Two major transformation initiatives embody Prime Minister Najib Razak’s pledge to deliver on his promises and produce tangible results that will affect the lives of all Malaysians.
A Performance Management and Delivery Unit (PEMANDU) has been established within the Prime Minister’s department to facilitate, assess and drive the Economic Transformation Programme (ETP) and the Government Transformation Programme (GTP).
The ETP is designed to more than double Malaysia’s gross national income (GNI) per capita from its 2009 level of $6,700 (£4,200) to above $15,000 (£9,400) by 2020. Such an outcome can only be achieved by significant remodelling of the economy with the emphasis on developing the services sector. By 2020, it is hoped that the industry will account for 65 per cent of the economy and that 3.3 million new jobs will have been created across the country.
Under the ETP, public investment and policy support is being focused on 12 National Key Economic Areas (NKEAs), for which the Government has identified 131 Entry Point Projects (EPPs).
But it is on participation by the private sector, which has been involved in the programme from the start, that the success of the ETP rests. The Government’s role is to act as a facilitator, providing essential services and improving the public delivery system. It is the private sector that is expected to deliver the EPPs and provide more than 90 per cent of the funding.
There has been a positive response to the ETP from investors, indicated in the value of total investments committed, which rose to $31 billion (£19.4 billion) between October 2010 and April this year. According to Mr Najib, this will create almost 225,000 job opportunities in the next 10 years.
Total investment for 2011 is expected to exceed the Government’s target of $27 billion (£17 billion), even if only 70 per cent of the planned projects are realised.
The Malaysian Rating Corporation reports “increasingly positive vibes” about the Government’s transformation programmes. It says there is a strong onus on direct domestic investments “which, if properly planned and executed as envisioned by the ETP, will reinvigorate private investments in the Malaysian economy in the medium term”.
The ETP will be an evolving programme rather than a hard-and-fast blueprint of economic activity in Malaysia for the next 10 years. Many new initiatives and activities are expected to emerge as the reforms take hold and markets develop.
Complementary to the ETP is the GTP, which is intended to radically change the way the Government delivers services and supports citizens.
The GTP has six pillars, known as National Key Result Areas (NKRAs). These priority areas – crime prevention, corruption, education, poverty, rural development and public transport infrastructure upgrades – have been identified as requiring quick and decisive action.
Mr Najib says: “It is our goal, in line with the spirit of 1Malaysia, to pursue these NKRAs and address them with unrelenting conviction and dedication to create a modern, prosperous, peaceful and high-income nation and improve the lives of all Malaysians regardless of race, religion or social status.”
He says the Government has deliberately chosen more ambitious goals that had been set before, and that fundamental changes are needed to deliver big results fast. “If we wish to see big changes, then a bold action plan is a prerequisite.”
While the cabinet takes collective responsibility for the NKRAs, accountability for delivery rests with individual ministers. Ministerial Key Result Areas (MKRAs) and Ministerial Key Performance Indicators (MKPIs) clearly define what ministers must achieve and be accountable for, and their performance is reviewed by the Prime Minister twice annually.
It is an approach that appears to be delivering results. Crime has been significantly reduced nationwide and the percentage of Malaysians who think the Government is winning the fight against corruption has almost doubled.
The first school ranking system has been introduced, tracking the performance of individual secondary and primary schools, and there has been a huge rise in the number of children attending pre-schools.
The number of extremely poor households has been reduced to zero per cent in the most successful poverty reduction exercise Malaysia has seen, a record number of homes have been offered to the needy, and thousands of women entrepreneurs have been trained and seen their income rise.
There has been rapid rural development with millions of Malaysians being given access to roads, water and electricity, many for the first time.
Congestion has been reduced in Kuala Lumpur now that the Kelana Jaya LRT (light rail transit) line has almost 2.5 million more passengers travelling on it following an increase in its capacity.
Reporting on progress made in the first year of the GTP, Mr Najib was understandably upbeat, saying the programme had yielded “quick and big wins like never before, making a positive impact on the lives of millions of Malaysians.” He added, however, that he was mindful that the Government should not “declare victory” until Malaysia has achieved its goal of becoming a fully developed country.
Acknowledging that the programme had its share of sceptics, he said the ultimate judge of the Government’s performance and progress was the people.
“Moving forward, the GTP will continue to identify real problems and deliver tangible solutions for our nation and the rakyat [people]. We are confident we can make strong strides forward as a united nation and rest assured, no Malaysian will be left behind in this national transformation.”
The first year of the GTP was voted a success by the International Performance Review (IPR) committee, a panel of experts appointed to independently evaluate the progress made. The committee judged the results achieved under the respective NKRAs to be “impressive” and having met many of the ambitious first year targets.
At the same time it stressed the importance of ensuring that the civil service was fully behind the programme. It was important that the spirit of the GTP “cascaded down” the ranks of the public sector and became an automatic process.
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