malaysia‟s transformation...
TRANSCRIPT
Malaysia‟s Transformation Story:From Message to Passage
YB Senator Dato‟ Sri Idris Jala
Minister in the Prime Minister‟s Department &
Chief Executive Officer, PEMANDU
Invest Malaysia 2011
12 April 2011
PM introduced 4 strategic thrusts towards developed nation status
10th & 11th Malaysia Plan
People First Performance Now
1
• 6 NKRAs
• 29 MKRAs
2
4
• 12 NKEAs
• 131 EPPs
• 60 Biz Opps
3
The Connection
• Grow the economy
• Increase revenue
• Increase job / income
• Spend the revenue
based on rakyat needs
• Distribute the revenue
(RBI & LIH)
We must do both
We introduced 6 NKRAs
under the GTP based on
what the rakyat wants
Fighting
Corruption
Reducing
PovertyReducing
Crime
Enhancing
Education
Improving
Rural Basic
Infrastructure
Urban
Public
Transport
1 2 3
4 5 6
Big Results Fast in 12 months
250 pages of results…
Note : GTP Annual report 2010 can be downloaded at www.pemandu.gov.my
Crime rose for 3 years prior to GTP
Crime
Types of crime
Violent
crimes
Property
theft
2008
211,645
2007
209,582
2006
196,780
20091
209,825
▪ Robberies without firearms
▪ Gang robberies without firearms
▪ Robberies with firearms
▪ Gang robberies with firearms
▪ Assault
▪ Rape
▪ Murder
▪ Theft
▪ Snatch theft
▪ Motorcycle theft
▪ Car theft
▪ Van/lorry/heavy machinery theft
▪ Break-in (night)
▪ Break-in (day)
15% drop in
Index Crime
2009 2010
209,817
177,520
-15.4%
-32,297
2009 2010
38,030
24,837
-34.6%
-13,193
35% drop in
Street Crime
Crime
Hotspot-based deployment
Pre-NKRA
• 1 Contingent, 5
Districts
• 22 Balai’s (Stations)
• 501 Sectors
• 2,892 police officers
deployed for street
patrolling
• 1 Contingent, 5
Districts
• 22 Balai’s (Stations)
• 11 hotspots, eg
Pudu, Bukit Bintang
• 2,892 police officers
deployed to patrol at
hotspots
NKRA Approach
The Kuala Lumpur Story ILLUSTRATIVE
5.8 police officers
assigned to patrol Bukit
Bintang every day
263 police
officers assigned to
patrol Bukit Bintang
every day
Crime
192%improvement in
BET ridership
2.43 million
increase in
LRT ridership
U.P.T.
BET reduces travel times,
increases ridership
Current route
▪ Over 30 stops
▪ Passing through Federal
Highway
KL Sentral /
Pasar Seni
Sri Muda
Shah Alam
Federal Highway
Bus Expressway Transit
▪ Limited to 4 stops
▪ Using underutilised KESAS
KESAS Highway
Current
BETKESAS
Sri Muda – KL
Sentral
NPE
Subang mewah -
Sentral
Grand Saga
Kota Dsra - SentralPenchala
Sg Long -
Sentral
~ 75
Potential reduction in journey times
mins
~ 29
U.P.T.
The new Integrated
Transport Terminalat Bandar Tasik Selatan
completed…
500 southern buses will
terminate there
U.P.T
634 bus stops
completed and
refurbished
54,569 more children benefited
from 1,500 pre-school classes
(more than 700,000 in total)
9,814 schools
(primary & secondary) ranked
Education
Best UPSR exam
results in 4 years.
R.B.I
775km of rural roads
have been completed
35,291rural houses
with clean / water supply
16,926houses for rural poor build
& restored
27,209rural houses with
electricity supply
Touching the lives of more than
2 million peopleliving in the rural area
L.I.H
Hardcore Poor reduction by Month # of Ketua Isi Rumah (KIR)
99.76%Reduction in
hardcore poor
Dec
18,127
Nov
108
As of
31/12/2010
▪ Whistleblower Protection Act
came in to force on 15 December
2010
▪ Competitive tender as default
process
▪ 4,500 government contract
awards published on line (as
of 24th March)
▪ Compliance units established
in key law enforcement
agencies; joint training
conducted
▪ “Name-and-Shame” – 328
corruption offenders (including
picture, IC No) published in
MACC website to date
(www.sprm.gov.my)
▪ Implementation of Integrity
Pacts via Treasury directive, for
Government contracting
▪ Corporate Integrity Pledge
launched
▪ 18 new corruption courts for
speedy trials.
▪ Chief Justice’s circular to
complete all corruption cases
within 1 year
1
2
3
4
5
6
▪ Guidance issued on support
letters by KSN on 8 March
2010
7
CorruptionBuilding blocks against corruption
CorruptionHeading the right way…
P
P
P
1. TI Corruption Perception Index (CPI) Survey:Malaysia ranked 56th
4.5 (2009) to 4.4 (2010)
1. TI CPI constituent surveys shows improvement in 2010 vs. 2009
1
2
Corruption
Transparency
International
Global Corruption
Barometer survey
showed significant
improvement
28%(2009)
48%(2010)
Heading the right way…
International Panel Review
Committee
Endorsement on GTP Results 2010
1 2 Agreed Upon Procedure (AUP)
by independent auditor
Sir Michael Barber Partner, McKinsey UK; ex-Head of Prime
Minister‟s Delivery Unit (PMDU) of Tony Blair Administration
Michael HershmanCo-founder of Transparency
International; Current CEO of the Fairfax Group
Stephen SedgwickAustralian Public Service
Commissioner
Ravi
BalakrishnanIMF Resident
Representative, Singapore
Sergei DodzinSenior Economist, Asia & Pacific
Department – International Monetary Fund
Kwak Seung-Jun Chairman
Presidential Council for Future and Vision
• Full day workshop with NKRA
Ministries and PEMANDU
• Full day workshop with PM & Cabinet
Ministers
• Validation by Price Waterhouse
Coopers (PWC) on the achievement /
results of 6 NKRAs
GTP Performance 2010 for the 6
NKRAs showed positive results using
all the 3 methods….
Get it from the book
1 Urban Public Transport 100% 107% 107% 97% 97% 78% P
2 Crime 100% 168% 168% 100% 100% 90% P
3 Rural Basic Infrastructure 100% 91% 91% 88% 88% 75% P
4 Education 100% 156% 156% 99% 99% 90% P
5 Low Income Household 100% 79% 79% 79% 79% 63% P
6 Corruption 100% 121% 121% 90% 90% 78% P
120% 120% 92% 92% 79% P
Traffic
Lights 2
Score #3
(Yes, Partial, No)
Traffic
Lights 3
Overall composite scoring
No. NKPIs 2010
Target
Score #1 Traffic
Lights 1
Score #2
(max
100%)
Source : GTP Annual Report 2010
NKRA Overall Performance 2010 Method 1 Method 2 Method 3
2010
Budget
Actual
Expenditure(RM mil) (Nov 2010;
RM mil)
1 Urban Public Transport 100% 107% 107% 97% 97% 78% P 448 396 88%
2 Crime 100% 168% 168% 100% 100% 100% Y 338 258 76%
3 Rural Basic Infrastructure 100% 91% 91% 88% 88% 75% P 3,234 2,372 73%
4 Education 100% 99% 99% 99% 99% 88% P 245 118 48%
5 Low Income Household 100% 81% 81% 81% 81% 60% P 1,170 1,163 99%
6 Corruption 100% 126% 126% 92% 92% 80% P 8 4 52%
112% 112% 93% 93% 80% P 5,443 4,310 79%
No. NKPIs 2010
Target
Score #1 Traffic
Lights 1
Overall composite scoring
Traffic
Lights 3
Score #2
(max
100%)
Traffic
Lights 2
% of
Expenditure
Score #3
(Yes, Partial, No)
NKRA Overall Performance 2010 Method 1 Method 2 Method 3
2010
Budget
Actual
Expenditure(RM mil) (Nov 2010;
RM mil)
1 Urban Public Transport 100% 107% 107% 97% 97% 78% P 448 396 88%
2 Crime 100% 168% 168% 100% 100% 100% Y 338 258 76%
3 Rural Basic Infrastructure 100% 91% 91% 88% 88% 75% P 3,234 2,372 73%
4 Education 100% 99% 99% 99% 99% 88% P 245 118 48%
5 Low Income Household 100% 81% 81% 81% 81% 60% P 1,170 1,163 99%
6 Corruption 100% 126% 126% 92% 92% 80% P 8 4 52%
112% 112% 93% 93% 80% P 5,443 4,310 79%
No. NKPIs 2010
Target
Score #1 Traffic
Lights 1
Overall composite scoring
Traffic
Lights 3
Score #2
(max
100%)
Traffic
Lights 2
% of
Expenditure
Score #3
(Yes, Partial, No)
Saving to the Government = RM 1.133 billion
Source : GTP Annual Report 2010
GTP delivered 120% with 79%
expenditure
Lets now look at the Economic
Transformation Programme (ETP)
10th & 11th Malaysia Plan
People First Performance Now
• 12 NKEAs
• 131 EPPs
• 60 Biz Opps
• 6 NKRAs
• 29 MKRAs
2 3
4
NEM - 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
Overview of ETP
Gross National
Income (GNI)
• US$15,000 (RM48,000)
per capita GNI
• USD 523 billion (RM1.7
trillion) GNI
• 6% GDP growth per
annum
Jobs• 31.6 million
population
• 3.3 million
additional jobs
Investment
• USD 444 billion (RM1.4 trillion) investment
• 92% private, 8% public investment
• 73% domestic, 27% foreign direct investment
Transformational
Actions• 12 NKEAs
• 131 EPPs
• 60 BOs
• Transformational
approach
• Private sector-led
Target
15,000+
OthersNKEA 5NKEA 4NKEA 3 NKEA 2 NKEA 1
Current
7,000
GNI per capita
US$NKEAs (drivers)
Source: PEMANDU (with EPU)
SRIs (enablers)
Re-energising private sector
Competitive domestic economy
Strengthening public sector
Developing quality workforce
Transparent & Market Friendly Affirmative Action
Building knowledge base infrastructure
Enhancing sources of growth
Ensuring sustainability of growth
1
2
ETP = NKEA + SRI
Source: NEAC
Focus: 12 National Key Economic Areas
(NKEAs)
Competitiveness – Strategic Reform
Initiatives (SRIs)
51policy measures
14with natural homes
within the NKEAs /
NKRAs
37which are WIP and
require further
detailing out
Consolidate and monitor
the implementation plans
with the respective NKEAs
/ NKRAs
6 Labs covering the
following:
Intl Standards & Liberalisation
9 policies
Human Capital Development
9 policies
Public Finance
5 policies
Narrowing Disparities
(Bumiputera)
2 policies
Government‘s Role in Business
5 policies
Public Service Delivery
7 policies
1
2
3
4
5
6
ETP Governance Structure to ensure delivery
ETP Forum
Economic Council
NKEA
Steering
Committee
EPP / BO
owners
Semi-Annual
Weekly
Monthly
Year-round
Secretariat
Respective Ministries /
EPP owners
Lead
Ministries
Investment
Committee
Monthly
Round #1 (25 Oct 2010)
9 projects
Investment: RM5.3b
GNI: RM100m
Jobs: 13,100
Round #2(30 Nov 2010)
9 projects
Investment: RM8.2b
GNI: RM84.5b
Jobs: 70,500
Round #3(11 Jan 2011)
19 projects
Investment: RM66.8b
GNI: RM32.5b
Jobs: 52,400
Round #4(8 Mac 2011)
23 projects
Investment: RM14.75b
GNI: RM20.1b
Jobs: 88,354
ETP Updates by PM
60 Projects in 46 EPPs , RM95 billion investment
RM137.2 billion GNI , 224,354 jobs created
35% of EPPs are already off the
ground…
9 18
37
60
RM5.3 b
RM13.5 b
RM80.3 b
RM95 b
60 Projects in 46 EPPs , RM95 billion investment
RM137.2 billion GNI , 224,354 jobs created
Number of EPPs
4
2630
60 projects in 46 EPPs
RM 37.26 bRM 57.98 b
…worth RM 95 billion of
investment…
Shell Malaysia starts construction of new
RM800 million diesel processing unit, Port
Dickson
Part of RM5.1 billion commitment in 2011
including:
• Shell MDS wax plant expansion, Bintulu
• Gumusut Kakap deepwater
development, offshore Sabah
Tenaga Nasional signed agreement to build
coal-fired power plant in Manjung
• Part of RM4.0 billion commitment in
2011
• Engineering, procurement and
construction agreement with Alstom
Power System SA-led consortium
• Expected completion and
commission by March 2015
* Existing Shell MDS, Bintulu
* Existing 2,100MW Janamanjung power plant
Oil, Gas & Energy
Oil palm replanting & new planting
Replanting:
• 264 applicants approved covering 921 ha
• Commitment value: RM6.45 million (5 Apr)
New planting:
• 1,205 applicants approved covering 2,410 ha
• Commitment value: RM16.86 million (5 Apr)
Increasing FFB yield
4 cooperatives set up involving 11,492
smallholders and 59,039 ha
* Illustrative only
* Illustrative only
Palm Oil
Pulau Gaya Resort, Sabah:
• 14 of 31 rooms completed
• Overall, 35% completed
• Expected completion: 30 June 2012
Majestic Hotel, KL:
• Sub-structure completed, super-
structure construction in progress
• Overall, 23% completed
• Expected completion: December
2012
* Pulau Gaya Resort & Majestic Hotel site pictures
Tourism
TUKAR
• 16 stores transformed as at 1 Apr
2011
• Four sponsors are Mydin, Tesco,
Carrefour and SKM
Mydin
• Opened hypermarket in Bukit Jambul in
Jan 2011
• In total, 14 hypermarkets to be opened in
2011-2014
• Land for all 14 sites purchased for RM165
million
* A TUKAR store in Merlimau, Melaka
* Mydin Hypermarket, Bukit Jambul
Wholesale & Retail
Healthcare
University Malaya
Health Metropolis• The health planning and architecture design selection process have been
completed. The formal appointment of architects is expected by the end of
March.
• Traffic studies are expect to be completed by May 2011. Clinical
stakeholders will sign off on the schematic designs by June 2011.
• Submission to local authority for “Planning Permission" expected in end of
June 2011.
• Earthworks are targeted to begin in Nov 2011
• Tax incentive discussion started with MOF, expect to be gazetted as "Health
Metropolis" areas by Q3 2011.
Secured contracts with:
• Best Western Premier
Dua Sentral
• 4 Bangkok Hospital
Group hospitals
• Pullman Resort Bali
• Vietnam Post & Telecom
• KUBTel (for content
partnership)* Client properties
Communications Content & Infra
Cisco has commenced manufacturing of a
wide range of routing and switching products
at its manufacturing partner‟s facility in
Penang.
* A router component at the assembly station
AUU Sunpower
• Phase 1 of RM2.2 billion solar cell
fabrication facility in Melaka was
officiated by Prime Minister on 15
December 2011 and operational.
• When fully completed in 2013, it is
expected to produce cells capable
of generating 1,400 MW of energy
per year.
The Malaysia Education online portal will
be launched by Higher Education Minister
on 12 April 2011
• Six public higher education institutions
have been engaged, three more pending
• One private higher education institution
has been engaged
• Engagement with two government
agencies in progress
* AUO Sunpower plant in Melaka
E&E & Education
Source : Bank Negara 2009 Figures
Malaysia‟s GNI / GDP
GNI
GDP
Net Factor
Income From
Abroad
CONSUMPTION
INVESTMENT
INVENTORY
TRADE
RM 497 b
RM 521 b
- RM 24 b
RM 355 b
RM 111 b
- RM 14 b
RM 71 b
Consumer Confidence
on 4-year high…
Source : Neilsen Consumer Confidence Index
• Malaysia is at 9th place globally
• Ahead of Sweden and Vietnam
(both at 103), Thailand (102),
China (100), Hong Kong and New
Zealand (both at 99)
…and reflected in private consumption
RM 97.7b605,156
536,905
12.7%
Retail Sales Car Sales Property Sales
RM 71.7b
35%
Source: MRG 2010 & 2009 Source: MAA 2010 & 2009 Source: Valuation & Property
Svc Dept (Nov 2010 / Nov 2009)
8.4%
RM 77b
RM 71b
2011 investment target (RM 83 b) is
achievable…
76
50.6
127
EPPs &
others
Base Load
Private Investment - RM (Billion)
Potential /
Planned
At 90%
= RM 114 b
At 80%
= RM 101 b
At 70 %
= RM 89 b
Probability of
Success
Source : PEMANDU Analysis
RM1.169 t
Trade is up too..
2010/2009 Trade
RM 988.24 b
18.3%
Source: MITI
Bursa Malaysia closed at a
record high on 7 January 2011
1,572.21 pts
It shows
Malaysia is ...
131 EPPs & 60 BOs to „subscribe‟…
Source : Economic Transformation Roadmap book
You can participate too…
Engage
Government early
with your project
proposal
Robust
investment
analysis &
business case
Proper
follow-up
meetings
1 2 3
A high-level pitch
to Government
should contain:
Clear analysis of how
the project addresses
the issues and
opportunities
Clear high level
estimate of potential
GNI and employment
impact
Clear articulation of
support you need from
the Government.
3 steps
to become
an ETP
project
If Government expresses
interest, a detailed
analysis which provides a
robust estimate on the
project‟s impact on
GNI, employment and
investment.
The appropriate
PEMANDU NKEA
director will assist to
facilitate the project.
These include meetings
with various ministers
and ministry officials
These project
meetings are
important:
To secure the
necessary support;
To facilitate fast and
successful
implementation
To resolve any issues
or roadblocks
Message to Passage..
120% achievement Progress is on track
R R
Thank you