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M A L AY S I A 2 0 0 8 : P R O G R E S S R E P O R T A N D M A N I F E S T O

My fellow Malaysians, It has been four years since you last gave Barisan Nasional a strong mandate to govern. Over that time, we have worked hard to deliver on our promises to the people and ensure that all our decisions were fair and beneficial to everyone in this country we call home. Strong economic management and a commitment to ensure no one will be left behind have put Malaysia on a solid footing. Our economy grew by 6.3%* in 2007, the best it has performed since 2004, our fiscal deficit was brought down to 3.2% of gross domestic product, international trade crossed the RM1 trillion mark, some 1.3 million job opportunities were created, our stock market hit historic highs and five strategic corridor developments were launched. We have also brought down poverty rates significantly, closed the urban-rural gap and ensured a good quality of life for the people, particularly for the lower-income groups. What should be noted is that we have hit these targets during
* Latest estimate

challenging times, with global oil and food prices at record levels. Seeds of change have also been planted in many areas. The National Mission was introduced to focus our efforts on achieving Vision 2020 and beyond. Education remains a key priority, as reflected by record investment and two new blueprints to improve access and raise standards. We have also made strides to make our institutions more robust namely, the civil service, the police force and Government-linked companies. Malaysia continues to play an active role on the international stage, building bridges throughout the globe. At home, we are reminded of the hard work, fairness and wisdom required to strengthen national unity in a young country like ours. But we are determined to ensure that everyone has a place under the Malaysian sun. Last year, we celebrated the 50th anniversary of our independence as one nation going forward, and reflected together on the next 50 years and beyond. Clearly, progress has been made on many fronts, but there is

still work to be done in a number of areas. For example, our fight against corruption and crime is ongoing. Be assured that Barisan Nasional will not be left wanting in our commitment to finish this fight. Rising oil prices and other significant international events could also affect our own domestic economic landscape. But we stand ready to anticipate, preempt and take measures to safeguard the well-being of the people, whatever the challenge. This confidence is borne out of the fact that the Barisan Nasional I lead is tried and tested. We understand the needs of the people and have delivered on our promises over the years. We also know how to take this nation forward. We have a vision and a mission to make Malaysia glorious. We need your support on March 8. Only by working together can we make Malaysia more secure, peaceful and prosperous, for present and future generations. Abdullah bin Haji Ahmad Badawi Chairman of Barisan Nasional

SE C U R I T Y

PE AC E

P R O S PE R IT Y

2004-2007

GDP grew by 18% from RM427 billion to RM504* billion All sectors showed growth, including new areas such as modern agriculture, biotechnology and Islamic financial services. Visit Malaysia Year 2007 achieved a record 21 million tourist arrivals International trade grew 26% from RM881 billion to RM1.11 trillion Household incomes rose from monthly average of RM3,249 to RM3,617 Maintained price controls on essential items and expended RM43.4 billion in subsidies (2007) to mitigate rising costs Created over 1.3 million job opportunities GLC Transformation programme led to better profits and higher returns to unit trust holders and EPF contributors

ECONOMY

OUR PROGRESS:
DELIVERED SUSTAINABLE, BROAD-BASED GROWTH

More than 204,000 SMEs nurtured since 2005 with RM107 billion worth of loans disbursed and 402 programmes implemented Launched 5 Development Corridors to catalyse and spread growth to all parts of Malaysia Kuala Lumpur Composite Index rose above historic highs; stock market capitalisation increased 161% from RM460 billion (2003) to RM1.2 trillion (2007) Budget deficit reduced from 5.0% (2003) to 3.2% of GDP (2007) International reserves rose 130% from US$44 billion to US$101 billion Ranking in WEFs Global Competitiveness Index improved from 25th (2005) to 21st position (2007)
* Latest estimate

Raise the nations productivity, income and competitiveness levels Cushion the effects of rising prices and ensure quality living standards for the people Strengthen private sectors role as the main driver of economic growth Nurture and assist 1 million SMEs and entrepreneurs over 5 years Generate at least 2 million quality job opportunities over 5 years Reduce the Budget deficit further more funds for development, without increasing taxes Follow through on 5 Development Corridors to bring equitable growth, investment and job opportunities to all parts of Malaysia

OUR PROMISE:

S E CUR IT Y

PE AC E

PR OS PERITY

2004-2007

BALANCED

OUR PROGRESS:
NARROWED THE GAPS
Reduced hardcore poverty from 1.2% of population to 0.7%; reduced overall poverty from 5.7% to 3.5% Reduced rural-to-urban income ratio from 1:2.11 to 1:1.99, exceeding the 2010 target

DEVELOPMENT

Eradicate hardcore poverty and bring the overall poverty rate down to 2.8% by 2010 Increase quality rural jobs and incomes Improve services and facilities for low-income urban households including rural to urban migrants Improve provision of quality and affordable housing Ensure access to modern quality healthcare Upgrade urban public transport and reduce traffic congestion Enhance road development in rural and other less developed areas Upgrade rail and aviation infrastructure Improve rural electricity coverage in Sabah to 81% and Sarawak to 90% by 2010

Improve water supply coverage to 70% in both Sabah and Sarawak by 2010 Continue to close the digital divide and improve broadband internet penetration via the National Broadband Plan Continue to implement the New Villages Development Masterplan Equitable distribution of quality opportunities in income generation, employment, business and education to all parts of Malaysia. Towards this end, the Kelantan Baru, Kelantan Maju initiative will deliver development and better quality of life to people in the state

OUR PROMISE:

Increased agriculture incomes; e.g. padi farmers mean monthly income increased 27% to RM1,549; rubber smallholders increased 34% to RM1,727 Delivered 178,000 low-cost homes Opened 14 new hospitals, 22 new Klinik Kesihatan and 64 new Klinik Desa Expanded electricity supply to over 74% in Sabah and 83% in Sarawak Built 12,190km of village roads Built 3 new airports, including a low-cost terminal, and upgraded 5 existing airports

SE C U R I T Y

PE AC E

P R O S PE R IT Y

2004-2007

EDUCATION

OUR PROGRESS:
ENHANCED ACCESS AND STANDARDS

Launched the Education Blueprint 2006-2010 and the Higher Education Strategic Plan to raise education standards Expanded Skim Pinjaman Buku Teks to all primary and secondary school children Removed school and examination fees Allocated RM3 billion for scholarships and essential items to lower-income group students Provided RM12 billion to improve rural schools Raised special allowance for 12,000 teachers and teaching assistants serving in rural areas Allocated RM174 million for fully-aided Chinese primary schools and RM65 million for fully-aided Tamil primary schools under the 9th Malaysia Plan Allocated RM100 million for partially-aided Chinese and Tamil primary schools under 9th Malaysia Plan

Ensured at least one public university or one UiTM branch in every state Expanded community colleges from 34 to 53, doubling enrolment to over 115,000 Increased number of JPA undergraduate scholarships at local universities from 5,000 to 10,000 annually; raised allowance for JPA students in overseas universities Raised investment in science R&D, including sending the first Malaysian into space

OUR PROMISE:

Raise teachers minimum qualifications and provide more training opportunities Continue to make national schools the school of choice by, among others, expanding the teaching of Mandarin and Tamil Safeguard the position of national-type schools Enhance national unity by fostering student interaction Provide more scholarships at the undergraduate level for poor but deserving students regardless of race Identify apex universities and provide more autonomy and resources for public institutions of higher learning to attain world-class standards Raise investment in science and technology particularly in indigenous R&D

SE C U R I T Y

PE AC E

P R O S PE R IT Y

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2004-2007

OUR PROGRESS:
MAKING THE POLICE MORE DYNAMIC

LAW & ORDER

Established the Royal Commission to Enhance the Operation and Management of the Police, leading to over 85% of the Commissions proposals being carried out Increased salaries of Police and armed forces personnel by 9 to 42% Doubled development allocation in 9th Malaysia Plan to RM3.8 billion and allocated an additional RM5 billion in PFI funding to modernise the Police Increased recruitment of Police personnel, brought back newly-retired Police officers, set up more Police stations and expanded use of CCTVs

Launched more intensive Police surveillance and operations in Kuala Lumpur, Selangor, Penang, the Kinta Valley and the Iskandar Development Region Established an Independent Commission in response to public concern on Police body search procedures Raised road user awareness and enforcement, notably reducing injuries and deaths per population from road accidents

OUR PROMISE:
Bring down the countrys crime index Tackle drug abuse and other social ills Address the issue of illegal immigrants Add 60,000 Police personnel by 2011 Set up more than 150 new Police stations and beat bases to increase presence in more neighbourhoods Improve safety in schools, playgrounds and public areas

Enhance community policing via partnerships with non-governmental organisations, the private sector and local community Upgrade Police communications technology, armaments, vehicles, technical aids and training Focus Police operations and resources in crime hot-spots across the country Redelineate Police districts to better match Police resources with community security needs

SE C U R I T Y

PE AC E

P R O S PE R IT Y

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BARISAN NASIONAL

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A GOVERNMENT THAT CARES

2004-2007
LIGHTENED THE BURDEN OF PRICE INCREASES

Spent RM16.2 billion in petrol, diesel and gas subsidies, and RM18 billion in lower gas prices for industry and electricity generation (2007) Committed RM9.2 billion in other subsidies, from fertilisers to tolls to tuition vouchers (2007) Spent RM331 million in electricity tariff subsidies in 2006 and 2007 Maintained price controls on essential goods Removed school and examination fees Expanded Skim Pinjaman Buku Teks to all primary and secondary school students Maintained government clinic consultation fees at RM1 Built more low-cost houses; maintained rents at RM100-300 a month Reduced cost of purchasing homes by up to RM2,000 by cutting stamp duty Reduced Road Tax

INCREASED DISPOSABLE INCOME

Increased salaries and COLA for civil servants, police and armed forces amounting to RM8 billion per year Increased special allowance by as much as RM1,500 for teachers and teaching assistants serving in rural areas amounting to RM187 million in total allowances per year. Higher Employees Provident Fund/Bank Rakyat/Lembaga Tabung Angkatan Tentera/Lembaga Tabung Haji/Permodalan Nasional Berhad dividends thanks to GLC Transformation and a healthy economy Tax relief on purchase of books increased from RM700 to RM1,000 per year Tax relief of up to RM4,000 for each child studying in tertiary institutions

ENSURED NO ONE LEFT BEHIND

Allocated monthly school allowance for 1.5 million deserving students Increased maximum monthly assistance per poor household from RM350 to RM450 Awarded automatic scholarships for top-scoring students from families earning less than RM1,500 monthly to pursue tertiary education Doubled monthly allowance for disabled students from RM25 to RM50 Increased disabled workers monthly allowance from RM200 to RM300 Tax relief of RM5,000 for each disabled child

Tax relief for disabled taxpayers increased from RM5,000 to RM6,000 Issued additional RM2 billion bonds for pensioners Issued RM1.75 billion Merdeka bonds for pensioners Made one-off payment to 542,000 pensioners of between RM200 and RM400 Monthly assistance for the elderly increased from RM135 to RM200

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2004-2007

PUBLIC SERVICES

OUR PROGRESS:
MOVING TOWARDS WORLD-CLASS LEVELS

OUR PROMISE:

Automatic refunds for overpaid income taxes; refunds paid within 14 to 30 days for online tax submissions Passports issued within 3 hours at major Immigration Department branches MyKad issued within 24 hours at major National Registration Department branches Cleared 70% of backlogged land cases via flying squads Reduced time taken for payments to government contractors and suppliers to 14 days One hour to register businesses and 15

minutes to renew business registrations

One-stop centres at local authorities to reduce time to approve building plans Replaced Certificate of Fitness for Occupation (CFO) with industry-issued Certificate of Completion & Compliance (CCC) Set up PEMUDAH, a public-private task force to reduce the cost of doing business in Malaysia Increased civil service salaries, reintroduced cost of living allowance and allocated more than RM6 billion for government quarters

Speed up implementation of e-government initiatives Complete overhaul of all land offices and district offices Speed up issuance of licences and permits Establish rating system for local authorities to improve performance

Tie civil servants' promotions, rewards and penalties more closely to performance targets Increase ethnic diversity in the public sector Have a 3 to 7-day response time by all government agencies to all public queries and complaints

SE C U R I T Y

PE AC E

P R O S PE R IT Y

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2004-2007

REDUCING CORRUPTION

AND IMPROVING GOVERNANCE

OUR PROMISE:

OUR PROGRESS:
CREATING FIRST CLASS INSTITUTIONS

Raised awareness of fighting corruption, leading to a 25% increase in number of reports lodged (2003-2007) Increased number of corruption-related arrests by 72% from 318 arrests (2003) to 546 arrests (2007) Increased conviction rate for corruption-related cases from 50% (2004) to 74% (2007) Doubled the Anti-Corruption Agency (ACA) operating budget to RM154 million and committed RM372 million for development under the 9th Malaysia Plan Increased the number of ACA officers

including specialists such as forensic auditors, and established the ACA Academy

Launched the National Integrity Plan and established the Malaysian Institute of Integrity Established and enhanced 8 Parliamentary Select and Special Select Committees to increase checks and balances Enhanced transparency and accountability in the annual Auditor-Generals Report Established a Commission of Inquiry into the video clip of alleged interference in judicial appointments

Continue to enforce anti-corruption measures without fear or favour Strengthen monitoring and enforcement by agencies such as the ACA, Customs, Inland Revenue and local authorities Establish an effective Special Complaints Commission to act on complaints of misconduct in enforcement agencies Continue to foster a culture of integrity and high ethical standards through the National Integrity Plan

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PE AC E

P R O S PE R IT Y

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RELIGION, UNITY
2004-2007

OUR PROGRESS:
BUILDING BRIDGES, DEEPENING THE FAITH

Established 10 principles of Islam Hadhari, an approach of progressive Islamic civilisation Upgraded Islamic education in schools by introducing the Jawi-Quran, Arab and Fardu-Ain (J-QAF) Programme Improved welfare of religious officers, including provision of RM450 allowance for imams Maintained cost of Haj pilgrimage despite rising prices

Guaranteed the right to worship for all Malaysians Develop guidelines that ensure the provision of reserve land for places of worship of all communities in newly developed areas Encouraged inter-faith understanding via forums such as the National Unity Advisory Panel Promoted inter-ethnic unity via the School Integration Programme and National Service Training Programme

Build a better understanding of Islam among Muslims and non-Muslims through Islam Hadhari Enhance appreciation for diverse cultures among Malaysias multiethnic people Expand the teaching of J-QAF to more schools Ensure provision of reserve land for places of worship in newly developed areas in accordance with developed guidelines Facilitate construction, consolidation and relocation of all places of worship via state government mechanism, co-ordinated at

federal level, that will protect the interests of all communities

Increase dialogue on inter-faith issues through the Department of National Unity and National Integration Improve unity programmes, especially in schools and institutions of higher learning

OUR PROMISE:

SE C U R I T Y

PE AC E

PR O S PE R IT Y

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2004-2007

OUR PROGRESS:
DEMONSTRATED STRONG MALAYSIAN LEADERSHIP

Showed steady leadership in the Non-Aligned Movement (NAM) and the Organisation of the Islamic Conference (OIC)

FOREIGN POLICY

OUR PROMISE:

Highlighted international injustices, in particular Israeli aggression in Palestine

Hosted the historic first East Asian Summit, providing the platform for closer co-operation between ASEAN and China, Japan, South Korea, India, Australia and New Zealand Secured new markets and enhanced linkages via high-level visits. Trade with all major trading partners expanded rapidly, with fastest growth recorded for China (65% increase), OIC countries (54%) and ASEAN (29%) Strengthened Malaysias voice in the international arena by championing the developing worlds economic and social interests

Enhanced NAMs role, including establishing the NAM Institute for the Empowerment of Women and NAM News Network Put an economic face to the OIC via the Capacity Building Program to reduce poverty and through the World Islamic Economic Forum to enhance trade and investment Played a key role in promoting dialogue between the West and the Muslim world Continued to promote cooperation, peace and stability in ASEAN

Continue to play an active, principled and impartial role in international affairs Expand trade and investment linkages Advance the economic agenda of the OIC through capacity-building programmes in less developed OIC countries Promote strategic partnerships between the West and the Muslim world to advance

the economic agenda of the Makkah Declaration 2005 Continue to build bridges between the Muslim world and the West through continuous dialogue Contribute towards a development agenda for the worlds poorest countries

SE C U R I T Y

PE AC E

P R O S PE R IT Y

Published by Barisan Nasional Headquarters, Level 8, Menara Dato Onn, Putra World Trade Centre, Jalan Tun Ismail 50480, Kuala Lumpur