- ETP

Malaysia‟s Transformation Story:
From Message to Passage
YB Senator Dato‟ Sri Idris Jala
Minister in the Prime Minister‟s Department &
Chief Executive Officer, PEMANDU
Invest Malaysia 2011
12 April 2011
PM introduced 4 strategic thrusts
towards developed nation status
People First
Performance Now
1
3
2
• 12 NKEAs
• 6 NKRAs
• 131 EPPs
• 60 Biz Opps
• 29 MKRAs
4
10th & 11th Malaysia Plan
The Connection
• Grow the economy
• Increase revenue
• Increase job / income
We must do both
• Spend the revenue
based on rakyat needs
• Distribute the revenue
(RBI & LIH)
We introduced 6
NKRAs
under the GTP based on
what the
rakyat wants
1
2
3
Fighting
Corruption
Reducing
Crime
Reducing
Poverty
4
5
6
Enhancing
Education
Improving
Rural Basic
Infrastructure
Urban
Public
Transport
Big Results Fast
in 12 months
250 pages of results…
Note : GTP Annual report 2010 can be downloaded at www.pemandu.gov.my
Crime rose for 3 years
Crime
prior to GTP
196,780
209,582 211,645 209,825
Property
theft
Violent
crimes
2006
2007
2008
20091
Types of crime
▪
▪
▪
▪
▪
▪
▪
Theft
Snatch theft
Motorcycle theft
Car theft
Van/lorry/heavy machinery theft
Break-in (night)
Break-in (day)
▪
▪
▪
▪
▪
▪
▪
Robberies without firearms
Gang robberies without firearms
Robberies with firearms
Gang robberies with firearms
Assault
Rape
Murder
Crime
15% drop in
35% drop in
Index Crime
Street Crime
-32,297
-13,193
-15.4%
209,817
177,520
38,030
-34.6%
24,837
2009
2010
2009
2010
Hotspot-based deployment
The Kuala Lumpur Story
ILLUSTRATIVE
Pre-NKRA
NKRA Approach
• 1 Contingent, 5
Districts
• 1 Contingent, 5
Districts
• 22 Balai’s (Stations)
• 22 Balai’s (Stations)
• 501 Sectors
• 11 hotspots, eg
Pudu, Bukit Bintang
• 2,892 police officers
deployed for street
patrolling
5.8
Crime
police officers
assigned to patrol Bukit
Bintang every day
• 2,892 police officers
deployed to patrol at
hotspots
263
police
officers assigned to
patrol Bukit Bintang
every day
U.P.T.
2.43 million
increase in
LRT ridership
192%
improvement in
BET ridership
U.P.T.
BET reduces travel times,
increases ridership
KL Sentral /
Pasar Seni
Current route
▪ Over 30 stops
▪ Passing through Federal
Highway
Federal Highway
KESAS Highway
Bus Expressway Transit
▪ Limited to 4 stops
▪ Using underutilised KESAS
Sri Muda
Shah Alam
Potential reduction in journey times
mins
~ 75
~ 29
KESAS
Sri Muda – KL
Sentral
Current
BET
NPE
Grand Saga
Subang mewah - Kota Dsra - Sentral
Sentral
Penchala
Sg Long Sentral
U.P.T
The new Integrated
Transport Terminal
at Bandar Tasik Selatan
completed…
500 southern buses will
terminate there
634
bus stops
completed and
refurbished
Education
54,569 more children benefited
from 1,500 pre-school classes
(more than 700,000 in total)
9,814 schools
(primary & secondary) ranked
Best UPSR exam
results in 4 years.
R.B.I
775
km of rural roads
have been completed
35,291
rural houses
with clean / water supply
Touching the lives of more than
27,209
rural houses with
electricity supply
16,926
houses for rural poor build
& restored
2 million people
living in the rural area
L.I.H
99.76%
Reduction in
hardcore poor
Hardcore Poor reduction by Month
# of Ketua Isi Rumah (KIR)
As of
31/12/2010
18,127
108
Nov
Dec
Building blocks
Corruption
against corruption
1
2
▪
▪
▪
3
4
▪
▪
Whistleblower Protection Act
came in to force on 15 December
2010
5
18 new corruption courts for
speedy trials.
Chief Justice’s circular to
complete all corruption cases
within 1 year
6
“Name-and-Shame” – 328
corruption offenders (including
picture, IC No) published in
MACC website to date
(www.sprm.gov.my)
7
Guidance issued on support
letters by KSN on 8 March
2010
▪
▪
▪
▪
▪
Competitive tender as default
process
4,500 government contract
awards published on line (as
of 24th March)
Implementation of Integrity
Pacts via Treasury directive, for
Government contracting
Corporate Integrity Pledge
launched
Compliance units established
in key law enforcement
agencies; joint training
conducted
Heading the right way…
Corruption
1.
Index (CPI) Survey:
1 TI Corruption Perception
Malaysia ranked 56th  4.5 (2009) to 4.4 (2010)
1.
2 TI CPI constituent surveys shows improvement in 2010 vs.
2009
P
P
P
Heading the right way…
Corruption
48%
(2010)
Transparency
International
Global Corruption
Barometer survey
showed significant
improvement
28%
(2009)
Endorsement on GTP Results 2010
1
International Panel Review
Committee
Sir Michael Barber
Partner, McKinsey UK; ex-Head of Prime
Minister‟s Delivery Unit (PMDU) of Tony
Blair Administration
Michael Hershman
Co-founder of Transparency
International; Current CEO of the Fairfax
Group
Stephen Sedgwick
Australian Public Service
Commissioner
2
Agreed Upon Procedure (AUP)
by independent auditor
Ravi
Balakrishnan
IMF Resident
Representative, Singapore
Sergei Dodzin
Senior Economist, Asia & Pacific
Department – International
Monetary Fund
Kwak Seung-Jun
Chairman
Presidential Council for Future
and Vision
• Full day workshop with NKRA
Ministries and PEMANDU
• Full day workshop with PM & Cabinet
Ministers
• Validation by Price Waterhouse
Coopers (PWC) on the achievement /
results of 6 NKRAs
GTP Performance 2010 for the 6
NKRAs showed positive results using
all the 3 methods….
No.
NKPIs
2010
Target
Score #1
Traffic
Lights 1
Score #2
(max
100%)
Traffic
Lights 2
Score #3
(Yes, Partial, No)
Traffic
Lights 3
1
Urban Public Transport
100%
107%
107%
97%
97%
78%
P
2
Crime
100%
168%
168%
100%
100%
90%
P
3
Rural Basic Infrastructure
100%
91%
91%
88%
88%
75%
P
4
Education
100%
99%
Get 156%
it from 156%
the book
99%
90%
P
5
Low Income Household
100%
79%
79%
79%
79%
63%
P
6
Corruption
100%
121%
121%
90%
90%
78%
P
Overall composite scoring 120%
120%
92%
92%
79%
P
Source : GTP Annual Report 2010
ic
1
GTP delivered 120% with 79%
expenditure
Method 3Performance 2010
NKRA Overall
Method 2
Score #2
(max
100%)
Traffic No.
Score #3 NKPIs Traffic
Lights 2
(Yes, Partial, No)
Lights 3
Method 1
Method 2
2010
% of#1
2010 Actual
Score
Traffic
Budget
TargetExpenditure Expenditure Lights 1
(RM mil) (Nov 2010;
RM mil)
Score #2
(max
100%)
P
78%Transport
Urban Public
448
100%
396
88%
107%
107%
97%
Y
338
100%
258
76%
168%
168%
100%
3,234
100%
2,372
73%
91%
91%
88%
P
245
100%
118
48%
99%
99%
99%
5
P
60%
Low Income
Household
1,170
100%
1,163
99%
81%
81%
81%
6
Corruption80%
P
8
100%
4
52%
126%
126%
92%
P
80% Overall
5,443
4,310 112%
79%
composite
scoring
112%
93%
%
97%
97%
%
100%
100% 2
Crime
%
88%
88%
3
P
75%
Rural Basic
Infrastructure
%
99%
99%
4
Education88%
%
81%
81%
%
92%
92%
%
93%
93%
1
100%
Saving to the Government = RM 1.133 billion
Source : GTP Annual Report 2010
Lets now look at the Economic
Transformation Programme (ETP)
People First
Performance Now
3
2
• 12 NKEAs
• 6 NKRAs
• 131 EPPs
• 60 Biz Opps
• 29 MKRAs
4
10th & 11th Malaysia Plan
NEM - Making us a rich country,
for everyone & for a long time
High-Income
Enables all
communities
to benefit
from the
wealth of the
country
Target USD 15,000
GNI per capita by 2020
Quality
of Life
Inclusiveness
Sustainability
Meets present
needs without
compromising
future
generations
Overview of ETP
Gross National
Income (GNI)
Transformational
Actions
Jobs
• 31.6 million
population
• 3.3 million
additional jobs
•
•
•
•
12 NKEAs
131 EPPs
60 BOs
Transformational
approach
• Private sector-led
• US$15,000 (RM48,000)
per capita GNI
• USD 523 billion (RM1.7
trillion) GNI
• 6% GDP growth per
annum
Investment
• USD 444 billion (RM1.4 trillion) investment
• 92% private, 8% public investment
• 73% domestic, 27% foreign direct investment
ETP = NKEA + SRI
1
NKEAs
(drivers)
Source: PEMANDU (with EPU)
GNI per capita
Target
15,000+
US$
Current
7,000
2
SRIs
(enablers)
Re-energising private sector
Developing quality workforce
Competitive domestic economy
Strengthening public sector
Transparent & Market Friendly
Affirmative Action
Building knowledge base
infrastructure
Enhancing sources of growth
Ensuring sustainability of growth
Source: NEAC
NKEA 1
NKEA 2
NKEA 3
NKEA 4
NKEA 5
Others
Focus: 12 National Key Economic Areas
(NKEAs)
Competitiveness – Strategic Reform
Initiatives (SRIs)
14
51
with natural homes
within the NKEAs /
NKRAs
Consolidate and monitor
the implementation plans
with the respective NKEAs
/ NKRAs
6 Labs covering the
policy measures
37
which are WIP and
require further
detailing out
following:
1 Intl Standards & Liberalisation
9 policies
Human Capital Development
2
9 policies
3 Public Finance
5 policies
4 Public Service Delivery
7 policies
5 Government‘s Role in Business
5 policies
6 Narrowing Disparities
(Bumiputera)
2 policies
ETP Governance
to ensure delivery
Structure
Secretariat
ETP Forum
Semi-Annual
Economic Council
Weekly
NKEA
Steering
Committee
Investment
Monthly
Committee
Monthly
EPP / BO
owners
Year-round
Lead
Ministries
Respective Ministries /
EPP owners
ETP Updates by PM
Round #1
Round #2
Round #3
Round #4
(25 Oct 2010)
(30 Nov 2010)
(11 Jan 2011)
(8 Mac 2011)
9
9
19
23
projects
Investment: RM5.3b
GNI: RM100m
Jobs: 13,100
projects
Investment: RM8.2b
GNI: RM84.5b
Jobs: 70,500
projects
Investment: RM66.8b
GNI: RM32.5b
Jobs: 52,400
projects
Investment: RM14.75b
GNI: RM20.1b
Jobs: 88,354
60 Projects in 46 EPPs , RM95 billion investment
RM137.2 billion GNI , 224,354 jobs created
35% of EPPs are already off the
ground…
Number of EPPs
RM95 b
RM80.3 b
60
RM13.5 b
RM5.3 b
37
9
18
60 Projects in 46 EPPs , RM95 billion investment
RM137.2 billion GNI , 224,354 jobs created
…worth RM 95 billion of
investment…
RM 57.98 b
RM 37.26 b
4
30
26
60 projects in 46 EPPs
Oil, Gas & Energy
Shell Malaysia starts construction of new
RM800 million diesel processing unit, Port
Dickson
Part of RM5.1 billion commitment in 2011
including:
• Shell MDS wax plant expansion, Bintulu
• Gumusut Kakap deepwater
development, offshore Sabah
* Existing Shell MDS, Bintulu
Tenaga Nasional signed agreement to build
coal-fired power plant in Manjung
• Part of RM4.0 billion commitment in
2011
• Engineering, procurement and
construction agreement with Alstom
Power System SA-led consortium
• Expected completion and
commission by March 2015
* Existing 2,100MW Janamanjung power plant
Palm Oil
Oil palm replanting & new planting
Replanting:
• 264 applicants approved covering 921 ha
• Commitment value: RM6.45 million (5 Apr)
New planting:
• 1,205 applicants approved covering 2,410 ha
• Commitment value: RM16.86 million (5 Apr)
* Illustrative only
Increasing FFB yield
4 cooperatives set up involving 11,492
smallholders and 59,039 ha
* Illustrative only
Tourism
Pulau Gaya Resort, Sabah:
• 14 of 31 rooms completed
• Overall, 35% completed
• Expected completion: 30 June 2012
* Pulau Gaya Resort & Majestic Hotel site pictures
Majestic Hotel, KL:
• Sub-structure completed, superstructure construction in progress
• Overall, 23% completed
• Expected completion: December
2012
Wholesale & Retail
TUKAR
• 16 stores transformed as at 1 Apr
2011
• Four sponsors are Mydin, Tesco,
Carrefour and SKM
* A TUKAR store in Merlimau, Melaka
Mydin
• Opened hypermarket in Bukit Jambul in
Jan 2011
• In total, 14 hypermarkets to be opened in
2011-2014
• Land for all 14 sites purchased for RM165
million
* Mydin Hypermarket, Bukit Jambul
Healthcare
University Malaya
Health Metropolis
• The health planning and architecture design selection process have been
completed. The formal appointment of architects is expected by the end of
March.
• Traffic studies are expect to be completed by May 2011. Clinical
stakeholders will sign off on the schematic designs by June 2011.
• Submission to local authority for “Planning Permission" expected in end of
June 2011.
• Earthworks are targeted to begin in Nov 2011
• Tax incentive discussion started with MOF, expect to be gazetted as "Health
Metropolis" areas by Q3 2011.
Communications Content & Infra
* Client properties
Secured contracts with:
• Best Western Premier
Dua Sentral
• 4 Bangkok Hospital
Group hospitals
• Pullman Resort Bali
• Vietnam Post & Telecom
• KUBTel (for content
partnership)
Cisco has commenced manufacturing of a
wide range of routing and switching products
at its manufacturing partner‟s facility in
Penang.
* A router component at the assembly station
E&E & Education
AUU Sunpower
• Phase 1 of RM2.2 billion solar cell
fabrication facility in Melaka was
officiated by Prime Minister on 15
December 2011 and operational.
• When fully completed in 2013, it is
expected to produce cells capable
of generating 1,400 MW of energy
per year.
* AUO Sunpower plant in Melaka
The Malaysia Education online portal will
be launched by Higher Education Minister
on 12 April 2011
• Six public higher education institutions
have been engaged, three more pending
• One private higher education institution
has been engaged
• Engagement with two government
agencies in progress
Malaysia‟s GNI / GDP
Net Factor
Income From
Abroad
GNI
RM 497 b
RM 355 b
INVESTMENT
RM 111 b
INVENTORY
- RM 14 b
TRADE
RM 71 b
- RM 24 b
GDP
RM 521 b
Source : Bank Negara 2009 Figures
CONSUMPTION
Consumer Confidence
on 4-year high…
• Malaysia is at 9th place globally
• Ahead of Sweden and Vietnam
(both at 103), Thailand (102),
China (100), Hong Kong and New
Zealand (both at 99)
Source : Neilsen Consumer Confidence Index
…and reflected in private consumption
Retail Sales
Car Sales
Property Sales
RM 77b
605,156
RM 97.7b
8.4%
12.7%
35%
RM 71b
536,905
RM 71.7b
Source: MRG 2010 & 2009
Source: MAA 2010 & 2009
Source: Valuation & Property
Svc Dept (Nov 2010 / Nov 2009)
2011 investment target (RM 83 b) is
achievable…
Private Investment - RM (Billion)
Probability of
Success
50.6
At 90%
= RM 114 b
127
At 80%
= RM 101 b
76
At 70 %
= RM 89 b
EPPs &
others
Source : PEMANDU Analysis
Base Load
Potential /
Planned
Trade is up too..
2010/2009 Trade
RM1.169 t
18.3%
RM 988.24 b
Source: MITI
Bursa Malaysia closed at a
record high on 7 January 2011
1,572.21 pts
It shows
Malaysia is ...
131 EPPs & 60 BOs to „subscribe‟…
Source : Economic Transformation Roadmap book
You can participate too…
3 steps
to become
an ETP
project
Engage
Government early
with your project
proposal
1
A high-level pitch
to Government
should contain:
 Clear analysis of how
the project addresses
the issues and
opportunities
 Clear high level
estimate of potential
GNI and employment
impact
 Clear articulation of
support you need from
the Government.
Robust
investment
analysis &
business case
Proper
follow-up
meetings
2
3
If Government expresses
interest, a detailed
analysis which provides a
robust estimate on the
project‟s impact on
GNI, employment and
investment.
The appropriate
PEMANDU NKEA
director will assist to
facilitate the project.
These include meetings
with various ministers
and ministry officials
These project
meetings are
important:
 To secure the
necessary support;
 To facilitate fast and
successful
implementation
 To resolve any issues
or roadblocks
Message to Passage..
120% achievement
R
Progress is on track
R
Thank you