Industrial Master Plan 3 - malaysian society for engineering and ...

Malaysia – Third Industrial Master PlanOverview• The IMP3 is a 15-year blueprint for industrial development in Malaysia riding onthe theme “Malaysia-Towards Global Competitiveness”.• It is expected to drive industrialisation to a higher level of global competitiveness,emphasizing on transforming and innovating the manufacturing and servicessectors in an integrated manner, towards attaining developed nation statusunder Vision 2020.• Key strategic thrusts identified include the undertaking of higher value-addedactivities, enhancing total factor productivity (TFP), venturing into new growthareas, emphasis on R&D, and the integration of Malaysian industries andservices into the regional and global networks.• Key challenges highlighted are the development of highly skilled human capital,establishment of an efficient network of logistic services, the adoption of latesttechnologies and information services, promoting a conducive business andinvestment climate, and strengthening the regulatory regime and deliverysystem.Key Strategic Thrusts• Key strategies of the IMP3 are built on the 5 strategic thrusts of the NationalMission, which was introduced in the 9MP.Macro Targets• In this regard, a total of 10 strategic thrusts have been outlined under IMP3 tofacilitate the achievement of the macro targets set under IMP3. More specifically,the 10 strategies are categorized into 3 broad spectrum as follows:Development Initiatives1. Enhancing Malaysia’s position as a major trading nation2. Generating investments in targeted growth areas3. Integrating Malaysian companies into the regional and global networks4. Ensuring industrial growth contributes towards equitable distribution andmore balanced regional developmentPromotion of Growth Areas5. Sustaining the manufacturing sector’s contribution to growth6. Positioning the services sector as a major source of growthEnhancing the Enabling Environment7. Facilitating the development and application of knowledge-intensivetechnologies8. Developing innovative and creative human capital9. Strengthening the role of private sector institutions, including trade andindustry associations10. Creating a more competitive business operating environment througheffective institutional support and efficient government delivery systemGDP Growth Targets by Sector (% YOY)SectorIMP2 TargetIMP2 ActualIMP3 TargetAverageAnnualGrowth (%)AverageAnnualGrowth (%)AverageAnnualGrowth (%)1996-2005 1996 2000 2005 1996-2005 2006-2020Manufacturing 9.5 18.2 18.3 4.9 6.2 5.6Services 8.8 8.9 6.7 6.5 6.0 7.3Non-Government services - 10.1 7.4 6.2 6.1 7.5Government services - 1.7 2.0 8.8 5.3 5.6Agriculture, forestry & fishery 2.6 4.5 6.1 2.1 2.3 5.2Mining & quarrying 1.9 2.9 0.3 0.8 2.5 3.4Construction 8.5 16.2 0.6 -1.6 -0.4 5.7Real GDP 7.9 10.0 8.9 5.3 4.6 6.3Source: Ministry of International Trade and IndustryFixed Income & Economic ResearchHL Markets- 2 -