9 December 2013 Senator Dato` Sri Idris Jala Presentation to

Presentation to Malaysia-Italy Business Forum
And head of delegation
His Excellency Carlo Calenda
Italian Vice Minister for Economic Development
9 December 2013
Senator Dato’ Sri Idris Jala
CEO of PEMANDU and
Minister in the Prime Minister’s Department
National Transformation Policy
TOWARDS VISION 2020
Political
Transformation
Programme
Economic
Transformation
Programme
Government
Transformation
Programme
1Malaysia
(People First, Performance Now)
10th & 11th Malaysia Plan
NEW ECONOMIC MODEL
Making Us A Rich Country
For Everyone & For A Long Time
HIGH-INCOME
Target USD 15,000
GNI per capita by 2020
QUALITY
OF LIFE
Enables all communities
to benefit from the
wealth of the country
Meets present needs
without compromising
future generations
ETP’s TRUE NORTH
Gross National
GNI(GNI)
Income
USD523b
Per Capita USD15,000
6% GDP growth per annum
INVESTMENT
USD444b
92% Private
8% Public
3.3 million
ADDITIONAL
JOBS
73% DDIs
27% FDIs
COMPETITIVENESS
ENABLERS
51 Policy Measures
6 SRIs & Natural Homes
TRANSFORMATIONAL
ACTIONS
FOCUS DRIVERS
12 NKEAs • 131 EPPs • 60 BOs
To become a
HIGH-INCOME NATION,
We NEED:
COMPETITIVENESS
FOCUS
“ENABLERS” to
ensure
competitiveness
“DRIVERS” to
ensure focus on
high-impact areas
6 SRIs
12 NKEAs
+
7 NKRAs
Strategic Reform Initiatives
National Key Economic Areas
National Key Result Areas
Multiple Cabinet retreats to ascertain the
direction needed
1
Strategic
Direction
8
Tell the rakyat what
we have delivered
External
validations
on results
2
Annual
Reports
7
IPR & AUP
On-the-ground
implementation &
problem-solving
Bottom-up, privatepublic collaboration, on
details of what need to
be done
Labs
Radical &
Transformational
Approach
3
Open Days
6
4
Execution
GTP/ETP
Roadmaps
5
KPIs
Setting KPIs for
the whole Cabinet
Share lab output
with rakyat &
seek their
feedback
Commit to the rakyat
what we are going to
do
Overall NKEA RESULTS
KPI
MET
1H
2013
2012
2011
123%
118%
2013
66%
Oil , Gas &
Energy
Healthcare
Electrical &
Electronics
Education
Communications
Content & Infra
Tourism
Greater
Kuala Lumpur
Financial
Services
Business
Services
Agriculture
Wholesale &
Retail
Palm Oil &
Rubber
Progress TO DATE
2011
2012
2013
110 PROJECTS
39 PROJECTS
33 PROJECTS
Investment
Investment
RM32.1b
RM7.04b
GNI in 2020
GNI in 2020
RM6.6b
RM6.8b
Jobs
Jobs
94,702
25,825
Investment
RM179.2b
GNI in 2020
RM129.5b
Jobs
313,741
GNI
INVESTMENT
GROSS NATIONAL
INCOME
JOBS
RM218.3b
RM142.9b
434,268
GKL: MRT making
GOOD PROGRESS
Work Package Tender Status
6
12
68
(RM20.68b)
Awarded
In Progress
To Be Called
GKL: High-Speed Rail
IN THE WORKS
Feb 2013: Malaysia & Singapore governments agreed to build HSR
Feasibility study Phase 2A commenced
Iskandar Region
Johor Bahru
SINGAPORE
Batu Pahat
KL CITY
CENTRE
Seremban
Muar
Ayer Keroh
KLIA
PHASE 1
• KL City Centre to Singapore in 90 MINUTES
• Potential intercity stops in N. Sembilan, Melaka and Johor
Source: ETP Roadmap October 2010
Penang
Ipoh
Bangkok,
China
PHASE 2 and beyond
• Greater KL to Penang
• Penang to Bangkok and
China
GKL: Environmental Initiatives
RIVER OF LIFE
RIVER CLEANING
Public Outreach
Programme at the Upper
Sungai Klang area
RIVER BEAUTIFICATION
124 static screens, gross
pollutant traps and log
booms installed
Beautification works at Masjid Jamek
area tendered. Schematic design for
remaining precincts in progress
LAND DEVELOPMENT
Four sewerage
rehabilitation & upgrading
packages: 40% complete
Gross pollutant traps and
river water treatment
plants: 85% complete
GREENER KL
Increase density of existing green space
Interconnecting parks & increasing park usage
Promote green redevelopment
2011
2012
2013 (Sept)
31,447 trees planted
5,098 trees privately
sponsored
31,898 trees planted
9,143 trees privately
sponsored
35,680 trees planted
3,168 trees privately
sponsored
OGE: Key Upstream Investments
IN EXECUTION
New Explorations
USD3b
Kinabalu Fields
(Enhanced Oil Recovery)
USD1b
North Sabah &
Baram Delta, Sarawak
(Enhanced Oil Recovery)
Balai Cluster
(Marginal Fields)
USD12.5b
Upgrade, Expand & Build
Production Facilities
USD1.7b
USD850m
Berantai
(Marginal Fields)
US$850m
OGE: Storage Ramp-Up
PROGRESSING WELL
Dialog-Vopak Independent Deepwater Petroleum Terminal in Pengerang
started construction in late 2011
August 2013
Overall View of Site

500 acres reclamation

Deepwater (24 m) jetty facilities
capable of handling VLCCs & ULCCs

Sheltered harbor

Potential storage capacity 5 million
m3 oil & 800,000 m3 LNG

Phased investment of about RM9b

Centralised Terminal Facility for
refining and petrochemical industry

Phase 1 commissioning 1H 2014
PHASE 1
150 acres + Capacity of 1.3 million m3 + 6 berths = RM 1.9 billion
OGE: Pengerang Integrated
Petroleum Complex
TOTAL POTENTIAL
•
•
RM170+ billion of investment
21,000 acres of industrial area
Potential Investor B
RM30 billion
4,000 acres
PETRONAS RAPID
RM60 billion
6,500 acres
2016 commissioning
Petroleum Terminal
LNG Regasification Plant
• RM9 billion
• 500 acres reclaimed land
• 1H 2014 Phase 1 commissioning
Potential Investor A
RM24 billion
2,000 acres
STRATEGIC REFORM INITIATIVES
(SRIs)
COMPETITION, STANDARDS &
LIBERALISATION
COMPETITION
27
Complaints
LODGED
COMPETITION ACT
ON-GOING MyCC
INVESTIGATIONS
First year of implementation focused on
ADVOCACY and AWARENESS
MyCC
• COMPLETED A STUDY on fixing of prices and fee scales by associations
and professional bodies to examine if this was consistent with the Competition Act
2010
• CONSULTATIONS with the 10 professional bodies with provisions
in their Acts allowing fixing of scaled fees WILL BE CARRIED OUT for
better understanding of the practices
COMPETITION, STANDARDS &
LIBERALISATION
STANDARDS
1. Farms Certification Re-Branding
• Consolidation of various agriculture certification programmes to Malaysia Good
Agriculture Practices (MyGAP) for better brand recognition both locally and
internationally (farming, rearing &aquaculture)
Malaysia Good
Agriculture
Practices (MyGAP)
2,361
FARMS
CERTIFIED
2. Appointment of Standard Development Agencies (SDAs)
• Standards Development Act amended for more SDAs to be appointed to accelerate the
development of standards
• 2013: The Government plans to appoint TWO SDAs
• The Malaysian Timber Industry Board (MTIB) already appointed as an SDA
COMPETITION, STANDARDS &
LIBERALISATION
LIBERALISATION
Liberalisation of SERVICES SUB-SECTORS
• To facilitate foreign investors on government formalities to
set-up and operate businesses in liberalised service sectors
• Business entry processes such as license registration and permit
approval have been mapped out and uploaded at the MITI’s
website (myservices.miti.gov.my) for the purpose of transparency
• 16 / 18 services sub-sectors liberalised, two in progress
Evidence of Success
Evidence of Success #1: 49% GNI increase in 3 years
49%
(41%)
In 3 years!
$15,000
$9,990
$15,000
$9,508
$8,126
$6,700
($9,733)
($8,372)
($7,059)
2009
2010
Source: MoF/BNM
Projections: PEMANDU team Analysis
2011
2012
2018
2020
GNI (US$)
ETP Lab GNI projections
Current GNI projections
Evidence of Success #2: steady GDP growth during global
economic slowdown
Real GDP Growth % (Y-o-Y)
6.5
7.2
5.1
4.8
2007
2008
2009
-1.5
2010
2011
5.6
4.5-5
4.5
2012
9M 2013
2013
Forecast*
Evidence of Success #3: Record Government Revenue in
2 consecutive years
2011
RM185 bil
2012
RM207 bil
1Malaysia
People’s Aid
(BR1M)
1Malaysia Book
Voucher (BB1M)
RM100 Back
to School
Assistance
Evidence of Success #4: Gradual Reduction in Fiscal Deficit
2009 2010
6.6%
5.6%
Target
2011 2012 2013
4.8% 4.5%
As percentage of GDP
*2015 Target as per 10th Malaysia Plan
4%
Target
2015*
3%
2020 target
0% / Neutral
Evidence of Success #5: Private investment growth tripled
since start of ETP
Investment growth (%)
22%
Start of ETP
12.2%
6.7% average
2000
2010
2011
2012
Evidence of Success #6: Record Private Investment
RM139.5bil
RM94bil
Target:
RM127.9bil
Target:
RM86bil
NKEA:
RM85.7bil
(61%)
NKEA:
RM68.2bil
(72%)
2011
Source: Department of Statistics
2012
Evidence of Success #7: Record Stock Market Performance
Market Capitalisation
RM
1.6 trillion
24 July 2013
41%
RM460 billion
RM 1.12 trillion
Aug 2010
FTSE Bursa Malaysia
KLCI
Historical High
24 July 2013:
1,810 pts
Evidence of Success #8: Record Private Consumption
RM439.5 bil
in 2012
Source: MITI
Evidence of Success #9: Encouraging Public Perception
Public
Perception
72%
on GTP/ETP 82%
Malaysian
Institute of
Integrity*
(sample size:
13,602)
*GTP only
Frost &
Sullivan
(sample size:
22,272)
Evidence of Success #10: Increased in World Bank’s “Ease
of Doing Business” Rankings
Ranking
6
(2014)
12
(2013)
18
(2012)
23
(2010)
Country
2014
2013
2012
Category
2014
2013
2012
Singapore
1
1
1
Starting a
business
16
54
50
Hong Kong
2
2
2
43
96
113
New Zealand
3
3
3
Construction
permits
United States
4
4
4
Getting
electricity
21
28
59
Denmark
5
5
5
Registering
property
35
33
59
MALAYSIA
6
12
18
Getting credit
1
1
1
South Korea
7
8
8
Protecting
investors
4
4
4
Georgia
8
9
16
Paying taxes
36
15
41
Norway
9
6
6
Trading across
borders
5
11
29
United Kingdom
10
7
7
30
33
31
Australia
11
10
15
Enforcing
contracts
Thailand
18
18
17
Resolving
insolvency
42
49
47
Germany
21
20
19
Japan
27
24
20
France
38
34
29
Source: World Bank
EXTERNAL VALIDATION
by corporate, government and
academic bodies
AUP
PARTNER
GTP & ETP Results Endorsed by International Panel
MICHAEL
THATCHER
Microsoft
Asia Pacific
CTO
SIR MICHAEL
BARBER
IMF Institute
European
Division Chief
STEPHEN
SEDGWICK
Australian
Public Service
Commissioner
MICHAEL
HERSHMAN
Fairfax Group
President and
CEO
ANDREW
LEE
Western AUS
Govt Strategy,
Policy and
Governance
DR RAVI
BALAKRISHNAN
IMF APAC
Resident
Representative
DR YUKON
HUANG
Carnegie Asia
Program Senior
Associate
OMBENI
SEFUE
Tanzanian
Government
Chief Secretary
HK
YONG
Advisor
Commonwealth
Secretariat
DR ALEX
MOURMOURAS
IMF APAC
Division
Chief
ETP, GTP Case Studies By Ivy League Institutions
Tying Performance Management to Service Delivery:
Public Sector Reform in Malaysia, 2009-2011 (July 2011)
By Deepa Iyer
Malaysia: The Economic Transformation Program
(November 2012) by Prof Diego Comin & Ku Kok Peng
Sharing the methodology
GLOBALLY
21 – 24 November 2011
14 Countries, 52 participants
Tanzania
Russia
Brunei
4 – 5 August 2012
9 August 2012
4 September 2012
The TRANSFORMATION
is a comprehensive/holistic programme that tackles
FOCUSED ACTION & STRATEGIC REFORM
INITIATIVES
12 NKEAs
131 EPPs
60 BOs
Cities & Corridor
Rural
Transformation
Programme (RTP)
51 Strategic
Reform Initiatives:
Under the NEM
Other initiatives under
the GTP:
Corruption, Education,
Crime, Urban Public
Transportation NKRAs
THANK YOU
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