Country Economic Work for Malaysia - Islamic Development Bank

economic growth. The ETP is expected to be primarily private-sector driven but facilitated by
the Government through prioritized public investment and policy support. To jump-start the
effort, the Government of Malaysia announced in January 2010 Government Transformation
Programme (GTP), aimed at delivering fast track public services that were most important to
the people. Later, the ETP - a road map to lead Malaysia to high-income status by 2020 -
followed in October 2010. The program targets annual growth of 6% and a doubling of gross
national income (GNI) per capita, to $15,000, thus meeting the World Bank standard for a
high-income country.
72. The 12 NKEAs - core of the ETP - are defined as drivers of economic activity
that have the potential to directly contribute a quantifiable amount to economic growth.
The 12 NKEAs are: Oil, Gas and Energy; Palm Oil; Financial Services; Tourism; Business
Services; Electronics and Electrical; Wholesale and Retail; Education; Healthcare;
Communications Content and Infrastructure; Agriculture; and Greater Kuala Lumpur/Klang
Valley. The NKEAs were selected because they are significant engines of future growth and
their expected contribution to GNI in 2020 will help Malaysia achieve high-income status. In
addition to the 11 industry sectors, Greater Kuala Lumpur/Klang Valley was selected as an
NKEA through a separate process. Kuala Lumpur currently accounts for about one third of
Malaysia’s GDP. Cities are significant drivers of growth, in particular, Kuala Lumpur is
vitally important to the better health and performance of the overall economy. The portfolio
of NKEA sectors will evolve over times, depending on the performance of various sectors in
the economy.
73. The ETP was launched with 131 Entry Point Projects (EPPs), mainly driven and
led by the private sector. The NKEAs are the engines of growth, while the EPPs are the
Figure 5.2: Malaysia's Economic Leap Timeline
Source: Malaysia Productivity Corporation (2011)
36