The document summarizes Malaysia's New Economic Model (NEM) framework, which was introduced in 2010 to transform Malaysia's economy from being dependent on agriculture and commodities to a knowledge-based, high-income economy as outlined in Vision 2020. The NEM has four pillars including the Economic Transformation Programme focused on 12 national key economic areas. It aims to double per capita income by 2020 and create an inclusive, sustainable economy led by the private sector and supported by public sector infrastructure and policies.

2.  Malaysia has progressed from an economy
dependent on agriculture and primary
commodities to a manufacturing-
based, export-driven economy. To move the
country forward, the Government has
crafted a framework comprising four pillars
to drive the change.

3. (Source: http://www.mida.com.my , 2012)

4.  The New Economic Model (NEM) to be
achieved through an Economic
Transformation Programme
(ETP) constitutes a key pillar which will
propel Malaysia to being an advanced nation
with inclusiveness and sustainability in line
with goals set forth in Vision 2020

5. 1. Oil, Gas and Energy
2. Palm oil and Rubber
3. Business Services
4. Tourism
5. Financial Services
6. Education
7. Wholesale and Retail
8. Electrics and Electronic
9. Agriculture
10. Healthcare
11. Communication content and Infrastructure
12. Greater Klang Valley and Kuala Lumpur

6.  New Economic Model (NEM) was introduced
by Sixth’s Malaysian Prime Minister Dato’ Seri
Najib Tun Razak
 It was introduced on 30 March 2010
 Consist of 2 Part:
1st Part – start 30 March 2010
2nd part – announced after 10th Malaysia
Plan

7.  1st phase of NEM: Part 1 - Strategic Policy
Direction
 2nd phase of NEM: Concluding Part - Strategic
Policy Measures

8. (Source: : NEAC , Part 1 New Economic Model-
Strategic Policy Directions , 2010, page 15)

9. (Source: NEAC , Part 1 New Economic Model-
Strategic Policy Directions , 2010)

10.  Transform the Malaysian economy to become
one with high incomes and quality growth by
2020
 The goal of the NEM is for Malaysia to be a
developed and competitive economy
 People enjoy a high quality of life and a high
level of income resulting from growth that is
both inclusive and sustainable

11.  The Malaysian economy will be market
leader, well-governed, regionally
integrated, entrepreneurial and innovative
 Private sector – the main driver of economic
growth (innovation and creativity)
 Public sector – the public goods provider
(regulatory framework)

12. SRI 1: Re-energising the private sector to
drive growth
SRI 2: Developing a quality workforce and
reducing dependency on foreign labour
SRI 3: Creating a competitive domestic
economy
SRI 4: Strengthening the public sector

13. SRI 5: Transparent and market-friendly
affirmative action
SRI 6: Building the knowledge base and
infrastructure
SRI 7: Enhancing the sources of growth
SRI 8: Ensuring sustainability of growth

14. (Source: National Economic Advisory Council (NEAC), 2010)

15.  On 2010, Malaysia per capita income was
US$7000 approximately RM23,100- The target
is to doubled it in 10 years.
 The gap between rich and poor is widening-
64% between rich and middle income.
 Malaysia caught in the middle of income
trap- Middle income countries cannot
compete in all fields again all
corners(NEAC,2010)

16. (Source: National Economic Advisory Council (NEAC), 2010)

17. (Source: Nationmaster, UN, World Bank)