ETP 2nd year

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ETP 2nd year

  1. 1. ETP: 2nd year in action27th November 2012
  2. 2. 2 years have passed: Rigorous execution and monitoring, Progress updates, Problem Solving Meetings TODAY30 March 2010:NEM wasannounced byYAB PM 25 October 2010: ETP Roadmap launched
  3. 3. Items we will go through today…… 1 Quick recap of the ETP 2 Updates on NKEAs & SRIs 3 How our economy has performed 4 Challenges we have faced
  4. 4. World Bank classifies nation economies into 4 categories. 69 out of 212 countries (33%) are classified as high income 1 2 3 4 Low Income Lower Middle Upper Middle High Income Income Income GNI per capita : GNI per capita : GNI per capita : GNI per capita : USD 1,025 or less USD 1,026 – USD USD 4,036 – USD USD 12,476 or more 4,035 12,475 36 countries 52 countries 54 countries 69 countriesAverage GDPgrowth (Asian) 6.9% 5.4% 5.2%* 3.9% Examples : Examples : Examples : Examples : • Mali • Indonesia • Malaysia • Singapore • Bangladesh • India • China • USA • Cambodia • Sri Lanka • Brazil • Switzerland • Nepal • Vietnam • Turkey • Japan • Tanzania • Ghana • Mexico • Israel 4 *Without China
  5. 5. Malaysia’s target ofbecoming ahigh income USD 15,000nation by 2020USD 6,700 2009 GNI 2020 GNI Target Nominal GNI (USD)
  6. 6. Recap of how GNI target was derived US$15,0001 Took World Bank’s current in 2020 threshold for high income economy US$12,476 World Bank’s published2 historical global inflation figure 2%
  7. 7. There are many components that will contribute tothe growth of our economy Nominal GNI RM billions RM 1,733 bil RM 376 bil RM 359 bil RM 337 bil RM 661 bil 2009 GNI 1 Entry Point 2 Business 3 Growth in 2020 GNI Projects Opportunities other Target (EPPs) (BOs) sectors 11 Sector NKEAs Source: NKEA Labs
  8. 8. To Become A High-Income Nation,We Need: COMPETITIVENESS & FOCUS We Need “Enablers” We need “Drivers” to To Ensure ensure focus on Competitiveness high-impact areas SRIs SRIs NKEAs 51 Strategic Reform Initiatives 12 National Key Economic Areas
  9. 9. Two years of ETP = Vertical Take-Off 151% 101% 109% 138% (73%) (92%) (86%) (86%) Greater Financial Oil, Gas & Business KL/Klang Services Energy Services Valley 118% 11 Economic Wholesale 141% Tourism Sectors & Retail (96%) + 123% (142%) 120% Education Greater (94%) Electrical & 108% Electronics (91%) Kuala Lumpur (81%) Comms 2011 FY % Achievement Palm Oil Healthcare Agriculture Content & (2012 YTD% Achievement) & Rubber Infra NKEA 119% 170% 98% 103%Note: (110%) (83%) (76%)YTD Oct 2012 % in brackets (106%)
  10. 10. 1 Quick recap of the ETP2 Updates on NKEAs & SRIs3 How our economy has performed4 Challenges we have faced
  11. 11. SRI: Competition, Standards & Liberalisation Competition Act Remove Anti-Competitive Agreements X Enforced on 1 January 2012 Remove Abuse Of A Dominant Position
  12. 12. SRI: Competition, Standards & Liberalisation Malaysia Has 6,260 Standards But Less Than 10% Are Enforced 6,260 3,759 But 328 Malaysian Standards 60% Are Aligned With 5.3% Have Been Made Have Been Developed International Standards Mandatory MS developed in 2012 as of 30 October 2012 is 347 MS No. of MS made mandatory in 2012: 8 MS
  13. 13. SRI: Competition, Standards & Liberalisation 17 sub-sectors announced in Liberalisation Budget 2012 for liberalisation 15 sectors fully liberalised: Of Sub-Sectors Accounting/Taxation; Courier; Dental Specialist; Departmental & Specialty Stores; Incineration; Int’l Up to 100% Schools; Legal; Medical Specialist; Private Hospital; Private Universities; Skills foreign equity Training; Telco ASP; Telco NFP & NSP; Technical & Vocational participation Schools; Technical & Vocational Schools (for special needs will be allowed students);
  14. 14. SRI: Public Service DeliveryApproval ofConstruction 22Permits now stepswithin 100 days(previously 260 days) 10 steps
  15. 15. SRI: Public Service Delivery Option 1: Counter Rating Real Time Performance Monitoring 92 Police Stations Option 2: in Selangor, Will be extended Send SMS to Nationwide 15888
  16. 16. SRI: Public Service Delivery Results: Real Time Performance Monitoring Total ratings: 102,919 88.4% 11.4% (January – Oct 2012) Very Satisfied 0.1% 0.1% Satisfied Very Unsatisfied Unsatisfied
  17. 17. SRI: Public Service Delivery Effective April 2012, rating services also available at the places below: Selangor Dewan Immigration Bandaraya Centres Kuala Lumpur National Perbadanan Registration Putrajaya Department SMS Rating Available
  18. 18. Human Capital Development Minimum Wage HR Management in SMEs Project Flip - O&G NOSS • PM announced minimum • 4,567 SMEs benefited from free • Leverage PETRONAS Skills Training wage of RM900/RM800 on tailored HR solutions via (POSS) to develop National Skills 30 Apr 2012 interactive HR portal Training (NOSS) in 7 disciplines • 6 months to implement • 7,301 SMEs benefited from HR • Enable technical-vocational training post-gazette, 12 months for Capability Building Programme centres to deliver up-to-date, industry micro-enterprises relevant skills training Upskilling/Reskilling - NTEP Employment Act 1955 Up-skilling / Re-skilling – MyProcert (Phase 1 & 2) • Phase 1 of Employment Act • MyProcert programme launched on 11 Oct• The National Talent Enhancement 2011 for BSvc & CCI Programme (NTEP) was launched 1955 passed in Parliament includes 28 amendments to the • 11 partners to date including SAP, Huawei, covering 5 states/regions and 650 Oracle, iTrain, Scicom, SnT, National placements across Malaysia for E&E current provisions, 17 new provisions and 2 provisions Instrument, Autodesk & BSvc (Green Tech) • 1,250 professionals targeted, 946 enrolled• 347 trainees in companies repealed • Phase 2 in progress • Catalytic to up-skill Malaysians to global• Accelerate development of skilled certification standards workforce through partnership via • Bill on raising minimum industry attachment programmes retirement age to 60 passed on 28 June
  19. 19. NKEA Milestones
  20. 20. NKEA: Greater KLMRT Making Good Progress Work Package Tender Status Awarded In Progress To Be Called 24 53 (RM22.31b) 8
  21. 21. NKEA: Oil, Gas & EnergyPengerang Integrated PetroleumComplex (PIPC) Goes Beyond RAPIDILLUSTRATIVE Total Potential  RM170+ billion of investment PETRONAS RAPID Potential Investor B  22,000 acres of industrial area  RM60 billion  RM30 billion  6,500 acres  4,000 acres  Refinery  Refinery  Petrochemicals  Petrochemicals  2016 commissioning Light Industry Heavy Industry Heavy Industry 6,500 ac 4,000 ac RAPID 2,000 ac 500 ac 2020 GNI and Job creation from Oil DIALOG-VOPAK Potential Investor A & Gas investment in Pengerang  RM9 billion  RM24 billion  500 acres reclaimed land  2,000 acres 2020 GNI Total job  Petroleum Terminal  Refinery impact: creation  LNG Regasification Plant  Petrochemicals RM17.7  2014 Phase 1 commissioning (future phase) Billion 8,500
  22. 22. NKEA: Palm Oil & RubberBio Gas for a Green EconomyCapturing methane gas to generate electricity for a greener economy.This energy generated can be sold to the national grid or used by mills internally. Biogas Development at Mills YTD 2012 Examples Of Completed Biogas Plants Mills 57 Completed Under 15 Construction 149 Planning Stages
  23. 23. NKEA: Palm Oil & Rubber Expediting growth in food and health based segment – Tocotrienols and carotenes 10 R&D grants approved for clinical trials on palm phytonutrients RM29.2mil Worth *FY2011 + YTD2012 2 Worth Business proposals approved to- date on tocotrienol and carotenes production RM24.3mil *FY2011 + YTD2012• Tocotrienols has been known to reduce cholesterol, lower blood pressure, reverse arterial blockage, protect against heart injury, anti-cancer, suppress tumors and many others.• Carotenes are natural antioxidants and are known for their pro Vitamin A properties.
  24. 24. NKEA: Financial ServicesSukuk – Malaysia is still ahead! 70% of total global sukuk issuance are from Malaysia! (Total Middle East: approximately 25%)
  25. 25. NKEA: Financial Services2 of 4 largest global IPOs in 2012listed in Malaysia IPO (USD Billion) 1 Facebook 16.0 2 Japan Airlines 8.5 3 Felda Global Ventures 3.3 IHH Healthcare 2.0 4 Source: News reports, ECM Analytics
  26. 26. NKEA: Electrical & ElectronicsE&E is moving into higher value R&D activitiesall along the value chain Research and Assembly Manufacturing Development Higher quality of jobs and higher GNI contribution for Malaysia! These will enable the E&E industry to achieve RM90 billion in GNI by 2020 and contribute an additional 157,000 jobs
  27. 27. NKEA: Electrical & ElectronicsMore manufacturing and R&D activities Manufacturing EPP Assembly R&D Activities Remarks Activities Infineon opened a new plant in Kulim. Silterra and MIMOS1 Wafer fab actively involved in R&D Infineon and On-Semiconductors are expanding their R&D2 Advanced packaging activities 5 companies are expanding operations and 3 new companies3 IC Design are setting up Penchem is heavily involved in R&D of advanced polymers.4 Substrates Ibiden is expanding their facility with Phase 25 Solar silicon producers Tokuyama is involved in manufacturing polysilicon substrates Solar cell & wafer TS Solartech and Panasonic involved in manufacturing and6 producers R&D of solar cells and wafers HBE Gratings, Panasonic and Solartif involved in7 Solar module producers manufacturing and R&D activities LED front-end8 Osram is expanding their LED wafer fabrication plant operations9 Packaging & equipment Philips Lumileds expanded R&D and manufacturing facilities 6 local companies participating in a programme with SME10 Local SSL champions Corp to penetrate regional / global market Agilent launched vendor development programmes with 311 Test & measurement local companies to develop local capabilities Wireless Smartag implemented an RFID tagging system with Royal12 communications Customs 9 companies have obtained approvals to expand / diversify13 Automation equipment their operations via automation Transmission &14 Tenaga Switchgear is setting up a high power testing lab distribution Electrical home Pensonic is setting up a manufacturing hub and expanding15 appliances their international distribution network
  28. 28. NKEA: Wholesale & RetailImproving the Livelihood of more than1000 Sundry Shop Owners - TUKAR 1,077 shops transformed ~30% average revenue growth since 2011 within several months (519 in 2011 + 558 YTD in 2012) post transformation of stores!Before After
  29. 29. Items we will go through today…… 1 Quick recap of the ETP 2 Updates on NKEAs & SRIs 3 How our economy has performed 4 Challenges we have faced
  30. 30. Steady Growth! Real GDP Growth % (YoY) Country Q3 yoy 7.2 APAC consensus for 3.8 Malaysia (in Jan 2012) 5.1 5.3 Thailand 3.0% Singapore 1.3% South Korea 1.6% Taiwan 1.0% Hong Kong 1.3% 2009 2010 2011 9M 2012 -1.6 Real GDP Growth % (YoY)Source: Department of Statistics
  31. 31. Encouraging total investment growth until September 2012 RM127.9b RM100.0b RM112.2b 9M 2011 RM89.5b 9M 2012 RM66.1b Target 2012 RM52.7b 25.5% 25.4% Public Investment Private InvestmentNote: Based on current prices
  32. 32. Private Outpacing Public Investment 120 Investment Growth 56.1% 100 57.0% 62.9% 22.5% 9M 2012 80 51.7% 43.9% 43.0% 60 48.3% 37.1% 40 20 12.2% FY 2011 Average 6.7% 0 2000-2010 2009 2010 2011 9M 2012 2012F Public (RM b) Private (RM b)Source: Department of Statistics, at constant prices
  33. 33. Gradual Reduction in Fiscal Deficit… 6.6% 5.6% 4.8% 4.5% 4% 3% 0% / Neutral 2009 2010 2011 2012* 2013 2015** 2020 target target target As percentage of GDP (rebased figures) * forecast **2015 Target as per 10th Malaysia Plan
  34. 34. Malaysia is moving closer to the “Safe Zone” Public debt (% of GDP), 2009* 200 Japan Sovereign crisis levels 150 Malaysia 2011 Malaysia Greece 2010 Target for Singapore Malaysia 2012 100 Safe zone United Kingdom India 50 USA Hong Kong Spain Malaysia Thailand 2009 Indonesia -15 -14 -13 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1Notes: Surplus / deficit (% of GDP), 2009*1. Malaysia’s figures are for 2009, 2010, 20112. Position of other countries in 2010 and 2011 will move, but not shown in the chart aboveSource: EPU, MOF, BCG analysis, Economist Intelligence Unit
  35. 35. Market capitalization is up at RM1.46 trillionBursa Malaysia hit historical high on 1 Nov 2012 FTSE Bursa Malaysia KLCI 1 Nov 2012: Market Capitalisation 1,675.69pts RM 1.46 trillion 1st November 2012 30% RM340 billion RM 1.12 trillion Aug 2010
  36. 36. What Do The External Validators Say About Our Economy?
  37. 37. Consumers Remain Optimistic 120 115 110 110 110 107 107 105 105 103 101 101 101 98 99 100 96 95 95 90 87 85 81 80 75 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12Source: Nielsen Consumer Confidence Index
  38. 38. FDI Confidence Rising .Source: AT Kearney Foreign Direct Investment Confidence Index®, 2012
  39. 39. World Bank Doing Business Report Getting credit: #1 (unchanged) World Bank Protecting investors: #4 (unchanged) Doing Business 2013 Getting electricity: #28 from #59 #12 Registering property: #33 from #59 Paying taxes: #15 from #41 #18 Trading across borders: #11 from #29 Dealing with construction permits: #95 #23 #23 from #113 2010 2011 2012 2013 (n=183) (n=183) (n=183) (n=183) Ahead of Sweden, Taiwan, Germany, Japan & Switzerland
  40. 40. IMD World Competitiveness Yearbook Institute for Management Development World Competitiveness Yearbook 2012 #14 out of 59 countries globally #4 amongst 13 Asia Pacific countries #10 #5 of 29 economies with more than 20 million population #14 #2 after Taiwan among 29 economies with GDP per capita less than US$20,000 #18 #16 Ahead of Australia, UK, South Korea, Japan & France 2010 2010 2011 2012 (n=57) (n=58) (n=59) (n=59)
  41. 41. WEF Global Competitiveness Report World Economic ForumGlobal Competitiveness Report 2012 #25 out of 144 countries globally #8 amongst Asia Pacific countries #21 #2 in ASEAN #24 Upgraded to transition stage between efficiency-driven towards #25 innovation-driven #26 Ahead of Israel, Ireland & China 2009 2010 2011 2012 (n=133) (n=139) (n=142) (n=144)
  42. 42. CNN Worlds 10 Best Shopping Cities #4 ranked in the World by CNN #2 amongst Asia Pacific after Japan 3 of the worlds 10 largest malls are in Kuala Lumpur Scored a maximum 10 on Value (Bargain opportunities, such as sale seasons and average prices) Ahead of Paris & Hong Kong Our initiatives in Tourism andKL ranked #2 in Asia Pacific by the Greater KL are working!Globe Shopper Index due to a largenumber and variety of shops
  43. 43. ETP Progress since October 2010 2011 2012 Total 110 Projects 39 Projects 149 ProjectsInvestment: RM179.2 bGNI in 2020: RM129.5 b Jobs: 313,741 + Investment: RM32.8 b GNI in 2020: RM8.1 b Jobs: 97,151 = Investment: RM212.0 b GNI in 2020: RM137.6 b Jobs: 410,892
  44. 44. 2012 Results Benchmarked Against Targets Target = Target = RM884 billion RM127.9 billion 100% RM436 bil RM112.2 bil (49%) (88%) (Q2) (Q3)Source: Department of Statistics, GNI Private (nominal figure) Ministry of Finance Investment 2011 GNI per capita: $9,500 2011 GDP Growth: 5.1% Note: 2009 GNI per capita: $6,700 Figures are before rebasing by BNM/MoF (2011 GNI after rebasing: $9,700)
  45. 45. Countries from all around the worldrequested to learn our methodology 14 Countries, 52 participants BFR Seminar 21 – 24 November 2011 Tanzania Russia Brunei Upcoming4 – 5 August 2012 9 August 2012 4 Sept 2012 proposed visits Sierra Leone Egypt 45
  46. 46. Case studies on ETP & GTP inIvy League Universities Title: Economic Transformation: Title: TYING PERFORMANCE All About Focus, Competitiveness, and MANAGEMENT TO SERVICE DELIVERY: Execution PUBLIC SECTOR REFORM IN Published: November 2012 MALAYSIA, 2009 – 2011 Author: Prof Diego Comin/Ku Kok Peng Published: July 2011 Author: Deepa Iyer For download:Not available for distribution or download http://www.princeton.edu/successfulsocieties/content/focusa reas/CS/policynotes/view.xml?id=160 46
  47. 47. Items we will go through today…… 1 Quick recap of the ETP 2 Updates on NKEAs & SRIs 3 How our economy has performed 4 Challenges we have faced
  48. 48. The ETP Scorecard KPIs The Traffic Light Approach <50%, Underperformed Achieved 50% or more 100% or Exceeded Targets48
  49. 49. NKEA Education – Educity @ IskandarWhat happened?• Target student enrolment not met due to immigration issues and scholarship dependencies (115 Actual 2011 Versus 1,600 FY Target)Actions Initiated:• Collaboration between relevant agencies eg. IRDA, MOHE, PEMANDU, Immigration,e tc• A paper was tabled to Cabinet to assist Marlborough College Malaysia to resolve issues related to work visas for foreign teachers and enhance ease of daily commute across the Singapore-Malaysia border• JPA and MARA scholarship students for Newcastle University Medicine (NUMed)And Now:• Marborough College Malaysia exceeded target student intake in 2012 (350 students)• Education Malaysia Global Services (EMGS) set-up as a one-stop-centre for processing of student visas as well as to promote Malaysia as an education destination for international students For further information, please refer to page #167 of the ETP Annual Report 2011
  50. 50. NKEA Palm Oil & Rubber – Accelerating Replanting and New PlantingWhat happened?• FY2011 target plant area was 126,500 ha but achieved 103,000 ha (approx 1.5 times Singapore)Actions Initiated:• On-going monitoring, tracking and boost replanting and new planting efforts with grant from Federal Government for the period 2011-2013And now:• Growth on track despite highest average CPO price in past 3 years• Current hectares planted (YTD 0ct 12) is 96,396 ha versus FY2012 target of 130,000 ha For further information, please refer to page #89 of the ETP Annual Report 2011
  51. 51. Other ChallengesWe’ve also announced several other projects that have received somemedia attention. Here, we will share you the updates of these projects.
  52. 52. This initiative is a part of EPP5 (Eco-Nature Integrated Resort Development) under the Tourism NKEA KarambunaiWhat happened?• Delay of a year in the implementation of the first phase due to the many appeals against the Housing Developers Act requirements• Knock on delays in the re-approval of development permits due to business plan changes• Construction set backsWe are:• Ensuring that both federal and state government bodies provide full support in facilitating the progress of the project• Awaiting Project Owners to review the development plans for the Golf Waterfront.And now:• RM4.9 Million Restaurant – operational Oct 2012• Beachfront Resort Residences - approved for development March 2012• Master Land Use Plan – approved July 2012 52
  53. 53. This initiative is a part of EPP6 (Deepening E-Government) under the Communications Content & Infrastructure NKEA TriCubes What happened? • Low adoption rates for My Email We are: • Working to educate the public on an authenticated, secure email service and other advantages of e-services And now: • Company has invested more than RM5mil in 2011, created 20 jobs, growing user base of more than 22,000 active users. • New eServices: JPJs Driving License, Road Tax Reminders, and eBilling • PDRM to pilot MySOS mobile application in IPK KL 53
  54. 54. This initiative is a part of EPP1 (Mature Technology Fabrication) under the Electrical and Electronics NKEA LFoundryWhat happened?LFoundrys was planning to relocate its European operations to Malaysia. Severalmonths after its commitment to construct five wafer fabs including the pilot facility,the parent company filed for bankruptcy. When it was clear that there were noplayers to forward the project in its original form, we removed the committedinvestment from the total sum of committed investment in 2011.We have:• Organically growing our existing capabilities and infrastructure throughout the countryAnd now:• Seven existing FABs throughout Malaysia producing 78k wafers per month• Establishment of The Semiconductor Fabrication Association of Malaysia to enable FABs to collaborate, optimize resources and knowledge sharing to increase overall production.
  55. 55. Our nation is headingtowards the right direction
  56. 56. The ETP is an Evolving Document In the past 2 years, Today, we have 152ETP started out with some EPPs have been 131 EPPs in 2010 dropped, and some EPPs with 149 projects new ones were added. announced to date.EPPs : Entry Point Projects
  57. 57. We are on track to achieve GNI target for 2020 $15,000 17% $15,000 $9,500 $8,100 21% $8,200 $7,455 $6,700 2009 2010 2011 2018 2020Source: Department of StatisticsProjections: PEMANDU team Analysis
  58. 58. We also need to encourage more Malaysianbusinesses to invest overseas! • Worlds second-largest hospital group by market capitalisation; • Hospitals present in Net Factor many countries Income including China, India, From Hong Kong, Turkey, Abroad Vietnam and Brunei - RM 44.6 b GNI • Consortium consists of SP Setia, Sime Darby, EPF • Gross Development Value of RM50 billion (£8 bil) RM 664.7b CONSUMPTION RM446.9b (63%) GDP INVESTMENT RM166.5b (23%) RM 709.3b TRADE RM92.6b (13%) INVENTORY RM3.2b (1%) Source : Bank Negara 2011 Figures (rebased)
  59. 59. 10 point evidence of success: Currently there are 152 EPPs with 149 projects already1 ETP is catalytic to the announced with total committed investment of RM212 Malaysian economy billion, RM137 bil GNI in 2020, creating 410,892 jobs2 Healthy GNI increase From only US$6,700 in 2009 to US$9,700 in 2011 (45%) 7.2% in 2010, 5.1% in 2011, 5.3% up until Q3 2012. By3 Strong GDP growth during comparison for Q3 year on year; Singapore is 1.3%, global economic slowdown Thailand 3.0%, South Korea 1.6%, Taiwan 1.0%, Hong Kong 1.3%4 Record GDP/GNI ensured Ensured Govt achieve highest revenue in history (RM185 record Govt revenue bil in 2011)5 Record private investment RM111.8 bil private investment , RM36.6 bil FDI, 2012 on 10-year high track to achieve better results Continued…..
  60. 60. 10 point evidence of success:6 Healthy domestic 7.3% growth in 2011 and 8.5% growth in 2012 consumption growth FTSE Bursa Malaysia KLCI market capitalisation scaled a7 Record stock market new historic high on 1 November of 1,675.69 points performance (RM1.12 trillion market cap) 6.6% in 2009, 4.8% in 2011, while Govt strive to8 Reducing fiscal deficit constantly reduce the deficit further World Bank’s Ease of Doing Business ranking (18 to 12);9 Recognition from external AT Kearny FDI Confidence Index (21 to 10), IMD World parties Competitive Ranking (16 to 14)10 NKEA KPIs met/surpass 123% achievement in 2011, currently stands at 94% targets (2012 YTD)
  61. 61. We’ve made alot of progresstogether.Let’s keepthe momentum!
  62. 62. THANK YOU• www.etp.pemandu.gov.my• www.businesscircle.com.my• www.kopitiamekonomi.com• www.facebook.com/etpmalaysia• @etp_roadmap• http://etp.pemandu.gov.my/form_how_to_participate.aspx

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