Economic Transformation

Programme
Open Day
Key Note Address

YB Senator Dato Sri Idris Jala

CEO of PEMANDU
Minister in Prime Minister’s Department
PM introduced
4 strategic thrusts
to transform us
towards
Vision 2020
 People First
Performance Now
was a first step
to unite our people
We established
the GTP based on
what the rakyat
wants
Public
Merdeka
Perception
Centre Polls
Survey

Cabinet Media
Polls Analysis
The GTP is
already delivering
results in
8 months ....
 15% drop
in overall
Index Crime
39% drop in
street crime
 2.4 million
increase in
LRT ridership
 54,569 children
are benefiting from
1,358 pre school
classes
and 9,816 schools
have been ranked
Out of 44,643 households,
46% reduction
(23,679) of
hardcore
poor
3712 government
contracts
have been
published on line

myprocurement.treasury.gov.my
 520 arrests &
192 people convicted
of corruption
have been
published
in MACC
website
www.sprm.gov.my
Now lets look at
our economy..
Malaysia is one of only
13 countries in the world
to have sustained
growth
of over
7% for 25 years
or more since 1945…
 15 Recent global events had
brought us down..
10
8-9%
GDP Growth, 1990-2010 (%)

5
4-5%

0
1990 2000 2010

-5
1997-1998 Asian Dot-Com 2008-2009 Global
Financial Crisis Bust, 9/11 Financial Crisis

-10
Source: Department of Statistics Malaysia, Ministry of Finance
We need to do both..

increase reduce
revenue costs
We are showing
strong signs of
recovery and growth..

17
Despite a slight drop
in the WEF ranking,
IMD Competitive Index
10 th

ranking has improved

significantly..

Source : IMD
18th
 Our
GDP growth
for first half
2010 was..

9.5 %
 We also
reduced our
Budget 2010
by..
RM

25 billion
 We started
to rationalize
our subsidy
whilst protecting
the poor
RM

760 million
savings
Our ringgit is
strongest in the
last 13 years

22
More investors are
investing in our
country...
In order to achieve
a high income nation,
our GDP must grow
at least..

6 %
per annum

2011 2020
We have launched the
New Economic Model
as a framework
to begin our
journey
 NEM - Making us
a rich country,
for everyone & for a long time

Target USD 15,000

High Income GNI per capita by 2020

Quality
Enables all of Life Meets present
community needs without
benefits from Inclusiveness Sustainability compromising
the wealth of future generations
the country
The question is..
How do we get there?
We need both...
GNI per capita (USD) Target
1 NKEAs 15,000
(drivers)
Current
6,700
+ 2009 NKEA 1 NKEA 2 NKEA 3 NKEA 4 NKEA 5 Others 2020
SRIs
2 (enablers)

Re-energising private sector

Developing quality workforce
Competitive domestic
economy
Strengthening public sector
Transparent & Market
Friendly
Affirmative Action base
Building knowledge
infrastructure
Enhancing sources of growth
Ensuring sustainability of growth
ETP is not
a Plan

• Strategic intent • Projects

• Strategic plan • Action items
• Blueprint • Timeline
• Strategy document • Project owner
• Targets

It is a Programme
30,000 feet

3 feet
What is a NKEA?
A National Key Economic Activities (NKEA)
is a driver of economic activity that has the
potential to directly and materially contribute a
quantifiable amount of economic growth to the
Malaysian economy
What does
NKEA do?
NKEA will
USD 15,000
RM 48,000
boost our Per capita

Gross National
Income (GNI)

USD 6,700
RM 23,770
Per capita
We conducted
“workshop of a thousand”
to achieve consensus
on the industry focus
for the country..
1000+ people
194 MNCs, GLCs, SMEs,
Ministries & Gov agencies
 Wholesale
Financial & Retail
Services Tourism

Greater Oil, Gas &

KL Energy

...and
Business
Services
finalised Education

12 NKEAs
Agri Electrical
culture & Electronics

Comms
Content Healthcare
Infrastructure
Palm Oil
After finalizing the 12 NKEAS,
we ran the NKEA Labs

1 Increase GNI per capita from USD7,000 to

USD15,000 by 2020 (as per NEM & 10MP)
2 Identify projects to achieve the above target

3 Ensure the projects are mainly privately

objectives

funded
4 Ensure more job creation and shift towards
higher income bracket
More than 500
lab members across
210 companies,
13 NGOs &
32 Government agencies
participated full time
for 8 weeks
Retail Education Petroleum and gas Healthcare

Banking and financial

Tourism Palm oil services Islamic financial services
To find ways to increase
our country’s income
in the next
10 years...

2010 2020
Result of the 12 labs
(8 week work)
is phenomenal...
12 Lab Reports
131 Entry Point Projects
60 Business opportunities
3.3 million jobs opportunities
Remember..

ETP is not a Plan

It is a Programme
 The ETP Roadmap
to achieve a
high income 523
86
nation 112
(RM 275 b)
USD (billion)

138 (RM 359 b) (RM 1.7 t)

188
(RM 442 b)
(RM 661 b)

2009
1 Entry 2 Business 3 Growth in 2020 GNI
GNI Point Opportunities other Target
Projects (Biz Opps) Sectors
(EPPs)
11 Sector
Note : Nominal GNI (USD billions). Assuming population by year 2020 is 31.6 NKEAs
million
 131 Entry Point Projects
(EPPs) worth
USD 138 billion 523
86
(RM 275 b)
112
USD (billion)

138 (RM 359 b) (RM 1.7 t)

188
(RM 442 b)
(RM 661 b)

2009
1 Entry 2 Business 3 Growth in 2020 GNI
GNI Point Opportunities other Target
Projects (Biz Opps) Sectors
(EPPs)

Note : Nominal GNI (USD billions). Assuming population by year 2020 is 31.6 million
 Greater KL
Incremental
MRT
9 EPPs and 66% Private 552,000
GNI of RM
3 BOs Investment new jobs
392 billion

• Largest infrastructure
project in Malaysia
• 141 km of three new
corridors
• Integrated with existing rail
systems – KTM Komuter,
Monorail and LRT
• Generate an estimated
cumulative employment
of 130,000 workers of
various disciplines
 Incremental
9 EPPs and 66% Private 552,000
GNI of RM
3 BOs Investment new jobs
392 billion

10

9 7

2
Greater KL
1
River of Life
 Incremental 97.7%
8 EPPs and Net 42,000
GNI of RM Private
3 BOs new jobs
125 billion Investment

Improving Oil Extraction Rate

Palm Oil
Three core recommendations…
•Proper Grading of Incoming FFB at
Mill Gate
•FFB price must be paid based on
quality of FFB received
•Improve Milling Efficiency

1 3

Delivery from Estates Proper FFB Grading Milling Efficiency

2
Increasing the OER from
FFB Quality based Payment
20.5% to 23%
 Incremental 97.7%
12 EPPs and 497,000
GNI of RM Private
3 BOs new jobs
67 billion Investment

Tourism Premier Shopping District

7 km of shopping and
entertainment districts

Kuala Lumpur
Convention Centre
Key Connectivity
• KLCC (convention centre) to
Pavilion’s Raja Chulan bridge

• Pavilion across Jalan Bukit

Pavillion
Bintang to Fahrenheit 88
Starhill/
Lot 10 • Fahrenheit 88 to Lot 10

• Sg Wang to Berjaya Times

Square’s Jalan Imbi bridge
Berjaya
Times Sq • Sg Wang to Federal
hotel/Jalan Pudu
 Incremental 97.7%
12 EPPs and 497,000
GNI of RM Private
3 BOs new jobs
67 billion Investment

Tourism Bio Diversity

Top 10 - Terrestrial Super 7 - Marine

• Hornbills • Proboscis monkeys • Dugong • Turtles

• Elephants • Langurs • Coral • Macro life (Muck

diving)
• Tapirs • Rafflesia • Sharks
• Reef fish
• Tigers • Orchids • Rays
Layang layang Lok Kawi Sepilok
• Orang Utan • Pitcher plants
Lojing Perhentian
TAR Park Turtle Island
Langkawi
K. Gandah Kinabatangan
Limbang
Belum
Mangroves
Taman Negara Tioman Greater
K. Gula
Sipadan
Pulau Sibu
Frasers Hill Selangor
Kuching Maliau Basin Semporna
Wetlands
Semenggoh Mulu Danum
Major Discovery Centers Johor

Potential GBH sites

Endau Rompin Bako Batang Ai
 Incremental 99.7%
10 EPPs and 52,300 new
GNI of RM Private
7 BOs jobs
132 billion Investment

Oil & Gas EPP : Create Oil Field Services (OFSE)

ILLUSTRATIVE
2020 Total
new jobs:
2020 GNI impact:
40,000 USD4.5
Billion
Aberdeen Stavanger

Houston

What it takes to make it happen

▪ Attract major international OFSE
companies to bring a sizeable share
of their global operations to
Malaysia
▪ Build regional champions
– Rationalize fabricators
– JVs with world class players
There are even more!
So please visit
our booths...

13
booths
....and give us your
written feedback
 GNI Target (USD 15,000 per capita)

EPPs are
catalytic
and
transformational

Entry Point Project (EPP)

Business Opportunity (B.O)

Unidentified / Other Unknown projects

Note : Illustrative
Most importantly
we do not pick
winners....
...or play God
The 131 EPPs spread
throughout Malaysia...

Note : Illustrative
 25 EPPs
benefit
rural
communities

8.7 m
People lives in
rural areas

Source : PEMANDU Team Analysis / United Nations (2007)

 Additional Job Opportunity (rural areas)

Wholesale 196,696
& Retail

Oil Palm 94,100

Agriculture 83,485

CCI
with
3,135

Tourism 2,919
potential
320,000 jobs
to be created
in the rural sector
 The remaining 106 EPPs
will largely benefit
urban communities

19.3 m
People lives in
urban areas
Source : PEMANDU Team Analysis / United Nations (2007)
This shows we are
inclusive...

High Income

P Inclusiveness Sustainability
 60 Business Opportunities
worth USD 112 billion
523
86
(RM 275 b)
112
USD (billion)

138 (RM 359 b) (RM 1.7 t)

188
(RM 442 b)
(RM 661 b)

2009
1 Entry 2 Business 3 Growth in 2020 GNI
GNI Point Opportunities other Target
Projects (Biz Opps) Sectors
(EPPs)

Note : Nominal GNI (USD billions). Assuming population by year 2020 is 31.6 million
Business Opportunities –
USD 112 billion
worth of opportunities
to be identified
in the next
10 years
Business Opportunities –
Therefore, everybody
can participate
Target (USD 15,000 per capita)
92% of the Public Sector

investment 8%
USD 34 b

will come
from the
92%
private USD 410 b

sector
Private Sector*

100% = USD 444 billion

* Includes GLCs & non-GLCs

 The new
engine of growth
Private Sector

will come from

the private sector
This is in line with
the 10th Malaysia Plan..

Private Sector Driven

Public Sector Driven

73% Domestic
Direct
Investment
(DDI)
Early commitment or interest from
private investors is promising…
Investment No of
Category USD billion EPPs Rating

Named investor(s); 7
37
Serious commitment

Close to commitment 10 12

Active engagement 50 34

Early discussions 66 51

No discussion 53 27

Total 216 131

NKEAs will create
additional
3.3 million jobs
by year
2020
 And will also shift towards
higher income
2020 Projected Salary Distribution
Number of jobs, millions

Low Income Middle Income High Income

4.7 4.6
3.7
3.3
2.9
2.3 2.8

1.3
1.2
0.3 0.6
0.2
< RM 750 RM 750 – RM RM 1.5k – RM 3k – RM 5k – RM > RM 7.5k
1.5k RM 3.k RM 5k 7.5k

2020 (Projected) 2009

 8% public funding will
catalyze 92%
of private investment
USD 410 b

+ 3.3 m additional jobs

USD 34 b GNI impact per public

+ dollar spent1 = 7

Personal and corporate

+ tax revenue could
increase to USD36 b –
Public Private USD40 b2
Funding funding
We will
publish
the ETP Book
to the public
Pleasesavethedate

26.10.2010
That marks
historic
journey
into becoming
a high-income
nation by 2020
3 versions for the rakyat
Full version

Executive Summary

video

Avid reader Lazy people Laziest people

Remember, ETP is not
a Plan

• Strategic intent • Projects

• Strategic plan • Action items
• Blueprint • Timeline
• Strategy document • Project owner
• Targets

It is a Programme
 We have the
right ingredients
to succeed..
Malaysia is
big enough

for
everybody..
We will grow our
economic pie
for everybody
by 2020
Is there political will ?
 ETP Roadmap is made public
 ETP is private sector led
 Lets focus
our effort
in growing the
economic pie

action
 talk
and not get
vortexed into
a philosophical
or an academic debate
So private sector
must invest &
grow profitably
Whilst public sector
will facilitate and provide
the necessary support
We are confident (like GTP)
that we can do it....
Therefore all of us
must be
united..
..irrespective of race,
religion &
political
belief
 ..and use our
diversity
as strength to
drive the economy
 We have seen
many, many, many
Malaysian companies
which have successfully
embraced diversity
There are too many examples..

Note : Illustrative
PM is serious
that we need
to transform
our economy…

We need bold radical change

We need speed of decision making & execution
We must act NOW
This bold step & your
commitment will take
us closer to Vision
2020
Thank You