On Track:Government & Economic Transformation Update

Updated as at 1 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

The GTP is

already delivering

results in

12 months... (January – December 2010)

15% drop in

Index Crime

Jan-Dec

2009

Jan-Dec

2010

209,817

177,520

-15.4%

-32,297

Jan-Dec

2009

Jan-Dec

2010

38,030

24,837

-34.6%

-13,193

35% drop in

Street Crime

Crime

14,222 police officers

mobilised into

50 hot spots

496CCTVs

installed at

12 PBTS

753Balai Police

Ranked & awarded

15,542police / jungle police

officers redeployed

Crime

358,811Rakan Cop members

(public)

were activated

4,979RELA & JPAM

members were

deployed to the hotspots

192%improvement in

BET ridership

2.43 million

increase in

LRT ridership

U.P.T.

54,569 children

are benefiting from

1,500 pre-school

classes

9,814 schools

(primary & secondary)

have been

ranked

Education

70% schools in Band 6 and 7

(145 out of 209 primary schools)

achieved

40% improvement in UPSR Results

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

4464337,156 36,230 34,537 32,049 29,792 27,007 25,218 23,586 22,878 21,060

Baseline Jan Feb Mac Apr May Jun Jul Aug Sept Oct 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

Corruption

No SurveyScore

(2009)

Score

(2010)

1 IMD World Competitiveness Report 5.2 6.3

2 Political Economic Risk Consultancy (PERC) Report 3.6 4.6

3 World Economic Forum (WEF) Report 4.5 4.6

4 Economic Intelligence Unit (EIU) Report n/a 3.3

5 Global Insights (GI) Report n/a 3.4

6 BF Report 4.5 n/a

Heading the right way…

P

P

P

1. TI Corruption Perception Index (CPI) Survey – Malaysia ranked 56th

4.5 (2009) to 4.4 (2010)2. 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…

PM introduced 4 strategic thrusts towards developed nation status

10th & 11th Malaysia Plan

People First Performance Now

• 12 NKEAs

• 131 EPPs

• 60 Biz Opps

1

• 6 NKRAs

• 29 MKRAs

2 3

4

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

Focus

1,000-person workshop selected…

1,000+ movers and shakers (CEO & top leaders) from

200+ MNCs, GLCs, SMEs & Ministries & Govt agencies

Comms Content &

Infra

12 National Key Economic Areas (NKEAs)

11 Economic

Sectors

+

Greater KL/

Klang Valley

Wholesale

& Retail

Oil, Gas &

Energy

Palm Oil

& Rubber

Healthcare

Financial

Services

Greater

KL/Klang

Valley

Agriculture

Tourism

Education

Electrical

& Electronics

Business

Services

500+ member lab from 210 companies, 13 NGOs &

32 government agencies

Increase GNI per capita from USD6,700 to

USD15,000 by 2020

Identify projects to achieve the above target

Ensure the projects are mainly privately

funded

Ensure more job creation and shift towards

higher income bracket

NKEA Lab objectives

1

2

3

4

• An extract of 12 Lab Reports

• A detailed description of 131

Entry Point Projects and 60

Business Opportunities

Output of the labs

12 NKEA

Labs

• 500 lab members from 200+

companies participated full time

for 9 weeks

ETP is a

Programme

• Projects

• Action items

• Timeline

• Project owner

• Targets

Not a Plan

• Strategic intent

• Strategic plan

• Blueprint

• Strategy document

Competitive

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

SRIs to raise competitiveness

Source: NEAC

Anchored

on KPIs

Anchoring KPIs…

1 Define your

True North

2 Communicate

the True North

3 Ask always,

„Does it move

the needle?‟

188

523

USD billions

Nominal GNI

Incremental GNI impact of

~USD 250 billion by 2020

112

2020 GNI

Target

Entry Point

Projects

(EPPs)

Growth in

other

sectors

138

2009 GNI Business

Opportunities

(BOs)

11 Sector NKEAs

1 2

86

3

2020 GNI

per capita:

USD 15,000

CAGR

~6%

SOURCE: NKEA Labs Week 8 Templates

1 Includes multiplier effect from EPPs

2 Including USD 10 billion from oil price adjustment into OGE

3 Overall GNI impact is counted only for 11 Economic sectors – Greater KL not included to avoid double-counting

121.8

9.1

10.4

11.1

11.9

16.8

17.8

20.9

34.1

39.2

41.8

45.812 19.2 7 19.12

10 10.2 6 24.8

8 14.7 4 23.3

15 12.8 1 14.1

12 8.9 4 8.9

8 10.7 9 6.1

11 11.0 4 4.3

10 5.1 4 3.7

6 6.4 5 4.6

13 5.9 4 4.5

10 59.7 1 62.1

Oil, Gas & Energy

Financial Services

Palm Oil &

Rubber

Wholesale &

Retail

Tourism

Business

Services

E&E

Comms Content

& Infrastructure

Healthcare

Education

Greater KL/KV

Agriculture 16 5.6 11 1.1

NKEA

Total Expected

Incremental GNI Impact1

USD billions

Number

of EPPs

Expected

Incremental

GNI Impact

USD billions

Number of

Business

Opportunities

Expected

Incremental GNI

Impact

USD billions

131 EPPs & 60 Business Opportunities

144

1515

1818

2427

31

72

144

523

38050

54

55

Total Nominal GNI1 by Sector in 2020

USD Billion

NKEAs will contribute 73% of total GNI in 2020

Health-

care

CCIEdu-

cation

Biz

Svcs

E&ETourism Others2 2020

GNI

Agri-

culture

W/sale

& Retail

Palm

Oil &

Rubber

Fin.

Svcs

Oil,

Gas &

Energy

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

A total of

3.3 million

additional jobs will be created

by year 2020...

Shift towards higher income

2020 Projected Salary Distribution

Number of jobs, millions

Salary bracket 1

0.60.2

3.7

4.7

2.8

1.3

4.6

3.3

0.3

1.2

2.32.9

2020

(Projected)

2009

< RM 750 RM 750 –

RM 1.5k

RM

1.5k –

RM 3.k

RM 3k –

RM 5k

RM 5k –

RM 7.5k

> RM

7.5k

Low Income Middle Income High Income

46% of new jobs created require

vocational and diploma

Source : NKEA Education (PEMANDU)

PhD

0.1

Masters/

Professional

0.2

Degree

0.7

Diploma

0.7

Vocational/

Certificate

0.8

Unskilled

0.7

Million Jobs by 2020

92% of investment from the private sector (USD410b)

EPPs

100% = USD 444 billion

60%USD266b

32%USD144b

8%USD34b

Public

Private

(GLC)

Private

(non-GLC)

73% of

private investment

from Domestic Direct

Investment (DDI)

A Quick Recap

Transformational

Actions Jobs

Investment

Gross National

Income

(GNI)

• 12 NKEAS

• 131 EPPs

• 60 BOs

• Transformational

approach

• Private sector-led

• USD 444 billion (RM1.4 trillion) investment

• 92% private investment

• 8% public investment

• 73% domestic direct investment

• 27% foreign direct investment

• 31.6 million

population

• 3.3 million

additional jobs

• US$15,000 (RM48,000) per

capita GNI

• USD 523 billion (RM1.7 trillion)

GNI

• 6% GDP growth per annum

Discipline

of Action

ETP Governance Structure is key

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(s). Investment Committee

headed by MITI; MIDA will also be

involved.

Implementation of the EPPs / BO

Secretariat

Respective

Ministries / EPP

owners

Lead

Ministries

Investment

Committee

Monthly

Catalytic &

Transformational

EPPs are

catalytic

GNI Target (USD 15,000 per capita)

Entry Point Projects (EPPs)

Business Opportunities (BOs)

Unidentified / Other Unknown Projects

Transformational:

Changing the „being‟ by „doing‟

Being(“Character”)

Doing(“Action”)

Performance

Now

Our PM launched the

ETP Roadmap on 25 October 2010

Private sector interest is gaining momentum…

No of EPPs

(25 Oct 2010)

No discussion

Early discussions

Active engagement

Close to commitment

Named investor(s);

Serious commitment

Categories

No of EPPs

(18 Mac 2011)

21

25

28

34

23

Rating

Total 131131

7

12

34

51

27

Round #1

(25 Oct 2010)

9 projectsInvestment: RM5.3b

GNI: RM100m

Jobs: 13,100

Round #2

(30 Nov 2010)

9 projectsInvestment: RM8.2b

GNI: RM84.5b

Jobs: 70,500

Round #3

(11 Jan 2011)

19 projectsInvestment: RM66.8b

GNI: RM32.5b

Jobs: 52,400

60 Projects in 46 EPPs

RM95 billion investment

RM137.2 billion GNI

224,354 jobs created

Round #4

(8 Mac 2011)

23 projectsInvestment: RM14.75b

GNI: RM20.1b

Jobs: 88,354

ETP Updates by PM

35% of EPPs off the ground

0

10

20

30

40

50

60

ETP Update #1

ETP Update #2

ETP Update #3

ETP Update #4

New Projects

Cumulative Projects

918

37

60

RM5.3 b

RM13.5 b

RM80.3 b

RM95 b60 projects in 46 EPPs

Total Investment: RM95 b

Total GNI: RM137.2 b

Total Jobs: 224,354

Malaysia‟s largest

prospectus is…

No. EPP2020 GNI

(millions)Jobs

Palm Oil

87 Accelerate the replanting of oil palm 4,612.0 NA

88 Improve fresh fruit bunch yield 10,172.7 1,600

89 Improving worker productivity in plantations and estates 1,692.4 (82,500)

90 Increasing the oil extraction rate 13,711.1 10,000

91 Developing biogas facilities at palm oil mills 2,934.0 2,000

92 Developing oleo derivatives 5,813.5 5,858

93 Commercialising second generation biofuels 3,261.5 1,044

94 Expediting growth of food and health-based downstream segments4,924.7 74,942

Communications Content and Infrastructure

95 Ensuring broadband for all 2,160.5 7,155

96 Extending reach 2,688.5 3,135

97 Offering a smart network 1,665.7 4,186

98 Extending the regional network 2,289.8 1,220

99 Connecting 1Malaysia 1,783.1 2,056

100 Deploying 1Malaysia payments 1,005.9 1,478

101 Nurturing ‟s creative content 3,081.9 10,326

102 Launching e-Healthcare 1,402.5 250

103 Establishing e-Learning for students and workers 1,487.3 800

104 Deepening e-Government 1,100.1 1,000

Tourism

105 Developing the world‟s first eco-nature integrated resort in 706.6 7,733

106 Designating KLCC-Bukit Bintang as a vibrant shopping precinct 1,159.2 14,546

107 Establishing three new premium outlets in 875.2 1,500

108 Declaring as a global biodiversity hub 1,486.9 2,919

109 Positioning as a duty free shopping destination for tourist goods 7,838.3 64,294

110 Creating a straits 1,758.2 9,713

111 Targeting more international events 426.7 8,036

112 Establishing dedicated entertainment zones 740.4 5,614

113 Developing local expertise and better regulating the spa industry666.2 5,644

114 Establishing as a leading business tourism destination 3,947.0 16,720

115 Improving rates, mix and quality of hotels 5,528.7 64,424

116 Enhancing connectivity to priority medium-haul markets 3,310.5 13,402

No. Business Opportunities2020 GNI

(millions)

Jobs

Palm Oil

48 Upstream developments (organic growth)13,986.0

0

49 Downstream investments (organic growth)3,496.0

26,489

50 Biodiesel expansion (organic growth)493.1

2,131

51 Organic growth (inflation effect)5,324.0

0

Communications Content and Infrastructure

52 Mobile services development1,128.5

5,788

53 Fixed services development541.3

3,250

54 Courier, post and broadcast services development500.9

7,563

55 Net regional transfer services development1,480.6

664

Tourism

56 Organised tours293.8

7,447

57 Food and beverage outlets1,114.7

9,608

58 Taxi industry222.9

44,994

59 Baseline growth7,297.7

220,610

131 EPPs & 60 BOs to ‘subscribe’…

How you can participate…

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