This document discusses strategies for Malaysian state-owned enterprises (SOEs) to enhance national competitiveness. It outlines three stages of economic development - factor-driven, efficiency-driven, and innovation-driven - and the corresponding weights given to basic requirements, efficiency enhancers, and innovation/sophistication factors. The document also discusses Malaysia's New Economic Model, which aims for high-income status, inclusiveness, sustainability, and improved quality of life by 2020 through strategic reform initiatives. Finally, it examines Sime Darby's transformation journey from a local to a global player and lessons learned around focus, branding, talent, and integration.

1. Global Competitive Strategy
SOEs Malaysia
Agus W. Soehadi
Prasetiya Mulya Business School

2. National Competitiveness
Indonesia Malaysia
World Economic Forum, Global Competitiveness Report 2011-2012

3. Stages of Development
Stages 1
Factor-
Driven
Transition
Stage 1 to
Stage 2
Stage 2
Efficiency-
Driven
Transition
Stage 2 to
Stage3
Stage3
Innovaion-
Driven
GDP per Capita (US $)
threshold*
Weight for basic requirements
subindex
Weight for efficiency enhancer
subindex
Weight for innovation and
sophistication factors
subindex
< 2,000 2,000-2,999 3,000-8,999 9,000-17,000 >17,000
60 %
35 %
5 %
40 %
50 %
10 %
20 %
50 %
30 %
40-60 %
35 -50%
5-10 %
20-40 %
50%
10%
Weights and Income Thresholds
for Stages of Development
*For economis with a high dependancy on mineral resources, GDP per capita is not sole criterion for determination
of the stage of development
World Economic Forum, Global Competitiveness Report 2011-2012

4. c
High Income
Inclusiveness Sustainability
Target USDS 15000-20000
Per capita
By 2020
Enables all
communities
to fully benefit from
the wealth of
the country
Meets presence
needs without
compromising
Future
generations
Rakyat
Quality of Life
Goals of the New Economic Model

5. c
High Income
Inclusiveness Sustainability
Rakyat
Quality of Life
Break of logjam
vested interest
through political
will and
leadership
Prepare
Rakyat for
Change
1. Re-engineering the private sector
2. Developing quality workforce
and reducing dependency on
foreign labor
3. Creating a competitive domestic
economy
4. Strengthening the public sector
5. Transparent and market friendly
affirmative action
6. Building the knowledge base
infrastructure
Enabling Actions Strategic Reform Initiatives Outcomes
Coherent “big push” to boost transformation and growth
The New Economic Model:
Enablers and Strategic Reform Initiatives
NEAC 2010
7. Enhancing the source of growth
8. Ensuring the sustainability of
growth

6. NEAC 2010
Growth Can Be Consistent with Distribution

7. NEAC 2010
Government-Owned Companies

8. Top 10 Biggest Companies on Bursa
as at 29 January 2012
NEAC 2010

10. Business
Operators
Local
Player
Regional
Player
International
Player
Global
Player
• Purely local
foodprint
• No brand
strength
• Unclear
strategic
direction
• Insufficient
capable and
experience
talents
• Strong local
presence
• Local top
talent
• Locally
recognized
brand strength
• Have internal
research
• Regionally
integrated
value chain
• Regionally
competitive
talent
• Regionally
recognized
brand strength
• Structured
organization
around sector
and geography
focused
• Operations
capable of
challenging
local
incumbents
• International
team
• Globallly
recognized
brand strength
• Purely run SOEs
• on a commercial
basis
• World class
operations
capable of
challenging
incumbents
globally
• Best-in-class
global team
• Top brand
Sime Darby Bhd Transformation Journey
Hay Group 2013

11. Sime Darby Mission

12. Sime Darby – 5 Years Strategic Thrusts

13. Plantation Upstream–Mission & Strategic Thrusts

14. Plantation Downstream–Mission & Strategic Thrusts

15. Property–Mission & Strategic Thrusts

16. Motors–Mission & Strategic Thrusts

17. Healthcare–Mission & Strategic Thrusts

18. Lesson Learned
• A Renewed Focus on Core Competence
• National interest guides GLCs policy and SOEs strategy
• Building Strong Brand Name and Extensive Distribution Channel
• Develop and Capitalize Business Networking and Technological
Capabilities
• Nurturing, attracting and retaining the best and brightest talents
• Aiming for continuous growth in synergistic, related business
through horizontal and vertical integration