Invest Malaysia Malaysia s Growth Dynamics. YB Senator Dato Sri Idris Jala Minister in the Prime Minister s Office and CEO of PEMANDU

Transcription

1 Invest Malaysia 2014 Malaysia s Growth Dynamics YB Senator Dato Sri Idris Jala Minister in the Prime Minister s Office and CEO of PEMANDU

2 Three things that I want to share today: 1. Why are we transforming Malaysia 2. What are we doing to transform the country 3. What are the results so far Malaysia's growth dynamics is balanced with inclusivity and sustainability 2

3 1. Why are we transforming Malaysia? Transforming Malaysia to become a high income economy that is inclusive & sustainable (NEM) Growth must be balanced by inclusivity and sustainability (key dynamics) Inclusivity is always missing in many international economic models. Unequal development is combustible Sustainability challenges straddle time dimension & planet (environment) 3

4 2. What are we doing to transform Malaysia? i. Transformational actions to achieve true north KPIs eg. GNI per capita, jobs & investments ii. Transformational actions to improve ease of doing business and create conditions for competitiveness to flourish. Catalytic role of Entry Point Projects (EPPs). This leads to more investments by the private sector iii. Transformational focus on a few priority areas to deliver results (12 NKEAs + 7 NKRAs) (.continued) 4

5 2. What are we doing to transform Malaysia? iv. Fiscal reform to ensure sustainability and inject fiscal discipline in government v. Transformational diversification (less reliant on oil & gas, expansion of the services sector) vi. Transformational actions to achieve inclusive developments eg. GTP programmes on the bottom 40%, infrastructure development for rural people, affirmative programmes for Bumiputera and Women vii. Transparency and accountability of our National Transformation Programme via detailed annual reports 5

6 3. What are the results of the National Transformation Programme so far? 6

7 We are closing the gap on the minimum threshold of high income country since ,456 11,906 12,196 12,276 12,476 12,616 8,830 9,820 *10,060 7,500 7,590 8,150 6, High Income threshold - 1 July (Year +1) Malaysia - GNI per capita Atlas Method (USD) Note: 2013 numbers will be released on 1 July * 2013 Malaysian GNI from DOS 7

8 On track to achieve GNI target for 2020 (US$) $10,060 $15,000 $8,126 ($8,373) $9,508 ($9,700) $9,928 $6,700 ($7,059) GNI (USD mil) Mid year Population (mil) , , , , , * Bracketed figures are based on SNA 2008 after the rebasing exercise conducted in 2012 Source: Department of Statistics. Projections by PEMANDU team analysis

9 1.3 million new employment / jobs in NKEA sectors Employment/Jobs (millions) NKEA Non-NKEA Source: Department of Statistics 9

10 Private sector investment in the economy grew 5X more post-etp Investments (RM million) CAGR: 15.3% CAGR: 3.1% 116, ,781 Private 79,070 79,111 73,231 86,699 95,836 Public 63,108 66,414 68,353 71,697 72,445 84,867 85, Source: BNM 10

11 ETP LAUNCH Approved / pipeline investments (MIDA) RM (billion) MP ANNUAL TARGET RM148B Source : MIDA 11

12 Increased in World Bank s Ease of Doing Business Rankings 6 (2014) 8 (2013) 18 (2012) 23 (2010) Ranking Country Singapore Hong Kong New Zealand United States Denmark MALAYSIA South Korea Georgia Norway United Kingdom Australia Thailand Germany Japan France Category Starting a business Construction permits Getting electricity Registering property Getting credit Protecting investors Paying taxes Trading across borders Enforcing contracts Resolving insolvency Source: World Bank

13 International recognition of our commitment to a more competitive Malaysia WEF Global Competitiveness Report 2013/14 Malaysia ranked 24th in the world ahead of South Korea, China, Spain IMD World Competitiveness Yearbook 2014 Malaysia ranked 12th in the world A.T. Kearney s FDI Confidence Index Malaysia ranked 15th in 2014 (25 in 2013) 13

14 Inclusivity.. 14

15 Inclusive measures for bottom 40% leads to increase in mean income Target: RM2,300 E: RM2,369 Mean: RM 1,847 E: RM2,007 Mean: RM1, E 2015E Source: EPU 15

16 Minimum wage is an inclusive measure: estimated 3.2 million people lifted out of poverty line Minimum Wages Statutory Inspection as of March 2014 Inspected Compliance Noncompliance 6,588 6,409 (97.3%) 179 (2.7%) 513 complaints received, 84% resolved (433) 16

17 Inclusive measures for rural people 4,069 km of rural roads have been completed 2.7 million people 318,152 rural houses with clean / water supply 1.5 million people 115,296 rural houses with electricity supply 580,630 people Touching the lives of more than 5.1 million people living in the rural area in 4 years 61,062 houses for rural poor build & restored 305,300 people 17

18 Inclusive measures for poor people UPT LIH From 2010 to 2013, 188,781 upgraded to Move Out From Poverty due to an increase in income levels Number of individuals Move out of poverty Vulnerable Poor 462, ,781 Death 74, , , , ,946 Remarried Welfare Assistance Others Focus Group Verification 89% Increased Income Levels Extreme Poor 69,972 ekasih Status at Dec 2013 Reasons for MOFP status 133,000 participation in 1AZAM Programme since 2011

19 Inclusive measures for women Retain Flexible Work Arrangements (FWA) Tax Incentives for Implementing FWA Diversity Advocates Return Rise to the Top Flexi-jobs Listing on flexworklife.my Tax Incentives for Hiring & Training Women on Career Breaks Career Comeback Networking Event 30% women on PLC boards & senior management Diversity Disclosure Women in Leadership Programme 19

20 Inclusive measures for Bumi SMEs. TeraS & Superb 520 companies registered under TeraS programme RM1.64bil Teras fund are made accessible for the TeraS companies RM930mil available under Skim Jaminan Modal Kerja by Prokhas YAB PM announced 13 winners of the grant for the Bumiputera New Entrepreneurs' Start-Up Scheme (SUPERB) Assisting the ones who need help, with market friendly policies, transparency and meritocracy Note: Teras: Up to January

21 Sustainability.. 21

22 Gradual Reduction in Fiscal Deficit % 5.6% 4.8% % 3.9% 2015 target * 3 % 2020 TARGET 0% / Neutral 4 consecutive record Govt revenue Subsidy reduction Value Management GST Focus only on high impact sectors

23 Malaysia is moving further into the Safe Zone Public debt (% of GDP) Note : Malaysia s figures are for , whilst other countries are 2012 figures Source : EPU, MOF, BCG analysis, Economist Intelligence Unit, CIA fact book Surplus / deficit (% of GDP) 23

24 The Government has also reduced its dependence on oil and gas revenue % of total tax revenue 63, : 40.32% 2012: 33.72% 63,959 56,427 66,301 70,105 67, E: 30.63% 2014F: 28.96% 64, * 2014* PITA Export Duty Petroleum Royalty PETRONAS Dividend MTJA % of Total Revenue Note : 2013 figures are the updated revised figures and 2014 s are projected Source : Ministry of Finance 24

25 We are closing in on our target for services sector contribution to GDP 55.2% 54.6% 54.1% 53.2% 53.2% 50.9% Source: Dept of Statistics, Statistical agencies Services (% of GDP) 2020: 65% High income countries (Services as % of GDP) Japan 70 % Singapore 62 % US 67 % Services sector in these countries contributes large majority to GDP ( more than 60% ) Services related NKEA Financial Services W&R Tourism Biz Services Education CCI TOTAL 2020 GNI RM 180 bil RM 165 bil RM 104 bil RM 79 bil RM 61 bil RM 58 bil RM 647 bil 25

26 Malaysia committed to reducing global carbon intensity (40% reduction by 2020) Growth of the services sector less carbon footprint Target ridership for UPT from 8% in 2008 to 40% by 2020 MRT, LRT, BRT: big reduction in emission Solid waste management programme underway (EPP9 under Greater KL & EPP4 Business Services NKEA) 26

27 We are transforming Malaysia to become a high income economy, which is inclusive and sustainable in order to give quality of life to all Malaysians and today, we are exhibiting the characteristics of a high income economy 27

28 THANK YOU 28