World Bank PSD Conference

ECONOMIC PLANNING UNIT

Malaysias Economic Development with emphasis on Public-Private Collaboration

By Dato Abd. Rahman Husin, Deputy Director General (Sectoral), Economic Planning Unit, MALAYSIA
May 2006

1 Malaysia, EPU &

BRIEFING OUTLINE

Development Planning

2
Public-Private Sector Collaboration An Overview Sectoral Perspective - Industrial Clusters

3 Privatization

5 Conclusion
2

MALAYSIA AND ETHIOPIA

Country Profile

MALAYSIA : GEO-POLITICAL STRUCTURE

Independence : 31 August 1957 Form of State : Federated constitutional monarch Administrative Division : 13 states and 3 Federal Territories Total area : 330,242 sq km Land : 329,042 sq km Water : 1,200 sq km (Ethiopia : 1.1 million sq km land area) Climate : Tropical; annual southeast (April-Oct) and northeast (Oct-Feb) monsoons Land Use : Arable land : 3% Permanent crops : 12 % Forests : 68 % Others : 17 % Language : Bahasa Malaysia (Official), English, Chinese, Tamil Religions : Islam, Buddhism, Hinduism, Christianity & Others

Map

MAIN FUNCTIONS OF EPU

Formulate policies and strategies in development planning Prepare long and medium term plans Prepare development programmes & project budget

EPU MALAYSIA

Monitor & evaluate the achievement of development programmes & projects Advise government on economic issues Initiate & undertake necessary economic research Plan & coordinate the privatization programme & evaluate its achievement

Coordinate Malaysias involvement in the development of the Growth Triangle Initiatives

Initiate & coordinate bilateral & multilateral assistance

Manage the Malaysian Technical Cooperation Programme

ORGANIZATIONAL STRUCTURE OF THE EPU

Director General
Deputy Director General (Macro Planning Division) Macroeconomics Distribution
Sections directly under the Director General

Deputy Director General (Sectoral Planning Division) Industry & E. Services Infrastructure & Utilities Social Services Agriculture Energy Development Budget Privatization Technical Services

Secretariat to the National Economic Action Council Secretariat to the Foreign Investment Committee General Services Legal Adviser

Human Resources
Regional Economics Environment Knowledge Economy

No. of officers : 250 No. of staff : 150 Total : 400

External Assistance

Planning Horizon . . .

PLANNING HORIZON AND MAJOR POLICY EVOLUTION

LONG TERM PLANNING Vision 2020, 1991-2020 First Outline Perspective Plan (OPP1), 1971-1990 Second Outline Perspective Plan (OPP2), 1991-2000 Third Outline Perspective Plan (OPP3), 2001-2010 MEDIUM TERM PLANNING Five-year development plans, such as the Ninth Malaysia Plan (2006-2010) Mid-term review (MTR) of the five-year Plans SHORT TERM PLANNING Annual Budget

Major Economic Policies

National Mission 2006 - 2020 National Development Policy (NDP) New Economic Policy (NEP) Post-

Vision 2020

TOTAL DEVELOPMENT Performance & Impact Oriented Development to achieve the goals of Vision 2020

Balanced Development, 1991-2000 Growth with Equity, 1971-90

independence

1957-70

Laissez-faire / export-oriented Economic and rural development

Transformation From an Agro-based to an Industrial-based Economy . . .

(GDP in RM billion at 1987 prices / Percentage to Total in italics) 300

RM billion
250
200

150
100 50 0
12.2 % 37.5 % 43.1 % 46.8 % 24.6 %

57.6 % 53.9 %

58.1%

31.9 %

30.8 %

31.4 %

17.2 % 21.0 %

26.7 %

16.3 %

8.9 %

8.7 %

8.2%

1970 Agriculture

1980 1990 2000 Construction Manufacturing

2003 Mining

2005 Services

Diversification Of Exports . . . (% to Total Exports)

Rubber 33.4
Tin 19.6 Forestry 16.3 Others Oil & gas 9.8 Palm Oil 3.9 Manufactures 5.1 11.9 Palm Oil Oil & gas Others 3.6 9.2 Forestry Tin Rubber 4.2 1.2 1.1 0.2 Manufactures 80.5

1970 RM 5,163 million (US$2,065 million)

2005 RM 533,790 million (US$141,588 million)

Real GDP Growth . . .

ECONOMIC PERFORMANCE
Average 1971- 80 Average 1981- 90 Average 1991- 2000 Average 2001- 05 2000 2001 2002 2003 2004 2005 2006e 7.5 % 5.8 % 7.1 % 4.5 % 8.5 % 0.3 % 4.4 % 5.4 % 7.1 % 5.3 % 6.0 %

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DEVELOPMENT PLANNING

The Guiding Parameters

Open economy
Mixed system Multi racial society

federation
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DEVELOPMENT PHILOSOPHY

Partners In Development . . .
through a MIXED ECONOMIC SYSTEM of free enterprise but with active government support and direction The GOVERNMENT provides the broad thrusts and sets direction for the whole economy, and ensures the achievements of socio-economic goals

The PRIVATE SECTOR is free to operate and given appropriate policy, institutional and infrastructural support.

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DEVELOPMENT PLANNING MACHINERY

PARLIAMENT Cabinet Ministers National Planning Council
Draft Policy

National Economic Action Council (NEAC), National Economic Consultative Council (NECC)
Secretariat

National Development Planning Committee

Draft

National Action Council

Economic Planning Unit

Private Sector Dialogue
Proposal
Proposal Circulars

Implementation & Coordination Unit

General framework
Consultations Circulars

Inter-Agency Planning Group (IAPG)

Proposal

Federal Ministries & Agencies

State Governments

Private Sector

PUBLIC-PRIVATE COLLABORATION

Malaysia Incorporated Policy . . .

Launched in 1983 ~ marked the introduction of structured public-private sector collaboration Stresses the importance of cooperation between public and private sectors Establishment of several consultative panels/ dialogues comprising members from the public and private sector Budget & MITI dialogues Malaysian Business Council Government began instituting major policy initiatives

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MAJOR POLICY INITIATIVES

Economic liberalisation & deregulation Improving investment policies & incentives Ensuring a business-friendly environment Administrative & institutional improvements One-stop centres Systems & procedures for licensing Clients Charter Productivity improvements TQM, KPIs Public service delivery Providing an integrated industrial infrastructure

SUPPORTING PRIVATE SECTOR INITIATIVES

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TOWARDS 2020 ~ THE NEXT PHASE

Ninth Malaysia Plan, 2006 2010 The National Mission, 2006 2020
1. Moving the economy up the value chain

5. Strengthening the countrys institutional & implementation capacity ~ establish a more effective implementing & monitoring mechanism

Five Key Thrusts

2. Raising the capacity for knowledge and innovation, and nurturing first class mentality

4. Improving the standard and sustainability of the quality of life

3. Addressing persistent socioeconomic inequalities constructively and productively

To achieve the goals & objectives of Vision 2020

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Thrust 1

To move the economy up the value chain

THE NATIONAL MISSION, 2006-2020

Increasing productivity, competitiveness & value-add Generating new sources of wealth & job creation in technologyand knowledge-intensive sectors

Giving

a lead role to the private sector, & increasing private sector investment by providing an enabling environment for doing business, enhancing SMEs development, increasing public-private partnerships as well as attracting targeted high-quality FDI Inculcating a culture of high performance & excellence in public & private sectors including GLCs

Expanding market for Malaysian products and services

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Thrust 5

To strengthen the institutional & implementation capacity

THE NATIONAL MISSION, 2006-2020

Improving

public services delivery by strengthening governance, streamlining administrative processes and measuring performance Improving usage and cost-efficiency of public sector funds by upholding financial prudence as well as improving the monitoring of implementation Addressing actual and perceived corruption in both the public and private sectors Enhancing corporate governance and delivery of private sector services by improving legal and regulatory frameworks Strengthening the role of Parliament, media & civil society

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ECONOMIC PLANNING UNIT

PRIVATIZATION

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PRIVATIZATION POLICY
PRIVATIZATION POLICY Privatization policy was launched in 1983
It represented a policy shift from public sector-led to private sector-led growth The policy has been an integral part of the national development policy of Malaysia

Objective of Privatization . . .
PRIVATIZATION POLICY

Reduce financial & administrative burden of the Government

Reduce public sector size & direct participation in the market place Promote competition, efficiency & productivity Accelerate economic growth

Meet the targets of NEP, NDP & NNM

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SCOPE OF PRIVATIZATION
Airports RM10.0 bn / USS2.9 bn
Ports RM7.8 bn /US$2.1bn

Power RM42.3 bn / US$11.1bn

Urban Transportation RM12 bn/US$3.2bn

Telecommunications/ multimedia RM6.6 bn /US$1.7bn

Roads/highways RM31.6 bn/US$8.3bn

Water treatment

PRIVATIZATION METHODS

Existing Projects/Activities : Outright sale (assets or shares) Lease Management-Buy-Out Management Contract New Projects : Build-Operate-Transfer (BOT) Build-Operate (BO) Build-Lease-Transfer (BLT)/Build-Transfer (BT) Guiding Principle : Choose a feasible method which maximize private sector investment Administrative machinery : Centralized planning and processing at the EPU Decentralized implementation by the ministries and State Governments 24 Standardization of terms and conditions of privatization

PRIVATIZATION POLICY

PRIVATIZATION ACHIEVEMENTS SINCE 1983

PRIVATIZATION POLICY

Total privatized projects Existing projects New projects Workers transferred to the private sector Savings (RM billion) Operating expenditure Development expenditure Proceeds from sale of Government equity

485 346 139 113,200 7.8 154.0 28.9 174.1 23.0

25

KLSE market capitalization (Oct 2005) RM billion (for 40 privatized entities) % to total market capitalization

PRIVATIZATION POLICY - LESSONS LEARNT

PRIVATIZATION POLICY

Need strong commitment by the Government Strong policy statements on private sector as the engine of growth Private sector must possess a certain level of expertise and readiness to undertake project & investment risks Require a well-developed financial market to support large scale investment Need proper planning, monitoring & coordination to ensure success in implementation Necessary to undertaken rigorous evaluation on project viability 26

ECONOMIC PLANNING UNIT

INDUSTRIAL CLUSTERS PUBLIC-PRIVATE PARTNERSHIP

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E&E Industrial Cluster

Major driver in transforming Malaysia from an agricultural to industrial exporter Took off in the early 1970s with export-oriented industrialization strategy FDI Attractive investment climate: Incentives Investment Incentives Act 1968 & Industrial Coordination Act 1975 provided better incentives to attract FDI in E&E sector Key support institutions, infrastructure & services Industrial Infrastructure Utilities & Telecommunications Air Cargo & Port Facilities HRD PSDC, Industrial Training Institutes, Universities and educated low-wage labour Leading industrial subsector 28% of manufacturing value added (2005) 65.8% of exports of manufactured goods 28 26.8% of total manufacturing sector employment

PUBLIC-PRIVATE PARTNERSHIP

Enhancing E&E Industrial Cluster Development Strategies

PUBLIC-PRIVATE PARTNERSHIP

Moving the value chain up by encouraging MNCs to shift more sophisticated/high tech operations to Malaysia Deepening supply chain by developing capabilities in domestic firms Increasing value added through the technology acquisition & development Generating synergy with the development of ICT & multimedia industry Nurturing global Malaysian-owned companies e.g. Globetronics, ENG Technology

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ECONOMIC PLANNING UNIT

CONCLUSION

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ROLE OF THE PUBLIC SECTOR

Strategic integrator & facilitator of development efforts in addition to its traditional role of administrator & provider of basic socio-economic infrastructure Develop long, medium and short term plans in pursuit of national socio-economic development goals Responsible for macro and socio-economic management towards socio-political, macroeconomic and financial stability Enhance liberalization and deregulation towards creation of a conducive environment for private investment Charting new directions and strategies for growth Custodian of public goods and spearheading social programmes Governance by networks collaborate with private firms, industry associations and NGOs & engaging citizens

CONCLUDING REMARKS

ROLE OF THE PRIVATE SECTOR

CONCLUDING REMARKS

Provide dynamism in spearheading the economy and be the engine of growth Improve efficiency & productivity towards the creation of a competitive private sector Engage foreign investors in mutually beneficial partnership and joint ventures Embark on R&D and innovation activities for wealth creation Develop long, medium and short term plans in pursuit of national goals

CRUCIAL ELEMENTS FOR SUCCESS

CONCLUDING REMARKS

Strong political and public sector support Sufficient level of empowerment Close collaboration among central agencies Ministries and implementing agencies

Strong partnership between public and private sectors

Effective communication strategy
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ECONOMIC PLANNING UNIT

THANK YOU
www.epu.jpm.my

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ECONOMIC PLANNING UNIT

HYPERLINKED SLIDES

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Thrust 2

To raise the countrys capacity for knowledge and innovation and nurture first class mentality

Promoting Islam Hadhari as a comprehensive & universal development framework for the nation Undertaking comprehensive improvement of the education system, from pre-school to tertiary level, from the aspects of curriculum and teaching to school facilities, with a special focus on raising the standard of schools in rural areas Enhancing national schools to become the peoples school of choice Producing universities of international standing and ensuring that tertiary institutions meet the needs of employers creating more avenues for skills development, training and lifelong learning for the labour force at all levels and for all ages, including in ICT Providing an environment and innovation system which encourages top-quality R&D and its commercialisation Refining and implementing programs which encourage the development of a strong moral and ethical culture as encapsulated in the National Integrity Plan Empowering youth & women to participate in national 37 growth and development

NATIONAL MISSION, 2006-2020

Thrust 3

To address persistent socioeconomic inequalities constructively & productively

Eradicating hardcore poverty by 2010 as well as reducing overall poverty Reducing disparities between rural and urban population & among states & regions via sustainable income-generating avenues & by improving access to basic needs such as housing, education, healthcare, utilities & transportation Developing less developed regions through regional growth centres Bridging the digital divide Addressing inter- and intra-ethnic disparities, particularly by raising incomes through the enhancement of skills & capabilities Promoting equal opportunities in employment towards reducing disparities in occupation & income as well as enhancing integration among the ethnic groups Creating a new generation of competitive Bumiputera entrepreneurs & enterprises Reviewing past restructuring policies and programmes to evaluate their effectiveness and impact, and to focus 38 future policies and programmes on merit and need

NATIONAL MISSION, 2006-2020

Thrust 4
Ensuring

To improve the standards and sustainability of the quality of life

better protection of the environment and more efficient usage of natural resources Enhancing energy sufficiency and efficiency, including diversifying sources of energy Increasing the efficiency of water services delivery Providing better public transportation to relieve congestion and reduce fuel usage Improving access to and quality of healthcare and affordable housing Ensuring public safety and security Enhancing the development and promotion 39 of Malaysian culture, arts and heritage

NATIONAL MISSION, 2006-2020

Investment Incentives . . .

SUPPORTING PRIVATE SECTOR INITIATIVES

Pioneer status or Investment tax allowance for manufacturing companies Incentives for small- & medium-scale enterprise Training and R&D Grant Incentives for high technology companies Incentives for strategic projects Incentives for R&D
Back

Other Incentives

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Investment Incentives . . .

SUPPORTING PRIVATE SECTOR INITIATIVES

Incentives for software development Pre-packaged incentives Incentives for exports General incentives Industrial building allowance Infrastructure allowance Import duty exemptions for:
o raw materials / components and o equipment & machinery
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Manufacturing Investment in Approved Projects, 2001- 2005

Capital Investment (RM million)
Industry Number Resource-Based Food Manufacturing Beverages and Tobacco Wood & Wood Products Furniture and Fixtures Paper, Printing and Publishing Chemical and Chemical Products Petroleum Products Natural Gas Rubber Products Plastic Products Non-Metallic Mineral Products Non-Resource-Based Textiles and Textile Products Leather and Leather Products Basic Metal Industry Fabricated Metal Products Machinery Manufacturing Electronics and Electrical Products Transport Equipment Scientific and Measuring Equipment Others Total 1,948 369 26 193 233 123 288 61 2 144 358 151 2,771 178 12 163 487 443 1,051 353 84 93 4,812 Domestic 25,612 (46.2) 3,469 ( 6.3) 142 ( 0.3) 2,267( 4.1) 1,363 ( 2.5) 6,418 (11.6) 5,004 ( 9.0) 1,787 ( 3.2) 50 ( 0.1) 1,442( 2.6) 2,050( 3.7) 1,620( 2.9) 29,303 (52.8) 1,171 ( 2.1) 57 ( 0.1) 9,308(16.8) 2,059( 3.7) 1,961 ( 3.5) 8,084(14.6) 6,157(11.1) 506( 0.9) 559( 1.0) 55,474 Foreign 23,903 (31.0) 2,303 ( 3.0) 470 ( 0.6) 943 ( 1.2) 297 ( 0.4) 4,850 ( 6.3) 3,025 ( 3.9) 6,289 ( 8.2) 0 ( 0.0) 963 ( 1.2) 1,760 ( 2.3) 3,005 ( 3.9) 53,068 (68.8) 947 ( 1.2) 17 ( 0.0) 5,502( 7.1) 2,177 ( 2.8) 1,535 ( 2.0) 35,290 (45.7) 5,388( 7.0) 2,212( 2.9) 181 ( 0.2) 77,152 49,516 (37.3) 5,772 ( 4.4) 612 ( 0.5) 3,210 ( 2.4) 1,659 ( 1.3) 11,268 ( 8.5) 8,029( 6.1) 8,076( 6.1) 50 ( 0.0) 2,405( 1.8) 3,810( 2.9) 4,625( 3.5) 82,371(62.1) 2,117( 1.6) 74 ( 0.1) 14,810 (11.2) 4,236 ( 3.2) 3,496 ( 2.6) 43,374 (32.7) 11,545 ( 8.7) 2,718 ( 2.0) 740 ( 0.6) 132,626 Total

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Providing An Integrated Industrial Infrastructure

SUPPORTING PRIVATE SECTOR INITIATIVES

TYPES

Industrial Zones Special Commercial Premises SME Industrial Estates Technology Parks

Industrial Corridors
Business Premises
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e-ENABLE SUPPLY CHAIN MANAGEMENT

PUBLIC-PRIVATE PARTNERSHIP

RosettaNet Malaysia - launched in 2002 Joint initiative by Fed agencies (MITI, SMIDEC), State agencies (PDC), Manufacturers Association (FMM), MIMOS MNCs, SMEs & Solution Providers Enables Malaysian suppliers to link to global E&E supply chain Reduce inventory costs, time to market & lower transaction costs No. of companies successfully implemented RosettaNet Standards increased from 33 in 2004 to 327 in Mac 2006

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ECONOMIC PLANNING UNIT

ADDITIONAL SLIDES

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Solution Providers : Hewlett-Packard Sales Microsoft Oracle Penang Network Services Cardos Automation System KarenSoft Technology* JSP Consulting e-Business LK Solutions Tradenex.com B2B Commerce NDT Software Consulting SCS Computer Systems SAP Malaysia* Formfill Australasia Dagang Net NEC BGlobal MnEBay GridNode Advanced Professional (India) Rank Alpha Sterling Commerce J.D. Edwards PeopleSoft Novell Global EXchange

RosettaNet Malaysia Partners include

Foreign MNCs :
Intel Dell Inventec IBM Infineon Fairchild Ericsson Kemet Seagate LSI Logic

Malaysian Companies :
LKT Industrial Globetronics Public Packages BCM Electronics TFS Electronics (Unico) 1st Silicon Polytool Tech Leong Bee Soo Bee Ire-Tex Dnonce San Yong Enterprise Federal Packages Genting Sanyen

Logistics Providers:
Priority Cargo

Associations & Clubs:

FMM

Government:
MIMOS,MITI,SMIDEC,PDC, MECM, EPU

ICT & Multimedia Hub: MSC Milestones

1996 Phase 1
Create the MSC

2003 The MSC: Next Leap

Grow MSC into a global ICT hub

2010 Phase 3

2020

Transform Malaysia into a knowledge society

1 Corridor

Web of corridors 4,000 MSC Status & 250 MSC Bill of Guarantees Global companies. 50 world-class 100,000 new jobs & RM69 bil companies revenue & RM2.5 bil exports Enhance ICT industry cluster Launch 7 flagship applications Enhance multimedia applications World-leading framework of Leadership towards cyberlaws harmonized global framework of cyber laws Cyberjaya as worldleading intelligent city Link to world leading intelligent cities

All of Malaysia

500 world-class companies

Global test-bed for new multimedia applications

International CyberCourt of Justice in MSC

Become net ICT exporter

Cybercities/cybercentres linked to global information highway
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Attain leadership in the Knowledge Based Economy

Milestones

MSC Phase 1

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MSC Next Leap (2004 2010)

Rollout MSC Cybercities/Cybercentres.

Kulim HiTech Park

Bayan Lepas, Penang

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Flagship Applications

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Companies in MSC

INSOURCE
Services delivered internally Telekom Malaysia Petronas

OUTSOURCE
Partner with external provider User: BCB Provider: EPIC-I (EDS)

LOCAL

Target Market Global /Offshore

Shared Services Pooling of resources to render common services costeffectively, leveraging on economies of scale 51

 Malaysia is ranked 3rd globally for global outsourcing location attractiveness Well developed, low-cost infrastructure and strong government support Created 8,000 high-value job opportunities in MSC SSO MSC created 12,000 jobs by end of 2005

Source: A.T. Kearneys2004 Offshore Location Attractiveness Index: Making Offshore Decisions

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Factor Conditions for Growth of MSC & Public-Private Sector Collaboration

SUPPORTING PRIVATE SECTOR INITIATIVES

Firm Government commitment Comprehensive package of incentives Bill of Guarantees Infrastructure Cyberlaws Incentives Competitive cost of doing business Emphasis on human capital development
Cont
53

Cont

Factor Conditions for Growth of MSC & Public-Private Sector Collaboration

SUPPORTING PRIVATE SECTOR INITIATIVES

Effective Institutional Mechanisms for Policy Directions, Implementation, Monitoring & Coordination International Advisory Panel Implementation Council Dedicated one-stop agency Multimedia Development Corporation (MDeC) with investor-friendly mindset to facilitate private sector investment
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Bill of Guarantees
Provide a world-class physical and information infrastructure Allow unrestricted employment of local and foreign knowledge workers Ensure freedom of ownership by exempting companies with MSC Status from local ownership requirements Give the freedom to source capital globally for MSC infrastructure, and the right to borrow funds globally Provide competitive financial incentives, including no income tax for up to 10 years or an investment tax allowance, and no duties on import of multimedia equipment
Cont
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SUPPORTING PRIVATE SECTOR INITIATIVES

Cont

Bill of Guarantees

SUPPORTING PRIVATE SECTOR INITIATIVES

Become a regional leader in intellectual property protection and cyberlaws

Ensure no Internet censorship

Provide globally competitive telecommunications tariffs Tender key MSC infrastructure contracts to leading companies willing to use the MSC as their regional hub Provide an effective one-stop agency Multimedia Development Corporation
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Biotechnology Industry Cluster

Position biotechnology as a new engine of growth & wealth creation Transform and enhance value creation of the agriculture sector through biotechnology Capitalise on strengths of biodiversity to commercialise discoveries in health-related products Ensure growth opportunities in industrial bio-processing and bio-manufacturing Establish R&D centres of excellence and accelerate technology development via strategic acquisitions Build human resource capability Create an enabling financial, legislative and institutional framework Foster greater public-private sector collaboration through Bio-Nexus network 57

PUBLIC-PRIVATE PARTNERSHIP

BIOTECHNOLOGY ACTION PLAN

PHASE I (2005-2010) Capacity Building
HR Development Est. Advisory and

PHASE II (2011-2015) Science to Business

Develop expertise

PHASE III (2016-2020) Global Business

Consolidate

Competitiv e& Leading Biotech Industry

Implementation Councils Est. Biotechnology Corp. Capacity Building in R&D Develop Agricultural, Healthcare and Industrial Biotechnologies & Bioinformatics Develop Legal and IP Framework Regional Biotechnology Hubs Develop BioNexus Malaysia as a brand Promote FDI participation Initial job and industry creation

in drug discovery & devt. New Products Technology Acquisition Intensify FDI participation Intensify Spin-off Companies Strengthen Local and Global Brands Develop Capability in Technology Licensing Job Creation

Strengths and Capabilities in Technology Further Develop Expertise in Drug Discovery and Devt. Leading Edge Technology Business Create greater value through Global Malaysian Companies Re-branding of BioMalaysia as Global Hub

Generating New Sources of Growth

Growth Areas Competitive Advantage
Strong Government support Well established agro and medical research base One of 12 mega diversity countries Create niche market Built upon local capability

Agro-biotechnology Higher value added crops and foods Natural products Health-Biotechnology Bio-Generics Diagnostics Vaccines Industrial Biotechnology Green Chemistry Biocatalysts Biomaterials Bio-Manufacturing

Demand for green technology applications Potential/new markets e.g. EU Environmental concerns
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Bio-Nexus Network
IAB UPM/MARDI
Agro-bio

IPN Dengkil
Healthcare-bio

Industry

Bio-Nexus
Industrial-bio

NINPVB Enstek, Nilai

Natural Products Vaccines

Food Cluster
Interactions between institutions & industry

Genome Centre UKM

Platform Technology 60

PUBLIC-PRIVATE PARTNERSHIP

Financial Services Cluster Labuan IOFC

5,152 offshore companies from 93 countries LOFSA a one-stop agency Promoting Labuan as a unique IOFC with specialization in Islamic financial products & services Strengthening legislation & guidelines Enhancing competitiveness to sustain attractiveness Incentives to attract strong foreign entities with global market linkages

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Palm Oil Industrial Cluster (POIC)

PUBLIC-PRIVATE PARTNERSHIP

Lahad Datu POIC - to add value to the oil palm industry, create jobs & business opportunities Designated palm oil industrial cluster & logistic hub for east ASEAN Developed by POIC Sabah Sdn. Bhd. with support from Federal Government Equipped with adequate physical infrastructure to attract private investment in upstream & downstream industries

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Halal Hub
PUBLIC-PRIVATE PARTNERSHIP

Development of halal product industry cluster to capture the growing share of the world halal market potential Credibility and worldwide recognition of JAKIMs halal certification system and logo Availability of needed resources and strong government support Establish Halal Industry Corporation Provision of various incentives as well as programmes for improvement in product quality and standards, training, promotion, branding & market access International Msia Halal Showcase (MIHAS)
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TIGeRs Supply Chain Model

Global Buyers

Government
1st Tier Suppliers

2nd Tier Suppliers

Service Providers
Vertical Integration of local suppliers

Govt. Agencies

Horizontal Integration with other businesses, services and government into the GSC