & Templates

41

ECONOMIC PLANNING UNIT

PRIME MINISTER‘S DEPARTMENT

MALAYSIA

http://www.epu.gov.my

+603-8888 3755+603-8872 3333

END OF LINKED SLIDES