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ECONOMIC PLANNING UNIT   World Bank PSD Conference


                         Malaysia’s Economic
                        ...
1 Malaysia, EPU &
                     Development
                                                        2
BRIEFING OUTL...
MALAYSIA AND ETHIOPIA
Country Profile
                                Independence : 31 August 1957
                                Form of St...
MAIN FUNCTIONS OF EPU
               • Formulate policies and strategies in development planning
               • Prepare ...
ORGANIZATIONAL STRUCTURE OF THE EPU

                              Director General

 Deputy Director General    Sections ...
Planning Horizon . . .
                         q   LONG TERM PLANNING
                              – Vision 2020, 1991-2...
Major Economic Policies                          Vision 2020
                                               TOTAL DEVELOPM...
Transformation From an Agro-based to an Industrial-based Economy . . .
(GDP in RM billion at 1987 prices / Percentage to T...
Diversification Of Exports . . .
 (% to Total Exports)
                                                               Manu...
ECONOMIC PERFORMANCE   Real GDP Growth . . .
                           Average 1971- 80     7.5 %
                       ...
The Guiding Parameters
DEVELOPMENT PLANNING



                        Open economy

                        Mixed syste...
DEVELOPMENT PHILOSOPHY
                         Partners In Development . . .
                         through a MIXED ECO...
DEVELOPMENT PLANNING MACHINERY
                                        PARLIAMENT


                                      ...
Malaysia Incorporated Policy . . .
                    Launched in 1983 ~ marked the introduction of
                    ...
MAJOR POLICY INITIATIVES
                        Economic liberalisation & deregulation
                        Improvin...
Ninth Malaysia Plan, 2006 – 2010
                                                The National Mission, 2006 – 2020
TOWARDS...
Thrust
                                        To move the economy up the value chain
                              1

   ...
Thrust
                                   To strengthen the institutional & implementation
                           5   ...
ECONOMIC PLANNING UNIT




          PRIVATIZATION



20
PRIVATIZATION POLICY
PRIVATIZATION POLICY


                       • Privatization policy was launched
                   ...
Objective of Privatization . . .
PRIVATIZATION POLICY

                           Reduce financial & administrative
     ...
SCOPE OF PRIVATIZATION
Airports RM10.0 bn /   Ports RM7.8 bn /       Power RM42.3
USS2.9 bn              US$2.1bn         ...
PRIVATIZATION METHODS
                        Existing Projects/Activities :
                           Outright sale (a...
PRIVATIZATION ACHIEVEMENTS SINCE 1983
                       • Total privatized projects                       485
PRIVATI...
PRIVATIZATION POLICY - LESSONS LEARNT

                       • Need strong commitment by the Government
PRIVATIZATION POL...
ECONOMIC PLANNING UNIT



                         INDUSTRIAL
                         CLUSTERS –
                        ...
E&E Industrial Cluster
                             • Major driver in transforming Malaysia from an
PUBLIC-PRIVATE PARTNER...
Enhancing E&E Industrial Cluster –
                             Development Strategies
PUBLIC-PRIVATE PARTNERSHIP



     ...
ECONOMIC PLANNING UNIT




           CONCLUSION



30
ROLE OF THE PUBLIC SECTOR
                        Strategic integrator & facilitator of development efforts in
          ...
ROLE OF THE PRIVATE SECTOR
CONCLUDING REMARKS


                        Provide dynamism in spearheading the economy
    ...
CRUCIAL ELEMENTS FOR SUCCESS
                     •   Strong political and public sector
CONCLUDING REMARKS



           ...
ECONOMIC PLANNING UNIT




                         THANK YOU
                            www.epu.jpm.my




             ...
ECONOMIC PLANNING UNIT




         SLIDES
         HYPERLINKED




35
Thrust
                                  To raise the country’s capacity for knowledge and
                      2        ...
Thrust
                                To address persistent socioeconomic inequalities
                      3         co...
Thrust
                             To improve the standards and sustainability of the
                      4      qualit...
Investment Incentives . . .
                        Pioneer status or Investment tax
                         allowance f...
Investment Incentives . . .
                      Incentives for software development
                      Pre-packaged...
Manufacturing Investment in Approved Projects, 2001- 2005
                                           Capital Investment (R...
Providing An Integrated
                      Industrial Infrastructure
SUPPORTING PRIVATE



                       TYPES...
PUBLIC-PRIVATE PARTNERSHIP   e-ENABLE SUPPLY CHAIN MANAGEMENT



                             • RosettaNet Malaysia - laun...
ECONOMIC PLANNING UNIT




          ADDITIONAL SLIDES



45
RosettaNet Malaysia Partners include
                …
Solution Providers :
Hewlett-Packard Sales
                        ...
ICT & Multimedia Hub: MSC Milestones
 Milestones




                                                                     ...
MSC Phase 1




              48
MSC Next Leap (2004 – 2010)
     Rollout MSC Cybercities/Cybercentres….



                                          Kulim...
Flagship Applications




                        50
Companies in MSC


   INSOURCE                         OUTSOURCE
Services delivered internally   Partner with external pro...
• Malaysia is ranked 3rd globally for global
  outsourcing location attractiveness
• Well developed, low-cost infrastructu...
Factor Conditions for Growth of MSC &
                      Public-Private Sector Collaboration
SUPPORTING PRIVATE



    ...
Cont…

                              Factor Conditions for Growth of MSC &
                              Public-Private Se...
Bill of Guarantees
                      • Provide a world-class physical and information
                        infrastr...
Cont…
                              Bill of Guarantees
                      • Become a regional leader in intellectual
  ...
PUBLIC-PRIVATE PARTNERSHIP        Biotechnology Industry Cluster
                             • Position biotechnology as ...
BIOTECHNOLOGY ACTION PLAN
         PHASE I                    PHASE II            PHASE III            Competitiv
       (...
Generating New Sources of Growth
         Growth Areas               Competitive Advantage
• Agro-biotechnology           ...
Bio-Nexus Network

              IAB                                     IPN
           UPM/MARDI                         ...
Financial Services Cluster
                                    Labuan IOFC
PUBLIC-PRIVATE PARTNERSHIP



                 ...
Palm Oil Industrial Cluster (POIC)
                             • Lahad Datu POIC - to add value to the oil
PUBLIC-PRIVATE...
Halal Hub
                             • Development of halal product industry
PUBLIC-PRIVATE PARTNERSHIP


              ...
TIGeR’s Supply Chain Model

    Global Buyers
                                                                Government

...
Malasiyan Planning
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  • Transcript of "Malasiyan Planning"

    1. 1. ECONOMIC PLANNING UNIT World Bank PSD Conference Malaysia’s Economic Development with emphasis on Public-Private Collaboration By Dato’ Abd. Rahman Husin, Deputy Director General (Sectoral), Economic Planning Unit, MALAYSIA May 2006
    2. 2. 1 Malaysia, EPU & Development 2 BRIEFING OUTLINE Planning Public-Private Sector Collaboration –An Overview 3 Privatization 4 Sectoral Perspective - Industrial Clusters 5 Conclusion 2
    3. 3. MALAYSIA AND ETHIOPIA
    4. 4. Country Profile  Independence : 31 August 1957  Form of State : Federated constitutional monarch MALAYSIA : GEO-POLITICAL  Administrative Division : 13 states and 3 Federal Territories  Total area : 330,242 sq km  Land : 329,042 sq km  Water : 1,200 sq km  (Ethiopia : 1.1 million sq km – land area)  Climate : Tropical; annual southeast (April-Oct) and northeast (Oct-Feb) monsoons  Land Use :  Arable land : 3%  Permanent crops : 12 % STRUCTURE  Forests : 68 %  Others : 17 %  Language : Bahasa Malaysia (Official), English, Chinese, Tamil  Religions : Islam, Buddhism, Hinduism, Christianity & Others Map
    5. 5. MAIN FUNCTIONS OF EPU • Formulate policies and strategies in development planning • Prepare long and medium term plans • Prepare development programmes & project budget EPU MALAYSIA • Monitor & evaluate the achievement of development programmes & projects • Advise government on economic issues • Initiate & undertake necessary economic research • Plan & coordinate the privatization programme & evaluate its achievement • Coordinate Malaysia’s involvement in the development of the Growth Triangle Initiatives • Initiate & coordinate bilateral & multilateral assistance • Manage the Malaysian Technical Cooperation Programme 5
    6. 6. ORGANIZATIONAL STRUCTURE OF THE EPU Director General Deputy Director General Sections directly under the Deputy Director General (Macro Planning Division) Director General (Sectoral Planning Division) Macroeconomics Secretariat to the Industry & E. Services National Economic Action Council Infrastructure & Utilities Distribution Social Services Human Resources Secretariat to the Foreign Investment Agriculture Regional Economics Committee Energy Environment General Services Development Budget Knowledge Economy Legal Adviser Privatization Technical Services No. of officers : 250 External Assistance No. of staff : 150 Total : 400
    7. 7. Planning Horizon . . . q LONG TERM PLANNING – Vision 2020, 1991-2020 MAJOR POLICY EVOLUTION – First Outline Perspective Plan (OPP1), 1971-1990 PLANNING HORIZON AND – Second Outline Perspective Plan (OPP2), 1991-2000 – Third Outline Perspective Plan (OPP3), 2001-2010 q MEDIUM TERM PLANNING – Five-year development plans, such as the Ninth Malaysia Plan (2006-2010) – Mid-term review (MTR) of the five-year Plans q SHORT TERM PLANNING – Annual Budget 7
    8. 8. Major Economic Policies Vision 2020 TOTAL DEVELOPMENT Performance & Impact National Mission Oriented Development 2006 - 2020 to achieve the goals of Vision 2020 National Balanced Development Development, Policy (NDP) 1991-2000 New Economic Growth with Equity, 1971-90 Policy (NEP) Post- • Laissez-faire / export-oriented independence • Economic and rural development 1957-70
    9. 9. Transformation From an Agro-based to an Industrial-based Economy . . . (GDP in RM billion at 1987 prices / Percentage to Total in italics) RM billion 300 250 200 57.6 % 58.1% 150 53.9 % 100 12.2 % 43.1 % 46.8 % 31.9 % 30.8 % 31.4 % 50 37.5 % 17.2 % 24.6 % 0 26.7 % 21.0 % 16.3 % 8.9 % 8.7 % 8.2% 1970 1980 1990 2000 2003 2005 Agriculture Construction Manufacturing Mining Services
    10. 10. Diversification Of Exports . . . (% to Total Exports) Manufactures 80.5 Rubber Tin 33.4 19.6 Forestry 16.3 Others Oil & gas 9.8 Palm Oil 3.9 Oil & gas Palm Oil 5.1 Manufactures 11.9 9.2 Others 3.6 Forestry Tin Rubber 4.2 1.2 1.1 0.2 1970 2005 RM 5,163 million RM 533,790 million (US$2,065 million) (US$141,588 million)
    11. 11. ECONOMIC PERFORMANCE Real GDP Growth . . . Average 1971- 80 7.5 % Average 1981- 90 5.8 % Average 1991- 2000 7.1 % Average 2001- 05 4.5 % 2000 8.5 % 2001 0.3 % 2002 4.4 % 2003 5.4 % 2004 7.1 % 2005 5.3 % 2006e 6.0 % 11
    12. 12. The Guiding Parameters DEVELOPMENT PLANNING  Open economy  Mixed system  Multi racial society A federation 12
    13. 13. DEVELOPMENT PHILOSOPHY Partners In Development . . . through a MIXED ECONOMIC SYSTEM of free enterprise but with active government support and direction The GOVERNMENT provides the broad thrusts and sets direction for the whole economy, and ensures the achievements of socio-economic goals The PRIVATE SECTOR is free to operate and given appropriate policy, institutional and infrastructural support. 13
    14. 14. DEVELOPMENT PLANNING MACHINERY PARLIAMENT Cabinet Ministers National Planning Council National National Economic Action Action Council (NEAC), Draft Policy National Economic Council Consultative Council National Development (NECC) Planning Committee Secretariat Draft Implementation & Economic Planning Unit Coordination Unit Private Sector Proposal General framework Dialogue Inter-Agency Planning Group (IAPG) Proposal Proposal Consultations Circulars Circulars Federal Ministries & Agencies State Governments Private Sector
    15. 15. Malaysia Incorporated Policy . . .  Launched in 1983 ~ marked the introduction of structured public-private sector collaboration  Stresses the importance of cooperation between public and private sectors  Establishment of several consultative panels/ dialogues comprising members from the public and COLLABORATION PUBLIC-PRIVATE private sector  Budget & MITI dialogues  Malaysian Business Council  Government began instituting major policy initiatives 15
    16. 16. MAJOR POLICY INITIATIVES  Economic liberalisation & deregulation  Improving investment policies & incentives SUPPORTING PRIVATE  Ensuring a business-friendly environment SECTOR INITIATIVES  Administrative & institutional improvements  One-stop centres  Systems & procedures for licensing  Client’s Charter  Productivity improvements – TQM, KPIs  Public service delivery  Providing an integrated industrial infrastructure 16
    17. 17. Ninth Malaysia Plan, 2006 – 2010 The National Mission, 2006 – 2020 TOWARDS 2020 ~ THE NEXT PHASE 1. Moving the economy up the value chain 5. Strengthening the country’s institutional & implementation capacity ~ establish a 2. Raising the capacity more effective for knowledge and implementing & innovation, and monitoring mechanism Five Key nurturing “first class Thrusts mentality” 3. Addressing 4. Improving the persistent socio- standard and economic inequalities sustainability of the constructively and quality of life productively To achieve the goals & objectives of Vision 2020 17
    18. 18. Thrust To move the economy up the value chain 1  Increasing productivity, competitiveness & value-add THE NATIONAL MISSION,  Generating new sources of wealth & job creation in technology- and knowledge-intensive sectors  Giving a lead role to the private sector, & increasing private sector investment by providing an enabling environment for doing business, enhancing SMEs development, increasing public-private partnerships as well as attracting targeted 2006-2020 high-quality FDI  Inculcating a culture of high performance & excellence in public & private sectors including GLCs  Expanding market for Malaysian products and services 18
    19. 19. Thrust To strengthen the institutional & implementation 5 capacity  Improving public services delivery by THE NATIONAL MISSION, strengthening governance, streamlining administrative processes and measuring performance  Improving usage and cost-efficiency of public sector funds by upholding financial prudence as well as improving the monitoring of implementation  Addressing actual and perceived corruption in 2006-2020 both the public and private sectors  Enhancing corporate governance and delivery of private sector services by improving legal and regulatory frameworks  Strengthening the role of Parliament, media & 19 civil society
    20. 20. ECONOMIC PLANNING UNIT PRIVATIZATION 20
    21. 21. PRIVATIZATION POLICY PRIVATIZATION POLICY • Privatization policy was launched in 1983 • It represented a policy shift from public sector-led to private sector-led growth • The policy has been an integral part of the national development policy of Malaysia
    22. 22. Objective of Privatization . . . PRIVATIZATION POLICY  Reduce financial & administrative burden of the Government  Reduce public sector size & direct participation in the market place  Promote competition, efficiency & productivity  Accelerate economic growth  Meet the targets of NEP, NDP & NNM 22
    23. 23. SCOPE OF PRIVATIZATION Airports RM10.0 bn / Ports RM7.8 bn / Power RM42.3 USS2.9 bn US$2.1bn bn / US$11.1bn Urban Telecommunications/ Roads/highways Transportation RM12 multimedia RM6.6 bn / RM31.6 bn/US$8.3bn bn/US$3.2bn US$1.7bn Water treatment
    24. 24. PRIVATIZATION METHODS  Existing Projects/Activities :  Outright sale (assets or shares) PRIVATIZATION POLICY  Lease  Management-Buy-Out  Management Contract  New Projects :  Build-Operate-Transfer (BOT)  Build-Operate (BO)  Build-Lease-Transfer (BLT)/Build-Transfer (BT)  Guiding Principle : Choose a feasible method which maximize private sector investment  Administrative machinery :  Centralized planning and processing at the EPU  Decentralized implementation by the ministries and State Governments  Standardization of terms and conditions of privatization 24
    25. 25. PRIVATIZATION ACHIEVEMENTS SINCE 1983 • Total privatized projects 485 PRIVATIZATION POLICY – Existing projects 346 – New projects 139 • Workers transferred to the private sector 113,200 • Savings (RM billion) – Operating expenditure 7.8 – Development expenditure 154.0 – Proceeds from sale of Government equity 28.9 • KLSE market capitalization (Oct 2005) – RM billion (for 40 privatized entities) 174.1 – % to total market capitalization 23.0 25
    26. 26. PRIVATIZATION POLICY - LESSONS LEARNT • Need strong commitment by the Government PRIVATIZATION POLICY • Strong policy statements on private sector as the engine of growth • Private sector must possess a certain level of expertise and readiness to undertake project & investment risks • Require a well-developed financial market to support large scale investment • Need proper planning, monitoring & coordination to ensure success in implementation • Necessary to undertaken rigorous evaluation on project viability 26
    27. 27. ECONOMIC PLANNING UNIT INDUSTRIAL CLUSTERS – PUBLIC-PRIVATE PARTNERSHIP 27
    28. 28. E&E Industrial Cluster • Major driver in transforming Malaysia from an PUBLIC-PRIVATE PARTNERSHIP agricultural to industrial exporter • Took off in the early 1970s with export-oriented industrialization strategy • Attractive investment climate: Incentives FDI  Investment Incentives Act 1968 & Industrial Coordination Act 1975 provided better incentives to attract FDI in E&E sector  Key support institutions, infrastructure & services  Industrial Infrastructure  Utilities & Telecommunications  Air Cargo & Port Facilities  HRD – PSDC, Industrial Training Institutes, Universities and educated low-wage labour • Leading industrial subsector  28% of manufacturing value added (2005)  65.8% of exports of manufactured goods 28  26.8% of total manufacturing sector employment
    29. 29. Enhancing E&E Industrial Cluster – Development Strategies PUBLIC-PRIVATE PARTNERSHIP • Moving the value chain up by encouraging MNCs to shift more sophisticated/high tech operations to Malaysia • Deepening supply chain by developing capabilities in domestic firms • Increasing value added through the technology acquisition & development • Generating synergy with the development of ICT & multimedia industry • Nurturing global Malaysian-owned companies e.g. Globetronics, ENG Technology 29
    30. 30. ECONOMIC PLANNING UNIT CONCLUSION 30
    31. 31. ROLE OF THE PUBLIC SECTOR  Strategic integrator & facilitator of development efforts in addition to its traditional role of administrator & provider CONCLUDING REMARKS of basic socio-economic infrastructure  Develop long, medium and short term plans in pursuit of national socio-economic development goals  Responsible for macro and socio-economic management towards socio-political, macroeconomic and financial stability  Enhance liberalization and deregulation towards creation of a conducive environment for private investment  Charting new directions and strategies for growth  Custodian of public goods and spearheading social programmes  Governance by networks – collaborate with private firms, industry associations and NGOs & engaging citizens
    32. 32. ROLE OF THE PRIVATE SECTOR CONCLUDING REMARKS  Provide dynamism in spearheading the economy and be the engine of growth  Improve efficiency & productivity towards the creation of a competitive private sector  Engage foreign investors in mutually beneficial partnership and joint ventures  Embark on R&D and innovation activities for wealth creation  Develop long, medium and short term plans in pursuit of national goals
    33. 33. CRUCIAL ELEMENTS FOR SUCCESS • Strong political and public sector CONCLUDING REMARKS support • Sufficient level of empowerment • Close collaboration among central agencies Ministries and implementing agencies • Strong partnership between public and private sectors • Effective communication strategy 33
    34. 34. ECONOMIC PLANNING UNIT THANK YOU www.epu.jpm.my 34
    35. 35. ECONOMIC PLANNING UNIT SLIDES HYPERLINKED 35
    36. 36. Thrust To raise the country’s capacity for knowledge and 2 innovation and nurture ’first class mentality’  Promoting Islam Hadhari as a comprehensive & universal development framework for the nation  Undertaking comprehensive improvement of the education system, from pre-school to tertiary level, from the aspects of curriculum and teaching to school facilities, with a special focus NATIONAL MISSION, on raising the standard of schools in rural areas  Enhancing national schools to become the people’s “school of choice”  Producing universities of international standing and ensuring that tertiary institutions meet the needs of employers  creating more avenues for skills development, training and lifelong learning for the labour force at all levels and for all ages, 2006-2020 including in ICT  Providing an environment and innovation system which encourages top-quality R&D and its commercialisation  Refining and implementing programs which encourage the development of a strong moral and ethical culture as encapsulated in the National Integrity Plan  Empowering youth & women to participate in national 37 growth and development
    37. 37. Thrust To address persistent socioeconomic inequalities 3 constructively & productively  Eradicating hardcore poverty by 2010 as well as reducing overall poverty  Reducing disparities between rural and urban population & among states & regions via sustainable income-generating NATIONAL MISSION, avenues & by improving access to basic needs such as housing, education, healthcare, utilities & transportation  Developing less developed regions through regional growth centres  Bridging the digital divide  Addressing inter- and intra-ethnic disparities, particularly by raising incomes through the enhancement of skills & capabilities 2006-2020  Promoting equal opportunities in employment towards reducing disparities in occupation & income as well as enhancing integration among the ethnic groups  Creating a new generation of competitive Bumiputera entrepreneurs & enterprises  Reviewing past restructuring policies and programmes to evaluate their effectiveness and impact, and to focus 38 future policies and programmes on merit and need
    38. 38. Thrust To improve the standards and sustainability of the 4 quality of life  Ensuring better protection of the environment and more efficient usage of natural resources  Enhancing energy sufficiency and efficiency, NATIONAL MISSION, including diversifying sources of energy  Increasing the efficiency of water services delivery  Providing better public transportation to relieve congestion and reduce fuel usage 2006-2020  Improving access to and quality of healthcare and affordable housing  Ensuring public safety and security  Enhancing the development and promotion of Malaysian culture, arts and heritage 39
    39. 39. Investment Incentives . . .  Pioneer status or Investment tax allowance for manufacturing companies SUPPORTING PRIVATE  Incentives for small- & medium-scale SECTOR INITIATIVES enterprise  Training and R&D Grant  Incentives for high technology companies  Incentives for strategic projects  Incentives for R&D Back 40 Other Incentives
    40. 40. Investment Incentives . . .  Incentives for software development  Pre-packaged incentives SUPPORTING PRIVATE  Incentives for exports SECTOR INITIATIVES  General incentives  Industrial building allowance  Infrastructure allowance  Import duty exemptions for: o raw materials / components and o equipment & machinery 41
    41. 41. Manufacturing Investment in Approved Projects, 2001- 2005 Capital Investment (RM million) Industry Total Number Domestic Foreign Resource-Based 1,948 25,612 (46.2) 23,903 (31.0) 49,516 (37.3) Food Manufacturing 369 3,469 ( 6.3) 2,303 ( 3.0) 5,772 ( 4.4) Beverages and Tobacco 26 142 ( 0.3) 470 ( 0.6) 612 ( 0.5) Wood & Wood Products 193 2,267( 4.1) 943 ( 1.2) 3,210 ( 2.4) Furniture and Fixtures 233 1,363 ( 2.5) 297 ( 0.4) 1,659 ( 1.3) Paper, Printing and Publishing 123 6,418 (11.6) 4,850 ( 6.3) 11,268 ( 8.5) Chemical and Chemical Products 288 5,004 ( 9.0) 3,025 ( 3.9) 8,029( 6.1) Petroleum Products 61 1,787 ( 3.2) 6,289 ( 8.2) 8,076( 6.1) Natural Gas 2 50 ( 0.1) 0 ( 0.0) 50 ( 0.0) Rubber Products 144 1,442( 2.6) 963 ( 1.2) 2,405( 1.8) Plastic Products 358 2,050( 3.7) 1,760 ( 2.3) 3,810( 2.9) Non-Metallic Mineral Products 151 1,620( 2.9) 3,005 ( 3.9) 4,625( 3.5) Non-Resource-Based 2,771 29,303 (52.8) 53,068 (68.8) 82,371(62.1) Textiles and Textile Products 178 1,171 ( 2.1) 947 ( 1.2) 2,117( 1.6) Leather and Leather Products 12 57 ( 0.1) 17 ( 0.0) 74 ( 0.1) Basic Metal Industry 163 9,308(16.8) 5,502( 7.1) 14,810 (11.2) Fabricated Metal Products 487 2,059( 3.7) 2,177 ( 2.8) 4,236 ( 3.2) Machinery Manufacturing 443 1,961 ( 3.5) 1,535 ( 2.0) 3,496 ( 2.6) Electronics and Electrical Products 1,051 8,084(14.6) 35,290 (45.7) 43,374 (32.7) Transport Equipment 353 6,157(11.1) 5,388( 7.0) 11,545 ( 8.7) Scientific and Measuring Equipment 84 506( 0.9) 2,212( 2.9) 2,718 ( 2.0) Others 93 559( 1.0) 181 ( 0.2) 740 ( 0.6) Total 4,812 55,474 77,152 132,626 42
    42. 42. Providing An Integrated Industrial Infrastructure SUPPORTING PRIVATE TYPES SECTOR INITIATIVES  Industrial Zones  Special Commercial Premises  SME Industrial Estates  Technology Parks  Industrial Corridors  Business Premises 43
    43. 43. PUBLIC-PRIVATE PARTNERSHIP e-ENABLE SUPPLY CHAIN MANAGEMENT • RosettaNet Malaysia - launched in 2002 • Joint initiative by Fed agencies (MITI, SMIDEC), State agencies (PDC), Manufacturers Association (FMM), MIMOS MNCs, SMEs & Solution Providers • Enables Malaysian suppliers to link to global E&E supply chain • Reduce inventory costs, time to market & lower transaction costs • No. of companies successfully implemented RosettaNet Standards increased from 33 in 2004 to 327 in Mac 2006 44
    44. 44. ECONOMIC PLANNING UNIT ADDITIONAL SLIDES 45
    45. 45. RosettaNet Malaysia Partners include … Solution Providers : Hewlett-Packard Sales Foreign MNCs : Microsoft Intel Malaysian Companies : Oracle Dell LKT Industrial Penang Network Services Inventec Globetronics Cardos Automation System IBM Public Packages KarenSoft Technology* Infineon BCM Electronics JSP Consulting Fairchild TFS Electronics (Unico) e-Business Ericsson 1st Silicon LK Solutions Kemet Polytool Tech Tradenex.com Seagate Leong Bee Soo Bee B2B Commerce LSI Logic Ire-Tex NDT Software Consulting D’nonce SCS Computer Systems SAP Malaysia* San Yong Enterprise Formfill Australasia Federal Packages Dagang Net Genting Sanyen Logistics Providers: NEC Priority Cargo BGlobal MnEBay GridNode Advanced Professional (India) Associations & Clubs: Rank Alpha FMM Sterling Commerce J.D. Edwards Government: PeopleSoft MIMOS,MITI,SMIDEC,PDC, MECM, EPU Novell Global EXchange
    46. 46. ICT & Multimedia Hub: MSC Milestones Milestones Attain leadership in the 1996 2003 2010 2020 Knowledge Based Phase 1 The MSC: Next Leap Phase 3 Economy Create the MSC Grow MSC into a global Transform Malaysia into a ICT hub knowledge society • 1 Corridor • Web of corridors • • 4,000 MSC Status & 250 MSC • All of Malaysia Bill of Guarantees Global companies. • 50 world-class • 500 world-class companies • 100,000 new jobs & RM69 bil companies revenue & RM2.5 bil exports • Global test-bed for new • Launch 7 flagship • Enhance ICT industry cluster multimedia applications applications • Enhance multimedia • International CyberCourt of • World-leading applications Justice in MSC framework of • Leadership towards cyberlaws harmonized global • Become net ICT framework of cyber laws exporter • Cyberjaya as world- leading intelligent city • Link to world leading • Cybercities/cybercentres intelligent cities linked to global information highway 47
    47. 47. MSC Phase 1 48
    48. 48. MSC Next Leap (2004 – 2010) Rollout MSC Cybercities/Cybercentres…. Kulim Hi- Tech Park Bayan Lepas, Penang 49
    49. 49. Flagship Applications 50
    50. 50. Companies in MSC INSOURCE OUTSOURCE Services delivered internally Partner with external provider • Telekom Malaysia • User: BCB • Petronas • Provider: EPIC-I (EDS) LOCAL Target Shared Services Market Pooling of resources to render common Global services cost- /Offshore effectively, leveraging on economies of scale 51
    51. 51. • Malaysia is ranked 3rd globally for global outsourcing location attractiveness • Well developed, low-cost infrastructure and strong government support • Created 8,000 high-value job opportunities in MSC • SSO MSC created 12,000 jobs by end of 2005 Source: A.T. Kearney’s2004 Offshore Location Attractiveness Index: Making Offshore Decisions 52
    52. 52. Factor Conditions for Growth of MSC & Public-Private Sector Collaboration SUPPORTING PRIVATE  Firm Government commitment SECTOR INITIATIVES  Comprehensive package of incentives  Bill of Guarantees  Infrastructure  Cyberlaws  Incentives  Competitive cost of doing business  Emphasis on human capital development Cont… 53
    53. 53. Cont… Factor Conditions for Growth of MSC & Public-Private Sector Collaboration SUPPORTING PRIVATE SECTOR INITIATIVES  Effective Institutional Mechanisms for Policy Directions, Implementation, Monitoring & Coordination  International Advisory Panel  Implementation Council  Dedicated ‘one-stop’ agency – Multimedia Development Corporation (MDeC) with investor-friendly mindset to facilitate private sector investment 54
    54. 54. Bill of Guarantees • Provide a world-class physical and information infrastructure SUPPORTING PRIVATE SECTOR INITIATIVES • Allow unrestricted employment of local and foreign knowledge workers • Ensure freedom of ownership by exempting companies with MSC Status from local ownership requirements • Give the freedom to source capital globally for MSC infrastructure, and the right to borrow funds globally • Provide competitive financial incentives, including no income tax for up to 10 years or an investment tax allowance, and no duties on import of multimedia equipment 55 Cont…
    55. 55. Cont… Bill of Guarantees • Become a regional leader in intellectual property protection and cyberlaws SUPPORTING PRIVATE SECTOR INITIATIVES • Ensure no Internet censorship • Provide globally competitive telecommunications tariffs • Tender key MSC infrastructure contracts to leading companies willing to use the MSC as their regional hub • Provide an effective one-stop agency – Multimedia Development Corporation 56
    56. 56. PUBLIC-PRIVATE PARTNERSHIP Biotechnology Industry Cluster • Position biotechnology as a new engine of growth & wealth creation • Transform and enhance value creation of the agriculture sector through biotechnology • Capitalise on strengths of biodiversity to commercialise discoveries in health-related products • Ensure growth opportunities in industrial bio-processing and bio-manufacturing • Establish R&D centres of excellence and accelerate technology development via strategic acquisitions • Build human resource capability • Create an enabling financial, legislative and institutional framework • Foster greater public-private sector collaboration through Bio-Nexus network 57
    57. 57. BIOTECHNOLOGY ACTION PLAN PHASE I PHASE II PHASE III Competitiv (2005-2010) (2011-2015) (2016-2020) e& Capacity Science to Global Leading Biotech Building Business Business Industry  HR Development  Develop expertise  Consolidate  Est. Advisory and in drug discovery Strengths and Implementation Councils & devt. Capabilities in  Est. Biotechnology Corp.  New Products Technology  Capacity Building in R&D  Technology  Further Develop  Develop Agricultural, Acquisition Expertise in Drug Healthcare and Industrial  Intensify FDI Discovery and Devt. Biotechnologies & participation  Leading Edge Bioinformatics  Intensify Spin-off Technology Business  Develop Legal and IP Companies  Create greater value Framework  Strengthen Local through Global  Regional Biotechnology and Global Brands Malaysian Companies Hubs  Develop  Re-branding of  Develop BioNexus Capability in BioMalaysia as Global Malaysia as a brand Technology Hub  Promote FDI participation Licensing  Initial job and industry  Job Creation creation
    58. 58. Generating New Sources of Growth Growth Areas Competitive Advantage • Agro-biotechnology • Strong Government support – Higher value added crops • Well established agro and medical research base and foods • One of 12 mega diversity – Natural products countries • Health-Biotechnology • Create niche market – Bio-Generics • Built upon local capability – Diagnostics – Vaccines • Industrial Biotechnology • Demand for green – “Green” Chemistry technology applications – Biocatalysts • Potential/new markets e.g. EU – Biomaterials • Environmental concerns – Bio-Manufacturing 59
    59. 59. Bio-Nexus Network IAB IPN UPM/MARDI Dengkil Agro-bio Healthcare-bio Industry NINPVB Bio-Nexus Enstek, Nilai Industrial-bio Natural Products Vaccines Food Cluster Genome Centre UKM Interactions between institutions & industry Platform Technology 60
    60. 60. Financial Services Cluster Labuan IOFC PUBLIC-PRIVATE PARTNERSHIP • 5,152 offshore companies from 93 countries • LOFSA – a one-stop agency • Promoting Labuan as a unique IOFC with specialization in Islamic financial products & services • Strengthening legislation & guidelines • Enhancing competitiveness to sustain attractiveness • Incentives to attract strong foreign entities with global market linkages 61
    61. 61. Palm Oil Industrial Cluster (POIC) • Lahad Datu POIC - to add value to the oil PUBLIC-PRIVATE PARTNERSHIP palm industry, create jobs & business opportunities • Designated palm oil industrial cluster & logistic hub for east ASEAN • Developed by POIC Sabah Sdn. Bhd. with support from Federal Government • Equipped with adequate physical infrastructure to attract private investment in upstream & downstream industries 62
    62. 62. Halal Hub • Development of halal product industry PUBLIC-PRIVATE PARTNERSHIP cluster to capture the growing share of the world halal market potential • Credibility and worldwide recognition of JAKIM’s halal certification system and logo • Availability of needed resources and strong government support • Establish Halal Industry Corporation • Provision of various incentives as well as programmes for improvement in product quality and standards, training, promotion, branding & market access • International M’sia Halal Showcase (MIHAS) 63
    63. 63. TIGeR’s Supply Chain Model Global Buyers Government 1st Tier Suppliers 2nd Tier Suppliers Service Providers Govt. Agencies Horizontal Integration with other Vertical Integration of local suppliers businesses, services and government into the GSC
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