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
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