The epps are the initial wave only and further

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Unformatted text preview: ntified, a well-developed implementation plan and funding requirements clearly articulated. The EPPs are the initial wave only, and further projects will be identified and pursued over the coming years. Business opportunities capture the potential of the sector to grow organically. These represent concrete opportunities. Some business opportunities will be triggered by the successful execution of EPPs. For example, the development of integrated resorts and hotels across Malaysia will create business opportunities for tour operators and land transportation businesses throughout Malaysia. Many of the business opportunities highlighted will need further discussions to convert them into specific projects with potential investors identified, and a well developed implementation plan. Funding requirements will also need to be clearly detailed out. Beyond these identified opportunities, there will be many other ventures, large and small, that will emerge across the economy. Economic Transformation Programme 79 A Roadmap For Malaysia This will require collaboration with the relevant agencies such as MIDA and the respective ministries. Government will look into establishing a clear framework and process that faciltates and ensures efficient implementation and delivery of these opportunities. The multiplier effect captures the economic impact of the development of EPPs on all the other economic sectors. As one sector grows, it will create demand for goods and services provided by others. For example, as the tourism sector develops it will create additional demand for financial services that will result in additional GNI. This additional GNI is captured through multiplier calculations. BECOMING A HIGH-INCOME ECONOMY The projects and initiatives identified in the ETP will transform Malaysia into a high-income economy with a GNI that increases from RM660 billion in 2009 to just over RM1.7 trillion in the 2020. This means that GNI per capita will have risen from RM23,700 or USD6,700 in 2009 to beyond RM48,000 or USD15,000 in 2020. As a result, Malaysia is expected to reach the World Bank’s definition of a high-income economy by 2020. To do this, Malaysia needs to achieve GDP growth of 6 percent per year, which is significantly higher than the 4.5 percent projected for the global economy by the IMF World Economic Outlook in April 2010. As shown in Exhibit 2-3, the work of the ETP Labs suggests that EPPs can deliver up to 31 percent of the incremental GNI growth required and a further 10 percent through multiplier effects. Business opportunities could deliver an additional 33 percent. The remaining 26 percent of incremental growth is expected from other (non-NKEA) sectors. Exhibit 2-3 80 Chapter 2 Overview of the Economic Transformation Programme Note that Greater KL/KV GNI is not included to avoid double counting as some portion of the income from NKEAs will be generated in the Greater KL/KV area. Of the remaining NKEAs, Oil, Gas and Energy is projected to contribute the largest amount of incremental GNI. As illustrated in Exhibit 2-4, four NKEAs (Oil, Gas and Energy, Financial Services, Palm Oil, and Wholesale and Retail) are p...
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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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