etp_handbook_chapter_1-4_economic_model

In addition a thousand person workshop was convened

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Unformatted text preview: ked at forecasts of sectoral growth and reviewed sector studies. In addition, a Thousand Person Workshop was convened in May 2010. The participants in the workshop were leaders from the public and private sectors, research institutions and civil society. The objective of the workshop was to prioritise the key sectors of growth for Malaysia until 2020. This workshop commenced with 20 mini-workshops (consisting of 30 to 70 participants each) on 20 sectors of the economy. The mini-workshops were provided with historical sector growth rates, independent forecasts for the sectors and international benchmarks for economic growth. Participants in each miniworkshop debated the growth potential of that sector and provided an estimate of the likely growth rate for that sector through to 2020. Once the growth rates for all sectors had been estimated, all workshop participants were surveyed. The results of the survey were used to create a list of potential NKEAs. This list was consistent with subsequent economic analysis and was endorsed by the Cabinet. In addition to the 11 industry sectors, Greater Kuala Lumpur/Klang Valley was selected as an NKEA through a separate process. Kuala Lumpur currently accounts for about one third of Malaysia’s GDP. Cities are significant drivers of growth, and a thriving Kuala Lumpur is vitally important to the health and performance of the overall Malaysia economy. On average, cities have productivity three times higher than in rural areas. Kuala Lumpur, as Malaysia’s primary city, will therefore be a critical driver of economic growth. The 11 sectors are expected to deliver 74 percent of the GNI growth potential over the next decade. Overall, these NKEA sectors are sectors in which Malaysia has current or potential competitive advantage, representing a mix of service, manufacturing, agriculture and extractive industries. These sectors are spread across urban and rural areas and are likely to support growth in the rest of the economy. 70 Chapter 1 New Economic Model of Malaysia The way in which these NKEA sectors grow and develop will be consistent with the Government’s inclusiveness and sustainability goals. These sectors employ 59 percent of the working population, and so growth in these sectors will generate broad benefits. Exhibit 1-9 The portfolio of NKEA sectors, as shown in Exhibit 1-9 will evolve over time, depending on the performance of various sectors in the economy. The 12 NKEAs shown are not permanent choices, but will be formally assessed at points in the future. There will be a rigorous process to remove slow-growing sectors from the NKEA portfolio as well as to identify emerging areas of growth that may be added to the NKEA portfolio. This process is described in more detail in Chapter 4. This is important because the 2020 GNI criteria means that the initial list of NKEAs are either existing large sectors of the economy or medium-sized sectors with strong growth prospects. But there are several small sectors in the economy, with strong growth prospects, that w...
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