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 People First Performance Now 1 2 3 • 6 NKRAs • 29 MKRAs • 12 NKEAs • 131 EPPs • 60 Biz Opps 4 10th & 11th Malaysia Plan 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 what the 1 Fighting Corruption NKRAs under the GTP based on rakyat wants 2 Reducing Crime 3 Reducing Poverty 4 Enhancing Education 5 Improving Rural Basic Infrastructure 6 Urban Public Transport pemandu.gov.my .Big Results Fast in 12 months 250 pages of results… Note : GTP Annual report 2010 can be downloaded at www. 825 Types of crime Crime Crime 196.Crime rose for 3 years prior to GTP 209.582 211.645 209.780 Property theft ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Theft Snatch theft Motorcycle theft Car theft Van/lorry/heavy machinery theft Break-in (night) Break-in (day) Robberies without firearms Gang robberies without firearms Robberies with firearms Gang robberies with firearms Assault Rape Murder Violent crimes 2006 2007 2008 20091 . 817 177.6% 2009 2010 2009 2010 .520 35% drop in Street Crime -13.4% 209.837 -34.193 38.297 -15.030 24.Crime Crime 15% drop in Index Crime -32. eg Pudu.Hotspot-based deployment The Kuala Lumpur Story Pre-NKRA • 1 Contingent. 5 Districts • 22 Balai’s (Stations) • 11 hotspots.892 police officers deployed for street patrolling Crime Crime ILLUSTRATIVE NKRA Approach • 1 Contingent.8 police officers 263 police assigned to patrol Bukit Bintang every day officers assigned to patrol Bukit Bintang every day . 5 Districts • 22 Balai’s (Stations) • 501 Sectors • 2.892 police officers deployed to patrol at hotspots 5. Bukit Bintang • 2. 43 million increase in LRT ridership 192% improvement in BET ridership . 2.T.T. U.P.U.P. BET reduces travel times. KL Sentral / Pasar Seni Federal Highway KESAS Highway Bus Expressway Transit ▪ Limited to 4 stops ▪ Using underutilised KESAS Sri Muda Shah Alam Potential reduction in journey times mins ~65 ~33 KESAS Sri Muda – KL Sentral ~75 ~75 ~29 ~ 75 ~35 ~ 29 Penchala Sg Long Sentral Current BET NPE Grand Saga Subang mewah . increases ridership Current route ▪ Over 30 stops ▪ Passing through Federal Highway U.Kota Dsra .T.P.P.T.Sentral Sentral . U. U.P.T The new Integrated Transport Terminal at Bandar Tasik Selatan completed… 500 southern buses will terminate there 634 bus stops completed and refurbished .T U.P. 814 schools (primary & secondary) ranked Best UPSR exam results in 4 years.500 pre-school classes (more than 700.569 more children benefited from 1.000 in total) 9.Education Education 54. . 209 rural houses with electricity supply 2 million people living in the rural area 16.B.291 rural houses with clean / water supply Touching the lives of more than 27.B.926 houses for rural poor build & restored .I 775 km of rural roads have been completed 35.I R.R. I.H 99.L.76% Reduction in hardcore poor Hardcore Poor reduction by Month # of Ketua Isi Rumah (KIR) As of 31/12/2010 18.127 108 Nov Dec .H L.I. Chief Justice’s circular to complete all corruption cases within 1 year “Name-and-Shame” – 328 corruption offenders (including picture. for Government contracting Corporate Integrity Pledge launched Compliance units established in key law enforcement agencies.my) Guidance issued on support letters by KSN on 8 March 2010 6 ▪ ▪ 3 ▪ 7 ▪ 4 ▪ .Building blocks against corruption 1 Corruption Corruption ▪ Whistleblower Protection Act came in to force on 15 December 2010 5 ▪ ▪ Competitive tender as default process 4.500 government contract awards published on line (as of 24th March) Implementation of Integrity Pacts via Treasury directive.sprm.gov. IC No) published in MACC website to date (www. joint training conducted 2 ▪ ▪ 18 new corruption courts for speedy trials. 4 n/a Corruption Corruption .6 4.6 4.4 (2010) 1.3 4.2 3.5 (2009) to 4.5 Score (2010) 6.3 3. 2 2009 No 1 2 3 4 5 6 Survey IMD World Competitiveness Report Political Economic Risk Consultancy (PERC) Report World Economic Forum (WEF) Report Economic Intelligence Unit (EIU) Report Global Insights (GI) Report BF Report Score (2009) 5. TI CPI constituent surveys shows improvement in 2010 vs. TI Corruption Perception Index (CPI) Survey: 1 Malaysia ranked 56th 4.6 3.5 n/a n/a 4.Heading the right way… 1. Heading the right way… Corruption Corruption 48% (2010) Transparency International Global Corruption Barometer survey showed significant improvement 28% (2009) . Singapore Michael Hershman Co-founder of Transparency International.Endorsement on GTP Results 2010 1 International Panel Review Committee 2 Agreed Upon Procedure (AUP) by independent auditor Sir Michael Barber Partner. Current CEO of the Fairfax Group Sergei Dodzin Senior Economist. Asia & Pacific Department – International Monetary Fund Stephen Sedgwick Australian Public Service Commissioner 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 . McKinsey UK. ex-Head of Prime Minister’s Delivery Unit (PMDU) of Tony Blair Administration Ravi Balakrishnan IMF Resident Representative. GTP Performance 2010 for the 6 NKRAs showed positive results using all the 3 methods…. Partial. No) Traffic Lights 3 1 2 3 4 5 6 Urban Public Transport Crime Rural Basic Infrastructure Education Low Income Household Corruption 100% 100% 100% 100% 100% 100% 107% 168% 91% 107% 168% 91% 97% 100% 88% 99% 79% 90% 92% 78% 90% 75% 90% 63% 78% P P P P P P P 99% Get 156% 156%book it from the 79% 121% 79% 121% 120% 79% 90% Overall composite scoring 120% 92% 79% Source : GTP Annual Report 2010 . No. NKPIs 2010 Target Score #1 Traffic Lights 1 Score #2 (max 100%) 97% 100% 88% Traffic Lights 2 Score #3 (Yes. 443 4.163 4 88% 76% 73% 48% 99% 52% 1 2 3 4 5 6 Urban Public Transport Crime Rural Basic Infrastructure Education Low Income Household Corruption 5.310 Overall composite scoring 79% Saving to the Government = RM 1. RM mil) 448 338 3.170 8 396 258 2.234 245 1.133 billion Source : GTP Annual Report 2010 . NKPIs 2010 Actual % of Budget Expenditure Expenditure (RM mil) (Nov 2010.372 118 1.GTP delivered 120% with 79% expenditure NKRA Overall Performance 2010 No. Lets now look at the Economic Transformation Programme (ETP) People First Performance Now 2 3 • 6 NKRAs • 29 MKRAs • 12 NKEAs • 131 EPPs • 60 Biz Opps 4 10th & 11th Malaysia Plan . NEM . for everyone & for a long time High-Income Target USD 15.Making us a rich country.000 GNI per capita by 2020 Enables all communities to benefit from the wealth of the country Quality of Life Inclusiveness Sustainability Meets present needs without compromising future generations . 3 million additional jobs Investment • USD 444 billion (RM1.000 (RM48.6 million population • 3. 8% public investment • 73% domestic.Overview of ETP Gross National Income (GNI) • US$15.000) per capita GNI • USD 523 billion (RM1.4 trillion) investment • 92% private. 27% foreign direct investment .7 trillion) GNI • 6% GDP growth per annum Transformational Actions • • • • 12 NKEAs 131 EPPs 60 BOs Transformational approach • Private sector-led Jobs • 31. ETP = NKEA + SRI 1 NKEAs (drivers) Source: PEMANDU (with EPU) GNI per capita US$ Target 15.000+ Current 7.000 2 US OC F NKEA 1 NKEA 2 NKEA 3 NKEA 4 NKEA 5 Others SRIs (enablers) Re-energising private sector Developing quality workforce Competitive domestic economy Strengthening public sector Transparent & Market Friendly Affirmative Action Building knowledge base infrastructure Enhancing sources of growth Ensuring sustainability of growth Source: NEAC SS NE VE IT I ET P OM C . Focus: 12 National Key Economic Areas (NKEAs) . Competitiveness – Strategic Reform Initiatives (SRIs) 14 51 policy measures policy measures with natural homes with natural homes within the NKEAs // within the NKEAs NKRAs NKRAs Consolidate and monitor the implementation plans with the respective NKEAs / NKRAs 6 Labs covering the 37 which are WIP and which are WIP and require further require further detailing out detailing out following: 1 Intl Standards & Liberalisation 9 policies Human Capital Development 2 9 policies 3 Public Finance 5 policies 4 Public Service Delivery 7 policies 5 Government‘s Role in Business 5 policies 6 Narrowing Disparities (Bumiputera) 2 policies . ETP Governance to ensure delivery ETP Forum Semi-Annual Structure Secretariat Economic Council Weekly NKEA Steering Committee Investment Monthly Committee Monthly Lead Ministries EPP / BO owners Year-round Respective Ministries / EPP owners . 354 60 Projects in 46 EPPs .500 Investment: RM66.2 billion GNI 224.5b Jobs: 52. RM95 billion investment 60 Projects in 46 EPPs RM95 billion investment RM137.2 billion GNI .5b Jobs: 70.400 Investment: RM14.2b GNI: RM84.354 jobs created RM137.354 jobs created . 224.100 Investment: RM8.1b Jobs: 88.ETP Updates by PM Round #1 (25 Oct 2010) Round #2 (30 Nov 2010) Round #3 (11 Jan 2011) Round #4 (8 Mac 2011) 9 projects 9 projects 19 projects 23 projects Investment: RM5.8b GNI: RM32..75b GNI: RM20..3b GNI: RM100m Jobs: 13. 35% of EPPs are already off the ground… Number of EPPs RM95 b RM80.2 billion GNI 224. 224.354 jobs created .3 b RM13.3 b 60 37 9 18 60 Projects in 46 EPPs .354 jobs created RM137.. RM95 billion investment 60 Projects in 46 EPPs RM95 billion investment RM137.5 b RM5..2 billion GNI . 98 b 4 30 RM 37.…worth RM 95 billion of investment… RM 57.26 b 26 60 projects in 46 EPPs 60 projects in 46 EPPs . 1 billion commitment in 2011 including: • Shell MDS wax plant expansion.Oil. Port Dickson Part of RM5. Bintulu •Gumusut Kakap deepwater development. procurement and construction agreement with Alstom Power System SA-led consortium •Expected completion and commission by March 2015 * Existing 2. Bintulu Tenaga Nasional signed agreement to build coal-fired power plant in Manjung • Part of RM4.100MW Janamanjung power plant . Gas & Energy Shell Malaysia starts construction of new RM800 million diesel processing unit.0 billion commitment in 2011 •Engineering. offshore Sabah * Existing Shell MDS. Buloh OVERALL Existing Rail Lines. CEO .Buloh Damansara Kota Damansara 2km KLJ BLUE Corridor CIRCLE Corridor AMG Kepong Extension Corridor ORANGE Corridor Shah Alam Town Center Shah Alam Town Center Klang Petaling Jaya Petaling Jaya Klang Shah Alam Subang Jaya Subang Jaya Seri Kembangan MRT •PDP contractor appointed •Open Day completed •Alignment in progress •Pre-qualifying tender & bidding in progress •Ground breaking 8th July 2011 Shah Alam Heights Putra Kajang Putra Heights Seri Kembangan Talent Corporation •Johan Mahmood Merican appointed CEO •New five-to-10 year Residence Pass launched on 4 April 2011 * Johan Mahmood Merican.Greater KL/KV Batu Caves Sg. Minconsult’s Option and MMCG JV’s Proposal Legend Existing Rail Lines KTM Komuter Kelana Jaya Line Ampang Line KL Monorail Kelana Jaya Line Extension Ampang Line Extension MMCG JV Schemes RED Line GREEN Line CIRCLE Line Minconsult’s Alternatives Batu Caves Sg Kota . Palm Oil Oil palm replanting & new planting Replanting: • 264 applicants approved covering 921 ha • Commitment value: RM6.45 million (5 Apr) New planting: • 1.039 ha * Illustrative only .86 million (5 Apr) * Illustrative only Increasing FFB yield 4 cooperatives set up involving 11.492 smallholders and 59.205 applicants approved covering 2.410 ha • Commitment value: RM16. 23% completed •Expected completion: December 2012 * Pulau Gaya Resort & Majestic Hotel site pictures Johor Premium Outlets • 90% earth work completed •20% construction completed •Handover in September 2011 •Official opening scheduled on 11 Nov 2011 * Johor Premium Outlets site picture . KL: •Sub-structure completed. superstructure construction in progress • Overall. Sabah: • 14 of 31 rooms completed • Overall. 35% completed • Expected completion: 30 June 2012 Majestic Hotel.Tourism Pulau Gaya Resort. Wholesale & Retail TUKAR •16 stores transformed as at 1 Apr 2011 •Four sponsors are Mydin. Carrefour and SKM * A TUKAR store in Merlimau. Tesco. Bukit Jambul . Melaka 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 * Mydin Hypermarket. • Submission to local authority for “Planning Permission" expected in end of June 2011. The formal appointment of architects is expected by the end of March. . • Traffic studies are expect to be completed by May 2011.Healthcare University Malaya Health Metropolis • The health planning and architecture design selection process have been completed. • Earthworks are targeted to begin in Nov 2011 • Tax incentive discussion started with MOF. Clinical stakeholders will sign off on the schematic designs by June 2011. expect to be gazetted as "Health Metropolis" areas by Q3 2011. Malaysia’s GNI / GDP Net Factor Income From Abroad CONSUMPTION CONSUMPTION RM 355 b GNI RM 497 b .RM 24 b INVESTMENT INVESTMENT RM 111 b GDP GDP RM 521 b INVENTORY INVENTORY .RM 14 b TRADE TRADE RM 71 b Source : Bank Negara 2009 Figures . Thailand (102). China (100).Consumer Confidence on 4-year high… • Malaysia is at 9th place globally • Ahead of Sweden and Vietnam (both at 103). Hong Kong and New Zealand (both at 99) Source : Neilsen Consumer Confidence Index . 905 Source: MAA 2010 & 2009 .4% RM 71b Source: MRG 2010 & 2009 605.156 RM 97.7% 536.7b 35% RM 71.7b Source: Valuation & Property Svc Dept (Nov 2010 / Nov 2009) 12.…and reflected in private consumption Retail Sales Car Sales Property Sales RM 77b 8. 2011 investment target (RM 83 b) is achievable… Private Investment .RM (Billion) 50.6 127 76 Probability of Success At 90% = RM 114 b At 80% = RM 101 b At 70 % = RM 89 b EPPs & others Source : PEMANDU Analysis Base Load Potential / Planned . Trade is up too. 2010/2009 Trade RM1.3% RM 988.24 b Source: MITI .169 t 18.. 03 2.Bursa Malaysia closed at a record high on 7 January 2011 Aug 2010 As at 7 Jan 2011 1.69 3.122.275.65% (153.01 78.2 billion) 1.1% .11 1.14 107.572.28 13.7% 1.21 pts % Change Market capitalisation (billion) Daily average volume (billion) Daily average value (billion) 1. It shows Malaysia is . ... 486.720 64.2 7.8 7.783.688.056 1. mix and quality of hotels Enhancing connectivity to priority medium-haul markets 706.261.324.489 50 Biodiesel expansion (organic growth) 493.9 3.135 4.131 51 Organic growth (inflation effect) 5.081. Business Opportunities Palm Oil 2020 GNI (millions) Jobs 48 Upstream developments (organic growth) 13.733 14.546 1.788 1.0 5.7 NA 1.036 5.131 EPPs & 60 BOs to ‘subscribe’… No.500) 10.5 53 Fixed services development 541.924.858 1.294 9.310.7 220.600 (82.447 57 Food and beverage outlets 1.3 3.9 44.1 1.402 59 Baseline growth 7.0 5.919 64.5 3.500 2. post and broadcast services development 500.0 0 Communications Content and Infrastructure 52 Mobile services development 5.2 875.665.7 3.297.838.610 Source : Economic Transformation Roadmap book .5 2.6 664 56 Organised tours 293.5 1.711.9 1.9 7.1 2.5 16.402.986.326 250 800 1.172.160.155 3.9 7.1 2.994 3.692.000 2.5 1.0 26.114.5 4.424 13.000 4.3 1.614 5.608 58 Taxi industry 222.478 10.480.4 666.3 1.7 1.0 0 49 Downstream investments (organic growth) 3.005.487.934.7 740.220 2.942 2020 GNI (millions) Jobs No.6 1.644 2.186 1.713 8.813.758.0 10.128.100.528.4 13.7 2.044 74.289.2 426.000 5.2 1.7 9.563 55 Net regional transfer services development Tourism 1.8 1.496.612. EPP Palm Oil 87 88 89 90 91 92 93 94 Accelerate the replanting of oil palm Improve fresh fruit bunch yield Improving worker productivity in plantations and estates Increasing the oil extraction rate Developing biogas facilities at palm oil mills Developing oleo derivatives Commercialising second generation biofuels Expediting growth of food and health-based downstream segments Communications Content and Infrastructure 95 96 97 98 99 100 101 102 103 104 Ensuring broadband for all Extending reach Offering a smart network Extending the regional network Connecting 1Malaysia Deploying 1Malaysia payments Nurturing ’s creative content Launching e-Healthcare Establishing e-Learning for students and workers Deepening e-Government Tourism 105 106 107 108 109 110 111 112 113 114 115 116 Developing the world’s first eco-nature integrated resort in Designating KLCC-Bukit Bintang as a vibrant shopping precinct Establishing three new premium outlets in Declaring as a global biodiversity hub Positioning as a duty free shopping destination for tourist goods Creating a straits Targeting more international events Establishing dedicated entertainment zones Developing local expertise and better regulating the spa industry Establishing as a leading business tourism destination Improving rates.1 7.947.159.250 54 Courier. To facilitate fast and successful implementation To resolve any issues or roadblocks . 2 If Government expresses interest. These include meetings with various ministers and ministry officials 3 These project meetings are important: To secure the necessary support.You can participate too… 3 steps to become an ETP project Engage Government early with your project proposal Robust investment analysis & business case Proper follow-up meetings 1 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. 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. .Message to Passage. 120% achievement Progress is on track . Thank you . * A router component at the assembly station .Communications Content & Infra 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 Cisco has commenced manufacturing of a wide range of routing and switching products at its manufacturing partner’s facility in Penang. 2 billion solar cell fabrication facility in Melaka was officiated by Prime Minister on 15 December 2011 and operational.E&E & Education AUU Sunpower •Phase 1 of RM2. * AUO Sunpower plant in Melaka 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 . it is expected to produce cells capable of generating 1. •When fully completed in 2013.400 MW of energy per year.