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

10th & 11th Malaysia Plan

People First Performance Now

1

• 6 NKRAs

• 29 MKRAs

2

4

• 12 NKEAs

• 131 EPPs

• 60 Biz Opps

3

The Connection

• Grow the economy

• Increase revenue

• Increase job / income

• Spend the revenue

based on rakyat needs

• Distribute the revenue

(RBI & LIH)

We must do both

We introduced 6 NKRAs

under the GTP based on

what the rakyat wants

Fighting

Corruption

Reducing

PovertyReducing

Crime

Enhancing

Education

Improving

Rural Basic

Infrastructure

Urban

Public

Transport

1 2 3

4 5 6

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 prior to GTP

Crime

Types of crime

Violent

crimes

Property

theft

2008

211,645

2007

209,582

2006

196,780

20091

209,825

▪ Robberies without firearms

▪ Gang robberies without firearms

▪ Robberies with firearms

▪ Gang robberies with firearms

▪ Assault

▪ Rape

▪ Murder

▪ Theft

▪ Snatch theft

▪ Motorcycle theft

▪ Car theft

▪ Van/lorry/heavy machinery theft

▪ Break-in (night)

▪ Break-in (day)

15% drop in

Index Crime

2009 2010

209,817

177,520

-15.4%

-32,297

2009 2010

38,030

24,837

-34.6%

-13,193

35% drop in

Street Crime

Crime

Hotspot-based deployment

Pre-NKRA

• 1 Contingent, 5

Districts

• 22 Balai’s (Stations)

• 501 Sectors

• 2,892 police officers

deployed for street

patrolling

• 1 Contingent, 5

Districts

• 22 Balai’s (Stations)

• 11 hotspots, eg

Pudu, Bukit Bintang

• 2,892 police officers

deployed to patrol at

hotspots

NKRA Approach

The Kuala Lumpur Story ILLUSTRATIVE

5.8 police officers

assigned to patrol Bukit

Bintang every day

263 police

officers assigned to

patrol Bukit Bintang

every day

Crime

192%improvement in

BET ridership

2.43 million

increase in

LRT ridership

U.P.T.

BET reduces travel times,

increases ridership

Current route

▪ Over 30 stops

▪ Passing through Federal

Highway

KL Sentral /

Pasar Seni

Sri Muda

Shah Alam

Federal Highway

Bus Expressway Transit

▪ Limited to 4 stops

▪ Using underutilised KESAS

KESAS Highway

Current

BETKESAS

Sri Muda – KL

Sentral

NPE

Subang mewah -

Sentral

Grand Saga

Kota Dsra - SentralPenchala

Sg Long -

Sentral

~ 75

Potential reduction in journey times

mins

~ 29

U.P.T.

The new Integrated

Transport Terminalat Bandar Tasik Selatan

completed…

500 southern buses will

terminate there

U.P.T

634 bus stops

completed and

refurbished

54,569 more children benefited

from 1,500 pre-school classes

(more than 700,000 in total)

9,814 schools

(primary & secondary) ranked

Education

Best UPSR exam

results in 4 years.

R.B.I

775km of rural roads

have been completed

35,291rural houses

with clean / water supply

16,926houses for rural poor build

& restored

27,209rural houses with

electricity supply

Touching the lives of more than

2 million peopleliving in the rural area

L.I.H

Hardcore Poor reduction by Month # of Ketua Isi Rumah (KIR)

99.76%Reduction in

hardcore poor

Dec

18,127

Nov

108

As of

31/12/2010

▪ Whistleblower Protection Act

came in to force on 15 December

2010

▪ Competitive tender as default

process

▪ 4,500 government contract

awards published on line (as

of 24th March)

▪ Compliance units established

in key law enforcement

agencies; joint training

conducted

▪ “Name-and-Shame” – 328

corruption offenders (including

picture, IC No) published in

MACC website to date

(www.sprm.gov.my)

▪ Implementation of Integrity

Pacts via Treasury directive, for

Government contracting

▪ Corporate Integrity Pledge

launched

▪ 18 new corruption courts for

speedy trials.

▪ Chief Justice’s circular to

complete all corruption cases

within 1 year

1

2

3

4

5

6

▪ Guidance issued on support

letters by KSN on 8 March

2010

7

CorruptionBuilding blocks against corruption

CorruptionHeading the right way…

P

P

P

1. TI Corruption Perception Index (CPI) Survey:Malaysia ranked 56th

4.5 (2009) to 4.4 (2010)

1. TI CPI constituent surveys shows improvement in 2010 vs. 2009

1

2

Corruption

Transparency

International

Global Corruption

Barometer survey

showed significant

improvement

28%(2009)

48%(2010)

Heading the right way…

International Panel Review

Committee

Endorsement on GTP Results 2010

1 2 Agreed Upon Procedure (AUP)

by independent auditor

Sir Michael Barber Partner, McKinsey UK; ex-Head of Prime

Minister‟s Delivery Unit (PMDU) of Tony Blair Administration

Michael HershmanCo-founder of Transparency

International; Current CEO of the Fairfax Group

Stephen SedgwickAustralian Public Service

Commissioner

Ravi

BalakrishnanIMF Resident

Representative, Singapore

Sergei DodzinSenior 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….

Get it from the book

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% 156% 156% 99% 99% 90% P

5 Low Income Household 100% 79% 79% 79% 79% 63% P

6 Corruption 100% 121% 121% 90% 90% 78% P

120% 120% 92% 92% 79% P

Traffic

Lights 2

Score #3

(Yes, Partial, No)

Traffic

Lights 3

Overall composite scoring

No. NKPIs 2010

Target

Score #1 Traffic

Lights 1

Score #2

(max

100%)

Source : GTP Annual Report 2010

NKRA Overall Performance 2010 Method 1 Method 2 Method 3

2010

Budget

Actual

Expenditure(RM mil) (Nov 2010;

RM mil)

1 Urban Public Transport 100% 107% 107% 97% 97% 78% P 448 396 88%

2 Crime 100% 168% 168% 100% 100% 100% Y 338 258 76%

3 Rural Basic Infrastructure 100% 91% 91% 88% 88% 75% P 3,234 2,372 73%

4 Education 100% 99% 99% 99% 99% 88% P 245 118 48%

5 Low Income Household 100% 81% 81% 81% 81% 60% P 1,170 1,163 99%

6 Corruption 100% 126% 126% 92% 92% 80% P 8 4 52%

112% 112% 93% 93% 80% P 5,443 4,310 79%

No. NKPIs 2010

Target

Score #1 Traffic

Lights 1

Overall composite scoring

Traffic

Lights 3

Score #2

(max

100%)

Traffic

Lights 2

% of

Expenditure

Score #3

(Yes, Partial, No)

NKRA Overall Performance 2010 Method 1 Method 2 Method 3

2010

Budget

Actual

Expenditure(RM mil) (Nov 2010;

RM mil)

1 Urban Public Transport 100% 107% 107% 97% 97% 78% P 448 396 88%

2 Crime 100% 168% 168% 100% 100% 100% Y 338 258 76%

3 Rural Basic Infrastructure 100% 91% 91% 88% 88% 75% P 3,234 2,372 73%

4 Education 100% 99% 99% 99% 99% 88% P 245 118 48%

5 Low Income Household 100% 81% 81% 81% 81% 60% P 1,170 1,163 99%

6 Corruption 100% 126% 126% 92% 92% 80% P 8 4 52%

112% 112% 93% 93% 80% P 5,443 4,310 79%

No. NKPIs 2010

Target

Score #1 Traffic

Lights 1

Overall composite scoring

Traffic

Lights 3

Score #2

(max

100%)

Traffic

Lights 2

% of

Expenditure

Score #3

(Yes, Partial, No)

Saving to the Government = RM 1.133 billion

Source : GTP Annual Report 2010

GTP delivered 120% with 79%

expenditure

Lets now look at the Economic

Transformation Programme (ETP)

10th & 11th Malaysia Plan

People First Performance Now

• 12 NKEAs

• 131 EPPs

• 60 Biz Opps

• 6 NKRAs

• 29 MKRAs

2 3

4

NEM - Making us a rich country,

for everyone & for a long time

High-Income

Inclusiveness Sustainability

Target USD 15,000

GNI per capita by 2020

Enables all

communities

to benefit

from the

wealth of the

country

Meets present

needs without

compromising

future

generations

Quality

of Life

Overview of ETP

Gross National

Income (GNI)

• US$15,000 (RM48,000)

per capita GNI

• USD 523 billion (RM1.7

trillion) GNI

• 6% GDP growth per

annum

Jobs• 31.6 million

population

• 3.3 million

additional jobs

Investment

• USD 444 billion (RM1.4 trillion) investment

• 92% private, 8% public investment

• 73% domestic, 27% foreign direct investment

Transformational

Actions• 12 NKEAs

• 131 EPPs

• 60 BOs

• Transformational

approach

• Private sector-led

Target

15,000+

OthersNKEA 5NKEA 4NKEA 3 NKEA 2 NKEA 1

Current

7,000

GNI per capita

US$NKEAs (drivers)

Source: PEMANDU (with EPU)

SRIs (enablers)

Re-energising private sector

Competitive domestic economy

Strengthening public sector

Developing quality workforce

Transparent & Market Friendly Affirmative Action

Building knowledge base infrastructure

Enhancing sources of growth

Ensuring sustainability of growth

1

2

ETP = NKEA + SRI

Source: NEAC

Focus: 12 National Key Economic Areas

(NKEAs)

Competitiveness – Strategic Reform

Initiatives (SRIs)

51policy measures

14with natural homes

within the NKEAs /

NKRAs

37which are WIP and

require further

detailing out

Consolidate and monitor

the implementation plans

with the respective NKEAs

/ NKRAs

6 Labs covering the

following:

Intl Standards & Liberalisation

9 policies

Human Capital Development

9 policies

Public Finance

5 policies

Narrowing Disparities

(Bumiputera)

2 policies

Government‘s Role in Business

5 policies

Public Service Delivery

7 policies

1

2

3

4

5

6

ETP Governance Structure to ensure delivery

ETP Forum

Economic Council

NKEA

Steering

Committee

EPP / BO

owners

Semi-Annual

Weekly

Monthly

Year-round

Secretariat

Respective Ministries /

EPP owners

Lead

Ministries

Investment

Committee

Monthly

Round #1 (25 Oct 2010)

9 projects

Investment: RM5.3b

GNI: RM100m

Jobs: 13,100

Round #2(30 Nov 2010)

9 projects

Investment: RM8.2b

GNI: RM84.5b

Jobs: 70,500

Round #3(11 Jan 2011)

19 projects

Investment: RM66.8b

GNI: RM32.5b

Jobs: 52,400

Round #4(8 Mac 2011)

23 projects

Investment: RM14.75b

GNI: RM20.1b

Jobs: 88,354

ETP Updates by PM

60 Projects in 46 EPPs , RM95 billion investment

RM137.2 billion GNI , 224,354 jobs created

35% of EPPs are already off the

ground…

9 18

37

60

RM5.3 b

RM13.5 b

RM80.3 b

RM95 b

60 Projects in 46 EPPs , RM95 billion investment

RM137.2 billion GNI , 224,354 jobs created

Number of EPPs

4

2630

60 projects in 46 EPPs

RM 37.26 bRM 57.98 b

…worth RM 95 billion of

investment…

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

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 Shell MDS, Bintulu

* Existing 2,100MW Janamanjung power plant

Oil, Gas & Energy

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)

Increasing FFB yield

4 cooperatives set up involving 11,492

smallholders and 59,039 ha

* Illustrative only

* Illustrative only

Palm Oil

Pulau Gaya Resort, Sabah:

• 14 of 31 rooms completed

• Overall, 35% completed

• Expected completion: 30 June 2012

Majestic Hotel, KL:

• Sub-structure completed, super-

structure construction in progress

• Overall, 23% completed

• Expected completion: December

2012

* Pulau Gaya Resort & Majestic Hotel site pictures

Tourism

TUKAR

• 16 stores transformed as at 1 Apr

2011

• Four sponsors are Mydin, Tesco,

Carrefour and SKM

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

* A TUKAR store in Merlimau, Melaka

* Mydin Hypermarket, Bukit Jambul

Wholesale & Retail

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.

Secured contracts with:

• Best Western Premier

Dua Sentral

• 4 Bangkok Hospital

Group hospitals

• Pullman Resort Bali

• Vietnam Post & Telecom

• KUBTel (for content

partnership)* Client properties

Communications Content & Infra

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

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.

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

* AUO Sunpower plant in Melaka

E&E & Education

Source : Bank Negara 2009 Figures

Malaysia‟s GNI / GDP

GNI

GDP

Net Factor

Income From

Abroad

CONSUMPTION

INVESTMENT

INVENTORY

TRADE

RM 497 b

RM 521 b

- RM 24 b

RM 355 b

RM 111 b

- RM 14 b

RM 71 b

Consumer Confidence

on 4-year high…

Source : Neilsen Consumer Confidence Index

• 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)

…and reflected in private consumption

RM 97.7b605,156

536,905

12.7%

Retail Sales Car Sales Property Sales

RM 71.7b

35%

Source: MRG 2010 & 2009 Source: MAA 2010 & 2009 Source: Valuation & Property

Svc Dept (Nov 2010 / Nov 2009)

8.4%

RM 77b

RM 71b

2011 investment target (RM 83 b) is

achievable…

76

50.6

127

EPPs &

others

Base Load

Private Investment - RM (Billion)

Potential /

Planned

At 90%

= RM 114 b

At 80%

= RM 101 b

At 70 %

= RM 89 b

Probability of

Success

Source : PEMANDU Analysis

RM1.169 t

Trade is up too..

2010/2009 Trade

RM 988.24 b

18.3%

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…

Engage

Government early

with your project

proposal

Robust

investment

analysis &

business case

Proper

follow-up

meetings

1 2 3

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.

3 steps

to become

an ETP

project

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 Progress is on track

R R

Thank you