Posts tagged Malaysia 2020
Malaysia yesterday announced 15 initiatives, including nine new projects and seven recaps, as part of its Economic Transformation Programme (ETP). According to Prime Minister Najib Razak, the ETP is already bearing fruit despite running for only a short time.
Yesterday’s announcement was the sixth regular update of the ETP, and sees the programme reach 50% (or 65) of its 131 ‘Entry Point Projects’ launched. The 15 new initiatives promise to bring in RM2.77 billion (US$913.8 million) in investment, add RM66.31 billion ($21.87 billion) to Malaysia’s Gross National Income and create 36,595 new jobs by the target year of 2020.
The initiatives (with their national key economic areas) are: (more…)
Malaysia has announced a plan to build a ‘green economy’ and ‘smart cities’, enlisting the help of a panel of international luminaries to help develop a plan for the future.
Prime Minister Najib Razak was in New York to convene the 42-member Global Science and Innovation Advisory Council, which includes economist Jeffrey Sachs, tycoon Steve Forbes and chairman of the UN’s Intergovernmental Panel on Climate Change, Rajendra Pachauri.
The new Malaysian economy should focus on energy efficiency, science and technology, as well as educating and training its workforce to create more entrepreneurs and innovators. As well as chasing ‘quick wins’ in proven local industries like palm oil, Malaysia would also strive to create ‘smart cities’ and ‘smart towns’, with access to the internet as well as basic services like electricity and water. All would be provided efficiently with information technology.
This piece from Channel NewsAsia is cautious in its support for the new proposals and of Malaysia’s grand economic projects in general. Citigroup economist Kit Wei Zheng said that while Najib’s government had been successful at attracting more foreign investment, overall results were slower and did not match the announcements being made. Others, like Gurmit Singh of the Centre for Environment, Technology and Development Malaysia, questioned the meaning of ‘green economy’ and wondered if it meant just a ‘repackaging of products’.
Malaysia still suffers from a higher-than-average diaspora and brain drain, says the World Bank, with over 1 million of its citizens living in Singapore, Australia, Brunei and the United Kingdom, as well as the United States, Canada and New Zealand. Singapore accounts for over 50% of that total.
How it handles the loss of talent and its ability to return it will impact Malaysia’s journey to rich-nation status, said Philip Schellekens, the World Bank’s senior economist for Asia as he released its Malaysia Economic Monitor – Brain Drain report. Presently, the diaspora is ‘geographically concentrated and ethnically skewed.’ He recommended boosting productivity, revamping the education system and strengthening inclusiveness to produce a viable meritocracy were all necessary steps for Malaysia to attract and retain talent, including its own.
The government is already attempting to bring back professional workers through its Talent Corporation, adding financial incentives like a 15% flat tax rate and bond transfer program for Public Service Department scholars. This, plus skilled job creation from Malaysia’s 6% annual GDP growth, would be enough to solve the problem by 2020, it said.
Malaysian Prime Minister Najib Razak yesterday announced 12 new projects and other developments under his government’s Economic Transformation Programme (ETP), designed to spur further foreign investment and confidence in Malaysia’s development and increase the country’s Gross National Income (GNI).
Many of the projects are based around technology and electronic communications, but also cover manufacturing, retail, tourism, energy and Islamic finance. At a glance, the new projects and initiatives are:
(ringgit/dollar conversion is RM3.02 = US$1)
- Appliance maker Pensonic Holdings Sdn Bhd will invest RM250 million by 2020 in an initiative to establish a manufacturing and international distribution hub, exporting home appliances to Southeast Asia and the Middle East, and adding RM500 million in GNI and creating 850 jobs;
- Germany’s Infineon Technologies Sdn Bhd will invest RM500 million in 2011 in its Melaka manufacturing facility producing power semiconductors, adding production and R&D capacity, adding RM814 million to GNI and creating 350 jobs;
Malaysian Prime Minister Najib Razak today gave a 100th day progress report on the country’s Economic Transformation Programme (ETP), announcing 19 new ‘Entry Point Projects’ which will contribute RM67 billion (US$21.8 billion) in investment, RM36 billion in Gross National Income and 35,000 new jobs.
Big-hitting highlights were a number of major oil & gas infrastructure projects and the introduction of a group to study the potential of nuclear energy in Malaysia. The projects also help fulfill Malaysia’s ambitions to become a regional data and technology hub, a center for medical research and electronics production, and a magnet for students and tourists. The ETP also seeks to bring Malaysian talent back to the country from overseas to fill the new roles, and transform mass transit infrastructure in the Kuala Lumpur/Klang Valley area.
A full list of new projects is after the jump:
The Malaysian government today announced progress in nine projects related to its Economic Transformation Programme (ETP), designed to propel Malaysia into full developed-nation status by 2020.
Among today’s progress reports were updates on initiatives to develop Malaysia’s oil and gas infrastructure, construction of technology parks to further knowledge and R&D, new hotels and training programs for hospitality workers, and a program to advance the business tourism industry. A large majority of funding for ETP projects is coming from the private sector.
In implementing the ETP, the Malaysian government has identified 131 ‘Entry Point Projects’ (EPPs) under 12 ‘National Key Economic Areas’ (NKEAs). Projects falling within these categories will receive special treatment and benefits, often in the form of tax relief, reduction in export duties and investment assistance.
source & article: pemandu.gov.my
Malaysia’s government has delivered a budget aimed at growth and increasing foreign investment, probably its last before facing the polls in a national election next year. It plans to spend RM 212 billion (US$69 billion) including some showcase projects designed to wow the outside world (and its potential investors), including a new 100+ floor tower for Kuala Lumpur, a mass transit system, a gas-fired power plant and six new highways around the capital.
The government is hoping that private investors will jump in to fund most of the projects, after Malaysia’s somewhat dramatic drop in private investment over the past decade (down from 25% of GDP in the mid-1990s to 10% today). It has already identified $444 billion worth of potential major private sector-led projects and wants to triple gross national income from RM 600 million ($195 million) today to RM 1.7 billion in 2020, creating 3.3 million new jobs and propelling Malaysia into fully developed nation status.
The government’s plans to diversify its revenue sources away from petroleum (which currently makes up 40%), though it has postponed introduction of a new Goods & Services Tax to an indefinite future date, while raising the current service tax from 5% to 6% and broadening its range. Despite the budget’s otherwise foreign investment-boosting theme, Malaysia will introduce a minimum wage and increase its levy on foreign workers.
source & article: Bloomberg BusinessWeek
Business Times has this article by Abdul Rahman Mamat (Malaysia’s secretary-general of the Ministry of International Trade and Industry) on how Malaysia is building its knowledge economy through the electrical and electronics (E&E) industry. Trying to compete with neighbors on labor costs won’t work as the economy grows; instead Malaysia’s strategy is to move up the value chain to application research & development, and design.
Under the government’s Economic Transformation Program (ETP) announced last week, the E&E industry will increase Gross National Income from today’s RM37 billion (US$12 billion) to RM90 billion by 2020, creating 150,000 skilled jobs in the process. It would prefer Malaysia moves away from being mere assemblers and testers and advises companies to not be concerned as lower-level jobs move to other countries.
Both local and international companies can work together in clusters to produce more positive results. Abdul lists a number of multinational companies as examples: in electronics, MEMC Electronics Material, Intel, Altera, Osram, Agilent and Infineon Technologies have “enhanced their operations”, as well as Agilent and Motorola.
The government sees solar technology as a major growth opportunity. Malaysia’s mature semiconductor design and manufacturing industry has seen advanced producers of LEDs and solar photovoltaic cells move to the country. This new energy technology industry is growing by 20% annually and Malaysia aims to become the world’s third-largest PV cell producer by 2011. Companies like First Solar, Q-Cells, SunPower, Tokuyama, Osram, Fuji, Rohm-Wako and Nichia have all arrived in Malaysia over the past three years.
Malaysia’s existing industries can also play a large part in providing reliable and quality materials supply, manpower and logistics. The challenge is to ensure these indirectly-related companies to maintain their competitive quality edge and convince them that this new technology indeed has a worldwide demand and will benefit the economy overall. The government is also concerned about the amount of talent available, and is working on training in both the industry and other educational institutions to build the skills necessary.
RM78 billion (US$25.3 billion) will be spent on the Malaysian E&E industry between now and 2020, with 88% of that total coming from the private sector.
source & article: Business Times
Malaysia has revealed exactly what it had in mind when a government think tank requested US$444 billion in investment from the local private sector and government-linked companies (GLCs). On the drawing board are plans for a nuclear energy industry, a mass-transit system for Kuala Lumpur, an upmarket urban shopping district and a massive regional oil products hub close to Singapore.
Idris Jala, CEO of the Performance Management and Delivery Unit (Pemandu) and minister in the Prime Minister’s department, drew attention to the way South Korea, Taiwan and Singapore transformed their economies over the past decades and continued to advance. Representatives from over 200 of Malaysia’s private and government-owned sectors spent two months on the plans, identifying 131 projects in 11 key economic areas requiring large-scale investment. The announcement was part of Pemandu’s Economic Transformation Programme, and it will present its initiatives at a series of open days across the country starting today.
Analysts welcomed the plans, saying they were achievable but waiting to see how they would be executed. The World Bank was quoted as saying the plans were “conceptually right” but that more was needed. Others said the government must look at other reforms, with speed and scale a factor in determining how long the prosperity could last.
Malaysia dominated the region in attracting private sector investment, foreign and local, but has fallen down the rankings in recent years thanks to competition from powerhouse economies in neighboring countries. The government, which currently provides around half of all investment in Malaysia’s economy, would like to cut its share dramatically and transform Malaysia’s economy into something more modern and service driven, reaching ‘developed nation’ status by 2020.
Pemandu’s Open Day presentation: (PDF link)
The Malaysian government wants to attract private investment to a series of ‘high impact’ projects on over 1,000 hectares of land it owns, setting aside RM20 billion (US$ 6.2 billion) in a special fund under the 10th Malaysia Plan.
The land includes areas owned by the Armed Forces and the former Pudu Prison, among others. Areas such as Sungai Buloh in Selangor and Sungai Besi would be the focus of rapid economic growth and become Malaysia’s most modern city after Kuala Lumpur, with new developments including office and administrative areas, Light-Rail Transit (LRT) and even monorail. Deputy Finance Minister Dr Awang Adek Hussein said the land was given to Government-Linked Companies (GLCs) with a view to forming joint ventures from the private sector. The areas would need to show economic growth of around 6% annually to keep with Malaysia’s Vision 2020 project.
source & article: Business Times