Professional Documents
Culture Documents
Socio-Economic Developments . . .
Sustainable growth record with low inflation & unemployment rate while interest rate & exchange rates remained stable Investments in human resource and high quality social services and public institutions Substantial poverty reduction and quality of life improvements
Decline in world demand for electronics & Sept 11, 2001 incident East Asia Financial Crisis 1997/98 Global Financial Crisis & Recession 2008/09
-5 -10
Advanced Economy Malaysia
1980
1990
2000
2007
2008
RM 1,132 3,737 6,299 13,333 23,115 25,796 USD 368 1,717 2,329 3,509 6,724 7,738 Unemployment (%) 7.4 5.6 5.1 3.1 3.2 3.7 Inflation (%) 1.9 6.7 3.1 1.6 2.0 5.4 Fed. Govt. Account -4.0 -13.5 -2.9 -5.8 -3.2 -4.8 Balance (% to GDP) Current a/c of BOP 0.2 -1.2 -2.1 9.4 16.0 18.1 (% to GNP)
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550 500 450 400 350 300 250 200 150 100 50 0 1970 1980 1990 2000 2005 2006 2007 2008 Agriculture Mining Construction Services Manufacturing
Real GDP increased by 11 times from RM49 billion in 1970 to RM529 billion in 2008 Economy has transformed from an agro- based economy to manufacturingand services-based
1981 - 2005
Post 2005
Industrial Strategy
Import substitution Industries (1956-70) Export Oriented Industries (1970-80) Import substitution Industries (1980-85) Export Oriented Industries (19862005)
Industrial Policy
Pioneer Industries Ordinance Invest. Incentives Act, 1960 Ind. Coordination Act, 1975 Heavy industries
Emphasis
Simple consumer goods Domestic Market Orientation Export orientation Free Trade Zones Electronics & textiles exports Consumer durable Intermediate & capital goods Domestic market oriented goods Export penetration Cluster-based industries Strengthening industrial linkages Improve market focus & penetration Regional alliance for competitiveness
Upscale & value add manufacturing &
First IMP (1986-95) Promotion of Investment Act, 1986 Second IMP (1996-2005) Third IMP (2006-2020)
Achieving global competitiveness transformation & innovation of manufacturing & related services
related services through knowledge & innovation-based activities, eg. highend E&E ; petrochemicals; biotech; Shipbuilding Expand complementary business & services industries eg. logistics & engineering services
Forestry Manufactures Oil & gas Oil & gas Other Others Palm Oil Agriculture
Hong Kong
Other Countries Total Exports
15.4
51.7 334.3
4.6
15.5 100.0
28.7
100.1 480.7
6.0
20.8 100.0
28.3
188.9 663.5
4.3
28.5 100.0
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(% total households)
Note : Poverty Line Income (PLI) for 2007 was RM720 in Peninsular Malaysia (household size 4.2); RM960 in Sabah (household size 5.1); & RM830 in Sarawak (household size 4.6). Hardcore PLI was RM430 in Peninsular Malaysia (household size 7.2); RM540 in Sabah (household size 7.1); & RM520 in Sarawak (household size 7.3).
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DISTRIBUTION AGENDA
Focused on human resource development and quality of life improvements Emphasize income-generating projects and not on welfare handouts Major programmes : Rural development New land and in-situ development Drainage and irrigation Agriculture support services Village/small industries Upgrade rural infrastructure - roads, electricity, water Upgrade schools & health facilities Other programmes (hard-core poor) Direct assistance ~ old folks home / the aged, the handicapped food supplements and scholarships interest free loans
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Malaysia (RM) Year 1970a 1980 Overall 264 678 Urban 428 1,045 Rural 200 523
1990
1999 2004 2007b
Note :
a b
1,169
2,472 3,249 3,686
1,606
3,103 3,956 4,356
957
1,718 1,875 2,283
Average household income increased 6.5% per annum from RM678 in 1980 to RM3,686 in 2007 The increase is higher than the inflation rate at 3.1% per annum
Development Philosophy
Partners In Development . . .
through a MIXED ECONOMIC SYSTEM of free enterprise but with active government support and direction the GOVERNMENT provides the broad thrusts and sets direction for the whole economy, and ensures the achievements of socio-economic goals the PRIVATE SECTOR is free to operate and given appropriate policy, institutional and infrastructural support
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Total Population (000,000 persons) Citizens Bumiputera Chinese Indian Others Non Citizens Age Structure (years) 0 14 15 64 65+
28.10 25.41 16.91 6.31 1.90 0.29 2.66 7.70 19.10 1.27
PARLIAMENT Cabinet
Economic Planning Unit Mission Cluster Groups / IAPGs Federal Ministries Federal Agencies
Private Sector
State Governments
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Private Sector
Receive project proposal
Macroeconomic projections growth prospects in the medium and long term Major priority areas focus on economic and social sectors Previous commitments on-going projects need to be taken into account Role of public sector in the economy to support private sector initiatives Financing capacity financed through domestic savings or external borrowings
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Distributional Issues :
Growth & Equity Poverty Regional development Rural Development
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OUTCOME
Improved health status
Housing and Urban Services Constructing 70,000 units of low-cost houses Expanding OSCs and Local Agenda 21 Programme to all 144 local authorities Integrated solid waste management
Roads Construct roads to connect resettlement areas to rural industrial areas and estates particularly in Sabah and Sarawak Expanding rural electricity and water coverage
To increase road network coverage in Sabah and Sarawak Electricity 98.4% 82.6% 93.2% 95.5% Water Supply 96.0% 70.0% 95.0% 95.2%
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OUTCOMES, 2010
COMMITMENT
Family Development Conducting family development programmes for 60,000 participants Implementing Rakan Muda programmes for 1,750,000 youth Conducting National Service Programme for 766,000 youth Sports 2.5 million people participating in mass sport programmes Developing 14,570 athletes through talent identification programme Culture, Arts and Heritage Implementing 150 nationwide courtesy campaign, involving 300,000 participants Implementing 4,500 culture and arts activities Producing 1,500 Akademi Seni Budaya dan Warisan Kebangsaan (ASWARA) graduates
OUTCOME
Improved family well-being Empowered youth with positive attitudes Active and healthy lifestyle Better sporting excellence
Tolerant and harmonious society Enhanced appreciation of culture, arts and heritage
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FEDERAL
STATE
DISTRICT
To formulate and review all Plans for national development and make recommendations on the allocation of resources To review the causes of delays & difficulties in the implementation of national development plans and propose specific solutions To ascertain such adjustments in national development plans as may be necessary in the light of changes in the economic situation To use its discretion in making decisions itself or to refer to the Cabinet to discharge in the above functions To consider all subjects to be submitted to the Cabinet by Ministries and Departments which have a direct or indirect bearing on development
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Contents To provide guidelines on the preparation of 9th MP : Policies & Strategies for the new Plan period Macroeconomic Perspectives : macroeconomic thrust under the new plan (the private and the public sectors) i.e. macroeconomic framework, poverty & distribution, human resource development and regional balanced Sectoral Development : thrust for the priority sectors ~ manufacturing, services and agriculture, infrastructure & utilities, social services and privatization policy To receive the status report of the implementation of the 8th MP programmes and projects To obtain proposals on programmes and projects for the 9th MP from the Ministries/Agencies and the State Government continuation programs and projects from previous plan new programs and projects under the new plan Overall development allocations by states Program / project of the NFPEs R&D Projects Enquiries and Final date of submission To obtain inputs for the public sector development planning for the 9th MP period
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Main mechanism to gather information and inputs from public agencies, corporate sector, industry associations, professional bodies and NGOs Ministries/Departments/Public Agencies, State Governments, Private Sector and relevant stakeholders assist EPU to identify main issues, resource constraints as well as provide feedback about implementation at ground level
26.
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2. Ministry of Finance 3. Bank Negara Malaysia (Central Bank) 4. Department of Statistics 5. Ministry of International Trade & Industry 6. Malaysian Industrial Development Authority 7. National Productivity Corporation (NPC) 8. Small & Medium Scale Industry Dev. Corp. 9. Ministry of Agriculture & Agro-based Industry
Macro Perspectives
Population, Employment & Macroeconomic Feamework HRD Policy Objective & Framework Macroeconomic Performance & Regional Development Public Sector Program & Prospects Financing Poverty Eradication & Environment Restructuring of Society
Sectoral Perspectives
Tourism Distributive Trade Health Housing & Social Services Women & Development Youth Development International Cooperation Administrative Improvement
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Privatization Agriculture Development Industrial Development Infrastructure & Utilities Energy Science & Technology ICT Finance
Emphasise on balanced development, i.e. : Optimum balance between economic growth and equity Greater material welfare imbued with positive social and spiritual values Balanced regional development for national integration Balanced development of major sectors Human resource development Development and protection of environment and ecology
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Thrust 1
In achieving Thrust 1, Malaysia needs to: restructure the economy and strengthen production capacity utilise resources efficiently generate new activities that are knowledge intensive and high value added enhance private sector participation Three main pillars to drive Thrust 1: Enhancing productivity and competitiveness Generating new sources of growth Expanding markets for Malaysian products and services
Thrust 2
Raising the countrys capacity for knowledge and innovation, and nurturing first class mentality
FIRST CLASS MENTALITY
KNOWLEDGE INNOVATION VALUES
Thrust 3
Main focus . . .
1. Eradicating hardcore poverty & halving overall poverty 2. Reducing disparities in income, employment and wealth ownership 3. Developing competitive Bumiputera entrepreneurs 4. Reducing disparities in development between states, regions as well as between rural & urban areas
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Thrust 4
Health Care
Clean Environment
Family Development
Public Safety
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Thrust 5
Main focus . . .
Promoting good governance
3
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10.0
1980s 1990s
01-05
5.0
4.5%
5.5%
2003
2004
2005
0.0 70 73
7.2%
5.2% 5.9% 6.3% 4.8% -3.0%
97
76
79
82
85
88
91
94
00
03
06
09
0.5
0.5
-1.1
-5.0
1985/1986 Recession Asian Financial Crisis
-3.0 2008
Global Financial Crisis
-7.4
Note: f Forecast
36
36
-10.0