Malaysia Economic Transformation Programme (ETP) Open Day : Key Note Address by Idris Jala

8/8/2019 Malaysia Economic Transformation Programme (ETP) Open Day : Key Note Address by Idris Jala

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YB Senator Dato Sri Idris JalaCEO of PEMANDU

Minister in Prime Ministers Department

Economic Transformation

ProgrammeOpen DayKey Note Address


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PM introduced

4 strategic thruststo transform ustowardsVision 2020


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People First

Performance Nowwas a first step

to unite our people


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We establishedthe GTP based onwhat the rakyatwants

Merdeka

Centre Polls

PublicPerception

Survey

CabinetPolls

MediaAnalysis


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The GTP isalready deliveringresults in8 months ....


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15% dropin overall

Index Crime


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39% drop instreet crime


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2.4 millionincrease in

LRT ridership


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54,569 children

are benefiting from1,358 pre school

classesand 9,816 schools

have been ranked


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Out of 44,643 households,

46% reduction(23,679) of

hardcorepoor


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3712 government

contractshave been

published on line

myprocurement.treasury.gov.my


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520 arrests &

192 people convictedof corruption

have beenpublished

in MACCwebsitewww.sprm.gov.my


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Now lets look atour economy ..


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Malaysia is one of only13 countries in the worldto have sustainedgrowthof over

7% for 25 yearsor more since 1945


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Recent global events hadbrought us down..

-10

-5

0

5

10

15

1990 2000 2010

G D P G r o w

t h , 1

9 9 0 - 2 0

1 0 ( % )

1997-1998 AsianFinancial Crisis

Dot-ComBust, 9/11

2008-2009 GlobalFinancial Crisis

Source: Department of Statistics Malaysia, Ministry of Finance

8-9%

4-5%


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We need to do both ..

reducecosts

increaserevenue


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17

We are showing

strong signs ofrecovery and growth ..


18/9418 th

10 th

Source : IMD

Despite a slight dropin the WEF ranking,IMD Competitive Indexranking has improved

significantly..


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OurGDP growthfor first half2010 was..

9.5 %


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We alsoreduced ourBudget 2010

by..

RM

25billion


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We started

to rationalizeour subsidy

whilst protectingthe poor

RM

760 millionsavings


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22

Our ringgit is

strongest in thelast 13 years


23/94

More investors areinvesting in ourcountry...


24/94

In order to achieve

a high income nation,our GDP must grow

at least..

6%

2011 2020

per annum


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We have launched the

New Economic Modelas a framework

to begin ourjourney


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NEM - Making usa rich country ,

for everyone & for a long time

High Income

Inclusiveness Sustainability

Target USD 15,000GNI per capita by 2020

Enables allcommunity

benefits fromthe wealth of

the country

Meets presentneeds withoutcompromisingfuture generations

Quality

of Life


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The question is..How do we get there?


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ETP is not

a Plan

It is a Programme

Strategic intent Strategic plan Blueprint Strategy document

Projects Action items Timeline Project owner Targets


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30,000 feet

3 feet


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What is a NKEA ?

A National Key Economic Activities (NKEA)

is a driver of economic activity that has thepotential to directly and materially contribute aquantifiable amount of economic growth to theMalaysian economy


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What doesNKEA do ?


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USD 6,700

USD 15,000NKEA willboost ourGross NationalIncome (GNI)

Per capita

Per capita

RM 48,000

RM 23,770


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We conducted workshop of a thousand

to achieve consensuson the industry focus

for the country..


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1000 + people

194 MNCs, GLCs, SMEs,Ministries & Gov agencies


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Wholesale& Retail

Oil, Gas &Energy

Palm Oil

Healthcare

FinancialServices

GreaterKL

Agriculture

Tourism

Education

c re

Electrical& Electronics

r

BusinessServices

CommsContent

Infrastructure

...and

finalised12 NKEAs


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After finalizing the 12 NKEAS,we ran the NKEA Labs

Increase GNI per capita from USD7,000 to

USD15,000 by 2020 (as per NEM & 10MP)Identify projects to achieve the above target

Ensure the projects are mainly privately

fundedEnsure more job creation and shift towardshigher income bracket

1

2

3

4

o b j e c t i v e s


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More than 500lab members across210 companies,13 NGOs &32 Government agenciesparticipated full timefor 8 weeks


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Education Petroleum and gas

Tourism Palm oilBanking and financialservices Islamic financial services

HealthcareRetail


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To find ways to increaseour countrys incomein the next10 years...

2010 2020


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Result of the 12 labs(8 week work)is phenomenal ...


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12 Lab Reports

131 Entry Point Projects60 Business opportunities

3.3 million jobs opportunities


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ETP is not a Plan

It is a Programme

Remember..


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The ETP Roadmap

to achieve ahigh income

nation188

523

Note : Nominal GNI (USD billions). Assuming population by year 2020 is 31.6 million

112

2020 GNITarget

EntryPointProjects(EPPs)

Growth inotherSectors

138

2009GNI

BusinessOpportunities(Biz Opps)

11 SectorNKEAs

1 2

86

3

U S D

( b i l l i o n

)

(RM 442 b)

(RM 359 b)

(RM 275 b)

(RM 1.7 t)

(RM 661 b)


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131 Entry Point Projects

(EPPs) worthUSD 138 billion

188

523


112

2020 GNITarget



138

2009GNI


1 2

86

3

U S D

( b i l l i o n

)

(RM 442 b)

(RM 359 b)

(RM 275 b)

(RM 1.7 t)

(RM 661 b)

G t KL


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Greater KLMRT

Largest infrastructure

project in Malaysia 141 km of three new

corridors

Integrated with existing rail

systems KTM Komuter,

Monorail and LRT

Generate an estimated

cumulative employment

of 130,000 workers of

various disciplines

Incremental

GNI of RM

392 billion

66% PrivateInvestment

552,000new jobs

9 EPPs and3 BOs


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Greater KLRiver of Life1

3

5

6

8

9 7

2

4

10

Incremental

GNI of RM

392 billion

66% PrivateInvestment

552,000new jobs

9 EPPs and

3 BOs


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Palm Oil

Incremental

GNI of RM

125 billion

97.7%Private

Investment

Net 42,000new jobs

8 EPPs and

3 BOs

Delivery from Estates Proper FFB Grading

FFB Quality based Payment

2

Milling Efficiency

1 3

FFB price must be paid based onquality of FFB received

Proper Grading of Incoming FFB atMill Gate

Improve Milling Efficiency

Three core recommendations

Improving Oil Extraction Rate

Increasing the OER from20.5% to 23%


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Tourism

BerjayaTimes Sq

Starhill/Lot 10

Kuala LumpurConvention Centre

Pavillion

7 km of shopping andentertainment districts

KLCC (convention centre) toPavilions Raja Chulan bridge

Pavilion across Jalan BukitBintang to Fahrenheit 88

Fahrenheit 88 to Lot 10

Sg Wang to Berjaya TimesSquares Jalan Imbi bridge

Sg Wang to Federalhotel/Jalan Pudu

Key Connectivity

Premier Shopping District

IncrementalGNI of RM67 billion

97.7%Private

Investment

497,000new jobs

12 EPPs and3 BOs


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Tourism Bio Diversity

IncrementalGNI of RM67 billion

97.7%Private

Investment

497,000new jobs

12 EPPs and3 BOs

Proboscis monkeys

Langurs

Rafflesia

Orchids

Pitcher plants

Johor

Selangor

Major Discovery Centers

Potential GBH sites

Top 10 - Terrestrial

Hornbills

Elephants

Tapirs

Tigers

Orang Utan

Turtles

Macro life (Muck

diving)

Reef fish

Super 7 - Marine

Dugong

Coral

Sharks

Rays

TAR Park

Sepilok

Semporna

Kinabatangan

Perhentian

Semenggoh

K. Gandah

Bako

Mulu

Frasers Hill

Turtle Island

Danum

Belum

Batang Ai

Maliau Basin

Layang layang Lok Kawi

LimbangMangroves

K. Gula

Langkawi

Tioman

PulauSibu

KuchingWetlands

Taman Negara

Endau Rompin

Lojing

GreaterSipadan

I l 99 %


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Oil & Gas EPP : Create Oil Field Services (OFSE)

Incremental

GNI of RM

132 billion

52,300 new jobs

10 EPPs and

7 BOs

99.7%Private

Investment

ILLUSTRATIVE

Houston

StavangerAberdeen

2020 GNI impact:

USD4.5

Billion

2020 Totalnew jobs:

40,000

Attract major international OFSEcompanies to bring a sizeable shareof their global operations toMalaysia

Build regional champions Rationalize fabricators JVs with world class players

What it takes to make it happen


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There are even more !


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So please visit

our booths ...

13booths


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....and give us yourwritten feedback


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EPPs arecatalytic

andtransformational

GNI Target (USD 15,000 per capita)

Entry Point Project (EPP)

Business Opportunity (B.O)

Unidentified / Other Unknown projects

Note : Illustrative


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Most importantlywe do not pick

winners....


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...or play God


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The 131 EPPs spread

throughout Malaysia ...

Note : Illustrative

25 EPP


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25 EPPsbenefit

ruralcommunities

Source : PEMANDU Team Analysis / United Nations (2007)

8.7 mPeople lives in

rural areas


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withpotential

320,000 jobsto be createdin the rural sector

Agriculture

Oil Palm

CCI

Additional Job Opportunity (rural areas)

94,100

83,485

3,135

Tourism 2,919

Wholesale& Retail

196,696

Th i i 106 EPP


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The remaining 106 EPPs

will largely benefiturban communities

19.3 mPeople lives in

urban areas

Source : PEMANDU Team Analysis / United Nations (2007)


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This shows we areinclusive...

High Income

Inclusiveness Sustainability


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60 Business Opportunities

worth USD 112 billion

188

523


112

2020 GNITarget



138

2009GNI


1 2

86

3

U S D

( b i l l i o n

)

(RM 442 b)

(RM 359 b)

(RM 275 b)

(RM 1.7 t)

(RM 661 b)


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Business Opportunities

USD 112 billionworth of opportunities

to be identifiedin the next

10 years


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Business Opportunities

Therefore, everybodycan participateTarget (USD 15,000 per capita)


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92% of the

investmentwill come

from theprivate

sector100% = USD 444 billion

92%USD 410 b

8%USD 34 b

Public Sector

Private Sector*

* Includes GLCs & non-GLCs


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The newengine of growth

will come fromthe private sector

P r i v a

t e S

e c

t o r


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This is in line withthe 10 th Malaysia Plan ..

Private Sector Driven

Public Sector Driven


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73 % D omesticDirectInvestment

(DDI)

Early commitment or interest from


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Early commitment or interest fromprivate investors is promising

InvestmentUSD billion

37

10

50

66

53No discussion

Early discussions

Active engagement

Close to commitment

Named investor(s);Serious commitment

CategoryNo ofEPPs

7

12

34

51

27

Rating

Total 131216


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NKEAs will create

additional3.3 million jobs

by year2020

A d ill l hif d


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And will also shift towardshigher income

2020 Projected Salary DistributionNumber of jobs, millions

0.60.2

3.7

4.7

2.8

1.3

4.63.3

0.31.2

2.32.9

2020 (Projected) 2009

< RM 750 RM 750 RM1.5k

RM 1.5k RM 3.k

RM 3k RM 5k

RM 5k RM7.5k

> RM 7.5k

Low Income Middle Income High Income

8% bli f di ill


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3.3 m additional jobs+

GNI impact per publicdollar spent 1 = 7+

+ Personal and corporatetax revenue couldincrease to USD36 b USD40 b 2Public

Funding

USD 410 b

USD 34 b

Private

funding

8% public funding willcatalyze 92%

of private investment


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We willpublish

the ETP Bookto the public

26 .10 .2010P l e a s e s a v e t h e d a t e


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That markshistoric

journeyinto becoming

a high-incomenation by 2020

3 versions for the rakyat


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3 versions for the rakyat

Avid reader Lazy people Laziest people

video

Executive Summary

Full version

R b ETP i t


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Remember, ETP is not

a Plan

It is a Programme

Strategic intent Strategic plan Blueprint Strategy document

Projects Action items Timeline Project owner Targets


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We have theright ingredients

to succeed..


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Malaysia isbig enough

foreverybody ..


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We will grow oureconomic piefor everybody

by 2020


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Is there political will ?

ETP Roadmap is made publicETP is private sector led


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Lets focusour effort

in growing theeconomic pie

action


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and not get

vortexed intoa philosophicalor an academic debate

talk


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So private sector

must invest &grow profitably


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Whilst public sectorwill facilitate and providethe necessary support

We are confident (like GTP)


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We are confident (like GTP)

that we can do it ....

Therefore all of us


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Therefore all of usmust beunited ..

irrespective of race


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..irrespective of race ,

religion &politicalbelief

and use our


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..and use ourdiversity

as strength todrive the economy


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We have seenmany, many, many

Malaysian companieswhich have successfully

embraced diversity

There are too many examples


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There are too many examples ..

Note : Illustrative

PM is serious


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We need bold radical changeWe need speed of decision making & executionWe must act NOW

PM is serious

that we needto transform

our economy

We neeWe neeWe mu

Thi b ld t &


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This bold step & your

commitment will takeus closer to Vision

2020


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Thank You

Malaysia Economic Transformation Programme (ETP) Open Day : Key Note Address by Idris Jala

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Transcript of Malaysia Economic Transformation Programme (ETP) Open Day : Key Note Address by Idris Jala