Download ETP Roadmap for Malaysia

You can now download the Economic Transformation Programme Roadmap here. Available in both Bahasa Malaysia and English.

The English version:

Versi Bahasa Malaysia:

If you still want a hard copy, MPH will be carrying it nationwide from tomorrow.

Launch of ETP: The Roadmap for Malaysia

Join us for the launch of the Economic Transformation Programme (ETP): The Roadmap for Malaysia.

Date: 25th October 2010
Time: 2:00pm
Venue: Putra World Trade Centre (PWTC)

Launch ceremony and keynote address by our Prime Minister, Dato' Sri Mohd Najib. Admission is FREE and seats are LIMITED. Email us at to book your seats today.

Visit for more information.

ETP Open Day CEO Forum 21/09/10

CEO Forum - "Economic Transformation Programme - The View from the Private Sector" at ETP Open Day in Kuala Lumpur on Tuesday, 21 September 2010.

Panellists are:
Tan Sri Yong Poh Kon, Managing Director, Royal Selangor International
Dato' Sri Nazir Razak, Group Executive, CIMB Group
Dato' Sri Dr. Tony Fernandes, CEO, Air Asia
Dato' Sri Shazalli Ramly, CEO, Celcom Axiata
Stephen Hagger, Country Manager and Head of Equities, Credit Suisse Securities Malaysia
Mokhtar Hussein, Deputy Chairman and CEO, HSBC Bank Malaysia

Moderated by Malek Ali, Founder, BFM

ETP Open Day 21/09/10

ETP Open Day keynote address on 21st September 2010.

To download the ETP keynote presentation slides, click here.

Malaysia Economic Transformation Programme

The Economic Transformation Programme
Propelling Malaysia Towards Becoming A High-Income, Developed Nation

The Economic Transformation Programme (ETP) is a comprehensive effort that will transform Malaysia into a high-income nation by 2020. It will lift Malaysia’s gross national income (GNI) per capita from about USD6,700 or RM23,700 in 2009 to more than USD15,000 or RM48,000 in 2020, propelling the nation to the level of other high-income nations. This GNI growth of 6 percent per annum will allow us to achieve the targets set under Vision 2020.

Successful implementation of the ETP will see Malaysia’s economy undergo significant changes to resemble other developed nations. We will continue our shift towards a service based economy, with the services sector growing from 58 percent to 65 percent in the same period. More than 3.3 million new jobs will be created by 2020, spread across the country in urban and rural areas. The nature of these new jobs will result in a shift towards middle and high-income salary brackets. Greater Kuala Lumpur will be transformed into a world-class city. Finally, growth will be achieved in a sustainable manner, without cost to future generations, through initiatives such as building alternative energy generation capacity and conserving our environment to promote eco-tourism.

The ETP is Different from Past Attempts to Grow the Economy
A bold new approach has been taken to develop the ETP. It is the first time that any effort of this kind has been undertaken in the history of Malaysia, or of any other developed nation. The programme provides strong focus on a few key growth engines: the 12 National Key Economic Areas (NKEAs). These NKEAs are expected to make substantial contributions to Malaysia’s economic performance, and they will receive prioritised public investment and policy support. The ETP will be led by the private sector; the Government will primarily play the role of a facilitator. Most of the funding will come from the private sector (92 percent) with public sector investment being used as a catalyst to spark private sector participation.

The effectiveness of any transformation programme often lies in the details. The ETP presents a departure from norms because it is focused on actions—not on theoretical principles and ideas. We have identified 131 entry point projects (EPPs) that concretely outline actions required to grow the economy. The EPPs and other business opportunities identified under each NKEA are anchored to how much they contribute to GNI; they were selected based on rigorous economic and financial analysis. Any public spending will be allocated on the basis of maximising GNI per ringgit of public expenditure. Finally, the ETP was designed to be rigorous and transparent, with a new ETP Unit under PEMANDU (Performance Management and Delivery Unit within the Prime Minister’s Department) being tasked to monitor and report progress to Government leaders, the business community and the rakyat.

Co-created by the Private and Public Sectors
From its inception, the private sector and the business community have been involved in the ETP. In May 2010, a Thousand Person Workshop was run to help identify the 12 NKEAs. The private sector continued to play a large role, when the labs began in June, with 500 of the best minds from the private sector and the Government coming together to develop plans for the 12 NKEAs.

The lab ideas and the plans that were developed were syndicated extensively throughout the eight-week lab period, with more than 600 syndication meetings with ministries, agencies, multi-national corporations, local corporations and non-governmental organisations. Important stakeholders such as the Prime Minister, Ministers and business leaders, were brought in early to visit the labs and provide feedback to the participants.

Subsequent to the labs, Open Days are being conducted in Kuala Lumpur, Sabah and Sarawak, where visitors (business community, multinational corporations, rakyat and media) can visit NKEA booths and provid further input.

The result of this process is a clear roadmap for Malaysia to become a high-income nation. In launching the ETP, we affirm that the EPPs listed in this roadmap are just the start, and through their execution we will learn and adapt the programme to ensure that we reach our aspirations.

Overview of the NKEAs
The 12 NKEAs are at the core of the ETP. An NKEA is defined as a driver of economic activity that has the potential to directly and materially contribute a quantifiable amount of economic growth to the Malaysian economy. The 12 NKEAs selected are:
  • Oil, Gas and Energy
  • Palm Oil
  • Financial Services
  • Tourism
  • Business Services
  • Improving Electronics and Electrical
  • Wholesale and Retail
  • Education
  • Healthcare
  • Communications Content and Infrastructure
  • Agriculture
  • Greater Kuala Lumpur / Klang Valley
  • Overview
Whats Does it Mean to be an NKEA?
Malaysia will focus its economic growth efforts on NKEAs, which will receive prioritised Government support including funding, top talent and Prime Ministerial attention. In addition, policy reforms such as the removal of barriers to competition and market liberalisation will be targeted at the NKEAs.

The programme will involve deliberate choices and trade-offs. Prioritising investment in NKEA sectors implies reducing investment in other sectors. The designation of sectors as NKEA sectors has to have real resource implications if it is to lead to meaningful change. The same philosophy of prioritisation will also apply to other support provided by the Government to sectors, such as operating expenditure and sector-specific policy and regulatory change.

The NKEAs will have dedicated focus from the Prime Minister and will have fast-track mechanisms to resolve disputes or bottlenecks. The Government is committed to the ongoing support of growth in the non-NKEA sectors. However, the Government will focus its efforts on the NKEAs because of the significance of the GNI contribution that these parts of the economy can drive.

No discrimination in ETP projects

The Economic Transformation Programme (ETP) will not discriminate against any state nor is it a stimulus package, said Minister in the Prime Minister’s Department Datuk Seri Idris Jala.
“Projects under the ETP, which is driven by private sector investment, will cut across the states.
"No state will be left out. Many Entry Point Projects (EPP) are also in Penang and Selangor,” he said after delivering a talk on the ETP at the National SME Economic Transformation Conference here Thursday.
On complaints by Selangor Pakatan Rakyat government that they were being left out, Idris said Selangor was invited to join in the ETP Lab.
“We have the same level of engagement with individual states be it Selangor, Sabah or Sarawak. There is no particular preference,” he said.
The private sector, he added, would look at which location was more commercial and feasible for their investment regardless of whether it was a Pakatan or Barisan Nasional-ruled state.
The ETP, he was also not a stimulus package but a “very specific programme” helmed by the private sector compared to previous packages which were by the government.
Idris said policies on foreign labour would be customised according to sectors to ensure there was sufficient workforce to make the ETP work while ensuring security concerns were addressed.
“We cannot have one policy across the sector. But at the same time, we can also improve the technology so that we do not rely on too many foreign workers,” he added.
Source: TheStar

Vision 2020 will not fail

KUALA LUMPUR, Sept 29 - Cabinet minister Datuk Seri Idris Jala refuted Tun Dr Mahathir Mohamad’s warning today that Vision 2020 would most likely fail if the government continues to rely on foreign direct investment (FDI) to drive economic growth.
The minister in the Prime Minister’s Department in charge of the Government Transformation Programme (GTP) expressed confidence that Vision 2020 would be achieved because of the Economic Transformation Programme (ETP).
“I believe that we can achieve Vision 2020 by 2020,” said Idris(picture) in a question and answer session after Dr Mahathir’s speech at a CEO Forum organised by the Perdana Leadership Foundation today.
“I agree with you (Dr Mahathir) that we must change the strategy. That’s why the Economic Transformation Programme is necessary,” he added.
The former premier said that chasing FDI worked well in the past but that the strategy was no longer viable as “much more attractive” investment destinations have since emerged in Asia.
Dr Mahathir urged the Najib administration to focus instead on encouraging domestic direct investment (DDI) to drive expansion from within and possibly achieve Vision 2020 that way.
Idris echoed Dr Mahathir's view and said that a focus on domestic investments was crucial to transform Malaysia to a high-income nation within 10 years.
“I agree that we must change to domestic investments,” said the Performance Management & Delivery Unit (Pemandu) CEO.
Idris pointed out that more than 70 per cent of the ETP's 131 entry point projects (EPPs) were funded by local investors.
“73 per cent of the EPPs are coming from local investors,” he said.
Pemandu has said it had identified investments worth RM1.38 trillion over 10 years, of which 60 per cent would come from the private sector, 32 per cent from government-linked companies and eight per cent from government.
The investment aims to double per capita income and push Malaysia into the ranks of “developed” nations by 2020, rebalancing Asia’s third most export-driven economy towards domestic demand and the service sector.
DAP advisor Lim Kit Siang, however, has slammed the ETP for its “unrealistic targets” and its failure to address existing government policies which have resulted in the country being caught in a middle-income trap.
The plans in the ETP ranged from a new mass transit system to relieve congestion in Kuala Lumpur, to building a huge oil storage facility next to Singapore to form a regional oil products trading hub.
A casino project in Sabah is also being considered.
Today, Idris said that the government needed to focus on quality FDI following Dr Mahathir’s criticism of the country’s dependence on FDI.
“Now, we must look at FDI that has quality,” he said.
The country’s fourth prime minister said earlier that Malaysia was “addicted” to FDI and depended too much on low labour cost to pull in investments.
Dr Mahathir pointed out that East Asian powerhouses Japan and Korea had not relied on FDI to power their rapid progress but instead set up and financed local companies utilising technology acquired from foreign sources to build indigenous capacity.
Unveiled in 1991, Vision 2020 laid out the government’s 30-year ambitious plan to make Malaysia a fully developed nation by the year 2020 by boosting GDP and per capita income.
Although there is no single definition, advanced nations are usually identified by their high per capita income and developed service and knowledge industries, coupled with high life expectancy and quality of education.

Source: TheMalaysianInsider