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2015 National Transformation Programme Annual Report English
2015 National Transformation Programme Annual Report English
Symbolic of our growing nation, the children represent the future of Malaysia.
ANNUAL
Our Jalur Gemilang signifies patriotism and optimism that our country is very
much grounded on. Hope, confidence, transparency, accountability and resilience
- these transformational qualities will drive our nation forward. The 2015 National
30 THE NTP
National Key Results Areas (NKRAs)
National Key Economic Areas (NKEAs)
Strategic Reform Initiatives (SRIs)
APPENDICES
289 ACKNOWLEDGEMENT
A NOTE FROM THE PRIME MINISTER
BUILDING
SOCIO-ECONOMIC
RESILIENCE AND
SUSTAINABILITY
years, it is clear the NTP released two Annual Reports – the Government
Transformation Programme (GTP) and the Economic
catalyst in improving public the nation, as well as to demonstrate the synergies between the
GTP and ETP, I am pleased to present the NTP Annual Report 2015.
This year's report combines both the GTP and ETP's achievements
service delivery through and challenges in 2015, whilst also highlighting the impact of the
various initiatives under the NTP since it started six years ago.
the GTP and reshaping the When we launched NTP in 2010, I recall the sense of
exhilaration and excitement many of us felt. We felt hopeful
dynamics of public-private that a much-needed programme to jumpstart Malaysia's growth
potential was about to unfold. Faced with a gargantuan task of
sector collaborations delivering a country into the high income bracket by 2020, my
foremost concern was whether we had the mettle to see through
through the ETP. the implementation of these goals.
UNITY IS
MALAYSIA'S
FOUNDATION
FOR THE
FUTURE
O
nly mid-way into the 10-year to create a more diversified, resilient subsidies to ease citizen’s cost of living,
NTP, Malaysia is evidently economy capable of weathering without having to overly tax a large
demonstrating signs of a volatile global economic patterns. base of the population.
successful turnaround. 2015 presents the opportunity The Asian Financial Crisis in 1998
Research commissioned by to look back on the halfway mark of was a sobering reminder that without
the staff of the World Bank Group the NTP and takes stock of progress sound fundamentals, continous
through the Competitive Industries achieved thus far. high growth and exuberance is
and Innovation Programme (CIIP) Strategically located between not sustainable. The nature of the
titled “Doing, Learning, Being: A giants such as India and China, history downturn was swift and debilitating,
Study of Malaysia’s Transformation reminds us that the Straits of Malacca requiring the Government to dig deep
Programme” 1 confirmed that once anchored bustling ports that into its coffers and reserves to combat
transformative results are being received people from all over the world shocks and keep the economy afloat
reaped as a result of methodologies plying the spice route and trading through pump-priming.
used to implement the National merchandise in Malaysia. Against the backdrop of the
Transformation Programme (NTP). Resource rich and capitalising on Global Financial Crisis (GFC) in 2009,
With a series of labs and roadmaps increasing industrialisation as opposed Malaysia’s GDP shrank 1.5 percent for
outlining key targets, enthusiastic to a predominantly agriculture based the first time since 1998’s 7.4 percent
stakeholders comprising public and economy in the past, Malaysia enjoyed GDP contraction.
private sector individuals as well as steady growth as a highly open upper- Saddled with an overhang of debt
civil groups stood ready to implement middle-income nation with per capita and deficit from the 1998 recession,
intricate ‘three-feet’ plans drawn up income rising 8.0 percent per year rising subsidy expenditure and weighed
in a series of labs designed to identify between 1970 and 2010, reaching down by challenges such as gaps in
and problem-solve prioritised national US$8,636 per capita. productivity and competitiveness, a
‘pain-points’. It is no surprise that under those diagnosis that Malaysia was stuck
Multilateral agencies such as the circumstances, the nation was able within the middle-income trap ensued,
International Monetary Fund and the to provide for its people amply, thus painting a desperate outlook of the
World Bank, as well as international entrenching the practice of blanket country’s future.
ratings agencies such as Standard
& Poor’s, Moody’s and Fitch have
commended the Government’s The New Economic Model
commitment to introduce structural
reforms that are able to boost the HIGH INCOME
country’s economic resilience. Target US$ 15,000
Overall, the true north target of GNI per capita by 2020
the NTP is aligned to the goals of
Malaysia’s New Economic Model
(NEM) to enable the country to
attain high income economy status
NEW
by 2020 through sustainable and
ECONOMIC
inclusive measures. Under the NTP, MODEL
the Government Transformation
Programme (GTP) was aimed at
improving public service delivery
and strengthening public institutions, INCLUSIVENESS SUSTAINABILITY
Enables all communities to benefit Meets present needs without
whilst the Economic Transformation from the wealth of the country compromising future generations
Programme (ETP) was designed
¹ Doing, Learning, Being: A Study of Malaysia’s Transformation Programme by Professor Charles Sabel, Professor of Law and Social Science, Columbia
Law School and Luke Jordan, a former World Bank development specialist, January 2015 (Source: https://www.theciip.org/sites/ciip/files/documents/
PEMANDU%20Study%20--Final.pdf)
2 In 2015, PEMANDU was tasked to review and recalibrate key performance indicators (KPIs) for the Reducing GRiB SRI, as divestment had been completed
by the 33 companies that had committed to do so at the launch of the SRIs in 2011. Furthermore, as reported in the Economic Transformation Report 2014,
“Government and state-owned companies have moved to institutionalise the process of divesting non-strategic assets in their operating models. Moving
forward, any divestment programme will be driven solely by their respective governance processes.”
3 In 2014, Public Service Delivery SRI was reassigned to the GTP as Public Service Delivery Transformation to allow for greater focus and integration
to effect faster delivery
134.5
comfortable shopping environment.
.3%
0 CAGR 5
Starting out in 2012 with just one 2006-201 101.3
110.9
98.7 100.5
92.4 92.4 95.8 94.8
PAKAR in Manjung, Perak with total 81.6 77.8 80.2
85.6 83.0 85.1
74.1
69.7
sales of RM384,081, this initiative has
recorded encouraging growth over the
Launch
years. As of 31 December 2015, there of ETP
investments into these areas have 9th Malaysian Plan 10th Malaysian Plan
People First,
Performance
Now
The introduction of the NTP
has transformed how civil service
approaches its work. Adopting more
dynamic, responsive and robust
problem solving methodologies,
there has been a vast improvement in
how the public service connects and
responds to the needs of the rakyat.
Much of this culture is embodied
in the work that we see being done
through NKRAs Anti-Corruption,
Crime and Public Service Delivery
Transformation (PSDT).
In 2015, Malaysia jumped seven
points in the World Bank’s Open Photo courtesy of BERNAMA Images
Budget Survey due to strengthened
oversight of the Auditor General secretariat to the Putrajaya Inquisition PPPs have signed integrity pledges
(AuG)’s Office, and the tabling of the for audit issues that go unresolved for with the Public-Private Partnership
AuG Report to three times a year – more than a year. Unit (UKAS).
both major initiatives under the Anti- Among other things the agency As one of the many key crime
Corruption NKRA. Malaysia achieved monitors all feedback from the auditees reduction initiatives, NKRA Crime
a score of 46 out of 100 on the overall on a quarterly basis and if necessary, introduced the Omnipresence/
Open Budget Index, slightly above the engages with them to resolve issues Residential Patrols initiative to
global average of 45, aligned with the that are still pending. increase police visibility on the streets
likes of India and the Ukraine, and Further, as testament to the and combat break-ins. Benchmarked
ahead of Thailand, Vietnam and Government’s commitment to plug against both of Seattle Police
China. Malaysia’s score has been leakages in Government contracts by Department and Michigan Police
gradually improving over time, from putting in place preventive measures Department’s Motorcycle Patrolling
35 in 2008 to 39 in 2010 and 2012. to curb corruption in the public sector, Units, over the last five years, the
The Auditor General’s Office’s up to 2014, NKRA Anti-Corruption initiative resulted in the arrest of 2,111
Follow-Up Audit Division (BSA) saw 574,592 Integrity Pacts pledged suspects by the Urban Residential
plays three major roles in overseeing under the initiative to implement Patrol units.
Government departments that have comprehensive integrity pacts for Taking a leaf out of the Police
been identified as having issues in the public-private partnerships (PPP) Performance Assessment League
AuG Report. projects. This initiative is designed based Table in England and Wales, the Balai
BSA manages the AuG’s on a similar model by Transparency League Table initiative also under
Dashboard which displays the latest International in recognising the need NKRA Reducing Crime promotes
actions taken by auditees to the major to adopt an international standard to a performance-based culture in
issues outlined in the Report, acts as strengthen public confidence on the the police force, and also further
the secretariat for the AuG Report’s governance of public spending. As encourages local police stations to
Action Committee (JTLKAN) and as a of 2015, all companies involved with reach out to local communities.
Creating a Business-
18 sub-sectors were liberalised
in 2012, where the implementation
Friendly Environment
process of these initiatives was done
in stages. 15 out of the 18 services sub-
sectors were liberalised in 2013. The
following year saw the liberalisation
The true measure of competitiveness and maturity of of the remaining three sub-sectors
as well as the removal of regulatory
a nation’s economy really lies its ability to be trade openly burden in sectors such as construction,
healthcare, professional services and
in a liberalised environment. Malaysia has over the years tertiary education.
In taking liberalisation further,
undertaken a policy of progressive liberalisation. The Malaysia is now a member country
liberalisation process is co-ordinated, monitored and guided in the Trans-Pacific Partnership
Agreement (TPPA). Consistent with
by the Malaysian Services Development Council (MSDC), national interests, the TPPA will further
enhance the competitiveness of the
chaired by the Minister of International Trade and Industry. country in regional and global markets.
The Narrowing Disparity SRI -
designed to further step-up capacity
A robust range of policy measures The standards ecosystem in building for Bumiputera entrepreneurs
designed to create the conditions for Malaysia has also been shaped to to result in improved representation
competition has built a foundation ensure Malaysian businesses are able in market equity, high value-added
for lasting growth. This is to facilitate to maintain their competitive edge occupations, and management
the creation of a more efficient, through the adoption of standards in positions has also been successful in
competitive and business-friendly their products and services. As of 2015, a the last five years.
environment in Malaysia that will total of 6,204 Malaysian Standards were Between 2010 and 2015, the
allow world-class, local champions developed by Standards Development Government’s Bumiputra Agenda
to thrive and attract valuable Agencies (SDAs) that have been Steering Unit (TERAJU) has provided
foreign investment. appointed by Standards Malaysia. Of RM63.39 billion worth of business
A key development under these, 3,622 standards are on par with opportunities, financing and human
the Competition, Standards and international standards. To further boost capital development through 23
Liberalisation SRI has been the standards compliance in Malaysia, programmes and initiatives for
enactment of the Competition Act the National Standards Compliance Bumiputera entrepreneurs.
2010. The Malaysia Competition Programme (NSCP) was launched in Potential Bumiputera companies
Commission (MyCC) was set up in 2014 by Standards Malaysia. have been provided facilitation and
April 2011 to enforce the Competition The true m e a s u re of assistance for Bursa Malaysia listings.
Act beginning 1 January, 2012 and its competitiveness and maturity of a These companies were given guidance
responsibilities include receiving and nation’s economy really lies its ability to develop their respective IPO plan
investigating complaints, issuing to be trade openly in a liberalised by TERAJU and Ekuinas to expedite
decisions and undertaking market environment. For Services, Malaysia new Bumiputera listings on Bursa
reviews to assess the nature and has over the years undertaken a policy Malaysia, as part of the Skim Jejak
level of competition within industries of progressive liberalisation. The Jaya Bumiputera (SJJB) programme. To
and sectors. liberalisation process is co-ordinated, date, 11 companies have been listed,
The initiative has gained much monitored and guided by the Malaysian growing total market capitalisation
traction as reflected in the number of Services Development Council (MSDC), of Bumiputera companies from
complaints received by MyCC, which chaired by the Minister of International RM1.93 billion to RM5.62 billion as of
grew from 8 in 2012 to 232 in 2015. Trade and Industry. December 2015.
Seeds for
and students down to the individual (MBMMBI) policy.
levels. Students are screened twice Given the polarities that had to be
Future Talent
a year to detect if any one is falling managed in implementing solutions
behind, upon which they will be to this problem, the Government
supported through targeted training chose a ‘middle ground’ approach
in remedial classes, allowing them and instead decentralised decision-
The Government has taken great to catch up with other students in the making on adoption of these policies
strides to enhance our labour pool mainstream classes. and empowered schools and parents
since the inception of the NTP in 2010. Poor quality of English among to decide on whether to implement
Efforts under NKRA Education, NKEA school students has been a matter these programmes. It is believed
Education, and SRI Human Capital of national concern for a long time that this would be the best decision
Development have borne fruits, and and after many careful deliberations, to move forward as the Government
will continue to do so. a major breakthrough was achieved focuses on ensuring a conducive
NKRA Education saw 132 High in 2015. learning environment.
Performing Schools (HPS) in a span Upon the conclusion of a Ministry The decentralisation of decision-
of five years, exceeding their target of of Education sponsored English making, giving power to schools and
100 schools under the GTP Roadmap Lab facilitated by the Education parents to decide on the best solutions
2.0, and in the process changing the Performance and Delivery Unit for students is a heartening move that
lives of many students. (PADU) and PEMANDU introduced could be a precursor to more exciting
With the focus now set on ensuring the Highly Immersive Programme developments in reforming Malaysia’s
that existing HPS continue to maintain (HIP) and Dual Language Programme education system and aligning
their standards and quality, the Ministry (DLP) for schools under the existing to become world-class.
of Education will continue to handhold
other potential schools to achieve “HPS”
status. In aspiring towards 2020, we
aspire for these schools to be the role
model for other schools, painting a
vision whereby other schools can
strive to be similar to these world-
class schools, as well as setting an
international benchmark.
What started as the Literacy
and Numeracy Screening (LINUS)
programme 1.0 which only included
Bahasa Malaysia in 2010 has seen the
inclusion of English in 2013, beginning
LINUS 2.0. In ensuring that exiting
Primary 3 students are competent in
the components of English, Bahasa
Malaysia and numeracy as its objective,
the year 2015 saw 94.1 percent of
English literate students, 98.6 percent
of Bahasa Malaysia literate students
and 99.1 percent being numerate.
Inclusiveness
Sustainable development required
that growth enablers must be delivered
to all citizens whether they live in
urban or rural settings. On that note,
NKRA Rural Development has been
hard at work in the far reaches of the
nation to deliver an equitable standard
of living for all Malaysians.
Efforts under GTP 2.0 have resulted
in 345,665 households nationwide now
having access to clean and treated
water, and 143,899 households having
24-hour electricity as of December 2015,
under both the Water Delivery and
Electricity Delivery initiatives. Both
initiatives hope to cater to 99 percent
of Malaysian households by 2020.
In striving to remove the stigma
associated with rehabilitated inmates
and to reduce the rate of recidivism,
NKRA Crime launched the Industrial
Prison Programme in 2013, at the
As we strive towards high-income and then meting out assistance, the inception of GTP 2.0. As of December 2015,
status, there will inevitably be clusters e-Kasih database (which captures the 1,757 inmates have completed certified
in society that will struggle to keep up. details of the households that require skills training under Sijil Kemahiran
In a span of five years, the NKRA teams assistance) received the United Nations Malaysia (SKM-SLDN), Sijil Kecekapan
Crime, Cost of Living, Low Income Public Service Award in 2012. Kemahiran (SKK-CIDB) and Program
Households and Rural Development In May 2013, the Asian Development Pemanduan Kenderaan Perdagangan
have implemented various to reduce Bank (ADB) acknowledged that (Metro). Aimed at upskilling inmates
disparity, and bridging the divide Malaysia has the biggest reduction to increase their chances of finding
between the economically well-off amongst other ASEAN countries on employment after their release, prisons
and the disadvantaged. the percentage of population below are set up with “in-house” bakery
Over the last five years the 1AZAM the poverty income line, recording a facilities with training provided. This
Programme has helped many families 55.3 percent reduction. initiative has also introduced an element
escape the hardships of poverty. Through The World Bank Report’s Economic of self-sufficiency, in which the bakery
six 1AZAM Programmes such as AZAM Monitor 2014 calls Malaysia “a success produces is own bread to the prisoners.
Tani, AZAM Niaga, AZAM Kerja, AZAM story in shared prosperity”, to mean This initiative emulates other
Khidmat, AZAM Bandar as well as all households experience income prison programmes around the
1AZAM Sabah and 1AZAM Sarawak, growth, but growth is higher for world such as the Prison Industry
which provide the means of generating those households at the bottom of Enhancement Certification Program in
sustainable income, financial assistance, the distribution, a pattern that leads the United States, Prison Industries in
skills training as well as motivation, the to lower inequality. In the report, the Australia, and Prisons Industries Unit
poverty rate fell from 3.8 percent in 2009 World Bank commended Malaysia for in the United Kingdom.
to less than 1 percent today. drawing on its natural resources over In aspiring towards 2020, this
As testament to the tremendous the last 40 years to nearly eradicate initiative hopes to see a greater
efforts reaching out to the needy to absolute poverty, from 49 percent in percentage drop in recidivism,
ascertain how they can be helped 1970 to 1 percent in 2014. a greater percentage increase in
Kuala Lumpur:
of our very own MRT system under
the Greater Kuala Lumpur/ Klang
5 6 As at December 2015
Meanwhile, LRT Kelana Jaya saw have continued to reinforce this. The launched the free city bus initiative,
RM1.65 billion worth in investments year 2015 saw Malaysia’s first ever GO-KL. With its zero-fare rate and 15-20
launch 35 sets of LRT Kelana Jaya’s Bus Rapid Transit, the BRT Sunway minutes frequency, 40,000 passengers
four-car train in March 2010, increasing operating with its intent of benefitting in a city of 1.7 million people enjoy its
its daily ridership to 19 percent a population of 500,000 with 5.4km free service daily.
compared to 2011. Frequency has since in Subang Jaya, taking a leaf from
been improved to 2.5 minutes during densely-populated cities such as
peak hour. Curitiba and Colombia.
The backbone of our public As a learning from cities such as
transport network is of course not Adelaide, Perth and Christchurch, the
without its support, and bus initiatives NKRA Urban Public Transport also
Sustaining Socio-Economic
Another challenge involves putting
in place a good framework to govern
Development Efforts
political funding in Malaysia as part
of efforts to ensure a level-playing
field in Malaysian politics. Although
recommendations have been made
The remaining five years, as we executives and employees alike over as early as 2010, this initiative has not
make the dash towards the 2020 the next five years. gained enough traction as politicians
deadline will be a crucial stretch As markets liberalise and with from both side of the divide do not see
that will require much effort from all the Trans-Pacific Partnership kicking the impetus to push for this reform. The
factions including the private sector. into action, local businesses must to setting up of the National Consultative
One of the reasons that Malaysia find ways to build top notch products Committee on Political Funding in
was left behind in the race towards high and services that can stand the test August 2015 provides some assurance
income by countries that started off on of competition with the best. On its but more work has to be done, and
the same footing as us, South Korea part, the Government will continue support to be won to push for better
for example was that Malaysia has not to facilitate and create a conducive regulation of political funding. This
been able to hit the right markers in environment for businesses to thrive. effort continues.
increasing productivity growth. There
was not enough impetus for innovation
or drive amongst local companies to Malaysian businesses must become more
win it big in the global market like what
brands such as Samsung and Hyundai globally competitive so there will be no need to quarrel
have achieved.
Malaysian businesses must become
in a small market like ours. Companies must realise
more globally competitive so there will
be no need to quarrel in a small market
that the Government can only facilitate a competitive
like ours. Companies must realise that environment but it cannot be the driver of innovation.
the Government can only facilitate a
competitive environment but it cannot This has to happen at companies, driven by executives
be the driver of innovation. This has
to happen at companies, driven by and employees alike over the next five years.
the Course
implementation of the NTP to
ensure relevance, sustainability and
inclusiveness for all.
The NTP is certainly yielding Ultimately, at the end of it all
positive results five years into the when the programme reaches its 2020
programme, and Malaysians can deadline, Malaysians will be able to
be confident that the country is on proclaim proudly that between 2010
the right track towards high income and 2020, the nation collectively
status. Whilst taking comfort in the came together and united to support
outcomes of the work done in the national transformation so that a better
last five years, it is crucial that all Malaysia could be delivered to future
parties stay the course to complete generations.
commitments made through the GTP
and ETP roadmaps.
GROWTH,
CONFIDENCE
AND RESILIENCE
DATO’ SRI IDRIS JALA
CHIEF EXECUTIVE OFFICER, PERFORMANCE MANAGEMENT AND DELIVERY UNIT
W
e began our two programmes have impacted
transformational Malaysia. The 2015 edition of
journey by taking an PEMANDU's Annual Report
interventionist approach, tackling illustrates Malaysia’s story of
challenges needing big, fast results. growth, confidence and resilience
Knowing that no Today, we have shifted gears to brought forth by transformation.
sustain and institutionalise the This report is a testament of the
journey is without changes. Since its launch in 2010, commitment of the civil service,
our transformation initiatives have private sector and many Malaysians,
its challenges, we progressed well according to plan, who have tirelessly contributed
Growth
by an infrastructure project of such an aspirations of the ETP to see increased
unprecedented scale in Malaysia. But participation of the private sector in
today, we are at a concluding phase of driving the economy forward.
The story of Malaysia has been Line 1 and very soon, the nation will In addition to growth, I would
consistently anchored on growth. be able to feel the impact of such an like to point out that despite the
This includes progress in Government, ambitious project. introduction of measures such as
progress in the economy and progress These stories of progress the Goods and Services Tax (GST) and
in society as a whole. highlighted throughout this report will the effects of subsidy rationalisation,
The Government today is better stand up to any amount of scrutiny, inflation remained in check, with the
positioned to deliver public services proving that the Government is Consumer Price Index (CPI) registering
effectively, and it has continually serious about improving outcomes 2.1 percent in 2015 compared to 3.2
sustained the work of building better for all Malaysians. percent in 2014.
standards of living for all. Contained All of them come under the banner When we prioritised growth in the
within our annual updates that follow of sustained economic growth that economy, we worked hard to ensure
in this report are stories of changed is private-sector-led. Coming in well that we had – and will always – take
lives brought forth by the shared above global growth of 2.4 percent a mildly expansionary approach. This
commitment to transformation. in 2015, Malaysia achieved a healthy measured and prudent strategy has
I am heartened and privileged to Gross Domestic Product (GDP) growth built our capability to attain growth
hear stories of hope and determination of 5 percent. Between 2010 and 2015, outcomes which have surpassed
from some of our fellow Malaysians, GDP grew 30 percent from RM797.3 estimates.
who witnessed to the remarkable billion to RM 1.13 trillion (Exhibit 5). It is clear that the measures taken by
social and economic transformation It is encouraging to note this Malaysia between 2010 and 2015 to be
in their midst. growth was fuelled by continued more fiscally resilient are bearing results.
Chik Azmily from Kelantan is
one of them. A salary of RM500 a
month as a daily labourer was not Growing Steadily With Low Inflation
cutting it for him, as it just wasn’t GDP at Current Prices (RM bil)
2016 GDP FORECAST
4.0%–4.5%
enough to support his family. Real GDP Growth Rates (%)
Consumer Price Index (%)
Through the 1AZAM Tani initiative, as
RM billion %
implemented by the good people from 1200
7.4
8
5.6
the 31-year-old managed to increase 800 5.2 5.0
5
4.7
his monthly income by an astounding 3.6 4.8
3.2 3.2
4
600 3
ten times to RM5,000, solidly boosting
2
his family out of hard-core poverty. 400
2.0 2.1 2.1
0.6 1.7 1.6 1
From individual stories of
0
transformation, we also have 200 Launch
of ETP
-1
remarkable stories of infrastructural -1.5
0 -2
changes. One that really stands 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
out is the thousands of Malaysians 9th Malaysian Plan 10th Malaysian Plan
coming together to bring the first
Source: Department of Statistics Malaysia, using current Prices
phase of the Klang Valley MRT Sungai
Buloh–Kajang (SBK) line into reality. Exhibit 5
Since 2013, Malaysia has remained in four percent of GDP or below (Exhibit 6). Meanwhile, Malaysia’s public
the fiscal “Safe Zone”. The “Safe Zone” In 2015, fiscal deficit continued to debt stood at 54.5 percent of GDP,
indicates the fiscal health of economies, be reduced according to target, at 3.2 remaining below the legislated debt
requiring that public debt be below 75 percent of GDP compared to 5.4 percent ceiling of 55 percent of GDP. Debt
percent of GDP while deficit is kept at in 2010. guaranteed by Federal Government
was at 15.3 percent of GDP in 2015.
Hence, even with all guaranteed
Malaysia In The “Safe Zone” debt consolidated, the Government
Public Debt (% of GDP) AS: Asia debt is below 70 percent, fulfilling
AF: Africa
250% EU: Europe the requirements for the “Safe Zone”.
Sovereign AS1 OC: Oceania
Crisis Level SA: South America Many governments aspire to
achieve this situation; but to get into
200%
EU8
this “Safe Zone”, tough and unpopular
policy decisions had to be made. In
150% AS2
EU2 EU9 the past year, we continued to develop
EU4
greater fiscal resilience by keeping on
AS8
100%
EU1
EU5
track with subsidy rationalisation
EU3
EU6
EU7
EU11 and reducing non-critical spending
2009 2010 2011 2012 2013 2014 2015
EU10
SA1
on supplies and services and asset
50% MALAYSIA AS9
AF1 AS3
AS5
AS6 OC2
AS10 purchases. In April 2015, the GST
AS4 OC1 was implemented, helping to create
AS7 Safe Zone
0% a buffer for Government revenue in
-12% -10% -8% -6% -4% -2% 0% 2%
the low-oil-price environment.
Surplus/Deficit (% of GDP)
Note: All figures are as of 2015 est.
Countries markers are masked and coded for confidentiality
Source: MOF; BNM; CIA World Factbook; PEMANDU Analysis
Exhibit 6
Confidence
is one of the factors contributing to investments in the country, with the
economic growth. remainder contributed by the public
and Validation
In 2015, private consumption, at sector (Exhibit 8).
52.4 percent of GDP, was four times Realised investments accelerated
more than public consumption at between 2011 and 2015 at a compound
In a recent note¹, Standard & Poor's 13.5 percent (Exhibit 7). Consumption annual growth rate (CAGR) of 8.3
Ratings Services (S&P) acknowledged as a whole now accounts for 65.9 percent, against 5.3 percent between
that Malaysia will remain on a steady percent of the GDP. This trend, which 2006 and 2010. This space, too, is
growth path, indicating that, "exports has persisted for the last five years, dominated by the private sector,
of manufactured goods and growth in is supported by a flourishing private following the implementation of the
private consumption and investment sector, increased investments, ETP in September 2010 (Exhibit 9).
are likely to drive this expansion". stable labour market conditions, This is an excellent lead-up to the
The recent private -sector and wage growth. aspiration of getting private-sector
performance in the economy can lend Over the last five years of economic players to own the lion’s share of the
evidence to this expected trajectory. transformation, the private sector has investments, targeted at 92 percent of
We have confidence that the private also grown to own a significantly larger total investments by 2020.
sector will continue to play its role in portion of the investment ratio. In 2015, It is absolutely necessary we do this,
driving consumption, which in turn, it contributed 65 percent of the total in the interest of pursuing sustainable
¹ S&P Affirms Malaysia's Foreign And Local Currency Ratings. Source: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1229527
134.5
the capabilities of the civil service, so
that it can deliver high-quality services
CAGR 5.3%
2006-2010
110.9
92.4 92.4
101.3 98.7 100.5
95.8 94.8
efficiently and effectively to the people,
85.6 85.1
81.6
74.1 77.8 80.2 83.0
as well as to build public confidence
69.7
and trust of the rakyat when they
Launch
witness such progress.
of ETP Partnerships have been formed
with various ministries, and their key
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
workflows have been examined and
9 Malaysian Plan
th
10 Malaysian Plan
th
Building
demand patterns, as larger economies In addition, like many other
like the US, the Eurozone and China countries with depreciating currencies
Resilience
worked on strengthening their own versus the US dollar, Malaysia is not
economies. unique in being impacted by this
2 PEMANDU estimate based on World Bank’s GNI per capita calculation using the Atlas Method
Petroleum Dividend Exploration (Oil & Gas MTJA) % Oil Revenue/Gov Revenue
39.6% 41.3%
36.8% 36.5% 35.4% 35.8%
33.7%
31.2%
30.0%
Malaysia’s ability
21.5%
to compete globally
is a result of our
capabilities to respond
proactively to economic
consequences brought
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revised
Estimate
Source: Ministry of Finance
Exhibit 12
forth by global volatility.
Agriculture 64.5
Education 9.0
Healthcare 9.8
Tourism 67.1
Exhibit 13
It is important to note that despite resilience will also be a narrative that Over 7.1 million Malaysians have
the need to review the country’s is inclusive. Priority for people living received Bantuan Rakyat 1Malaysia
Budget 2016 and take precautions in the rural areas and low-income (BR1M) assistance in 2015, of which
to buffer ourselves against the households remains paramount, in approximately 4.6 million households
possibility of a global recession, the our efforts to ensure that they enjoy have been receiving BR1M in 2014 and
Government is not cutting back on in our nation’s development and 2015. BR1M has been increased on an
capital development projects and economic bounty, and that the rising annual basis from its introduction at
will continue to stay the course in costs of living do not unduly burden RM500 per household (with a monthly
this regard. the rakyat, especially the bottom 40 income of RM3,000 and below) to
Some of the larger projects percent of the income pyramid (B40). RM950 as of 2015.
in the country, such as the MRT Our transformation journey has By channelling lesser resources
development and the Pengerang worked towards a commitment for towards more targeted groups, we were
Integrated Petroleum Complex, a more targeted and coordinated able to channel resources to create
continue unhindered even in the face social benefits system. Towards this greater impact and at the same time
of a slowing economy. end, BR1M, a targeted direct cash making our subsidy bill more efficient.
The Government also remains assistance for households earning This is to ensure that nobody gets left
committed to ensure that the Malaysia less than RM4,000 per month, has behind in our national transformation
story of growth, confidence and been assisting those who are in need. journey towards high income.
Focus and
The public sector must not waver in
its pursuit of refining and improving
Staying on
on the quality of service delivery, whilst
being accountable and transparent in
Track
their delivery.
I cannot stress enough the
importance of maintaining the
momentum that has been built in the
There is no doubt that 2016 will last six years in order for us to attain
be a challenging year for our country high-income status in inclusive and
due to the challenging global economy. sustainable ways.
Like all other nations, Malaysia will be Knowing that no journey is without
affected but we can take comfort that its challenges, we step into 2016 from
even in these trying times, instead of a position of strength, will to succeed
experiencing a contraction, Malaysia’s and determination to keep going till
economy registered a modest growth we reach 2020 when we will become
of 5 percent in 2015, with external a high-income nation.
agencies such as World Bank, IMF,
Moody’s and others commending the
Government for having taken the right The work does
measures to diversify the economy and
build fiscal resilience. not stop here. With
The hard work carried out and
tough decisions taken in these last
four more years
few years since the beginning of the left to the reach
NTP is yielding positive results. We
can sustain growth. We continue to the NTP’s finishing
command confidence. We are resilient
in the face of global challenges.
line by 2020, the
The work does not stop here. With Government, together
four more years left to the reach the
NTP’s finishing line by 2020, the with the private
Government, together with the private
sector, must remain resolute, stay
sector, must remain
the course and remain committed resolute, stay the
to seeing this programme to its
completion in 2020. course and remain
One of the areas of priority in these
next few years would be to nurture
committed to seeing
more ‘Malaysian champions’. Local
companies must continue to step
this programme to its
up innovation to be able to thrive completion in 2020.
BETTER AND
AHMAD ZAHID HAMIDI
DEPUTY PRIME MINISTER OF MALAYSIA
SAFETY NETS
a priority area for the Government;
namely, by alleviating the economic
burden of a society adjusting to the
IS KEY
nation’s transition towards high-
income status by 2020.
The COL NKRA is notably
distinct from the other six NKRAs.
It addresses the concerns of
the rakyat through continual
reactive measures – social
safety net initiatives delivered
on a needs-basis in response to
market conditions – to safeguard
the welfare of Malaysians, in
particular the bottom 40 percent
(B40) in economic terms. Through
this NKRA, short-term and
immediate relief is delivered to
vulnerable segments of society,
helping them cope with the rising
cost of living and better managing
their households’ expenditures.
Reflecting on 2015, a few
important milestones were
achieved to help the government
arrive at a more efficient and less
burdensome public expenditure
T
more funds to the government
hrough the NTP, the Government
to help alleviate the rakyat’s cost
has introduced a number of INSIDE THIS NKRA
burdens.
targeted initiatives to cushion
The introduction of GST and
subsidy rationalisation activities,
the B40 group against economic 1 Direct Assistance
to Those In Need
uncertainties and to support them to
while important, have indirectly become more financially resilient.
contributed to the increase in The COL NKRA takes two
approaches in accomplishing its
2 Increasing Accessibility
to Basic Amenities
prices for goods and services,
objective of providing immediate relief
which places additional pressure
to the rakyat. Firstly, by providing
on the rakyat. Acknowledging the targeted direct cash assistance through
importance of these measures programmes such as BR1M (Bantuan
in strengthening the country’s Rakyat 1Malaysia), BB1M (Baucar Buku
long-term financial resilience, 1Malaysia) and BKAP1M (Bantuan
the government will continue Khas Awal Persekolahan 1Malaysia).
Secondly, through the increase of
to mitigate such price impacts
the availability of (and accessibility
and stay focused in rolling out
to) affordable basic necessities and
COL NKRA initiatives to support services such as K1M (Klinik 1Malaysia),
Malaysians in need for as long KR1M (Kedai Rakyat 1Malaysia) and
as necessary. MR1M (Menu Rakyat 1 Malaysia).
A
s a beneficiary of the BKAP1M school expenses,” she says. “However,
initiative, mother Alliene Ong with the rising cost of goods presently, for
is quite appreciative of the its true impact to be really felt, I suggest
Government’s efforts to cushion the that the aid amount per student should be
impact of school necessities on her budget. raised to RM300 per year. Still, any aid is
“I have a daughter who is 16 years old this better than none, and I am not personally
year. She is in Form Four, and has been aware of any other country that has such
receiving the BKAP1M assistance for the an initiative in place, so I gratefully accept
past three years now. The RM100 that the the BKAP1M aid, and am thankful that the
Government hands out at the start of every government provides such assistance to
year has been quite helpful in terms of the people who need it most.”
preparing for her studies,” she elaborates. Alliene believes that the government’s
Alliene uses the RM100 from BKAP1M move in giving this aid to the rakyat,
to buy her daughter’s school stationeries. as well as other COL NKRA initiatives,
“With my limited monthly household demonstrates its commitment to lighten
income and other expenses to budget the rakyat’s burden. “Although the KR1M,
for, BKAP1M has helped to somewhat for example, is out of my way so I do not
reduce the financial stress during the shop there so frequently, the concept is
Alliene Ong with her daughter, Aina Kamalia beginning of the year caused by all the still a good one,” she explains.
BENEFIT
FROM BB1M
PROGRAMME
U
niversiti Malaysia Sarawak stationery, for instance, I was able to that certain name brands are slightly
student Rachel Ruran Leong buy other things that helped with cheaper in the KR1M, but when I'm
is in her final year of a four- my courses that I otherwise could back visiting my kampong (village), the
year programme, and has been a not have.” KR1M means that we no longer have to
beneficiary of BB1M for the past three Both Rachel and Daniel agree that travel all the way to town to purchase
years since she started her course. the amount of the BB1M vouchers our daily necessities.”
She believes that she is one of the few should not be increased. Rachel Daniel, meanwhile, thinks that
who use it for its intended purpose believes that trying to help all students the existing initiatives are helpful. He
of purchasing textbooks, although purchase brand-new books for the believes that the Government should
she’s heard of others using it to buy entire year would not be the most amplify their communications on
stationery, hard disks or even shoes, efficient use of the funds required. these initiatives so that more people
the latter two especially during the first Daniel in turn feels that this initiative can benefit from them.
few years it was introduced. is supposed to be supplementary aid,
“I’m a very old-fashioned person; not full-fledged financial assistance.
I like using physical books, and my
university mostly uses international
“Though I feel there could be
a rebalancing of the amount of
By using the
textbooks from Pearson, Cambridge distribution over two semesters in a BB1M to buy textbooks
and the like, which can be expensive.
BB1M helps to somewhat reduce my
year, RM125 for each half, for example.
Having the voucher valid for three
and stationery, for
financial burden as a student, since I months only forces students to finish instance, I was able
prefer to purchase original, first-hand
textbooks where possible, and each
the whole RM250 in a single semester.
It does not encourage good planning
to buy other things
textbook can cost RM200-RM300,” and budgeting amongst students,” that helped with my
Rachel explains. he adds.
Daniel Darnas, who was on a study Nevertheless, Rachel likes BB1M.
courses that I otherwise
loan which covered his tuition and “It is a very good start, and I am happy could not have.
allowances at Swinburne University with the BB1M initiative as it stands,”
— Daniel Darnas
of Technology Sarawak, shared that she explains. She is also very happy
BB1M helped cushion his savings. “By with yet another COL NKRA initiative,
using the BB1M to buy textbooks and the KR1M. “While on campus, I find
(Top left) Services provided at K1M are no longer confined to outpatient care. Selected K1M now offers Maternal and Child Health. (Right) A food stall serving MR1M
dishes located at a Rest and Recreation area (R & R) in Rawang. Photo courtesy of BERNAMA Images. (Bottom left) KR1M outlet operates on a mini market format that
offers various basic necessities under the Kedai Rakyat 1 Malaysia (KR1M) label and sold up to 50 percent cheaper compared to other brands in the market
SUSTAINABLE
MINISTER OF RURAL AND REGIONAL DEVELOPMENT
COMMUNITIES
income nation, our national
development has continued to
emphasise being inclusive to
address the needs of the rakyat in
urban and rural areas.
The concerns of our fellow
Malaysians living in the rural
parts of Malaysia continue to be a
priority. Since we started the NTP
journey in 2010, our focus has been
to enhance and equip the rural
areas with the provision of basic
amenities, and to transform rural
areas into thriving and sustainable
centres of commerce.
Over the past 6 years, the
initiatives under the Improving
Rural Development NKRA (RD
NKRA) have impacted the lives of
over 5.567 million Malaysians in the
rural areas, through the delivery of
roads, clean/treated water, housing
and 24-hour electricity to improve
standards of living. From 2010 to
2015, the RD NKRA targeted 139,061
houses to be supplied with 24-
hour electricity, but by the end
I
to-urban movement. The rural
landscape can then support more nclusive development to create
successful and sustainable INSIDE THIS NKRA
high-value economic activities.
rural communities has been the
With better job prospects &
opportunities in their villages,
aspiration of the RD NKRA since the 1 Providing Universal Access
to Basic Amenities Through
beginning of Malaysia’s transformation Inclusive Development
people who moved out to the cities journey. First established as the Rural
may consider returning to revitalise
their communities.
Basic Infrastructure (RBI) NKRA in
2010, its main purpose was to ensure
2 Building Rural
Economies
Malaysians in rural areas were provided
with basic infrastructure such as
roads, water, electricity and housing.
Today, the majority of rural areas have such as eco-tourism and premium
access to basic infrastructure, through fruit farming have enabled various
initiatives that bring development in economic activities to be innovated,
rural areas, for the rakyat to enjoy further empowering entrepreneurs
amenities that are readily available in to be more independent, as well as
urban areas. provide better access to markets and
Sustainability beyond the provision business opportunities. Malaysians in
of basic amenities was the premise of these communities have since been
the RD NKRA’s 21st Century Village encouraged to remain in their villages
(21CV) programme that came into and still be part of the nation’s growth
being in 2012. Since then, initiatives and successes.
(Left) One of the attractions in Kampung Semelor, Perak is the village jetty under the Desa Lestari initiative
(Right) Cabin chalets constructed at some of the 10 villages under the Desa Lestari programme to encourage ecotourism
Major projects within the 21st harm the future of Malaysia’s resources. Under the implementation of Desa
Century Villages (21CV) programme Programmes under 21CV have Lestari, two iconic projects have been
were the main focus of the RD NKRA successfully transformed rural areas into introduced; namely, stingless bee
since 2012. Their successes have vibrant and attractive places to live, work farming project and the construction of
increased confidence that building and visit. The ‘Large Scale Fruit/Vegetable cabin chalets to spur the development
successful rural economies in Malaysia Farms’ Entry Point Project is one of the of homestay programmes. A total of
is an attainable goal. Residents in initiatives under 21CV that offers job 28 villages ventured in the stingless
Desa Lestari villages under the 21CV opportunities to the rural people. Farms bee farming project, achieving yearly
programme are enjoying higher of over 200 acres in size are planted with incomes between RM10,000 and
incomes and economic growth. different kinds of premium export-quality RM19,000. Meanwhile, 10 villages
Additionally, Rural Business Challenge fruits. Tonnes of pineapples, bananas, have participated in the construction
(RBC) winners are beginning to set papayas and melons are marketed within of cabin chalets as part of ecotourism
precedence for Malaysia’s youth in the country and abroad, reaching as far activities that generate between
reversing urban migration. All of this as Korea and Japan. RM18,000 and RM54,000 per annum.
is part of the effort to narrow disparities
by building sustained, high-income,
and value-added rural economies.
The 21CV programme was designed
to boost rural economies and make
them more attractive to the youth
in the community. Desa Lestari,
part of the 21CV programme, aims
to promote village communities to
take up high-value industries, create
skilled occupations and promote
‘green’ tourism. This way, the villages
can position themselves to be more
sustainable, as well as serve to be
Ecotourism activities have improved the livelihood of the rural people at Kampung Lonek,
unique tourist destinations that do not Negeri Sembilan
Kampung Bukit Bulat in Melaka winners have set up the ‘Persatuan her home in Sungai Petani immediately
and Kampung Lonek in Negeri Usahawan RBC Malaysia’ (Malaysian after graduation to start up her own
Sembilan are frontrunners of this RBC Entrepreneurs Association). It venture. According to her, this was
initiative. Kampung Bukit Bulat caters exclusively to RBC programme due to the abundance of business
villagers boast expertise in dealing with winners, so that they can help each opportunities available in Kedah.
stingless bee farming and crop farming. other further develop their ventures She started her own chocolate-making
The villagers also generate additional and diversify into other business business that has since seen her
income by packaging tourist activities opportunities. The association aims to brand “Hazleen Chocolate” expand
(nature tourism) with honey-hunting kick-start its long-term goals of having nationwide with offices in Sungai
expeditions, as well as promoting at least one RBC Mart and RBC Bistro in Petani, Klang and Kuantan.
honey products as organic, by virtue of every state commencing 2016.
zero chemicals used during harvesting. Since 2012, RBC has awarded Their successes
Both Kampung Bukit Bulat and RM59.07 million worth of grants to
Kampung Lonek generate about 77 aspiring young entrepreneurs who have increased
RM40,000 a year, with consistent year-
on-year increases in revenues. These
were running their businesses in the
rural areas. 2012 and 2013 winners
confidence
establishments also provide homestay (31 of them) have provided 213 job that building
chalets, tour-vans, commercial opportunities and created 180 new
activities, and traditional games/ entrepreneurs. The average increase successful rural
activities packages for tourists.
The RBC is also a key component
of income for 2012 winners in 2014 was
171 percent; for 2013 winners in 2015,
economies in
of the 21CV Programme. The RBC is
aimed at encouraging rural youth
the average increase was 106 percent.
For instance, Hazleen (one of the
Malaysia is an
entrepreneurship. Over the years, RBC winners of the RBC) returned back to attainable goal.
TRANSPORTATION
MINISTER OF TRANSPORT
A CHOICE
Enhancing and developing our
urban public transport system is
all the more necessary, given that
Malaysia is in a crucial phase of
transition, particularly in the
urban transportation ecosystem
as one of the seven National Key
Results Areas (NKRAs) under
the Government Transformation
Programme (GTP).
We are committed to deliver
efficient, cost-effective, reliable,
comfortable and safe public
transportation services to the people
especially within high-density
locations like the Greater Kuala
Lumpur/Klang Valley (GKL/KV) area.
We are on track to establish
a world-class urban public
transport system with heightened
convenience and reliability. Vision
2020 demands nothing less than
a city fully equipped with an
efficient and accessible public
transport system.
The introduction of the LRT
Line Extension Project (LEP) Phase
1 and the Sunway Bus Rapid Transit
(BRT) in 2015 are the latest chapters
in our transformation journey.
H
of larger transportation projects
like the LEP and Monorail that are aving public transport
INSIDE THIS NKRA
currently in progress, with the KL- become the preferred choice
for GKL/KV commuters
Klang BRT being planned.
We are very pleased to announce
underlines the efforts to transform the 1 Improving Connectivity
and Accessibility
city's transport system. The Improving
the launch of the completed LEP in Urban Public Transport (UPT) NKRA
2016 – Kelana Jaya and Sri Petaling
to Putra Heights – will have a
aims to create a reputable, reliable
service that enables one to easily
2 Customer Satisfaction
is a Critical Success Factor
TRANSIT IN MALAYSIA
COMMENCES SERVICE
W
hile the full benefits of more affordable than rail, as it is Shamsul sees the BRT as going
the BRT Sunway line merely a normal road with no track, through the inevitable teething
have not been realised electrification, or signalling, and uses problems of any new operation.
yet, it has shown positive signs while standard buses as ‘rolling stock’. The However, the existing ridership
being actively trialled during its first BRT would work equally well at-grade can be improved through better
two months. However, BRT Sunway’s (on ground level), which would reduce dissemination of information with
Chief Operating Officer Shamsul Rizal the costs tremendously.” The use regards to its benefits, including
reckons its true impact will only be of all-electric buses also helped cut the ability to plan one’s travel and
felt once various other projects come costs, as they run very quietly and did fare discounts. “I was speaking to
online. “Aside from the full phase of the not require the construction of noise a woman who said she had to catch
LEP (scheduled for mid-2016), mixed barriers or soundproofing. the bus at six in the morning, because
and commercial developments such as Shamsul highlights that capacity if she caught it any later, the traffic
Sunway Geo and the expansion of the could be easily increased via the usage jams would make her run late. When
Medical Centre will also contribute to of articulated buses or running buses I told her that the buses on the BRT
making the BRT a preferred mode of more frequently (or both). Currently, run every four minutes at peak, and
transport,” he adds. at peak hour, the BRT can already that they could make the full loop in
With a population of 500,000 transport 1,000 passengers per hour 32 minutes, I never saw her that early
served by three major highways (NPE, per direction. again,” he laughs.
LDP, KESAS), the busy township of
Sunway faces massive congestion in
the morning, as it also hosts several
tourist attractions. “The BRT aims to
help alleviate congestion and enable
Sunway residents to commute beyond
Sunway safely, conveniently and
comfortably, through connectivity with
the rest of the public transportation
network (LRT, KTM Komuter and bus),”
Shamsul explains.
The decision to adopt the BRT
system, which is relatively new to
Malaysia, was mostly due to its cost-
efficiency. “Building a fully-elevated
guideway was expensive, but it was
DEVELOPING A TRULY
INTEGRATED PUBLIC
TRANSPORTATION
NETWORK
Mohd. Azharuddin Mat Sah
CEO, Land Public Transport
Commission (SPAD)
W
ith the UPT NKRA’s aim to encompassing upgrade of the existing from Sungai Buloh to Kajang in 88
drive up the modal share Ampang (LRT1) and Kelana Jaya (LRT2) minutes. Already, the MRT is having
of public transportation Lines, and when fully completed, will positive economic impacts on areas
within GKL/KV to 40 percent of all provide for end-to-end connectivity like Balakong and Sungai Buloh (for
commutes by 2030, it is necessary that for both lines via the Putra Heights more information, refer to the KVMRT
the public transportation network is interchange station. “We are also – All Set To Go sidebar under the GKL/
integrated, convenient, accessible, taking the opportunity to upgrade our KV NKEA chapter).
easy to use and affordable when existing infrastructure, rolling stock, Meanwhile, SPAD is also looking
compared to driving. signalling systems and everything else, into improving all other modes of
Within GKL/KV, the public especially on the Ampang line, which public transportation for first- and
transportation master plan states that has been in existence for 20 years,” last-mile connectivity, including bus
rail service is the backbone of such he elaborated. and taxi services.
an integrated network. Throughout Already, the first phase of the LEP The Bus Network Revamp (BNR)
2015, the UPT NKRA has seen both has seen an average daily ridership of is one such initiative put in place in
the addition of much-needed capacity 4,000 since it opened in end-October December 2015. Its objectives are to
to existing rail services, as well as 2015. “Our Park ‘n’ Ride facilities are increase bus area coverage by up to
the construction of large-scale rail constantly full, taking around 2,000 17 percent (including previously under-
infrastructural projects. These are cars off the roads,” Dato’ Zohari served routes), increase frequencies, as
starting to come online, with the first enthuses, pointing out that such a well as enhance operator performance
Klang Valley MRT line scheduled to response from the residents of the and bus network efficiency.
begin operations by the end of 2016, surrounding areas implies they found “We’ve allocated specific routes
and the full LEP to begin in mid-2016. the LRT more convenient than driving. to each operator, with a view to
As Prasarana Rail and The Klang Valley MRT promises to improve their services, and we
Infrastructure Projects Sdn. Bhd. be equally advantageous to residents intend to monitor them better,”
(PRAISE) CEO Dato’ Ir. Zohari of Klang Valley, initially offering a SPAD CEO Mohd. Azharuddin Mat
Sulaiman points out, the LEP is an all- comfortable, state-of-the-art journey Sah explained.
CREATING GREATER
ACCESS TO AN INTEGRATED
TRANSPORT NETWORK
One of our key
T
he long-awaited Gombak The ITTs were the outcome of a
Integrated Transport Terminal, UPT lab held in 2009, with the aim of
POVERTY PART
MINISTER OF WOMEN, FAMILY
AND COMMUNITY DEVELOPMENT
OF INCLUSIVE
In transforming Malaysia into
a high-income developed nation
by 2020, we will not leave the
PROGRAMME
most vulnerable groups behind,
through our efforts that are both
socially responsible and targeted
to Malaysians living below the
poverty line. Over the last six years,
the national poverty level has been
steadily dropping; from 3.8 percent
in 2009 to 0.6 percent in 2014. This
accomplishment is the result of the
combined initiatives from both
private and public sectors.
These efforts should not be
underestimate because the reality
is that it has not been the easiest
road to travel. Some of our lowest-
income households live in the
most remote parts of Malaysia,
requiring the use of waterborne
and airborne transport to get to
them. Prior to our inclusive NTP
work, many Malaysians lived in
areas without basic utilities like
running water, electricity, and
roads. I applaud and respect the
dedication of our civil servants,
Participants at the 1AZAM Training Centre, Kuching
A
The multi-pronged 1AZAM
(A k h i r i Zaman Miskin) s the nation transitions
towards high income status, INSIDE THIS NKRA
programme, delivered in tandem
policies and initiatives that
with NGOs that know the ground
better, continues to eradicate
provide safety nets for vulnerable 1 Optimal Resource Allocation
As a first step, the Implementation is the 1AZAM programme, which is welcomed the participation of non-
and Coordination Unit (ICU) designed to be flexible to cater to all governmental organisations (NGOs)
established the e-Kasih database the different groups, and hence is and private sector partners to help fund
that hosts the details of all low- divided into several focus areas. and support programmes that relieve
income households in the country. Winning the fight against poverty poverty. These programmes are partner-
This database is the key driver for all is best done in a holistic fashion and driven; the NKRA implementation
the other initiatives that aim to raise in collaboration with other parties teams, with the necessary support,
the living standards of the registered who are similarly involved. Therefore, are there to set up governance
individuals. One of the initiatives the government has enlisted and and reporting frameworks.
AZAM Tani focuses on agricultural and agro-based activities by providing training, farming equipment, and financial assistance to aspiring farmers
or livestock breeders
Meeting the NKRA’s main objectives training, farming equipment, and implementing all the other AZAM
means properly equipping low- financial assistance to aspiring channels listed above.
income households so that they can farmers or livestock breeders. AZAM The 1AZAM Programme has moved
earn a good living while contributing Niaga provides support for potential to the Beyond 1AZAM programme, as
productively to the economy. To entrepreneurs with business coaching its aspiration is to have all 1AZAM
implement the initiatives effectively, and micro-lending. AZAM Kerja helps participants enter into a sustainable
the appropriate initiatives must be with job matching and placement, as programme via microfinancing
properly channelled to their intended well as teaching applicants how to opportunities. 1AZAM participants
recipients. Since its inception in 2011, better present themselves to appeal who have received material assistance
e-Kasih has connected its beneficiaries to hiring managers for their desired and training, and have successfully
with the right 1AZAM focus areas. Aside jobs. AZAM Khidmat gives training moved out of poverty into the lower-
from government agency programmes, for the services industry and the middle-income group, will be further
1AZAM also features projects from self-employed, as well as microloans assisted through this programme. In
NGOs. Once 1AZAM recipients have and equipment. AZAM Bandar this phase, material aid is no longer
found their feet, the Beyond 1AZAM concentrates on activities which needed. However, participants are still
programme kicks in for selected benefit the urban poor. given all the support they need in terms
high-achieving individuals to further In East Malaysia, 1AZAM Sabah of training, mentorship, coaching and
enhance their capabilities and increase and 1AZAM Sarawak are separately other such help to ensure they obtain a
their earning potential. operated by their respective minimum 50 percent increase in their
AZAM Tani focuses on agricultural autonomous state governments. income from existing 1AZAM projects
and agro-based activities by providing They are the ones responsible for for three months or more.
SUSTAINABLE LIVELIHOOD
THROUGH 1AZAM
1 AZAM initiatives have impacted
the lives of many low-income
families, especially those in
less-developed areas. For example,
31-year-old (as of 2015) Chik Azmily
his farming, as well as start farming
kelulut/stingless bees for their honey.
He intends to expand his agricultural
activities by renting abandoned/
unused plots of land. He also plans
Kelantan, who joined the initiative in
2012. The 64-year-old Tiu was similarly
assisted with agricultural equipment
and inputs, which he put to full use
on a 1-acre piece of land. In addition,
Che Abdul Aziz, who hails from to sell the produce on his own in Tiu has gone into kelulut farming as
Kampung Beoh Gunong in Kelantan, nearby farmers’ markets, rather than well. This has enabled him to double
was earning RM500 a month as a daily go through the wholesalers. his monthly income from RM500 to
labourer hired to look after the home 1AZAM Tani has also benefitted Tiu RM1,000, despite the fact that the crops
gardens of others, as well as harvest Hock Tong of Kg. Pasir Parit, also in are not harvested round-the-year.
oil palm fruits.
Through the 1AZAM Tani initiative
as implemented by the Malaysian
Agricultural Research and Development
Institute (MARDI), which Che Azmily
participated in from 2013, he was
provided agricultural equipment and
inputs (seeds, fertiliser and herbicides/
insecticides). Meanwhile, his wife was
provided sewing machines to help her
with her tailoring work. This enabled
him to plant short-term seasonal cash
crops such as cucumbers, tubers, leafy
vegetables and watermelons, which he
then sells to wholesalers. Meanwhile,
his wife has been awarded a contract
to tailor batik shirts from the owner of
a batik factory.
Che Azmily had managed to
increase his monthly income by
an astounding 1,000 percent (or 10
times) to RM5,000, solidly boosting
his family out of hardcore poverty.
1AZAM Tani has allowed him to start
constructing a house using materials Chik Azmily (top) and Tiu Hock Tong (bottom) experience an increase in monthly incomes with
he bought with the proceeds from assistance from 1AZAM Tani
(Left) Build capacity through training - sewing skills to generate income (Right) KPWKM’s visit to Tasputra, a centre for handicapped children
DATO’ SERI
MAHDZIR KHALID
MINISTER OF EDUCATION
RAISING
To this end, we have focused on
initiatives that raise the quality
of our educational system and
QUALITY
have over the last six years moved
towards putting a performance-
oriented culture of learning and
THROUGH
academia in place.
Our National Transformation
PERFORMANCE-
Programme (NTP) initiatives are a
subset of the Malaysia Education
Blueprint (MEB), which provides
DRIVEN
guidelines on how to improve
Malaysia’s educational system in
support of our nation’s goals. Our
CULTURE
objective here is to lay a robust
foundation to deliver quality
education to our children and
ensure the sustainability of its
delivery over time.
T
scientifically and culturally.
he Assuring Quality Education
National Key Results Area INSIDE THIS NKRA
(EDU NKRA) has focused on
improving the quality of education 1 Access to Early Education
T
climbed up three bands to Band 4
and achieved a 92 percent pass rate he Employment Transition job training. Once they have turned 16
from an abysmal 0 percent in the Programme, part of the or older, the school also discusses the
UPSR English subject. The school Special Education Needs (SEN) students’ prospects with their parents,
also achieved an overall 60 percent initiative, has experienced some success who may be able to connect the school
pass rate in the UPSR examinations. in the short time it has been operating. with other business owners.
At the same time, schools with Sekolah Menengah Kebangsaan (SMK) One of the beneficiaries of this
Special Education Needs (SEN) students Jalan Reko, one of the schools taking programme is Ahmad Hudzeir
and facilities are seeing changes part in the programme, has had a SEN Mohamadiah. An alumnus of SMK
to how their needs are being met. class running since 1995, and in terms Jalan Reko, Ahmad is a barista who also
Several pilot programmes under the of physical accessibility, has installed prepares food at Aneka Selera Restaurant
SEN segment have been successfully ramps and ensured that SEN classrooms at Bandar Baru Bangi. The school had
implemented under the Public- are on the ground floor. SEN students here arranged for him to undergo training at
Private Partnership (PPP) model include those with both physical as well Kagumas Culinary Arts College in culinary
along with NGO support. The SEN as learning disabilities, and the school and hospitality skills.
Employment Transition Programme assesses their specific requirements before His employer, restaurant owner Zul
saw its implementation in five schools putting them in the appropriate levels. Azwan, commends Ahmad as one of his
across East and West Malaysia. Out of The school’s principal, Wan Roslan top employees, despite his shyness and
129 students who participated in the Wan Yaakob, believes that SEN students lack of social and communication skills.
industrial attachment component, 56 of should be capable of becoming self- He makes up for it with his skillfulness
them (43.4 percent) went on to full-time sufficient and living independently in food presentation. Zul has been hiring
employment. In Sabah, the programme of their parents. In order to provide workers with disabilities for 11 years, and
was carried out as a consortium with these students with the opportunities believes that with prior training before
17 other schools in collaboration to do so, SMK Jalan Reko works with entering the workforce, and a great deal of
with Kumpulan BTC, a local catering the Kagumas Culinary Arts College, patience when teaching them the ropes,
company. The programme is now Tesco Kajang and various restaurants they can become dedicated, reliable and
undergoing the process for nationwide in Bangi to provide skills and on-the- competent employees.
implementation. Another programme,
the Buddy Club initiative, sees SEN
students integrating with their
mainstream students from pre-school
all the way through to college. The
pilot programme debuted with the
use of football and tandem cycling
as the unifying platforms, and has
succeeded in bringing students
from both streams together. In 2015,
800 students from 18 schools were
involved in the Buddy Club initiative.
The programme will expand to another
30 schools in 2016.
TEACHERS
PLAY A
Fadzli Mohd Saleh
BM Teacher, Sekolah Kebangsaan
Bandar Utama Damansara (4)
CRITICAL
ROLE
C
ikgu Fadzli Mohd Saleh, Year Fadzli also feels that today’s that they become proper members
Six Coordinator and BM teacher students still respect teachers, if of society, and not just feeding them
at Sekolah Kebangsaan Bandar somewhat differently. “They think facts. Parents and the community at
Utama Damansara (4), has always felt of teachers more as their peers, large should realise this.”
that teaching was his vocation. “I was rather than as their elders. This is Cikgu Zakaria bin Muhammad,
the one educating and taking care of something each teacher has to be headmaster of the school, agrees.
my younger siblings, because both my clever in handling. Parents also play “Teachers play a critical role and
parents were working,” he explains. an important role in determining carry an amazing responsibility; our
Even as a younger teacher in an how their children treat teachers,” efforts and achievements should be
urban area, Fadzli was still regarded he elaborates. appreciated by the society. This is why
highly. Teachers were assumed to be Furthermore, Fadzli believes that those who want to become teachers
all-capable, so he was called in as a teaching is becoming a profession of must have a true vocation or calling.
community exemplar whenever there choice. “From my experience in this Without it, they will find it difficult to
were larger-scale events happening. school, many if not most teachers enter cope with the challenges we face on a
“I thought that as I get older, and the profession because they wanted to. daily basis.”
move to different places, that would Some are using it as a stepping-stone But it is all worth it in the end. “As
change – but even 20 years later, the towards other careers in the profession a Muslim, the teaching profession
community’s respect for me has not (such as becoming a lecturer or a is an extremely honourable one.
dimmed; still I’m called ‘Teacher’ subject-matter expert); others want Worldly riches cannot compare to the
instead of by name.” to continue as school teachers.” gratitude, blessings and well-wishes
While appreciation for the teaching However, there is a need to of my students because I have taught
profession may have declined, Fadzli make people perceive being a school them well,” Fadzli notes.
believes it depends on the individual teacher as seemingly reputable as Fadzli appreciates the MOE’s
teachers and how they play their role private-sector jobs such as becoming initiatives to develop more highly-
in the community. “If the teacher can a doctor or an architect. “More and skilled teachers and increase the
fulfil the high expectations that the more, teachers are being called upon appeal of the profession. “These
community places on him or her, then to be educators as well. This also initiatives – increasing the various
respect will be accorded.” entails disciplining the students, so District Education Offices’ (Pejabat
BUILDING TALENT
CAPACITY WITH
GREATER LANGUAGE
PROFICIENCY
B
oth High Immersion to support it through the creation of resource readiness in terms of teaching
Porgramme (HIP) and Dual events, activities, English programmes, capacity and capability to teach
Language Programme (DLP) teaching and learning; the students Mathematics and Science in English,
are optional programmes under the to take charge of their own personal (3) parental agreement (parents have to
Memartabatkan Bahasa Malaysia & development and learning; and also the sign a consent form should they want
Memperkukuh Bahasa Inggeris (Uphold parents and the community to provide their children to learn Mathematics
Bahasa Malaysia & Strengthen the additional support such as financial aid, and Science in English) and finally,
English Language) policy, which is corporate social responsibility (CSR) (4) for the school to meet or exceed the
meant to improve students’ English activity implementation and expertise. national average pass rate for BM. For
proficiency. These programmes are HIP will be rolled out in phases the first DLP cohort in 2016, schools are
initiatives introduced as a result of to all primary and secondary schools benchmarked against the 2014 UPSR BM
an English Lab held by MOE, and are in Malaysia by 2018. It will begin with Comprehension and Writing national
optional for schools. approximately 94 schools in February average of 1.85 for primary schools or
HIP aims to codify best practices 2016 and expand to a total of 1,200 the 2014 SPM BM national average of
of school leaders and scale them up schools by end 2016. 4.55 for secondary schools.
to all schools via sharing, learning Meanwhile, there will be Once a school qualifies as a DLP
and support. Through HIP, schools approximately 300 schools piloting school, it must have a minimum of 15
will be provided a toolkit including the DLP in 2016. DLP will see Science, students to have a class implementing
a self-assessment tool and a best Technology, Engineering and the teaching and learning of
practices guidebook on how to improve Mathematics (STEM) subjects in these Mathematics and Science in English.
the English proficiency of students schools being taught in English. DLP This must be verified with the written
through increased language immersion will begin for Primary One, Primary and signed consent of parents. This
and usage. HIP aims to create a peer Four, and Form One, beginning with flexible approach will empower schools,
learning and sharing environment Mathematics and Science subjects. district and state education offices
within schools, between schools and These qualifying schools were to customise the needs of students
with the community. selected on the basis of four different according to the wishes of parents.
This involves the principal in criteria: (1) the readiness of the school With DLP, a bottom-up approach is
leading the initiative; the teachers leadership to implement DLP, (2) introduced with the element of “choice”
MOVING FORWARD
M
any of the forthcoming an optimal educational strategy highly proficient in English will
initiatives under the EDU that works to everybody’s best find it easier to find employment,
NKRA are positioned interests. Also on the agenda are the communicate with international
to implement the MEB Wave Two’s revised curricula for primary and business partners better and have
policies spanning the years from secondary education in 2017, as well greater access to knowledge and
2016 to 2020, which are designed to as revamping student assessments academic resources. Malaysia will
carry out structural changes aimed at to emphasise Higher Order Thinking also benefit; it will be easier to
accelerating the pace of change in the Skills (HOTS) such as critical thinking conduct business and more foreign
education system. and problem solving. investments will likely be the result.
The EDU NKRA will intensify Enhanced English proficiency is At the same time, MOE will work to
its focus on increasing English a top priority for the government, ensure that new teachers exit training
proficiency throughout Malaysia. It as English remains the global with the minimum standard required
will also work to further empower business language, as well as the for English proficiency and that current
school leaders, teachers, parents language of the scientific community teachers undergo training to improve
and students alike in formulating internationally. Students who are their current standing.
FIGHTING
DATO’ SERI DR.
AHMAD ZAHID HAMIDI
DEPUTY PRIME MINISTER OF MALAYSIA AND
CRIME FOR
MINISTER OF HOME AFFAIRS
A SAFER
While Malaysia’s Index Crime
has been consistently trending
downward since the beginning of
MALAYSIA
our NKRA initiatives in 2010, the
larger picture concerns the right of
every Malaysian to be safe and to
feel safe, whether he is in his own
home or walking along the streets
of his neighbourhood.
With a focus on ensuring
the former, we also sought to
strengthen the latter by introducing
the Perception of Crime Indicator
(PCI) in partnership with Universiti
Sains Malaysia (USM) in 2015.
The PCI would measure how
safe Malaysians feel today and
to understand the factors that
drives a person’s fear of crime. The
results reminded us that efforts in
communicating and building trust
with the rakyat must continue in
tandem with other initiatives in
reducing overall crime today.
We are determined to continue
the initiatives that have contributed
to the overall decrease in Index
Crime since 2009, whilst also
introducing the Modern Policing
initiative to transform Royal
Malaysia Police (PDRM) via four
enablers - Service, Technology,
B
Ensuring our critical
infrastructure’s resilience is vital to oth actual crime rates, as well
as the rakyat’s perception INSIDE THIS NKRA
Malaysia’s security landscape. We
of crime rates, have to be
are working with private sector and
government partners at all levels
addressed and improved in order to 1 Modern Policing Initiative Designed
to Transform PDRM into a World
fully achieve a higher standard of Class Police Force by 2020
to develop an effective, holistic, living by 2020. All levels of Malaysian
critical infrastructure protection
and resiliency plan that centres
society have to be fully engaged in this
move towards curbing crime, just as
2 Maintaining Vital Police
Logistics to Improve
Efficiencies
the relevant government departments
on continued investments in
and agencies have also been working
business, technology, civil society,
and coordinating to achieve through 3 PCI: Bridging Perception
and Reality
government, and education. various crime reduction initiatives
The government will continue since 2010.
to invest in the nation's most Initiatives such as the Safe City
pressing short- and long-term Programme (built on Crime Prevention
security needs, including Through Environmental Design or
CPTED principles), the Omnipresence
modernising our 209-year-old
programme (especially at crime ‘hot
police force, strengthening security spots’), and the Community Policing
along our borders and allocating Programme have significantly reduced
critical resources to address the Index Crime by 45 percent from 2010-
threats of terrorism. 2015. Incidents of car theft have also
The threats to the public safety further decreased by 10 percent in 2015,
following a major 20 percent reduction
and security of Malaysians today
in 2014 as a result of a focused move to
are real. We must be ever-vigilant
cripple major car theft syndicates, which
and strive towards responsible, broke a 5 year rising trend (2009 - 2013)
dedicated and effective crime – proving that it is possible to achieve
prevention and policing. what was previously unthinkable.
The rakyat’s expectations of under GTP 2.0 that include strategies factors causing the rakyat’s fear of
PDRM’s service delivery to keep to become a community-oriented crime is a start towards identifying
improving and for law enforcement force, and carrying out intensive potential solutions. PDRM had
officers to be more customer- communication efforts to change previously been engaging with the
oriented, are increasing. Hence, the rakyat’s disbelief of its safety on public throughout the GTP via the
NKRA initiatives have also evolved the streets. International Liaison Unit (ILU), a
to meet those expectations; from Today, the rakyat’s perception of special unit that looks after expats
purely focusing on crime reduction, its personal safety plays an integral and tourists, and open days at
improvement of the criminal justice role in its level of acceptance the local police stations/district
system, and increasing the public’s on whether the crime situation police headquarters. These public
satisfaction with frontline police has improved or worsened. The engagement initiatives assisted in
services in GTP 1.0 between 2010 to formulation of the Perception of providing greater public confidence
2012, to the 2012 to 2015 initiatives Crime Indicator (PCI) to gauge the towards the work PDRM is doing.
TRANSFORMING
ROYAL MALAYSIAN
POLICE INTO A
WORLD-CLASS FORCE
W
hile the incidence of Index S.K.K. Naidu, from the Brickfields entails changing the mindset of the
Crimes has dropped by Residents’ Association, agrees that a police from being law enforcers to being
45 percent since the sense of distance between police and community-and service-oriented;
beginning of the GTP in 2010, the the communities they serve makes law equipping the officers with the latest
public’s perception of crime rates has enforcement more difficult, pointing in mobile and ICT technologies to help
not improved. Between 90 percent out that when both parties work them fight crime more effectively;
(based on a Frost & Sullivan study together, they can take advantage of devolving authority to the balais and
conducted in 2013) and 96 percent synergistic effects in curbing crime giving them greater autonomy in
(based on a USM study conducted in through Community Policing. “When decision making; and simplifying both,
2015) of Malaysians surveyed believe we held ‘Talk to Us’ sessions at our public facing and backend processes
that crime rates have not dropped. local pasar malams (night markets), the to improve efficiency and make the
Deputy Commissioner of Police community was incredibly supportive experience of visiting the balai more
(DCP) Dato’ Asri bin Yusuff, who and provided PDRM with a great deal pleasant,” he explains.
is PDRM’s Deputy Director of of information. The same thing is true The pilot project is designed to
Management (Service/Personnel) at of our joint patrols with PDRM, because showcase an example of the modern
Bukit Aman, believes that this is in large residents can point out various spots frontline PDRM as a proof-of-concept
part due to the disengagement between of concern to them,” Naidu explained, that the Balai Transformation
the community and the police force who adding that while there is a lot that still project works to better fulfil the
serve and protect them. He aims to have needs to be done, he believes that the needs of the rakyat, as well as to act
this, along with other systemic issues, transformation of PDRM via Modern as a benchmark for the full rollout
addressed by the Modern Policing Policing will have a profound effect on nationwide in the near future. DCP
initiative. “Modern Policing is critical the ground. Asri also hopes that the pilot project’s
in our efforts to transform PDRM into Modern Policing starts off with success will serve to create a blueprint
becoming a world-class policing force the revamping of police stations (or or model for future stations.
by 2020. It is the only way we can make balais) under the Balai Transformation Modern Policing will further see
ourselves flexible enough to address the project. DCP Asri believes that the first more police in specific roles moved
ever-increasing security demands of the step in this process is to strengthen down from the district headquarters
21st Century.” the underlying STEP enablers. “This to the stations. In particular, the
investigating officers of crime and to potential criminals to sheer away. a significant amount of effort. “It
traffic incidents will be placed in the “There is a balance that has to be requires the IGP and our top cops to
stations. “Previously, these officers struck; too much police presence push the initiatives through, as well as
were located at the district HQ, which sends a different kind of message, for the new generation of police officers
meant that even after you’ve made but no doubt PDRM will know how to be trained into the proper mindset,”
your report, you would still have to get it just right.” Naidu opines.
to wait for the investigating officer. Both DCP Asri and Naidu are of “While this is a big and heavy task,
With Modern Policing, they will be the opinion that such a fundamental we have to do it to meet the expectations
right there in the balai, making the transformation of PDRM will entail of the rakyat,” DCP Asri says.
whole process more comfortable for
the rakyat,” DCP Asri elaborates.
In the long run, DCP Asri sees
PDRM itself being transformed from
being a force that polices the public
to one that facilitates public policing.
“We will engage the community more
closely, encouraging them to create
their own Police Volunteer Reserve
forces; also, we will support developers
of new residential projects to create
auxiliary police forces where possible.
Both forces will be provided on-duty
uniforms, and will have full police
powers when they are on duty.”
Naidu agrees that having an
increased uniformed presence on
the streets has a significant crime
deterrent impact, sending a message
T
their internal criteria measurement of
‘staying clean’, AADK introduced a new he Malaysian Prisons Department recidivism has been reduced by 100
KPI in 2015 to measure the percentage has put in place a three- percent in those who have undergone the
of Orang Kena Pengawasan (OKP) who phase criminal rehabilitation two focused courses as of 2015. In fact, the
are rehabilitated drug addicts who programme (Pelan Pembangunan first batch of bus-driving course-takers
have stayed clean for a minimum of one Ihsan) aimed at minimising recidivism, are fully employed, while 80 percent of
year. As of December 2015, the agency or ex-convicts re-entering a life of crime the second batch are also fully employed
has achieved 37 percent against their after serving their sentence. Where Phase with Maju Express Bhd, earning between
KPI target of 57 percent which is still One is a disciplining programme, and RM2,000 – RM4,000.
quite a substantial achievement of Phase Two involves character building, “ Wi t h n a t i o n a l ly- a cce p te d
5,980 OKPs remaining clean for a year. Phase Three provides properly-repentant certifications assessed by DSD, we see
As for the Prisons Department, prisoners with skills training. that the stigma of accepting ex-convicts
inmates are given practical training ACP Hj. Wan Ramzan, head of this as employees is gradually shrinking; the
and technical skillsets to find gainful particular NKRA initiative, points out companies involved in inmates’ practical
employment which in turn will reduce that since 2012, the Prisons Department training have seen the results, and are
the likelihood of going back to a life has provided skills training in 47 fields happy to hire them. Therefore, when
of crime. As of December 2015, 1758 (including high-tech areas). “As audited prisoners come out from prison, they
inmates have completed certified skills by PwC, we have achieved our KPI target are not only equipped with the skills
training under Sijil Kemahiran Malaysia of 1,500 prisoners undergoing skills they need to improve their lives, but
(SKM-SLDN), Sijil Kecekapan Kemahiran training,” he pointed out. sometimes also with a job offer in hand.
(SKK-CIDB) and Program Pemanduan Two of the courses that the Prisons Their parents are happy, because their
Kenderaan Perdagangan (Metro). Department has focused on include children are working proper jobs and even
Following the establishment of a the baking skills and commercial sending money (up to RM1,500 a month)
bakery-cum-training facility in Kajang driving. Baking skills are taught in back to them. The prisoners themselves
Prison in 2012, an additional facility three institutions; Kajang, Tapah and appreciate this initiative to improve
was commissioned in Kluang Prison Kluang. As a six-month certificate themselves and their employability,”
last year. The completion of the second course, when prisoners are released, Wan Ramzan discloses.
bakery decreased the training time for they can either become an entrepreneur
inmates, ensured more prisons are or work in bakeries. “The prisons are
self-sufficient in producing their own now self-sufficient in bread throughout
bread as a cost cutting measure as Peninsular Malaysia, and from North and
well as provided a commercial return Central regions alone, the costs savings
by supplying bread at local bakeries is RM1.2 million annually,” Wan Ramzan
and grocery stores. highlights. Meanwhile, two batches have
graduated the commercial vehicle (bus)
driving courses; 23 in the first, and 40 in
the second (completed in December 2015).
While data is not available for all 1,500
prisoners across all training courses,
3 PCI: Bridging Perception and Reality Dato’ Seri Dr. Ahmad Zahid Hamidi in
collaboration with the Malaysia Crime
Prevention Foundation was held in
November 2015 to have an open and
In 2015, the Perception of Crime Improving these indicators is a constructive discussion on issues of
Indicator (PCI) was developed using shared, collaborative effort involving crime and security under the United
the four indicators of ‘signals’, ‘my all parties. For example, fixing broken Against Crime banner. Leveraging on
space’, ‘amplifiers’ and ‘service’. Based streetlights requires that the relevant MCPF’s long history as one of the most
on the PCI baseline results in Dec 2015, authorities such as the local council active crime prevention NGO in the
Malaysians still don’t feel safe and the to be informed that they were broken. country, a series of Crime Roundtable
level of their fear of crime is quite high, Neighbourhood watches, organised sessions will be held nationwide in 2016
at around 80 percent. by the various Rukun Tetangga to maintain the initiative of obtaining
The formulation of the PCI is and Residents’ Associations are yet valuable and honest feedback from
aimed at providing clearer insights another thing the public should do / the rakyat. The NKRA also collaborated
into the causes of the rakyat’s fear of continue to do. with Safer Malaysia, a committee under
crime and clarifying the gap between The engagement approach in 2015 the Bar Council established to become
reported and perceived crime rates to improve public perception was a focal point for the communities to
that exists today. The PCI will also aid focused on opening the conversation share solutions on fighting crime and
in formulating the actions needed to on crime. The conversation took place specifically on educating children
be undertaken in order to improve the via monthly crime opinions published in that crime does not pay. Finally, in
public’s understanding of the true newspapers on topics ranging from car partnership with Astro Radio, a series
crime situation in Malaysia such as: theft to crime prevention and quarterly of public service announcements on
radio features on BFM and Lite FM crime prevention and safety tips were
Cleaning up the negative
featuring local crime fighting NGO, aired across three major radio stations
environmental and human signs
MARAH and top PDRM brass discussing (Lite FM, MY FM, Sinar FM).
i.e. drug addicts, Mat Rempits
on Modern Policing, Amanita and the By taking the above actions to address
(motorcycle hooligans), poor/
Tidak Apa Attitude of Malaysians. In these indicators in 2016 and continuing
broken lighting, dirty streets
addition, a Crime Roundtable Session the conversation on crime, the NKRA aims
Educating Malaysians to stop the officiated by YAB Deputy Prime Minister, to see better public perception as a result.
‘Tidak Apa Attitude’ (Doesn't Matter
Attitude)when witnessing a crime
Empowering PDRM to
ensure optimal response
time to crime incidents
Intensifying communications
on crime reduction efforts
and successes as well as
continual reminders to
not share unauthenticated
crime incidents, and
BREAKING
for healthy growth. It is a regressive
practice that robs society of the
standards of living that we should
THE VICIOUS
be aspiring towards.
Amongst the NKRAs,
corruption is one of the toughest
CYCLE OF
problems to tackle because it
involves breaking long-entrenched
practices that exist across
many levels within businesses,
CORRUPTION
Government and society.
A fundamental problem with
corruption lies in the fact that
as long as there is a giver, there
will be a taker and vice versa.
The culture of tolerance towards
corruption needs to be reversed,
while each and every one must
take ownership of the fight against
corruption by making a definite
stand that “we are the solution
and not the problem.”
Combating corruption, and
upholding good governance and
E
fforts to fight corruption are at public agencies can be seen as an
the forefront of national reform effort to curb corruption at the source. INSIDE THIS NKRA
agendas all over the world. Its core functions – amongst others –
They are among the highest national are to strengthen internal controls in 1 Institutionalsing Anti-Corruption
Measures
priorities in order to establish a good managing governance and integrity
and trust-worthy governance structure. issues within organisations, and
Curbing corruption in a holistic manner ensure that proper identification
requires systemic elimination of both and verification of offences are being 2 Private Sector Must Eliminate
Opportunities for Corruption
the givers and takers, which is why the conducted in a timely manner, and
NKRA initiatives target both the public also implement of follow-up actions
and private sector. including reporting to the relevant 3 Building the Foundation
for Integrity
The transformation of the enforcement agencies.
AuG Report tablines process in BITU, under the PM’s Department,
Parliament has been one of the is headed by Minister Senator Datuk
biggest achievements in GTP 2.0, and it Paul Low Seng Kuan. It oversees
continues to produce positive outcomes and coordinates programmes across commencement of a new anti-
in reducing leakages and wastages in different ministries and agencies to corruption syllabus in primary
government procurement procedures. ensure successful implementation. and secondary school textbooks is
We have also seen an increase in private In 2015, the National Conference for underway after multi-stakeholders
sector participation, from signing the JITU was held three times (February, engagements started a few years
Corporate Identity Pledge (CIP) to May and December) as a platform to ago. In addition, effort to engage
implementing measures in conjunction gather inputs from Integrity Officers at with students has been renewed; for
with the Corporate Integrity Systems all levels and propose remedial actions. instance, BITU has been associating
Malaysia (CISM) framework. Realising the importance to with the Youth for Integrity movement
The establishment of Integrity sensitise young Malaysians towards under the Empowering Youth
Units (IUs) in all government and integrity and accountability, the Endeavours NGO.
IMPROVING BUDGET
TRANSPARENCY SCORE
Datuk Juhari Haron
Director,
Follow-Up Audit
FOR MALAYSIA
Division (BSA)
T
he strengthened oversight as having issues in the AuG Report. Already, the BSA has seen a
of the AuG’s Office, and the “Firstly, the BSA manages the AuG’s significant amount of progress in the
increased tabling of the AuG Dashboard, which displays the latest way audit issues are being handled.
Report to three times a year – both major actions taken by auditees to the “Most government bodies are now
initiatives under the Anti-Corruption major issues outlined in the Report. more proactive in providing regular
NKRA - were primary contributors to Every quarter, the BSA will monitor status updates, and to ensure that
Malaysia’s 7-point jump in the World all feedback from the auditees and if their KPIs in terms of resolving
Bank’s Open Budget Survey. The survey necessary, engage with them to resolve audit issues in the AuG Report are
measures how central governments issues that are still pending (with achieved,” Datuk Juhari points out.
provide adequate public access to yellow or red statuses). He also said that these government
national budget information and “Secondly, it acts as the secretariat bodies were more co-operative and
opportunities to participate in the for the AuG Report’s Action Committee open to meet together with BSA to
budget process and is aimed at aimed (JTLKAN). The BSA identifies issues resolve any outstanding issues.
at assessing and promoting more open that require punitive action by the Nevertheless, BSA is preparing
and accountable budgeting, relevant enforcement authorities, so a proposal for the AuG to expand its
A total of 102 countries worldwide that the JTLKAN can deliberate over scope and allow it to conduct forensic
were ranked based on the degree of them and make the final decisions. audits. “Various government bodies
their respective governments’ budget “Thirdly, it also acts as the have formed Internal Audit units,
transparency, public participation and secretariat for the Putrajaya Inquisition, which monitor the feedback given
oversight. In 2015, Malaysia achieved if there are any audit issues that have by auditees and report them back to
a score of 46 out of 100 on the overall gone unresolved for more than a year. BSA to ensure checks-and-balances
Open Budget Index, an improvement Following a review and engaging with in status updates,” Datuk Juhari says.
from 35 in 2008 and 39 in 2010 and the auditees to identify and resolve “This proposal will allow us to directly
2012. This is slightly above the global the bottleneck, if the matters are still perform forensic audits on government
average of 45, aligned with the likes of unable to be resolved, the cases will be bodies that are red-flagged, based on
India and the Ukraine, and ahead of brought before the Inquisition.” the analysis of JTLKAN issues.
Thailand, Vietnam and China.
The Follow-Up Audit Division (BSA)
of the AuG’s Office is the main source
of that strengthened oversight, and is
tasked with handling issues that have
been brought up by the AuG Report.
Datuk Juhari Haron, the Director
of the BSA, explains that it plays three
major roles in overseeing government
departments that have been identified The AuG Dashboard is accessible online at https://agdashboard.audit.gov.my/#/
CONFIDENCE
A
ccording to Dato’ Sri result of negligence, or if they occurred
Mustafar Haji Ali, Deputy due to irresponsible management, the All sectors
Chief Commissioner corporation itself can be prosecuted
(Prevention) of MACC, the CISM is a and punished or sanctioned. It will benefit from the
best practice to nurture a framework be used to determine the extent to
of integrity in the private sector. By which a corporation as a legal person CISM, though
adopting the CISM, Dato’ Sri Mustafar
says, private-sector companies can
is liable for the acts and omissions of
the natural persons it employs,” Dato’
organisations that rely
proactively show their interest in
fostering a corporate culture that
Sri Mustafar explains.
With the CLP in place, MACC hopes
on investments from
shuns corruption. “All sectors benefit to see a more competitive market the public in terms of
from the CISM, though organisations and more responsibility by private
that rely on investments from the companies towards their customers deposits or shares may
public in terms of deposits or shares and stakeholders. “By having a
(i.e. listed companies and financial competitive market, we should benefit more, since the
institutions) may benefit more, since see government tenders providing
the implementation of CISM is a maximum benefits at optimal cost to implementation of CISM
confidence-builder,” he added. the taxpayers, while the companies’
At t h e m o m e n t , C I S M shareholders can look forward to more
is a confidence-builder.
implementation is based on the effective and efficient management of
good-will of the signatories and resources; hence, more profit,” Dato’
driven by their self-regulation. There Sri Mustafar points out.
are no statutes or other compliance He is also confident that the
measures that require CISM CLP will be beneficial to the public
signatories to abide to any proposal in general. “Currently, the issue
or recommendation from MACC. This of integrity has been the focus of
is set to change with the inclusion of various debates among the rakyat;
the CLP into the MACC Act. thus, the successful implementation
“CLP will examine the legal of CIP, CISM and CLP will increase
responsibility of a corporation for public confidence in the government
criminal actions (or inaction, in some and our economy as a whole. By
cases) performed by the company's taking this positive and proactive
employees. If such were done for the approach, investor confidence will
benefit of the company, or were the also be bolstered.”
CHAMPIONING
in late 2013. A total of 21 projects
have been completed; 10 having
been closed in 2015. These successes
PUBLIC SERVICE
serve as proofs-of-concept that
the successful implementation of
PSDT projects will see a marked
DELIVERY AS
improvement in the efficiency and
effectiveness of public services for
the rakyat. Following from these
EXEMPLARS OF
early successes the PSDT's primary
aim moving on is scalability.
There were 57 on-going projects
EXCELLENCE
throughout 2015, with 45 having
been initiated during the year
itself. Of the 16 ministries that have
participated in the PSDT NKRA so
far, 50 percent have opened more
PSDT projects upon completion
of their first pilot project.
T
ample opportunity for the public he Public Service Delivery
service to look for avenues to Transformation (PSDT) INSIDE THIS NKRA
optimise costs while extending NKRA aims to accelerate
high quality services to the rakyat. the Government’s efforts to become 1 Improving Efficiency, Expediting
Client-Oriented Services Delivery
more efficient and facilitative in
We look to continually
providing public services. It also aims
strengthen the delivery of
public services to the rakyat
to transform the country’s 1.3 million
civil servants into a motivated, high-
2 Continuous Innovation Key for Effective
Public Service Delivery
whilst addressing emerging performing workforce. This area of
needs resulting from Malaysia’s focus taps on individual projects
transformation into a high- within a particular ministry’s public 3 Piloting Projects for Effectiveness
intensive happening; mostly it was small a form of knowledge transfer, in that the their respective states. Ophthalmology
improvements to existing processes, but teams who are already familiar with the and Orthopaedics specialist clinics are
they all added up,” she adds. The results LEAN principles can go on and train other the next two areas earmarked to be rolled
were soon apparent – and so were the teams, and spread the ‘seed’ that way.” out nationwide using the ‘Agile’ approach.
benefits. Patients benefitted the most – As these hospitals internalise LEAN “The Healthcare PSDT concept focuses
waiting times had decreased, and they within their EDs and medical wards, on improving efficiency, and it is vital that
got beds faster – but because the work it is hoped that when MOH deploys it everybody is on the same page. When we
became more efficient, medical staff were to all government hospitals, as it has first started, nobody knew what ‘LEAN’
also happier. begun to do, the initial 16 hospitals can meant; today, everybody understands the
MOH’s approach in its nationwide be mentors to the other hospitals within tool,” Dr. Nor Akma points out.
deployment is predicated upon using the
‘Agile’ method of deployment introduced by
the PSDT NKRA team, starting with HTAR.
With the lessons learnt and appropriate
THE AGILE APPROACH
procedures/guidelines formulated as a
result of LEAN implementation in HTAR’s Sequential Approach Agile Approach
ED and medical wards, the ministry then
went into 12 state hospitals and three major No. of hospitals No. of hospitals
hospitals within Klang Valley. The learnings 6 6 133 133
from these 16 hospitals, including HTAR, 5
will be subsequently used to rollout LEAN 4
to the remaining 117 hospitals in batches 3
of 20 hospitals. 15
2
LEAN, and the philosophy behind the
1 1
‘Agile’ approach, has seen tremendous Months Months
uptake in the hospitals involved. HSI, 6 12 18 24 30 36 6 12 18 24 30 36
for instance, on its own initiative, has
started training up other departments Going to 117 hospitals nationwide in 2 years.
to implement LEAN, and these other
Total 133 LEAN-led hospitals in 3 years.
departments are beginning to show
improvement. “It’s not just a project, but
The objective to reduce this to 5 and workshops, the project team office whenever the head was absent.
working days and this was achieved revisited the current BOT workflow The project further introduced a cut-
by the pilot project. using process mapping. It identified off window for certain work processes
The JKM Melaka Tengah office was bottlenecks and their root causes, and performed during day-to-day operations.
chosen as the pilot site. The project brainstormed potential solutions for Through these and other measures,
involved several government agencies the issues identified. the target was successfully met.
within the Ministry aside than JKM, A key opportunity for transformation This resulted in potential savings
such as Institut Sosial Malaysia (ISM), identified in this project included the of RM126,000 per annum from this
Department for Women’s Development review of BOT applications only once pilot phase alone, and the increased
(JPW), National Population and Family every 24 months, upon which the availability of 26 staff (saving 14,976 man
Development Board (LPPKN), NAM continuation of the aid would only be hours per year, or RM112,320 per annum
Institute for the Empowerment of either approved or rejected. The roles of lost productivity). The savings from a
Women (NIEW), and representatives of staff and officers involved in the nationwide rollout to all JKM branches
from the Ministry as well as the Central BOT applications were restructured. would therefore be quite substantial.
Malacca District Social Welfare Office Authority to approve applications was Meanwhile, the shorter times led to
(PKMDMT). Over several discussions granted to the deputy head of the district increased customer satisfaction.
IMPROVING EFFECTIVENESS
OF KNOWLEDGE TRANSFER
PROGRAMMES
Under the auspices of MOHE, two
Knowledge Transfer Programme
(KTP) pilot projects were initiated.
These KTPs were, firstly, the use of eco-
friendly photo-catalyst technology to
produce good indoor air quality (IAQ)
in Malacca General Hospital, and
secondly, the recycling of municipal
organic waste via vermicomposting at
Melaka Sentral.
The first KTP project aimed
The IAQ level in Melaka Hospital (chosen as piloted site as a PSDT project) has improved with bacteria, fungus and
primarily at protecting IAQ; in this
volatile organic compounds having been eliminated after the spraying of TiO2 nano solution case, at the Malacca GH pilot site.
TRANSFERING KNOWLEDGE
Dr. Azni highlights. “As it is, this is
unsustainable over the long term.”
PEOPLES' LIVES
however, reduction of waste at source
remains an issue for households due
to human habits. “It is much easier to
change the way businesses manage
solid waste at source. Hence, we
targeted businesses, and wet markets
(and other grocery shops) generate
tonnes of waste every day,” Dr. Azni
points out. In total, fruit and vegetable
waste comprise 20 percent of solid waste
heading to the landfill.
Hence, the use of vermicomposting
to reduce organic waste from fruits and
vegetables matter. “Vermicomposting
is more convenient and cost-effective
compared to bacterial composting,
as it produces little to no odour, and
The KTP - Vermicomposting project at the Melaka Sentral wet market is one of the more successful pilots under the compost produced is very high in
PSDT NKRA. Not only has it resulted in reduced organic solid waste, it is also economically beneficial
fertiliser content. It is also a sustainable
T
activity, since the worms reproduce
he purpose of the Knowledge With vermicomposting, there is very themselves, and there is no shortage
Transfer Programme (KTP) is little needed in the way of facilities of inputs.”
to take new research ideas and or infrastructure; the input is literally Ismail bin Che Din, Landscape
knowledge from institutions of higher rubbish (organic waste from fruits and Architect and Senior Assistant
learning (via MOHE) and use it to solve vegetables), and it can easily be scaled Agricultural Officer at MBMB, was
pressing national issues for the benefit up from a single bin. involved in implementing this initiative
of the Malaysian society. In other words, Vermicomposting has been at the Pasar Besar in Melaka Sentral.
KTP aims to put academic research used elsewhere as a form of solid “I’ve always had an interest in organic
ideas to work in the real world. Once waste management. According to technology, and I love nature. Also,
the initial ideas have been proven to Senior Professor Dr. Azni Idris of MBMB has already been producing
be of practical value, the next step the Department of Chemical and our own compost from tree-pruning
would be to commercialise them for Environmental Engineering in University waste, having won the Malacca State
the benefit of the rakyat. In the case of Putra Malaysia, the lead implementer of Government Innovation Award (Non-
the KTP – Vermicomposting project, the this KTP project, solid waste is a much- ICT Category) in 2013.”
pilot beneficiary was the Malacca City discussed issue to this day. Much of the challenge encountered
Council (MBMB). “Traditionally, we the rakyat during the trial project was simply
KTP projects are selected based is used to letting the local councils coping with the vagaries of human
on their potential for success, their handle waste management issue; nature, and had very little to do with
positive impact to beneficiaries and this is to be expected, but as waste the technical aspects of it. “It was quite
their surroundings, and their alignment generators, we must do our part difficult to educate the public at the
to national interests. These projects as well. The government recently market not to simply throw away their
usually last about two years, with initial announced that RM2 billion is spent organic waste. Separation of organic
funding provided by the Government. every year on waste management,” and non-organic waste also remains an
PSDT projects
usually start out
small. They are first
tried out in one (or
at most a few) pilot
test sites or cases.
Once they have been
proven successful to
achieve their stated
aims, they are then
rolled out in stages.
They will gradually
expand to cover the
entire area under
the responsible
DBKL's Road Maintenance Transformation programme in 2015 saw it expand beyond the MRR1 to 20 main and party’s jurisdiction.
protocol roads, while still achieving 100 percent of its repair time targets carried over from before
GREATER
MINISTER OF FEDERAL TERRITORIES
KUALA
The Greater Kuala Lumpur
transformation journey towards
becoming a world class city has
LUMPUR/
just reached its midway point.
We are still very much on course
towards achieving our aspirations
KLANG
to transform Greater Kuala Lumpur
into a truly world class urban
setting that citizens can be proud
VALLEY
to call “home” by 2020.
Assessing the many
achievements and challenges from
WORLD
our current vantage point since
we began our journey in 2010, our
collective vision for Greater Kuala
CLASS
Lumpur is coming into clearer focus
with each passing year. We have
been resolute in implementing our
initiatives and I strongly believe we
are well on our way to achieve our
twin goals of becoming one of the
top economic and liveable cities by
the year 2020.
2015, on reflection, has indeed
been a successful year for the
Greater Kuala Lumpur/Klang
Valley (Greater KL/KV) NKEA.
Wi t h the i m p e n d i ng
completion of the first phase of
Malaysia’s first ever Mass Rapid
G
some of the biggest game changers
this city has seen. reater Kuala Lumpur/Klang
Valley (KL/KV) aspires to be INSIDE THIS NKEA
Enhancing liveability for all
a competitive world-class
citizens in the form of quality living,
well maintained recreational parks
metropolis, boasting top standards in 1 On Track Towards Game-Changing,
World-Class Infrastructure
business infrastructure and liveability.
and accessibility to amenities are NKEA Greater KL/KV initiatives
all part of our continued efforts to
make Greater Kuala Lumpur both an
are geared to ensure that identified
Entry Point Projects play an integral
2 Enhancing City Liveability
To prevent food waste from ending up in the river, DBKL installed Pasar Borong Kuala Lumpur WWTP cleans water discharge from the wet market
44 communal grease traps4 in 10 public food courts around into class IIB
Kuala Lumpur 1
Population equivalent (PE) refers to the equivalent in terms of a fixed population
of a varying or transient population or other activity, for example industrial or
The first phase of the interceptor drainage system began construction commercial contributing to flow to the sewerage treatment system
in 2015 along the Klang River that flows through Kuala Lumpur’s 2
A total of 528 gross pollutant traps have been installed since 2011
Heritage Quarter that is in the Masjid Jamek vicinity. The interceptor 3
Key Initiative 5 Package 1 and 2: Benteng Flood Retention Pond (Kolam
system has four plants and will be able to clean 200 litres/second Takungan Banjir Benteng)
(treatment capacity) volume of water and will manage 24 combined 4
A total of 98 communal grease traps have been installed since 2012 by DBKL
Additionally, there were also interface issues with the Light Rail Transit (LRT)
lines that run along one side of the river as well as unanticipated interface
risk in the construction site of the Countdown Clock. Significant delays in
the construction and completion of the Countdown Clock have also caused
Artist impression of Putra World Trade Centre and its
a five month delay in the river beautification works at the Pitcher Plant area surrounding areas at night
near St. Mary's Cathedral
In 2012, the Government had frozen many parcels
of land situated along the Klang River that flows
through the Federal Territory of Kuala Lumpur
with the plan to recoup project development cost
through the future development of these land parcels
at higher expected valuations
5
NKEA Trees = 45,566
Non-NKEA Trees = 39,372
Initiatives under this NKEA A GREENER KUALA LUMPUR ranks Kuala Lumpur at number 26 out
adopt a holistic approach towards DBKL’s Department of Landscape of 50 cities. This points to a need for
urban development by factoring in and Recreation Development aims to more efforts to be geared at improving
environmental impact and the well- increase green space in the city to soften scores in the areas of people and planet
being of KL-ites to improve liveability. the city-scape and improve liveability. in enhancing city liveability.
These efforts include the revitalisation As of 31 December 2015, 171,097
For 2016 to 2020, the Greener KL EPP
of iconic landmarks, such as the trees have been planted in the past four
is leaning towards mobilising the private
Gombak and Klang Rivers that run years by the local authority, public and
through the city, to increase community private sector under this initiative6. sector and NGOs to drive greening
interest in heritage sites as well as to Arcadis’s Sustainable Cities initiatives in the city by adopting more
ensure public amenities are able to cope Index 2015 - which benchmarks cities idle spaces as green parks as well as
with the increase in population. according to people, planet and profit - planting and maintaining more trees.
6 EPP 6 Greener KL
SHOWCASING KL’S
RICH HERITAGE SITES
In a bid to modernise Kuala Lumpur
and bringing it up to par with other
global cities, there is a need to preserve
historical and iconic landmarks. Under
the Greater Kuala Lumpur/Klang Valley
NKEA of EPP7: Iconic Places, a network
of heritage trails were developed along
the corridors of famous landmarks and
walkways of KL.
Three heritage trails have been
developed since 2011. Heritage Trail 1
starts at Masjid Negara passing through
Jalan Hishammuddin and Dataran
Merdeka, and ends at Medan Pasar.
Heritage Trail 2 begins at the
junction of Jalan Tun Perak and Jalan
Melaka heading towards Jalan Gereja
to arrive at Bukit Nenas.
Finally Heritage Trail 3 starts from
Medan Pasar through a portion of Jalan
Hang Kasturi then turning into Jalan
Petaling and Lebuh Pudu. The bus stop
in front of Bangkok Bank has been
closed and the area has been upgraded
with a café in the center of the square.
Infrastructure and roads along
these routes have been upgraded or
refurbished to feature the significance Medan Pasar has been extensively renovated
of these buildings and roads that have
stood through years of development. two new businesses for 2015 to achieve is located at the junction of Jalan Raja
Extensive renovations had been seven by end year. Laut and Jalan Parlimen. The project
made in the Medan Pasar area to With the Heritage Trail 5 phase 1 was scheduled for launch on 31st
make it another centre of urban plan approved, a contractor has been August 2015 but missed the deadline
activity in the heritage core of the appointed in December 2015 and civil due to several technical hurdles on site.
city centre. Several events including works are scheduled to be carried The project’s progress as 31 December
a “Raja Band Competition”, “KL out in 2016. Heritage Trail 5 starts 2015 was at 87 percent and members
Street Jam”, “Buy Nothing Day” and from Bulatan Dato Onn and connects of the public can look forward to the
a “Malam Wayang” have been staged to Jalan Parlimen heading to the CDC finally being completed in 2016.
at the venue, making it a centre of Parliament building. Moving forward, a pipeline
attraction for tourists and citizens Some areas with room for of new heritage trails have been
alike. Businesses have responded well improvement include the 2020 proposed and plans are underway to
to these developments, taking a keen Countdown Clock (CDC). The CDC, increase the visibility of these trails to
interest to be based at the area, driving which will feature a digital clock encourage the public to discover and
Medan Pasar to surpass its target of projected onto a water curtain, explore them.
As the economic
hub for the nation,
Greater KL will
continue to
experience rapid
urbanisation and
population growth.
This will increase
public demand
for basic services
and amenities,
including sanitation
and solid waste
Leachate holding pond, part of the Taman Beringin Leachate Treatment Plant. (Inset) Leachate sump management.
Additionally, in ensuring a Recommending options to In the pipeline, a Delivery Management
holistic approach in managing solid alleviate the Government’s Office (DMO) will be set up to monitor
waste issues in the country, a lab was financial burden in ensuring and implement lab outcomes. More
held from 27 May till 17 June 2015 sustainable solid waste emphasis will be given towards the
focusing on: management and public inclusion of industry players into the
cleansing activities solid waste management framework
Improving the execution
such as the establishment of the
and implementation of The lab outcomes will be
National Food Waste Plan and a
waste management (3R, implemented nationwide and
framework for the Catchment Area
Recovery, Treatment and with a clear intent of achieving
Needs Statement (CANS), which will
Disposal) in Malaysia the national target of 40 percent
assist efforts to facilitate more private
waste diversion from landfills, as
Addressing governance sector investments in the solid waste
well as 22 percent recycling rate by
issues in relation to solid management industry.
the year 2020. Following the lab,
waste management
a Separation At Source programme
Proposing structural and to promote the separation of garbage
policy adjustments including from households was launched in
enablers that will ensure September 2015 in all states adopting
longer term viability of solid Act 672 including Kuala Lumpur,
waste management and Putrajaya, Pahang, Negeri Sembilan,
public cleansing initiatives Melaka, Johor, Kedah and Perlis.
GETTING OUR TALENT top foreign talent, particularly & Retention (STAR) initiative, 1,019
STRATEGY RIGHT in areas of skill shortages and Government-funded scholars,
In order for Malaysia to maintain optimise on home-grown Malaysian including engineering, science and
its attractiveness as a regional professionals including promoting accounting students, graduating from
business and investment hub, Talent diversity and inclusion. both local and overseas universities
Corporation Malaysia (TalentCorp) has To enhance graduate such as from the UK, US, Germany and
been partnering leading companies to employability, TalentCorp continued Japan served their bond of service by
address the issue of talent availability to provide tax incentives on expenses working with private sector employers.
in key sectors driving Malaysia’s incurred by companies in hosting The World Bank in a June
economic growth. Towards this 17,967 undergraduates for structured 2015 report concluded that the
end, a wide-range of initiatives have internships; and co-funded training Returning Expert Programme
been introduced to enhance the programmes with the industry to (REP) has succeeded in attracting
employability of Malaysian graduates, upskill 7,153 fresh graduates to meet overseas Malaysians with the skills
engage global Malaysians to return industry requirements in 2015. Under that Malaysia needs. In 2015, 616
or contribute from abroad, facilitate the Scholarship Talent Attraction experienced Malaysian professionals
working abroad were approved for the
REP incentives. In line with the World
INVESTKL SPOTLIGHT Bank’s report recommendations,
TalentCorp has increasingly
Between 2011 and 2015, InvestKL square feet of office space, and generating worked with employers to connect
has attracted 51 MNCs with approved / an annual rental of RM40 million. This experienced Malaysians abroad with
committed investments totalling more than initiative is on track to reach its target of job opportunities in Malaysia.
RM5.9 billion and regional jobs totalling attracting top 100 MNCs by 2020. TalentCorp continues to enhance
more than 7,100. Out of this, RM 1.9 billion Also encouraging is increased
the ease of entry for highly skilled
of investment has been realised and more investments by MNCs who have already
than 4,700 regional jobs are on payroll. made Greater KL their regional base such expatriates, particularly in areas of skill
These investments have also generated as Schlumberger, International SOS, Service shortages in Malaysia. The Immigration
a multiplier effect in the office space rental Source and Linde as they experienced the Department and TalentCorp’s newly
sector with the MNCs taking up over 570,000 advantages of operating from Malaysia. opened Malaysia Expatriate Talent
Service Centre (MYXpats Centre)
achieved a 71.5 percent success rate in
2015 of processing employment passes
within its five-day client charter.
The Residence Pass-Talent (RP-T),
an initiative by TalentCorp and
the Immigration Department, was
assessed by the World Bank in 2015
to be an effective tool in retaining top
foreign talent in areas of skills gaps. In
2015, 1,113 expatriates were approved
the RP-T.
In 2015, TalentCorp also worked
closely with 20 leading employers
to adopt flexible work arrangement
as a key strategy to retain women
in the workforce and helped 256
women return to the workforce under
KL Mayor with Ambassadors the Career Comeback programme
launched last year.
ALL SET TO GO
completed according to schedule, and
the reasons for this include its efficient
working relationship with the Project
Delivery Partner (PDP) MMC-Gamuda
W
MMC-Gamuda is entrusted to
hen the first phase of the predictability with trains arriving every ensure the delivery is on time and
Klang Valley MRT Sungai 3.5 minutes during peak hours people within cost, failing which a penalty will
Buloh – Kajang (SBK) to plan their travels more effectively. be imposed. Hence, it is in the PDP’s
line begins operation at the end of According to Mass Rapid interest to push for timely delivery
2016, residents of Klang Valley who Transit Corporation Sdn Bhd (MRT within cost.
are constantly at the mercy of traffic Corp)’s Project Director for the MRT The MRT Exco, which comprises
jams can expect a game-changing Sungai Buloh-Kajang Line Marcus representatives from ministries,
transportation experience in the Greater Karakashian, this efficient train system government agencies including
Kuala Lumpur/Klang Valley area. will be supported by a regular feeder State Governments is a platform
The public can look forward to a bus service that plies residential and where all inter-agency issues are
clean, modern, fast and comfortable commercial areas, providing first to last discussed. “Since it is chaired by the
transportation system that allows them mile connectivity to commuters. Chief Secretary to the Government
to travel from Sungai Buloh to Kajang The Klang Valley MRT is one of the of Malaysia, Tan Sri Dr Ali Hamsa
in 88 minutes. Also, the luxury of very few mega projects that is being and represented by senior officials,
Doreen Ho
Manager Planning
and Design,
MRT Corp
ENGINEER RETURNS
into a vibrant and liveable water front
with high economic value, which also
contributes to elevating Kuala Lumpur
HOME TO SUPPORT
into one of the top liveable cities in the
world, like Melbourne and Singapore,
by the year 2020.”
TRANSFORMATION
and negativity; to some the idea of
turning what they thought was a
huge monsoon drain into something
beautiful was incredulous.”
A
She, however, pointed out that
fter more than 10 years of the River of Life Project,” said Doreen, as the project progressed, people
living and working as an who started working with US-based began to see the big picture, that it
engineer in Auckland, Kuala consultancy firm AECOM as a Senior was indeed possible to transform
Lumpur-born Doreen Ho decided that Engineer in 2012. the once forgotten river into a space
it was time to head back to Asia where AECOM was the consultancy worthy of celebration.
the tempo was picking up in terms of engaged to spearhead the RM1 billion The engineering graduate
infrastructure development. River Beautification project and who worked in two international
“I came to know about a job transformation of 10.7km of the Klang consultancies in Auckland and
opportunity in Kuala Lumpur via and Gombak Rivers. came back home under TalentCorp’s
a friend and applied for it. After a “I was even more excited to Returning Expert Programme, found
telephone interview, I was offered a discover that the River of Life project the transition from working life in New
position in an international consultancy, was part of the Greater KL/KV put in Zealand to Malaysia much harder than
which I later found out was working on place to transform the Klang River she had anticipated.
RIVER OF
LIFE PUBLIC
OUTREACH
PROGRAMME
(ROL-POP)
A
s part of the key initiatives for POP programme is heavily geared participation so they can have a better
Entry Point Project 5 (EPP5) towards the active participation of the understanding of the programme and
River of Life, the River of local communities. its aims. Via indirect methods, there
Life Public Outreach Programme As a civil science programme, at is media coverage to allow for a wider
(ROL-POP) aims to address river water the initial stage, it consists of creating audience to be reached.
pollution through non-structural awareness. At the implementation stage, The second stream, training and
measures by educating the public on it focuses on imparting knowledge and workshops is carried at different
the need to collectively care for the river skills to the community. Finally, the community levels to enhance their
and its water quality. The initiative also actions of the community are driven skills and knowledge in managing
promotes a sense of ownership towards in line with basin community needs. river water quality.
the river, and creates a long-term and The ROL-POP achieves its objective The third stream maintains
sustainable behavioural change in the via three streams. The ROL-POP momentum for on-going
public towards preserving the rivers. campaign and talks which make programmes and activities to sustain
The Department of Irrigation and up the first stream, brings the local stakeholder commitment via ROL
Drainage (DID) initiated this project community closer through direct outreach programmes.
with the involvement of 26 government
agencies and departments across
four Ministries, two states and three
municipalities which are the Ministry
of Federal Territories, Ministry of
Natural Resources and Environment
(MoNRE), Ministry of Urban Well-being,
Housing and Local Government (KPKT)
followed by the states of Selangor and
the Federal Territory of Kuala Lumpur
and finally, the municipalities Dewan
Bandaraya Kuala Lumpur (DBKL),
Majlis Perbandaran Selayang (MPS)
and Majlis Perbandaran Ampang
Jaya (MPAJ). Despite this, the ROL-
INDUSTRY
MINISTER OF ENERGY, GREEN TECHNOLOGY AND WATER
RESILIENCE
The Oil, Gas & Energy (OGE)
National Key Economic Area
(NKEA) is designed to be robust
over various business cycles. The
current low oil price scenario
creates an opportunity for industry
rebalancing and evolution to
ensure best possible returns on
capital invested, as opposed to
merely surviving the downturn.
With oil majors adjusting to
this ‘new normal’ and a shrinking
pie in terms of work within
the industry, competition has
naturally intensified.
Thus, Malaysian Oil & Gas
Services and Equipment (OGSE)
companies must consider exploring
consolidation opportunities within
the fraternity to increase their
competitiveness and place the
industry in good stead when the
global oil market recovers.
I believe that local OGSE
companies must increase their
competitive advantage by
investing and working to become
owners of technologies, rather
than agents of technologies.
Photo courtesy of UMW Oil & Gas Corp Bhd
M
coal price might be a challenge to alaysia’s push towards
these efforts. high income status by 2020 INSIDE THIS NKEA
Nonetheless, in our efforts to continues to place the Oil,
mitigate climate change and global Gas and Energy (OGE) sectors in critical 1 Maintaining the Sustainability
of Domestic O&G Production
light to propel the economy forward.
warming, we must continue to
As a net energy producer, the Oil
decarbonise our economic growth
by shifting away from conventional
& Gas (O&G) industry has consistently
contributed about one third of
2 Malaysia: Asian Hub
for Oilfield Services
fossil fuel and increasing our use Government revenue. Although the
of renewable resources. Government continues to reduce its
income dependence on this sector 3 Oil Price Contango
Spurs Storage Demand
by developing other economic
areas, world class competency and
capabilities developed over the 4 The Road to
Energy-Efficiency
years through national oil company
Petroliam Nasional Bhd (PETRONAS)
should not be dismissed. There
remains much value to be gained in
maintaining competitive advantage as For upstream ventures, this is a
we forge ahead. time for correction. With oil prices
In 2015, OGE sectors contributed predicted to drop to a record low in 2016
17 percent to the country’s Gross on the back of a global supply glut,
Domestic Product (GDP). Revenue now is a time for deep introspection
contribution to Government was at 21.5 and action to set right excesses and
percent (MOF Budget Estimate-2015). prepare for the upcycle once it occurs.
It is also important that we diversify An equally encouraging started to introduce the Euro 5 diesel
Malaysia’s energy mix to mitigate development in the energy policy in selected stations in the Klang Valley
dependence on non-renewables space has been the adoption of the as well as in Southern Johor.
such as oil and gas, and coal among fuel standard in the form of Euro 4M Fuelled by the need to ensure
others. The Government’s move to RON97 nationwide in September. This relevance of the OGE sectors against
implement Net Energy Metering and kick-starts a series of game-changing the backdrop of shifting industry
Large Scale Solar as announced in reforms in fuel-standards to reduce the dynamics, we highlight below the key
2015 this year, will be good catalysts in negative impact of low standard fuel areas where OGE NKEA’s efforts were
encouraging the take-up of renewables on the environment. Seeding from this directed in 2015.
in the country. development, oil companies had also
2 Malaysia: Asian Hub for Oilfield Services There was increased interest
among MNCs in 2015 to set up a
regional base in Malaysia. These
included companies like engineering
Since 2011, Malaysia has set out To address this, MPRC, along procurement firm McDermott, oil
on a journey to become the hub for with relevant Government agencies, services firm Hilong Holdings and
Oil and Gas Services and Equipment have been toiling to ensure the O&G exploration and production
(OGSE) activities. implementation of initiatives that will (E&P) training firm Harness Energy.
With our extensive experience in help local OGSE companies compete These investors are primarily
the O&G market compared with other and survive in this tough environment. guided by long-term considerations
countries in Asia-Pacific, we are well- MPRC actively promotes the on the global O&G landscape.
placed to achieve this vision. development of O&G focused training Establishing a base at the heart of
However, in order for Malaysia to and development centres within the the world’s fastest growing economic
become a thriving hub, OGSE firms in country. Internationally recognised region – Asia, will put them in a well-
Malaysia need to be more competitive. institutions such as Aberdeen Drilling positioned spot to take advantage
OGSE firms in Malaysia are also School, UMW-INSTEP Drilling Academy, of the future rebound in oil prices
now competing in a smaller and Harness Energy, The Welding Institute and resulting OGSE activities. It is
more challenging market due to low and OPITO BOSIET Training centres necessary for Malaysia to develop the
oil prices and market liberalisation. have been established in Malaysia. right environment for this to thrive.
(Top) MPRC team at the Aberdeen Drilling’s Malaysian Well Control Training Centre launch. (Bottom ) MPRC team with key players at the grand opening
of the new Hi-Force Malaysia premise on 29 October 2015
PROMOTING T
here are currently 3,613
local Oil and Gas Services
and Equipment (OGSE)
INFORMATION
companies operating in Malaysia
registered with state oil company
PETRONAS. Thus, when the Malaysian
TRANSPARENCY
Petroleum Resources Corporation
(MPRC) introduced the MPRC100
in June last year, the report was
THROUGH MPRC100 TO
very much welcomed by investors,
bankers and industry players alike,
says MPRC's executive director Dr
DEVELOPMENT
Equipment (OGSE) companies in
Malaysia ranked based on their
revenue. It maps industry segments
where the MPRC100 companies are
operating in, and provides industry
commentary featuring an aggregated
view of the OGSE industry in Malaysia,
and supplemental analysis.
Madros adds that the report was companies abroad, and industry MPRC recognises the need for
produced in line with MPRC’s stance players in their strategic alliance. more thought leadership documents
to promote information transparency In preparing the report, he explains to help the industry grow and achieve
as part of its mandate to develop that MPRC started with the database of as well as maintain its position as a
and promote Malaysia’s O&G companies registered with PETRONAS regional OGSE hub and foresees
services industry. and procured financial information publishing more such documents in
“We see information transparency (based on audited accounts) from the the near future.
as a market enabler and believe Registrar of Companies (ROC). The 2012
in maintaining a very transparent and 2013 data were published in the
and systematic process so that all first half of 2015 and with 2014 data
information can be verified.” published in January 2016. We see information
Having such information and Other than the MPRC100, MPRC
value-added analysis neatly packaged published two other documents - transparency as a
is undeniably useful to many Malaysia OGSE Catalogue (the 2016
stakeholders, given that information edition features 154 companies) and
market enabler and
on non-listed companies can be Malaysia Oil and Gas R&D Catalogue. believe in maintaining
notoriously hard to uncover, he says. Essentially, through these reports,
MPRC100 has proven to be useful to the agency aims to generate more a very transparent and
investors in identifying the industry’s interest, analysis and discussions
potential and risks of the companies to build capacity and further uplift
systematic process
featured, bankers in gauging how the Malaysia's OGSE sector, in line with so that all information
industry is performing overall, trade the Government’s goal to see Malaysia
agencies in promoting Malaysian become the OGSE hub of Asia Pacific. can be verified.
FINANCIAL
MINISTER OF FINANCE II
SERVICES
The global economy faced
numerous challenges in 2015.
Among the main challenges were
CRITICAL FOR
uncertainties from the impending
monetary policy normalisation
in the United States, the ripple
GROWTH
effects of China’s economic
rebalancing, sharp and prolonged
decline in commodity prices
and shaky investor confidence
owing to an uncertain domestic
political climate.
Despite the challenges, I am
pleased to report that the Financial
Services National Key Economic
Area (NKEA)’s KPIs for the year
have been met, thanks to the
collective efforts across the various
agencies involved.
With the ASEAN Economic
Community (AEC) gaining headway
in facilitating trade between
member nations, the ASEAN
banking integration framework
was concluded and announced by
the region's Central Bankers and
Finance Ministers in 2015. This
brings us closer towards realising
the goal of becoming a formidable
economic block trading with the
rest of the world once the AEC picks
up full momentum.
2
jointly established the Investment
Account Platform (IAP) which was 015 was a daunting year for
launched in February 2016. IAP is the global financial industry INSIDE THIS NKEA
a centralised multi-bank platform and Malaysia was not spared.
that aims to facilitate investors Bracing against a series of external 1 Islamic Finance Remains
on Solid Footing
investing in viable ventures or and internal challenges, our country’s
macroeconomic management in 2015
projects including SMEs.
With oil prices hitting record
focused on strengthening the resilience
of the economy, managing the impact of
2 Strengthening Development
Financial Institutions
lows in January and prompting external vulnerabilities and safeguarding
the Prime Minister to announce a the well-being of the rakyat.
Budget Recalibration to adjust, it is The shifting dynamics of global 3 Creating Sustainable Funding
Platforms to Support Growth
to be expected that some sectors will economic conditions have given rise to
be affected, creating a ripple effect increased uncertainty for economies,
4
particularly in two aspects - growth The Private Retirement Scheme
on the financial services sector.
and financial stability. (PRS) as a Wealth Creation Platform
Nevertheless, with the sound Gains Encouraging Traction
Given that the Malaysian economy
fundamentals put in place by the and financial system are highly open,
Government to strengthen the
resilience of our economy and
uncertainties from the impending
monetary policy normalisation
5 Supporting Regional Economic
Integration Through the ASEAN
Banking Integration Framework
banking system over the last few in the United States, faster than
expected slowdown in some emerging
years, I am confident we will face
economies, sharp and prolonged
these challenges from a position
decline in commodity prices, as well
of strength and continue to put in as increasing volatility in financial
place safeguards that can take us markets were the main near-term
through these challenging times. downside risks.
Some emerging economies expectations of an interest rate hike. 2015, foreign funds have pulled a net
including Malaysia experienced slower This led to significant portfolio outflows 11.7 billion ringgit (USD3 billion) of the
growth as advanced economies began from emerging and regional financial nation’s shares.
recovery. This is in addition to the markets, impacting the performance In spite of heightened volatility in
global oil supply glut coupled with the of regional bourses including Bursa global financial markets, the domestic
overall weakening of global demand Malaysia. financial system remains resilient and
that took its toll on commodity prices. Internally, the economy was tested continues to have ample liquidity to
During the first eight months of by a barrage of negative investor support real sector activities. The
2015, regional currencies including sentiments primarily caused by tensions banking system remains sound
the ringgit had depreciated by 16.5 in Malaysian politics prompting an and well capitalized with the key
percent as the US dollar strengthened exit of hot-funds investors reacting capital ratios well above the required
on improving economic activities and to short-term concerns. As of August regulatory minimum levels.
Transaction volume:
62 million or 98.7 percent of total
transactions conducted via agents
RM4.55 million or 79 percent of
total agent banking transactions
(RM5.7 million)
SC Chairman Dato' Seri Ranjit Ajit Singh (third from left) with the six ECF operators
Malaysia became the first ASEAN country to legislate Equity FinTech in the country.
Crowdfunding (ECF) when the Capital Market and Services Act With the aFINity@SC, the regulator seeks to drive a network
2007 legislative amendments to facilitate ECF came into force on of FinTech stakeholders to accelerate growth and innovation in this
15 September 2015. industry. In September 2015, the SC released a call for participation
Two ECF platforms have officially launched to date: CrowdPlus. to generate response and expressions of interest from relevant
Asia platform was launched by Propellar Crowd+ on 13 November stakeholders, including innovators, entrepreneurs, established
2015 and Crowdo was launched on 11 January 2016. businesses, investors and other authorities to chart the FinTech
Besides ECF, Securities Commission Malaysia (SC) is keen to agenda together for Malaysia.
facilitate development of Financial technology (FinTech) within the aFINity@SC aims to provide regulatory clarity by facilitating
Malaysian capital market. discussions between FinTech businesses and relevant authorities to
FinTech has significant potential to disrupt the business model ensure that potential regulatory and risk concerns are appropriately
of incumbents and appeal to a wider audience by promising user- taken into consideration.
friendly services that transcend demographic, geographical and The SC has indicated that it will introduce a framework for Peer-
infrastructure barriers. Recognising this, and the crucial need to to-Peer (P2P) lending in 2016, in line with growing interest in this
guard against the potential risks, the SC launched the Alliance of area. P2P lending has grown significantly in big markets such as
FinTech Community or aFINity@SC at the World Capital Markets the United States, China, the United Kingdom and India.
Symposium 2015 in September, to catalyse the development of
PRIVATE RETIREMENT SCHEME INDUSTRY’S AUM HIT THE RM1 BILLION LANDMARK
Malaysians to supplement their retirement savings in order to ensure
a level of sustainability and security for their future.
As the PRS embodies inclusiveness, individuals are given sufficient
8 PRS Providers
RM mil
1,400
,000
200 opportunities to share in wealth creation through an additional avenue
11
180 provided by the capital market. The PRS has been designed to be
PRS Schemes
180 accessible, affordable and sustainable whilst empowering all members
50
1,200
of the Malaysian public to achieve financial security based on what they
160
Retirement Funds
can afford. In this regard, one of the key features of the PRS is its flexibility.
30 Conventional Funds
1,000
128
140
20
TOTAL ASSET UNDER MANAGEMENT (AUM)
120
Islamic Funds 800 AND NUMBER OF MEMBERS SINCE INCEPTION
The increased participation in PRS can be attributable to early efforts
74% All
100
focused on investor education. Since the launch of PRS, the SC and PRS
600 1,172.0
Participation from States in Malaysia
80 administrator, Private Pension Administrator Malaysia (PPA) have been
Employed Segment are Reached 64 proactively embarking on a series of education and public engagement
13% 49%
60
400 campaigns to embed a higher level of awareness on the need for secure
716.1
40
retirement planning.
Self-Employed Female Members
200 22 Specifically, the PPA together with all PRS Providers contributed
299.8 towards the RM5 million Industry Development Fund (IDF) to launch the
13% 51%
20
64.4 PRS awareness campaign. The IDF is a three year commitment by PPA and
0 0
Students, Homemakers Male Members the PRS Providers to raise awareness for PRS. The IDF will also be used to
& Retirees AUM No. of Accounts
intensify education and public engagement campaigns across the country.
The role of tax incentives has been critical in driving the development
As Malaysia transforms from an emerging economy into a developed of PRS. In the 2012 Budget, the Government announced a tax relief of
nation, the need for a comprehensive multi-pillar pension system RM3,000 for contributions made by individuals to PRS approved by the
becomes increasingly essential. Global institutions like the World Bank SC. This tax relief will be provided for a period of 10 years, from 2012 to
acknowledges the importance of a multi-pillar pension system which 2021. Employers will also be given tax deductions on contributions to PRS
serves to support the retirement needs of a country’s population. In this made on behalf of their employees up to 19 percent of the employees’
context, the PRS complements Malaysia’s mandatory pillar. remuneration. To cultivate a retirement savings culture amongst the
The function of the PRS is one of utmost importance at a time younger demographic, the Government in the 2014 Budget announced
where the adequacy of retirement savings is neither sufficient nor a one-off PRS incentive of RM500 to contributors aged between 20 and
sustainable in an environment where rising living standards and higher 30 who participate in the PRS scheme with a minimum cumulative
age expectancies continue to prevail. Keeping the nation’s needs and investment of RM1,000 within a year. This incentive is valid from
aspirations in mind, this voluntary pillar is a critical platform for all 1 January 2014 for a period of five years.
The ASEAN CAP 10 CEO Summit provided CEOs with actionable parts to prosperity as ASEAN moves to becoming a single market place
MARKET INDICATORS
MALAYSIA MARKET GROWTH FROM JANUARY 2009 THROUGH 31 DECEMBER 2015
Market Foreign Foreign Outflow 2014
FBM KLCI Market Capitalisation ADV
Shareholdings - to date
RM26.0 bil
+93% +155% +76% +1.4 2010 to 2013
Percentage Points Total Foreign Net Inflow:
RM34.2 bil
MALAYSIA’S
MINISTRY OF DOMESTIC TRADE, CO-OPERATIVES
AND CONSUMERISM
CONSUMER
For the past five years we
have been breaking new grounds
EXPERIENCE
in retail concepts to enhance
Malaysia’s consumer experience
through several initiatives in the
wholesale and retail sector. The
sector has grown 5.9 percent in 2015
compared to 2014, contributing
close to 13.8 percent to the overall
country’s GDP.
Malaysia's rank in the AT
Kearney Global Retail Development
Index rose from 17 in 2010 to 9 in
2015 proves steady ground for retail
investment in the country.
Whilst working at modernising,
globalising and revolutionising
this sector, we strive to ensure
that no one gets left behind, by
providing even small retailers
the competitive edge through
assistance and training.
Apart from determining
opportunities to amplify the
programme moving forward,
we will also clarify sporadic
criticisms towards the TUKAR
programme. Some participants
Malaysia sits in a region that retail trade grew from 103.6 points
is a hotbed of retail activity and to 133.6 points over the same period.
This growth, albeit pressured by its highest ranking since 2007, before
competes with other cities such as
neighbouring competition, as well as the NTP. The Malaysian market was
Singapore, Jakarta, Bangkok and
the challenging global and domestic also described as strong and stable
Hong Kong to become one of the economic landscape, which saw a due to its high income per capita
preferred shopping experiences. decline in the number of tourists and young population. The country’s
We must run this race to rise above and the tightening of household ranking puts it among the 10 most
and shine in this space to capture lending credits, is attributed to the attractive countries for retailers
consumers’ imaginations and focused initiatives in the wholesale and makes it the only other country
and retail sector. in Asia Pacific, apart from China,
encourage greater spending.
Further demonstrating resilience, in the top 10.
the sector rose above weakened This sector is expected to
consumer sentiment in 2015 and continue contributing significantly
contributed 13.8 percent to the to the Malaysian economy in serving
country’s GDP in 2015. domestic demand, whilst also
AT Kearney ranked Malaysia 9th in encouraging tourist spend with the
its 2014 Global Retail Development country recognised as a top shopping
Index, up four places from 2013 and destination globally.
Format Stores and Small Retailers Abu Dhabi based retailer Lulu
Group is scheduled to set up 10
hypermarkets across Malaysia with
an initial investment of RM885 million
(US$200 million) in the first five years
from 2016. The group will be partnering
with FELDA and aims to capture 20
percent of the retail market share.
AmaxMall has attracted 212 small and medium online retailers on its e-commerce platform to offer their goods and services
(Top) Oasis Square Makan Baazar at Ara-Damansara (Bottom) Tesco is one of the players under the
Large Format Stores initiative
S
mack in the middle of Oasis attract not only locals but also to draw in and employment opportunities to all
Damansara, the Oasis Piazza multinationals and expatriates to set up Malaysians. As Oasis Square is also
is indeed a little food oasis offices and homes in Oasis Square. “We beginning to become a tourist hot spot
developed with the Makan Bazaar wanted to create a commercial hub which and we are committed to doing more
concept, which is aimed at creating cohesively integrates a safe and healthy to support tourism and retail industry
iconic food and beverage (F&B) living environment, a bustling business growth. Oasis Square is increasingly
destinations. It has become a defining centre, a lively entertainment hub and a also attracting tourists and we are
feature of Oasis Square, as an integrated place of leisure - where people feel safe committed to further encourage this
commercial campus which is co-created to congregate and enjoy themselves with trend in supporting tourism and retail
by Sime Darby Property & Brunsfield family and friends.” industry growth.
International Group. According to Mohamad Hassan, the Moving forward, Sime Darby
Offering a wide array of Malaysian existence of an attractive and exciting Brunsfield Group is also expanding
and international cuisine, the 27,900 food hub in Oasis Damansara has not this F&B retail hub to include a food
sq metres enclave has created a buzz only brought in the crowd but also court, which offers hawker fares in a
in Kuala Lumpur’s food and beverage doubled property value. All units of comfortable and hygienic environment.
(F&B) scene, not only because of the serviced apartments are sold out “Besides that, while attracting a multiple
its food but also the attractive cozy and office spaces are occupied by local range of premier tenants both locally and
ambience, featuring the water fountains, and multinational companies such as internationally and providing a greater
shimmering pools and lights, making it PR1MA Corporation, Hilti (America), BDA opportunity to small medium enterprises
a visually attractive dining destination, Architect (Australia), Malindo Airways (SMEs), it will generate healthy returns
especially in the evenings after sunset. and many other organisations. to the community and the stakeholders
Brunsfield International Group, The Oasis Piazza has huge potential towards establishing quality standard
Executive Director, Mohamad Hassan in becoming a revenue generator hub to of living and contemporary lifestyles,”
Zakaria says that Oasis Piazza is a both the Selangor State and the Federal he explained.
premium F&B destination developed to Government while providing business
PRIORITISING
DATO’ SRI AMAR
DOUGLAS UGGAH EMBAS
MINISTER OF PLANTATION INDUSTRIES
PEOPLE,
AND COMMODITIES
PLANET,
In 2015, we continued the
strategic measures introduced
to further develop downstream
PROFITS
activities and also boost
productivity upstream. Our
mission here is to strengthen the
earning power of these sectors
by creating long-term recurring
income for both the nation and
bottom 40 percent involved in
these sectors.
By developing a strong chain
of downstream activities and a
sustainable supply upstream,
we also strengthen these
sectors’ resilience to the current
economic upheaval.
All our measures to increase
resilience and revenue are
anchored on sustainability. This
is to ensure that at all times, profit
does not override the interest of the
society and the environment.
The Palm Oil and Rubber
National Key Economic Area
has been key in maintaining the
sustainability of the upstream
sector while accelerating the
T
he Palm Oil & Rubber NKEA
aims to hit the triple bottom INSIDE THIS NKEA
line which encapsulates the
theme of People, Planet and Profit. It 1 PEOPLE: Creating Recurring Revenue
Streams to Uplift Communities and
is underscored by the need to balance Industry Players as a Whole
progressive growth and sustainability
in pursuing people-centric initiatives.
Bright sparks have emerged
2 PLANET: Pushing for Sustainability
Through Innovative Solutions and
Meaningful Investments
despite the ongoing challenges in the
palm oil and rubber sectors. These
challenges prompted both sectors to 3 PROFITS: Going Downstream
Improves Sectoral Resilience
begin unlocking new value dimensions and Sustains Growth
through intensifying downstream
efforts as well as improving upstream
production efficiency.
Malaysian palm oil has experienced while that of prices and export revenue
a high degree of instability of late, declined. Average CPO price was down
ranging from its peak of approximately by 9.6 percent to RM2,153.50 compared
RM3,800 in 2011 to its trough of around to RM2,383.50 in 2014. Major price
RM1,800 in August 2015 (BEPI website). swings were caused by lower demand
The year 2015 saw a mixed performance from its major importers which resulted
of the Malaysian oil palm industry. in higher inventory, reaching a peak of
Compared to 2014, oil palm planted area, 2.7 million MT in August 2015, due to
crude palm oil (CPO) production, import, weaker demand coupled with higher
export and closing stocks increased, levels of production.
Total exports of oil palm products China. This spurred the invention volatility of palm oil prices and low
increased marginally in volume by of specialty rubber such as the natural rubber prices that would have
1.0 percent to 25.33 million MT but epoxidised natural rubber (Ekoprena) otherwise caused major setbacks in
declined by 5.5 percent in terms of and deproteinised natural rubber the plantation industry.
export revenue in 2015. In 2015, among (Pureprena) that can be used in This is one of the steps taken by
the top three importers of palm oil, green tyres and high-performance both the palm oil and rubber sectors
China recorded a decline of 16.2 engineering product respectively. in diversifying their respective
percent from 2.8 million MT. However, Such innovation and impetus activities, strengthening resilience by
India and European Union recorded to move downstream has also been departing from a deep reliance on the
an increase in volume of 13.6 percent seen in the palm oil sector. Value- commodity market. The shift in focus
and 0.9 percent respectively. added products including oleo towards the downstream sector, along
Natural rubber prices, similar derivatives and phytonutrients for with the various public and private
to palm oil, have also been drifting foods and supplements, continued initiatives which were introduced
lower amidst the fear of slowing into 2015. A more robust downstream to smoothen the transition process,
economy and lower demand from integration has helped the sectors continue to be built upon the Triple Ps
major consumer markets such as weathered through the ongoing as the underlying foundation.
A plantation worker collecting Fresh Fruit Bunch (FFB) at an oil palm plantation
The underlying aim is to provide Continuous efforts under the EPP tonnes of rubber to support domestic
smallholders with early income in includes identifying initiatives for downstream activities.
the first three years of replanting/ these cooperatives to remain relevant The government has encouraged
new planting while they are waiting and boost business performances. the replanting and new planting efforts
for their palm oil plants to fully mature. Targeted total FFB sold to mills by by farmers through implementing
Among the efforts under EPP2: all coops in 2015 was 26,800MT, agencies such as Rubber Industry
Improving Fresh Fruit Bunch Yield with achievement of 39,330.38MT Smallholders Development Authority
is to create clusters of independent (146.8 percent). Targeted number (RISDA), Lembaga Industri Getah
smallholders, which allow them of new coops to commence selling Sabah (LIGS), Department of
to achieve economy of scale, of FFB to mills in 2015 is five, which Agriculture Sarawak (DoA), Federal
strengthening their bargaining power was achieved. Land Development Authority (FELDA)
in terms of pricing for their produce. For rubber, the aim of EPP9.1: and Federal Land Consolidation and
This is done through cooperatives, Ensuring Sustainability of the Rehabilitation Authority (FELCRA).
which have become an efficient Upstream Rubber Industry, is to reverse In 2015, the Government continued
platform to raise awareness on better the declining rubber plantation area to provide grants for the replanting
farming methods and harvesting in Malaysia to ensure that there is of old and unproductive trees by
technologies to raise national sufficient production upstream that is smallholders. For the period to 2012-
average yields. able to support domestic downstream 2015, a total allocation of RM830.5
Since the start of this NKEA, 30 activities. In 2000, the total rubber million has been provided for
cooperatives with a membership plantation area in Malaysia was 1.4 replanting and new planting of 196,891
of 29,000 smallholders have been million hectares, which reduced hectares of rubber planted area.
established with the help of MPOB drastically to 1.02 hectares in 2010. Efforts under this EPP also includes
and this has allowed smallholders Efforts under this EPP is aimed at the use of high yielding clones in
to enjoy a bulk discount in procuring maintaining planted areas at 1.2 million the replanting and new planting
agricultural inputs and receive better hectares, of which one million hectares programme, with the potential to
pricing for their produce sold to palm are harvested. With yields expected increase production to 2,000kg a year
oil mills. Fifteen of these cooperatives to reach 2,000kg/ha, Malaysia is per hectare, also increasing the income
are currently operating nationwide. likely to produce two million metric of smallholders.
A pilot biogas plant capable of supplying compressed natural gas to commercial entities began at the Sungai Tengi mill, which belongs to Felda Global Group, in Q4 2015.
This mill is the pioneer in Malaysia to install a commercial scale bioCnG facility. BioCNG is a more viable and lucrative alternative to feeding the electricity converted from
methane to the national grid, which proves to be a challenge for mills located further away from power stations
Though Ekoprena was developed Among the efforts which started 80 buses. Eight hundred Ekoprena types
some years ago, commercialisation has in 2014 is initiating a trial project will be used in the project. Following the
yet to take place in a big way. with Prasarana Bhd to test the trial project with Prasarana Bhd to test
To accelerate the journey towards Ekoprena tyres on Rapid buses in the the Ekoprena Tyres, 10 RapidKL buses
commercialisation, at the initial Klang Valley. on the Cheras Selatan route have begun
stages, collaborative trials with In August 2015, Prasarana using these tyres since August 2015.
private and public sector parties will Malaysia Bhd (Prasarana) signed a Felda is planning to use them for
be conducted, with the Malaysian memorandum of understanding with their fleet of transport from January
Rubber Board acting as the facilitator. Malaysian Rubber Board (LGM) to use 2016. For the commercial trial with
The purpose of these trials is to ensure Ekoprena tyres on its RapidKL buses in Felda Transport Services Sdn Bhd
that sufficient data is collected which a RM 1.7 million trial project, funded (FTSB), 16 vehicles will be used
can then be translated into a strong by the Ministry of Plantation Industries across a total of four trials, covering
value proposition for the product. and Commodities. the Pahang and Johor areas.
Collaborative research activities Ekoprena tyres will be used on the There is also the intention to
will cover products such as tyres, buses plying six regional routes within promote Ekoprena via other creative
retreads, shoe soles for boots, auto Klang Valley. In the first phase, tyres means such as collaborations with
parts, industrial hoses and other non- will be used on 10 buses, in the second renowned car makers or through
automotive products. phase - 30 buses, and the final phase - sponsorship platforms.
Efforts under the NKEA to promote EPP6 Developing Oleo-derivatives RRM179 million, which is 23 percent
downstream are two Entry Point project fund. It will be setting up of total investment valued at RM789
Projects (EPPs): its plant in Masai, Johor to produce million.
Firstly, the development of Oleo medium chain triglyceride (MCT) EPP8 has a two-prong focus. First,
Derivatives, efforts under EPP6: powder and powdered stearic acid, to push for commercialisation projects
Developing High Value Oleo Derivatives which are used in functional foods, and at the same time provide support
and Bio-Based Chemicals have been supplements and pharmaceutical towards R&D work via providing
successful in spurring high-value products. Its processes will comply grants towards clinical trials. The
downstream activities which continued with Current Good Manufacturing commercialisation arm allows for
through 2015. This resulted in continued Practice (CGMP), which will enable it commercialising of palm-based
diversification and growing sphere of to export to more countries with stricter phytonutrients by providing financial
value addition through both Government regulations such as Europe and Japan. support to companies for the acquisition
grants and investments by plantation In order to boost activities in the of technology and plant construction.
companies. RM2.5 billion worth of downstream segment of palm oil- A successful recipient of the EPP8
investments has been committed by based food and health-products, the commercialisation grant includes
EPP6 grant recipients, with 55 percent government has committed RM157.2 Carotino, which completed building
realised to date. million worth of grants under EPP8: its plant at Pasir Gudang, Johor in
In 2015, Lipidchem Sdn Bhd Expediting Growth in Food and Health- early 2013 and had since then started
became the first SME company to Based Segment. To date, this has commercialising its products, carotene
receive a grant from the NKEA POR brought in realised investment worth and tocotrienols.
Ripirian buffer zones (pic, left of river) are important for conserving
freshwater ecosystems and provide habitat for land-based animals
THE COOPERATIVE
WAY TO GREATER Haji Sharif Azib
Chairman,
Koperasi Penanam Sawit
People need to see that we are different from previous cooperatives and I believe
that we are already making inroads because we have an increasing number
of non-members selling their produce to our palm oil collection centre.
H
aji Sharif Azib’s greatest “The numbers may be small but members as dividends and incentives.
challenge is to prove to these are dedicated members who truly We also ensure that everything is above
smallholders in Termeloh, believe that we can make a difference,” board and transparent.”
that collective actions through said Haji Sharif, who pointed out KPSMT also encourages small
cooperatives have greater potential in that transparency and effective holders to adopt better farming
increasing income than working in silos. management are very important when methods and harvesting technology to
The 57-year-old chairman of the running a cooperative. raise yield and produce better quality
Koperasi Penanam Sawit Mampan “People need to see that we are fruits with higher oil extraction rate.
Termeloh (KPSMT), has been facing an different from previous cooperatives According to Haji Sharif, unlike older
uphill battle to win over smallholders and I believe that we are already cooperatives dominated by much older
who are disillusioned by numerous making inroads because we have an members, KPSMT embraces young
failed cooperatives in the past. increasing number of non-members farmers who are more open to new
Nevertheless, he is unfazed as he selling their produce to our palm oil ideas in farming and management.
believes that the eventual success of collection centre.” “Apart from having young blood
KPSMT will dispel the apprehension He said the KPSMT cooperative on board, we are also supervised by
over cooperatives. collection centre not only allows MPOB who constantly advises us on
KPSMT, which was established smallholder to save transportations the best methods,” he said.
in September 2011, is open to all costs to the mills but also buys their
smallholders with palm oil plantation produce at market rate. "As opposed to
of 100 acres and below in the district of other independent collection centres,
Termeloh. It currently has 64 members we only take 18 percent for cooperative
owning a total of 400 acres. profit, which will be channelled back to
GREATER YIELD
L
He said the older the trees According to him, the biggest
ia Ah Kau 39, would have produces lesser fruits and because challenge facing plantation owners
needed to save for more than these trees are very much taller both big and small are skilled workers
two years to replace his 40- than younger ones, harvesting especially fruit harvesters. "Harvesting
year- old oil palm trees if it were not becomes a problem. “We need skilled is a highly skilled job, you must know
for the government assistance, which harvesters to do this and there aren’t how to harvest without damaging the
included the provision of high yielding many around.” fruits. The local young labour force is
seeds and financial assistance for He also pointed out that not interested in learning this skill as
clearing and replanting efforts. government assistance enabled him to they prefer to leave to bigger towns for
This assistance is part of the mechanise his clearing and replanting other jobs."
Government scheme under EPP1 efforts which took him a month for “Unlike what is commonly
pushing for the replacement of aged two plantations of 10 hectares each. perceived, working in the oil palm
palms that are 25 years and older Without mechanisation, this labour plantation is not so hard; most times
with younger high yielding trees by intensive effort would have taken him I work half a day only and I make a
farmers and independent smallholders almost a year to complete. decent living. Young people prefer
to ensure a sustainable supply of the Of all his siblings, Lia was the only bigger town because there is more
commodity to downstream palm oil one who was willing to take over his entertainment there. Here in Termeloh,
operators within and outside the region. father’s plantations. “It is a job with there is nothing to do at night.”
T
now at the halfway mark of the ourism is an important
programme, it is timely to review economic sector in Malaysia INSIDE THIS NKEA
and enhance the implementation and remains pivotal to the
of some of the existing initiatives, nation’s economic transformation. 1 Malaysia’s Tourism Grows via
Private Sector Endeavours and
Despite global economic and sectoral
and encompass any new ideas Collaborations
challenges, the tourism sector
and potential game-changers.
With these ongoing efforts, I am
improved its position from fifth in
2014 to third highest Gross National
2 Tourism Industry Growth Supported
by Strategic Government Initiatives
confident that the tourism sector Income (GNI) contributor for 2015. In
will continue to achieve greater terms of tourist receipts, it decreased
heights going forward. by 4.0 percent from RM72 billion to
RM69.1 billion in 2015. Tourist arrivals Malaysia’s competitiveness as a
recorded a decline of 6.3 percent from leading tourism destination in the
27.4 million in 2014 to 25.7 million in region was recognised via numerous
2015. The drop in tourist arrivals and awards in 2015 with India’s leading
receipts can be attributed to the global luxury and travel magazine ‘Travel
economic slowdown and challenges + Leisure’ crowning Malaysia as the
such as the worst floods in 30 years “Best International Destination – Food
which affected several states in and Drinks 2014” in April 2015. The
Malaysia in early 2015 and earthquakes country’s attractiveness as a shopping
in Ranau, Sabah in June 2015, regional haven continued to increase and it
travel advisory for the coastal areas of was ranked the second most popular
Southeastern Coast of Sabah as well as shopping city in the world for Muslim
the lingering effects of the MH370 and tourists by the Muslim Travel Shopping
MH17 incidents. Index (MTSI) 2015.
Malaysia became the ever to win in June 2015, a total of 755,399 visitors Asia in May 2015, namely the Mitsui
the Best Golf Destination in Asia visited the Malaysia Mega Biodiversity Outlet Park KLIA Sepang housing 127
two years in a row at the World Golf Hub (MMBH) sites in 2015. This brands. It managed to attract over one
Awards. The country also continued to achievement is highly commendable million visitors since its opening up to
gain momentum in the high-yielding given that full repair and recovery of the end of 2015. Malaysia undoubtedly
Meetings, Incentives, Conventions and the infrastructure at the sites concerned remains poised to identify further
Exhibitions (MICE) category, moving up has yet to be completed, particularly at initiatives and improvements in its
five places to 30th in the world in the 2015 Kinabalu Park where only part of the efforts to stay ahead of the game to
International Congress and Convention trek was reopened in September 2015. attract more tourists.
Association (ICCA) rankings for the full The industry remained resilient
year of 2014. with notable developments,
In spite of the negative impact particularly from the private sector.
due to the year-end floods in 2014 , One significant highlight is the opening
and Sabah’s devastating earthquake of the largest outlet mall in Southeast
appealed to shoppers as evidenced on land amalgamation. The Malaysia Schiff by Tui ships also gave BCC its
by the encouraging footfalls with sales Eye is expected to be completed in 2016, first overnight call. Growth looks set
exceeding expectations. and the International Cruise Jetty is on to continue in 2016 with a focus on
In 2016, SSM will work to ensure its track for completion by end 2017. improving destination coordination,
efforts abroad will yield the targeted The Malaysian cruise industry particularly for high-value calls.
Return on Investment (ROI), which continued its upward growth trajectory A major new Dedicated
may be a combination of the value from in 2015 with a marked 50 percent Entertainment Zone (DEZ) – TREC
packages sold and also any PR value increase in total cruise passengers KL - opened in 2015 in Kuala Lumpur
from the campaigns. From a tactical to 523,272 passengers from 352,322 with Zouk KL, Asia’s largest super
perspective, campaigns will also put passengers in 2014. A total of 487 club, as its anchor tenant. Zouk offers
more emphasis on the experiential calls were made in 2015 compared 10 new rooms across 106,000 sq. ft.
element of shopping in Malaysia. to 356 in 2014. Almost all the key call and was named one of the world’s
SSM will also be looking to spread ports in Malaysia saw growth, in spite Top 100 Clubs by the international
the BBKLCC Tourism Association of Star Cruises’s commercial decision DJ Magazine publication. The club
model by encouraging other shopping to capitalize on the rapidly growing continues to offer free entry to tourists
precincts in the country to form their Chinese market and reposition the via its special designated lane and this
own associations. 1,480 passenger Superstar Libra, which is expected to be a boost to Malaysia’s
Following the endorsement of previously home berthed in Penang to tourism landscape. Apart from Zouk,
two new integrated developments the Chinese market. TREC also has the Electric Boulevard,
in Melaka and Rawang in the form The cruise industry saw a number an eclectic international selection
of the Melaka Gateway and Project of prominent developments in 2015. of lifestyle outlets which is aimed at
TWO, efforts in 2015 were focused One key highlight is the maiden attracting both locals and foreigners.
on facilitating the progress of these calls of the Quantum of the Seas The successful opening of TREC
projects. The first phase of the Melaka at Swettenham Pier, Penang, and is a culmination of both private
Gateway project experienced some Boustead Cruise Center (BCC), Port sector investment and Government
delays as the developer KAJ Sdn. Bhd. Klang. This 4,180 passenger vessel is facilitation. It was endorsed as an
opted to postpone the completion of the the largest Royal Caribbean Vessel to be EPP project in 2014 involving private
Malaysia Eye by several months to focus deployed in Southeast Asia. The Mein investments of about RM130 million.
REDEFINING THE W
ith an estimated 250 Mitsui Fudosan is a major real
outlets by year 2021, estate developer in Japan and holds
Mitsui Outlet Park KLIA a 70 percent stake in MOP KLIA with
SHOPPING MALL
also managed to exceed its projected local expectations.
sales targets. “While Mitsui Fudosan fuels
MOP KLIA is part of The KLIA the Mitsui Outlet Park KLIA Sepang
BUSINESS
Aeropolis development which aims with global operational expertise,
to transform the KLIA area into a Malaysia Airports is the backbone
multimodal and multifunctional that facilitates with the local needs.
TO HIGHER
MINISTER OF INTERNATIONAL TRADE AND INDUSTRY
VALUE-ADDED
The Electric and Electronics
(E&E) industry continues to be a
key driver of Malaysia’s industrial
ACTIVITIES
development and contributes
significantly to GDP growth,
export earnings, investment, and
employment. In 2015, 93 E&E
projects with investments worth
RM8.9 billion were approved,
exceeding our annual target of
RM6.0 billion. Of this, 26 projects
were new projects with investments
of RM2.1 billion while 67 were
expansion/diversification projects
with investments amounting to
RM6.8 billion. Foreign investments
continued to dominate overall
investment, accounting for
RM8.2 billion (92 percent) of total
investments as compared to RM0.7
billion (8 percent) of domestic
investments. Overall, a total of
455 projects, valued at RM45 billion
have been approved for the period
of 2011 to 2014, where 78 percent or
356 projects valued at RM35 billion
have been realised thus far.
Exports of E&E products rose
by 8.5 percent to RM277.92 billion
E
lectrical and electronics ecosystems of semiconductors,
(E&E) is the leading and the solar and Light emitting diode (LED) INSIDE THIS NKEA
most liberalised industry technologies.
in Malaysia's manufacturing Semiconductors are expected to 1 Delving into Downstream Industries
4
decades since the industry inception technology (integrated circuits, Expanding the Electrical
in the 1960s. The industry evolution PCBs, LEDs). & Electronics Industry
until today has turned Malaysia as one The growth trends achieved
of the leading points in the global E&E during the year reflect a concerted,
value chain. industry-wide effort to shift from low
As Malaysia moves forward, the value-added activities to high-value
E&E segment is focused on deepening operations to remain competitive in a
and strengthening the three major globalised economy.
P-Plus Sdn. Bhd., a company under the Green LED/SSL Programme showcasing Malaysian made LED/SSL products at SME Corp Malaysia's closed door
business linkages event
First Solar launched its TetraSun technology-based production line at its PV manufacturing complex in Kulim Hi-Tech Park, Malaysia
As at December 2015, Malaysia Meanwhile, JinkoSolar’s solar cell Anti-circumvention duties of 53.4
is home to a total of 16 solar and module manufacturing facility percent and anti-subsidy duties of 11.5
manufacturing plants, with a commenced production of highly- percent now apply to Chinese solar PV
production capacity of 2.6GW of cells efficient cells and multi-crystalline panels and cells shipped from Taiwan
and 5GW of modules per year. modules in May 2015, providing the and Malaysia to the EU. To mitigate the
During the year, the Northern company with an additional capacity impact of this on the local industry,
Corridor Economic Region (NCER) of 500MW for solar PV cells and 500MW the Ministry of International Trade
welcomed two new solar panel players, for modules annually. and Industry (MITI) is putting in place
JA Solar Holdings Co Ltd and JinkoSolar While the growth of the solar panel measures in the approval of Chinese
Holdings, to Penang. JA Solar Holdings industry is evident, it is not without its companies setting up manufacturing
Co Ltd, one of the world’s largest challenges. In May 2015, the European facilities in Malaysia to ensure high
manufacturer of high performance Union (EU) launched an investigation value activities are conducted in
solar power products, invested RM300 into Taiwanese and Malaysian solar Malaysia and local companies are part
million in October 2015, to establish its panel manufacturers after Chinese of the supply chain.
first manufacturing facility outside exporters were accused of evading
China. This factory’s output would anti-dumping levies by shipping
represent 10 percent of the company’s solar panels to the EU respectively
total production capacity globally. through Taiwan and Malaysia.
SERVICES
MINISTER OF HUMAN RESOURCE
SECTOR
I am very pleased to see the
continued growth of the Business
Services NKEA, as it is a critical
TAKES OFF
component of our transformation
journey. The NKEA helps Malaysia
move up the services value
chain by attracting higher value
investments that enhance the
knowledge economy, have a
global outlook, and create skilled
jobs for Malaysians.
The continued growth of
business services means that more
and more high skilled employees
will be required. Witnessing the
shared services and outsourcing
industry creating over 16,000 jobs
this year is indeed assuring and
illustrates that the programme is
on the right track.
We will continue to work
with companies and educational
institutions to ensure Malaysia
produces the best industry-
ready graduates.
The launch of the Malaysia Aerospace Industry Blueprint 2030 by YAB Prime Minister
MAKING MALAYSIA signed between Rolls-Royce and in October 2015. The centre has
AN AEROSPACE HUB UMW. Under the deal, UMW will employed 70 people and is one of
The aerospace industry, which manufacture and assemble aero- only five such Airbus locations around
is one of the priority sectors in the engine fan cases for Rolls-Royce’s the world, providing major aircraft
11th Malaysian Plan, hit several Trent 1000 engines which power engineering and repair design services
notable milestones this year. There the Boeing 787 Dreamliner. This to customers globally.
was the launch of the Malaysian agreement signifies the confidence A new EPP8 was also launched to
Aerospace Industry Blueprint 2030, that world-renowned companies have develop SMEs in the global aerospace
the revival of the Malaysian Aerospace in Malaysia’s capabilities, and opens manufacturing industry. This project,
Council, and the establishment of the door for even more opportunities led by SME Corp, will further enhance
a dedicated National Aerospace to be realised in technology transfer, Malaysia’s attractiveness as an
Industry Coordinating Office (NAICO) human capital development and investment destination for leading
under MITI. SME development. aerospace multinationals, as well
In terms of investments, a In addition, Airbus officially as help upskill the talent pool
landmark RM830 million deal was launched its customer service centre within Malaysia.
BUILDING GLOBALLY T
he Shared Services and
Outsourcing (SSO) sector has
been one of the standouts of
COMPETITIVE
Malaysia’s economic story over the years.
Not only has Malaysia been consistently
ranked as one of the top three most
attractive destinations for business
SHARED SERVICES
shared services and outsourcing by
global management consulting firm AT
Kearney, but the sector has outperformed
AND OUTSOURCERS
job creation targets as well.
Describing this sector as
“Malaysia’s jewel in the crown”, MDeC
CEO Dato’ Yasmin Mahmood reflected
that “the cluster formerly known as
SSO has recently been renamed Global
Business Services (GBS) to better reflect
the changing nature of the global
outsourcing market, and the strengths
Malaysia can play to.”
A key highlight, Yasmin said, was
that the target for new job creations for
2020 was met in 2015. “And these are
high income jobs too,” Yasmin noted.
“It’s not just about the number of jobs,
it’s also about the value of the jobs.”
TALENT DRIVES M
alaysia’s emergence as a
regional aerospace hub
is crucial for the nation’s
GROWTH IN
ambitions to be a high-income
economy by 2020. Zulfikri Osman, Chief
Operating Officer (COO) of M-AeroTech
AEROSPACE
said that the growth of the aerospace
sector represents our transition as a
country to a high-income economy.
VENTURE
“As an industry, aerospace is high-
value and focuses heavily on human
capital development,” he said. “It is
important to diversify the nation’s
economy, making it less reliant on
traditional sectors such as the oil and
gas sector, especially in the current
economic climate.”
Zulfikri added that Malaysia must
recognise the importance of developing
its most important resource: its people.
M-AeroTech was set up by Majlis
Amanah Rakyat (MARA) in 2014 to lead
its ventures into aerospace. It is also
CONTENT AND
MINISTER OF COMMUNICATIONS AND MULTIMEDIA
CONNECTIVITY
2015 was another exciting
year for the Communication
Content & Infrastructure NKEA,
as it continued to build on the
momentum of existing projects
and refine initiatives.
One such initiative, The Film
In Malaysia Incentive or FIMI
experienced a phenomenal growth
in 2015. We saw a 40 percent
increase in terms of production
investment worth over RM457
million. Of this amount, 98 percent
was foreign led, and this means
we should continue to promote
Malaysia as a global film location
and to faciliate the ease of making
films here.
Another initiative, the Content
Malaysia Pitching Centre launched
in 2015 provides the creative
industry a platform to produce
world class content to compete in
the global market. It was a missing
cog in the industry wheel, as well as
a game changer at large, as it caters
to both budding movie making
entrepreneurs such as producers
and seasoned script writers, hair
and make up stylists, visual effects
teams, directors amongst others.
T
and will ensure that we continue he Communications Content
to grow this sector, with focus and Infrastructure (CCI) INSIDE THIS NKEA
on developing the creative sector spans a wide ecosystem
industry human capital , creative covering creative content, network 1 Catalysing Growth in the
Content Industry
applications, services and devices.
content, as well as to enhance our
The growth of the CCI industry is
marketing and communications
infrastructure.
key to other National Key Economic
Areas (NKEAs) such as Electrical and
2 Pushing Boundaries
in e-Government
Electronics (E&E), Financial Services,
Tourism, Healthcare, Business Services
and even Education, which rely on 3 Enhancing the Foundation
and Access to Connectivity
communication infrastructure to
further boost economic potential.
As we head towards 2020, the
sector is undergoing a paradigm shift up to become a core function and it
from providing infrastructure and is expected to become a significant
access for Malaysians to providing economic contributor, with continued
applications and content that will support and participation. Malaysia
enable a knowledge-based economy. is making a name for herself as a
This is the critical and catalytic quality destination for filming. This
role the CCI NKEA will play in the confidence is mirrored by interest from
development and sustainability of a global and established film producers
high-income economy. such as Marco Polo Productions Asia
Within this sector, Malaysia’s Sdn Bhd, Netflix, The Weinstein
creative content ecosystem is shaping Company and production companies.
Additionally, it is evidenced with the technology into Government services. has been declared by the Human
opening of the renowned Pinewood This is to improve the various services Rights Council of the United Nations
studios in Iskandar Johor which is the accessed by the general public. as a basic human right to enable people
location of productions by Fremantle Successful implementation will to exercise and enjoy their rights to
Asia, Turner Broadcasting System Asia result in 90 percent of transactions freedom of expression as well as to
Pacific amongst others. being completed online with only 10 facilitate economic development. In
In addition, attractive financial percent completed with face to face addition, with the advancement of
incentives drew nearly half a billion engagements. Within the government technology, there is a bigger data in
ringgit in film spending just last year, system, there has been an ongoing the system and with that comes the
with 98 percent of it from abroad. This effort to go paperless by 2020 and need for better connectivity. This is
in turn also stimulated local demand this will ensure less incidents of because businesses are accessing
for supporting goods and services such documents going astray, easy retrieval data and information, consumers are
as catering, transportation, clothing, of documents and proper records using apps, online portals and social
construction and carpentry. being kept media. Essentially with more and more
A critical piece of this NKEA looks The right to Internet, otherwise Malaysians going online, ubiquitous
at expanding the adoption of the latest referred to as the right to broadband, connectivity is a necessity.
million in production investments. into Malaysia which translates to a and extras. This increase in demand
Amongst these productions are Indian Return on Investment (ROI) of 3.27 has enabled good scriptwriters to earn
Summer Series 2, Asia’s Got Talent, times. In addition, the total spending in excess of RM15,000 per month,
Lost in the Pacific and the animated on Malaysian good and services while an extra could command a fee
feature, Supa Strikas. by these companies on rental & of RM4,500. All this simply augurs
In addition to competitive leasing; construction and carpentry; well for the industry and the people
incentives (FIMI) and production accommodation; food and beverage, that work within. In addition, there
facilitation, the opening of Pinewood etc. was RM406.2 million. is the Creative Industry Lifelong
Iskandar Malaysia Studio with its state FIMI-supported production Progamme (CILLP) that aims to
of the art facilities also reinforced has also generated RM156.2 million develop and up skill creative talents
Malaysia’s position as an attractive in employee compensation in from script writers to directors to
destination for filming. The top two Malaysia, including MYR82.8m any Malaysian with an interest in
highest production investments at of direct employee compensation the creative industry. They would
Pinewood Iskandar were Marco Polo (i.e., Malaysian cast and crew) and have to be accepted to a recognised
Season 2 estimated at RM194 million RM73.4 million of multiplier effects programme in an institution and
followed by Indian Summers Season on employee compensation in apply for funding through the CMPC.
2 estimated at RM47 million. supplier industries. Finally, FIMI- To-date, 310 Malaysians have received
Apart from encouraging skills and supported production has generated funds and are undergoing courses in
knowledge transfer to locals working 5,679 Full-time Equivalent (FTEs) of local or international institutions.
within a production crew, FIMI also employment in Malaysia, including
stimulates local economies by creating 2,542 FTEs of direct employment of
a demand for goods and services Malaysian cast and crew and 3,137
such as catering services to prop FTEs of multiplier effect employment
making services to car rental services in supplier industries.
in order to fulfill the production With a thriving and growing
requirements. FIMI brought in RM893 creative industry, there is now a
million of production investment greater demand for production talents
OUR TALENT
MINISTER OF HIGHER EDUCATION
POOL
Public-Private Partnerships
(PPP) have become a crucial
tool in helping to increase the
employability of graduates.
Leveraging on the private sector’s
expertise, the Government is
able to inject new experiences,
methodologies and resources into
the Malaysian education system,
creating a highly marketable pool
of talents in line with the Malaysia
Education Blueprint 2015-2025
(Higher Education). Excellent
talent within higher education will
also enable Malaysia to continue
improving its education offerings
and strengthen its position as a
regional education hub and an
attractive education destination.
T
quality pre-school education that
he quality and capacity
lays a strong foundation for the of talent pool is a critical INSIDE THIS NKEA
creation of a highly capable talent component in Malaysia’s
pool. This includes enhancing transformation effort, more so when 1 Malaysia Continues to Focus
Efforts on Becoming an
the skills and qualification of the economy shifts towards high value- Education Hub of Choice
educators in this sector. added manufacturing and services, in
Public-Private Partnerships
which technology and innovation play
a huge part.
2 Public-Private Partnerships
for Capacity Building
will also be used to push for Hence, efforts to create a pool of
support for initiatives like the quality talent to match the demand
promotion of the English language generated by economic transformation 3 Focusing on Clusters to Elevate
the Quality of Malaysian
and Special Education Needs continue to be the focus in 2015 Education Offerings
(SEN). For SEN initiatives, private and beyond.
For this purpose, the Ministry of
higher learning institutions,
Higher Education (MoHE) has been
industry players and the
working closely with the Ministry of industry as well as ensuring that our
government have come together Education (MoE) and other ministries education offerings meet the needs of
to provide more opportunities for to improve the quality and enhance a high-income and globally competitive
youths with special needs. the national human capital pool. economy. It is also the enabler that
The Ministry is also working closely feeds talent into the rest of the NKEAs
with the private sector to reduce the to ensure that we have sufficient human
mismatch between talent and jobs. capital in place to sustain the growth
The Education NKEA will continue and development of our Malaysian
driving the growth of our education economy.
¹ Based on data verified by PwC in the Agreed Upon Procedures (AUP). Refer to the "Agreed Upon Procedures by PwC" chapter on the AUP process.
The establishment of these branch as compared to 57 in 2010, surpassing neighbouring Association of Southeast
campuses would allow students to the Government’s initial target of Asian Nations (ASEAN) nations and
receive the same quality education in 87 schools by 2020. The number of attract multinational companies to
Malaysia as in the main campus at a students enrolled in international establish and grow their regional
lower fee. This would assist Malaysian schools for 2015 is 50,581². Of this base in Malaysia. This new campus
students that want to attain world- number, 28,797² are local students is expected to create a GNI impact of
class education at a fraction of the cost and 21,784² are international students. RM14.2 million by 2020.
and furthermore increase Malaysia’s Enrolment for international The National Association of
attractiveness as an education hub due schools are expected to increase to Private Educational Institutions
to the lower cost to study in Malaysia. 75,000 in 2020, and to cater to this rise, (NAPEI) together with the Private
MoHE regularly receives a number the initiatives under EPP3, include the Education Division in MoE have held
of applications for the establishment up-grading and expansion of existing marketing and promotional activities
of branch campuses, however with international schools and attracting in key targeted countries, including
the existing moratorium on the new international school operators Vietnam and Indonesia, to attract more
establishment of new private higher to Malaysia. international students to Malaysia.
education institutions (PHEI), this The International School of Kuala The establishment of these schools
EPP will see little traction for the Lumpur soon to be constructed RM350 are usually done via partnership with
next couple of years. The purpose million state-of-the-art campus, is local property developers. Examples
of the moratorium is to prevent an aimed at attracting 2,500 international include Tropicana Group Berhad and
oversupply of seats and programmes and returning Malaysian students. St Joseph’s Institution International
and at the same time, allow PHEIs The new campus in Ampang Hilir, School, SP Setia Berhad Group and
to focus on rationalization and Kuala Lumpur, will incorporate Tenby Schools Group, Perdana
consolidation of the private education environmentally sustainable concepts, ParkCity Sdn Bhd and Brighton
sector. This will also enable PHEIs to cutting-edge technology and world- Education Group as well as the
improve the delivery and quality of class science, language, humanities, recently announced collaboration
programmes offered. sports, theatre, music and art facilities. between YTL Berhad and the British
There are a total of 140 international Schools such as this will enable Council to set up a new international
schools in the country as of 2015, Malaysia to compete successfully with school in Sentul West.
The International School of Kuala Lumpur soon to be constructed RM350 million state-of-the-art campus will incorporate environmentally sustainable
concepts, cutting-edge technology, world-class science, language, humanities, sports, theatre, music and art facilities
² Based on data verified by PwC in the Agreed Upon Procedures (AUP). Refer to the "Agreed Upon Procedures by PwC" chapter on the AUP process.
CREATING A GLOBAL
EDUCATION HUB IN MALAYSIA
M
alaysia currently ranks as the 12th preferred of 151,979³ international students, in both institutions of
higher education destination, by international higher learning (IHL) and international schools. This marks
students and Kuala Lumpur ranks as the number a 12 percent increase from 135,502 students enrolled in 2014.
one most affordable city in the world for students. Despite Out of the 151,979³ students, 80.3 percent of them enrolled
the favourable rankings, due to the growing competition in in IHL with 41 percent in degree programmes, 40 percent
the region, it is critical for Malaysia to enhance her presence in diploma programmes and nine percent in postgraduate
and relevance as an international education hub, said Mohd programmes. “The ratio of international to local students in
Yazid Abd Hamid, Chief Executive Officer, Education Malaysia 2015 is 12:100 as opposed to 5:100 in 2002.”
Global Services (EMGS). Towards enhancing international student safety and
“EMGS, is not only entrusted to create a global presence security, EMGS together with the Ministry of Home Affairs
for the Malaysian Education brand but also provide holistic and the Immigration Department introduced the i-kad, an
international students’ services.“ identity card for international students in 2014. With this,
“Malaysia needs to constantly stay ahead of her regional students no longer needed to carry their passports around,
competitors and for this purpose, we have intensified our reducing the risks of passports getting misplaced, lost or
international marketing and promotional initiatives, as well stolen. In 2015, EMGS introduced a mobile app, making it
as global industry engagements.” easy for law enforcement officers in the field to verify the
In 2015, EMGS ran 34 international promotional events validity of the students’ i-kad, via a smartphone.
across 22 countries. Events included international education According to Yazid, moving forward, EMGS is looking
exhibitions, Education Malaysia solo roadshows as well as at building greater presence in the Middle East, Asia, South
cluster engagement initiatives with student recruitment America, South Korea and Japan.
agents and international student sponsors. EMGS also “We will continue our efforts on B2B platform, and G2G
collaborated with higher education institutions to initiate initiatives for government-sponsored students, as well as focus
and promote student mobility programmes. on greater international student engagements in Malaysia, be it
“In 2015, we had advertising campaigns run across 12 through social or Corporate Social Responsibility (CSR) projects.
countries to support our marketing initiatives, and apart from This would invoke a sense of belonging and help international
expanding presence in our key markets such as Asia, South students assimilate with the local multicultural society.”
East Asia, Middle East and Africa, we have also reached out In 2016, EMGS hopes to open International Student Centres at
to new markets, namely, Brazil, Turkey, Morocco, “ said Yazid. entry points, namely Kuala Lumpur International Airport (KLIA)
He added that aggressive campaigns by EMGS have and KLIA2. “Through these centres, we would be able to welcome
resulted in a steady year on year increase in the number of students more effectively as well as provide first timers relevant
international student enrolment. 2015 saw the total enrolment briefings to help them navigate their stay and studies in Malaysia.”
³ Final international students enrolment obtained only after AuP exercise by PwC was completed
CREATING TALENTS
Provost and Chief Executive
Officer of Heriot-Watt
University Malaysia (HWUM)
TO MATCH DEMAND
E
mployers these days are knowledge to analyse and solve establish Malaysia as an international
looking beyond academic problems which are skills required hub for higher education." said Craik
qualifications for graduates by employers. HWUM currently offers foundation,
with good communication, analytical The Higher Education sector is well undergraduate and postgraduate
and problem-solving skills as well as developed in Malaysia and there is a courses in Engineering (Chemical,
the ability to work in teams. wide range of good universities, said Petroleum, Mechanical, Electrical and
"Employers come with all sorts Craik. However, many institutions still Civil Engineering), Quantity Surveying
of different needs. Some are only tend to focus on traditional learning, Construction, Business, Accounting,
interested in graduates who can which values facts and knowledge, Actuarial Science and Psychology. The
be productive on day one without so not all graduates are prepared for university, which started operations
considering the skills necessary to global employment. in 2013, presently has approximately
adapt as business needs change. Other As information becomes freely 1,000 students and plans to grow to
companies, particularly multi-national available on the internet, the focus is some 6,000 students in the longer term
companies, focus more on skills that now moving towards helping students under Phase 2.
are useful in the long term and provide to apply knowledge and skills when HWUM recently launched Go
support for graduates at the start of solving a problem. All universities Global which is a new initiative
their career.” are moving in this direction but to encourage students to transfer
“A university education that does some are slower than others. These between campuses. There are
not impart these general skills along changes take time and benefit from currently 15 Malaysian students who
with sound technical knowledge will similar changes to be taking place in are spending 2015 in the UK and 30
not create talented graduates who schools,” Craik added. UK students who are currently at the
are successful in the global market,“ The presence of well-ranked Malaysian campus. These numbers
said Professor Bob Craik, Provost and foreign universities in Malaysia, are expected to grow as students
Chief Executive Officer of Heriot-Watt such as HWUM, allows Malaysian spread the word about the exciting
University Malaysia (HWUM). students to experience high quality opportunities of studying overseas
HWUM, which was established UK education without leaving the without the problems associated with
in Putrajaya in September 2012, is a country. As a university that operates changing institutions.
branch campus of the almost 200- year- globally, HWUM produces graduates “Ongoing improvement
old Heriot-Watt University based in with the same knowledge and skills include the review of curriculum to
Edinburgh in the United Kingdom (UK). irrespective of the location in the world. incorporate new teaching methods
According to Craik, the UK and Employers who tend to be large multi- and the use of technology to support
Australian universities in Malaysia national companies know and trust the learning. In Phase 2 of our expansion,
have adopted a style of learning that graduates from Heriot-Watt. we will be building extensive research
has less emphasis on the learning of "Foreign universities are also facilities as well as extending the
facts and more emphasis on using attractive to foreign students and help portfolio of programmes.”
In an effort to address this issue, the that there is industry training to equip this would increase the employability
MoE studied extensively the possibility these TVET students with the skills and of graduates, allowing them to receive
of introducing a new policy on the competency demanded by the industry. better employment options, higher
minimum qualifications requirement Vocational training, which was compensation and improve their
for preschool teachers. This involves once considered an option of last career mobility.
engagement sessions with various resort, is now highly sought after. A As for local students, the target is
Ministries, agencies and the private strong TVET workforce with high- to increase participation from 39,153
sector. A Cabinet decision is expected value and specialised skills will in 2015 to 70,000 by 2020 especially
to be reached in 2016. improve innovation and productivity in the Malaysia Skills Certificate
In an effort to increase the number of industries and this is integral to (Sijil Kemahiran Malaysia, SKM) 1
of qualified ECCE professionals, an Malaysia’s transformation into a high- and 2, capturing larger proportion of
ECCE hub, a PPP initiative with the income nation by 2020. underserved segments and increasing
SEGi Education Group is currently There has been considerable proportion of students taking higher
being developed. When completed, the growth in the TVET sector in the past level SKM. For this purpose, the
integrated ECCE hub in Kota Kemuning, years. As of 2015, there are a total of Government has allocated more
Selangor will house all the necessary 102,045 students enrolled in the skill- than RM1.17 billion from 2011 to 2015
facilities to provide necessary education based programs, of which, 2,539 are to the Skills Development Fund or
and training for ECCE professionals. international students. The 2020 target Perbadanan Tabung Pembangunan
Among the more significant for international student enrolment in Kemahiran (PTPK).
achievement in the PPP initiatives TVET is 16,000, through efforts of the In the efforts to develop students
is the effort to develop and promote Government, the private skills training with SEN, 40 seats were secured at the
Technical and Vocational Education institutions and EMGS. Berjaya University College of Hospitality
and Training (TVET) for students who There are also ongoing efforts to in KL and Asian Tourism International
are less inclined towards academic strengthen linkages between public (ATI) College in Sabah, to conduct
education as well as for students with and private TVET institutions with training programmes in Hospitality.
special needs. companies to promote industry These programmes have been lauded
The participation of the private oriented workplace training under by both parents and industry partners
sector in TVET is not only to the National Dual Training System. as a positive move that have resulted
complement the Government’s effort This would involve work-based in placement of students with SEN in
to enhance the quality and quantity of learning programmes in actual employment with Starbucks, Krispy
TVET programs offered but to ensure industry setting and efforts such as Kreme, Deli France, KFC among others.
(Left) Under EPP5, the Government has allocated more than RM1.17 billion from 2011 to 2015 to the Skills Development Fund (Right) Technical and Vocational Education
and Training students learning basic skills that meet industry needs and are able to contribute effectively to society
International Islamic University Malaysia (IIUM) President, Tan Sri Dr Rais Yatim (left) sharing a light moment with participants after officiating the International Council
of Islamic Finance Educators (ICIFE) 2nd Annual General Meeting. Also present were IIUM Rector, Prof Datuk Seri Dr Zaleha Kamaruddin (second, right) and ICIFE
Founding President, Professor Dr Khaliq Ahmad (right). Photo courtesy of BERNAMA Images
The Education NKEA is also the International Council of Islamic education, primarily due to the lack
developed around discipline clusters Finance Educators (ICIFE), a globally- of consensus on standard education
which shape the ETP’s human capital recognised professional association for curriculum for Islamic finance.
needs in accordance with global Islamic finance educators. Launched This EPP also aims to increase
industry requirements and trends. a year ago, ICIFE‘s objective is to student enrolment in Islamic finance
These clusters include Islamic finance standardise the quality of Islamic education to 54,000 students by
and business (EPP7), health sciences finance education worldwide 2020. In 2015, 16,293 Islamic finance
(EPP8), hospitality and tourism (EPP9), and is supported by Bank Negara students were enrolled, an increase
game development (EPP15) and Malaysia, MoHE and all local higher of approximately 19 percent from the
accounting (EPP17). The development education institutions. previous year. GNI impact targeted by
of these clusters is also part of an on- EPP7’s main aim was to develop 2020 is RM1.2 billion, along with the
going ETP effort to create regional Malaysia into one of world’s leading creation of 4,300 jobs.
and global education hubs in these Islamic finance and business education EPP8’s Health Science Education
specialised areas. hubs. Despite being positioned as a Discipline Cluster is gaining traction
A notable achievement in the leading centre for Islamic finance, again with the construction of the
Islamic finance and business education Malaysia lags behind as a provider UCSI University Teaching Hospital
clusters was the establishment of of Islamic finance and business in Bandar Springhill, Port Dickson.
Dato' P. Kamalanathan, Deputy Education Minister I (left) officiating the launch of Politeknik Merlimau as MyCenTHE and fifth cluster leader while Dato'
Peter Ng, founder of UCSI University and champion of EPP10 (most right) and YB Datuk Wira Hj. Yunos bin Husin, State Exco for Education, Higher
Education, Science and Technology, Green Technology and Innovation (middle) look on
The 1,000-bed teaching hospital will Blood Pressure Control research Led by the Malaysia Centre for
push new paradigms in the training with London School of Hygiene Tourism and Hospitality Education
and practice of medicine, elevating the and Tropical Medicine funded by (MyCenTHE) working in partnership
quality of healthcare in Malaysia. It will the Newton Ungku Omar Fund with the Malaysian Association of
be the first private teaching hospital in Hotels (MAH), this EPP focuses on
The Effects of the Haze on
Malaysia, with a public wing. the growth of hospitality and tourism
Human Health research project
The UCSI University Teaching education. The aim is to increase the
with several leading Universities
Hospital is exploring collaborations share of graduates with diplomas and
with some of the world’s best in Indigenous Health Matters degrees from 13 percent of the number
medicine. These partnerships will also research project with a of people employed in the industry as
act as a catalyst in the development of consortium involving Australia, of 2010 to 50 percent by 2020.
the health science education cluster. New Zealand, Canada and The aspiration of this EPP is to
The UCSI hospital is expected to lead Malaysia governments. support the elevation of service levels
many ground breaking initiatives within the tourism industry. This
The total planned investment
including the establishment of a will do more in retaining existing
for Phase 1 (130 beds) is RM285.9
hospital-linked retirement village. customers and attracting new ones
million and the total investment for
Apart from the discussions to set as opposed to resorting to price war of
the whole project is expected to be
up a centre for precision medicine,
RM773.9 million. hotels and organisations (employers)
there are also cross border global
The focus of EPP10’s Hospitality at the expense of wages and salaries of
research initiatives in the pipeline in
and Tourism Cluster is to accelerate employees. The move in this direction
the following areas:
the development in the Tourism NKEA is more in line with the nation’s
Epidemiologic Transition by addressing matters pertaining to aspiration of becoming a premier
in low and middle income human capital development, such as tourism destination.
countries to be supported low wages, low skills and the influx of There is a positive spill-over effect
by research funding low-skilled foreign labour. from tourist spending from both new
AGRICULTURE TO
MINISTER OF AGRICULTURE & AGRO-BASED
INDUSTRY (MOA)
AGRIBUSINESS
The agrofood sector plays
an important role in Malaysia’s
economic development, providing
employment and uplifting
incomes. Because of the large
number of people dependent
on it, the sector also has a social
importance.
The growing global demand
for agricultural products provides
great potential to expand the
sector’s contribution to GNI. Our
aim is to transform agriculture
into agribusiness, moving towards
a model which is inclusive but
simultaneously anchored on
market-centricity, economies of
scale, and value chain integration.
Beyond that, the sector
contributes to the security and
sovereignty of the nation by
ensuring self-sufficiency of one
of the most strategic resources,
namely food. History has proven,
in times of war or peace, the
sovereignty of a nation could
be easily crippled by its over-
dependency on foreign or imported
sources of food.
1 Capitalising Malaysia’s
Competitive Advantages
High-value herbal products unlock a tremendous value dimension in the agricultural sector. The Herbal Cluster Programme, like the one pictured above in Negeri Sembilan,
is one of the initiatives championed by the Department of Agriculture and Herbal Development Division to encourage more players to get involved and capitalise on this
growing market
The high-value herbal products RM3.85 million in sales. The sales for now, given that the nutraceutical
EPP is on track to meet its end-2020 CAGR for herbal products rose to 6 products are still in the development
target of producing 10 nutraceuticals percent during the period of 2012-2013, process, there is little demand for
and cosmeceuticals products derived compared to 5.4 percent over 2008-2012. these premium herbs. Therefore, the
from 18 identified herbs, amongst Since the inception of this EPP, farmers are not motivated to plant all
which are Tongkat Ali, Kacip Fatimah, prices of herbal materials have these 18 herbs but are more inclined to
Misai Kucing, Dukung Anak, and increased, benefiting the local farmers. only plant herbs that are in demand,
Hempedu Bumi. As at December 2015, For instance, fresh tongkat ali was sold including several lower-value herbs.
there were 27 such herbal products in for as low as RM 2/kg in 2014. In 2015. Moving forward, the DoA will
the product development stage – 10 in it increased to RM 5/kg. streamline the planting of the
clinical trials, 17 in pre-clinical trials. This EPP has the potential to identified herbs, once the products
During the year, the herbal cluster produce better results focusing on the have completed clinical trials and
projects accumulatively generated 18 identified high-value herbs. But as are ready for the market.
(Top left) Dairy cattle feeding at Evergreen Livestock Sdn. Bhd Dairy farm in Keningau, Sabah (Right) Milk Packaging Facility at Evergreen Livestock Sdn Bhd processing
plant in Sabah under EPP13 (Bottom left) Mr. Loi of The Holstein Milk Company at Mawai Dairy Farm, Kota Tinggi, Johor under the Dairy Cluster EPP
HOLSTEIN'S
SUCCESS STORY
T
he fast-track rise of Farm Fresh The EPP, led by Department While Holstein has two farms of its
to the top of the nation’s fresh of Veterinary Services (DVS), gave own, some 40 percent of its raw milk
milk category is nothing short RM11 million worth of grants that needs are sourced by Allied Dairy from
of spectacular. A new kid on the block went to the purchase of pregnant about 40 contract farmers, located
only four years ago, the local brand cows, milking equipment, and chiller in Johor and Negeri Sembilan. These
now leads this competitive market with tanks – these were given to farmers farmers are paid RM2.50 per litre, a
38.3 percent share (source: Nielson, selected by Allied Dairy, which in turn big jump from the RM1.50 they used
September 2015). purchases raw milk from them at a to get, significantly boosting their
Farm Fresh producer, The Holstein fair price. income and sustainability.
Milk Company Sdn Bhd, attributed its
rather unexpected success to the Dairy
Clusters EPP (EPP13). A member of the
Holstein group, Allied Dairy Sdn Bhd,
was appointed an anchor company of
the EPP13 in 2012 and Holstein itself
was appointed an anchor company to
EPP13 in 2014.
The success of Holstein, the
country’s only integrated fresh milk
producer, in penetrating and now
leading the market hitherto dominated
by foreign companies for the past 20
years is a testament of a good business
plan and solid execution of an EPP in
creating a local champion.
The Malaysian dairy industry had
prior to the EPP languished for over two
decades. The foreign players have little
reason to help develop local farmers
as imported milk powder cost only
50 percent the price of fresh milk.
What little fresh milk they sourced
locally, they paid based on the world
commodity price of milk powder.
As such, local farmers had found it hard
to maintain a sustainable business. Farm Fresh products that is available in major supermarkets
FORWARDING
MINISTER OF HEALTH
MALAYSIA’S
A country’s healthcare system
has significant social impact, both
direct and indirect. Malaysia’s
HEALTHCARE
healthcare sector has seen robust
growth in the past decade, and
continues to be one of the nation’s
INDUSTRY
highest economic multiplier.
Implementation of the
healthcare EPPs has catalysed
new growth areas. Since its
inception in 2011, the NKEA has
attracted some RM2.44 billion of
investment into the country, and
created some 8,100 higher-value
jobs. Infrastructure has either
been built or upgraded, and both
specialist skill-sets and technology
have been harnessed to improve
the quality of care for patients.
The Private Aged Healthcare
Facilities and Services Bill is
targeted to be tabled in Parliament
second quarter of 2016. While we
are excited in anticipation for
the flourishment of the aged care
industry, we are fully aware that this
industry is still in its infancy state
in Malaysia. The challenge now is
to provide a favourable ecosystem
for the stakeholders and industrial
players. To achieve on that, the
Government is working hard not
only on the legislation part as
F
will work closely with the Malaysian
rom the onset of the Economic
Healthcare Travel Council (MHTC), Transformation Programme INSIDE THIS NKEA
the Malaysian Investment (ETP), the healthcare sector
Development Authority (MIDA) and has been deemed as a high-potential 1 Promoting and Positioning
Malaysia's Healthcare Services
the Ministry of International Trade wealth creator. Leveraging on organic
and Industry (MITI) to counter the growth in services, pharmaceuticals
Through 2015, Malaysia generated Malaysian pharmaceutical exports products for the year was revised from
RM588.6 million in healthcare travel as of October amounted to RM516.09 RM671.78 million to RM641.24 million.
revenue for the period January to million in 2015, lower than the RM505 While the local healthcare
September 2015 at an average response million during the same period in 2014. industry has long been dominated
rate of 79 percent, while the target set Challenges this sector faced during the by the public sector, growth in
for the full year is RM854 million (Re- year included depreciation of the ringgit private healthcare services has been
baseline 2014: RM777 million). Health against the US$, increased cost of exponential over the past decade. In
tourist revenue for the three quarters Active Pharmaceutical Ingredient (API) the interest of creating the necessary
reached RM353.2 million of the full year and packaging materials, non-tariff conditions for the private healthcare
target of RM516 million (Re-baseline barriers imposed by other countries industry to thrive as a key economic
2014: RM449 million). Year-to-date (e.g. Indonesia and Thailand), and sector, the government has been
results forecast total healthcare travel competition from ASEAN state lending its weight to expedite growth.
numbers for 2015 to achieve above 90 members. Consequently, the export
percent of full year targets. growth target for pharmaceutical
to-end services to potential healthcare visiting specialists programmes and to expand promotional activities into
travellers to Malaysia – from treatment training support. Indonesia’s second and third tiers
enquiry and quotation to visa Malaysia Healthcare’s strongest cities, as well as to develop Malaysia
arrangements and logistics. markets are Indonesia, constituting Healthcare’s overseas presence and
To facilitate greater healthcare 62 percent of total healthcare revenue brand positioning in the other focus
mobility and in the effort to foster numbers, followed by the Middle East countries, working closely with
collaborations in MHTC’s key markets, (7.4 percent), India (3 percent), China Tourism Malaysia, Malaysia External
MHTC ventured into health insurance (2.6 percent), Japan (2.6 percent), Trade Development Corp (MATRADE)
portability agreements with insurance Australia and New Zealand (2.5 and the Ministry of Foreign Affairs.
and third-party administrator percent) and the UK (2.5 percent). In addition to Malaysia’s medical
partners in Bangladesh, Vietnam and Emerging markets such as China, excellence in cardiology, orthopaedics,
Indonesia, and several key hospitals Central Asia and the greater ASEAN oncology, neurology and dentistry,
in Malaysia throughout 2015. These region will continue to be an active there have been growing demands for
agreements allow policyholders contributor to our Healthcare sector. its superiority in infertility treatments,
to seek healthcare treatments in Projected growth in terms of healthcare particularly for IVF treatments, with
partnering hospitals in Malaysia under traveller arrivals in 2016 is expected to Malaysia’s leading fertility hospital
their existing insurance schemes. come from the Middle East, Australia, reporting IVF success rates of 66
Together with the private hospitals, New Zealand, Bangladesh, Vietnam percent in 2013 against the global
MHTC is leading government-to- and Myanmar. The weaker ringgit average of 50 percent, alongside
government cooperation between also presents renewed opportunities increasing demands for treatments in
Malaysia and the rest of the world, from Singapore. cosmetics surgery and rehabilitation.
especially Middle Eastern and Indonesia remains Malaysia
Commonwealth of Independent States Healthcare’s leading market (61.7
(CIS) countries, with patient referrals, percent in 2015). MHTC will continue
MOH signed two OTAs in 2015 with local drug manufacturer Kotra Pharma (M) Sdn Bhd for the supply of Diamicron MR 60mg (left) and Vastarel MR 35mg (right)
The introduction of the OTA the provision of OTAs and by Subsequently, Servier obtained
scheme under EPP3, part of an effort expediting the registration of locally regulatory approval for the registration
to position Malaysia as a regional manufactured generics. The OTA of its Malaysian-manufactured Vasterel
export hub for generics, has generated initiative provides market access MR 35mg in Brunei, Singapore,
much interest from both MNCs and for the products via public sector Philippines, Myanmar, Hong Kong
local pharmaceutical companies. purchase and in doing so, attests and Thailand.
OTAs are a direct negotiation to the products’ safety and efficacy,
between the government and a local thereby providing confidence to
manufacturer for three years. A two potential export markets as well.
year extension may be given should MOH signed two OTAs in 2015
a local manufacturer able to export with local drug manufacturer
their products overseas. Kotra Pharma (M) Sdn Bhd in joint
Given the highly competitive venture with French multinational
global pharmaceutical landscape, pharmaceutical company Servier
the government aims to act as a for the manufacturing of the latter's
springboard to boost the marketability patented drugs Vasterel MR 35mg and
of Malaysian-made generics through Diamicron MR 60mg.
Malaysia’s aged care industry is planning principles, general planning, Secondly, legislation were
still in its infancy with a fledgling specific planning, and design established and regulations were
ecosystem. But with the awareness guidelines for the development of new strengthened. Two existing Acts –
raised in recent years, interest in the and existing houses that adopt ageing- Care Centre Act 1993 (Act 506), and
industry is rising. Various parties in-place concept, retirement villages, Private Healthcare Facilities and
– including hospitals, property and care centres for the elderly. Services Act 1998 (Act 586) – currently
developers, insurers and trade groups The guideline was approved by the govern the care of an older person
– have indicated strong interest in this Cabinet on 1 July 2015 and is awaiting under the purview of two separate
field. To prepare for the growth of this tabling at the next meeting of the Ministries, MoH and Ministry of
industry, an ecosystem must be put National Council for Local Government Women, Family and Community
in place. (MNKT) scheduled in early 2016. Development (KPWKM). KPWKM’s
Firstly, a physical planning After the MNKT, the guideline will Social Welfare Department governs
guideline for Senior Living facilities be presented at the State Planning the old folk homes, which target
were set up. In 2012, the Town and Committee (SPC) meeting of all the those in the lower income group with
Council Planning Department (JPBD) states in Peninsular Malaysia. Once no next of kin, while those who can
started developing a seniors living approved by the SPCs, the guideline afford it go to private nursing homes
facilities guideline for adoption by will be adopted and used by the local governed by MoH.
the local councils. The guideline covers councils in the respective states.
There are currently only 16 private re q u i r e m e n t s . M o r e o ve r, t h e country involving 112 care centre
nursing homes registered with MoH, current old folk’s homes need to be operators (registered under KPWKM)
which is grossly insufficient. The transformed into proper aged care and about 450 participants.
Department of Statistics estimates that facilities. The Private Aged Healthcare In the meantime, the ministry has
in 2015, the proportion of the Malaysian Facilities and Services Bill combines started to draft the regulations for
population aged 60 years and older the relevant sections from both Acts the Bill. Five workshops and seven
is 9.1 percent. Based on the current and will better govern the provision of meetings/discussions were conducted
projections, Malaysia is expected to services and facilities for the aged care with the stakeholders to gather their
reach ageing population status by the industry in a progressive economy. views and opinions on the Regulations.
year 2035, at which point 15 percent of The Bill has been submitted to The first draft of the Regulations will be
the total population will be 60 years the Attorney General of Chambers ready upon the finalisation of the Bill
and older. (AGC) for vetting. Prior to that, various by the Cabinet. The Bill is scheduled to
The two existing legislations syndications and consultations were be tabled in Parliament in the second
will not be able to meet future conducted – 11 sessions across the quarter of 2016.
(Left) Current site progression of the Active Retirement Living area of Eden-on-the-Park. (Right) Nursing room at Eden-on-the-Park
AHEAD IN A
MINISTER OF DOMESTIC TRADE, CO-OPERATIVES
AND CONSUMERISM
GLOBALISED
We have strived to promote a
competitive business environment
that encourages efficiency,
innovation and entrepreneurship
ECONOMY
through persistent enforcement
of the Competition Act 2010 (CA
2010) by Malaysia Competition
Commission (MyCC). Businesses
that are pushed to compete in their
home-ground would be equipped
to compete at a global level.
With the formation of the ASEAN
Economic Community (AEC) and
Malaysia becoming one of the
member countries under the Trans-
Pacific Partnership Agreement
(TPPA), liberalisation is at our
doorsteps and we must challenge
ourselves to compete. We cannot
aspire to become a high income and
developed nation without laying the
foundation to become competitive.
Businesses must shape up and
innovate in order to take advantage
of the vast market opportunity
liberalisation brings.
2 Rising Up the
Competitiveness Ranks
W
ith globalisation, an In line with this, Competition, These reforms aim to position
efficient and conducive Standards and Liberalisation under the private sector as the core engine
business environment the Strategic Reform Initiatives (CSL- of the economy by modernising
has to be nurtured and sustained to SRI) play a vital role to develop an business regulation, liberalising
increase Malaysia’s competitiveness efficient and competitive business the services sector, removing
as a preferred investment destination. environment and culture that support market distortions, improving the
There is huge potential to be tapped Malaysia’s goal of becoming a high- interface between Government and
with the AEC and the various bilateral income nation by 2020. CSL-SRI also businesses, introducing competition
and regional trade agreements focuses on reinforcing economic legislation and increasing the quality
including the TPPA and the Regional reforms that were undertaken during of goods and services through
Comprehensive Economic Partnership the 10th Malaysia Plan. standards compliance.
Agreement (RCEP).
and electronics, food and beverages standards compliance among a credible testing and certification
and agriculture sectors. The findings the industries. process. Products will need to undergo
of this study will be used to intensify Standards Malaysia also signed a conformity assessment procedures
promotion on the use of standards and Memorandum of Understanding with which include laboratory testing to
will be shared with central agencies Steinbeis Foundation Malaysia (STMY) obtain certification. Towards this
and Ministries to formulate relevant in June 2015 to conduct a Technology end, existing test facilities may need
policies to increase use of standards. Audit and gap analysis on standards to be upgraded to improve the testing
Stakeholder engagements, compliance for 30 selected companies infrastructure for products in Malaysia.
including a mini-lab with Certification as an effort to handhold the companies This will not only help the
Bodies as well as dialogue sessions to obtain certification. manufacturing industry become more
with Government agencies, Trade In line with initiatives to increase competitive, but also promote the
Associations and Multinational standards utilisation, Standards country’s services industry and help
Companies (MNCs) were held Malaysia will accredit more Conformity make Malaysia a testing hub.
throughout the year to increase Assessment Bodies (CABs) to ensure
(Top) A Standards Utilisation Workshop was held in September 2015 with Ministries and Central Agencies
(Bottom) A Capacity Building Programme for MS 9001 Quality Management System was held in August 2015 for SMEs
A Government Green Procurement (GGP) Action Plan Workshop was held in December 2015
In 2015, a total of 1,439 products conducted 14 workshops nationwide an effort to counter that, KeTTHA through
and services obtained certification as part of the MyHIJAU SME & MGTC embarked on an awareness
under MyHIJAU, an increase of 307.6 Entrepreneur Development Programme campaign on GGP for all Ministries and
percent (353 products) from 2014. This in 2015. These workshops were aimed Agencies. The Ministry of Education,
was mainly spurred by the mandatory at encouraging SMEs to implement Ministry of Health, KeTTHA, Ministry
requirements of Minimum Energy green technology applications and of Home Affairs and the Economic
Performance Standards (MEPS) adopt green practices as well as Planning Unit have been selected as pilot
for 5 domestic electrical products facilitate the registration of MyHIJAU implementers in this project.
(Air Conditioners, Refrigerators, mark for businesses producing green KeTTHA targets to expand the
Televisions, Domestic Fans and products and services. GGP implementation in 2016 with
Lighting) under the Electricity In 2015, continuous development the expansion to 12 products that
Regulations 1994 (Electricity Supply of business structure and support have been identified under GGP i.e.
Act 1990) which came into force on activities for MyHIJAU has increased cleaning services, ICT equipment, paint/
3 May 2015. Under MEPS, appliances the total number of Certification coating, fibre cement and EE Lighting,
that satisfy the safety and performance Bodies for MyHIJAU from 3 to 8. The building facilities, green data centre,
requirements (Energy Efficiency 5 additional MyHIJAU Certification multipurpose printing device, air-
Factor) must be issued with a Bodies registered with MGTC are the conditioning, apparel and furniture.
Certificate of Approval (COA) by the Malaysian Timber Certification Council In 2016, GGP will also be expanded
Energy Commission Malaysia. Prior (MTCC), Global GreenTAG Sdn Bhd, to the Ministry of Works, Ministry of
to MEPS, a Voluntary Energy Efficient GREENBUILDINGINDEX Sdn Bhd, BSI National Resources and Environment,
Appliances and Equipment standards Services Malaysia Sdn Bhd and DQS Ministry of Federal Territories,
and labelling programme was in place. Certification (M) Sdn Bhd. Ministry of Transport, Ministry of
The Ministry of Energy, Green Despite the increase in registration, Urban Wellbeing, Housing and Local
Technology and Water (KeTTHA) demand and awareness of green products Government; and Ministry of Rural and
through its agency, MGTC also remains low in the domestic market. As Regional Development.
Heads of States stand for a family photo before their East Asia Summit (EAS) meeting in Kuala Lumpur in November 2015
Services Sector Blueprint Launch by YAB Prime Minister Dato’ Seri Mohd Najib Razak in March 2015. Photo courtesy of BERNAMA Images
RESILIENCE FOR
MINISTER OF FINANCE II
ECONOMIC
economy. Battered at the tail end of
2015 by a series of challenges, both
from the external environment
GROWTH
as well as conservative investor
confidence, our ringgit like most
economies in this region, was in a
flux against the US dollar alongside
oil prices, which took a beating due
to a supply glut.
Having embarked on the
N a t i o n a l Tr a n s f o r m a t i o n
Programme in 2010, our economy is
in a more resilient shape to take the
challenges we were subjected to in
2015. With the target of reducing
our fiscal deficit at 6.5 percent in
2009 of the GDP and keeping a lid
on Central Government debt at
maximum amount of 55 percent
of annual Gross Domestic Product
(GDP), we had to embark on a
series of disciplined public finance
reforms to get government finance
in check.
Under this SRI in 2015, we saw
successful implementation of the
Goods and Services Tax (GST) after
almost 30 years of building the
case to introduce the broad-based
consumption tax in the country. GST percent on the back of low oil prices 3 Goods and Services Tax
2
the oil and gas industry. from subsidy rationalisation,
Additionally, the move to as well as the development of
remove subsidies for fuel at the other economic sectors under 015 was a year of challenges.
The rapidly declining crude oil
end of 2014, resulted in cost savings the Economic Transformation
prices along with the value of
of an estimated RM10.7 billion in programme have helped mitigate
the ringgit against the US dollar, came
2015, enabling this savings to this effect somewhat. in as an unexpected shock, placing
be channelled back as part of We head into 2016 knowing considerable strain on the economy
social safety net programmes for that it will be a rough year from and demonstrating what we had
deserving Malaysians. an economic standpoint, but always known – the need to reduce
our reliance on oil-based revenue.
As part of the discipline in also taking comfort in the fact
The fact that Malaysia has been
transitioning towards a high that forward looking and prudent
able to reduce its dependency on
income nation, in 2015, the measures have been taken to oil and gas (O&G) revenue from 41
Government was able to reduce create buffers that will enable us percent in 2009 to 21.5 percent of total
our deficit to 3.2 percent of GDP as to face this situation with some Government revenue, places us in a
targeted. Malaysia’s borrowings as degree of confidence. It will be a much better position than countries
of end of 2015 was at 54.5 percent test of the resilience enhancing whose revenues crashed with the
plunge in crude oil prices.
to GDP, which is still below the 55 measures we have worked so hard
Our relatively more diversified
percent self-regulated debt ceiling. to put in place. sources of revenue, the implementation
Since 2010, the Government of Goods and Service Tax (GST),
has also been able to reduce and rationalisation of subsidies
dependence on oil revenue by have provided a certain amount of
driving contributions from other cushioning from the plunge in oil
prices. Additionally, the final private
sectors and areas. This is essential
consumption expenditure which
to ensure that other sectors are
registered a 4.9 percent growth in 2015,
able to buffer the impact of sharp coupled with increased investments by
volatilities oil prices. For example, the private sector had also helped us
in 2015, oil revenue dropped to 19.6 in weathering the storm.
The initiatives of SRI PFR mainly THESE INITIATIVES INCLUDE: Implementation of Accrual
focused on the taxation system with Accounting system
Enhancement of tax
the Ministry of Finance (MOF) being the
administration and Implementation of Goods
sole driver for this initiative, supported
compliance – direct tax and Services Tax (GST)
by its agencies namely Inland Revenue
Board of Malaysia (IRBM), the Royal Enhancement of tax
Malaysian Customs Department administration and
(RMCD) and the Accountant General’s compliance – indirect tax
Department (AGD).
Ease of understanding Simpler, but unfamiliar Greater complexity, but familiar to more people
Non-financial asset
No information provided Provides information on asset use
management
Countries use a range of cash accounting bases, Countries use different accrual accounting
Comparability
policies are generally not explained well standards. Seek compliance with IPSAS
Disincentives for fraud Better than cash, but depends on the internal
Limited
and corruption control environment (among other things)
DISPARITY
MINISTER IN THE PRIME MINISTER'S DEPARTMENT
INCLUSIVENESS
has surpassed its Key Performance
Indicator (KPI) targets set for the
year and this encompasses the
AND
increase of RM3.69 billion in market
capitalisation by 11 Skim Jejak Jaya
Bumiputera (SJJB) companies, with
SUSTAINABILITY
two companies breaching the RM1
billion mark.
Various initiatives spearheaded
by TERAJU have resulted in RM63.4
billion of business opportunities
for Bumiputera companies via its
key programmes, notably the Carve
Out and Compete Programme,
High Performing Bumiputera
Companies Programme (TeraS),
Bumiputera Entrepreneurs Start-
up Scheme (SUPERB) and Skim
Jejak Jaya Bumiputera (SJJB).
Given the challenging
economic climate in 2015,
TERAJU has placed greater focus
on enhancing and broadening its
initiatives in order to build a more
resilient and competitive pool of
Bumiputera companies. This has
led to the development of strategic
T
companies. There is therefore he Narrowing Disparity
a greater need to enhance their Strategic Reform Initiative INSIDE THIS SRI
capacity to compete in an open (SRI) was devised to address
and liberalised economy. In order inequality between the Bumiputera 1 Facilitating Growth for High
Performing Companies
to ensure that the implemented share of the economy in relation to
efforts will not be derailed its population and other groups.
by liberalisation, effective
It is aimed at helping Bumiputera 2 Leveraging on Collaborative
Capacity-Building
companies to develop and enhance
new programmes focusing on capacity, and improve competitiveness
human capital development, and reduce reliance on Government
sustainable wealth ownership contracts, and improve Bumiputera under this SRI are built around the
and entrepreneurship will be representation in market equity, Bumiputera Economic Transformation
developed, as recommended in high value-added occupations and Roadmap which was launched in
management positions. November 2011. Five areas for a
the 11th Malaysia Plan.
These initiatives are spearheaded game-changing development of the
TERAJU will intensify its efforts
by Unit Peneraju Agenda Bumiputera Bumiputera economy were brought into
by forging effective collaborations (TERAJU) which has been mandated to focus – education, employment, income
to upscale Bumiputera companies lead, coordinate and drive Bumiputera levels, wealth creation and the overall
to compete in the market. economic participation. The initiatives performance of Bumiputera companies.
The newly established Perbadanan Wakaf Nasional Berhad (PWNB) is tasked to spearhead and implement corporate Waqaf initiatives
F
Malaysia (SKM) in 2015 to scale up 20 high
or many of us, visits to the “For Dental Spa itself, every day
performing Bumiputera cooperatives to
dentist often invoke feelings we are forced to turn away up to nine
move them to the next level.
of extreme anxiety. To make a patients because we are not just not
Towards the effort to empower
difference, Patang Saharing decided able to cope."
small, medium and micro-enterprises,
to establish a dental practice that Patang attributes his success
TERAJU also collaborates with
incorporates an atmosphere of to TERAJU’s SUPERB programme,
the respective Economic Corridor
relaxation. “Dental Spa was created which provided valuable experience
Authorities to provide Bumiputera
to push for a culture of dental care as and introduced him to like-minded
entrepreneurs within their region with
well as to remove the stigma of trauma innovative entrepreneurs, trainers and
specialized funding schemes, training
and fear associated with dental clinics. mentors who inspired him.
and other capacity building initiatives.
More often than not, this is due to the “SUPERB not only helped me to
Institut Keusahawanan Negara
rather clinical atmosphere of most prepare for opportunities out there
(INSKEN), being a unit under TERAJU,
clinics and at times, the rudimentary but also to be more discerning. The
is tasked to identify and implement
setting of rural clinics.” emphasis placed on quality in self,
capacity building initiatives with the
“When patients are calmer, it service and products offered has
objective of equipping Bumiputera
becomes easier to administer treatment, helped create the extremely confident
entrepreneurs with tools and
making their visits to the dentist more entrepreneur that I am today.”
knowledge relevant to the industry.
therapeutic.” In 2015, as a result of increasing
This effort is aimed at developing
The positive image of dental demand and market prominence,
and identifying potential as well as
practice spearheaded by Dental Spa Patang moved Dental Spa to a
effective training mechanisms to
has been a resounding success, evident much bigger premise and upgraded
achieve the national entrepreneurship
in the increasing number of patients its equipment and machines, as
development aspirations.
in his clinic. Hence, Patang plans to part of his expansion plan. “I am
At present, 7,871 underprivileged
develop a chain of Dental Spa in Sabah looking to creating a more conducive
students have benefited from the capacity
and eventually, the whole of Malaysia. environment for my staff to enable
building initiatives under Yayasan
“Tawau currently has only eight them to face challenges that come with
Peneraju Pendidikan Bumiputera which
dental clinics including government the expansion of this business.
range from academic and technical as
clinics, servicing a population of more
well as professional education.
than 400,000 people and we are not
Institut Keusahawanan Negara
able to meet the growing demand for
(INSKEN) and Yayasan Peneraju
dental care.”
Pendidikan Bumiputera are part of
Bumiputera Economic Transformation
Roadmap initiatives.
ALL GEARED
UP FOR
LIBERALISATION
Dato' Husni Salleh
TERAJU Chief Executive Officer
T
ERAJU’s main agenda has market, relying heavily on government EMKAY Group and the construction of
always been to ensure that contacts and concessions. For a the Malaysia International Trade and
Bumiputera companies are majority of these companies, their Exhibition Centre (MITEC), all valued
able to compete and excel in a liberalised biggest clients compose of either the at a total of RM36.06 billion.
economy. In spearheading the National Government or Government-linked The early success of the TeraS
Bumiputera Empowerment Agenda, companies, seeing very few tap into programme is evident from the
most of TERAJU’s initiatives focus on the international market. interim performance review of the MRT
upskilling and preparing Bumiputera While the battle to shift the project, which is the first project to be
businesses for both TPPA and AEC dependency mindset has been subjected to the Carve-Out & Compete
together with ensuring the objectives challenging, one of the institutions Programme.
of Bumiputera development as stated under TERAJU, INSKEN has played Firstly, as of 2015, 47 percent of the
in RMKe-11 are achieved, said its Chief a huge part in pushing companies to contracts awarded by MRT Corporation
Executive Officer Dato’ Husni Salleh. spread their wings and venture into were to Bumiputera contractors,
The Narrowing Disparity Labs new markets. which is higher than the minimum
began when Malaysia started According to Dato’ Husni, they have Carve-Out and Compete threshold
participating in the TPPA negotiations, been upfront with TeraS companies on of 42 percent. Secondly, the interim
and at the time, TERAJU was already the need to compete given that there review also revealed that out of the
receiving constant feedback on what are no guaranteed contracts from three top performing contractors in the
to expect once the agreement is signed. either the Government or TERAJU. MRT project, two of them were TeraS
“As a result, liberalisation is While being recognised as a TeraS companies.
something that we take into serious company has numerous advantages, In 2015, TERAJU created more than
consideration when designing many of including the opportunities for funding RM60 billion worth in investments,
our programmes. We wanted to ensure and capacity development, it does not business, financing and human capital
that Bumiputera companies are able to preclude one from competing with development opportunities. Moving
compete in an intensely competitive other TeraS companies as well as non- on, TERAJU will continue to focus
environment, alongside being well- TeraS Bumiputera companies on upskilling and empowering more
equipped and poised to take advantage Through its Carve-Out and Compete Bumiputera companies to become
of the new market opportunities Initiative, Bumiputera companies are global players.
brought about by liberalisation.” provided opportunities to participate
Furthermore, he felt that many in mega government projects such
Bumiputera companies were as KVMRT Line 1, Menara Warisan
extremely confined to the domestic Merdeka, development projects by
ECONOMY
MINISTER OF HUMAN RESOURCE
WORLD-CLASS
that Malaysia is able to achieve
its high-income aspirations by
2020. Additionally, an efficient
and effective labour market is
WORKFORCE
necessary to attract investments
into Malaysia and enable everyone
to participate in and enjoy the
benefits of economic growth.
In championing HCD, I wish
to highlight the emphasis the
Government has placed on skills
development in the 11th Malaysia
Plan (11MP) which comes into
force in 2016. This is necessary
because 60 percent of the 1.5
million newly created jobs under
11MP will require skills from
Technical Vocational Education
and Training (TVET). It is crucial
that the Malaysian workforce is
upskilled to compete in the more
liberalised economy of the future.
In terms of achievements for 2015,
the Human Capital Development
Strategic Reform Initiative (HCD-
SRI) successfully met most of its
KPIs on the back of enhanced
collaboration across numerous
ministries due to the wide scope of
human capital development.
T
companies, as reported by the
he HCD–SRI, which oversees
Companies Commission of INSIDE THIS SRI
the wide area of human capital
Malaysia and BURSA respectively. development is tasked with
Capacity building and upskilling
programmes such as MyProcert
the upskilling of Malaysian workforce 1 Strengthening Leadership
and Policy Efficacy
to meet the demands of a nation in
and TVET were ongoing in 2015 transition towards high income status.
and expected to continue to gain
momentum as we move into 2016.
It is also meant to prepare
the Malaysian work force for a
2 Building Capabilities Through
Skills Training
more liberalised economy with
We stand today at a very
implementation of the Association
important juncture for human
capital development in this country.
of Southeast Asian Nations (ASEAN) 3 Inclusiveness in the Workplace
to Increase Productivity, Improve
Economic Community (AEC) and Motivation and Talent Retention
The foundation of our education Trans-Pacific Partnership Agreement
system is being improved through (TPPA). Liberalisation under AEC and
the Education NKRA and NKEA. As TPPA will increase competition in the Some of the notable achievements
we step up towards high-income workforce due to the greater mobility include the improvement to labour
status and with liberalisation of skilled workers from other ASEAN laws, the implementation of Minimum
knocking at our doors, the need countries and beyond. Wage and Minimum Retirement Age,
Since the inception of the National an increase in upskilling initiatives to
to upskill our current workforce
Transformation Programme (NTP) in move towards fulfilling the target of
and become globally relevant is
2010, efforts under HCD-SRI have been a 35 percent high skilled workforce
of utmost importance. geared towards creating more inclusive by 2020 and the creation of more
The Government is committed and progressive labour policies, facilitative environment within the
in fostering a conducive landscape improving workers skills and pushing Malaysian workforce to attract and
for the best talents to thrive. for greater diversity in the workforce. retain talent.
1 Strengthening Leadership
and Policy Efficacy
To drive the human capital facilitate accelerated industry-led 2013, with additional labour indicators
development agenda under the programme delivery and streamline from the Department of Statistics and
11MP, a high-powered National standards across Ministries. These data from research studies for selected
Human Capital Development Council efforts will be guided by the need to sectors and economic corridors. With
(NHCDC) has been established ensure that academic and Technical the enhancement of the Labour Market
to define overall human capital Vocational Education and Training Integrated Data Warehouse (LMIDW)
development policy direction and (TVET) institutions produce quality scheduled to be launched in the first
determine initiative priorities. graduates whose skills match half of 2016, ILMIA is able to provide
The set-up of the NHCDC industry requirements. labour and supply data according to
championed by the Economic In the management of labour sectors and competencies.
Planning Unit was endorsed by the market information and data, efforts The Labour Market portal will be
Economic Council in November to improve content and presentation beneficial for all stakeholders namely
2015. Comprising key representatives continued in 2015. Ministries and agencies for their policy
from relevant Government Ministries The Institute for Labour Market interventions and supply planning, and
and agencies, as well as major Information and Analysis (ILMIA) industry players to obtain information
private sector players and industry is now strengthening its portal and on labour data as well as provide inputs
representatives, the agency will dashboard which were developed in on workforce requirements.
RETAINING WOMEN
Johan Mahmood Merican
TalentCorp Malaysia’s Chief
Executive Officer
IN THE WORKFORCE
A
ccording to the 2015 statistics that diversity has actually helped improve “double-burden syndrome” of taking on
by Towers Watson’s Global the bottom line and 56 percent admitted the added responsibilities of managing
Norm Database, women that it has helped them compete in new their home, caring for their children
make up merely 27 percent of industries or geographies. or the elderly.
managers globally. In Malaysia, TalentCorp Malaysia’s Chief “Once these women leave the
women consist of merely 31 percent Executive Officer Johan Mahmood workforce, they do not return to the
of the workforce in a managerial Merican said the continuous efforts workforce as compared to other South East
towards this at numerous levels have Asian countries such as Japan and Korea
capacity which is a small chunk,
shown results with female labour force which exhibits women returning to the
with 36 percent likely to leave their
participation rising from 46.8 percent in workforce in their late thirties onwards.”
employer within the next two years.
2010 to 53.6 percent in 2014. The greatest challenge is to
The importance of gender diversity
“We may rank below Vietnam persuade companies to adopt more
in the workplace and measures to
in terms of overall participation by flexible hiring and balanced work-
improve has been emphasised in the
women but with this increase, we life policies to ensure that valuable
10th Malaysia Plan and the most recent
are looking at an additional 600, 000 talents are not lost due to the lack
effort to promote diversity is the launch
women in the workforce as well as of work-life balance, said Johan.
of the 30% Club in Malaysia, which aims
an impact of 0.3 percent on the GDP "When approached on this matter,
to increase the representation of women according to the World Bank.” the standard response by companies
on corporate boards. Key measures taken by the include – why should we do it and can
Creating gender diversity in the Government to increase female we trust our employees.”
workforce is more of an economic labour force participation rate include In July - August 2015, TalentCorp
imperative than a gender issue as it encouraging more employers to and PwC Malaysia conducted a
involves retaining and attracting talents adopt flexible work arrangements, Diversity in the Workplace Survey to
that are valuable to economic growth. promoting childcare facilities, career better understand the current diversity
McKinsey's Women Matter: An Asian comeback programme for women landscape in public listed companies,
Perspective, 2012 highlighted how the and supporting the development of with the support of Bursa Malaysia.
increasing participation of women women entrepreneurs. The survey obtained responses from
in the workforce could potentially According to Johan, though two- 130 listed companies, encompassing
increase Malaysia’s GDP between RM6 third of graduates are women, a 1,094 members of the board and
billion to RM9 billion. significant percentage of women tend 464,092 employees in Malaysian
According to PricewaterhouseCoopers' to drop off the workforce in their late public-listed companies.
(PwC) annual CEO survey for 2015, out of 20s or early 30s, mainly due to work-life The survey also included 67 of Top
the two-thirds of Chief Executives whose balance issues. 100 listed companies, representing
companies have a formal diversity and A 2012 World Bank report attributes 70 percent of Bursa’s total market
inclusiveness strategy, 85 percent believed this to many women being caught in a capitalisation.
Male
TARGET
+6.8% 13%
5%
22%
32%
39% 40%
52%
55%
53.6% 95%
52.4% 87%
49.5% 78%
68%
47.9% 61% 60%
46.8% 48%
2010 2011 2012 2013 2014 2015 Overall Board CEO Top Senior Executive Non-
Management and Mid Executive
Management
Source: Department of Statistics Malaysia, 2014 Source: Diversity in the Workplace Survey of Malaysian PLCs by TalentCorp
& PwC Malaysia, 2015
IN THE BOARDROOM
B
y 2016, women are supposed to fill 2015, would lead the engagement with the of research showing that women in the
30 percent or more of the decision- corporate sector in an effort to accelerate boardroom help make more balanced
making positions in corporate the increase in women representation corporate decisions,” said Dato' Aziz.
Malaysia. This was the aspirational target in the boardroom. The 30% Club was Nevertheless, there is a growing
announced by the government in 2011. started in the United Kingdom in 2010 number of progressive male directors who
In his Budget 2012 speech, YAB to encourage women representation on are open to having women as directors,
Prime Minister Dato’ Sri Najib Tun Razak company boards. The Malaysian chapter he added.
said that Government will organise is the seventh, after UK, Ireland, US, South In an effort to create a large pool of
advanced management programmes for Africa, Hong Kong, and Australia. professional women with boardroom
women with potential to become board “Based on experiences in the UK, the experience, the 30% Club Malaysia, in
members, intensify advocacy activities move for diversity should be a voluntary collaboration with NAM Institute for the
for greater participation of women business-led decision to avoid ‘tokenism’ Empowerment of Women (NIEW), an agency
in the corporate sector and develop merely to fulfil legislative or regulatory under the Ministry of Women, Family and
a database of potential women directors. requirements. Doing it this way would Community Development, is providing
The 30 percent aspiration is also lead to a more meaningful and sustainable comprehensive boardroom training for
emphasised in the 11th Malaysia Plan. change in the corporate sector,” said Anne. women interested in board positions.
Creating diversity at the top would most Studies have shown that companies who “Companies can also refer to our repository
definitely pave way for greater diversity in have a higher proportion of women in top of potential women directors for their board.”
other parts of the organisation, said Anne management perform better than their The new government policy which
Abraham, the Chief Executive Officer of industry peers. allows for top executives in government-
LeadWomen Sdn Bhd and co-founder of In the UK, the Club has achieved linked companies (GLCs) to serve on
the 30% Club Malaysia. 26.1 percent women representation on the boards of other listed companies,
She however pointed out that gender FTSE-100 boards in October 2015, against will also increase the number of women
diversity in Corporate Malaysia cannot solely the goal of 30 percent by end-2015. With executives with boardroom experience.
be a government-driven agenda because, many CEOs of top FTSE companies among The government has urged all listed firms
without the involvement of the corporate their members, the Club has grown as an to adopt similar policy.
sector, there would not be much traction. international movement. A future move in this direction would
From 2008 to 2014, women Former Chief Executive Officer of be the Bursa Malaysia requirement for
representation in senior roles in companies Malaysian Directors Academy (MINDA) and listed companies to not only disclose the
grew just by 2.7 percent, to tip the scale at a Co-founder of the 30% Club Malaysia Dato' composition and diversity of their boards
mere 10.7 percent in 2015 despite vigorous Aziz Bakar said that the journey to change and top management in terms of gender,
campaigns by the government. For the top mindsets in corporate sector is a long and ethnicity and age but also to state their
100 public listed companies by market at times, frustrating journey. target and timeframes to achieve it.
capitalisation, the percentage of women “There are a large number of The target by 31 December 2016 is to
company boards grew from 13 .2 percent corporations that are still very ‘old school’ ensure that Malaysia achieves 30 percent
in 2014 to 14 percent in 2015. in thinking, where board members tend women representation on the Top 100
She added that the Kuala Lumpur to regard the boardroom as the boys-only companies, in order for Malaysia to be fairly
Chapter of the 30% Club launched in May club. This is despite the growing body benchmarked with the other countries.
EXPENDITURE
BUDGET 2015
T
he GTP’s performance and expenditure budget is presented here in the
interests of transparency and accountability. Priding itself on emphasising
cost-effectiveness where possible, the GTP sets itself apart from other
projects, and thus allows for greater savings in areas where possible so long as it
does not impede the achievements of the NKPIs.
Meanwhile, budget expenditure is not reported for the Economic Transformation
Programme (ETP) as the ETP is private-sector driven and contains market sensitive data.
1.1 Roads Delivery (km length) 697 732.22 105 100 1.0
1.2 Water Delivery: Number of Households 7,500 9,399 125 100 1.0
1.3 Electricity Delivery: Number of Households 13,319 14,430 108 100 1.0
1.5 Road Maintenance (km length) 313 322.5 103 100 1.0
2.1 AGRI EPP7: Large Scale Premium Fruits or Vegetable Farm - Number of Farms 2 2 100 100 1.0
2.3 Percentage of 2013 Rural Business Challenge winners achieving 30% increase of income 80% 85% 106 100 1.0
1 Number of KL Budget Taxi Fleet - at par with ASEAN Best-in-Class 3,749 1,895 51 51 0.5
2 KL Monorail Expansion Project: Number of 4 car train sets delivered and commissioned 12 5 42 42 0.0
3 Bus Rapid Transit Corridor 1 (KL - Klang) project: Cabinet approval on funding model 100% 90% 90 90 0.5
4 Percentage of completion on the streamlining of Klang Valley Stage Bus Network according to Corridors 100% 100% 100 100 1.0
5 Percentage completion of design for the KTMB Ticketing System (AFC) 100% 54.9% 55 55 0.5
6 ITT Gombak project: Finalisation of the Supplementary Agreement (based on the latest decision) 100% 100% 100 100 1.0
7 Urban Public Transport Customer Satisfaction Level (GKL/KV) 75% 74% 99 99 0.5
9 KTM Komuter On-time Performance during AM Peak (within 10 minutes) 85% 95.14% 112 100 1.0
10 Number of additional parking bays at Klang Valley rail network 1,600 229 14 14 0.0
13 Number of Budget Taxis installed with Centralized Taxi Service System (TEKS1M) 1,500 0 0 0 0.0
Operationalisation of the Performance Monitoring Hub System (PMHS) for all Stage Buses in GKL/
17 100% 83.2% 83 83 0.5
KV by SPAD
1.0 Number of new participants participate in 1AZAM programme 18,500 19,945 108 100 1.0
2.0 Number of new existing AZAM participants increased their income by RM300 for any 3 months 22,387 18,880 84 84 0.5
3.0 Number of 1AZAM participants in Financial Literacy Programme 18,500 13,960 75 75 0.5
4.0 Number of 1AZAM projects in colloboration with NGO and Corporate Sector 28 37 132 100 1.0
5.0 Number of 1AZAM community / group based programme 60 65 108 100 1.0
Beyond 1AZAM participants obtained minimum 50% increased in income from existing AZAM
6.0 2,100 1,511 72 72 0.5
project for a consecutive of 3 months
7.0 Percentage of updates recorded in eKasih 100 100 100 100 1.0
1 Nationwide pre-school enrolment, including NGO (4+ and 5+ years only) 88% 84.63% 96 96 0.5
2 English literacy rate among Year 3 students 90% 94.1% 105 100 1.0
8 Percentage of primary school head masters receiving New Deals 5% 3.42% 68 68 0.5
10 New English teacher trainees achieved A or A+ SPM in English before entering IPG 100% 100% 100 100 1.0
11 Percentage of PPD assessed to obtain baseline rating 100% 100% 100 100 1.0
12 IPG Strategic Plan is developed by December 2015 100% 100% 100 100 1.0
i. Percentage of teachers starting with B1 entry level proficiency increase by at least one band higher
13 100% 93.46% 93 93 0.5
ii. Percentage of teachers starting with B2 entry level proficiency increase by at least one band higher
15 New English teachers from IPG, IPTA and IPTS achieved C1 based on CEFR before posting 100% 66.2% 66 66 0.5
3 Percentage reduction in Reported Street Crime 15% 16.9% 113 100 1.0
4 Percentage development of Crime Perception Indicator 100% 100% 100 100 1.0
5 Number of PDRM Mobile Patrol Vehicles (MPVs) that are beyond lifespan to be replaced 25% 33.9% 136 100 1.0
Percentage of Orang Kena Pengawasan (OKP) who attended treatment programme in the
6 57% 36.7% 64 64 0.5
community to maintain recovery for a year
Upskilling of Inmates:
7 i. Number of inmates undergoing certified skill training 100% 117.1% 117 100 1.0
ii. Percentage completion of a training facility for prisoners to learn new skills
3 Transparency International (TI) - Corruption Perception Index (CPI) score 55% 50% 91 91 0.5
4 Percentage of disposal of corruption cases within 1 year upon registration 85% 84.5% 99 99 0.5
6 Tabling of AuG Report in every Parliament Session 100% 100% 100 100 1.0
Percentage of resolution of cases highlighted in AuG Report Series 1-3 2013 successfully dealt with
7 85% 80.6% 95 95 0.5
within 1 year after being tabled in Parliament
8 Percentage completion on insertion of corporate liability provision in MACC Act 100% 60% 60 60 0.5
9 Number of Corporate Integrity Pledge (CIP) signatories implementing prevention measures 40 41 103 100 1.0
Percentage of results of direct negotiation contracts published online, excluding Strategic and
10 100% 100% 100 100 1.0
Security contracts
11 Percentage of Public Private Partnership (PPP) projects to sign Integrity Pact 100% 100% 100 100 1.0
PSDT Index
i. Number of participating ministries
1.1 100% 155% 155 100 1.0
ii. Number of projects mobilised
iii. Number of projects closed in the reporting year
1.2 Number of Knowledge Transfer Programme (KTP) pilot projects 2 2 100 100 1.0
Roll out of the new maintenance model to main roads and protocol roads:
Percentage of road maintenance conducted within:
2.1 i. Below 3m2: 12 hours 100% 100% 100 100 1.0
ii. Above 3m2: 2 days
iii. Maintenance team to inspect sites for road repairs in 18 hours
2.2 Percentage of reduction on breakdown hours for lifts 60% 60% 100 100 1.0
TPC-Oral and Healthcare Clinical Information System (OHCIS) Development: Showcase VER 1.0
4.1 100% 100% 100 100 1.0
at one OHCIS clinic (showcase basic dental application features)
6.1 Number of additional MOH Hospitals implementing LEAN Healthcare - reducing waiting time 10 16 160 100 1.0
Number of approved application under Returning Expert Program 800 616 77 77 0.5
EPP2: Attracting
Percentage of issuance of Employment Pass Process within 5 working days 70% 71.5% 102 100 1.0
the right mix
2
of internal and
New JPA scholars under STAR Program 2,000 1,019 51 51 0.5
external talent
Number of approved application under Residence Pass-Talent Program 1,000 1,113 111 100 1.0
EPP3: Connecting Completion of SPAD’s draft bilateral agreement between MY and SG 100% 50% 50 50 0
KL to Singapore via
3
a High Speed Rail
Percentage completion of approval for MY portion of alignment 100% 60% 60 60 0.5
system
Number of trains delivered and tested at Sg Buloh Depot 15 24 160 100 1.0
Water quality results from 3 selected water quality monitoring stations meet
EPP5: Revitalising WQI ≥ 60 (Class III)
the Klang River i. Sungai Gombak (Stn. Tun Razak) 100% 104.75% 105 100 1.0
5 into a heritage and ii. Sungai Klang (Stn. IFFRM - DUKE)
commercial centre iii. Sungai Klang (Stn. Dang Wangi)
for Greater KL/KV Water quality results from 5 selected River Water Treatment Plant meet
> 76.5 (Class II)
a. RWTP Sg. Gisir
b. RWTP Sg. Kemensah 100% 100% 100 100 1.0
c. RWTP Sg. Klang
d. RWTP Sg. Belongkong
**Drop RWTP Sg.Sering
Percentage completion of Policy Framework arising from the Market & Feasibility
100% 100% 100 100 1.0
Study of Freezed Government Land along River Beautification Corridor
Greening Greater Number trees tagged under Global Positioning Index (GPI) 30,000 35,043 117 100 1.0
KL to ensure
6 residents enjoy
sufficient green Number of trees sponsored 2,500 2,219 89 89 0.5
space
Heritage Trail 5: Percentage completion of the project 45% 45% 100 100 1.0
EPP7: Creating
7 iconic places and Countdown Clock 100% 87% 87 87 0.5
attractions
Heritage Trail 3: Number of suitable retail operators changed 2 7 350 100 1.0
EPP8: Creating a
comprehensive Percentage completion of the outcome evaluation report for walkways
8 100% 100% 100 100 1.0
pedestrian constructed between 2011 - 2014
network
EPP9: Solid Waste Increase the recycling rate :Percentage completion of regulation
9 100% 70% 70 70 0.5
Management on separation at source to be amended by August
Langat sewage treatment plant and network 100% 100% 100 100 1.0
Percentage of construction of Pipe Network in Petaling Jaya Utara (Package D47) 65% 72.2% 136 100 1.0
BO BO#3: Sewerage Percentage of construction of Pipe Network in Kajang 1 & 3 (Package D49) 12% 14.9% 124 100 1.0
#3 Non-River
Percentage of construction of Pipe Network Lot 130 Klang (Package D55) 75% 86% 137 100 1.0
EPP3: Intensifying
3 Number of new explored wells
Exploration Activities
Committed Oil Storage Capacity (Mil m3)(cumulative target of 10 Mil m3) 0.83 1.25 151 100 1.0
EPP4: Building a Regional
4
Oil Storage & Trading Hub
Number of oil trading companies based in Malaysia 6 6 100 100 1.0
EPP6: Encouraging Amount of committed investment by Oil & Gas Supplier and
1,500 1,231 82 82 0.5
Investments in the Oil and Services and Equipment companies (RM mil)
6
Gas Services Equipment Realised Investment by Oil & Gas Supplier and Services and
(OGSE) Industry 1,000 1,439 144 100 1.0
Equipment companies (RM mil)
EPP8: Attracting MNCs to Set Number of new MNCs bringing their global operations to Malaysia
8 Up Preparations in Malaysia or mergers/JVs with local Oil Gas Services and Equipments (OGSE) 6 11 183 100 1.0
and Partner with Local Firms companies
9 EPP9: Energy Efficiency Percentage of completion on gazettement of Euro5 specifications 100% 100% 100 100 1.0
EPP11: Deploying Nuclear Percentage progress in obtaining Cabinet decsion on Nuclear Power
11 100% 0% 0 0 0
Energy for Power Generation Infrastructure Development Plan
Launch of Islamic equity crowdfunding platform 100% 100% 100 100 1.0
EPP3: Transforming or
Percentage completion of Draft Bill to amend the Financial
3 Rationalising Development 100% 100% 100 100 1.0
Institutions Act 2002
of DFI
EPP2: Modernising
2 via the Small Retailer Number of establishments modernized under the TUKAR programme 300 302 101 100 1.0
Transformation
EPP4: Transforming
4 automotive workshops Number of workshops modernized under the ATOM programme 180 188 104 100 1.0
(ATOM)
EPP5: Developing
5 Identify new Makan Bazaar site 1 1 100 100 1.0
makan bazaars
Number of virtual mall identified and operationalised in 2015 1 1 100 100 1.0
7 EPP7: Virtual Mall
Number of sellers subscribed to the Virtual Mall 75 212 283 100 1.0
EPP9: Making Malaysia Increase of Cost, Insurance and Freight (CIF) for
9 7.32 11.88 162 100 1.0
duty free 328 selected imported finished products (RM bil)
8,550
Area of replanting and new planting approved for smallholders (ha) (capped 100 100 100 1.0
EPP1: Accelerate the
1 at 100%)
replanting of oil palm
Area of replanting and new planting implemented by smallholders (ha) 15,000 15,798 105 100 1.0
Total FFB sold to mills by all cooperatives by year end (MT) 26,800 39,330.38 147 100 1.0
Number of new cooperatives that commence selling of FFB to mills 5 5 100 100 1.0
Progress of biogas plant construction for 8 new mills (%) 100 112.5 113 100 1.0
EPP5: Developing Biogas
5
facilities at Palm Oil Mills
Progress of 2 new mills with biogas plant connected to the grid (%) 100 250 250 100 1.0
Rubber EPP1: Ensuring Area of replanting and new planting by rubber smallholders (ha) 44,641 45,921 103 100 1.0
9 sustainability of the
upstream rubber industry Malaysian Export of Natural Rubber and Compound Rubber (mil mt) 1.3 1.0 77 77 0.5
Rubber EPP3:
11 Commercialising Ekoprena Sales of Ekoprena and Pureprena (mt) 700 646 92 92 0.5
and Pureprena
EPP3: Establishing Premium Establishment of 2nd Outlet Center in Malaysia; Opening of Mitsui
3 100% 100% 100 100 1.0
Outlets in Malaysia Outlet Park KLIA Sepang
EPP4: Establishing Malaysia Number of visitors to MMBH Sites 625,000 755,399 121 100 1.0
4 as a Mega Biodiversity Hub
Percentage completion of upgrading of Sepang Environmental
(MMBH) 70% 70% 100 100 1.0
Interactive Centre (EIC)
Number of cruise passengers at Malaysian ports 500,000 523,272 105 100 1.0
EPP6: Developing
6
Cruise Tourism
Number of international cruise calls at Malaysian ports 404 487 121 100 1.0
EPP8: Establishing
8 dedicated entertainment Number of approved designated entertainment & lifestyle premises 2 2 100 100 1.0
zones
EPP10: Establishing
Malaysia as a leading
10 Number of delegate days for events secured/year by MyCEB 370,000 334,493 90 90 0.5
business tourism
destination
EPP11: Enhancing
Total weekly seats to identified priority countries
11 connectivity to priority 129,500 125,432 97 97 0.5
by all Malaysian carriers
medium-haul markets
EPP3: Developing Number of jobs created from new Integrated Circuit (IC) design firms 40 13 33 33 0.0
3 Integrated Circuit
Number of companies involved in Green Motion Controller (GMC)
Design Firms 2 3 150 100 1.0
chip in pre-commercialization validation and qualification
EPP6: Growing wafer Additional MW local solar wafer and cell production
6 30 500 200* 100 1.0
and cell producers in Northern Corridor
EPP8: Developing LED Number of high impact project approved for material substrate
7 1 1 100 100 1.0
front-end operations supplier or epitaxy manufacturer
Number of new products to enhance Test & Mesurement local ecosystem 10 10 100 100 1.0
Number of high impact project in operation for Automation Equipment 1 1 100 100 1.0
EPP14: Building
T&D manufacturer accepting MIDA's offer as
14 transmission and 1 1 100 100 1.0
to start the manufacturing the T&D equipment
distribution companies
* Achievement is capped at 200%. JinkoSolar set up its first overseas solar cell and solar module fab in Penang in May 2015. This facility provided the company with
an additional capacity of 500MW for solar PV cells and 450MW for modules, which significantly exceeded target
EPP16: Development of
Number of high impact projects approved for Balance of Systems
16 Balance of Systems for 1 1 100 100 1.0
for Solar PV industry
Photovoltaic
Total number of new quality NKEA E&E projects approved by MIDA 11 11 100 100 1.0
Percentage realised investment of E&E sector projects since 2011 till 2014 65% 78% 120 100 1.0
Total approved investment for E&E sector (RM bil) 6.0 8.9 148 100 1.0
EPP1-20: Cross
1-20
cutting enablers Number of R&D projects collaborated with academia and private
20 16 80 80 0.5
sector where CREST grants approved
Overseas sales revenue (RM mil) 2,318 2,506 108 100 1.0
EPP2: Building globally-
2 Number of new jobs created 13,200 16,370 124 100 1.0
competitive outsourcers
Public Sector Data Centre Outsourced - Number of agencies 10 25 250 100 1.0
EPP7: Making Malaysia The Total Revenue (RM Mil) 550 588.9 107 100 1.0
Hub For Aerospace OEMs In
7
South East Asia Leveraging Additional Investments from spin-off companies (RM Mil) 580 353 61 61 0.5
On ‘Asia Aerospace City’
Number of SMEs completed assessment and identification
5 5 100 100 1.0
of scope for purpose of certification of AS9100 or NADCAP
Revenue of export from Creative Content (RM mil) 600 890.31 148 100 1.0
1 EPP1: My Creative Content
Total estimated production spending under the "Film in Malaysia
400 457 114 100 1.0
Incentive" (RM mil)
7 EPP7: Broadband For All Percentage of access (coverage) to LTE wireless broadband 58% 53.5% 92 92 0.5
8 EPP8: Extending Reach Number of Program Sites Commissioned 950 983 103 100 1.0
Private pre-school enrolment, including NGO (4+ and 5+ years only) 454,177 426,246 94 94 0.5
EPP1: Scaling up early child
1
care and education centres
Private childcare enrolment rate (0-4 years) 9.4% 6.07% 65 65 0.5
Scaling up private skills training provision 38,000 39,153 103 100 1.0
Number of students trained in industry based approach 6,500 8,451 130 100 1.0
EPP5: Scaling up private
5
skills training provision
Number of new TVET students studying in Malaysia 1,200 2,539 212 100 1.0
Percentage of graduates with competencies of Level 3,4,5 SKM 35% 41.3% 118 100 1.0
EPP11: Launching
11 Number of students enrolled in EduCity@Iskandar 3,000 4,022 134 100 1.0
EduCity@Iskandar
EPP12: Championing Number of international student enrolled 125,000 140,420 112 100 1.0
12 Malaysia's international
education brand Number of post-graduate international students enrolled in HEIs 30,000 26,538 88 88 0.5
EPP14: Building a games Number of students enrolled in private HEIs with games
14 500 458 92 92 0.5
development cluster cluster contact
NKEA — AGRICULTURE
Total export of Edible Bird Nest product (MT) 200 262.79 131 100 1.0
EPP2: Expanding the production
2
of swiftlet nests
Total number of newly registered of EBN Premises 3,000 1,344 45 45 0.0
EPP3: Venturing into commercial scale Total production of Seaweed under Cluster and
3 1,500 1,235.53 82 82 0.5
seaweed farming in Sabah Mini Estate (MT)
EPP4: Farming through integrated cage Total production of farmed fish by anchor
4 11,500 8,627.86 75 75 0.5
aquaculture systems companies (MT)
5 EPP5: Rearing cattle in oil palm estates Total cattle population in oil palm estates 42,500 43,741 103 100 1.0
EPP7: Upgrading capabilities to produce Total production from Taman Kekal Pengelularan
7 55,000 54,489.14 99 99 0.5
premium fruit and vegetables Makanan (TKPM) and anchor companies (MT)
Total tonnage of fragrant rice produced. (MT) 2,500 2,719.58 109 100 1.0
Introducing fragrant rice variety for non-
9
irrigated areas
Total area planted (Ha) 1,000 1,027.46 103 100 1.0
EPP10: Scaling up and strengthening paddy Total land area amalgamated (Ha) 5,000 5,029 101 100 1.0
10
farming in Muda area
Number of blocks on detailed design and
57 57 100 100 1.0
preparation of contract document of tertiary system
Total production from amalgamated land (MT) 83,570 103,603.971 124 100 1.0
EPP11: Scaling up and strengthening of
11
paddy farming in other irrigated areas
Total land area amalgamated (Ha) 7,700 8,079.29 105 100 1.0
17 EPP17: Developing pasar komuniti Total revenue generated from PAKAR (RM million) 75 76.608 102 100 1.0
NKEA — HEALTHCARE
EPP2: Creating a supportive Number of new clinical trials 214 201 94 94 0.5
2 ecosystem to grow clinical
research Number of clinical trials performed in MOH facilities 120 128 107 100 1.0
EPP4: Reinvigorating Revenue generated from Healthcare Travellers (RM mil) 854 900.04 105 100 1.0
health travel through better
4 customer experience,
proactive alliances and niche Revenue generated from Healthcare Tourists (RM mil) 516 574.18 111 100 1.0
marketing
Number of fruit and vegetable farms certified under myGAP 750 692 92 92 0.5
Number of livestock farms/premises certified under myGAP 1,834 2,328 127 100 1.0
2 Number of new products under MyHIJAU Programme 1,100 1,439 131 100 1.0
3 Number of Food Production Establishments Certified for food safety assurance system (MeSTI) 1,078 1,152 107 100 1.0
4 Number of new certifications obtained by companies from Accredited Certification Bodies 1,000 1,052 105 100 1.0
1 Enhancement of tax administration and compliance - Direct Tax (LHDNM), RM mil 2,000 2,043 102 100 1.0
2 Enhancement of tax administration and compliance - Indirect Tax (RMCD), RM mil 150 222.03 148 100 1.0
1 Total value of business opportunities created for Bumiputera companies (RM bil) 7.3 14.53 199 100 1.0
Achieve financing approval for Bumiputera companies at a minimum of 2.5 times against
2 2.5 3.07 100 100 1.0
respective government funds received
Percentage completion of identification of critical skills gap report 100% 95% 95 95 0.5
Number of new companies offering flexible work arrangements 20 20 100 100 1.0
1
GEMS & Upskilling 7,000 7,137 102 100 1.0
Number of women placed under Flexworklife.my 200 256 128 100 1.0
Number of new childcare centres registered under Jabatan Kebajikan Masyarakat (JKM):
i. At the Workplace
ii. Institutions
100% 119% 119 100 1.0
iii. Government
iv. Registered Home Based
v. Notification for at-home care below 4 children
2
Data collection system to be extended to all registered childcare centres 100% 89% 89 89 0.5
Number of trained childcare minders through Kursus Asuhan PERMATA or Kursus Asas Asuhan
800 1,254 157 100 1.0
(for home-based childcare)
Number of employers inspected for Minimum Wages Statutory 34,100 41,009 120 100 1.0
Percentage completion of engagement sessions conducted with stakeholders and identification of areas
of amendment (including policy changes and process improvement) of the Review of the Employment Act 100% 100% 100 100 1.0
1955 & Industrial Relations Act
Number of approved applications for certification of MyProCert 3,000 3,169 106 100 1.0
4
Industry-Academia Collaboration (IAC):Number of Talent developed and Faculty Members (FM) 5,550 6,723 121 100 1.0
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