There will be a 28 million increase in the number of

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Unformatted text preview: 600,000 workers will move out of the lowest income bracket as shown in Exhibit 2-12. There will be a 2.8 million increase in the number of people on middle-income salaries and a 3-fold increase in the number of high-income jobs. These new job opportunities will attract high-skilled foreign workers as well as talented Malaysians back to Malaysia. The Greater Kuala Lumpur/Klang Valley NKEA aims to attract 150,000 high-skilled Malaysian diaspora to return to help meet this demand. 88 Chapter 2 Overview of the Economic Transformation Programme Exhibit 2-12 In the years towards 2020, there will be a better fit between the skills demanded in the labour market and the skills developed. What Malaysia needs most of all is a much larger pool of well-trained and competent individuals with the right vocational and technical training (46 percent of additional jobs) as shown in Exhibit 2-13. Investment in education in Malaysia is designed to deliver increased quantity and quality of these vocational and technical qualifications. Economic Transformation Programme 89 A Roadmap For Malaysia Exhibit 2-13 MANAGING RISK The ETP is a highly ambitious programme, and there are of course risks to implementation. The most significant risk is that the required growth in private sector investment of 12.2 percent per annum is not achieved. Malaysia is starting from a position of relatively low growth in private investment (both domestic and foreign), so this is a real challenge. Since 92 percent of the capital required for the ETP is projected to come from private investment, if this growth in investment does not materialise, the risk is that the economy will not grow in line with the Government’s target. The Government understands the importance of securing this private investment and is taking a number of actions to mitigate this risk. Most importantly, the Government recognises that it has a new role to play in facilitating growth in what is a private sector-led programme of transformation. The ideas and investment opportunities developed in the labs came from the private sector. The reforms required were also identified by the private sector. The Government will be absolutely focused on implementing these reforms so as to stimulate private investment. Government funding of development projects and incentives will also be targetted at those projects that bring with them significant private investment and that will drive GNI growth. In addition, the corporatisation of Malaysian Industrial Development Authority (MIDA) will help enhance Malaysia’s ability to attract foreign investment and stimulate domestic investment. 90 Chapter 2 Overview of the Economic Transformation Programme There are other risks to the programme. The global economy is unpredictable and may not grow as quickly as the 4.5 percent projected through the 10 years. There is a limit to what can be done to mitigate this risk. However, the fact that the ETP aims to balance growth across exports and domestic consumption means that Malaysia will be somewhat less...
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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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