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INTRODUCTION

The Economic Transformation Programme (ETP) is a focused, inclusive and sustainable

initiative that will transform Malaysia into a high -income nation by 2020. ETP

which was launched on 26 October 2010 is expected to generate more than three millions

jobs in high value industries in the country . To achieve world class economy for Malaysia,

we need to implement initiatives to attract, develop and retrain highly skilled human ca pital

needed for high income economy. This program is said as the Malaysian

economy brought drastic plan for the next 10 years, thereby achieving developed

nation status by 2020.

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OVERVIEW

Malaysian Prime Minister Datuk Seri Mohd Najib bin Abdul Razak announced the ETP on 25

October 2010. Led by the private sector, the ETP will transform the Malaysia into a high -

income country with a Gross National Income (GNI) per capita of at least US15, 0 00 by

2020, with 74% of this growth delivered by the National Key Economic Areas (NKEAs). The

ETP aims to attract investments worth a total of US$444bn in 131 entry point projects

(EPPs) and 60 business opportunities to propel the country's gross national income (GNI) to

US$523bn.

The ETP will create over three million jobs, the majority of which will be middle -income or

high-income jobs. To calculate the GNI impact, each NKEA lab has identified initiatives,

classified as either entry point projects (EPPs) or business opportunities. By 2020, the

structure of the Malaysian economy would have changed significantly, whereby services will

account for a bigger share of the economy at 65% of Gross Domestic Product (GDP) from

58% in 2010. Domestic consumption will be the key driver of growth, accounting for 59% of

GDP by 2020 compared to 54% in 2010. This means, Malaysia will reduce its reliance on

exports as a driver of demand and would be in line with developed economies like Taiwan

and New Zealand, in terms of do mestic demand growth.

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PROJECTS UNDER ETP

There are many projects under ETP that has been announced by the Prime Minister

of Malaysia but on 11 January 2011, Prime Minister Dato Sri Najib Tun Razak announced

updates in 19 EPPs. The 19 transformational projects come from 10 NKEAs, contributing

nearly RM67 billion in investment, RM36 billion in GNI and 35,000 new jobs.

19 ETP Projects

The 19 Entry Point Projects and developments come from 10 National Key Economic Areas.

Combined, they will contribute almost RM67 billion in investment, RM36 billion in gross

national income and 35,000 new jobs .

The 10 projects under NKEA are

1. Oil, gas and energy

2. Electrical and electronic

3. Wholesale and retail

4. Greater Kuala Lumpur

5. Tourism

6. Agriculture

7. Education

8. Communication, content and infrastructure

9. Healthcare

10. Business service

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Commu icatio , Co tentand Infru tructure

SelecTV : Hospitality IPTV Distribution of Malaysian Content

Hospitality IPTV focuses on the creation of an effective and sustainable platform to distribute

Malaysian content to both local and international hotel s implemented with SELECTV IPTV.

The following capabilities can be delivered:

y Immediate distribution to 20,000 hotel rooms in Malaysia, Middle East, Thailand,

Indonesia.

y Advanced In-Room entertainment and communication such as HDTV, Video on

Demand, Voice and Video Communication

y Interactive service delivery to meet travelers service expectation such as room

service, online shopping, ticket reservation, etc

y Creation of additional Malaysian content channels for Hotels catering to international

travelers

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Electricaland Electronics NKEA

AUO Sunpower

AUO Sunpower designs, manufactures and delivers the most powerful solar cells in the

world, providing green, renewable energy solutions in virtually every sector of the economy,

worldwide.

The new facility in Melaka will continue construction and ramp through 2013 and, when

completed, is expected to generate more than 1,400 megawatts annually o f high-efficiency

solar cells.

Wholesale & Retail NKEA

Mines Wellness City

The Country Heights Group of Companies is developing the Mines Wellness City as an

integrated health and wellness resort, which will serve as a one -stop destination for both

modern and complementary medicine.

By transforming former tin mining land to a mixed development, the Mines Wel lness City is

earmarked to be Malaysias cornerstone of innovation.

Moreover, in addition to its commitment to be a wellness resort and as an inspiration byLifestyles of Health and Sustainability (LOHAS), Mines Wellness City provides for those that

seek resort style health services, wellness gateway, traditional therapies, fitness, heath food,

retail, green homes, physiotherapy, and rehabilitation.

The Mines Wellness City will cater to both local and foreign health tourists seeking to

enhance their physical and mental health. It is both an expansion and a transformation of the

current Mines Resort City.

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Tourism

Tel t i eve l ent Pl n

Tel t i esorts S n B TDR), ompany i is % owned y K azanah asional

Berhadand % y itsori inal foundersTan Sri Razali RahmanandDatuk assan A as

through Archipelago otels East) Sdn Bhd, will edeveloping acresof land in Pulau

angkawi aspart of itsdevelopment plans forTelukDatai. Thedevelopment which isdue for

completion in will see theexpansionandupgradingofTheDatai otel and thegolf

courseaswell as thedevelopment ofvariouspremiumhotelsand luxuryvillas forsale.

YTL roup: Pulau ayaDevelopment

The Pulau ayaResort is eing constructedamidst theexisting rainforest, respecting the

natural environment, with all trees and topography in the area eing preserved. It is

designed as a deluxe family resort of spacious hillside and sea-front villas, and will

includemany innovativeaccoutrementsandactivities that will enhanceeach familysguest

experience. This Resort features elements of traditional Sabahan architecture, and will

includea Feast Village showcase restaurant pairedwithanother specialising inepicurean

fine dining. The highlight of amenities is a Spa Village, which will be the only one in a

shorelinemangrovesetting.

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A riculture

High-Value Herbal Plantation

The Terengganu State Development has received approval to develop a High -Value Herbal

Plantation on 461 hectares of land in Pasir Raja. The land will be used to cultivate seven

types of herbs in high demand, namely Tongkat Ali, Kacip atimah, Misai Kucing, Dukung

Anak, Hempedu Bumi, Agar wood and Lemon Myrtle.

Education

Skills Malaysia 2011

As part of this EPP, Skills Malaysia Year 2011 aims to raise awareness of and showcase the

opportunities for post -SPM education and upgrades for unskilled workers available in

Malaysia as an alternative to mainstream education.

It is largely targeted at students and parents, but also intends to educate the general

Malaysian population on what a skills/ vocational pathway would entail and the career

opportunities possible. Activities planned for the year include a series of road shows to

almost all the states in the country culminating in seve ral key events in July 2011 including a

Skills Competition.

Businessservice

Malaysia as a World-Class Data Centre Hub

Data centres (DCs) are specialised facilities that support the day -to-day operations of

applications and data processing in many enterpr ises. EPP3 aims to develop Malaysia as a

world-class data centre hub based on factors such as increasing foreign demand for DCs in

Asia Pacific, the rising cost of doing business for current market leaders such as Hong Kong

and Singapore and increased dome stic demand for IT outsourcing.

To this end, the government is working together with several private companies, Mytelehaus,

CS Group and Teliti Datacentres to develop new and upgrade existing facilities to ensure

sufficient DC floor space is available to cater to increased demand.

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Heal h are

Hovid: eneric Pharmaceutical Drug anufacturing

Hovid has enteredanagreement with inthrop Pharmaceuticals, a subsidiary of Sanofi-

Aven tis roup todevelop thegenericdrugs. Thecollaboration includes thedevelopment of

dossier, manufactureandsupplyof thegenericdrugsof etformin mg R for treatment

ofdiabetes, andpainkillerTramadol mg SR.

niversity alayaHealth etropolis

niversiti alayaHoldingswill spearheadan initiative todevelop andposition theHealth

etropolisas alaysiaspremiermed ical hubandasoneof thecentresofexcellence for

medicineand bioscience in the region and globa lly. TheHealth etropolis will contribute

significantly to the niversityof alaya in itseffort towardsattaining thestatusofa orld

lass, Fully AutonomousResearch niversitybywayof thedevelopment ofanadvanced,

state-of-the-art hea lthcareandmedical practice. It will spearheadefforts innurturing quality

medical andhealthcareprofessionals ineducation, researchandhealthcareservices.

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Greater uala Lumpur/ lang Valley

Damansara ity

uocoLand alaysiawill developDamansara ity , an integrateddevelopment in Pusat

BandarDamansara.

Thismixdevelopment will be thenext iconic landmarkaswell asadriver forsolid investment

potential in itssurroundingarea.

The project will comprise two office blocks of , and , square feet each, a

, -square feet retail block, a -roomhotel anda -unit servicedapartment.

Talent orporation

Talent orporation, anewgovernment agencyunder the stewardshipof ohan ahmood

erican as the hief Executive fficer, is tasked tostrategiseand implement initiatives to

engageandattract thebest talentsrequired tofill the . millionpositions that will becreated

by thevarious ational Key Economic Areas.

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MassRapidTransit

TheMRT is integral to thesuccessof the reaterKualaLumpur/Klang Valley KEA, which

in turn is a key catalyst for the ETP overall. It will bea key driver to support the public

transport modal share from per cen t currently to per cent. onnectivity to

transportationhubsand connectivitywithin thearea iscritical urbangrowthand improved

productivity.

This newmeansof travel will alleviatecongestionand increase accessibility to, from and

alsowithin thecity. Most importantly it will contributedirectly toournations ross ational

Incomeasp irations. Asour largest ever infrastructureproject, during itspeak, it will employ

about , peoplewithasignificant multiplier impact onassociated industries.

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PURPOSE OF ETP

There are several main purposes of enabling ETP. They are: -

PromotingPrivate Investment

Investor attraction

The Government has already taken significant steps recently to attract both DI and DDI,

notably through the plans to revamp MIDA that were announced in the Tenth Malaysia Plan

and to expand MIDAs mandate to include attracting domestic investment. The specific

re uests from the various EPPs will provide focus to these reform efforts.

iscal incentives

Many of the EPPs re uire government financial support in the form of general tax credits and

holidays, tax incentives that are directly aimed at increasing specific investment or other

forms of non-tax fiscal support such as grants or soft loans. Rather than a blanket change to

the tax code, the Government will empower MIDA, and other agencies as appropriate, to

negotiate the re uested incentives with the investors on a case-by-case basis. However, the

Ministry of inance will establish a common approach and framework to provide the basis for

conducting these negotiations.

rowing Human Capital

Building domestic capabilities

The Government will deliver a coordinated approach to deliver the right level of training and

education re uired by the NKEAs. The Ministry of Higher Education and the Ministry of

Human Resources will coordinate with the relevant NKEA Lead Ministries to assess skills

gaps and devise and deliver appropriate c ourses. Another important re uirement for the

success of the ETP is development of management and leadership talent for the NKEAs. In

this regard, Talent Corporation, which is being established under the Prime Ministers

Department, will be involved in building the capabilities of the top talent most needed for the

NKEAs, such as pivotal leaders and specialised talent to lead the EPPs.

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Attracting talent from overseas

The Government will act to attract Malaysians currently living and working in other countries

to return to Malaysia as well as non -Malaysians to build their careers in Malaysia. The

actions that will be taken include designing and implementing attractive expatriate packages

(e.g. personal income tax incentives), designing and imple menting marketing efforts (e.g.

road shows, targeted outreach) and assisting expatriates with applications to work in

Malaysia (e.g. assistance with visas, work permits). Talent Corporation will lead these

initiatives to attract, motivate and retain the re uired talent.

Removing restrictive immigration regulations

The Government will act to simplify immigration procedures and increase the ease of entry

for skilled workers. In addition, a revamp of selected immigration policies is needed by some

NKEAs to implement their EPPs. or example, for the Education NKEA, to raise the number

of foreign students in Malaysia, the application process for foreign student passes needs to

be accelerated and the ability for these students to work to fulfil practical training

re uirements will be reviewed. These will be negotiated on a case -by-case basis between

the individual sector representations, their respective NKEA lead ministries and the Ministry

of Home Affairs.

ImprovingtheBusiness Environment

The general business environment in Malaysia is a source of substanti al competitive

disadvantage for Malaysia. Consistent feedback from private sector investors indicates t hat

the business environment is still a key factor constraining investment. Too often, Malaysian

firms face a tangle of regulations that have accumulated over the years and now constrain

growth. In light of the complexities the EPPs are facing, many of them have re uested

enablers that will improve the business envi ronment, including liberalising their sectors and

making it easier to do business.

Beyond just the EPPs, improving the business environment is an import ant way in which to

achieve the substantial increase in private investment in business opportunities a nd non-

NKEA sectors re uired to achieve the 2020 GNI targets. Specific ideas contained in the

Tenth Malaysia Plan include a comprehensive review of regulations (led by the restructured

Malaysia Productivity Corporation), further liberalisation of the services sector, regulatory

exemptions for SMEs and streamlining government-to-business interfaces.

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Building Infrastructure

Broadband

The Governments objective is to raise Malaysias broadband penetration rate to 75 percent

of households by the end of 2015 (from around 40 percent currently). This is b eing achieved

through a combination of high speed broadband (up to 100 Mbps) in high economic impact

areas (such as Greater Kuala Lumpur/Klang Valley) and broadband to the general

population (below 5 Mbps) in semi -urban and rural areas. The Malaysian Communications

and Multimedia Commission and Ministry of Information,

Communications and the Arts will continue to work with telecommunications companies to

widen network coverage, increase network speeds and further increase broadband

affordability. The Govern ment will also amend the Uniform Building By -Law 1984 to mandate

developers to incorporate broadband facilities in residential and commercial areas.

Logistics

To support the success of the ETP, we will upgrade existing infrastructure such as roads,

ports and airports and construct new logistics infrastructure if there is a sufficient business

case in order to facilitate the efficient movement of people and goods.

Improving logistical infrastructure will have far -reaching impact for the country beyond the

NKEAs. or this reason, the Government has already committed to enhancing access and

connectivity under the Tenth Malaysia Plan. Specifically, the Government has committed to

building and improving roads (e.g. the East Coast Highway linking Kuantan and Kual a

Terengganu), developing the rail network (e.g. extending the northsouth electrified double -

track railway line to Johor Bahru), upgrading maritime infrastructure (e.g. expanding capacity

at Westport of Port Klang) and improving airports (e.g. building a new low-cost carrier

terminal at Kuala Lumpur International Airport). The EPU will coordinate this programme of

infrastructure investment.

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CONC USION

The Economic Transformation Programme (ETP) is a comprehensive effort that will

transform Malaysia into a high-income nation by 2020. It will lift Malaysias gross national

income (GNI) per capita from USD6,700 or RM23,700 in 2009 to more than USD15,000 or

RM48,000 in 2020, propelling the nation to the level of other high -income nations.

To achieve world class economy for Malaysia, we need to implement initiatives to attract,

develop and retrain highly skilled human capital needed for high income economy. This

program is said as the Malaysian economy brought drastic plan for the next 10

years, thereby achieving developed nation status by 2020.

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REFERENCE

y www.pemandu.gov.my

y www.themalaysianinsider.com/malaysia/.../etp -ready-to-take-off-says-najib/

y www.malaysiandigest.com/.../8971 -15- uestions-on-the-etp.html

y www.drnurizah.wordpress.com/.../program-transformasi-ekonomi-etp/

y www.btimes.com.my/Current_News/BTIMES/.../20101025155233. pdf

y www.pmo.gov.my/ksn/.../news/files/Malaysian_Mirror___ETP_will.pdf

y www.aspri.com.sg/fileupload/pdf/20101125024233000000.pdf

y www.spp.gov.my/document/LaunchofETP_YAB_PM_speech.pdf