The document summarizes Malaysia's economic development approach which emphasizes public-private collaboration. It discusses how Malaysia transformed from an agriculture-based to an industrial economy through strategic policies and initiatives like industrial clusters. The Economic Planning Unit plays a key role in facilitating long-term development planning in partnership with the private sector to achieve economic and social goals. Privatization of sectors and public-private partnerships were important approaches in development.

1. Malaysia’s Economic Development with emphasis on Public-Private Collaboration ECONOMIC PLANNING UNIT By Dato’ Abd. Rahman Husin, Deputy Director General (Sectoral), Economic Planning Unit, MALAYSIA May 2006 World Bank PSD Conference

2. BRIEFING OUTLINE Privatization 3 2 Public-Private Sector Collaboration –An Overview Sectoral Perspective - Industrial Clusters 4 Malaysia, EPU & Development Planning 1 Conclusion 5

3. MALAYSIA AND ETHIOPIA

6. ORGANIZATIONAL STRUCTURE OF THE EPU Director General Deputy Director General (Macro Planning Division) Deputy Director General (Sectoral Planning Division) Industry & E. Services Privatization Infrastructure & Utilities Social Services Development Budget Technical Services Agriculture Energy Macroeconomics Distribution Human Resources Regional Economics External Assistance Secretariat to the National Economic Action Council Secretariat to the Foreign Investment Committee General Services Legal Adviser Sections directly under the Director General Environment Knowledge Economy No. of officers : 250 No. of staff : 150 Total : 400

9. Transformation From an Agro-based to an Industrial-based Economy . . . RM billion 0 50 100 150 200 250 53.9 % 31.9 % 8.9 % 46.8 % 24.6 % 16.3 % 26.7 % 37.5 % 12.2 % 43.1 % 17.2 % 21.0 % 58.1% 31.4 % 8.2% (GDP in RM billion at 1987 prices / Percentage to Total in italics) 300 8.7 % 57.6 % 30.8 %

10. Diversification Of Exports . . . (% to Total Exports) Manufactures 11.9 Palm Oil 5.1 Others 9.8 Rubber 33.4 Tin 19.6 Forestry 16.3 Oil & gas 3.9 1970 RM 5,163 million (US$2,065 million) 2005 RM 533,790 million (US$141,588 million) Manufactures 80.5 Palm Oil 3.6 Others 4.2 Rubber 1.1 Tin 0.2 Forestry 1.2 Oil & gas 9.2

11. Real GDP Growth . . . Average 1971- 80 Average 1981- 90 Average 1991- 2000 Average 2001- 05 2000 2001 2002 2003 2004 2005 2006 e 7.5 % 5.8 % 7.1 % 4.5 % 8.5 % 0.3 % 4.4 % 5.4 % 7.1 % 5.3 % 6.0 % ECONOMIC PERFORMANCE

14. DEVELOPMENT PLANNING MACHINERY Cabinet Ministers National Planning Council National Development Planning Committee Inter-Agency Planning Group (IAPG) Federal Ministries & Agencies State Governments Private Sector National Economic Action Council (NEAC), National Economic Consultative Council (NECC) Economic Planning Unit PARLIAMENT Draft Policy Draft Proposal Proposal Proposal Circulars Circulars General framework Consultations Secretariat National Action Council Implementation & Coordination Unit Private Sector Dialogue

17. TOWARDS 2020 ~ THE NEXT PHASE Five Key Thrusts 1. Moving the economy up the value chain 2. Raising the capacity for knowledge and innovation, and nurturing “first class mentality ” 3. Addressing persistent socio-economic inequalities constructively and productively 4. Improving the standard and sustainability of the quality of life 5. Strengthening the country’s institutional & implementation capacity ~ establish a more effective implementing & monitoring mechanism Ninth Malaysia Plan, 2006 – 2010 The National Mission, 2006 – 2020 To achieve the goals & objectives of Vision 2020

20. PRIVATIZATION ECONOMIC PLANNING UNIT

23. SCOPE OF PRIVATIZATION Airports RM10.0 bn / USS2.9 bn Urban Transportation RM12 bn/US$3.2bn Ports RM7.8 bn /US$2.1bn Telecommunications/ multimedia RM6.6 bn /US$1.7bn Power RM42.3 bn / US$11.1bn Roads/highways RM31.6 bn/US$8.3bn Water treatment

27. INDUSTRIAL CLUSTERS – PUBLIC-PRIVATE PARTNERSHIP ECONOMIC PLANNING UNIT

30. CONCLUSION ECONOMIC PLANNING UNIT

34. THANK ECONOMIC PLANNING UNIT YOU www.epu.jpm.my

35. HYPERLINKED SLIDES ECONOMIC PLANNING UNIT

42. Manufacturing Investment in Approved Projects, 2001- 2005 23,903 (31.0) 2,303 ( 3.0) 470 ( 0.6) 943 ( 1.2) 297 ( 0.4) 4,850 ( 6.3) 3,025 ( 3.9) 6,289 ( 8.2) 0 ( 0.0) 963 ( 1.2) 1,760 ( 2.3) 3,005 ( 3.9) 53,068 (68.8) 947 ( 1.2) 17 ( 0.0) 5,502 ( 7.1) 2,177 ( 2.8) 1,535 ( 2.0) 35,290 (45.7) 5,388 ( 7.0) 2,212 ( 2.9) 181 ( 0.2) 25,612 (46.2) 3,469 ( 6.3) 142 ( 0.3) 2,267 ( 4.1) 1,363 ( 2.5) 6,418 (11.6) 5,004 ( 9.0) 1,787 ( 3.2) 50 ( 0.1) 1,442 ( 2.6) 2,050 ( 3.7) 1,620 ( 2.9) 29,303 (52.8) 1,171 ( 2.1) 57 ( 0.1) 9,308 (16.8) 2,059 ( 3.7) 1,961 ( 3.5) 8,084 (14.6) 6,157 (11.1) 506 ( 0.9) 559 ( 1.0) 1,948 369 26 193 233 123 288 61 2 144 358 151 2,771 178 12 163 487 443 1,051 353 84 93 Resource-Based Food Manufacturing Beverages and Tobacco Wood & Wood Products Furniture and Fixtures Paper, Printing and Publishing Chemical and Chemical Products Petroleum Products Natural Gas Rubber Products Plastic Products Non-Metallic Mineral Products Non-Resource-Based Textiles and Textile Products Leather and Leather Products Basic Metal Industry Fabricated Metal Products Machinery Manufacturing Electronics and Electrical Products Transport Equipment Scientific and Measuring Equipment Others 77,152 55,474 4,812 Total Foreign Domestic Number Capital Investment (RM million) Industry 132,626 49,516 (37.3) 5,772 ( 4.4) 612 ( 0.5) 3,210 ( 2.4) 1,659 ( 1.3) 11,268 ( 8.5) 8,029 ( 6.1) 8,076 ( 6.1) 50 ( 0.0) 2,405 ( 1.8) 3,810 ( 2.9) 4,625 ( 3.5) 82,371 (62.1) 2,117 ( 1.6) 74 ( 0.1) 14,810 (11.2) 4,236 ( 3.2) 3,496 ( 2.6) 43,374 (32.7) 11,545 ( 8.7) 2,718 ( 2.0) 740 ( 0.6) Total

45. ADDITIONAL SLIDES ECONOMIC PLANNING UNIT

46. RosettaNet Malaysia Partners include … Solution Providers : Hewlett-Packard Sales Microsoft Oracle Penang Network Services Cardos Automation System KarenSoft Technology* JSP Consulting e-Business LK Solutions Tradenex.com B2B Commerce NDT Software Consulting SCS Computer Systems SAP Malaysia* Formfill Australasia Dagang Net NEC BGlobal MnEBay GridNode Advanced Professional (India) Rank Alpha Sterling Commerce J.D. Edwards PeopleSoft Novell Global EXchange Foreign MNCs : Intel Dell Inventec IBM Infineon Fairchild Ericsson Kemet Seagate LSI Logic Malaysian Companies : LKT Industrial Globetronics Public Packages BCM Electronics TFS Electronics (Unico) 1 st Silicon Polytool Tech Leong Bee Soo Bee Ire-Tex D’nonce San Yong Enterprise Federal Packages Genting Sanyen Associations & Clubs: FMM Government: MIMOS,MITI,SMIDEC, PDC , MECM, EPU Logistics Providers: Priority Cargo

48. MSC Phase 1

49. MSC Next Leap (2004 – 2010) Rollout MSC Cybercities/Cybercentres…. Bayan Lepas, Penang Kulim Hi-Tech Park

50. Flagship Applications

60. Bio-Nexus IPN Dengkil Genome Centre UKM IAB UPM/MARDI Food Cluster Natural Products Vaccines Industrial-bio Agro-bio Bio-Nexus Network Healthcare-bio Interactions between institutions & industry Industry NINPVB Enstek, Nilai Platform Technology

64. TIGeR’s Supply Chain Model Global Buyers 1 st Tier Suppliers 2 nd Tier Suppliers Government Govt. Agencies Service Providers Vertical Integration of local suppliers Horizontal Integration with other businesses, services and government into the GSC