2. 2 years have passed:
Rigorous execution and monitoring,
Progress updates, Problem Solving Meetings
TODAY
30 March 2010:
NEM was
announced by
YAB PM
25 October 2010:
ETP Roadmap
launched
3. Items we will go through today……
1 Quick recap of the ETP
2 Updates on NKEAs & SRIs
3 How our economy has performed
4 Challenges we have faced
4. World Bank classifies nation economies into 4 categories.
69 out of 212 countries (33%) are classified as high income
1 2 3 4
Low Income Lower Middle Upper Middle High Income
Income Income
GNI per capita : GNI per capita : GNI per capita : GNI per capita :
USD 1,025 or less USD 1,026 – USD USD 4,036 – USD USD 12,476 or more
4,035 12,475
36 countries 52 countries 54 countries 69 countries
Average GDP
growth (Asian) 6.9% 5.4% 5.2%* 3.9%
Examples : Examples : Examples : Examples :
• Mali • Indonesia • Malaysia • Singapore
• Bangladesh • India • China • USA
• Cambodia • Sri Lanka • Brazil • Switzerland
• Nepal • Vietnam • Turkey • Japan
• Tanzania • Ghana • Mexico • Israel
4
*Without China
5. Malaysia’s target of
becoming a
high income
USD 15,000
nation by 2020
USD 6,700
2009 GNI 2020 GNI
Target
Nominal GNI (USD)
6. Recap of how GNI target was derived
US$15,000
1 Took World Bank’s current in 2020
threshold for high income
economy
US$12,476
World Bank’s published
2 historical global inflation figure
2%
7. There are many components that will contribute to
the growth of our economy
Nominal GNI
RM billions
RM 1,733 bil
RM 376 bil
RM 359 bil
RM 337 bil
RM 661 bil
2009 GNI 1 Entry Point 2 Business 3 Growth in 2020 GNI
Projects Opportunities other Target
(EPPs) (BOs) sectors
11 Sector NKEAs
Source: NKEA Labs
8. To Become A High-Income Nation,
We Need:
COMPETITIVENESS & FOCUS
We Need “Enablers” We need “Drivers” to
To Ensure ensure focus on
Competitiveness high-impact areas
SRIs
SRIs NKEAs
51 Strategic Reform Initiatives 12 National Key Economic Areas
9. Two years of ETP = Vertical Take-Off
151% 101% 109% 138%
(73%) (92%) (86%) (86%)
Greater
Financial Oil, Gas & Business
KL/Klang
Services Energy Services
Valley
118% 11 Economic Wholesale 141%
Tourism
Sectors & Retail
(96%)
+ 123% (142%)
120% Education Greater (94%) Electrical &
108%
Electronics
(91%) Kuala Lumpur (81%)
Comms 2011 FY % Achievement
Palm Oil Healthcare
Agriculture Content & (2012 YTD% Achievement)
& Rubber
Infra
NKEA
119% 170% 98% 103%
Note: (110%) (83%) (76%)
YTD Oct 2012 % in brackets (106%)
10. 1 Quick recap of the ETP
2 Updates on NKEAs & SRIs
3 How our economy has performed
4 Challenges we have faced
11. SRI: Competition, Standards & Liberalisation
Competition
Act Remove Anti-Competitive
Agreements
X
Enforced on
1 January 2012
Remove Abuse Of A
Dominant Position
12. SRI: Competition, Standards & Liberalisation
Malaysia Has 6,260 Standards
But Less Than 10% Are Enforced
6,260 3,759 But 328
Malaysian Standards 60% Are Aligned With 5.3% Have Been Made
Have Been Developed International Standards Mandatory
MS developed in 2012 as of 30 October 2012 is 347 MS
No. of MS made mandatory in 2012: 8 MS
13. SRI: Competition, Standards & Liberalisation
17 sub-sectors announced in
Liberalisation Budget 2012 for liberalisation
15 sectors
fully liberalised:
Of Sub-Sectors Accounting/Taxation; Courier;
Dental Specialist;
Departmental & Specialty
Stores; Incineration; Int’l
Up to 100% Schools; Legal; Medical
Specialist; Private Hospital;
Private Universities; Skills
foreign equity Training; Telco ASP; Telco NFP
& NSP; Technical & Vocational
participation Schools;
Technical & Vocational
Schools (for special needs
will be allowed students);
14. SRI: Public Service Delivery
Approval of
Construction
22
Permits now steps
within 100 days
(previously 260 days)
10
steps
15. SRI: Public Service Delivery
Option 1: Counter Rating
Real Time
Performance
Monitoring
92 Police Stations
Option 2: in Selangor,
Will be extended
Send SMS to Nationwide
15888
16. SRI: Public Service Delivery
Results: Real Time
Performance
Monitoring
Total ratings: 102,919
88.4% 11.4%
(January – Oct 2012)
Very Satisfied 0.1% 0.1%
Satisfied Very
Unsatisfied
Unsatisfied
17. SRI: Public Service Delivery
Effective April 2012, rating services
also available at the places below:
Selangor Dewan
Immigration Bandaraya
Centres Kuala Lumpur
National
Perbadanan
Registration
Putrajaya
Department
SMS Rating Available
18. Human Capital Development
Minimum Wage HR Management in SMEs Project Flip - O&G NOSS
• PM announced minimum • 4,567 SMEs benefited from free • Leverage PETRONAS Skills Training
wage of RM900/RM800 on tailored HR solutions via (POSS) to develop National Skills
30 Apr 2012 interactive HR portal Training (NOSS) in 7 disciplines
• 6 months to implement • 7,301 SMEs benefited from HR • Enable technical-vocational training
post-gazette, 12 months for Capability Building Programme centres to deliver up-to-date, industry
micro-enterprises relevant skills training
Upskilling/Reskilling - NTEP Employment Act 1955 Up-skilling / Re-skilling – MyProcert
(Phase 1 & 2)
• Phase 1 of Employment Act • MyProcert programme launched on 11 Oct
• The National Talent Enhancement 2011 for BSvc & CCI
Programme (NTEP) was launched 1955 passed in Parliament
includes 28 amendments to the • 11 partners to date including SAP, Huawei,
covering 5 states/regions and 650 Oracle, iTrain, Scicom, SnT, National
placements across Malaysia for E&E current provisions, 17 new
provisions and 2 provisions Instrument, Autodesk
& BSvc (Green Tech) • 1,250 professionals targeted, 946 enrolled
• 347 trainees in companies repealed
• Phase 2 in progress • Catalytic to up-skill Malaysians to global
• Accelerate development of skilled certification standards
workforce through partnership via • Bill on raising minimum
industry attachment programmes retirement age to 60 passed on
28 June
20. NKEA: Greater KL
MRT Making Good Progress
Work Package Tender Status
Awarded In Progress To Be Called
24
53
(RM22.31b)
8
21. NKEA: Oil, Gas & Energy
Pengerang Integrated Petroleum
Complex (PIPC) Goes Beyond RAPID
ILLUSTRATIVE Total Potential
RM170+ billion of investment
PETRONAS RAPID Potential Investor B 22,000 acres of industrial area
RM60 billion RM30 billion
6,500 acres 4,000 acres
Refinery Refinery
Petrochemicals Petrochemicals
2016 commissioning
Light Industry
Heavy Industry
Heavy Industry
6,500 ac
4,000
ac
RAPID
2,000
ac
500 ac 2020 GNI and Job creation from Oil
DIALOG-VOPAK Potential Investor A & Gas investment in Pengerang
RM9 billion RM24 billion
500 acres reclaimed land 2,000 acres 2020 GNI
Total job
Petroleum Terminal Refinery impact:
creation
LNG Regasification Plant Petrochemicals RM17.7
2014 Phase 1 commissioning (future phase) Billion
8,500
22. NKEA: Palm Oil & Rubber
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.
Biogas Development
at Mills YTD 2012
Examples Of Completed Biogas Plants
Mills
57 Completed
Under
15 Construction
149 Planning
Stages
23. NKEA: Palm Oil & Rubber
Expediting growth in food and health based
segment – Tocotrienols and carotenes
10 R&D grants approved for clinical
trials on palm phytonutrients
RM29.2mil
Worth
*FY2011 + YTD2012
2 Worth
Business proposals approved to-
date on tocotrienol and carotenes
production RM24.3mil *FY2011 + YTD2012
• 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.
24. NKEA: Financial Services
Sukuk – Malaysia is still ahead!
70% of total
global sukuk
issuance
are from
Malaysia!
(Total Middle East:
approximately 25%)
25. NKEA: Financial Services
2 of 4 largest global IPOs in 2012
listed in Malaysia IPO
(USD Billion)
1 Facebook 16.0
2 Japan Airlines 8.5
3 Felda Global Ventures 3.3
IHH Healthcare 2.0
4
Source: News reports, ECM Analytics
26. NKEA: Electrical & Electronics
E&E is moving into higher value R&D activities
all along the value chain
Research and
Assembly Manufacturing
Development
Higher quality of jobs and higher GNI contribution for Malaysia!
These will enable the E&E industry to achieve RM90 billion in GNI
by 2020 and contribute an additional 157,000 jobs
27. NKEA: Electrical & Electronics
More manufacturing and R&D activities
Manufacturing
EPP Assembly R&D Activities Remarks
Activities
Infineon opened a new plant in Kulim. Silterra and MIMOS
1 Wafer fab
actively involved in R&D
Infineon and On-Semiconductors are expanding their R&D
2 Advanced packaging
activities
5 companies are expanding operations and 3 new companies
3 IC Design
are setting up
Penchem is heavily involved in R&D of advanced polymers.
4 Substrates
Ibiden is expanding their facility with Phase 2
5 Solar silicon producers Tokuyama is involved in manufacturing polysilicon substrates
Solar cell & wafer TS Solartech and Panasonic involved in manufacturing and
6
producers R&D of solar cells and wafers
HBE Gratings, Panasonic and Solartif involved in
7 Solar module producers
manufacturing and R&D activities
LED front-end
8 Osram is expanding their LED wafer fabrication plant
operations
9 Packaging & equipment Philips Lumileds expanded R&D and manufacturing facilities
6 local companies participating in a programme with SME
10 Local SSL champions
Corp to penetrate regional / global market
Agilent launched vendor development programmes with 3
11 Test & measurement
local companies to develop local capabilities
Wireless Smartag implemented an RFID tagging system with Royal
12
communications Customs
9 companies have obtained approvals to expand / diversify
13 Automation equipment
their operations via automation
Transmission &
14 Tenaga Switchgear is setting up a high power testing lab
distribution
Electrical home Pensonic is setting up a manufacturing hub and expanding
15
appliances their international distribution network
28. NKEA: Wholesale & Retail
Improving the Livelihood of more than
1000 Sundry Shop Owners - TUKAR
1,077 shops transformed ~30% average
revenue growth
since 2011 within several months
(519 in 2011 + 558 YTD in 2012)
post transformation of stores!
Before After
29. Items we will go through today……
1 Quick recap of the ETP
2 Updates on NKEAs & SRIs
3 How our economy has performed
4 Challenges we have faced
30. Steady Growth!
Real GDP Growth % (YoY) Country Q3 yoy
7.2 APAC consensus for 3.8
Malaysia (in Jan 2012)
5.1 5.3 Thailand 3.0%
Singapore 1.3%
South Korea 1.6%
Taiwan 1.0%
Hong Kong 1.3%
2009 2010 2011 9M 2012
-1.6
Real GDP Growth % (YoY)
Source: Department of Statistics
31. Encouraging total investment
growth until September 2012
RM127.9b
RM100.0b
RM112.2b
9M 2011
RM89.5b 9M 2012
RM66.1b
Target 2012
RM52.7b 25.5%
25.4%
Public Investment Private Investment
Note: Based on current prices
32. Private Outpacing Public Investment
120 Investment Growth
56.1%
100 57.0% 62.9% 22.5%
9M 2012
80 51.7%
43.9%
43.0%
60 48.3%
37.1%
40
20 12.2% FY 2011
Average 6.7%
0 2000-2010
2009 2010 2011 9M 2012 2012F
Public (RM b) Private (RM b)
Source: Department of Statistics, at constant prices
33. Gradual Reduction in Fiscal Deficit…
6.6%
5.6%
4.8% 4.5%
4% 3%
0% / Neutral
2009 2010 2011 2012* 2013 2015** 2020
target target target
As percentage of GDP (rebased figures)
* forecast
**2015 Target as per 10th Malaysia Plan
34. Malaysia is moving closer to the “Safe Zone”
Public debt (% of GDP), 2009*
200 Japan
Sovereign
crisis
levels
150 Malaysia
2011
Malaysia
Greece 2010 Target for
Singapore
Malaysia
2012
100
Safe zone
United Kingdom
India
50 USA Hong Kong
Spain Malaysia
Thailand
2009
Indonesia
-15 -14 -13 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1
Notes: Surplus / deficit (% of GDP), 2009*
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
Source: EPU, MOF, BCG analysis, Economist Intelligence Unit
35. Market capitalization is up at RM1.46 trillion
Bursa Malaysia hit historical high on 1 Nov 2012
FTSE Bursa Malaysia KLCI 1 Nov 2012:
Market Capitalisation
1,675.69pts
RM 1.46 trillion
1st November 2012
30%
RM340 billion
RM 1.12 trillion
Aug 2010
36. What Do The External Validators Say
About Our Economy?
38. FDI Confidence Rising
.
Source: AT Kearney Foreign Direct Investment Confidence Index®, 2012
39. World Bank Doing Business Report
Getting credit: #1 (unchanged)
World Bank
Protecting investors: #4 (unchanged) Doing Business 2013
Getting electricity: #28 from #59
#12
Registering property: #33 from #59
Paying taxes: #15 from #41 #18
Trading across borders: #11 from #29
Dealing with construction permits: #95 #23 #23
from #113
2010 2011 2012 2013
(n=183) (n=183) (n=183) (n=183)
Ahead of Sweden, Taiwan, Germany,
Japan & Switzerland
40. IMD World Competitiveness Yearbook
Institute for Management Development
World Competitiveness Yearbook 2012
#14 out of 59 countries globally
#4 amongst 13 Asia Pacific countries
#10
#5 of 29 economies with more than
20 million population #14
#2 after Taiwan among 29
economies with GDP per capita less
than US$20,000 #18 #16
Ahead of Australia, UK, South
Korea, Japan & France
2010 2010 2011 2012
(n=57) (n=58) (n=59) (n=59)
41. WEF Global Competitiveness Report
World Economic Forum
Global Competitiveness Report 2012 #25 out of 144 countries globally
#8 amongst Asia Pacific countries
#21 #2 in ASEAN
#24 Upgraded to transition stage
between efficiency-driven towards
#25 innovation-driven
#26
Ahead of Israel, Ireland & China
2009 2010 2011 2012
(n=133) (n=139) (n=142) (n=144)
42. CNN World's 10 Best Shopping Cities
#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
KL ranked #2 in Asia Pacific by the Greater KL are working!
Globe Shopper Index due to a large
number and variety of shops
43. ETP Progress since October 2010
2011 2012 Total
110 Projects 39 Projects 149 Projects
Investment: RM179.2 b
GNI in 2020: RM129.5 b
Jobs: 313,741
+ Investment: RM32.8 b
GNI in 2020: RM8.1 b
Jobs: 97,151
= Investment: RM212.0 b
GNI in 2020: RM137.6 b
Jobs: 410,892
44. 2012 Results Benchmarked Against Targets
Target = Target =
RM884 billion RM127.9 billion
100%
RM436 bil RM112.2 bil
(49%) (88%)
(Q2) (Q3)
Source: Department of Statistics,
GNI Private
(nominal figure)
Ministry of Finance Investment
2011 GNI per capita: $9,500 2011 GDP Growth: 5.1%
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
14 Countries, 52 participants
BFR Seminar
21 – 24 November 2011
Tanzania Russia Brunei Upcoming
4 – 5 August 2012 9 August 2012 4 Sept 2012 proposed visits
Sierra
Leone
Egypt
45
46. Case studies on ETP & GTP in
Ivy League Universities
Title: Economic Transformation: Title: TYING PERFORMANCE
All About Focus, Competitiveness, and MANAGEMENT TO SERVICE DELIVERY:
Execution PUBLIC SECTOR REFORM IN
Published: November 2012 MALAYSIA, 2009 – 2011
Author: Prof Diego Comin/Ku Kok Peng Published: July 2011
Author: Deepa Iyer
For download:
Not available for distribution or download http://www.princeton.edu/successfulsocieties/content/focusa
reas/CS/policynotes/view.xml?id=160
46
47. Items we will go through today……
1 Quick recap of the ETP
2 Updates on NKEAs & SRIs
3 How our economy has performed
4 Challenges we have faced
48. The ETP Scorecard KPIs
The Traffic Light Approach
<50%, Underperformed
Achieved 50% or more
100% or Exceeded Targets
48
49. 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
50. 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
51. 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.
52. This initiative is a part of EPP5 (Eco-Nature Integrated Resort Development) under the Tourism NKEA
Karambunai
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
52
53. This initiative is a part of EPP6 (Deepening E-Government) under the Communications Content & Infrastructure NKEA
TriCubes
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
53
54. This initiative is a part of EPP1 (Mature Technology Fabrication) under the Electrical and Electronics NKEA
LFoundry
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.
56. The ETP is an Evolving
Document
In the past 2 years,
Today, we have 152
ETP started out with some EPPs have been
131 EPPs in 2010 dropped, and some EPPs with 149 projects
new ones were added. announced to date.
EPPs : Entry Point Projects
57. We are on track to achieve GNI target for 2020
$15,000
17% $15,000
$9,500
$8,100
21%
$8,200
$7,455
$6,700
2009 2010 2011 2018 2020
Source: Department of Statistics
Projections: PEMANDU team Analysis
58. We also need to encourage more Malaysian
businesses to invest overseas!
• World's second-largest
hospital group by
market capitalisation;
• Hospitals present in
Net Factor many countries
Income including China, India,
From Hong Kong, Turkey,
Abroad Vietnam and Brunei
- RM 44.6 b
GNI • Consortium consists of SP
Setia, Sime Darby, EPF
• Gross Development Value
of RM50 billion (£8 bil)
RM 664.7b
CONSUMPTION RM446.9b (63%)
GDP
INVESTMENT RM166.5b (23%)
RM 709.3b TRADE RM92.6b (13%)
INVENTORY RM3.2b (1%)
Source : Bank Negara 2011 Figures (rebased)
59. 10 point evidence of success:
Currently there are 152 EPPs with 149 projects already
1 ETP is catalytic to the
announced with total committed investment of RM212
Malaysian economy
billion, RM137 bil GNI in 2020, creating 410,892 jobs
2 Healthy GNI increase From only US$6,700 in 2009 to US$9,700 in 2011 (45%)
7.2% in 2010, 5.1% in 2011, 5.3% up until Q3 2012. By
3 Strong GDP growth during comparison for Q3 year on year; Singapore is 1.3%,
global economic slowdown Thailand 3.0%, South Korea 1.6%, Taiwan 1.0%, Hong
Kong 1.3%
4 Record GDP/GNI ensured Ensured Govt achieve highest revenue in history (RM185
record Govt revenue bil in 2011)
5 Record private investment RM111.8 bil private investment , RM36.6 bil FDI, 2012 on
10-year high track to achieve better results
Continued…..
60. 10 point evidence of success:
6 Healthy domestic
7.3% growth in 2011 and 8.5% growth in 2012
consumption growth
FTSE Bursa Malaysia KLCI market capitalisation scaled a
7 Record stock market
new historic high on 1 November of 1,675.69 points
performance
(RM1.12 trillion market cap)
6.6% in 2009, 4.8% in 2011, while Govt strive to
8 Reducing fiscal deficit
constantly reduce the deficit further
World Bank’s Ease of Doing Business ranking (18 to 12);
9 Recognition from external
AT Kearny FDI Confidence Index (21 to 10), IMD World
parties
Competitive Ranking (16 to 14)
10 NKEA KPIs met/surpass 123% achievement in 2011, currently stands at 94%
targets (2012 YTD)
