Exhibit 2 4 by 2020 oil gas and energy will still be

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Unformatted text preview: rojected to contribute 60 percent of the incremental growth amongst the 11 NKEA sectors. Exhibit 2-4 By 2020 oil, gas and energy will still be the largest sector in the Malaysia economy, but its share of the economy will have fallen due to strong growth in sectors such as financial services and palm oil. The wholesale and retail sector will also have grown considerably to become the fourth largest sector in the economy, as shown in Exhibit 2-5. Economic Transformation Programme 81 A Roadmap For Malaysia Exhibit 2-5 Growth Driven by Innovation and Reform This growth will be driven by strategies and reforms that are market-friendly, centred on innovation and increasing value-add, focused on raising quality, standards and productivity and concentrated on areas where Malaysia has specific strengths. Many of the planned initiatives are centred around market liberalisation and an intensification of competition. These factors will be especially important in attracting multi-national companies to Kuala Lumpur, in developing a regional financial footprint and in stimulating growth in Islamic financial services. The liberalisation of gas prices and reduction of subsidies will also sharpen market disciplines. Economic growth will be spurred by innovation and a shift to higher value-added activities. The shift to food products in the Palm Oil NKEA means Malaysia will compete in higher-margin downstream markets. In the Healthcare NKEA, the development of clinical research and the expansion of contract manufacturing in medical devices will strengthen Malaysia’s position in areas of global growth. There will be a much greater focus on quality and on improving standards. The quality of skills training will be improved through industry-led bodies that will set standards, issue guidelines on content and harmonise the skills-training curriculum across sectors. 82 Chapter 2 Overview of the Economic Transformation Programme Labour productivity will increase significantly. For example, the roll-out of new harvesting techniques for palm oil will increase labour productivity in some holdings; Program TUKAR will see the development of a shared distribution centre for smaller retail outlets that will significantly increase efficiency and productivity; and land-sharing agreements will enable rice farmers to benefit from commercial-scale production. Within the NKEAs, growth will be concentrated in sub-sectors where Malaysia has sustainable competitive advantage. Amongst others, in Financial Services, the key growth area is in Islamic financial services where Malaysia has a distinctive track record. In Oil, Gas and Energy, Malaysia is especially well-positioned to develop a regional oil field services hub because of the captive domestic oil and gas industry as well as our proximity to oil fields in the region. Characteristics of a High-income Economy By 2020 Malaysia will not only have the GNI per capita of a high-income economy, it will also share a number of key characteristics. To begin with, the structure of t...
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This note was uploaded on 02/24/2014 for the course ACCOUNTING financial taught by Professor Alan during the Spring '14 term at Howard.

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