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ETP ANNUAL REPORT 2011
2011 Review of the ETP
By Yang Berhormat Tan Sri Nor Mohamed Bin Yakcop, Minister in the Prime Minister’s Department, Economic Planning Unit and Yang Berhormat
Senator Dato’ Sri Idris Jala, Minister in the Prime Minister’s Department and CEO, Performance Management and Delivery Unit (PEMANDU)
It gives us great pleasure to present the review of the Economic
Transformation Programme, which was officially launched by
YAB Dato’ Sri Mohd Najib Tun Razak, Prime Minister of Malaysia,
on 25 October 2010
Yang Berhormat
Tan Sri Nor Mohamed Bin Yakcop
Minister in the Prime Minister’s Department
Yang Berhormat Senator Dato’ Sri Idris Jala
Minister in the Prime Minister’s Department
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Briefly, while the global economy gives cause for concern
on several fronts, we expect the Malaysian economy to be
resilient and still show significant growth. In the meantime,
the steps we have taken towards economic transformation
and moving towards high income experienced vertical
take-off with most targets being achieved or exceeded.
We remain confident of the future and rely on the
participation of every Malaysian to make the transformation
a success and lead to a better life for all of us.
Global economy in a state of flux
but green shoots are emerging
By any measure, 2011 has been a difficult year for the global
economy. The continuing Eurozone sovereign debt crisis,
coupled with several ‘black swan’ events – Japan’s tsunami
and nuclear disasters, the US credit rating downgrade and
Thailand’s massive flood – have brought the developed
economies to their knees. Emerging economies were
not spared from the spill-over effects. Some of these
weaknesses are likely to extend into 2012.
Growth continued to be sluggish in Europe, slowing to
0.9 per cent year-on-year in Q4 2011 from 1.4 per cent in
Q3. Both business and consumer confidence have dipped
sharply, biting into investment and consumption.
Japan went through a V-shaped recovery and expanded
1.7 per cent quarter-on-quarter in Q3 2011. However, the
economy reversed by 0.2 per cent in Q4 2011, despite
ramped up capital expenditure spurred by reconstruction
in the earthquake-hit areas. A high yen and weak demand
point to deflation and an anaemic growth in 2012, at best.
Fortunately, there is good news coming out of the US and
China. The US has added 227,000 new jobs in February 2012
while unemployment has fallen to 8.3 per cent, its lowest in
three years. New home starts increased 9.9 per cent yearon-year
to a 699,000 annual rate in January 2012.