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NEW STRAITS TIMES, FRIDAY, JUNE 11, 2010; 07/04/2013
Crowth strategies
Transforming the Malaysian
e c o n o my
Maintaining full employment
Pushing for productivity-led
g rowth
Enabling greater dynamism of the
private sector
Sustaining growth in private
Diversifying export markets
Sustaining a surplus in the balance
of payments
Achieving sector targets
Enhancing efficiency of fiscal policy
HE 10th Malaysia Plan (2011-
2015) will be the means to
jump-start the nations push
towards a high-income economy.
The 10MP provides the policy
framework and strategies to achieve
high-income status by 2020.
The plan also draws on the foun-
dations laid down by the 1Malaysia
concept and builds upon the Gov-
ernment Transformation Pro-
gramme and the New Economic
Productivity up with shift towards vaIue-added activities
MALAYSIA was not spared from the
2009 global economic crisis, which
affected its overall performance dur-
ing the Ninth Malaysia Plan (9MP).
The countrys economy contracted
by 1.7 per cent last year.
While growth during the first three
years of the 9MP, which started in
2006, remained strong at an annual
rate of 5.7 per cent, the contraction
last year lowered overall growth for
the plan period, registering an aver-
age growth of 4.2 per cent.
However, contribution of total fac-
tor productivity (TFP) to the countrys
gross domestic product (GDP) growth
increased to 34.7 per cent from29
per cent during the 8MP.
This was attributed to initiatives
undertaken by both the public and
private sectors to shift the economy
towards higher value-addedactivities
through innovation, high technology
and human capital development.
Higher investment in information
and communications technology as
well as training and retraining of staff
also contributed to the higher TFP.
Gross national income per capita is
e s t i mat e d t o i nc r e as e f r o m
RM19,079 in 2005 to RM26,420 this
ye a r.
Inflationis also expected to remain
low during the 9MP period, averag-
ing 2.8 per cent per year, on account
of supportive monetary responses
and administrative measures to con-
tain inflation.
During the period under review,
900,000 jobs were created, mainly in
the services sector, despite employ-
ment growth slowing to 1.6 per cent
per year.
The unemployment rate increased
from3.5 per cent in 2005 to 3.7 per
cent last year. This rateis expectedto
improve marginally to 3.6 per cent
this year. Growth during the five-year
plan was largely domestic-driven,
with demand growing by 7.7 per cent
during the first three years before it
moderated significantly to 2.5 per
cent per year in 2009-2010. It was led
by private consumption on account of
better commodity prices, a resilient
employment market and favourable
financing facilities.
Salary adjustments in the civil ser-
vice also contributed to higher con-
Private investments, meanwhile,
stood at RM356.1 billion during the
9MP period, with 72 per cent being
domestic investment and therest for-
eign direct in vestment.
In terms of sectoral performance,
all sectors, except mining and quar-
rying, recorded positive growth. This
was led by the services sector, which
expanded by 6.8 per cent per year
and increasing its share to GDP of 58
per cent this year.
Model to offer fresh policies and
strateg ies.
The 10MP focuses on:
Creating the environment for un-
leashing economic growth. This will
be the anchor of the plan as it details
strategies to create an environment
that fosters economic growth with
the private sector as the main driver.
Moving towards inclusive socio-
economic development. There will be
measures to ensure income and
wealth are distributed in an equitable
manner, thereby, reducing inequal-
ities. The objective will be to build a
more inclusive society.
Developing and retaining a first-
world talent base. This will be key to
promote productivity and innova-
tion-led growth. Central to this will be
strategies to develop, attract and re-
tain quality talent base.
Building an environment that en-
hances quality of life. Economic
growth will be supplemented by
strategies to raise the quality of life of
the rakyat that commensurate with
the countrys higher-income status.
Transforming the government to
transform Malaysia. The role of the
government will evolve to become an
effective facilitator in the transfor-
mation of the economy and provide
quality services to the rakyat.
The Federal Government has set
aside an allocation of RM230 million
for the 10th Malaysia Plan (10MP), of
which 55per cent or RM126billion is
for the economic sector.
This is followed by the social sector
(30 per cent or RM69 billion), security
sector (10 per cent or RM23 billion)
and general administration (five per
cent or RM11.5 billion).
The allocation also includes a fa-
cilitation fund of RM20 billion to pro-
mote private sector investment in
strategic priority areas, including in-
frastructure, education and health.
The government will also intro-
duced a two-year rolling plan to pro-
vide greater flexibility in making ad-
justments to government spending,
especially to respond to changes in
the global economic environment.
Plan draws
on the
laid down
by the
focuses on
building an
7hrusts of 10MP
10 big ideas for a better nation
HE 10th Malaysia Plan (10MP)
is made up of 10 big ideas that
will see the country through
challenging times and elevate it to a
high-income economy and developed
nation by 2020.
They are:
1. Being internally driven but
externally aware
The government will continue to
review and modernise regulations,
such as labour laws, to have a well-
functioning market economy. Prior-
ity will be given to regulations that
can materially improve the ease of
doing business in Malaysia.
It will also support private sector
activities through facilitating avail-
ability of funding, particularly in
terms of supporting micro-enterpris-
es, venture capital for innovation and
export-related financing.
2. Leveraging on Malaysias
diversity internationally
Key initiatives include trade pro-
motion, enhancing regional connec-
tivity and regional integration
through trade agreements. The ini -
tiatives will be undertaken while
strengthening links with traditional
export markets like Australia, Eu-
rope and the US.
The government will continue to
support Malaysian companies to
emerge as regional champions and
assist in opening new markets.
3. Transforming to high-income
through specialisation
The government will prioritise
specific national key economic areas
(NKEAs) as part of the strategy to-
wards greater specialisation. Within
each NKEA, there will also be spe-
cialisation in terms of sub-sectors.
A recurring theme across NKEAs
in the context of specialisation is the
focus on quality and strengthening
the value chain.
4. Unleashing productivity-led
growth and innovation
Special emphasis will be given to
enablers of productivity such as hon-
ing the skills of the workforce, pro-
moting the development of concen-
trated industrial clusters and in-
creasingly targeting investment
promotion for quality investments.
Investing heavily in creativity in-
cluding efforts such as stimulating
entrepreneurship, revamping school
curriculum, focusing on research
and development and promoting
availability of risk capital.
5. Nurturing, attracting and
retaining top talent
Skills training will be given spe-
cial emphasis under the 10MP to
ensure Malaysia develops the nec-
essary human capital.
Developing and motivating teach-
ers will be the focus towards driving
improvements in student outcomes.
Schools and principals will be made
increasingly accountable for student
perfor mance.
6. Ensuring equality of
opportunities and safeguarding
the vulnerable
Under the 10MP, the government
will focus on 2.4 million households
that make up the bottom 40 per cent
of the countrys poor.
Special attention will be given to
Bumiputeras in Sabah and Sarawak
as well as the Orang Asli.
7. Concentrated growth,
inclusive development
Major new developments include
an international financial district, re-
development of Sungai Besi airport,
township development in Sungai Bu-
loh, establishing a world-class in-
tegrated convention facilities in Jalan
Duta and a Malaysia Truly Asia cen-
Major investments in public trans-
port include the expansion of the
Kuala Lumpur light rail transit cov-
erage and the implementation of a
high-capacity mass rapid transit sys-
In addition, the government pro-
poses to introduce enbloc mecha-
nism to facilitate redevelopment of
collectively owned property and
8. Supporting effective and smart
par tnerships
The government will set up a RM20
billion fund to spur private invest-
ments in nationally strategic areas.
The government also proposes a
new wave of privatisation and a part-
nership to drive the development of
industrial parks and incubators and
co-invest with the private sector in
high-growth and strategic sectors
through government fund agencies
such as Malaysian Venture Capital
Management Bhd and Ekuiti Na-
sional Bhd.
9. Valuing our environmental
e n d ow m e n t s
During the 10MP period, the en-
ergy policy will move towards market
pricing of gas by 2015 while water
tariffs will be restructured towards
full cost recovery.
It will also provide fiscal incentives
and funding for green technology
investments, promote eligible pro-
jects for carbon credits and spur eco-
tour ism.
10. Government as a competitive
cor poration
The government needs to increas-
ingly act like a competitive corpo-
ration and will focus on customers
and the private sector.
It will also endeavour to improve its
finances in terms of getting value for
money on expenditure and ensure
sustainability of public finances.
Revamping the government structure to support high-income economy
CHANGES must be done to the gov -
ernment structure to support a
high-income economy which
Malaysia is striving for.
Four key principles will underpin
the transformation, namely a cul-
ture of creativity and innovation;
speed of decision-making and ex-
ecution; value for money and in-
teg r ity.
A comprehensive audit of all gov-
ernment organisations and struc-
tures will be carried out, looking
across government roles, functions,
gaps and overlaps.
Efforts will be directed towards
reducing bureaucracy and improv-
ing the interface between govern-
ment and people as well as gov-
ernment and business.
One of the changes is rational-
isation effort which includes the
functions of solid waste manage-
ment and public cleansing respon-
sibilities will be shifted from the
purview of local authorities to the
Federal Government.
It will have a big impact on the
local authorities resource manage-
ment, especially m a n p owe r.
For the fisheries industry, the De-
partment of Fisheries will assume
Malaysian Fisheries Development
Board (LKIM)s role as a market
player and in upstream production
activities whereas LKIMwill under-
take all processing and downstream
a c t i v i t i e s.
The government wi l l al so
strengthen ministries and agencies
responsible for facilitating and de-
livering top national priorities.
One such measures is to set up a
new independent Talent Corpora-
tion next year.
The unit will assume a catalytic
role in attracting, creating and mo-
tivating a world-class workforce.
It will also act as a facilitator to
both industry and private sector.
Research and development will not be left out under the 10MP.
Crowth through 12 key economic areas
URING the 10MP period,
Malaysia will focus on nation-
al key economi c areas
(NKEAs). Aset of 12 potential NKEAs
has been identified, comprising 11
sectors and Kuala Lumpur.
Implementation of these actions
will be monitored by the Economic
Delivery Unit, with the prime min-
ister providing overall leadership.
The NKEAs are:
1. Oil and Gas
Last year, the oil and gas sector
contributed RM68.3 billion or 13.1
per cent to the countrys gross do-
mestic product (GDP), of which up-
st ream act i vi t i es, i ncl udi ng
petroleum and gas, represented
RM39.5 billion or 7.6 per cent and
downstream activities, including the
petrochemical industry, contributed
RM28.8 billion or 5.5 per cent.
Contributions from this sector are
expected to increase by 20 per cent to
reach RM81.9 billion or 11.1 per cent
of GDP in 2015.
Upstream activities are expected to
contribute RM43 billion or 5.8 per
cent and downstream, RM39.8 bil-
lion or 5.3 per cent, of GDP in 2015.
2. Palm oil and related products
During the 10MP, the target is to
increase the palm oil industrys GDP
by RM21.9 billion, with export earn-
ings of RM69.3 billion.
Among the initiatives will be de-
veloping palm oil industrial clusters
into integrated sites for promoting
downstream activities and encour-
aging good agricultural practices.
3. Financial services
Key initiatives within 10MP include
formulating strategies for the finan -
cial sector to drive the next phase of
economic development and enhanc-
ing Malaysias position in Islamic fi-
nance globally via the strengthening
of the Malaysia International Islamic
Financial Centre initiatives.
The Capital Market Master Plan 2
will be developed to expand the role
of capital market in supporting the
transition to a high-income and
knowledge-based economy.
4. Wholesale and retail
During the 10MP, distributive trade
is expected to register a growth rate of
8.3 per cent per year, contributing
15.1 per cent to the GDP in 2015.
Initiatives include liberalising the retail
and wholesale sector, and encour-
aging consolidation among local re-
tailers to achieve economies of scale.
5. Tourism
The target is to improve Malaysias
position to be the top 10 in terms of
global tourism receipts, and increase
the sectors contribution by 2.1
times, contributing RM115 billion in
receipts and providing two million
jobs in the industry in 2015.
6. Information and communica-
tions technology (ICT)
The ICT sector accounted for 9.8
Comprehensive review of business ruIes soon
Contributions from the oil and gas sector are expected to increase by 20 per
cent to reach RM81.9 billion.
THE government wants the private
sector to lead the economy under
Initiatives will include upgrading
business rules, relaxing foreign
ownership for the services sector,
reducing subsidies, introducing the
Competition Law and improving
the interface between government
and business.
By the end of 2015, the govern-
ment aims to make Malaysia one of
the top 10 nations in the world for
doing business. Malaysia ranked
23rd inthe WorldBank DoingBusi-
ness 2010 report.
To achieve this, the government
will start a comprehensive review
of business regulations, starting
with rules that impact the national
key economic areas. This means
scrapping redundant rules.
The r evi ew wi l l be l ed by
Malaysia Productivity Corporation
(MPC) and complement efforts of
Pemudah, a special task force to
makebusiness easier.
Under 10MP, the services sector
is expected to grow 7.2 per cent a
year until 2015, raising its contri-
bution to 61 per cent of GDP, from
58 per cent now. About RM44.6 bil-
lion in new investments is ne e d e d
for the sector to reach this target.
Further liberalisation of the ser-
vices sector is needed to achieve the
investment target. As such, the ser-
vices sector will be opened under
the Asean Framework Agreement
on Services (Afas), WorldTrade Or-
ganisation (WTO) and free trade
agreements (FTAs).
In line with the Afas timeline, fur-
ther liberalisation will be taken for
all 128 sub sectors, allowing at least
70 per cent Asean equity owner-
ship by 2015. Financial and air
transport services will also be fur-
ther opened.
The government will reviewdo-
mestic regulations that inhibit ef-
fective liberalisation of the services
sector, including foreign equity re-
strictions and limits in hiring for-
eign talent.
The government will gradually
rationalisesubsidies andpricecon-
trols to remove market distortions.
This has already begun with sugar.
Incentives will be provided based
on volume of fish landing rather
than input subsidies.
Price controls will be gradually
removed to reflect market prices.
But the government will not com-
promise on delivering social ser-
vices like education, healthcare
and welfare. Assistance will contin-
ue to be provided to vulnerable
groups and those in low-income
b r a c k e t s.
The Competition Law was enact-
ed by Parliament this year, while a
Competition Commission and a
Competition Appeal Tribunal will
be set up by end of this year.
per cent of GDP last year. The target
is to increase this to 10.2 per cent by
2015. Malaysia needs to shift from
being an average producer of se-
lected ICT products and services to
a niche producer and progress from
a net importer to a net exporter.
7. Education
The gross output of private ed-
ucation increased by 44 per cent in
2005 to RM7 billion in 2008.
The target is to increase the con-
tribution of private education to
GDP by two per cent in 2015 and
attract 150,000 international stu-
dents by 2015.
8. Electrical and electronics
Initiatives will include developing
centres of engineering excellence by
collaborating with industry and
a ca de mi a , promoting state skills
training centres and co-funding pro-
grammes in critical fields.
9. Business services
Last year, business and profession-
al services contributed 2.6 per cent to
GDP or RM13.3 billion.
The target is to increase this sec-
tors contribution to 3.3 per cent of
GDP by 2015.
10. Private healthcare
The target under 10MP is to in-
crease revenue from healthcare trav-
el to 10 per cent a year and make
Malaysia a preferred healthcare des-
tination in the region.
Key strategies to be adopted in-
clude fostering alliances among local
and foreign healthcare service
providers, travel organisations and
medical insurance groups to provide
a more integrated package of ser-
vices to healthcare travellers.
11. Agriculture
During the 10MP, agriculture con-
sortiums and cooperatives will be set
up to reap the benefits of scale.
Streamlining of r e g u l at i o n s will be
done, particularly in the swiftlet,
aquaculture and herbal industries to
attract more investments.
12. Greater Kuala Lumpur
To position greater KL as a world-
class city, economic growth and live-
ability strategies will be required.
They include establishing the KL
International Financial District, es-
tablishing Sime Darby Vision Valley,
and making greater KL a tourist
destination by leveraging on iconic
institutions such as Muzium Negara
and Istana Budaya.
PIan to boost exports
THE government will u nlo ck t he
growth and innovation potential of
small- and medium-scale enterprises
(SMEs) over the 10MP period to cre-
ate domestic, regional and global
c h a m p i o n s.
It will reduce the regulatory costs
borne by SMEs, build capacity and
capabilities of SMEs, support the cre-
ation of an entrepreneurial culture,
strengthen support systems and im-
p r ove access to financing for SMEs.
SME Corp Malaysia will deliver the
SME development targets. It will co-
ordinate programmes, including
funding offered by ministries and
agencies, to reduce redundancy and
inefficiency as well as track and as-
sess the impact of the programmes.
It will report annually to the Na-
tional SME Development Council
chaired by the prime minister.
The government will exempt some
of the more costly business regula-
tions for companies employing five or
fewer people until the company ex-
pands beyond five employees.
Regulations will be eased for these
companies in registrationof business
and employment requirements.
To build capacity and capability,
the government will introduce pro-
grammes such as multinational cor-
por ation s/large company training,
skills training programmes, medi-
um-term industry training schemes
and leverage on training resources
MNCs/large company training will
see SME employees who supply prod-
ucts and services to MNCs given
training to upgrade their knowledge
and skills.
Skills training courses will cover
management, finance, marketing
and ICT application.
Incentives to make them champions at aII IeveIs
NDER the 10MP, the govern-
ment will compete globally to
ensure Malaysia participates in
international trade, and attract foreign
talent and investment.
Malaysia will leverage on free trade
agreements (FTAs) and introduce ini -
tiatives to expand its export market
This includes expanding export
markets, helping Malaysian firms
break into export markets, build trade
momentum from FTAs and reduce
transaction costs.
The government will intensify ex-
port promotion in fast-growing mar-
kets in East Asia, India and Gulf Co-
operation Council countries, and in-
crease market presence in new
emerging markets such as Africa,
Latin America and Central Asia.
To boost the expansion of Malaysian
firms into the export market, the gov-
ernment will provide export promo-
tion, improve international branding
of leading exporters and build ca-
p a c i t y.
It will provide financial aid to con-
duct feasibility studies and secure ten-
ders for international projects. It will
offer financial aid to firms to develop
their brands abroad.
The target is to generate 200 in-
ternationally-recognised Malaysian
brands by 2015.
Also, a Malaysia Institute of Exports
will be set up to provide training for
exporters and provide information on
target export markets.
EXIM Bank will provide financing to
companies exporting products and
ser vices.
Meanwhile, to extract the full po-
tential of FTAs concluded, the gov-
ernment will help firms understand
the opportunities provided by F TA s
and provide support to access these
oppor tunities.
During the plan period, Malaysia
will target free trade agreements with
the European Union, Transpacific
Strategic Partnership, Asean+3 and
emerging economies.
To achieve the target of becoming a
developed nation by 2020, Malaysia
must attract and retain more foreign
direct investment.
It must also attract and retain ex-
patriate talent.
Malaysia must have more incentives to expand its export market share.
RM20b to spur private
sector investments
7ax deductions and matching grants to be given for research and deveIopment
Government-linked companies like Maybank will focus on areas that support the creation of a vibrant private sector.
CTIVE steps will be taken to
rationalise the role of the
government and government-
linked companies (GLCs) in business
to increase private sector partici-
pation in the economy.
The three steps are increasing pri-
vatisation and public-private part-
nerships (PPPs), establishing a fa-
cilitation fund to provide support to
the private sector, and achieving a
balance between the government,
GLCs and the private sector.
A new wave of privatisation will be
implemented under 10MP to in-
crease private investment in
the economy, improve efficiency in
the delivery of services and relieve
the financial burden of the govern-
Privatisation and PPPs will be sub-
stantially intensified with 52 projects
worth RM62.7 billion already under
c o n s i d e r at i o n .
To ensure value creation, one strat-
egy is the monetisation of public
sector assets through outright sale,
joint venture or long-term lease of
land with commercial potential such
as the Rubber Research Institute in
Sungai Buloh, Selangor, and the
1Malaysia Development Bhd land de-
velopment project in Sungai Besi,
Kuala Lumpur.
Another is putting in place rig-
orous checks to ensure that prospec-
tive companies meet a minimum cri -
teria, including financial standing,
track record and management ex-
There are plans to strengthen the
monitoring framework, including es-
tablishing a strong project monitor-
ing unit to ensure successful im-
plementation of projects and adher-
ence to contractual obligations.
Also to be adopted are va l u e - f o r -
money drivers such as optimal dis-
tribution of risks between the public
and private sector, whole life costing,
output specification that allows bid-
ders to innovate in the design of the
project, competition that provides
fair value and a performance-based
payment mechanism.
A RM20 billion fund will be es-
tablished to facilitate private sector
investments in projects with high
strategic value to the nation and
multiplier effects.
The fund will be designed to bridge
the viability gap for private invest-
ment in priority areas such as in-
frastructure, education, tourism and
health projects.
Projects with a minimum capital
cost or investment of RM100 million
will be eligible for assistance.
The private sector will be required
to finance and undertake all risks,
with government funding only used
to improve viability of the project.
The fund will be provided to fi-
nance land cost and basic infras-
tructure such as construction of ac-
cess roads, bridges and provision of
water supply required to make a
project viable.
The Public-Private Partnership
Unit (3PU) in the Prime Ministers
Department will be the secretariat
responsible for processing of ap-
provals, disbursement and monitor-
ing of the fund.
GLCs will focus on areas that sup-
port the creation of a vibrant private
sector while withdrawing from areas
that do not enhance value creation.
They will also co-invest with the
private sector to venture into new
markets and ensure Malaysian firms
achieve a larger footprint globally.
The introduction of the Compe-
tition Law is to ensure fair com-
petition for all companies, including
GLCs and will help prevent a bu s e
from market dominance.
To rationalise the role of the public
sector, privatisation of companies
under the Minister of Finance Inc will
be completed during the plan pe-
r iod.
Also, a clear delineation between
regulator and market players will be
introduced during the plan period
and the role of the government will
be reviewed in areas such as public
healthcare, electricity supply and
t e l e c o m m u n i c at i o n s.
THE government is strengthening
the countrys innovation system
with focus on a supportive ecosys-
tem, innovation opportunities, inno-
vation enablers and funding.
The national innovation agenda
has not achieved the desired
progress as reflected by the drop in
the number of researchers per
wo r k f o r c e .
In 2008, there were 20.3 re-
searchers for the 10,000-strong
labour force, down from 21.3 re-
searchers for 10,000 workers in
Gross expenditure on research
and development (GERD) dropped
to 0.21 per cent of GDP in 2008 from
0.69 per cent of GDP four years be-
fore. Singapores GERD was three
per cent of GDP in 2008. Malaysia
aims to increase GERD to one per
cent by 2015.
To shape a supportive ecosystem
for innovation, emphasis will be giv-
en to human capital development,
investment in innovation infrastruc-
ture and nurturing new ventures
through incubators.
Under the plan, the government
will support research and develop-
ment and commercialisation across
the value chain, while the risk cap-
ital industry will be strengthened to
increase access to funding for start-
u p s.
New funding modes for public ven-
ture companies will be introduced,
while government funding through
Malaysian Technology Development
Corporation (MTDC) and Malaysian
Venture Capital Management Bhd
will shift from the current lending
model to an equity structure.
A Mudharabah Innovation Fund
(MIF), with an allocation of RM500
million, will provide capital to gov-
ernment-backed venture compa-
nies. The MIF would attract greater
private risk capital to co-invest and
thus, reduce dependence on public
f u n d s.
To bridge the gap between inven-
tion and commercialisation of high-
technology products, the govern-
ment will establish a RM150 million
Business Growth Fund.
It will support companies com-
mercialising public sector research
results and provide hybrid grant-
equity funding.
Existing public venture capital ini-
tiatives will also be rationalised.
MTDC will be focusing on nur -
turing technology transfer and com-
mercialisation, while a new tech-
nology investment company will be
set up to manage funds and invest-
ments from MTDC and Khazanah
The government will also a l l ow
tax deductions for R&D and provide
matching grants to promote private
sector funding of R&D and commer-
c i a l i s at i o n .
A dedicated programme known
as 1-InnoCERT, which assesses the
innovation level of enterprises, will
further stimulate R&D activities
through preferential rate loans,
credit guarantees and grants.
To nurture creative, critical think-
ing, risk-taking and analytical hu-
man capital, world-class educational
institutions will be introduced.
This will be done by head-hunting
the best academic leadership on
global search; bring education and
training closer to industry; and in-
troduce a programme to promote
industry participation to co-sponsor
employees to obtain industrial PhDs.
During the five-year period, the
information technology (IT) infras-
tructure will be substantially ex-
panded, where the government tar-
gets 75 per cent of households to
have broadband by 2015.
There are also plans to develop
comprehensive R&D infrastructures
in areas where Malaysia has
strengths, like downstreampalm oil
processing, modern agriculture,
and oil and gas.
Trade and investment policy will
be biased towards building innova-
tion capabilities, market access,
production and investment volume.
Incentive packages for foreign di-
rect investments will have strict con-
ditions for transfer of knowledge,
while incentives will be provided to
multinational corporations to estab-
lish research centres in the country.
The gover nment wi l l al so
strengthen the innovation institu-
tional structure and intellectual
property (IP) regime. This includes a
reform of institutional structure dur-
ing the plan period to be headed by
the Prime Ministers Department.
If previously the countrys re-
search institutions were established
for specific areas, like the Rubber
Research Institute, now the changing
economic landscape and expanding
role of higher education institutions
require a realignment of research
bodies with priority economic sectors
and reduction of overlapping.
To improve the investment cli-
m at e , the expertise and institutional
capacity of IP examiners and agents
will be upgraded.
Web-based facilities for copyright
protection and a patent research
database will be provided to shorten
the application and approval pro-
cess for trademarks, from 15 to 12
months, and patents from 39 to 32
m o n t h s.
ncouraging companies
to upskiII workers
To regulate the entry of unskilled foreign labour, levies will be borne by
employers and not employees.
N efficient labour market is a
critical factor to achieving a
high-income sector.
Therefore, the government will un-
dertake labour market reforms un-
der the 10th Malaysia Plan with spe-
cial emphasis on improving job mo-
bility and upskilling the current
workforce, especially those from the
bottom 40 per cent of the house-
h o l d s.
The government will also upgrade
the workforce with the aim of achiev-
ing a target of 33 per cent of the
workers being in the higher skilled
jobs bracket by 2015, and up to 50
per cent by 2020.
The reforms are:
Improving the efficiency of the
settlement of labour disputes as dis-
missal cost of workers in the case of
redundancies is relatively high in
Malaysia (average 75 weeks of wages
to employees who have worked for 20
years upon terminating a contract as
compared to 56 weeks in Thailand
and four weeks in Singapore).
Introducing a relief fund for loss
of employment to provide financial
assistance for retrenched workers
who do not get due compensation.
Eligible retrenched workers will
receive RM600 a month for a max-
imum of six months. An amount of
RM80 million will be allocated to the
relief fund from this year to 2012.
Multi-tiered levy system for em-
ployers of unskilled workers to en-
courage the move towards a highly-
skilled workforce. This will provide
an incentive for companies to up-
grade their workforce or hire skilled
foreign labour.
Under a new levy system to
regulate the entry of unskilled for-
eign labour, the levies will be borne
by employers and not by employees.
The levy will be proportionate to the
ratio of foreign to total workers, the
rates will increase over time and will
vary according to the level of skills of
the foreign workers.
Introducing the Part Time Work
Regulations under the Employment
Act 1955 aimed at encouraging
greater participation of the untapped
talent workforce such as housewives,
retirees and disabled persons.
Expanding the coverage of the
skills development fund to promote
upskilling and retraining of the work-
force beyond school-leavers to in-
clude existing workers. Preferential
loans will be provided by the fund to
pay for training costs incurred in
skills upgrading. A total of RM500
million will be allocated to provide
loans to workers, with a separate
amount of RM500 million for loans to
school-leaver s.
Introduction of a skills upgrading
programme by SME Corp to enhance
the skills and capabilities of SME
workers at technical, supervisory
and managerial levels, particularly
in areas such as electrical engineer-
ing and electronics, information
technology, industrial design and en-
g ineer ing.
SME Corp will finance 80 per cent
of the training cost paid by employers
to train their employees in accredited
training centres.
Extending the Human Resource
Development Fund from 44 to 70
sub-sectors. During the 10MP, an
al l ocat i on of RM50 mi l l i on
will be provided to continue the
matching grants for training and
skills upgrading for employees
in SMEs. In addition, RM50 million
will be allocated to fund appren-
ticeships involving more than 8,000
s t u d e n t s.
Corporation to pIay key roIe in
meeting priority sectors needs
Rebranding to Iift image
VCs to be heId accountabIe
The Rating System for Malaysian
Higher Education Institutions (SE-
TARA) will be extended to all private
degree-conferring tertiary institu-
During the 10th Malaysia Plan pe-
riod, the rating system will also go
beyond institutional ratings to pro-
vide rating for each institutions de-
The universitys vice-chancellor
will be held accountable for the per-
formance of the university, with the
consequence of non-renewal of con-
tract in the event of poor perfor-
Performance-based funding for
public tertiary institutions will alsobe
implemented, with the aim of pro-
viding a transparent funding mech-
The government is also seeking to
harmonise tertiary education capac-
ity and level the playing field for both
public and private higher education
OnIy the best wiII be chosen
GRADUATING from Institutes of
Teacher Education (ITE) and public
universities with just an average
passing will not necessarily guaran-
tee ateaching job.
Only the best and most qualified
teachers will be offered teaching po-
sitions under the 10thMalaysiaPlan.
It will change the current practice
where teacher trainees are guaran-
teedplacements inschools regardless
of howthey performed.
The removal of such a guarantee is
to ensure that there is a higher min-
imum quality requirement for new
There are currently over 175,000
applicants for entry to the teaching
profession every year with up to
20,000 new teachers placed in
schools annually.
Another effort toraisethequalityof
teachers is to extend the postgrad-
uate teaching course from12 months
to 18 months to raise the practical
experience of teacher trainees under
animprovedteacher training plan.
The government is also expanding
the talent pool of teacher trainees
fromthe existing ITEs andpublic uni-
versities to include private universi-
ties andcolleges.
Totransformtheattractiveness and
raise the professionalism as well as
the profile of the teaching career, the
government will launch and imple-
ment a comprehensive New Deal for
all teachers.
It will also see the launch of a new
evaluationapproachnext year.
The percentage of graduate teach-
ers in schools will be increased from
89.4 per cent last year to 90 per cent
by 2015 in secondary schools and
from 28 per cent to 60 per cent for
primary schools.
TO attract, motivate and re-
tain the talent needed for a
high-income economy, a Tal-
ent Corporation (TC) will be
set up under the Prime Min-
isters Department next year.
The TC, in collaboration
with the public and private
sectors, will develop an inte-
grat ed Nat i onal Tal ent
Blueprint by2011.
It will identify and quantify
talent needs of priority eco-
nomic sectors and develop
specific initiatives to acceler-
atethepipelineof thesetypes
of critical talent.
The blueprint will provide
an end-to-end viewby tack-
l i ng t al ent i ssues f rom
pre-school to retirement
and will be demand-driven
in collaboration with the in-
It will also contain a de-
tailed fact base of the talent
for all priority sectors and
national keyeconomic areas.
As competition for global
talent intensifies, there is a
tive in not only attracting but
also actively seeking skilled
The approach will be to
attract foreign talent just like
attracting foreign direct in-
ve st m e nt s , the Economic
Planning Unit of the Prime
Ministers Department said
inthe 10thMalaysiaPlanRe-
Every year during the
10MP period, the top five per
cent of students who sat the
Sijil Tinggi Persekolahan
Malaysia will be given schol-
arships to pursue studies in
local universities.
The TC will collaborate
with the Immigration De-
partment and Malaysian
missions to execute strate-
gies to attract foreign talent
to Malaysia, especially those
with expertise in priority
economic sectors or those
about to graduate from top
universities worldwide.
Mor e t han 700, 000
Malaysians are estimated to
be workingandlivingabroad
and many are highly skilled
In addition to conducting
road shows and organising
career fairs, the government
will also scout for skilled for-
Talent attraction and re-
tention programmes such as
the Returning Expert Pro-
gramme and the Brain Gain
Programme will be consoli-
datedunder theTC.
The programmes will be
enhanced to ensure better
coordination, morefocus and
greater impact.
Incentives under these
programmes wi l l be re-
viewed and expanded to
make themmore attractive
to the targeted talent groups
The government will relax
someemployment conditions
for skilled foreign talent
where they are allowed to
changejobswiththefirst em-
ployers approval, an exemp-
tion to bring in foreign do-
mestic help and permission
for their spouse to take up
employment while still hold-
ingadependent pass.
For skilled foreign talent
earning more than RM8,000
a month, there will be no
time limit for their employ-
ment visatoallowfor greater
Openvisas will be issuedto
highly skilled foreign profes-
Theywill alsobeallowedto
acquire residential units
costi ng RM250, 000 and
7rust SchooIs pIan with private partners
4 strategies to boost
student performance
MALAYSIA will be seeing
more public-private part-
nerships ineducationinthe
near future.
One of such alliances will
be under the Trust School
framework for selected ex-
isting public schools.
Trust Schools are man-
agedjointly by private part-
ners andcivil serviceschool
leaders under the Educa-
The government gives
Trust Schools greater deci-
sion-making freedom over
curriculum, finance and
human resources to en-
courage innovation and re-
sponsiveness totheneeds of
their individual schools.
In return, the schools
must meet a set of perfor-
mance targets withinafive-
year time frame.
in the Education Ministry
reassuming management
of schools from the spon-
Trust Schools will involve
those with different perfor-
mance levels with the aim
to change the outcome re-
gardless of starting point:
frommediocre to good and
goodto great.
In the pre-school educa-
tion, the government will
give incentives to private
school operators to speed
up the deployment of new
Theincentiveswill enable
the operators to access
grants for the development
of pre-schools in under-
servedrural areas.
The private sector is ex-
pected to establish 488 pre-
schools this year, a total of
1,000 next year and 1,145
VOCATIONAL skills in technical
schools will be rebranded under the
10th Malaysia Plan to provide more
opportunities for technically inclined
students and improve the awareness
of technical education and vocational
training (TEVT).
A national campaign will be rolled
out to emphasise the benefits of en-
tering the labour market with TEVT
Other measures under the 10MP
include converting 69 out of 88 tech-
nical schools into vocational schools
and establishing six new vocational
schools by 2015.
A project-based learning approach
will be introduced to improve the
quality and enhance the attractive-
ness of TEVT programmes to both
employers andstudents.
Government-linked companies will
be encouraged to provide internships
andemployment to TEVTstudents.
The career progression path of
TEVT instructors will be accelerated
to make TEVT teaching an attractive
career option.
A new centre for instructor skills
training will also be developed to add
a further training capacity of 800 in-
structors eachyear.
The government will set up the
Malaysia-Japan International Insti-
tute of Technology to enhance col-
laboration and networking with
Japan in the technical and engineer-
ing fields.
MALAYSIAis moving beyond
the emphasis on investing in
bricks and mortar for its ed-
This will see the govern-
ment adopting four strate-
gies to significantly improve
student performance.
The process will start from
young through the early
childhood development pro-
gramme for children (Per-
mata) which will come under
the purviewof the Education
Ministry next year.
Atotal of 181Permatacen-
tres will be set up across the
country with an allocation of
The pre-school pro-
gramme will also receive a
RM2 billion boost during the
2010-2012 period to in-
crease the pre-school enrol-
ment rate to 87 per cent by
2012 and to 92 per cent by
Other efforts will include
lowering entry age for
schooling fromsix to five, im-
proving literacy and numer-
acy skills and upholding Ba-
hasa Malaysia as well as
strengthening English profi-
Another strategy is to raise
the performance of all
schools under the School Im-
provement Programme,
which is a comprehensive
and ambitious effort to chal-
lenge, motivate and support
all public schools to improve
student performance.
To increase the school
standardtointernational lev-
els with the High Performing
Schools (HPS) programme,
the government aims to set
up 100 HPS by 2012 with an
allocationof RM140million.
The third strategy involves
investing ingoodheadteach-
ers and principals who are
the primary drivers of
change and play active roles
indeveloping their teachers.
Excellent head teachers
and principals of public
schools will be rewarded fi-
nancially andnon-financially
under the Baiah or New
Deal. An allocation of RM160
million will be made avail-
ablefor this programmedur-
ing the period2010-2012.
For the final strategy, more
efforts will bemadetoattract
and develop top talented
The government plans to identify top Malaysian students studying in renowned foreign
universities and sponsor their final-year fees on condition they return to serve in the country.
Producing industry champions
New ways
to ensure
8umi stake
NEW affirmative action instru-
ments, merit-based programmes
and transparency are the princi-
ples needed in the move towards a
more united and progressive
s o c i e t y.
The 10th Malaysia Plan sees
these principles as a way to
counter economic distortions and
encourage competition and award
oppor tunities.
These principles will translate
into a more customised and col-
laborative approach in determin-
ing inclusiveness targets for the
private sector.
If in the past companies were
required to allocate 30 per cent
equity for Bumiputeras under the
Industrial Coordination Act and
Foreign Investment Committee
Guidelines, the 10MP will empha-
sis economic participation, includ-
ing active participation in manage-
ment and businesses.
The focus on defining Bumiput-
era participation at shareholding
level when it comes to access to
government procurement will shift
to building genuine participation
and partnerships by adopting
transparency and meritocracy
pr inciples.
On employment, the 10MP aims
to promote Bumiputera represen-
tation in high-paying jobs via sup-
ply-side and market-friendly de-
mand-side measures instead of the
indirect approach with no specific
targets set.
It also requires the disclosure of
employment composition by gen-
der and ethnic groups.
As for unit trust schemes, the
10MP calls for an expansion of the
pooling and mobilising of Bumi-
putera capital to acquire other
types of wealth, like property via
Yayasan Amanah Hartanah Bumi-
putera. Previously, the pooling was
to acquire corporate equity mainly
in Malaysian listed companies.
Bumiputera-specific institutions
such as Maktab Rendah Sains
Mara will enhance their roles in
supporting the communitys devel-
opment agenda.
NEW approach to the Bu-
miputera Commercial and In-
dustrial Community (BCIC)
will see Bumiputera companies seg-
mented according to business stage-
micro and small enterprises; de-
velopment and growth stage; and
listed/mature-stage companies.
The segmentation is aimed at bol-
stering Bumiputera entrepreneur-
ship and raising the competitiveness
of firms in key sectors, including
agriculture biotechnology, animal
fat substitutes for the halal industry
and oil recovery technology.
Micro enterprises will be promot-
ed through funding, capability-
building and infrastructure provi-
sion in a means-tested approach
aimed mainly at improving the liveli-
hood of Bumiputeras in the bottom
40 per cent of households.
For businesses in the development
and growth stage, support will focus
on promoting consolidation and
scaling up to be more competitive.
For mature companies, assistance
will include government-to-govern-
ment negotiations to open up new
markets, while government pro-
curement, licences and privatisation
will be used to promote participation
in strategic areas.
All support, whether in the form of
funding or through licences and con-
cessions, will be based on merit and
take into account the Bumiputeras
ability to become independent of
government assistance.
To produce Bumiputera industry
champions, Ekuiti Nasional Bhd
(Ekuinas) will receive RM4.5 billion
from the government and raise extra
funding from the private sector to
invest in growth-stage companies.
To boost Bumiputera wealth own-
ership, several investment institu-
tions, such as real estate investment
trusts, will be set up to lower the
entry barrier for Bumiputeras to
invest in commercial as well as in-
dustrial properties. These institu-
tions investment capability will also
be strengthened.
In addition, more efforts will be
made to unlock the value of Bu-
miputera assets, including land.
To enhance Bumiputera human
capital value, more scholarships will
be given for postgraduate pro-
grammes in renowned institutions;
more research and postgraduate
training programmes will be made
available and more Bumiputeras
will be involved in attachment and
overseas secondment programmes.
Companies which have been given
large government contracts and
benefited from the pre-packaged
special incentives under the pro-
vision of foreign direct investment
incentive schemes will be asked to
commit to balanced employment
targets, training programmes or at-
t achment / s econdment pr o-
g rammes.
Government-linked investment
companies will establish similar pro-
grammes with their major business
partners and overseas acquisitions.
The move to bolster Bumiputera entrepreneurship will also involve raising the competitiveness of firms in key sectors.
Iocus on high-density cIuster deveIopment
A more IiberaIised services
sector to boost opportunities
DURING the Ninth Malaysia Plan
(9MP), the government had iden-
tified five growth corridors, namely
Iskandar Malaysia, the Northern
Corridor Economic Region (NCER),
the East Coast Economic Region
(ECER), the Sarawak Corridor Re-
newable Energy (SCORE) and the
Sabah Development Corridor
For the 10th Malaysia Plan
(10MP), the economic development
of regions will be accelerated by
focusing on a limited number of
high-density clusters in the corri-
dors that have sector and geo-
graphical advantages.
Iskandar Malaysia: The corri-
dor will further draw investments
into five identified areas
education, healthcare, finance, cre-
ative industry, logistics and
tour ism.
Among the key projects will be
the Johor Premium Outlet and the
MSC Cybersport City, which will
lead to economic spin-offs and
equal opportunities in employment
and business to the surrounding ar-
e a s.
Northern Corridor Economic
Region: The key outcomes targeted
comprise four main sectors to
become a modern food zone with
efficient technology-driven food
production, commercial-scale
farming, farming of new crops, live-
stock and downstream agriculture
activities; to move up the manu-
facturing value chain into high val-
ue-added activities like wafer fab-
rication, chip design and biotech -
n ol og y; to become a premier
destination for tourists, especially
for eco and heritage tourism; and to
become a major logistics hub for
imports and exports, leveraging on
Penang International Airport, Sec-
ond Penang Bridge, double tracking
and the augmentation of the Penang
Por t.
East Coast Economic Region: All
economic activities will be concen-
trated within six identified areas,
namely the ECERSpecial Economic
Zone as the manufacturing and
commercial services hub, the dis-
tribution and procurement centre,
Cross Border Development ( Tu m p at -
Kota Baru-Bachok-Tok Bali- Besut),
Kuala Terengganu City Centre-
Kenyir-Dungun Triangle, Mersing-
Rompin, Gua Musang-Kuala Lipis
and Bentong-Raub.
Sarawak Corridor Renewable
Energy: Five growth nodes identi-
fied are Tanjung Manis, Mukah,
Samalaju, Baram and Tunoh.
Mukah will be developed into a
smart city and will serve as the ser-
vice and nerve centre for the cor-
ridor; Tanjung Manis will be de-
veloped into a leading regional port
city and halal hub; Samalaju will
become the new heavy-industry
centre; while Baram and Tunoh will
focus on tourism and resource-
based industries.
Economic spillovers are also ex-
pected to help the corridors sec-
ondary growth areas like Semop,
Balingian, Selangau, Samarakan,
Bakun and Nanga Merit.
Industries that will be promoted
and developed include aluminium,
glass, steel, oil-based, palm oil, fish-
ing and aquaculture, livestock, ma -
rine-engineering and tourism.
Sabah Development Corridor:
The focus will be on six develop-
ment areas.
1) Sandakan-Bel uran-Ki n-
abatangan Bio-Triangle: Beluran
and Tongod Agropolitan, Agrobio
Innov ation Zone-Sandakan Educa-
tion Hub, POIC Sandakan.
2) Lahad Datu-Kunak-Sempor-
na-Tawau Agro Marine Belt: POIC,
Integrated Agro-foodZone andMa-
rine Industry and Tourism Zone.
3) The Interior Food Valley:
Keningau Integrated Livestock Cen-
tre, fruits and herbal products with-
in the Interior Agropolitan Zone.
4) Oil and gas clusters: Petro-
chemical complex, oil and gas sup-
port services, oil refineries and tank
farms and power plants.
5) Kinabalu Gold Coast Enclave:
creative industry cluster, wellness
and healthcare, floriculture and
speciality natural products, marine
sports, signature resorts and hol-
iday homes.
6) Brunei Bay Integrated Devel-
opment Area to develop a multi-
model logistics, tourismand water-
front development, livestock, food
crops, fisheries and aquaculture,
and halal products.
HE government has set out
several measures to ease and
reduce the cost of doing busi-
ness and stimulate growth under the
10th Malaysia Plan (10MP) to sup-
port the private sector.
It will deliver a supportive reg-
ulatory environment and a more lib-
eralised services sector to open up
more opportunities for investment
and business. It will also remove
market distortions and promote fair
competition at a level playing field.
The private sector will be able to
expand opportunities to invest from
the new wave of privatisation and get
support from a facilitation fund.
The 10MP will also promote a
better mechanism to support local
businesses in the export market.
The small- and medium-sized en-
terprises will gain in terms of easier
rules, more programmes to enhance
capacity and a better support system.
They will also be able to benefit from
new investment opportunities under
the national key economic areas
Meanwhile, under the 10MP, the
private sector has been asked to
invest in new growth areas and move
up the value chain. It also needs to
spend more on innovation and skills
i m p r ove m e n t .
In the effort to establish a world-
class infrastructure, the government
has many times stressed the need to
expand the broadband reach.
According to a World Bank study, a
10 per cent rise in household broad-
band penetration can increase gross
domestic product growth by more
than one per cent. The government,
therefore, has targeted to raise
household broadband penetration to
75 per cent by end-2015 via two main
initiatives, namely high-speed broad-
band (HSBB) and broadband to gen-
eral population (BBGP) which use
wired and wireless technologies.
The national broadband rollout
will cost some RM2.6 billion. The cost
of HSBB rollout will be undertaken
by the private sector, while BBGP will
be partly funded by the Universal
Services Provision Fund.
Another area of focus to support
growth is upgrading the infrastruc-
ture to enhance access and con-
nectivity which includes rail devel-
opment, maritime and airport.
The New Energy Policy (2011-
2015) is vital to attract new invest-
ments as well as encourage indus-
tries to expand into high value-added
a c t i v i t i e s.
The government aims to boost household broadband penetration via two main initiatives high-speed broadband
and broadband to general population.
8etter handIing of resources
|mprovements to the quallty of servlce and coverage of essentlal publlc utllltles
wlll be enhanced to ensure sustalnablllty from both an operatlonal and
envlronmental perspectlve
ticketing for
kIang VaIIey
AN integrated cashless ticket-
ing systemis poised to be in-
troduced across all 16 public
transport operators in Greater
KL otherwise known as the
Klang Valley.
The system would eliminate
the need for multiple tickets
for various operators. This will
cut down the travel time.
The cashless ticketing is
part of the governments ini-
tiative to promote a seamless
system across transportation
modes and operators.
Information on stations and
schedules will be made acces-
sible to passengers, with bus
stops to display such informa-
tion for operators.
A website will also be set up
for people to get updates onall
kinds of public transport.
Apart from the cashless
ticketing system, the delivery
of 35 sets of four-car trains is
set to quadruple the number
of passengers per hour to
98,000 of the Kelana Jaya
Light Rail Transit linefrom the
current 24,000 users.
The KTM Komuter system
will experience a similar
change with 38 six-car Elec-
tric Multiple Units to be deliv-
ered next year and benefit
over 500,000 commuters dai-
l y.
Efforts will be directed to-
wards increasing one-way
journeys within an hour with
fewer than four transfers.
A total of 14 of the city cen-
tre bus hubs will be upgraded
while the construction of the
inter-urban transport termi-
nal in Gombak will start dur-
ing the 10MP period.
Relevant agencies will also
be ropedin by the government
to increase the number of bus
stops near residential areas.
Outside the Klang Valley, the
government is mulling smaller
scale approaches to increase
the capacity of public trans-
por t f or medi um- s i z ed
cities, like trams in Malacca
andenhance river transporta-
t i on as a mode of publ i c
transport and as a tourism
New tariff to support
renewabIe energy efforts
THE government will be introducing
the feed-in tariff (FiT) of one per cent
to be incorporated into the electricity
tariffs of consumers to support the
development of renewable energy
(RE) in the 10th Malaysia Plan.
The mechanism allows electricity
produced from RE to be sold to util-
ities at a fixed premium price and for
a specific duration.
As such, there will also be an es-
tablishment of a Renewable Energy
Fund from the FiT and to be ad-
ministered by a special agency, the
Sustainable Energy Development
Authority under the Energy, Green
Technology and Water Ministry.
The Renewable Energy Act is cur-
rently being drafted by the Energy,
Green Technology and Water Min-
istry and the bill is expected to be
tabled in Parliament in October.
If passed by Parliament, the tariffs
will be implemented early next year.
The government is also looking to
ensure equitable and sustainable
utilisation of resources by co-opting
local communities in conservation ef-
forts as they play a big role in sus-
tainable use of resources and con-
servation activities.
The plan will also be focusing on
two main areas. Efforts will be made
to develop a roadmap for climate re-
silient growth and enhancing con-
servation of the nations ecological
assets. A dual strategy in addressing
climate change impacts will be
adopted through adaptation strate-
gies to protect economic growth and
development factors fromthe impact
of climate change and mitigation
strategies to reduce emission of
greenhouse gases.
LONG-TERM strategy for wa-
ter resource management un-
derlined by the National Wa-
ter Resources Policy (NWRP) will
ensure efficient and effective man-
agement of the resource to cater to
growing demands.
Other measures include:
Expanding the implementation
of the Integrated Water Resources
Management and Integrated River
Basin Management approaches in
planning, managing, protecting and
rehabilitating water resources and,
A RM5 billion fund for flood-
mitigation programmes.
A restructuring of the water ser-
vices industry, covering water supply
and sewerage services, will also en-
ter the final phase since its inception
during the Eighth Malaysia Plan pe-
r iod.
Some of the key focus areas:
Full migration of state water
operators to the new licensing
regime will be completed. Upon mi-
gration, they will be governed by the
Water Services Industry Act, 2006
and regulated by the National Water
Services Commission;
The phasing in of a tariff-setting
mechanism to allow full recovery of
costs to encourage sustained invest-
ments in upgrading and rehabili-
tating water treatment plants and
distribution systems. The tariff in-
crease will be segregated in bands
based on consumption levels;
National water supply coverage
will increase from 93 per cent of
population last year to 97 per cent in
Sewerage services for house-
holds served by the grid and septic
tanks will be extended from 28.8
million to 37.7 million. Some RM1.1
billion will be allocated to replace
pipes and old meters to improve
water quality and reduce losses in
supply; and,
Parcelling out the operations of
centralised sewerage services to
state water operating companies. An
integrated tariff for both water and
sewerage services will better cap-
ture the cost of service provision.
DEVELOPMENT of alternative
sources of energy, particularly hydro
as well as importation of coal and
liquefied natural gas by 2015 will
improve security of supply.
Initiatives to increase generation
capacity include:
In Peninsular Malaysia, two hy-
droelectric plants to be commis-
sioned in Ulu Jelai and Hulu Tereng-
ganu with a combined capacity of
6 2 2 M W;
In Sabah, three new power plants
to be commissioned with a combined
capacity of 700MW;
In Sarawak, the 2,400MW Bakun
Hydroelectric Project to be commis-
sioned in stages; and,
Transmission and distribution
systems to be strengthened and ex-
By 2015, the System Average In-
terruption Duration Index, a mea-
sure of supply reliability, is expected
to improve from 68 to 50 minutes per
customer per year in Peninsular
M a l ay s i a .
In rationalising the subsidies on
gas, prices for the power and non-
power sectors will be revised every
six months to reflect market prices.
A PROJECTED household broad-
band penetration of 75 per cent by
the end of 2015 will be achieved by
High-Speed Broadband (HSBB) and
Broadband General Public (BBGP)
i n i t i at i ve s.
THE solid waste management and
public cleansing responsibilities will
be transferred to the Federal Gov-
ernment, allowing local authorities
to focus on core functions.
The collection of household solid
waste will be fully privatised to three
c o n c e s s i o n a i r e s.
197 cIinics, 8 hospitaIs to be buiIt
Putting a roof over bottom 40pc househoIds
poIice to
heIp out
MEASURES are being taken to re-
duce the crime index by an annual
average of at least five per cent
f r om January this year to D ec e m-
ber 2015.
They include:
deploying an additional 3,150
volunteer police from the Peoples
Volunteer Corps and Malaysian
Civil Defence. This is set to expand
to 5,000 volunteers by 2015;
allocating RM2.4 billion to up-
grade police stations and improve
policemens living quarters;
introducing new measures to
curb drug abuse and improve dr ug
treatment to reduce street crimes.
Fifty per cent of snatch thieves
were drug addicts;
allocating RM120 million to
encourage volunteerism such as in
Skim Rondaan Sukarela, a volun-
tary community activity under the
Rukun Tetangga programme; and,
expanding the Rakan Cop
scheme to encourage greater en-
rollment and educate people on
infor mation useful for police.
Safety and security will also be
enhanced with the installation of
496 closed-circuit television cam-
eras in hotspots across the coun-
tr y.
The Safe Cities Programme will
also get a RM510 million funding.
The programme, which brings
together the police, local author-
ities, National Anti-Drug Agency,
the Welfare Department and other
relevant bodies, will tackle local
problems with initiatives to en-
hance the environment and im-
prove the sense of security for cit-
izens and visitors.
O ensure that healthcare re-
mains accessible and afford-
able, the government will in-
troduce a cost sharing option topro -
vide a wider choice of health
services for the rakyat.
The existing legislation of the
healthcare system will be reviewed
together with the introduction of
new regulations to emphasise ac -
creditation, credentials and privi-
The regulatory and service roles
in the healthcare system will be
streamlined tofocus on governance,
stewardship and enforcement.
To increase the quality, capacity
and coverage of healthcare, the gov-
ernment is expanding its primary
care services by building 197 new
clinics costing RM637 million dur ing
the first-half period of 10MP.
Four new and four replacement
hospitals, costing around RM600
million, are also planned for the first
two years of the 10MP.
Provisions for mobile clinics, fly-
ing doctor services and village
health promoters will be increased
to cater to people living in remote
a r e a s.
In order to shift towards wellness
and disease prevention, the govern-
ment is planning to bolster th e
healthy lifestyle campaign am ong
the rakyat.
The doctor-to-population ratio is
also expected to improve from
1:1,380 in 2005 to 1:1,597 by 2015,
while the nurse-to-population ratio
will improve from 1:592 to 1:200
during the same period.
The government will also utilise
more specialists from the private
sector to cope with the increasing
demand for trained medical staff.
Other efforts to meet the rising
demand for quality healthcare are
organising more specialist training,
improving post-basic training for
healthcare personnel, addressing
s t af f retention and improving the
quality of private healthcare pro-
f e s s i o n a l s.
HOUSING, specifically low-cost
housing, is an important agenda
that needs to be addressed.
This is to ensure that the bottom
40 per cent of households and
squatters are able to live in per-
manent homes.
Under 10MP, 78,000 units of new,
affordable public houses will be built
by the Federal Government across
the nation for individuals and fam-
ilies with a household income of less
than RM2,500 a month.
Under the 9MP, 128,000 units of
low-cost housing were built.
Last year, the government re-
ceived 13,529 applications for pub-
lic housing while a survey of states
showed that there were 97,620
squatter families who had yet to be
relocated to permanent housing.
The government will also ratio-
nalise and streamline the roles and
responsibilities of federal agencies
involved in the provision of public
houses to one federal agency.
It will also establish the Housing
Maintenance Fund with an initial
capital of RM500 million to assist
public housing residents in repair s
and maintenance of their units.
It will be based on a matching
grant where half of the contribution
comes fromresidents through their
joint management body or manage-
ment corporation.
The fund is an addition to the
Tabung Perumahan 1Malaysia
Fund, established in February
which has similar functions for low-
cost private housing in Kuala
L u m p u r.
Existing laws, including the Uni-
form Building By-Laws 1984, will be
reviewed to incorporate the min-
imum specifications for houses to
ensure quality in housing projects.
Development of environmentally
friendly townships and neighbour-
hoods will be encouraged through
the introduction of Green Guidelines
and a Green Rating System.
Putrajaya and Cyberjaya will be-
come the flagship Green Town-
The government will also contin-
ue rehabilitating abandoned hous-
ing projects.
As of April 30, there were 107
abandoned projects with 38,600
units involving 25,300 buyers.
8etter days ahead for minority communities
8uiIding strong famiIy unit
with positive vaIues a priority
RuraI foIks to en|oy
better amenities
ORK from home policies
will continue to be promot-
ed under the 10th Malaysia
Plan to encourage a more family-
friendly workplace.
A strong family unit with positive
family values, shared responsibilities
and strong marriage institution will
continue to be the priority of gov-
er nments development agenda.
In order to empower women, the
government will increase womens
participation in the workforce, in-
crease the number of women in key
decision-making positions, improve
the provision of support for women
in challenging circumstances (wid-
ows, single mothers and those with
lower incomes) and eliminate all
forms of discrimination against
wo m e n .
The government is also creating a
special committee, chaired by the
women, family and community de-
velopment minister, to implement
gender sensitisation programmes in
the public sector.
Beside increasing the efforts to
achieve a 30 per cent quota of de-
cision-making positions to be held by
women, the government is also de-
veloping specialised courses for them
to improve their confidence and soft
s k i l l s.
To create a young generation
which is forward-looking, the gov-
ernment is formulating youth de-
velopment programmes to instil in
them strong character.
Also, volunteerism will be promot-
ed to develop greater unity among
youth and the government is
strengthening youth associations
through leadership and manage-
ment courses.
As for children, importance will be
placed on protecting and providing
for their well-being.
The police will be conducting
screening for child carers to ensure
the safety of the children under the
care of external parties.
The government is also enhancing
the quality of childcare services,
strengthening related support pro-
grammes and upgrading welfare in-
s t i t u t i o n s.
The government will also focus on
enhancing elderly-friendly infras-
tructure and improving access to
affordable healthcare and ensuring
adequate provision of shelters.
The database on employment op-
portunities for older persons under
Jobs Malaysia will be promoted ac-
tively to create awareness among
those who are looking for a job and
for the employers and the 100 per
cent tax rebate on costs to retrain
older people will be continued.
To integrate persons with disabil-
ities (PWD) into society, the govern-
ment will provide easy access to
transportation and buildings. The
government will also seek to provide
job opportunities for PWDs and look
into establishing specialised learning
institutions and vocational schools
for them.
ETHNIC, minorities including the
Orang Asli communities, should
see their lives improve under the
10th Malaysia Plan.
These groups come under the
bottom 40 per cent of households,
which is one of the four principles
the 10MP is based on to support the
countr ys growth and create a
more united progressive society.
Integrated development pro-
grammes and specific enhance-
ment assistance will be implement-
ed to address the poverty of Sabah
and Sarawak Bumiputeras, with a
reduction target of 12 per cent and
three per cent respectively by
Last year, the target was 22.8 per
cent for Sabah and 6.4 per cent for
S a r awa k .
In the same period, the govern-
ment aims to reduce poverty
among Orang Asli to 25 per cent
from last years target of 50 per
To achieve this target, a land
development and ownership pro-
gramme will be implemented to
allow Orang Asli to become land
owners and active farmers.
Their reserve land will be de-
veloped for agriculture use by the
government. A similar programme
is also being considered for ethnic
minorities in Sabah and Sarawak.
Assistance, including training
and funding, will be provided for
these groups to establish home
stays and eco-tourism services.
Initiatives will also be taken to
assist the communities to set up
cooperatives to market their hand-
i c r a f t s.
Apart from ethnic minorities and
Orang Asli, others that fall under
the bottom 40 per cent household
include residents of Chinese new
villages and estate workers.
The 10MP aims to increase the
main income of the group to
RM2,300 by 2015.
RURAL communities will be
provided with adequate supply
of treated water and sanitation
facilities, access to road net-
works, electricity supply and
better communication technol-
ogy in the 10th Malaysia Plan
per iod.
A total of 6,312km of paved
road will be constructed in the
peninsula, 2,540km in Sabah
and 2,819km in Sarawak by
The government will also in-
crease the extent of treated wa-
ter in rural areas by upgrading
and building new pipelines and
water treatment plants.
By the end of 2015, 117,000
additional houses in Peninsula,
112,700 in Sabah and 87,400 in
Sarawak will be supplied with
treated water.
The coverage of electricity
supply in rural areas will be
e xt en d ed where about 6,000
more houses will be supplied
with electricity in the peninsula,
59,000 in Sabah and 76,000 in
S a r awa k .
The rural population will also
be exposed to ICT facilities and
software packages to improve
their knowledge.
To create a high-income na-
tion based on innovation,
1Malaysia telecentres will be set
up in sub-districts for the local
community to learn new skills
through the extensive use of
I C T.
The short take off landing
(STOL) airstrips will be upgrad-
ed by the government to in-
crease connectivity and acces-
sibility for rural populations in
Sabah and Sarawak.
In the peninsula, new stage-
bus routes and new express bus-
es plying between rural centres
and towns are planned to meet
the needs of the rural popu-
l at i o n s.
To ensure effective implemen-
tation of rural basic infrastruc-
ture development programmes,
the government is focusing on
improving administrative pro-
cesses, ensuring adequate sup-
ply of manpower, machines and
materials, and effective project
A land development and ownership programme will be implemented to
allow Orang Asli to become landowners and farmers.
Compact urban Iiving
EGINNING 2011, the goverment
will focus on creating attractive
and enjoyable cities and making
them compact and efficient.
Under current growth projections,
urban areas in Peninsular Malaysia
will need to accommodate six million
new residents between 2010 and
To accommodate the growth, com-
pact urban development will be en-
couraged. The government will facil-
itate better use of mechanisms to man-
age growth such as zoning, urban
growth boundaries, growth control
regulations and other development in-
c e n t i ve s.
This will allow cities to achieve more
intensive developments that are de-
signed to ensure long-term efficient
usage and in forms that are safe and
sensitive to their surroundings.
To unlock the development potential
within cities, urban renewal and re-
development of brownfield sites will be
pursued through appropriate incen-
tives and mechanisms.
One such incentive is the implemen-
tation of mechanisms to facilitate the
sale of collectively-owned develop-
ments to encourage redevelopment, or
an en-bloc sale mechanism.
High-potential government-owned
land and properties will also be re-
developed with the government active-
ly seeking for opportunities to partner
with the private sector.
The development of government
land will be managed to ensure that
the types of development commensu-
rate with the commercial potential and
market value of the land.
The government will also encourage
people-centric activities within an ur-
ban landscape.
Cities will be designed to reduce the
need for travelling through mixed-
used developments in neighbour-
hoods, combining residential, retail
and office uses.
State and local authorities will be
encouraged to move towards having a
higher proportion of mixed-use com-
mercial or residential zoning in their
Structural and Local Plans.
However, it must be integrated with
a well functioning public transport sys-
tem as transit-oriented development is
Open spaces for activities and green
corridors will be incorporated in local
plans as they attract people to these
public spaces.
Local authorities will be supported
in creating a seamless network of in-
terconnected green spaces within the
cities, connecting activity hubs and
housing sites with amphitheatres, cy-
cling and pedestrian pathways.
Waterfronts will be rejuvenated to
make the cities more vibrant by
restoration projects for the rivers and
wat e r f r o n t s.
The government is also planning to
transform the arts and culture scene.
Noting that the transformation of the
arts scene requires addressing both
artists and audiences, support for
artists will be provided in the form of
creative industry grants or loans for
the creation of art clusters or
Perkampungan Seni under the 10th
Malaysia Plan.
Open spaces for activities and green corridors will be incorporated in local plans as they attract people to these public