Focus. Competitiveness. Execution.

Dr Mohd Emir Mavani AbdullahDirector

NKEA (Oil, Gas, and Energy; Financial Services) NKEA (Oil, Gas, and Energy; Financial Services) & SRI (Government’s Role in Business) & SRI (Government’s Role in Business) 

6 November 2012

National Transformation Policy Towards Vision 2020Towards Vision 2020

1Malaysia(People First, Performance Now)(People First, Performance Now)

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10th & 11th Malaysia Plan

NEW ECONOMIC MODEL:Making Us A Rich Country, For Everyone &Making Us A Rich Country, For Everyone &For A Long Time

High-IncomeTarget USD 15,000

GNI per capita by 2020High Income

Q lit

Inclusiveness SustainabilityEnables all

communities to benefit

Meets present needs without compromising

Quality of Life

from the wealth of the

country

future generations

True North Of ETPGross National Income (GNI)

•USD15,000 (RM48,000) per Capita GNI

•USD523 Billion (RM1.7 Trillion) GNI

•6% GDP Growth per Annum

JobsTransformationalActionsFOCUS

•3.3 Million Additional J b‘Drivers’

•12 NKEAS•131 EPPs•60 BOs

Jobs

Investment

•60 BOsCOMPETITIVENESS‘Enablers’•51 Policy Measures

•USD444 Billion (RM1.4 Trillion) Investment

•92% Private, 8% Public Investment51 Policy Measures

•6 SRIs & Natural Homes•73% Domestic, 27% Foreign Direct Investment

To Become A High‐Income Nation,We Need:

& FOCUSCOMPETITIVENESS

We need “Drivers” to f

We Need “Enablers” To Ensure ensure focus on 

high‐impact areasTo Ensure 

Competitiveness

SRIsSRIs NKEAs + NKRAsStrategic Reform Initiatives National Key Economic AreasStrategic Reform Initiatives National Key Economic Areas

National Key Result Areas

To Become A High‐Income Nation,We Need:

& FOCUSCOMPETITIVENESS

We Need “Enablers”  We need “Drivers” to fTo Ensure 

Competitivenessensure focus on high‐impact areas

SRIsSRIs NKRAs + NKEAsStrategic Reform Initiatives National Key Result AreasStrategic Reform Initiatives National Key Result Areas

National Key Economic Areas

SRIs Provide The Enablers For Malaysia To Be CompetitiveTo Be Competitive

1414With Natural HomesWithin The NKEAs /

NKRAs51

Policy Measuresy

Competition, Standards and Lib li ti

Competition, Standards and Lib li ti

Public FinancePublic Finance

1 2

37Grouped In SIX

LiberalisationLiberalisation

Public Service Delivery

Public Service Delivery

Government’s Role in 

Government’s Role in 

3 4

pClusters For

Execution

DeliveryDelivery

Human Capital D lHuman Capital D l

BusinessBusiness

Narrowing Di i iNarrowing Di i i

5 6

DevelopmentDevelopment DisparitiesDisparities

Competition, Standards & LiberalisationCompetition Act

Enforced On 1 Jan 2012Development of 

StandardsLiberalisation of sub‐sectors

Malaysia has 6,260 StandardsBut Less Than 10% are Enforced

Up to 100% foreign equity participation will be allowed in phases in 2012

Remove Anti-Competitive

17 (+1) sub‐sectors announced in Budget 2012 

for liberalisation

Amendments to the Standards of Malaysia Act 1996 gazetted on 9 February 2012 to accelerate development of standards 

Agreements 12 sectors fully liberalised: Telco ASP, 

TVET, TVET Special Needs, Private Hospitals, Dept & 

Adoption of international standards will be reduced to <9 months, compared to >1 year currently

Specialty Stores, Incineration, 

Accounting/Taxation, Skills Training, Courier, 

currently

Proposed for local standards to be completed within 1.5 years, compared with three years 

Remove Abuse Of A Dominant Position

Legal, Medical,  Int’l School 

p ycurrently

Public Service DeliveryBusiness Process Re‐engineering

785

Real‐time performance monitoring

92 police i i

263 licenses to be 785licences

stations in Selangor,extending to Penang &

eliminated or composited

Penang & JohorLean & 

Efficient 522licences

‐34%

Government

Open Recruitment &Remuneration Review

Open Recruitment (between Civil Service &Open Recruitment  (between Civil Service & Private Sector) & Remuneration Review Will 

Improve Performance

Public Service DeliveryBusiness Process Re‐engineering

785

Real‐time performance monitoring

92 police i i

263 licenses to be 785licences

stations in Selangor,extending to Penang &

eliminated or composited

Penang & JohorLean & 

Efficient 522licences

‐34%

Government

Open Recruitment &Remuneration Review

Open Recruitment (between Civil Service &Open Recruitment  (between Civil Service & Private Sector) & Remuneration Review Will 

Improve Performance

Human Capital DevelopmentHR Management in SMEsMinimum Wage Project Flip O&G NOSSHR Management in SMEs

• 4,567 SMEs benefited from free tailored HR solutions via interactive HR portal

• 7,301 SMEs benefited from HR Capability Building Programme

Minimum Wage • PM announced minimum

wage of RM900/RM800 on 30 Apr 2012

• 6 months to implement post-gazette, 12 months

Project Flip - O&G NOSS • MOU signed to leverage

PETRONAS Skills Training (POSS) to develop National Skills Training (NOSS) in 7 disciplines

• Enable technical-vocational trainingCapability Building Programmepost gazette, 12 months for micro-enterprises

Enable technical-vocational training centres to deliver up-to-date, industry relevant skills training

Progress

Upskilling/Reskilling - NTEP

• The National Talent Enhancement

Employment Act 1955 (Phase 1 & 2)

• Phase 1 of Employment Act

Up-skilling / Re-skilling – MyProcert• MyProcert programme launched on 11

Oct 2011 for BSvc & CCIThe National Talent Enhancement Programme (NTEP) was launched covering 5 states/regions and 650 placements across Malaysia for E&E & BSvc (Green Tech)

1955 passed in Parliament includes 28 amendments to the current provisions, 17 new provisions and 2 provisions repealedPhase 2 in progress

Oct 2011 for BSvc & CCI • 6 partners to date: SAP, Huawei,

Oracle, iTrain, Scicom, SnT• 1,250 professionals targeted, 754

enrolled• Catalytic to up-skill Malaysians to global

• 315 trainees in companies• Accelerate development of skilled

workforce through partnership via industry attachment programmes

• Phase 2 in progress• Bill on raising minimum

retirement age to 60 passed on 28 June

Catalytic to up skill Malaysians to global certification standards

Government’s Role in BusinessFour areas where Government should be in businessFour areas where Government should be in business

Large growth capital, catalytic or new technology required

National InfrastructureE g MRT

Private Investor needs Co‐Business must be owned 

gy qProjects with long gestation periods e.g. nanotechnology

E.g. MRT

InvestorsPPP e.g. Corridor Development projects

domesticallyNational security e.g. Defence / Paddy

TotalTarget

2011‐2012Completed

2011Balance 

Target 2012Completed 

2012Target 2013

Pare Down 5 5 0 5 1 0

List 7 6 5 1 1 1

Outright Sale 21 14 6 8 0 7

TOTAL 33 25 11 14 2 8

To Become A High‐Income Nation,We Need:

& FOCUSCOMPETITIVENESS

We Need “Enablers” To Ensure

We need “Drivers” to fTo Ensure 

Competitivenessensure focus on high‐impact areas

SRIsSRIsSt t i R f I iti ti N ti l K E i A

NKEAs + NKRAsStrategic Reform Initiatives National Key Economic Areas

National Key Result Areas

A Vertical Take‐Off

GreaterGreater

151% 101% 109% 138%

11 Economic

Oil, Gas & Energy

Oil, Gas & Energy

FinancialServicesFinancialServices

Greater KL/KlangValley

Greater KL/KlangValley

Business Business ServicesServicesBusiness Business ServicesServices

11 Economic Sectors 

+ 

Wholesale& Retail

Wholesale& Retail

TourismTourism 141%118%

123%Greater 

Kuala LumpurEducationEducation Electrical &

ElectronicsElectrical &Electronics 108%120%

123%

CommsContent &

Infra

CommsContent &

Infra

Palm Oil & RubberPalm Oil & Rubber

HealthcareHealthcareAgricultureAgriculture

119% 170% 98% 103%

Investment: 58 9% T d P i I R li d58.9% Targeted Private Investment Realised

RM127.9b

RM100.0b

RM127.9b

1H 2011

1H 2012RM58.8b

RM75.3b

Estd 2012RM33.5b

RM41.7b

24.3%

28.1%

Public Investment Private Investment

24.3%

Note: Based on current prices

OGE: Key Upstream Investments In Execution

North Sabah & BaramDelta, Sarawak (EOR)US$12.5b

Berantai(Marginal Fields)US$850m

Balai Cluster(Marginal Fields)US$850m

New Explorations Upgrade, Expand & B ild P d ti

Regasification TerminalUS$300> US$3.0b Build Production

FacilitiesUS$1.7b

US$300m

OGE: Pengerang Integrated Petroleum Complex

Potential Investor BRM30 billion4,000 acres

PETRONAS RAPIDRM60 billion6,500 acresRefinery

Total PotentialRM170+ billion of investment21,000 acres of industrial area

Total PotentialRM170+ billion of investment21,000 acres of industrial area

RefineryPetrochemicals

RefineryPetrochemicals2016 commissioning

Potential Investor ARM24 billion2,000 acresRefineryPetrochemicals (future phase)

DIALOG‐VOPAKRM5‐10 billion700 acres reclaimed landP t l T i l phase)Petroleum TerminalLNG Regasification Plant2014 Phase 1 commissioning

E&E: New & Emerging Clusters

Solar Cluster

Electric Vehicle

Solar

Test & Measurement Hub

Approved investment:Approved investment: RM13.76 billion (to date)

Test & Measurement l i hi lTest & Measurement Electric Vehicle

Approved investment: RM282 million (to date)

Proposed investment: RM 382 million (in future)

POR: Upstream & Downstream ProgressPOR: Upstream & Downstream Progress

83,200 ha of plantation backlog replanted, 87,327 ha YTD 2012

20% OER in 2011,20.34% YTD 2012

2012

RM1.35b commitment incommitment in oleo derivatives and food & health segment up to 2014

W&R:Improving Livelihood Of Sundry Shop Owners

1,070 shops transformed since 2011(519 in 2011 + 551 YTD in 2012)

Before After

Impact OnImpact On Confidence & Economy

Steady Growth…

Real GDP Growth % (YoY)

6.5

4.8

7.2

5.1 5.1

2007 2008 2009 2010 2011 1H 20122007 2008 2009 2010 2011 1H 2012

R l GDP G th % (Y Y)

-1.6

Real GDP Growth % (YoY)

Investment The Key DriverDomestic Strength A Cushion Against External Vagaries

GDP Demand Side Breakdown

Domestic Strength A Cushion Against External Vagaries

FY 1H

Private Consumption

FY2011(%)

1H 2012(%)

Real GDP 5.1 5.11.5% ConsumptionPublic ConsumptionPrivate 

12.7% Private Consumption

7.1 8.1

Public  16.1 8.49.1%

InvestmentPublic InvestmentTrade

48.6%

16.5%

Consumption

Private Investment 12.2 22.7

Public Investment ‐0.3 19.525.6%

Trade

Inventory11.6%

60 2%

Exports  4.2 2.5

Imports 6.2 7.5

Note: Based on constant prices60.2%

Note: 1H 2012 GDP at current prices

p

Services, Manufacturing major contributorsConstruction Boost, Mining Recovery in 1H 2012

GDP Supply Side Breakdown

Construction Boost, Mining Recovery in 1H 2012

Agriculture 10.1%

FY2011 (%)

Q1 2012 (%)

Mining

10.1%

11.1%Real GDP 5.1 5.1

Agriculture 5.9 ‐1.5

Mining ‐5 7 1 2Manufacturing

Construction24.6%

49.5%Mining 5.7 1.2

Manufacturing 4.6 5.0

Construction 4.6 18.9

Services3.6% Services 7.0 5.8

Note: 1H 2012 GDP at current prices

Note: Based on constant prices

Consumer Remains Optimistic…

120

103

107105

110

101 101

107110

101105

110

115

96 9598 99

101 101 101

95

100

81

87

80

85

90

70

75

Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12

Source: Nielsen Consumer Confidence Index

Business Loans Leads Total Loans GrowthHousehold Loans Moderate On Tighter BNM RulesHousehold Loans Moderate On Tighter BNM Rules

16

14

15

13

14

13.2%

12 2%

11

12

11.9%

12.2%

10Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mac 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12

B i L H h ld L T t l L

Source: Bank Negara Malaysia

Business Loans Household Loans Total Loans

FDI, Trade Steady Despite Headwinds…

14.0 Trade(US$ b)

10.0

12.0 RM678.2b1H 2012

9 1

12.0

6 0

8.0

4 8%6.1

8.67.2

9.1

4.0

6.0 4.8%3.2

4.6

4.1

0.0

2.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

RM647.2b1H 2011

2.81.4

Total FDI

Sources: UNCTAD, Matrade

Easing Doing BusinessGetting credit: #1 (unchanged)

Protecting investors: #4World Bank

D i B i 2013Protecting investors: #4 (unchanged)

Getting electricity: #28 from #59 #12

Doing Business 2013

Registering property: #33 from #59

Paying taxes: #15 from #41 #18

#12

Paying taxes: #15 from #41

Trading across borders: #11 from #29

Dealing with construction permits: #95 from #113

2010( 183)

2011( 183)

2012( 183)

#23 #23

2013Ahead of Sweden, Taiwan, Germany, Japan & Switzerland

(n=183) (n=183) (n=183) (n=183)

Becoming More Competitive

Institute for Management DevelopmentWorld Competitiveness Yearbook 2012#14 out of 59 countries globally

#4 amongst 13 Asia Pacific countries

World Competitiveness Yearbook 2012

#10countries

#5 of 29 economies with more than 20 million population

#14

#10

#2 after Taiwan among 29 economies with GDP per capita less than US$20,000

#16#18less than US$20,000

Ahead of Australia, UK, South Korea, Japan & France 2010

(n 58)2011(n 59)

2012(n 59)

2010( 57) (n=58) (n=59) (n=59)(n=57)

The Transformation is a comprehensive & holistic effort that tackles bothholistic effort that tackles both 

focused actions &strategic reform initiatives

Doing“Action”

• 12 NKEAs

• 131 EPPs

• 51 Strategic Reform Initiatives under the NEM

Being“Character”

Action• 131 EPPs

• 60 BOs

• Cities & Corridor

• Rural Transformation

Initiatives under the NEM

• Other initiatives under the GTP e.g. Corruption NKRA, Education NKRA, Crime NKRA Urban PublicCharacter• Rural Transformation 

Programme (RTP)NKRA, Urban Public Transportation NKRA

We Have Concrete Programmes To Weather The Challenges…

... And We’ve Made Great Strides In A Short Space Of Time 

THANK YOUTHANK YOU+ etp.pemandu.gov.my+ www.facebook.com/etpmalaysiap y+ @etp_roadmap+ @gtp_roadmap+ http://etp.pemandu.gov.my/form_how_to_participate.aspx