Action-based programme to take economy to greater heights

The Star 22/09/2010

KUALA LUMPUR: The private sector will be the backbone of the Economic Transformation Programme (ETP) with US$37bil (RM114.9bil) worth of projects expected to kick off by year-end.

Minister in the Prime Minister’s Department and Pemandu chief executive officer Datuk Seri Idris Jala said private investors including government-linked companies were ready to sign contracts to carry out the seven entry-point projects (EPPs).

The action-based ETP, to be officially unveiled next month, is expected to thrust the economy to greater heights by tripling the country’s Gross National Income (GNI) to RM1.7tril, increasing GNI per capita from RM23,700 to RM48,000 and creating 3.3 million jobs by 2020.

Over 60% of the jobs would be in the medium-income and high-income salary brackets in line with the country’s goal to shift towards a high-income nation status in 10 years.

As a start, 131 EPPs worth US$216bil (RM670.9bil) would be carried out across 12 National Key Economic Areas (NKEAs) with 60 business opportunities being made available.

“These projects are just the beginning. There will be multiplier projects and more to come. ETP is not a plan, it is an action-based programme.

“Our focus is on growing the economic pie and we have the right ingredients to succeed,” Jala said during the ETP public open day at Putra World Trade Centre attended by about 4,000 people yesterday.

Investors, he added,
* were ready to sign MoUs for 12 more EPPs (US$10bil/RM31bil) and
* were involved in active engagement for 34 EPPs worth US$50bil (RM155bil).

The 12 NKEAs under the 10th Malaysia Plan are oil, gas and energy; palm oil; financial services; tourism; business services; electrical and electronics; wholesale and retail; education; healthcare; communications, content and infrastructure; agriculture and Greater Kuala Lumpur. Lab members met for eight weeks before coming up with the proposals.

Plans in the pipeline include making Malaysia a number one
* regional hub for oil field services and
* a global biodiversity hub,
* revitalising the capital market and
* making shopping more conducive for tourists.

There are also plans to build 141km of rail lines via a Mass Rapid Transit high-speed rail system to connect Kuala Lumpur and Singapore; and transform the Klang River to a “River of Life” commercial and heritage district buzzing with activities. (The distance between KL and Spore is more than 400km- blogger)

The private sector is expected to fund 92% of the NKEA projects which would require a total funding of RM1.4tril (US$444bil). The remaining funds would come from the Government which would act as an enabler and catalyst, Jala said.

“Malaysia has no time to lose. We have to be fully united. We need a complete, radical economic transformation.

“If we continue on the current economic model, we risk getting stuck in the middle-income trap and continue to lose out on talent necessary to support a high-income economy,” he said, adding that they expected positive results from the ETP, based on the tremendous outcome from the Government Transformation Programme.

He said there was political will for the ETP to succeed but wanted the people to focus on action and refrain from destructive talk or wasteful philosophical debates.

Speaking to reporters later, Jala said there would be a level playing field for investors with clear rules and regulations.

(Hmm...reminds me of the annual Indonesian Infrastructure Summit- blogger)