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ETP ANNUAL REPORT 2011
The ETP is all about focus
and competitiveness
In transforming the economy, the ETP acts as the catalyst of
growth in two ways: focusing our resources on 12 National
Key Economic Areas (NKEAs) and improving on our
competitiveness through six Strategic Reform Initiatives.
Exhibit B
8
For a country to become
a high-income nation, we need:
NKEAs
&
FOCUS COMPETITIVENESS
We need drivers
to ensure focus
We need enablers
to ensure competitiveness
SRIs
Most successful economies are highly focussed on key
sectors as nations must choose to be very competitive
in high-impact areas where they also have an advantage
and provide less attention to areas of relative weakness.
By analogy, a sprinter cannot excel in a marathon and
vice versa.
Working in tandem, cross-cutting structural changes to
the economy must go hand-in-hand with vertical sector
focus. With a small domestic economy, we have no choice
but to tap into global opportunities. This necessitates
that we allocate financial and human capital in the most
effective way.
We must promote competition across sectors; adopt and
develop international standards; further liberalise our
services sector; develop our human capital; create fiscal
space to allow for robust responses to economic challenges;
improve our public service delivery; restrict government’s
role in business to strategic areas and raise Bumiputera
Small and Medium Enterprises (SMEs) capabilities in a
market-competitive and transparent manner.
The ETP has achieved a vertical take-off
Our 10-year targets have been clearly defined: RM1.4 trillion
in investment to generate a Gross National Income (GNI)
of RM1.7 trillion and create 3.3 million incremental jobs,
in the end-point year of 2020. This will translate into a GNI
per capita of US$15,000 and catapult us into high-income
nation status.
In just over a year of implementation, 72 of the 131 Entry
Point Projects (EPPs) have taken off. We have announced
110 projects and over 83 per cent of them are either
operational or have commenced work. Considering the
initial inertia in any new initiative, these results are akin to
a vertical take-off.
More importantly, the confidence created has had
immediate knock-on effects on the economy. In 2011,
private investment reached RM94 billion, surpassing the
target of RM83 billion. The GNI contribution of 11 NKEAs
(excluding Greater Kuala Lumpur/Klang Valley to avoid
double-counting) has reached RM589 billion, surpassing
the full-year target of RM494 billion. In addition to this the
110 announced projects are projected to create 313,741
new jobs (95 per cent of full year target). The RM589 billion
in GNI contribution from the 11 NKEAs accounts for 70 per
cent of national GNI (RM830.7 billion) clearly indicating the
weight of the NKEAs on the economy.
Exhibit C
100%
2011 Results
Target =
RM797 billion
RM830 bil
(104%)
GNI
Source: Department of Statistics
2011 GDP Growth: 5.1 per cent
Target =
RM83 billion
RM94 bil
(113%)
Private
Investment
*The Department of Statistics only tracks employment numbers,
not new job creation.
Key to our ethos is transparency. For the 2011 Annual
Report, we engaged PricewaterhouseCoopers (PwC), an
independent audit firm, to conduct a series of Agreed-
Upon-Procedures (AUPs) to ensure the accuracy of our
reporting. During the course of the AUP, we recalibrated
the committed investments, projected GNI contribution in
2020 and projected jobs created.