Delivering Transformation - ETP

Delivering
Transformation
Delivering Transformation 1
Foreword
On the GTP…
“We realise that we cannot use the same
approach as before to transform our
government and achieve substantial results
quickly. Therefore, to ensure we had an
accurate gauge and sense of what the
priority areas are for the rakyat, multiple
input sources including the rakyat, opinion
polls, perception surveys (alternative and
mainstream), media analyses, dialogues
with select academicians, private and public
sector leaders were considered.”
On the ETP…
“This government is committed to pursue
a strategy to achieve high income status.
We have embarked on an Economic
Transformation Programme (ETP) to propel
our economy to 2020. The ETP builds upon
policy directions, strategies and programmes
of the 10th Malaysia Plan. It is aligned with
previous efforts such as the Government
Transformation Programme (GTP) and the
1Malaysia People First Performance Now
concept as well as the groundwork of the
New Economic Model.”
Dato’ Sri Haji Mohd Najib bin Tun Haji Abdul Razak
Prime Minister of Malaysia
2 PEMANDU
PEMANDU
The Catalyst
“Supporting and working closely with the public and private
sectors, PEMANDU drives performance to deliver concrete results
in key economic and social areas for the people, and to transform
Malaysia into an advanced nation by 2020, in accordance with the
spirit of 1Malaysia.”
YB Senator Tan Sri Dr. Koh Tsu Koon
Minister in the Prime Minister’s Department & Chairman, PEMANDU
“The effectiveness of any
transformation programme often lies in
the details,”
Dato’ Sri Idris Jala
Minister in the Prime Minister’s Department & CEO, PEMANDU
The Performance Management
and Delivery Unit (PEMANDU) was
established as an independent unit
to oversee the social and economic
transformation of Malaysia. To pave
the way for Malaysia to achieve its
target of becoming a high income,
developed nation, we have begun to
implement two initiatives:
The Government Transformation
Programme (GTP)
Malaysia has often in the past
pragmatically charted its own course.
Now, the nation is embarking on
the same route once again with a
bold government transformation
programme that no other government
in the world has attempted to
undertake on such a large scale.
The (GTP) was devised in accordance
with the principles of 1Malaysia,
People First, Performance Now. In
its entirety, the GTP is designed to
provide all Malaysians access to
improved public services irrespective
of race, religion and region.
The objective of GTP is two-fold –
first, to transform the government
to be more effective in its delivery
of services and accountable for
outcomes that matter most to the
rakyat; and second, to move Malaysia
forward to become an advanced,
united, and just society with high
standards of living for all. This is in line
PEMANDU
with the national mission of achieving
Vision 2020 – for Malaysia to become
a fully developed nation.
Through a rigorous governance structure
- lead ministers assume responsibility
for the implementation and delivery of
the targets set for each NKRA – and a
clear delineation of accountability, we
can ensure that our Key Performance
Indicators (KPIs) are met.
The Economic Transformation
Programme (ETP)
The ETP is a bold approach and it
is the first time that an effort of this
nature has been undertaken in the
history of Malaysia, or of any other
developed nation.
The programme provides strong focus
on key growth engines via the 12
National Key Economic Areas (NKEAs).
Through extensive collaboration with
the private sector, we have determined
that these NKEAs will contribute to
the most of Malaysia’s economic
performance come 2020. To ensure
that these NKEAs produce big results
fast, they will receive prioritised public
investment and policy support. The ETP
is designed to lead the private sector
while the Government will primarily
play the role of a facilitator. Most of
the funding will come from the private
sector (92 percent) with public sector
investment being used as a catalyst to
spark private sector participation.
The ETP presents a departure from
the norm because it is focused on
actions, not on theoretical principles
and ideas. Each NKEA has a lead
minister who will assume responsibility
for ensuring smooth implementation
and delivery. We have identified
131 entry point projects (EPPs) that
concretely outline actions required
to grow the economy. In addition,
there are 60 business opportunities,
areas that have been earmarked for
potential expansion. The EPPs and
business opportunities identified under
each NKEA are anchored on how
much they contribute to GNI. Any
public spending will be allocated on
the basis of maximising GNI per ringgit
of public expenditure.
Delivering Transformation 3
Towards Developed
Nation Status
VISION 2020
1.
To move Malaysia forward so that it becomes
an advanced, united, and just society with high
standards of living for all.
2.
To propel Malaysia towards becoming a
high-income developed nation.
4 Strategic Thrusts
4 PEMANDU
The Focus
The GTP has been designed to
provide all Malaysians access to
improved public services irrespective
of race, religion and region, and has a
two-fold approach:
1. To transform the Government to
be more effective in its delivery of
services and to be accountable
for outcomes that matter most to
all Malaysians.
2. To move Malaysia forward to
become an advanced, united and
just society with high standards
of living - in line with the national
mission of achieving Vision 2020
and achieving a developed nation
status.
Under the GTP, more than 250
personnel from various ministries,
agencies and departments throughout
the country participated and identified
radical, practical and innovative
solutions to help realise the NKRAs
with detailed execution plans.
To ensure PEMANDU has an accurate
gauge and sense of priority areas,
multiple input sources including the
rakyat, opinion polls, perception
surveys (alternative and mainstream),
media analyses and dialogues with
select academicians, private and
public sector leaders were taken into
consideration.
Open Days were held in Kuala
Lumpur, Kuching and Kota Kinabalu,
detailing all the initiatives and the
results of The Labs. The rakyat were
able to provide input and feedback
on the targets, minitiatives and
implementation details.
We
must
do both
Likewise, the Economic
Transformation Programme was
developed through extensive
cooperation between the private
sector and civil service. From the
1000-Person Workshop which
determined the areas of focus for our
economy and The Labs which brought
the strategic blueprints to the threefoot, implementation-ready stage, to a
detailed ETP Roadmap published and
launched publicly, the private sector
has been involved in every aspect of
the ETP, and is responsible for the
implementation of the majority of the
projects.
The 1000-Person Workshop brought
together 800 industry leaders from
the private sector with 200 of the
best minds from the civil service.
Total participation was crucial in
determining the areas for growth i.e.
the 12 National Key Economic Areas
(NKEAs).
Twelve Labs were established for
the NKEAs. Together, they shaped
sector-specific strategies and detailed
timeline and action items, developing
implementation plans with the
project owners. These plans include
requirements for public funding,
investment and labour amongst other
things.
Three Open Days were held in Kuala
Lumpur, Kuching and Kota Kinabalu
to share the results of the NKEA Labs
and obtain input from the rakyat.
Feedback from the Open Day was
used to augment the outcomes from
The Labs. The combined wealth of
expertise from the private sector,
public sector, senior government
leaders and the rakyat resulted in the
development of the ETP roadmap.
“Important stakeholders including the Prime Minister,
ministers and business leaders were brought in early to
visit The Labs and provide feedback to the participants.”
Delivering Transformation 5
6 PEMANDU
Pillars of Change
High-Income
Targets USD 15,000 - 20,000
GNI per capita by 2020
Inclusiveness
Enables all
communities to
fully benefit from
the wealth of the
country
Quality
of Life
Sustainability
Meets present
needs without
compromising future
generations
Fighting
Corruption
Raising Living Standards
of Low-Income
Households
Minister in the Prime
Minister’s Department,
in charge of Law
Improving
Student
Outcomes
Minister of Education
Improving Urban
Public Transport
Minister of Women, Family and
Community Development
6 NKRAs
Improving
Rural Basic
Infrastructure
Minister of Rural and
Regional Development
Reducing Crime
Minister of Home Affairs
Minister of Transport
Under the GTP, six key priority areas were identified. The challenges within each area were divided into short-term
priorities and long-term issues. These areas of development are known as the National Key Results Areas (NKRAs).
Delivering Transformation 7
Oil Gas & Energy
Minister of Energy, Green
Technology and Water
Education
Financial Services
Minister of Education
Minister of Higher Education
Minister of Human Resources
Minister of Finance (II)
Greater
Kuala Lumpur/
Klang Valley
Tourism
Minister of Tourism
Minister of Federal
Territories and Urban
Well-being
Wholesale & Retail
Business
Services
Minister of Domestic
Trade, Co-operatives and
Consumerism
Minister of Human
Resources
Electronics &
Electrical
Agriculture
Minister of International
Trade and Industry
Minister of Science,
Technology, and Innovation
Minister of Agriculture
Communications
Content &
Infrastructure
Minister of Information,
Communications and Culture
Healthcare
Minister of Health
Palm Oil & Rubber
Minister of Plantation
Industries and Commodities
The 12 NKEAs were selected to provide focus in sectors with the potential to contribute
the most to our country come 2020. These contributions are anchored in investments,
Gross National Income (GNI) impact and job creation. As the key economic growth
engines of the future, these NKEAs will receive prioritised policy support and investment.
Focus on these NKEAs also means that the performance of these sectors can be more
accurately measured to ensure timelines and targets are met.
8 PEMANDU
Big Results Fast
Fighting Corruption NKRA
Improving Urban Public
Transport NKRA
• Diversion of over 500 express
buses from KL City to the
Integrated Transport Terminal
in Bandar Tasik Selatan helped
decongest KL
• 634 Klang Valley bus-stops
refurbished
• More than 2 million increase in
LRT commutes due to the use
of new four-car train sets
• Groundbreaking Whistleblower
Protection Act introduced
• 284 corrupt offenders were listed on
MACC Name-and-Shame online
database
• Over 3,500 government contracts
and tenders were listed online
• Almost two-fold increase in
percentage of people who view the
government’s action in fighting
corruption as being effective
Improving Rural Basic
Infrastructure NKRA
• 783.1km of rural roads have been
built or upgraded
• 36,273 additional rural houses
supplied with clean or treated water
• 27,266 additional houses
connected with 24-hour electricity
supply
• 16,962 houses for rural poor built
or restored
• Priorities that matter
most to the rakyat
• Delivering fundamental
nationwide changes
Improving Student
Outcomes NKRA
• Malaysia’s first school
ranking system introduced
• The Nation’s first High
Performing Schools (HPS)
list is created with 20 schools
selected
• More than 700,000 children aged
4 and 5 were able to enter
pre-schools and benefit from
early education
Reducing Crime NKRA
Raising Living Standards
of Low-Income Households
NKRA
• 44,643 extreme poor households
reduced to zero
• 2,000 women entrepreneurs were
trained
• 35,095 low cost units were
offered for sale to deserving
families and individuals
• 35% reduction in street crime
• 15% reduction in index crime
• 2,001 additional violent crime
backlog cases cleared in 2010
• 753 police stations ranked for the
first time
• 14,222 officers redeployed to 50
crime hotspots
• 7,402 back-office personnel
reassigned to the frontline
Delivering Transformation 9
ETP Progress Updates
We have made tremendous progress in a short span of time. In less than six months, we have
secured commitments for 72 projects, from a mixture of private and public sector organisations
as well as from large multinationals and domestic companies.
72 Projects in 54 EPPs, RM106.41 billion investment
RM153.83 billion GNI, 298,865 jobs created
Round #1
(25 Oct 2010)
9 projects
Round #2
(30 Nov 2010)
9 projects
Round #3
(11 Jan 2011)
19 projects
Round #4
(8 Mac 2011)
23 projects
Round #5
(19 Apr 2011)
12 projects
Investment:
RM5.3b
GNI: RM100m
Jobs: 13,100
Investment:
RM8.2b
GNI: RM84.5b
Jobs: 70,500
Investment:
RM66.8b
GNI: RM32.5b
Jobs: 52,400
Investment:
RM14.75b
GNI: RM20.1b
Jobs: 88,354
Investment:
RM11.16b
GNI: RM16.62b
Jobs: 74,457
GNI contribution and total funding by 12 NKEAs, 2010-2020
Size, new jobs created
450
400
Greater
KL/KV*
350
72 projects in 54 EPPs
Total Investment: RM106.41b
Total GNI: RM153.83b
Total Jobs: 298,865
300
60 projects
60
160
Oil, gas
& energy
140
Palm oil
120
100
80
50
Wholesale
& retail
Financial
services
Business
services
60
Education
10
Healthcare
Agriculture
0
0
50
18 projects
20
CCI
20
37 projects
40
30
Tourism
E&E
40
-50
72 projects
70
9 projects
0
100
150
200
250
300
Total funding (RM billion)
Note: *Greater KL/KV GNI is calculated separately to avoid
double-counting as some portion of the income from NKEAs will
be generated in the Greater KL/KV area.
ETP
Update #1
ETP
Update #2
New Projects
Cumulative Projects
ETP
Update #3
ETP
Update #4
ETP
Update #5
10 PEMANDU
Keeping Track
GTP and ETP
Governance Structure
We realise that we cannot use the
same approach as before to transform
our Government and achieve
substantial results quickly. To ensure
we had an accurate gauge and sense
of what the priority areas are for the
rakyat, multiple input sources including
the rakyat, opinion polls, perception
surveys (alternative and mainstream),
media analyses, dialogues with select
academicians, private and public
sector leaders were considered.
GTP Governance
Structure
PEMANDU ensures that both the
GTP and ETP remain on track by
establishing a clear Governance
Structure. Action items and timelines
are made clear at every stage of
this structure. Project owners are in
constant contact with PEMANDU,
and each of the National Key
Economic Areas (NKEAs) holds
a monthly Steering Committee to
ensure that challenges are resolved,
directions are set and decisions made.
Investment Committee meetings are
held fortnightly to determine fiscal
incentives, if any. Unresolved issues
will be escalated to weekly Economic
Council meetings, which will be
chaired by the Prime Minister for the
ETP and the Deputy Prime Minister for
the GTP.
We are held accountable for delivering
the targets set in the individual
Roadmaps and we will publish a
progress report on an annual basis,
starting with the GTP Annual Report
launched in the first quarter of 2011,
so that our achievements can be
evaluated over time. Furthermore we
have and will continue to hold regular
Progress Updates to keep the public
engaged with the ETP.
Leverage + Discipline of Action
Delivering Transformation 11
ETP Governance Structure is Key
PM Engagement with EPP Owners /
Private Sector Owners on overall update
Weekly monitoring & NKEA update
with dedicated sessions to problemsolve major issues
Problem-solving sessions
at the NKEA level led
by lead minister(s).
Investment Committee
headed by MITI; MIDA
will also be involved.
Implementation of
the EPP / BO
12 PEMANDU
3 steps to participate
in an ETP project
1
2
3
Engage the appropriate
Government agency or
ministry early with your
project proposal
A high-level pitch to Government should contain:
• Clear analysis of how the project addresses the issues and opportunities
• Clear high-level estimate of potential GNI and employment impact
• Clear articulation of support you need from the Government
Robust investment
analysis & business case
• If Government expresses interest, a detailed analysis which provides a robust
estimate on the project’s impact on GNI, employment and investment
• The appropriate PEMANDU NKEA director will assist to facilitate the project
• These include meetings with various ministers and ministry officials
Proper follow-up meetings
These project meetings are important:
• To secure the necessary support
• To facilitate fast and successful implementation
• To resolve any issues or roadblocks
Delivering Transformation 13
Unbiased with Full
Accountability &
Transparency
The Government is in the process
of administering the transformation
programmes. Throughout this time
it will make huge strides to improve
its performance delivery and will
encourage economic growth using a
two-pronged strategy.
• GTP and ETP - detailing specific
activities and promises to promote
transparency.
• To engender accountability,
for which the outcomes and
corresponding performance will
be communicated to the public
via regular public engagements in
an annual report.
The care taken to ensure
performance measurements and
process remains accurate and
unbiased to preserve integrity of
the findings is meticulous, and
all stakeholders understand the
need for this to be managed and
accounted for properly. To shore up
confidence, qualified independent
third parties were also asked to
undertake data collection, with the
specific focus of presenting the data
truthfully, reflecting both successes
and shortcomings. All this in an effort
to obtain a true picture of the overall
performance.
To this end, PEMANDU has
requested that the International
Performance Review (IPR)
Committee give an outside-in
view. This Committee is made
up of individuals from diverse
backgrounds and they also possess
the necessary expertise and track
record to review, analyse, critique
the strategic targets that had been
set, implementation process, as
well as the results and outcomes
achieved. An independent auditing
firm was also appointed to
review and validate agreed-upon
procedures to strengthen the
integrity of the data in the interests
of transparency and accountability.
14 PEMANDU
The Labs:
A New Way of Working
“The GTP and ETP Roadmap contain concrete targets
and action plans. These were developed through The
Labs and a series of forums where the best minds
from the Government and private sector were brought
together to develop ideas into specific actions.”
Dato’ Sri Idris Jala
Minister in the Prime Minister’s Department & CEO, PEMANDU
Putting The Labs into perspective,
they assembled the best minds
from the private and public sectors
to chart growth plans. The Labs
that began in October 2009 marked
an intense private sector led
effort to determine the in-depth
transformation plans needed to
ensure Malaysia attains high-income
nation status by 2020.
These labs brought together 500
experts, of which 350 were from 200
private corporations and the rest
were representatives of 60 public
institutions (ministries, agencies,
and universities), all dedicated to
defining and detailing the ETP –
this was a full-time endeavour.
The overall approach was aligned
by a central team of experts
from the Economic Planning
Unit, Ministry of Finance and the
Department of Statistics to ensure
that The Labs’ ideas were aligned
with the design principles outlined
in the key national strategic plans
(such as the 10th Malaysia Plan)
and would help achieve the highincome nation target by 2020.
Delivering Transformation 15
The Labs to Accelerate Delivery / Outputs - FAST
The Labs Approach
To raise organisational limits to change
The labs help raise ambition for what is possible,
and this is shared broadly with the organisation to
help become a reality
To get early and ongoing benefits
Confidence in the effort is built by accelerating
the pace of results delivery - where possible, the
efforts become self-funding
As a protective ‘armour’ against upheaval
Business continuity is protected and the
disruptive effects of transformation are limited
by initially confirming the new way of working in
the lab
To allow for stringent reality testing
Implementation issues are raised and dealt
with early in the process of change by putting
the target solution under increasing ‘real world’
pressures in the lab
16 PEMANDU
Understanding the
Acronyms
PEMANDU Performance Management & Delivery Unit
GTP Government Transformation Programme
ETP Economic Transformation Programme
NKRA National Key Result Area
MKRA Ministerial Key Result Area
NKEA National Key Economic Area
EPP Entry Point Project
GNI Gross National Income
BO Business Opportunities
PMO Prime Minister’s Office
RBI Rural Basic Infrastructure
LIH Low-Income Households
UPT Urban Public Transport
OGE Oil, Gas and Energy
CCI Communications, Content and Infrastructure
E&E Electronics and Electrical
GKL/KV Greater Kuala Lumpur/Klang Valley
Performance Management and Delivery Unit (PEMANDU)
Prime Minister’s Department 3rd Floor East Block
Perdana Putra Building
Federal Government Administrative Centre
62502 Putrajaya
Tel: 03-8872 7237
Fax: 03-8888 7107
E-mail: [email protected]
Website: www.pemandu.gov.my
Not for reproduction without permission of owner.