psa-high income nation

8/10/2019 Psa-high Income Nation

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INTRODUCTION;

Malaysia has achieved significant economic and social progress over the past

several decades. However, the world economy is changing, and Malaysia needs a

fundamentally new economic model in order to become a high-income nation. Our

historical growth engines are slowing, we risk being caught in a middle-income trap

which is theorizedeconomic development situation, where a country which attains a

certain income will get stuck at that level.

Sustained rapid economic growth has raised Malaysia from an agricultural

and commodity-based low-income economy to a successful middle-income

economy. Since 1945, Malaysia is one of only 13 countries to have sustained growth

of over 7 percent or more for 25 years. This strong economic performance has

helped improve the quality of life for Malaysians and supported advances in

education, health, infrastructure, housing and public amenities. Growth has also

been accompanied by a near-eradication of hardcore poverty, which fell from 6.9

percent in 1984 to 0.9 percent in 2010. Primary school enrolment is now nearly

universal. Basic healthcare has improved in the past two decades with life

expectancy rising and infant mortality rates falling significantly.

The Government is aiming for Malaysia to become a high-income nation that

is both inclusive and sustainable by 2020. These goals will be reached jointly. The

Government will not seek short-term progress on one goal at the expense of

delaying progress on the others. The Government defines high income as a per

capita income USD15, 000 or RM48, 000 in 2020, based on the World Banks

current definition of high income. Malaysias per capita gross national income (GNI)

is currently about RM23, 700 or USD6, 700. Malaysias ambition is to emerge as a

developed nation by 2020. Our transformation will not be in the image of other

developed nations, but in the words of YABhg. Tun Dr. Mahathir Mohamad, We

should be a developed country in our own mould. Our mould is shaped and

developed by our people. Therefore, to achieve high-income status by 2020 will

require GNI to grow at an annual real growth rate of 6 percent between 2011 and

2020.
http://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Economic_development


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FOUR PILLARS OF NATIONAL TRANSFORMATION

1. 1Malaysia

The Prime Minister of Malaysia, Najib Tun Razak had introduced the concept of1Malaysia on April 2009. It is derived some concepts from 1Malaysia such as culture

of excellence, meritocracy, humility, integrity, education, acceptance, diligence and

loyalty. Besides, it evolves NKRAs on Six issues. One Malaysia strives to boost the

relations of all Malaysians, regardless of racial, religious or cultural backgrounds.

The relevant slogans to 1Malaysia which are People First, Performance Now (2009),

Generating Transformation (2010) and Transformation Successful, People

Prosperous (2011).

The exploitation of Key Performance Indicators (KPIs), National Key Result Areas

(NKRAs) is a crucial part of the 1Malaysia that attempt to improve government

efficiency.

2. Government Transformat ion Programme (GTP)

The Government Transformation Programme (GTP) was revealed by the Prime

Minister on January 2010. It is an ambitious, broad-based initiative aimed at

expressing National Key Result Areas (NKRAs). The Prime Minister declared the

seven KPIs in order to assess and enhance the efficiency and quality in the

government services and perceive the 1Malaysia concept. In addition, the KPI

served as a guideline and reminder to members of the administration on the

importance of giving priority to the people.

The performance of the ministries and government agencies are assessed by a

mechanism is prepared by the KPIs for every six months. It is required for each

ministry to set special KPIs, that concentrate on policy outcomes over the traditional

emphasis on inputs generally found in government performance assessments and

planning.

Moreover, Najib Tun Razak had elaborated the six policy areas in which the KPIs

employ to encourage the effectiveness of the government. These policy areas are

known NKRAs, which previously have been shown by Exhibit 3 and in following a

synopsis of every area, is stated.


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a. Reducing cr im e

After explaining this policy by the Prime Minister, Malaysian police focus was shifted

to on-street crime. This policy led to the underlying consequences, which are

presented by Table 1.

Table 1- The GTPs consequences in dropping crime

16% drop in index crime (from Jan-Sep 2009 to Jan-Sep 2010)

38.1% drop in street crime (from Jan-Sep 2009 to Jan-Sep 2010)

b. Fight ing corru pt ion

The government has been striving to decrease fraud and waste in government

procurement, improve public trust in government, and battle with grand corruption.

This item led to be published 3716 government contracts on line and 648 individuals

were arrested for corruption.

c. Improv ing studentsoutcomes

According to GTP Roadmap, there are four extremely important issues to improve

students outcome, which are achieved from the worlds top performing school

system. This includes by making sure all children succeed, holding schools

accountable for changes in student outcomes, investing in great leaders for every

school and also attracting and improving top teachers.

d. Increasing l iv ing standards o f Low Income Households (LIH)

In order to get better their social standing, make more income opportunities and

create a long-term system, this intends to empower low-income households that

helps create opportunities for the poor. This will resulted in creating job opportunities,

raising basic wage, tracing business opportunities and providing welfare assistance

this target will be achieved.


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e. Improvingrural basic infrastructure

The governments plan is providing home for the rural poor (50000), making and

improving roads (7000 kilometers), expanding electricity (into 140000 houses), and

boosting safe water (for 360000 houses) until the end of 2012.

f. Improvingurban pu bl ic t ransport

The government is striving to convince people to exploit public transportation system

and raise the quality of the system due to the many drawbacks in the transportation

system.

3. Econom ic Transformat ion Programme (ETP)

On September 21, 2010 the Prime Minister launched the ETP programme. The

country will be transformed into a developed country through ETP in 2020. The

Economic Transformation Programme deals with Gross National Income per capita

and intends to boost Malaysias GNI per capita from RM23700 (USD6700) in 2009 to

more than RM48000 (USD15000) in 2020.

In order to achieve high-income nation Malaysias GNI must grow at least 6 percent

per annum. That means the nation must grow the economic pie in the next 10 years

thus everyone in the country can benefit. Successful implementation of this program

creates extremely changes, which direct Malaysia to developed countries such ascreating 3.3 million new jobs in the country.

ETP significantly concentrates on the 12 National Key Economic Areas. According to

definition, a NKEA is a driver of economic activity that has the potential to directly

and materially contribute a quantifiable amount of economic growth to the Malaysian

economy.

The NKEAs introduce projects that will achieve the Gross National Income. The 12

NKEAs including 11 sectors and 1 Geography are as follows:

Oil, Gas and Energy (OGE)

OGE is the key of Malaysian economy because this NKEA contributes 20% of the

Gross Domestic Product.

Palm Oil

This NKEA is selected to raise total contributions to national income from the palm

oil industry by RM125 billion to reach RM178 billion by 2020. There is possibility

creation 41,000 new jobs in this sector.


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Financial Services

This sector constituted 10.9% of MalaysiasGDP from 2006 to 2009. The lack of

diversity, poor liquidity, low levels of financial knowledge, lack of economies of scale,

and competition from other regional financial centers are significant problems for thissector. The government intends to raise the financial industrys contribution to GNI

from RM121 billion (2010) to RM180 billion (2020). This sector was selected to make

275000 jobs.

Tourism

Tourism is as the fifth largest industry in Malaysia. This NKEA concentrates on

increasing tourist arrivals and growing output in terms of receipts. The tourism Entry

Point Projects and Business Opportunities (EPPs & BOs) have been developed

through five themes to shift important consequences within a 10-year period.

Business Services

Improving Electronics and Electrical

Wholesale and Retail

Education

Healthcare

Communications Content and Infrastructure

Agriculture Greater Kuala Lumpur / Klang Valley

The underlying Exhibit indicates the amount of contribution of each NKEA in 2020-

estimated GNI.


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Source: RSM Business strategic Advisors

New Economic Model (NEM)

The New Economic Model through the ETP intends to shift Malaysia en-route high-

income nation with inclusiveness and sustainability.


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Source: National Economic Advisory Council

The ETP constitutes eight Strategic Reform Initiatives (SRIs) introduced as enablers

and 12 NKEAs with the highest potential for growth.

These eight SRIs are as follows:

Source: National Economic Advisory Council

4. 10thMalaysia Plan

The Economic Planning Unit (EPU) prepared 10thMalaysian Plan (10MP) which is a

comprehensive blueprint in order to assign the national budget from 2011 to 2015 to

all economic sectors in Malaysia. On June 10, 2010 the Prime minister announced

10MP in Parliament.


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In following, some of significant key points of 10MP are mentioned:

The National Key Results Areas (NKRAs)

If the GTP is the overall engine of change, the National Key Results Areas (NKRAs)are the pistons within. And like pistons, each NKRA works on its own, but through

their complementary efforts, they generate a force of change that is greater than the


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sum of its parts. Each piston correlates to a priority area that is deemed to have thegreatest impact for the rakyat.

The NKRAs were not deemed priority areas arbitrarily, but the result of varioussurveys, opinion polls and dialogues conducted with the rakyat. Each NKRA is led by

a Cabinet Minister who is ultimately responsible to the Prime Minister for thesuccesses and shortfalls of the NKRA's key performance indicator.

The priorities of the NKRAs are made up of both short- and long-term initiativescatering to the needs of the rakyat. The GTP therefore addresses urgent demands ofthe rakyat, such as the reducing the cost of living, as well as structural issuespreventing the civil service from being as efficient as it could be.

NKRAs HEADED BY

Reducing Crime Minister of Home Affairs

Fighting CorruptionMinister in the Prime Ministers

Department, in charge of Law

Improving Student Outcomes Minister of Education

Raising Living Standards of Low-Income HouseholdsMinister of Women, Family and

Community Development

Improving Rural Development Minister of Rural and Regional

Development

Improving Urban Public Transport Minister of Transport

Addressing Cost of Living Deputy Prime Minister
http://www.pemandu.gov.my/gtp/article_go.aspx?id=d0d0f308-a997-441b-9740-519e5bb98364http://www.pemandu.gov.my/gtp/article_go.aspx?id=d2f70dcf-84e1-447e-84db-5044d3ce05c6http://www.pemandu.gov.my/gtp/article_go.aspx?id=198e1e2d-4de9-4251-8a16-4b5f6d3c0bcchttp://www.pemandu.gov.my/gtp/article_go.aspx?id=198e1e2d-4de9-4251-8a16-4b5f6d3c0bcchttp://www.pemandu.gov.my/gtp/article_go.aspx?id=6e86435c-c603-4ae7-91f3-dbbdcdd62ab0http://www.pemandu.gov.my/gtp/article_go.aspx?id=0ca88891-d7de-4f8f-8be9-c8df6bc54262http://www.pemandu.gov.my/gtp/article_go.aspx?id=0ca88891-d7de-4f8f-8be9-c8df6bc54262http://www.pemandu.gov.my/gtp/article_go.aspx?id=263e3cd1-c538-4135-80fd-59033d3ffa1fhttp://www.pemandu.gov.my/gtp/article_go.aspx?id=71df8a0e-f3c2-47ff-901e-fc763ab3cf7bhttp://www.pemandu.gov.my/gtp/article_go.aspx?id=71df8a0e-f3c2-47ff-901e-fc763ab3cf7bhttp://www.pemandu.gov.my/gtp/article_go.aspx?id=71df8a0e-f3c2-47ff-901e-fc763ab3cf7bhttp://www.pemandu.gov.my/gtp/article_go.aspx?id=263e3cd1-c538-4135-80fd-59033d3ffa1fhttp://www.pemandu.gov.my/gtp/article_go.aspx?id=0ca88891-d7de-4f8f-8be9-c8df6bc54262http://www.pemandu.gov.my/gtp/article_go.aspx?id=6e86435c-c603-4ae7-91f3-dbbdcdd62ab0http://www.pemandu.gov.my/gtp/article_go.aspx?id=198e1e2d-4de9-4251-8a16-4b5f6d3c0bcchttp://www.pemandu.gov.my/gtp/article_go.aspx?id=d2f70dcf-84e1-447e-84db-5044d3ce05c6http://www.pemandu.gov.my/gtp/article_go.aspx?id=d0d0f308-a997-441b-9740-519e5bb98364


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But what are the problems for the Malaysia in this way to become a developed and

high-income nation?

1- The Economic Transformation And Need For New Institutions:

In the past years, Malaysia has used a growth model to become a middle-income

country. Now, it has decided to become a high-income country. So, they growth model

has to be changed to another model to guarantee the goal of becoming a high-income

country. In this way, Malaysia has to perform its economic transformation plan,

develop, and engender the organizations and institutions needed for thistransformation.

2- Unity and Coalition of the Nation and Government:

Malaysia as it is known for being the truly Asia, its population is comprised of various

ethnics, with various cultures, religions and wants. One group wants to have a pragmatic

perspective to the economic and politic issues, another want to have an ideological

perspective. More than 50% of the population is Muslim with Islamic views and having

the government power. On the other hand, about 30% of the population is Chinese with

an economic power and having a strong presence in the market, which most of them areChristians or Buddhists.

But we know that to reach to big goals a unity between this ethnics and coalition in the

politics and economy, in addition stability in the policies and regulations, and the

perspective of the nation and government toward the economy, policy and international

issues is very vital and important. In fact, the Malaysia people need to rally together as a

nation to embrace change, be adaptive to todays environment and increasingly

globalized and rapidly changing world.

Challenges

The gap between rich and poor is becoming broad. In the past few decades,

Malaysias overall poverty levels across all ethnic groups have reduced significantly

against the economic growth and the New Economic Policy (NEP). In 2007, Apart

from the slower growth of Asian crisis, the poverty continued to decline to 3.6%.

Inequality remains to be a challenge for Malaysia. Furthermore, household income


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surveys show that the income growth has been strong only for the top 20% of

Malaysian income earners. The bottom 40% of households has the slowest growth

of average income, earning less than RM1500 per month in 2008.

There are insufficient efforts to innovate and create. The domestic innovation is

weak in Malaysia because of the comparatively low number of researchers. Low

R&D expenditure results in a lack of innovation in the industrial and export sectors.

The exports are still strong but not generating enough value added. The

economy is highly dependent on external markets with an export-to-GDP ratio of 1.2

and a trade-to- GDP ratio of 2.2 in 2008. Malaysias export is mainly electrical and

electronics (E&E) products and primary commodities such as petroleum and palm

oil. However, given the large import content in the manufactured exports, the value

added to the final product is low.

Low skills jobs come with low wages and skilled jobs come with higher wages. There

are not many high wage jobs in Malaysia and in many industries ; the share of

skilled labour has declined. In many cases, employers do not pay for skills, instead

relying on the pool of unskilled foreign workers and underpriced resources which

was possible by government policies to generate profits from production of low valueadded products and services. These factors have also largely slowed down wage

growth.

Too much politics?

The middle-income trap is a dreaded situation as it depicts of a country that is

unable to compete against advanced economies with high levels of innovation

and value-adding activities, and at the same time, unable to compete with less

developed economies that offer relatively cheaper labour.

TAF reckons that while Asia continues to be the worlds fastest-growing

region, some middle-income countries in the region are already showing signs

of economic fatigue and face stiff competition from low-cost economies. It

argues that the threat of middle-income trap looms over several Asian

middle-income countries, including Malaysia.


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Leveraging on cheap labour, Malaysia has had its golden era in 1987 to 1997,

when its economy was growing at around 10% a year. By 1992, the once-poor

Malaysia was already categorised as a middle-income economy.

Malaysias golden dream, nevertheless, burst and its robust growth interrupted

following the onslaught of the 1997/98 Asian Financial Crisis, which exposed

the then weak fundamentals of the countryseconomy. Growth of the country

subsequently became more volatile and moderate over the years.

In retrospect, Malaysia started out with somewhat similar levels of gross

domestic product (GDP) per capita as Japan, South Korea and Singapore in

the 1970s. But the three countries have since gone on to become high-income

economies, while Malaysia continues to lag over the years, and now, as TAF

argues, risks falling into a middle-income trap.

According to TAF, one of the sore points is that Malaysias rapid economic

progress, especially pre-1997, had not been accompanied by reforms in the

countrys political system.

It explains that while Malaysian leaders have managed to ensure political

stability for the country over the years, insufficient checks and balancescontinue to dog the countrys economy, thus leading to increasing

concentration of power within the executive and persistence in rent-seeking

behaviour, patronage politics, and opaque governance practices.

TAF, therefore, argues that the underlying dynamics that are slowing down

Malaysias progress to the next level are more political in nature.

Malaysias lacklustre economic performance is not due to insufficient

policies in fact, we already have too many of them, Vijayakumari argues.

What the country needs is to get its politics right in order to avoid the middle-

income trap; not more economic policies, she adds.

In dealing with the decline in the quality of the countrys education system, for

instance, Vijayakumari says, having another masterplan or blueprint will not

help.


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Just take politics out of our education system, she says, adding that

Malaysias existing education system has devastatingly failed the countrys

labour force for not producing the skills and talent required to take the

countrys economy to the next level.

Declining quality of life

Undeniably, Malaysia has been very successful in reducing absolute poverty,

but income inequality remains an issue, especially in certain geographical

areas.

TAF reports point out that a recent study found one-third of Malaysian workers

to be earning below RM700 (US$214) per month, and that is a strikingly low

figure for an upper middle-income economy.

TAF argues that Malaysia faces an increasingly fragile economic scenario, as

traditional growth drivers, that is, exports and investment, have somewhat

been losing momentum over the year. Public investment may have managed

to offset the weakening private investment, but the situation has only led to

growth in the Governments debt, which currentlystands just a hairline away

from the self-imposed limit of 55% of the countrys GDP, and prolonged fiscal

deficit at around 4% of GDP last year.

Weakening private investment is a reflection of the limited capacity of

Malaysian firms to diversify through innovation into areas which bring higher

returns, TAF argues.

In Malaysia, enabling measures for small and medium enterprises are also

stressed given that entrenched subsidies along with cronyistic relationships

between large businesses and the state limit their operating space, it says.

According to TAF, Malaysia also needs to take note of the worsening socio-

political environment that has impinged on the quality of life of its people.

The quality of life of the average Malaysians have declined with the rising

cost of living and declining public safety and security, Vijayakumari says,

adding that wage rate increases in the country have not been able to keep

pace with the countrys economic growth and rising costs of living.


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The next few years will be very challenging for Malaysia how policymakers

manage the risks going forward will be very crucial, Vijayakumari says.

Why ?

1. The Prime Minister has announced that Malaysia should develop into a high income

economy. In the past we had stressed low cost because we wanted to attract Foreign Direct

Investment through low wages for our workers. That was a good strategy because we were trying to

solve our high unemployment problem.

2. We were so successful in creating jobs that we have to import foreign labour. We were

effectively helping to solve the unemployment problem of other countries

4. When we increase incomes it will not be only wages and salaries which will increase, profits

as income must also increase. Government can quite easily pay high salaries and wages. But even for

the Government the money must come from somewhere.

6. For the private sector the money can come from more efficient management, higher

productivity through more efficient output by workers or through investments in better machinery

and equipment. Almost invariably the higher wages and salaries will increase cost and therefore the

prices of goods and services.

7. Higher income will therefore result in higher cost of living. This will reduce the purchasing

power expected of higher incomes. This would be meaningless unless the increase in cost of living

will be less than the increase in incomes.

13. There must therefore be an increase in the price of retail oil. Malaysians must accept

reasonable price increases when incomes and profits are increased on our way to becoming high-

cost developed country. There is no way we can continue to enjoy low cost of living while we ensure

we earn high incomes.

14. A high-income economy must therefore also be a high-cost (of living) country. But with good

management the high incomes would increase our purchasing power to some extent, especially in

the purchase of imported goods and services and when traveling abroad. There should be also a

certain increase in purchasing power in the country. In effect despite higher cost of living we will still

enjoy higher purchasing power and a higher standard of living.

15. I am all for the Governments high income policy. My worry is that the people may expect

high income without the accompanying high cost of living. It is better for them to be forewarned.


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Conclusion

Malaysia is committed to pursuing strategies to become a fully developed nation as envisioned by

2020. The availability of highly skilled talent is central in achieving this goal. Towards this end, this

Roadmap outlines our journey towards nurturing, attracting, and retaining talent for Vision 2020. It

encompasses strategies and initiatives that complement efforts by both the public and private.

Sectors to ensure a talent pool that meets the needs of the key industries driving the national

economic transformation agenda.

Definition middle income trap

The middle income trapis a theorizedeconomic developmentsituation, where a country which

attains a certain income (due to given advantages) will get stuck at that level.

"Instead, we must have industries. We must have intellectuals. We must have facilities. Ourinfrastructures must be superb. All these things we must have before we become a fully developed

country." - See more at:http://www.themalaysianinsider.com/malaysia/article/being-high-income-

nation-doesnt-mean-malaysia-is-fully-developed-says-dr-ma#sthash.eZHsj9rm.dpuf

Dr Mahathir had introduced Vision 2020 in 1991 to put the country on the path to be a "self-sufficient

industrialised nation" by 2020.

It included economic prosperity, social wellbeing, a world-class education, political stability and

psychological balance.

"I am sorry to say, but the way we are going, we are focusing only on per capita income. I hate to say

this, but I think by 2020, we may not achieve the status of a fully developed country.

For a country to become developed, we need to diversify. Building spectacular buildings and shining

skyscrapers alone will not make us a developed country whatever may be the per capita income or

the GDP, he had said. -

Nota tambahan

Despite this progress, significant challenges remain. For example, 7 percent of the

rural population live below the poverty line; only 80 percent of the workforce have

education up to SPM (Sijil Penilaian Menengah) qualifications (high school

equivalent to O-levels); and Malaysias economic growth has been sluggish over the

decade since the Asian financial crisis. Our task is to build on the platform we have

established over the past few decades and create the next generation of national

development.

Malaysia also focuses on a balanced economy, with significant contributions from

private consumption and investment as well as from government spending and

exports. In developed countries domestic demand typically accounts for 50 to 70percent of Gross Domestic Product (GDP). In Malaysia it is currently 53 percent.
http://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Economic_developmenthttp://www.themalaysianinsider.com/malaysia/article/being-high-income-nation-doesnt-mean-malaysia-is-fully-developed-says-dr-ma#sthash.eZHsj9rm.dpufhttp://www.themalaysianinsider.com/malaysia/article/being-high-income-nation-doesnt-mean-malaysia-is-fully-developed-says-dr-ma#sthash.eZHsj9rm.dpufhttp://www.themalaysianinsider.com/malaysia/article/being-high-income-nation-doesnt-mean-malaysia-is-fully-developed-says-dr-ma#sthash.eZHsj9rm.dpufhttp://www.themalaysianinsider.com/malaysia/article/being-high-income-nation-doesnt-mean-malaysia-is-fully-developed-says-dr-ma#sthash.eZHsj9rm.dpufhttp://www.themalaysianinsider.com/malaysia/article/being-high-income-nation-doesnt-mean-malaysia-is-fully-developed-says-dr-ma#sthash.eZHsj9rm.dpufhttp://www.themalaysianinsider.com/malaysia/article/being-high-income-nation-doesnt-mean-malaysia-is-fully-developed-says-dr-ma#sthash.eZHsj9rm.dpufhttp://en.wikipedia.org/wiki/Economic_development


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Furthermore, productivity levels similar to those of other leading Asian economies.

Achieving this will require developing an economy that is more heavily driven by

skills, innovation and knowledge.

APPENDIX

The ETP is designed to drive Malaysia forward from its current stagnant situation to

be a high income economy which is both inclusive and sustainable as shown in

Exhibit 1-2

The Governments high-income objective is not just a quantitative target. It is also

about Malaysia becoming an advanced, developed nation with an economy

possessing the characteristics that are common to developed nations. Malaysia will

focus on developing a large and thriving services sector, to supplement the nations

historical strengths in oil and gas, agriculture and manufacturing. These three

structural shifts in the economy will support Malaysias ongoing growth and will

enable Malaysia to compete more effectively with other developed nations in the

region and beyond.

Malaysias development story is one of transformation from a low income

agriculture-based economy, the economy has evolved today into an upper middleincome nation with a diversified economy anchored on services and manufacturing.


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Between 1988 and 1996, Malaysias Gross Domestic Product (GDP) grew at an

average rate of above 9.5 percent annually.

During this period, Malaysia was labelled the fifth tiger of East Asia or Newly

Industrialised Economy along with fast-developing Taiwan, South Korea, Hong

Kong, and Singapore. Double-digit growth rates were recorded in the period leading

up to the 1997/98 Asian Financial Crisis, but the subsequent volatility, including the

2008 global financial crisis, served to disrupt Malaysias progress along the path to

developed nation status.

With a volatile global macroeconomic environment, combined with intensifying

competition from other nations, a new approach to economic development was

required for Malaysia to resume its journey towards becoming a high income,

advanced nation by 2020.

To ensure that Malaysia remains on track to achieve high income, advanced nation

status within the desired timeframe, YAB Dato Sri Mohd Najib is set to introduce the

National Transformation Policy (NTP), a holistic national agenda that will focus and drive

Malaysias transformation goal. This policy framework comprises existing national policies,

including the New Economic Model (NEM), the Economic Transformation Programme

(ETP), the Government Transformation Programme (GTP), and the Political Transformation

Programme (PTP). The 10th Malaysia Plan (10MP) charts the countrys development agenda

from 2011 to 2015. Underlying each of these programmes is the guiding philosophy of

1Malaysia: People First, Performance Now which recognises the need for the full

commitment of all stakeholders, namely, the Rakyat (citizens) as well as the private and

public sectors, to drive the effective implementation of action plans and ensure the attainment

of the Vision 2020 goal.

From now until 2020, Malaysia aims to achieve a Gross National Income (GNI) of USD 15,000

per capita by 2020. Implicit in the programmes is the recognition that the foundation of any advanced

economy is a sustainable, globally competitive, highly skilled, productive, creative, and innovative

workforce.

The NEM, an economic blueprint to transform Malaysia into a high income, advanced nation,

is premised on eight Strategic Reform Initiatives (SRIs), one of which calls for the intensification of

Human Capital Development. This SRI involves measures to transform both the workplace and

workforce with the aim of improving the quality of human capital in the country.(Figure 1.2)


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The ETP aims to accelerate the NEMshigh income agenda by building on the sectors in which

Malaysia demonstrably has a competitive advantage, as embodied in the 12 National Key Economic

Areas (NKEAs) (Figure 1.3).

The new framework for development also embodies the GTP, which focuses on seven

National Key Result Areas (NKRAs) to address the peoples expectations of the Government. The

people-centric NKRAs are related to enhancing the quality of life and addressing cost of living issues

in Malaysia. The PTP is Malaysias most recent plan to develop legislation that will enable Malaysia to

become a modern, progressive, and functional democracy. This Programme complements the

Governments existing initiatives in crafting an environment for economic and social transformation to

flourish.

Exhibit 3 indicates a synopsis of 1Malaysia concept.

Source:http://www.marc.com.my
http://www.marc.com.my/http://www.marc.com.my/http://www.marc.com.my/http://www.marc.com.my/


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Exhibit 5 indicates improved water source (percentage of population with access).

In following, the GTP Roadmap is presented by Exhibit 6.

Source: RSM Business strategic Advisors

psa-high income nation

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