RMKe 11 Book

ELEVENTH
MALAYSIA
PLAN
2016-2020
ANCHORING GROWTH ON PEOPLE
ISBN 978-9675842085
For further information refer to:

Director General,
Economic Planning Unit,
Prime Ministers Department,
Block B5 & B6,
Federal Government Administrative Centre,
62502 Putrajaya.
MALAYSIA.
http://www.epu.gov.my
email: epu@epu.gov.my
Tel.: 603-8872 3333
Fax: 603-8888 3755
Released on 21st May 2015
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ELEVENTH MALAYSIA PLAN

2016-2020
ANCHORING GROWTH ON PEOPLE
Foreword
Dato Sri Mohd Najib bin

Tun Haji Abdul Razak
Prime Minister of Malaysia
The Eleventh Malaysia Plan, 2016-2020, marks a momentous milestone in our nations
history. With 2020 now just five years away, the Eleventh Plan is the next critical step in our
journey to become an advanced nation that is inclusive and sustainable.
In the last five years, although Malaysia encountered headwinds from a global economic
slowdown, our economy has done extremely well with GDP growth among the fastest in
the region. The quality of life of the rakyat have also improved as reflected by the increase
in both per capita income and the average household income. This was made possible
by the numerous reforms that were put in place by the Government to improve the
quality of life of the people. Key among them were the Government Transformation
Programme and the Economic Transformation Programme, underpinned by the Tenth
Malaysia Plan.
Moving forward, we have to be cognisant that the global landscape is going to be
increasingly challenging. We foresee greater volatility and uncertainty in the global
economy as a result of the decline in oil prices, realignment of exchange rates, as well as
geopolitical risks. In order to sustain our growth momentum and ensure that the rakyat
continue to prosper, we need to forge ahead with greater resolve and introduce bold
measures for the long-term benefit of all Malaysians.
The Eleventh Plan will be premised on the Malaysian National Development Strategy that
will focus on rapidly delivering high impact outcomes to both the capital economy and
people economy at affordable cost. The Eleventh Malaysia Plan will disproportionately
focus on the people the rakyat will be the centre piece of all development efforts.
Productivity and innovation will be important pillars of the Eleventh Plan.
Although in previous 5-year plans, productivity and innovation have been alluded
to, we have not fully realised the intended results. The Eleventh Plan will make
the difference it contains specific strategies and programmes bounded on
outcomes to unlock productivity and transform innovation to wealth. Spurring productivity
and innovation will provide the basis for sustained economic growth, create new
economic opportunities and ensure continued wellbeing and prosperity of the rakyat.
Eleventh Malaysia Plan

Foreword
To ensure the success of the Eleventh

Malaysia Plan and to attain our
aspiration of an advanced nation that is
inclusive and sustainable by 2020, the
support, commitment, and dedication
of every Malaysian is crucial. It is my
belief that the true greatness of our
nation comes from the enduring spirit
of Malaysians, our shared values and
ideals, and the great talent of our people.
I urge all Malaysians to join us on the
last leg of our momentous journey
towards becoming an advanced nation.
We will come together as a nation and
we will get there together.
1Malaysia People First, Performance Now
ii
Contents
Eleventh Malaysia
Plan: Anchoring
growth on people
Strengthening
macroeconomic
resilience for
sustained growth
Enhancing
inclusiveness
towards an
equitable society
Improving
wellbeing
for all
Accelerating
human capital
development for
an advanced nation
SIX
Pursuing green
growth for
sustainability
and resilience
STRATEGIC
THRUSTS
Strengthening
infrastructure to
support economic
expansion
Re-engineering
economic growth
for greater
prosperity
Transforming
public service
for productivity
10
Malaysia
beyond 2020
Contents
Chapter 1
Chapter 3
Eleventh Malaysia Plan:

Anchoring growth on people
Enhancing inclusiveness towards

an equitable society
1-1
Overview 3-1
In retrospect
1-3
The next five years
1-6
Highlights
Tenth Malaysia Plan, 2011-2015: Achievements
3-3
Challenges and opportunities
1-7
Macroeconomic outlook
1-7
Looking back
Tenth Malaysia Plan, 2011-2015: Progress
3-5
Six strategic thrusts and six game changers
1-8
Transforming public service for productivity
1-17
Malaysia beyond 2020
1-17
Conclusion 1-18
Chapter 2
Strengthening macroeconomic resilience

for sustained growth
Overview 2-1
Highlights
2-3
Looking back
2-5
External environment
Elevating the livelihood of the B40 households

Building a progressive and more inclusive society
Ensuring accessibility to basic infrastructure and services
Promoting corridors as an engine of growth
Enhancing Bumiputera economic participation
Summary of focus areas

Eleventh Malaysia Plan, 2016-2020
3-13
Moving forward
3-15
Focus area A
Uplifting B40 households towards a middle-class society
Focus area B
Empowering communities for a productive and
prosperous society
Focus area C
Transforming rural areas to uplift wellbeing of rural communities
Focus area D
Accelerating regional growth for better geographic balance
Domestic economy
Issues and challenges
Summary of macroeconomic strategies

2-11
Macroeconomic prospects
2-13
Multidimensional goals
Macroeconomic strategies to strengthen economic fundamentals
Domestic economy
Conclusion 2-24
Focus area E
Enhancing Bumiputera Economic Community (BEC) opportunities
to increase wealth ownership
Conclusion 3-36
Chapter 5
Chapter 4
Improving wellbeing for all

Overview 4-1
Highlights
Looking back
Overview 5-1
4-3
4-5
Improving access to quality healthcare services

Ensuring access to quality and affordable housing
Making streets and communities safer for rakyat peace of mind
Enhancing social cohesion and national unity
Promoting a sports culture and developing talent to enhance
wellbeing

Moving forward
Accelerating human capital development

for an advanced nation
4-11
4-13
Focus area A
Achieving universal access to quality healthcare
Focus area B
Providing adequate and quality affordable housing to poor, lowand middle-income households
Focus area C
Creating safer living environments for thriving communities
Focus area D
Improving road safety and emergency services to reduce
fatalities
Focus area E
Enculturating the spirit of 1Malaysia to foster social cohesion and
national unity
Focus area F
Promoting sports for healthy living and unity
Conclusion 4-24
Highlights
5-3
Looking back
5-5
Creating more jobs and maintaining full employment
Mainstreaming and broadening access to quality TVET programmes
Improving education delivery through better access and quality
Improving legislations and institutions to transform the labour

market
Upskilling the workforce through lifelong learning

5-13
Moving forward
5-15
Focus area A
Improving labour market efficiency to accelerate economic
growth
Focus area B
Transforming TVET to meet industry demand
Focus area C
Strengthening lifelong learning for skills enhancement
Focus area D
Improving the quality of education for better student outcomes
and institutional excellence
Conclusion 5-30
Looking back
Chapter 6
Pursuing green growth for sustainability

and resilience
Overview 6-1
Highlights
6-3
Looking back
6-5
Upgrading physical infrastructure to enhance

access and connectivity
Developing a people-centric public transport system
Continuing efforts to restructure the water services industry
7-5
Growing logistics and trade facilitation

Increasing broadband coverage and initiating migration to Digital
Terrestrial Television (DTT)
Climate mitigation: reducing Malaysias carbon footprint
Climate adaptation: protecting the nation from the impact of climate

change

7-13
Enhancing conservation of the nations ecological assets
Moving forward
7-15

6-9
Moving forward
6-11
Focus area A
Strengthening the enabling environment for green growth
Ensuring effective sourcing and delivery of energy
Focus area A
Building an integrated need-based transport system
Focus area B
Unleashing growth of logistics and enhancing trade facilitation
Focus area B
Adopting the sustainable consumption and production concept
Focus area C
Improving coverage, quality and affordability of digital
infrastructure
Focus area C
Conserving natural resources for present and future
generations
Focus area D
Continuing the transition to a new water services industry
framework
Focus area D
Strengthening resilience against climate change and
natural disasters
Focus area E
Encouraging sustainable energy use to support growth
Conclusion 7-42
Conclusion 6-30
Chapter 8
Chapter 7
Re-engineering economic growth for

greater prosperity
Strengthening infrastructure to
support economic expansion
Overview 8-1
Overview 7-1
Highlights
7-3
Highlights
8-3
Looking back
8-5
Focus area A
Enhancing service delivery with citizens at the centre
Sector outcomes
Liberalisation and regulatory reform
Focus area B
Rationalising public sector institutions for greater productivity
and performance
Innovation
Regional economic corridors development

8-13
Moving forward
8-15
Focus area A
Transforming services
Focus area B
Energising manufacturing
Focus area C
Strengthening talent management for the public service
of the future
Focus area D
Enhancing project management for better and
faster outcomes
Focus area E
Capitalising on local authorities for quality services at
the local level
Focus area C
Modernising agriculture
Conclusion 9-26
Focus area D
Transforming construction
Chapter 10
Focus area E
Growing dynamic SMEs
Focus area F
Translating innovation to wealth
Overview 10-1
Focus area G
Investing in competitive cities and regional economic corridors
Profile of Malaysia post-2020
10-3
Aspirations for Malaysia post-2020
10-5
Conclusion 8-40
Chapter 9
People 10-7
Economy 10-11
Environment 10-12
Conclusion 10-13
Transforming public service for productivity

Overview 9-1
Highlights
9-3
Appendices
Tables and exhibits
A-1
Glossary A-19
Looking Back
9-5

9-9
Moving forward
9-11
List of Strategy Papers
A-26
Description of cover icons
A-27
Index
A-31
Eleventh
Malaysia Plan:
Anchoring
growth on
people
Anchoring growth
on people
In retrospect
The next five years
Challenges and
opportunities
Macroeconomic
outlook
Six strategic thrusts and
six game changers
Transforming public
service for productivity
Conclusion
1-1

The Eleventh Malaysia Plan, 2016-2020, is the final leg in the journey towards
realising Vision 2020. Launched in 1991, Vision 2020 envisions Malaysia as a
fully developed country along all dimensions - economically, politically, socially,
spiritually, psychologically, and culturally - by the year 2020. Emboldened by the great
strides made in the last half decade, the Eleventh Plan reaffirms the Governments
commitment to a vision of growth that is anchored on the prosperity and wellbeing
of its rakyat. The Eleventh Plan is premised on a progressive and united Bangsa
Malaysia that shares a common commitment towards building a better Malaysia
for all Malaysians.
The development of the Eleventh Plan was guided by the Malaysian National
Development Strategy (MyNDS), which focuses on rapidly delivering high impact on
both the capital and people economies at low cost to the government. The capital
economy is about Gross Domestic Product (GDP) growth, big businesses, large
investment projects, and financial markets, while the people economy is concerned
with what matters most to the people, which includes jobs, small businesses, the
cost of living, family wellbeing, and social inclusion.
Accordingly, the Eleventh Plan is a strategic plan that paves the way for Malaysia to
deliver the future that the rakyat desires and deserves. It represents the Governments
commitment to fulfilling the aspirations of the people. The Eleventh Plan is based
on the theme anchoring growth on people and has six strategic thrusts and six
game changers that will transform ideas into reality, and address in concert the
goals set out in Vision 2020 so as to catapult Malaysia towards the end state of
being an advanced economy and inclusive nation.

Chapter 1: Anchoring growth on people
This word cloud captures important concepts and themes, and terms commonly used in the Eleventh Malaysia Plan
1-2
1-3
In retrospect
ONE OF THE
BEST
Real GDP
6.2
per annum
Malaysia has enjoyed one of

the best economic growth
records in Asia over the last five
decades despite a multitude of
challenges and economic shocks.
The economy achieved a stable
real GDP growth of 6.2% per
annum since 1970, successfully
transforming from a predominantly
agriculture-based economy in
the 1970s, to manufacturing in
the mid-1980s, and to modern
services in the 1990s.
25X
increase in per
capita income
RM
Malaysia rose from the ranks of a lowincome economy in the 1970s to a high
middle-income economy in 1992 and
remains so today. Malaysias national
per capita income expanded more
than 25-fold from US$402 (1970) to
US$10,796 (2014) and is well on track to
surpass the US$15,000 threshold of a
high-income economy by 2020.
MALAYSIA

0.6
Between 1970 and 2014, the incidence

of poverty in general was reduced
from 49.3% to 0.6% while hardcore
poverty has been eradicated.
incidence of
poverty
Household monthly income
1970 RM264 2014
RM6,141
The mean household monthly income increased more

than 20-fold from RM264 in 1970 to RM6,141 in 2014.
Similarly, median income increased from RM166 to
RM4,585 over the same period. Income inequality has
also narrowed, as reflected by the Gini coefficient, from
0.513 in 1970 to 0.401 in 2014.
76.1%
Home Ownership
Today, Malaysians from all walks of life,

irrespective of ethnicity, socio-economic
background, and geographic location, enjoy a
better quality of life. Approximately 76.1% of
households are homeowners, with 75.3%
of poor households owning homes as well.
95.1
% 97.6%
of the
population
have access
to potable
water
have access
to electricity
1-4
Malaysians today live longer, with

life expectancy increasing by more
than 10 years to 75 years. They
are also better educated with
27% of the labour force having a
tertiary level qualification, a fourfold
increase from 1980. Mobility has
improved tremendously with better
connectivity provided by extensive
road, rail, and air networks.
12
th
20
th
TOP
20
In 2014, Malaysia was rated the

12th most competitive country
among 60 countries in the World
Competitiveness Yearbook by
the International Institute for
Management Development;
20th out of 144 countries in the
Global Competitiveness Index
(GCI) 2014-2015 by the World
Economic Forum; and 18th
among 189 economies in the
Doing Business Report 2015 by
the World Bank.
Malaysia also
scores highly
as a top 20 investor-friendly
destination for the period
between 2014 and 2018, in the
Economist Intelligence Units
2014 Business Environment
Rankings.
1-5
All these gains were made possible by Malaysias development philosophy, which places the prosperity and
wellbeing of the rakyat at the heart of economic growth. This commitment can be seen in each successive
development policy:
New
Economic
Policy
National
Development
Policy
National
Vision
Policy
National
Transformation
Policy
1971-1990
1991-2000
2001-2010
2011-2020
The New Economic

Policy, 19711990, focused on
poverty eradication
irrespective of ethnicity
and eliminating
identification of
ethnicity by economic
function.
The National Development

Policy, 1991-2000, focused
on ensuring the balanced
development of major sectors
of the economy and regions, as
well as reducing socio-economic
inequalities across communities.
The National Vision

Policy, 2001-2010,
focused on building
a resilient and
competitive nation.
The National Transformation Policy,

2011-2020, maintains the people-centric
focus through the New Economic
Model, which sets the goal of becoming
a high-income economy that is both
inclusive and sustainable.
This transformation agenda is

supported by the Economic
Transformation Programme,
which focuses on the 12
economic areas that are most
critical to the nations continued
growth, and the Government
Transformation Programme,
which focuses on transforming
areas of public service that
are of greatest concern to the
rakyat. The Government has
also introduced MyNDS to
strengthen implementation
approach.

1-6
The next five years

The Eleventh Plan is formulated with the rakyat as the centrepiece
of all development efforts. The people economy will be given priority,
reinforcing the Governments commitment to bring further development to the people by enriching their
lives, providing people dignity, and uplifting their potential to partake in the prosperity that is generated.
All segments of society must benefit from the countrys economic prosperity in order to create an advanced
economy and inclusive nation by 2020. In line with this, for the first time in Malaysias history, national
growth targets will include not only GDP growth and per capita income, but also household income and the
Malaysian Wellbeing Index to assess the impact of economic growth on peoples wellbeing.
Average national income
The Government
aspires for Malaysia to
achieve an advanced
economy status by
2020, with a national
per capita income of
MORE THAN
US$15,000
While there will still be people who earn
less than this threshold, all segments
of society, irrespective of
geography, ethnicity, or
income level, are expected
to experience an increase in
their income and wellbeing.
Every household will have

access to efficient infrastructure
and public amenities, quality
healthcare and education, quality
and affordable housing, and
comprehensive support services.
The goal is nothing

less than a better
quality of life for all
Malaysians.
1-7
Challenges and opportunities

The next five years is expected to be challenging with continued
uncertainties in the global economy, particularly given the prospect
of low prices for crude oil and other major commodities, and the risk
of a slowdown in the economies of major trading partners. On the
domestic front, there needs to be greater resolve to boost productivity
to drive economic growth; strengthen the fiscal position while ensuring
adequate public funding to support continued economic expansion;
and raise the average income and share of total income of the bottom
40% household income group (B40 households) to become truly
inclusive.
The Eleventh Plan also opens up new opportunities, particularly

with the establishment of the ASEAN Economic Community (AEC)
of more than 600 million people in a single market, which will be a
boost to trade and investment. Domestically, Malaysia will exploit
its demographic dividend of a young and growing population with a
median age of around 30 and a working age population of close to
70% to accelerate growth. Malaysias multi-racial and multicultural
society is another unique asset, which has yet to be exploited to its
fullest in terms of its natural affiliation with Islamic nations, the Peoples
Republic of China, India, and as a rich tourist attraction.
Macroeconomic outlook
During the Eleventh Plan, real GDP is targeted to expand between
5%-6% per annum. The Gross National Income (GNI) per capita is
expected to reach US$ 15,690 (RM54,100) and therefore exceed
the US$15,000 minimum threshold of a high-income economy. The
Plan is expected to create 1.5 million jobs by 2020, with targeted
improvements in labour productivity through the continuous shift
from labour-intensive to knowledge- and innovation-based economic
activities. Growth will be driven by the private sector with private
investment expanding at 9.4% per annum. All economic sectors will
witness strong growth with the manufacturing and services sectors
contributing more than 75% of GDP. The external sector is also
expected to contribute positively with recovery in exports and the
current account of the balance of payments is projected to remain
in surplus at 2.6% of GNI. The Federal Government fiscal position
is expected to consolidate further and achieve a balanced budget

by 2020. Inflation is expected to remain benign, below 3%, and the
economy is anticipated to maintain full employment.
Malaysias economic fundamentals will be strengthened to achieve
sustainable growth by ensuring stable prices and exchange rates,
and an adequate level of savings as a source of investible resources.
The Government will also promote private consumption, as well as
private investment in agriculture, manufacturing, and services to
spearhead economic growth, and increase exports by improving
product competitiveness, promoting services exports, and diversifying
markets. More prudent fiscal management will be introduced to
enhance fiscal flexibility, and measures will be undertaken to unlock the
potential of productivity to ensure sustainable and inclusive growth.
The Eleventh Malaysia Plan used Blue Ocean Strategy (BOS) tools and frameworks, as part of the National Blue Ocean Strategy
(NBOS), to formulate national strategies that are high impact, low cost and able to be rapidly implemented. BOS is about creating
uncontested market space by simultaneously pursuing differentiation and low cost. For businesses, this means delivering high value
to customers while lowering costs to the business. For governments this means rapidly delivering high value to the people at low cost
to the government. One key BOS tool used in the formulation of the Eleventh Plan was the strategy canvas a diagnostic and action
framework for visualising strategies. The canvas depicts the current situation and compares it to the new strategic direction the
Government will take in the Eleventh Plan.

Six strategic thrusts and

six game changers
Moving forward, the Eleventh Plan provides a critical
platform for the country to make vital policy shifts and invent
new approaches to address new and existing challenges.
It cannot be business as usual if Malaysia is to make the
transition to an advanced economy and inclusive nation in
the space of the next five years.
Strategic thrusts
The Government has defined six strategic thrusts to help
Malaysia stay ahead of the challenges and opportunities
of the fast-changing global and political landscape. These
thrusts aim to comprehensively address the end-to-end
needs of the rakyat and the nation.
Game changers
The Government has also identified six game changers,
which are innovative approaches to accelerate Malaysias
development, that once successfully applied, will
fundamentally change the trajectory of the countrys growth.
Four of these game changers are

critical to the development of an
advanced economy they aim to
unlock productivity for accelerated
sectoral growth; unleash innovation
to generate new sources of revenue;
harness TVET for the transition to a
higher-skilled workforce; and develop
cities as a source of competitiveness.
To ensure that all Malaysians are able
to participate in and benefit from this
growth, the Government will raise
the income and wellbeing of the B40
households. Finally, the Government
will embark on green growth to shift the
paradigm of sustainability from a narrow
focus on natural assets, to include
consumption and production processes
in all sectors and households.
1-8
1-9
Six strategic thrusts

Enhancing
inclusiveness
towards an
equitable
society
Improving
wellbeing
for all
Accelerating
human capital
development
for an advanced
nation
Inclusivity has always been a key

principle in Malaysias national socioeconomic development agenda, and a
fundamental goal of the New Economic
Model. This commitment to enable
all citizens regardless of gender,
ethnicity, socio-economic level, and
geographic location to participate
in and benefit from the countrys
prosperity, is anchored on a belief
that inclusive growth is not only key
to individual and societal wellbeing,
but also critical for sustaining longer
periods of solid economic growth.
The Government has always adopted a

balanced development approach that
gives equal emphasis to both economic
growth and the wellbeing of the rakyat.
Wellbeing refers to a standard of living
and quality of life that addresses an
individuals socio-economic, physical,
and psychological needs. Wellbeing
is essential to enhancing productivity
and mobility, while simultaneously
strengthening social cohesion and
national unity.
Human capital development is

a critical enabler for driving and
sustaining Malaysias economic
growth and supporting the transition
of all economic sectors towards
knowledge-intensive activities. An
efficient and effective labour market is
also necessary to attract investments
into Malaysia and enable everyone to
participate in and enjoy the benefits of
economic growth.
Towards this end, the Government

is committed to ensuring equitable
opportunities for all segments of society,
in particular the B40 households. All
Malaysians, and in particular vulnerable
groups will benefit from better access to
quality education and training, efficient
infrastructure and social amenities,
better employment and entrepreneurial
opportunities, as well as wealth ownership.
Rural areas will be transformed with
improved connectivity, mobility, and a
conducive business environment. All
households will witness an increase in
income, and the B40 households will be
elevated towards a middle-class society.
The status of the Bumiputera economic
community will be further enhanced.
The Government will improve the wellbeing

of all Malaysians regardless of socioeconomic background or geographic
location. Every Malaysian will have equal
access to quality healthcare and affordable
housing. Neighbourhoods and public
spaces will be safer, allowing the rakyat to
have peace of mind and for communities
to thrive. Sports and physical activity will
become an integral part of life, with most,
if not all Malaysians embracing a healthy
lifestyle. Most importantly, there will be
greater social integration leading to a more
united and cohesive Malaysian community.
The Government will improve labour

productivity and create more job
opportunities that require highly-skilled
workers. Technical and Vocational Education
and Training (TVET) will shift towards
industry-led programmes to produce
the skilled talent to meet industry needs.
The existing workforce will have many
opportunities to continuously enrich and
develop themselves, so as to stay relevant
in the changing economy. Above all, the
quality of education will be raised to develop
talent with both the knowledge and skills,
and ethics and morality, to thrive in a globally
competitive and dynamic environment.

Pursuing
green
growth for
sustainability
and resilience
Strengthening
infrastructure
to support
economic
expansion
1-10
Re-engineering
economic
growth for
greater
prosperity
Green growth refers to growth that

is resource-efficient, clean, and
resilient. It is a commitment to pursue
development in a more sustainable
manner from the start, rather than a
more conventional and costly model of
grow first, clean up later. A reinforced
commitment to green growth will
ensure that Malaysias precious
environment and natural endowment
are conserved and protected for
present and future generations.
Infrastructure development ensures

that the rakyat have access to essential
amenities and services such as
transport, communications, electricity
and clean water. Better integration
of different transport modes will
create seamless movement for people
and goods. Moreover, an efficient
infrastructure lowers the cost of doing
business, which in turn improves national
competitiveness and productivity. Good
infrastructure is therefore the foundation
of social inclusion, economic expansion,
and growth.
Robust economic growth is crucial

to ensure that the aspiration of
becoming an advanced economy is
attained. A strong and broad-based
economy, producing high-value
goods and services, will generate
the high-paying jobs associated with
an advanced nation. The economy
must be placed on a solid foundation
to withstand external shocks and
generate undisrupted prosperity for
the people.
Malaysias green growth strategy will lead

to better quality of growth, strengthened
food, water and energy security, lower
environmental risks and ecological
scarcities, and ultimately better wellbeing
and quality of life. It will mean significant
reduction in greenhouse gas emissions and
improved conservation of terrestrial and
inland water, as well as coastal and marine
areas including its ecosystems. Sustainable
consumption and production practices will
increase the adoption of energy-efficient
and low carbon buildings, transport,
products, and services. Climate change
adaptation measures and disaster risk
management, as well as the protection and
conservation of natural resources, including
biodiversity, will be intensified to protect the
nation and its development gains.
New investments in road, rail, and air

services will be balanced with efforts
to improve the productivity, efficiency,
and service levels of such infrastructure.
Digital access will be increased through
both broadband infrastructure expansion
and initiatives to ensure their affordability.
Efficiency of the logistics sector and trade
facilitation will be enhanced, making
Malaysia the preferred logistics gateway
to Asia. Expansion and investment in
new water and sewerage networks and
treatment capacity will continue. Emphasis
will also be placed on improving the
security and reliability of the energy sector
by addressing both supply-side and
demand-side measures.
All economic sectors will migrate into

more knowledge-intensive and high-value
added activities. In the services sector,
there will be a shift towards modern
services, which include Islamic finance,
ecotourism, ICT, the creative industry,
the halal industry, and oil and gas. The
manufacturing sector will shift towards
more diverse and complex products
in three catalytic subsectors, namely
chemicals, electrical and electronics, and
machinery and equipment. Agriculture will
be modernised by promoting sustainable
practices and adopting modern farming
technology to generate high-income.
Growth across all economic sectors will be
supported by productivity improvements,
innovation, better talent, and greater
internationalisation.
1-11
Game Changer
Unlocking the potential of productivity

Why is productivity important for Malaysia?
How will this be achieved?
In the past, Malaysias economic growth has been predominantly

input-driven, supported by private investments in industry and public
investments in infrastructure, utilities, as well as in schools and
hospitals. Despite efforts to improve productivity, Malaysia continues
to lag behind many high-income economies. For example, Malaysias
labour productivity level was 32% that of the United States and 56%
that of South Koreas in 2013. While Malaysia will continue to boost
private investment and undertake public investment during the Eleventh
Plan, it will place greater emphasis on increasing productivity to achieve
a more sustainable, inclusive, and high rate of economic growth.
Malaysias approach to productivity will shift, from primarily

Government-driven initiatives at the national level to targeted actions
across the public sector, industry players, and individual enterprises,
with champions identified to role model change and ensure buyin across stakeholders. Broad-based initiatives will be developed
and tailored for each sector with targets set and monitored. At the
national level, productivity-linked incentives will be introduced and
regulatory reforms will be accelerated. At the industry level, industry
champions will spearhead industry-specific productivity initiatives,
while at the enterprise level, incentives and upskilling programmes will
be provided. Collectively, these strategies will produce a set of major
shifts as laid out below.
What will success look like?

During the Eleventh Plan, labour productivity will reach RM92,300
in 2020 from RM77,100 in 2015. In addition, sectoral growth will
accelerate due to improvements in productivity.
Approach
From
To
Fragmented productivity initiatives, typically

at national level
Focused and comprehensive strategies at all levels

national, industry, and enterprise
Led by Government
Spearheaded by industry champions and industry

associations, and supported by Government via the National
Productivity Council
Focused on manufacturing sector and

selected services subsectors
Covers all sectors, including agriculture, construction

and the public sectors
Generic programmes without clear targets
Programmes closely aligned with industry needs as per

relevant industry master plan
Champion
Industry
focus
Program
design
Regulation
revamp
Oversight
Incentives not linked to performance
Programme incentives linked to outcomes

Little to no linkages between regulations or
policies with productivity
Linkages established between government regulations or

Oversight only at the national level
Increased oversight across enterprise, industry, and national

level

Game Changer

Why is uplifting the B40 households important for
Malaysia?
Today, there are 2.7 million B40 households with a mean monthly
household income of RM2,537. As Malaysia continues to grow, the
B40 households should not miss out on the opportunities that come
with national prosperity. Allowing the B40 households to remain in
their current socio-economic status will create social costs for all
Malaysians, as it reduces the number of skilled workers needed to
grow national output, perpetuates urban inequality, and limits the
growth potential of rural and suburban areas.
What would success look like?

All B40 households regardless of ethnicity will be given greater
focus, especially the urban and rural poor, low-income households,
as well as the vulnerable1 and aspirational2 households. The size
Approach
Scope
Characteristics
and composition of middle-class society will grow to 45% by 2020.

The mean income of the B40 households will double to RM5,270 in
2020 from RM2,537 in 2014. More B40 households will have family
members with tertiary education, from 9% in 2014 to 20% in 2020.
The income share of the B40 to national household income will also
increase from 16.5% in 2014 to 20% in 2020.

The Government will implement strategies to raise the income
and wealth ownership of the B40 households, address the
increasing cost of living, and strengthen delivery mechanisms for
supporting B40 households. The Government will also introduce the
Multidimensional Poverty Index (MPI) to ensure that vulnerability and
quality of life is measured in addition to income. The major shifts that
will occur are set out below:
From
To
Lifting B40 households above the

poverty line through improved income
levels and assistance with living costs
Uplifting B40 households to middle-class society by further

improving income levels and wealth creation, as well as
increasing education and skill levels
Assisting B40 households with

individual micro-enterprises
Fostering community and social-based enterprises in the B40

community, in addition to individual enterprises
Focus on developing microentrepreneurship and economic

activities in low-value, traditional
industries
Building capacity to participate in high-productivity, innovative,

and creative economic activities
B40 households have low wealth and

non-financial asset ownership, and are
easily affected by economic shocks
B40 households are able to save and build wealth including

through non-financial asset ownership, making them more
resilient to economic shocks
B40 households are highly reliant on

government assistance
B40 households are independent and rely less on government

assistance programmes
Vulnerable households refer to households with income between Poverty Line Income (PLI) and 2.5 times PLI.
Aspirational households refer to households with income between 2.5 times PLI and national mean income.
1-12
1-13
Game Changer
Enabling industry-led Technical and Vocational Education

and Training (TVET)
Why is TVET important for Malaysia?
Supply matches demand, and there are robust quality control

mechanisms which ensure that all public and private institutions
meet quality standards;
Industry and TVET providers collaborate across the entire value
chain from student recruitment, through to curriculum design,
delivery, and job placement; and
Students are well-informed of the opportunities that TVET can
offer and view TVET as an attractive pathway. Students also have
access to a variety of innovative, industry-led programmes that
better prepares them for the workplace.

Achieving these aspirations will require harmonising and streamlining
how the system currently operates to reduce fragmentation across
the various public and private stakeholders. Furthermore, efforts will
be made to encourage industry-led interventions and programmes
as they are the stakeholders best placed to ensure that the supply
of graduates meet their requirements. A summary of the major shifts
that will be undertaken are set out as follows:
Governance
Programme delivery
An effective and efficient TVET sector is one where:
Capacity
From
Profile
Under the Eleventh Plan, 60% of the 1.5 million jobs that will be
created will require TVET-related skills. Meeting this demand will
require Malaysia to increase its annual intake gradually from 164,000
in 2013 to 225,000 in 2020. Yet, the challenge is not merely about
numbers. Industry feedback consistently reveals a disconnect
between the knowledge, skills, and attitudes these graduates
possess, and what is required in the workplace.
To
2 Accreditation
Agencies (MQA and
DSD) with different sets
of qualifications
Single qualification
system adopted by
both MQA and DSD
Different quality rating

systems for public
and private TVET
institutions, depending
on which Ministry the
institution is registered
with
Single rating system for

both public and private
TVET institutions
Design and delivery

of curriculum led
by individual TVET
institutions or
Government
Design and delivery

of curriculum led by
industry, in partnership
with TVET institutions
and Government
No specialisation
among TVET
institutions
Institutions to specialise
in and create Centres of
Excellence in niche areas
of expertise
164,000 intake in 2013
225,000 intake per annum

in 2020, by maximising
use of existing institutions
Limited recognition
and low premium
Career of choice
for students

Game Changer
Embarking on green growth

Why is green growth important for Malaysia?
Malaysia, like many countries across the world, is grappling with the
challenge of balancing a growing population and demand, with a
natural environment that is increasingly under stress. In the global
context of increasing intensity and frequency of extreme weather
events, adopting green growth has now become an imperative
for Malaysia. It represents Malaysias commitment to renew and,
indeed, increase its commitment to the environment and long-term
sustainability.

A successful green growth trajectory will ensure:
From
Detrimental impact of socio-economic activity on environmental

systems is reduced;
Quantity
of growth
landfill
Development gains are protected, thus ensuring wellbeing of

people across generations; and
Energy use is efficient and renewable energy is widely used.

Achieving these aspirations requires a fundamental shift away from
a grow first, clean up later development model towards one that
views resilient, low-carbon, resource-efficient, and socially inclusive
development as an upfront investment that will yield future gains over
multiple generations to come. This requires fundamental changes
across every major dimension including how policy is determined,
how institutions are regulated, how responsibilities are shared, and
how people value their environment.
Climate change
mitigation and
adaptation as a
Governments
Resource and energy
responsibility
intensive
Climate change
mitigation and
adaptation as an
Shared
responsibility
Resource and energy
cost
Quality of growth
To
Waste to
Natural capital, including forested areas, biodiversity, and water

resources as well as its ecosystems, is valued and sustainably
managed;
that takes into

consideration the
cost to the climate,
environment, and
the nations natural
resources
Waste as
resource
that can be reused

through recycling and
recovery, for power
generation, and
other waste to wealth
initiatives
investment
that is accounted
for during the
upfront planning and
investment stages
between the
government, private
sector, and individual
citizens
efficient
in balancing both
supply-side and
demand-side
considerations and
constraints
1-14
1-15
Game Changer

Why is innovation important for Malaysia?
Innovation is a key driver for economic growth as it raises productivity
through new or improved processes, technologies, and business
models. In addition, innovation can create additional sources of
revenue through differentiated products and services that serve
unmet customer needs. As Malaysia continues to move towards a
high-value, knowledge-based economy with a strong focus on the
services and manufacturing sectors, innovation will be crucial to raise
the overall efficiency and thus productivity of each sector.

In the enhanced innovation ecosystem, there will be greater
collaboration and integration across industry, academia, and
communities. Research will be closely aligned with industry demand,
and the private sector will be active partners in the research,
development, commercialisation, and innovation (R&D&C&I) process
by contributing funds, expertise, and other resources. Communities
Enterprise
innovation
Social
innovation
will be actively engaged in addressing social issues through a wholesociety approach in the provision of social services. There will be a
greater return on investment from innovation.

The Eleventh Plan will focus on strengthening relational capital by
improving collaboration among all stakeholders. Innovation will be
targeted at both the enterprise and societal level, instead of previous
efforts which focused primarily on national-level initiatives. At the
enterprise level, initiatives will enhance demand-driven research,
improve collaboration between researchers and industries, and
encourage private investment in R&D&C&I. At the societal level,
communities will be encouraged to provide input into social
service delivery mechanisms, while a social financing model will be
developed to assist communities to fund new initiatives. Collectively,
these strategies will produce a set of major shifts as set out in the
table below:
From
To
Collaboration between industry and

research institutes is limited, resulting in
R&D output that is not linked to industry
demand
Better partnerships between industry and researchers, with

industry helping to shape research to ensure relevance to
business, and contribute ideas, infrastructure, tools, and
expertise
Investments in R&D have low returns and do

not drive competitiveness and productivity
for industry
Integrated R&D&C&I initiatives generate high return on investment

over time and stimulate productivity growth
High investments in social services but

delivery is ineffective
Focus on streamlining social services delivery by incorporating

feedback from the community in line with the whole-society
approach
Communities remain dependent on the

government
Delivery supported by a Social Financing Model and outcomebased funding to provide communities with avenues to invest in
innovative initiatives

Game Changer
Investing in competitive cities
Urban form
Cities have always played an important role in a nations growth

by providing investment and trade opportunities, as well as
improving connectivity with rural or suburban areas. Today, global
competition for investment and talent is increasingly between
cities, making it imperative to invest in cities in order to attract
and retain investment and talent. Kuala Lumpur, the largest city
in the nation, is expected to contribute 14.8% of GDP in 2015. As
Malaysia aims to re-engineer and spur economic growth, the
development and renewal of cities will be crucial to create nodes
for strong economic agglomeration.
Economic
density
Why is investing in cities important for Malaysia?
City Competitiveness Master Plans will be developed for four major

cities as a start, based on key principles that increase liveability
and stimulate economic growth. These include creating density
to increase efficiency; expanding transit-oriented development to
enhance mobility; and strengthening knowledge-based clusters
to facilitate agglomeration and innovation. These master plans will
take into account each citys competitive advantages, and will be
formulated by the respective local authorities in consultation with
the private sector and civil society. The major shifts that this gamechanger will produce are summarised in the following chart.
Housing
Industry
focus
Role of local
authorities
By 2020, four major cities in Malaysia will have undergone a stepchange in their economic growth, importance as talent hubs,
and liveability. City residents will be able to afford urban housing,
have adequate public transportation systems, enjoy green and
open spaces, and have access to economic opportunities that will
enable them to provide their children with a better future. While
these four cities selected based on their strong fundamentals
will serve as pioneers, the transformation will be expanded to other
cities over time. These cities will serve as role models for other
cities in the country and region.
Resource
usage
From
To
Economic density in
cities is unplanned and
organic, resulting in
lower productivity
Increased economic
density to enhance
productivity
Uncontrolled and
automobile-focused
sprawl
Transit-oriented
development to
increase use of public
transportation and
reduce reliance on
personal vehicles
Resource use not

streamlined, leading to
high usage of natural
resources
Efficient waste
management through
guidelines on resource
use and effective
enforcement
New developments are

expensive and exclusive
with limited affordable
options
Affordable and quality

housing is accessible
to targeted segments
of the society
Current industries are

predominantly labourand space-intensive
industry
Growth of knowledgeintensive industries

with efficient use of
space
Local authorities
focused on licensing,
enforcement, and
provision of basic
services
Local authorities as
strategic drivers of
local economic and
social development
1-16
1-17
Transforming
public service for
productivity
To support the delivery of the six strategic thrusts and six game
changers, the Government is committed to transforming the
public service by becoming more citizen-centric and enhancing
the productivity, efficiency, and effectiveness of service delivery.
The aspiration is to deliver public service in a less bureaucratic,
hierarchical, and centralised manner; with talent that is multiskilled; and a range of service offerings that is more accessible
and innovative. To achieve these outcomes, the Government has
identified five focus areas:
Enhancing service delivery with citizens at the centre by
eliminating unnecessary bureaucratic processes, expanding the
outreach of its services, and increasing accountability;
Rationalising public sector institutions for greater
productivity and performance by reducing overlapping roles
and functions among agencies, right sizing the public service,
and introducing an exit policy for underperformers;
Strengthening talent management for the public service of
the future by providing a more conducive working environment
including flexible work arrangements, empowering ministries
and agencies, and upgrading public sector training;
Enhancing project management for better and faster
results by improving the process of project selection
and resource allocation, establishing dedicated project
implementation teams, and creating a pool of professional
project management personnel; and
Capitalising on local government for quality services at the
local level through greater engagement with local community
and NGOs, expanding the outreach and quality of service, and
further empowering local authorities in terms of capacity and
capability.

The Eleventh Plan not only marks the culmination of a 30-year
journey towards Vision 2020; it also sets the stage for the next
horizon of growth. Post-2020, the challenge will be to raise the
bar even higher on the countrys growth prospects along three
dimensions, namely economy, people, and environment.
The vision is for all Malaysians to have an unshakeable national
identity and clear moral compass. The country will be governed
by trusted and independent executive, legislative, and judicial
institutions that protect all Malaysians equally. Malaysians will
have a government that delivers and is led by leaders with integrity
and conviction who embrace the concept of amanah. Malaysia will
punch above its weight in the international arena, both as a strong
independent nation and through prominent Malaysian thought
leaders in various fields.
The economy will be progressive, inclusive, and adaptable for the
future, with highly productive world-class cities and thriving rural
areas. All Malaysians will be able to participate in and benefit from
the countrys growth, and enjoy an elevated state of wellbeing.
Malaysians will be passionate stewards of the environment and
no longer see environmental protection as a trade-off to a strong
economy, making Malaysia a truly beautiful place to live for all.
The aspirations described above are neither exhaustive nor
conclusive, but are intended to set in motion the prospect
for further engagement and serious deliberation. Essentially,
Malaysians envision a strong sovereign nation that is progressive
and inclusive and for the people to treasure unity and celebrate
diversity.

Conclusion
The Eleventh Plan is significant as it will be the last five-year plan before
Vision 2020 is achieved. It provides a crucial platform to ensure that
Malaysia transitions to an advanced economy and inclusive nation.
Towards this end, the Eleventh Plan has been formulated with the
rakyat as the focal point of all development efforts to enrich their
lives, raise their dignity, and enable them to partake in the countrys
economic prosperity. Six strategic thrusts and six game changers have
been defined to break the country out of business as usual practices
and set Malaysia on an accelerated growth trajectory.
The Eleventh Plan strives for a future that is built on sound
macroeconomic policy, inclusiveness so that no Malaysian is left
behind, improved wellbeing for all, human capital development that
is future-proof, green and sustainable growth, infrastructure that
supports economic expansion, and a citizen-centric public service with
high productivity. Collectively, these improvements will ensure that
everyone, regardless of gender, ethnicity, socio-economic status and
geographic location, can live in a truly harmonious and progressive
society that bears the mark of an advanced economy and inclusive
nation.
1-18
Strengthening
macroeconomic
resilience for
sustained growth
Overview
Highlights
Tenth Malaysia Plan,
2011-2015: Achievements
Looking back
2011-2015: Progress
Domestic economy
Summary of
macroeconomic
strategies
Eleventh Malaysia Plan,
2016-2020
Macroeconomic
prospects
2016-2020
Macroeconomic strategies
to strengthen economic
fundamentals
Domestic economy
Conclusion
2-1
Overview
The economy continues to be resilient in the face of global economic uncertainties
which present risks to a relatively small yet open economy such as Malaysia.
The nation has weathered several economic shocks in the past, mainly due to
solid fundamentals. Going forward, economic fundamentals will continue to
be strengthened-robust domestic demand, a diversified economic base, large
domestic savings, sustainable fiscal position, low inflation and a sound financial
system will ensure resilience against external risks and uncertainties. Stable
economic growth will also provide a conducive environment for businesses and
investment in the long-term.
During the Tenth Malaysia Plan, 2011-2015, the Malaysian economy expanded at
a steady pace despite mixed performance globally. Real Gross Domestic Product
(GDP) is estimated to expand by 5.3% per annum with nominal per capita Gross
National Income (GNI) expected to increase by 5.8% from RM27,819 (US$8,636)
in 2010 to RM36,937 (US$10,196) by 2015. Between 2009 and 2014, the average
monthly household income expanded faster at 8.8% per annum. Growth was
driven by strong domestic demand, particularly from increased private investment,
and a diversified economic base which softened the impact of a challenging
external environment. Due to the steady expansion of the economy, the rakyat
enjoyed improvements in income distribution and low unemployment at 2.9%.
During the Eleventh Malaysia Plan, 2016-2020, the Government will continue
to strengthen Malaysias economic resilience to withstand future economic
challenges. The economy is expected to grow at a rate of 5-6% per annum based
on sustained domestic demand and increasing contribution from the external
sector. In addition, continued structural reforms to strengthen the foundation
for economic expansion, including innovation and productivity improvements,
will provide further impetus for growth, higher national per capita and
household incomes as well as increased wellbeing of the rakyat. Monetary and
fiscal policies will be implemented to ensure stable prices, exchange rates, and
interest rates. Private sector investment will be encouraged to modernise key
economic sectors, and the services sector in particular will pivot to focus on
high-value, knowledge-intensive services. The Federal Government will balance
its fiscal position by 2020 by strengthening the tax base and improving the
decision-making process of development allocation for proposed programmes or
projects. Exports will be increased by improving product competitiveness,
promoting exports of services, and diversifying markets, thus maintaining a
surplus in the external account. Productivity improvements through enhanced
capital efficiency and the contribution of Multi-Factor Productivity (MFP) will
also be a key driver of the nations economic growth within the Eleventh Plan.
2-2
Please refer to strategy paper 1

for further details at
www.epu.gov.my

Chapter 2: Strengthening macroeconomic resilience for sustained growth
2-3
Highlights
5.3
36,937
RM
6,141
RM
Average real
GDP growth
compared with
world GDP
growth at 3.6%
National per
capita income in
2015 in current
prices
Average monthly
household
income in 2014
from RM4,025 in
2009
Real GDP
growth
Per capita
income
Average
household
income
7.1
Average
real private
consumption
growth
Private
consumption
162
RM
billion
Average private
investment in
current prices
Private
investment

2.0%
3.2%
29.8%
2.5%
2.9%
Ratio of current
account of BOP
to GNI in 2015
Ratio of fiscal
deficit to GDP
in 2015
Ratio of MFP to
real GDP growth
with average
MFP growth of
1.6%
Average annual
inflation rate
Full employment
expected in 2015
Current
account of
the balance of
payments
Fiscal deficit
Multi-Factor
Productivity
(MFP)
Inflation
2-4
Unemployment
2-5
Looking back
Real GDP is estimated

to expand by 5.3% per
annum on the back of
increasing domestic
demand, supported
by solid economic
fundamentals and a
sound financial system.
During the Tenth Plan, Malaysias economy grew

on the back of increased domestic demand,
particularly private investments in the services
and manufacturing sectors. Real GDP is
estimated to expand by 5.3% per annum during
this period, exceeding global GDP growth of
3.6%, and growth of emerging market and
developing economies at 5%. The services
sector in particular is expected to increase its
contribution to GDP - estimated to reach 53.8% in
2015 from 51.2% in 2010.
The world economy expanded by 3.6% per
annum from 2011 to 2014, characterised by
mixed performance of major economies. The
economies of the five major member countries
of the Association of Southeast Asian Nations
(ASEAN-5) grew by 5.1%, the United States
of America (US) by 2.1% and Japan by 0.7%,
attributed to improved labour market conditions,
strong domestic demand and encouraging
exports. However, the economies of the Peoples
Republic of China (PRC) decelerated to 8% and
the Euro Area to 0.3%.
World trade expanded by 4.1% per annum,
supported by steady consumer spending in the
US and other advanced economies, coupled
with sustained export performance in emerging
market and developing economies. Meanwhile,
world inflation softened, averaging at 4.2%
because of the substantial output gap in the
advanced economies and falling energy prices.
The final year of the Tenth Plan is expected

to be challenging with persistent economic
risks, among others, fiscal uncertainties in
advanced economies, softening of commodity
prices, shifting US monetary policy, economic
rebalancing of the PRC and geopolitical tensions.
Domestic economy
Despite mixed global economic performance,
Malaysias economy expanded at a steady rate
supported by strong domestic demand and
solid economic fundamentals. The diversified
economic base and sound financial system also
softened the impact of the challenging external
environment.
Aggregate demand
The GDP is estimated to expand by 5.3% per
annum in real terms during the Tenth Plan while
nominal per capita GNI is expected to increase
by 5.8% per annum from RM27,819 (US$8,636) in
2010 to RM36,937 (US$10,196) by 2015, as shown
in Exhibit 2-1. This is translated to an increase in
average monthly household income at 8.8% per
annum from RM4,025 in 2009 to RM6,141 in 20141.
The economy was driven by strong expansion
in domestic demand, mainly from private
investment activities. Real private investment
is estimated to record a double-digit growth
of 12.6% per annum during the Plan period, as
shown in Exhibit 2-2, driven by capital spending,
particularly in the services and manufacturing
sectors. Its contribution to GDP is expected to
Based on Household Income Survey in 2009 and Household Income and Expenditure Survey in 2014 undertaken by the Department of
Statistics Malaysia

increase from 12.3% in 2010 to 17.3% in 2015. To further

facilitate private investment, a total of RM6.1 billion was
disbursed through the Facilitation Fund2 from 2011 to 2014
for infrastructure, universities, colleges, resorts, mixed
development projects, and power plants.
Exhibit 2-1
GDP and GNI per capita, 2010-2015
GDP and GNI per capita, 2010-2015

Real GDP, % p.a.
Real GDP, RM billion
Real GDP
RM billion in 2010 prices
Real GDP
% p.a.
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
821.4
864.9
912.3
955.3
1,062.7
1,012.5
700
100
0
2010
11
12
13
14
7.5
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
GNI per capita

RM thousand in current prices
40
35
30
30.6
31.7
32.9
35.3
36.9
27.8
25
15
10
5
0
2010
11
12
13
14
2015
Notes: Based on GDP in 2010 prices

Source: Economic Planning Unit and Department of Statistics Malaysia
Exhibit 2-2
Investment, 2010-2015
Investment, 2010-2015
Real CAGR
%
RM billion, current prices

317.2
184.3
269.8
202.3
142.3
287.5
162.8
183.9
204.3
12.6
4.0
114.8
Private
investment
101.3
Public
investment
83.0
87.5
104.0
107.0
103.6
112.9
2010
2011
2012
2013
2014
2015
12.3
12.8
14.7
15.9
16.6
17.3
Private
investment,
% of real GDP

Foreign direct investment (FDI) remained an important

source of investment, technology transfer, and access to
foreign markets. A total of RM139 billion of FDI was recorded
from 2011 to 2014, with Japan, Singapore, and Netherlands
being the main contributors.
20
2015
246.3
2-6
Public investment is expected to grow at 4% per

annum in real terms during the Tenth Plan, spurred by the
implementation of large-scale projects, such as the Klang
Valley Mass Rapid Transit (KVMRT) line 1 from Sungai Buloh
to Kajang, Electrified Double-Track Railway Ipoh-Padang
Besar, Light Rail Transit (LRT) extension from Kelana Jaya
and Sri Petaling to Putra Heights, Kuala Lumpur International
Airport 2 (KLIA2), Central Spine Road from Kuala Lipis to
Bentong, as well as the Re-gasification Terminal (RGT-1)
in Melaka.
Private consumption is estimated to expand by 7.1%
per annum, supported by favourable employment and
wage conditions. Consumption is not expected to be
impacted much by the rationalisation of subsidies and
the implementation of the goods and services tax (GST).
Public consumption expanded rapidly by 8.4% during
the first three years of the Plan, mainly contributed by
higher expenditure on supplies and services as well as
salary adjustments for civil servants in 2012. However, its
expansion for the overall Plan period is estimated to be
lower at 5.5% due to more prudent spending and fiscal
consolidation in 2014-2015.
The Facilitation Fund was introduced under the Economic Stimulus Package in
2009 as an initiative to encourage the implementation of private sector projects. Its
main objective is to bridge the viability gap in private sector investment in high-value
projects that have large spill-over effects and high strategic impact to the economy
2-7
Sectoral output
and receipts, while improvements in wholesale and retail trade-related

activities boosted the transport and storage subsector. Robust
All sectors of the economy are expected to expand during the Plan
period, as shown in Exhibit 2-3. The structure of the economy continues activities in the infrastructure and residential subsectors are expected
to spur a double-digit growth of 11.1% in the construction sector.
to evolve to become more services oriented. The share of the services
sector to GDP is estimated to increase from 51.2% in 2010 to 53.8%
The manufacturing sector is estimated to grow at 4.8% per annum,
by 2015. The share of the construction sector is estimated to increase
given the resilient domestic demand from higher private investment and
from 3.4% to 4.5%, while those of the manufacturing, mining, and
strong expansion in the construction-related subsector. This growth
agriculture sectors are expected to decline. However, the latter three
is also supported by the recovery in exports, particularly of electrical
sectors continue to grow in absolute terms and their value added to the
and electronics (E&E) products. The agriculture sector is estimated
economy remains significant.
to maintain its growth momentum of 2.4% per annum, supported by
modernisation in the agro-food and industrial commodity subsectors.
The services sector is estimated to grow by 6.3% per annum during
the Tenth Plan. This growth is driven by the wholesale and retail
trade subsector, supported by resilient consumer spending as well
as the communications subsector, due to the sustained increase in
the number of cellular phone subscribers and increased usage of
mobile data services. In addition, the accommodation and restaurants
subsector is expected to expand further due to higher tourist arrivals
Exhibit 2-3
Real GDP by Kind of Economic Activity, 2010-2015
Real GDP by kind of economic activity, 2010-2015

Share to GDP, %
CAGR, %
1,062.7
Total
RM billion
International trade and balance of payments

821.4
53.8%
6.3
Services
51.2%
Manufacturing
23.4%
Construction
Agriculture
3.4%
10.1%
10.9%
2010
2015
Mining
The mining sector increased marginally by 0.9% per annum mainly

due to lower production of crude oil from maturing oil fields. On
average, 587,000 barrels per day of crude oil and condensates was
produced during the Plan, which is within the production volume set
under the National Depletion Policy. Crude oil prices saw extreme
fluctuations where the average price of Brent crude oil, the international
key benchmark for global crude oil prices, plunged to US$62.2 per
barrel in December 2014 from an average of US$110.5 per barrel in
2011-2013. The Brent crude price is expected to stabilise to about
US$60 per barrel in 2015. The production of liquefied natural gas (LNG)
averaged at 25.2 million tonnes per annum (mtpa) to fulfil contractual
demands from Japan, South Korea, Taiwan, and the PRC.

23.0%
4.8
4.5%
8.8%
11.1
8.8%
0.9
2.4
The contribution of the external sector remains substantial at RM1.6

trillion, equivalent to 135% to GDP in 2015 compared with RM1.3 trillion
in 2010 (158% to GDP). Based on the World Trade Organization 2013
report, Malaysia is currently the 25th biggest merchandise exporter
contributing 1.2% of total world merchandise exports. The expansion
of total exports is expected to be sustained at 4% per annum during the
Tenth Plan. Malaysias major trading partners were ASEAN followed by
the PRC, Japan, the European Union (EU), and the US.
During the first three years of the Plan, gross exports moderated to 4.1%
per annum, mainly due to the contraction in E&E exports by 1.7% and
agriculture commodities by 1.2% following weaker external demand.
Mineral exports grew at 9.9% supported by 15.4% growth in LNG
exports, following higher demand for gas-powered electricity generation
in Japan.

Exhibit 2-4
Balance
ofpayments,
payments,
2010-2015
Balance of
2010-2015
Goods (net)
Services (net)
Current account balance
RM billion
160
140
120
100
80
60
40
20
0
-20
Current
account
balance,
% to GNI
2010
2011
2012
2013
2014
2015
10.4
11.2
5.4
3.6
4.4
2.0

Exhibit 2-5
Federal
Government
account,
2010-2015
Federal government
account,
2010-2015
RM billion
250
Overall Balance
Operating
expenditure
Development
expenditure
Revenue
200
150
100
50
0
-50
Overall
Balance,
% to GDP
2010
2011
2012
2013
2014
2015
-5.3%
-4.7%
-4.3%
-3.8%
-3.4%
-3.2%

Source: Economic Planning Unit, Ministry of Finance and Department of Statistics Malaysia
2-8
Malaysia became a net overall importer of petroleum-related

products in 2014, net exporting RM8.8 billion worth of crude
oil, but net importing RM9.7 billion of petroleum products.
Therefore, the net impact of lower oil prices beginning 2014
has been positive for Malaysia. Given that the share of mineral
exports to total exports is only 13.7%, the broader impact
of uncertainties in the oil and gas market to the national
economy is also limited.
Growth of exports in 2014-2015 is expected to further moderate
by 3.9% per annum, mainly due to lower commodity prices.
Mineral exports are estimated to decline by 13.7% per annum
and agricultural exports by 5.3% per annum. However,
manufactured exports are estimated to increase by 7.8% per
annum due to sustained demand for E&E products during the
same period.
Gross imports are estimated to expand by 6.5% per annum
during the Plan period, contributed partly by the increase
in imports for re-exports. This accounted for nearly 15%
of total imports, following the setting up of the regional oil
storage and trading facilities in southern Johor. Imports of
capital and intermediate goods contributed to three quarters
of total imports.
The current account of the balance of payments (BOP) is
expected to remain in surplus, albeit narrowing from RM82.8
billion or 10.4% to GNI in 2010 to RM22.4 billion or 2% to
GNI in 2015, as shown in Exhibit 2-4. This is attributed to the
surplus in the goods account, higher tourism receipts in the
services account and improvements in the secondary income
account.
Malaysia continues to maintain a strong international reserves
position. As of 15 April 2015, international reserves stood
at RM391.4 billion (US$105.6 billion), making it 1.1 times the
short-term external debt, and sufficient to finance 8.2 months
of retained imports.
Federal Government fiscal position

The Federal Government fiscal position was further
consolidated in line with the targets set during the Tenth
2-9
Plan. The fiscal deficit was reduced from 5.3% to GDP in 2010 to
3.4% in 2014 due to more prudent fiscal management, as shown in
Exhibit 2-5. Revenue collection was better than expected from 2011
to 2013 with higher global crude oil prices, strategic divestments
by Khazanah Nasional Berhad, and securitisation of Government
employees housing loans. As part of the overall effort to facilitate
fiscal consolidation, the Government undertook several structural and
institutional reforms during the Plan period, such as establishing the
Fiscal Policy Committee, adopting Outcome-Based Budgeting, and
implementing GST. Fuel subsidies were further rationalised by the
introduction of the managed float system for retail RON95 and diesel
prices from December 2014.
Following the falling crude oil prices in 2014, the fiscal deficit is
expected to be 3.2% to GDP in 2015 as compared with the target of
3%. Overall, the continued reduction in the fiscal deficit will ensure that
the total Federal Government debt does not exceed the self-imposed
debt limit of 55% to GDP. By 2015, debt is expected to reach RM622.7
billion (53.3% to GDP) from RM407.1 billion (49.6% to GDP) in 2010.
Although the debt level remains elevated, the debt servicing capacity
is still within prudent limits, which is capped below 15% of revenue.
In 2015, debt service charges are estimated to be 10.9% of revenue
compared with 9.8% in 2010.
Inflation and labour market

Although the Government rationalised subsidies for fuel, electricity
and sugar, inflation remained moderate at an average rate of 2.5%
per annum between 2011 and 2014. The main contributors to inflation
were food and non-alcoholic beverages; transport; and housing, water,
electricity, gas, and other fuel. These three categories accounted for
80.5% of the overall increase in consumer prices during the period.
Inflation in 2015 is expected to be lower between 2% and 3%, mainly
due to the decline in global oil prices. This would partly offset some of
the impact from the implementation of GST from 1 April 2015.
The economy is expected to continue to be in full employment with the
unemployment rate remaining at 2.9% by the end of the Tenth Plan.
This is attributed to the steady economic growth and improvements in
the labour market. A total of 1.8 million jobs are estimated to be created
mainly in the services and manufacturing sectors.

Malaysia has continued to strengthen economic resilience through
various measures over the last five years. Moving forward, there
are still challenges to be addressed. The five key challenges that
will be addressed by the Government during the Eleventh Plan are
uncertainties in the global economy, lagging productivity growth,
inadequate fiscal space, low compensation to employees, and
disparity in household income. These challenges can significantly
affect the nations economic performance and its future growth
trajectory. Therefore, macroeconomic strategies under the Eleventh
Plan will seek to ensure that the economy continues to be resilient.
Uncertainties in the global economy

As a small and open economy, Malaysia is susceptible to global
economic risks and uncertainties. The economic shocks experienced
in the past few decades were triggered by external factors such as
the collapse of world commodity prices in 1985, Asian financial crisis
in 1997/1998 and the subprime crisis in 2009. Nevertheless, Malaysia
managed to rebound within a year of these crises, which demonstrated
its economic resilience. In addition to shorter global economic cycles,
Malaysia also faces the prospect of a drastic fall in the prices of major
export commodities, depreciation of the ringgit against major currencies,
and the risk of economic slowdown of its major trading partners.
Lagging productivity growth

Since the mid-1990s, Malaysia has focused on increasing innovation
and productivity to transform from an input-driven to a knowledgebased economy. However, productivity level still lags behind that of most
developed economies. In 2013, Malaysias labour productivity was only
32.4% that of the US and 56.1% that of South Korea. This is mainly due to
the low contribution of MFP3 to the economy. The Malaysian economy is
still driven by traditional factors of production, namely capital and labour,
which contributed about 70% of GDP growth, as shown in Exhibit 2-6.
Even though labour and capital are still necessary for production, higher
MFP measures the part of economic growth that cannot be explained by the increased utilisation of capital and labour, and is often interpreted as the contribution to economic growth made by factors such
as technical and organisation innovation as well as quality of labour. MFP is synonymous to Total Factor Productivity (TFP)

MFP contribution will ensure a more sustainable growth

pattern and equitable distribution of wealth in the long run.
Exhibit
2-6 of Production, 1996-2015
Factors
Factors of production, 1996-2015

Real growth, % p.a.
Share to growth in brackets, %
Inadequate fiscal space

5.3
4.8
4.8
Capital
2.4
(49.5%)
Labour
1.2
(25.1%)
Multi-factor
productivity
1.2
(25.4%)
Seventh Plan,
1996-2000
2.0
(41.1%)
4.5
2.6
(48.8%)
2.1
(46.4%)
1.5
(30.6%)
0.8
(18.9%)
1.1
(21.4%)
1.3
(28.3%)
1.6
(34.7%)
1.6
(29.8%)
Eighth Plan,
2001-2005
Ninth Plan,
2006-2010
Tenth Plan,
2011-2015

Exhibit 2-7
GDP by income approach, 2010-2015

GDP by Income Approach, 2010-2015
Taxes less subsidies

Gross operating surplus
Mixed income1
RM billion, in current prices

Share to GDP, %
Compensation of employees
1200
1100
1000
900
800
2.5%
3.8%
700
600
500
400
46.8%
300
17.9%
200
100
31.5%
2010
48.9%
1.9%
47.0%
2.2%
45.1%
2.6%
44.1%
19.0%
4.6%
39.1%
21.3%
18.2%
19.1%
31.9%
32.9%
33.6%
34.3%
34.9%
2011
2012
2013
2014
2015
16.7%
2-10
0
1 Income earned by self-employed and unincorporated businesses
The Federal Government fiscal account remained in

deficit, albeit on a declining trend, throughout the Tenth
Plan. Nevertheless, the deficit was financed through
non-inflationary means, mainly through borrowing from
domestic non-banking institutions and issuing bonds, while
keeping to the self-imposed borrowing limit of 55% to GDP.
In view of global economic uncertainties, it is imperative
that fiscal consolidation measures continue, while also
ensuring that there is adequate public funding to support
economic growth and deliver quality services to the rakyat.
Low compensation to employees

Although economic growth has been accompanied by a
reduction in income disparity, a significant gap still exists
between the income of capital owners and employees,
as shown in Exhibit 2-7. During the 2010-2013 period, the
share of Gross Operating Surplus (GOS), which represents
income of capital owners, averaged 64.9% of GDP while
the Compensation of Employees (CE) was 32.5%. The CE to
GDP ratio for Malaysia is lower compared with that of other
high- and middle-income countries such as Australia (47.8%
of GDP), South Korea (43.2%), and South Africa (45.9%).
Disparity in household income

As the nation continues its stable economic growth, all
Malaysians should be given the opportunity to contribute
to and participate in the economy. However, certain
communities still remain vulnerable to economic risk,
particularly the bottom 40% (B40) households. Even
though the average monthly income of the B40 households
has increased by 12% per annum between 2009 and 2014,
its income share of total household income only increased
marginally from 14.3% in 2009 to 16.5% in 2014. Further
raising the income of B40 households is a priority for
Malaysia to achieve more inclusive development.
Summary of macroeconomic strategies

Unlocking
productivity
potential to
ensure
sustainable
and inclusive
growth
Nation-wide productivity agenda and implementation plan

Enhancing public sector productivity and accelerating
regulatory reforms
Multidimensional
goals, 2016-2020
Greater collaboration in re-skilling and research

Ensuring productivity is championed across industries
Enterprise-level productivity assessments and targets
GDP growth at
5-6%
per annum
Reducing the cost of doing business
Promoting
investment
to spearhead
economic
growth
Providing performance-based incentives for high-income

and knowledge-intensive economic activities
Addressing the talent gap and mismatch
Labour productivity at
RM 92,300
by 2020 from RM77,100
in 2015
Improving access to financing for knowledge-intensive

industries
Providing tipping point financing through the Facilitation Fund
GNI per capita at
RM 54,100
by 2020
Increasing
exports to
improve
trade
balance
Improving the export ecosystem

Moving up the value chain
Maximising opportunities with strategic partners
Increasing external industry expert support
Average monthly
household income at
RM 10,540
by 2020 from
RM6,141 in 2014
40%
Compensation
of employees to
GDP by 2020 from
Enhancing
fiscal
flexibility
to ensure
sustainable
fiscal position
34.9% in 2015
Enhancing revenue and implementing more prudent
spending measures
Malaysian Wellbeing
Index (MWI) to
increase
1.7%
per annum
RM
4.6
2.7%
billion
6.4%
average growth of real

private consumption
average growth
of gross exports
RM
57.3
billion
2.8
unemployment rate
by 2020 and full employment
throughout Plan period
average public
investment in current
prices

public investment
291
Fiscal position
International trade
average private
investment in current
prices
9.4%
Consumption
Investment
average growth of
real private
investment
Unemployment
SELECTED OUTCOMES
Macroeconomic prospects, 2016-2020
RM
billion
3.7%
trade
balance
by 2020
131
RM

public consumption
46.5
billion
current account of
balance of
payments at 2.6%
of GNI by 2020
below
45%
ratio of Federal Government
total debt to GDP by 2020
Fiscal position to be
balanced by 2020
2-13
Macroeconomic prospects
GDP growth will be

backed by strong
domestic demand and
expanding external
sector, as well as a
shift in focus towards
multidimensional goals
that balance economic
growth, wealth
distribution, and national
wellbeing in line with the
people economy.
The Eleventh Plan period is crucial as it is the final

Plan before the year 2020, the year by which the
nation would have achieved its goal of becoming
an advanced and inclusive nation. In line with the
priorities of the people economy, the Government
will shift towards multidimensional goals for the
nation that balance economic growth, wealth
distribution, and national wellbeing. Thus, the
multidimensional goals set out for the Eleventh
Malaysia Plan will encompass macroeconomic
targets as well as socio-economic goals of income
distribution and wellbeing.
The Malaysian economy is expected to benefit
from more robust global economic prospects,
recovery of commodity prices and benign global
inflation during the Eleventh Plan. The global
economy is expected to strengthen during the
period to grow at 3.9% per annum, as shown in
Exhibit 2-8. Stronger consumer and business
spending in advanced economies, stabilisation
and recovery of emerging market and developing
economies as well as the easing of fiscal
constraints in advanced economies are projected
to contribute to the overall stronger global growth.
World
economic outlook, 2011-2020
Exhibit 2-8
World economic outlook, 2011-2020
Growth, % p.a.
Actual
Item
World output
Advanced economies
Emerging market and
developing economies
World trade
Imports
Advanced economies
Emerging market and
Exports
Advanced economies
Emerging market and
World price
Manufactures
Non-fuel primary
commodities
Oil (US$ per barrel)1
Growth (%)
Consumer prices
Advanced economies
Emerging market and
2011
2012
Estimate
2013
2014
2015
Estimate
Tenth Plan
Eleventh Plan
4.2
1.7
6.2
3.4
1.2
5.2
3.4
1.4
5.0
3.4
1.8
4.6
3.5
2.4
4.3
3.6
1.7
5.0
3.9
2.1
5.1
6.8
2.8
3.5
3.4
3.7
4.0
5.0
5.5
9.8
0.9
6.0
2.1
5.5
3.3
3.7
3.3
3.5
3.0
5.7
4.6
6.0
6.3
7.4
2.0
4.4
3.1
4.6
3.3
3.4
3.2
5.3
3.6
5.0
4.3
6.0
6.1
17.9
0.6
-10.0
-1.4
-1.2
-0.8
-4.0
-3.3
-14.1
0.2
-2.9
0.6
-0.7
104.0
31.6
105.0
1.0
104.1
-0.9
96.2
-7.5
58.1
-39.6
93.5
-6.0
70.9
5.0
2.7
7.3
2.0
6.1
1.4
5.9
1.4
5.1
0.4
5.4
1.6
6.0
1.9
4.6
Notes: 1The average of UK Brent, Dubai Fateh, and West Texas Intermediate crude oil prices
Source: World Economic Outlook, April 2015, International Monetary Fund

Growth is expected to remain uneven across regions. Advanced

economies are projected to record a moderate growth of 2.1% per
annum while emerging market and developing economies, particularly
in Asia, are expected to grow at a faster rate of 5.1%. World trade is
anticipated to expand by 5% per annum, supported by encouraging
export growth of 6% in emerging market and developing economies.
World inflation is projected to be at 3.5% per annum during the Plan
period. There are however, headwinds expected from high household
and public debt, rising healthcare costs, lower commodity prices,
and geopolitical tensions, which may dampen overall world growth
momentum.
Exhibit 2-9
GDP and
GNI
per per
capita,
2015-2020
GDP
and
GNI
capita,
2015-2020
Real GDP
RM billion, in 2010 prices
Real GDP
% p.a.
Real GDP (% p.a.)
6.5
60
1,450
Real GDP (RM billion)
6.0
55
5.5
50
1,411.3
1,400
5.0
1,350
4.5
1,300
4.0
1,250
3.5
1,200
3.0
2.5
1,150
1,100
1,050
1,062.7
Labour productivity to increase from RM77,100 in 2015 to

RM92,300 in 2020
GNI per capita to reach RM54,100 (US$15,690) in 2020
Average monthly household income to increase from RM6,141 in
2014 to RM10,540 in 2020
The share of compensation of employees to GDP to increase from
34.9% in 2015 to at least 40% in 2020
The Malaysian Wellbeing Index (MWI ) to increase by 1.7% per
annum, an indicator of improvement in the wellbeing of the rakyat
During the Plan period, the GDP growth of 5-6% will be anchored by
robust expansion in private consumption and investment, resulting
in a 7.9% per annum rise in GNI per capita, as shown in Exhibit 2-9.
Worker salaries are also expected to rise, resulting in a more equitable
distribution of income between capital owners and employees with an
increase in the share of compensation of employees to GDP.
Overall wellbeing is expected to improve as a result of rising
household incomes and other inclusiveness and wellbeing initiatives.
The Malaysian Wellbeing Index is targeted to increase by 1.7% per
annum, compared with 1.2% as recorded during the Tenth Plan.
Social wellbeing is targeted to improve at a more rapid pace during the
GNI per capita

RM thousand, in current prices
1,500
Six multidimensional goals have been identified for the Eleventh Plan:
Real GDP to expand at 5-6% per annum
2-14
2015
16
17
18
19
2020
54.1
45
40
36.9
35
30
25
2.0
20
1.5
15
1.0
10
0.5
2015
16
17
18
19
2020
Notes : Based on GDP in 2010 prices

Eleventh Plan as compared with the Tenth Plan, reflecting the shift in
policy focus towards the people economy.
Macroeconomic strategies to strengthen

economic fundamentals
To meet the multidimensional goals, the macroeconomic policy
framework for the Plan period will focus on enhancing the resilience
of the economy. During the Eleventh Plan, strategies will continue
to ensure a conducive and competitive economic environment with
stable prices, and supportive levels of interest rates and foreign
exchange rates. Four strategies have been identified to strengthen
economic fundamentals and maintain economic stability as follows:
Unlocking the potential of productivity to ensure sustainable and
inclusive growth
Promoting investment to spearhead economic growth
Increasing exports to improve trade balance
Enhancing fiscal flexibility to ensure sustainable fiscal position
2-15
Domestic economy
Successful achievement of the multidimensional goals laid out above is
contingent on the delivery of overall national macroeconomic targets. A
number of key targets are laid out below.
Productivity
GDP growth during the Eleventh Plan will be driven by significant
increases in productivity, with less dependence on inputs from capital
and labour. Increasing productivity is identified as one of the game
changers where the contribution of MFP to GDP growth is targeted to
increase to 40%, while that of capital is expected to reduce to 44% and
labour to 16%, as shown in Exhibit 2-10. Higher productivity growth
will be achieved through comprehensive initiatives at all levels and
championed by industry players. Industrial productivity will be raised
through greater adoption of automation and upgrading of skills. The
innovation ecosystem will be enhanced to elevate productivity through
new or improved processes and technologies. Strategies at various
levels will be implemented to achieve this aspiration.
Real growth, % p.a.

Share to growth in brackets, %
5.0-6.0
5.3
Capital
Labour
1.1
(21.4%)
Multi-factor
productivity
1.6
(29.8%)
Tenth Plan, 2011-2015

Enhancing public sector productivity by introducing productivity

enhancement key performance indicators (KPIs), accelerating
regulatory reforms and rationalising government institutions
Encouraging up-skilling and re-skilling as well as research through
increased industry-academia collaboration, more targeted skills
training programmes and increased support for industrial and
social innovation activities
Industry level
Ensuring productivity is championed across industries by
appointing productivity champions and customising industry-level
productivity programmes
Enterprise level
Setting up enterprise-level productivity assessments and targets
by promoting productivity performance targets, introducing firmlevel interventions, promoting health check mechanisms and
fostering a productivity-based culture
Exhibit 2-10
Factors of
Factors
of Production,
production,2011-2020
2011-2020
2.6
(48.8%)
National level
Establishing a nation-wide productivity agenda and implementation
plan by formulating a five-year Malaysia Productivity Blueprint,
strengthening the governance and institutional mechanism for
implementation of productivity strategies and establishing a
dedicated national productivity portal
2.6
(44.0%)
0.9
(16.0%)
2.3
(40.0%)
Eleventh Plan, 2016-2020
Aggregate demand
On the demand side, real private consumption is expected to
increase at an average rate of 6.4% per annum, as shown in Exhibit
2-11. This increase will be supported by higher household income
due to stable labour market conditions, increased employment
in high-paying jobs, favourable commodity prices and continued
direct assistance by the Government to the targeted groups. Public
consumption is anticipated to grow moderately by 3.7% per annum,
in line with greater prudence and commitment to achieve a balanced
budget by 2020, without compromising on the quality of public
service delivery.
The private sector will continue to play a significant role in steering the
nation towards becoming an advanced economy and inclusive nation.
Private investment is expected to grow at 9.4% per annum, with an

2-16
estimated average annual investment of RM291 billion in current prices. Improving access to financing for knowledge-intensive industries
Both domestic direct investment (DDI) and FDI will be promoted. With
by considering innovative financing options
respect to DDI, small and medium enterprises (SMEs) will be given
Providing tipping point financing through the Facilitation Fund to
special focus as they made up 98.5% of total establishments and 59%
bridge the viability gap in financing for strategic investment projects
of total employment in the economy in 2015. Efforts to increase FDI will
focus on attracting investments in higher value added and knowledgePublic investment is anticipated to grow at 2.7% per annum, or an
intensive employment activities.
annual average of RM131 billion in current prices, driven by the Federal
Government development expenditure and capital spending of nonThe Government will take on more of a regulatory and facilitative role
financial public enterprises (NFPEs). These investments are particularly
in increasing private investment through targeted strategies such as
in the infrastructure, transport, utilities as well as oil and gas industries.
improving access to financing and improving regulations to be more
Some of the major public sector projects that will be undertaken,
business-friendly. Five strategies will be implemented to strengthen
include the Pengerang Integrated Complex (PIC) in Johor; Pan-Borneo
investment outcomes:
Highway; KVMRT Line 2 and the roll-out of the High Speed Broadband
project phase 2. The Government will take steps to sequence project
Reducing the cost of doing business through increased provision of
basic infrastructure and facilities, and reviewing bureaucratic regulations implementation to ensure sustainable economic growth.
Providing performance-based incentives for high-income and
knowledge-intensive economic activities by reviewing the current
investment incentive programme
Addressing the talent gap and mismatch by establishing a labour
market data warehouse, improving the labour market clearance
mechanism as well as re-skilling and multi-skilling programmes
Exhibit 2-11
GDP
Expenditure,
2011-2020
GDPbyby
expenditure,
2011-2020
Real growth,
% p.a.
Tenth Plan
Eleventh Plan
Imports
Private investment
320
12.6
240
160
9.4
113
116
124
131
139
146
2015
16
17
18
19
2020
80
5.5
Public
consumption
Exports
400
6.4
Private
investment
Public
investment
Public investment
7.1
Private
consumption
RM billion
in current prices
3.7
4.0
400
2.7
320
240
2.1
204
228
17%
18%
255
286
323
365
160
2.1
80
3.8
2.3
Private
Investment,
% to real GDP

19%
19%
20%
20%
Sectoral output
All economic sectors are expected to record better performance during
the Plan period, as shown in Exhibit 2-12. The growth of these sectors
will be driven by strong demand, enhanced productivity as well as
higher value added and knowledge-intensive activities.
The services sector will continue to be the key driver of growth.
Growth in the sector is expected to increase significantly by 6.9% per
annum, increasing its share to the GDP from 53.8% in 2015 to 56.5%
in 2020. The sector is expected to record broad-based growth across
all subsectors. The wholesale and retail subsector will continue to be
the main contributor, expanding by 5.8% per annum, supported by
strategies to modernise the subsector as well as enhance the efficiency
and effectiveness of the supply chain. The real estate and business
services subsector is expected to expand by 7.9%, followed by the
finance and insurance subsector by 6.1%.
The performance of the manufacturing sector will be enhanced through
a shift towards the production of more complex and diverse products and
improving productivity by adopting greater automation and upgrading
skills. The sector is expected to record a growth of 5.1% per annum
during the Plan period, led by the domestic-oriented subsector, which is
expected to increase by 4.4% in line with better business confidence and
consumer sentiments. Among the key industries that will drive growth are
food, beverages and tobacco; fabricated metal products; and machinery
2-17
Game Changer
Unlocking the potential of productivity

Why is productivity important for Malaysia?
In the past, Malaysias economic growth has been predominantly
input-driven, supported by private investments in industry and public
investments in infrastructure, utilities, as well as in schools and
hospitals. Despite efforts to improve productivity, Malaysia continues
to lag behind many high-income economies. For example, Malaysias
labour productivity level was 32% that of the United States and 56%
that of South Korea in 2013. While Malaysia will continue to boost private
Labour Productivity, 2011-2020
investment and undertake public investment during the Eleventh Plan, it

will place greater emphasis on increasing productivity to achieve a more
sustainable, inclusive, and high rate of economic growth.

During the Eleventh Plan, labour productivity is targeted to reach
RM92,300 in 2020 from RM77,100 in 2015, as shown in Table B2-1.
In addition, sectoral growth will accelerate due to improvements in
productivity.
Table B2-1
Labour productivity, 2010-2020
RM '000, in 2010 prices
Growth, % p.a.
Actual
Sector
2010
2011
Estimate
Target
2012
2013
2014
2015
2020
Estimate
Tenth Plan
Target
Eleventh Plan
2011-2015
2016-2020
Agriculture
51.7
55.3
55.8
56.4
57.5
57.7
68.8
2.2
3.6
Mining and
Quarrying
1,089
1,064
1,076
1,083
1,114
1,147
1,210
1.1
1.1
Manufacturing 94.4
94.4
94.4
94.8
95.5
98.8
112.1
0.9
2.6
Construction
24.7
25.8
30.0
32.2
35.7
39.1
61.9
9.6
9.6
Services
59.3
60.8
62.4
63.8
66.4
68.1
83.4
2.8
4.1
Total
68.7
69.9
71.4
72.5
75.0
77.1
92.3
2.3
3.7


2-18

with targets set and monitored. At the national level, productivity-linked
incentives will be introduced and regulatory reforms will be accelerated.
At the industry level, industry champions will spearhead industry-specific
productivity initiatives, while at the enterprise level, incentives and
up-skilling programmes will be provided. Collectively, these strategies will
produce a set of major shifts as laid out below.
Malaysias approach to productivity will shift from primarily Governmentdriven initiatives at the national level to targeted actions across the public
sector, industry players, and individual enterprises, with champions
identified to role model change and ensure buy-in across stakeholders.
Broad-based initiatives will be developed and tailored for each sector
From
Approach
To
Fragmented productivity initiatives,

typically at national level
Focused and comprehensive strategies at all levels

national, industry and enterprise
Led by Government
Spearheaded by industry champions and industry

associations and supported by Government via the National
Productivity Council
Focused on manufacturing sector and

selected services subsectors
Covers all sectors, including agriculture, construction

and the public sectors
Generic programmes without

clear targets
Programmes closely aligned with industry needs

as per relevant industry master plan
Incentives not linked to performance
Programme incentives linked to outcomes
Little to no linkages between regulations

or policies with productivity
Linkages established between Government regulations or

Oversight only at the national level
Increased oversight across national, industry, and enterprise

levels
Champion
Industry
focus
Programme
design
Regulation
Oversight
The strategy canvas highlights areas that should be

eliminated, reduced, raised or created for this game
changer.
Strategy Canvas Productivity

High
Eleventh
Plan
As-Is
Low
Eliminate
Reduce
Non performancebased incentives
Ease of hiring
low-skilled foreign
workers
Out-dated or
unnecessary
regulations
Raise
Government
assistance not
linked to
performance
Selective policies
that limit
competition
Create
Productivityfocused planning
Overlapping
functions & efforts
between public
agencies
Exit policy for

Government
incentives
Advisory services
for enterprises to
improve
productivity
Productivity-linked
National
wage & targeted productivity drive
incentives
with supporting
initiatives
Supportive
measures for
skilled-workers &
women in labour
force
Empowering
productivity body
2-19
Where are the best

practices in Malaysia?
Productivity levels in Malaysia have
increased during the Tenth Plan,
but still lag behind most developed
economies. To stay ahead of the curve,
Malaysia must accelerate productivity
growth, particularly by growing
capital efficiency and improving MFP.
Malaysias ability to increase its labour
productivity growth rate depends
on how well it can derive greater
efficiency from internal resources
such as human capital, innovation, as
well as from better practices such as
operational excellence. Best practices
and innovation for productivity
improvement exist in companies
and organisations across the nation.
The following examples illustrate
the range of such practices across
different sectors and different types of
organisations in Malaysia.
Connecting to the grid
Reducing patient wait times
Tenaga Nasional Berhad (TNB) is the
Perdana Specialist Hospital (PdSH) is a
largest electricity utility company in Malaysia

serving more than eight million customers.
It is also a leading utility company in Asia.
The process of providing electricity supply
connections is a key customer priority for
TNB as it affects hundreds of thousands
of new customers every year. The process
encompasses procedures such as
applications, inspections, meter installation,
and the final connection works. The number
of days and procedures required to set up a
supply connection also has an impact on the
economic development of Malaysia as these
metrics are benchmarked by the World Bank
as an important indicator on the ease of doing
business in each country.
hospital under KPJ Healthcare Berhad in Kota

Bharu with a maximum capacity of 126 beds.
PdSH faced capacity issues due to long patient
discharge times of over five hours, resulting
in a lack of available rooms and an inability to
accommodate new patients. To address this,
PdSH adopted lean principles and tools such
as value stream mapping, particularly to help
reduce waiting times for the discharge of postnatal self-paying patients.
Over the past few years, TNB has

demonstrated how productivity, operational
efficiency, and customer service can be
improved concurrently. As part of its ongoing
transformation programme, TNB focused
on streamlining the end-to-end process of
supply connection to reduce the number
of steps required for application, improve
communications with contractors, introduce
electronic document management systems,
and manage resources more effectively. As
a result, the number of days required for an
overhead electricity connection reduced from
51 days in 2012 to 32 in 2014, placing Malaysia
in 27th place out of 189 countries in terms of
speed of getting electricity in the World Banks
Doing Business 2015 report. As of 2015,
upon receiving necessary authorisations and
user payment, TNB is now able to connect
households and businesses to an electricity
supply within 7 days all this at a lower cost to
customers.
Source: PEMUDAH Malaysia in Doing Business 2015 report;

World Bank Doing Business Report 2015; Tenaga Nasional
Berhad Performance Standards (www.tnb.com.my)
A key component of a sustainable healthcare

system is the ability to utilise existing
healthcare assets well, and to deliver services
with greater efficiency. The lean methodology
can be applied effectively in hospitals to
eliminate waste, streamline processes, reduce
cycle times, improve the quality of care,
enhance satisfaction, and reduce delays for
patients.
Over the course of six months, PdSH
successfully streamlined and reduced the
number of steps in the discharge process by
35% from 31 to 20 steps, as well as shortened
average waiting time by 47% from 5 hours 8
minutes to 2 hours 44 minutes. In addition,
productivity improvements through value
streammapping helped to eliminate wastage
in terms of distance traveled, as well as staff
and lift utilisation. By improving the turnover
of patients, PdSH not only enhanced overall
patient satisfaction, but also increased
revenues per bed by 113% from RM313,677
in the first quarter of 2014 to RM674,773 in the
second quarter of 2014.
Source: Malaysia Productivity Corporation

2-20
Linking performance
and productivity
Enhancing productivity in
public services
Innovating on industrial efficiency
Panasonic Appliances AirConditioning is an air conditioner
The Kuantan Municipal Council
Hartalega is the worlds largest nitrile

glove producer based in Malaysia. Malaysia
is now also the worlds largest producer
of rubber gloves, with more than 60% of
global market share. Hartalega is at the
forefront of industry innovations and has
the highest productivity performance in
the industry. They invest over RM10 million
each year into research and development
to improve the industrial efficiency of its
manufacturing processes. They have
introduced innovations such as double
former production lines, mechanical
stripping systems, glove stacking devices,
and dipping simulators. In parallel,
Hartalega places heavy emphasis on talent
development and skills improvement of
their workforce, and collaborates with
learning agencies such as Majlis Amanah
Rakyat (MARA) and Selangor Human
Resource Development Centre (SHRDC).
machine manufacturing company

based in Shah Alam. In order to support
improvements in the productivity and
efficiency of its workforce, it implemented
the Productivity-Linked Wage System
(PLWS) that linked productivity to individual
performance and rewards. The PLWS is
also a focus area of research conducted
by the Malaysia Productivity Corporation
(MPC), and is among one of 78 research
projects by MPC to improve productivity
and innovation nationwide.
The first phase of the initiative by
Panasonic (Mind Change) directly linked
bonuses and salary increments to
company performance, while the second
phase (Real Productivity Enhancement)
further linked bonuses and increments
to individual performance, as well as to
a challenging performance index. The
PLWS successfully delivered significant
improvements on the performance of the
company across various dimensions. This
included boosting workforce attendance to
98.3%, increasing workforce productivity,
improving production quantities, and
various other operational metrics.
Source: Malaysia Productivity Corporation
or Majlis Perbandaran Kuantan (MPK)

embarked on business process
re-engineering to improve service delivery
for customers. The e-Licence system was
introduced to simplify previously complex
procedures for issuance of business
premise licences. The concept of approve
first, inspect later was adopted, and has
reduced application and approval time from
21 days to as little as 15 minutes. Online
application systems via the MPK portal
has also enhanced the user-friendliness
of the process. The capacity of MPK to
process licences improved from 50 to 1,377
applications per month with a reduction in
operational cost of 76%, and at the same
time, increased revenues collected by more
than 27 times.
The Inland Revenue Board of

Malaysia (IRBM) acts as an agent of
the Government in providing services
in administering, assessing, collecting,
and enforcing payment of taxes and
duties. IRBM has embarked on several
service delivery improvement initiatives
by leveraging on ICT innovations, such as
e-Filing for electronic submission of tax
returns, e-Payment for online payment
of taxes, as well as electronic systems
for monthly tax deductions and taxpayer
registration. IRBMs commitment to
innovation has resulted in increased
revenue collection and lower operational
cost, while optimising resources, time,
and working space. In terms of tax arrears,
74.7% of the total amount of arrears or
RM6.85 billion was successfully resolved
and collected in 2013. Direct tax collection
also increased significantly by 358% from
RM29.17 billion in 2000 to RM133.70 billion
in 2014.
Hartalega is commissioning their Next

Generation Integrated Glove Manufacturing
Complex (NGC) comprising 72 high-tech
production lines with the fastest line
speeds in the industry. The new facilities
and increased production capacity are
expected to create more than 4,000
new jobs, while reducing manual labour
requirements by 24% due to technological
advances. Hartalega reports an average
ratio of 3.9 workers per million pieces
of gloves produced per month, which is
substantially better than the estimated
industry average of 7.5 workers per million
pieces. With the new NGC, Hartalega
expects this ratio to improve further to 2.6
workers per million gloves.
Source: MAMPU; Kuantan Municipal Council; IRBM
Source: Hartalega annual reports; Invest Malaysia

Corporate Malaysia 2014 presentation
2-21
and equipment. Given improvements in external demand, the exportoriented subsector is also expected to expand at 5.5%, including the E&E,
petroleum and chemicals, plastic products, and non-metallic mineral
products industries.
The construction sector is estimated to expand by 10.3% per annum
during the Plan period. This is attributed to continued civil engineering
works and a growing residential subsector to fulfil the demand
for housing, particularly from the middle-income group. Demand
for affordable housing by the low-income group will also remain
favourable, which will be supported by several Government initiatives,
such as Program Perumahan Rakyat 1Malaysia (PR1MA), Rumah
Idaman Rakyat and Rumah Mesra Rakyat. Other subsectors such as
civil engineering and non-residential will remain robust in line with the
development of major projects such as the Tun Razak Exchange, KL118
Tower, Refinery and Petrochemicals Integrated Development (RAPID),
and the Pan-Borneo Highway.
The agriculture sector is projected to expand by 3.5% per annum.
Emphasis will be on increasing productivity through the modernisation
of the sector, supported by greater innovation and research and
development. Focus will be given to the agro-food subsector to ensure
Exhibit 2-12
GDP by
Economic
Activity,
2015-2020
GDP
byKind
kindofof
economic
activity,
2015-2020
Share to GDP, %
CAGR, %
1,411.3
Total
(RM billion)
1,062.7
56.5%
Services
53.8%
Construction
Agriculture
Mining
23.0%
5.5%
7.8%
4.5%
8.8%
8.8%
7.1%
2015
2020

The mining sector is expected to rebound with a 1.3% growth rate

per annum during the Plan period. The production of crude oil and
condensates is expected to be at a sustainable level of 612,000 barrels
per day, while the production of LNG will increase to 29.3 mtpa with the
operation of Train 9 in PETRONAS LNG Complex in Bintulu, Sarawak
beginning 2016. The production of crude oil will be supported by
anticipated oil discoveries, and marginal fields as well as revival of
mature fields made possible with the adoption of new technologies,
such as enhanced oil recovery and improved oil recovery, subject
to economic viability. The production of natural gas is expected to
expand further on account of increased demand, particularly from
petrochemicals. Based on 2015 estimates, the reserve life for crude oil
will be a further 28 years and 42 years for gas.
GDP by state
Ensuring geographic balance in economic growth continues to be a
priority for the Government. GDP and GDP per capita by state are
expected to grow in tandem with national average growth rates, as
shown in Exhibit 2-13. Most states will perform better during the
Eleventh Plan compared with their performance in the Tenth Plan. In line
with the national economic structure, the services and manufacturing
sectors are expected to be the main drivers for economic growth at
state level. In parallel, all states are expected to record significant
improvements in GDP per capita, resulting in higher household income
and enhanced wellbeing of the rakyat across the nation.
International trade and balance of payments

22.1%
Manufacturing
6.9
the targeted self-sufficiency level of food commodities, such as rice

at 100%, vegetables at 95.1%, and beef at 50% are met by 2020. The
oil palm subsector is expected to expand by 2.8% with an increasing
number of matured plantations, particularly in Sabah and Sarawak. The
rubber subsector is also estimated to grow by 7.6% due to the expected
price recovery.
5.1
10.3
3.5
1.3
International trade growth is expected to remain robust, supported

by the implementation of the ASEAN Economic Community (AEC)
in 2015 as well as bilateral and multilateral trade agreements. These
trade arrangements will benefit domestic industries in manufacturing,
mining and services sectors, in particular aviation, banking, education,
healthcare, information and communications technology (ICT), and
tourism. In addition, the formation of the National Export Council (NEC)

2-22
will further stimulate export growth by facilitating cross-ministry policy

coordination and implementation.
investment that will require imports of more intermediate and capital

goods. Imports of consumption goods are also projected to strengthen
as Malaysia becomes a high-income economy by 2020. Nevertheless,
With the expected positive global growth outlook and the strengthening the trade balance is expected to remain positive with a surplus target of
of major commodity prices, gross exports are projected to register
RM57.3 billion by 2020.
stronger growth of 4.6% per annum, with a focus on increasing highervalue exports. Exports of manufactured goods is expected to grow by
During the Eleventh Plan, several strategies will be introduced to spur
5% per annum, driven by both E&E and resource-based exports. The
export growth to improve Malaysias trade balance. Efforts will also be
growth in E&E exports will be led by semiconductor sales following
undertaken to enhance SME contribution to exports to 25% by 2020
continuous demand for smart devices. Mineral exports growth will be
from 19% in 2015. The NEC will enhance the contribution of exports to
sustained at 3.2% during the Plan period, supported by exports and
the economy, where several key strategies to spur export growth will be
re-exports of petroleum products, LNG, and chemicals and chemical
implemented as follows:
products. Agriculture exports are expected to improve by 2.3%, led by
Improving the export ecosystem by upgrading infrastructure and
palm oil.
reducing bureaucratic requirements
In tandem with the improved exports performance and domestic
Moving up the value chain by encouraging companies to invest
economic activities, gross imports are estimated to expand by 4.8%
in new technologies to participate at the higher end of the global
per annum. Stronger world demand will encourage more domestic
supply chain
Exhibit 2-13
Tenth Plan
Maximising opportunities with strategic partners to increase trade
Eleventh Plan
GDP by state, 2011-2020
with the PRC and ASEAN
Growth, % p.a.
(in 2010 prices)
Kedah
4.7
4.8
4.9
Kelantan
Melaka
5.5
4.6
5.1
5.4
5.7
5.6
6.1
5.8
5.9
Negeri Sembilan
Pahang
Pulau Pinang
Perak
Perlis
3.0
4.0
Selangor
3.6
Terengganu
Sabah
Sarawak
Increasing external industry expert support and shifting to more

proactive export promotion approaches
5.6
5.9
5.6
5.8
Johor
3.0
6.6
6.9
4.2
4.6
4.1
4.7
W.P. Kuala Lumpur

W.P. Labuan

Source: Economic Planning Unit
6.1
7.3
7.5
7.7
The current account balance of the BOP is projected to remain in

surplus and expected to record RM46.5 billion or 2.6% of GNI by 2020.
This is contributed by a higher surplus in the goods account while
recording a lower deficit in the services account and primary income,
particularly in investment income account. The deficit reduction in the
services account will be supported by the increase in tourism receipts
and increased activities related to the storage and trading hub at the
Pengerang Integrated Petroleum Complex (PIPC). Services exports
are also expected to increase with greater internationalisation of the
services sector. In order to reduce the deficit in the primary income
account, the Government will encourage re-investment of earnings
from targeted FDI as well as provide a comprehensive and conducive
ecosystem for new investments.
2-23
Federal Government fiscal position
Development expenditure will be an important instrument to achieve

The Government is committed towards meeting its fiscal consolidation the goal of becoming an advanced economy and inclusive nation
target of a balanced budget by 2020 by continuing and expanding upon that will rely more on productivity improvements, intellectual capital,
the structural reforms initiated during the Tenth Plan. The main strategy skills, innovation and technology. As such, development allocation will
continue to prioritise non-physical programmes in the Eleventh Plan.
to enhance fiscal flexibility under the Eleventh Plan is to strengthen the
The development allocation during the Plan period is estimated to be
efficiency of revenue collection and to undertake more disciplined and
RM260 billion, where the focus will be on the economic and social
prudent use of Government funds. The efficiency and effectiveness of
the existing taxation system will be further enhanced, following from the sectors. With these measures, the Federal Government total debt is
projected to further decline to below 45% of GDP by 2020.
implementation of the GST in 2015.
The introduction of the GST will bring in an estimated average of
RM31.4 billion revenue per year over the next five years compared to an
average of RM15.5 billion collected through the sales tax and services
tax during the Tenth Plan, which will strengthen the fiscal position. This
will be further improved by among others, reviewing dividends received
from Government-linked companies and undertaking greater joint audit
efforts by the Inland Revenue Board and the Royal Malaysian Customs
Department. Revenue is targeted to expand by 7.9% per annum and the
dependence on oil-related revenue to decline to 15.5% by 2020 from
21.5% in 2015.
Prudent spending practice will be enhanced by among others, further
rationalising subsidies, adopting accrual accounting at all government
agencies and ministries as well as introducing the Creativity Index to
evaluate the socio-economic impact of programmes and projects.
The rationalisation of the public service during the Plan period will also
contribute towards more moderate operating expenditure.
Inflation and labour market

Accommodative monetary policy and administrative measures will
continue to ensure price stability. Inflation during the Plan period is
expected to remain low, averaging between 2.5% and 3% per annum.
The economy is projected to maintain full employment with an
estimated unemployment rate of 2.8% by 2020. Employment is
expected to grow at a slower rate of 2.1% per annum to reach 15.3
million by 2020, with additional 1.5 million jobs created. The services
sector is expected to contribute 62.5% to total employment, while the
manufacturing sector 18.2%. This slower growth corresponds with
the improvements in labour productivity and the shift from a labourintensive economy to a capital, technology and knowledge-based
economy. The composition of skilled jobs, such as senior officials and
managers, professionals and technicians, and associate professionals,
is targeted to reach 35% of employment by 2020.

Conclusion
During the Eleventh Plan, the economy is expected to experience
strong growth on the back of continued firm domestic demand
and improved external sector. Macroeconomic fundamentals will
be further strengthened to enhance economic resilience through a
further diversified economic base, larger domestic savings, balanced
fiscal position, low inflation, full employment, and sound financial
system. Initiatives to enhance productivity at the national, industry and
enterprise levels will further boost growth. This will be accompanied
by higher national per capita and household incomes as well as
improved wellbeing of the rakyat in line with the focus on the people
economy.
2-24
Enhancing
inclusiveness
towards an
equitable
society
Overview
Highlights
Looking back
2011-2015: Progress
Elevating the livelihood
of the B40 households
Building a progressive and

more inclusive society
Ensuring accessibility to
basic infrastructure and
services
Promoting corridors as an
engine of growth
Enhancing Bumiputera
economic participation
2016-2020
Moving forward
2016-2020
Focus area A: Uplifting
B40 households towards a
middle-class society
Focus area B: Empowering
communities for a productive
and prosperous society
Focus area C: Transforming
rural areas to uplift wellbeing
of rural communities
Focus area D: Accelerating
regional growth for better
geographic balance
Focus area E: Enhancing
Bumiputera Economic
Community (BEC)
opportunities to increase
wealth ownership
Conclusion
3-1
Overview
Inclusivity is a key principle in Malaysias national socio-economic development
agenda, to ensure all citizens enjoy the fruits of growth and development
regardless of ethnicity, socio-economic status and geographic location. Malaysia
has long emphasised the importance of balanced growth by providing access
to education and skills training, infrastructure, and employment opportunities to
boost outcomes for all segments of society, in particular the low-income
group. Moving forward, the focus will be on ensuring more equitable access to
economic growth opportunities while increasing wellbeing and quality of life
across all segments. Non-productive aid programmes will be reduced in favour
of more sustainable wealth creation initiatives. The delivery mechanism will be
strengthened across government, encouraging more active participation from
the private sector and civil society.
During the Tenth Malaysia Plan, 2011-2015, inclusivity was a key strategy
towards achieving a prosperous and equitable society. Targeted implementation
of development and empowerment programmes resulted in an increase in the
socio-economic status of Malaysians. Overall income distribution improved,
with the Gini coefficient reducing from 0.441 in 2009 to 0.401 in 2014,
exceeding the 2015 target of 0.420. Mean monthly household income of the
bottom 40% households income group (B40 households) increased to RM2,537
in 2014 from RM1,440 in 2009. The provision of rural basic infrastructure combined
with entrepreneur development activities has enabled people in rural and
remote areas to increase their participation in socio-economic development.
Focused development in regional economic corridors has also attracted
investment and created jobs for locals, especially in less developed areas.
Despite these achievements, more needs to be done to ensure that fruits of
development are enjoyed and benefit all communities.
In the Eleventh Malaysia Plan, 2016-2020, the Government will continue

to focus on enhancing inclusiveness and equitable opportunities for all
Malaysians. Strategies aim to increase the overall household income of B40
households towards improving the quality of life and wellbeing of the rakyat.
Income inequality is expected to improve further with the Gini coefficient
reducing to 0.385 in 2020. The focus will be on addressing the needs of identified
target groups, prioritising conditional and outcome-based support, whether
economic or social. Assistance and subsidies not linked to productivity will
be reduced in favour of programmes focused on creating improved wealth
ownership and increasing education and skill levels. Specific strategies include
uplifting the B40 households towards a middle-class society; empowering
communities for increased economic participation; transforming rural areas
to uplift wellbeing of rural communities; accelerating regional growth; and
enhancing Bumiputera economic opportunities.
3-2
Please refer to strategy papers

2, 3, and 4 for further details at
www.epu.gov.my

Chapter 3: Enhancing inclusiveness towards an equitable society
3-3
Highlights
0.401
Gini coefficient
reduced from
0.441 in 2009
surpassing the
2015 target of
0.420
Increasing
income
equality
2,537
RM
Mean B40
household
income,
increased
from RM1,440
in 2009
0.6
896,612
Incidence
of poverty
in 2014,
from 3.8%
in 2009
Youth participated
in programmes to
build leadership,
entrepreneurship
and volunteerism
Elevating the livelihood of

B40 households
53.6%
Female labour
force participation
rate in 2014
an increase from
46.4% in 2009
Building a progressive and more

inclusive society

51,262
km
Rural road
coverage
in 2014 from
45,905
kilometres
in 2009
98
94
Rural
Rural water
electricity
supply
coverage in
coverage
1
2014 from
in 2014 from
1
93% in 2009 81% in 2009
5,737
Villages
connected
through the
Kampung
Tanpa Wayar
programme
Ensuring accessibility to basic physical

infrastructure and services
Actual figures for 2009 is 92.3% while 2014 is 97.6%
175
RM
billion
3-4
413,278
Entrepreneurs
Realised
benefited from
investment
loans of RM8.6
in five regional
billion provided
economic
by Amanah Ikhtiar
corridors
Malaysia (AIM) and
resulting in
Tabung Ekonomi
427,100 jobs
Kumpulan Usaha
Niaga (TEKUN)
Nasional
Promoting
Enhancing
corridors as an Bumiputera
engine of growth economic
participation
3-5
Looking back

Efforts were made
to ensure Malaysias
prosperity was shared
by all groups, regardless
of gender, ethnicity,
socio-economic status,
and geographic location.
During the Tenth Plan, initiatives to enhance

inclusivity included elevating the livelihood of
the B40 households; building a progressive and
more inclusive society; ensuring accessibility
to basic infrastructure and services; promoting
corridors as an engine of growth; and enhancing
Bumiputera economic participation.
Elevating the livelihood of the

B40 households
The overall income distribution improved as

indicated by the reduction of the Gini coefficient
from 0.441 in 2009 to 0.401 in 2014, surpassing
the 2015 target of 0.420. In urban areas, the Gini
coefficient improved from 0.423 to 0.391, while
in rural areas the Gini coefficient improved from
0.407 to 0.355 during the same period.
Raising income generation potential of

B40 households
B40 households refers to households that are at

the bottom 40% of income distribution. In 2009,
the mean monthly income of B40 households was
RM1,440; by 2014 it was RM2,537.
Efforts were undertaken to elevate the quality of

life of rural households and enhance the economic
participation of urban households through income
generating activities, human capital development,
and micro-enterprise support programmes.
Exhibit 3-1
Bottom 40 households: achievements during the Tenth Plan

Bottom 40 Households: Achievements during the Tenth Plan
Elevating the quality of life of rural households
Enhancing the economic participation of urban

households
Programme
Achievements
Programme
Achievements
Providing holistic support

programmes for micro-enterprises
7,801 participants
3,100 participants attended

skills training
Providing business ownership

opportunity for capable
entrepreneurs
Income of 225,867 participants

increased by more than RM2,000
per month
Establishing industry-specific
skills centres based on targeted
geographical areas
Linking rural talent to employers

in nearby clusters and cities
701 participants attained skills

training to match job opportunities
Expanding micro-enterprise
support programmes
8,580 participants attained

entrepreneurship training
Increasing income sustainability

in the agriculture sector through
the concept of agropolitan and
contract farming
3,486 participants income

increased by RM1,200 per month
Extending the incubator concept

to increase entrepreneurship and
employment opportunities
1,726 GIATMARA incubators

developed
Improving productivity in rural

agriculture and agro-based
industries
38,663 participants had additional

income at least RM300
Increasing land productivity and

yield through land amalgamation
Rubber at 1,276.45 kg/ha (2012)

Palm oil at 15.54 MT/ha (2012)
Raising household income through information and

communications technology (ICT)
Programme
Achievements
eRezeki micro-sourcing to
generate income
39,518 participants with total

revenue of RM6.87 million

Assisting children in B40 households to boost their

education and skills attainment
Initiatives to address the educational needs of children in B40
households include the implementation of 1Asrama and Asrama Desa
programmes which reduced student dropouts from 47,260 in 2010 to
43,428 in 2013. In addition, as of 2014, 1.51 million students benefited
from financial aid including Kumpulan Wang Amanah Pelajar Miskin
(KWAPM) and Rancangan Makanan Tambahan (RMT).
Strengthening social safety net to reduce vulnerability

Social Safety Net (SSN) initiatives were implemented to address
vulnerability issues and protect the livelihoods of B40 households
from economic shocks. Among the outcomes delivered were: 55,000
households received housing assistance; 9.2 million individuals
benefited from enhanced access to healthcare services through the
1Malaysia Clinics, 1Malaysia Mobile Clinics, and Flying Doctor services;
493,076 individuals received income support assistance focused on
senior citizens and nonworking persons with disabilities (PWD); and
7 million individuals received Bantuan Rakyat 1Malaysia (BR1M) cash
assistance.
3-6
Entrepreneurship and skills training programmes were provided for the

poor Indian community, benefiting 167,500 individuals. Of these, more
than 10,000 youth participated in skills training programmes, while
30,000 adults participated in entrepreneurial training programmes.
127,500 primary and secondary school students benefited from
educational enhancement programmes.
Building a progressive and more inclusive society

Strengthening the family institution
During the Tenth Plan, priority was given to inculcate positive family
values to strengthen the family institution. 1.29 million people
participated in programmes implemented by the National Population
and Family Development Board (LPPKN), namely Family Education@
LPPKN, SMARTSTART, Parenting@Work, and SMARTbelanja@LPPKN.
In addition, 165,000 families benefited from programmes conducted at
four established One-stop Family Service Centres, such as counselling,
mediation, stress-relief therapy, and reproductive health services.
The Family Wellbeing Index was developed by LPPKN in 2011 to

measure the state of family wellbeing in Malaysia against seven
domains and 23 indicators. The average score in 2011 was 7.55 out of
Addressing the needs of special target groups
10. The domain that scored the least is family economy, particularly in
The needs of special target groups, such as the Orang Asli in Peninsular
the areas of saving for the future and debt burden, followed by housing
Malaysia and those living in rural and remote areas in Sabah and
and environment.
Sarawak, were addressed through land development and ownership,
as well as skills training programmes. A total of 32,561 hectares of
Moulding youth to become dynamic and inspired future
Native Customary Rights (NCR) land were gazetted for Orang Asli in
leaders
Peninsular Malaysia, 26,956 hectares for Bumiputera in Sabah, and
885,800 youth participated in youth development programmes
558,571 hectares for Bumiputera in Sarawak. The number of Orang
between 2011 and 2013 in the areas of leadership, socio-economic
Asli receiving skills training increased from 435 in 2011 to 3,750 in 2014,
development, volunteerism, and international youth cooperation. In
while 2,100 Bumiputera in Sabah and Sarawak also benefited from
addition, 10,812 youth participated in entrepreneurship programmes to
various skills training programmes.
enhance their skills and capabilities in doing business, namely Program
3K (Kepimpinan, Kemahiran and Keusahawanan), Belia Bestari,
In addition, a total of 4,446 Chinese new village residents were
Outreach Usahawan, and Smart Partnership Usahawan Belia.
assisted through the Special Financial Loan Scheme for New Village
Residents. Total loans provided as of 2014 were worth RM142 million.
3-7
Exhibit 3-2
Family
Wellbeing
Indexisismeasured
measured by 23
seven
domains
TheThe
Family
Wellbeing
Index
23 indicators
indicatorsacross
across
seven
domains
Average score: 7.55 out of 10

Family Relationship
Family Economy
7.82
Family Health
6.90
Parental involvement
Family resilience
Family functioning
Time with family
Work-family balance
Husband/wife relationship
7.83
Community cooperation
Community relationships
Community involvement
7.38
7.39
Family health practices

Family health levels
Stress management
Family living standards

Family economic situation
Future savings
Debt burden
Family and Community
Family and Safety
Family and
Religion/Spirituality
8.25
Role of religion
Spiritual practices
SOURCE: Score of Domain in Malaysia Family Wellbeing Index 2011; National Population and Family Development Board
Increasing
women participation in the labour force and
entrepreneurship
The female labour force participation rate increased from 46.4% in

2009 to 53.6% in 2014 (and estimated to be 55% in 2015), driven by a
range of initiatives to increase participation through better workplace
practices. These included tax incentives to encourage employers
to train and re-employ women who have been out of the workforce,
and grants for renovation and furnishing of childcare centres within
government offices. In addition, initiatives were implemented to grow
women entrepreneurs such as the Micro Credit and Small Business
Loan Scheme, Get Malaysia Business Online (GMBO), and Women
Exporters Development Programme.
Women in leadership continued to rise, with women in top management
positions in the public sector increasing from 30.5% in 2010 to 32.5% in
2014. Women accounted for 10.2% of directors on the boards of public
listed companies (PLCs) in 2014 as compared to the target of 30% by 2016.
Ensuring the protection and wellbeing of children

Under the Tenth Plan, the protection and wellbeing of children continued
to be strengthened. Among others, Talian Nur 15999, a helpline for the
Emergency response knowledge

Safety at home
Family safety
Housing and Environment
7.28
Basic amenities
Pollution levels
community and CHILDLINE, a dedicated line to receive feedback and

information on matters pertaining to children, was established. In 2010 to
2014, a total of 4,116 cases related to child issues were reported through
Talian Nur and 3,976 cases were resolved, with 140 cases pending and
under further investigation. Meanwhile, a multimedia messaging service
(MMS) and short messaging service (SMS) system called Nur Alert,
established in 2010, continued to disseminate and seek information and
feedback on missing children below 12 years old.
Six pilot projects were established to provide affordable childcare
services for 79 children with special needs such as children with
Downs Syndrome, learning difficulties, hearing disabilities, visual
impairment, autism, and physical disabilities. As a result of initiatives
to promote awareness among parents, 68,400 new registrations of
children with disabilities were recorded during 2011 to 2014.
Supporting the elderly to lead productive and fulfilling

societal roles
The mandatory retirement was increased to 60 years across the
public and private sector in 2012 and 2013 respectively. Extending
the retirement age enables this segment of the workforce to continue

contributing towards national socio-economic development. In

addition, a 100% tax rebate on costs to retrain older workers was
introduced to encourage them to re-enter the labour market.
Healthcare support for the elderly was also extended in 2012, with
patients aged 60 and above exempted from paying the outpatient fee
in government clinics and hospitals. They are only required to pay a
nominal fee for specialist care, medication, and hospitalisation. 6,320
persons also benefited from the volunteer-based Home Help Services
programme to assist and support the elderly and PWD living alone to
live more independently and in comfort.
Integrating persons with disabilities into society

Sistem Maklumat Orang Kurang Upaya (SMOKU) was established in
2011 to improve planning and delivery of programmes for PWD. As at
September 2014, a total of 322,700 PWD were registered in the system.
Exhibit 3-3
Significant progress has been made in rural basic

Sabah and Sarawak
delivery
for Sabah delivery
and Sarawak
infrastructure
for
2009
2014
Rural roads coverage

kilometres
5,606
Rural electricity
coverage
% of houses covered
77.0%
Rural water supply

coverage
% of houses covered
59.0%
Sabah
94.1%
7,246
67.0%
4,565
80.6%
59.0%
Sarawak
91.0%
5,885
Peninsular
Malaysia
35,734
Source: Ministry of Rural and Regional Development
38,131
99.5%
99.8%
81.7%
90.0%
98.8%
3-8
To increase the participation of PWD in economic activities, the

Government introduced employment support services for PWD including
the Job Coach Programme. In line with the policy allocating 1% of jobs
opportunities in the public sector for PWD, 0.2% of total public servants in
2014 are now PWD, excluding the uniformed and enforcement bodies.
Ensuring accessibility to basic infrastructure

and services
During the Tenth Plan, rural road coverage expanded by 11.7% from
45,905 kilometres in 2009 to 51,262 kilometres in 2014. In Sarawak, 250
kilometres of ex-logging roads were upgraded to provide accessibility
to 31,512 people in underserved rural areas. Rural electricity coverage
reached 97.6% and water supply reached 93.8%. 188,270 water tanks
were provided to supply clean water to 251,200 households in remote
areas in Sabah and Sarawak.
1,122 telecentres were established to enhance digital inclusion and
inculcate a culture of innovation and creativity. In addition, 5,737 villages
were connected through the Kampung Tanpa Wayar programme and
971 telecommunication towers constructed. The increased access to
the Internet enabled rural and suburban communities to acquire new
skills and knowledge, and generate alternative sources of income.
77 Mobile Community Transformation Centre (Mobile CTC)
programmes involving more than 50 government and private agencies
were organised, benefiting almost 135,000 people. These Mobile CTC
programmes are a key touch point bringing government services to the
rural community, especially in remote areas. Activities such as sports,
community services, and social gatherings were also organised in
parallel to bring people together and promote unity. The Mobile CTCs
also provide a platform for the government to channel assistance
directly to the target groups, including micro-credit facilities.
Financial inclusion has also increased with 4,351 Bank Simpanan
Nasional (BSN) agents appointed throughout the nation to provide
banking services, including savings and withdrawal transactions, as
well as bill payment.
3-9
Promoting corridors as an engine of

growth
Iskandar Malaysia
During the Tenth Plan, regional economic corridors attracted

a total of RM307.1 billion committed investments, of
which 56.8% or RM174.5 billion was realised. The realised
investments resulted in 427,100 jobs created.
In addition to investments and job opportunities, regional
economic corridors also continued to uplift the lives of
communities in surrounding areas. A number of initiatives
were implemented across the regional economic corridors
to enable local communities to benefit from the development
taking place in the region.
Exhibit 3-4
Investment by regional economic corridors,

2011-2014
Investment by Regional Economic Corridors, 2011-14
Investment, RM billion
Regional Economic Corridors
Committed
Jobs
Realised
000
Iskandar Malaysia (IM)
90.4
47.1
320.1
Northern Corridor Economic Region (NCER)
51.7
51.7
63.5
East Coast Economic Region (ECER)
55.4
22.9
23.0
Sabah Development Corridor (SDC)
96.7
44.5
15.2
Sarawak Corridor of Renewable Energy

(SCORE)
12.9
8.3
5.3
307.1
174.5
427.1
Total
Source: Regional Corridor Authorities
Housing, transportation linkages,

skills training, and entrepreneur
development continued to be a
priority in Iskandar Malaysia
1,500 unit of affordable homes
were built in the region, as well
as 2,720 units of housing for
squatter relocation
Program Bas Iskandar
Malaysia was set up to cater
for public transportation needs
in non-profitable routes, with
34 buses serving 17 routes
Employability and upskilling
or reskilling programmes have
enabled local communities to
participate in the economic
development of the region,
such as 950 individuals trained
for the hospitality industry with
90% obtaining jobs
Entrepreneur development
programmes were conducted
in collaboration with
other agencies, including
the Internet Marketing
Development Programme
which saw participants
increase sales by 30-60%
Northern Corridor
Economic Region
Initiatives in the Northern Corridor
Economic Region (NCER) focused
on skills training for increased
employability, welfare, and social
inclusion programmes
202 students with learning
disabilities successfully
completed a training
programme to cultivate and
market mushrooms and
chillies, while 20 teachers
were certified as coaches
to continue coaching more
students, in collaboration with
the Penang State Education
Department, the Agriculture
Vocational School Enterprise
Training Programme, and the
private sector
Repaired dilapidated
houses and public facilities,
benefiting 760 households in
collaboration with Akademi
Binaan Malaysia (ABM)
Social inclusion initiatives
include ecotourism training
for Orang Asli in the BelumTemenggor tropical rainforest
area to create additional
streams of income

East Coast Economic

Region
In ensuring inclusivity of vulnerable
groups, the East Coast Economic
Region (ECER) developed a range
of entrepreneurship development
programmes to broaden the abilities of
target groups such as women, youth
and unemployed to participate in the
economy
Empower ECER Programme trained
4,050 participants in entrepreneurship
skills, with an 83% success rate,
while 7,045 participants are currently
undergoing training
ECER Entrepreneurship Development
Programme (EEDP), has trained
1,893 participants to increase
the involvement of Bumiputera
and SMEs in economic activities
through programmes conducted
in collaboration with Standards
and Industrial Research Institute of
Malaysia (SIRIM), Agrobank, and
GIATMARA
Suri@Home Programme creates
home-based business opportunities
for housewives and single mothers
to supplement household incomes.
38 women have participated thus far,
increasing their monthly incomes by
an additional RM400 - RM2,000
Sabah Development Corridor

Initiatives to increase opportunities
for local communities in the Sabah
Development Corridor (SDC) focused on
skills training programmes
800 local participants were trained
to become technopreneurs in the
agri-based industry through exposure
and knowledge transfer in the
processing of agri-food and specialty
natural products
20 graduates participated in the
Accelerated Skill Enhancement
Training Programme to reskill
or upskill them for hospitality
jobs, benefiting from increasing
investments in the tourism sector
University College Sabah
Foundation (UCSF) together with
Sabah Economic Development and
Investment Authority (SEDIA) has
conducted programmes in creative
content skill development under
Sabah Animation Creative Content
Centre (SAC3) with enrolment of 600
participants in certificate, diploma,
and degree level
3-10
Sarawak Corridor of Renewable

Energy
In the Sarawak Corridor of Renewable
Energy (SCORE), focus has been on the
provision of infrastructure and access to
economic opportunities
Unit Peneraju Agenda Bumiputera
(TERAJU) has allocated RM100
million for entrepreneur development,
including RM1.5 million for a fishmeal
and surimi processing enterprise
and RM16.1 million Facilitation Fund
allocated to 4 local companies
enabling them to provide support
services to Petroliam Nasional Berhad
(PETRONAS) and Bintulu Port
Yayasan Peneraju Pendidikan
Bumiputera (YPPB) delivered
education programmes, including
support for professional qualifications
such as the Association of Exhibitered
Certified Accountants (ACCA) and
Welding Apprentice Programme
Construction of access roads to
Murum and Baram Dam that provided
paved road access to more than 40
villages and 25,000 people
3-11
Enhancing Bumiputera economic participation

Strengthening Bumiputera entrepreneurship
The development of the Bumiputera Economic Community (BEC)
involved specific initiatives for Bumiputera companies based on their
business needs. Entrepreneurs were assisted in terms of financing,
support services, and capacity building. Over RM9 billion in financial
assistance was provided to more than 414,000 Bumiputera businesses:
Loans of RM8.6 billion benefited 413,278 micro and small
businesses:
- AIM: entrepreneurs earning more than RM3,500 increased from
27,770 in 2010 to 128,450 in 2014
- TEKUN Nasional: 32.7% of entrepreneurs recorded an increase
in revenue of 50-150% in 2013
Financial assistance totalling RM495.2 million to 760 Bumiputera
small and medium enterprises (SMEs) in the development and
growth stage, by Malaysia Technology Development Corporation
(MTDC), Malaysia Venture Capital Management Berhad, Malaysia
Debt Ventures Bhd, and Multimedia Development Corporation
(MDeC).
Broadening and increasing Bumiputera wealth

ownership
Bumiputera corporate equity ownership increased during the
Tenth Plan period. This achievement was contributed by initiatives
from various government-linked investment companies (GLICs).
These included the launching of 10 billion units of Amanah Saham
Bumiputera 2 (ASB2) by Permodalan Nasional Berhad (PNB) and
RM3 billion economic capital deployment through Ekuiti Nasional
Berhad (EKUINAS). In addition, the collaborative partnership between
EKUINAS and TERAJU in Skim Jejak Jaya Bumiputera (SJJB) enabled
10 companies to be listed on Bursa Malaysia with market capitalisation
of RM4.1 billion.
In the area of non-financial assets, Pelaburan Hartanah Berhad (PHB)

played a major role to increase Bumiputera ownership of commercial
asset at prime locations in major cities. By 2014, PHB invested in 14
completed properties, one property development, land bank and other
investment worth RM6.7 billion. The Amanah Hartanah Bumiputera
(AHB) fund was launched to provide opportunities to Bumiputera
investors to participate in the ownership of prime commercial
properties. All two billion AHB units were fully subscribed. UDA
Holdings Berhad (UDA), cumulatively since 2001 also sold 77% out of
7,697 residential units and 83% out of 560 retail spaces to Bumiputera.
Preparing Bumiputera for high paying jobs

Technical and skills training was provided for Bumiputera to enable
them to secure high paying jobs. YPPB trained 2,623 participants in
fields such as oil and gas, finance, and accounting through Program
Peneraju Skil and Program Peneraju Profesional. Majlis Amanah Rakyat
(MARA) also provided places in universities and technical training
institutions to 101,010 students and financial assistance to 86,446
students for their education.
*
The strategies implemented in the Tenth Plan have resulted in a more

inclusive society through poverty reduction, increased household
income, reduction in income disparity, and improved quality of life in
rural households. Notwithstanding the progress achieved over the
last five years, there are several issues and challenges that remain
to be addressed in the Eleventh Plan. These include addressing the
socio-economic gap among B40 households and vulnerable groups,
inadequate basic infrastructure in rural and remote areas, imbalances in
regional economic opportunities, and socio-economic disparity among
segments of the Bumiputera community.

Chart 3-5
Exhibit 3-5
Target segments
for Eleventh Plan
Target segments
for
(Estimates
as of 2014)
Estimates
as of 2014
Eleventh Plan
B40
Children
31.1%
of population
aged 18 and
below
households
2.7 million
56% in urban and
44% in rural areas
Women
PWD
53.6%
labour force
participation
Youth
45.9%
of total
population
322,700
registered in
SMOKU
Bumiputera
68%
of citizens
Elderly
Family
4.3 persons
average
household
size
8.8%
of population
aged 60 and
above
M40
Rural
Communities
26.3%
of total population
households
2.7 million
3-12

Nurturing the potential of youth
Empowering communities
for a productive and
prosperous society
Enhancing the role of women in development

Upholding the needs and interests of children
Enhancing the living environment for elderly
Empowering persons with disabilities
Transforming
rural areas to
uplift wellbeing
of rural
communities
Uplifting B40
households towards
a middle class society
Extending provision of rural basic

infrastructure
Raising the income and wealth

of B40 households
Improving rural-urban linkages
Encouraging more private investment

in rural areas
Expanding access to basic services
Addressing the increasing

cost of living
Streamlining the delivery system
Enhancing
the delivery
system of B40
households
programmes
Accelerating regional
growth for better
geographic balance
Strategic review of regional economic
corridor master plans
Accelerating investment in regional
economic corridors
Enhancing Bumiputera Economic

Community (BEC) opportunities to
increase wealth ownership
Empowering Bumiputera human capital
Increasing Bumiputera effective control
and sustainable corporate ownership
Enlarging the share of Bumiputera wealth
ownership
Empowering Bumiputera Economic

Community (BEC)
Strengthening delivery effectiveness of
Bumiputera-oriented programmes
SELECTED OUTCOMES
0.385
reduction in Gini
coefficient from
0.401 in 2014
RM
5,270
RM
5,701
Improving
overall income
inequality
OUT OF
mean monthly
household
income from
RM2,537 in 2014
median monthly
household from
RM2,629 in 2014
Uplifting B40 households

towards a middle-class
society
Empowering communities
for a productive and
prosperous society
8
10
3,000
average
score in the
Family
Wellbeing
Index
236
billion
paved roads will be

constructed
90,000
additional houses
will be supplied
with clean and
treated water
36,800
additional houses
will be supplied
with electricity
Transforming rural areas

to uplift wellbeing of
rural communities
Accelerating regional
growth for better
geographic balance
RM
km
realised
investment
Enhancing Bumiputera
Economic Community (BEC)
opportunities to increase
wealth ownership
AT LEAST
60%
AT LEAST
59%
participation of
women in the
workforce from
53.6% in 2014
470,000
job opportunities
created
90%
AT LEAST
30%
participation of
Bumiputera in
skilled occupation
category
Bumiputera
households own
a residential unit
Bumiputera
corporate equity
ownership with
effective control
3-15
Moving forward
There will be increased

focus on enhancing
inclusiveness towards
providing more
equitable opportunities
for Malaysians to
participate in economic
growth. Assistance and
subsidies not linked
to productivity will be
reduced in favour of
programmes focused
on creating improved
wealth ownership and
increasing education
and skill levels.
During the Eleventh Plan, the philosophy of growth

with equity will continue, with increased focus on
enhancing inclusiveness. Efforts will be directed
towards providing more equitable opportunities for
Malaysians to participate in economic growth with
increased distribution of national wealth. Higher
household income will improve the quality of life
and wellbeing of the rakyat. The implementation
approach will be multidimensional, based on
the principles of being market-friendly, needsbased, merit-based, transparent, pro-growth, and
sustainable.
Addressing the needs of these varied segments
of Malaysians will require a range of mid-to-longer
term interventions, in addition to targeted support
to cushion the effect of impending macroeconomic
challenges. Every effort will be made to support
the needy and vulnerable segments of society.
Key shifts that will be made during this period
include prioritising conditional and outcomebased support, whether economic or social.
Assistance and subsidies not linked to productivity
will be reduced in favour of programmes focused
on creating improved wealth ownership and
increasing education and skill levels. These are
crucial factors that will enable B40 households to
increase their overall quality of life and advance
towards the middle-class society. Adoption of
modern technology to increase productivity levels
will be encouraged, especially in agriculture.
Income inequality is expected to improve further

with the Gini coefficient reducing from 0.401 in
2014 to 0.385 in 2020. Overall household incomes
are expected to increase, reducing the urban-rural
income gap. This will be achieved by prioritising
five focus areas:
Focus area A: Uplifting B40 households
towards a middle-class society
Focus area B: Empowering communities for a
productive and prosperous society
Focus area C: Transforming rural areas to
uplift wellbeing of rural communities
Focus area D: Accelerating regional growth for
better geographic balance
Focus area E: Enhancing Bumiputera
Economic Community (BEC) opportunities to
increase wealth ownership

3-16
Focus area A
During the Eleventh Plan, focus will be given to lifting the economic
opportunities and participation of B40 households to ensure that
Malaysias prosperity can be shared by all Malaysians, regardless
of the ethnicity, socio-economic status, and geographic location.
Uplifting the quality of life of B40 households will be a game changer
for Malaysia as upskilling and providing job opportunities to the 2.7
million B40 households, will increase the nations skilled workforce
and reduce inequality passed on to future generations. By uplifting
B40 households, Malaysia will take a large step towards becoming an
advanced and more inclusive nation.
Strategy A1: Raising the income and wealth of B40 households
by enlarging the middle-class society; reducing school dropouts;
enhancing accessibility to higher education and skills training;
increasing productivity through adoption of modern technology;
enhancing adoption of information and communications
technology; enhancing integrated entrepreneurship support;
developing community- and social-based enterprises; incentivising
investment in majority B40 households areas; and increasing
wealth ownership through investment programmes;
Strategy A2: Addressing the increasing cost of living by
strengthening the monitoring and enforcement of price control
regulations; increasing the provision of affordable housing;
increasing access to healthcare services; introducing an integrated
and comprehensive social safety net; and enhancing financial and
debt management programmes; and
Strategy A3: Enhancing the delivery system of B40 households
programmes by streamlining support to B40 households and
complementing the Poverty Line Income (PLI) measurement with
the Multidimensional Poverty Index (MPI).
Strategy A1
Raising the income and wealth of B40

households
Enlarging the middle-class society
In order to create a larger middle-class society, measures will be
taken to spur the income growth of the aspirational group within the
B40 households. These include narrowing the gap in post-secondary
educational achievement. As the majority of the B40 households and
aspirational group in urban areas are employed persons, employers
will be incentivised to encourage their employees to pursue higher
education and skill levels. Meanwhile, incentives such as soft loan
facilities will be provided to employees to further their studies to enable
them to secure better paying jobs for more comfortable living. In
addition, more programmes in advanced skills training will be provided
to enable them to enhance their opportunity to compete for higher
paying jobs in technical areas.
SMEs owned by B40 households, and especially the aspirational group
will be provided with better opportunities to improve their capacity
through financing options and business facilitation. Partnerships with
large firms will be initiated to provide more business opportunities for
SMEs. Entrepreneur development organisations (EDOs) such as SME
Corporation Malaysia (SME Corp), SME Bank, and MTDC will continue
to provide entrepreneurial training relevant to market needs.
3-17
Game Changer
Uplifting B40 households towards middle-class society

Why is uplifting the B40 households important
for Malaysia?
Today, there are 2.7 million B40 households with mean
monthly household income of RM2,537. As Malaysia
continues to grow, the B40 households should not miss out
on the opportunities that come with national prosperity.
Allowing the B40 households to remain in their current
socio-economic status will create social costs for all
Malaysians, as it reduces the number of skilled workers
needed to grow national output, perpetuates urban
inequality, and limits the growth potential of rural and
suburban areas. Job opportunities, access to healthcare
services and education, and a reliable social safety net
will ensure that B40 households have the opportunity for a
better life.

The Government will implement strategies to raise the income and wealth
ownership of the B40 households, address the increasing cost of living, and
strengthen delivery mechanisms for supporting B40 households. The Government
will also introduce the Multidimensional Poverty Index (MPI) to ensure that
vulnerability and quality of life is measured in addition to income. The major shifts
that will occur are set on the right:
The strategy canvas highlights areas that should be eliminated, reduced, raised or
created for this game changer.
Strategy canvas: Bottom 40
High
Eleventh
Plan

All B40 households regardless of ethnicity will be given
greater focus, especially the urban and rural poor, lowincome households, as well as the vulnerable1 and
aspirational2 households. The size and composition of
middle-class society will grow to 45% by 2020. The mean
income of the B40 households will double to RM5,270 in
2020 from RM2,537 in 2014. More B40 households will have
family members with tertiary education, from 9% in 2014
to 20% in 2020. The income share of the B40 to national
household income will also increase from 16.5% in 2014 to
20% in 2020.
1
2
As-Is
Low
Reduce
Raise
Wealth
ownership
through
investment
programmes
School
dropouts
Vulnerable households refer to households with income between PLI and 2.5 times PLI
Aspirational households refer to households with income between 2.5 times PLI and national mean income
Accessibility
to higher
education
and skills
training
Financial and
debt
management
programmes
Monitoring
and
enforcement
of
price control
regulations
Incentivise
investment
in majority
B40
households
areas
Productivity
through
adoption of
modern
technology
Integrated
entrepreneurshi
p support
Provision of
affordable
housing
Middle class
society
Adoption of
information
and
communications
technology
Access to
healthcare
services
Create
Systematic
approach to
develop
communityand socialbased
enterprises
Streamline
support to
B40
households
Multidimension
al
Poverty
Index
(MPI)
Integrated and
comprehensive
social safety
net

3-18
Approach
Reducing school dropouts
From
To
Lifting B40
households above
the poverty line
through improved
income levels and
assistance with
living costs
Uplifting B40
households to
middle-class society
by further improving
income levels and
wealth creation, as
well as increasing
education and skill
levels
Characteristics
Scope
Assisting B40
households with
individual microenterprises
Focus on
developing microentrepreneurship
and economic
activities in lowvalue, traditional
industries
B40 households
have low wealth and
non-financial asset
ownership, and are
easily affected by
economic shocks
B40 households
are highly reliant
on government
assistance
Fostering communityand social-based

enterprises among the
B40 households, in
addition to individual
enterprises
Building capacity
to participate in
high-productivity,
innovative and creative
economic activities
B40 households
are able to save and
build wealth including
through non-financial
asset ownership,
making them more
resilient to economic
shocks
B40 households are
independent and rely
less on government
assistance
programmes
Appropriate facilities such as hostel, transport, and financial aid will

continue to be provided to students in rural and remote areas to enable
them to complete primary and secondary education. The K9 School2 will
be expanded to increase student enrolment, particularly among the Orang
Asli in Peninsular Malaysia, and those living in the rural and remote areas
in Sabah and Sarawak. Special attention will also be given to address
the needs of children from identified segments of disadvantaged groups,
including children from Malay households in traditional villages, Indians
from dislocated estates and urban areas, as well as Chinese from new
villages. Special awareness programmes on the importance of education
will be conducted for schoolchildren and their parents to inspire a mindset
change.
Enhancing accessibility to higher education and skills

training
Accessibility to higher education and skills training among students from
B40 households will be enhanced through special programmes. Institutions
of higher learning and skills training institutes will be encouraged to provide
more places for these students through preferential entry qualification
criteria and enrolment quota. This will be complemented with the provision
of financial aid. Special consideration will be given to potential students
from Orang Asli communities in Peninsular Malaysia, and those living in rural
and remote areas in Sabah and Sarawak.
Increasing productivity through adoption of modern

technology
B40 households in rural areas who are self-employed such as farmers,
fishermen, and smallholders will be encouraged to adopt modern
technology to increase productivity and income. Structured modular
programmes focusing on modern farming techniques and good agricultural
practices will be intensified. Amalgamation of land and merging of small
scale business activities will also be encouraged to benefit from economies
of scale. The role of relevant agencies such as Federal Agriculture Marketing
Authority (FAMA), Malaysian Agricultural Research and Development
Institute (MARDI), and Fisheries Development Authority of Malaysia (LKIM)
will be streamlined to provide relevant services and facilitation to these
households.
K9 school is a primary school with secondary level from Form 1 to 3 (Source: Ministry of Education)
3-19
Large-scale plantation programmes such as Agropolitan, Ladang

Masyarakat, Mini Estet Sejahtera (MESEJ), and Rancangan
Penempatan Semula (RPS) will be expanded. Small-scale land holders
will be encouraged to merge their plots to gain economies of scale and
guarantee better income in the long-term through cooperatives. The
process of granting communal and individual land ownership to Orang
Asli in Peninsular Malaysia and those living in the rural and remote areas
in Sabah and Sarawak will be expedited to enable land utilisation by
these households. The Dasar Pelupusan dan Pemilikan Tanah Orang
Asli (DPPTOA) and administrative procedures in granting NCR land
ownership for those living in the rural and remote areas in Sabah and
Sarawak will be reviewed.
training will be provided before matching participants of the eRezeki

programme with relevant jobs such as data entry, price monitoring, and
document translation. These micro-tasks can be accomplished from
homes or telecentres.
In urban areas, abandoned buildings and unused spaces will be utilised

for urban farming through the use of modern techniques such as
fertigation, hydroponics, and vertical farming. Cooperative movements
will spearhead this initiative in locations where the B40 households
form the majority of the population. Urban farming activities will provide
food for local community consumption and create job opportunities
in production, processing, packaging, and marketing activities to
generate additional income.
SME Corp will coordinate the development of the SMEs owned by B40
households. Collaboration among agencies providing entrepreneurship
support programmes to micro-, small- and medium-scale
entrepreneurs in urban and rural areas such as SME Corp, TEKUN
Nasional and AIM will be strengthened to provide integrated assistance
and reduce overlapping activities. Broader business development
opportunities will also be provided by these agencies. Microenterprises will also be linked to banking and financial institutions for
easier access to funding.
Small-scale B40 entrepreneurs involved in industries such as printing,

food manufacturing, as well as vehicle repair and maintenance will be
encouraged to use modern technology to increase productivity and
lower cost of production, thus increasing income. Relevant agencies
such as SME Corp, Malaysia Productivity Corporation (MPC), Halal
Development Corporation (HDC), and Standards and Industrial
Research Institute of Malaysia Berhad (SIRIM) will facilitate these
entrepreneurs to adopt modern technology.
Enhancing adoption of information and

communications technology
Business support through digital platforms for micro-enterprises will

be expanded to enhance outreach and market access. To further
expand the e-payment platform for micro-enterprises, affordable
terminals and readers that are integrated with e-commerce solutions,
will be provided. In addition, online business-matching services to local
entrepreneurs will be introduced in telecentres.
Enhancing integrated entrepreneurship support
Initiatives will include establishing smart partnerships with research

and development (R&D) institutions to assist the SMEs to improve
product quality, enhance compliance to standards and increase
market access. In this regard, SME Corp will introduce integrated
entrepreneurship development packages which cover start-up till
market product placement activities. In addition, Urban Transformation
Centre (UTC) and Rural Transformation Centre (RTC) facilities will be
utilised to facilitate entrepreneur training programmes.
To encourage rural entrepreneurship, an appropriate socio-economic

environment will be established to facilitate local activities. The
The adoption of ICT will be accelerated to increase access to
information on agriculture, business, education and health, and expand entrepreneurial orientation programme focused on stimulating local
business and income earning opportunities to improve wellbeing. In this entrepreneurial talent and growth of indigenous companies will be
introduced. This is critical to create jobs and add economic value to
regard, the eRezeki programme for B40 households will be expanded
rural areas while retaining scarce resources within the community. It
to enable the use of ICT to generate additional income. Basic ICT
is important to sustain this effort so that the entrepreneurship culture

is embedded within rural communities. Initiatives to enhance access

to financing and entrepreneurship training, as well as the provision of
advisory services, and business premises will be increased. These
initiatives will enable the mobilisation of rural youths to be employed
and participate in entrepreneurship activities to minimise migration to
urban areas.
Developing community- and social-based enterprises

A systematic approach will be introduced to develop community- and
social-based enterprises on the cooperative model to carry out activities
such as childcare services or crches, tuition centres, and orphanages
for B40 households in urban areas. Appropriate infrastructure and
facilities will be provided, as well as leadership and management training
to build the capacity and capability of these enterprises.
In rural areas, B40 households especially the Orang Asli in Peninsular
Malaysia and those living in the rural and remote areas in Sabah
and Sarawak, will be encouraged to establish cooperative-based
community enterprises including through provision of initial funding
by Suruhanjaya Koperasi Malaysia (SKM). These enterprises will focus
on activities that leverage their strengths and distinct culture such as
handicraft, forest-based products, ecotourism, and homestay. Youth
in the rural area will be encouraged to participate in enterprises and
dedicated programmes designed to induce the involvement of local
community. Government-linked companies (GLCs) and governmentlinked investment companies (GLICs) will collaborate with the relevant
local, regional, and corridor authorities to develop capabilities and
provide business opportunities for these community enterprises.
Incentivising investment in majority B40 households

areas
The private sector, especially multinational corporations (MNCs) and
large local companies, will be incentivised to locate their business
operations in urban and rural areas with majority B40 households to
provide better job opportunities for their local communities, especially
high paying jobs. Investment in rural areas will leverage on local natural
resources. Existing incentives such as double deduction and tax relief
will be provided to encourage the MNCs and large local companies to
employ and train the local workforce. Basic infrastructure and facilities
will also be provided to support these businesses and reduce the
cost of doing business. In the rural areas, integrated facilities such
3-20
as banking, postal, and marketing services will be provided in rural

development centres, especially in Orang Asli settlements in Peninsular
Malaysia and majority B40 households population in Sabah and
Sarawak.
Increasing wealth ownership through investment

programmes
Unit trust schemes such as the Amanah Saham Wawasan (ASW),
Amanah Saham 1Malaysia (AS1M), and Amanah Saham Gemilang
will be further expanded to increase equity ownership among the B40
households. Awareness programmes on the benefits of such schemes
will be intensified to increase the participation of B40 households in
these schemes.
Cooperatives will be encouraged to participate in real estate investment
trusts (REITs) to increase asset ownership among B40 households. The
cooperatives will also undertake commercial property development
in strategic locations and build affordable residential units for B40
households in urban areas.
Strategy A2
Addressing the increasing cost of living

Strengthening the monitoring and enforcement of price
control regulations
Efforts will continuously be taken to strengthen the monitoring and
enforcement of price control regulations to curtail unreasonable price
increases, especially for basic necessities. Consumers will play a
greater role by reporting unethical pricing practices and stockpiling
by retailers through the Skuad Pengguna, consumer associations and
the eAduan system. Price monitoring will ensure stable and adequate
supply of goods and services and curb excessive market speculation,
thus improving market efficiency and purchasing power. The 1Harga
1Malaysia programme will be continued to standardise the prices of
subsidised goods between Sabah, Sarawak, and Peninsular Malaysia.
The coverage of Kedai Rakyat 1Malaysia (KR1M) and Coop1Malaysia
stores will also be expanded throughout the nation to ensure
widespread access to reasonably priced goods thus reducing the
burden of increasing cost of living.
3-21
Increasing the provision of affordable housing

The Government will continue to ensure that affordable homes are
available to B40 households. Special interest rate loans, with a 10-year
moratorium on sale of the property, will be provided to B40 households
to enable them to own houses. Affordable housing schemes by
Perbadanan PR1MA Malaysia and Syarikat Perumahan Negara
Berhad will be continued. Housing rental assistance will also be made
available to eligible households. In addition, state governments will be
encouraged to set an adequate quota for affordable housing.
Policies regarding housing for the B40 households will also emphasise
quality and maintenance. Existing low-cost flats and houses will
be refurbished as part of a holistic campaign to improve the living
conditions of the community. For poor households in rural areas,
especially Orang Asli in Peninsular Malaysia and those living in Sabah
and Sarawak, the Government will continue to provide housing with
basic amenities through the construction of integrated settlements
under Program Bantuan Rumah (PBR). The Program Perumahan
Rakyat (PPR) will be continued for poor households in urban areas.
Increasing access to healthcare services

The Government will encourage the participation of private healthcare
service providers and non-governmental organisations (NGOs) in the
provision of specific healthcare facilities such as dialysis, rehabilitation
and medical testing lab centres in urban areas. Such facilities will
complement existing healthcare services provided by the Government.
In rural areas, more community clinics will be built to increase access
to basic healthcare services. Frequency of visits by medical specialists
in non-specialist district hospitals, mobile clinics, and flying doctors
will also be increased while local health volunteer programmes will
be strengthened. Other health programmes such as food baskets,
community feeding, and immunisation programmes will be continued.
In addition, awareness and education programmes on family health
such as nutrition, family planning, and healthy living will be intensified.
Introducing an integrated and comprehensive social

safety net
Existing SSN programmes will be transformed to be more integrated
and comprehensive with a clear exit policy. This will include the
implementation of a systematic monitoring and evaluation mechanism
which provides for greater accountability. A single standardised
targeting mechanism will be developed to identify eligible beneficiaries
based on the enhanced eKasih database. This will minimise inclusion
and exclusion errors allowing the target group to fully benefit from
assistance provided.
Unconditional social welfare programmes will be reviewed to include
clear productivity linked targets and exit policy. This will ensure
assistance is given to the right target groups, reduce dependency on
the Government and optimise utilisation of resources.
Enhancing financial and debt management

programmes
The level of financial literacy and financial management capability
will be enhanced throughout the life stages to foster prudent financial
management from an early age as well as to prevent high indebtedness
among B40 households. In this respect, financial education and debt
advisory services will be intensified to assist households to improve
their financial management, and responsible practices, including
proper use of consumer credit and debt restructuring.
Financing behaviour and practices among borrowers and lenders
will be further strengthened. In this regard, integrated and enhanced
legislation will be put in place to manage consumer credit activities
for both banks and non-bank lenders. In addition, the collection,
management and sharing of data relating to household indebtedness
across national authorities and Government agencies will be enhanced
to promote effective analysis and development.

3-22
Strategy A3
Box 3-1
M40 households
Middle 40% households income group (M40
households) refers to households that are
between 41% to 80% of household income
distribution. In 2014, the M40 households income
ranged between RM3,855 and RM8,135, where
the mean and median income was RM5,662 and
RM5,465 respectively. Currently there are 2.67
million M40 households, of which 83% reside
in urban areas while 17% are in rural areas.
85.9% of the M40 households live in Peninsular
Malaysia.
Initiatives to raise income levels of the aspirational
segment of B40 households are aimed at shifting
them to the middle-class society. In addition,
the M40 households also face challenges in
increasing their earning capacity to cope with
the higher cost of living, and home ownership,
including being able to live within a reasonable
proximity to their place of work. Initiatives that
will be undertaken to support M40 households
include enhancing their education attainment,
upgrading skills acquisition, and strengthening
the business ecosystem to provide the
support and environment for M40 household
entrepreneurs to thrive.
Enhancing the delivery system of B40

household programmes
Streamlining support to B40 households
A mechanism will be established to streamline, rationalise, and coordinate
various efforts by agencies to elevate B40 households towards a middle-class
society. To ensure programmes and projects are in line with national policies and
strategies, a bottom-up approach will be adopted to encourage participation
and commitment of all stakeholders, from problem identification to monitoring
and evaluation of programmes. Focus group committees at district levels will be
empowered to ensure development programmes meet their needs.
Complementing the Poverty Line Income (PLI) measurement

with the Multidimensional Poverty Index (MPI)
The MPI, a relative poverty measurement approach practised in developed
nations, will be adopted to complement the absolute income-based
measurement of the PLI. The MPI measures access to basic infrastructure and
services that facilitate social mobility and enables intensity-based analysis, thus
providing clear identification of the needs of the lower income households.
3-23
Box 3-2
Multidimensional Poverty Index

In Malaysia, poverty has traditionally been measured
on one dimension, namely income, using the PLI.
Households that do not meet a specific income
requirement are considered poor. In 2010, the United
Nations Development Programme (UNDP) introduced
the MPI in its Human Development Report.
In line with this practice, Malaysia has also
developed a national measurement of MPI that is
appropriate to the socio-economic wellbeing and
development framework of the nation. The use of
the MPI will ensure that policy deliberations will shift
beyond poverty, to include vulnerability as well. The
MPI will complement the PLI to measure and monitor
poverty from multidimensional perspectives.
The MPI reflects both the incidence of
multidimensional deprivation (the number of people
who suffer deprivations in multiple aspects of life
at the same time within a given population), and its
intensity (how many deprivations they experience
at the same time). The model comprises of four
dimensions with 11 indicators. Households deprived
in at least one third of the weighted indicators are
considered vulnerable to or at risk of becoming
multidimensionally poor.
Dimensions, indicators, cut-offs and weights for MPI

Dimension
Indicator
Living
Standards
Income
Weight
Years of
schooling
All household members aged

17-60 have less than eleven
years of education
1/
8
School
attendance
Any school-aged children

(aged 6-16) not schooling
1/
8
Access to
health facility
Distance to health facility is more

than 5 kilometres away and no mobile
health facility is provided
1/
8
Access to
clean water
supply
Other than treated pipe water inside

house and public water pipe/stand
pipe
1/
8
Conditions of
living quarters
Dilapidated or deteriorating
1/
24
Number of
bedrooms
More than 2 members/room
1/
24
Toilet facility
Other than flush toilet
1/
24
Garbage
collection
facility
No facility
1/
24
Transportation
All members in the household do

not use private or public transport to
commute
1/
24
Access to basic
communication
tools
Does not have consistent fixed line

phone or mobile phone
1/
24
Mean monthly
household
income
Mean monthly household income

less than PLI
1/
4
Education
Health
Deprivation cut-off

3-24
Focus area B
Empowering communities for a productive and

prosperous society
During the Eleventh Plan, efforts will focus on empowering the community
to enhance inclusiveness by addressing the needs of the community,
including family, youth, women, children, the elderly and PWD. Six
strategies will be implemented to achieve these priority targets:
Strategy B1: Strengthening the family institution by enhancing
parenting skills and family values, as well as improving counselling
services and the family support system;
Strategy B2: Nurturing the potential of youth by building
dynamic leadership and multiple capabilities, developing youth
entrepreneurs and inculcating the spirit of volunteerism among
youth;
Strategy B3: Enhancing the role of women in development by
creating a more conducive working environment and increasing the
number of women in decision-making positions;
Strategy B4: Upholding the needs and interests of children by
improving protection against abuse, abandonment and neglect,
as well as increasing educational outcomes for underprivileged
children;
Strategy B5: Enhancing the living environment for the elderly
by improving the supportive environment for the elderly and
promoting active ageing; and
Strategy B6: Empowering persons with disabilities by creating
a friendly physical environment for PWD as well as expanding
training and skills development to increase employability.
Strategy B1

The family institution remains a critical part of Malaysias social
fabric. In recent years, families across the nation are under increasing
pressure with the rise of urbanisation, long working hours, cost of living
and the impact of social media on communication and relationships.
Strengthening families as the core of communities is a priority for this
Eleventh Plan, with initiatives aimed at helping families to cope in a
rapidly changing environment. Under this strategy, the Family Wellbeing
Index score is expected to improve to 8 out of 10 by 2020.
Enhancing parenting skills and family values

Pre-marriage and marriage enrichment programmes will be promoted
across all communities, to inculcate family values, parenting skills
and effective communication to strengthen the marriage institution
and family resilience. NGOs, community-based organisations (CBOs)
and private organisations will be encouraged to conduct these
programmes. In addition, prudent financial management and healthy
lifestyle will be promoted among young married couples. Social and
mass media will be utilised to promote family education and knowledge
enrichment programmes.
3-25
Improving counselling services and family support system in sports-related industries. Various agencies such as Akademi
Counselling services to family members in need, particularly those
experiencing shock, emotional stress and financial difficulties will be
strengthened by engaging experts and relevant NGOs. The existing
family support system and facilities will also be improved through
collaboration between the Government, community, NGOs and the
private sector. Integrated community centres will be established to
house taska, respite care for the elderly, and transit centre for children
and students, as well as other facilities such as rehabilitation centres,
kafe@TEEN and Klinik Nur Sejahtera.
Pembangunan Belia Malaysia, Institut Kemahiran Negara (INSKEN),

MARA, Women Innovation Academy (MyWIN) and TEKUN Nasional
will support these initiatives. Towards this end, the related agencies
will formulate a strategic plan to develop dynamic and effective
entrepreneurs among youth in a more integrated manner.
Inculcating the spirit of volunteerism among youth

Youth from universities will be encouraged to participate in Back to
Community voluntary programmes implemented in partnership with
NGOs, universities, and companies. Programmes by 1M4U and RELA
Youth Squad will be expanded to enable more youth from universities to
participate and contribute more effectively.
Strategy B2
Nurturing the potential of youth

Strategy B3
By 2020, youth aged 15-40 will make up 44.7% of our total population.
Youth play an important role in nation building. They are not only the
leaders of tomorrow, but also the partners of today. They are actors of
change who will define the future identify of Malaysia for the nation to
move forward. Therefore, it is crucial to provide them with an enabling
Women make up 48.7% of our total population, and today, form 61%
environment and opportunities to play their role in national development. of total graduate enrolment in Malaysia. They are an important part of
addressing the talent gap in Malaysia, to achieve our socio-economic
Promoting dynamic leadership and developing multiple development objectives. A number of measures will be taken to harness
women talent at all levels, and create more opportunities for women to
capabilities among youth
participate in the economy, and increase the female labour participation
Youth development programmes will foster dynamic leadership and
rate to 59%, by 2020.
develop multiple capabilities among youth through education and
Enhancing the role of women in

development
training, entrepreneurship, sports and volunteerism. Positive values

including spiritual, patriotism, responsibility, care, resilience and
positive mindsets will be inculcated to mould the potential young
generation to become credible future leaders. More structured
programmes will also be implemented to enhance social integration
and promote unity among youth.
Developing dynamic and effective entrepreneurs

among youth
Integrated entrepreneurship development programmes including
financial and investment literacy will be made more accessible to youth
to create a larger pool of successful young entrepreneurs including
Creating a more conducive working environment

Providing a more conducive working environment will help to promote
gender diversity and increase female participation in the labour force
with measures such as promoting work-life balance, flexible working
arrangements and work from home concept in both the public and
private sectors. In addition, accessibility to quality early childcare and
childhood education (ECCE) for childcare services will be expanded.

3-26
Increasing the number of women in decision-making

positions
Increasing access to quality childcare and improving

educational outcomes for disadvantaged children
Efforts will be intensified to increase the number of women in decisionmaking positions. In line with this, women will be given greater
opportunities to acquire the necessary knowledge and experience
including in areas of entrepreneurship. Back to work programmes
to encourage qualified women who have been out of the workforce
due to family or other commitments, will also be expanded through
collaboration with the private sectors. Initiatives led by TalentCorp will
be continued to increase the number of talented women returning to the
workforce. In addition, the collection of gender disaggregated data by
various ministries and agencies will be improved to support planning,
monitoring and evaluation of programmes.
Efforts will be undertaken to improve access to quality education for

children to realise their potential. Communities will be encouraged
to set up childcare centres to provide facilities for learning and
recreational activities to prevent children from getting involved in
undesirable social activities. Child minders in ECCE will be trained
in collaboration with NGOs and relevant universities to enhance the
quality of service and outcomes for the children under their care.
More childcare centres for children with special needs, such as
Downs Syndrome and learning, hearing or physical disabilities, will be
established in partnership with NGOs and the private sector. Children
aged 13 to 18 in welfare institutions will be provided with opportunities
to pursue technical and vocational education and training.
Strategy B4
Upholding the needs and interests of

children
Malaysia remains a young nation, with children aged below 18 expected
to make up 29.9% of our total population by 2020. Efforts to protect
the needs and interests of children will be enhanced to address issues
of abuse and neglect. In addition, a range of initiatives to increase
education opportunities especially for disadvantaged and disabled
children, will be implemented.
Improving protection against abuse, abandonment and

neglect
The number of Childcare and Child Protection Units will be increased
to improve the protection of children against abuse, abandonment
and neglect. Advocacy efforts will be intensified through social media.
The Child Act, 2001, will also be reviewed to safeguard the needs and
protection of children. Preventive and rehabilitative programmes for
children in need will be strengthened by increasing the participation of
family and community.
Strategy B5
Enhancing the living environment for

the elderly
The proportion of the population aged above 60 years is increasing,
from 7.9% in 2010 to 8.8% in 2014. This figure is expected to grow to
10.6% by 2020. Better quality of life and advances in healthcare has
resulted in longer lifespans in 2013, 72.6 years for men and 77.2 years
for women in Malaysia. Many of our senior citizens are thus in a position
to continue contributing to society even in their golden years. During
the Plan, concerted efforts will be undertaken to enhance the quality of
life of the elderly.
Improving supportive environment for the elderly

Initiatives to improve the support environment for the elderly include
providing elderly-friendly infrastructure and improving care services.
More day care centres for the elderly will be established in collaboration
with NGOs to enable them to live with family members who are
working. In addition, elderly care centres and Home Help services
will also be expanded. Awareness programmes on elderly care will be
strengthened to shift the elderly community to action in adopting active
and healthy lifestyles.
3-27
Social protection for the elderly poor will be streamlined and integrated to
Strategy B6
ensure better quality of life. The provision of assistance will be continued
based on basic needs. The low-income group, particularly in the informal
sector, will be encouraged to participate in voluntary savings and
Despite continuous improvement in providing services and support
retirement schemes to ensure economic protection in their old age.
to empower PWD, there is still room to create a more conducive
environment for the PWD. The focus of the Eleventh Plan will continue
Promoting active ageing
to provide a more conducive and PWD-friendly environment for active,
The capacity of the Institute of Gerontology, Universiti Putra Malaysia
productive and independent living.
will be enhanced to conduct more research to support active ageing.
The University of the Third Age (U3A) Programme will be expanded to
Creating a friendly physical environment for PWD
provide opportunities for the elderly to continuously learn and acquire
Barrier-free access to public places is an important element of
knowledge and skills in collaboration with universities, community
independent living. To this end, the enforcement of the Uniform
colleges and Pusat Aktiviti Warga Emas. In addition, NGOs will also be
Building By-Laws for Universal Access 1984 will be strengthened to
encouraged to implement self-help based learning programmes.
ensure compliance to universal design and creating a disabled-friendly
Empowering persons with disabilities
A national campaign to promote social awareness on volunteerism

among retired professionals will be launched to encourage the elderly
to participate in community-based activities. This will allow them to
remain active by contributing their knowledge, skills and experience
to benefit the community. CBOs and NGOs will be encouraged to
attract more retired professionals to participate in voluntary community
development programmes.
physical environment. Existing Government buildings will also be

upgraded in compliance with the By-Laws.
To further encourage independent living of PWD, community-based
Independent Living Centres will be established with the participation of
NGOs. These centres will be managed by the PWD.
Expanding training and skills development to increase

employability
During the Plan, more programmes will be implemented to empower
productive PWD. More accessibility to basic education and skills
training will be provided, including entrepreneurship, to build relevant
skills among PWD such that they are employable by the private sector
and the government, in line with the target to employ at least 1% PWD
among civil servants. SMOKU will be improved to support planning,
monitoring and evaluation of existing programmes. In addition, the
Pusat Latihan Perindustrian dan Pemulihan will be upgraded as the
centre of excellence (CoE) for disability training and research.

3-28
Focus area C
Transforming rural areas to uplift wellbeing of rural

communities
26.3% of Malaysians or 7.92 million people live in rural areas across
the nation, with varying levels of accessibility to peri-urban areas,
infrastructure, social amenities and economic opportunities. Uplifting
the wellbeing of rural communities continues to be a priority in the
Eleventh Plan, in line with the objective of ensuring balanced growth
across geographies. Five strategies will be delivered to achieve these
outcomes during the Eleventh Plan:
Strategy C1: Extending provision of rural basic infrastructure
by streamlining rural infrastructure planning and increasing the
provision of road, water and electricity supply;
Strategy C2: Encouraging more private investment in rural
areas by providing a more conducive business environment;
Strategy C3: Improving rural-urban linkages by improving
connectivity and mobility as well as using ICT to strengthen the role
of UTCs, RTCs and mini-RTCs;
Strategy C4: Expanding access to basic services by expanding
the mobile community transformation centre programme, and
extending banking services to rural areas; and
Strategy C5: Streamlining the delivery system by reviewing the
role of Regional Development Authorities (RDAs ) and establishing
Sistem Profil Kampung Peringkat Nasional.
Strategy C1
Extending provision of rural basic

infrastructure
Streamlining rural basic infrastructure planning
An integrated rural basic infrastructure database will be developed
to facilitate stock-taking and planning of rural basic infrastructure as
well as to ensure effective delivery of priority infrastructure to meet the
communities needs.
Increasing the provision of road, water and electricity

supply
New roads will be constructed and existing roads including ex-logging
roads will be upgraded to improve connectivity, particularly in Sabah
and Sarawak as well as Orang Asli settlements in Peninsular Malaysia.
Priority will be given to the construction of roads connecting villages as
well as linking villages with the nearest towns. During the Eleventh Plan,
3,000 kilometres of paved roads will be constructed.
The Rural Water Supply programme, to supply clean and treated
water directly to each household, will be expanded and this will involve
connecting households to the meter stands of the reticulation systems.
In addition, alternative systems such as gravity feed, tube wells and
rain water harvesting will be used in remote and isolated areas. 99%
coverage of access of clean and treated water will be provided to rural
houses reaching 90,000 additional houses.
The Rural Electricity Supply programme will continue to focus on offgrid generation for remote and isolated areas. The alternative system
of solar hybrid and mini hydro will be supported by micro- and picogrid to increase coverage. The local community will be trained and
encouraged to collaborate in the maintenance of these facilities to
3-29
ensure sustainability of the rural alternative electrification system.

99% coverage of access of electricity will be provided to rural houses
reaching 36,800 additional houses.
to rural communities, especially in remote areas, will be expanded

with the participation of more government and private agencies.
Programmes will be customised in each location to meet the specific
requirements of local residents.
Strategy C2
Extending banking services to rural areas
Encouraging more private investment

in rural areas
Implementation of the rural banking services programme will be

expanded to increase accessibility to financial services for the rural
community. 4,348 BSN service agents will be appointed to increase
coverage of financial services in rural areas. Banks will be encouraged
to provide automated teller machines and cash deposit machines at
strategic places in rural areas.
Efforts will be implemented in collaboration with regional economic

corridor authorities to provide a more conducive business
environment to attract higher value added investment to rural
areas. Collaboration among relevant ministries and agencies will
be strengthened to provide appropriate infrastructure, logistics and
support services to facilitate private sector investment. The role of
RTCs as a one-stop business facilitation centre will be enhanced to
increase the ease of doing business, including providing information
on potential areas for investment.
Strategy C3
Improving rural-urban linkages

The linkage between rural and urban areas will be strengthened
by improving connectivity and mobility to foster greater economic
integration. The transportation system will be integrated to provide
better connectivity and more cost-effective routes for buses will be
identified to increase mobility. This will enable rural enterprises to
market their goods and services to the urban centres and peripheries.
The role of UTCs, RTCs and mini-RTCs as conduits of rural-urban
linkages will be strengthened by leveraging ICT. Measures will also be
undertaken to encourage rural dwellers to use these centres to provide
supporting services, particularly for those in the ecotourism industry.
Strategy C4
Expanding access to basic services

Expanding the Mobile Community Transformation
Centre programme
The Mobile CTC programme which brings basic government services
Strategy C5
Streamlining the delivery system

Reviewing the role of regional development authorities
The role of RDAs will be reviewed to drive socio-economic development
of their respective areas. The RDAs will collaborate with the regional
economic corridor authorities to provide sufficient infrastructure and
social amenities as well as attract private investments to generate
economic activities and create jobs for the local community. RDAs
will also support relevant agencies in implementing socio-economic
development programmes and projects. The capacity of RDAs will be
strengthened to implement revenue generating projects to encourage
self-financing.
Establishing Sistem Profil Kampung Peringkat Nasional

A comprehensive and integrated database system, Sistem Profil
Kampung Peringkat Nasional (SPKPN) will be established to
provide comprehensive profile of villages which have Jawatankuasa
Kemajuan dan Keselamatan Kampung (JKKK). The database will
include information on demographics, socio-economic status and
infrastructure to be used as the national reference for effective planning
of rural development programmes and projects. It is expected that
profiles of 17,900 villages nationwide will be completed by 2020.

3-30
Focus area D
Accelerating regional growth for better geographic balance

Since the establishment of the first regional economic corridor in 2006,
many success stories have emerged, including economic opportunities
for locals. Regional economic corridors will continue to spur economic
growth to address inter- and intra-regional imbalances and increase
inclusivity. Efforts will be undertaken to accelerate investment, provide
infrastructure and review corridor development plans.
Two strategies have been identified:
Strategy D1: Strategic review of regional economic corridor
master plans by revisiting regional economic corridor priorities and
industry focus; and
Strategy D2: Accelerating investment in regional economic
corridors by enhancing facilitation for investors, improving
connectivity and mobility as well as intensifying research,
development and commercialisation.
Strategy D1
Strategic review of regional economic

corridor master plans
Revisiting regional economic corridor priorities and
industry-focus
Given the changing domestic and global economic landscape,
regional economic corridor authorities will need to ensure that the
direction, strategies and initiatives are in line with national socioeconomic development goals as well as responsive to international
challenges. Regional economic corridors will continue to develop
economic clusters based on sectoral and geographic advantages to
benefit from economies of scale and enhance the quality of life of local
communities. Efforts will be undertaken to accelerate investment,
improve infrastructure and review of regional economic corridor master
plans in order to realise investment of RM236 billion and create 470,000
jobs by 2020.
The regional economic corridors will continue to play an important
role in Malaysias growth and development. A number of long term,
high impact programmes and projects are currently underway, and
will continue to be implemented in the coming years. Priority sectors
include the creative cluster in Iskandar Malaysia; automotive and
aeronautics industries in NCER; petrochemical industries in the existing
industrial parks in ECER; tourism and palm oil downstream processing
in SDC; as well as energy-intensive industries including aluminium,
steel and glass in SCORE.
3-31
A number of initiatives to promote inclusiveness will also be

implemented across the regional economic corridors, mainly
focused on income-generating activities and skills training for local
communities. For example, the Iskandar Malaysia Creative Industry
Talent Development Programme will be enhanced to train more
locals, while entrepreneurship and skills development programmes
will broaden the ability of locals to participate in and benefit from
economic development in ECER. In NCER, programmes such as the
Agriculture Vocational School Enterprise Training Programme will be
expanded. High impact programmes in creative content development
will be developed for youth in SDC with a target of 850 enrolments.
Within SCORE, programmes will be developed to support tourism
development and increase agriculture productivity.
In addition, the Border Economic Transformation Programme (BETP)
will enhance outcomes from regional economic development by
bringing inclusive development and prosperity to the border regions
of Malaysia. The BETP will start with the Malaysia-Thailand border
which encompasses both ECER and NCER, with the aim of attracting
investment, creating jobs and increasing incomes for the local
communities in and around border areas. A range of large-scale
economic growth projects and local income-generating opportunities
will be developed including the development of Lembah Chuping and
Perlis Inland Port in Perlis, rubber-based downstream processing in
Rubber City in Kedah, the construction of Plaza IMT-GT, a retail plaza,
in Bukit Bunga as well as the redevelopment of Kampung Laut in
Tumpat, Kelantan.
Strategy D2
Accelerating investment in regional

economic corridors
Enhancing facilitation for investors
Investment acceleration is critical to spur development in the regional
economic corridors. On average, only 56.8% of committed investment
has been realised. While there are many factors that influence
investment realisation, more can be done to strengthen the investment
delivery mechanism, especially around investor facilitation, mobility
and commercialisation of research. Regional economic corridor
authorities will facilitate investors in obtaining approvals across multiple
agencies, solving land issues and related matters to ensure committed
investments are realised. Expansion of this investor facilitation model
will also ensure that authorities continue to facilitate investors once their
businesses are in operation, to address implementation challenges and
encourage reinvestment in the future.
Improving connectivity and mobility

Transportation networks will be improved to enhance connectivity and
mobility in regional economic corridors. This includes the construction
and upgrading of roads and highways such as the Pan Borneo Highway
to link SCORE and SDC; Central Spine Road and Kota Bharu-Kuala
Krai Highway to increase connectivity in ECER. The completion of
Mukah Airport is expected to accelerate development in Mukah and
the surrounding areas within SCORE, with Mukah to be developed as a
smart city as well as one of the growth nodes in SCORE.
Intensifying research, development and

commercialisation
Collaboration between government, industry and academia
will be strengthened to intensify research, development and
commercialisation (R&D&C) activities in economic clusters to ensure
industrial sustainability. The collaboration concept adopted by the
Collaborative Research in Engineering, Science and Technology
(CREST) Centre will be extended to other economic clusters and
regional economic corridors.

3-32
Focus area E
Enhancing Bumiputera Economic Community (BEC)

opportunities to increase wealth ownership
In order to address the issues and challenges faced by Bumiputera,
more creative and innovative efforts will be undertaken. For this
purpose, five main strategies to be implemented are as follows:
Strategy E1: Empowering Bumiputera human capital
by expanding high-skills training and certified professionals
programmes;
Strategy E2: Increasing Bumiputera effective control and
sustainable corporate ownership by broadening investment
strategy to improve equity ownership, increasing GLCs and
GLICs divestment of non-core assets and activities to Bumiputera
enterpreneurs, as well as introducing new funding mechanisms for
financial assets;
Strategy E3: Enlarging the share of Bumiputera wealth
ownership by strengthening institutional-based programmes for
assets ownership and introducing new funding mechanisms for nonfinancial assets;
Strategy E4: Empowering Bumiputera Economic Community
by reducing financing to low-value added and non-strategic
industries, intensifying entrepreneur financing programmes,
enhancing development-oriented and integrated programmes for
Bumiputera enterprises, enhancing mindset change programmes,
institutionalising community- and social-based enterprises,
providing incentives to encourage private sector and industry
participation, as well as establishing platform for business
collaboration and marketing opportunities; and
Strategy E5: Strengthening delivery effectiveness of

Bumiputera-oriented programmes by setting up an integrated
database comprising Bumiputera socio-economic status,
simplifying Government procedures to reduce the cost of doing
business and ensuring collaboration across all relevant agencies and
the private sector to deliver programmes effectively.
Strategy E1
Empowering Bumiputera human capital

Expanding high-skills training and certified
professional programmes
Successful employment insertion programmes such as the Program
Peneraju Skil under YPPB will be expanded to improve skills of the
Bumiputera. By 2020, participation of Bumiputera in skilled occupation
categories is targeted to reach at least 60%. Industry players in high
impact sectors will play a prominent role through collaboration with
training institutions in tailoring their modules to industry needs. This will
result in more employable graduates who will have access to better job
opportunities. Appropriate incentives will be offered to industry players
to encourage stronger collaboration with the relevant skills training
institutions. Program Peneraju Profesional conducted by YPPB and
other similar programmes will be expanded to increase the number
of certified professionals among Bumiputera such as accountants,
financial analysts and engineers.
3-33
Strategy E2
Increasing Bumiputera effective control

and sustainable corporate ownership
Broadening investment strategy to improve equity
ownership
Corporate equity enhancement programmes will be continued to
increase Bumiputera equity ownership with effective control such
as private equity investments by EKUINAS, SJJB and Program
Pembangunan Usahawan Korporat (The Baron). In addition, PNB will
further diversify the Amanah Saham Bumiputera (ASB) portfolio of
investment into property to maximise returns to unit holders. Other
Bumiputera agencies and institutions will also be focusing on the
acquisition of high potential companies and profitable PLCs. By the
end of the Eleventh Plan, Bumiputera corporate equity ownership with
effective control is expected to increase to at least 30%.
Increasing GLCs and GLICs divestment of non-core

assets and activities to Bumiputera entrepreneurs
Divestment of profitable non-core GLCs and GLICs assets and
activities to genuine Bumiputera entrepreneurs will continue to be
implemented to increase Bumiputera effective direct individual
ownership. Targeted coaching and guidance will be provided until
Bumiputera enterprises are able to independently operate these
businesses. Financial institutions will facilitate the Bumiputera
enterprises in terms of liquidity in the process of taking over businesses
from the GLCs and GLICs. An appropriate divestment arrangement will
be developed and monitored by TERAJU to ensure the success of this
initiative.
Introducing new funding mechanisms for financial

assets
Bumiputera individual equity ownership will be expanded by allowing
withdrawal from Account 1 of the Employee Provident Fund to purchase
ASB2 units, which provide competitive long-term returns at minimal
risk. New funding mechanisms, such as waqf investment fund and
private equity for investment will be created through crowd funding to
invest in profitable and high potential companies.
Strategy E3
Enlarging the share of Bumiputera

wealth ownership
Strengthening institutional-based programmes for
assets ownership
Institutional-based programmes including Bumiputera REIT will
continue to be strengthened to enhance Bumiputera ownership of large
commercial and residential properties in strategic locations. Yayasan
Wakaf Malaysia, state Islamic religious councils, and other Bumiputerabased institutions will collaborate to develop Malay reserve and waqf
land to unlock value while retaining Bumiputera ownership.
A mechanism to enable Bumiputera institutions to purchase unsold
Bumiputera lots in new property developments will be introduced.
These institutions will own the property and receive rental income until
the property is acquired by interested Bumiputera. In addition, EDOs
such as MARA, TEKUN Nasional and Perbadanan Usahawan Nasional
Berhad (PUNB) will continue to acquire strategic business spaces or
shop lots to be rented to Bumiputera entrepreneurs.

Introducing new funding mechanisms for non-financial

assets
3-34
Intensifying entrepreneur financing programmes
Entrepreneur financing programmes will be intensified to support

the implementation of an effective and integrated entrepreneur
In order to assist Bumiputera to own residential properties, more
development programme. The focus will be on industries with
affordable houses will be developed by utilising funds including a
large Bumiputera participation including automotive, construction,
clawback funding mechanism. The clawback funding mechanism
aerospace and defence, business services, education, healthcare, as
collects contributions from property developers when they are
well as oil and gas. A second chance policy will also be introduced to
unable to comply with the Bumiputera quota policy in their property
development. The contribution is equivalent to the total cost of discount assist potential Bumiputera entrepreneurs to resume their business
activities. In addition, the waqf fund, as well as Islamic banking and
from the units forgone to non-Bumiputera. By the end of the Eleventh
financing will be utilised to create more Bumiputera entrepreneurs in
Plan, it is expected that at least 90% of Bumiputera households
strategic subsectors, particularly in the halal industry.
will own a residential unit. In addition, Bumiputera Commercial
Property Revolving Fund will be established to assist entrepreneurs
Enhancing development-oriented and integrated
to acquire commercial properties. This initiative will enable
programmes for Bumiputera enterprises
Bumiputera entrepreneurs to shift from renting to owning properties.
Government procurement and contracts will be restructured to
PHB will be appointed as the lead agency, supported by EDOs to
co-purchase commercial properties. These properties will be leased to minimise rent-seeking and spurious-front activities. It will include the
introduction of an appropriate graduation and exit policy to reduce
entrepreneurs who will own them at the end of the lease period.
continuous dependence on the Government. In addition, smart
partnerships will be developed between R&D centres and Bumiputera
SMEs to ensure creation of innovative products and services. A
Strategy E4
soft loan for R&D will be provided to enable Bumiputera SMEs to
comply with international standards and certifications. Other high
impact programmes such as the Vendor Development Programme
and Groom Big will be continued. The carve-out policy on contracts
Reducing financing to low-value added and nonworth RM500 million and above will continue to be implemented. In
addition, outsourced work will continue to be given to Bumiputera
strategic industries
entrepreneurs.
AIM and TEKUN Nasional will continue to provide financing to micro
Empowering Bumiputera Economic

Community
businesses. However, these institutions will be discouraged from

providing financing to low-value added industries. PUNB, SME Corp
and MARA will assist SMEs in high value added industries with the
potential to grow and move to the next stage of the business cycle
where Bumiputera participation is still low.
The Bumiputera Business Chambers will be streamlined and rebranded

towards creation of a genuine entity that will champion the supply
chain farm-to-table network of Bumiputera entrepreneurs. A pool of
high potential Bumiputera entrepreneurs among industry champions
will be identified to form consortiums along the supply chain network,
thus providing a supportive business ecosystem. Special provisions
including funding and easier access to market will strengthen these
consortiums. As a result, Bumiputera consortiums will become more
competitive, thus addressing current challenges in competing within
the ecosystem. The ecosystem will create a competitive environment
for Bumiputera in the market, thus addressing challenges in competing
within the ecosystem.
3-35
Enhancing mindset change programmes

In order to develop more independent Bumiputera entrepreneurs,
appropriate measures will be introduced to bring about a mindset
change to reduce dependency on Government assistance as well as
eliminate rent-seeking and spurious-front activities. These measures
are also designed to boost the confidence level of Bumiputera
entrepreneurs to become more resilient and competitive in the local
and global market.
Institutionalising community- and social-based

enterprises
This initiative will involve the merging of small Bumiputera enterprises
as well as the amalgamation of agriculture smallholdings to benefit
from economies of scale. The Government will provide appropriate
infrastructure and facilities, as well as leadership and management
training to build the capacity and capability of these community- and
social-based enterprises, which will be set up based on cooperative
models. The enterprises will be encouraged to develop partnerships
with established companies to expand their activities.
Providing incentives to encourage private sector and

industry participation
Financial and non-financial incentives will be continued to encourage
private sector and industry to contribute to Bumiputera entrepreneurship
development. This initiative will enable Bumiputera entrepreneurs to
penetrate the market and create new business opportunities.
Establishing platforms for business collaboration and

marketing opportunities
A Bridging Programme will be introduced to pool credible Bumiputera
entrepreneurs to elevate them to the next level. The Bumiputera
entrepreneurial development agencies will strengthen collaboration
among them to develop successful and competitive entrepreneurs.
In addition, a Business Development Voucher Programme will be
introduced to provide matching grants to assist entrepreneurs to
modernise their facilities, explore new markets and improve their
business processes. An International Distribution Centre will also
be established and managed by the private sector or a cooperative
movement to gain access to foreign markets to ensure business viability.
Strategy E5
Strengthening delivery effectiveness of

Bumiputera-oriented programmes
Enhancing Bumiputera development agenda through
realistic and practical Key Performance Indicators
(KPIs)
A comprehensive approach will be implemented through the creation
of realistic and practical KPIs as well as an integrated database that
comprises Bumiputera socio-economic status. The roles and functions
of Bumiputera-based EDOs will be reviewed and Unit Pemerkasaan
Ekonomi Bumiputera (UPEB) in each ministry and agency will be
strengthened through appropriate redeployment of human capital and
resource allocation. Government procedures will also be simplified to
reduce the cost of doing business to enable Bumiputera entrepreneurs
to be more competitive. Public agencies, GLCs and GLICs, Bumiputera
non-governmental organisations as well as relevant business
associations will collaborate in a symbiotic relationship to develop BEC.

3-36
Conclusion
The Tenth Plan succeeded in increasing inclusivity nationwide, as seen
in improved income distribution in both rural and urban areas. Access
to rural infrastructure has improved, and various opportunities have
been created for rural and other communities to partake in economic
development opportunities. Nevertheless, more needs to be done, in
particular to address the needs of selected segments of society who
do not feel that they are benefiting from the nations growth and
development. In addition, vulnerable households, particularly within
the B40 households and rural communities remain prone to socioeconomic shocks. The strategies in the Eleventh Plan will increase
inclusiveness in line with the aspiration of uplifting more B40
households into the middle-class society. Key segments within the
community will continue to be engaged and supported, with outcomebased incentives to stimulate independence and results-orientation.
Rural transformation will continue, with the objective of uplifting
the wellbeing of rural communities to enable them to participate
in and benefit from the nations economic growth. The various
strategies proposed will result in more equitable access to economic
opportunities. Malaysians will enjoy improved income, reduced
vulnerability and a better quality of life as well as continue contributing
towards the nations growth and development.
Improving
wellbeing
for all
Overview
Highlights
Looking back
2011-2015: Progress
Improving access to quality
healthcare services
Ensuring access to quality
and affordable housing
Making streets and

communities safer for rakyat
peace of mind
Enhancing social cohesion
and national unity
Promoting a sports culture
and developing talent to
enhance wellbeing
2016-2020
Moving forward
2016-2020
Focus area A: Achieving
universal access to quality
healthcare
Focus area B: Providing
adequate and quality
affordable housing to poor,
low- and middle-income
households
Focus area C: Creating
safer living environments for
thriving communities
Focus area D: Improving
road safety and emergency
services to reduce fatalities
Focus area E: Enculturating
the spirit of 1Malaysia to
foster social cohesion and
national unity
Focus area F: Promoting
sports for healthy living and
unity
Conclusion
4-1
Overview
The Government has always adopted a balanced development approach that gives
equal emphasis to both economic growth and the wellbeing of the rakyat. While
there is no standard definition of wellbeing, the term is generally associated with
a standard of living and quality of life that encompasses economic, social, physical
and psychological aspects, and is beneficial for society. In Malaysia, these aspects
are manifested in quality healthcare, affordable housing, improved public security
and safety, enhanced emergency services, greater social integration and unity, as
well as widespread participation in sports. Improvements in wellbeing will also
promote productivity and upward mobility of the rakyat.
During the Tenth Malaysia Plan, 2011-2015, the Government invested significant
resources to enhance the wellbeing of the rakyat. Improvements in the healthcare
sector led to an increase in life expectancy, a decrease in infant and maternal
mortality rates, and improvements in access to healthcare services. Housing
programmes improved affordability for both low- and middle-income households,
and guidelines were developed to create more conducive living environments.
Crime rates fell by more than 20% through measures such as omnipresence
in hotspots and greater community participation in voluntary
neighbourhood watch activities. Social interaction programmes involving
government agencies, non-governmental organisations (NGOs) and
communities increased significantly, creating shared experiences and
values that fostered social cohesion and strengthened national unity.
The involvement of Malaysians in sports activities increased from 32% in 2011
to 40.8% in 2014, highlighting in turn, a growing appreciation of the benefits
of sports, from supporting healthy lifestyles to strengthening national unity.
In the Eleventh Malaysia Plan, 2016-2020, wellbeing remains a priority

thrust for realising Vision 2020. Improvements in healthcare will focus on
addressing underserved populations, improving health system delivery to
enhance efficiency and effectiveness, and intensifying collaboration with the
private sector and NGOs. Housing support will be maintained for the poor, lowand middle-income households, including youth and young married couples.
Crime prevention efforts will focus on intensifying collaboration across public
and private sector stakeholders, building the capabilities of law enforcement
personnel, tightening regulations and strengthening enforcement. A new
focus area on enhancing road safety and emergency services will also be
introduced. Platforms for interaction between and among different social
groups will be enhanced to foster social cohesion and national unity, while
more programmes to inculcate ethics and moral values will be implemented
at schools and institutions of higher education. Finally, emphasis will be
placed on mass sports participation, developing high-performance athletes,
and building youth leadership capabilities in sports and sports-related
activities.
4-2

5, 6, and 7 for further details at
www.epu.gov.my

Chapter 4: Improving wellbeing for all
4-3
Highlights
25.4
points
74.8
years
Improvement in
overall wellbeing
based on the
Malaysian
Wellbeing Index
between 2000
and 2012
Estimated life
expectancy in
2014; an increase
from 74.1 years
in 2010
Overall
improvement in
the Malaysian
Wellbeing Index
1
6.5
deaths
Estimated infant
mortality rate per
1,000 live births
in 2014;
a decrease from
6.7 deaths in
2010
58,530 102,200
Hospital beds1 in
2014, an increase
from 55,180 in
2010

healthcare services
Includes public and private hospitals, maternity and nursing homes, hospices and ambulatory care centres.
Affordable
houses
completed for
poor, low- and
middle-income
households
Ensuring access
to quality and
affordable
housing

22.7%
17.6%
53.2%
NUCC
36
Decline in the
crime index
between 2011
and 2014
Decline in street
crime between
2011 and 2014
Increase in
the number
of registered
Voluntary
Patrolling
Schemes (SRS),
between 2011
and 2014
Established the
National Unity
Consultative
Council (NUCC)
in 2013
Number of
Malaysian
athletes in the
top ten world
ranking in 2014
Making streets and communities safer for

rakyat peace of mind
4-4
Enhancing
Promoting a
social cohesion
sports culture
and national
and developing
unity
talent to enhance
wellbeing
4-5
Looking back

The Tenth Malaysia
Plan enhanced the
wellbeing of the rakyat
through a relentless
focus on healthcare
services, public security,
affordable housing,
social cohesion, and
sports.
During the Tenth Malaysia Plan, the wellbeing of

the rakyat was enhanced through a relentless
focus on healthcare services, public security,
affordable housing, social integration, and
sports. As a result, the wellbeing of the rakyat
has improved as evidenced by the Malaysian
Wellbeing Report 2013. Overall wellbeing
improved by 25.4 points between 2000 and 2012,
as shown in Exhibit 4-1. The economic wellbeing
sub-composite improved by 33.3 points while
the social wellbeing sub-composite improved
by 21.0 points. The economic dimension of the
Wellbeing Index encompasses components
such as transport and education, while the social
dimension encompasses components such as

housing, public security, and social participation.

healthcare services
The Government improved access to quality
healthcare services by upgrading healthcare
infrastructure, enhancing the capacity of
healthcare personnel, promoting healthy
lifestyles, and extending nationwide preventive
care programmes. The results of these efforts are
manifested in an increase in life expectancy and
a reduction in infant and maternal mortality, as
shown in Exhibit 4-2.
Exhibit 4-1
MWI
Malaysian Wellbeing Index, 2000-2012
Economic
Social
Index
140
135
130
125
120
Index
Change
(% p.a.)
MWI
1.9
Economic
Wellbeing
2.4
Social
Wellbeing
1.6
115
110
105
100
2000
01
02
03
04
05
06
07
08
09
10
11
2012
Notes: The MWI measures economic and social indicators. The former encompasses transport, communications, education, working life and income and
distribution, while the latter includes housing, leisure, governance, public safety, social participation, culture, health, environment and family.
Source: Malaysian Wellbeing Report 2013

4-6
Chart 4-2: Selected Indicators of Health Status, 2010 and 2014

Exhibit 4-2
Selected indicators for health status, 2010 and 2014
Indicator
2010
2014
Life expectancy at birth (in years)
74.1
74.8
Infant mortality rate (for every 1,000 live births)
6.7
6.5
Maternal mortality ratio (for every 100,000 live births) 26.1
25.5
Chart 4-3:
ofareHealth
Personnel to Population, 2010 and 2014
Note: Ratio
2014 numbers
estimated
Exhibit 4-3
Ratio of health personnel to population, 2010 and 2014

Number
Ratio to Population
Type of Personnel
2010
2014
2010
2014
Doctor
32,980
51,835
1:859
1:581
Dentist
3,810
5,888
1:7,437
1:5,112
Pharmacist
7,760
12,294
1:3,652
1:2,448
Nurse
69,110
92,681
1:410
1:325
Note: 2014 figures are preliminary
Accessibility to healthcare services was enhanced

through the construction of new hospitals which included
specialised medical institutions such as the National Cancer
Institute in Putrajaya and the Cheras Rehabilitation Hospital.
In addition, Klinik 1Malaysia and Klinik Bergerak 1Malaysia
were enhanced to provide greater accessibility to affordable
healthcare services for low-income households. As of 2014,
307 Klinik 1Malaysia were established in urban areas and 16
Klinik Bergerak 1Malaysia delivered services from boats and
buses in rural areas.
The number of hospital beds for both public and private
healthcare increased from 55,180 in 2010 to 58,530 in 2014.
Of these, public hospital beds accounted for 75% of total
hospital beds in 2014. The health personnel to population
ratio also improved from 2010 to 2014, as shown in Exhibit
4-3.
To encourage healthy living among the community, the
Government introduced Program Komuniti Sihat Perkasa
Negara (KOSPEN), which promotes physical activities, as
well as healthy diets and behaviours. In addition, health
promotion programmes for communicable diseases were
expanded, including the Communication for Behavioural
Impact Programme (COMBI), which primarily aims to
mitigate the risk of dengue.
Ensuring access to quality and

affordable housing
To meet the affordable housing needs of low- and middleincome households, the Government provided financial
assistance to home buyers, and enhanced regulatory
framework to facilitate homeownership. Housing
programmes for poor and low-income households in
urban and rural areas were implemented through Program
Bantuan Rumah (PBR), Program Perumahan Rakyat (PPR)
and Rumah Mesra Rakyat 1Malaysia (RMR1M), as well as
4-7
housing for second-generation Federal Land Development Authority

(FELDA) and Federal Land Consolidation and Rehabilitation Authority
Berhad (FELCRA) settlers.
Affordable housing for middle-income households was also provided
through programmes such as the Perumahan Rakyat 1Malaysia
(PR1MA), 1Malaysia Civil Servants Housing (PPA1M) and Rumah
Wilayah Persekutuan (RUMAWIP). Exhibit 4-4 shows the various
housing programmes implemented for different target groups and their
achievements.
To ensure all affordable houses were adequately maintained, the

Government embarked on the Program Penyenggaraan Perumahan for
public low-cost housing and Tabung Perumahan 1Malaysia for private
low- and medium-cost housing. In addition, the MyBeautiful Malaysia
programme under the National Blue Ocean Strategy was implemented
in 2014 to enhance the maintenance of Government quarters. Several
guidelines such as the Green Neighbourhood Planning Guideline, Open
Space and Recreation Guideline, and Physical Planning Guideline
for Senior Citizens were formulated to ensure a more conducive and
liveable environment. These initiatives helped improve the surrounding
quality and living conditions of the rakyat.
Chart 4-4: Public affordable housing programmes during the Tenth Plan
Exhibit 4-4
Public affordable housing programmes developed during the Tenth Plan

Programmes
Monthly Household
Income (RM)
Ministries/ Agencies
Number of Housing Units

Completed
Under
Construction
Total
Program Bantuan
Rumah (PBR)
Below Poverty Line Income1
Ministry of Rural and

Regional Development
56,668
8,298
64,966
Program Perumahan
Rakyat (PPR)
2,500 and below
Ministry of Urban
Wellbeing, Housing and
Local Government
12,025
27,087
39,112
Rumah Mesra Rakyat

1Malaysia (RMR1M)
750 to 3,000
Syarikat Perumahan
Negara Berhad
32,948
2,803
35,751
Perumahan Rakyat
1Malaysia (PR1MA)
2,500 to 10,000
Perbadanan PR1MA
Malaysia
560
18,400
18,960
1Malaysia Civil Servants

Housing (PPA1M)
2,500 to 10,000
Prime Ministers
Department
13,539
13,539
Rumah Wilayah
Persekutuan
(RUMAWIP)
6,000 and below
Ministry of Federal
Territories
9,309
9,309
Notes: PR1MA, PPA1M and RUMAWIP commenced in year 2013; figures as of March 2015
1 Poverty Line Income (PLI) is a measure of absolute poverty based on the minimum requirement of food and non-food items for household members to live healthily
and actively in society. In 2014, the average monthly PLI was RM930 for Peninsular Malaysia, RM1,170 for Sabah, and RM990 for Sarawak.

4-8
The Housing Development (Control and Licensing) Act 1996 (Act 118)
was amended to provide an avenue to charge errant developers,
ensuring better protection for home buyers. In addition, new financing
schemes were introduced such as the My First Home Scheme, Youth
Housing Scheme, and Private Affordable Ownership Housing Scheme
(MyHome) to provide financing facilities for the rakyat to own houses at
affordable prices.
Community policing programmes were implemented to promote safer

neighbourhoods through the Voluntary Patrolling Scheme (SRS). SRS,
a community crime watch and night patrol effort under Rukun Tetangga
(RT), aimed to reduce crime in residential areas. In 2014, 4,460 SRS
were registered compared to 2,910 in 2011. These voluntary based
community policing programmes not only reduced incidences of crime
but also increased social integration.
Making streets and communities safer for

rakyat peace of mind
The Police Volunteer Reserve (PVR) played a major role in supporting

PDRM in law enforcement and maintaining peace and security. The
number of PVR was increased from 9,075 in 2011 to 25,260 in 2014
which improved omnipresence. Successful joint patrols between SRS,
Angkatan Tentera Malaysia (ATM), and PDRM under the Rondaan
Awam Polis dan Anggota Tentera (RAPAT 1Malaysia) programme were
carried out in 75 crime hotspots in 2013.
To enhance the effectiveness of crime prevention measures, the

Reducing Crime National Key Result Area (NKRA) was introduced to
improve peoples perception of safety, reduce the crime index and
enhance Polis DiRaja Malaysia (PDRM) services. To achieve these
aims, the Government undertook comprehensive efforts such as
omnipresence in hotspots, special police operations, and greater
community participation in voluntary neighbourhood watch activities.
Crime prevention efforts resulted in a decline in crime from 166,300
cases in 2011 to 128,540 cases in 2014 as reflected in the crime index.
In terms of the order and security sub-index of the World Justice
Project (WJP)1, Malaysias position improved from the 16th position in
2012/2013 to the 12th position in 2014. Closed circuit television (CCTV)
cameras together with other crime prevention measures successfully
reduced 17.6% of street crime from 2011 to 2014.
The Safe City Programme, which uses crime prevention measures
such as rail barricades and CCTV, was implemented in 151 local
authorities covering 618 hotspots. An assessment undertaken in
2012 indicated that 80% of citizens in those areas felt safe, which
significantly exceeded the target of 55%. Subsequently, the Black Spot
Whitening Initiative introduced in 2013, focused on crime prone areas
under the Safe City Programme. Spanning 76 local authorities, 61%
of the population in these areas felt safe, exceeding the 55% target.
This initiative also enhanced collaboration between communities and
government agencies.
Drug addiction contributes to street and violent crime, thereby posing

a serious threat to the wellbeing of the rakyat. Measures to combat
this included eliminating organised crime and drug syndicates, as well
as intercepting drug shipments at border and entry and exit points.
In addition, treatment and aftercare handling for drug addicts were
enhanced through self-development programmes, counselling, and
Methadone Maintenance Therapy (MMT). Although new drug addiction
cases decreased from 13,680 in 2011 to 13,270 in 2014, relapse
cases increased from 5,848 in 2011 to 7,956 in 2014, mainly due to the
availability of locally manufactured synthetic drugs and the continuous
societal stigmatisation of drug addicts.
Jabatan Penjara Malaysia transformed the incarceration approach of
inmates from penitentiary to correctional and rehabilitation. Inmate
rehabilitation was undertaken through various methods, such as faceto-face family meetings, self-development programmes, and early
release for rehabilitated inmates through the parole system. In addition,
the Community Rehabilitation Programme (CRP) was implemented to
provide inmates with the necessary technical skills to secure jobs upon
reintegration into society so as to reduce recidivism and to reduce
prison congestion. The overall recidivist rate of inmates remained in the
range of 7% to 8% from 2011 to 2014.
World Justice Project Rule of Law Index covers eight components, namely constraints on government power, absence of corruption, open government, fundamental rights, order and security, regulatory
enforcement, civil justice and criminal justice. Order and Security measures three dimensions covering various threats: crime particularly conventional crime such as homicide, kidnapping, burglary, armed
robbery, extortion and fraud; political violence including terrorism, armed conflict and political unrest; and violence as a socially- accepted means to redress personal grievances (vigilante justice).
4-9
Enhancing social cohesion and national unity

Various community programmes were implemented to foster social
integration and volunteerism, and to promote a greater spirit of
tolerance and unity among Malaysians. The Department of National
Unity and Integration or Jabatan Perpaduan Negara dan Integrasi
Nasional (JPNIN), conducted 875,590 social interaction activities
through organisations and programmes such as Kelab Rukun Negara,
Sekretariat Rukun Negara, Integrasi Komuniti, Jaringan Sosial,
Silang Budaya, and Persefahaman antara Penganut Agama. These
programmes were implemented in collaboration with government
agencies, private sector and NGOs.
Numerous initiatives were implemented to nurture youth volunteerism.
The 1Malaysia For Youth (iM4U) NGO, established in 2012, organised
various volunteer programmes with the local community such as the
iM4U Flood Relief, Volunteer Malaysia, and the Reach Out Convention
and Celebration. The alumni of Program Latihan Khidmat Negara
known as the National Service Volunteer Brigade also organised
volunteer programmes in environmental conservation, sports, and
natural disaster relief.
The Government established the National Unity Consultative Council
(NUCC) in 2013. The NUCC is mandated to formulate a national
blueprint for social cohesion and national unity which will be completed
in 2015. The blueprint will focus on the reconciliation of five key areas,
namely policy and legislation, culture, youth, national integration,
and inclusive development. The NUCC has conducted 18 town hall
meetings throughout Malaysia to deepen understanding of what it
would take to build tolerance and integration in a multiracial society.
Promoting a sports culture and developing

talent to enhance wellbeing
During the Tenth Plan, Sports for All was promoted to encourage
mass participation in sports, recreational, and fitness activities. A total
of 417 programmes were conducted involving 175,600 participants
including 2,600 persons with disabilities (PWD). Among the flagship
programmes were FitMalaysia and the Sports for All League. In
addition, a total of 1,871 1Malaysia Futsal Courts and 89 gymnasiums
were built to increase access to sport facilities for all levels of society.
The Talent Development Programme for high-performance sports was
implemented to identify and train potential athletes to participate in
major tournaments such as the SEA Games, Commonwealth Games,
Asian Games, and world championships. To date, 23,670 potential
athletes have attended special training programmes. In addition,
2,603 PWD athletes participated in the People with Disabilities Sports
Carnival in 2012, 74 talented PWD athletes joined the MSN Paralympic
Programme in 2013, and 135 PWD athletes participated in the 11th
Asian Paralympic Games in South Korea in 2014.
Malaysias achievements in major international sports tournaments
continue to be encouraging. Malaysian athletes, Dato Lee Chong Wei
won a silver medal and Pandelela Rinong Ak Pamg won a bronze medal
in the 30th Olympic Games 2012 in London. Malaysia also excelled in
various sporting events, namely the 20th Commonwealth Games 2014 in
Glasgow, with six gold medals, 43 gold medals in the 27th SEA Games
2013 in Myanmar, and 15 gold medals in the 11th Asian Paralympic
Games 2014 in Incheon, South Korea. In 2014, 36 Malaysian athletes
were in the top 10 world ranking, as shown in Exhibit 4-5. Furthermore,
Malaysian athletes like Dato Lee Chong Wei and Dato Nicol Ann David
are international role models in their respective sports.
*
The Tenth Malaysia Plan witnessed significant improvements in the

overall wellbeing of Malaysians. Improvements in the quality of life
and changing socio-economic structure has, however, led to higher
expectations of service delivery on the part of the rakyat. Within
healthcare, the ongoing challenge will be to ensure quality service

delivery to underserved communities and to address the prevalence

of infectious diseases and lifestyle-related illnesses. The increased
supply of affordable housing particularly in urban areas for youth and
young married couples is still insufficient to keep pace with demand.
Public security and safety remains a top concern for people, while law
enforcement efforts are hampered by insufficient collaboration across

agencies and stakeholders. Mass sports participation remains low
despite improved access and awareness campaigns, while the spirit
of 1Malaysia and social cohesion are often undermined by polarising
views and perceptions within society.
Chart
4-5: Malaysia World Ranked Top Ten Athletes, 2014
Exhibit 4-5
Malaysian athletes ranked in the world top ten, 2014
No.
Athletes
Sports
Category
World Ranking
1.
Dato Lee Chong Wei
Badminton
Mens singles
1st
2.
Dato Nicol Ann David
Squash
Womens singles
1st
3.
Sazali Abdul Samad
Bodybuilder
Mens 75 kilogram (kg)
1st
4.
Lilian Tan
Bodybuilder
Womens 55kg
1st
5.
Badminton
Mens team
2nd
6.
Syakilla Salni Jefry Krishnan
Karate
Women's below 61kg
2nd
7.
Karate
Men's team kata
3rd
8.
Hizlee Rais
Lawn Bowls
Mens single
3rd
9.
Aquatics-Diving
Women's synchronized
10 metre platform
3rd
10.
Pandelela Rinong Ak Pamg
Aquatics-Diving
Women's 10 metre platform
4th
11.
Fatehah Mustapa
Track Cycling
Womens keirin
4th
Sepak Takraw
Men's regu
4th
Aquatics-Diving
Women's synchronized
3 metre springboard
5th
12.
13.
Dato Lee Chong Wei

Hoon Thien How
Tan Wee Kiong
Tan Boon Heong
Chong Wei Feng
Liew Darren
Goh Soon Huat
Goh V Shem
Lim Khim Wah
Chan Peng Soon
Emanual Leong Teng Kwang

Ho Ying Thomsan
Ricky Leong Tze Wai
Leong Mun Yee
Pandelela Rinong Ak Pamg
Izurin Refin
Mohd Hanafiah Dolah
Mohd Muqlis Borhan
Mohd Shahir Rosdi

Mohd Khairul Zaman
Ng Yan Yee
Cheong Jun Hoong
14.
Cheong Jun Hoong
Aquatics-Diving
Women's 3 metre springboard
7th
15.
Low Wee Wern
Squash
Womens singles
7th
Sepak Takraw
Womens regu
7th
Aquatics-Diving
Men's synchronised 3 metre

springboard
9th
16.
17.
Noor Fairuz Azizan

Nor Farhana Ismail
Rahilah Harun
Ooi Tze Liang
Ahmad Amsyar Azman
Emilia Eva Natasha

Nurul Izzatul Hikmah
Zulkifli
Source: National Sports Council of Malaysia, Ministry of Youth and Sports
4-10
Achieving
universal
access to
quality
healthcare
Enhancing targeted
support, particularly for
underserved
communities
Improving system
delivery for better health
outcomes
Expanding capacity to
increase accessibility
Intensifying
collaboration with
private sector and
NGOs to increase health
awareness
Providing
adequate and
quality
affordable
housing to poor,
low- and
middle-income
households
Increasing access to
affordable housing for
targeted groups
Strengthening
planning and
implementation for
better management of
public housing
Encouraging
environment-friendly
facilities for enhanced
liveability
Creating safer
living
environments
for thriving
communities
Enhancing crime
prevention by
enforcement agencies,
private players, and the
public to elevate
perception of feeling
safe
Tightening regulations
and strengthening
enforcement to stem
crime
Promoting crime
awareness for effective
prevention
Enhancing rehabilitation,
treatment, and aftercare
to reduce recidivism
among ex-inmates and
relapse among drug
addicts
Improving
road safety
and
emergency
services to
reduce
fatalities
Improving road
safety to reduce
accidents
Improving
emergency
services to save
lives
Enculturating
the spirit of
1Malaysia to
foster social
cohesion and
national unity
Promoting social
integration and
ethics to foster a
united and moral
society
Intensifying
stakeholder
engagement to
build a shared
sense of
responsibility
Promoting
sports for
healthy living
and unity
Promoting mass
sports
participation at all
levels of society to
instil a sports
culture
Developing youth
leadership in
sports
Developing high
performance
athletes for global
prominence
SELECTED OUTCOMES
1.7%
Achieving universal access
to quality healthcare
2.3
1:400
606,000
Increase per annum, compared

to 1.1% during the Tenth Plan
6,800
Number of
schools with
Kelab Rukun
Negara
Houses to be
developed for
low- and
middle-income
households
50%
Minimum
percentage of
Malaysians who
embrace a sports
culture
Improving road safety

and emergency services
to reduce fatalities
Doctor to
population ratio
Houses to be
constructed/
repaired for
the poor
Promoting sports for

healthy living and unity
Enculturating the spirit of

1Malaysia to foster social
cohesion and national unity
Hospital beds per

1,000 population1
Providing adequate and

quality affordable housing
to poor, low- and
middle-income households
47,000
Malaysian Wellbeing Index
Creating safer living

environments for thriving
communities
60%
5%
Percent of
population
feeling safe
Annual reduction
in crime index
Includes public and private hospitals, maternity and nursing homes, hospices and ambulatory care centres.
Optimised
emergency
response time
minutes
Road fatalities
index per 10,000
registered vehicles
2.0
minutes
Optimised police
response time
4-13
Moving forward
The Eleventh Malaysia

Plan aims to enable all
Malaysians - regardless
of where they live or
how much they earn - to
achieve a comfortable
standard of living and
quality of life.
By 2020, Malaysia aspires to become an advanced

nation on multiple dimensions. This is not merely
about becoming an advanced economy, but
also about building a caring and inclusive nation
that is grounded in ethics and morality, and truly
integrated and united. This aspiration will be
driven by the concept of 1Malaysia based on the
principles of the Federal Constitution and Rukun
Negara. The wellbeing of the rakyat plays a key role
in realising this aspiration.
Under the Eleventh Plan, the Government will
accelerate efforts to achieve universal access to
quality healthcare by targeting underserved areas,
and increasing capacity of both facilities and
healthcare personnel. Access to quality affordable
housing will be further enhanced by expanding and
strengthening existing programmes for poor, lowand middle-income households, and providing
more avenues for youth homeownership. To create
safer living environments, the Government will
increase community policing and omnipresence,
enable cross-agency collaborations, and build
the capabilities of law enforcement personnel.
Strategies to improve road safety awareness
and the effectiveness of emergency services will
also be introduced. Social cohesion and unity
programmes will be strengthened to promote an
understanding of diversity through interactions and
shared experiences such as community-based
volunteerism activities. Finally, the Government
will further promote mass sports participation to
achieve healthy minds and bodies, and improve
programmes to identify and build world-class
sporting talent. The overall Malaysian Wellbeing
Index, a measure of the nations progress in the
quality of life of the the rakyat is expected to
increase by 1.7% per annum, during the Eleventh

Plan.
To deliver these improvements, the Government
will move towards more targeted support to those
who need it most, embrace streamlined operations
across agencies to optimise the use of public
resources, and intensify the use of interventions
that bring together all stakeholders public,
private sectors and NGOs in an integrated and
collaborative manner. The latter shift is particularly
important, as all citizens and stakeholders have a
collective responsibility to build a more cohesive
society that reflects the best ideals of Malaysias
founding fathers, and the hopes and dreams of
future generations.
These aspirations will be achieved under the
Eleventh Plan through the following focus areas:
Focus area A: Achieving universal access to
quality healthcare
Focus area B: Providing adequate and quality
affordable housing to poor, low- and middleincome households
Focus area C: Creating safer living environments
for thriving communities
Focus area D: Improving road safety and
emergency services to reduce fatalities
Focus area E: Enculturating the spirit of
1Malaysia to foster social cohesion and national
unity
Focus area F: Promoting sports for healthy living
and unity

4-14
Focus area A
Achieving universal access to quality healthcare

Good health is essential for a good quality of life. Consequently,
the Government remains committed to achieving universal access
to quality healthcare during the Eleventh Plan by continuing efforts
to improve the fundamentals of the health system. This means that
every Malaysian will have equal access to affordable and good quality
healthcare services, whether delivered by public or private providers.
This aspiration will be realised through four strategies:
Strategy A1
Strategy A3: Expanding capacity to increase accessibility.

Initiatives include developing new facilities, upgrading existing
facilities, as well as enhancing healthcare personnel capacity and
capabilities; and
discharge, such as stroke patients. Healthcare personnel will train

family members and caregivers to care for these patients. NGOs will
also be encouraged to participate and provide support and services to
the patients and their families.
Enhancing targeted support,

particularly for underserved
communities
Access to quality healthcare, particularly in underserved urban and

rural areas and communities will be expanded. This includes the
Strategy A1: Enhancing targeted support, particularly for
extension of services to poor and low-income households, Orang
underserved communities. Specific initiatives include the
Asli in Peninsular Malaysia, and rural and remote areas in Sabah and
expansion of mobile healthcare, the improvement of primary
Sarawak. Measures will include the deployment of more specialists and
healthcare teams, and domiciliary healthcare programmes;
skilled personnel, the establishment of additional healthcare facilities in
Strategy A2: Improving system delivery for better health
the areas of greatest need, and the expansion of outreach programmes.
outcomes. Measures include the introduction of lean management For example, mobile healthcare teams, flying doctor services, and
practices in public hospitals to release latent capacity, and better
village health promoters will be expanded to remote areas.
enforcement of health regulations to improve transparency and
Domiciliary healthcare programmes will be expanded to include care
health outcomes;
programmes for patients who require long-term nursing upon early
Strategy A4: Intensifying collaboration with private sector

and NGOs to increase health awareness. Such collaboration
will span a broad range of initiatives, from community health and
prevention programmes, to research and development efforts
between industries, universities and research institutions.
Integrated care will be improved through primary healthcare teams

to enhance access, quality, and efficiency. Selected clinics will
be upgraded into advanced clinics that provide a full range of
multidisciplinary services to enhance and support primary healthcare
teams.
4-15
Strategy A2
Strategy A3
Improving system delivery for better

health outcomes
Expanding capacity to increase

accessibility
The Government will review and formulate health legislations and

intensify enforcement through strengthened coordination between
government agencies and the private sector. For example, the
Government will consolidate health-related enforcement units in areas
such as pharmaceutical, disease control, food safety, hygiene, and
cleanliness, as well as medical practice and professionalism.
Existing healthcare facilities and assets will be upgraded, while the

development of new facilities will take into account functionality, costeffectiveness, and the needs of local communities. In this regard,
the private sector will be encouraged to collaborate and set up more
healthcare facilities that cater to the needs of low- and middle-income
households. The number and distribution of health specialists and
skilled personnel will also be improved by reviewing policies, incentives,
and capability building programmes. Incentive packages will be
reviewed to attract health personnel to serve in rural and remote areas.
Healthcare services will adopt lean management practices to

streamline work processes and procedures in order to enhance
effectiveness and efficiency. This includes optimising efforts in bed
management, robust operation theatre scheduling, and best practice
treatment. Expected outcomes include the release of latent capacity
or bed days, shortened patient waiting times, improved patient
outcomes and satisfaction, and optimised use of healthcare resources.
The Government will also implement the hospital cluster concept in
selected locations, where hospitals within the same geographical
location will work as one unit, sharing resources such as assets,
amenities, and human resource.
The Government will implement the eHealth strategy, which
incorporates existing Information and Communications Technology
(ICT) systems into one, system-wide model to enhance health
data management, and support research, development and
commercialisation (R&D&C) initiatives. The Government will also work
with the private sector to increase information sharing and strengthen
the role of the private sector in service delivery. To drive innovation
through R&D&C activities, partnerships across the quadruple helix of
government, industry, universities, and research institutions will be
promoted.
Initiatives will also focus on improving pre-hospital care such as
ambulance services, as well as accident and emergency services.
Collaboration among agencies that provide ambulance services,
private healthcare providers, and NGOs will be strengthened to improve
response time and better utilise resources.
Strategy A4
Intensifying collaboration with private

sector and NGOs to increase health
awareness
Measures will be undertaken to reduce communicable diseases (CD)
and non-communicable diseases (NCD), which includes the provision
of preventive healthcare services and the promotion of a healthy
lifestyle. The private sector will be encouraged to undertake corporate
social responsibility programmes (CSR), and to collaborate with the
Government in research and development. NGOs will be encouraged
to provide health advocacy activities, health screening, and early health
interventions, as well as to work with the private sector in carrying
out health-related CSR programmes. Community participation in
health promotion programmes, such as the use of public parks and
recreational areas to promote healthy lifestyles will be encouraged.
Intervention programmes where the community will be trained to
promote health, such as KOSPEN, will continue to address lifestyle
related diseases. In addition, Komuniti Bebas Aedes & Tuberculosis
(COMBAT), will be enhanced to control CDs through community
initiatives such as gotong royong to promote a healthy environment to
reduce disease transmission.

4-16
Focus area B
Providing adequate and quality affordable housing to poor,

low- and middle-income households
Affordable housing is a platform that creates strong and stable
Strategy B1
communities, with better economic, education, and health outcomes
for individuals, families and communities. The Government will
therefore continue to provide affordable housing for the poor, low- and
middle-income households, with differing levels of support based
The Government will continue to play a major role in meeting
on need. The dream of owning ones first home will be achieveable,
providing a stable foundation for upward mobility. These aspirations will the housing needs for targeted groups in urban and rural areas
by continuing successful, existing programmes. This includes
be achieved through three strategies:
programmes under the PBR for the poor, and programmes for low- and
middle-income households such as the RMR1M, PPR, PRIMA, and
Strategy B1: Increasing access to affordable housing for
PPA1M, as well as programmes for second-generation FELDA and
targeted groups. This strategy will be delivered through the
FELCRA settlers. In addition, financing schemes such as the My First
continuation of programmes for poor, low- and middle-income
households, the introduction of targeted programmes for youth and Home Scheme, Youth Housing Scheme and MyHome will be enhanced
to improve access and affordability for low- and middle-income
young married couples, as well as the facilitation of greater private
households.
sector participation;
Increasing access to affordable

housing for targeted groups
Strategy B2: Strengthening planning and implementation for

better management of public housing. Measures under this
strategy include the development of an integrated database to
match supply and demand and the establishment of a land bank for
future development projects; and
Strategy B3: Encouraging environment-friendly facilities for
enhanced liveability. This will be achieved through an enhanced
regulatory framework and collaboration among community and
NGOs.
Transit houses will be built for youth and young married couples in
urban areas, including those proposed under the 1Malaysia Youth City
programme. These transit houses provide such families with a shortterm residence while they build up their savings to purchase their first
home. The private sector will be encouraged to develop public housing,
which can be done through public-private partnerships.
4-17
Strategy B2
Strategy B3
Strengthening planning and

Encouraging environment-friendly
implementation for better management facilities for enhanced liveability
The Government will encourage all new affordable housing
of public housing
To improve the planning and development of affordable housing, an
integrated database accessible to all relevant stakeholders will be
established to ensure housing supply matches demand according
to locality, price, and target groups. Additionally, a land bank will be
established for the development of affordable housing, particularly in
urban areas. Collaboration between the National Housing Department
with State Islamic Religious Councils could be leveraged to unlock
potential waqf and baitulmal land.
developments to adopt sustainable practices, and provide liveable

and environment-friendly facilities and infrastructure for the rakyat,
including PWD and senior citizens. Public housing rental rates will be
reviewed to ensure that sufficient funds are available to cover the cost
of management and regular standard maintenance of public housing.
Community involvement will be promoted to highlight collaborative
responsibility in maintaining housing communities. Awareness
programmes among residents to foster a culture of maintenance,
cleanliness, and the prevention of vandalism will be enhanced through
collaboration among communities and NGOs. MyBeautiful Malaysia
will continue to promote a comfortable living environment and instil a
culture of cleanliness among residents.

4-18
Focus area C
Creating safer living environments for thriving communities

Public security is key to the development of thriving communities as
fear of crime restricts personal mobility, preys on peace of mind, and
discourages investment in crime prone areas. The Government is
therefore committed to creating safer living spaces and environments
for the rakyat. Communities will have lower crime rates and higher
perceptions of feeling safe, as well as greater public confidence in
law enforcement agencies. These goals will be delivered through four
strategies:
Strategy C1: Enhancing crime prevention by enforcement
agencies, private players, and the public to elevate perception
of feeling safe. This includes building the capacity and capabilities
of law enforcement personnel, and increasing collaboration
across law enforcement agencies, the private sector, NGOs,
and communities, particularly through community policing
programmes;
Strategy C1
Enhancing crime prevention by

enforcement agencies, private players,
and the public to elevate perception of
feeling safe
Crime prevention will be intensified through omnipresence, the Safe
City Programme, and volunteerism programmes. The target is to
reduce the crime index by 5% annually and increase the perception
of feeling safe from 39% in 2014 to 60% in 2020. Omnipresence will
be improved by redeploying more personnel to crime prevention
tasks. Police response time to distress calls will be improved from 12
minutes to eight minutes, particularly in urban and major cities, through
the deployment of an integrated information system known as the
Command, Control, Communications, Computers and Integration (C4i)
system.
Strategy C2: Tightening regulations and strengthening

enforcement to stem crime. This includes initiatives to strengthen
legislation, increase the use of crime prevention measures, improve The capacity and capabilities of enforcement personnel will be
enhanced by providing the appropriate tools and capability building
the management of foreign workers, and stem cross-border crime;
programmes. For example, collaborations with international policing
Strategy C3: Promoting crime awareness for effective
bodies could be leveraged to enhance the knowledge and skills of
prevention through schools and social media. These programmes enforcement personnel through specialised training and exchange
will be targeted at high-risk groups, particularly the youth; and
programmes. The integrity of enforcement personnel will be bolstered
through awareness programmes conducted by the Malaysian Institute
Strategy C4: Enhancing rehabilitation, treatment, and
of Integrity, and greater oversight by both the Malaysia Anti-Corruption
aftercare to reduce recidivism among ex-inmates and relapse
Commission and the Enforcement Agencies Integrity Commission.
among drug addicts. A range of self-development programmes
and community-based services will be strengthened to enable
Inter-agency collaboration will be facilitated through the establishment
the successful reintegration of ex-inmates and drug addicts into
of task forces and integrated databases among the relevant agencies.
Increased joint operations and enhanced patrolling to combat
society, and reduce recidivism and relapse.
cross-border crime will ensure faster responses and optimisation of
manpower and resources. The Government will leverage on bilateral
and multilateral relations to mitigate crimes such as human trafficking
and smuggling.
4-19
In addition, public participation in community policing will be

encouraged under SRS and PVR. The role of Jabatan Pencegahan
Jenayah dan Keselamatan Komuniti (JPJKK) will be strengthened
to enhance engagement between the police and public in crime
prevention efforts. The private sector will also be encouraged to install
CCTV cameras in hotspots that connect to PDRM control centres
through an open network platform.
Strategy C2
Tightening regulations and

strengthening enforcement to stem
crime
Existing laws and regulations will be reviewed to improve crime
prevention effectiveness. Crime Prevention through Environmental
Design (CPTED) elements will be incorporated in the development of
new residential and commercial areas. Theft deterrent measures in
homes, such as CCTV cameras and security alarm systems will be
encouraged as part of public self-policing efforts.
The management of foreign workers will be improved by enhancing the
role of One-Stop Centre and through greater collaboration between
the Immigration Department of Malaysia and local authorities to ensure
effective enforcement. Moreover, to avoid student visa abuse, stricter
screening procedures in countries of origin and stringent enforcement
of regulations will be undertaken to ensure educational institutions with
foreign students comply with immigration procedures.
Unlawful entry at immigration checkpoints will be curbed with the
introduction of the Advanced Passenger Screening System (APSS),
biometric, and facial recognition systems. Efforts to stem increasing
cross-border crime will be bolstered through joint operations of border
enforcement agencies, such as the Malaysian Maritime Enforcement
Agency, Anti-Smuggling Unit, and ATM. Integrated detection,
monitoring, and surveillance capabilities will be enhanced including the
introduction of sea-basing platforms to deter border intrusions.
Strategy C3
Promoting crime awareness for

effective prevention
The Government will undertake targeted social media campaigns
aimed at high-risk groups, particularly the youth. The target audience
will be educated on the dangers of drugs and crime, how to protect
themselves from being victims of crime, and on the responsible use
of the Internet and social media. In addition, safe online practices
will be inculcated through the CyberSAFE in Schools programme
implemented by CyberSecurity Malaysia and the Ministry of Education
to safeguard young Internet users against negative content.
Strategy C4
Enhancing rehabilitation, treatment,

and aftercare to reduce recidivism
among ex-inmates and relapse among
drug addicts
Rehabilitation, treatment and aftercare of inmates and drug addicts will
be enhanced to achieve the targeted recidivist rate of 5% and relapse
rate of 35% by 2020. To reduce the recidivist rate, the Government
will strengthen self-development programmes that provide skills and
entrepreneurship training, as well as provide more transit houses
for ex-inmates. The CRP will be introduced for drug addicts through
collaboration between the National Anti-Drugs Agency and related
agencies. In addition, NGOs will be encouraged to provide support
services for rehabilitation, treatment, and reintegration such as job
placement and aftercare programmes.

4-20
Focus area D
Improving road safety and emergency services to reduce

fatalities
Road safety and emergency services have been identified as an
important new focus area under the Eleventh Plan to further improve
the wellbeing of the rakyat. The Government aspires to reduce the
incidences of road accidents and improve the delivery of emergency
services to be on par with international standards. This will be achieved
through two strategies:
Strategy D1: Improving road safety to reduce accidents
through more effective enforcement mechanisms and awareness
campaigns; and
Strategy D2: Improving emergency services to save lives
through mobile patrolling, greater collaboration across agencies,
and capability building programmes for first responders,
dispatchers and rescuers.
Strategy D1
Improving road safety to reduce

accidents
Driver negligence has been identified as the main cause of road
accidents followed by road conditions and vehicle safety. Road
accident fatalities remain high and increased from 6,877 fatalities
in 2011 to 6,915 in 2013. The Government aims to reduce the road
fatalities index from 2.9 per 10,000 registered vehicles in 2013 to 2.0
by 2020. This will be achieved through the wider implementation of
the Automated Enforcement System (AES) and the review of KEJARA
System or Sistem Kesalahan Jalan Raya, which imposes heavier
penalties on errant drivers. At the same time, awareness campaigns will
be further improved through the use of social media.
Strategy D2
Improving emergency services to save

lives
Given the number of agencies involved in the provision of emergency
services, the Government will facilitate greater cross-agency
collaboration. This will ensure faster response times and more efficient
deployment of resources to the accident site. In addition, the capability
of first responders, rescuers, and dispatchers will be enhanced through
specialised training and frequent emergency drills.
4-21
Focus area E
Enculturating the spirit of 1Malaysia to foster social

cohesion and national unity
The concept of 1Malaysia is founded upon the aspiration of building a
harmonious, progressive, and united Malaysian society, based on the
underlying principle of People First, Performance Now. It emphasises
the importance of understanding, respecting, and embracing the
diversity that exists in a multiracial society. It also emphasises the value
of a shared national identity, grounded in a common commitment to
building a united and prosperous society.
Enhanced integration is key to fostering social cohesion and national
unity. This can be achieved through the Eleventh Plan by reducing
polarisation and various forms of socio-economic disparities across
regions and ethnicities. The Government also recognises that the
process of integration requires exposure to and interaction among
communities, so as to promote an understanding and appreciation of
Malaysias diverse society. During the Eleventh Plan, the Government
will therefore focus on enhancing programmes and platforms for
greater interaction, engagement, and collaboration among Malaysians.
In addition to social cohesion and national unity, the Government
also aspires to foster a fully moral and ethical society, in line with the
aspirations set forth in Vision 2020. During the Eleventh Plan, the
Government will therefore intensify collaboration with all stakeholders,
particularly community-based and religious institutions, to foster a
shared sense of responsibility for building a more moral and ethical
society.
This combined vision of a cohesive, united, and ethical community will

be achieved through two strategies:
Strategy E1: Promoting social integration and ethics to foster
a united and moral society. This will not only involve creating
more shared experiencesfrom volunteerism to arts, culture
and heritagethat will deepen Malaysians understanding and
appreciation of diversity, but also enhance how ethics and morality
are incorporated in the education system; and
Strategy E2: Intensifying stakeholder engagement to build a
shared sense of responsibility. This will be achieved by building
an awareness of the role every stakeholder government, private
sector, communities, and individuals has to play in building a
tolerant and caring society.

Strategy E1
Promoting social integration and ethics

to foster a united and moral society
The Eleventh Plan will streamline existing social integration and
unity programmes to reduce redundancy and improve impact. The
Government will also increase the number of social integration
and unity programmes in educational institutions, from schools to
universities. For example, a total of 5,000 students from institutions
of higher education will be sent for MySilang Career Programmes to
enhance their acceptance and tolerance of Malaysians with varying
backgrounds, through shared interactions and exposure.
4-22
The capabilities and capacity of various research and training

institutions will be enhanced to improve national planning, monitoring
and implementation of unity, and ethnic relations programmes. The
Institute of Ethnic Studies and the National Integration Research and
Training Institute will also be strengthened.
Under the Malaysia Education Blueprint 2013-2025, the Government
has defined ethics and spirituality as one of six desired student
outcomes. The formal schooling curriculum, from preschool through
to higher education will therefore also be enhanced to achieve the
desired outcome. More public campaigns will be conducted by relevant
agencies to instil values of civic mindedness among youth. These
programmes will also be targeted at youths who are at risk.
RT will also be encouraged to organise and implement programmes

to promote unity in their respective neighbourhoods. Under RT, more
than 400 multi-ethnic female teams will be established through the
J-NITA programme. Programmes such as KOSPEN, urban farming,
and Bomba Sukarela will also serve as additional platforms to promote
social integration.
Strategy E2
Arts and culture will be developed to promote a shared Malaysian

culture and heritage, and offer another platform to embrace diversity
and a shared national identity. To promote cultural heritages like mak
yong and wayang kulit, support will be given to develop the talent of
interested individuals and communities. Research in arts and culture
will be intensified to ensure the authenticity and continuity of Malaysias
national heritage. Access to arts and cultural activities will also be
enhanced and promoted through greater community participation.
Efforts to promote understanding, tolerance, and ethics will be done

through extensive engagement with and involving communities. For
example, at the community level, the Government will collaborate with
NGOs to promote ethical and moral values through specially targeted
programmes and awareness campaigns. Professional and community
leaders will be encouraged to role model the desired behaviours of a
caring society. Religious institutions are also expected to play a bigger
role in fostering these values by conducting their own programmes.
Intensifying stakeholder engagement to

build a shared sense of responsibility
As information accessibility rises, it is important that every Malaysian

takes the initiative to practice responsible dissemination of information.
Similarly, responsible reporting in mainstream and online media is
important to ensure fair and non-inflammatory coverage of concerns
vital to the Malaysian public.
4-23
Focus area F
Promoting sports for healthy living and unity

Sports is an important component in promoting an active and
healthy lifestyle. Mass participation in sports will enhance social
integration and unity among Malaysians. The vision is for 50% of
Malaysians to embrace a sports culture, where sports and physical
activities are an integral part of life, by 2020. These aims will be
realised through the following strategies:
Strategy F1: Promoting mass sports participation at all
levels of society to instil a sports culture. This will be achieved
through stronger collaboration between the government, private
sector, NGOs and community;
Strategy F2: Developing youth leadership in sports. This
will be achieved through measures such as capability building
programmes to build the capacity and professionalism of sports
associations and NGOs; and
Strategy F3: Developing high-performance athletes for
global prominence through specialised training programmes,
more rigorous compliance with international standards and the
hosting of international sports events.
Strategy F1
Promoting mass sports participation

at all levels of society to instil a
sports culture
The Government will focus on strategies to make Malaysia a
sporting nation with extensive community participation in various
sports, fitness, and recreational activities. Iconic programmes such
as FitMalaysia, Sports for All League, Sports for PWD, and futsal
championships will be expanded. Public parks will be used for
recreational and community sporting events. Collaboration among
government, private sector, and NGOs in promoting and implementing

sports programmes, as well as providing and maintaining sports facilities
will be strengthened.
Strategy F2
Developing youth leadership in sports

The Government will invest in more skill enhancement programmes
to improve the professionalism of youth and leaders in sports and
sports associations. Comprehensive sports leadership programmes,
particularly in events, integrated sports management and coach education
programmes, will be enhanced to develop potential leaders in sports and
sports-related activities.
Strategy F3
Developing high-performance athletes

for global prominence
In preparation for the 2020 Olympic Games, talent identification programmes
will be conducted at schools and institutions of higher education to
identify potential athletes. Comprehensive training programmes will also
be developed and sports facilities improved. The development of highperformance athletes will be supervised by a dedicated team, consisting
of various experts. In addition, the capability of the Anti-Doping Agency
of Malaysia (ADAMAS) will be enhanced to meet international standards
and the requirements of the World Anti-Doping Agency in enforcing zero
tolerance to doping. ADAMAS will also conduct awareness and education
programmes on doping among athletes nationwide. Finally, Malaysia will
continue to host international sports events and tournaments to provide a
platform to showcase Malaysias sporting talent.

4-24
Conclusion
The Government remains committed to ensuring that all
Malaysians are able to enjoy a level of wellbeing that enables them to
live a happy, healthy and productive life. The Eleventh Plan therefore
aims to improve wellbeing through six focus areas: enabling universal
access to quality healthcare; providing adequate and quality affordable
housing; creating safer living environments; improving road safety and
emergency services; fostering social cohesion and national unity; and
increasing mass participation in sports.
The end vision is of an inclusive, caring society wherein every Malaysian
has access to quality healthcare, regardless of their socio-economic
background. Similarly, homeownership will not be a milestone
restricted to the wealthy, but one that poor, low- and middle-income
households are also able to aspire to, through an adequate supply of
affordable housing. Malaysians will feel safer in their neighbourhoods,
on the streets and in public spaces as crime prevention efforts stem
instances of violent and property crime. Sports and other physical
activities will be made accessible, making it easier to achieve a healthy
life. Most importantly, Malaysians of all backgrounds will have many
platforms to engage with one another, and to come together as one
community, united through a common goal and commitment for
nation building.
Accelerating
human capital
development
for an
advanced
nation
Overview
Highlights
Looking back
2011-2015: Progress
Creating more jobs and
maintaining full employment
Improving legislations and
institutions to transform the
labour market
Mainstreaming and
broadening access to quality
TVET programmes
Upskilling the workforce
through lifelong learning
Improving education delivery
through better access and
quality
2016-2020
Moving forward
2016-2020
Focus area A: Improving
labour market efficiency to
accelerate economic growth
Focus area B: Transforming
TVET to meet industry
demand
Focus area C: Strengthening
lifelong learning for skills
enhancement
Focus area D: Improving
the quality of education for
better student outcomes
and institutional excellence
Conclusion
5-1
Overview
Human capital development is a critical enabler for driving and sustaining
Malaysias economic growth. The availability of a skilled workforce is necessary
to support the transition of all economic sectors towards knowledge-intensive
activities, drive labour productivity gains, and attract investment into Malaysia.
Furthermore, an efficient and inclusive labour market will resolve mismatches in
workforce demand and supply, and enable all Malaysians to participate in and
benefit from the nations economic growth. Investments in education also play a
pivotal role in improving social mobility and the wellbeing of the rakyat.
During the Tenth Malaysia Plan, 2011-2015, the Government introduced a range
of measures to improve the labour market and transform its education system.
Key achievements include the creation of 1.8 million new jobs that contributed
to a decline in the unemployment rate from 3.3% in 2010 to 2.9% in 2015, which
is considered full employment. The Government also implemented a minimum
wage that is estimated to benefit 1.9 million wage earners. In education, there
was an increase in enrolment across all levels, from preschool to tertiary. Annual
intake in Technical and Vocational Education and Training (TVET) also grew from
113,000 in 2010 to 164,000 in 2013. Furthermore, major strategy documents
such as the Malaysia Education Blueprint 20132025 (Preschool to Post-Secondary
Education), the Malaysia Education Blueprint 2015-2025 (Higher Education), and
the Talent Roadmap 2020 have charted out clear transformation journeys for the
development of the human capital ecosystem.
The Eleventh Malaysia Plan, 2016-2020, will continue to push the agenda of
producing human capital that is equipped with the right knowledge, skills, and
attitudes to thrive in a globalised economy. The Government will focus on four
areas: improving the efficiency of the labour market to accelerate economic
growth, transforming TVET to meet industry demand, strengthening lifelong
learning for skills enhancement, and improving the quality of the education
system for better student outcomes and institutional excellence. The economic
agenda outlined in the Eleventh Plan is expected to create 1.5 million jobs by
2020, with targeted improvements in labour productivity and reduced
dependency on low-skilled foreign workers, both of which are a result of the
continuous shift from labour-intensive to knowledge- and innovation-based
economic activities. 60% of the jobs that will be created are expected to require
TVET-related skills. In that regard, TVET is identified as a game changer in how
Malaysia produces skilled talent at scale. Collectively, these focus areas will
produce the world-class talent base that Malaysia needs in the final leg of its
journey towards becoming an advanced nation.
5-2

8, 9, and 10 for further details
at www.epu.gov.my

Chapter 5: Accelerating human capital development for an advanced nation
5-3
Highlights
2.9%
Unemployment
rate by end
2015, with
the economy
continuing
to be in full
employment
1.8
1.9
million
million
Number of new
jobs that are
expected to be
created by end
of 2015
Number of wage
earners that have
benefited from
the minimum
wage introduced
in 2012
Creating more jobs and maintaining

full employment
55%
164,000
Female
labour force
participation
rate in 2015, an
increase from
46.8% in 2010
Intake in TVET
programmes in
2013, an increase
from 113,000
in 2010
Mainstreaming
and broadening
access to
quality TVET
programmes

1.77
million
Employees
benefited in
2014 through
the expansion
of the HRDF
Act coverage,
compared to 1.68
million in 2010
Upskilling the
workforce
through lifelong
learning
90.7%
Preschool
enrolment
in 2014, an
increase from
72.4% in 2010
55
36.5%
Number of low
Academic
performing
staff with PhD
schools
qualification in
(Band 6 and 7) public universities
in 2014, an
in 2013, an
improvement from increase from
380 in 2010
30% in 2010
5-4
155%
Increase in public
university research
citations between
2010 and 2013
Improving education delivery through

better access and quality
5-5
Looking back

Malaysia achieved remarkable gains in human
capital development during the Tenth Plan.
Notable achievements include improving labour
market institutions, mainstreaming TVET,
promoting lifelong learning, as well as improving
education system delivery. These achievements
have contributed to the growth of the economy
and strengthened Malaysias position as one of the
most competitive countries in this region.
The Tenth Malaysia Plan

advanced the human
capital development
agenda, contributing
to the growth of
the economy and
strengthening Malaysias Creating more jobs and
position as one of
maintaining full employment
the most competitive
The labour force grew at 2.8% per annum in the
countries in the region.
Tenth Plan and is expected to increase from
12.4 million in 2010 to 14.2 million in 2015. This

growth is mainly driven by an increase in the
working age population and higher female labour
force participation rate, which is expected to

increase to 55%1 in 2015 from 46.8% in 2010.
Employment grew by 2.9% contributing to a lower
unemployment rate of 2.9% in 2015, compared to
3.3% in 2010. This is the equivalent to achieving full
employment2. During the Tenth Plan, the economy
grew by 5.3% per annum and created 1.8 million
new jobs, wherein 71.5% or 1.3 million jobs were
in services and 23.6% or 431,000 jobs were in
manufacturing, as shown in Exhibit 5-1.
Improving legislations and

institutions to transform the
labour market
During the Tenth Plan, concerted efforts were
made to bring about institutional reforms in the
labour market. Labour legislations, such as the
Exhibit 5-1
Chart 5-1: Jobs creation by industry type, 2011-2015

Jobs creation by sector, 2011-2015
Thousands of jobs
1,823
(100%)
1,304
(71.5%)
431
(23.6%)
Total number
of jobs created
Services
Manufacturing
78
(4.3%)
Construction
11
(0.6%)
Agriculture
-1
(-0.1%)
Mining and
quarrying
Source: Department of Statistics Malaysia

1
2
2014 female labour force participation rate is 53.6%

Based on the definition set by the Organisation for Economic Co-operation and Development (OECD), an unemployment rate below 4%
is considered full employment.

5-6
Box 5-1
Demographic changes shaping

the workforce
Demographic transitions influence overall human
capital development in terms of both the supply
and demand of the workforce. The population was
28.6 million in 2010 and is expected to increase
to 30.5 million in 2015. However, the population
growth rate declined to 1.3% as shown in Exhibit
5-2. This was due to the decrease in the total
fertility rate1 to 2.1 in 2015, which is equivalent to
the replacement level2.
The young population (0-14 years) is expected
to decline from 7.8 million in 2010 to 7.7 million
in 2015 while the working age population (15-64
years) is expected to increase from 19.3 million to
21 million during the same period, contributing to
a demographic dividend3. The older population
(65 years and above) is expected to grow at 4.5%
per annum to reach 1.8 million in 2015.
The urban population is expected to increase from
20.3 million in 2010 to 22.7 million in 2015, with a
growth of 2.2% per annum. The rural population,
however, is expected to decline by 1.2% per
annum from 8.3 million in 2010 to 7.8 million in
2015. In 2015, the urban population is expected
to amount to 74.3% of total population, which will
lead to an increase in demand for infrastructure,
housing, education, and health facilities in urban
areas.
1
2
Exhibit 5-2
Population statistics 2010 - 2015

Million person
Population growth
Total Fertility Rate
2010
2015
28.6
30.5
2.2
2.1
Million person
% Percentage of total population
Age structure
Young
(0-14)
Working age
(15-64)
Old
(65 and above)
2010
2015
7.8
7.7
27%
25%
19.3
21.0
68%
69%
1.4
1.8
5%
6%
Total fertility rate refers to the average number of children borne by a woman during her child bearing age of 15-49 years old. In 2013, it was 2.1 and is expected to remain until 2015.
Replacement level is the level of fertility, normally 2.1 children for every woman in the child bearing age of 15-49, whereby a country experiences zero population growth. However, due to
population momentum the population will continue to register positive growth for several years.
A demographic dividend is achieved as a result of a growing population in the age cohort of 15-64 years that is active in employment, and their employment is able to cover the needs of their
dependents who are outside the labour force. Demographic dividend is measured using the declining dependency ratio which shows the number of dependents (aged 0-14 and age over 64) to the
total working age population (aged 15-64).
5-7
Employment Act, 1955, Industrial Relations Act, 1967 and Trade Unions
Act, 1959 were reviewed on a regular basis to keep pace with the
dynamics of the labour market. Furthermore, 1.9 million wage earners
benefited from the introduction of minimum wage through the Minimum
Wage Order in 2012.
Talent Corporation was established in 2011 to attract and retain the talent
needed for an advanced nation. The Talent Roadmap 2020 enunciated
strategies for Malaysia to be among the top 20 talent destinations in the
world and focused on three dimensions: optimising Malaysian talent,
attracting and retaining foreign talent and building a network of top talent.
Since its inception, Talent Corporation has successfully attracted 3,110
Malaysian professionals under the Returning Expert Programme and
approved 3,210 passes under the Residence Pass-Talent programme.
The National Institute of Human Resources was upgraded to the Institute
of Labour Market Information and Analysis (ILMIA) under Ministry of
Human Resources (MoHR) in 2012 to improve labour market information
analyses and coordinate research on labour market issues. The Labour
Market Information Data Warehouse (LMIDW) was established in 2013
to share key information such as projections of workforce supply and
demand by economic sectors and development corridors in a single
platform. The LMIDW has enabled the Government to make better
evidence-based policies, as well as improve dissemination of information
to industries, Institutions of Higher Education (IHEs)3, and other
stakeholders including international organisations.
Mainstreaming and broadening access to

quality TVET programmes
During the Tenth Plan, efforts to mainstream and broaden access to
quality TVET were carried out to address industry demand for skilled
workers and improve public perception of TVET as a career pathway.
These efforts resulted in an increased intake from 113,000 in 2010 to
164,000 in 2013.
A TVET Task force led by the Malaysian Qualifications Agency
(MQA) under Ministry of Education (MoE) and Department of Skills
Development (DSD) under MoHR was established in 2012 to coordinate
delivery and improve efficiency among different institutions. One

initiative involved the rationalisation of programmes offered by public
TVET institutions to avoid duplication as well as enhance specialisation.
In addition, the Skim Kemahiran dan Kerjaya 1Malaysia (SKK1M)
was introduced in 2012 as a platform for TVET graduates to secure
employment. 10,400 TVET graduates benefited from this scheme at the
end of 2014.
Prior to 2011, the role of the Bahagian Pengurusan Kemasukan Pelajar
(BPKP) under MoE, formerly known as Unit Pusat Universiti, was to
coordinate all applications to public universities. In 2011, its mandate
was expanded to include public TVET institutions to better reflect
student preferences and the availability of training places. Based on
existing tracer studies for IHEs and selected public TVET institutions,
a Centralised Tracer Study system was customised and expanded to
all public TVET institutions in 2013. The graduate employability data
collected through this Study enabled better coordination in reporting
programme outcomes.
22 Industry-Lead Bodies (ILB) were established under the DSD of
MoHR to align the TVET curriculum with industry requirements and
prepare the National Occupational Skills Standard (NOSS). A total of
582 NOSS and 16 Occupational Analysis were developed for reference
by TVET institutions during the Tenth Plan. The National Dual Training
System (NDTS) which provides industry-oriented workplace training
has benefited 63,000 employees since its introduction in 2004. 38,000
employees benefited during the Tenth Plan including 12,835 youth who
had newly entered the labour market.
A big shift in TVET delivery was driven by the conversion of the
existing 72 Vocational Schools and eight Technical Schools run by
the MoE into vocational colleges, as well as the setting up of eight
new colleges. These new institutions offer students the opportunity
to begin TVET education as early as 16 years and to graduate with a
diploma. From 2011 to 2014, 19,747 students enrolled, with the first
batch of 2,700 students expected to graduate in 2016. The vocational
college curriculum is also offered in partnership with other public TVET
institutions including Institut Latihan Perindustrian (ILP), under MoHR.
Institutions of Higher Education (IHEs) are defined under the Universities and Universities Colleges Act 1971 as public universities and as private universities and university colleges in the Private Higher
Educational Institutions Act 1996. Community colleges and polytechnics are TVET institutions.

5-8
The Fund was expanded to additional subsectors4, thereby increasing

The capacity of the Centre for Instructor and Advanced Skill Training
(CIAST) was expanded by establishing eight new satellite campuses.
its coverage from 1.68 million employees in 2010 to 1.77 million in 2014,
This resulted in the doubling of the number of instructors with Vocational as shown in Exhibit 5-3.
Instructor Certifications (VIC) from 1,460 in 2010 to 3,060 in 2014.
Improving education delivery through better

Upskilling the workforce through lifelong learning access and quality
Under the Tenth Plan, lifelong learning focused on skills upgrading
and continuous professional development for employees. The
provisions of the Skills Development Fund (SDF) were expanded in
2011 to offer loans to employees for skills upgrading, which benefited
3,424 employees since 2011 until 2014. In addition, skills upgrading
programmes for employees of small and medium enterprises (SME)
have benefited 32,850 employees as of 2014.
The PhD Industry Programme is an industrial based research
alternative to the conventional PhD. To date, 177 candidates from 30
industries have benefited from this full-time postgraduate programme
with candidates spending most of their research time in their respective
industry-based organisations.
The Human Resource Development Fund (HRDF) Act, 2001,
encourages employers to retrain and upgrade the skills of their
Chart 5-3: Comparison of HRDF Act Coverage between 2010 and 2014
employees, apprentices and trainees based on their business needs.
Exhibit 5-3
Comparison of HRDF Act coverage between 2010 and 2014

2010
Economic
sector
Mining and
Quarrying
2014
Subsectors
SubEmployers Employees sectors
Employers Employees
14
2,710
Manufacturing
23
6,946
920,324
23
7,009
957,172
Services
21
7,170
759,387
38
7,459
805,610
44
14,116
1,679,711
63
14,482
1,765,492
Preschool to post-secondary
The Government intensified collaboration with key stakeholders,
particularly the private sector, to provide access to quality education
for all children. This included providing grants and fee assistance for
private preschool operators, which helped increase enrolment for
children aged 4+ to 5+ from 72.4% in 2010 to 90.7% in 2014.
The Literacy and Numeracy Screening (LINUS) programme was
introduced in 2010 to ensure every child is literate and numerate
after their first three years of schooling. Between 2010 and 2012,
the programme increased Bahasa Melayu literacy from 84.9% to
99.1% and numeracy skills from 90.9% to 99.3%. In 2013, LINUS was
expanded to include English literacy, improving Year One students
English literacy from 50% to 63% within four months.
The Government identified 20 schools in 2010 as High Performing
Schools (HPS) based on stringent criteria, including academic
performance and co-curricular achievements. These schools
were given autonomy and incentives to create innovative learning
environments that maximise student potential. By 2014, the total
number of HPS had increased to 128 schools, benefiting over 100,000
students.
The Malaysia Education Blueprint 2013-2025 (Preschool to PostSecondary Education) or MEB, launched in 2013, outlines 11 shifts
(described in Box 5-2) to achieve universal enrolment from preschool
to secondary level, raise the quality of the national education system
to the top third of countries globally, halve student achievement
gaps, foster national unity and maximise the Governments return
on investment. The ultimate aim is to develop Malaysians with
Source: Human Resources Development Fund (HRDF)
There are 19 sectors under the Malaysia Standard Industrial Classification (MSIC) which comprises of 88 subsectors. Under the Eleventh Plan, the HRDF Act plans to cover all subsectors except
Construction (which will be under CIDB).
5-9
Box 5-2
The Malaysia Education Blueprint 2013-2025 (Preschool to Post-Secondary Education)

In 2013, the Government launched
the MEB, outlining a comprehensive
transformation programme for
students from preschool to postsecondary. The Blueprint evaluates
the performance of the current
system along dimensions of
access, quality, equity, unity and
efficiency, and defines 11 shifts
to raise the quality of the national
education system. These shifts are
set out in Exhibit 5-4.
The education transformation is
sequenced in three waves. Wave
1 (2013-2015) aims to turn around
the education system by raising
teacher quality and improving
student literacy. Wave 2 (20162020) focuses on accelerating
the improvement of the education
delivery system, whereas Wave 3
(2021-2025) will focus on increasing
operational flexibility to cultivate
a peer-led culture of professional
excellence. This in turn will create
a self-sustaining system that is
capable of innovating and achieving
greater heights. The Education
Performance and Delivery Unit
(PADU) was established in 2013
as a unit under the Ministry of
Education to facilitate, support, and
drive the delivery of the Blueprint.
Source: Ministry of Education
Exhibit 5-4
11 Shifts of the MEB

Provide equal access to
quality education of an
international standard
Increase transparency
for direct public
accountability
11
Maximise student
outcomes for
every ringgit
Partner with parents,

community, and
private sector at scale
10
9
Transform Ministry
delivery capabilities
and capacity
Ensure every child is proficient

in Bahasa Melayu and English
language and is encouraged to
learn an additional language
8
7 6
Leverage ICT
to scale up quality
learning across
Malaysia
Empower
JPNs, PPDs,
and schools to
customise solutions
based on need
4
Ensure highperforming
school leaders
in every school
Develop valuesdriven Malaysians
Transform teaching
into the profession
of choice

5-10
the knowledge, critical thinking skills, leadership skills, language

proficiency, ethics and spirituality, and national identity to succeed in
the 21st century.
were found to had either secured employment when the tracer study
was conducted, decided to continue further studies, or were awaiting
job placement, as shown in Exhibit 5-8.
Malaysia has continued to improve access to primary and secondary

education. The primary education enrolment rate increased from 95.7%
in 2010 to 97.9% in 2014, while the gap in enrolment rates between boys
and girls has been reduced from 1% to 0%. At the secondary level, the
enrolment rate increased from 88.1% in 2010 to 90% in 2014.
Total academic staff in public universities increased from 26,700 in

2010 to 33,140 in 2013. Additionally, total number of academic staff
with PhD qualification in public universities increased by 31.6% from
2010 to 2013, as shown in Exhibit 5-9. In 2013, four out of five Malaysian
Research Universities (MRUs), namely Universiti Malaya, Universiti
Sains Malaysia, Universiti Putra Malaysia and Universiti Teknologi
Malaysia exceeded the 50% target set for academic staff with PhD
qualification while seven out of 15 non-MRUs surpassed the 30%
target. The higher ratio of academic staff with PhDs will contribute to an
improvement in university rankings.
In 2011, the new Standard Curriculum for Primary School which

emphasised Higher Order Thinking Skills (HOTS) was introduced to
encourage students to be more critical and creative problem solvers.
The forthcoming Standard Curriculum for Secondary School places
a similar emphasis on the teaching and learning of HOTS. To support
these changes, the MoE rolled out programmes such as iThink to
train students and teachers in the use of creative thinking tools. This
emphasis on HOTS is expected to improve student outcomes in the
Programme for International Student Assessment (PISA) and Trends in
Mathematics and Science Study (TIMSS) in 2016.
Higher education
Enrolment increased across all levels of study in public universities,
private universities, and university colleges between 2010 and 2013,
as shown in Exhibit 5-5. Enrolment in PhD programmes increased by
56.3% from 2010 to 2013. At the masters level, enrolment increased
by 31.7% and enrolment for bachelor programmes surpassed the half
million mark, representing an increase of 7% from 2010 to 2013. In
addition, as shown in Exhibit 5-6, in 2013, 53.6% or 560,360 students
were enrolled in public universities and 46.4% or 484,960 students in
private universities and university colleges. In the first three years of
the Tenth Plan alone, enrolment in public universities increased by 21%,
making them the largest provider of tertiary education in the nation.
Academic performance for students in public university bachelor
programmes improved with 17.5% of total graduates attaining
Cumulative Grade Point Average (CGPA) scores of 3.49 and above
in 2013, as compared to 13.6% in 2010, as shown in Exhibit 5-7. This
represents an increase of 31.7% between 2010 and 2013. In 2013, 75.5%
of public university graduates and 73.2% of private university graduates
5
Public universities made big strides in research publications and

citations. From 2010 to 2013, total publications increased by 56% and
citations by 155%, as shown in Exhibit 5-10. A total of 4,030 patents
were filed by MRUs and 314 patents were granted between 2010 and
2013 as shown in Exhibit 5-11. Moreover total patents owned by MRUs
have also increased. In 2013, 75 products were commercialised as
compared to 36 products in 2007.
*
Despite the remarkable gains achieved during the Tenth Plan, key
challenges remain. While the number of jobs increased, most of them
were in semi-skilled occupations, which in turn contributed to relatively
low labour productivity gains. Additionally, the compensation of
employees5 to GDP is low in comparison with other middle- and highincome countries. The supply of TVET graduates both quality and
quantity is still not fully aligned with industry demand, and TVET is still
perceived by students to be a less attractive pathway. More effective
lifelong learning programmes are required to support workforce
demand for ongoing upskilling. Finally, substantial improvements on
a range of levers from the quality of teachers and academic staff, to
the governance and operations of schools and IHEs are required to
improve the performance of the education system on the dimensions of
access, quality, equity, unity, and efficiency.
Compensation of employees refer to the total remuneration (wages and salary), in cash or in kind, payable by an enterprise to an employee.
Exhibit 5-5
Enrolment by level of study in public universities, private universities and
university colleges, Number of students
2000
494,989
2005
2010
2013
530,156
394,019
325,352
310,543
230,726
188,839
3,490
33,642
8,237 21,522
25,181 33,726
PhD
63,714
83,919
Masters
Bachelor
2013
Diploma
Exhibit 5-7
Cumulative Grade Point Average (CGPA) at bachelor level in
public universities, Number of graduates
2010
2013
Exhibit 5-6
Share of enrolment in public universities, private
universities and university colleges, Percentage
Public Universities
162,222
Private Universities
54%
32,087 31,695
46%
21,485 20,848
2010
45%
55%
2005
54%
46%
2000
51%
49%
8,924
3,300 2,976
<2.49
2.50-2.99
3.00-3.49
11,757
>3.49
CGPA
Exhibit 5-8
Results of graduates employability tracer studies1 in 2013
Employed
Public
universities
Private
universities
1The
43.9%
50.3%
Further Studies
23.1%
18.8%
Awaiting Job Placement
8.5%
4.1%
24.5%
26.8%
Job Hunting
100%
100%
Graduate Employability Tracer Study is an annual survey done by MoE to understand the status of employment for graduates within three to six months of graduation. Graduate status is classified into four categories: employed
(including self-employed), further study (including upskilling), awaiting job placement and job hunting
Exhibit 5-9
Number of academic staff in public universities
by qualification
16,420
2010
2013
Exhibit 5-10
Number of citations and publications from research
done by public universities
120,035
17,340
4,318
PhD
Masters
3,422
Bachelor
47,106
Citations
9,199
Publications
12,104
24,260
15,511
Qualifications
2010
2013
2010
2013
Exhibit 5-11
Number of patents applied, granted and owned by Malaysian Research Universities
200
Patents
applied
Patents
granted
Patents
owned
36
546
75
76
523
622
4,344
2004-2006
2007-2009
2010-2013
236
2001-2003
4,030
448
314

Improving labour market
efficiency to accelerate
economic growth
Improving labour productivity
and wages through the shift
to high skilled jobs
Enhancing labour market
operations to maximise
efficiency and effectiveness
Improving management of
foreign workers
Improving the quality of

education for better student
outcomes and institutional
excellence
Enhancing access and quality to improve
student outcomes
Enhancing governance and stakeholder
partnerships for better school support
Raising the quality of graduates and programmes,
and strengthening research for innovation
Strengthening IHE governance and financial
sustainability towards institutional excellence
Transforming TVET to
meet industry demand
Strengthening the governance of
TVET for better management
Enhancing quality and delivery of
TVET programmes to improve
graduate employability
Rebranding TVET to increase
its attractiveness
Strengthening lifelong
learning for skills
enhancement
Improving effectiveness of
programmes to meet
learning needs
Improving regulatory and funding
support to broaden access
SELECTED OUTCOMES
Improving
labour market
efficiency to
accelerate
economic growth
3.7%
Per annum labour
productivity target
in the Eleventh Plan,
compared with 2.6%
in the Tenth Plan
Transforming
TVET to meet
industry demand
225,000
Intake of SPM leavers
to TVET programmes;
an increase from
164,000 in 2013
Strengthening
lifelong learning
for skills
enhancement
Improving the quality

of education for better
student outcomes and
institutional excellence
58%
Increase in number of
employees that will benefit
from expansion of the
HRDF Act; from 1.77 million
employees in 2014 to 2.8
million in 2020
Malaysia aims to be at least

on par with the international
average in PISA and TIMSS
assessments
TOP
100
40%
Compensation of
employees to GDP in
2020; an increase
from 33.6% in 2013
RM
2,500
Monthly median
wage in 2020;
an increase
from RM1,575
in 2014
100%
Student enrolment
from preschool to
upper secondary
2 universities
in Top 100 of
the QS World
University
Rankings
5-15
Moving forward
The Eleventh Malaysia

Plan will produce a
fundamental shift in how
the system currently
operates in order to
develop world-class
talent that can thrive in
a globally competitive
economy.
Malaysia aspires to become an advanced and

inclusive nation by 2020. To realise this, Malaysia
will require human capital with the knowledge
and skills, as well as ethics and morality, to drive
inclusive and sustainable economic growth. The
initiatives under the Eleventh Plan are projected
to generate approximately 1.5 million new jobs by
2020, of which 60% require TVET-related skills.
Accordingly, the Government will invest in four
focus areas:
Focus area A: Improving labour market
efficiency to accelerate economic growth
Focus area B: Transforming TVET to meet
industry demand
Focus area C: Strengthening lifelong learning
for skills enhancement
Focus area D: Improving the quality of
education for better student outcomes and
Collectively, the changes arising from these focus

areas will produce a fundamental shift in how the
system currently operates. Labour market policies
will focus on improving labour productivity. The
existing workforce will move from a world where
learning only happens during ones youth, to
one where every person has the opportunity to
continuously enrich and develop themselves.
TVET will shift from being government-driven to
one that enables industry-led programmes and
interventions. Above all, the quality of education
will be raised to develop talent with both the
knowledge and skills, and ethics and morality, to
thrive in a globally competitive and ever- changing
world. Eight headline outcome targets have been
set as a benchmark of success. These targets will
constantly be tracked and monitored to evaluate
their progress.
To drive the human capital development agenda
during the Eleventh Plan, the Government will
establish a high-powered National Human
Capital Development Council (NHCDC). The
Council will not only be composed of Ministers
and implementers from relevant agencies, but
also major private sector players and industry
representatives. The Council is similar to the
existing Economic Council and will set overall
human capital development policy direction,
determine initiative priorities, and integrate
action across public, private, and social sector
stakeholders.

5-16
Focus area A
Improving labour market efficiency to accelerate economic

growth
An efficient and flexible labour market is critical to ensure that the

supply of talent matches industry demand, minimise underutilisation of
skills, and enable inclusive and sustainable growth. On that account,
the Government aims to improve the efficiency and operations of the
labour market. To achieve this, three strategies will be implemented:
Strategy A1: Improving labour productivity and wages through
the shift to high-skilled jobs. Key measures include the wider
adoption of the Productivity Linked Wage System (PLWS), the shift
from low- to high-skilled jobs, and the reduction of existing wage
gaps;
nations workforce and economy. Labour productivity is targeted to

grow at 3.7% per annum by the end of the Eleventh Plan, compared
with 2.3% during the Tenth Plan. The services and manufacturing
sectors are targeted to register the highest productivity growth at 4.1%
and 3.0% respectively. To complement this growth, the Government
will further encourage the implementation of performance-related pay
schemes through wider industry implementation of the PLWS. PLWS
ensures that wage increases commensurate with higher productivity,
thus enhancing competitiveness at the firm level. By the end of
the Eleventh Plan, 85,000 employers are expected to adopt PLWS
compared with 76,000 in 2013, which will benefit about 3.7 million
employees. In addition, continuous upskilling and reskilling of the
existing workforce will contribute to productivity growth.
Strategy A2: Enhancing labour market operations to maximise

efficiency and effectiveness. Measures include regulatory
reform, more integrated information to enhance decision making,
Creating more high-skilled jobs
closer integration with industry, and targeted programmes for youth Skilled workers are projected to comprise 35% of the workforce by
and women; and
2020, as shown in Exhibit 5-12. Existing industries will be encouraged
to move up the value chain by investing in high value added activities
Strategy A3: Improving management of foreign workers by
that require skilled workers. Additionally, the Government will be
reducing the nations reliance on low-skilled foreign workers and
more selective in attracting new investments, favouring those with
streamlining recruitment as well as immigration processes.
knowledge-intensive activities.
Reducing wage gaps to improve equity

The Government aims to increase the compensation of employees to
GDP from 33.6% in 2013 to 40% in 2020, to be on the same level as
other middle- and high-income countries. Compensation of employees
is expected to increase following greater compliance with minimum
wage requirements, upward revisions in minimum wages linked to
Improving labour productivity
improved productivity, and enhanced recognition of prior learning
6
Labour productivity refers to the amount of output produced per worker (RPL). The recognition of technologists as professionals through the
establishment of the Malaysia Board of Technologists (MBOT) will
and is an important measure of the effectiveness and efficiency of the
Strategy A1
Improving labour productivity and wages

through the shift to high-skilled jobs
The Ministry of Science, Technology and Innovation (MOSTI) defines technologists as TVET graduates and practitioners with a minimum degree in engineering technology and technicians with a minimum
diploma qualification.
5-17
also improve wages of TVET graduates. MBOT will serve

as a statutory body to regulate, promote, and develop the
technologist profession in Malaysia. These measures are
expected to contribute to an increase in the monthly median
wage from RM1,575 in 2014 to RM2,500 in 2020.
Introducing wage index as a guide for fair and

transparent compensation
The Government will establish a National Wage Index (NWI)
that will serve as a guide and benchmark for employers in
determining the right wage level for employees that is in
accordance with their qualifications, skills, and productivity.
The NWI will be developed by the MoHR in collaboration with
related government agencies, and will rely on consolidated
wage data from multiple sources.
Strategy A2
Enhancing labour market

operations to maximise efficiency
and effectiveness
Improving labour market information for
informed decision-making
The LMIDW will be updated to include more demand-based
information such as job openings, employment projections,
and salaries to provide better insights into the demands of
industry. The functionality and user friendliness of LMIDW
will also be enhanced. For example, users will be able to
generate in-depth and visual analytics of the labour market
from the data. These enhancements will provide insightful
analysis of labour market trends and emerging human capital issues, which will in
turn enable better human capital planning and effective policy formulation.
Minimising mismatch in the labour market

An Industry Skills Committee (ISC) will be established to serve as a platform for
coordinated engagement of industry players, so as to gather information on the
requirements of industry. The Committee will be jointly chaired by the Ministry
of International Trade and Industry (MITI) and a reputable industry captain. To
support the ISC, Industry Working Groups (IWG) will be established to identify
specific human capital requirements beginning with 11 economic sectors. The
Critical Skills Gap Committee under the joint purview of Talent Corporation and
ILMIA will also be established to assist the ISC in identifying critical skills gaps,
particularly in strategic sectors, for future human capital planning.
Industry Centres of Excellence (ICoE) and Academia-Industry Graduate
Development Centres (AIGDC) in universities will also help address mismatches
in the labour market. Lessons from ICoEs and AIGDCs collaboration with
Exhibit 5-12
1
Chart
Employment
major
1 occupational groups , 2015 2020
, 2015 2020
Jobs5-12:
by skills
categoryby
group
Skilled
Jobs
Created, '000
Semi-skilled
Low-skilled
16,000
15,292
13,781
12,000
1,493
397
-379
+1,511
Jobs to be
created
5,352
(35%)
3,859
(28%)
8,000
8,531
(62%)
8,927
(58%)
4,000
1,013
(7%)
1,392
(10%)
20152
Skilled
Semi-skilled
Low-skilled
20202
1.The
three major occupational groups are skilled workers, semi-skilled and low-skilled. Skilled workers comprise managers, professionals and technicians and associate professionals.
Semi-skilled workers comprise clerical support workers, service and sales workers, skilled agricultural, forestry and fishery workers, craft and related trade workers, and plant and
machine operators and assemblers. Low skilled workers comprise elementary occupations.
2 2015 figures are an estimation while 2020 are forecasted

industry will be used for the development of industry-relevant curricula.

Currently, there are 10 ICoEs that focus on strategic sectors such as
automotive, biotechnology and health services.
Addressing youth unemployment
5-18
Strategy A3
Improving management of foreign

workers
Although youth unemployment remains lower than ASEAN and world

averages, the Government will continue to ensure all youth have access
to training opportunities before joining the labour market. Youth in
the labour market will also be given opportunities for upskilling, to
equip them with better skills, and enable them to command higher
salaries. Youth of schooling age, particularly those in upper secondary,
will be encouraged to complete tertiary education before joining the
labour force. Efforts to prepare youth for employment and secure job
placements will be intensified through programmes such as SKK1M,
NDTS and 1Malaysia Skills Training and Enhancement for the Rakyat
(1MASTER).
Reducing reliance on low-skilled foreign workers
Raising female participation to increase inclusiveness
The levy system will also be improved to better regulate the entry of
low-skilled foreign workers. This levy will be borne by employers and
based on the ratio of foreign workers to total workers in a firm and the
duration of employment. The levy will be increased gradually over time
to increase its effectiveness.
Female participation in the labour market will be further increased

through more family-friendly employment strategies. These
include providing better access to quality childcare facilities,
flexible working hours, work-from-home options, and employment
re-entry opportunities. For example, the Government will widen
access to jobs through the 1Malaysia Support for Housewives and
Flexiworklife programmes. Women will also be encouraged to become
entrepreneurs through programmes such as Azam Niaga, Women
Entrepreneurial Incubator, and 1Nita.
Enhancing legislation to meet labour market

requirements
The MoHR will amend labour-related legislation such as the
Employment Act, 1955, Trade Unions Act, 1959, and the Industrial
Relations Act, 1967. These amendments will address the rigidity of
existing dismissal processes, resolve overlapping and contradicting
provisions, as well as increase flexibility in working hours and
registration of trade union membership.
A comprehensive immigration and employment policy for foreign workers

will be formulated, taking into account the requirements of industry and
the welfare of foreign workers. Heavy reliance on low-skilled foreign
workers, particularly in labour-intensive activities will be addressed
holistically. The proportion of foreign workers in the workforce is capped
at 15% of total workforce in 2020. Greater automation especially in
labour-intensive activities, as well as migration to knowledge-intensive
activities will be encouraged in all sectors of the economy, particularly in
the agriculture, manufacturing, and construction sectors, which currently
employ more than 30% of foreign workers.
Streamlining the recruitment process for foreign workers

The Government will streamline the recruitment of foreign workers by
placing it under a single administration. The MoHR will assume the lead
role in policy-making for foreign worker management. The Government
will streamline recruitment processes at the One-stop Centre (OSC). The
OSC will be responsible for determining the requirement of foreign workers
by sector; verifying and approving applications for recruitment of foreign
workers; monitoring and responding to all matters related to the welfare
of foreign workers; and ensuring that foreign workers are employed in the
approved sectors and firms. With the streamlining of OSC operations, the
role of outsourcing companies and intermediaries will be eliminated.
The Government will introduce the strict liability concept whereby
employers of foreign workers are fully responsible for their recruitment
process and welfare. In addition, the Government will address the issue
of illegal foreign workers through better management and effective
enforcement initiatives.
5-19
Focus area B
Transforming TVET to meet industry demand

60% of jobs that will be created during the Eleventh Plan are projected
to require TVET-related skills, thereby making TVET the most important
avenue for increasing Malaysias skilled human capital base. The
Government will therefore intensify collaboration with industry to
increase intake in TVET, improve the quality of programmes and
institutions, and improve the sectors overall branding and profile.
Collectively, these advancements will produce sufficiently skilled
graduates and make TVET a pathway of choice. These outcomes will
be realised through three strategies:
new system will accredit TVET programmes offered by both public and
private TVET institutions based on the revised Malaysian Qualification
Framework (MQF) set out in Exhibit 5-13. This in turn will allow mobility of
students between and among all TVET institutions.
Harmonising TVET institution rating systems to improve

comparability
The Government will harmonise the various rating systems across private
and public TVET institutions into a single system. This includes rating
Strategy B1: Strengthening the governance of TVET for better systems such as the star rating system adopted by DSD for private TVET
management, through the streamlining of the national qualification institutions, as well as the Polytechnic Rating System (PolyRate) and
Sistem Penarafan Kolej Komuniti (MySpeKK) for public TVET institutions.
framework, and harmonising of various rating systems across both
This unified system will rate the quality of institutions and programmes
private and public TVET institutions;
based on outcome indicators such as graduate employability and industry
Strategy B2: Enhancing quality and delivery of TVET
engagement. Institutions performance on this rating system will be one of
programmes to improve graduate employability, by enabling
the factors used to determine allocation of funds for institutions.
industries to lead curriculum development, eliminating the
duplication of programmes and resources, enhancing cost
efficiency, and increasing enrolment; and
Strategy B3: Rebranding TVET to increase its attractiveness.
This will be achieved through promotional activities highlighting
TVET as an attractive career choice.
Strategy B1
Strengthening the governance of TVET

for better management
Establishing a single system for accreditation
The current fragmented TVET sector will be consolidated through the
establishment of a single system adopted by both MQA and DSD to
facilitate better coordination and monitoring of the TVET sector. The
Strategy B2
Enhancing quality and delivery of TVET

programmes to improve graduate
employability
Enabling industry-led programmes to reduce skills mismatch
The ISC, in collaboration with industry players, will identify relevant
competencies for each sector and sub-sector. New partnership models
will enable industries to get involved at every step of the value chain,
particularly in the design and delivery of the curriculum, to ensure it is more
hands-on and up-to-date. This could include apprenticeships, internships,
and work-based learning programmes. Problem, Project, Production
learning modules which engage students in authentic, real world tasks
intended to simulate actual workplace situations, will also be embedded in
the curriculum to better prepare students for the working environment.

5-20
Mainstreaming the National Dual Training System (NDTS)

A concerted effort will be made to mainstream the NDTS to produce skilled TVET
graduates demanded by industry. NDTS offers employees workplace-based
training wherein 70% of the training takes place at the company and 30% at
TVET institutions. The 1MASTER NDTS programme will be further expanded to
support specific economic development areas and industry needs. For example,
a 1MASTER NDTS programme was established to specifically address the human
capital needs of the Iskandar Malaysia development corridor. A special NDTS
for youth who have dropped out of the education system will also be expanded
to provide training and certification that will enable them to secure better job
opportunities. The NDTS will be expanded to involve more public and private
institutions, and will also encourage increased participation from industry.
Eliminating low-impact and overlapping programmes

Low-impact programmes that are not in demand by industry and that yield low
graduate employability will be eliminated. The existing centralised system for
tracer studies for public institutions will be upgraded and expanded to private
institutions to enable comparisons of graduate employability. On top of these,
more industry engagement in the form of scheduled dialogues will be conducted
for continuous programme assessment and validation. Overlapping programmes
among public institutions will be reduced by encouraging them to specialise
and create Centres of Excellence in niche areas of expertise in order to optimise
resources and produce better student outcomes.
Exhibit 5-13
Box 5-3
Problem/Project/Production-based
learning
Global economic challenges, rapid technology
evolution, and the growth of the knowledge economy
demand new ways of teaching and learning in order
to produce talent with industry-valued skills such as
creative and innovative problem solving. It will also be
important to develop talent with a love of learning so
that they will continuously seek out opportunities to
improve themselves.
Problem/Project/Production based learning is an
example of an innovative instructional approach
in a Student-Centred Learning (SCL) environment
that provides flexible guidance through problem
solving, project work, and real life industrial activities
(production). This model has been implemented in top
universities across the world, such as University of
Cologne-Germany, University of Aalborg-Denmark,
University of Victoria-Australia, University of StanfordUSA, and University of Manchester-UK.
The revised
Malaysian
Qualification
Framework
Chart
13: Revised
Malaysian
Qualification
Framework
Accreditation
Malaysian Qualification
Framework
TVET
ACADEMIC
L8
Doctoral Degree
L7
Masters Degree
L6
Bachelor Degree
L5
L4
L3
L2
L1
Advanced Diploma
Diploma
Certificate Level 3
Certificate Level 2
Certificate Level 1
Doctoral Degree
Masters Degree
Postgraduate Diploma & Certificate
Bachelor Degree
Graduate Diploma & Certificate
Advanced Diploma
Diploma
Certificate
Single and Independent Quality Assurance
Problem / Project / Production

Based Learning
Exploring the
problem to
acquire and
enhance
knowledge,
skills and
attitudes
Applying range
of knowledge,
skills and
attitudes to
solve problems
through
projects
Experiencing
real life
industrial
activities
using multidisciplinary
knowledge,
skills and
attitudes
PROBLEM
PROJECT
PRODUCTION
Source: German-Malaysian Institute
5-21
Game Changer
Enabling Industry-led Technical and Vocational Education

and Training
Why is TVET important for Malaysia?
Under the Eleventh Plan, 60% of the 1.5 million jobs
that will be created will require TVET-related skills.
Meeting this demand will require Malaysia to increase
its annual intake gradually from 164,000 in 2013 to
225,000 in 2020. Yet, the challenge is not merely
about numbers. Industry feedback consistently
reveals a disconnect between the knowledge, skills,
and attitudes these graduates possess, and what is
required in the workplace.
It will not be easy to resolve these quality and
quantity concerns The Malaysian TVET landscape is
fragmented, with more than 1,000 public and private
TVET institutions offering similar programmes of
varying standards. Collaboration between industry
and TVET providers rarely reaches the breadth and
depth necessary to develop high quality programmes.
Furthermore, TVET is still perceived as an unattractive
pathway by many students.
Industry and TVET providers collaborate across the entire value chain from
student recruitment, through to curriculum design, delivery, and job placement;
and
Students are well-informed of the opportunities that TVET can offer and
view TVET as an attractive pathway. Students also have access to a variety
of innovative, industry-led programmes that better prepares them for the
workplace.

Achieving these aspirations will require harmonising and streamlining how the
system currently operates to reduce fragmentation across the various public and
private stakeholders. Furthermore, efforts will be made to encourage industry-led
interventions and programmes as they are the stakeholders best placed to ensure
that the supply of graduates meet their requirements. A summary of the major
shifts that will be undertaken are set out on the right.
The strategy canvas below highlights areas that should be eliminated, reduced,
raised or created for this game changer.
Strategy canvas: Technical and vocational education and training
This litany of challenges can be daunting. Therefore,

getting the transformation right is more critical than
ever as Malaysia enters the last leg of its journey
towards Vision 2020.
High
Low
Eleventh
Plan
As-Is
Eliminate
Supply matches demand, and there are robust

quality control mechanisms which ensure that
all public and private institutions meet quality
standards;
Reduce
Low priority
investments
in new
infrastructure
An effective and efficient TVET sector is one where:

Low impact
programmes
Raise
Create
Funding for
TVET
Overlapping
programmes
TVET as
career of
choice
Instructors
competencies
Malaysia Board of
Technologist
(MBOT)
Industry-led
curriculum
Single rating
system for
TVET
Standardised
TVET
accreditation
Industry
Skills
Committee

5-22
Profile
Capacity
Programme delivery
Governance
Optimising resources for better return on investment
From
To
2 Accreditation
Agencies (MQA and
DSD) with different
sets of qualifications
Single qualification
system adopted by
both MQA and DSD
Different quality
rating systems for
public and private
TVET institutions,
depending on which
Ministry the institution
is registered with
Design and delivery

of curriculum led
by individual TVET
institutions or
Government
No specialisation
among TVET
institutions
Single rating system

for both public
and private TVET
institutions
Design and delivery

of curriculum led
by industry, in
partnership with
TVET institutions
and Government
Institutions to
specialise in and
create Centre of
Excellence in niche
areas of expertise
164,000 intake per

annum in 2013
225,000 intake per

annum in 2020, by
maximising use of
existing institutions
Limited recognition
and low premium
Career of choice
for students
The Government will prioritise improving existing institutions rather than investing
in new ones. Similarly, the Government will prioritise buying places from quality
private institutions rather than creating new programmes, and will rationalise poor
performing institutions. This could be done, for example, by merging them with
high performing institutions. Public and private TVET providers will be encouraged
to share facilities, faculty and best practices, and to deliver their programmes in as
cost-efficient a manner as possible.
Linking funding to demand and performance

The SDF will continue to provide funding for students who pursue TVET
programmes that are highly demanded by industry and delivered by TVET
institutions with good performance ratings. The existing SDF loan mechanism for
employee upskilling and reskilling will also be revamped to increase the number of
recipients through a cost-sharing arrangement with industry. Fees in public TVET
institutions will be standardised based on the type and level of programme.
Developing high quality instructors to improve delivery

Professional development programmes for instructors will be improved by
incorporating more industrial training and attachment programmes. A centralised
repository of instructor profiles will be established to identify competency gaps
and enable the development of an effective training roadmap. Besides these, more
industry experts including retired industry practitioners will be encouraged to serve
as TVET instructors through the provision of attractive remuneration packages.
Strategy B3
Rebranding TVET to increase its attractiveness

Promoting TVET as a pathway of choice
SkillsMalaysia will drive a series of targeted media campaigns to educate students
and families on the attractive career and entrepreneurship opportunities that TVET
programmes can offer. Such promotional efforts will offer students meaningful
career guidance and showcase success stories. The MySkills Competition and
International Skills Competition for TVET students will also be used as platforms to
boost the image of TVET.
Recognising technologists as professionals

MBOT will determine and govern the ethics and conduct of the profession as well as
provide guidance and professional development programmes for career advancement.
Through these activities, MBOT will elevate the role and recognition of technologists.
5-23
Focus area C
Strengthening lifelong learning for skills enhancement

Lifelong learning (LLL) is essential in enabling Malaysians to
continuously reskill and upskill themselves to meet the ever changing
demands of the labour market. It involves Malaysians 15 years old and
above, who have dropped out of formal education and, those who
are currently employed, unemployed, or retired, as shown in Exhibit
5-15. The Government will widen access to LLL and raise the quality of
existing programmes, with the goal of making LLL a way of life for all
Malaysians. These aspirations will be achieved through two strategies:
Strategy C1: Improving effectiveness of programmes to meet

learning needs, by increasing the use of industry-based training
programmes, streamlining community-based programmes, and
introducing entrepreneurship training in high-value economic
sectors; and
Strategy C2: Improving regulatory and funding support to
broaden access through the enhancement of existing frameworks
for recognising prior learning, and expanded HRDF support for new
sectors and target groups.
Chart 15: Lifelong Learning Concept
Exhibit 5-15
Lifelong learning concept
Formal education system
Ages
46
Preschool
Labour market
7 - 17
18 - 23+
Primary and
secondary
education
Tertiary Education
University
University college
College
TVET institutions
Dropout from education

system (15 years and above)
23+
Professional
working life
Retirees/
Second career
Individual inside/outside the labour

market
Eleventh Plan: Lifelong learning

Lifelong learning refers to Malaysians learning from cradle to grave. It encompasses the entire lifetime of the individual, from early childhood care and
education to post-retirement.
The Eleventh Plan focuses on Malaysians 15 years old and above, who have dropped out of formal education, and those who are currently employed,
unemployed, or retired.
Lifelong learning refers to Malaysians learning from cradle to grave. It encompasses

the entire lifetime of the individual, from early childhood care and education to post-

Strategy C1
5-24
Strategy C2
Improving effectiveness of programmes Improving regulatory and funding

to meet learning needs
support to broaden access
Enhancing industry-based programmes to upskill
employees
Expanding Human Resources Development Fund

(HRDF) Act coverage
Industry-based upskilling programmes will be strengthened to

upgrade the skills of existing employees. For example, the CIDB and
the Malaysian Automotive Institute (MAI) will initiate industry-based
training in the construction and automotive industries. The Malaysian
Meister Programme (MMP), which is adapted from the German-Meister
Programme, will be introduced to provide skills enhancement training for
experienced employees.
The coverage of the HRDF Act, 2001, will be expanded to include

more subsectors under the services and agriculture sectors. This
will increase the number of employees that will be eligible for training
under HRDF from 1.77 million in 2014 to 2.8 million in 2020 which is
an increase of 58%. HRDF will also collaborate with SME Corp to
provide training to SMEs not covered under the HRDF Act. 50,000 SME
employees are projected to benefit from these training programmes.
Developing entrepreneurs for high-income economic

sectors
Recognising experiential/prior learning
Agencies such as Institut Keusahawanan Negara (INSKEN),

Majlis Amanah Rakyat (MARA), and Malaysian Global Innovation
and Creativity Centre (MaGIC) will strengthen entrepreneurship
related training programmes for high-income economic sectors in
collaboration with industry. MaGIC, through its Go2Market programme
in partnership with the Stanford Graduate School of Business will help
innovators incubate and set up successful businesses. Additionally, the
Government will nurture an entrepreneurial spirit in youth from an early
age, through the formal curriculum in schools, IHEs, TVET institutions,
as well as through extracurricular activities.
Enriching communities through LLL

A task force headed by the Department of Community College will be
formed to enhance LLL curricula, reduce redundancies, and optimise
resources at the community level. The enhanced curricula will
emphasise industry relevant skills as well as inculcate positive values.
The portfolio of programmes offered by relevant agencies will be
reviewed to ensure relevance to the specific needs of the community it
serves, with training being delivered in existing facilities.
The Recognition of Prior Learning (RPL) programme under the DSD

and Accreditation of Prior Experiential Learning (APEL) under the MQA
will be enhanced to make it easier for employees to continue their
education. The RPL is a programme designed to recognise employees
experience and expertise for certification. The APEL enables
knowledge and skills acquired through formal education and working
experience to count towards the completion of their studies in IHEs.
In addition, the Government will encourage higher enrolment into the
MyPhD-Industry programme.
Supporting pre-employment training through the Future

Workers Training scheme
The Future Workers Training (FWT) Scheme will be established under
the HRDF to promote pre-employment training focusing on emerging
technologies. Existing pre-employment training programmes, such as
the Industrial Skills Enhancement Programme (INSEP) and the Workers
Technical Transformation Programme (WTTP) will be consolidated as
part of the FWT Scheme.
5-25
Focus area D
Improving the quality of education for better student

outcomes and institutional excellence
The education system plays a crucial role in supplying Malaysia with
world class talent as it is the primary factor for the development of
knowledge, skills, and attitudes during ones youth. The Government
aims to produce future leaders with the knowledge and skills, and
ethics and morality, that will propel Malaysia to even greater heights.
This aim will be realised through an integrated approach that includes
improving the quality of teachers and academic staff, earned autonomy
for IHEs and schools, and a more efficient use of public resources. Four
strategies have been identified:
Preschool to post-secondary
Higher education:
Strategy D3: Raising the quality of graduates and
programmes, and strengthening research for innovation,
through measures such as embedding soft and entrepreneurial
skills in the curriculum; collaborating with industry in the design
and delivery of programmes; enhancing the quality of research;
strengthening the role of IHEs as a conduit for innovation and
as solution providers to industry and community; and launching
massive open online courses (MOOCs) in niche areas of expertise;
and
Strategy D1: Enhancing access and quality to improve student

Strategy D4: Strengthening IHE governance and financial
outcomes through a range of measures such as better quality early
sustainability towards institutional excellence. Measures
childhood care and education (ECCE), professional development
include empowering public universities through earned autonomy
of teachers and school leaders, and the provision of different
within the regulatory framework, linking government funding to
schooling models to meet the needs of specific student groups;
performance and encouraging public universities to diversify their
funding sources.
Strategy D2: Enhancing governance and stakeholder
partnerships for better school support by empowering Jabatan
Pendidikan Negeri (JPN) and Pejabat Pendidikan Daerah (PPD)
to provide more instructional support to schools, and engaging
the community and private sector as partners in the education
transformation journey;

Box 5-4
Transformed
HE Delivery
10
Globalised
Online Learning
ab l e r s
Learned
Values-Driven
Talent
Innovation
Ecosystem
Talent
Excellence
es
t c om
Global
Prominence
Holistic, Entrepreneurial,
and Balanced Graduates
Ou
In 2015, the Government

launched the Malaysia Education
Blueprint 2015-2025 (Higher
Education) or MEB (HE), outlining
a comprehensive transformation
programme for the higher
education system. As with the
MEB, the Government aims to
improve system outcomes on the
dimensions of access, quality,
equity, unity, and efficiency. From
a student outcome perspective,
the vision is to develop holistic,
entrepreneurial, and balanced
graduates with the relevant
knowledge and skills (ilmu), and
ethics and morality (akhlak) to meet
the needs of Malaysias growing
economy and to be competitive
internationally.
Exhibit 5-16
10 Shifts of the MEB (HE)
En
Malaysia Education Blueprint

2015-2025 (Higher Education)
7
6
Empowered
Governance
Nation of
Lifelong
Learners
Quality TVET
Graduates
Financial
To achieve these system and student
Sustainability
aspirations, the MEB (HE) outlines
10 shifts that will spur continued
The implementation of the MEB (HE) will result in major shifts in the way the higher education
excellence. The first four Shifts
system operates, as shown below:
focus on talent outcomes for key
Mass
Separation of
stakeholders in the higher education
Focus on
Reliance
Job
Focus on
Highly
production
private and
From
university
on
government
system. The other six shifts focus
seekers
inputs
centralised
delivery
public
education
resources
model
institutions
on enablers, covering critical
components of higher education
such as funding, innovation,
All stakeholders
TechnologyJob creators
Academic and
A model of
have shared
enabled
Harmonised
and balanced
governance, online learning, global
Focus on
TVET pathways
earned
responsibility
innovations
Higher Learning
citizens with
To
outcomes
equally valued
autonomy
for higher
to deliver and
prominence, and delivery.
Institutions
entrepreneurial
mindsets
and cultivated
for institutions
education
resources
tailor education
for all students
5-26
5-27
Strategy D1
Enhancing access and quality to

improve student outcomes
Improving the quality of early childhood care and
education (ECCE)
The Government will improve the quality of teachers and caregivers
through specialised training programmes, as well as require all
teachers working in public preschools to have a minimum diploma level
qualification. Measures to ensure the affordability of and accessibility
to childcare centres will be explored by Jabatan Kebajikan Masyarakat
(JKM) as the lead agency for ECCE. This includes collaborating with
other private and public organisations to promote the establishment
of more childcare centres at the workplace. The Government will also
expand performance monitoring mechanisms to all preschools, and
identify gifted and talented children through the PERMATA programme
to enable their potential to be nurtured as early as possible.
Enhancing the curriculum to build 21st century skills

The school curriculum will embed knowledge, skills, and values
that are relevant to the 21st century. Students will be proficient in
Bahasa Melayu and English, and be encouraged to learn a third
language. Teachers will embed HOTS in their lessons to develop
critical, creative,and innovative thinkers. STEM (science, technology,
engineering, and mathematics) education will continue to be reinforced
through enquiry-based and hands-on learning opportunities.
Participation in the TIMSS assessment will be extended to primary
school students to provide a basis for earlier interventions.
Using online learning to widen access and improve

teaching and learning
The MoE will strengthen the use of the 1BestariNet Virtual Learning
Environment (VLE) platform in schools. A digital content development
roadmap will be formulated to ensure that more resources are
developed from digital textbooks to adaptive learning programmes
to support online learning and supplement the existing 24,000
resources. The MoE will use these resources to deliver virtual lessons
and offer more personalised learning opportunities to students. These
resources will be particularly useful for students in under-enrolled

rural schools and gifted students. The MoE will collaborate with the
Malaysian Communications and Multimedia Commission (MCMC) to
achieve these aims.
Improving professional development programmes for

teachers and school leaders
A comprehensive, competency-based professional development
programme will be rolled out for in-service teachers and school leaders.
These programmes will be delivered by a pool of skilled master trainers
and conducted in selected institutes of teacher education (ITE) and
Pusat Latihan Guru dalam Perkhidmatan (PLGDP), based on teacher
and school needs. In addition, each PLGDP will specialise in specific
topics: STEM for PLGDP Northern Zone, educational technology for
PLGDP Central Zone, language and LLL for PLGDP Eastern Zone, and
social science and humanities for PLGDP Southern Zone. This means
that each selected ITE and PLGDP will focus on training, research,
development, and innovation activities in their niche areas of expertise.
The quality of ITE lecturers and the pre-service teacher training
curriculum will also be continuously enhanced.
Providing schooling options for different student

groups
The Government is committed to providing a range of national
schooling options that meets the needs of different student groups.
The K9 school concept, which offers primary and lower secondary
education under one roof, will be expanded to improve enrolment,
especially among Orang Asli children. The K9 school curriculum will
also emphasise the teaching and learning of the Integrated Living
Skills subject and Basic Vocational Education. More schools will be
equipped with facilities to cater for students with special education
needs. To cater to rising demand for religious education, the religious
stream classes or Kelas Aliran Agama (KAA) will be expanded in
primary and secondary schools. The number of registered Sekolah
Agama Bantuan Kerajaan (SABK) will also be increased, with a target of
registering at least 10 private and state religious schools every year over
the next five years.

5-28
Strategy D2
Strategy D3
Enhancing governance and

stakeholder partnerships for better
school support
Raising the quality of graduates and

programmes, and strengthening
research for innovation
Reducing centralised administration of schools by

empowering JPN and PPD
Developing holistic, entrepreneurial, and balanced

graduates
The Government will empower the Jabatan Pendidikan Negeri (JPN)

or State Education Department and Pejabat Pendidikan Daerah
(PPD) or District Education Office by devolving greater decision
making rights to them. JPNs will focus on planning and coordinating
curriculum implementation, and providing a shared service centre
focused on administrative operations to PPDs. PPDs will provide
limited administrative support to schools, focusing instead on providing
instructional support to teachers and principals. PPDs will coach,
mentor, and monitor performance regularly to ensure that all schools
move up to better bands and no school remains in Band 6 or 7.
Entrepreneurial skills will be embedded across the curriculum to instil

a job creator mindset in all graduates. Public universities will be
encouraged to increase the practical component in entrepreneurship
courses, introduce entrepreneurship minors in academic programmes,
and emphasise entrepreneurship education for students in professional
courses such as engineering, pharmacy, and medicine. Other vital
student attributes such as language proficiency, leadership skills, and
ethics and spirituality will also be embedded across the curriculum
and assessed through an integrated cumulative grade point average.
To improve English proficiency among graduates in public universities,
students will be required to improve their performance in the Malaysia
University English Test (MUET) by at least one band upon graduation.
Strengthening community support for education

The Parent-Teacher Association (PTA) will drive school-level
engagements with the community, private sector, non-governmental
organisations, and other education providers, particularly with regard
to securing additional expertise and funds. This will enable the creation
of a holistic ecosystem that supports student learning. The Trust School
concept, a public-private partnership model, will be expanded to at
least 90 schools by 2020. Based on the performance of these Trust
Schools, the MoE will also identify best practices that can be used to
improve teaching and learning in other schools.
Additionally, the MoE will collaborate with other relevant agencies and
communities to implement an integrated approach to reduce dropout
rates from preschool to upper secondary so as to ensure 100%
enrolment by 2020. Collaborative efforts will be established with local
authorities and community leaders to trace children who have never
attended school or who have dropped out. Students who are at risk of
dropping out will be identified and intervention programmes to retain
them in schools will be implemented.
Aligning curriculum with industry needs to prevent

skills mismatch
IHEs will periodically and systematically revise their curriculum to
keep abreast of changing industry needs. This revision, as well
as the development of any new programmes will be done in close
collaboration with industry. Programme offerings that are irrelevant
to industry will be eliminated. Industrial training for students will be
made compulsory and its duration will be extended to better prepare
them for entry into the workforce. Teaching staff will also be given the
opportunity to update their knowledge and skills through industry
attachments. IHEs will also recruit more industry practitioners as
faculty members.
5-29
Creating massive open online courses for broader

access and visibility
MOOCs are the next frontier for online learning. MOOCs will increase
access, lower the cost of delivery, bring Malaysian expertise to the
world, and enhance the branding and visibility of Malaysian IHEs. The
Government will launch MOOCs in niche areas of expertise for Malaysia,
make online learning an integral component of all teaching and learning,
and support eligible IHEs in establishing the required cyber infrastructure
in areas where none exist yet.
Improving research, development, and

commercialisation activities to accelerate innovation
The Government will facilitate the development of innovation
ecosystems in selected strategic areas that are critical to the
nations economic growth. IHEs will be encouraged to partner with
industry, government and local communities to incubate, develop,
and commercialise ideas and to establish supporting systems such
as technology transfer offices and mechanisms for co-utilisation of
facilities. IHEs will also be encouraged to strengthen their role as a
conduit for innovation and as solution providers for other stakeholders.
The Government will in turn play a catalytic role in securing investments
from the private sector through platforms like the Private-Public
Research Network.
Enhancing the global prominence of Malaysia as an

education hub
The branding of Malaysian IHEs will be reinforced in strategic markets
such as Southeast Asia, Middle East and Central Asia. This will be
done by intensifying the promotion, marketing and value proposition
of IHEs, increasing the number of quality international students,
strengthening global networking, and gaining international recognition
for specialisations and niches areas of expertise.
Strategy D4
Strengthening IHE governance

and financial sustainability towards
Empowering IHEs through earned autonomy within the
regulatory framework
The role of MoE will be transformed from that of a tight controller to
a regulator and policy-maker by empowering public universities with
greater decision rights. Public universities will operate freely within
the regulatory framework established by the Government with strong
governance structures, clear decision rights, and effective stakeholder
management. These enhanced freedoms will be balanced by the right
internal capabilities and with appropriate accountability mechanisms.
For example, public universities will have the freedom to establish multitrack career pathways for lecturers, researchers, practitioners, and
institutional leaders.
Reducing dependency on government funding with

diversified income sources
The Government will revise the funding formulae for public universities
by replacing block grants with performance-linked and per student
funding, and implementing performance contracts. Public universities
will be encouraged to diversify revenue sources and implement
cost optimisation measures. Reform efforts by Perbadanan Tabung
Pendidikan Tinggi Nasional (PTPTN) will be intensified further
to address issues of sustainability, equitable disbursement, and
operational efficiencies. All applications and approvals will be evaluated
based on household income and the databases of e-Kasih and Bantuan
Rakyat 1 Malaysia (BR1M). PTPTN will also manage educational
financing services for other agencies to increase revenue and lower its
own operational cost.

Conclusion
The development of highly skilled human capital is essential to
helping Malaysia make the shift towards higher-value and knowledgeintensive activities which are the hallmarks of an advanced nation.
Investments in human capital are also vital to the improvement of
personal wellbeing due to its many socio-economic benefits. To
that end, under the Eleventh Plan, the Government will improve
the efficiency of the labour market to accelerate economic growth,
enable industry-led TVET to meet industry demands, expand lifelong
learning for continuous upskilling, and improve the quality of the
education system for better student outcomes.
The end vision is of a system wherein every Malaysian is able to access
good quality educationwhether in a TVET or academic pathway
that fosters the knowledge and skills, and ethics and morality, that
they will need to navigate the challenges and opportunities of the
globalised economy. The presence of a more efficient labour market
will lead to closer alignment of workforce supply and demand, thereby
enabling every Malaysian to benefit from the nations growth. Ongoing
opportunities for upskilling and reskilling will also allow Malaysians
to stay relevant in their chosen fields or forge new paths for themselves.
Collectively, these individuals will help Malaysia emerge as an advanced
and inclusive nation by 2020.
5-30
Pursuing green
growth for
sustainability
and resilience
Overview
Highlights
Looking back
2011-2015: Progress
Climate mitigation: reducing
Malaysias carbon footprint
Climate adaptation:
protecting the nation from
the impact of climate change
Enhancing conservation
of the nations ecological
assets
2016-2020
Moving forward
2016-2020
Focus area A: Strengthening
the enabling environment for
green growth
Focus area B: Adopting the
sustainable consumption
and production concept
Focus area C: Conserving
natural resources for present
and future generations
Focus area D: Strengthening
resilience against climate
change and natural
disasters
Conclusion
6-1
Overview
Malaysia has set a target to become an advanced economy by 2020. This will be
achieved in a resilient, low-carbon, resource-efficient, and socially-inclusive manner.
The intention is to shift from the conventional and costly grow first, clean-up later
path to a more greener trajectory Green Growth which will ensure that socioeconomic development is pursued more sustainably, beginning at the planning
stage, and continuing throughout the implementation and evaluation stages. Socioeconomic development is vital in raising the quality of lives of Malaysians, but if
limited natural resources are not used efficiently, it will result in irreversible
damage and put Malaysias development at risk. Green growth is therefore
a game changer because it is not just a stand-alone strategic thrust, but a
development trajectory that considers all three pillars of sustainable development
economic, social, and environment, and better prepares the nation for future
challenges. If carried out successfully, it will increase economic growth, change
mindsets and behaviour at all levels of the society, as well as influence policy
decisions in government, production decisions in industries, and consumption
decisions by individuals. This in turn will correct the perception of green growth
from a high cost to a long-term investment.
The Tenth Malaysia Plan, 2011-2015, recognised the importance of environmental
sustainability as part of a comprehensive socio-economic development plan.
Measures to address the issues of climate change, environmental degradation, and
sustainable utilisation of Malaysias natural endowment were therefore featured in
the Tenth Plan. In 2009, Malaysia set a voluntary target of reducing the greenhouse
gases (GHGs) emission intensity of its Gross Domestic Product (GDP) by up to
40% compared to 2005 levels by 2020. Under the Tenth Plan, by the end of 2013,
Malaysia had already achieved a 33% reduction. Energy sector, which is a major
contributor to national GHGs emission, has undertaken steps to increase the use
of clean and environmentally friendly sources. The Renewable Energy Act, 2011
implemented the Feed-in Tariff (FiT) mechanism to accelerate renewable energy
(RE) growth in Malaysia, and since then RE installed capacity has grown from
53 megawatts (MW) in 2009 to 243 MW in 2014. In adapting to climate change,
nearly a million people have been shielded from the detrimental impact of floods
through the implementation of 194 flood mitigation projects. 23,264 hectares of
forested areas have been declared as Permanent Reserved Forest under the Central
Forest Spine initiative, helping to sustain Malaysias natural endowment.
In the Eleventh Malaysia Plan, 2016-2020, green growth will be a fundamental
shift in how Malaysia sees the role of natural resources and the environment in its
socio-economic development, protecting both development gains and biodiversity
at the same time. Building a socio-economic development strategy that will increase
the resilience to climate change and natural disasters remains critical. To pursue
green growth, the enabling environment will be strengthened particularly in
terms of policy and regulatory framework, human capital, green technology
investment, and financial instruments. This enabling environment will facilitate
a shift in the economy, particularly in the private sector, towards more sustainable
patterns of consumption and production. This transformation will ensure
sustainability of the nations natural resources, minimise pollution, and strengthen
energy, food and water security. By conserving biodiversity, the continuity of
their function as a natural buffer against climate change and natural disaster can
be strengthened. This buffer, complemented by structural approaches such as
innovative flood mitigation and green infrastructure, as well as non-structural
approaches like hazard risk maps and warning systems, will strengthen disaster
risk management and ultimately improve the wellbeing and quality of life of the rakyat.
6-2

11 and 12 for further details at
www.epu.gov.my

Chapter 6: Pursuing green growth for sustainability and resilience
6-3
Highlights
33
Reduction in
greenhouse
gases emission
intensity of GDP
compared to
2005 levels
as of 2013
15
Household
recycling rate
achieved in
2015, versus
5% in 2010
million
EURO 4M
standards for
fuel gazetted
in 2013
Climate mitigation:
reducing Malaysias carbon footprint
Renewable
Energy Act
2011 enforced
and the
Feed-in Tariff
mechanism
implemented
People shielded
from floods
through 194
flood mitigation
projects

34
Flood
hazard maps
developed
61%
MRIA1 aerobic
paddy variant
launched in
2013
Climate adaptation:
protecting the nation from
Forest cover in
2014, up from
56.4% in 2010
6-4
23,264
Hectares of
forest gazetted
as Permanent
Reserved Forest
under the
Central Forest
Spine
Crocker Range
Park in Sabah
listed as Man
and Biosphere
Reserves by
UNESCO
Enhancing conservation of the nations

ecological assets
6-5
Looking back

The Renewable Energy Act was enforced in 2011
to accelerate contribution from green energy such
as solar photovoltaic (PV), biomass, biogas and
mini hydro in Malaysias electricity generation mix.
The Act, which enabled the introduction of FiT
for RE, has increased installed capacity between
2009 and 2014 fivefold to 243 MW. As of 2013,
this initiative reduced GHGs emission by 432,000
tonnes of carbon dioxide equivalent (tCO2eq). At
the same time, energy demand management
through the Minimum Energy Performance
Standards (MEPS) for domestic appliances was
gazetted in 2013. The implementation of the
Sustainability Achieved via Energy Efficiency
(SAVE) Programme (2011-2013) has reduced
The Tenth Malaysia Plan focused on improving

environmental quality by undertaking climate
change mitigation, adapting to its impact, and
increasing efforts to conserve ecological assets.
Natural assets,
particularly forests,
are critical to ensure
Climate mitigation: reducing
sustainability of
Malaysias growth and to Malaysias carbon footprint
act as defenses against To achieve the voluntary target of reducing
greenhouse gases (GHGs) emission intensity of
natural disasters.
GDP by up to 40% in the year 2020, compared
Therefore, conservation to 2005 levels, various mitigation measures were
of natural endowment to undertaken during the Tenth Plan. Exhibit 6-1
Malaysias GHGs emission intensity of
reverse natural resource shows
GDP and per capita in 2011.
depletion is essential. CHART 6-1
Exhibit 6-1
Comparison
of emissions intensity of GDP and per capita, 2011
Comparison of emissions intensity of GDP and per capita in 2011

GHG emissions1 intensity of GDP
tCO2eq per USD 100,000
GHG emissions1 per capita

tCO2eq per person
135
India
Thailand
103
Malaysia
102
67
Philippines
5
10
3
2
57
Korea, Rep. (South)
14
42
United States
21
26
Singapore
14
22
Japan
99
Indonesia
Vietnam
144
China
Excluding land use change and forestry
Source: World Resources Institute Climate Analysis Indicator Tools (WRI CAIT) and the World Bank
10
3

energy consumption by 306.9 gigawatt hour (GWh) as shown in Exhibit

6-2. This has resulted in GHGs avoidance amounting to 208,705 tCO2eq.
The retrofitting of four government buildings has reduced electricity use
ranging from 4% to 19% monthly, equivalent to RM7,000 to RM130,000
savings.
In the transportation sector, initiatives were undertaken to control
emissions from motor vehicles along with higher use of energy efficient
vehicles and biofuels. The Government gazetted EURO 4M standards in
2013 and enforce its use in RON97 in 2015. To support implementation
of bio-diesel B5 Programme (5% bio-diesel blending in automotive fuel),
35 depots were constructed nationwide with in-line blending facilities. As
of 2013, the implementation of B5 Programme has managed to reduce
GHGs emission by 1.4 million tCO2eq. By end of 2014, Malaysia had
also introduced the bio-diesel B7 programme (7% bio-diesel blending)
nationwide.
Waste management initiatives have also helped avoid and reduce GHGs
emission. Conversion of empty palm oil fruit bunches to energy avoided
CHART 6-2
6-6
GHGs emission of 33.1 million tCO2eq, while paper recycling activities

reduced GHGs emission of four million tCO2eq, as of 2013. The Reuse,
Reduce, and Recycle (3R) programme was intensified during the Tenth
Plan and household recycling rate rose from 5.0% in 2010 to 10.5%
in 2012. To support waste-to-wealth initiatives, the National Biomass
Strategy 2020 was launched in 2013 to assess how Malaysia will develop
new industries by utilising agricultural biomass waste for high value
products, including those for exports. An example is the use of palm
oil biomass pellets for power generation and for other uses such as
medium-density fibre boards.
Forest areas in the states of Pahang, Perak and Selangor were gazetted
as Permanent Reserved Forest and this resulted in GHGs emission
avoidance of 11.8 million tCO2eq. The implementation of projects
from the Green Technology Financing Scheme (GTFS) also resulted in
GHGs emission reduction of nearly 93,000 tCO2eq. In terms of meeting
the Montreal Protocol commitment, Malaysia has achieved specific
pre-2010 outcomes for reducing ozone-depleting substances and is
on-track to comply with the post-2010 provisions of the Protocol by the
Energy savings from SAVE Programme over 2011- 2013
Exhibit 6-2
Energy savings from SAVE Programme over 2011 2013

(SAVE) Programme
SAVE Programme
Units sold, 000s
The SAVE programme was an initiative

spearheaded by the Ministry of Energy, Green
Technology and Water (KeTTHA) from 2011 to
2013
Introduced by the Government in collaboration
with utility companies and participating appliance
manufacturers
Rebates offered to qualified customers for
Purchase of five star rated appliances, RM200
for refrigerators and RM100 for air-conditioners
Replacement of old chillers (>10 years) to
energy efficient chillers, RM200 per RT1
Encouraged addition of new energy efficient
products 27 new brands of air-conditioners and
refrigerators
1
Refrigeration Tonnes
Source: Sustainable Energy Development Authority (SEDA ), Economic Planning Unit (EPU)
Energy savings, GWh
84.0
337.7
Refrigerators
166.5
124.9
Air-Conditioners
98.0
89.5 RT
Chillers
Total Energy Savings
306.9 GWh
6-7
end of 2015 with the phasing out of the hydrochlorofluorocarbon (HCFC)

substances.
they could identify actions to reduce the emissions. As of January 2015,

26 companies volunteered to participate in the programme.
To support the development of local green products, 73 eco-label

licences were issued to companies producing such products, which
included electrical appliances, cleaning agent for household and
personal care as well as products used for construction and steel
industry. MyCarbon Reporting Programme, a voluntary reporting
mechanism was launched in December 2013 to encourage and facilitate
private entities to measure and report their GHGs emissions, from which
Climate adaptation: protecting the nation from

In terms of adapting to the impact of climate change, focus was given
to water resources and the agriculture sector. The implementation of
194 flood mitigation projects has shielded nearly one million people
from floods. In addition, 34 hazard maps were developed to facilitate
CHART 6-3
Exhibit 6-3
Marine water quality for selected estuaries in Malaysia
Marine water quality of selected estuaries in Malaysia
Unit = Marine water quality index1
2011, index
Kuala Batang Rejang, Sarawak
Kuala Kedah, Kedah
Kuala Sungai Lukut, N. Sembilan
Kuala Sungai Segget, Johor
Kuala Sungai Setiu, Terengganu
Muara Sungai Inanam, Sabah
Kuala Sungai Kelantan, Kelantan
Kuala Sungai Langat (Jugra), Selangor
Kuala Sungai Gula, Perak
Kuala Sungai Juru, Pulau Pinang
Kuala Sungai Perlis
Kuala Sungai Kesang, Melaka
2013, index
70.8
65.4
67.9
67.5
49.8
58.8
45.1
53.0
22.9
49.6
54.7
67.1
Change, %
86.8
15.9
84.2
18.8
66.8
-1.2
61.5
-6.0
61.1
11.3
0.4
59.2
8.8
53.9
0.6
53.6
50.9
28.0
0.1
49.7
48.8
-5.9
45.3
-21.8
Index measures water quality on a 0-100 scale, with <50 classified as Poor, 50-79.99 as Moderate, 80-89.99 as Good and >90 as Excellent
Source: Department of Environment
1

6-8
disaster prevention and development planning in major high-risk areas.

Coastal erosion prevention efforts were undertaken to rehabilitate and
protect coastal areas from being further eroded. In this regard, 24.4
kilometres of coastal areas in Johor, Kelantan, Pulau Pinang, Sabah,
Sarawak, Selangor, and Terengganu were rehabilitated. In addition, the
National Water Resources Policy was launched in 2012 to provide clear
directions and strategies for water resources management, including
collaborative governance to ensure water security and continued
sustainability.
the principal policy document to guide biodiversity management

and to align with internationally accepted Aichi Biodiversity Targets.
Management plans were developed for Pulau Sibu-Pulau Tinggi Marine
Park, Johor; Pulau Tioman Marine Park, Pahang; and Pulau Redang
Marine Park, Terengganu to enhance and improve management of these
parks and their resources. Exhibit 6.3 shows marine water quality for
selected estuaries in Malaysia. The National Conservation Trust Fund
for Natural Resources was established in 2014 to support conservation
efforts. Besides funding from the Federal goverment, contribution from
other parties, such as state goverments, private sector, individuals,
In addition to building the resilience of the nation against flooding
as well as organisations from within and outside the country is being
or prolonged drought, new strategies to improve food security were
encouraged. Concurrently, the 1Malaysia Biodiversity Enforcement
introduced. A new aerobic paddy variant, known as MRIA1, was
Operation Network, involving multiple enforcement agencies, was
launched in 2013 with improved resistance to heat and water scarcity,
established so that concerted and coordinated efforts to combat
allowing plantation of this staple food in water-poor areas and during off poaching and illegal wildlife trade effectively were undertaken.
season. The aerobic variant will help to increase rice production while
adapting to climate change.
* * *
Enhancing conservation of the nations

ecological assets
While the Tenth Plan laid the foundation for sustainable economic
growth, increased frequency and intensity of climate related disasters
have had an impact on the livelihood and safety of the people. This
Natural assets, particularly forests, are critical to ensure the sustainability highlights the need for strengthening disaster risk management,
of Malaysias growth and to act as defenses against natural disasters.
addressing gaps in how it is assessed and prepared for, and involving
Reversing natural resource depletion is therefore critical. During the Plan, communities and the private sector. Insufficient consideration of social
forest cover has increased from 56.4% in 2010 to 61% in 2014. Various
and environmental costs in certain socio-economic development
conservation initiatives were also undertaken, such as gazetting 23,264
projects also undermined the natural asset base and caused ecological
hectares of forest as Permanent Reserved Forest under the Central
degradation, ultimately creating a detrimental impact on people and
Forest Spine initiative and the planting of 53 million trees. Along coastal
costs that will be borne by the Government. Stronger protection and
areas, nearly 2,509 hectares of mangroves and other suitable species
conservation of terrestrial and marine areas, environmentally sensitive
were planted to protect coastlines against wave actions and coastal
ecosystems and water resources should therefore be intensified
winds, reduce salt water intrusion into rivers and provide breeding
to limit and avoid such damage. Regulatory framework that lay the
grounds for fish and other marine life. Additionally, 1,500 flowering tree
foundations for transformational shifts such as RE investments have
species were documented and Crocker Range Park in Sabah was listed
been introduced, but new instruments and stricter enforcement is
as Man and Biosphere Reserves by UNESCO in 2014.
necessary to boost these initiatives. Malaysia is a fast growing economy,
with citizen lifestyles, demands and expectations changing rapidly.
At the same time, relevant policy and legislation were reviewed to
As demand drives supply, the demand side needs to be addressed
strengthen conservation and enforcement efforts. The National Policy
systematically as well.
on Biological Diversity, 1998 was revised to serve dual purposes - as

Strengthening the enabling
environment for green growth
Strengthening governance to drive transformation
Strengthening resilience against

climate change and natural disasters
Enhancing awareness to create shared

responsibility
Establishing sustainable financing mechanisms
Strengthening disaster risk management

Improving flood mitigation
Enhancing climate change adaptation
Adopting the
sustainable consumption
and production concept
Creating green markets
Increasing share of
renewables in energy mix
Conserving natural resources for

present and future generations
Ensuring natural resources security
Enhancing alternative livelihood for indigenous
and local communities
Enhancing demand side

management
Promoting low carbon mobility
Managing waste holistically
UP TO
SELECTED OUTCOMES
40%
DSM
2,080
MW
Fomulation of a comprehensive
demand side management
master plan
In renewable energy
installed capacity
Reduction in GHGs emission

intensity of GDP compared to
2005 level
At least
20
22%
Government procurement
to be green
Recycling rate of
household waste
Adopting the sustainable consumption and production concept
Strengthening resilience
against climate change
and natural disasters
DRM
million
Conserving natural resources

for present and future
generations
National crisis and disaster management centre to

enhance capacity for
disaster preparedness and
response
17%
Terrestrial and
inland water areas
gazetted as
protected areas
People protected
through flood
mitigation projects
10
Coastal and marine

areas gazetted as
protected areas
6-11
Moving forward
Green growth will be

the game changer
in bringing Malaysia
towards a sustainable
socio-economic
development path,
where improvements
in quality of life are
in harmony with the
sustainability of the
environment and natural
resources.
Building upon the initiatives launched in the

Tenth Plan to address issues in environmental
protection, climate change and biodiversity,
the Eleventh Plan continues to strengthen the
nations resilience to natural disasters, and more
fundamentally, charts a paradigm shift towards
green growth. For the Eleventh Plan, two principal
outcomes have been set. Firstly, to reduce
GHGs emission intensity of GDP by up to 40%
compared to 2005 levels by year 2020, in line
with the voluntary target announced by the Prime
Minister at the 15th Conference of the Parties
to the United Nations Framework Convention
on Climate Change in 2009, and secondly, to
conserve at least 17% of terrestrial and inland
water areas, as well as 10% of coastal and marine
areas as protected areas in line with the Aichi
Biodiversity Targets.
To achieve these outcomes, the Government
will introduce a transformative green growth
strategy framework. This framework reinforces
the Governments commitment to address the
impact of climate change and manage natural
resources in a comprehensive and sustainable
manner. An elaboration of green growth as
a game changer for Malaysia is shown in the
following page. Four focus areas under this
framework will lead to significant changes in
Malaysias approach to sustainable and resilient
development. The Government will strenghten the
supportive environment for this transformation
to take place. Development in environmentally
sensitive areas and dependency on stressed

natural resources will be reduced significantly.
A comprehensive disaster risk management
approach will be put in place to respond to the
increased frequency and intensity of climaterelated disasters, with an important reorientation
from a cost to an investment for the future.
In addition, flood mitigation approaches with
multifunctional purposes will be explored to
attract investments in value-generating economic
activities. Management of waste will shift towards
a comprehensive reuse, reduce, and recycle (3R)
approach that will reduce development of new
landfills. In the area of energy security, there will
be a shift from a focus on supply-side solutions
towards a stronger balance of both supply-side
and demand side management measures.
To achieve these, the Government will focus
on four key areas in pursuing green growth for
sustainability and resilience as follows:
Focus area A: Strengthening the enabling
environment for green growth
Focus area B: Adopting the sustainable
consumption and production concept
Focus area C: Conserving natural resources
for present and future generations
Focus area D: Strengthening resilience against
climate change and natural disasters

6-12
Game Changer
Efficient
Clean
Resilient
Quantity
Waste to
landfill
of growth
Quality of growth
To
Growth that is efficient in its use of natural resources,

clean in that it minimises pollution and environmental
impacts, and resilient in that it accounts for natural
hazards and the role of environmental management and
natural capital in preventing physical disasters.
(World Bank)
From
Embarking on green growth
that takes into

consideration the
cost to the climate,
environment, and
the nations natural
resources
Climate change
mitigation and
adaptation as a
Governments
Climate change
mitigation and
adaptation as an
Shared
responsibility
cost
Waste as
resource
that can be reused

through recycling
and recovery, for
power generation,
and other waste to
wealth initiatives
investment
that is accounted
for during the
upfront planning and
investment stages
responsibility
between the
government, private
sector, and individual
citizen
Resource and
energy
intensive
Resource and energy
efficient
in balancing both
supply-side and
demand-side
considerations and
constraints
Why is green growth important for Malaysia?
Malaysia, like many countries across the world, is grappling with

the challenge of balancing a growing population and demand,
with a natural environment that is increasingly under stress. In a
global context of increasing intensity and frequency of extreme
weather events, adopting green growth has now become an
imperative for Malaysia. It represents Malaysias commitment to
renew and, indeed, increase its commitment to the environment
and long-term sustainability.
Achieving these aspirations requires a fundamental shift away from

a grow first, clean up later development model towards one that
views resilient, low-carbon, resource-efficient, and socially inclusive
development as an upfront investment that will yield future gains over
multiple generations to come. This requires fundamental changes
across every major dimension including how policy is determined, how
institutions are regulated, how responsibilities are shared, and how
people value their environment.
The strategy canvas highlights areas that should be eliminated, reduced,

raised or created for this game changer.
A successful green growth trajectory will ensure:

Detrimental impact of socio-economic activity on
environmental systems is reduced;
Natural capital, including forested areas, biodiversity, and
water resources as well as its ecosystems, is valued and
sustainably managed;
Development gains are protected, thus ensuring wellbeing of
people across generations; and
Energy use is efficient and renewable energy is widely used.
Strategy canvas: Pursuing green growth

High
Eleventh
Plan
As-Is
Low
Reduce
Raise
New
landfills
Enforcement
to curb
encroachment
and poaching
Development in Dependency
environmentally- on stressed
sensitive areas
natural
and nonresources
environmental
friendly projects
Create
Innovative
Shared
Coordination
approach for responsibility
among
flood
to drive
government
mitigation
green
and self
and coastal
agenda
regulation by
management
industries
RE and
DSM
SCP
practices
Integrated
CEPA
Biodiversity Environmental Sustainable

conservation and geospatial financing
information mechanisms
especially
system, and
water
indicators
catchment
areas
Comprehensive Government
Climate
green
waste
change
management procurement
adaptation
and mitigation
Strengthening
DRM
6-13
Focus area A
Strengthening the enabling environment for green growth

Green growth requires fundamental transformations in regulations
and guidelines applicable to businesses, in guiding consumers to
make household purchasing decisions and in managing the nations
energy and natural resources. Many of these changes are innovative,
either involving new green technologies or technologies relatively novel
to the Malaysian context. For this change to take place smoothly,
the Government will provide the relevant policy and institutional
framework for green growth. Creating long-term commitment from
all stakeholders, businesses, civil society, and most importantly the
people, is critical as this transition and associated results will take time.
Concurrently, measures and instruments to build capacity, monitor,
and evaluate programmes to support green growth efforts will be put
in place. Three strategies will be undertaken to establish the enabling
environment for green growth:
Strategy A1: Strengthening governance to drive
transformation by enhancing regulatory and institutional
framework, coordination, capacity as well as monitoring and
evaluation mechanisms;
by adopting green technologies as well as accelerating innovation and

development of indigenous green technology.
Formulating and strengthening relevant policies and

legislations
Existing regulations such as the Environmental Quality Act, 1974; Solid
Waste and Public Cleansing Management Act, 2007; National Policy
on Climate Change, 2009; and biodiversity-related policies will be
revised and strengthened to further encourage and support sustainable
socio-economic development. New policy framework, including the
sustainable consumption and production (SCP) blueprint, sustainable
development blueprint, national mitigation plan, and national policy on
geospatial information management will be formulated. Legislation on
disaster risk management and geospatial information management will
also be formulated to regulate and provide an enabling environment for
green growth.
Strengthening institutional framework
The institutional framework will be strengthened with the establishment

of a national crisis and disaster management centre, national climate
Strategy A2: Enhancing awareness to create shared responsibility change centre, national committee on sustainable waste management,
through comprehensive communication, education, and awareness and national chemical management board through the restructuring
programmes and platforms for knowledge sharing; and
and deployment of talent from existing agencies. Coordination and
collaboration among relevant ministries and agencies, particularly at
Strategy A3: Establishing sustainable financing mechanisms
the federal and state levels, will also be strengthened to achieve green
by expanding existing and identifying new economic instruments.
growth and better resource management.
Enhancing capacity and capability
Strategy A1
Strengthening governance to drive

transformation
The policy, regulatory and institutional framework will be strengthened
to encourage industries to shift to greening their products and services
The transition to green growth will be supported by developing the

required capacities, capabilities, and skills at all levels. This will be
undertaken by relevant ministries and agencies at the federal, state
and local levels as well as the private sector and academia. Initiatives
will include identifying new competencies and skills needed for the
development of areas such as RE, demand side management, green
buildings, waste to energy, bioengineering, and biosafety; introducing

and scaling up training programmes and enhancing their effectiveness

through certification by relevant authorities; and intensifying research
and development and innovation of indigenous green technology to
support green growth, particularly in RE, construction, and transport.
Improving monitoring and evaluation mechanisms

Comprehensive monitoring and evaluation mechanisms will be
established to track and assess the effectiveness of green growth
initiatives, as well as to facilitate planning and decision-making
process, so as to enable continuous improvements in undertaken
efforts. In this regard, a one-stop centre will be established to provide
access and linkage to all data in the nation, including data that are
housed in relevant agencies. This will facilitate data searching and
ensure accessability. In view of this, the Department of Statistics will
take the lead to establish an appropriate mechanism and coordinate
with relevant ministries and agencies. Simultaneously, new indicators
such as the green economy indicators, resource indicators and
inventory, and SCP indicators will be developed to complement existing
ones, making them more meaningful in reflecting the current situation.
6-14
themes including demand side management, transport, energy

consumption, recycling, biodiversity conservation, climate change,
disaster risk management, and environmental pollution. Better
coordination will increase understanding, visibility and retention of
such messages, ensuring the right messages are communicated to
the correct target audiences. Besides Government-led initiatives,
involvement of the private sector, NGOs, academia, and the rakyat in
CEPA programmes will also be encouraged.
Platform for knowledge sharing and collaboration

Platforms will be created for sharing of best practices and collaboration
on green growth related projects. This will involve opportunities for
public sector planning agencies and implementers to share best
practices, knowledge, and expertise. Such collaboration will also
extend beyond the public sector to include all stakeholders, particularly
the private sector, NGOs as well as indigenous and local communities
involved in conservation, innovation and disaster risk management.
Strategy A3
Establishing sustainable financing

Enhancing awareness to create shared mechanisms
Negative externalities of socio-economic development will be taken
responsibility
into consideration when planning, evaluating, and implementing
Strategy A2
Communication, education and public awareness (CEPA) programmes

engaging all levels of society will be enhanced to increase awareness
about the environment, climate change adaptation and mitigation,
conserving natural resources, and the role of green growth in raising
productivity. This will instil a sense of shared responsibility among all
stakeholders including federal and state governments, the private sector,
academia, NGOs, and the rakyat towards comprehensive and coordinated
efforts for better quality of life. Better knowledge and awareness will
ultimately lead to changes in mindset, behaviour and habits.
Comprehensive communication and awareness

programmes
The Government will improve the effectiveness of CEPA programmes
by coordinating and integrating public awareness messages
communicated by different public sector agencies and on different
public and private sector development projects, to achieve the double

dividend of higher economic growth and lower environmental impact.
Expanding existing economic instruments

Implementation of existing mechanisms such as Polluter Pays Principle
and Payment for Ecosystem Services will be expanded to support
funding needed to address environmental pollution and conserve
biodiversity and its ecosystem.
Funding green growth through new economic

instruments
Economic instruments such as green tax, carbon tax, green bonds, and
REDD+ (reducing emissions from deforestation and forest degradation)
will be utilised where appropriate to develop green financing systems.
This is important to support the implementation of green initiatives and
expand conservation efforts. The Government will continue to evaluate
the use of such mechanisms.
6-15
Focus area B
Adopting the sustainable consumption and production

concept
Sustainability refers to the efficient use of limited resources like water,
land, energy and other raw materials, and holistic management of
residues - solid waste, effluents or emitted gases. The Government
will take the lead in establishing the sustainable consumption and
production (SCP) approach in prominent sectors in Malaysia including
industry, power generation, infrastructure, and transportation. This
requires establishing relevant regulatory framework standards,
certifications and guidelines. Details on the SCP framework are
highlighted in Box 6-1, and the following five strategies will be
undertaken:
Strategy B1: Creating green markets through Government
green procurement, adoption of green buildings criteria and
strengthening green certification;
Strategy B2: Increasing share of renewables in energy mix by
exploring new RE sources, enhancing capacity of RE personnel
and implementing net energy metering;
Strategy B3: Enhancing demand side management (DSM) by
formulating a comprehensive DSM master plan and expanding
DSM measures;
Strategy B4: Promoting low carbon mobility through utilisation
of energy efficient vehicles and public transportation; and
Strategy B5: Managing waste holistically through better
coordination, encouraging 3R and using waste as a resource for
other industries.
Strategy B1
Creating green markets

The Government will act as a catalyst to create green markets in
products and services including buildings. The Ministry of Energy,
Green Technology and Water (Kementerian Tenaga, Teknologi Hijau
dan Air, KeTTHA) supported by relevant ministries and agencies will
promote the development of a domestic market for green products
and services. Measures to be undertaken include implementing
Government green procurement, promoting the development of
green buildings and greening of industries to spur green growth. A
Government driven push will encourage local industries, especially
small and medium enterprises, to develop green products and services,
eventually leading to further greening of the supply chain.
Implementing Government green procurement

Government green procurement (GGP) will be made mandatory for
all government ministries and agencies. GGP will create the demand
for green products and services, encouraging industries to raise the
standard and quality of their products to meet green requirements.
GGP will complement the existing eco-labelling scheme in the country
for green products certification. By 2020, it is targeted that at least 20%
of government procurement will be green. Concurrently, the private
sector will also be encouraged to emulate Government efforts in green
procurement.
Encouraging widespread adoption of green buildings

criteria
New government buildings will adopt green features and designs,
and use green building materials as per the Skim Penarafan Hijau
Jabatan Kerja Raya Malaysia. Existing government buildings will be
gradually retrofitted. Industry players will also be encouraged to obtain
green certification for private buildings such as GreenPASS and the

6-16
Box 6-1
Sustainable consumption and production

Waste
management
Sustainable resource
management
economic growth, environmental protection and social inclusiveness

into an integrated development concept. The main output is a national
SCP blueprint, outlining measures and areas of priority to achieve
green growth.
Initiatives undertaken in Malaysia

Design for
sustainability
Sustainable
lifestyles
SUSTAINABLE
CONSUMPTION
Sustainable
marketing
AND
PRODUCTION
Cleaner
production &
resource
efficiency
Sustainable
transport
Sustainable
procurement
Eco-labelling and
certification
Background
Sustainable consumption and production (SCP) is a concept that
promotes economic growth without compromising the environment
or jeopardising the needs of future generations. This means efficient
use of natural resources, minimising use of hazardous substances
and reducing pollution and waste over the life cycle of products and
services. Through this life cycle approach, SCP invites people to
consider the environmental impact and ensure resource efficiency at
both the production and consumption phases.
SCP in Malaysia
SCP is one of the approaches to achieve green growth. Malaysia is
undertaking the SCP project under the SWITCH-Asia Programme
Policy Support Component for a period of four years, from February
2012 until January 2016. The project coordinates the goals of
1. Government green procurement (GGP): Government purchases

of environmentally friendly products and services to spur demand
for green industries. Malaysia has developed GGP guidelines and as
a pilot project that started in July 2013, five selected ministries have
procured green products and services worth RM352 million as of April
2015.
2. SCP in education: Integrating SCP in the formal syllabi to instil
sustainable behaviour among students. The SCP curriculum was
drafted in collaboration with the Ministry of Education, containing
training along eight themes, including energy, water, waste, food
consumption and production, transport and sustainable buildings.
3. SCP portal (www.scpmalaysia.gov.my): Developed to enhance
awareness, knowledge and capacity of all levels towards green
growth.
4. Development of SCP indicators: Indicators to assess the impact
of SCP on the economy, society and the environment:
Greenhouse gas emissions per GDP (tCO2eq per year per GDP);
Proportion of citizens living under the poverty line (%);
Domestic Extraction (DE) per GDP;
Domestic Materials Consumption (DMC) per GDP;
Products in the Green Directory (number);
Resource consumption per capita - energy, water and materials;
Waste generation (tonnes solid waste per year);
Energy consumption per square metre per capita and total energy
consumption;
Share of biofuels in transport fuel mix (%);
Expenditure on government green procurement (RM million); and
Eco-label awards according to the National Eco-Label Programme
(SIRIM Eco-labelling Scheme) (number).
6-17
energy
installed capacity by sources
Exhibit 6-4
Green Building Index. Apart from ensuring efficient use

of resources, particularly energy and water use, green
buildings will also reduce GHGs emission.
Renewable energy installed capacity by sources
Total Installed Capacity

%
Biogas
243 MW
Biomass
5%
23%
2014
66%
6% Mini Hydro
Solar Photovoltaic
Total Installed Capacity

%
2,080 MW
Solid waste
17%
2020
38%
Solar Photovoltaic 9%
24%
Mini Hydro
Source: SEDA Malaysia, EPU
12%
Biogas
Biomass
Strengthening green certification

Green rating systems and standards, aligned with
international best practices, will be introduced to promote
the greening of industries. Simultaneously, the MyHijau
Mark programme, a uniform labelling established by
the Government for green products and services, will
be expanded for key product areas such as household
products, electronic and electrical appliances. In addition,
the Department of Environment (DOE) will expand selfregulation among industries to mitigate pollution at source,
and cover new aspects such as noise and soil pollution, in
addition to hazardous waste, water and air pollution.
Strategy B2
Increasing share of renewables in

energy mix
RE capacity is expected to reach 2,080MW by 2020,
contributing to 7.8% of total installed capacity in Peninsular
Malaysia and Sabah. In the Eleventh Plan, focus will be
on promoting new RE sources, enhancing capacity of RE
personnel and implementing net energy metering to further
intensify the development of RE. Current and forecasted RE
installed capacity is shown in Exhibit 6-4.
Exploring new RE sources and enhancing

capacity of RE personnel
Studies will be conducted to identify new RE sources to
diversify the generation mix. In the Eleventh Plan, new RE
sources such as wind, geothermal and ocean energy will
be explored. Currently, the national wind mapping exercise
is underway and is expected to be completed by 2016. The
exercise will further enable a study of the feasibility of wind
energy to be developed. Geothermal potential will also be
further explored with the discovery of a 12 square kilometres

6-18
geothermal field in Apas Kiri, Sabah. Viability of ocean energy will be

explored to take advantage of Malaysias geographical position of being
surrounded by sea.
strategy will broaden and extend the successful outcomes from early
DSM initiatives during the Tenth Plan such as MEPS and the SAVE
The RE industry will diversify Malaysias energy mix in a more

sustainable manner, create employment, and enhancing skills. The
industry is expected to create about 15,300 jobs, comprising of skilled
and semi-skilled jobs. The Government will provide training to 1,740
personnel through the Sustainable Energy Development Authority
(SEDA), creating experts in the field of biomass, biogas, mini hydro and
solar PV. The participants will be employees from the industry such
as RE project developers, financial institutions and potential service
providers. In addition, the private sector will be encouraged to conduct
training and increase the number of RE experts.
Formulating a comprehensive demand side

management master plan
Implementing net energy metering

To complement the current FiT mechanism in encouraging the takeoff of RE, a new instrument termed as net energy metering (NEM)
will be implemented in the Eleventh Plan. The objective of NEM is to
promote and encourage more RE generation, by prioritising internal
consumption before any excess power generated is fed to the grid.
NEM is anticipated to encourage manufacturing facilities and the
public to generate power without any restriction on their generation
capacity. This will further assist the Governments effort to increase
the contribution of RE in the generation mix. NEM will be executed by
KeTTHA and utility companies, and regulated by Suruhanjaya Tenaga
based on amended legal provisions.
Strategy B3
Enhancing demand side management

Demand side management (DSM) marks an important paradigm shift
for Malaysia towards efficient management of energy resources. This
initiative will give due emphasis to the demand side for a balanced
management of the entire energy spectrum. In addition, DSM
provides solutions to problems such as load management, energy
efficiency, and strategic conservation of resources. The main goal
of DSM is to encourage consumers to use less energy during peak
hours and to move the time of energy use to off-peak hours. This
programme.
A comprehensive long-term DSM master plan is required for prudent

energy usage. The Economic Planning Unit, Prime Ministers
Department (EPU) will initiate a study on DSM which covers the
whole spectrum of the energy sector. DSM is a vital tool to reduce
peak electricity demand impacting the overall load on an electricity
network. This will have beneficial effects including mitigating electrical
system emergencies and increasing system reliability. It will also
result in less dependence on expensive imports of fuel, reducing peak
power demand and minimising harmful emissions to the environment.
DSM will be able to maximise the return on utilisation of existing and
new electricity supply assets. The flattening of the demand curve
will positively constrain demand growth and result in deferment of
construction of new electricity supply infrastructures. The scope of
the new DSM master plan will include the electric and thermal energy,
including usage in the transport sector.
Expanding demand side management measures for

buildings, industries and households
During the Eleventh Plan, measures will be taken to identify potential
improvements and appropriate approaches to ensure efficient use
of energy in buildings, industries and households. These measures
include increasing competencies of energy service providers,
especially Registered Electrical Energy Managers, and promoting the
implementation of Energy Performance Contracting for government
buildings. User awareness will be enhanced on energy labelling and
the availability of standards such as ISO 50001 for buildings and
MEPS for appliances will be promoted. Other specific measures will
include introduction of Enhanced Time of Use (EToU) tariff scheme and
gradual abolishment of the Special Industrial Tariff for energy intensive
industries. Infrastructure related initiatives such as implementation
of smart grids and highly efficient co-generation technologies for
combined heat and power system will be promoted.
6-19
Strategy B4
Box 6-2
Encouraging low carbon mobility
Comparison of carbon footprint by modes
Low carbon mobility emphasises the usage of public transport,

which can have a carbon footprint of nearly half that of a single
occupant car as shown in Box 6-2. By encouraging the use of
public transport, dual objectives of reducing congestion and
minimising environmental pollution can be achieved. There are
several mechanisms to reduce energy consumption and emissions
of harmful gases including black smoke of the transport sub-sector.
These include using of energy efficient vehicles (EEVs), increasing
the use of biofuels and compressed natural gas (CNG), placing
higher fuel standards to reduce air pollution and increasing the
use of public transportation as the preferred mode by providing
a seamless and reliable modal mix of transportation. This will
eventually reduce over-dependency on private vehicles.
Walking
Cycling
Train
Bus
gram CO2eq
per km1
gram CO2eq
per km
45.6
gram CO2eq
per km
66.8
gram CO2eq
per km
Encouraging adoption of energy efficient vehicles

The use of EEVs is in line with the objectives of the National
Automotive Policy (NAP), 2014. EEVs can contribute to minimising
the impact on the environment in terms of reducing dependency
on fossil fuel and fuel wastage as well as emission of harmful
gases and black smoke. The Government will work with relevant
private agencies to increase adoption of EEVs, especially for public
transport like buses and taxis.
Reducing environmental impact of transport subsector
Car
(single
occupant)
Airplane
1
Grams of carbon dioxide equivalent per kilometre
Source: European Energy Agency
124.5
gram CO2eq
per km
130.2
gram CO2eq
per km
Other measures will be undertaken with relevant public transport

authorities to reduce the environmental impact of the sub-sector.
Public transport investments in cities including Mass Rapid Transit
(MRT) systems in Greater Kuala Lumpur/Klang Valley (GKL/KV)
and bus systems in other state capitals will be made in line with
declared targets to achieve 40% public transport modal share in
GKL/KV and 20% in other cities. The Government will also work
towards increasing bio-diesel blending requirements of up to 15% in
automotive fuel and implementing the EURO 5 emission standards
during the Eleventh Plan. The use of CNG will also be promoted.

Strategy B5
Managing waste holistically

All seven types of waste - solid, agricultural, construction, radioactive,
mining, sewage, and scheduled waste - will be managed in a holistic
manner based on a life cycle approach. This approach extends
beyond merely disposing the waste, rather it aims to increase recycling
and recovery rate of waste and improve management of landfills
to reduce the amount of waste and pollution. The National Solid
Waste Management Department and the Solid Waste Management
and Public Cleansing Corporation (SWCorp) will spearhead these
initiatives, together with other relevant agencies such as the Atomic
Energy Licensing Board, Department of Agriculture, DOE, Minerals and
Geoscience Department, and Suruhanjaya Perkhidmatan Air Negara
(SPAN).
Increasing coordination on waste management

A waste management platform that meets regularly to coordinate
matters on sustainable and holistic waste management will
be established. Waste management is currently implemented
independently by relevant agencies such as the DOE, SPAN and
SWCorp as per their respective jurisdictions. This creates a gap in
waste management, which will be addressed effectively through the
establishment of a mechanism to provide oversight and perform tasks
in a more integrated and coordinated manner.
6-20
Encouraging reuse, reduce and recycle (3R)

The Government has set a goal of 22% household recycling rate
by 2020. Waste reuse, reduction, and recycling is a long-term goal.
Achieving it involves changing mindsets and behaviour while phasing
in systems that enable better management of waste. Investments in
3R awareness and education programmes therefore need to continue
during the Eleventh Plan to shape better consumption and waste
disposal behaviour. Concurrently, implementation of waste separation
at source can help achieve recycling outcomes. Waste separation at
source for households will be implemented in selected states starting
September 2015 and rolled out to other states subsequently during the
Eleventh Plan.
Increasing investment in waste as a resource

Using waste as a resource gives it economic value, thus diverting
it away from landfills towards more productive use. Apart from
addressing the issues of waste disposals and landfills, investing in
waste recycling and recovery will also reduce dependency of industries
on natural resources, as waste becomes a valuable resource
either converted to energy (e.g. biomass and food waste for power
generation) or used as an input for other products. These initiatives will
be private sector driven to ensure long-term financial viability of such
projects and so that industries see the value of waste as a source of
energy or inputs for their processes.
6-21
Focus area C
Conserving natural resources for present and future

generations
Malaysia is blessed with rich biodiversity forest, marine, and
coastal areas with unique ecosystems, flora and fauna. These areas
are invaluable buffers against climate change and natural disasters
and are home to important biological assets. Conserving Malaysias
biodiversity is a commitment the Government will make to ensure
future generations have the same access to these resources as the
population today. While Malaysia has large forested areas, some have
suffered environmental degradation in the recent past, highlighting the
need to further intensify conservation efforts. Increasing enforcement
against illegal deforestation and poaching and undertaking
reforestation in affected areas will help towards this objective.
Endangered plant and wildlife species also need to be specifically
focused on to increase their numbers. To make this work, the Eleventh
Plan will lay the regulatory framework on access to biological resources
and benefits sharing (ABS). Communities that live on the fringes of
protected areas and depend on natural resources will be trained to take
on new opportunities to improve their quality of life. In order to enhance
the conservation of biodiversity, two strategies will be undertaken,
namely:
Strategy C1: Ensuring natural resources security by conserving
terrestrial and marine areas as well as endangered plant and
wildlife species, managing natural resources and strengthening
biosafety; and
Strategy C2: Enhancing alternative livelihood for indigenous
and local communities by involving them in biodiversity
conservation and empowering them for alternative economic
opportunities.
Strategy C1
Ensuring natural resources security

Malaysias natural assets such as forest and marine areas, plants
and wildlife, as well as minerals will be managed sustainably. Where
threat of deforestation or extinction exists, special focus will be given
to restock these assets. Legal framework will provide institutional
support to conservation efforts and promote rational use of biological
resources.
Conserving terrestrial and marine areas

Conserving Malaysias immense natural wealth is the first step to
ensuring the sustainability of the biodiversity present in the country.
Important biodiversity areas will be gazetted as terrestrial and marine
protected areas. Reforestation and forest enrichment efforts will be
undertaken in affected areas to improve degraded forests. Measures
to reduce illegal deforestation activities and forest degradation will be
taken through stricter enforcement. Similarly, relevant measures and
strict enforcement will help improve the quality of marine parks as well
as water quality throughout Malaysia. Environmental forensics will
be implemented to support site investigation, site remediation, and
strengthen legal enforcement and resource management.
Conserving endangered plant and wildlife species

Biodiversity conservation efforts will be increased by protecting,
rehabilitating, breeding and restocking selected endangered plant and
wildlife species such as the tiger, sambar deer, elephant, gaur, keruing
layang, asam batu and slipper orchid in its natural habitat (in-situ) and
outside its natural habitat (ex-situ). New methods and technologies,
including advanced reproductive technology, will be used to increase
the population of endangered species. 1Malaysia Biodiversity
Enforcement Operation Network initiatives to curb encroachment into
protected areas and poaching of wildlife will be intensified. Examples
of Malaysias endangered species are shown in Box 6-3.

6-22
Box 6-3
Selected endangered species of flora and fauna in Malaysia

Keruing layang
Dipterocarpus sarawakensis
Estimated number:
63 trees including saplings
Malayan Tiger
Panthera tigris jacksoni
Estimated number:
250 350
Sambar Deer
Rusa unicolor
Estimated number:
700 1000
All of these species are endangered as their population is

decreasing due to habitat loss, habitat fragmentation and
poaching. As key umbrella species in Malaysia, protecting
them means protecting other species as well.
Malayan Elephant
Elephas maximus
Estimated number:
1,220 1,680
Gaur
Bos gaurus
Estimated number:
270 330
Keruing layang is found only in

Terengganu and Sarawak.
Asam batu
Begonia herveyana (Begoniaceae)
Estimated number: 300 seedlings
and saplings
This species of asam batu is found only
in Johor and Malacca. Quality of its
habitat is rapidly declining.
Slipper orchid
Paphiopedilum callosum
var. sublaeve
Estimated number:
As of 2014, about 200 individuals are
thought to be present.
This variety is endemic to Kedah. The
species is severely threatened by habitat
decline and harvesting pressures.
Source: Department of Wildlife and National Parks Peninsular Malaysia (PERHILITAN) and Forest Research Institute Malaysia (FRIM)
6-23
Managing natural resources

Continuous research to identify the potential and value of natural
resources, including minerals, will be undertaken. This will create a
comprehensive natural resource inventory database with estimations
of national natural resource availability to facilitate better decisionmaking and determine appropriate actions needed to conserve and
use natural resources in a sustainable manner. A holistic regulatory
framework to curb the misappropriation of natural resources will be
formulated. The Government will finalise the Bill of Access to Biological
Resources and Benefits Sharing (ABS Bill) to regulate bioprospecting
activities in Malaysia, ensuring that benefits are shared in a fair and
equitable manner. The law will establish a transparent framework
allowing users to negotiate mutually agreed terms with providers prior to

accessing biological resources. Details on the ABS Bill are in Box 6-4.
Strengthening biosafety
The Department of Biosafety, Ministry of Natural Resources and
Environment (NRE) will be strengthened to increase its capacity and
capability in assessing and evaluating harmful effects from emerging
and new technology. This is in view of increasing investment and growth
in biotechnology, particularly synthetic biology, bioengineering and
genetic engineering, including genetically modified organisms (GMOs),
which require more sophisticated approaches in biological resource
management. Definitions of key terms are shown in Box 6-4.
Box 6-4
Bill of Access to Biological Resources

and Benefits Sharing
Accessing biological resources refers to taking these
resources from their natural habitat where they are found or
grown, for the purposes of research and development on
any genetic resources derivative or biochemical compounds
contained in these resources;
The Ministry of Natural Resources and Environment is
finalising the Bill of Access to Biological Resources and
Benefits Sharing (ABS Bill) after robust consultation with
various stakeholders such as federal and state agencies,
NGOs, indigenous and local communities and the private
sector;
Biotechnology: key definitions

Synthetic biology refers to the design and construction
of new biological parts, devices and systems that do not
exist in the natural world, or the re-design and fabrication of
existing biological systems for useful purposes;
Bioengineering or biological engineering is the use of
artificial tissues, organs, or organ components to replace
damaged or absent body parts; and
Genetic engineering is the development and application of
scientific methods, procedures, and technologies to directly
manipulate genetic material and alter the hereditary traits of
a cell, organism or population.
The objective of the Bill is to regulate bioprospecting

activities in Malaysia and ensure that benefits are shared in a
fair and equitable manner; and
The Bill will provide a transparent framework allowing users
to negotiate mutually agreed terms with providers prior to
accessing biological resources.
Source: Ministry of Natural Resources and Environment
Source: Synthetic Biology Project and The American Heritage Science Dictionary 1st Edition

6-24
Strategy C2
Enhancing alternative livelihood

for indigenous and local
communities
Indigenous and local communities (ILCs) living on the
fringes of protected terrestrial and marine areas and largely
dependent on natural resources for their livelihood will be
provided with alternative economic opportunities to reduce
this dependency and avoid illegal extraction of natural
resources from these areas.
Enhance ILCs involvement in biodiversity

conservation
Active efforts to promote community and civil society
participation, especially ILCs, in the planning and
management processes of protected areas will be
undertaken, including initiatives to proactively engage
ILCs in conservation programmes. An example of such an
initiative is shown in Box 6-5.
Empowering ILCs for alternative economic

opportunities
Capabilities of ILCs will be enhanced through participation
in training programmes such as language courses, nature
guides and entrepreneurship, as well as basic medical
and emergency response to prepare them for alternative
income generation. Sustainable use and benefits sharing
of biological genetic resources and associated traditional
knowledge will be promoted by regulatory measures such as
the ABS Bill. This will further improve the economic position
and independence of ILCs.
Box 6-5
Community involvement in conservation

Kelawat Forest Reserve joint forest management initiative
The Sabah Forestry Department initiated a joint forest management
initiative in the Kelawat Forest Reserve with 24 families of the Dusun
community living in extreme poverty.
The community was allowed to enter and occupy part of the forest
reserve in 2014 and use it for rubber agroforestry and fruit tree plantation.
In return, they assisted the forestry department with restoring, managing
and protecting the reserve, and nurturing dipterocarp trees grown
interspersed in plantations.
Outcome
Three- to fourfold increase in household income through rubber latex
and fruit sales, increasing monthly income of 80% of the households
above RM1,000, lifting them from extreme poverty; and
Restoration of denuded forest areas, with forest area rehabilitated
and conserved, as well as restoration of biodiversity and watershed
functions in denuded areas resulted in enhancement of protection of
Kelawat Forest Reserve from encroachment and forest fires.
6-25
Focus area D
Strengthening resilience against climate change and natural

disasters
Increased frequency and intensity of natural disasters due to the
adverse impact of climate change has affected the nation. As Malaysia
develops socio-economically, it is important to ensure its development
gains are not reversed by natural disasters. Resilience of growth
is therefore important to ensure the increase in standards of living
enjoyed by people today will continue to rise for future generations.
The immediate step is to make sure no one is left at risk. Planning
and preparing for natural disasters, identifying which areas and
communities are at risk and providing the right tools in case such
situations occur will be important in preparing a comprehensive
disaster risk management (DRM) framework.
The following strategies will be undertaken to reach these objectives:
Strategy D1: Strengthening disaster risk management by
establishing DRM policy and institutional framework, improving
disaster detection and response capacity, incorporating DRM into
development plans and creating community awareness;
Strategy D2: Improving flood mitigation by generating new
investments from flood mitigation projects, enhancing long-term
planning and strengthening flood forecasting and warning systems; and
Strategy D3: Enhancing climate change adaptation by
developing a national adaptation plan, and strengthening resilience
of infrastructure, natural buffers including water and agriculture
sector as well as creating awareness on health impact.
Strategy D1
Strengthening disaster risk

management
Increased frequency and intensity of climate-related disasters such
as floods, coastal erosion and landslides, compounded by extensive
and indiscriminate land use, which has expanded into environmentally
sensitive areas, have affected the nation. Therefore, there is an urgent
need for a more comprehensive DRM framework to be put in place.
This will include hazard and risk management, vulnerability reduction
and preparedness, as well as response and recovery. In this regard,
the Government will strengthen DRM to arrest and reduce the impact
of natural disasters on people and infrastructure. It will also ensure
effective and faster response time to communities affected by natural
disasters when they occur.
Establishing a policy and institutional framework for

disaster risk management
The Government will strengthen the policy, regulatory and institutional
framework of DRM under the National Security Council (Majlis
Keselamatan Negara, MKN). A comprehensive national DRM policy
and its related legislation will be formulated, and relevant standard
operating procedures will be revised. Concurrently, a national crisis
and disaster management centre will be established as the main
training centre in Malaysia to conduct training programmes and drills.
It will also act as a platform for greater engagement with stakeholders
such as DRM related agencies, the private sector, academia, civil
society organisations and the rakyat. MKN will play a critical role in
ensuring a more coordinated, integrated and interconnected approach
to managing disasters.

In addition to establishing a DRM framework, the Government will

continue to strengthen coordination and collaboration among disasterrelated agencies at the federal, state and district levels, including on
issues regarding deployment of resources and assets to ensure faster
response.
Improving disaster detection and response capacity

Capacity in disaster detection and early warning will be improved by
upgrading detection technology and forecasting systems. Mapping
of disaster prone and high risk areas is essential to enhance disaster
detection efforts. Capabilities of all parties involved in disaster
preparedness, response and recovery including capacity to conduct
forecasting analysis will be strengthened to improve response time and
effectiveness of DRM.
Incorporating DRM into development planning

DRM will be reoriented from a cost to an investment and as a
prerequisite for cities and infrastructure. Measures will be taken
to ensure development complies with existing environmental
standards and development guidelines, as well as incorporate climate
change considerations into development planning, evaluation, and
implementation.
Improving communications and awareness

Local communities, civil society organisations and the private sector
also play an important role in disaster preparedness, response and
recovery. Efforts will therefore be taken to enhance awareness, build
capacity and empower them to take initial response measures in a
disaster. For example, drills in risk prone areas, done on a large scale
and involving all sectors can help communities to deal with a natural
disaster scenario. Communication strategies and platforms among
disaster-related agencies as well as between the Government and the
people will be established to enable better coordination and faster
response time.
6-26
Strategy D2
Improving flood mitigation

Flood mitigation efforts will be further improved through innovative
solutions taking into account the intensity and frequency of extreme
weather events.
Generating investments from flood mitigation projects

The Department of Irrigation and Drainage Malaysia (DID) will
use alternative and new technologies, including multifunctional
mechanisms, to mitigate floods and encourage investment. For
example, retention ponds besides mitigating floods, will also be used
as artificial wetlands for water quality improvement, habitat grounds
for wildlife and recreational parks. Retention ponds with aesthetic
improvements will increase the commercial value of land surrounding
the area. Similarly, dams will be constructed for multiple purposes
besides flood mitigation, such as power generation, irrigation, water
supply and recreation.
The approach to addressing flood mitigation in floodplains and high
risk areas will be reoriented, including generating new economic
activities, and improving the financial viability of such investments.
Developments in such areas, especially construction of buildings and
infrastructure, will be based on appropriate design and technology to
adapt to floods and extreme weather. A similar approach was adopted
by Austrian authorities in the Danube River in Vienna as described in
Box 6-6.
Long-term planning for flood mitigation

In addition, the DID and relevant agencies will strengthen long-term
flood mitigation solutions through implementation of Integrated Water
Resource Management, Integrated River Basin Management and
Integrated Flood Management. This includes the implementation of
integrated solutions using a combination of structural components
such as retention ponds, diversion and river improvement works,
and non-structural components such as flood maps, flood warning
system, and flood proofing as well as awareness and education
programmes. DID will also review existing flood mitigation measures
such as bunds and flood levees to cope with higher flood levels.
Average recurrence interval in high risk locations will be raised as part
of these efforts.
6-27
Box 6-6
Case example: Austrias Danube Island

The Danube Island, a long, narrow island in central Vienna,
Austria, is part of Viennas highly sophisticated flood protection
system. The island is 21.1 kilometres in length and 70 to 210
metres in width and lies between the Danube River and a parallel
excavated channel called the New Danube.
The Danube Island serves as an innovative example of
protective water management practices in Austria. It is an
integrated flood management system, which comprehensively
addresses prevention, response and aftercare. The uniqueness
of the Danube Island concept stems from its design which aims
to achieve the greatest possible safety from floods through
meaningful interaction of spatial planning, structural engineering
and organisational measures.
1975
Flood mitigation measures

The first notable protective measures were taken between 1870
and 1875, when a central bed of 280 metres was dug out and an
inundation area of 450 metres created on the rivers left bank.
In 1970, modifications were made with an additional channel
the New Danube to replace the former inundation area. This
flood control system is designed to bring river flows up to 14,000
cubic metres per second to protect Vienna from flash floods.
Innovative applications
However, over the past few decades, the New Danube has been
increasingly adapted for other uses beyond flood management.
Investments to-date include a 172 megawatt hydroelectric
power generation, groundwater augmentation, business centre
riverfront development, leisure and recreation spaces. Its multifaceted development is a prime example of how flood mitigation
projects could be adapted for other economic or social
purposes.
Source: International Commission for the Protection of the Danube River and European Strategy for the Danube Region
2009

Improving flood forecasting and warning systems

An effective flood warning system will be able to improve the accuracy
of prediction and provide early warning of impending incidents. This
will substantially reduce damage during floods. The Government will
upgrade the current flood forecasting and warning system to allow a
longer lead time in numerical weather prediction, raising from current
three days lead time to seven days, and flood warnings from current six
hours to two days lead time.
6-28
Strategy D3
Enhancing climate change adaptation

Climate change adaptation measures will be enhanced to minimise the
impact of increasingly frequent and severe extreme weather events.
These measures will reduce risks to socio-economic growth, secure
energy, food and water needs, ultimately protecting development gains.
Developing a national climate change adaptation plan

Climate change impact is cross-sectoral in nature. Effectively
addressing its impact requires long-term planning and investments
along with integration across many areas including public policy and
economic activities. In this regard, NRE will develop a national climate
change adaptation plan to provide a coherent framework as well as
coordinate and synergise adaptation efforts across relevant ministries
and agencies.
CHART 6-5
Exhibit 6-5
Rehabilitation of coastal areas in Malaysia, 2005 - 2014
Rehabilitation of coastal areas in Malaysia, 2005 - 2014
In the aftermath of the

2004 tsunami, the
Government embarked
on a rehabilitation
programme for coastal
ecosystem by
replanting mangroves
and other suitable
species in such areas
Areas planted with mangroves and other suitable

species
Hectares (cumulative)
Examples of rehabilitation sites
2,255
2005
2013
2,340 2,380
2,450 2,509
1,827
Kampung Sri Menanti Laut , Muar, Johor,
This coastal ecosystem

acts as a barrier
against natural
catastrophes such as
tsunamis, coastal
erosion, and storm
surges, beside
enriching Malaysias
2009
natural endowment and
biodiversity
Pantai Pasir Putih, Selabat, Kuching, Sarawak
Source: Forestry Department of Peninsular Malaysia
1,301
681
2013
169
282
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
6-29
Building resilient infrastructure
Increasing resilience of agriculture sector
Building resilience in infrastructure is important in the face of climate

change impact. In energy-related infrastructure, due consideration will
be given to climate change and environment at the planning, evaluation
and implementation stages. Dependency on particular sources,
especially polluting or non-renewable ones, will be systematically
addressed through introduction of renewable sources. Alternative
sources of water such as recycled water, ground water, lakes and
reservoirs will be explored to increase the diversity of supply and
resilience against potential climate change impacts.
Resilience in the agriculture sector is important to secure not only

Malaysias food sources but also economic growth. Research and
development, especially in agriculture-climate modelling, will be
intensified and adoption of good agricultural practices will be extended
to 500 new fruit and vegetable plantations, 160 new farms and 65 new
aquaculture farms.
Strengthening natural buffers

Biodiversity, particularly the forest and coastal ecosystems will be
conserved to act as natural buffers against the impact of climate
change. The Government will strengthen efforts to enhance terrestrial
and marine biodiversity through conservation measures. Management
of rivers and coastal areas will be improved by adoption of water
management guidelines as well as continuation of conservation efforts,
particularly mangrove forests and related coastal forest species, as
Creating public awareness on health impact of climate

change
The objectives of this initiative is to enhance public awareness on
climate-related diseases to improve public health. Changes in rainfall
and increases in temperature can increase vector capacities, resulting
in greater and wider transmission of vector-borne diseases. Focus will
be on vector-borne diseases such as malaria and dengue as well as airand water-borne diseases.

Conclusion
Climate change continues to be a major threat as it adversely impacts
economic and social development gains and deepens economic
inequalities. Over-exploitation of natural resources, unsustainable use
of land, illegal deforestation, loss of biodiversity, and land-use change
will weaken the provision of ecosystem services, increase vulnerability
to climate-related disasters, and jeopardise the needs of present and
future generations. In the Eleventh Plan, Malaysia is breaking free from the
conventional wisdom of development at all costs to green growth, which
is a more sustainable path of growth. This will see Malaysia enter the
ranks of advanced economies in 2020 with an economy resilient to the
adverse impact of climate change and with secure and sufficient supply
of natural resources like water, food, and energy. Partnership and shared
responsibility across all levels of society, including individuals, will be
key to safeguarding the environment and biodiversity. Successful green
growth will not only expand economic opportunities, but also enhance
inclusivity and reduce disaster risks.
6-30
Strengthening
infrastructure
to support
economic
expansion
Overview
Highlights
Looking back
2011-2015: Progress
Upgrading physical
infrastructure to enhance
Developing a people-centric
public transport system
Growing logistics and trade
facilitation
Increasing broadband
coverage and initiating
migration to Digital Terrestrial
Television
Continuing efforts to
restructure the water
services industry
Ensuring effective sourcing
and delivery of energy
2016-2020
Moving forward
2016-2020
Focus area A: Building an
integrated need-based
transport system
Focus area B: Unleashing
growth of logistics
and enhancing trade
facilitation
Focus area C: Improving
coverage, quality, and
affordability of digital
infrastructure
Focus area D: Continuing
the transition to a new
water services industry
framework
Focus area E: Encouraging
sustainable energy use to
support growth
Conclusion
7-1
Overview
Infrastructure investments lay the foundation for long-term economic growth
and quality of life improvements of citizens. Malaysia has historically invested
significantly in infrastructure, and therefore today a majority of the rakyat have
access to essential amenities and services such as transport, communications,
electricity, and clean water. Developments in these assets including roads, rail,
logistics, ports and airports, digital infrastructure such as high-speed broadband,
connected water services, and electricity supply have helped establish physical
and virtual connectivity within the nation, allowing development to flow to
all regions, and improving standards of living and productivity nationally. As
Malaysia moves closer to its vision of becoming an advanced economy and
inclusive nation by 2020, the focus will not only be on further
expanding the physical reach of these networks to all communities,
but to improve the efficiency, productivity, and affordability of these
services, and enhancing user experience. The Government will address
issues of streamlining licences and regulations, and strengthen institutional
frameworks to improve integrated planning and regulatory oversight of the
industry. These efforts will lay the right software for infrastructure as new
significant investments from mass rapid transit system, high-speed
broadband, expanded sewerage networks to new oil refining capacity are rolled
out in the next five years.
During the Tenth Malaysia Plan, 2011-2015, the Government made large
investments in transport, digital, and energy infrastructure, in line with rising
demand for such assets. Malaysias road network grew 68% between 2010 and
2015, plugging more communities into Malaysias growth. Two major national ports
- Port of Tanjung Pelepas and Port Klang - were in the Worlds Top 20 Container
Ports as cargo and container volume in the country grew 23% since 2010. Expansion
works were undertaken in these ports to meet this soaring demand. A new runway
and terminal were opened in Kuala Lumpur International Airport (KLIA) and
passengers grew 46% between 2010 and 2014. Under the National Broadband
Initiative, 55,801 km of fibre was rolled out, increasing the broadband penetration to
70.2% of Malaysias household. Construction on the strategic Pengerang Integrated
Petroleum Complex (PIPC) started in 2012 on approximately 9,100 hectares
of land, improving energy security for Malaysians.
In the Eleventh Malaysia Plan, 2016-2020, the transport and logistics sector will
continue to remain a crucial driver of growth leveraging new investments in
road, rail and air services to boost regional development. Expansion of these
networks will create new corridors of economic activity. Better integration of
these different transport modes will also create seamless connectivity for people
and goods. In addition to passenger flows, the Government will work with the
private sector to create an integrated logistics, which coupled with an efficient
trade facilitation will further boost Malaysias trade. Digital connectivity will also
be expanded through broadband infrastructure roll-out in non-urban areas,
bringing connectivity and choice to even more regions and households. In water
and sewerage, Malaysia will continue to invest in new networks and treatment
plant capacity. Focus will also be given to a holistic non-revenue water reduction
programme and improving the performance of the sewerage system. Efforts to
expedite migration towards a new licensing regime under the Water Services
Industry Act, 2006 (WSIA), will also be undertaken to ensure the sustainability
of the water services industry. Energy underpins all these initiatives, and efforts
to further strengthen the security of Malaysias fuel and electricity supplies will
be undertaken.
7-2

13, 14, 15, 16, and 17 for further
details at www.epu.gov.my

Chapter 7: Strengthening infrastructure to support economic expansion
7-3
Highlights
93,100 2.29
KM
TOP
20
46%
32%
Increase in
Increase
New roads
National Road Two ports in
KLIA2
urban rail
in
added,
Development worlds top 20
opened in
ridership
increasing total
Index in
container port passengers 2014 and
at KLIA from 3rd runway from 2010 to
network by
2015
rankings 2014
2010 to operationalised
68% between
from 1.42
Port Klang,
e
1
2014
2010 and 2015
in 2010
Selangor(#13);
at KLIA
Port of Tanjung
Pelepas, Johor
(#19)
Upgrading physical infrastructure to enhance

e
1
Estimate
Not including transit passengers
25
World Bank
Logistics
Performance
Index ranking
rose from
29 in 2013
to 25
in 2014
PeopleGrowing
centric public logistics
transport
and trade
system
facilitation

70%
Households
with
broadband
penetration
as of 2014
14
Areas
nationwide
with access
to Digital
Terrestrial
Television
(DTT) by
end of 2015
95%
Population
served with
clean and
treated water
by 2014
41
million PE
Sewage
coverage by
grid and
septic tanks
in population
equivalent
terms
by 2015
Increasing broadband Efforts to restructure the

coverage and initiating water services industry
DTT migration
2
Actual figure for 2010 is 92.5% and for 2015 is 98.2%.
5,458
MW
Generation
capacity
added
3.8
MTPA
7-4
98%
LNG import Electricity

coverage in
capacity
rural areas
through
in 20152
RGT-1
from 93%
in 20102
Effective sourcing and delivery

of energy
7-5
Looking back
Network expansion of
essential infrastructure
was undertaken to reach
more households and
meet increasing demand
for services such as
transport, broadband,
water services, and
energy.
In the Tenth Malaysia Plan, network expansion

of essential infrastructure such as roads, rail,
water, and electricity, was undertaken to reach
more households and improve standards of
living. Concurrently, initiatives to develop new
infrastructure such as mass rapid transit (MRT),
broadband and fibre-optic internet, digital
terrestrial television, and renewable energy were
started. In addition, institutional framework and
regulations were streamlined and strengthen to
address sectoral challenges and improve delivery
of services.
Upgrading physical
infrastructure to enhance
Road length rose 68% from 137,200 kilometres
(km) in 2010 to an estimated 230,300 km in
2015. This resulted in a rise in the National Road
Development Index from 1.42 in 2010 to an
expected 2.29 in 2015. A total of 4,500 km of rural
roads were built under the National Key Result
Area (NKRA) programme. During this period, road
development focused on improving nationwide
linkages for better connectivity. Road maintenance
programmes were continuously undertaken with
Highlights of road, port and airport growth

Exhibit 7-1
Highlights of road, port, and airport growth

Road
Port
Airport
Road length, 000 km
Cargo volume, million FWT
Passenger, 000
+5% p.a.
+11% p.a.
+6% p.a.
539.2
448.6
81.0
61.3
230.3
2010
137.2
2014
Container volume, million TEU
2010
Cargo, 000 tonnes
+5% p.a.
18.2
2010
2015e
2010
Estimated
Source: Ministry of Transport (MOT), Economic Planning Unit (EPU)
e
2015e
+1% p.a.
22.4
909.3
938.8
2014
2010
2015e

a greater focus on corrective maintenance. Accident-prone spots were

improved and pedestrian bridges constructed to improve safety. Details
on expanded road infrastructure are included in Exhibit 7-1.
7-6
operationalised at KLIA, to facilitate higher aircraft movement. These

investments were in line with projected increases in demand, as the
Government had ratified the ASEAN Open Skies Agreement in 2013 and
also improved connectivity domestically to rural areas. Exhibit 7-1 shows
the evolution of passenger and cargo volume in Malaysian airports.
Two Malaysian ports featured in the International Association of Ports

and Harbours Worlds Top 20 Container Ports report in 2013 Port
Klang, Selangor at 13th with 10.4 million twenty-footer equivalent unit
(TEUs) and Port of Tanjung Pelepas (PTP) at 19th with 7.6 million TEUs.
Between 2010 and 2014, total cargo volume grew 20.2% reaching 540
million freight weight tonnes (FWT) and container volume grew 21%
reaching 22 million TEUs. Major projects were undertaken to expand
port capacity with addition of new container wharfs at Northport and
Westport of Port Klang, PTP, Penang Port, and Kuantan Port. Details on
cargo and container volume are included in Exhibit 7-1.
Developing a people-centric public transport

system
A people-centric public transport system was the main focus of
development efforts. Four strategies were implemented - strengthening
the regulatory framework, increasing transport capacity, promoting
seamless connectivity, and establishing a robust monitoring and
enforcement mechanism. The National Land Public Transport Master
Plan 2012-2030, was formulated to set the direction for public transport
development to achieve a 40% public transport modal share for urban
areas by 2030.
During the Tenth Plan, airports recorded an average annual growth

rate of 9.7% for passengers handled, and an increase of 46% in total
volume between 2010 and 2014 to 85 million passengers in 2014. In May
2014, KLIA2 was opened as a new low-cost carrier terminal at the Kuala
Lumpur International Airport (KLIA) and an additional third runway was
Initiatives under the Tenth Plan enabled a 31.7% increase in the annual
Greater Kuala Lumpur / Klang Valley rail
ridership
ridership of urban rail in Greater Kuala Lumpur / Klang Valley (GKL/
KV) - from 171 million in 2010 to 226 million in 2014. These initiatives
Exhibit 7-2
Greater Kuala Lumpur / Klang Valley rail ridership
Passenger, million
Growth,
% p.a.
+7% p.a.
ERL
KL Monorail
KTM Komuter
171
22
35
187
5
24
190
23
36
35
54
56
226
9
24
22%
47
8%
60
63
5%
9%
215
7
25
44
LRT Ampang Line
52
LRT Kelana Jaya Line
58
68
71
79
82
2010
2011
2012
2013
2014
Source: Suruhanjaya Pengangkutan Awam Darat (SPAD)
2%
7-7
rose from 0.4 million to 4.1 million in the same period, a 10-fold rise. The
Go-KL free bus service was introduced in 2013 to ease road congestion
during peak hours in the Kuala Lumpur central business district. Overall,
stage bus annual ridership showed a mixed performance with an
increase in four capital cities and a decrease in seven other cities from
2012 to 2014, as shown in Exhibit 7-3.
included comprehensive investments in rail transport, which included

upgrading and rehabilitation of existing infrastructure, constructing new
rail lines, extending existing lines, and procuring new rolling stocks.
New routes added include the Express Rail Link (ERL) extension from
KLIAs main terminal to KLIA2 and light rail transit (LRT) extension from
Kelana Jaya to Putra Heights and Sri Petaling to Putra Heights. The
Klang Valley Mass Rapid Transit (KVMRT) Line 1 from Sungai Buloh to
Kajang started in 2012. The KVMRT Line 1 is expected to operationalise
in 2017 and will bring greater convenience and connectivity to residents
in the Klang Valley. Outside the GKL/KV area, the electrified double-track
railway from Padang Besar, Perlis to Gemas, Negeri Sembilan was also
completed during this period. Exhibit 7-2 details increased ridership in
urban rail in GKL/KV.
Integration between transport modes was enhanced by providing firstand last-mile connectivity including extending pedestrian walkways,
building parking facilities at terminals, and revitalising inter-urban
terminal hubs. The opening of the Terminal Bersepadu Selatan and Pudu
Sentral in Federal Territory (FT) Kuala Lumpur improved connectivity
between different modes. In the GKL/KV region, the public transport
modal share improved from 16.9% in 2010 to 17.1% in 2014, while the
morning peak hour ridership increased from 314,965 to 747,859. Network
coverage, measured by population living within 400 metres of public
transport nodes, improved from 63% in 2010 to 72% in 2014.
An additional 470 new buses were provided for Rapid KL, Rapid Kuantan,
and Rapid Penang, leading to significant increases in passenger
ridership. In Georgetown, stage bus ridership increased from 10.7 million
in 2012 to 17.9 million in 2014, an increase of 67%, whereas in Kuantan it
Stage bus ridership in selected capital cities

Exhibit 7-3
Stage bus ridership in selected capital cities
Passenger, million
Cities
Johor Bahru
Shah Alam
Georgetown
Ipoh
Melaka
Alor Setar
Seremban
Kota Bharu
Kuala Terengganu
Kuantan
Kangar
Total Annual Ridership
million
Source: SPAD
2012
Growth, %
2014
29.4
24.4
18.2
13.6
10.7
66.8
17.9
7.6
-14.7
6.5
5.6
3.2
2.5
2.1
1.9
0.5
0.4
0.4
-16.9
-25.0
75.1
-35.1
1.9
-5.6
4.9
3.3
77.0
-14.5
0.4
4.1
80.0
905.8
-36.0
0.2
83.0
3.7

Growing logistics and trade facilitation

Improvements in transport infrastructure and measures to facilitate
online trading contributed to increased trade activities, improving
Malaysias ranking in the World Bank Logistics Performance Index from
29 out of 160 countries in 2013 to 25 in 2014. Total freight volume grew
20.7% from 453.7 million tonnes in 2010 to 548 million tonnes in 2014
and total trade increased 23.9%, from RM1.17 trillion in 2010 to RM1.45
trillion in 2014. During the same period, rail freight contributed the highest
annual growth rate of 6.3% followed by sea freight at 5.5%. Air freight
showed a slight decrease of 0.8% per annum due to limited connectivity,
frequency of cargo flights, and low air cargo volume.
Increasing broadband coverage and initiating

migration to Digital Terrestrial Television (DTT)
High-speed broadband is critical for economic growth. According to
an International Telecommunication Union (ITU) 2012 report, a 10%
increase in broadband penetration will contribute 0.7 percentage
Areas covered by HSBB 1
points increase in Malaysias GDP. Under the Tenth Plan, High

Speed Broadband (HSBB) and Broadband for General Population
(BBGP) were rolled out in several states, raising national broadband
penetration from 55.6% in 2010 to 70.2% in 2014. Cities within the
HSBB roll-out include Bintulu, Kuching and Miri in Sarawak, and Kota
Kinabalu and Menggatal in Sabah. This contributed to an increase
in broadband penetration in these states from 40.2% and 25.6%
respectively in 2010 to around 67% in 2014. States such as Kuala
Lumpur, Melaka, Perak, Selangor, Pahang, and Johor achieved more
than 70% household broadband penetration. Exhibit 7-4 shows the
areas covered by HSBB during the Tenth Plan.
ICT infrastructure in the public sector, previously managed by
individual ministries, was consolidated into 1Gov*Net in 2012, a
centrally managed dedicated network connecting 10,552 out of
11,268, nearly 94%, of all Federal Government buildings. Under the
1BestariNet programme, efforts were made to provide connectivity
to schools to support teaching and learning. A total of 10,132 schools
were connected through fibre (nine schools), WiMAX (6,628 schools),
Exhibit 7-4
Area covered by HSBB I

Perlis
Kedah
Pulau
Pinang
Kelantan
HSBB
Perak
Terengganu
HSBB
Sabah
HSBB
Pahang
HSBB
HSBB
Selangor
HSBB
HSBB
HSBB
N. Sembilan
HSBB
Melaka
Johor
Source: Malaysian Communications and Multimedia Commission (MCMC)
HSBB
HSBB
HSBB
7-8
Sarawak
7-9
Asymmetric Digital Subscriber Line (ADSL, 1,086 schools), Very Small

Aperture Terminal (VSAT, 2,129 schools), and wireless (280 schools).
In keeping pace with technological development, Free-to-Air Digital
Terrestrial Television (DTT), offering digital television and radio services
is scheduled to be launched by end of 2015. The first phase is expected
to be rolled out in 14 areas nationwide including four areas in Sabah
and Sarawak. Other services will be made available after the Analogue
Switch Off (ASO) scheduled to start in 2016.
Continuing efforts to restructure the water

services industry
The water services industry comprises both water and sewerage
services. As of April 2015, six states have migrated to the new licensing
regime in line with the WSIA. The remaining five states namely Kedah,
Kelantan, Pahang, Selangor, and Terengganu are expected to migrate
during the Eleventh Plan. Sewerage services, which are part of the
WSIA, are yet to be integrated.
Water services coverage
Connecting communities to water supply

At the end of the Tenth Plan, Malaysia enjoyed a high level of
connectivity to treated water. As of 2014, 95.1% of the population was
served with clean and treated water supply, rising from 94.2% in 2010.
Most states recorded more than 99% coverage in urban areas the only
exception being Kelantan at 59.5%. Rural coverage for Kelantan, Sabah
and Sarawak remained below 80%, as seen in Exhibit 7-5.
Despite efforts to improve management of water supply and its
distribution, the rate of non-revenue water (NRW) increased from
36.3% in 2010 to 36.6% in 2013. This is due to the lack of enforcement,
limited district metering zones to monitor water pressure and detect
burst pipes as well as slow replacement of pipes and meters. NRW rate
was highest in Perlis at 62.4% and Sabah at 53.2%. While water and
sewerage services are well developed in urban areas, these services
could be further strengthened for rural areas.
24 new water treatment plants were completed and commissioned
while 38 treatment plants were upgraded, increasing production
Exhibit 7-5
Water and sewerage services coverage
FT Putrajaya
FT Kuala Lumpur
Selangor
Pulau Pinang
Negeri Sembilan
Melaka
FT Labuan
Johor
Perak
Pahang
Kedah
Perlis
Terengganu
Kelantan
Sarawak
Sabah
Water coverage by rural population served

% of population
Sewerage connections
% of population equivalents
2010
2013
2013
NA
NA
NA
NA
Source: EPU, Suruhanjaya Perkhidmatan Air Negara (SPAN)
99.0
99.7
99.5
100.0
100.0
99.5
98.0
96.0
96.3
99.0
92.7
55.2
61.7
58.6
100.0
92.0
88.3
86.8
99.5
99.7
99.8
100.0
100.0
99.5
99.2
96.0
96.5
99.0
92.9
63.4
76.0
73.1
73.5
72.1
65.6
61.0
53.0
40.4
37.8
25.9
20.5
15.1
11.8
NA

capacity to 18,421 million litres per day. In addition, upgrading of

the Mengkuang Dam in Pulau Pinang and distribution networks in
the Federal Land Development Authority (FELDA) settlement areas
in Pahang commenced. The National Key Results Area (NKRA)
programme provided clean and treated water networks to 320,000 rural
households. These initiatives expanded coverage of clean and treated
water networks and ensured security of supply.
Extending sewerage coverage

The capacity of sewerage services by grid and septic tanks is expected
to increase from 36.2 million population equivalent (PE)3 in 2010 to 40.7
million PE by end of the Tenth Plan. Connected sewerage services will
increase to 3.4 million accounts by 2015 with a handling capacity of 26.1
million PE. Sewage volume for connected services increased from 22.4
million PE in 2010 to 24.6 million PE in 2013, representing 63% of total
PE volume. In addition, construction of seven regional and centralised
treatment plants including the Pantai 2 Sewage Treatment Plant (STP) in
FT Kuala Lumpur and Langat STP in Selangor commenced.
7-10
achieved, and attributed to continuous investments by PETRONAS

in the upstream exploration and production. For the downstream
subsector, the total refining capacity has remained at 635,000 bpd
since 1998, fulfilling most domestic demand. Exhibit 7-6 shows trends
in Malaysias oil and gas production since 2000.
The production of natural gas increased at a compound annual growth
rate of 6%, as seen in Exhibit 7-6. The discovery of new gas fields grew
reserves from 90 trillion cubic feet (tcf) in 2011 to 98.3 tcf in 2012. The
Regasification Terminal 1 (RGT-1) in Sungai Udang, Melaka, with a
capacity of 3.8 million tonnes per annum (mtpa) began operations in
2013. The increase in supply capacity enabled the demand of 2,419
million standard cubic feet per day (mmscfd) of gas in Peninsular
Malaysia to be met. Construction of RGT-2 in Pengerang, Johor
commenced in 2015 and when completed in 2017, will increase the
supply level to 2,900 mmscfd.
During the Tenth Plan, several projects in the downstream oil and gas
subsector were initiated to ensure the security and sustainability of
energy supply. Development of the Pengerang Integrated Petroleum
Ensuring effective sourcing and delivery of
Complex (PIPC) on approximately 9,100 hectares of land, which
energy
includes the PETRONAS Petroleum Integrated Complex Project and
DIALOG-Vopak Deepwater Petroleum Terminal, started in 2012. The
The security of energy supply improved to meet increased energy
demand. Efforts were undertaken to ensure the long-term sustainability deep water petroleum terminal, which started operations in April 2014,
has a storage capacity of 1.3 million cubic metres for both crude oil and
of the energy sector through resource diversification, continuous
petroleum products. In addition, expansion of the liquefied natural gas
investments in new infrastructure, and technology enhancement. In
(LNG) plant in Bintulu, Sarawak, which began in 2013, is expected to
addition, the improvement in productivity and efficiency as well as the
add 3.6 mtpa of LNG production.
implementation of efficient resource utilisation measures were also
undertaken.
Electricity
Oil and gas

Petroleum reserves stood at 22.6 billion barrels of oil equivalent (boe)
comprising 5.8 billion boe of crude oil and 16.8 billion boe of natural
gas in 2014. Average production of domestic crude oil and condensate
decreased from 667,000 barrels per day (bpd) in 2006 to 576,000
bpd in 2013. At 2013 production level, domestic crude oil including
condensate would have a reserve life of 28 years. An average Overall
Resource Replenishment Ratio (ORRR)4 of 1.94 from 2011 to 2013 was
3
4
To ensure the reliability of electricity supply, a total of 5,458 megawatts

(MW) of capacity was added into the system, with the commissioning of
10 power plants. Among these were the Bakun Hydroelectric in Sarawak
as well as Kimanis and SPR gas-fired power plants in Sabah with a total
capacity of 2,785 MW. In terms of fuel mix, the share of coal in the total
generation mix is expected to increase from 41.6% in 2010 to 43.0% in
2015, while natural gas is expected to decline from 51.5% to 40.1%.
PE is an estimate unit of usage made of sewage facilities. For residential areas PE is calculated as five per household.
ORRR is an indicator to measure discovered reserves versus production where a ratio of 1.0 and above is healthy.
7-11
Transmission and distribution systems were further expanded to

improve the quality of services and meet growing demand. The
transmission projects linked generation plants to the main grid,
providing connections to industrial and commercial areas. These
included the Air Tawar-Bukit Merah in Perak, Bukit Kapar-Meru
in Selangor, Kimanis-Lok Kawi in Sabah, and Bakun-Similajau in
Sarawak. The distribution network was also expanded to provide
access to new development areas and to extend electricity supply to
rural areas such as distribution substations in Indahpura (Johor), Enoe
(FT Labuan), and Labuk (Sabah).
Improvements were recorded in the productivity and efficiency of
electricity supply services. Tenaga Nasional Berhad (TNB), Sabah
Electricity Sdn. Bhd. (SESB), and Sarawak Energy Berhad (SEB)
registered improved performance in reducing the number of interruption
incidences based on the System Average Interruption Duration Index
(SAIDI) as shown in Exhibit 7-7. The supply of electricity to rural areas
increased from 92.5% in 2010 to 98.2% in 2015. The implementation of
rural electrification projects, mostly through grid connection, benefited
115,153 houses, mainly in Sabah and Sarawak. Alternative systems such

as mini hydro, solar hybrid, and biomass were utilised in remote areas.
*
Despite the progress achieved in the Tenth Plan, provision of reliable

transport, logistics, digital infrastructure, utilities, and energy supply will
become more challenging to ensure sustained robust economic growth.
The key challenges in the transport sector include road congestion in
urban areas, inadequate public transport, capacity constraints in ports,
institutional limitations in civil aviation, and bottlenecks in logistics.
Digital infrastructure roll-out in rural areas stil faces cost and coverage
challenges due to the high cost of broadband deployment and low
return on investment. With respect to water supply, the key issues are
the high NRW rate, low coverage in rural areas, high operational cost,
and lack of financial sustainability of the water service operators. In the
energy sector, the issues include fragmented governance, security and
reliability of supply, market distortion, lack of regulatory framework, and
overdependence on fossil fuels.
Oil and gas production from 2000 to 2014

Exhibit 7-6
Oil and gas production from 2000 to 2014
Crude oil and condensate production

000 bpd
Production
Gas production
mmscfd
Oil
Condensate
Production
Peninsular Malaysia
Sarawak
Sabah
800
8,000
700
7,000
600
6,000
500
5,000
400
4,000
300
3,000
200
2,000
100
1,000
2000 01 02 03 04 05 06 07 08 09 10 11 12 13 2014
2000 01 02 03 04 05 06 07 08 09 10 11 12 13 2014
Source: Petroliam Nasional Berhad

7-12
Reliability of electricity supply

Exhibit 7-7
Reliability of electricity supply from 2010 to 2013

System Average Interruption Duration Index, minutes per customer
687.0
-38%
424.0
232.0
96.3
2010
60.4
168.0
-37%
2013
Peninsular Malaysia
Source: Ministry of Energy, Green Technology and Water, Energy Commission, and Sarawak Energy Berhad
2010
2013
Sabah
2010
2013
Sarawak
-28%
Encouraging sustainable energy

use to support growth
Strengthening stakeholder coordination

and collaboration in the energy sector
Ensuring the security of supply and
reliability for the oil and gas subsector
within a market-based approach
Building an integrated
need-based transport system
Enabling growth in the oil and gas

subsector
Enhancing connectivity across transport modes and regions

Improving safety, efficiency and service levels of transport operations
Expanding port capacity, access and operations
Managing supply diversity for security of

the electricity subsector
Improving the sustainability, efficiency
and reliability of the electricity subsector
Strengthening regulatory and institutional framework for the transport industry
Continuing the
transition to a
new water services
industry
framework
Raising the financial sustainability

of the water services industry
Unleashing growth of logistics

and enhancing trade facilitation
Strengthening
institutional and
regulatory
framework
Enhancing trade facilitation

mechanism
Deploying technology in the

logistics chain
Building freight infrastructure

efficiency and capacity
Strengthening capabilities of
logistics service providers
Expanding network and

treatment plant capacity through
infrastructure investment and use
of efficient technology
Increasing efficiency and
productivity of water and
sewerage services
Strengthening the regulatory
framework of the water services
industry
Improving coverage,
quality and affordability
of digital infrastructure
Expanding and upgrading

broadband infrastructure
Migrating to Digital
Terrestrial Television (DTT)
Increasing affordability and

protection for consumers
Strengthening
infrastructure for
smart cities
SELECTED OUTCOMES
40%
Public transport
modal share in
GKL/KV
3,000
Paved rural roads

constructed
km
Malaysian Aviation
Commission as
newly established
regulator
Building an
integrated need-based
transport system
95%
1%
46
areas
TOP
10
Of GNI per
capita for fixed
broadband cost
80%
Sewerage connected services coverage, especially

main cities, by 2020
Nationwide with
Digital Terrestrial
Television roll-out
in 2016-2017 with
all services
available after
ASO completion
25
Non-revenue
water by 2020
Continuing the transition

to a new water services
industry framework
Encouraging sustainable energy

EURO 4M, EURO 5

standards for clean
fuel and B15 (15%
biodiesel blending)
roll out by 2020
Annual growth
of transport
and storage
subsector
In the World
Bank Logistics
Performance
Index
99%
Population
served by clean
and treated
water by 2020
Improving coverage,
quality, and affordability
of digital infrastructure
Unleashing growth of
logistics and enhancing
trade facilitation
8.5%
Populated
areas covered
by broadband
infrastructure
3.5
MTPA
Additional LNG
import capacity
through RGT-2 in
Pengerang, Johor
7,626
MW
300,000
BPD
New generation
capacity installed
in Peninsular
Malaysia by 2020
Additional refining
capacity by 2019
7-15
Moving forward
In the Eleventh Plan,

focus will not only
be on expanding the
physical capacity and
reach of infrastructure
networks, but improving
their performance,
productivity, and
affordability. The aim
is to not only bring
such amenities to all
households, urban or
rural, but make these
services befitting of an
advanced economy and
inclusive nation by 2020.
The Eleventh Malaysia Plan will strengthen the

foundation of economic expansion and provide
an enabling environment to support growth.
Initiatives will be undertaken to provide a seamless
transportation system and enhance mobility of
people, targeting a 40% public transport modal
share in the GKL/KV region and 20% in other
state capitals. Rural, rural-urban and inter-city
connectivity will also be strengthened through
enhanced bus, rail and air services. Movement
of goods will also become increasingly important
as trade plays a significant role in Malaysias
economic growth. The logistics industry will
therefore be strengthened. By 2020, Malaysia
is targeting an 8.5% annual growth rate of the
transport and storage subsector, along with a
place in the top 10 of the World Bank Logistics
Performance Index.
Beyond physical connectivity, digital infrastructure
will not only be vital in bringing people together
through communication channels, but lay the
foundation of economic development through
knowledge-intensive industries. To achieve
this, the reach of broadband infrastructure to
95% of populated areas is targeted, along with
its affordability - targeting 1% of gross national
income (GNI) per capita for fixed broadband
cost. Key infrastructure roll-out initiatives such
as High-Speed Broadband 2 (HSBB 2), SubUrban Broadband (SUBB), and Digital Terrestrial
Television (DTT) will be undertaken during this
period, along with policies to improve access
pricing and consumer protection frameworks.
Essential amenities like water services and energy

continue to remain critical in directly impacting
the quality of life of citizens. In these sectors,
expanding network reach especially in rural areas,
improving the reliability and efficiency of services,
and enhancing the financial sustainability of the
sector, are main areas of focus. By 2020, the
Government aims to provide 99% of the population
with clean and treated water, 80% with connected
sewerage services and reduce non-revenue water
to 25%. In energy sector, 7,626 MW new generation
capacity will be installed in Peninsular Malaysia,
along with 300,000 bpd refining capacity at PIPC,
providing security to Malaysias energy needs.
The focus areas are summarised as follows:
Focus area A: Building an integrated needbased transport system
Focus area B: Unleashing growth of logistics
and enhancing trade facilitation
Focus area C: Improving coverage, quality,
and affordability of digital infrastructure
Focus area D: Continuing the transition to a
new water services industry framework
Focus area E: Encouraging sustainable energy

7-16
Focus area A
Building an integrated need-based transport system

Transportation is a vital lifeline for both urban and rural communities in
Malaysia. It ensures that people from all walks of life are able to access
and broaden their activities in pursuit of jobs, recreation, and daily
necessities. Under the Eleventh Plan, the Government aims to continue
to provide sufficient and affordable access to transportation to allow
for a safe, efficient, and fast flow of people and goods within Malaysia
especially across rural and urban areas and internationally. These
aspirations will be achieved through four strategies:
Strategy A1: Enhancing connectivity across transport modes
and regions through greater connectivity across regions and
modes, promoting public transport in both rural and urban areas,
and optimising transport planning;
Strategy A2: Improving safety, efficiency, and service levels
of transport operations by shifting to preventive maintenance,
improving road and rail safety, and upgrading air navigation and
airport infrastructure;
Strategy A3: Expanding port capacity, access, and operations
through the National Port Policy, a port community system, and
improving port accessibility and capacity; and
Strategy A4: Strengthening regulatory and institutional
frameworks for the transport industry through introducing a
national transport model and establishing the Malaysian Aviation
Commission.
Strategy A1
Enhancing connectivity across

transport modes and regions
Comprehensive and efficient public transport connectivity is an enabler
for sustained economic prosperity. To elevate public transport as the
preferred mode of commute, it has to be made available and must
prove to be reliable and convenient for users. Investments will therefore
be made in rural, rural-urban, urban, and intercity transport modes.
These efforts will reduce dependency on private vehicles, traffic
congestion and air pollution.
Prioritising regional connectivity for new highways

To achieve a balanced economic development, highway development
will be focused outside the Klang Valley and other urban areas. The
Eleventh Plan will therefore focus on rural and rural-urban connectivity.
The Pan Borneo Highway will promote better connectivity in Sabah and
Sarawak. Further development of the Central Spine Road, Kota BharuKuala Krai Highway, and the Lebuh Raya Pantai Timur will improve
connectivity in Peninsular Malaysia and catalyse growth in the east
coast region. The completion of the West Coast Expressway in 2019
will also provide better access to the west coast of Perak and Selangor.
A comprehensive needs analysis will be adopted in road planning to
ensure effective decision-making on whether to upgrade existing roads
or construct new ones.
7-17
Increasing public transport modal share in cities

Box 7-1
Klang Valley Mass Rapid Transit

(KVMRT)
Line 1: Sungai Buloh to Kajang
51 km MRT system
31 stations with expected ridership of 400,000
people per day
3.5 minutes service intervals
Construction started in 2012
Phase 1: Sungai Buloh to Semantan, expected
operations in 2016
Phase 2: Semantan to Kajang, expected
operations in 2017
Line 2: Sungai Buloh to Serdang

to Putrajaya
52.2 km MRT system
2016 construction expected to start, with
completion in 2022
Improving urban public transport remains critical for Malaysia as 75% of its
population will be living in cities by 2020. Public transport modal share in GKL/KV
was 17.1% in 2014. The Government aims to raise this to 40% by 2020, and 20%
in other capital cities. To increase public transport modal share by commuters,
investments in new infrastructure, along with greater intermodal integration will
be undertaken to ensure seamless travel. Suitable public transport modes will be
developed based on travel demand.
The Klang Valley Mass Rapid Transit (KVMRT) system will become operational
during the Eleventh Plan. The KVMRT Line 1 will traverse 51 km between Sungai
Buloh and Kajang, through 31 stations serving about 1.2 million people with a
daily expected ridership of 400,000 as shown in Box 7-1. Construction on KVMRT
Line 2 will also start in 2016 and is estimated to become operational by 2022.
Additionally, construction on a Light Rail Transit (LRT) Line 3 connecting Bandar
Utama to Klang, running over 36 km and serving 25 stations will start in 2016 with
expected completion in 2020.
KTMB is the sole operator of intercity rail services and offers public transport
options. KTMB will continue its transformation exercise to improve overall
operations, including organisation structure, route rationalisation, and review of
fare and freight charges, to provide a better service to the public. Service reliability
and operational performance will be improved by addressing engineering issues,
rolling stock management, and infrastructure maintenance.
Deploying roads and public transport to increase rural and

rural-urban connectivity
Rural roads linking the main road networks will continue to be given focus. These
roads provide access to basic social amenities such as health, education, and
other public services. Rural roads will also create economic opportunities for the
residents and further alleviate poverty among the rural households. Bus networks
will complement rail networks to provide efficient last-mile connectivity. Express
bus services will be rationalised to make it efficient, safe, and sustainable. Its
network will be restructured to provide more regular and frequent services, taking
into account low demand areas.
Source : MRT Corporation
Beyond roads, an efficient public transport service is important to facilitate

mobility within, and to urban centres. This improves accessibility to social
amenities and promotes economic activities. In this regard, the Stage Bus
Services Transformation (SBST) Programme will be extended to rural areas and
provide greater coverage. Alternative community-based public transport service

such as minivans, and the use of private vehicles, will be considered for
remote areas. Box 7-2 provides details on the SBST Programme.
The Government will continue to enhance connectivity and safety
of rural air services by improving short take-off and landing airstrips
(STOLports). The construction of a new airport in Mukah will be
completed in 2018 and the relocation of Lawas STOLport in Sarawak
to a suitable site will be carried out. MASwings, the designated
community airline for Sabah and Sarawak, will utilise the new ATR 72
and Viking aircrafts to improve its efficiency. Currently there are 49 RAS
routes which serve communities across Sabah and Sarawak as shown
in Exhibit 7-8. These routes will be rationalised to ensure that support
on rural air services is targeted towards the right areas.
Optimising transport planning

The transit-oriented development (TOD) concept will be promoted
to optimise land use and public transport infrastructure planning.
TOD concepts will be expanded in urban areas to maximise access
Box 7-2
Stage Bus Services Transformation Programme

The SBST Programme is an ambitious effort to completely transform the stage bus
business model towards financial self-sustainability and increased levels of service for
commuters. The SBST will be rolled out in phases starting in 2015 across Seremban,
Kuching, Kangar, Ipoh, and Kuala Terengganu and extending to other cities and rural
areas during the Eleventh Plan. Major shifts under the SBST Programme include:
From
To
SUSTAINABILITY
Bus operators dependent on fare box

collection only
Gross cost service delivery contract model

where operators are paid per kilometre of
service provided
ACCESSIBILITY
Areas without sufficient ridership are

underserved in terms of availability of
service and frequencies of service
Minimum level of accessibility provided based

on network and service levels determined by the
regulator
Large variance in quality of service across

various operators, and across regions
Stringent performance monitoring through

global positioning system (GPS) and geofencing data to track reliability, on-time
performance, safety and other key indicators
SERVICE QUALITY
7-18
7-19
to quality public transport and to attract private investments for

commercial and residential purposes. This will help reduce traffic
congestion and improve air quality, making cities more liveable.
Planning for development of road and rail networks will be integrated,
to promote a multimodal transport system. Mechanisms for regular
engagement between stakeholders and transport planners will be

established to avoid fragmented planning. Efforts will be undertaken to
promote the modal shift from road to rail in transporting cargo between
hinterland and ports.
Rural air service routes
Exhibit 7-8
Rural air services routes
RAS routes
Kudat
Population size, thousand

1-40
40-140
>140
Kota
Kinabalu
Weekly frequency of RAS

<5
Sandakan
5-29
30-50
Labuan
Lahad Datu
Limbang
Lawas
Miri
Mulu
Long
Seridan
Marudi
Bakelalan
Bario
Long
Lellang
Bintulu
Mukah
Long Akah
Tanjung
Manis
Sibu
Kuching
Source: MOT
Long Banga
Tawau

Strategy A2
Improving safety, efficiency, and

service levels of transport operations
Strategies to expand Malaysias transport network and enhance
intermodal integration must be further complemented by efforts to
improve the systems safety and efficiency as well as users level of
comfort. This approach will encourage commuters to trust and use
the public transport options available to them, move away from private
transport, and create a more equitable and environmentally sustainable
transport system.
Shifting towards preventive maintenance

Maintaining assets in good condition is crucial to ensure the road
and rail network continues to be effective, and functions to required
standards throughout its lifespan. Road maintenance programmes
will focus on preventive maintenance by adopting a life-cycle costing
approach. Utilisation of advanced materials and innovative technology
in road construction and maintenance will be intensified to ensure
durability of road infrastructure. Maintenance of rail assets will focus on
refurbishment of rolling stocks and replacement of tracks and sleepers.
Improving road and rail safety

Road and rail safety will be improved during the Eleventh Plan.
Blackspot Mitigation Programme and Road Safety Audit will be
intensified to reduce road accidents and fatalities. This will reduce road
fatalities by 50% by 2020 as per the recommendations of the United
Nations Decade of Action for Road Safety 2011-2020. Response time
to address road hazards, including landslides and potholes, will be
shortened. Rail safety for heavy rail will be enhanced through track
upgrading, electrification, signalling and communication system
improvement, as well as rolling stocks replacement.
Upgrading air navigation system and airport

infrastructure
A new Kuala Lumpur Air Traffic Control Centre will be built at KLIA to
replace the National Control Centre at Subang, Selangor to improve
aircraft movement capacity. In addition, the Communication, Navigation
and Surveillance as well as the Air Traffic Management systems will
7-20
be upgraded to improve efficiency of air navigation services. This

will increase aircraft movements from 68 movements per hour to 108
movements to strengthen KLIA as the main gateway. The Langkawi
International Airport, Kedah and the Sultan Ismail Petra Airport, Kelantan
will be upgraded to cater for the expected increase in passengers.
Strategy A3
Expanding port capacity, access, and

operations
As Malaysia integrates further into the ASEAN Economic Community
and the global economy on the whole, economic growth through trade
and exports will necessitate greater capacity and efficiency of its port
infrastructure. To address this, attention will be given to expanding
capacity of ports and address issues in congestion.
Implementing the National Port Policy

The National Port Policy will be implemented to foster systematic
development and growth of ports and jetties by introducing
comprehensive strategy and policy measures. The policy will provide
a regulatory framework for further developments in capacity, and will
improve efficiency by streamlining the functions of all ports and jetties.
Major hub ports will be strengthened by networks of secondary ports
to improve competitiveness of the national logistics chain. In addition,
port development will take into account land use planning to ensure the
sustainable growth of major ports.
Creating a port community system

A single communications platform will promote information sharing
among ports and private stakeholders such as logistics firms and
customs agents. All port authorities will be required to establish their
port community system (PCS), an open electronic system that enables
intelligent and secure information exchange between public and private
stakeholders. PCS optimises, manages, and automates port and
logistics processes through a single window for interaction. This will
improve the efficiency of port operations and competitiveness while
strengthening strategic alliances among stakeholders.
7-21
Improving port accessibility and capacity
Establishing the Malaysian Aviation Commission
Accessibility to major ports will be improved to cater for bigger vessels

through channel deepening works. In addition, port operators will
undertake capacity expansion, which includes building additional berths
and wharfs. These improvements will attract more international liners
and mega vessels with capacity of 18,000 TEUs to call at these ports.
The incorporation of the Malaysian Aviation Commission in July 2015,

an independent regulatory body, will enable a more structured and
systematic aviation industry. The responsibilities of the commission
include economic regulation and consumer protection as shown in
Exhibit 7-9. It will also undertake policy and planning functions to
manage capacity and competition via licensing, route allocation, and
streamlining airports according to its hierarchy. The Department of
Civil Aviation (DCA) will continue to serve as the technical, safety,
and security authority. The possibility of corporatising DCA will be
assessed during the Eleventh Plan.
Strategy A4
Strengthening regulatory and

institutional framework for the
transport industry
Greater attention will be given to strengthen the institutional and
regulatory framework for public transport, port, and civil aviation. This
will ensure that development in these sectors is planned, structured,
and systematic to remain competitive and sustainable.
Introducing a national transport model

A national transport model will be introduced to strengthen interagency collaboration in formulating integrated transport policies. This
will facilitate demand and capacity assessments of new transport
infrastructure based on current and future development needs.

Exhibit 7-9
Roles of the Malaysian Aviation Commission
Roles of the Malaysian Aviation Commission

Airline licensing via ASL/ASP
Issue, renew, and revoke airline licenses
for airlines with approval of technical
certification from DCA (AOC)
Traffic rights
allocation
Allocate traffic
rights through a
transparent
process and revoke
traffic rights that
are underutilised
Slot allocation
Oversight of the airport
operator as slot manager
Source: Malaysian Aviation Commission Bill, 2015
Consumer
protection
Establish and
enforce
minimum
standards for
consumer
protection
across all
airlines
Aviation
Commission
Public Service
Obligation (PSO)
Conducts nondiscriminatory
process to select
carriers to serve
and allocate
financial support for
those routes
Airport operator licensing
Issue, renew, and revoke airport
operator licenses for airport operators
with approval of technical license from
DCA (aerodrome license)
Ground handling
Issue, renew, and revoke
ground handling licenses
for self-handling (new) and
third party licenses
Competition
Aviation
competition to be
regulated by the
AC, including
mergers
Airport charges
Regulates airport charges, in line with
the terms defined in the current and
future Operating Agreement (OA)
between the airport operator and the
Government
Dispute resolution
Special committee
formed for dispute
resolution for any
aviation service player
7-22
7-23
Focus area B
Unleashing growth of logistics and enhancing trade

facilitation
Efficient and high-performing logistics and trade facilitation are
important determinants of a countrys competitiveness, as well as an
important source of employment. Malaysia has a high aspiration to
become the preferred logistics gateway to Asia, and improve its ranking
in the World Bank Logistics Performance Index from top 25 in 2014 to
be among the top ten by 2020. Exhibit 7-10 shows Malaysias current
performance compared to selected regional peers. By 2020, Malaysia
aims to achieve an annual growth of 8.5% for the transport and storage
subsector, creating an additional 146,000 jobs, mostly high-skilled.
These aims will be met through the following strategies:
Strategy B1: Strengthening the institutional and regulatory
framework through the National Logistics Task Force (NLTF) and
regulating other functions such as off-dock depots, warehousing
activities, and commercial vehicle registrations;
Strategy B2: Enhancing trade facilitation mechanisms through
collaboration to reduce cargo clearance time and greater paperless
trading;
Strategy B3: Building freight infrastructure efficiency and
capacity by improving last-mile connectivity at Port Klang and
expanding air and rail freight infrastructure;
Strategy B4: Deploying technology in the logistics chain
through development of virtual selling platforms and supporting
logistics infrastructure for e-commerce; and
Strategy B1
Strengthening institutional and

Formation of the National Logistics Task Force
The Ministry of Transport (MOT) will champion the development of the
logistics sector through the NLTF. Chaired by the Minister of Transport,
the NLTF will implement the National Logistics and Trade Facilitation
Master Plan, providing strategic direction for the development of
the logistics industry and further improving its productivity and
competitiveness. Five cluster groups have been established,
responsible to drive specific action plans proposed in the Master Plan,
monitored by the NLTF. In addition, the Special Committee for Services
Sector, chaired by the Prime Minister, will provide oversight to resolve
cross-cutting issues.
Regulating off-dock depots

The Land Public Transport Commission (SPAD) will be given the mandate
and capacity to ensure the orderly development of off-dock depots.
These depots will be regulated through operating licences and standard
guidelines. An organised off-dock depot management system will
decongest ports and deliver efficient cargo operations at competitive cost.
Planning and development of warehousing activities
The planning and development of warehousing activities will be placed

Strategy B5: Strengthening the capabilities of logistics service under the purview of MOT. The ministry will collaborate with the
Ministry of Urban Wellbeing, Housing and Local Government (KPKT) to
providers through training and accreditation programmes.
develop standards and specifications for warehouses, identify suitable
locations, and improve approval processes. In addition, both ministries
will develop a national warehouse inventory website to manage
information on the warehousing segment.

Simplifying and streamlining regulations

Efforts will be focused on simplifying the commercial vehicle
registration process. In addition, processing time for application of
landing permits for non-scheduled flights will be shortened. To enable
these improvements, complex and ineffective regulations will be
Exhibit 7-10
Comparison
of logistics
sector performance
performance in 2013versus
Malaysias
logistics
Malaysia
Indonesia
simplified and streamlined to improve efficiency and reduce costs. In

order to optimise vehicle utilisation and enhance road freight efficiency,
the axle load for heavy vehicles and the interchangeability of prime
movers for different trailers will be reviewed.
regional players
Thailand
Singapore
Hong Kong
Higher
performance
Lower
performance
Air
Sea
Air Transport
(million tonne-km)
1,990.9
959.1
2,644.4
6,512.2
9,439.9
Air Freight Volume

(million tonne)
0.9
1.5
1.6
1.8
4.1
Container Traffic
(million tonne)
20.8
10.1
7.9
32.6
22.4
Sea Freight Volume

(million tonne)
506.2
1,470.5
198.5
560.9
276.1
Import
485.0
660.0
760.0
440.0
595.0
Export
450.0
615.0
595.0
460.0
590.0
Procedures (no.)
13.0
17.0
7.0
10.0
5.0
Time (days)
74.0
211.0
113.0
26.0
66.0
Import
8.0
23.0
13.0
4.0
5.0
Export
11.0
17.0
14.0
6.0
6.0
Trade Costs
(US$ per container)
Land
Building a warehouse
Warehouse
Trade
Facilitation
Source: EPU
7-24
Time Requirement
(Days)
7-25
Strategy B2
Strategy B3
Enhancing trade facilitation

mechanism
Building freight infrastructure efficiency

and capacity
Collaboration to reduce cargo clearance time
Strengthening last-mile connectivity to Port Klang
Collaboration between the Royal Department of Customs and permit

issuing agencies will be strengthened to shorten cargo clearance
processing time without compromising security. The Special Task
Force to Facilitate Business (PEMUDAH) will lead this initiative with the
Malaysian Productivity Corporation as secretariat.
The last-mile connectivity to Port Klang, Selangor via road and rail will
be improved to cope with the rise in container volume. Priority will be
given to upgrading the rail link between Westport and Northport to
reduce congestion and encourage rail freight. Critical stretches along
Jalan Pelabuhan Utara and Pulau Indah Expressway will be upgraded
to ease congestion and enable the seamless movement of goods. In
addition, the usage of traffic information systems will be promoted for
better traffic management within Port Klang.
Moving to paperless trading

Paperless trading will be driven through u-Customs to encourage
industry players and permit issuing agencies to gradually reduce the
usage of hardcopy documents. The security of the trade documents
will be enhanced with better features and standards to ensure only
genuine documents are used.
Expanding capacity for air and rail freight

The Padang Besar Terminal in Perlis will be upgraded to capture
the potential growth in cargo volume, anticipated to reach 245,000
TEUs by 2020 from 120,000 TEUs in 2014. Among the measures to be
undertaken include expanding the yard to create an extra container
stacking area, providing extra load-on/load-off spaces, and increasing
the number of train services.
The cargo handling facilities and freighter service at Kota Kinabalu
International Airport will be upgraded based on demand to support
the export of agricultural produce, particularly aquacultural products.
In addition, the need for cargo facilities such as cool ports and staging
areas to consolidate and facilitate cargo movement at KLIA will be
reviewed. In addition, the former low-cost carrier terminal will be
transformed into a regional cargo hub.

7-26
Strategy B4
Strategy B5
Deploying technology in the

logistics chain
Strengthening capabilities of logistics

service providers
Promoting the development of virtual selling platforms
Investing in training and human capital development
Virtual selling platforms will be promoted to match logistics supply and

demand. The private sector, through freight associations, will take the
lead in establishing platforms, driven through the National Logistics
Task Force. This initiative will enable the logistics service providers to
connect with freight forwarders and publish rates and availability of
services to users, particularly the small and medium enterprises (SMEs).
Skills of professionals in the logistics industry will be enhanced through

on-the-job training programmes. In addition, universities and training
institutes will be encouraged to offer logistics-related short-term
courses or certification programmes to improve competency. Efforts
will be undertaken to enhance industry-led training through greater
collaboration between training institutions and industry experts.
Strengthening logistics facilities for e-commerce

Supporting logistics facilities for e-commerce featuring fulfilment
centres will be developed at strategic locations to increase the
efficiency and productivity of online retailers. Fulfilment centres which
offer warehousing, order processing and delivery activities provide
the platform for online retailers to outsource services. This will reduce
operating costs and enhance customer satisfaction. In addition, SMEs
will be encouraged to go online and gain access to a wider market
through fulfilment centres.
The development of urban logistics services will be given priority to
encourage efficient distribution of goods purchased online in the urban
areas. Emphasis will be given to improve fleet management, setting up
hub and spoke distribution facilities, and night logistics services. NLTF
will drive the urban logistics initiative under the Eleventh Plan.
Introducing accreditation for logistics service providers

An accreditation system for logistics service providers will be
introduced to certify companies that comply with regulations and
adopt best practices such as green logistics and information,
communications and technology (ICT) applications. Accreditation
will be made a prerequisite for companies to obtain incentives. This
initiative will enable local logistics service providers to move up the
value chain and offer higher value added services, leading to increased
service exports.
7-27
Focus area C
Improving coverage, quality and affordability of digital

infrastructure
Digital infrastructure plays a critical role in connecting businesses and
individuals to the global marketplace, allowing people to communicate
in ways never possible before due to rapid technological advances.
Malaysia aspires to ensure that its citizens and economy keep pace
with the digital global economy by expanding the successful roll-out of
digital technologies such as the High-Speed Broadband (HSBB) and
Digital Terrestrial Television (DTT). This, coupled with efforts to increase
the affordability of such services, and enhanced consumer protection
standards, will pave the way for the ubiquity of fibre connectivity,
ensuring that Malaysians have access to affordable, high-quality digital
infrastructure on par with the worlds developed economies. These
aspirations will be achieved through four strategies:
Strategy C1: Expanding and upgrading broadband
infrastructure through deploying broadband as an essential
service, improving international to last-mile connections, and
integrating digital infrastructure planning;
Strategy C1
Expanding and upgrading broadband

infrastructure
Policy measures to encourage investments in digital infrastructure will
be undertaken by improving connectivity from international to last-mile
connections to households. Greater coordination between relevant
government agencies will ensure these measures are integrated and
coherent.
Deploying broadband as essential service through

Uniform Building By-Laws
Strategy C3: Migrating to DTT by implementing the second

phase of Malaysias DTT and introducing value added services; and
An amendment in 2011 to the Uniform Building By-Laws (UBBL), 1984

stipulates that communication installations is one of the essential
services similar to water and electricity under the certification for
completion and compliance of buildings. This requires developers to
provide ready-to-use communication infrastructure for new housing
and commercial developments. The eight states, namely Johor,
Kelantan, Melaka, Pahang, Perak, Perlis, Selangor, and Terengganu,
which have gazetted the new UBBL requirements will be fibre-ready
by 2018. The remaining states will be encouraged to comply with the
UBBL requirements.
Strategy C4: Strengthening infrastructure for smart cities

through better connectivity and seamless integration of urban
services.
Improving connectivity from international to last-mile

connections
Strategy C2: Increasing affordability and protection for

consumers through an improved Access Pricing Framework (APF)
and setting standards for consumer protection;
Measures will be undertaken to improve the international to last-mile

bandwidth capacity to meet the expected demand of 41 terabytes per
second (Tbps) during the Eleventh Plan. Efforts will also be undertaken
to enhance connectivity through deployment of the High-Speed
Broadband 2 (HSBB 2) and Suburban Broadband (SUBB) for a more
holistic coverage in all state capitals and selected high-impact growth
areas as shown in Exhibit 7-11.

Exhibit 7-11
HSBB 2 and SUBB proposed coverage
HSBB 2 and SUBB proposed coverage

High-Speed Broadband 2
Perlis
Covers all state capitals and

selected high-impact growth
areas
Kedah
Terengganu
Pulau
Pinang
Perak
Kelantan
Sabah
Pahang
Selangor
Kuala
Lumpur
by end of 2016, passing

through 410,000 premises
100 megabits per second
Negeri
Sembilan
(Mbps) broadband made

available to all households in
state capitals and highimpact growth areas by 2020
Sarawak
Johor
Melaka
250,000 ports to be installed
Suburban Broadband
Perlis
Covers suburban and rural
Kedah
areas
Terengganu
Pulau
Pinang
Perak
Additional 420,000 ports
Kelantan
Sabah
Pahang
Selangor
Kuala
Lumpur
Source: MCMC
20 megabits per second
Negeri
Sembilan
Sarawak
Melaka
through 750,000 premises to

be installed within 5 years of
project start
Johor
(Mbps) broadband made

available to 50% of
households in suburban and
rural areas by 2020
7-28
7-29
A review of the regulatory framework for international connectivity

and promotion of a conducive environment to encourage international
submarine cables to land in Malaysia will be undertaken.
Integrating digital infrastructure planning

Collaboration amongst the Ministry of Communications and
Multimedia, Malaysian Communications and Multimedia Commission
(MCMC), state governments, and local authorities will be strengthened
on the planning and deployment of digital infrastructure. Sharing of
infrastructure and smooth deployment of broadband at standard
and reduced cost will be the focus. The collaboration will ensure that
broadband supply meets both federal and state requirements.
Strategy C2
Increasing affordability and protection

for consumers
Improving the Access Pricing Framework for providers
The APF will be improved to facilitate competition and infrastructure
sharing among service providers. This is expected to reduce the fixed
broadband cost from 2.42% of GNI per capita in 2013 to 1% in 2020, in
line with the national target. This will increase affordability and improve
broadband outreach to the underserved. The APF will be reviewed in
2015 and the next review is scheduled in 2017 after the revision of the
access list. The decision on specific service pricing will be determined
as a result of the review and public inquiry. Exhibit 7-12 shows
Malaysias fixed broadband prices versus other countries in the region.
Comparison
of fixed broadband prices between Malaysia and other countries
Exhibit 7-12
Comparison of fixed broadband prices between Malaysia and other countries
Fixed broadband price, % GNI per capita 2013

8.6
6.9
5.0
Source: International Telecommunications Union (ITU), World Bank
1.3
1.0
0.9
0.6
0.4
Hong Kong
Japan
Singapore
2.0
Australia
2.1
Vietnam
Malaysia
China
India
Thailand
Indonesia
Philippines
2.4
South Korea
3.5
New Zealand
3.7
1.0
Target

Setting standards and guidelines for better consumer

protection
The self-regulatory framework under the Communications and
Multimedia Act 1998 will be strengthened to enhance consumer
protection. These improvements will provide consumers with clear
and specific criteria to measure the Quality of Service (QoS) of service
providers, as well as protect their rights in cases where minimal
acceptable standards are not met. Services such as public cellular
service, dial-up internet access, content applications, public payphone,
digital leased line service, and broadband access will be included.
In addition, the monitoring and compliance framework will also be
strengthened to impose stiffer penalties on service providers for noncompliance.
In addition, a Star Rating System for telcos will be introduced to assist
consumers in making informed choices about service providers. This
will be based on MCMCs Extensive End-Point Service Availability
Testing, a mobile network quality measurement which is conducted
twice a year to benchmark the QoS for mobile services. This effort is to
keep consumers informed and encourage mobile operators to improve
their networks and services.
The General Consumer Code (GCC) will be reviewed to provide model
procedures for service providers on reasonably meeting consumer
requirements, handling consumer complaints, protecting consumer
information and promoting a high level of consumer confidence in
service delivery from the industry.
7-30
Strategy C3
Migrating to Digital Terrestrial Television

(DTT)
DTT is a technological advancement in television that allows
broadcasting of high quality video over digitised land-based signals.
DTT therefore has lower operating costs than satellite television, but
offers a higher quality of broadcast than analogue. DTT allows higher
levels of video compression than analogue, leading to a more efficient
use of spectrum, thus releasing spectrum for wireless communication
and other uses. For broadcasters and consumers, this means better
affordability and better quality viewing on regular television, without the
need for satellite antennas.
Implementing second phase of Malaysias DTT

The second phase of the Digital Terrestrial Television (DTT) service will
be implemented in 2016-2017, covering 46 areas nationwide including 24
areas in Sabah and Sarawak. The second phase roll-out will give more
households the option to choose between DTT and satellite televisions,
increasing consumer choice.
Introducing value-added services through DTT

In addition to providing TV and radio services, DTT opens the room
for new value added services through televisions, as well as spurs
the development of content and applications, which contributes to
the growth of the content and software solutions industry. Service
options include connected services such as Catch-Up TV, video- and
application-on-demand; potential for TV-based commerce including
e-shopping, transaction and payment gateways, and delivery tracking;
and other services such as social media TV, ratings research and
analytics, and e-learning. These services will be made available after
the completion of the Analogue Switch Off (ASO), which will commence
by regions in 2016, to be completed in 2017. Examples of potential value
added services are shown in Exhibit 7-13.
7-31
Strategy C4
Strengthening infrastructure for

smart cities
As more Malaysians live in urban areas, cities are starting to face pain
points such as congestion, pollution, and inefficient deployment of
urban services. Smart Cities is a next generation approach to urban
management with solutions that address these issues and improve the
quality of life of urban dwellers as shown in Exhibit 7-14.
Efforts will be undertaken by the Ministry of Communications and
Multimedia to ensure smart living in cities. In this regard, emphasis will
be placed on addressing major pain points related to urban services

such as providing better transportation as well as utilities and waste
management. To enable connectivity and seamless integration of
services, focus will be on developing pervasive broadband, sensor
networks and applications. Data will also be made available on an open
basis to support analytics and planning as well as create opportunities
for open innovation by businesses and individuals.
During the Eleventh Plan, a framework will be developed to prioritise
areas of focus in the development of smart cities. A fundamental
initiative to realise the migration to smart cities will be the development
of smart communities.
Value-Added Services through Digital Terrestrial Television
Exhibit 7-13
Examples of value-added services through DTT
Connected
Services
NOT EXHAUSTIVE
Catch-Up TV
Video-on-Demand
ApplicationonDemand
Online Games
Web TV
Multi-Screen Video
Video Contribution
Network
T-Commerce
& Applications
Services
E-Shopping
Ordering Services
Transaction & Payment
Gateway
Third Party Integration

Management
Delivery Tracking
Soft Services
Hot Line
Ratings Research &
Analytical Customer
Relationship
Management
E-Learning Application
Social Media TV
Voting
Source: MCMC
Programme Guides
Schedule Data
Enhanced
Subscription Radio
On-Screen Chat
Subscription
Management System
Playout

7-32
Exhibit 7-14 of Smart City initiatives

Overview
Overview of smart city initiatives
NOT EXHAUSTIVE
City pain points addressed

Cost
Environment
Reliability
Health
Time
Safety
Competitiveness
Smart City Solutions

Better energy management
Better services around transport
Smart meters & demand

management
Distribution & substation automation
Building energy management
13 Adaptive traffic control

(real time signal optimisation)
Streetlight, building and structural

health monitoring
14 Fleet monitoring, maintenance,

and location services
11 Congestion zone & lanes

12 Smart parking meters & pricing
15 Integrated intermodal fare payment

Better water management
5
Smart meters & demand

management
Leak identification and

preventive maintenance
Water quality monitoring
Stormwater response
Better air management

9
Other services
16 Citizen information and complaint management
17 Video crime monitoring
18 Citizen sourcing (empowering citizens to be the citys
eyes and ears)
Air quality monitoring
Better waste management

10 Smart solid waste management
Source: McKinsey & Company

Source: Based on How to Make a City Great, McKinsey & Company Cities Special Initiative 2013
7-33
Focus area D
Continuing the transition to a new water services

industry framework
Access to clean water and sewerage represents one of the most basic
foundations of life. Malaysia today has already achieved impressive
outcomes with close to 95.1% of its population having access to clean
and treated water. The Government remains committed to expanding
coverage and improving the quality of the water services industry
nationwide. To achieve these objectives, the Water Services Industry
Act (WSIA) was introduced in 2006. The Act aims to protect long-term
financial sustainability and enable continuous renewal of the industry.
In addition, the Government remains committed to tackling the longstanding issue of non-revenue water, currently at a national average of
36.6%, a major inefficiency in the industry that must be addressed. To
achieve these aspirations, the following four strategies will be pursued
during the Eleventh Plan:
Strategy D1: Raising the financial sustainability of the
water services industry by strengthening the tariff system and
implementing joint billing for water and sewerage;
Strategy D2: Expanding network and treatment plant capacity
through infrastructure investment and use of efficient
technology, through new treatment plants and expanding
connected water and sewerage services;
Strategy D3: Increasing efficiency and productivity of water
and sewerage services through implementation of the NonRevenue Water Reduction Programme and by rationalising and
upgrading sewage plants; and
Strategy D4: Strengthening the regulatory framework of the
water services industry with the National Sewerage Master Plan,
a water demand master plan and promotion of waste to wealth
initiatives.
Strategy D1
Raising the financial sustainability of

the water services industry
Strengthening the tariff setting mechanism
Capital expenditure for water treatment and distribution will be financed
through the Perbadanan Aset Air Berhad (PAAB) to reduce the amount
of financial support required from the Government. The viability of this
arrangement will need to be tied to a new tariff setting mechanism
that promotes full cost recovery. This will ultimately ensure that water
services operators are financially sustainable.
A new tariff setting mechanism will also be implemented for sewerage
service to cover operational cost. This will ensure that service operators
are able to carry out scheduled maintenance, minimising incidences of
non-compliance and safeguarding the environment.
Implementation of joint billing for water and sewerage

services
WSIA aims to integrate both water and sewerage services as a single
industry. To this end, a joint billing exercise between water and
sewerage services will be implemented based on a volumetric formula
for sewerage tariffs. This is expected to increase collection rates by
20% to 30% for sewerage services, allowing operators to be financially
sustainable.

Strategy D2
Strategy D3
Expanding network and treatment

plant capacity through infrastructure
investment and use of efficient
technology
Increasing efficiency and productivity

of water and sewerage services
7-34
Implementing a holistic non-revenue water (NRW)

reduction programme
During the Eleventh Plan, NRW will be reduced from 36.6% in 2013 to
25%, as shown in Exhibit 7-15, with the implementation of a holistic
The Government will ensure water supply sustainability, especially in
NRW reduction programme. The reduction of 11% in NRW will result
stressed areas, by constructing new treatment plants or upgrading
in an additional revenue of up to RM410 million annually. One of the
existing ones. Focus will be given to states which have water supply
initiatives is to develop comprehensive district metering zones, which
reserve margins of less than 10% such as Kedah (0%), Selangor (4.5%), also include meter and pipe replacement programmes, and pressure
and Negeri Sembilan (7.5%). With the completion of the Langat 2 Water control management. Enforcement on illegal tapping will also be given
Treatment Plant (WTP), the water supply reserve margin for Selangor
priority. Regulations to require contractors to only use trained workers
will reach 14%. Similarly, the upgrading of Kulim High Tech WTP and
in pipe works will be enforced.
Batu Kitang WTP will increase reserve margins for the Kulim High Tech
Rationalising and upgrading sewage treatment plants
Industrial Park in Kedah to 10% and for Kuching in Sarawak to 13%.
Developing new treatment plants
Increasing clean and treated water coverage

The Government aims to have 99% of the population served by clean
and treated water by 2020. Alternative water supply systems such
as rain water harvesting, tube wells, and gravity feed systems will be
expanded in rural areas - particularly in Kelantan, Pahang, Sabah,
and Sarawak. Efforts to expand connected water supply coverage in
these states will continue, supplemented by these alternative systems.
These systems will be tailored to local requirements, geographical
considerations, and cost effectiveness considerations. Rain water
harvesting systems will be adopted in remote areas with high rainfall while
gravity feed systems will be adopted in highland areas with limited access.
Expanding connected sewerage services in rural areas
In the Eleventh Plan, 3,000 small and inefficient sewage treatment plants
will be rationalised through the construction of regional and centralised
plants with larger capacities and more efficient technologies. These
plants will be considered for areas that have sufficient demand. In areas
where such plants are not feasible, existing treatment plants will be
upgraded with new mechanical and electrical components to ensure
effluent levels are compliant with standards. This rationalisation is
expected to reduce the cost of electricity bills and manpower by 50%.
Alternative financing methods based on privatisation concepts will be
further promoted as a new source of capital.
Strategy D4
Connected sewerage services will be extended to rural areas through

solutions tailored for population agglomerations of less than 5,000
people. This will reduce the use of individual septic tanks and pour
flushes, which are both major threats to the environment and public
health, and result in a two million population-equivalent reduction.
Priority will be given to areas bordering water sources and polluted rivers. A comprehensive policy will be prepared for implementing agencies,
industry players, and relevant stakeholders to guide the water services
industry towards sustainability. This is to promote better and more
Strengthening the regulatory

framework of the water services
industry
7-35
coordinated planning through an enhanced understanding of the supply

and demand chain from all sources.
Developing the National Sewerage Master Plan

The National Water Services Commission (SPAN) will develop the
National Sewerage Master Plan to provide integrated and holistic longterm policy directions and strategic shifts for the sewerage services
industry. The master plan will include strategic plans on identification
of catchment areas, rationalisation of treatment plants, and funding
mechanisms. It will also provide appropriate strategies to encourage
migration from individual septic tanks and pour flush to standardised
treatment systems to minimise pollution.
Promoting waste to wealth for sewerage

Waste to wealth initiatives will be actively promoted for sewerage
service operators. These operators will be encouraged to tap sewage
by-products. Guidelines will be introduced under the National

Sewerage Master Plan to lay necessary requirements to support
these initiatives. In addition, service operators will be encouraged to
strengthen their standard operating procedures.
Establishing a water demand management master plan

The Ministry of Energy, Green Technology and Water (KeTTHA) will
develop a master plan on water demand management, which will
enable better demand management and provide tools to forecast water
demand. Priority will be given to reduce the use of treated water for
non-potable uses by using alternative water sources such as rain water
harvesting, storm water, and treated waste water. The revision of tariffs
will also be used as a water demand management tool. In addition,
communications, awareness and education programmes will be
intensified to promote the efficient and prudent use of water.
Exhibit 7-15
Non-revenue water by states in 2013
Non-revenue water by states in 2013
62.4
50.9
1 Selangor includes FT Kuala Lumpur and FT Putrajaya

Source: SPAN
26.4
25.9
22.1
18.2
Pulau Pinang
30.4
36.6
Current
Melaka
31.3
WP Labuan
33.8
Johor
34.5
Perak
N. Sembilan
Kedah
Pahang
Kelantan
Sabah
Perlis
36.3
Sarawak
52.7
Terengganu
53.1
Selangor1
53.2
25
Target

7-36
Focus area E
Encouraging sustainable energy use to support growth

The security of energy supply is of paramount importance as energy is
the primary driver of the nations growth affecting not only the quality
of life for all Malaysians but also enabling the continued growth of the
economy. Malaysia is committed to ensuring energy security for the
nation while improving infrastructure and service delivery for the oil, gas
and electricity subsectors. Underpinning these efforts are continuing
policies to rationalise energy subsidies and move towards a marketbased energy pricing so that energy resources are utilised optimally.
These aims will be achieved through five strategies:
Strategy E1: Strengthening stakeholder coordination and
collaboration in the energy sector through greater institutional
collaboration on energy planning and engaging end-users on
efficient energy consumption;
Strategy E2: Ensuring the security and reliability of supply for
the oil and gas subsector within a market-based approach and
reducing market distortions;
Strategy E3: Enabling growth in the oil and gas subsector in
downstream oil and gas refining, introducing third party access
regulation to allow new entrants into the gas business and
implementing clean fuels in the transport sector;
Strategy E4: Managing supply diversity for security of the
electricity subsector through better management of resources,
enhancing alternative energy sources, and augmenting rural
electrification; and
Strategy E5: Improving the sustainability, efficiency, and
reliability of the electricity subsector with a sustainable tariff
framework and initiatives to improve efficiency and reliability of
electricity supply.
Strategy E1
Strengthening stakeholder
coordination and collaboration in the
energy sector
Fostering greater institutional collaboration on
energy planning
A comprehensive governance, that allows for more structured interagency collaboration in the area of planning and management for
the energy sector, will be instituted. A high-level focal point in the
Government will be established to oversee and streamline all energy
related policy decisions and execution. In this regard, National
Petroleum Advisory Council will oversee comprehensive planning and
management of the energy sector and streamline the interests of all
parties.
Engaging end-users on efficient energy

consumption
A comprehensive and effective communication plan on the sustainable
use of energy resources is required to improve public awareness
and understanding, and to manage public perception of the subsidy
rationalisation programme. This includes communications and public
awareness programmes to build buy-in for the development of coal and
nuclear power plants required for security of supply, and for consumers
to use energy efficiently in homes, schools, and at workplaces. A task
force comprising of representatives of the Government, the private
sector, and non-government organisations (NGOs) will be formed to
ensure coordinated implementation of the plan.
7-37
Strategy E2
Ensuring the security and reliability of

supply for the oil and gas subsector
within a market-based approach
Ensuring security of supply for gas
Gas supply security would be ensured through the construction of
pipelines from the Malaysia-Thailand Joint Development Area to Kerteh,
Terengganu; construction of the RGT-2 in Pengerang, Johor; and the
commissioning of two floating LNG units offshore Sabah and Sarawak
with a capacity of 2.7 mtpa. In addition, to ensure undisrupted supply
during emergencies, a swing field offshore east of Peninsular Malaysia
will provide an additional 100 - 200 mmscfd of natural gas. These
additional volumes, together with a 15% buffer of storage capacity from
RGT-1 in Sungai Udang, Melaka, will cater for gas demand in Peninsular
Malaysia.
Reliability of gas supply in Sabah will be improved with additional
pipeline connections from offshore fields to demand centres in FT
Labuan, as well as Kota Kinabalu and Kimanis in Sabah. Platforms
will be connected through multiple links to provide alternative bypass
options and provide capacity to users in the event of platform
shutdowns. Improved connectivity for FT Labuan will be realised
through the establishment of a pipeline connection between the
Sabah-Sarawak Gas Pipeline and FT Labuan. In addition, advanced
technology will be deployed in mature and marginal fields to monetise
stranded gas.
Distribution of natural gas to scattered and uneconomic demand
areas in Peninsular Malaysia and Sabah will be served through virtual
pipelines, which is a method of distributing natural gas from city gate
to consumers using trucks. This will reduce the cost of production for
industries. Safe and economic alternative distribution methods for
natural gas will also be explored.
Reducing market distortion

Sustained efforts to institute market-based energy pricing will be
carried out to reduce the amount of energy subsidies. Initiatives to
review the pricing structure for gas supply will be continued during
the Eleventh Plan to gradually align current piped gas prices towards
market prices. In addition, Incentive-Based Regulation (IBR) for gas
will be introduced to ensure efficient resource allocation, usage and
sustainable financial performance. The price for RON 95 petrol, RON
97 petrol and diesel will continue to be regulated using the managed
float system to stem leakages. Compressed natural gas (CNG) prices
will also be reviewed accordingly to gradually remove subsidies and
encourage expansion of CNG retail infrastructure.
Strategy E3
Enabling growth in the oil and gas

subsector
Supporting the development of Pengerang Integrated
Petroleum Complex
The Refinery and Petrochemical Integrated Development (RAPID)
within PIPC is a major development that will add 300,000 bpd of oil
refining capacity in Malaysia during the Eleventh Plan. The facility will
be able to produce EURO 4M and EURO 5 grade petrol, in addition to
7.7 mtpa of various grades of specialised products such as synthetic
rubber and high grade polymer by 2020. In addition, the complex will
have a 1,220 MW co-generation power plant of which 620 MW will be
utilised by RAPID and the remaining 600 MW exported to the grid. The
Government will provide support to construct essential infrastructure
such as roads, drainage, and utilities for this development. Another
investment in PIPC will be secured by the Johor Petroleum
Development Corporation during the Eleventh Plan to complement
existing investments by DIALOG-Vopak and PETRONAS.
Moving towards third party access for gas supply to

allow new entrants
Third party gas players will be able to utilise gas supply infrastructure
through the enforcement of the amended Gas Supply Act, 1993 (Act
501) in 2016. This will create a level playing field for new entrants to
the domestic gas supply market complementing PETRONAS, which is
currently the sole player.

In addition, fair competition will be encouraged and a vibrant gas

supply market will be created while local industries will be weaned off
subsidies. The expected future gas industry growth is estimated to be
worth RM2.86 billion.
7-38
Strategy E4
Managing supply diversity for security

of the electricity subsector
Implementation of clean fuel in the transport sector
Ensuring electricity supply security through better

The utilisation of environmentally friendly fuel will be implemented when management of resources
RON 95 petrol with EURO 4M, and diesel with EURO 5 standards are
introduced during the Eleventh Plan. This is in line with Environmental
Quality (Control of Petrol and Diesel Properties) (Amendment)
Regulations 2013. In addition, the current B7 programme will be further
increased to the B15 programme (blending of 15% palm- based methyl
ester with 85% petroleum diesel) in all sectors by 2020. The bio-diesel
programme, which will be implemented by the Ministry of Plantation
Industries and Commodities, offers the energy sector a sustainable,
renewable, and environmentally friendly source of energy, as well as
reduces the nations dependency on imported diesel fuel.
The electricity subsector will maintain an optimum generation mix, which

takes into account economic, social, and environmental factors. This will
be guided by the Hirchmann-Herfindahl Index or HHI5, a fuel diversity
index which will be adopted for efficient management of resources.
During the Eleventh Plan, the optimisation of fuel mix and exploration of
alternative fuels will be given priority to reduce the nations dependency
on fossil fuels for electricity generation. The expected electricity
generation mix is shown in Exhibit 7-16.
Malaysias electricity generation mix

Exhibit 7-16
Generation mix in Malaysia

Coal
Generation mix, % total GWh

2010
2015e
2020e
Gas
42%
1%
52%
43%
5%
40%
53%
Hydro
Renewable Energy
108,175
Oil
14%
29%
1%
2%
15%
158,843
3% 191,937
Estimated
Source: Energy Commission
The HHI target is set at below 0.5 in 2020. A HHI of 0.5 indicates there will be no dependence on any particular fuel while a HHI exceeding 0.5 reflects overdependence on certain fuel resources. The HHI for
2014 is 0.45, which indicates a healthy index.
7-39
The Government will ensure that future power planting up must

incorporate more stringent emission control technologies to ensure
a progressive reduction of the energy industrys carbon footprint.
Usage of clean and green energy sources in power generation will be
made a priority and is expected to be increased substantially in the
generation mix. Malaysia needs the right balance between economic,
environmental, technology adaptation, and social considerations to
ensure all aspects are considered before installing new capacity.
Enhancing alternative energy sources

The Government will study new potential RE sources to enhance the
generation mix. During the Eleventh Plan, biomass and biogas power
plants will be pursued because of the large potential of these sources.
In addition, other RE sources such as wind, geothermal, and ocean,
as well as off-grid RE facilities, will be explored and promoted. Offgrid electricity supply using RE sources in relevant local areas will be
provided in a cost-efficient manner, as successfully implemented in
other countries. Electricity generation capacity through renewable
sources including biomass, biogas, solar PV, and mini hydro are
targeted to reach 7.8% of total installed capacity in Peninsular Malaysia
and Sabah by 2020, or about 2,080 MW6.
The usage of nuclear power as an alternative energy resource
will be explored further. In this regard, an independent atomic
energy regulatory commission will be established based on a new
comprehensive nuclear law for electricity generation.
The implementation of net energy metering (NEM), especially for
solar-generated electricity, will provide savings on electricity bills
to consumers. NEM allows RE generators to use the electricity first
and feed surplus electricity to the grid. This instrument will enable
consumers to use their own generating facilities to offset their
consumption of electricity over a billing period.
Excludes large hydro projects
Augmenting rural electrification

Rural electrification programmes, especially in Sabah and Sarawak, will
be enhanced to improve national coverage to 99% by 2020, as shown
in Exhibit 7-17. Electricity supply would be provided through off-grid
generation for areas which are too far from the grid. The development
of alternative systems such as solar hybrid, mini and pico hydro will be
supported by off-grid networks to ensure wider coverage. A pico hydro
is a small-scale system with a generation capacity between 0.1 kW and
1 kW which uses flowing water to rotate electrical generator turbines.
This system is suitable for rural areas as it does not require construction
of dams and has no impact on the environment.
Community involvement in providing rural electrification will be
promoted. The Government will explore collaborations with relevant
communities to ensure sustainability of rural electrification systems.
Partnerships with NGOs will be formed to provide electricity supply
for the rural communities using micro hybrid and RE sources. The
communitys involvement from an early stage is important to reduce the
cost of development and maintenance of the electrification system.
Strategy E5
Improving the sustainability, efficiency,

and reliability of the electricity
subsector
Creating a sustainable tariff frameworks
In line with the Governments policy to gradually remove energy
subsidies, subsidy rationalisation for electricity tariffs will continue. Fuel
cost is the single largest component of the electricity tariff. Therefore,
to ensure that electricity tariffs are affordable for consumers, the
generation fuel mix needs to be balanced to optimise the cost of supply.
The Special Industrial Tariff will be abolished by 2020. In addition, future
tariff increases will take into consideration the availability of safety nets
for low-income households.

CHART
7-17
Exhibit
7-17
Rural electricity coverage in Malaysia

Rural electrification in Malaysia
Households with electricity supply (%)
Peninsular
Malaysia
98.9
99.7
99.9
99.9
84.4
92.9
95.1
99.9
88.0
94.0
99.9
Sabah
Sarawak
72.1
2010
2013
2015e
2020e
Estimated
Source: Ministry of Rural and Regional Development
e
Exhibit 7-18
Reliability
of electricity supply
Reliabilty of electricity supply in Malaysia
System Average Interruption Duration Index,
minutes per customer
Peninsular
Malaysia
60.4
50.0
424.0
Sabah
Sarawak
100.0
168.0
157.0
2013P
2020T
Progress
T Target
Source: Ministry of Energy, Green Technology and Water, Energy Commission, and Sarawak Energy Berhad
P
7-40
The implementation of IBR will be continued to ensure

utility companies provide efficient services. The IBR
framework is designed to incentivise utility companies to
reduce costs and improve service levels. The separation
of generation, transmission, and distribution tariffs with
automatic adjustments to take into account changes in fuel
prices will increase transparency and efficiency of electricity
supply as is illustrated in Box 7-3. New additions of power
plants and extensions of existing power plants will continue
to be selected through competitive bidding for greater
transparency. This also creates healthy competition among
industry players which will result in more competitive tariffs,
and in turn benefits end-consumers.
Improving efficiency and reliability of electricity

supply
The efficiency and reliability of electricity supply will
be further improved through continued investment in
generation, transmission, and distribution projects by utility
providers. New investment in generation capacity and
reinforcement of transmission, and distribution networks
will continue in the Eleventh Plan. Construction of new
power plants to produce 7,626 MW will be initiated to
replace retiring plants and meet the growing peak demand.
A number of 500 kV and 275 kV transmission projects to
reinforce the grid systems will be completed to enhance
the security of supply to major load demand centres. The
additional generation capacity coupled with expanded
transmission and distribution networks will improve the
SAIDI for Peninsular Malaysia, Sabah, and Sarawak as
7-41
Box 7-3
Incentive-based regulation for the electricity subsector

What is incentive-based regulation?
Incentive-based regulation (IBR) is a core part of the Malaysia
Electricity Supply Industry (MESI) restructuring exercise which
began in 2009. The first regulatory period of the IBR was
launched in January 2014.
It marks a significant structural shift away from the original
model towards one of greater transparency as each business
unit of Generation, Transmission, Distribution, Single Buyer and

System Operator is unbundled from an accounting standpoint.
Under this new model, the Energy Commission, approves the
electricity tariff based on a 3-year operations and investment
plan submitted by the power utility company. The IBR model
further incentivises efficiency gains by the utility, the benefits of
which can be passed through to the consumer.
Benefits of the IBR

Incentive
based regulation
concept
Incentive
Based Regulation
concept
Before IBR
Efficient. Incorporates mechanisms to incentivise cost

efficiencies over every regulatory period and allows the
efficiency gains to be passed through to end-users;
After IBR
IPPs
Generation
Transmission
IPPs
Generation
SLAs
System
Operations
PPAs
Single Buyer
Transmission
Distribution and
Retail
Electricity tariff
System
Ops tariff
Transmission
tariff
Customer service
Electricity tariff
Generation
tariff
Transparent. Allows the regulator greater transparency over

the operational and financial performance of every business
unit including Generation, Transmission, Distribution, Single
Buyer, and System Operator;
Financially Sustainable. Enables periodic pass-through of
fuel-related and other generation specific costs through the
Imbalance Cost Pass-Through mechanism, while providing a
fair return to the utility; and
Enables Growth. Allows for recovery of future investments,
provided they are done in a cost-efficient manner, and
therefore ensures security of electricity supply to the nation.

Conclusion
Good infrastructure is a fundamental enabler of economic
expansion, social inclusion and growth. In the Tenth Plan, network
expansion of infrastructure such as road, rail, water, digital
infrastructure, gas and electricity were undertaken to improve
accessability and standards of living. In the Eleventh Plan, investment
in roads, rail, ports, and air services will be balanced with efforts
to improve productivity, efficiency, and service level of such
infrastructure. To enhance national competitiveness and lower the
cost of doing business, the logistics services will be improved and
trade facilitation mechanisms will be strengthened. The capacity
and coverage of water services and digital infrastructure will be
expanded with greater emphasis on efficiency and affordability. The
security and reliability of the energy supply will be strengthened
by addressing both supply-side and demand-side measures. The
successful implementation of the strategies outlined will enable
Malaysia to achieve its vision of becoming an advanced economy
and inclusive nation by 2020.
7-42
Re-engineering
economic
growth for
greater
prosperity
Overview
Highlights
Small and medium

enterprises (SMEs)
Liberalisation and regulatory
reform
Looking back
2011-2015: Progress
Innovation
Services sector

2016-2020
Manufacturing sector
Agriculture sector
Construction sector
Regional economic corridors

development
Moving forward
2016-2020
Focus area A: Transforming
services
Focus area B: Energising
manufacturing
Focus area C: Modernising
agriculture
Focus area D: Transforming
construction
Focus area E: Growing
dynamic SMEs
Focus area F: Translating
innovation to wealth
Focus area G: Investing
in competitive cities and
regional economic corridors
Conclusion
8-1
Overview
Malaysia continued to achieve steady economic growth and is poised to attain
the aspiration of becoming an advanced economy and inclusive nation by 2020.
In order to achieve this goal, the nation will need to ensure that its economic
focus pivots towards high-value and knowledge-intensive activities. Small and
medium enterprises (SMEs) will continue to be strengthened to increase
their share in terms of Gross Domestic Product (GDP) and exports. Efforts to
promote innovation will be undertaken at the enterprise and societal levels.
Regional economic corridors will be further developed to ensure balanced
development. In addition, there will be greater investment in selected cities to
enhance their global competitiveness and gain from economic agglomeration.
During the Tenth Malaysia Plan, 2011-2015, all sectors of the economy
witnessed positive growth with the services sector taking the lead. Regulatory
reforms and further liberalisation increased the ease of doing business
and measures to strengthen human capital provided the foundation for
stronger sector outcomes. SMEs continued to propel the economy. The
strategies implemented resulted in more inclusive and sustainable growth,
reflected by rising household income, low unemployment rate, benign
inflation, and a robust financial system. However, challenges still lie ahead
for Malaysia. While economic fundamentals are solid, as a small and open
economy, Malaysia remains exposed to external risks and shocks. To
further strengthen its economic resilience, Malaysia will need to focus
on enhancing productivity, unlocking innovation, and maximising its
export potential.
In the Eleventh Malaysia Plan, 2016-2020, strategies are formulated to

accelerate economic growth and promote towards an economy that
will be driven by high-value and knowledge-intensive activities. The focus will
be on quality growth, sectoral governance reforms, and enhancing
internationalisation of products and services. A more cohesive and comprehensive
approach to raise productivity will be implemented across national,
industry, and enterprise levels. The ecosystem to stimulate private
investment, innovation, and exports will be further improved. The Eleventh
Plan will embark on game-changing strategies to spur economic growth
such as intensifying innovation activities and developing competitive
cities and regional economic corridors.
8-2

18, 19, 20, and 21 for further
details at www.epu.gov.my

Chapter 8: Re-engineering economic growth for greater prosperity
8-3
Highlights
6.3%
2,550
RM
billion
Services sector
contributed
RM2,550 billion
to GDP at 6.3%
growth per
annum
4.8%
1,111
RM
billion
Manufacturing
sector contributed
RM1,111 billion
to GDP at 4.8%
growth per annum
2.4%
455
RM
billion
Agriculture sector
contributed RM455
billion to GDP at
2.4% growth per
annum
11.1%
194
RM
billion
Construction
sector
contributed
RM194 billion to
GDP at 11.1%
growth per
annum
Shifting to higher value-added economic activities
7.5%
1,606
RM
billion
SMEs
contributed
RM1,606 billion
to GDP across
all sectors at
7.5% growth per
annum

18
18
18 services
subsectors
liberalised in
2012
Malaysia ranked
18th out of 189
economies in
the 2015 World
Banks Doing
Business Report
th
33
rd
Malaysia ranked
33rd on the Global
Innovation Index
out of 143 countries
in 2014
Improving business ecosystem

for accelerated growth
64
64% contribution
to total research
and development
expenditure
by business
enterprises in
2012
8-4
175
RM
billion
Realised
investment with
427,100 jobs
created across five
regional economic
corridors
Stimulating
regional growth
8-5
Looking back
All sectors of the

economy witnessed
positive growth. The
strategies implemented
have resulted in a
more inclusive and
sustainable growth,
reflected by rising
household income, a
low unemployment rate,
benign inflation, and a
robust financial system.
During the Tenth Plan, the economy is estimated

to expand at an average annual growth of
5.3% amid a challenging external environment.
This growth is supported by strong domestic
demand and sound economic fundamentals.
The Government embarked on the Economic
Transformation Programme to further fuel
economic growth and productivity, including
further liberalisation of the services sector. The
economy witnessed sustained growth across
major sectors. In addition, there were several
achievements in terms of economic enablers,
including strengthening SMEs, liberalising
regulations to increase the ease of doing business
and enhancing the innovation ecosystem.
Sector outcomes
Services sector
During the Tenth Plan, the services sector
continued to be the primary driver of growth
and is estimated to expand at 6.3% per annum,
contributing 53% to GDP, as shown in Exhibit
8-1. Growth in the services sector was supported
largely by the wholesale and retail trade, finance
and insurance, and communications subsectors.
Investment in the services sector increased 10%
annually to RM125.3 billion in 2013, supported
mainly by expansion in domestic investment.
Labour productivity in the services sector is
estimated to increase at an average rate of 2.8%
per annum, mainly contributed by the information
and communications technology (ICT), real
estate and business, finance and insurance as
well as transport and storage subsectors. The
services sector continued to be the main source
of employment, which is expected to provide
8.4 million jobs or 60.9% of total employment.
Exports of services is estimated to grow at 5.6%
per annum to reach 18% of total exports by 2015.
In 2013, Malaysia was ranked among the top 30
services exporters in the world.

8-6
Exhibit 8-1
Major indicators of the services sector, 2010-2015
Exhibit 8-1: Major indicators of the services sector, 2010-2015

RM million
in 2010 prices
Sector
2010
2015
Services value added
420,382
22,173
Wholesale & retail trade, accommodation 134,635

& restaurants
Electricity, gas & water
Average
annual growth
rate, %
% of total
2010
2015
571,835
100
100
27,094
5.3
4.7
4.1
185,410
32.0
32.4
6.6
Tenth Plan
6.3
Transport, storage & communications
68,511
97,363
16.3
17.0
7.3
Finance, insurance, real estate &

business services
93,939
121,328
22.3
21.2
5.3
Government services
64,359
94,152
15.3
16.5
7.9
Other services
36,766
46,487
8.7
8.1
4.8
59,278
68,111
2.8
111,466
146,387
5.6
7,092
8,396
Labour productivity (RM/worker)

Services export
(RM million in current prices)
Employment (000)
Contribution of total services sector to
GDP (%)
Note: 2015 numbers are estimated

Source: Economic Planning Unit; Malaysia Productivity Corporation; Department of Statistics Malaysia
59.3
60.9
3.4
51.2
53.8
53.0
Box 8-1
Highlights - Services sector

Malaysia continued to be one of the worlds leading
tourist destinations with an increase in tourist
arrivals from 24.6 million in 2010 to 27.4 million in
2014. Tourism remained an important source of
foreign exchange earnings at RM72 billion in 2014, an
increase of 27.4% from RM56.5 billion in 2010. The
industry provided 2.2 million jobs or 16.8% of total
employment in 2013. In addition, the healthcare travel
segment recorded an increase of 82% in total revenue
to RM690 million with 770,000 foreign patients in
2013, compared with RM379 million and 393,000
foreign patients in 2010.
The ICT industry, including e-commerce, is estimated
to contribute 16.8% to GDP in 2015. The ICT services
subsector contribution to GDP is estimated to
increase from 5.2% in 2010 to 5.5% in 2015, while
the ICT manufacturing subsector contribution is
estimated to decrease from 4.6% in 2010 to 3.9% in
2015, reflecting the transition of the ICT sector from
manufacturing towards higher value-added services.
As per the ICT Satellite Account, employment in the
industry increased by 2.2% per annum from 762,800
in 2010 to 779,500 in 2013, due to new job creation in
the ICT trade and services subsectors. Net exports of
the ICT industry declined from RM54.3 billion in 2010
to RM45 billion in 2013. This was due to a drop in the
ICT goods exports percentage from total exports,
from 29.4% in 2010 to 25.4% in 2013.
8-7
Manufacturing sector
The manufacturing sector is estimated to grow at 4.8%
per annum during the Tenth Plan and contribute 23% to
GDP in 2015, as shown in Exhibit 8-2. Manufactured goods
also dominated exports, contributing RM636.7 billion or
81.8% of total exports in 2015. The growth of the sector
was contributed largely by the electrical and electronic
(E&E) and chemicals subsectors. The value added of E&E
increased from RM44.2 billion in 2011 to RM53.8 billion in
2015, partly due to new applications for semi-conductors
in digitalisation, mobility, connectivity, energy efficiency,
and miniaturisation. The chemicals subsector recorded an
average growth of 3.4% per annum with an increase in value
added from RM24.8 billion in 2011 to RM27.8 billion in 2015,
as chemical products are important inputs to fast-growing
industries such as automotive, E&E, pharmaceuticals,
and construction. Performance of the sector was driven
by strong demand from the Association of Southeast
Asian Nations (ASEAN) member countries and Free Trade
Agreement (FTA) partners.
Investment in manufacturing amounted to RM159.1 billion,
which accounted for 20.4% of total approved investment
between 2011 and 2014. Of this amount, domestic direct
investment (DDI) represented 42.8% and foreign direct
investment (FDI) represented 57.2%. This investment
provided an estimated 348,000 new job opportunities, out
of which 75% was in the managerial, technical, supervisory,
and skilled categories. Overall, the sector is expected
to provide 2.5 million jobs, representing 17.5% of total
employment in 2015.
Exhibit
8-2 Major indicators of the manufacturing sector, 2010-2020
Chart 8-2:
Major indicators of the manufacturing sector, 2010-2020

Tenth Plan
Item
2020
Achieved
Eleventh Plan
2010
2015
192.5
243.9
312.5
1,110.9
1,417.3
Annual growth rate (%)
12.1
4.7
4.4
4.8
5.1
Share to GDP (%)
23.4
23.0
22.1
23.1
22.5
Total exports of
manufactured goods
(RM billion in 2010 prices)
489.6
636.7
812.8
2,801.3
3,677.9
Share to total exports (%)
76.6
81.8
83.4
76.4
82.8
Contribution of manufacturing
sector to GDP
Target
Average annual growth rate (%)
Share to total employment (%)
17.0
18.0
18.2
3.9
2.5
Note: 2015 numbers are estimated; 2020 numbers are forecasted

Box 8-2
Highlights - Manufacturing sector

The medical devices industry in Malaysia is made up of more than 190
companies dominated by SMEs and more than 20 multinational companies
(MNCs). Malaysia remains the worlds leading producer and exporter of
catheters, providing 80% of the world market, and 60% of the world market
for medical rubber gloves. In 2013, the medical devices industry contributed
RM11.9 billion to total exports. The industry has been identified as a priority
growth area with a gradual shift towards the manufacture of higher-value
medical devices such as orthopaedic products, surgical instruments, and
diagnostic radiographic equipment.
The aerospace industry is a fast-growing, high value added industry,
comprising activities related to aviation and space management;
maintenance, repair and overhaul (MRO); design, development, assembly,
and operation of light aircraft; as well as support services. In 2014, there
were 159 companies with 19,500 employees generating a revenue of RM11.8
billion. Exports by the aerospace industry totalled RM2.4 billion in 2013.
To further accelerate the growth of the industry, the Malaysia Aerospace
Industry Blueprint 2030 was launched on 17 March 2015 and aspires to
propel the nation to be a leader in the aerospace industry by 2030.

Agriculture sector
The development of the agriculture sector was guided by
the National Agro-food Policy, 2011-2020 and the National
Commodity Policy, 2011-2020, which aimed to increase food
production and exports of industrial commodities. During
the Tenth Plan, the sector is estimated to record an average
annual growth of 2.4%, as shown in Exhibit 8-3. In 2015,
the agro-food subsector is estimated to contribute 38.8%
to the total agriculture value added, while the industrial
commodities subsector at 60.5%. Palm oil continues to be
the largest contributor, followed by fisheries and livestock.
Higher self-sufficiency levels for several food commodities
are estimated in 2015, such as poultry at 104.6%, fisheries at
92.6%, and rice at 71.4%.
Overall agriculture labour productivity grew by 2.2%, mainly
due to better agronomic practices, quality input, application
of modern farming technology, improved infrastructure, and
continuous skills training programmes. During the Tenth
Plan, agricultural export earnings are estimated to decline
at an average rate of 2.8% per annum mainly due to lower
commodity prices and weaker external demand. However,
the sector remains an essential supplier of raw materials to
the resource-based industries, contributing 19.6% to the
total manufacturing value added in 2015.
8-8
Exhibit 8-3
Chart 8-3: Major indicators of agriculture and agro-based industry,
Major indicators of agriculture and agro-based industry, 2010-2020
2010-2020
Average annual growth rate
%
RM, in 2010 prices
Sector
2010
2015
Agriculture value added

(RM million)
82,881
Industrial commodities
(RM million)
Agro-food (RM million)
Contribution of Agriculture to
GDP
(%)
Labour productivity
(RM/worker)
Total agriculture & agrobased industry (RM million)
2015
2020
Achieved
93,184
110,707
100
100
100
2.4
3.5
55,646
56,407
63,096
67.1
60.5
57.0
0.3
2.3
26,595
36,200
46,979
32.1
38.8
42.4
6.4
5.4
10.1
8.8
7.8
2.2
3.6
-2.8
2.3
4.1
3.7
2.9
3.6
57,691
68,763
71,351
61,751
69,140
39,042
47,688
57,047
121,923
140,872
167,754
Agro-based industry
(RM million)
Eleventh Plan
2010
51,672
Agricultural exports
(RM million)
Tenth Plan
% of total to GDP
2020
Contribution of total agro-based

industry to manufacturing value
added (%)
11.2
7.9
7.1
14.8
13.3
11.9
20.3
19.6
18.3
Target

Source: Department of Statistics Malaysia and Economic Planning Unit
Box 8-3
Highlights - Agriculture sector

The agriculture sector has been steadily making progress towards
increasing productivity and shifting to higher-value downstream activities,
as highlighted in the examples below:
In the agro-food subsector, the establishment of Permanent Food
Production Parks (TKPM) has benefited 453 farmers involving 6,105
hectares as well as improving the income of 171 farmers to more than
RM3,000 per month; and
Palm oil downstream processing saw unprecedented private
investment commitment of more than RM3 billion, spanning a wide
range of high-value products from oleo derivatives such as biopolyols
and biolubricants to phytonutrients such as tocotrienols and carotene.
8-9
Construction sector
Small and medium enterprises
The construction sector is estimated to record an average annual

growth rate of 11.1% during the Tenth Plan. The growth is supported
by expansion in the civil engineering subsector, growing at 9.3% per
annum, followed by residential subsector at 16.5% and non-residential
at 9.1%. The sector provided 1.2 million jobs, constituting 8.8% of total
employment. From 2011 to 2014, a total of 29,435 construction projects
were awarded, valued at RM470 billion. These were largely private
sector projects totalling RM387 billion or 82% of total value, with the
remaining RM83 billion from public sector projects.
Based on the Economic Census 2011, there were 645,136 SMEs,

making up 97.3% of total business establishments. To reflect the
current business environment, the SME definition was revised on 1
January 2014, as shown in Exhibit 8-4. The maximum threshold for
sales turnover was adjusted from RM25 million to RM50 million and for
employment from 150 to 200 workers. As a result, the share of SMEs to
total establishments increased from 97.3% to 98.5%.
Among the large-scale projects implemented were Klang Valley Mass

Rapid Transit (KVMRT) Line 1 from Sungai Buloh to Kajang, Electrified
Double-Track Railway from Ipoh to Padang Besar, Light Rail Transit
(LRT) extension from Kelana Jaya and Sri Petaling to Putra Heights,
Kuala Lumpur International Airport 2 (KLIA2), Central Spine Road from
Kuala Lipis to Bentong, and Re-gasification Terminal (RGT-1) in Melaka.
The implementation of these projects reflects the increasing use of
technology and modern practices in the construction sector right from
the design phase through to execution and maintenance.
90.1% of SMEs are in the services sector, with 5.9% in manufacturing,

3% in construction, and the remaining in agriculture, and mining and
quarrying. SMEs are estimated to grow at 9.3% and contribute 35% to
GDP, 59% to employment and 19% to total exports in 2015 as shown in
Exhibit 8-5.
The average labour productivity of SMEs between 2011 and 2013
was RM50,818 per worker, which is lower than the national average
productivity level at RM59,131 per worker for the same period (based
on 2005 prices). However, the productivity level of SMEs in the services
sector was lower at RM47,699 per worker as shown in the Exhibit 8-6.
Exhibit 8-4
Box 8-4
Chart
New definition
of SMEs
effectiveJanuary
January 1,
New8-4:
definition
of SMEs
effective
1,2014
2014
Highlights - Construction Sector

The use of technology and modern construction methods
such as building information modelling (BIM) and industrialised
building system (IBS) were crucial in improving the efficiency
of construction project implementation. BIM was used in
projects such as the National Cancer Institute in Putrajaya - the
first government project that used the technology, and in the
construction of the administration complex of the Malaysian
Anti-Corruption Commission in Shah Alam.
Medium
Small
Micro
Sales
turnover
Less than
RM300,000
RM300,000 to less
than RM15 million
OR
Manufacturing
Employees
Sales
turnover
Employees
5 to less than 75
75 to less than 200
Less than
RM300,000
RM300,000 to less
than RM3 million
RM3 million to less

than RM20 million
Less than 5
Micro
Source: SME Corporation Malaysia
OR
OR
Less than 5
OR
Services and
other sectors
RM15 million to less

than RM50 million
OR
OR
5 to less than 30
Small
30 to less than 75
Medium

Exhibit8-4:
8-5 Selected indicators for SMEs, 2010-2020
Chart
Major indicators for SMEs, 2010-2020
Tenth Plan
Eleventh Plan
Achieved
Target
2010
2015
2020
262.9
371.9
578.6
1,605.8
2,420.8
8.3
9.3
9.3
7.5
9.3
32.0
35.0
41.0
33.4
38.4
SMEs exports
100.3
147.8
243.7
634.0
995.0
Share to total exports (%)
15.7
19.0
25.0
17.3
22.4
Share to total employment (%)
57.1
59.0
62.0
57.8
60.7
Item
Contribution of SMEs to GDP
Annual growth rate (%)
Share to GDP (%)

Source: Economic Planning Unit; Department of Statistics Malaysia; and SME Corporation Malaysia
Exhibit 8-6
Chartlabour
8-6: SME
labour productivity
level by 2011-2013
sector, 2011-2013
SME
productivity
level by sector,
SMEs
Large firms
208,414
RM/worker
105,782
88,952
63,154
67,889
47,699
19,929
Manufacturing
Notes: Based on 2005 prices
Source: SME Corporation Malaysia
Agriculture
Services
23,871
Construction
Average
SME labour
productivity
RM50,818
8-10
The lower productivity level was partly due to the dominance

of microenterprises in the services sector, involved in basic
and low value add businesses such as retail, restaurants and
accommodation.
Several initiatives contributed to the growth of SMEs,
including developing the SME Masterplan 2012-2020. The
role of SME Corporation Malaysia (SME Corp.) was also
strengthened and the coordination mechanism steamlined
to enable the Master Plan to be implemented effectively.
Liberalisation and regulatory reform

During the Tenth Plan, the Government autonomously
liberalised the services sector and continuously improved
the ease of doing business to boost investor confidence and
enhance competitiveness. In 2012, 18 services subsectors
were liberalised to allow up to 100% foreign equity within
the wholesale and retail trade, healthcare, professional
services, environmental services, telecommunications,
courier, and education subsectors. At the regional level,
Malaysia implemented 80% of the total 505 measures under
the ASEAN Economic Community (AEC) Blueprint. This
indicates the Governments commitment towards realising
the AEC, which envisions Southeast Asia as a single market
and production base with free flow of goods, services, and
investments. In addition, regulatory reforms and business
process improvements were undertaken to complement
the liberalisation initiative. This resulted in Malaysia being
ranked at 18th position out of 189 economies in the 2015
World Banks Doing Business Report.
The Government also enforced the Competition Act 2010 on
1 January 2012. The Act provides a regulatory framework
against anti-competitive practices, such as the formation of
cartels, and horizontal and vertical agreements. In 2013, the
Malaysian Competition Commission issued two landmark
decisions related to an aviation market-sharing deal and
infringement of dominant position by a steel manufacturer.
This reflects the Governments commitment towards a fair
and competitive business environment.
8-11
Innovation
Efforts to strengthen the innovation ecosystem were undertaken along
four key areas, namely shaping a supportive ecosystem, creating
opportunities, putting enablers in place, and providing funding.
Initiatives included establishing specialised agencies to drive the
innovation programmes such as the Agensi Inovasi Malaysia (AIM),
National Science and Research Council (NSRC), and Yayasan Inovasi
Malaysia (YIM). Higher order thinking skills (HOTS) programmes
were implemented in schools and tertiary institutions to inculcate
a thinking culture to enable the next generation of Malaysians to
think creatively. Khazanah Harta Intelek Malaysia, a centralised
repository of Intellectual Properties (IPs) arising from Government
research programmes, was created to catalyse commercialisation.
Intermediaries such as PlaTCOM Ventures Sdn. Bhd. (PlaTCOM) and
Steinbeis Malaysia Foundation (Steinbeis) were set up to enhance
collaboration and provide advisory services to both researchers
and companies in order to connect knowledge creators and those
who need the knowledge. Online programmes such as UReka and
GIGIH were implemented to provide open innovation platforms where
people were given the opportunity to share ideas, seek expertise, form
collaborative teams, attract funders and customers as well as generate
additional income through proven innovative and sustainable business
models.
There have been many recent successes in Malaysia. These include
consumer-focused apps to improve the delivery of taxi services
such as MyTeksi and Sunlight Taxi, and improvements in production
processes that ensure the consistency of quality in the food and
beverages industry, which have enabled local food chains to expand
regionally such as Secret Recipe, Nelsons, and Old Town Kopitiam.
The effectiveness of these initiatives were measured based on national

innovation-related indicators and international rankings. The gross
expenditure on research and development (GERD) as a share of GDP
increased from 1.07% in 2010 to 1.13% in 2012, as shown in Exhibit 8-7.
Research and development (R&D) by business enterprises accounted
for 64.4% of GERD in 2012, conducted mainly by MNCs and large local
companies. In 2014, Malaysia was ranked 33rd out of 143 countries in
the Global Innovation Index (GII) and 20th out of 144 countries in the
Global Competitiveness Index (GCI). In both global indices, Malaysia
was ranked second highest among ASEAN countries.
Regional economic corridors development

Regional economic corridors continued to contribute towards sector
growth and overall economic development. The five regional economic
corridors, attracted total realised investment of RM174.5 billion across
priority economic sectors including creative and content development,
tourism, E&E and downstream petrochemicals processing. 427,100
jobs were created as a result of these realised investments.
*
The Malaysian economy has continued to grow despite external

shocks and challenges on the domestic front. Going forward, the
economy continues to be susceptible to external challenges, including
global economic shocks, geopolitical risks and climate change. On the
domestic front, the nation will continue to transform and modernise
the various economic sectors. A number of challenges remain to be
addressed during the Eleventh Plan, including issues related to human
capital, productivity, innovation, regulatory and institutional challenges,
and access to financing.

Exhibit 8-7
Chart
8-7: Main
indicators
Major
indicators
for R&D,
20102012
for R&D, 2010-2012

2010
RM billion
2012
RM billion
R&D expenditure by sector

Total GRIs and IHLs
2.98
35.0
3.77
35.6
Government research institutes (GRIs)
0.52
6.0
0.73
6.9
Institutes of higher learning (IHLs)
2.46
29.0
3.04
28.7
Business Enterprises (BEs)
5.53
65.0
6.84
64.4
Total
8.51
100
10.61
100
GERD/GDP (%)
1.07
1.13
Human Resource in R&D

Total headcount of R&D personnel
88,314
103,986
Total Full-Time Equivalent (FTE) of R&D personnel
50,484
62,807
Researchers per 10,000 labour force
53.08
57.45
RM billion
RM billion
Basic research
1.52
17.9
3.66
34.5
Applied research
5.8
68.2
5.36
50.5
Experimental research
1.19
13.9
1.6
15.0
Total
8.51
100
10.62
100
Type of research (expenditure)
Source: Malaysia Science and Technology Information Centre
8-12

and regional economic corridors
development
Developing city competitiveness master
plans for four first-tier cities
Strengthening corridors to fuel regional
development
Transforming
services
Fostering a dynamic
environment for
knowledge-intensive
services
Implementing
comprehensive
and integrated
governance reforms
Stepping up
internationalisation of
services firms
Enhancing management
of investment incentives
Energising
manufacturing
Modernising
agriculture
Moving towards
complex and diverse
products
Enhancing productivity
through automation
Stimulating
innovation-led growth
Strengthening growth
enablers
Ramping up
internationalisation
Growing
dynamic
SMEs
Strengthening human
capital development
Enhancing ease of
doing business
Increasing demand for
SME Products and
Services
Improving productivity and income of farmers,

fishermen and smallholders
Enhancing knowledge
content
Promoting training and youth agropreneur

development
Driving productivity
Strengthening institutional support and

extension services
Building capacity of agricultural cooperatives
and associations along the supply chain
Fostering sustainable
practices
Increasing the
of construction firms
Improving market access and logistics

support
Scaling up access to agricultural financing
Intensifying performance-based incentive and
certification programmes
Expanding modern
services
Enhancing
productivity through
automation and
innovation
Transforming
construction
Enterprise innovation
Creating
home-grown
champions
Developing
SMEs in Sabah
and Sarawak
Strengthening the
governance mechanism
Translating
innovation
to wealth
Enhancing demanddriven research

Strengthening industryacademia collaboration
through intermediaries
Promoting private financing
of research, development,
commercialisation, and
innovation
Social innovation
Strengthening collaboration
through a whole-society
approach
Developing a social
financing model
Promoting higher order
thinking skills to develop a
dynamic society
SELECTED OUTCOMES
Contribution of RM519
billion or 8.2% to GDP
with 1.6 million jobs
Contribution of RM2,421
billion or 38.4% to GDP with
9.5 million jobs across all
sectors
Growth of
Growth of
Growth of
6.9%
3.5%
9.3%
per annum
3,488
RM
billion
Transforming
services
Energising
manufacturing
1,417
RM
per annum
519
RM
billion
Modernising
agriculture
Transforming
construction
327
RM
Growth of
Growth of
per annum
70%
2,421
billion
10.3%
per annum
Contribution of RM327
of GDP
RM
billion
5.1
per annum
billion
GERD
Growing
dynamic SMEs
Gross
expenditure
on R&D of
GDP
70% of total R&D

expenditure by
Business
Enterprises
Translating innovation
to wealth

4
236
RM
billion
Cities with City

Competitiveness
Masterplans
developed
Realised
investment with
470,000 job
opportunities
created across five
regional economic
corridors
8-15
Moving forward
Accelerating the
momentum of economic
growth by expanding
knowledge-intensive
activities and producing
complex products,
increasing productivity
and innovation, and
investing in cities and
regional economic
corridors.
During the Eleventh Plan, the focus is on

accelerating the momentum of economic growth
to place the economy on a strong foundation for
sustained expansion and to withstand economic
shocks. This is to ensure that Malaysia meets
the per capita income target of US$15,000 to
be classified as a high-income economy by
2020. Achieving this target will entail further
broadening of the economic base, venturing into
knowledge-intensive and complex economic
activities to generate high-paying jobs, improving
overall efficiency and capacity through increased
productivity and innovation, and introducing new
sources of growth.
Therefore, strategies to re-engineer economic
growth are developed along three dimensions and
seven focus areas as follows:
Propelling sectoral migration towards high
value-added and knowledge-intensive economic
activities
Focus area A: Transforming services
Focus area B: Energising manufacturing
Focus area C: Modernising agriculture
Focus area D: Transforming construction
Fostering the enabling ecosystem for sustainable
growth
Focus area E: Growing dynamic SMEs
Focus area F: Translating innovation to wealth
Accelerating growth through competitive cities and

regional economic corridors development
Focus area G: Investing in competitive cities
Two of these seven focus areas have been identified
as game changers in the Eleventh Plan - namely
Innovation and Competitive Cities. These game
changers are expected to accelerate economic
growth and create a more inclusive society with
more balanced geographical development and
distribution of wealth. Effective application of
innovation in the economy will increase Malaysias
competitiveness and productivity, especially through
collaboration between research and business, and
strengthening the role of communities in innovative
delivery of social services. As global competition
for investment and talent is now between cities,
Malaysia will develop several of its first-tier cities to
become globally competitive and serve as growth
catalysts.

8-16
Focus area A
Transforming services
In the Eleventh Plan, the development of the services sector will be

guided by the Services Sector Blueprint, which aims to unlock the
potential of the sector and transform it to become more knowledgeintensive and innovation-led. The sector is expected to grow at 6.9%
per annum, contributing 56.5% to GDP in 2020, and providing 9.6
million jobs, as shown in Exhibit 8-8. To achieve these targets, five
strategies will be implemented:
Strategy A1: Fostering a dynamic environment for knowledgeintensive services by accelerating human capital development as
well as enhancing access to technology and R&D;
Strategy A2: Implementing comprehensive and integrated
governance reforms by strengthening coordination and
collaboration between various stakeholders as well as modernising

the current regulatory regime;
Strategy A3: Stepping up internationalisation by assisting firms
to export services through better access to funding, upskilling, and
market intelligence;
Strategy A4: Enhancing the management of investment
incentives with a more effective, transparent, and performancebased incentives programme; and
Strategy A5: Expanding modern services towards higher
value-added subsectors, including the halal industry, ecotourism,
and ICT.
Exhibit 8-8
Chart 8-8:
Major indicators
of the
services
sector, 2015-2020
Major
indicators
for services
sector,
2016-2020
Average annual
growth rate, %
RM million
in 2010 prices
% of total
Eleventh Plan
Item
2015
2020
2015
2020
Target
Services value added
571,835
796,722
100
100
6.9
Electricity, gas & water
27,094
32,830
4.7
4.1
3.9
Wholesale & retail trade, accommodation & restaurants
185,410
246,499
32.4
30.9
5.9
Transport, storage & communications
97,363
148,539
17.0
18.6
8.8
Finance, insurance, real estate & business services
121,328
168,270
21.2
21.1
6.8
Government services
94,152
127,684
16.5
16.0
6.3
Other services
46,487
72,900
8.1
9.1
9.4
Labor productivity (RM/worker)
68,111
83,411
4.1
Services export (RM million in current prices)
146,387
195,890
6.0
Employment (000)
8,396
9,552
Contribution of total services sector to GDP (%)

Source: Economic Planning Unit, Malaysia Productivity Corporation, Department of Statistics Malaysia
60.9
62.5
2.6
53.8
56.5
55.3
8-17
Strategy A1
Fostering a dynamic environment for

knowledge-intensive services
Accelerating human capital development
Key structural challenges in human capital development will be
addressed while developing soft skills needed by the services sector.
Initiatives will focus on delivering the skills most critical to industries
through existing graduate employability programmes. Greater
collaboration between industries and higher education institutions will
also be fostered, including the provision of more structured internship
programmes. A co-funded scholarship programme between the
Government and SMEs will be developed to enable the latter to tap on
high-quality talent.
Within the ICT industry, a professional body to govern professional
competencies and ethics in ICT will be considered to ensure ICT
professionals competencies are on par with global standards. This
professional body will enhance the value of the profession, raise
professional standards, review qualifications, provide assurance of
quality, and serve as the central repository database of registered ICT
professionals. It will also enable Malaysia to be a signatory to the Seoul
Accord, a multilateral agreement among agencies responsible for the
accreditation of tertiary level computing and IT-related qualifications to
ensure that Malaysian ICT qualifications are internationally recognised.
In addition, ICT will be offered as a compulsory subject at the lower
secondary level and as an elective at the upper secondary level to
ensure students have a sound ICT background prior to enrolling
in higher education. The ICT subject will also be strengthened to
integrate computational thinking into learning modules, in addition to
programming languages, hardware and software design, databases
and information retrieval.
Enhancing access to technology and R&D

The utilisation of technology, particularly ICT, will be enhanced
among services firms through the Embed ICT programme to reduce
dependence on low-skilled foreign workers and to boost productivity.
In addition, the funding mechanism for R&D and commercialisation
(R&D&C) that is mainly supply-driven today will be replaced with a

mechanism that is demand-driven and private sector-led.
The Research Incentive Scheme for Enterprises will be expanded
to enhance technology absorption and allow companies to hire
experienced R&D researchers by partially funding the monthly wages of
researchers for a specified period. This incentive is expected to attract
technology leaders to set up R&D centres or centres of excellence
(CoE) in prioritised technology focus areas, such as big data analytics,
cloud computing, and the Internet of Things (IoT). In addition, access to
digital infrastructure, particularly in Sabah and Sarawak, will be further
improved to spur the growth of knowledge-intensive services.
Strategy A2
Implementing comprehensive and

integrated governance reforms
In the Eleventh Plan, coordination and collaboration between ministries,
agencies, and other relevant stakeholders will be strengthened to
improve their effectiveness and efficiency. The Special Committee on the
Services Sector will oversee the implementation of the services sector
development strategies and action plans, particularly the Services Sector
Blueprint, the Logistics and Trade Facilitation Master Plan (LTFMP),
and the Construction Industry Transformation Programme (CITP). The
Committee will also ensure cross-sectoral policy coherence with national
development objectives. For the logistics industry, the National Logistics
Task Force will be set up to lead the implementation of the LTFMP.
Comprehensive and integrated governance reforms will be pursued
to ensure a thriving and competitive environment for the services
sector. The National Policy on the Development and Implementation of
Regulations (NPDIR) to modernise the current regulatory regime will be
fully implemented to include states and local governments. The capacity
of regulatory coordinators in ministries and agencies will be strengthened
to ensure adherence to the NPDIR. The regulatory reform will also be
aligned to Malaysias commitments in existing free trade agreements and
unilateral liberalisation initiatives. A regulatory portal will be established
to improve access to and transparency of regulations.

Strategy A3
Strategy A5
Stepping up internationalisation of
services firms
Expanding modern services
Given the low number of services exporters, it is imperative to build

their export capabilities and enhance their readiness to export. Among
the initiatives to strengthen the capabilities of services firms to export
are: a dedicated Services Sector Guarantee Scheme; an improved
Services Export Fund (SEF) to provide assistance to services firms to
expand overseas; upskilling programmes to improve service providers
knowledge of international market opportunities, export requirements,
and processes. In addition, the franchise development programme will
be improved and efforts will be taken to further harmonise markets.
Strategy A4
Enhancing the management of

investment incentives
The current investment incentive programme will be replaced with
a more effective, transparent, and performance-based incentive
programme to attract quality investment and boost productivity.
The Incentive Coordination and Collaboration Office (ICCO) will be
established under the Malaysian Investment Development Authority
(MIDA) to act as a coordinator for all investment incentives. The
ICCO will enable cross-agency visibility and allow for a more holistic
assessment of incentives through structured information sharing
between the approving government agencies. In addition, ICCO will
undertake an impact assessment on the incentives provided, besides
assisting in high-level monitoring from a demand perspective.
8-18
The Eleventh Plan will focus on the development of subsectors and

industries that are tradeable, have high knowledge intensity and
linkages with the rest of the economy, and the potential to generate
high-income jobs. Industries such as Islamic finance, ICT, oil and gas
services, private healthcare, private higher education, ecotourism, the
halal industry, and professional services will be further promoted.
The halal industry

In the Eleventh Plan, the halal industry will adopt strategic approaches
to further develop the industry as a source of competitive advantage
and catalyst for growth, encourage innovation and creativity anchored
on Islamic principles and values, as well as being pragmatic in
implementing development strategies. Institutional and regulatory
reforms will be undertaken to increase the efficiency and effectiveness
of relevant agencies governing the halal industry. A business-friendly
ecosystem and greater collaboration between agencies related to
halal certification and auditing processes will be enhanced. In addition,
special preference in public sector procurement for halal-certified
products and services will be promoted to support the growth of the
industry.
To facilitate international market penetration, Malaysian halal standards
will be linked to international standards to enhance global acceptance.
Local industry players will be incentivised to obtain halal certifications
to increase the halal offerings in the domestic market and position
Malaysia as a global halal hub. In addition, the halal services industry
will be further intensified through the development of a regional
distribution centre that is equipped with an e-trading platform to
link local halal suppliers to the global supply chain. Growth in the
industry will be catalysed through innovation and R&D. Leveraging
Malaysias strength in palm oil derivatives, the alternative ingredients
industry will be further developed to produce halal ingredients thereby
strengthening Malaysias role in the global trade of halal ingredients.
8-19
Islamic finance
The strong position of Malaysia as a global Islamic finance marketplace
will continue to be reinforced. This will involve the introduction of
innovative Islamic financial products and services to meet the diverse
global demand for Shariah-compliant financial solutions. Efforts will
continue to enhance the diversity of industry players, increase vibrancy
in the Islamic financial markets, and promote Malaysia as the referral
centre for Islamic financial transactions.
Information and communications technology products

and services
In the ICT industry, niche areas will be further promoted and export
capabilities enhanced to ensure that Malaysia captures a bigger export
market for ICT products and services. Within the identified niche areas
digital content, IoT, data centres and cloud services, cyber security,
software development and testing, and big data analytics the ICT
ecosystem will be strengthened, including the capacity of start-ups,
talent, infrastructure, R&D&C, and governance.
The quality of local digital content will be improved to further strengthen
the export potential of local digital content. The number of registered
digital content IPs will be increased and exploited as collateral for loan
financing, product line expansion, and licensing and merchandising.
Emphasis will be given to animation, gaming, simulation, and virtual
reality in the areas of education, entertainment, and healthcare.
Three main initiatives that will be implemented are attracting anchor
companies to serve as industry drivers, building local capacity
and capability, and raising global market access through a better
understanding of global technology trends towards greater adoption of
digital distribution and new business models.
Exhibit 8-9
Chart
8-9:
Modern Services
Modern
services
Sub-sector
Description
Halal industry
Develop halal industry by linking Malaysian halal standards to international standards and promote the
alternative ingredients industry
Islamic finance
Reinforce Malaysias position as a global Islamic finance marketplace through innovative Islamic financial
products and services
Improve exports of ICT products and services by developing ICT technology focus areas, infusing ICT in
Information and communications technology other sectors and strengthening ICT industry support ecosystem
Oil and gas services
Develop Malaysia as an oil and gas hub in the Asia Pacific region through strengthening upstream
capability, and improve collaboration between industry and higher learning institutions
Private healthcare
Grow healthcare travel through international accreditation, increased insurance coverage, and leverage
regional referral network
Private higher
education
Continue to develop reputable and high-quality private higher education institutions through ratings and
quality assessments and self-regulation incentives
Ecotourism
Position Malaysia as a premier ecotourism destination by leveraging biodiversity assets and increased
branding and promotion
Professional services
Promote Malaysia as an outsourcing centre for professional services to increase exports through capacity
building

Oil and gas services

The development of the oil and gas services industry (OGSI) will be
enhanced further towards Malaysias aspiration of becoming an oil
and gas services hub in Asia Pacific. The development of OGSI will
focus on three technology clusters namely, process engineering,
sub-surface, and marine systems. Efforts will continue to be directed
towards strengthening capabilities of local companies to offer the whole
range of upstream engineering, procurement, construction, installation,
and commissioning services. The establishment of Industry Centre of
Excellence (ICoE) will foster stronger collaboration between industry
and institutions of higher learning in identifying technology needs,
enhancing manpower development, and promoting local technologies
overseas. Participating higher education institutions include Universiti
Teknologi Malaysia, Universiti Teknologi Petronas, and Universiti
Malaya.
8-20
appropriate measures will be introduced to attract students from

targeted markets, such as the Peoples Republic of China and Central Asia.
Ecotourism
Ecotourism will be positioned as a premier segment of the tourism
industry by leveraging biodiversity assets through extensive protection
and conservation, supported by targeted branding and promotion
activities. Ecotourism products will be developed along the value
chain of high-yield tourism by attracting reputable investors who are
competent in the conservation and preservation of nature and wildlife.
Experience-enriching elements, such as tourism facilities, interpretive
centres, safety measures, and communications, will be strengthened.
The development of ecotourism will also offer greater opportunities for
local communities to participate in related income-generation activities
to raise living standards.
Private healthcare
Professional services
In further promoting the healthcare travel services industry, focus will

be given to attract healthcare travellers to seek treatment in areas such
as oncology, cardiology, orthopaedic, reproductive help, and dental
treatment. Encouraged by the increasing global demand for natural
healthcare, the traditional and complementary medicine industry will
be further developed with an aim to become a regional referral centre
and hub. International accreditation, increased insurance coverage and
portability, and regional referral network will be fully leveraged to ensure
Malaysia attracts higher in-patient mix and revenue-per-patient in the
identified areas.
Malaysia will continue to be promoted as an outsourcing centre for

professional services to increase exports in knowledge-intensive
activities, such as oil and gas, aviation maintenance, repair and
overhaul (MRO), and construction. Professional services firms will
also be encouraged to build capability and scale in niche areas
through industry consolidation, partnerships with larger corporations
or form multi disciplinary consortia when bidding for projects, either
domestically or internationally. This will enable firms to leverage on
the trust, network, synergy, and shared technical know-how when
venturing abroad. Professional services firms will also be encouraged
to use Free Trade Agreements (FTAs) and Mutual Recognition
Agreements (MRAs) to facilitate internationalisation of the industry.
Non-tariff barriers in targeted markets will be reduced through
proactive government-to-government negotiations.
Private higher education

Continued focus will be given to developing reputable and high-quality
private higher education institutions. This will involve increasing their
participation in the rating and quality assessment system, where
institutions with proven track records will be allowed to self-regulate.
Academic staff will be given greater access to scholarships and
loans to improve their academic qualifications. A targeted financing
mechanism will be developed to ensure eligible students receive
adequate funding. To promote the export of education services,
8-21
Focus area B
Energising manufacturing
In the Eleventh Plan, the manufacturing sector will transition towards
more high-value, diverse and complex products, driven by three
catalytic subsectors, namely chemicals, E&E and machinery &
equipment (M&E) as well as industries with high potential growth
such as medical devices and aerospace. These subsectors have
strong interlinkages to other manufacturing subsectors and have
demonstrated capabilities and potential to deliver more complex and
high value added products. The manufacturing sector is expected to
grow at 5.1% per annum and contribute 22.5% to GDP as well as 18.2%
of total employment by 2020.
This transition will be underpinned by enhanced R&D, more sustainable
manufacturing practices, greater compliance to global standards, and
collaboration between stakeholders. To this end, five strategies have
been identified to grow and energise the manufacturing sector, as shown
in Exhibit 8-10.
Exhibit 8-10
Chart 8-10:
Strategic
for the
manufacturing sector
Strategic
framework
forframework
manufacturing
sector
Rubber-based
Medical devices
Textiles
Wood-based
Pharmaceuticals
Palm oil-based
Metal
Transport
Food processing
Aerospace
Remanufacturing
Three catalytic subsectors will stimulate growth and development of 11 related subsectors
Electrical and
Electronics
Strategy B1:
Moving towards complex and
diverse products
Strategy B2:
Enhancing productivity through
automation
Incentivise pioneers in
Promote automation to
catalytic subsectors to
promote development of
frontier products
Enhancing collaboration
between SMEs and MNCs
Develop workforce skills
and capabilities in
producing frontier products
reduce reliance on unskilled

foreign workers
Enhance industry-led
training for local workforce
skills development
Machinery and
Equipment
Chemicals
Strategy B3:
Stimulating innovation-led
growth
Leveraging intermediaries to
increase R&D and innovation

activities
Promoting IP registration,
sharing and protection
Adopting Life Cycle
Assessment
Increasing environmental
compliance
Strategy B4:
Strengthening growth enablers
Strategy B5:
Ramping up
Increasing access to
Intensifying export promotion
Increasing compliance to
financing
Introducing targeted and
performance-based
incentives with exit policy
Enhancing logistics and
infrastructure support
Strengthening Industrial
Estate management
via National Export Council

standards
Leveraging AEC and FTAs

Leveraging industry
associations for greater
market access

Strategy B1: Moving towards complex and diverse products

by strengthening the output base and increasing exports of frontier
products;
Strategy B2: Enhancing productivity through automation
supported by developmental and performance-based financial
assistance and collaboration with industry;
Strategy B3: Stimulating innovation-led growth by engaging
with intermediaries to increase R&D and innovation activities as
well as implementing sustainable consumption and production
practices;
Strategy B4: Strengthening growth enablers by improving
access to financing, prioritising performance-based incentives as
well as increasing competitiveness of the logistics supply chain and
industrial estates; and
Strategy B5: Ramping up internationalisation by providing
targeted support to exporters, leveraging the AEC and FTAs as well
as encouraging smart partnerships between SMEs and MNCs.
Strategy B1
Moving towards complex and diverse

products
Strategic diversification of the manufacturing sector will be promoted to
strengthen its output base and increase exports. The Complexity Analysis
Study of Malaysias Manufacturing Industries in 2014 identified 238 frontier
products which are complex, technologically feasible, and valuable for
strategic diversification. These products include electric lasers, photon
beams, apparatus using X-rays, beauty and cosmetics preparations,
lubricating products, power tools as well as electric ignitions.
Manufacturers will be incentivised to diversify into frontier products
which will be included in the promoted list of products under MIDA.
The scope of funds under various agencies will be expanded to
encourage SMEs and start-ups to venture into frontier industries.
Partnerships between SMEs and large companies, including MNCs,
8-22
will be encouraged to develop the capabilities of SMEs to venture into

frontier products and gain access to export markets. A task force will
be established to foster collaborative research in the chemicals and
M&E subsectors by emulating the model of the Collaborative Research
in Engineering, Science & Technology (CREST) Centre for the E&E
subsector. In addition, skills gaps in the identified industries producing
frontier products will be bridged through closer collaboration between
industries and technical and vocational education and training (TVET)
institutions.
Strategy B2

automation
Measures to increase productivity will be undertaken by increasing
automation and enhancing workforce skills development. Greater
automation and technology utilisation will be encouraged through
developmental and performance-based financial assistance to reduce
the high dependence on unskilled foreign workers. The current levy
system will be expanded and a cap on employment of unskilled foreign
workers will also be introduced. The emphasis on skills development
will be driven by enhancing industry-led training through greater
collaboration between industry experts and training institutes to ensure
workforce readiness.
Strategy B3
Stimulating innovation-led growth

Manufacturers will be encouraged to undertake R&D and innovation
activities to improve their products and processes by leveraging
existing research entities through intermediaries. Strategic alliances
with developed economies will be increased, especially in the field
of technology, innovation and R&D, to strengthen capabilities in
producing high-value products. Intermediaries that have been
8-23
established include Steinbeis, SIRIM-Fraunhofer, and PlaTCOM. These

intermediaries will engage the right experts to solve manufacturing
problems and strengthen collaboration between manufacturers and
research entities. The collaboration will cut the cost of conducting
R&D, enhance technical knowledge as well as improve work processes
of manufacturers. In addition, the sharing and protection of IP rights
will be promoted, with clear and transparent guidelines formulated
to ensure fair returns for manufacturers and researchers. Industry
associations and chambers of commerce will also be leveraged as
platforms to further promote R&D and technology adoption.
Sustainable consumption and production practices will be promoted
in manufacturing processes, particularly by adopting life cycle
assessment to optimise raw materials usage. The manufacturing
sector development will also be streamlined to ensure compliance
with multilateral environmental commitments and other international
environmental standards in order to overcome non-tariff barriers.
Strategy B4
Strengthening growth enablers

Financing, incentives, logistics services, and industrial estates (IEs) are
key enablers of growth for the manufacturing sector. Improvements
will be undertaken to strengthen the enablers including encouraging
financial institutions to better understand innovation processes and
risks to improve access to financing, mainly by engaging panels of
experts when evaluating business and innovation projects in new
areas. Specific and performance-based incentives, with clear key
performance indicators and exit policy, will be introduced to raise
productivity and spur innovation.
A more integrated logistics supply chain will be developed to drive
growth and increase competitive advantage. A full life cycle costing
approach will be adopted to ensure viability and sustainability of
the IEs, supported by a self-sustaining park management model
to enhance governance and competitiveness. MIDA will utilise a
centralised database to streamline information on IEs to facilitate
investment promotion.
Strategy B5
Ramping up internationalisation
The Malaysia External Trade Development Corporation (MATRADE) and
related agencies will strengthen their capability to assist export-ready
companies across all sectors to penetrate a wider export market and
strengthen product distribution. The Mid-Tier Companies Development
Programme will be further intensified to accelerate export growth by
mid-tier companies (companies with average annual revenues of RM20
million to RM500 million) by providing targeted market intelligence,
building export capabilities, and matchmaking mid-tier companies with
suitable business partners abroad. In addition, the newly established
National Export Council will address gaps and challenges in the export
supply chain.
The AEC and FTAs will be leveraged to further ramp up exports and
investments. MATRADE will promote greater intra-ASEAN industry
linkages to strengthen supply chain and production networks to
maximise opportunities in ASEAN and other markets. To facilitate
market access and protect investment, companies will be encouraged
to utilise provisions in FTAs when venturing abroad. The role of industry
associations will also be further strengthened to deal with global
competition through smart partnerships with industry associations in
target export markets. In addition, greater collaboration between MNCs
and SMEs will continue to be fostered through the Vendor Development
Programme and the factory-in-factory concept. MNCs will also be
encouraged to source for inputs locally, particularly from SMEs.

8-24
Focus area C
Modernising agriculture
In the Eleventh Plan, the agriculture sector, namely the agro-food and
industrial commodity subsectors will be transformed and modernised
into a high-income and sustainable sector. This sector is expected to
grow at 3.5% per annum, contributing 7.8% to GDP in 2020. Industrial
commodities will contribute 57% and agro-food 42.4% to the total
agriculture value added in 2020. Efforts will be focused on ensuring
food security, improving productivity, increasing skills of farmers,
fishermen, and smallholders, enhancing support and delivery services,
strengthening the supply chain and ensuring compliance to international
market requirements. The development of the sector will also take into
account the impact of climate change on sustainability of agricultural
practices. Special focus will also be given to the industrial commodities
smallholders to further boost productivity through the infusion of
modern technologies with the aim of reducing labour dependency as
well as to address low commodity prices through income stabilising
measures. Seven strategies have been identified to spur the growth of
the agriculture sector.
Strategy C1: Improving productivity and income of farmers,
fishermen, and smallholders by accelerating adoption of ICT and
farming technology, preserving and optimising agricultural land, and
intensifying R&D&C in priority areas;
Strategy C2: Promoting training and youth agropreneur
development through collaboration across agencies and the private
sector to modernise farming techniques and nurture agribusiness
start-ups;
Strategy C3: Strengthening institutional support and extension
services by streamlining extension services and encouraging
advisory services from industry and academia;
Strategy C4: Building capacity of agricultural cooperatives and
associations along the supply chain by vertically integrating the
supply chain for selected crops, enhancing management skills, and
pooling resources for promotion and exports;
Strategy C5: Improving market access and logistics support
by strengthening logistics and enhancing access to domestic and
international marketplaces;
Strategy C6: Scaling up access to agricultural financing by

restructuring and providing a more flexible payment mechanism
as well as increasing sustainability of financing mechanisms for
replanting programmes; and
Strategy C7: Intensifying performance-based incentive and
certification programmes by encouraging farmers to get certified,
and prioritising certified farms for incentives and support.
Strategy C1
Improving productivity and income of

farmers, fishermen, and smallholders
Accelerating adoption of ICT and farming technology
The use of smart farming technologies and ICT in plantation, farming,
livestock, and fishing activities will be intensified to improve production
efficiency and reduce dependency on labour. ICT-based applications
to support farm and plantation management, precision farming, and
monitoring and surveillance will be expanded to increase productivity and
reduce the cost of production. Mobile phone applications and portals
will be used to disseminate real-time information on market demand and
prices, early detection and warning alerts on disease outbreaks as well as
provide interactive platforms for technical advice.
Preserving and optimising agricultural land

State governments will be encouraged to gazette agricultural land,
particularly granary areas and permanent food production parks,
to preserve land for farming. In this regard, incentives in the form of
infrastructure including farm roads and grants will be provided to
compensate for loss of revenue. Integrated farming and inter-cropping
in farms and plantation areas will be intensified to optimise the use of
agricultural land to increase the income of farmers. A land bank database
for idle land will be established through the cooperation of ministries and
state land offices. Such land subsequently will be leased to farmers and
corporations for agricultural ventures.
8-25
Intensifying research & development and

commercialisation in priority areas
Focus will be given to R&D&C, particularly in the development of quality
seeds, breeds, fries and animal feeds, integrated pest and disease
management, as well as product improvement and development of green
products. In addition, research will also focus on addressing climate
change issues to ensure crops, livestock, and fisheries are climate resilient.
Collaboration in agricultural research will be spearheaded by a research
management agency (RMA) with support from existing agricultural
research agencies, such as the Malaysian Agricultural Research and
Development Institute (MARDI), Malaysian Palm Oil Board (MPOB),
Malaysian Rubber Board (LGM), universities, and private research centres.
This is to ensure that the research is participatory and market-driven to
promote the uptake of solutions among industries and farmers.
Strategy C3
Strengthening institutional support and

extension services
Extension services provided by various agencies will be reviewed and
streamlined based on location, agricultural activities, and relevance
of services provided. Extension officers will be pooled at these
establishments to offer one-stop advisory services to farmers, fishermen,
and smallholders. The officers will be trained in areas such as livestock,
aquaculture, oil palm, rubber, modern technologies, sustainable practices,
and managing climate change impact. Modern technologies, such as
remote sensing and drones will be used for planning, surveillance, and
monitoring activities by the extension officers. In addition, the private
sector, universities, and farmer associations will be encouraged to provide
advisory and technical services in specialised areas.
Strategy C2
Promoting training and youth

agropreneur development
Focus will be given to enhancing the agricultural and entrepreneurship
skills of farmers to modernise the sector. The National Agricultural Training
Council (NATC) and Institute of Malaysian Plantation and Commodities
(IMPAC) will collaborate with higher learning institutions and industry
players to continuously review existing training curriculums to meet industry
demand. The current skill sets of farmers, fishermen, and smallholders
will be assessed and upskilling programmes introduced to assist them in
adopting modern technologies and good agricultural practices.
Entrepreneurship development programmes will be improved through
collaboration among the NATC, IMPAC, Malaysian Global Innovation &
Creativity Centre (MaGIC), and National Institute of Entrepreneurship
(INSKEN) to assist and nurture more start-ups, particularly by young
agropreneurs, into successful and sustainable agribusinesses.
Existing facilities in agricultural training institutes will be optimised to
undertake entrepreneurial courses. In addition, the young agropreneurs
programmme, a collaborative effort between Agrobank, universities,
and agricultural training institutes, will be further promoted to attract
undergraduates into agribusinesses. Participants of this programme will be
given priority in obtaining start-up grants and soft loans.
Strategy C4
Building capacity of agricultural

cooperatives and associations along
the supply chain
A cluster-based approach that vertically integrates production, quality
control, processing, and marketing will be promoted to encourage
participation of cooperatives and associations in agro-food and industrial
commodities along the supply chain. This approach will assist in
securing demand contracts, enabling better farm-gate prices and profitsharing from processing activities, and ensuring sustainable income for
farmers and smallholders. Specific clusters will be developed for rubber,
cocoa, fruits and vegetables. To ensure the successful implementation
of the clusters, the cooperatives and associations, will be managed
by professionals appointed by the cooperatives or area farmers
organisations.
In addition, the capacity of cooperatives and associations including
fishermen associations in the area of management, finance, investment,
and marketing will be strengthened to enable them to undertake new
business ventures along the supply chain. Fishermen associations will be
incentivised to assist members in purchasing deep-sea vessels equipped
with modern technologies through special schemes. In the area of
industrial commodities, assistance will be provided to smallholders in the
establishment of new cooperatives. Professionalism in the management of

cooperatives will be enhanced with the placement of young agropreneurs

programme participants to infuse entrepreneurship and dynamism. In
addition, cooperatives and associations will be encouraged to pool their
collective resources and participate in various local and international
events to showcase their products and secure contracts. Assistance in the
form of matching grants and soft loans will be provided for product testing,
packaging, and promotional activities at cooperative or association-level.
Strategy C5
Improving market access and logistics

support
Marketing of agricultural products will be improved by linking producers to
commercial outlets, establishing more market outlets and increasing marketcompliant products. Online marketing, promotion, and branding will also
help stimulate product sales. Direct involvement of the Federal Agricultural
Marketing Authority (FAMA) in the marketing of agricultural produce through
contract farming arrangements will be reviewed. In addition, MATRADE
will intensify the promotion of agricultural products in relevant international
markets through trade and food exhibitions with the collaboration of
agriculture attachs under the Ministry of Agriculture and Agro-Based
Industry. Similarly, promotion for industrial commodities including palm oil,
rubber, timber, and timber products will be intensified through the efforts
of overseas offices of the MPOB, Malaysian Palm Oil Council, Malaysian
Rubber Export Promotion Council and Malaysian Timber Council, under the
Ministry of Plantation Industries and Commodities. The logistics support
for collection, distribution and marketing of agricultural produce as well as
fishery products will be improved to ensure quality, minimise post-harvest
loss, and reduce marketing cost. Additional collection and distribution centres
will be established in new and existing production areas, while cold storage
and handling facilities will be provided and upgraded in fishery complexes,
ports, and airports based on demand to facilitate the export of perishable
products. The use of halal and green logistics will be emphasised to increase
the marketability of agricultural exports.
Strategy C6
Scaling up access to agricultural financing

Government funding through Agrobank will be restructured from fixedterm financing to flexible repayment based on harvest cycles of agro-food
8-26
commodities. The current practice of loan repayment for paddy based on

harvesting cycles will be extended to other agro-food commodities, such
as aquaculture and vegetables. In addition, these loans will have greater
flexibility, where credit insurance will be allowed in place of collateral
requirements.
The suitability of the current mechanism in financing the replanting of
rubber through the collection of cess will be explored for extension to oil
palm, cocoa, and pepper. This is to ensure the availability of sustainable
funds to finance long-term replanting activities. The difference between
actual replanting cost and total cess collection will be covered through
a soft loan scheme. The management of the loan scheme will be
undertaken by smallholder cooperatives or Agrobank for the case of
independent smallholders, while loans for organised smallholders will
be managed by the respective agencies, such as the Rubber Industry
Smallholders Development Authority (RISDA), Sabah Rubber Industry
Board, and Malaysian Cocoa Board.
Strategy C7
Intensifying performance-based
incentive and certification programmes
Existing input-driven subsidies will be gradually replaced with
performance-based incentives to ensure productivity-led assistance.
Incentives will be provided to encourage compliance of farmers and
smallholders to the Malaysian Good Agricultural Practices (MyGAP)
certification and other certifications such as the Malaysian Sustainable
Palm Oil (MSPO), a sustainable palm oil certification scheme. This is to
ensure farm produce complies with sustainable agricultural practices and
food safety requirements to command premium prices.
Certified farms will be given priority for grants or soft loans. In addition,
the MyGAP certification will be streamlined according to the Global GAP
requirements to increase market access, particularly to the European
Union. The benefits of MyGAP certified products will be promoted
to consumers through campaigns and awareness programmes. For
industrial commodities, quality certification of products such as palm oil,
cocoa and pepper, and sustainable forest management certification for
forest plantation will be encouraged. The MSPO will be promoted among
plantations and smallholdings to ensure palm oil from Malaysia complies
with sustainable practices to enable them gain better market access. In
addition, the Malaysian Timber Certification Scheme, an internationally
recognised national timber certification scheme, will also be promoted.
8-27
Focus area D
Transforming construction
The construction sector is becoming more important due to higher
demand for modern and efficient infrastructure in line with the aim of
becoming an advanced nation. The construction sector is expected to
grow at 10.3% per annum with a contribution of RM327 billion (5.5%) to
GDP by 2020. The Government will introduce the Construction Industry
Transformation Programme (CITP), 2016-2020, to propel the industry
forward and meet market demand.
In the Eleventh Plan, efforts to transform the construction sector are
based on four main strategies, namely:
Strategy D1: Enhancing knowledge content by increasing
human capital quality, accelerating capacity and capability building
of SMEs and Bumiputera contractors, and reducing the mismatch
between labour demand and supply;
Strategy D2: Driving productivity by increasing technology
adoption and modernising construction methods;
Strategy D3: Fostering sustainable practices in the construction
value chain and developing legislation that supports sustainable
construction activities; and
Strategy D4: Increasing internationalisation by building
capacity and scale of firms to export and addressing issues
through negotiations at government-to-government level as well as
utilising the Services Export Fund.
Strategy D1
Enhancing knowledge content

The strategies to enhance knowledge content in the construction
industry include increasing the quality of human capital, accelerating
capacity and capability building of SMEs and Bumiputera contractors,
and reducing the mismatch between labour demand and supply. Key
initiatives include fostering greater collaboration between Construction
Industry Development Board (CIDB), the respective professional
boards, and training institutions to develop industry-relevant training
modules. A structured skilled trade apprenticeship programme for
specific courses such as safety supervisors, crane operators, and
rotary drill operators will also be introduced to produce a highly skilled
workforce. SME capabilities will be enhanced, particularly Bumiputera
contractors, with the support of key partners and the establishment
of productivity CoE for sharing of best practices. Regular manpower
planning will be undertaken to reduce the mismatch between labour
demand and supply. The proportion of skilled foreign labour will be
increased by streamlining entry requirements and introducing a new
levy system.

Strategy D2
Strategy D4
Increasing the internationalisation of

construction firms
The strategies to increase productivity in the construction sector

will focus on increasing technology adoption and modernisation of
construction methods as well as reducing dependency on low-skilled
labour. The labour productivity of the sector is targeted to increase
by about 1.6 times, from RM39,116 per worker in 2015 to RM61,939
per worker by 2020. A number of initiatives will be introduced to drive
productivity, including expediting the adoption of the IBS by the
industry through the revision of the public procurement policy and
Uniform Building By-Laws and improving existing regulations to ease
construction-related business processes. This effort, which started
with Kuala Lumpur City Hall, will be expanded to other local authorities.
The use of ICT will be enhanced by providing a common platform to use
BIM on a pay-per-use basis.
Strategy D3
Fostering sustainable practices

In line with the growing need for green construction practices,
strategies will be geared towards increasing the sustainability of
built infrastructure. This will include inculcating green practices
in the construction value chain and developing legislation that
supports sustainable construction activities. Three initiatives to foster
environmental sustainability in the sector are: mandating compliance
to sustainable waste management practices through EMS ISO 14001
certification; enhancing the current rating systems for buildings and
developing new standards for infrastructure to promote sustainability;
and enhancing the awareness and accountability of health, safety and
environment (HSE), where HSE good practices will be made obligatory.
The minimum level of construction workers amenities will be raised in
the code of practice and further mandated within standard contracts.
8-28
The strategies to increase the internationalisation of firms will focus

on building capability and scale of firms by encouraging highperforming SMEs to forge partnerships with larger corporations or form
multidisciplinary consortia when bidding for international projects. The
public procurement policy will be reviewed to facilitate the formation of
such consortia. In addition, firms will be encouraged to leverage FTAs
and MRAs, and provide feedback to the Government on challenges
faced when venturing abroad to enable issues to be addressed at
government-to-government level. The SEF, which covers activities
such as tendering, negotiating, and conducting feasibility studies for
international projects as well as export promotion activities, will assist
construction firms to secure opportunities abroad.
8-29
Focus area E
Growing dynamic SMEs

The Eleventh Plan will focus on developing resilient and sustainable
SMEs to achieve inclusive and balanced growth. The contribution of
SMEs across all sectors is targeted to increase to 41% of GDP by 2020.
The development of SMEs will be based on the SME Masterplan, 20122020, encompassing six strategies, as follows:
Strategy E1: Enhancing productivity through automation and
innovation by promoting increased use of ICT and continuing
the Technology Commercialisation Platform (TCP) and Inclusive
Innovation programmes;
Strategy E2: Strengthening human capital development
within SMEs by reskilling and upskilling workers through industry
partnerships;
Strategy E3: Enhancing ease of doing business by simplifying
the process of formation and formalising of businesses as well as
increasing ease of access to financing;
Strategy E4: Increasing demand for SME products and
services by reviewing policies for procurement from SMEs
and encouraging SMEs to obtain international standards and
certifications to increase exports;
Strategy E5: Creating home-grown champions through the
Catalyst Programme to build high performing SMEs into regional
and international players; and
Strategy E6: Developing SMEs in Sabah and Sarawak by
strengthening infrastructure, encouraging market expansion
through e-commerce, reducing the cost of doing business, and
increasing outreach of government assistance.
Strategy E1

automation and innovation
SMEs will be encouraged to adopt greater automation in production
processes and business services. Greater ICT utilisation will be
promoted, mainly in business operations, supply chain management,
and delivery systems. Two existing high-impact programmes,
namely TCP and Inclusive Innovation will be continued. The TCP links
innovation initiatives under one platform and aims to remove market
and financing barriers to innovation. This end-to-end facilitation
enables SMEs to use technology as well as acquire IPs and early stage
financing. In this regard, PlaTCOM, established in 2014, will continue
to implement the TCP to assist SMEs to innovate and commercialise
products and services. The Inclusive Innovation programme aims to
empower microenterprises in rural areas and the B40 households to
leverage innovation. The programme will provide technical, financial,
and management support to the target groups and encourage grassroot innovation.
Strategy E2
Strengthening human capital

development within SMEs
Curriculum for TVET will be strengthened with greater input from the
industry to equip workers in SMEs with the right skill sets. In addition,
reskilling and upskilling of workers will be intensified to enable them
to fill higher-paying jobs. Other measures to strengthen human capital
development include ensuring new entrants into the workforce meet
industry requirements and creating an entrepreneurial culture in the
society.

Strategy E3
Strategy E5
Enhancing ease of doing business

for SMEs
Creating home-grown champions
The on-going integration of Malaysia Corporate Identity Number

(MyCoID) and Business Licensing Electronic Support System (BLESS)
will simplify the process of formation and formalising of businesses. For
better access to financing, SMEs are encouraged to engage industry
experts when preparing proposals, particularly for technology and
innovation activities. The SME Investment Partner (SIP) programme
will also introduce new ways of financing for early stage companies by
combining equity and loan financing features and providing up to 100%
margin of financing. SIP financing will complement the existing venture
capital, private equity, and angel financing landscape. SMEs will be
encouraged to pool resources, utilise shared services, and purchase
inputs, raw materials and services in bulk to reduce cost.
Strategy E4
Increasing demand for SME products

and services
Government policy on procurement from competitive SMEs will be
reviewed to increase the demand for high-quality local products and
services. Similarly, government-linked companies (GLCs) and MNCs
will be encouraged to procure from local SMEs and invest in supplier
development programmes. The SMEs will leverage the consortium
approach to take advantage of market opportunities for large
orders. SMEs will also be encouraged to comply with international
market standards and certifications, such as good manufacturing
practices (GMP), eco-labelling, and Hazard Analysis & Critical Control
Points (HACCP). To further boost exports, the Going Export (GoEx)
Programme will be scaled up to assist SMEs to venture into exports.
8-30
The Catalyst Programme will help to remove barriers and provide

assistance to potential SMEs to become home-grown champions
who can compete in regional and international markets. The selection
of SMEs will be based on transparent and clear criteria to identify the
most deserving and highest potential growth SMEs to participate in
this programme. Support will be provided in the areas of financing,
market access, and human capital development to the selected SMEs.
Strategy E6
Developing SMEs in Sabah and

Sarawak
Infrastructure development in Sabah and Sarawak will be given priority
to enable SMEs to expand their businesses. This includes increased
coverage and quality of telecommunications network, supply of electricity
and water as well as transportation connectivity in these states. In
addition, SMEs will be encouraged to expand their markets by adopting
e-commerce, cloud computing, and crowdsourcing for financing.
Regulations will be reviewed to reduce the cost of doing business and
increase the outreach of government assistance to allow businesses to
enable and unleash the potential of SMEs in Sabah and Sarawak.
8-31
Focus area F

Innovation is a game changer in the Eleventh Plan to sustain economic
Strategy F1
growth and improve the wellbeing of the rakyat. Focus will be on
strengthening relational capital to foster stronger linkages, collaboration,
and trust among stakeholders. This will enable better coordination as well
as sharing and testing of ideas to create new value. Efforts to promote
An existing agency will be restructured to become the RMA to
innovation will be undertaken at the enterprise and societal levels.
strengthen the institutional mechanism to manage public R&D&C&I
initiatives to increase return on investment. It will undertake planning,
coordination, and monitoring of public-funded R&D&C&I projects,
Efforts to enhance innovation at the enterprise level are based on four
conduct studies on technology foresight, set national priority areas,
strategies, namely:
and foster interdisciplinary and multi-agency research efforts. In
addition, the agency will eliminate overlapping and supply-driven
Strategy F1: Strengthening the governance mechanism by
programmes as well as reduce low-impact programmes.
creating a research management agency (RMA) and expanding the
1Dana Portal;
The 1Dana portal, established in 2014, will be expanded to serve as a
centralised registry for R&D&C&I-related information to encourage sharing
Strategy F2: Enhancing demand-driven research by
of resources. This will include information on R&D facilities and equipment,
streamlining public sector funding for research, development,
expertise in various fields, research output, and registered IPs. Through
commercialisation and innovation (R&D&C&I);
this portal, owners of R&D capital will be able to maximise the use of their
Strategy F3: Strengthening industry-academia collaboration
facilities and equipment, and increase their income through the pay-perthrough intermediaries by encouraging local and international
use approach. In addition, companies will have access to these resources
collaborations for technology transfer, including strategic alliances without incurring large capital outlays and will be able to upgrade, test, and
between MNCs and SMEs; and
certify their products to meet international standards. Information from
other related portals such as krste.my, TECHMart database, and
Strategy F4: Promoting private financing of research,
myren.net.my,
will be integrated
with the
portal.
8-11: Achievements
and targets
for1Dana
enterprise
innovation
development, commercialisation and innovation by increasing Chart
Strengthening the governance

mechanism
access to private sources of financing, and developing a framework

for risk mitigation and management of crowdfunding activities.
With the implementation of these strategies, it is expected that the
following outcomes will be achieved, as shown in Exhibit 8-11.
Exhibit 8-11
Achievements and targets for enterprise innovation

Item
2010
2012/13
2020
Ratio of business and government expenditure on

R&D
65:35
64:36
70:30
GERD/GDP (%)
1.07
1.13
2.0
Ratio of researchers/10,000 Iabour force
53.1
57.5
70.0
IHLs (%)
3.4
2.11
5.0
MOSTI R&D funds (%)
5.5
3.11
10.0
Commercialisation rate of R&D outputs by:
1 Data
as of 2013
Source: Malaysia Science and Technology Information Centre and Ministry of Education

Strategy F2
Enhancing demand-driven research

Public sector funding for R&D&C&I will be streamlined to ensure
better returns. The RMA will act as a clearing house for research
proposals to coordinate and reduce duplication of proposals and
increase collaboration for implementation. Funding will be channelled
into fundamental research for experimental and knowledge creation;
applied research to solve national issues and to develop new industries;
and demand-driven research to solve problems, improve processes
and create new value in industries. In this regard, emphasis will be
given to applied and demand-driven research to promote strategic
partnerships between companies and researchers, and generate
higher return on investment.
8-32
dependency on Government resources and increase the financing of

R&D&C&I projects. This includes the expansion of the Technology Park
Malaysia Angel Chapter and early stage financing for SMEs through the
SIP programme.
In addition, equity crowdfunding will be explored to widen the range of
fundraising and investment products, as well as improve market access to
a broader spectrum of issuers and investors. Crowdfunding is envisioned
to provide financing opportunities for SMEs, start-ups, and innovative
businesses seeking liquidity in a more efficient and transparent manner.
The enabling environment for innovation will be further strengthened by
providing a clear framework for risk mitigation and management.
Social innovation
Efforts to boost innovation at societal level are based on three
strategies, namely:
Strategy F3
Strengthening industry-academia
collaboration through intermediaries
Local and international collaboration between Government, industry,
and academia will be further encouraged through platforms such as
Public Private Research Network (PPRN), Steinbeis, SIRIM-Fraunhofer,
and PlaTCOM. These platforms will serve as intermediaries to assist
in connecting industries with the relevant research entities to provide
solutions on companies specific problems and support technology
adoption. This collaboration, which includes strategic alliances
between MNCs and SMEs, will increase commercialisation of research
findings and accelerate sharing of knowledge and innovative ideas.
Strategy F4
Promoting private financing

of research, development,
commercialisation and innovation
Access to financing and assistance will be strengthened through

continuous engagement with private financial institutions, venture
capitalists, and angel investors to widen financial options, reduce
Strategy F5: Strengthening collaboration through a wholesociety approach by encouraging broader participation across
Government, residents, non-governmental organisations (NGOs),
organisational and community leaders for social services delivery;
Strategy F6: Developing a social financing model to promote
investments from the private sector, foundations, and individuals in
delivering social services; and
Strategy F7: Promoting higher order thinking skills to
develop a dynamic society by scaling up existing programmes
such as i-Think and Genovasi, prioritising science and
mathematics in education, and expanding career opportunities in
science and technology.
Strategy F5
Strengthening collaboration through a

whole-society approach
In increasing the impact of innovation at societal level, the design and
delivery of social services will shift from a top-down, government-centric
approach to a whole-society approach. This approach will strengthen
relational capital in social services delivery, by encouraging collaboration
across Government, residents, NGOs, organisational and community
8-33
leaders to optimise utilisation of resources and promote volunteerism. A

special task force comprising representatives from relevant ministries,
private sector, NGOs and Community-based Organisations (CBOs) will be
established to coordinate social services delivery. Through this task force,
successful community-based programmes will be replicated and the
Government will also be able to assist in improving the professionalism
and capabilities of NGOs and CBOs.
Strategy F6
Developing a social financing model

In line with the whole-society approach, a social finance model for
public-private partnership programmes will be introduced to promote
investments from the private sector, foundations, and individuals in
delivering social services. Through this model, the payment by results
mode will be introduced, where private social impact investors will
provide funding for NGOs and CBOs to implement social services and
will be reimbursed by the Government when the agreed outcomes are
achieved. This model will reduce the burden and risk of social services
programmes through the sharing of resources and leveraging civil
societys collective skills, enthusiasm, and innovation capacity with the
Government as a facilitator. In addition, the involvement of NGOs and
CBOs will increase the flexibility in implementation of the programmes.
Strategy F7
Promoting higher order thinking skills

to develop a dynamic society
Existing HOTS programmes, including i-Think and Genovasi, will be
scaled-up to inculcate the current and future workforce with critical
thinking, communications, and leadership skills. In addition, science
and mathematics in education will also be given priority in line with
the Malaysia Education Blueprint, 2013-2025, as these subjects
stimulate creativity and innovation. Career opportunities in science
and technology will be expanded with the Governments emphasis on
knowledge-intensive and high value-added industries.
Game Changer
Translating innovation
to wealth
Why is innovation important for Malaysia?
Innovation is a key driver for economic growth as it
raises productivity through new or improved processes,
technologies, and business models. In addition,
innovation can create additional sources of revenue
through differentiated products and services that serve
unmet customer needs. As Malaysia continues to move
towards a high-value, knowledge-based economy with a
strong focus on the services and manufacturing sectors,
innovation will be crucial to raise the overall efficiency and
thus productivity of each sector.

In the enhanced innovation ecosystem, there will be
greater collaboration and integration across industry,
academia, and communities. Research will be closely
aligned with industry demand, and the private sector
will be active partners in the R&D&C&I process by
contributing funds, expertise, and other resources.
Communities will be actively engaged in addressing
social issues through a whole-society approach in the
provision of social services. There will be a greater return
on investment from innovation.

The Eleventh Plan will focus on strengthening relational
capital by improving collaboration among all stakeholders.
Innovation will be targeted at both the enterprise and
societal levels, instead of previous efforts which focused
primarily on national-level initiatives. At the enterprise level,
initiatives will enhance demand-driven research, improve
collaboration between researchers and industries,

The two strategy canvases below highlight areas that should be

eliminated, reduced, raised or created for this game changer.
and encourage private investment in R&D&C&I. At the societal level,

communities will be encouraged to provide input into social services
delivery mechanisms, while a social financing model will be developed
to assist communities to fund new initiatives. Collectively, these
strategies will produce a set of major shifts as set out in the table below:
From
Collaboration between
industry and research
institutes is limited,
resulting in R&D output
that is not linked to
industry demand
Investments in R&D have

low returns and do not
drive competitiveness
and productivity for
industry
Social innovation
High investments in
social services but
delivery is ineffective
Communities remain
dependent on the
government
8-34
To
Better partnerships
between industry
and researchers, with
industry helping to shape
research to ensure
relevance to business
and contribute ideas,
infrastructure, tools, and
expertise
Strategy canvas: Enterprise innovation

High
Eleventh
Plan
As-Is
Low
Eliminate
Integrated R&D&C&I
initiatives generate high
return on investment
over time, and stimulate
productivity growth
Focus on streamlining
social services delivery
by incorporating
feedback from the
community in line with
the whole-society
approach
Delivery supported
by a Social Financing
Model and outcomebased funding to
provide communities
with avenue to invest in
innovative initiatives
Reduce
Overlapping
Programmes
Raise
Supply driven
R&D&C
Create
Performance-based
incentives for
demand-driven
research
Low impact
programmes
Access to finance
& assistance
Compliance to
standards
Commercialisation of
research findings
Sharing of
facilities
& programmes
Strategic
alliance (MNCs
and SMEs)
Research
Management
Agency
Platforms for
collaboration
Strategy canvas: Social innovation

High
Eleventh
Plan
As-Is
Low
Eliminate
Overlapping
Programmes
(Gov., NGOs
& Private)
Reduce
Raise
Top-down
approach to social
programme design
& delivery (SPDD)
Broad-based
support to
NGOs &
CBOs
Create
Programmes to
enhance
professionalism,
capability of NGOs &
CBOs
Involvement of
private sector and
NGOs & CBOs in
SPDD
Higher order
thinking skills
Performance-based
incentives to
encourage social
enterprises
Incentives for
social impact
investment
Social finance for

public-private
partnership
model
Taskforce to
coordinate
social service
initiatives
8-35
Game Changer
Focus area G
Investing in competitive
cities and regional
economic corridors
Malaysia will invest in developing cities and regional economic corridors
that are essential for growth, to maximise impact for local communities, and
stimulate broader national development. Two strategies will be delivered to
achieve this aspiration:
Strategy G1: Developing city competitiveness master plans for four
major cities, namely Kuala Lumpur, Johor Bahru, Kuching, and Kota
Kinabalu3, along the principles of creating density, expanding transitoriented development (TOD), strengthening knowledge-based clusters,
enhancing liveability, encouraging green-based development and
practices, as well as ensuring inclusivity; and
Strategy G2: Strengthening corridors to fuel regional development
through a strategic review of corridor development master plans,
accelerate investment in regional economic corridors, improve
infrastructure, as well as enhance talent and skill development.
A study by the World Bank aimed at unlocking the economic potential of Malaysian cities covering all major
conurbations in Malaysia was completed in early 2015. Based on the findings from this study, city-specific
competitiveness plans will be developed for four selected cities in the Eleventh Malaysia Plan. These cities
were selected based on criteria such as population size, GDP contribution, existing major infrastructure,
concentration of higher learning institutions, geographical advantage, and also the principles of inclusivity
and fair distribution.
Investing in
competitive cities
Why is investing in cities important for
Malaysia?
Cities have always played an important role in a nations
growth by providing investment and trade opportunities,
as well as improving connectivity with rural or suburban
areas. Today, global competition for investment and talent
is increasingly between cities, making it imperative to
invest in cities in order to attract and retain investment
and talent. Kuala Lumpur, the largest city in the nation,
is expected to contribute 14.8% of GDP in 2015. As
Malaysia aims to re-engineer and spur economic growth,
the development and renewal of cities will be crucial to
create nodes for strong economic agglomeration.

8-36
By 2020, four major cities in Malaysia will have undergone a stepchange in their economic growth, importance as talent hubs, and
liveability. City residents will be able to afford urban housing, have
adequate public transportation systems, enjoy green and open spaces,
and have access to economic opportunities that will enable them to
provide their children with a better future. While these four cities
selected based on their strong fundamentals will serve as pioneers,
the transformation will be expanded to other cities over time. These
cities will serve as role models for other cities in the country and region.
City Competitiveness Master Plans will be developed for the four major
cities as a start, based on key principles that increase liveability and
stimulate economic growth. These include creating density to increase
efficiency; expanding transit-oriented development to enhance
mobility; and strengthening knowledge-based clusters to facilitate
agglomeration and innovation. These master plans will take into
account each citys competitive advantages, and will be formulated by
the respective local authorities in consultation with the private sector
and civil society. The major shifts that this game-changer will produce
are summarised in the following exhibit.
To
From
Economic density
Urban form
Resource usage
Housing
Industry focus
Role of
local authorities
Economic density in
cities is unplanned
and organic, resulting
in lower productivity
Uncontrolled and
automobile-focused
sprawl
Resource use not

streamlined, leading
to high usage of
natural resources
New developments
are expensive and
exclusive with limited
affordable options
Current industries are

predominantly labourand space-intensive
Local authorities
focused on licensing,
enforcement and
provision of basic
services
Increased economic
density to enhance
productivity
Transit-oriented
development to
increase use of public
transportation and
reduce reliance on
personal vehicles
Efficient in waste
management
through guidelines
on resource use and
effective enforcement
Affordable and quality

housing accessible to
targeted segments of
the society
Growth of knowledgeintensive industries

with efficient use of
space
Local authorities as
strategic drivers of
local economic and
social development
8-37
Strategy G1
Developing city competitiveness

master plans for four major cities
Principle 1: Enhancing Economic Density

High economic density in cities is the key to innovation. It brings
people and businesses closer and enables information and knowledge
sharing, new technological inventions, and new businesses. In addition,
economic density increases efficiency and optimises resource use.
Existing Malaysian city planning guidelines will be revised progressively
to optimise the built environment, enhance connectivity, and integrate
infrastructure development.
Increasingly, competition for investment and talent globally is between

cities and no longer just at country level. Cities play an important role
in a nations growth as finance and logistics hubs, as well as magnets
for talent seeking new opportunities. Cities across the world generated
close to 35% of global GDP in 2011, and are projected to increase this
Principle 2: Expanding Transit-oriented Development
share to 60% by 2025. Great cities also continue to develop into cultural
(TOD)
and political epicentres with vibrant social, cultural, and intellectual
Transit-oriented Development (TOD) refers to urban development
atmospheres. In 2014, more than half the worlds population lives in
concepts involving the mixed use of residential and commercial
cities, and this figure is expected to increase to 66% by 2050.
development to be pedestrian-friendly, designed with maximum access
to public transport. City authorities will adopt TOD as part of the citys
The Government will initially focus on four major cities, namely
competitiveness master plan to provide mobility options to residents,
Kuala Lumpur, Johor Bahru, Kuching, and Kota Kinabalu , given
add vibrancy to city spaces, reduce pollution and energy consumption
their potential in terms of population size, GDP contribution, existing
by reducing commute times and increasing the use of public transport
major infrastructure, concentration of higher learning institutions and
or walking, and also revitalise brownfield areas within the city. Efficient
geographical advantage.
land use through TOD will be given priority along established public
Specific city competitiveness plans will be drawn up, taking into
transport routes.
account the competitive advantages of each city. These plans will be
formulated by the respective local authorities in consultation with the
private sector, civil society, and other relevant stakeholders.
The development of these cities under the Eleventh Plan will take
into account six principles to ensure that they will be economically
advanced and be a great place to live in for urban residents of all socioeconomic levels. These principles will be used as building blocks for
local authorities to develop their city competitiveness plans.

Principle 3: Strengthening knowledge-based clusters

Knowledge-based clusters will be developed to attract investment
and talent. Knowledge-based clusters are physical hubs within the
city that agglomerate industry-specific firms and talent, particularly
for industries such as creative content, ICT, and professional services.
Knowledge-intensive investments will be given priority in the selected
cities. Institutions of higher learning and research institutes located in
the cities will be the catalysts to create knowledge-based clusters.
8-38
Principle 5: Adopting green-based development and

practices
All these cities will place high importance on continuous sustainable
growth by enhancing green-based development and optimising
low carbon resources. Environment-friendly practices, such as
green buildings, green lifestyles, and sustainable consumption and
production, will be embedded within the development plans of these
cities.
Principle 4: Enhancing liveability
Principle 6: Ensuring inclusivity
Cities need to be liveable and should create a conducive environment

that attracts talent to live, study, work, and play in. Better city planning
mechanisms will be developed, including land use zoning that
promotes residential, commercial, and basic social amenities in close
proximity to increase walkability. Sports, arts, and cultural facilities
will be promoted through greater collaboration between related
associations, corporate bodies, and NGOs. Emphasis will also be
given to the quality, capacity, and reliability of public transport, social
amenities, and telecommunications networks. Healthcare facilities and
high-quality schools will be planned for and developed accordingly to
meet local demand. Vibrant cultural attractions, food and beverage
and retail spaces will be developed to create cities that are attractive to
global talent.
Inclusivity is the backbone to successful and competitive cities.

Inclusiveness will be one of the main thrusts for the four cities, to
ensure that communities have ample opportunities to participate in
social, political, and economic activities. This will be achieved through
greater interaction and social connectedness, paving the way for
wealth sharing and improved wellbeing for city dwellers. Focus will
also be given to address issues related to homelessness and poverty
in cities through collaboration among relevant agencies, corporate
bodies, NGOs, and local governments. In addition, good connectivity
will be a priority to enable the spillovers of economic gains from these
cities to the hinterland and suburban areas.
8-39
Strategy G2
Strengthening corridors to fuel

regional development
In the Eleventh Plan, regional economic corridors will continue to be
a key enabler to ensure a more balanced geographic development
across Malaysia. By the end of the Eleventh Plan, it is targeted that
realised investment will reach RM236 billion across all corridors, and
470,000 jobs will be created.
Regional economic corridor development will be enhanced through

a strategic review of the corridor development master plans and
increased investment, improved infrastructure as well as talent and skill
development across the five corridors to ensure that local communities
continue to benefit from the investment and resulting economic growth
in these areas.
Exhibit 8-12
Chart
Keyfor
initiatives
for regional
economic
corridors, 2016-2020
Key 8-12:
initiatives
regional economic
corridors,
2016-2020
East Coast Economic Region
Oil, gas and petrochemical, manufacturing,
tourism
Entrepreneurship and skill training programmes
Central Spine Road and Kota Bharu-Kuala Krai
Highway
Northern Corridor Economic Region

Agriculture, manufacturing, tourism, logistics
and education
Developing the nutraceutical industry
Strengthening automotive and aeronautics
industries
Iskandar Malaysia
Education and creative cluster
Tourism and logistics hub
Manufacturing focus on E&E, food and oleochemicals

Pan-Borneo Highway
Energy-intensive industries including
aluminium, steel and glass
Growth nodes in Baram and Tunoh for
tourism and resource-based industries

Key focus areas include tourism and
palm oil downstream processing
Logistics infrastructure development
Creative content programme

Conclusion
During the Tenth Plan, the economy sustained growth across all
sectors amid a challenging external environment. This growth
was supported by strong domestic demand and sound economic
fundamentals. Policy shifts were undertaken to increase
competitiveness including further liberalisation of the services sector,
increasing the ease of doing business, enhancing the innovation
ecosystem, and strengthening SMEs. The Eleventh Plan emphasises
on re-engineering economic growth to enhance socio-economic
development. The continued focus on knowledge-intensive sectors
and high value-added activities will allow Malaysia to further capture
growth opportunities and attract quality investments. Economic growth
will be supported by increased investment, improved productivity,
a robust regulatory framework, and a larger pool of high-skilled talent.
SME development and innovation will spur further development
and increase inclusiveness across the various segments of society.
Competitive cities and regional economic corridors will be the catalysts
for growth, creating vibrant hubs for investment as well as developing
talent and knowledge. The successful delivery of the strategies outlined
will ensure that Malaysia claims its rightful position among the ranks of
other developed countries.
8-40
Transforming
public service
for productivity
Overview
Highlights
2011 -2015: Achievements
Looking back
2011-2015: Progress
2016-2020
Moving forward
2016-2020
Focus area A: Enhancing
service delivery with citizens
at the centre
Focus area B: Rationalising
public sector institutions
for greater productivity and
performance
Focus area C: Strengthening
talent management for the
public service of the future
Focus area D: Enhancing
project management for
better and faster outcomes
Focus area E: Capitalising on
local authorities for quality
services at the local level
Conclusion
9-1
Overview
The challenges facing governments are becoming increasingly more complex
due to technological and cultural changes, demographic shifts, and the everfaster movement of money, goods and people. Governments globally are also
encountering greater fiscal constraints, economic uncertainties, declining
effectiveness of standard practices and procedures, as well as difficulties in
attracting and retaining top talent. Increased affluence and exposure to global
services has led to more sophisticated demand and rapidly rising expectations
from the rakyat, further escalating challenges in public service delivery. An
important part of addressing these challenges requires adapting to new models of
service delivery that are better suited to todays technologies, norms and citizen
needs. These new delivery and service requirements provide a clear opportunity
for the Government to reform in order to be more cost-effective and better
equipped to meet the demands and expectations of the rakyat for 2020 and
beyond. This will also require the public sector to be leaner, facilitative, more
efficient, more productive, more skilled, more open, more innovative, and less
bureaucratic, in order to better deliver for the rakyat and for Malaysia.
During the Tenth Malaysia Plan, 2011-2015, the Government embarked on efforts
to adopt a whole-of-government approach in delivering its services. Efforts were
undertaken to transcend organisational boundaries between and within public
sector institutions towards achieving shared goals. Integrated solutions were
developed to better meet the needs of customers, including citizens and the
business community. Improvements were made across public service in areas
such as streamlining regulatory processes, reducing business licensing

Chapter 9: Transforming public service for productivity
requirements, removing redundant procedures, as well as expanding digital and

online government services for the rakyat. Organisational restructuring, career
advancement schemes and value management initiatives were implemented
across public sector institutions, resulting in significant cost savings.
In the Eleventh Malaysia Plan, 2016-2020, the Government will become more
citizen-centric and focus on enhancing the efficiency and productivity of the
public service. Service delivery will be further enhanced and executed with speed
and accuracy through innovative and creative approaches while upholding
integrity. This chapter addresses current challenges and outlines strategies for
enhancing public service delivery by improving delivery processes, leveraging
data, expanding out reach, and increasing accountability and transparency. It
covers the rationalising of public sector institutions, rightsizing of the public
service, and introducing exit policy for non-performers, as well as enhancing
talent management and competency building. The emphasis is also
on improving project management and implementation by public
sector institutions, as well as capitalising on local authority with greater
empowerment, more stakeholder engagement, and stronger business
or community partnerships. The aspiration is to enhance public
service in Malaysia with citizens at the centre; with talent that is more skilled;
less bureaucratic and hierarchical; less centralised, and with services that are
even more accessible, efficient, and effective for the rakyat.
9-2
9-3
Highlights
77%
Government
services provided
online out of
13,483 services
80%
98%
Increase in
conviction rates
for corruption
cases from 34% in
2011
Government
websites and
portals rated
3-stars and
above in 2014
Designing public services

around people and business
3.1
million
15.4
million
Customers served
Transactions
handled by 1MOCC by UTCs, RTCs
on public queries, and Mobile CTCs
in 2014
complaints,
suggestions and
feedback from Nov
2012 to Apr 2015
Accelerating delivery through

transparent and accountable
management of priority
outcomes

60
Reduction in
procedures for
construction
permit
approvals
from 37 to 15
procedures
38
69
Reduction in
Reduction in
business licences business licences
at federal level
at local level
from 717 to 448 from 1,455 to 449
licenses
licenses
Positioning government to be an effective

facilitator of private sector-led growth
9.34
RM
billion
9-4
613,743
Savings from
value management
conducted on 214
projects
Public servants
benefited from
improved career
advancement
schemes
to ensure prudent
use of public
finances
Rationalising
and building
capacity in
government
9-5
Looking Back

During the Tenth Plan,
the Government
embarked on efforts
to adopt a whole-ofgovernment approach in
delivering services.
A number of initiatives were undertaken to improve Malaysia was ranked 50 out of 175 countries in 2014
the efficiency of public service delivery. As part of compared with 53 out of 177 countries in the 2013
ongoing improvement efforts, Malaysia continued Corruption Perception Index. The Index measures
to benchmark and monitor its rankings in various
the perceived levels of public sector corruption
global indices such as the World Competitiveness based on secondary data from independent
Yearbook (WCY) by the International Institute for
institutions. The improvement can be attributed to:
Management Development (IMD), the e-Government
The establishment of 14 Special Corruption
Development Index (EGDI) by the United Nations
Sessions Courts in 2011 that enabled
(UN) and the Corruption Perception Index by
corruption cases to be resolved within a year of
Transparency International (TI).
reporting, cleared backlogs and increased the
In the government efficiency sub-index of the
conviction rate from 34% to 80%;
WCY, Malaysia ranked 15 out of 60 countries in
The signing of the Corporate Integrity Pledge by
2014 compared to 13 out of 59 countries in 2012.
512 institutions and corporations between 2011
Government efficiency covers public finance, fiscal
and 2014;
policy, business legislation, societal framework
The setting up of 746 integrity units in
and institutional framework. Although there were
ministries, departments and agencies between
improvements in the areas of public finance from
2013 and 2014; and
21 to 20, fiscal policy from 12 to 11 and business
legislation from 21 to 19, Malaysias position
dropped in societal framework from 25 to 32 and
remained at 13 in institutional framework.
The investigation of 24 cases subsequent to

the tabling of the Auditor Generals Report 2012
and 2013 to the Parliament.
Malaysias commitment towards improving its

With respect to the availability of online services1
public service delivery has resulted in a number of
in the EGDI, Malaysias position dropped from 20
in 2012 to 31 in 2014 out of 193 countries. This was significant achievements as shown in Exhibit 9-1.
attributed to the lack of citizen-centric services
such as e-participation, government open data and
accessibility to online services.
Online services measure the use of information and communications technology (ICT) by governments to deliver public services at the national
level. This is based on a survey of online presence, which assesses the technical features of national websites as well as the application of
e-government policies and strategies.

9-6
Exhibit 9-1
Public service
delivery
achievements
during the Tenth
Plan the Tenth Plan
Public
service
delivery
achievements
during
Licensing and regulation
Digital government
Facilitating business
Cost savings
Single contact point
Organisational improvement
31 Good Regulatory
Practices based on
Regulatory Impact
Assessment (RIA) by
16 public agencies
294 licences
automated into
BLESS
(re-engineered from
897)
RM9.34 billion
savings from value
management
conducted on
214 projects
10,369 (77%) services

provided online out of
13,483 total government
services
RM195 million
savings from 38,051
posts abolished
RM1,000
incorporation fee for
SMEs (reduced from
RM3,000)
708 e-payment
services by 339
agencies from 7,122
online services
66 agencies became
matrix-based
organisations from
delayering and
restructuring exercises
448 business
licences at federal
level (revised and
reduced from 717)
15 procedures over 130

days for construction
permit approvals (from
37 procedures over 140
days)
98% of government
websites rated 3-stars
and above in 2014 (from
82% in 2011)
613,743 public
servants benefited
from improved career
advancement in
81 schemes
449 business
licences at local
level (revised and
reduced from 1,455)
12 clusters of services
offered in 8 UTCs and 1
mini UTC with 7.6 million
customers served in
2014
1MOCC established
as a single point contact
centre for public
enquiries, complaints,
suggestions and
feedback
SPP II restructured to
measure performance
by KRAs, Outcomes
and National KPIs from
2011
Source: Malaysian Administrative Modernisation and Management Planning Unit (MAMPU), Public Service Department (PSD), Economic Planning Unit (EPU), Ministry of Finance (MoF), Malaysia
Productivity Corporation (MPC)
9-7
Box 9-1
1Malaysia One Call Centre (1MOCC)

1Malaysia One Call Centre (1MOCC) was launched in 2012 as a
single point of contact to respond to any public enquiry, complaint,
suggestion or feedback. Key features and achievements of 1MOCC
include:
+60 3 8000 8000 as a unique single contact number to connect
to all government agencies;
Multi-channel options to get in touch via phone call, short
messaging system (SMS), email, or social media;
24/7 operation including Saturdays, Sundays and public
holidays;
No wrong door policy and one-stop service centre philosophy;
3.1 million transactions handled from November 2012 to April
2015 of which 98.1% were voice calls;
Transaction categories comprised 51.4% directory assistance,
47.9% government service enquiries, 0.02% complaints and
0.19% feedback or suggestions; and
All calls answered, are in less than 20 seconds.
1MOCC provides a seamless approach to customer service, offers
low call rates for the public, and enables cost savings through
a centralised, efficient and accurate communication system.
It has resulted in optimisation of resources and more effective
collaboration between ministries and agencies in providing services
to the public. 1MOCC received the 2013 Service Innovation Award
by FutureGov Asia Pacific, and the 2014 Best Government Centre
Award by Avaya Malaysia.
While the Tenth Plan laid the foundation for a whole-ofgovernment approach, there are significant opportunities
for improvement in public service delivery. Transparency
and efficiency of public service delivery can be enhanced
through more effective engagements with citizens to
understand their preferences and needs, as well as through
better coordination or data sharing among and within
agencies. There is also room for improvement in public
perception and public awareness of available services and
delivery channels. The public service is still largely multilayered, with instances of overlapping roles and functions
of agencies. Talent management in the public service can
be enhanced with more flexible working arrangements, a
performance-based reward system as well as more relevant
and outcome-focused training opportunities. Project
implementation by the public sector can also be improved
with greater engagement with relevant stakeholders,
stronger monitoring, as well as enhanced planning and
execution capabilities.

9-8
Box 9-2
The Government Transformation Programme (GTP)

The GTP was conceived and launched in 2010 to deliver big fast
results on a nationwide basis for all Malaysians. The programme
was aimed at improving the delivery of public services focusing on
priorities that matter most to the rakyat, such as improving living
standards, elevating lives in rural areas through the provision of
basic infrastructure and economic opportunities, assuring quality
education for children, improving accessibility and connectivity of
urban public transport infrastructure, creating a safe environment
for all, promoting integrity and ethical practices, as well as
establishing greater accountability and transparency in Government
institutions.
The GTP introduced a new framework across ministries for
managing performance and delivery of public services. It comprises
the establishment of clear quantifiable KPIs, disciplined execution
according to detailed implementation plans, regular performance
reviews of Ministers, as well as corresponding rewards,
consequences, and actions. Under the GTP, Cabinet Ministers
are assigned Key Performance Indicators (KPIs) against National
Key Result Areas (NKRAs) as well as Ministerial Key Result Areas
(MKRAs). These KPIs are also cascaded throughout the relevant
ministries. The Performance Management and Delivery Unit
(PEMANDU) within the Prime Ministers Department oversees and
supports the delivery of these KPIs and outcomes.
A key feature of the GTP is the high degree of precision and

accountability in implementation. Every implementation stage,
initiative, and action plan as well as individual initiative owners
or locations can be identified, tracked and monitored. The GTP
involved extensive collaboration across ministries, including crossagency teams of public servants to develop, detail, and deliver
solutions to the rakyat. The GTP also involved extensive public
engagement by ministries and the public service to gather input
and feedback. Regular Delivery Task Force (DTF) meetings for each
NKRA are convened regularly with relevant ministers and senior
public servants to approve plans, monitor progress, and refine
implementation strategies as required. The GTP Annual Report is
published and serves as a measure of achievements against targets
set and promises made to the rakyat. Each year, implementing
agencies and ministries report on what has been accomplished,
along with a transparent account on the challenges faced in
meeting these targets.
New ideas, visible improvements and tangible benefits have been
delivered to the rakyat under the GTP, and these have emerged from
the collective efforts, dedication, and creativity of the public service
and implementing agencies. Significant progress has been made
across all NKRAs during the Tenth Plan period, and in some areas
tremendous transformational change has been delivered, such as
the elimination of extreme poverty and reduction of the poverty rate
to 0.6% under the low-income households NKRA.
National Key Result Areas (NKRAs) under the GTP
Addressing
the rising
cost of living
Improving
rural
development
Improving
urban
public
transport
Raising living
standards of
low-income
households
Assuring
quality
education
Reducing
crime
Fighting
corruption
Public service
delivery
transformation

Enhancing project
management
for better and
faster outcomes
Capitalising on
local authorities
for quality services
at the local level
Strengthening project planning

Enhancing implementation efficiency
Improving monitoring and evaluation
focused on outcomes
Strengthening
talent management
for the public
service of the future
Appointment on a
contractual basis to
secure top talent
Providing flexible work
arrangements to maximise productivity
Empowering and improving

accountability of local
authorities
Strengthening service
delivery by local authorities
Empowering Ministries
to customise talent
management
Strengthening collaboration
for stimulating local
economic development
Upgrading public sector

training to improve
relevance and impact
Intensifying public engagement and data sharing by

local authorities
Enhancing service delivery

with citizens at the centre
Reducing public service bureaucracy
and non-core services
Rationalising public
sector institutions
for greater
productivity
and performance
Realigning public sector

institutions and reducing
overlapping roles
Rightsizing the public service
for better productivity and
capabilities
Introducing exit policy for
underperformers
Improving delivery process to increase

responsiveness
Leveraging data to enhance outcomes
and lower costs
Expanding outreach of services with
greater public engagement
Increasing accountability with greater
focus on transparency and outcomes
SELECTED OUTCOMES
Top 10 in the Government

Efficiency sub-index of the
World Competitiveness
Yearbook
Top 15 in the Online

Service sub-index of
the UN e-Government
Development Index
TOP
TOP
10
15
Rationalising public sector

institutions for greater
productivity and performance
Top 30 in the
Corruption Perception
Index by Transparency
International
TOP
30
Enhancing service
delivery with citizens
at the centre
Embedding
community
expectations into
local authority KPIs
KPI
Capitalising on local
authorities for quality
services at the local level
Enhancing project
management
for better and
faster outcomes
Strengthening
talent management
for the public
service of the future
PSC
Conducting a
comprehensive
audit across
institutions and
agencies
Establishing a
public sector
comparator
(PSC)
Establishing cloud
computing for
consolidation and
data sharing
U-Customs
providing a
national single
window for trade
facilitation
Providing flexible
working arrangement
schemes
9-11
Moving forward
In the Eleventh Plan,

the Government will
become more citizencentric and focus on
enhancing productivity
and efficiency of the
public service.
The public sector will introduce several creative

and innovative approaches to enhance the
quality of its delivery system. The focus will be
on creating a more citizen-centric government
to enhance the efficiency and productivity of the
public service. In the pursuit of citizen-centricity,
the Government will continue to benchmark its
performance internationally. Major targets for the
Eleventh Plan period include moving into the top
10 in the Government Efficiency sub-index of the
WCY Index, moving into the top 15 in the Online
Service sub-index of the UN e-Government
Development Index, and moving into the top 30 in
the Corruption Perception Index.
of services. Rigid public sector working

environments will change to accommodate more
flexible arrangements, with a stronger focus on
talent management and capability building. The
Government will shift away from the traditional
approach of agency-based service delivery
towards a whole-of-government approach based
on services and information that adopts the
perspective of the rakyat and puts them at the
centre.
In order to achieve these targets, the Government

will introduce several transformative changes
as shown in Exhibit 9-2. The focus will shift
towards more participatory governance by
citizens, including better understanding citizen
preferences and engaging them as partners
in service design and delivery. Bureaucratic
procedures that hamper the facilitation of service
delivery will be simplified, data fully leveraged,
redundancies reduced, and accountability
increased. The Government will move beyond
primarily playing the role of a service provider,
to enhancing its role as a service facilitator. It
will also expand partnerships with the private
sector and community to improve the delivery
Focus area A: Enhancing service delivery with

citizens at the centre;
Towards this end, there will be five focus areas to

transform public services for greater efficiency
and productivity under the Eleventh Plan:
Focus area B: Rationalising public sector

institutions for greater productivity and
performance;
Focus area C: Strengthening talent
management for the public service of the
future;
Focus area D: Enhancing project management
for better and faster outcomes; and
Focus area E: Capitalising on local authorities
for quality services at the local level.

Exhibit 9-2
9-12
Chart 9-2
Transformative changes in the public sector
Transformative changes in the public sector
FROM
Hierarchical
Traditional Performance Evaluation

Manpower Constraints Internal Reporting
Overlaps and Duplication
Bureaucratic Procedures
Government as
Service Provider
Governing for Citizens
Agency-Based Approach
RIGID Working Environment
Supply-Driven Delivery
Traditional Centralised Processes
Delivery by Public Sector Agencies
Service Design by Government
TO
Delayered
Customised Performance Evaluation

Increased Public Accountability
Focus on Capability Building
Less Redundancies
Simplified Procedures
Government as
Service Facilitator
Participatory Governance
Service and Information-Based Approach

FLEXIBLE Working Environment
Customised Service Delivery
Citizens at the Centre
Community and Private Sector Partnerships
Rakyat as Partners in Service Design
9-13
Focus area A
Enhancing service delivery with citizens at the centre
Strategy A4: Expanding outreach of services with greater

The objective of the Government in enhancing service delivery is to
public engagement. This will involve measures to increase and
achieve seamless delivery of services, increased customer satisfaction,
encourage the use of online services and Urban, Rural, and Mobile
increased efficiency and reduced cost. In this context, the role of the
Community Transformation Centres, as well as to enhance citizen
Malaysian Administrative Modernisation and Management Planning
engagement in co-creating service solutions; and
Unit (MAMPU) will be strengthened to spearhead the implementation
of initiatives to enhance service delivery. MAMPU will ensure effective
Strategy A5: Increasing accountability with greater focus
and efficient delivery of services through the adoption of recognised
on transparency and outcomes. Continuous efforts will be
service delivery standards. The compliance to these standards will be
undertaken to uphold integrity, eradicate corruption, implement
monitored by accredited officers of respective agencies through a selfoutcome-based budgeting (OBB), and instil noble values among
evaluation process. In addition, MAMPU will be the strategic advisor
public servants.
for the modernisation of government service delivery. The following
strategies have been identified to enhance service delivery:
Strategy A1: Reducing public service bureaucracy and noncore services. This will enhance customer satisfaction, reduce
costs, create more opportunities for the private sector, and result in
a leaner and more efficient government;
Strategy A1
Strategy A2: Improving delivery process to increase

responsiveness. Key initiatives include improving work processes
in the frontline, enhancing trade facilitation mechanisms, adopting
green practices, and introducing alternative service delivery
mechanisms;
Eliminating unnecessary bureaucratic processes
Strategy A3: Leveraging data to enhance outcomes and lower

costs. This will require proliferating open data among agencies,
encouraging cross-agency data sharing, and leveraging big data
analytics (BDA);
Reducing public service bureaucracy

and non-core services
Work processes and procedures will be reviewed to identify and
eliminate unnecessary bureaucratic processes such as approvals for
licences and permits as well as rules and regulations, which are not in
line with current needs. This will increase the efficiency of application
and approval processes, enhance customer satisfaction, and reduce
cost to both the Government and citizens.
Reducing government role in non-core services

In an effort to focus on the role of government as facilitator, its role in
non-core services will be reduced. The Government will systematically
reduce ownership and control of selected non-core services through
privatisation and outsourcing. Possible services include operational
matters such as processing of payroll, call centres, and asset
management. This will improve service quality, allow greater flexibility
and reduce costs of implementation, resulting in a leaner government
while creating opportunities for businesses.

Strategy A2
9-14
Strategy A3
Improving delivery process to increase Leveraging data to enhance outcomes

responsiveness
and lower costs
Improving work processes in the frontline
Proliferating open data among agencies
Work processes and procedures in frontline agencies including local

authorities will be reviewed to shorten the time taken for service
delivery. This will include the integration of services at the front-end of
delivery and consolidation of inter-agency back-end processes.
An open environment will allow data to be used for effective analysis as

well as interactive feedback between the government and the public.
In this regard, MAMPU will spearhead the National Open Data initiative
in collaboration with the Multimedia Development Corporation (MDeC)
to enable the innovative use of government data. Under this initiative,
actions that will be undertaken are as follows:
Enhancing trade facilitation mechanisms

The commitment to provide a National Single Window (NSW) for trade
facilitation will be realised with the implementation of a ubiquitous
customs system, u-Customs. The system will increase the efficiency
of customs services and trade facilitation, namely self-declaration, risk
assessment, duty payment, and physical release through an online
single gateway. This will promote integrated sectoral governance,
paperless trading and collaboration among the Royal Malaysian
Customs Department, permit issuing agencies, other government
agencies and traders. The implementation of u-Customs will also meet
the commitment set under the Association of Southeast Asian Nations
(ASEAN) Single Window initiative, which will connect and integrate
NSWs of ASEAN members.
Adopting green practices to encourage green growth

The Government will play a catalytic role to bring transformative
changes to spur green growth through the implementation of green
procurement. At the same time, efforts will be undertaken to reinforce
the enabling environment for green growth by enhancing policy,
regulatory, and institutional frameworks; creating sustainable green
financing mechanisms; increasing capacity, capability, and skills;
improving monitoring and evaluation mechanisms; and enhancing public
awareness.
Introducing alternative service delivery mechanism

The Government will leverage the capacity and geographical presence of
NGOs and other community-based organisations (CBOs) as an alternative
service delivery (ASD) mechanism to deliver selected services. ASD will
be formalised starting with the delivery of welfare services such as elderly
care, disaster aid, and drug addict rehabilitation by NGOs.
Review legislation and guidelines that hinder implementation of

open data;
Establish an open data framework for the public sector across
federal, state, and local authorities;
Develop an open data implementation roadmap as a guideline to
agencies; and
Implement a communication plan to increase awareness among
agencies and the public.
Encouraging cross-agency data sharing

Following the successful implementation of infrastructure sharing
through 1Gov*Net in the Tenth Plan, the Government will focus on the
implementation of data sharing. A cloud-based service will be set up
to host public sector data and online applications in the Government
Data Centre (GDC). As a single platform, this service can be leveraged
to enable data and application sharing with adequate access controls.
The GDC will merge Federal agency data centres across states into six
different zones covering four in Peninsula and one each in Sabah and
Sarawak. The 1Gov*Net will be expanded to consolidate all Federal
agency network infrastructure to further facilitate data sharing across
agencies. In addition, state and local authorities will be encouraged
to set up a similar network to facilitate data sharing across all levels of
government.
9-15
Leveraging big data analytics

Box 9-3
Public sector cloud computing

infrastructure
The public sector cloud computing
infrastructure is a dedicated cloud to host
government applications and data. This
involves deploying groups of remote servers
and software networks that allow centralised
data storage and online access to computer
services or resources. The cloud will be a
one-stop centre for public sector agencies to
have access to various cloud services namely,
Software as a Service, Platform as a Service,
and Infrastructure as a Service. Among the
advantages of cloud implementation are:
MAMPU will spearhead the initiative to leverage BDA in collaboration with MDeC.
The BDA Blueprint for the public sector will be formulated, which will encompass
governance mechanisms, communication plan and capability building. The
implementation of BDA will utilise existing government infrastructure such as
1Gov*Net and GDC. The usage of BDA will facilitate decision-making based on
comprehensive data made available from within and outside of the agency.
Strategy A4
Expanding outreach of services with greater

public engagement
Increasing usage of online services
The Government will continue to expand and strengthen its online service
offerings for greater accessibility and convenience for the rakyat. Measures that
will be undertaken to increase and encourage the use of online services are:
Cost reduction resources such as

software, storage and processing power
are pooled and shared to serve multiple
agencies;
Deploying multiple channels of delivery focusing on mobile platforms;
Strengthened security incorporate data

security with adequate access controls to
manage usage of sensitive data;
Shifting from agency-based to service- and information-based approach.
Universal access cloud mobility enabling

access from any place at any time;
Faster deployment enable agencies
to run their applications faster as a result
of improved manageability and lower
maintenance requirements; and
Ease of collaboration allow real time
collaboration where documents are stored
in a central location and can be accessed by
multiple users.
Strengthening cyber security protection in critical online transactions;

Offering more services via the single sign-on; and
Maximising the usage of Urban Transformation Centres, Rural

Transformation Centres and Mobile Community Transformation
Centres
Urban Transformation Centres (UTCs) and Rural Transformation Centres (RTCs)
will be utilised optimally, among others, to conduct training for entrepreneurs
and implement micro-sourcing programmes for the community. Services from
Mobile Community Transformation Centres (Mobile CTCs) will be expanded
and strengthened by consolidating different services into one facility. This will
allow frontline government services, which include MyKad registration, driving
licence renewal, and business advisory services, to be made available to the
underserved. A study will be conducted to evaluate the impact of the UTCs, RTCs
and Mobile CTCs to the community.

Enhancing citizen engagement in identification of

issues and creative solutions
9-16
Expanding the sharing of resources

The revised standard guidelines for office space will be implemented
to optimise space management. In addition, sharing among agencies
in common locations in terms of asset deployment including office
inventory, facilities and vehicles will be further intensified. Guidelines for
the sharing of resources will be developed by the Ministry of Finance.
A community engagement framework will be established to enable

the co-creation of public sector solutions where frontline agencies
gather feedback through crowdsourcing platforms. This is similar to
the Guideline on Public Consultation Procedures introduced by the
Government in October 2014 as a reference for ministries and agencies.
Implementing outcome-based budgeting
The framework will provide opportunities, including online, for the
Outcome-based budgeting (OBB), which integrates both development
public to contribute to the process of identifying issues and creative
and operating budgets, will be implemented to ensure Government
solutions to improve services.
expenditure is aligned with national priorities and benefits the
target groups. Performance of programmes at the national and
ministry levels will be measured based on quantity, quality, cost and
timeliness. Ministries will be held accountable for the performance of
Strategy A5
programme outcomes, which will form part of their key performance
indicators (KPIs). Capacity building will be enhanced for the effective
implementation the OBB.
Increasing accountability with greater

focus on transparency and outcomes
Upholding integrity at all levels

Continuous efforts to uphold integrity and eradicate corruption will be
undertaken. These efforts will enhance public perception with respect
to the integrity of the public sector as well as improve Malaysias
position in international rankings. Among the efforts are:
Publishing government procurements through MyProcurement
portal to enhance transparency;
Reviewing the effectiveness of public commissions;
Reviewing the Malaysian Anti-Corruption Commission Act to
further boost efforts to eradicate corruption;
Instilling noble values among public servants

With the demand for greater transparency and effectiveness in the
delivery of public sector programmes, the public service will intensify
efforts to instil noble values among public servants. This will be
championed by the Public Service Department (PSD) and supported
by all ministries and agencies. The public sector will continue to
adopt positive values and attitudes including patriotism, impartiality,
discipline, dedication, diligence, prudence, trustworthiness, civicconsciousness, and tolerance. These positive values and attitudes will
complement the overall efforts towards enhancing the image of and
trust in the public service.
Ensuring the participation of Certified Integrity Officers (CeIO)

throughout the whole process of project implementation;
Focusing on further implementation of the Corporate Integrity
Pledge (CIP) with the private sector in executing corruption
prevention initiatives; and
Forming strategic partnerships with NGOs, political associations
and CBOs for collective engagement on initiatives undertaken and
act as agents of change.
2
3
Co-creation means working with end users of products and services to produce a mutually valued outcome.
Crowdsourcing is the process of obtaining needed services, ideas, or content by soliciting contributions from the public, especially from the online community, rather than from employees or stakeholders.
9-17
Focus area B
Rationalising public sector institutions for greater

productivity and performance
The Eleventh Plan will prioritise on optimising the Governments
structure, scale, and operating model to enhance the focus, flexibility,
and ultimately the performance of public sector institutions. Efforts
to transform the public service will be continued through the
rationalisation of government institutions. This will be implemented
through the following strategies:
Strategy B1
Realigning public sector institutions

and reducing overlapping roles
Public sector institutions will be rationalised in line with changes in

the structure of the economy and national demographics. Resources
Strategy B1: Realigning public sector institutions and reducing including manpower and funding will be streamlined along these
overlapping roles to streamline functions, manpower and funding priorities. Overlapping roles and responsibilities among ministries,
to better align with changes in the economic structure;
agencies, and commissions will also be rationalised to improve
efficiency and productivity of the public sector. This includes reviewing
Strategy B2: Rightsizing the public service for better
the roles of attachs, diplomats, and delegations that represent
productivity and capabilities through restructuring and
different ministries at the Malaysian embassies and high commissions.
delayering, multi-skilling in the public service, extending selfExisting institutions will be strengthened to address functional gaps
regulation, as well as introducing new practices and productivitywithout creating new agencies. These initiatives will ultimately result
based KPIs; and
in a public sector that is more agile and lean. In this regard, a special
Strategy B3: Introducing exit policy for underperformers to
task force led by the Chief Secretary to the Government will be set up
create greater accountability and improve overall performance
to conduct a comprehensive audit and review across public sector
within the public service.
institutions and agencies.

Strategy B2
Rightsizing the public service for better

productivity and capabilities
Restructuring of the public service
The public service will be restructured with a focus on better
capabilities and greater productivity. Efforts will be undertaken to
reduce the hierarchical layers in the managerial and professional group
while increasing the proportion of middle management to facilitate
matrix-based tasks. At the same time, frontline agencies will be
empowered through greater authority.
Implementing multi-skilling in the public service

The Government will undertake and intensify the upskilling and
reskilling of the support group in the public service to become multiskilled. This will enhance career development opportunities by
enabling the support group to move up to managerial and professional
positions or undertake multi-tasking functions.
Extending self-regulation in specific areas

The Eleventh Plan focuses on the role of the Government as a facilitator
and catalyst for development. In line with this, the Government will
progressively move towards self-regulation or co-regulation where it
is suitable, such as in telecommunications, education, and consumerrelated areas. This will result in an increase in productivity, better
outcomes for the rakyat, and a reduction in the cost of administration.
9-18
Integrating productivity improvements into public

service
The Eleventh Plan emphasises efficiency and productivity
improvements in both the public and private sectors. Similar to the
private sector, public sector institutions will leverage guidelines
and practices from the Malaysia Productivity Corporation (MPC)
on productivity enhancements, and yardsticks for productivity
measurement will be embedded into the KPIs of ministries and
agencies.
Strategy B3
Introducing exit policy for

underperformers
In line with the objective of achieving a high performing and dynamic
public sector that will support the national agenda, an exit policy for
underperformers will be introduced. Public servants, who do not meet
stipulated performance criteria will undergo improvement programmes
and will be given a specific time period to improve their performance,
failing which, their service will be terminated. Measures will be put in
place to ensure fair implementation of this policy.
9-19
Focus area C
Strengthening talent management for the public service of

the future
Talent within the public sector are the most significant resource for the
public service. The public sector will strengthen its talent management,
capabilities, and leadership to enable quality improvement in service
delivery. Strategies to strengthen talent management in the public
sector will include:
Strategy C1: Appointment on a contractual basis to secure top
talent in critical fields with flexible pay structures and outcomebased KPIs;
Strategy C2: Providing flexible work arrangements to
maximise productivity, as well as retain talent, and provide worklife balance;
Strategy C3: Empowering ministries to customise talent
management through a bottom-up approach in talent
development and performance evaluation; and
Strategy C4: Upgrading public sector training to improve
relevance and impact with a focus on leadership skills and
functional specialisation.
Strategy C1
Appointment on a contractual basis

to secure top talent
Appointments to appropriate positions will be on a contractual basis
to attract and retain talent in specialised and critical fields. The
appointment will be based on a flexible pay structure tied to outcomebased KPIs. This will create a pool of talent in the public sector with
both private and public sector exposure for a more effective, innovative
and proactive public service.
Strategy C2
Providing flexible work arrangements

to maximise productivity
The Government will improve existing work arrangements for better
work-life balance by providing greater flexibility in the public service.
Measures that will be introduced are:
Flexible work arrangement schemes, which will allow working from
home, flexible working time and compressed working hours4 . The
implementation will be on a selective basis where tasks will be
accomplished based on defined deliverables within a fixed time
frame; and
Part-time worker scheme that will retain expertise and minimise new
recruitment. This scheme is intended for public service employees
who wish to work for shorter time periods and be paid proportionately.
Compressed working hours will allow public servants to work a 40-hour work week in less than five work days.

9-20
Strategy C3
Strategy C4
Empowering ministries to customise

talent management
Upgrading public sector training to

improve relevance and impact
Enhancing talent development programmes
Enhancing leadership development in the public sector

to focus on impact
A bottom-up approach will be institutionalised to reduce centralised

management of talent development programmes. Ministries and
agencies will be empowered to plan and determine talent development
programmes based on needs and priorities. The PSD will provide
guidelines to ensure alignment of these programmes with national
priorities.
Customising performance evaluation
The capacity and capabilities of the National Institute of Public

Administration (INTAN) and Razak School of Government (RSOG)
in developing public sector leaders will be enhanced. INTAN will
offer courses in areas related to public sector administration to build
relevant leadership skills and stronger functional capabilities to meet
the changing requirements of public service. In this respect, INTAN
will review the existing curriculum to improve training effectiveness for
better outcomes. INTAN and RSOG will strengthen collaboration to
complement each other in delivering public sector training.
Public sector institutions will be empowered to customise performance

evaluation based on the roles and functions of the agency, in addition
to the standard appraisal system. This will enable public service
employees to be evaluated based on their agencys roles and functions. Revising public sector training policies for greater
relevance
The current system will be improved to enable better rewards for high
performers through a decentralised performance-based incentive
Public sector training policies will be reviewed and revised to focus on
approach.
outcomes that will benefit both the individual and their organisation. In
this respect, more capability building will also be provided to encourage
multi-skilling, as well as more targeted training opportunities in new and
specialised fields relevant for the new economy, such as data science,
forensic economics and accounting, green auditing, and intellectual
property evaluation.
Streamlining public sector training for greater

specialisation
There are currently about 100 public training institutes for the public
service operated by different ministries and agencies. The role of
public sector training institutes will be streamlined to focus on areas of
specialisation and to better support relevant functional roles.
9-21
Focus area D
Enhancing project management for better and faster

outcomes
The development and institutionalising of best-in-class project
execution capabilities within the Government is at the heart of public
service transformation for greater productivity and efficiency. The
Eleventh Plan will place emphasis on efficient and effective project
management and implementation to ensure the completion of projects
within the stipulated time, quality and cost requirements. This will
require that projects implemented adhere to three principles: high
impact to the rakyat, low cost to the Government, and rapid execution.
Improvements in project management and implementation will be
undertaken at all stages of planning, implementation, monitoring, and
evaluation. The following strategies will help achieve these objectives:
stakeholders to ensure wider support and buy-in for projects. To

expedite implementation of projects, the requirements and priorities of
stakeholders will be included in the design and planning of projects.
Enhancing resource allocation

The rolling plan approach, which was introduced in the previous Plan
will be enhanced through the introduction of a shadow ceiling. The
shadow ceiling is the total expected expenditure for the implementation
of projects for each ministry in each rolling plan. This will enable the
Government to make commitments within its financial capacity and
allow for greater flexibility in the prioritisation of projects in response to
changes in policy directions.
Strategy D1: Strengthening project planning at all levels and

stages, including stakeholder engagement, resource allocation and Enhancing project selection
The introduction of the Logical Framework Approach (LFA) and
project selection;
value management (VM) for projects in the previous Plan, improved
Strategy D2: Enhancing implementation efficiency through preproject selection and ensured value for money through optimal
approved plans (PAP) for construction, competent contractors and
project design. During the Eleventh Plan, the Creativity Index (CI)
consultants, as well as effective project management; and
will be introduced to assist ministries and agencies to assess the
Strategy D3: Improving monitoring and evaluation focused on potential impact and prioritise proposed projects. The CI is a ratio of
outcomes through cascading an outcome-based approach (OBA) project impact over both developmental and operational costs for a
in results monitoring and resource allocation.
specific period. The project impact comprising economic and social,
including environmental benefits, will be calculated in monetary terms.
These benefits will comprise value delivered to direct and indirect
beneficiaries. In addition, steps will be undertaken to establish a public
Strategy D1
sector comparator (PSC) as part of the project evaluation and selection
process. The PSC aims to provide a reference point for comparing the
cost of public sector projects with private sector projects of similar
Enhancing stakeholder engagement
designs and functions to ensure value for money.
Stakeholder engagement is crucial for the successful implementation
of projects and will be made a prerequisite for project approval.
The Project Brief in the Project Monitoring System (SPPII) will be
Ministries and agencies will widen engagement with relevant
enhanced to include comprehensive data for effective project analysis,
Strengthening project planning

selection, planning, and design. With this comprehensive data, the VM

process can be conducted in the same year the project approval is
given, in order to expedite project implementation.
Strategy D2
Enhancing implementation efficiency

Increasing the use of pre-approved plans for
construction of government buildings
The PAP, which consist of a complete set of architectural, structural,
mechanical, and electrical design drawings, but without the site-related
design components like earthworks and foundations, will be used to
expedite the construction of Government buildings and facilities such
as schools, health clinics, fire stations, police stations, government
offices, and quarters. The Public Works Department will design the PAP
with elements of green design to ensure efficient energy use. Ministries
and agencies implementing building projects will only need to select
the available PAP designs that best suit their project requirements.
As more options are included in the list of PAP designs, the need for
customised building designs will be reduced. The use of PAP will also
reduce the time taken for the planning and design process from 15 to 9
months, thus expediting overall project implementation.
Ensuring appointment of competent contractors and

consultants
The Government will encourage contractors undertaking projects
to undergo the Construction Industry Development Boards training
and development programmes to enhance their competency and
capability. In addition, a rating programme to assess the competency
and capacity of contractors implementing Government projects will be
introduced. Contractors with good ratings will be given additional merit
in the evaluation for selection of contractors to implement Government
projects. The emphasis is on ensuring only capable and competent
contractors and consultants will be appointed. These efforts will
improve project completion within time, quality and cost requirements.
9-22
Improving project management for public infrastructure

and services
Project management will be improved by:
Reviewing work processes and systems as well as upgrading
technical skills and competencies of personnel in technical
agencies to enhance their roles in the management and
implementation of government projects;
Establishing dedicated project teams in ministries and agencies to
enhance supervision and monitoring of projects to ensure timely
completion;
Enhancing the capabilities of the policy planning and development
divisions in ministries and agencies to ensure cost effective and
timely implementation of projects;
Creating a pool of project management personnel through the
Certificate in Integrated Public Project Management training
programme conducted by INTAN;
Strengthening the centralised coordination and implementation
of programmes and projects to ensure that citizens benefit from
implementation outputs and outcomes; and
Sharing of resources between ministries and agencies to reduce
project cost.
Strategy D3
Improving monitoring and evaluation

focused on outcomes
The monitoring and evaluation process will be strengthened through
the OBA. This approach emphasises the achievement of outcomes or
results rather than outputs, and will be continued and enhanced. The
OBA allows for more effective resource management and greater valuefor-money from public investment. The National Results Framework
encompassing strategies, performance indicators, and targets will
be cascaded to ministries and agencies to ensure every ministry and
agency is aligned to deliver national outcomes.
9-23
Focus area E
Capitalising on local authorities for quality services at the

local level
The Eleventh Plan aims to improve the delivery of services at the local
level by building the capacity and capabilities of the local authorities.
The efficiency of service delivery by local authorities will be improved
through the following strategies:
Strategy E1
Strategy E1: Empowering and improving accountability of

local authorities through better assessment of their capabilities
and expectations of the local communities;
Strengthening enforcement at the local level
Strategy E2: Strengthening service delivery by local

authorities through greater collaboration with federal and state
governments, and streamlining of rules and processes that can
enhance local authority responsiveness;
Strategy E3: Strengthening collaboration for stimulating
local economic development by engaging the private sector and
improving infrastructure and the business environment; and
Strategy E4: Intensifying public engagement and data sharing
by local authorities, leveraging new technologies for greater
feedback and dissemination of information.
Empowering and improving

accountability of local authorities
Enforcement will be strengthened through greater collaboration with
relevant agencies such as the police, immigration and district offices to
ensure compliance to regulations. Efficiency of revenue collection by
local authorities will also be enhanced. In addition, by-laws, guidelines,
and standard operating procedures will be reviewed to streamline
enforcement activities.
Expanding outreach to better understand community

expectations
An independent survey will be conducted by the Local Government
Department (JKT) to understand community expectations, which will
be translated into KPIs to measure the performance of local authorities.
In addition, various communication channels will be deployed to
inform the community of the KPIs to enable better understanding and
encourage their active participation.
Empowering local authorities based on readiness

levels
Local authorities will be ranked according to their capability and
capacity in delivering services. This will allow an objective assessment
of their readiness to implement functions that can be devolved from
federal and state governments.

Strategy E2
9-24
Strategy E3
Strengthening service delivery by local Strengthening collaboration

authorities
for stimulating local economic
Ensuring alignment of national development projects
development
with local interests
Collaboration between local authorities, federal and state

governments, and the private sector will be strengthened to ensure
that public sector development projects are in accordance with the
requirements of the local community and national interests. Focus will
be given to ensure an attractive and vibrant living environment, efficient
public transport, quality and affordable housing, as well as efficient
public utility services.
Improving accessibility and responsiveness of local

authority services
Efforts will be continued to enhance the delivery of local authority
services through improvement in work systems and processes.
Complex and ineffective regulations will be simplified and streamlined
while unnecessary procedures will be eliminated. This will improve the
efficiency of local authority services by reducing response time and
increasing public satisfaction. Accessibility to local authority services
will be widened through digital channels including websites and
mobile-based services.
Facilitating private sector participation and investment

in the local economy
Local authorities and the private sector will collaborate closely together
to develop potential economic activities. In this regard, local authorities
will continue to improve infrastructure and utilities as well as other
support services. This will facilitate investment and increase private
sector participation in the development of the local authority areas.
Developing a conducive environment for local

businesses
Local authorities will develop the local economy, by providing a
conducive environment including better infrastructure and commercial
facilities. In this regard, local authorities will relocate and reorganise
informal businesses 5 into designated areas that are clean, accessible,
and customer-friendly. The local authorities will take into account
the requirements and financial capabilities of the business owners to
facilitate the uptake of the relocation programmes.
National Urbanisation Policy definition: Informal businesses are small businesses being implemented as five-footway stalls or night markets. It also refers to the manufacturing sector or small scale
productions that do not involve the use of permanent or planned buildings.
9-25
Strategy E4
Intensifying public engagement and

data sharing by local authorities
Widening engagement with community and nongovernmental organisations
Enhancing compliance to Environmental Impact

Assessment and Social Impact Assessment
Local authorities will ensure stricter compliance to the requirements
of the Environmental Impact Assessment (EIA) and Social Impact
Assessment (SIA) for relevant projects. SIA will be undertaken through
greater engagement with relevant NGOs and the public. In addition,
local authorities will disseminate information with regard to conditions
for development. Enforcement will be undertaken to ensure compliance
to EIA and SIA requirements during project implementation.
Engagement with the community and NGOs will be widened to gain

feedback on existing and proposed services by local authorities.
Conventional and digital platforms will be utilised to provide multiple
Improving data collection and sharing by local
channels for greater community engagement. This will enable local
authorities to better understand the needs and priorities of citizens, and authorities
design services accordingly. The Residents Representative Committee The JKT will introduce a system to enable local authorities to collect
data that is required for planning and decision-making. This will include
will assist the local authorities in dealing with wellbeing issues.
data on roads, drains, public amenities, education and health facilities,
housing, as well as business premises. In addition, socio-economic
data such as local demographics, health profile, and local economic
activities will also be collected. The data will be made available to the
public in accordance with current legislation.

Conclusion
The Government needs to deliver against rising public
expectations and respond to population dynamics and
technology trends. In the Eleventh Plan, the government will become
more citizen-centric and focus on enhancing productivity of the
public service through a whole-of-government approach supported
by a lean and agile structure, competent talent, effective delivery of
projects, and efficient services of the local authority. The emphasis will
be on enhancing the role of the Government as a facilitator and catalyst
for development. Ministries and agencies will adapt to new models
of service delivery better suited to todays technologies, norms, and
expectations of the rakyat. Beyond strengthening traditional values
such as integrity, impartiality, and trustworthiness, the public service
will demonstrate that it can be flexible, innovative, and able to change
further and faster. Public service will be comprehensively transformed,
rigid structures and redundant processes will be removed; innovation
and openness will be encouraged; and responsiveness and pace of
delivery will be accelerated. The Eleventh Plan will help to ensure that
the public service is fit for purpose, fit for the rakyat, and fit for the
future. This will accelerate Malaysias transformation and transition to
an advanced economy and inclusive nation.
9-26
Malaysia
beyond 2020
Overview
Profile of Malaysia
post-2020
Aspirations for Malaysia
post-2020
People
Economy
Environment
Conclusion
10-1
Overview
A vision for Malaysia beyond 2020 is imperative to continue the momentum of
growth and ensure that onward path to development is unfettered. In charting
new frontiers of development, Malaysia must remain progressive and inclusive in
line with the aspirations of the rakyat. The Eleventh Malaysia Plan, 2016-2020, is
intended as a launchpad and foundation for the next stage of Malaysias journey.
The post-2020 era will present new opportunities and challenges for Malaysia.
Global demographics are shifting with rising life expectancy and dropping
fertility rates below replacement rates in developed countries. The scale and
pace of urbanisation and industrialisation, especially in emerging economies,
is unprecedented. Scarcity of resources such as water, energy, and land will
become more prevalent, posing greater challenges to development. The speed
and magnitude of advancements in science, technology, and innovation is
accelerating. This will create new jobs which require a combination of complex
technical, analytical, and interactive skills, while routine and manual tasks will

Chapter 10: Malaysia beyond 2020
increasingly be done by intelligent machines. The world is woven together in

a web of connectivity that was unimaginable a decade ago. Customers
and suppliers will come from non-traditional markets while a new breed of
competitors will emerge as technology removes many existing barriers to entry.
The economic power shift to Asia will lead to Asian countries assuming an
ever more important role in the world economy.
This chapter outlines national aspirations post-2020, which represent the
voices of the rakyat drawn from interviews, discussions, and a survey from various
groups of Malaysians, particularly from the young. There is one clear message
resonating from these voices Malaysia is to become a truly advanced nation
in economic, social, and environmental terms. The deliberation on national
aspirations has taken into consideration domestic and international trends on
economic and social development.
10-2
10-3
Profile of Malaysia post-2020
The population is estimated to reach

32.4 million in 2020 and 36 million by
2030. In terms of age demographics,
less than 23% of the population will
be 14 and below, 68% between 15
and 64, and about 9% aged 65 and
above in 2030.
Population
2020
32.4
million
2030
36
million
The urbanisation rate will reach 75% in 2020 and

is expected to increase to 80% by 2030. The main
conurbations of Greater Klang Valley, Georgetown, Johor
Bahru, Kuantan, Kuching, and Kota Kinabalu will continue
to be the nexus of economic and social activities, housing
major global companies and talent. The large middle-class
population in these areas will be a huge consumer market
for local and global products and services. Demand for
modern, integrated infrastructure, efficient urban services,
and green spaces will increase.
All levels of society will enjoy a

comfortable lifestyle with quality
healthcare; secure, safe, and green
environment; good housing and
modern amenities; recreation and
leisure. The gap between the top
20%, the middle 40%, and bottom
40% household income groups will
have narrowed considerably while
income distribution will improve, as
indicated by a lower Gini coefficient.
Urbanisation rate
Gini coefficient
75%
0.385
80

In terms of the economy, the size of the gross

domestic product (GDP) is expected to increase in
2030 to RM2.6 trillion from RM1.4 trillion in 2020. In
2030, the GDP per capita is projected to increase
more than double to RM117,260 compared
with RM54,890 in 2020. The economy will be
dominated by knowledge-intensive and high value
added activities, generating high-income jobs.
In 2030, more than 40% of total employment will
be comprised of skilled workers compared with
approximately 35% in 2020.
Gross domestic product (GDP)
1.4
trillion
RM
2.6
RM
trillion
World trade forecast from IHS Economics Quarterly (updated February 2015)
10-4
Malaysia will remain an open economy, regionally and globally integrated post-2020.
Global growth is expected to be driven by the emerging economies of Asia, while the
centre of trade will shift towards the East. As the Peoples Republic of China and India
prosper further, coupled with their large and growing affluent middle class, they will
become major markets for Malaysian goods and services. ASEAN is expected to be
the third pillar of Asia and the linchpin for Malaysian businesses to go global. Improved
connectivity with ASEAN members will boost investment, trade, and tourism as well
as cross-border movement of talent. In addition, rapid economic growth in ASEAN,
particularly Cambodia, Indonesia, and Vietnam, and countries in both North and
South Africa, will accelerate demand for infrastructure such as power plants, dams,
ports, airports, and roads, offering new opportunities for Malaysian businesses to
partake in infrastructure and new city development projects.
GDP per capita
54,890
RM
117,260
RM
World trade1
26
trillion
US$
44
US$
trillion
10-5
Aspirations for Malaysia post-2020

We stand,
we think, and we
act as Malaysians.
The views of Malaysians from diverse

groups and different segments of
society, predominantly the young, were
gathered through interviews, focus
groups, and an online survey. They
were asked to share their expectations
and aspirations for the nation post2020. Their input is summarised in
Exhibit 10-1.
Voices of the rakyat

The post-2020 aspirations outlined
in the following section reflect the
hopes and wishes of Malaysians,
clustered into three dimensions
people, economy, and environment.
These three dimensions are also
reflected in the six thrusts of the
Eleventh Plan, which focuses on
people via developing human capital,
inclusiveness, and wellbeing; on the
economy via re-engineering growth;
and on the environment via green
growth and sustainable development.
One nation, one people,

and one aspiration
We come from different
backgrounds and different
ethnicities, and speak
many languages. But we
speak with one voice that
of wanting a better future
for our next generation.
It is the voice of hope, of
solidarity. It is the voice that
says we are one.

Exhibit 10-1
The word cloud above represents the aspirations of the rakyat for Malaysia post-2020 against a backdrop of global trends
that will be shaping the future. The aspirations are grouped into 3 dimensions people, economy, and environment.
10-6
10-7
People
The future of Malaysia
depends on Malaysians
being united in diversity
and sharing a common
set of values and
aspirations. Malaysians
must have a diverse
range of relevant skills.
These will ensure that
the nation successfully
makes the next leap
towards becoming
truly advanced economically, socially,
and environmentally.
VALUE SYSTEM
Unshakeable
national identity
Clear moral
compass
Family-centred
support systems
There is a greater sense of what

being a Malaysian truly is. We
are optimistic and resilient in the
face of challenges. We stand, we
think, and we act as Malaysians.
We are moderate, balanced,
and just in our interactions,
fully embracing the wasatiyyah
concept.
Diverse religious and spiritual

values continue to be respected
and accepted as part and parcel
of a caring society. Malaysians
are imbued with strong moral
values, unquestionable ethics,
and ingrained with honesty,
integrity, and compassion.
Strong family units are the

bedrock of our natural support
system, providing care,
inculcating moral values, and
contributing to a stronger nation.
An inspiring
role for seniors
A culture of
compassion
Senior Malaysians are actively

involved in nurturing younger
Malaysians and ensuring that
the connection with our nations
rich history is not lost. Seniors
are appreciated, respected, and
protected. There is a conducive
environment for them to lead an
independent, productive, and
fulfilling life.
Our compassionate
nature is reflected in how
Malaysian society provides
opportunities and cares for the
underprivileged, the vulnerable,
the disabled, and those with
special needs.
Box 10-1
Wasatiyyah
In the context of national
development, social
cohesion, and national unity,
the wasatiyyah concept
emphasises moderation,
balance, justice, and
excellence in all spheres of
life for the individual and the
community with the aim of
developing a harmonious
Malaysian society.
Source: Malaysian Institute of
Wasatiyyah, 2015

10-8
LIVEABILITY
Elevated state of
wellbeing
Universal healthcare
and healthy living
Caring for our

children
Malaysians enjoy a high standard of wellbeing.

We are highly satisfied with our lives and
confident in our ability to shape our own
future. This state of wellbeing is a result of a
combination of factors including high-income,
meaningful work, a high regard for personal
rights, a safe and peaceful environment, strong
family and community networks, and physical
and mental health.
All Malaysians have access to quality

healthcare while state-of-the art diagnostics
equipment complement healthcare services.
Personalised healthcare with virtual monitoring
and digitised records will be the norm.
Malaysians produce and consume healthy
food. We care for our health by keeping fit
physically, mentally, and emotionally.
Children are given the best possible start

to life with quality healthcare and childcare
facilities as well as other social support
systems regardless of who they are and where
they come from. Our children are safe and
protected at all times.
World-class cities for

everyone
Redefining rural living
Artistic innovation and

preservation
Our cities are modern, vibrant, liveable,

culturally enriching, and provide a sense of
belonging. Everyone has the opportunity to
realise their potential and live with dignity.
Everyone can afford to own or rent a home as
well as have seamless access and ubiquitous
connectivity at home and at work. Malaysian
cities will be among the most liveable cities
globally.
Rural Malaysia is an increasingly appealing

lifestyle choice for Malaysians who value
living and working in tranquil settings. Rural
areas are well-connected, thriving, and have
facilities and services comparable to cities
so that communities can live comfortably, be
productive, and enjoy equitable opportunities.
Malaysians create, appreciate, and promote

artistic vibrancy, and celebrate their diverse
heritage. The heritage sites and the local arts
and culture are well preserved, highly valued,
and renowned globally.
10-9
People
TALENT
Holistic and balanced

talent
Knowledgeable and innovative

individuals
All Malaysians have access to quality education,

which focuses on developing both knowledge and
skills (ilmu), as well as ethics and morality (akhlak).
The education system places due importance on
co-curricular activities such as arts, culture, sports,
and volunteerism, grooming young Malaysians
to become impressive personalities who have
discipline, dedication, and drive for success.
Malaysians are knowledgeable and innovative individuals who

appreciate diverse views and are able to think critically. We have
an insatiable appetite for knowledge. We are lifelong learners.
We excel in arts, sciences, and humanities. We are at the
forefront of research and innovation in fields such as medicine,
agriculture, and environment. We are able to contribute to the
progress of the nation and betterment of mankind.
Inspirational leaders
Entrepreneurial leaders
Malaysians are confident, emotionally and spiritually

intelligent, and effective communicators who can
lead within and across national boundaries to inspire
others to greater heights. We have thought leaders
who contribute to global wellbeing. We produce
many beacons of towering personalities who are
globally renowned for their expertise, experience,
leadership, sportsmanship, and philanthropy.
Malaysians are innovative entrepreneurs, who are leaders and

innovators in their respective fields, able to create value for the
rapidly expanding consumer class. Our children are trained to
think, to adapt, to lead, and to create jobs that do not yet exist
today. We are persistent, disciplined, and we view failure as a
tool that prepares us for future successes.

10-10
GOVERNANCE
Protecting the
rakyat
Leaders who are

amanah
Prudent and sophisticated

resource management
The executive, legislative, and judicial

institutions are independent and trusted,
ensuring that the rights of the rakyat are wellprotected. Our institutions are renowned
for their commitment, integrity, and relevant
knowledge in the service of the rakyat.
The rakyat values transparency and

responsible conduct of Government
leaders. Our leaders are courageous and
embrace the concept of amanah in carrying
out their responsibilities.
We live within our means. Malaysian individuals

and organisations are prudent in spending.
Public resources are managed carefully and
sustainably in a transparent manner, while
policy implementation is backed by facts,
objective analyses, and takes into account the
wellbeing of the rakyat.
Mature politics
A government
that delivers
An international voice
of reason
Malaysians support mature politics and

welcome open intellectual discourse between
divergent views. The rakyat have freedom
of access to information and participate
productively in upholding the democratic
process.
Malaysians demand and expect

government service delivery at all levels
to be highly responsive and efficient.
Local governments demonstrate strong
leadership by engaging the rakyat in the
decision-making process to achieve the
best outcomes. Civil society is empowered
to champion social causes and its role
and capabilities are expanded to actively
participate in the co-creation and delivery of
public services.
We are a strong, independent, sovereign

nation. Malaysia is a leader in international
diplomacy and assumes regional and global
leadership on important issues, having a
pivotal role in international organisations.
Malaysias advice is often solicited for
issues pertaining to global peace, security,
and economy. Malaysia will continue to be
the bridge that connects the East with the
West; the Islamic world and major Asian
communities with the rest of the world.
10-11
Economy
Malaysia is an
advanced, progressive,
and inclusive economy
that leaves an imprint
on the world. Our
national development
moves beyond a focus
on economic growth
and consumerism, with
emphasis on wellbeing
of the rakyat, quality
of life, social equity,
the structure of the
economy, as well as the
adaptability and quality
of the workforce.
Inclusive
A future-proof Productive rural
economy
economic growth economy
The economy is strong, stable,
and thriving, generating sufficient
productive employment
opportunities for everyone in the
labour market. The prosperity
that is created is used to reduce
income inequality among the
rakyat, thus setting the stage for
stronger future economic growth.
There are high levels of

intangible capital such as
quality institutions, skilled
human capital, and relational
capital. The economy is
resilient with increased
capacity and flexibility to
respond to the changing
global economic landscape.
Malaysia has a vibrant and

thriving rural economy with
attractive economic opportunities,
supported by excellent
connectivity and social amenities
and services on par with urban
areas.
A fully involved private

sector
Global
champions
The private sector is at the forefront of nation-building and

practising excellent corporate culture, instilled with integrity
and economic patriotism as well as ensuring their business
activities support the social fabric of the society and protect the
environment. The private sector embraces a strong sense of
corporate duty and fair practices, particularly in ensuring their
employees welfare.
Malaysia is synonymous
with several global brands
and is a market leader for
several frontier products
and services. Malaysia is
associated with integrity,
high quality, and high value.

10-12
Environment
Malaysians adapt and
thrive in the face of
global environmental
and climate challenges.
We have a genuine
attachment to the land,
and are committed
to protecting and
preserving the
environment for the
wellbeing of future
generations. We capture
opportunities from the
new climate economy
and embrace green
practices in our daily
lives.
Passionate
stewards of the
environment
A low carbon
future
Ubiquitous
renewable
energy
Malaysians protect and conserve

the environment while attaining
rapid socio-economic growth. The
environment is no longer seen as a
trade-off to a strong economy but a
prerequisite to a sustained economic
growth. The national balance sheet fully
incorporates Malaysias natural assets
such as forests, mineral resources, and
pristine water sources. This facilitates
better management of these valuable
endowments and allows accountability
to be assigned to relevant agencies.
The nation embraces the

prospects of becoming
a low carbon economy,
which minimises waste.
Environmentally friendly
practices such as the 6Rs
reuse, reduce, redesign,
remanufacture, recover, and
recycle are widely applied.
We develop economic
opportunities arising from
the latest innovations in
sustainable development.
Malaysians are passionate

about incorporating
sustainable consumption and
production practices in their
daily lives. Affordable and
renewable energy powers
homes, transport, and work
places.
Pride in and
respect for our
natural heritage
The green
building
revolution
Build back
better
Local communities are surrounded

with diverse landscapes and parks that
provide habitats for biodiversity. Natural
features such as rivers, lakes, and
wetlands are well protected and used
mainly for recreational and educational
purposes. We are committed to
protecting our diverse flora and fauna,
and these become both a source of
national pride and identity.
Environmentally friendly
homes and work places
are a common feature in all
residential and office areas.
They are not only water- and
energy-efficient, but are
resilient to climate change.
Malaysia is well prepared

for natural disasters,
supported by sophisticated
and advanced systems
for national emergency
response, recovery, and
reconstruction. After every
disaster, we build back
better for stronger and safer
communities.
10-13
Conclusion
Malaysians have always had high aspirations. Achieving developed
nation status is a very important milestone for Malaysia, and
is the culmination of a 30-year journey towards realising this
aspiration. The next challenge, post-2020, is to become a truly
advanced nation in economic, social, and environmental terms.
It is envisaged that Malaysians will have an unshakeable national
identity and clear moral compass, while all members of society
will enjoy an elevated state of wellbeing. Malaysia will be guided
by many inspirational leaders and towering personalities, who
are moulded by a holistic education system and driven by an
insatiable appetite for knowledge. Malaysia will be governed
by trusted and independent executive, legislative, and judicial
institutions that protect Malaysians equally. Malaysia will have
a government that delivers, led by leaders with integrity and
conviction who embrace the concept of amanah.

Malaysia will punch above its weight in the international arena,

both as a strong independent nation and through prominent
Malaysian thought leaders in various fields. The economy will
be progressive, inclusive, sustainable, and adaptable for the
future, with highly productive world-class cities and thriving
rural areas. Malaysians will be passionate stewards of the
environment and no longer see environmental protection
as a trade-off to a strong economy, making Malaysia a
truly beautiful and conducive place to live for all. To achieve these
aspirations, the enormity of the task ahead will be the greatest in
our lifetime, and cannot be underestimated. There will be new
challenges for us to face, new opportunities for us to seize, and
new horizons to strive for. We will make the journey towards 2020
and beyond together. The nations future is in our hands.
10-14
Appendix
Gross domestic product by

expenditure category,
2010-2020
Gross domestic product by
kind of economic activity,
2010-2020
Federal government financial
position, 2010-2020
Merchandise trade, 20102020
Balance of payments, 20102020
Gross domestic product for
states by economic activities,
2011-2020
Gross domestic product for
states by economic activities,
2011-2020
Population by age, ethnic and
strata, 2010-2020
Labour force, employment
and job creation, 2010-2020
Employment by major
occupational group, 20102020
Employment by skills
category group, 2010-2020
Key achievements of
environmental and natural
resources management,
2011-2015
Glossary
Lists of Strategy Papers
Index
A-1
Appendix A2-1
Gross domestic
product
by expenditure
category, Category,
2010-2020 (in 2010 prices)
Gross
Domestic
Product
by Expenditure
2010-2020 (in 2010 prices)
Average annual growth
rate, %
RM million, in 2010 prices
Actual
Estimate
Target
Target
Eleventh
Plan
2011-2015
2016-2020
Item
2010
2011
2012
2013
2014
2015
Private Expenditure
496,536
533,239
592,169
642,548
693,490
740,071
1,048,457
8.3
7.2
Consumption
395,245
422,376
457,625
490,798
524,979
556,478
760,365
7.1
6.4
Investment
101,291
110,863
134,544
151,750
168,511
183,593
288,092
12.6
9.4
Public Expenditure
186,347
203,116
223,049
232,241
233,276
235,692
277,094
4.8
3.3
Consumption
103,346
117,983
124,390
131,719
137,511
134,840
161,771
5.5
3.7
Investment
83,001
85,133
98,659
100,522
95,765
100,852
115,323
4.0
2.7
Exports of Goods and

Services
714,075
743,919
730,961
732,856
770,503
790,450
874,981
2.1
2.1
Imports of Goods and

Services
583,337
620,147
638,206
649,208
676,165
701,316
784,235
3.8
2.3
Gross Domestic Product
821,434
864,920
912,261
955,260
1,012,506
1,062,715
1,411,305
5.3
5-6

Numbers may not necessarily add up due to rounding
2020
Estimate
Tenth Plan

Appendix
A-2
Appendix A2-2
Gross
product
by expenditure
category, 2010-2020
Grossdomestic
Domestic
Product
by Expenditure
Category,(in current prices)
2010-2020 (in current prices)

rate, %
RM million, in current prices
Actual
Estimate
Target
Target
Eleventh
Plan
2011-2015
2016-2020
Item
2010
2011
2012
2013
2014
2015
Private Expenditure
496,536
552,099
624,545
690,564
763,810
833,266
1,353,737
10.9
10.2
Consumption
395,245
437,340
482,238
527,749
579,908
628,997
989,079
9.7
9.5
Investment
101,291
114,759
142,307
162,815
183,902
204,269
364,658
15.1
12.3
Public Expenditure
186,347
208,485
238,479
246,821
251,241
259,041
340,304
6.8
5.6
Consumption
103,346
120,993
134,442
139,822
147,646
146,081
194,607
7.2
5.9
Investment
83,001
87,492
104,037
106,999
103,595
112,960
145,697
6.4
5.2
Exports of Goods and

Services
714,075
777,302
770,202
770,368
817,176
825,757
1,018,372
2.9
4.3
Imports of Goods and

Services
583,337
635,316
665,714
683,408
714,950
747,050
926,935
5.1
4.4
821,434
911,733
971,252
1,018,821
1,106,580
1,169,041
1,780,737
7.3
8.8
Gross National Income
795,303
890,133
935,411
984,846
1,069,258
1,131,201
1,754,975
7.3
9.2
Notes: Based on GDP in current prices

2020
Estimate
Tenth Plan
A-3
Appendix A2-3
Gross domestic product by kind of economic activity, 2010-2020
Gross Domestic Product by Kind of Economic Activity,

2010-2020
rate, %
Actual
Sector
Estimate
2010
2011
2012
2013
2014
2015
Target
2020
Estimate
Tenth Plan
Target
Eleventh
Plan
2011-2015
2016-2020
Agriculture
82,882
88,555
89,406
91,097
92,979
93,184
110,707
2.4
3.5
Mining and Quarrying
89,793
85,373
86,751
87,789
90,645
93,673
100,024
0.9
1.3
192,493
202,960
211,921
219,216
232,868
243,895
312,479
4.8
5.1
28,213
29,524
34,880
38,646
43,190
47,704
78,022
11.1
10.3
420,382
449,854
479,300
507,935
541,185
571,835
796,722
6.3
6.9
Manufacturing
Construction
Services
Electricity, Gas and Water
22,173
23,048
24,169
25,226
26,178
27,094
32,830
4.1
3.9
Wholesale & Retail Trade,

Accommodation and
Restaurants
134,635
143,620
150,407
159,735
173,320
185,410
246,499
6.6
5.9
Transport, Storage and

Communications
68,511
73,052
78,274
83,957
90,602
97,363
148,539
7.3
8.8
Finance, Insurance, Real

Estate and Business
Services
93,939
100,031
107,716
112,105
116,968
121,328
168,270
5.3
6.8
Government Services
64,359
71,503
78,397
84,318
89,498
94,152
127,684
7.9
6.3
Other Services
36,766
38,600
40,337
42,595
44,619
46,487
72,900
4.8
9.4
Plus : Import Duties
7,672
8,654
10,004
10,577
11,639
12,425
13,351
10.1
1.4
821,434
864,920
912,261
955,260
1,012,506
1,062,715
1,411,305
5.3
5-6


Appendix
Appendix A2-4
Federal Government financial position, 2010-2020

Federal Government Financial Position, 2010-2020
rate, %
RM billion
Actual
Item
Revenue
Estimate
2010
2011
2012
2013
2014
2015
Target
2020
Estimate
Tenth Plan
Target
Eleventh
Plan
2011-2015
2016-2020
159.7
185.4
207.9
213.4
220.6
222.9
326.4
6.9
7.9
Direct Tax
79.0
102.2
116.9
120.5
126.7
123.2
205.2
9.3
10.7
Indirect Tax
30.5
32.6
34.7
35.4
37.5
48.1
65.6
9.6
6.4
Non-Tax Revenue
48.9
49.4
54.9
54.5
53.9
49.0
49.9
0.1
0.4
Non-Revenue Receipt
1.3
1.1
1.4
3.0
2.5
2.5
5.7
14.2
18.4
151.6
182.6
205.5
211.3
219.6
212.4
289.8
7.0
6.4
Operating Expenditure
Emolument
46.7
50.1
60.0
61.0
66.9
68.0
94.1
7.8
6.7
Supplies and Services
23.8
28.9
32.0
33.9
34.3
36.1
52.5
8.7
7.8
Pension and Gratuities
11.5
13.6
14.1
14.8
18.2
17.7
25.6
8.9
7.7
Debt Service Charges
15.6
17.7
19.5
20.8
22.6
24.4
31.9
9.3
5.5
Grants and Transfers1
17.1
19.3
21.7
20.8
22.9
22.2
30.3
5.3
6.4
Subsidies
23.1
36.3
44.1
43.3
39.7
26.8
29.0
3.0
1.6
Other Expenditure2
13.8
16.7
14.2
16.6
15.0
17.4
26.4
4.8
8.7
Current Account Balance
8.0
2.8
2.4
2.1
1.0
10.4
36.7
5.4
28.5
1.0
0.3
0.2
0.2
0.1
0.9
2.1
52.8
46.4
46.9
42.2
39.5
48.5
47.6
-1.7
-0.4
-43.3
-42.5
-42.0
-38.6
-37.4
-37.0
-9.9
-3.1
-23.2
-5.3
-4.7
-4.3
-3.8
-3.4
-3.2
-0.6
407.1
456.1
501.6
539.9
582.8
622.7
774.0
% to GDP
Gross Development
Expenditure
Overall Balance
% to GDP
Total Debt
% to GDP
49.6
50.0
51.6
53.0
52.7
53.3
43.5
Domestic
390.4
438.0
484.8
523.1
566.1
606.1
757.6
Foreign
16.7
18.1
16.8
16.8
16.8
16.6
16.4

1 Includes grants and transfers to state governments and grants to statutory bodies
2 Includes scholarships and educational aid, operating grants to primary and secondary schools, assets acquisition, refunds and write-offs, and other expenditures not
classified
Source: Economic Planning Unit and Ministry of Finance
A-4
A-5
Appendix A2-5
Merchandise
trade,
2010-2020
Merchandise
Trade,
2010-2020

rate, %
RM million
Actual
Item
Estimate
2010
2011
2012
2013
2014
2015
Target
2020
Estimate
Tenth Plan
Target
Eleventh
Plan
2011-2015
2016-2020
Gross Exports
Agriculture
71,351
94,594
80,413
68,799
69,200
61,751
69,140
-2.8
2.3
Mining
73,830
91,382
94,414
97,937
104,595
72,882
85,390
-0.3
3.2
Manufacturing
489,611
507,417
521,740
548,146
587,252
636,742
812,779
5.4
5.0
Others
4,030
4,470
6,074
5,110
5,081
6,582
7,295
10.3
2.1
638,822
697,862
702,641
719,992
766,129
777,957
974,603
4.0
4.6
73,769
80,171
96,098
98,202
96,177
107,561
146,438
7.8
6.4
Total
Gross Imports
Capital Goods
Intermediate Goods
365,681
385,739
363,714
379,455
408,383
426,620
502,448
3.1
3.3
Consumption Goods
34,477
41,024
43,746
47,584
50,316
52,150
78,360
8.6
8.5
Others1
19,242
21,140
37,398
31,453
29,025
30,059
36,862
9.3
4.2
493,170
528,074
540,956
556,693
583,901
616,390
764,107
4.6
4.4
35,658
45,551
65,721
92,002
99,115
107,923
153,188
24.8
7.3
528,828
573,625
606,677
648,695
683,016
724,313
917,296
6.5
4.8
Retained Imports
Imports for Re-exports
Total

1 Dual use goods, goods not elsewhere stated and transactions below RM5,000

Appendix
A-6
Appendix A2-6
Balance of Payments, 2010-2020 (1/2)

Balance of payments, 2010-2020
RM million
Estimate
Actual
Item
2010
2011
2012
2013
2014
Target
2015
2020
Goods and Services (net)
130,738
141,985
104,488
86,959
102,226
78,707
91,437
Goods (net)
124,182
140,529
113,030
96,552
113,414
86,692
95,871
Exports
602,609
658,421
644,864
637,683
679,913
679,369
822,482
Imports
478,427
517,893
531,835
541,131
566,500
592,677
726,611
Services (net)
Transportation
Travel
Other Services
Government Transaction
n.i.e.1
Primary Income (net)
6,556
1,457
-8,542
-9,592
-11,188
-7,985
-4,433
-17,168
-19,445
-22,040
-23,909
-26,108
-26,008
-36,957
31,617
28,959
24,821
29,167
33,472
36,295
54,406
-7,392
-7,534
-10,908
-14,632
-18,216
-18,137
-21,653
-502
-524
-415
-218
-337
-136
-230
-26,131
-21,600
-35,841
-33,975
-37,322
-37,839
-25,762
Compensation of Employee
-2,082
-2,331
-3,082
-4,007
-5,000
-4,485
-4,266
Investment Income
-24,049
-19,269
-32,760
-29,969
-32,322
-33,354
-21,496
Secondary Income (net)
-21,790
-21,061
-18,469
-17,498
-17,586
-18,457
-19,173
82,816
99,324
50,177
35,485
47,317
22,410
46,502
Current Account Balance
% to GNI
Capital Account (net)
10.4
11.2
5.4
3.6
4.4
2.0
2.6
-111
-133
241
-15
272
Capital Transfers
-16
-14
-93
-22
-9
Non-Produced
Non-Financial Assets
-95
-119
334
281
Financial Account (net)
-19,945
23,265
-23,014
-20,216
-81,597
Direct Investment
-13,976
-9,337
-24,415
-6,276
-18,480
Abroad
-43,160
-46,662
-52,952
-44,450
-53,824
In Malaysia
29,183
37,325
28,537
38,175
35,344
48,467
26,139
63,859
-3,012
-38,536
-698
-76
972
-253
-975
Portfolio Investment
Financial Derivatives
Notes: Based on GDP in 2010 prices; data reflect the treatment of goods for processing (GFP) according to Balance of Payments Manual 6 (BPM6)
1 n.i.e. - not included elsewhere
[continued]
A-7
Balance of Payments, 2010-2020 (2/2)
Appendix A2-6
Balance of payments, 2010-2020
RM million
Estimate
Actual
Item
2010
-53,738
Other Investment
2011
Target
2012
2013
2014
2015
2020
6,539
-63,431
-10,675
-23,606
Official Sector
119
-1,337
-1,674
-3,965
-2,030
Private Sector
-53,856
7,876
-61,756
-6,710
-21,576
Balance on Capital and

Financial Accounts
-20,056
23,132
-22,773
-20,231
-81,325
Errors and Emissions
-65,387
-27,774
-23,531
-605
-2,500
-2,628
94,682
3,873
14,649
-36,507
328,649
423,331
427,204
441,853
405,515
8.6
9.6
9.5
9.5
8.3
Overall balance
BNM International Reserves, Net
Months of Retained Imports
Notes: Based on GDP in 2010 prices; data reflect the treatment of goods for processing (GFP) according to Balance of Payments Manual 6 (BPM6)
1 n.i.e. - not included elsewhere

Appendix
A-8
Appendix A2-7
y
Gross domestic product for states by economic
activities, 2011-2020
2010-2020 (1/5)
rate, %
Actual
State/Sector
Estimate
Target
Estimate
Tenth Plan
Target
Eleventh
Plan
2011-15
2016-20
2010
2011
2012
2013
2014
2015
2020
12,716
13,559
14,016
14,371
14,645
14,581
16,696
2.8
2.7
93
96
115
133
133
134
124
7.6
-1.6
23,538
24,780
26,110
27,425
29,157
30,584
40,314
5.4
5.7
2,689
2,667
3,138
3,388
3,785
4,187
6,648
9.3
9.7
JOHOR
Agriculture
Mining & Quarrying
Manufacturing
Construction
Services
34,357
37,158
39,800
41,430
44,066
46,462
64,102
6.2
6.6
GDP
74,088
78,980
83,980
88,021
93,189
97,445
129,490
5.6
5.9
Per Capita GDP

(RM in current prices)
22,031
24,306
25,316
26,070
28,105
29,268
42,355
4,466
4,892
4,912
4,995
5,080
5,047
6,162
2.5
4.1
26
27
33
38
38
38
35
7.9
-1.9
7,300
8,090
8,587
8,842
9,324
9,700
11,856
5.9
4.1
711
716
797
711
752
786
947
2.0
3.8
KEDAH
Agriculture
Mining & Quarrying
Manufacturing
Construction
Services
14,141
15,156
16,123
17,199
18,377
19,465
27,452
6.6
7.1
GDP
26,774
29,010
30,614
31,956
33,759
35,239
46,675
5.6
5.8
Per Capita GDP

13,735
15,339
15,678
16,197
17,395
18,053
25,708
4,556
4,899
4,895
4,915
4,960
4,889
5,834
1.4
3.6
22
24
29
33
33
33
31
8.7
-1.5
KELANTAN
Agriculture
Mining & Quarrying
Manufacturing
806
853
871
866
908
938
1,112
3.1
3.5
Construction
273
270
300
241
255
266
320
-0.5
3.7
Services
9,614
10,288
11,086
11,706
12,313
13,038
16,940
6.3
5.4
GDP
15,292
16,357
17,205
17,788
18,499
19,198
24,273
4.7
4.8
Per Capita GDP

9,619
10,703
10,909
11,006
11,658
11,993
16,055

[continued]
A-9
Appendix A2-7
y
Gross domestic product for states by economic activities,
2011-2020
2010-2020 (2/5)
rate, %
Actual
State/Sector
Estimate
2010
2011
2012
2013
2014
Target
2015
2020
Estimate
Tenth Plan
Target
Eleventh
Plan
2011-15
2016-20
MELAKA
Agriculture
Mining & Quarrying
Manufacturing
Construction
2,627
2,787
2,897
3,115
3,204
3,219
3,857
4.2
3.7
11
12
14
16
16
16
15
7.5
-0.7
9,936
10,267
10,886
10,765
11,309
11,719
14,050
3.4
3.7
749
760
1,186
906
959
1,005
1,217
6.0
3.9
Services
10,472
11,149
11,805
12,517
13,405
14,232
20,307
6.3
7.4
GDP
23,803
24,983
26,803
27,339
28,914
30,215
39,472
4.9
5.5
Per Capita GDP

28,900
32,000
34,632
34,752
37,200
38,666
54,420
3,518
3,705
3,802
3,757
3,944
4,047
4,902
2.8
3.9
28
29
34
39
39
39
37
7.0
-1.2
13,896
14,752
15,393
15,492
16,338
17,000
21,540
4.1
4.8
767
804
907
930
984
1,030
1,242
6.1
3.8
NEGERI SEMBILAN
Agriculture
Mining & Quarrying
Manufacturing
Construction
Services
11,949
12,581
13,401
13,935
14,601
15,163
20,302
4.9
6.0
GDP
30,387
32,044
33,730
34,745
36,556
37,973
48,770
4.6
5.1
Per Capita GDP

29,517
32,318
33,844
34,227
36,404
37,573
51,773
9,809
10,573
10,673
11,200
11,697
11,942
14,696
4.0
4.2
242
270
298
324
326
330
311
6.4
-1.2
PAHANG
Agriculture
Mining & Quarrying
Manufacturing
7,875
8,276
8,830
9,256
9,818
10,276
13,701
5.5
5.9
Construction
1,028
1,000
1,143
1,212
1,282
1,342
1,618
5.5
3.8
Services
16,376
17,410
18,384
19,433
20,768
22,002
30,285
6.1
6.6
GDP
35,340
37,537
39,341
41,451
43,921
45,923
60,648
5.4
5.7
Per Capita GDP

23,530
26,568
26,681
27,156
28,867
29,907
41,834


Appendix
A-10
2010-2020 (3/5)
rate, %
Actual
State/Sector
Estimate
2010
2011
2012
2013
2014
Target
2015
2020
Estimate
Tenth Plan
Target
Eleventh
Plan
2011-15
2016-20
PULAU PINANG
Agriculture
Mining & Quarrying
Manufacturing
Construction
1,229
1,308
1,371
1,411
1,467
1,492
1,660
4.0
2.2
26
28
32
37
37
38
37
7.7
-0.5
26,001
26,642
27,398
28,473
30,803
32,886
45,000
4.8
6.5
1,344
1,412
1,722
1,711
1,810
1,895
2,289
7.1
3.9
Services
25,209
26,848
28,471
30,179
32,262
34,190
45,883
6.3
6.1
GDP
54,088
56,578
59,403
62,290
66,907
71,063
95,475
5.6
6.1
Per Capita GDP

34,322
35,956
37,779
39,536
43,490
46,019
67,544
8,440
9,020
9,229
9,164
9,220
9,061
9,949
1.4
1.9
151
164
198
222
223
229
236
8.7
0.6
7,638
8,464
8,841
9,313
9,913
10,412
13,344
6.4
5.1
943
948
1,433
1,720
1,820
1,905
2,301
15.1
3.8
PERAK
Agriculture
Mining & Quarrying
Manufacturing
Construction
Services
26,495
28,044
30,227
32,021
34,263
36,345
51,233
6.5
7.1
GDP
43,682
46,658
49,945
52,463
55,465
57,980
77,099
5.8
5.9
Per Capita GDP

18,362
20,396
21,617
22,258
23,976
25,017
36,434
1,169
1,101
1,119
1,092
1,100
1,123
1,450
-0.8
5.2
11
11
11
11
10
3.6
-1.8
PERLIS
Agriculture
Mining & Quarrying
Manufacturing
355
401
416
426
444
457
529
5.2
3.0
Construction
143
137
127
130
138
146
181
0.3
4.4
Services
2,393
2,531
2,675
2,801
2,893
2,961
3,566
4.4
3.8
GDP
4,142
4,230
4,418
4,545
4,679
4,796
5,838
3.0
4.0
Per Capita GDP

17,568
18,464
19,536
20,075
21,051
21,512
28,322

[continued]
A-11
Appendix A2-7
Gross domestic product for states by economic activities, 2011-2020

2010-2020 (4/5)
rate, %
Actual
State/Sector
Estimate
2010
2011
2012
2013
2014
Target
2015
2020
Estimate
Tenth Plan
Target
Eleventh
Plan
2011-15
2016-20
SELANGOR
Agriculture
Mining & Quarrying
Manufacturing
Construction
3,990
4,064
4,323
4,187
4,317
4,350
5,200
1.7
3.6
173
180
211
240
242
244
229
7.1
-1.2
53,708
56,661
59,922
62,166
66,340
69,852
90,676
5.4
5.4
9,529
10,358
11,510
13,265
15,235
17,328
31,787
12.7
12.9
Services
106,425
112,679
120,451
128,722
137,831
146,308
206,549
6.6
7.1
GDP
178,501
189,211
202,665
214,872
230,885
245,468
342,363
6.6
6.9
Per Capita GDP

32,441
34,718
37,108
39,233
43,165
45,617
69,043
2,550
2,652
2,585
2,592
2,746
2,846
3,519
2.2
4.3
19
22
26
30
30
30
29
9.9
-1.2
8,167
8,034
8,353
8,550
8,776
8,884
9,471
1.7
1.3
853
828
991
1,041
1,101
1,152
1,390
6.2
3.8
TERENGGANU
Agriculture
Mining & Quarrying
Manufacturing
Construction
Services
11,418
12,034
12,343
13,116
13,844
14,484
19,221
4.9
5.8
GDP
23,020
23,589
24,316
25,343
26,513
27,412
33,645
3.6
4.2
Per Capita GDP

21,811
23,363
23,919
24,438
25,672
26,239
33,517
SABAH
Agriculture
15,973
17,081
16,202
16,521
16,633
16,756
20,312
1.0
3.9
Mining & Quarrying
13,542
11,371
12,575
12,889
13,186
13,514
14,255
0.0
1.1
Manufacturing
4,587
4,914
4,862
5,070
5,360
5,590
6,917
4.0
4.4
Construction
1,378
1,481
1,676
1,447
1,632
1,822
3,007
5.7
10.5
Services
21,761
23,522
25,077
26,365
27,632
28,705
38,734
5.7
6.2
GDP
57,434
58,558
60,578
62,476
64,646
66,604
83,463
3.0
4.6
Per Capita GDP

17,618
19,544
19,219
19,155
20,332
20,743
27,496


Appendix
2010-2020 (5/5)
rate, %
Actual
State/Sector
Estimate
Target
2010
2011
2012
2013
2014
2015
2020
Estimate
Tenth Plan
Target
Eleventh
Plan
2011-15
2016-20
SARAWAK
Agriculture
11,692
12,768
13,231
13,600
13,789
13,657
16,287
3.2
3.6
Mining & Quarrying
21,378
22,457
20,788
22,172
23,037
23,880
25,856
2.2
1.6
Manufacturing
23,989
25,547
25,738
26,388
27,803
28,799
35,168
3.7
4.1
Construction
2,468
2,436
2,962
3,009
3,384
3,738
6,162
8.7
10.5
Services
27,349
29,260
31,139
32,807
34,570
36,107
50,067
5.7
6.8
GDP
87,177
92,736
94,106
98,209
102,838
106,454
133,831
4.1
4.7
Per Capita GDP

35,053
40,728
41,676
42,532
45,677
47,051
64,082
-0.3
1.3
37
40
46
53
53
53
51
7.6
-0.8
WP KUALA LUMPUR
Agriculture
Mining & Quarrying
Manufacturing
4,048
4,515
4,912
5,352
5,693
5,876
7,636
7.7
5.4
Construction
5,311
5,677
6,943
8,868
9,983
11,028
18,823
15.7
11.3
Services
100,411
108,922
115,882
123,075
131,562
139,417
197,979
6.8
7.3
GDP
110,816
120,573
129,365
138,490
148,547
157,715
225,931
7.3
7.5
Per Capita GDP

63,390
69,265
76,056
81,581
87,801
92,802
145,585
146
145
150
174
174
171
180
3.2
1.0
650
765
804
831
882
923
1,165
7.3
4.8
27
29
44
67
71
74
91
22.5
4.0
WP LABUAN
Agriculture
Mining & Quarrying
Manufacturing
Construction
Services
2,013
2,272
2,435
2,628
2,799
2,955
4,102
8.0
6.8
GDP
2,855
3,233
3,451
3,719
3,947
4,146
5,562
7.7
6.1
Per Capita GDP

32,387
36,878
40,407
43,502
45,562
47,288
66,558

A-12
A-13
Appendix A5-1
APPENDIX A5-1
Population
by age, ethnic and strata, 2010-2020
Population by age, ethnic and strata, 2010-2020

2010
20152
% to
Total
Million
Total Population
Average Annual
Growth Rate %
2020
% to
Total
Million
% to
Total
Million
Tenth
Plan
Eleventh
Plan
28.6
100.0
30.5
100.0
32.4
100.0
1.3
1.3
Age Structure
0-14
7.8
27.4
7.7
25.4
7.8
24.0
-0.2
0.1
15-64
19.3
67.6
21.0
68.8
22.5
69.2
1.6
1.4
65 and above
1.4
5.0
1.8
5.8
2.2
6.8
4.5
4.4
Citizens
26.3
100.0
28.1
100.0
30.0
100.0
Malay
14.3
54.5
15.5
55.1
16.7
55.8
1.6
1.6
Other Bumiputera
3.4
12.8
3.7
13.1
4.0
13.4
1.8
1.8
Chinese
6.4
24.5
6.6
23.7
6.8
22.8
0.6
0.6
Indian
1.9
7.3
2.0
7.2
2.1
7.0
0.9
0.9
Others
0.2
0.9
0.3
1.0
0.3
1.0
3.3
2.8
Non-Citizens1
2.3
0.8
0.7
Ethnicity
2.4
2.5
Strata
Urban
20.3
70.9
22.7
74.3
25.0
77.2
2.2
2.0
Rural
8.3
29.0
7.8
25.7
7.4
22.8
-1.2
-1.1
Total Fertility Rate
2.2
2.1
2.0
Median Age (years )
26.3
28.1
29.9
Dependency Ratio, %
47.8
45.4
44.5
1 This includes permanent residents, foreign workers with work permits, expatriates and foreign students
2 Population projection based on the Population and Housing Census of 2010, adjusted for under enumeration

Appendix
A-14
Appendix A5-2
Labour force, employment and job creation, 2010-2020
APPENDIX A5-2
Labour force, employment and job creation, 2010-2020

Average Annual Growth
Rate, %
Labour Force and Employment

2010
Industry
Agriculture, Forestry, Livestock
& Fishing
000'
person
% of
total
2015
2020
% of
000' person total
% of
000' person total
Tenth Plan
2011- 15
Eleventh
Plan 201620
Net Job Creation

Tenth Plan
000'
person
Eleventh Plan
% of
total
000'
person
% of
total
1,604.0
13.4
1,615.2
11.7
1,610.0
10.5
0.1
-0.1
11.2
0.6
-5.2
-0.3
82.5
0.7
81.6
0.6
82.6
0.5
-0.2
0.2
-0.8
-0.0
1.0
0.1
Manufacturing
2,038.6
17.0
2,469.4
18.0
2,787.9
18.2
3.9
2.5
430.7
23.6
318.6
21.1
Construction
1,141.7
9.5
1,219.6
8.8
1,259.7
8.3
1.3
0.6
77.9
4.3
40.1
2.7
Services Sector
7,091.7
59.4
8,395.6
60.9
9,551.7
62.5
3.4
2.6
1,303.9
71.5
1,156.1
76.5
Total Employment
11,958.5
100.0
13,781.4
100.0
15,292.0
100.0
2.9
2.1
1,822.9
28.5
1,510.6
23.5
Total Labour Force
12,361.3
14,191.3
15,735.2
2.8
2.1
402.8
409.9
443.2
3.3
2.9
2.8
Labour Force Participation,

%
64.3
67.7
70.1
Male
79.3
80.3
80.8
Female
46.8
54.5
59.0
Mining & Quarrying
Unemployed
Unemployment rate, %
Notes: 2015 - estimate

2020 - forecast based on 5.8% GDP growth and 3.7% productivity growth in the 11th Malaysia Plan period
A-15
Appendix A5-3
APPENDIX A5-3
Employment by major occupational group, 2010-2020
Employment by major occupational group, 2010-2020 (1/2)

Average Annual Growth Rate,
%
Employment by Major Occupational Group

000' person
Occupational Group
% of total
2015
2010
2020
2015
2010
Tenth Plan
2020
Eleventh
Plan
Skilled
Legislators, Senior Officials &
Managers
860.9
799.3
984.1
7.2
5.8
6.4
-1.5
4.2
Professionals
741.1
1,502.2
2,109.2
6.2
10.9
13.8
15.2
7.0
1,704.2
1,557.3
2,258.4
14.3
11.3
14.8
-1.8
7.7
1,189.1
1,226.5
1,327.3
9.9
8.9
8.7
0.6
1.6
1,969.2
2,921.7
3,299.0
16.5
21.2
21.5
8.2
2.5
Skilled Agricultural & Fishery

Workers
1,388.9
1,171.4
1,163.0
11.6
8.5
7.6
-3.3
-0.1
Craft & Related Trade Workers
1,234.4
1,488.4
1,554.8
10.3
10.8
10.2
3.8
0.9
Plant & Machine Operators &

Assemblers
1,510.3
1,722.7
1,583.1
12.6
12.5
10.4
2.7
-1.7
1,360.4
1,391.9
1,013.1
11.4
10.1
6.6
0.5
-6.2
11,958.5
13,781.4
15,292.0
100.0
100.0
100.0
2.9
2.1
Technicians & Associate

Professionals
Semi-skilled
Clerical Workers
Service Workers & Shop & Market
Sales Workers
Low-Skilled
Elementary Occupations
Total Employment

2020 - forecast based on 5.8% GDP growth and 3.7% productivity growth in the 11th Malaysia Plan period

Appendix
A-16
Appendix A5-4
APPENDIX
A5-3by skills category group, 2010-2020
Employment
Employment by skills category group, 2010-2020

Average Annual Growth Rate, %
Employment by Major Occupational Group

2015
2010
Industry
000' person
% of total
2020
000' person
% of total
000' person
% of total
Tenth Plan
Eleventh Plan
Skilled
3,306.2
27.6
3,858.8
28.0
5,351.7
35.0
3.1
6.8
Semi-skilled
7,291.9
61.0
8,530.7
61.9
8,927.2
58.4
3.2
0.9
Low-Skilled
1,360.4
11.4
1,391.9
10.1
1,013.1
6.6
0.5
-6.2
11,958.5
100.0
13,781.4
100.0
15,292.0
100.0
2.9
2.1
Total Employment
2020 forecast
A-17
Appendix A6-1
Key achievements
APPENDIX
A6-1
of environmental and natural resources management,
2011-2015
Key
Achievements of Environmental and Natural Resources
Management, 2011-2015 (1/2)
Focus area
Initiative
Achievement
Energy efficiency for buildings
Retrofitting of four existing government buildings resulted in reduction of electricity use ranging from
4% to 19% monthly, equivalent to RM7,000 to RM130,000 savings
Energy efficiency for

electrical appliances
The Minimum Energy Performance Standards (MEPS) for domestic electrical appliances, namely bulb,
fan, refrigerator, television and air-conditioner, gazetted in 2013, resulted in reduced electricity
consumption and savings
Implementation of the Sustainability Achieved via Energy Efficiency (SAVE) Programme, 2011-2013
resulted in:
reduction of domestic electricity consumption of 306.9 gigawatt hour
savings of RM78.4 million
greenhouse gases (GHGs) emission reduction of 208,705 tonnes carbon dioxide equivalent
(tCO2eq)
Renewable energy through

Feed-in Tariff (FiT)
As of 2013, GHGs emission reduction through FiT was 432,161 tCO2eq

The total installed capacity increased from 53 megawatts in 2009 to 243 megawatt in 2014
Green Technology
Financing Scheme (GTFS)
As of 2013, GHGs emission reduction through implementation of projects under GTFS was 92,993
tCO2eq
Fuel standards
improvement
Gazettement of EURO 4M fuel standard in 2013 and enforcement of its use in RON97 in 2015
Construction of 35 depots nationwide with in-line blending facilities for the implementation of the B5
programme (5% biodiesel. As of 2013, GHGs emission reduction through the B5 programme was 1.4
million tCO2eq
Mitigation
Land use, land-use change

and forestry
Solid waste management
Introduction of B7 programme (7% biodiesel) by end of 2014

Gazettement of Permanent Reserved Forest in Pahang, Perak and Selangor. As of 2013, GHGs
emission avoidance was 11.8 million tCO2eq
Construction of 137 check dams, 40 water tube wells and three watch towers in hot spot areas to
address peatland fires
Household recycling rate increased from 5% in 2010 to 10.5% in 2012 and expected to increase to
15% in 2015
As of 2013, GHGs emission reduction through paper recycling was four million tCO2eq
159 companies, with a total capacity of more than 24,000 metric tonnes per month, were licensed to
recover electrical and electronic waste (e-waste)
The National Biomass Strategy 2020 was formulated in 2013 to promote the use of agricultural
biomass waste for high value products
Adoption of Green Building

Index for construction
As of 2013, GHGs emission reduction was 475,746 tCO2eq
Utilisation of compressed
natural gas
Public transport usage Light Rail Transit and

Monorail
Hybrid vehicle usage
Methane avoidance from

empty palm oil fruit brunches
As of 2013, GHGs emission reduction was 33.1 million tCO2eq
Development of green
products
73 eco-label licences issued to companies producing green products

Appendix
APPENDIX A6-1
Key Achievements of Environmental and Natural Resources

Management, 2011-2015 (2/2)
Focus area
Mitigation
(contd.)
Adaptation
Conservation
Initiative
Achievement
Roadmaps and guidelines to support

low carbon development
Low Carbon City Framework developed in 2011

Green Neighbourhood Guidelines developed in 2011
Communications strategy
National Sustainable Consumption and Production (SCP) web portal developed in 2014 to enhance
knowledge and capacity towards green growth
Obligation to the United

Nations Framework
Convention on Climate
Change (UNFCCC)
Submission of the Second National Communication to the UNFCCC in 2011

Submission of Biennial Update Report by end of 2015
Domestic reporting
mechanisms
By January 2015, 26 companies volunteered to report their GHGs emissions through the MyCarbon
Reporting Programme, launched in 2013
Flood mitigation
programmes
Development of 34 hazard maps to facilitate disaster prevention and development planning in major
flood-prone areas
Implementation of 194 flood mitigation projects, shielded nearly one million people from floods
Coastal erosion prevention

programme
24.4 kilometres of coastal areas in Johor, Kelantan, Pulau Pinang, Sabah, Sarawak, Selangor and
Terengganu were rehabilitated
New paddy variant
New aerobic paddy variant (MRIA1) launched in 2013 - a paddy variant resistant to heat and able to be
planted in areas with poor water supply
Rehabilitation
and reforestation
programme
Increase in forest cover from 56.4% in 2010 to 61.0% in 2014

53 million trees planted contributing to conservation of biodiversity
Integrated
Water Resources
Management
Improved water quality in five rivers, namely Sungai Petani, Kedah; Sungai Galing, Pahang; Sungai
Pinang, Pulau Pinang; Sungai Penchala, Selangor; and Sungai Hiliran, Terengganu
Construction of a water tunnel to transfer raw water from Pahang to Selangor to address water
shortages in the Klang Valley
A Roadmap of Carbon Intensity Reduction in Malaysia developed in 2013

Green Technology Master Plan developed in 2015
2,509 hectares of mangroves and other suitable species planted for coastal protection
Formulation of the National Water Resources Policy in 2012 to address demand for water in all sectors
in terms of quantity and quality
Inventory of
flora
Documentation and inventory of 10% of 15,000 flowering tree species in Malaysia completed
Management of protected areas
Gazettement of 23,264 hectares of forest as Permanent Reserved Forest under the Central Forest
Spine initiative
Revision of the National Policy on Biodiversity Policy 1998 in line with international biodiversity targets
Governance
of natural
resources
Development of management plans for marine parks in Pulau Sibu-Pulau Tinggi, Johor; Pulau Tioman,
Pahang; and Pulau Redang, Terengganu
Certification of eight Forest Management Units in Peninsular Malaysia covering 4.6 million hectares;
two in Sabah covering 927,563 hectares; and one in Sarawak covering 88,000 hectares
Crocker Range Park in Sabah listed as Man and Biosphere Reserves by UNESCO in 2014
Enforcement
Commencement of the 1Malaysia Biodiversity Enforcement Operation Network involving multiple

enforcement agencies
Financing
mechanisms
Establishment of the National Conservation Trust Fund for Natural Resources in 2014 dedicated for
conservation efforts
Completion of a baseline study on Payment for Ecosystem Services in 2012
A-18
A-19
Glossary
1Gov*Net
1Government Network
ASO
Analogue Switch Off
1M4U
1Malaysia For Youth
ASW
Amanah Saham Wawasan
1MASTER
1Malaysia Skills Training and Enhancement for the Rakyat
ATM
Angkatan Tentera Malaysia
1MOCC
1Malaysia One Call Centre
B40
Bottom 40%
3R
Reuse, Reduce and Recycle

Akademi Binaan Malaysia
B40
households
Bottom 40% households income group
ABM
ABS Bill
Bill of Access to Biological Resources and Benefits Sharing
B5
5% bio-diesel blending
ACCA
Association of Chartered Certified Accountants
B7
7% bio-diesel blending
ADAMAS
Anti-Doping Agency of Malaysia
BBGP
Broadband for General Population
ADSL
Asymmetric Digital Subscriber Line
BDA
Big Data Analytics
AEC
ASEAN Economic Community
BE
Business Enterprise
AES
Automatic Enforcement System
BEC
Bumiputera Economic Community
AHB
Amanah Hartanah Bumiputera
BERD
Research and development by business enterprises
AIGDC
Academia Industry Graduate Development Centre
BETP
Border Economic Transformation Programme
AIM
Amanah Ikhtiar Malaysia
BIM
Building Information Modelling
APEL
Accreditation of Prior Experiential Learning
BLESS
Business Licensing Electronic Support System
APF
Access Pricing Framework
boe
barrels of oil equivalent
APSS
Advanced Passenger Screening System
BOP
Balance of payments
AS1M
Amanah Saham 1Malaysia
bpd
barrels per day
ASB
Amanah Saham Bumiputera
BPKP
Bahagian Pengurusan Kemasukan Pelajar
ASB2
Amanah Saham Bumiputera 2
BR1M
Bantuan Rakyat 1Malaysia
ASD
Alternative Service Delivery
BSN
Bank Simpanan Nasional
ASEAN
Association of Southeast Asian Nations
CBO
Community Based Organisations

Appendix
CCTV
Closed circuit television
DOE
Department of Environment
CD
Communicable diseases
DOSM
Department of Statistics Malaysia
CE
Compensation of Employees
DPPTOA
Dasar Pelupusan dan Pemilikan Tanah Orang Asli
CeIO
Certified Integrity Officers
DRM
Disaster risk management
CEPA
Communications, education and public awareness
DSD
Department of Skills Development
CGPA
Cumulative Grade Point Average
DSM
Demand side management
CI
Creativity Index
DTF
Delivery Task Force
CIAST
Centre for Instructor and Advanced Skill Training
DTT
Digital Terrestrial Television
CIDB
Construction Industry Development Board
E&E
Electrical & electronics
CIP
Corporate Integrity Pledge
ECCE
Early childhood care and education
CITP
Construction Industry Transformation Programme
ECERDC
East Coast Economic Region Development Council
CNG
Compressed natural gas
EDER
East Coast Economic Region
CO2
Carbon dioxide
EDO
entreprenuer development organisation
COE
Centres of Excellence
EEDP
ECER Entrepreneurship Development Programme
COMBAT
Komuniti Bebas Aedes & Tuberculosis
EEVs
Energy efficient vehicles
COMBI
Communication for Behavioural Impact Programme
EGDI
e-Government Development Index
CPTED
Crime Prevention Through Environmental Design
EIA
Environmental Impact Assessment
CREST
Collaborative Research in Engineering, Science & Technology
EKUINAS
Ekuiti Nasional Berhad
CRP
Community Rehabilitation Programme
EMS
Environmental Management Systems
DCA
Department of Civil Aviation
EPU
Economic Planning Unit
DDI
Domestic Direct Investment
ERL
Express Rail Link
DID
Department of Irrigation and Drainage Malaysia
EToU
Enhanced Time of Use
DMZ
District metering zones
EU
European Union
A-20
A-21
EURO
European emission standard for motor vehicle
EURO 4M
Malaysian Emission Standards equivalent to European Emission

Standards 4
GHGs
Greenhouse gases
GIGIH
Program Protg Gigih
GII
Global Innovation Index
EURO 5
European Emission Standards 5
GKL
Greater Kuala Lumpur
e-waste
Electrical and electronic waste
GKL/KV
Greater Kuala Lumpur/Klang Valley
F&B
Food and beverages
GLC
Government-linked company
FAMA
Federal Agriculture Marketing Authority
GLIC
Government-linked investment company
FBO
Faith based organisation
GMBO
Get Malaysia Business Online
FDI
Foreign direct investment
GMOs
Genetically modified organisms
FELCRA
Federal Land Consolidation and Rehabilitation Authority
GMP
Good manufacturing practices
FELDA
Federal Land Development Authority
GNI
Gross National Income
FiT
Feed-in Tariff
GoEx
Going Export
FRIM
Forest Research Institute Malaysia
GOS
Gross Operating Surplus
FT
Federal Territory
GPS
Global Positioning System
FTA
Free Trade Agreement
GreenPASS
Green Performance Assesment System in Construction
FTE
Full Time Equivalent
GRI
Government Research Institute
FWT
Future Workers Training
GST
Goods and services tax
GCC
General consumer code
GTFS
Green Technology Financing Scheme
GCI
Global Competitiveness Index
GTP
Government Transformation Programme
GDC
Government Data Centre
GWh
gigawatt hours
GDP
GWh
Gigawatt hour
GERD
Gross expenditure on research and development
HACCP
Hazard Analysis & Critical Control Points
GGP
Government green procurement
HCFC
Hydrochlorofluorocarbon

Appendix
HDC
Halal Development Corporation
IMPC
Institute of Malaysian Plantation and Commodities
HHI
Hirchmann-Herfindahl Index
IMT-GT
Indonesia-Malaysia-Thailand Growth Triangle
HOTS
Higher Order Thinking Skills
INSEP
Industrial Skills Enhancement Programme
HPS
High Performing Schools
INSKEN
National Institute of Entrepreneurship
HRDF
Human Resources Development Fund

INTAN
HSBB
High Speed Broadband
Institut Tadbiran Awam Negara or National Institute of Public

Administration
HSE
Health, safety and environment
IoT
internet of things
IBR
Incentive Based Regulation
IP
Intellectual Property
IBS
Industrialised Building System
IPP
Independent Power Producer
ICCO
Incentive Coordination and Collaboration Office
ISC
Industry Skills Committee
ICoE
Industry Centres of Excellence
ISO
International Organisation for Standardisation
ICPT
Imbalance Cost Pass-Through
ITE
Institutes of Teacher Education
ICT
Information and Communications Technology
ITU
International Telecommunication Union
IE
industrial estate
IWG
Industry Working Groups
IHE
Institution of Higher Education
JKKK/JKKKP
Jawatankuasa Kemajuan dan Keselamatan Kampung
IHL
Institutes of Higher Learning
JKM
Jabatan Kebajikan Masyarakat
ILB
Industry-Lead Bodies
JKT
Jabatan Kerajaan Tempatan
ILCs
Indigenous and local communities
JPDC
Johor Petroleum Development Corporation
ILMIA
Institute of Labour Market Information and Analysis
JPJKK
Jabatan Pencegahan Jenayah dan Keselamatan Komuniti
ILO
International Labour Organisation
JPM
Jabatan Penjara Malaysia
IM
Iskandar Malaysia
JPN
Jabatan Pendidikan Negeri or State Education Department
iM4U
1Malaysia For Youth
JPNIN
Department of National Unity and Integration
IMD
International Institute for Management Development
KAA
Kelas Aliran Agama
A-22
A-23
KEJARA
Sistem Merit Kesalahan Jalan Raya or Demerit Points System
KeTTHA
Kementerian Tenaga, Teknologi Hijau dan Air

(Ministry of Energy, Green Technology and Water)
LPPKN
National Population and Family Development Board
LRT
Light Rail Transit
LTFMP
Logistics and Trade Facilitation Master Plan (LTFMP)
M&E
Machinery & equipment
M40
households
Middle 40% households income group
KL
Kuala Lumpur
KLIA
Kuala Lumpur International Airport
KLIA2
Kuala Lumpur International Airport 2
km
kilometre
MaGIC
Malaysian Global Innovation and Creativity Centre
KOSPEN
Program Komuniti Sihat Perkasa Negara
MAI
Malaysian Automotive Institute
KPI
Key performance indicator
MAMPU
Modernisation and Management Planning Unit
KPKT
Ministry of Urban Wellbeing, Housing and Local Government
MARA
Majlis Amanah Rakyat
KR1M
Kedai Rakyat 1Malaysia
MARDI
Malaysian Agricultural Research and Development Institute
KTMB
Keretapi Tanah Melayu Berhad
MATRADE
Malaysia External Trade Development Corporation
kV
kilovolt
MBOT
Malaysia Board of Technologists
KVMRT
Klang Valley Mass Rapid Transit
Mbps
Megabits per second
kW
kilowatt
MCMC
Malaysian Communications and Multimedia Commission
KWAPM
Kumpulan Wang Amanah Pelajar Miskin
MDeC
Multimedia Development Corporation
LFA
Logical Framework Approach

MEB
The Malaysia Education Blueprint 2013-2025 (Preschool to PostSecondary Education)
LGM
Malaysian Rubber Board (8-25)
LINUS
Literacy and Numeracy Screening
MEB (HE)
Malaysia Education Blueprint 2015-2025 (Higher Education)
LKIM
Fisheries Development Authority of Malaysia
MEPS
Minimum Energy Performance Standards
LLL
Lifelong Learning
MESEJ
Agropolitan, Ladang Masyarakat, Mini Estet Sejahtera
LMIDW
Labour Market Information Data Warehouse
MESI
Malaysian Electricity Supply Industry
LNG
liquefied natural gas
MFP
Multi-Factor Productivity

Appendix
MIDA
Malaysian Investment Development Authority
MPOB
Malaysian Palm Oil Board (8-25)
Mini-RTC
Mini Rural Transformation Centre
MPPN
Majlis Penasihat Petroleum Negara
MITI
Ministry of International Trade and Industry
MQA
Malaysian Qualifications Agency
MQF
Malaysian Qualification Framework
MKN
Majlis Keselamatan Negara (National Security Council)

MRA
Mutual Recognition Agreement
MKRA
Ministerial Key Result Area
MRIA 1
new aerobic paddy variant
MLD
Million litres per day
MRO
Maintenance, repair and overhaul
MMP
Malaysian Meister Programme
MRT
Mass rapid transit
MMS
Multimedia messaging services
MSPO
Malaysian Sustainable Palm Oil
mmscfd
million standard cubic feet per day
MTDC
Malaysia Technology Development Corporation
MMT
Methadone Maintenance Therapy
MTJDA
Malaysia-Thailand Joint Development Area
MNC
Multi-national company
mtpa
million tonnes per annum
Mobile CTC
Mobile Community Transformation Centre
MUET
Malaysia University English Test
MoE
Ministry of Education
MW
Megawatts
MoEGTW
Ministry of Energy, Green Technology and Water
MWI
Malaysian Wellbeing Index
MoF
Ministry of Finance
MyBM
MyBeautiful Malaysia
MoHR
Ministry of Human Resources
MyCOID
My Corporate Identity
MoNRE
Ministry of Natural Resources and Environment
MyGAP
Malaysian Good Agricultural Practices
MOOCs
Massive Open Online Courses

MyHome
Youth Housing Scheme and Private Affordable Ownership

Housing Scheme
MoT
Ministry of Transport
MPC
Malaysia Productivity Corporation
MySpeKK
Sistem Penarafan Kolej Komuniti
MPI
Multidimensional poverty index
MyWIN
Women Innovation Academy
MPIC
Ministry of Plantation Industries and Commodities
NAP
National Automotive Policy
A-24
A-25
NATC
National Agricultural Training Council
OBA
Outcome-based approach
NBOS
National Blue Ocean Strategy
OBB
Outcome-based budgeting
NCD
Non-communicable diseases
OECD
Organisation for Economic Co-operation and Development
NCER
Northern Corridor Economic Region
OGSI
Oil and gas services industry
NCR
Native Customary Rights
ORRR
Overall Resource Replenishment Ratio
NDTS
National Dual Training System
OSC
One Stop Centre
NEC
National Export Council
PAAB
Perbadanan Aset Air Berhad
NEM
Net energy metering
PADU
Education Performance and Delivery Unit
NFPEs
non-financial public enterprises
PAP
Pre-approved plans
NGO
Non-governmental organisation
PBR
Program Bantuan Rumah
NHCDC
National Human Capital Development Council
PCS
Port Community System
NKEA
National Key Economic Areas
PDRM
The Royal Malaysian Police
NKRA
National Key Result Areas
PE
Population Equivalent
NOSS
National Occupations Skills Standards
PEMANDU
The Performance Management and Delivery Unit
NPC
National Productivity Council

PEMUDAH
Pasukan Petugas Khas Pemudahcara Perniagaan or Special

Task Force to Facilitate Business
PERHILITAN
Department of Wildlife and National Parks Peninsular Malaysia
NPDIR
National Policy on the Development and Implementation of

Regulations
NRW
Non-Revenue Water
PETRONAS
Petroliam Nasional Berhad
NSC
National Security Council
PHB
Pelaburan Hartanah Berhad
NSRC
National Science Research Council
PhD
Doctor of Philosophy
NSW
National Single Window
PIC
Pengerang Integrated Complex
NUCC
National Unity Consultative Council
PIPC
Pengerang Integrated Petroleum Complex
NWI
National Wage Index
PISA
Programme for International Student Assessment

Appendix
A-26
PlatCOM
PlatCOM Ventures Sdn Bhd
PV
Photovoltaic
PLGDP
Pusat Latihan Guru dalam Perkhidmatan
PVR
Police Volunteer Reserve
PLI
Poverty Line Income
PWD
Persons with disabilities
PNB
Permodalan Nasional Berhad
QoS
Quality of Service
PolyRate
Polytechnic Rating System
QS
Quacquarelli Symonds
PPA
Power Purchase Agreement
R&D
Research and development
PPA1M
1Malaysia Civil Servants Housing Programme (PPA1M)
R&D&C
Research, development and commercialisation
PPIC
PETRONAS Petroleum Integrated Complex
R&D&C&I
Research, development, commercialisation and innovation
PPR
Program Perumahan Rakyat
RAPAT
Rondaan Awam Polis dan Anggota Tentera
PPRN
Public-Private Research Network
RAPID
Refinery and Petrochemicals Integrated Development
PR1MA
Perumahan Rakyat 1Malaysia
RAS
Rural air service
PRC
Peoples Republic of China
RBI
Rural Basic Infrastructure
PRDM
Polis DiRaja Malaysia
RDA
Regional Development Authority
Program 3K
Program Kepimpinan, Kemahiran dan Keusahawanan
RDI
Road Development Index
PSC
Public sector comparator
RE
Renewable energy
PSD
Public Service Department
REDD
Reducing Emissions from Deforestation and Forest Degradation
PSN
Pusat Data Negara
REIT
Real estate investment trust
PSO
Public Service Obligation
RELA
People Volunteer Corps or Ikatan Relawan Rakyat Malaysia
PTA
Parent-Teacher Association
RGT
Re-gasification Terminal
PTP
Port of Tanjung Pelepas
RGT-1
Re-gasification Terminal (RGT-1)
Perbadanan Tabung Pendidikan Tinggi Nasional or Higher

Education Fund Foundation
RIA
Regulatory Impact Assessment
PTPTN
RISDA
Rubber Industry Smallholders Development Authority (8-26)
RISE
Research Incentive Scheme for Enterprise
PUNB
Perbadanan Usahawan Nasional Berhad
A-27
RM
Ringgit Malaysia
SEF
Services Export Fund
RMA
Research management agency
SESB
Sabah Electricity Sdn Bhd
RMR1M
Rumah Mesra Rakyat 1Malaysia
SIA
Social Impact Assessment
RMT
Rancangan Makanan Tambahan
SIP
SME Investment Partner
RON
Research Octane Number
SIRIM
Standards and Industrial Research Institute of Malaysia
RPL
Recognition of Prior Learning
SJJB
Skim Jejak Jaya Bumiputera
RPS
Rancangan Penempatan Semula
SKK1M
Skim Kemahiran dan Kerjaya 1Malaysia
RSOG
Razak School of Government
SKM
Suruhanjaya Koperasi Malaysia
RT
Refrigeration Tonnes
SLA
Service Level Agreement
RTC
Rural Transformation Centre
SME
Small and medium enterprises
RUMAWIP
Rumah Wilayah Persekutuan
SME Corp
SME Corporation Malaysia
SABK
Sekolah Agama Bantuan Kerajaan
SMOKU
Sistem Maklumat Orang Kurang Upaya
SAIDI
System Average Interruption Duration Index
SMS
Short messaging system
SAVE

SPAN
Suruhanjaya Perkhidmatan Air Negara or National Water

Services Commission
SBST
Stage Bus Service Transformation
SCORE
SPKPN
Sistem Profil Kampung Peringkat Nasional
SCP
Sustainable Consumption and Production
SPM
Sijil Pelajaran Malaysia
SDC
SPPII
Sistem Pemantauan Projek II or Project Monitoring System
SDF
Skills Development Fund
SRS
Voluntary Patrolling Scheme
SEA
Southeast Asia
SSGP
Sabah-Sarawak Gas Pipeline
SEB
Sarawak Energy Berhad
SSN
Social Safety Net
SEDA
Sustainable Energy Development Authority
SSP
Police Volunteer Reserve
SEDIA
Sabah Economic Development and Investment Authority
Steinbeis
Steinbeis Malaysia Foundation

Appendix
A-28
STEM
Science, technology, engineering and mathematics
UCSF
University College Sabah Foundation
STOL
Short take-off and landing
UN
United Nations
STP
Sewerage Treatment Plant
UNDP
United Nations Development Programme
SUBB
Sub-Urban Broadband
UNESCO
United Nations Educational, Scientific and Cultural Organization
SWCorp
Solid Waste Management and Public Cleansing Corporation
UNFCCC
United Nations Framework Convention on Climate Change
TASKA
Taman Asuhan Kanak-kanak
UPEB
Unit Pemerkasaan Ekonomi Bumiputera
Tbps
Terabytes per second
US
United States of America
tcf
trillion cubic feet
USD
United States Dollar
tCO2eq
tonnes of carbon dioxide equivalent
UTC
Urban Transformation Centre
TCP
Technology Commercialisation Platform
VIC
Vocational Instructor Certifications
TEKUN
Tabung Ekonomi Kumpulan Usaha Niaga
VLE
Virtual learning environment
TERAJU
Unit Peneraju Agenda Bumiputera
VM
Value management
TEU
Twenty-footer equivalent unit
VSAT
Very Small Aperture Terminal
TFP
Total Factor Productivity
WCY
World Competitiveness Yearbook
TI
Transparency International
WJP
World Justice Project Rule of Law Index
TIMMS
Trends in Mathematics and Science Study
WSIA
Water Services Industry Act
TKPM
Permanent Food Production Zones
WTP
Water Treatment Plant
TNB
Tenaga Nasional Berhad
WTTP
Workers Technical Transformation Programme
TOD
Transit-oriented development
YIM
Yayasan Inovasi Malaysia
TP1M
Tabung Perumahan 1Malaysia
YPPB
Yayasan Peneraju Pendidikan Bumiputera
TVET
Technical and vocational education and training
U3A
University of The Third Age
UBBL
Uniform Building By-Laws
A-29
Lists of Strategy Papers
Chapter 2
Strengthening macroeconomic
resilience for sustained growth
Strategy Paper 1: Unlocking the potential of productivity
Chapter 3
Enhancing inclusiveness towards an
equitable society
Strategy Paper 2: Elevating B40 households towards a middle class society

Strategy Paper 3: Enhancing Bumiputera Economic Community (BEC) opportunities to increase wealth

ownership
Strategy Paper 4: Transforming rural areas to uplift wellbeing of rural communities
Chapter 4
Improving wellbeing for all
Strategy Paper 5: Achieving universal access to quality healthcare

Strategy Paper 6: Providing adequate and quality affordable housing
Strategy Paper 7: Creating safer living space and secure environment
Chapter 5
Accelerating human capital
development for an advanced
nation
Strategy Paper 8: Labour market for an advanced nation
Chapter 6
Pursuing green growth for
sustainability and resilience
Strategy Paper 11: Climate resilient development
Chapter 7
Strengthening infrastructure
to support economic
expansion
Strategy Paper 13: Providing seamless transportation system
Strategy Paper 9: Transforming technical and vocational education and training to meet industry

demand
Strategy Paper 10: Transforming education system
Strategy Paper 12: Growth through sustainable use of natural resources
Strategy Paper 14: Develop integrated logistics and efficient trade facilitation mechanism
Strategy Paper 15: Driving ICT in the knowledge economy
Strategy Paper 16: Ensuring quality and efficient water services industry
Strategy Paper 17: Sustainable usage of energy to support growth
Chapter 8
Re-engineering economic
growth for greater prosperity
Strategy Paper 18: Transforming services sector

Strategy Paper 19: Energising manufacturing sector
Strategy Paper 20: Driving modernisation in agro-food
Strategy Paper 21: Translating innovation to wealth

Appendix
A-30
The Eleventh Malaysia Plan is anchored on the rakyat. The multi-colored people icons personify the multi-faceted nature that makes Malaysia
unique. The six icons represent the six strategic thrusts of the Eleventh Malaysia Plan.
Enhancing
inclusiveness towards
an equitable society
Inclusivity is a key principle in Malaysias development agenda to ensure that the fruits of growth
and development are shared across all citizens regardless of ethnicity, socio-economic status and
geographic location. The icon shows that uplifting the wellbeing of the rakyat will enable them to move
forward hand-in-hand towards the shared ambition of Vision 2020.
Improving wellbeing
for all
The holistic development in the physical, psychological, social, and spiritual sense is core to the quality
of life and positive wellbeing of Malaysians. The icon represents upward mobility and productivity of
individual households that will strengthen social cohesion and national unity.
Accelerating human
capital development for
an advanced nation
Human capital development is an essential enabler for Malaysia to achieve an advanced nation. The
icon represents the cultivation of both the hearts and minds of the rakyat to support the transition
towards a knowledge economy that is competitive on a global scale.
Pursuing green growth

for sustainability and
resilience
Green growth is essential for the continued competitiveness and resilience of the nation. This
represents a paradigm shift that challenges the conservative view of grow first and clean up later
towards one where sustainability is core to continued development that safeguards the future. The icon
of the new leaf illustrates that resilient growth is anchored upon a closer connection to the land and
environment.
Strengthening
infrastructure to
support economic
expansion
Infrastructure development is the foundation of social inclusion, economic expansion and growth.
It ensures that the rakyat has access to essential amenities and services such as transport,
communications, electricity and clean water. The icon illustrates the critical role of infrastructure as an
integrator for the country that will drive seamless connectivity of people and goods.
Re-engineering growth
for greater prosperity
As Malaysia transitions towards an advanced economy, the structure of the economy will shift towards
knowledge-intensive activities across all sectors. The icon represents the various stakeholders across
the public and private sectors playing their part to re-engineer the ecosystem as a whole to accelerate
economic growth towards greater prosperity for all.
A-31
Index
i-THINK
8-34
Back to Community
3-25
Back to work
3-25
farm to table
3-34
1BestariNet
5-27
1Dana Portal
8-31, 8-33
1Gov*Net
7-8
1Malaysia
4-13, 4-21
1Malaysia Biodiversity Enforcement Operation Network
6-8, 6-21
1Malaysia Civil Servants Housing Programme (PPA1M)
4-7
1Malaysia One Call Centre (1MOCC)
9-7
1Malaysia Skills Training and Enhancement for the Rakyat 5-18

(1MASTER)
6Rs
10-12
A
affordable housing
Aged 4+ to 5+
4-6, 4-7, 4-10, 4-12,

4-13, 4-16, 4-17, 4-18
5-8
Agensi Inovasi Malaysia
8-11
Agricultural cooperatives
8-24
Agricultural financing
8-24, 8-26
Agricultural research
8-25, 8-26
agriculture
3-19
agriculture sector
2-7, 2-21
Agropolitan
3-19
Agropreneur
8-25
alternative service delivery
9-13, 9-14
Alternative water sources
7-35,
amalgamation
3-18, 3-34
Amanah
10-10
Analogue Switch Off
7-9,7-31
academia
8-33
angel investor
8-33
Accelerating Investment in Regional Corridors
3-31
Angkatan Tentera Malaysia (ATM)
4-8, 4-19
Access
5-10, 5-26,
anti-competitive practices
8-10
Access Pricing Framework
7-27, 7-29
Anti-Smuggling Unit
4-19
Access to Biological Resources and Benefits Sharing

(ABS)
accountability
6-23, 6-24
applied research
8-12
ASEAN Economic Community (AEC)
2-21, 8-10
aspirational
3-16, 3-17,
Association of Southeast Asian Nations (ASEAN)
2-7, 2-21, 2-22
9-2, 9-8, 9-9, 9-11,

9-12, 9-13, 9-16, 9-17,
9-23
Accreditation of Prior Experiential Learning (APEL)
5-24
Automated Enforcement System (AES)
4-20
achievement gaps
5-8
autonomy
5-8, 5-26, 5-25, 5-29
actors of change
3-25
Average recurrence interval
6-27
Adaptation
awareness programmes
4-17, 4-18, 3-18, 3-20,

3-26
Adoption
6-4, 6-6, 6-9, 6-12,

6-14, 6-25, 6-28
3-15, 3-16, 3-17, 3-19
advanced and inclusive nation
2-13
advanced nation
3-17
B15 programme
7-38,
Advanced reproductive technology
6-21
B40 households
Advocacy
3-26
aerospace and defence
3-34
3-1, 3-2, 3-5, 3-6, 3-15,

3-16, 3-17, 3-18, 3-19,
3-20, 3-21, 3-23, 3-36,
affordable homes
3-9, 3-21, 3-33

Appendix
B7 programme
7-38
Bachelor
5-10, 5-11
Bahagian Pengurusan Kemasukan Pelajar (BPKP)
5-6
baitulmal
4-7
Bakun Hydroelectric
7-10
balance of payments (BOP)
2-4, 2-8, 2-22
Balanced Graduates
5-26, 5-28
balanced growth
3-1
Bank Simpanan Nasional (BSN)
3-8, 3-29
banking services
3-8
Bantuan Rakyat 1 Malaysia (BR1M)
3-6, 3-8, 5-29
Belia Bestari
3-7
Better Access And Quality
5-0, 5-4, 5-8
Better Student Outcome

Big Data Analytics
5-0, 5-2, 5-15, 5-20,

5-25, 5-30
9-13, 9-15
Biodiesel
Biodiversity
Bumiputera-based Entrepreneur Development

Organisations (EDOs)
Bumiputera-based institutions
3-33, 3-35
bureaucracy
9-9, 9-13
business ecosystem
3-34
business enterprises (BEs)
8-12
business model
8-11
A-32
3-33
C
Carbon dioxide (CO2)
6-5, 6-19, 6-25
Carbon footprint
7-39
caregivers
5-27
carve-out policy
3-34
Central Forest Spine
6-2, 6-4, 6-7
central repository database
8-17
Central Spine Road
8-19
7-14
Centre for Instructor and Advanced Skill Training (CIAST)
5- 8
6-7, 6-8, 6-9, 6-10,

6-11, 6-12, 6-13, 6-14,
6-21, 6-24, 6-28, 6-30
Centre of Excellence (COE)
5-24, 8-17
centre of excellence for disability training and research
3-27
Certified farms
8-24
Child Act
3-26
childcare
3-26, 5-18, 5-27
children
3-7, 3-24, 3-26
Chinese
3-18
Chinese new village
3-6
Citation
5-4, 5-10, 5-12
cities
8-35
citizen-centric
9-2, 9-5, 9-11, 9-26
civil engineering
8-9
claw-back funding mechanism
3-33
Climate change
close circuit television (CCTV)
6-1, 6-2, 6-4, 6-5, 6-6,

6-9, 6-10, 6-11, 6-12,
6-13, 6-14, 6-21, 6-25,
6-26, 6-28, 6-3
4-8, 4-19
cloud
9-10, 9-14, 9-15
Biomass
7-11, 7-39
Biotechnology
6-23
Black Spot Whitening Initiative
4-8
Blackspot Mitigation Programme
7-20
Block Grants
5-29
Border Economic Transformation Programme (BETP)
3-31
border regions of Malaysia
3-31
bottom 40%
2-10
Bridging Programme
3-35
Broadband
7-2, 7-4, 7-6,7-8, 7-12
Broadband for General Population
7-8
Broader access
5-29
building information modelling (BIM)
8-9
Bumiputera corporate equity ownership
3-11
Bumiputera Economic Community (BEC)
3-11, 3-35
A-33
Cluster-based approach
8-25
Construction
8-20
Coal
7-38,
Construction Industry Development Board (CIDB)
5-8, 5-18, 5-23
Coastal erosion
6-6, 6-18
Consumer protection
7-27
co-creation
9-15
Consumers
3-20,
commercial properties
3-11, 3-20
cooperative
3-19, 3-20, 3-34, 3-35
commercialisation
8-25
Corridor Development Authorities
3-29
committed investment
3-31
cost of doing business
2-11, 2-16
communal and individual land ownership
3-19
Cost of living
3-17, 3-20, 3-24
communicable disease
4-6, 4-15
cost-effective
9-1, 9-22
Communication and Multimedia Act
7-29
courier
8-10
Communication for Behavioral Impact Programme

(COMBI)
communications
4-6
creativity
3-8, 9-21
Creativity Index
2-23
communications technology (ICT)
8-5
crime index
4-4, 4-8, 4-12, 4-18
Communications, education and public awareness

(CEPA)
community
6-12
8-30, 8-34
Crime Prevention through Environmental Design (CPTED) 4-19

crime rates
3-17, 4-1, 4-18
cross-border crime
4-18, 4-19
crowd funding
3-33
crowdsourcing
9-16
crude oil
Cumulative Grade Point Average (CGPA)
2-7, 2-8, 2-9,2-13, 2-21,

7-10, 7-11
5-10, 5-11
Cyber infrastructure
5-29
CyberSAFE in Schools
4-19
CyberSecurity Malaysia
4-19
community and social-based enterprises
3-21, 3-24, 3-25, 3-27,

3-28, 3-29, 5-9, 5-25,
5-28
3-34
Community Involvement
7-39
Community participation
community policing
4-1, 4-8, 4-15, 4-22,

4-23
4-8, 4-13, 4-18, 4-19
Community Rehablitation Programme (CRP)
4-8, 4-19
community-based organisations (CBOs)
3-24, 3-27, 8-34
Compensation of Employees (CE)
2-10, 2-11
Competition Act 2010
8-10
Compressed Natural Gas (CNG)
6-19,
Condensate
7-10, 7-11
conducive
Conduit of Innovation
3-24, 3-25, 3-27, 3-28,

3-29
5-25, 5-29
day care centres for elderly
9-7,9-9, 9-10, 9-13,

9-14, 9-23, 9-25
3-26
Connectivity
3-30, 3-31
Deforestation
6-21, 6-30
Conservation
6-4, 6-5, 6-7, 6-8, 6-14,

6-18, 6-21, 6-24, 6-28,
6-30
8-20
delivery system
3-17, 3-28
Demand side management
6-9, 6-10, 6-11, 6-14,

6-15, 6-18
5-17
conservation and preservation
D
Dams
6-27
Dasar Pelupusan dan Pemilikan Tanah Orang Asli

(DPPTOA)
data sharing
3-19
demand-based information

Appendix
A-34
demand-driven research
8-31
economic agglomeration
8-35
demographic dividend
5-7,
economic fundamentals
2-1, 2-5, 2-14
Deparment of Community College
5- 24
economic opportunities
3-16, 3-28, 3-36
Department of Immigration Malaysia
4-19
Economic Stimulus Package
2-6
Department of Irrigation and Drainage Malaysia (DID)
6-27
economies of scale
3-18, 3-19, 3-30, 3-34
Department of Skills Development (DSD)
5-6, 5-19, 5-22, 5-24
Ecosystems
6-8, 6-21, 6-28
derivatives
8-8
Ecotourism
8-20
development and growth stage
3-11
education
development expenditure
2-8, 2-16, 2-23
Diesel
7-37, 7-38
digital inclusion
3-8
Education Performance and Delivery Unit (PADU)
3-1, 3-2, 3-11, 3-15,

3-16, 3-17, 3-18, 3-19,
3-25, 3-26, 3-34, 8-19,
8-34, 8-39
5-9
Digital Infrastructure
7-15
eKasih
3-21, 5-10, 5-26
Digital infrastructure planning
7-27, 7-29
e-Kasih
5-29
digital platform
9-25
elderly
3-8, 3-24, 3-26, 3-27
Digital Terrestrial Television
7-27, 7-31
electrical and electronics (E&E)
2-7, 2-8, 2-21, 2-22
disadvantaged groups
3-18
Electrified Double-Track Railway
7-7, 8-9, 8-39
disaggregated data
3-26
Disaster Risk Management (DRM)
2-2, 2-11, 2-13, 3-2,

3-11, 3-15, 3-16, 3-33,
3-36
Eleventh Plan
Distribution
6-2, 6-8, 6-9, 6-11,

6-12, 6-13, 6-14, 6-25,
6-26
7-37
distribution of wealth
8-15
Divestment
3-33
3-11, 3-15, 3-16, 3-33,

3-36
4-1, 4-2, 4-11, 4-12,
4-13, 4-20, 4-24
2-5, 2-13, 2-14, 2-15
domestic demand
2-13, 2-24
domestic direct investment (DDI)
2-16
domestic economy
2-5, 2-15
Dropout
5-28
E
eAduan system
3-20
emergency services
emerging market and developing economies
Emission
employability
6-1, 6-3, 6-5, 6-6,

6-10, 6-11, 6-16, 6-17,
6-18, 6-19, 6-25, 6-30
3-9
employment
8-5, 8-6, 8-8
Empowered Governance
5-26
Endangered species
6-21
Energy efficient
early childcare and childhood education (ECCE)
3-25, 3-26
Early Childhood Care and Education (ECCE)
5-25, 5-27
Energy efficient vehicles (EEVs)
6-2, 6-5, 6-6, 6-12,

6-15, 6-19
6-6, 6-15, 6-19
Earned Autonomy
5-25, 5-26, 5-29
Energy mix
6-9, 6-15, 6-16, 6-18
ease of doing business
8-29
Energy Supply
7-10, 7-11, 7-36
Ecological assets
6-0, 6-2, 6-4, 6-5, 6-7
Enforcement Agencies Intergrity Commision
4-18
e-commerce
3-19, 7-23, 7-26, 8-29
A-35
engagement
9-2, 9-7, 9-8, 9-9, 9-13,

9-15, 9-16, 9-21, 9-23,
9-25
5-28
Faculty Member
2-6, 2-11, 2-16, 3-10,

3-20
9-4, 9-11, 9-12, 9-13,
9-18, 9-26
5-28
family
3-24
Family Wellbeing Index
3-24
Family-centred support systems
10-7
Federal Government debt
2-9
fee assistance
5-8
6-13
female
3-25
8-10
female labour force participation rate
5-3, 5-6
e-Payment
3-19
fertility rate
5-7
equality of opportunity
3-2
fibre optic
7-2, 7-5, 7-8, 7-27
equitable
3-1, 3-15, 3-36
finance and insurance
8-5
Equity
5-10, 5-26
financial
equity ownership
3-33
eRezeki
3-19
Financial Sustainability
3-11, 3-18, 3-21, 3-24,

3-25, 3-29, 3-32, 3-33
5-25, 5-26, 5-29
ethics
financial system
8-2
fiscal deficit
2-4, 2-9
ethnicity
4-2, 4-11, 4-13, 4-21,

4-22
3-1, 3-16, 3-17
fiscal position
e-trading
8-18
EURO/ EURO
7-37, 7-38
2-11, 2-12, 2-14, 2-23,

2-24
7-29
European Union (EU)
2-7
exclusion
3-21
Flood mitigation
exit policy
Flora and fauna
experimental
3-21, 3-34, 9-2, 9-9,

9-17, 9-18
8-33
9-7, 9-10, 9-11, 9-12,

9-19, 9-26
6-2, 6-3, 6-6, 6-11,
6-12, 6-25, 6-27, 6-29
6-21, 6-22
foreign direct investment (FDI)
2-6, 2-16, 2-22
experimental research
8-12
foreign equity
8-10
Exploration
7-10, 7-38
foreign exchange earnings
8-6
export
foreign patients
8-6
foreign Workers
5-2, 5-13, 5-16, 5-18
Exports
2-2, 2-5, 2-7, 2-8, 2-11,

2-12, 2-13, 2-14, 2-16,
2-22
7-20, 7-25, 7-26, 9-20
Forest
Extension services
8-24
6-2, 6-4, 6-5, 6-6, 6-7,

6-12, 6-21, 6-22, 6-24,
6-25, 6-27, 6-28, 6-30
English Proficiency
Enrolment
Enterprise Innovation
5-1, 5-4, 5-8, 5-10,

5-11, 5-14, 5-19, 5-24,
5-27, 5-28
8-31, 8-33
enterprise level
8-31
Entrepreneur development organisations (EDOs)
3-16
entrepreneurship
3-25, 3-27
Environmental Quality (Control of Petrol and Diesel

Properties) Amendment Regulations 2013
Environmental Quality Act 1974
7-38
environmental services
Facilitation Fund
facilitator
Fixed broadband price

flexible

Appendix
A-36
Franchise
8-18
government efficiency
9-5, 9,10, 9-11
Free Trade Agreements (FTAs)
8-18, 8-19
Government Funding
5-25, 5-29
frontline agencies
9-13, 9-14, 9-15, 9-16,

9-18
Government green procurement (GGP) 6-12
6-15, 6-17
Government Transformation Programme (GTP)
9-8
full employment
5-1, 5-3, 5-5
Government-Linked Companies
2-23
Full-Time Equivalent (FTE)
8-12
Government-Linked Companies (GLCs)
3-20, 3-33, 3-35
fund
8-11
government-linked investment companies (GLICs)
3-11, 3-20, 3-33, 3-35
fundamental research
8-33
government-to-government
8-28
funder
8-11
Graduate Employability
5-6, 5-11, 5-19, 5-20
funding
8-11
Graduate Employability Trace Study
5-11
Future Workers Training (FWT)
5-24
grants
5-8
Future-proof economy
10-11
Green building
10-12
Green Building Index
6-16
Green certification
6-15, 6-16
Green growth
6-1, 6-2, 6-4, 6-6, 6-8,

6-9, 6-11, 6-12, 6-13,
6-14, 6-15, 6-16, 6-17,
6-18, 6-20, 6-22, 6-24,
6-26, 6-28, 6-30
6-9, 6-15
G
Gaining International Recognition
5-29
game changer
3-16
Gas
7-10
Gas Supply Act 1993
7-37
GDP per capita
2-21
Green markets
Generation mix
7-39
6-23
Genovasi
8-34
Green Performance Assesment System in Construction

(GreenPASS)
Green Technology Financing Scheme
6-15
Genetically modified organisms (GMOs)

Geospatial
6-12, 6-13
Greenhouse gases (GHGs)
German-Meister Programme (GMP)
5-23
6-1, 6-3, 6-5, 6-2, 6-10,

6-11, 6-16, 6-17, 6-25
GIGIH
8-11
Gross Domestic Product (GDP)
Gini coefficient
3-1, 3-2, 3-5, 3-15
Global champions
10-11
Global Competitiveness Index (GCI).
8-11
2-1, 2-3, 2-4, 2-5, 2-6,

2-7, 2-8, 2-9, 2-10,
2-11, 2-12, 2-13, 2-14,
2-15, 2-16, 2-17, 2-21,
2-22, 2-23, 8-5
Global Innovation Index (GII)
8-11
gross expenditure on research and development (GERD)
8-11
Global Prominence
5-26, 5-29
Gross National Income (GNI)
Globalised Online Learning
5-26
GNI per capita
2-6, 2-11, 2-14
Gross Operating Surplus (GOS)
2-6, 2-11, 2-12, 2-14,

2-22
2-10
Goods and Services Tax (GST)
2-6, 2-9, 2-23
growth nodes
3-31
growth with equity
3-15
governance
government data centre
2-15, 5-25, 5-26, 5-28,

8-16
9-14
6-6
A-37
halal certification
8-18
halal industry
8-18
halal ingredients
8-19
healthcare
3-17, 3-34, 8-20
healthcare travel
8-20
high paying jobs
3-11, 3-16, 8-15
high performance
4-2, 4-9, 4-11, 4-23
High Performing Schools (HPS)

High Speed Broadband
Improving The Quality Of Education

Incentive Based regulation
5-0, 5-13, 5-14, 5-15,

5-25
7-37, 7-39, 7-41
incentives
2-11, 2-16, 2-18
inclusive
inclusive society
2-10, 2-11, 2-13, 2-14,

2-15, 2-17, 2-23, 3-5,
3-11, 3-31
8-15
5-8
inclusiveness
8-38
income distribution
Higher Education
2-16, 7-1, 7-8, 7-15,

7-27
5-10, 5-25
2-1, 2-13, 3-1, 3-5,

3-36
3-2, 3-15
Higher Order Thinking Skills (HOTS)
5-10, 5-27, 8-11
Indigenous and local communities (ILCs)
higher value-added services
8-6
high-income economy
8-15
high-skilled jobs
5-13, 5-16
high-yield tourism
8-20
Hirchmann-Herfindahl-Index
7-38
homeownership
4-6, 4-13, 4-24
hotspots
4-1, 4-8, 4-19
household income
Household Income and Expenditure Survey
2-10, 2-11, 2-14, 2-15,

2-21, 2-24, 3-11, 3-15,
8-1
2-5
Household Income Survey
2-5
HRDF Act
5-4, 5-8, 5-14
Human Resource Development Fund (SRDF)
5-8, 5-23, 5-24
human trafficking
4-19
income inequality
Industrial Skills Enhancement Programme (INSEP)
6-9, 6-14, 6-21, 6-23,

6-24
5-24
Industrial Training
5-28
industrialised building system (IBS)
8-28
Industry Attachments
5-28
industry players
8-18
Industry Practitioner
5-28
Industry Skills Committee (ISC)
5-17, 5-19
Industry Working Group
5-17
Industry-Lead Bodies
5-6
infant mortality rate
4-3, 4-6
inflation
2-1, 2-4, 2-5, 2-9, 2-10,

2-13, 2-14, 2-23, 2-24,
8-5
information and telecommunications technology
2-21
innovation
8-18
Innovation Ecosystem
5-26, 5-29
3-19, 3-28, 3-29
Institut Keusahawanan Negara
5-23
ICT Satellite Account
8-6
Institut Latihan Perindustrian
5-6
ICT trade and services
8-6
Institute of Higher Learning (IHL)
8-34
Imbalance Cost Pass-Through
7-41
Institutional Excellence
imbalances in regional economic opportunities
3-11
imports
2-8, 2-13, 2-16, 2-22
5-0, 5-2, 5-14, 5-15,

5-25, 5-29
5-6, 5-12, 5-2, 5-25,
5-28, 5-29
5-28
I
ICT
Institutions of Higher Education (IHE)

Integrated Cumulative Grade Point Average

Appendix
A-38
integrated database
4-16, 4-17
Kesalahan Jalan Raya (KEJARA)
4-20
Integrated Flood Management
6-27, 6-29
Key Performance Indicator (KPI)
Integrated River Basin Management
6-27
Integrated Water Resource Management
6-27
2-15, 9-6, 9-8, 9-10,

9-16, 9-17, 9-18, 9-19,
9-23
Intellectual property (IP)
8-19
Khazanah Nasional Berhad
2-9
Intensifying the Promotion
5-29
Klang Valley Mass Rapid Transit (KVMRT)
2-6, 2-16, 7-7, 7-17, 8-9
inter- and intra-regional
3-29
Klinik 1Malaysia
4-6
intermediaries
8-21
Klinik Bergerak 1Malaysia
4-6
international average
5-14
knowledge creators
8-11
international standards
8-29
knowledge-intensive
5-16, 5-18, 8-15
International to last mile connections
7-27
krste.my
8-33
international trade
2-7, 2-12, 2-21
KTMB transformation
7-17
8-2, 8-16
Kuala Lumpur International Airport 2 (KLIA 2)
2-6, 8-9, 8-33
internship programmes
8-17
Investments
8-23
investor facilitation
3-31
Islamic finance
8-18
J
Jabatan Kebajikan Masyarakat (JKM)
5-27
Jabatan Pencegahan Jenayah dan Keselamatan

Komuniti (JPJKK)
Jabatan Pendidikan Negeri (JPN)
4-19
Jabatan Penjara Malaysia
4-8
Jawatankuasa Kemajuan dan Keselamatan Kampung
3-29
job creation
8-6
Job creator
5-28
Johor Petroleum Development Corporation
7-37
Joint billing
7-33
Joint Development Area
7-37
5-9, 5-25, 5-28
K
K9 School
3-18
K9 Schools
5-27
Kelas Aliran Agama (KAA)
5-27
L
labour force
5-3, 5-5, 5-18
labour market
Labour market efficiency
2-5, 2-9, 2-15, 2-16,

2-21, 5-1, 5-2, 5-5,
5-15, 5-16, 5-17, 5-18,
5-23, 5-30
5-13, 5-15, 5-16
labour market information
5-5, 5-17
labour market operation
5-13, 5-16, 5-17
labour productivity
land bank
2-9, 2-11, 2-14, 2-17,

2-19, 2-23, 5-2, 5-10,
5-14, 5-15, 5-16
4-16, 4-17
Last mile connectivity
7-18, 7-23, 7-25
law enforcement
4-2, 4-10, 4-13, 4-18
lean
9-1, 9-13, 9-17, 9-26
liberalisation
8-10
Liberalisation and Regulatory Reform
8-10
Life cycle costing approach
7-20
life expectancy
4-1, 4-3, 4-5, 4-6
Lifelong learning (LLL)
2, 5-2, 5-4, 5-5, 5-8,

5-10, 5-13, 5-15, 5-19,
5-23, 5-24, 5-30
2-6, 8-9
Light Rail Transit (LRT)
A-39
Liquefied natural gas
7-4, 7-10, 7-14, 7-37
liquefied natural gas (LNG)
2-7, 2-21, 2-22
local authorities
9-9, 9-10, 9-11, 9-14,

9-23, 9-24, 9-25, 9-26
Malaysian Wellbeing Index (MWI)

Malaysian Wellbeing Report
2-11, 2-14, 4-3, 4-5,

4-12, 4-13
4-5
managed float system
2-9
6-7, 6-27, 6-28
local communities
8-20
Mangroves
Logistics
8-21
manufacturing
8-21
Logistics and Trade Facilitation
8-17
manufacturing sector
Logistics service providers
7-26
low income households
4-1, 4-2, 4-3, 4-6, 4-7
Low carbon
6-1, 6-9, 6-15, 8-38
Maritime Enforcement Agency
2-5, 2-6, 2-7, 2-9, 2-18,

2-21, 2-23
6-7, 6-8, 6-10, 6-11,
6-21, 6-24, 6-28
4-19
low income group
3-26
market-friendly
3-15
Low Performing Schools
5-4
Massive Open Online Courses (MOOCs)
5-25, 5-29
low-skilled foreign workers
5-18
Master
5-10
low-value added industries
3-34
master trainers
5-27
maternal mortality rate
4-1, 4-5, 4-6
Marine
Mature politics
10-10
maintenance, repair and overhaul (MRO)
8-7
mean monthly household income
3-1, 3-5, 3-17
Majlis Amanah Rakyat (MARA)
5-23
merit-based
3-15
Malaysia Anti-Corruption Commission
4-18
Methadone Maintenance Therapy (MMT)
4-8
Malaysia Board of Technologist (MBOT)
5-16, 5-21
Methyl ester
7-38
Malaysia Education Blueprint 2013-2025 (Preschool to

Post Secondary)
Malaysia Education Blueprint 2015-2025 (Higher
Education)
Malaysia electricity supply industry
5-1
micro and small businesses
3-11, 3-34
middle class
Malaysia Family Wellbeing Index
3-6
Malaysia Productivity Blueprint
2-15
million tonnes per annum (mtpa)
3-2, 3-15, 3-16, 3-17,

3-23, 3-36
4-1, 4-2, 4-3, 4-6, 4-7,
4-11, 4-12, 4-13, 4-15,
4-16, 4-24
2-7, 2-21
Malaysia Qualification Agency (MQA)
5-6, 5-19, 5-24
mind-set change
3-18, 3-34
Malaysia Qualification Framework (MQF)
5-19
Minimum Energy Performance Standard (MEPS)
6-5, 6-18
Malaysia University English Test (MUET)
5-28
minimum wage
5-1, 5-3, 5-16
Malaysian Automotive Institute (MAI)
5-23
mining sector
2-7, 2-21
Malaysian Global Innovation and Creativity Centre
5-23
mini-RTC
3-28, 3-29
Malaysian Institute of Integrity
4-18
Ministry of Education (MoE)
4-19
Malaysian Investment Development Authority (MIDA)
8-18
Ministry of Human Resource
5-6, 5-17, 5-18
Malaysian Meister Programme
5-23
Ministry of International Trade and Investment (MITI)
5-17, 5-18
Malaysian Research University (MRU)
5-10, 5-12
5-1, 5-26
7-41
middle income households

Appendix
Mitigation
6-2, 6-3, 6-5, 6-6, 6-9,

6-10, 6-11, 6-12, 6-13,
6-14, 6-25, 6-27, 6-29
National Key Result Area (NKRA)
4-8
National Land Public Transport Master Plan
7-6
National Logistics and Trade Facilitation Master Plan
7-23, 7-26
National Logistics Task Force
7-23, 8-17
National Occupational Skills Standard
5-6
National Petroleum Advisory Council
7-36
8-17
A-40
Mobile Community Transformation Centre (CTC)

programmes
Mobile Patrolling
3-8, 3-28, 3-29, 9-3,

9-13, 9-15
4-20
modern services
8-16
monthly median wage
5-16
Moral compass
10-7
National Policy on the Development and Implementation

of Regulations (NPDIR)
National Productivity Council (NPC)
multi-dimensional
3-15
National Productivity Portal
2-15
7-35
National Single Window
9-10, 9-14
multinational companies (MNCs)
2-2, 2-4, 2-9, 2-10,

2-15, 2-19
8-7
National Sewerage Master Plan

National Unity Consultative Council
4-4, 4-9
multinational corporations (MNCs)
3-20
National Water Resources Policy
6-6
multi-skilling
9-17, 9-18, 9-20
Native Customary Rights (NCR)
3-6, 3-19
Multi-track career pathway
5-29
Natural disasters
Mutual Recognition Agreements (MRAs)
8-20
6-2, 6-5, 6-7, 6-9, 6-10,

6-11, 6-21, 6-25, 6-26
MyGAP
8-26
myren.net.my
8-33
Natural resources
MySilang Career Programmes
4-22
MySkills Competition
5-21
needs-based
6-1, 6-2, 6-7, 6-8, 6-9,

6-11, 6-12, 6-13, 6-14,
6-17, 6-20, 6-21, 6-23,
6-24, 6-28, 6-30
3-15
new jobs
5-1, 5-3, 5-5, 5-15
NGO
3-21, 3-24, 3-25, 3-26,

3-27
5-25, 5-29
Multi-Factor Productivity (MFP)
N
National Anti-Drugs Agency
4-19
National Automotive Policy (NAP)
6-19
National Biodiversity Policy 1998
6-8
National Biomass Strategy 2020
6-6
National Cancer Institute
8-9
National Climate Change Policy 2009
6-13
National Conservation Trust Fund for Natural Resources
6-8
National Depletion Policy
2-7
National Dual Training System
5-6, 5-18, 5-20
National Export Council (NEC)
2-21, 2-22
National Housing Department
4-17
National Human Capital Development Council (NHCDC)
5-15
National identity
10-7
Niche Areas of Expertise

non- government organisations (NGOs)
2-18
non-communicable disease
4-1, 4-2, 4-9, 4-11,

4-13, 4-14, 4-15, 4-16,
4-17, 4-18, 4-19, 4-22,
4-23
4-15
non-core services
9-9, 9-13
non-financial assets
3-11
non-financial public enterprises (NFPEs)
2-16
non-governmental organisations (NGOs)
8-31
Non-productive aid programmes
3-1
Non-Revenue Water Reduction Programme
7-33, 7-34
Non-tariff barriers
8-20
A-41
Nuclear power
7-39
Per Student Funding
5-29
Perbadanan Tabung Pendidikan Tinggi Nasional
5-29
perception of safety
4-11, 4-18
Occupational Analysis
5-6
Performance Contracts
5-29
oil and gas services industry (OGSI)
8-20
performance evaluation
9-12, 9-19, 9-20
oil palm
2-21
performance monitoring mechanism
5-27
omnipresence
4-1, 4-8, 4-13, 4-18
Performance Of the Education System
5-10
One Stop Family Service Centres
3-6
performance-based incentives
2-11, 2-16, 8-18
one-stop business facilitation centre
3-29
performance-related pay schemes
5-16
online services
9-2, 9-5, 9-6, 9-10,

9-11, 9-13, 9-15
Permanent Reserved Forest
6-2, 6-4, 6-6, 6-7
persons with disabilities
4-9, 4-17, 4-23
open data
9-5, 9-13, 9-14
Perumahan Rakyat 1Malaysia (PR1MA)
2-21, 4-6, 4-7
operating expenditure
2-8, 2-23
Petrol
7-37, 7-38
Orang Asli
4-14
Petroleum
7-10
Orang Asli in Peninsular Malaysia
PhD
5-4, 5-6, 5-8, 5-10
outcome-based approach
3-6, 3-9, 3-18, 3-19,

3-20, 3-21, 3-28
9-21
Phd Industry Programme
5-8, 5-24
outcome-based budgeting
9-13, 9-16
Pico hydro
7-39
Outcomes
3-28, 3-36
PlaTCOM Ventures Sdn. Bhd. (PlaTCOM)
8-11
Platform
8-11
PLGDP
5-27
Poaching
6-8, 6-21, 6-22
Police Volunteer Reserve (PVR)
4-8, 4-19
Polis DiRaja Malaysia (PDRM)
4-8
Polluter Pays Principle
6-14
Pollution
6-2, 6-12, 6-14, 6-16,

6-17, 6-19, 6-20
5-19
P
Pan-Borneo Highway
2-16
Parent Teacher Association (PTA)
5-28
parenting skills
3-24
Parole System
4-9
participatory governance
9-11, 9-12
Patent
5-10, 5-12
Polytechnic Rating System (PolyRate)
Payment for Ecosystem Services
6-14
poor
pay-per-use
8-33
Pejabat Pendidikan Daerah (PPD)
5-9, 5-25, 5-28
Pengerang Integrated Complex (PIC)
2-16
Pengerang Integrated Petroleum Complex (PIPC)
2-22, 7-2, 7-16, 7-37
people economy
People-centric public transport system
poor and low income households
4-2, 4-3, 4-6, 4-11,

4-12, 4-13, 4-14, 4-16,
4-24
3-17, 3-21
population
5-5, 5-7
Post Secondary
5-8
2-13, 2-14, 2-24
Post-2020
10x
7-3, 7-6
Poverty Line Income (PLI)
3-23
People's Republic of China (PRC)
2-2, 2-5, 2-7
pre-approved plans
9-21, 9-22
per capita income
8-15

Appendix
A-42
Preschool
5-4
public housing
4-11, 4-16, 4-17
private consumption
public investment
2-6, 2-12, 2-16, 2-17
private equity
2-3, 2-6, 2-12, 2-14,

2-15, 2-16
3-33
Public Private Research Network (PPRN)
8-33
private healthcare
8-18
public sector comparator (PSC)
9-10, 9-21
private higher education
8-18
public sector training
9-9, 9-19, 9-20
private investment
4-5, 4-18
public security and safety
4-1, 4-10
public service delivery
2-15, 9-1, 9-2, 9-5, 9-6,

9-7, 9-8
6-19
Private University (ies) & University Colleges
2-1, 2-3, 2-5, 2-6, 2-7,

2-12, 2-15, 2-16, 3-28,
3-29, 8-8
3-8, 3-25, 3-26, 3-27,
3-29, 8-9, 5-9, 5-8,
5-15, 5-29
5-6, 5-10, 5-11
public security
Private-Public Research Network
5-29
productivity
productivity champions
2-2, 2-9, 2-11,2 -14,

2-15, 2-16, 2-17, 2-18,
2-19, 2-20, 2-21, 2-23,
2-24, 3-15, 3-18, 3-19,
3-21, 8-10, 9-2, 9-4,
9-9, 9-10, 9-11, 9-17,
9-18, 9-19, 9-21, 9-26
2-15
productivity-based culture
2-15
Professional Courses
5-28
Professional development
5-25, 5-27
professional services
8-10
Program Asuhan dan Didikan Awal Kanak-kanak

(PERMATA)
Program Bantuan Rumah (PBR)
5-27
Program Komuniti Sihat Perkasa (KOSPEN)
private sector
Public transport modal share

Public University(ies)
5-4, 5-6, 5-10, 5-11,

5-12, , 5-25, 5-28, 5-29
Publication
5-10, 5-12
PWD
3-8, 3-24, 3-27
Q
QS World University Rankings
5-14
Quality
5-10, 5-26
quality of life
3-1, 3-2, 3-6, 3-11,

3-15, 3-16, 3-26, 3-30,
3-36
5-26
Quality TVET Graduates

R
rationalisation
9-17
4-6, 4-7, 4-16
real estate and business
8-5
4-6, 4-15, 4-22
recidivism
4-9, 4-11, 4-18, 4-19
Program Penyenggaraan Perumahan
4-7
Recognition of Prior Learning (RPL)
5-16, 5-24
Program Perumahan Rakyat (PPR)
4-6, 4-7
reduce cost
9-13, 9-15
Programme for International Student Assessment (PISA)
5-10, 5-14
3-15
project management
Protected areas
6-11, 6-21, 6-24
Refinery and Petrochemicals Integrated Development

(RAPID)
Refining Capacity
2-21
prosperous and equitable society
9-2, 9-9, 9-10, 9-11,

9-21, 9-22
3-1
Reducing emissions from deforestation and forest

degradation (REDD+)
Refinery and Petrochemical Integrated Development
6-14
pro-growth
public consumption
2-6, 2-12, 2-15, 2-16
Reforestation
6-21
Regasification Terminal
7-4, 7-10, 7-14, 7-37
7-37
7-1, 7-10, 7-15, 7-37
A-43
Regional Development Authorities
3-28, 3-29, 3-30, 3-31
Road Development Index
7-5
regional distribution centre
8-18
road fatalities
4-12, 4-20
regional economic corridor
Road maintenance programme
7-20
regional referral centre and hub
3-9, 3-29, 3-30, 3-31,

8-35
8-20
road safety
8-39
Road Safety Audit
4-2, 4-11, 4-12, 4-13,

4-20, 4-24
7-20
Regulatory Framework
5-25, 5-29
4-8
regulatory reform
2-11, 2-15, 2-18
rehabilitation
4-11, 4-18, 4-19
Rondaan Awam Polis dan Anggota Tentera (RAPAT

1Malaysia)
rubber
relapse
4-11, 4-18, 4-19
Rukun Tetangga (RT)
4-8
relational capital
10-11
Rumah Idaman Rakyat
2-21
Renewable energy
10-12
Rumah Mesra Rakyat
2-21
Renewable energy (RE)
Rumah Mesra Rakyat 1Malaysia (RMR1M)
4-6, 4-7
Rumah Wilayah Persekutuan (RUMAWIP)
4-7
rent-seeking
6-2, 6-3, 6-5, 6-8,

6-10, 6-16
3-34
Rural Air Services
7-18, 7-19
replacement level
5-7
rural alternative electrification system
3-29
Replanting
6-27
rural and remote areas
3-1, 3-18, 3-28, 3-29
research and development (R&D)
rural banking services programme
3-29
Research For Innovation
2-20, 2-21, 3-19, 3-34,

6-28
5-13, 5-25, 5-28
rural basic infrastructure
3-1, 3-28, 3-36
Research Incentive Scheme for Enterprises
8-17
Rural Electricity Supply Programme
3-28
Research Management Agencies (RMA)
8-25
rural households
3-6, 3-11
Research Octane Number (RON)
2-9
Rural living
10-8
research, development and commercialisation (R&D&C)
3-30, 3-31
Rural transformation
3-36
researcher
8-31
Rural Transformation Centre (RTC)
9-3, 9-13, 9-15
Reserve
7-10, 7-34
Rural Water Supply programme
3-28
residivist
4-9, 4-19
Resilience
6-2, 6-4, 6-6, 6-8, 6-9,

6-10, 6-11, 6-12, 6-14,
6-16, 6-18, 6-20, 6-22,
6-24, 6-25, 6-26, 6-28
Reskilling
5-16, 5-21, 5-30
Resource-efficient
6-1
response time
4-18, 4-20, 6-26
Reuse, reduce, recycle (3R)
6-6, 6-11, 6-15, 6-20
revenue
2-8, 2-9, 2-11, 2-19,

2-20, 2-23
9-2, 9-9, 9-17, 9-18
rightsizing
2-20, 2-21
S
Sabah Sarawak Gas Pipeline
7-37
Safe City Programme
4-8, 4-18
Scholarship
8-17
School leaders
5-9, 5-25, 5-27
SCP Indicator
6-12, 6-14, 6-17
second chance policy
3-34
segments of society
3-36
Sekolah Agama Bantuan Kerajaan (SABK)
5-27
self-developmet programme
4-8, 4-9, 4-18

Appendix
self-employed
3-18
self-regulate
8-20
self-regulation
9-17, 9-18
Self-sufficiency level
2-19
Sensor network
7-31
service delivery
9-1, 9-2, 9-5, 9-6, 9-7,

9-8, 9-9, 9-10, 9-11,
9-12, 9-13, 9-14, 9-19,
9-23, 9-24, 9-26
social cohesion,
A-44
social costs
4-1, 4-2, 4-4, 4-5, 4-9,

4-10, 4-11, 4-12, 4-13,
4-21, 4-24
3-17
social financing model
8-34
Social inclusion
3-9
social integration
Social protection
4-1, 4-5, 4-8, 4-9, 4-11,

4-21, 4-22, 4-23
3-26
Social Safety Net (SSN)
3-6, 3-17, 3-21
social-enterprises
3-20
societal level
8-34
socio-economic
Services Export Fund
8-18
services sector
Services Sector Blueprint
2-2, 2-5, 2-7, 2-16,

2-21, 2-22, 2-23, 8-17
8-17
Services Sector Guarantee Scheme
8-18
shadow ceiling
9-21
Shared responsibility
6-9, 6-12, 6-13, 6-14
socio-economic disparity
3-1, 3-7, 3-8, 3-11,

3-16, 3-17, 3-19, 3-25,
3-29, 3-30, 3-36, 4-9,
4-21, 4-24
3-11
Single Buyer
7-41
Soft And Entrepreneurial Skills
5-25
single mothers
3-10
Solid Waste and Public Cleansing Management Act 2007
6-13
SIRIM-Fraunhofer
8-22
Solution Providers
5-29
Sistem Penarafan Kolej Komuniti (MySpeKK)
5-19
Special Committee on the Services Sector
8-17
skilled workers
3-17
Special Industrial Tariff
7-39
skills
special target groups
3-6
Stage Bus Services Transformation Programme
7-15, 7-17
Skills Development Fund (SDF)
3-2, 3-6, 3-9, 3-10,

3-16, 3-18, 3-27, 3-31,
3-32
5-8, 5-21
Stakeholder partnerships
5-13, 5-25, 5-28
skills training
3-18, 3-27, 3-31
Standard Curriculum for Primary School
5-10
SkillsMalaysia
5-21
Standard Curriculum for Secondary School
5-10
Skim Kemahiran dan Kerjaya 1Malaysia (SKK1M)
5-6, 5-18
Stanford Graduate School of Business
5-23
Skim Penarafan Hijau
6-15
Steinbeis Malaysia Foundation (Steinbeis)
8-11
small and medium enterprises (SMEs)
3-34
Street crime
4-4
Strengthening Global Networking
5-29
Smart cities
2-16, 2-22, 3-10, 3-11,

3-16, 3-19, 3-34, 5-8,
5-24 , 8-9
7-27
strategic sectors
Strengthening IHE Governance
5-13, 5-25, 5-29
Smart cities initiatives
7-32
student drop-outs
3-6
Smart farming technologies
8-24
Student-Centred Learning
5-20
smart partnership
3-7, 3-34
Sub-Urban Broadband
7-15
SME Corp
5-24
supply chain
3-34
A-45
supply clean and treated water
3-28
Tenth Malaysia Plan
2-1, 2-3, 2-5, 2-11
sustainability
3-28
Terrestrial
Sustainability Achieved via Energy Efficiency (SAVE)
6-5, 6-6, 6-18
sustainable
3-15
6-8, 6-10, 6-11, 6-21,

6-24, 6-28
5-10
Sustainable consumption and production (SCP)

Sustainable development
6-9, 6-10, 6-11, 6-12,

6-13, 6-14, 6-15, 6-17
6-1, 6-13
Sustainable Energy Development Authority (SEDA)
6-5, 6-18
Sustainable financing
6-12, 6-13, 6-14
sustainable wealth creation
3-1
System Average Interruption Duration Index
7-11, 7-40
System Operator
7-41
Tertiary Education
The Incentive Coordination and Collaboration Office
(ICCO)
The Literacy and Numeracy Screening (LINUS)
8-18
The Multidimensional Poverty Index (MPI)
3-23
Total Factor Productivity (TFP)
2-9
tourism
2-8, 2-21, 2-22
tourist arrivals
8-6
Towering personalities
10-9
Tracer Study
5-6, 5-10, 5-11
trade balance
2-11, 2-12, 2-14, 2-22
trade facilitation
9-10, 9-13, 9-14
transformative changes
9-11, 9-12, 9-14
Transformed HE Delivery
5-26
transit houses
4-16
Transit-oriented Development
7-18
Translating Innovation to Wealth
8-15
transparent
3-15
5-8
Tabung Perumahan 1Malaysia
4-7
talent
8-15
Talent Corporation
5-6, 5-17
talent development
8-35
talent gap
2-11, 2-16
talent management
Talent Roadmap 2020
9-2, 9-7, 9-9, 9-10,

9-11, 9-20
5-1, 5-5
transport and storage
8-5
targeted groups
4-16
Trends in Mathematics and Science Study (TIMSS)
5-10, 5-14
targeted support
3-15
Trust Schools
5-28
Teaching and learning
5-10, 5-29
Tun Razak Exchange
2-22
TECHMart database
8-33
Technical and Vocational Education and Training
Technical Schools
2-30, 3-26, 5-1, 5-2,

5-3, 5-6, 5-10, 5-13,
5-14, 5-15, 5-16, 5-19,
5-20, 5-21, 5-22, 5-23,
5-24, 5-24, 5-26
5-6
technology
8-33
technology foresight
8-33
Technology Park Malaysia Angel Chapter
8-33
Technology Transfer Offices
5-29
telecentres
3-8, 3-19
telecommunications
8-38
u-Customs
7-25, 9-14
Unconditional assistance
3-15
Unconditional social welfare programmes
3-21
unemployment
5-1, 5-3, 5-5, 5-30
unemployment rate
2-9, 2-12, 2-23, 8-2
Uniform Building by Laws
7-27, 8-28
United Nations Decade of Action for Road Safety 20112020

United Nations Framework Convention on Climate
Change
7-20
6-11

Appendix
A-46
unity
3-25, 5-10, 5-26
waqf
3-33, 3-34
universal design
3-27
Wasatiyyah
10-1
universal enrolment
5-8
Waste
Universiti Malaya
5-10
Universiti Putra Malaysia
5-10
Universiti Sains Malaysia
5-10
6-8, 6-9, 6-10, 6-11,

6-12, 6-13, 6-14, 6-15,
6-16, 6-17, 6-20
7-33, 7-35
Universiti Teknologi Malaysia
5-10
University Ranking
5-10, 5-14
upskilling
Urban
2-15, 2-18, 3-16, 5-2,

5-4, 5-8, 5-10, 5-11,
5-16, 5-18, 5-21, 5-23
3-6, 3-17, 3-19, 3-29
Urban Transformation Centre (UTC)
9-3, 9-6, 9-13, 9-15
Urbanisation
10-3
UReka
8-11
Waste to wealth
Water
Water supply reserve margin
6-11, 6-12, 6-15, 6-16,

6-17, 6-21, 6-24, 6-25,
6-27, 6-28, 6-29, 6-30
7-34
wealth ownership
3-2, 3-15
Weather
6-12, 6-27, 6-28
welfare
3-9
Wellbeing
10-8
wellbeing of rural communities
3-28, 3-36
whole-of-government
9-1, 9-5, 9-7, 9-11, 9-26
wholesale and retail
8-5
value added
2-7, 2-16
whole-society approach
8-34
value chain
2-11, 2-22
Wildlife
6-8, 6-21, 6-22, 6-27
value management
9-2, 9-4, 9-6, 9-21
women
Value-added services
7-27, 7-31
venture capitalist
8-33
Workers Technical Transformation Programme (WTTP)
3-7, 3-10, 3-24, 3-25,

3-26
5-26
virtual lessons
5-27
work-life balance
9-19
Visibility
5-29
World class cities
10-8
Vision
10-1
World Class Talent
5-2
"Vision 2020
4-2, 4-21
World Justice Project Rule of Law Index
4-8
Vocational Instructor Certifications
5-8
Vocational Schools
5-6
voluntary neighbourhood watch
4-1, 4-8
Voluntary Patrolling Scheme (SRS)
4-4, 4-19
volunteerism
3-7, 3-24, 3-25, 3-27,

4-9, 4-13, 4-18, 4-21
3-17, 3-36
vulnerable 3-11
W
wage gaps
5-16
wage index
5-16
waqf
4-17
Y
Yayasan Inovasi Malaysia (YIM)
8-11
youth
3-6, 3-10, 3-24, 3-25
youth unemployment
5-18

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ELEVENTH

For further information refer to:

ELEVENTH MALAYSIA PLAN

Dato Sri Mohd Najib bin

Eleventh Malaysia Plan

To ensure the success of the Eleventh

Eleventh Malaysia Plan:

Enhancing inclusiveness towards

Anchoring growth on people

The next five years

Challenges and opportunities

Six strategic thrusts and six game changers

Transforming public service for productivity

Malaysia beyond 2020

Strengthening macroeconomic resilience

Elevating the livelihood of the B40 households

Summary of focus areas

Summary of macroeconomic strategies

Improving wellbeing for all

Improving access to quality healthcare services

Summary of focus areas

Accelerating human capital development

Creating more jobs and maintaining full employment

Mainstreaming and broadening access to quality TVET programmes

Improving education delivery through better access and quality

Improving legislations and institutions to transform the labour

Summary of focus areas

Pursuing green growth for sustainability

Upgrading physical infrastructure to enhance

Developing a people-centric public transport system

Continuing efforts to restructure the water services industry

Growing logistics and trade facilitation

Climate mitigation: reducing Malaysias carbon footprint

Climate adaptation: protecting the nation from the impact of climate

Summary of focus areas

Enhancing conservation of the nations ecological assets

Summary of focus areas

Ensuring effective sourcing and delivery of energy

Re-engineering economic growth for

Summary of focus areas

Malaysia beyond 2020

Profile of Malaysia post-2020

Aspirations for Malaysia post-2020

Transforming public service for productivity

Summary of focus areas

List of Strategy Papers

Description of cover icons

Anchoring growth on people

Eleventh Malaysia Plan

Malaysia has enjoyed one of

Eleventh Malaysia Plan

Between 1970 and 2014, the incidence

Household monthly income

1970 RM264 2014

The mean household monthly income increased more

Today, Malaysians from all walks of life,

Malaysians today live longer, with

In 2014, Malaysia was rated the

The New Economic

The National Development