Old: 1. Growth primarily through capital accumulation . Focus on investment in production and physical infrastructure in combination with low skilled labour for low value added exports. New: 1. Growth through productivity . Focus on innovative processes and cutting-edge technology, supported by healthy level of private investment and talent, for high value added goods and services. Old: 2. Dominant state participation in the economy . Large direct public investment (including through GLCs) in selected economic sectors. New: 2. Private sector-led growth . Promote competition across and within sectors to revive private investment. Old: 3. Centralised strategic planning . Guidance and approval from the federal authorities for economic decisions. New: 3. Localised autonomy in decisionmaking . Empower state and local authorities to develop and support growth initiatives, and encourage competition between localities. Old: 4. Balanced regional growth . Disperse economic activities across states to spread benefits from development. New: 4. Cluster- and corridor-based economic activities . Concentration of economic activities for economies of scale and better provision of supporting services. Old: 5. Favour specific industries and firms . Grant preferential treatment in the form of incentives and financing to selected entities. New: 5. Favour technologically capable industries and firms . Grant incentives to support innovation and risk-taking to enable entrepreneurs to develop higher value added products and services. Old: 6. Export dependence on G-3 (US, Europe and Japan) markets . Part of production chain to supply consumer goods and components to traditional markets. New: 6. Asian and Middle East orientation . Develop and integrated actively into regional production and financial networks to leverage on flows of investment, trade and ideas. Old: 7. Restrictions on foreign skilled workers . Fear that foreign talent would displace local workers. New: 7. Retain and attract skilled professionals . Embrace talent, both local and foreign, needed to spur an innovative, high value added economy.
NKEAs is a component of Economic Transformation Programme (ETP) ETP will be a combination of NKEAs and SRIs. NKEAs will be charged of, as the drivers towards the realisation of high-income status by 2020.
M'SIA PRESENTATION 2012
• Introduction• 1Malaysia• Government Transformation Programme (GTP)• Economic Transformation Programme (ETP)• Trade Performance• Trade & Investment Opportunities• Malaysia and Asean 2
NCER : NORTHERN CORRIDOR ECONOMIC REGION Focus on: • Modern Agriculture SDC : SABAH DEVELOPMENT CORRIDOR • Manufacturing & Design • Tourism Focus on: • Logistics • Agro-based Industry • Education & Health • Tourism • Logistics • Manufacturing ECER : EAST COAST ECONOMIC REGION Focus on: • Tourism • Oil & Gas • Manufacturing • Agriculture • Education SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY Focus on: • Resource Based Industry • Energy • Tourism IRDA : ISKANDAR MALAYSIATo be a hub for the services sector:• Creative Industry • Financial Services• Education • Tourism and Logistic Industry• Healthcare • Electrical & Electronics Services
Why Malaysia ?• Political & Economic Stability• Strong Forex Reserves (US$100 b)• Pro-business Government• Liberal Investment Policies• Transparent Policies• Policy of Welcome• Well Developed Infrastructure• Harmonious Industrial Relations• Trainable & Educated Labour Force• Quality of Life• Good Track Record
The ASEAN region is now being viewed as a single market production base – attractive investment destination – 600 million population, US$1.8 trillion combined GDP, US$2.1 trillion global trade, 7.4% GDP growth (2010)- 2010: Intra-ASEAN trade was US$ 519 billion (25.4% of total global ASEAN trade)- Outside of ASEAN, its top trading partners are China, EU, Japan, Korea and the USA.
Strategic location: Malaysia is a gateway to other markets withpreferential access through Free Trade Agreements (FTAs) ASEAN REGIONAL / BILATERAL FTAS China Japan Korea India Australia New Zealand Chile Potential market of 2.7 billion Tariff reduction and elimination mostly by 2016 ON-GOING FTA NEGOTIATIONS TPP EU Turkey Potential market of 1.08 billion
Embajada de Malasia en MATRADE SantiagoLima, Peru (covering Peru)E : Oficina Comercial de MalasiaT :+ Embajada de Malasia en SantiagoF :+ Avda Tajamar, Oficina 302 Las Condes, Santiago, Chile W : www.matrade.gov.my E : email@example.com T : +56-22-234 2647 F : +56-22-234 2652 Trade Commissioner: Ms Ezzwanee Ahmad 45