Chapter overview economic 2 of the transformation

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Unformatted text preview: sed to devise the ETP and the impact that we expect the programme to deliver. chapter Overview Economic 2 of the Transformation Programme Economic Transformation Programme 75 A Roadmap For Malaysia Chapter 2: Overview of the Economic Transformation Programme T he Economic Transformation Programme (ETP) will result in Malaysia becoming a high-income nation with GNI per capita of RM48,000 or USD15,000 by 2020. As well as achieving its GNI target, by 2020 Malaysia will develop many of the characteristics of a high-income economy: services will account for over 65 percent of GDP; private consumption will account for almost 60 percent of GDP; and Malaysia’s dependency on oil will be reduced from 21 percent of GDP in 2008 to 14 percent. This will be a private sector-led transformation with 92 percent of the over RM1.4 trillion of investment required coming from the private sector. Finally, the ETP will raise income levels across Malaysia by creating an additional 3.3 million jobs, over 60 percent of which will be in medium-income or high-income salary brackets. The ETP requires Government to play a new role as a facilitator of economic growth – liberalising markets, incentivising investment, removing barriers and letting the private sector lead. This role will be critical to mitigate the risks to the programme and to ensure successful delivery. DEVELOPING THE ECONOMIC TRANSFORMATION PROGRAMME The ETP is not about incrementally improving Malaysia’s economy, it is about transforming it. We believe that transformational change is achieved by changing how things will be done, which in turn changes how things will be. This means that by fundamentally changing how things are done in the economy, we will change the character and structure of the economy and thus achieve transformation (Exhibit 2-1). 76 Chapter 2 Overview of the Economic Transformation Programme Exhibit 2-1 Therefore we believe the starting point for the ETP should be the implementation of concrete changes in specific parts of the economy. That is why the 12 National Key Economic Areas (NKEAs) were selected. That is also why a programme of 12 labs was conducted, one for each NKEA. Each lab was asked to determine concrete initiatives and projects that would drive the economic transformation necessary for Malaysia to become a developed nation by 2020. The 12 labs, covering the 11 economic sectors and the development of Greater Kuala Lumpur/Klang Valley, were represented by the private sector and civil service and facilitated by PEMANDU (the Performance Management and Delivery Unit under the Prime Minister’s Department). In all, 500 people participated, the majority of whom came from the private sector. The ideas generated in the ETP labs were anchored on the policy direction set out in the Tenth Malaysia Plan, including a private sector-led economy, market liberalisation to drive and encourage growth through innovation, development of world-class talent and investment in improving infrastructure. The labs, which ran for eight weeks, provided the private sector an opportunity to w...
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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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