Prime Minister Datuk Seri Abdullah Ahmad Badawi unveiling the Ninth Malaysia Plan (9MP) which will steer the National Mission towards realising Malaysia's vision of becoming a developed nation by 2020. Pix: Rosli AwangThrust 1: Moving the Economic Up the Value Chain
KUALA LUMPUR, March 31, 2007 -- The Prime Minister Friday unveiled the Ninth Malaysia Plan (9MP) which will steer the National Mission towards realising Malaysia's vision of becoming a developed nation by 2020.
Datuk Seri Abdullah Ahmad Badawi said the 9MP is consistent with the ambition to build a country with an advanced economy, balanced social development and a population which is united, cultured, honourable, skilled, progressive and farsighted.
"We want progress that is enjoyed by all, regardless of religion or ethnicity.
"We want to build a progressive and developed civilisation that echoes the glorious age of Islam and other civilisations, in line with the concept of Islam Hadhari," he said in his speech in Parliament when tabling the 9MP themed 'Building a civilisation to elevate the nation's dignity.'
As a guide for the rest of the journey, the government has drafted and will implement the National Mission, a framework for the country's development agenda which outlines the key steps to be taken in the next 15 years.
In his speech, the Prime Minister outlined the five thrusts of the National Mission which focused on key priority areas which would enable the nation to achieve Vision 2020. They are:
* To increase the value add of the national economy;
* To raise the country's capacity for knowledge, creativity and innovation and nurture "first class mentality";
* To address persistent socio-economic inequalities constructively and productively;
* To improve the standard and sustainability of the quality of life; and
* To strengthen the institutional and implementation capacity of the country.
The first thrust is to increase the value add of existing economic sectors as well as generate new knowledge-intensive activities and employment in information communication and technology (ICT), biotechnology, nanotechnology and services.
Under this strategy, the government will also build a conducive environment for the private sector to take a leading role in the country's development.
Under the second thrust, the government aims to undertake comprehensive improvement of the country's education system, from pre-school to tertiary and vocational institutions, besides fostering a more enabling environment to encourage Research and Development (R&D).
At the same time, heavier emphasis will be placed on the shaping of values to create more well-rounded individuals.
The third thrust aims to eradicate poverty, generating more balanced growth and ensuring the benefits of growth are enjoyed by the people in a fair and just manner.
The fourth thrust stresses on the provision for basic needs such as water, energy, housing, transportation and other amenities but more emphasis would be placed in addressing issues related to maintenance, upgrading and efficient usage of resources.
In the fifth and final thrust, the government is committed to improve the public services delivery system at various levels, and will also address issues related to corruption and integrity in the public sector and among the general public.
Elaborating on the first thrust, the Prime Minister said the government will continue to promote the transition to higher value added activities in three main sectors, manufacturing, services and agriculture.
He said new sources of growth will be identified and promoted to generate additional income and to develop new sources of economic growth.
With globalisation, "not only does the domestic macroeconomic structure and environment need to be strengthened, elements of the micro economy including the respective economic sectors and local corporations also need to be made more resilient," said Abdullah.
Among others, the government will prepare specific incentives to attract investments, including high quality Foreign Direct Investment (FDI) for manufacturing sector activities that are being promoted. In addition, small and medium enterprises (SMEs) with high innovation capabilities will be promoted to become part of the global supply chain.
The Prime Minister said some of the projects to be implemented to enhance the manufacturing sector include the expansion of Kulim High Technology Park, the establishment of Sarawak Technology Park and Perak Technology Park and the development of 20 industrial and SME parks throughout the country.
To enhance the manufacturing sector, the government will develop several industrial clusters, which include electrical and electronics clusters (E&E) clusters in Penang and Kulim and High Technology Park and petrochemical clusters in Pahang and Terengganu.
To improve access to sources of finance, the government will create several funds such as the Strategic Investment Fund, the Automotive Development Fund, the Industrial Restructuring Fund, the Automation Fund and specific funds for biotechnology, halal products and handicraft.
Abdullah said the government will establish the Halal Industry Development Board to develop the industry in a holistic and orderly manner.
The South Economic Region, he said, will be developed as a dynamic regional services hub as part of efforts to expand the sector from the Klang Valley to other locations.
The government will set up the Export Services Fund and SMEs Export Services Fund to enhance the services sector's access to financing.
On tourism, Abdullah said the government will also develop Malaysia as a regional centre for health tourism in both traditional and modern health treatments through the creation of a brand for Malaysian health services, which will be known as "Health Malaysia."
The Prime Minister said, the government will double efforts to develop Malaysia as a regional centre for excellence in the provision of tertiary level education through strategic marketing efforts and the branding of educational products.
He said the agriculture sector will be given a new lease of life in order to become the third engine of economic growth through the 'New Agriculture' programmes, which will focus on enhancing the value chain, cultivating high value added agricultural activities and large scale commercial farming, utilising ICT as well as exploiting the full potential of biotechnology.
The New Agriculture programmes which also encourage participation from the private sector, graduates and agriculture entrepreneurs, are aimed at making Malaysia become a net export of food by 2010.
The Prime Minister said, to realise these objectives, the Prime Minister said, the government had allocated RM11.4 billion for the agriculture sector, a 70 per cent increase over the allocation in the Eighth Malaysia Plan (8MP).
"There are no limits to the upside potential of this sector if it is managed effectively. The agriculture sector needs to be viewed through a new lens, infused with fresh conviction, developed with a new spirit - a new agenda," said Abdullah.
Other sectors to be focused in the first thrust of the National Mission include generating new sources of wealth through ICT and biotechnology and creation of new jobs to keep unemployment low and to ensure that graduates and skilled workers are able to secure employment suitable to their qualifications.
At the same time, focus will also be given to efforts to make the private sector a driver of economic growth by promoting the Private Financing Initiative (PFI) as a new approach under the privatisation programme; and to expand the market for Malaysian products and services which will help strengthen its position in traditional markets and by exploring new markets.
On the second thrust, the Prime Minister said the development of quality human capital will be intensified, which will be a holistic approach and with emphasis on the development of knowledge, skills, intellectual capital in science, technology and entrepreneurship, while developing a culture that is progressive, coupled with high moral and ethical values.
"This is what is meant by human capital with first class mentality," said the Prime Minister, outlining three main strategies to be adopted to achieve the objective.
He said the three strategies are firstly, increasing the capacity for and the mastery of knowledge; secondly, strengthening the nation's capabilities in science, R&D and innovation; and thirdly, nurturing a cultured society that possesses strong moral values.
To increase the capacity for knowledge, Abdullah said the government will enhance rural school facilities, especially in Sabah and Sarawak.
At tertiary level, the Universiti Darul Iman in Terengganu and Universiti Darul Naim in Kelantan and a number of polytechnics will be constructed.
The Prime Minister said as part of efforts to make national schools the "School of Choice", all existing national schools will be made "Smart Schools".
He said to this end, RM284 million will be allocated for the Smart School Programme and RM1.51 billion for the Computerisation of Schools Programme.
Under the third thrust, Abdullah said, in addressing socio-economic disparities, the government will fine tune and streamline strategies, taking into account the open nature of the global economy and the lessons learnt.
He said the government has outlined three principles to address the socio-economic disparities, and they are:
* Eradicating poverty and ensuring no one is left out of the development process;
* Generating balanced development especially in under-developed areas and creating more opportunities for direct participation in the country's economic development; and
* Ensuring that all Malaysians benefit from the economic growth fairly and equitably.
Abdullah said to this end, the government is committed to achieving the target of 30 per cent bumiputera equity share ownership by 2020; assisting the development of customary land in Sabah and Sarawak; and raising the share of equity ownership for ethnic Indians to 3.0 per cent by 2020.
Through the fourth thrust of the National Mission, the government is committed towards ensuring that all citizens benefit from the development programmes and share the fruits of success.
"Such development will be more meaningful if it is equitably shared to improve the quality of life of the citizens," said the Prime Minister.
To achieve the objective of the fourth thrust, focus will be made towards meeting housing needs and improving urban services; improving healthcare services with the construction of new hospitals and implementing a human resource development programme in healthcare.
Others include improving transportation facilities and infrastructure, such as the establishment of a National Commission to regulate the overall public transportation system, with a specific commission to be set up for the Klang Valley.
Abdullah said the government will also implement a number of major projects across the country, including the Penang Monorail and the Eastern Dispersal Link in Johor.
To improve the quality of life of the people, the government will enhance water supply systems and overcome floods.
It will also focus on programmes to ensure national security and public order.
The fifth thrust of the National Mission outlines the government's efforts to improve the delivery system particularly amongst government-linked companies (GLCs).
In addition, human capital development amongst the civil service will also be intensified through education and training.
The Prime Minister said to improve the delivery system in the public sector, the government will review and amend laws and regulations which impede development.
He said, a Public-Private Sector Action Committee will be formed to recommend needed amendments to laws and regulations.
Abdullah also proposed the establishment of two National Implementation Action Bodies; one to monitor selected high impact projects from the 9MP and the second to monitor programmes related to the formation of a new generation of the Bumiputera Commercial and Industrial Community (BCIC2).
Before concluding his speech, which lasted for about one hour and 40 minutes, the Prime Minister stressed on the need for full commitment and concerted efforts from all parties to ensure the successful implementation of the Ninth Malaysia Plan.
The Prime Minister said: "Each one of us plays an important role in ensuring success of our nation and our race.
"The private sector must take the lead in generating the economic growth while the public sector enables economic growth and is the provider for socio-economic facilities. Civil society must be a partner in development.
"If we want to realise our aspiration to become a developed nation, every citizen has to show commitment and willingness to work hard, improving our self-worth and embrace life long learning."
Datuk Seri Abdullah Ahmad Badawi said the 9MP is consistent with the ambition to build a country with an advanced economy, balanced social development and a population which is united, cultured, honourable, skilled, progressive and farsighted.
"We want progress that is enjoyed by all, regardless of religion or ethnicity.
"We want to build a progressive and developed civilisation that echoes the glorious age of Islam and other civilisations, in line with the concept of Islam Hadhari," he said in his speech in Parliament when tabling the 9MP themed 'Building a civilisation to elevate the nation's dignity.'
As a guide for the rest of the journey, the government has drafted and will implement the National Mission, a framework for the country's development agenda which outlines the key steps to be taken in the next 15 years.
In his speech, the Prime Minister outlined the five thrusts of the National Mission which focused on key priority areas which would enable the nation to achieve Vision 2020. They are:
* To increase the value add of the national economy;
* To raise the country's capacity for knowledge, creativity and innovation and nurture "first class mentality";
* To address persistent socio-economic inequalities constructively and productively;
* To improve the standard and sustainability of the quality of life; and
* To strengthen the institutional and implementation capacity of the country.
The first thrust is to increase the value add of existing economic sectors as well as generate new knowledge-intensive activities and employment in information communication and technology (ICT), biotechnology, nanotechnology and services.
Under this strategy, the government will also build a conducive environment for the private sector to take a leading role in the country's development.
Under the second thrust, the government aims to undertake comprehensive improvement of the country's education system, from pre-school to tertiary and vocational institutions, besides fostering a more enabling environment to encourage Research and Development (R&D).
At the same time, heavier emphasis will be placed on the shaping of values to create more well-rounded individuals.
The third thrust aims to eradicate poverty, generating more balanced growth and ensuring the benefits of growth are enjoyed by the people in a fair and just manner.
The fourth thrust stresses on the provision for basic needs such as water, energy, housing, transportation and other amenities but more emphasis would be placed in addressing issues related to maintenance, upgrading and efficient usage of resources.
In the fifth and final thrust, the government is committed to improve the public services delivery system at various levels, and will also address issues related to corruption and integrity in the public sector and among the general public.
Elaborating on the first thrust, the Prime Minister said the government will continue to promote the transition to higher value added activities in three main sectors, manufacturing, services and agriculture.
He said new sources of growth will be identified and promoted to generate additional income and to develop new sources of economic growth.
With globalisation, "not only does the domestic macroeconomic structure and environment need to be strengthened, elements of the micro economy including the respective economic sectors and local corporations also need to be made more resilient," said Abdullah.
Among others, the government will prepare specific incentives to attract investments, including high quality Foreign Direct Investment (FDI) for manufacturing sector activities that are being promoted. In addition, small and medium enterprises (SMEs) with high innovation capabilities will be promoted to become part of the global supply chain.
The Prime Minister said some of the projects to be implemented to enhance the manufacturing sector include the expansion of Kulim High Technology Park, the establishment of Sarawak Technology Park and Perak Technology Park and the development of 20 industrial and SME parks throughout the country.
To enhance the manufacturing sector, the government will develop several industrial clusters, which include electrical and electronics clusters (E&E) clusters in Penang and Kulim and High Technology Park and petrochemical clusters in Pahang and Terengganu.
To improve access to sources of finance, the government will create several funds such as the Strategic Investment Fund, the Automotive Development Fund, the Industrial Restructuring Fund, the Automation Fund and specific funds for biotechnology, halal products and handicraft.
Abdullah said the government will establish the Halal Industry Development Board to develop the industry in a holistic and orderly manner.
The South Economic Region, he said, will be developed as a dynamic regional services hub as part of efforts to expand the sector from the Klang Valley to other locations.
The government will set up the Export Services Fund and SMEs Export Services Fund to enhance the services sector's access to financing.
On tourism, Abdullah said the government will also develop Malaysia as a regional centre for health tourism in both traditional and modern health treatments through the creation of a brand for Malaysian health services, which will be known as "Health Malaysia."
The Prime Minister said, the government will double efforts to develop Malaysia as a regional centre for excellence in the provision of tertiary level education through strategic marketing efforts and the branding of educational products.
He said the agriculture sector will be given a new lease of life in order to become the third engine of economic growth through the 'New Agriculture' programmes, which will focus on enhancing the value chain, cultivating high value added agricultural activities and large scale commercial farming, utilising ICT as well as exploiting the full potential of biotechnology.
The New Agriculture programmes which also encourage participation from the private sector, graduates and agriculture entrepreneurs, are aimed at making Malaysia become a net export of food by 2010.
The Prime Minister said, to realise these objectives, the Prime Minister said, the government had allocated RM11.4 billion for the agriculture sector, a 70 per cent increase over the allocation in the Eighth Malaysia Plan (8MP).
"There are no limits to the upside potential of this sector if it is managed effectively. The agriculture sector needs to be viewed through a new lens, infused with fresh conviction, developed with a new spirit - a new agenda," said Abdullah.
Other sectors to be focused in the first thrust of the National Mission include generating new sources of wealth through ICT and biotechnology and creation of new jobs to keep unemployment low and to ensure that graduates and skilled workers are able to secure employment suitable to their qualifications.
At the same time, focus will also be given to efforts to make the private sector a driver of economic growth by promoting the Private Financing Initiative (PFI) as a new approach under the privatisation programme; and to expand the market for Malaysian products and services which will help strengthen its position in traditional markets and by exploring new markets.
On the second thrust, the Prime Minister said the development of quality human capital will be intensified, which will be a holistic approach and with emphasis on the development of knowledge, skills, intellectual capital in science, technology and entrepreneurship, while developing a culture that is progressive, coupled with high moral and ethical values.
"This is what is meant by human capital with first class mentality," said the Prime Minister, outlining three main strategies to be adopted to achieve the objective.
He said the three strategies are firstly, increasing the capacity for and the mastery of knowledge; secondly, strengthening the nation's capabilities in science, R&D and innovation; and thirdly, nurturing a cultured society that possesses strong moral values.
To increase the capacity for knowledge, Abdullah said the government will enhance rural school facilities, especially in Sabah and Sarawak.
At tertiary level, the Universiti Darul Iman in Terengganu and Universiti Darul Naim in Kelantan and a number of polytechnics will be constructed.
The Prime Minister said as part of efforts to make national schools the "School of Choice", all existing national schools will be made "Smart Schools".
He said to this end, RM284 million will be allocated for the Smart School Programme and RM1.51 billion for the Computerisation of Schools Programme.
Under the third thrust, Abdullah said, in addressing socio-economic disparities, the government will fine tune and streamline strategies, taking into account the open nature of the global economy and the lessons learnt.
He said the government has outlined three principles to address the socio-economic disparities, and they are:
* Eradicating poverty and ensuring no one is left out of the development process;
* Generating balanced development especially in under-developed areas and creating more opportunities for direct participation in the country's economic development; and
* Ensuring that all Malaysians benefit from the economic growth fairly and equitably.
Abdullah said to this end, the government is committed to achieving the target of 30 per cent bumiputera equity share ownership by 2020; assisting the development of customary land in Sabah and Sarawak; and raising the share of equity ownership for ethnic Indians to 3.0 per cent by 2020.
Through the fourth thrust of the National Mission, the government is committed towards ensuring that all citizens benefit from the development programmes and share the fruits of success.
"Such development will be more meaningful if it is equitably shared to improve the quality of life of the citizens," said the Prime Minister.
To achieve the objective of the fourth thrust, focus will be made towards meeting housing needs and improving urban services; improving healthcare services with the construction of new hospitals and implementing a human resource development programme in healthcare.
Others include improving transportation facilities and infrastructure, such as the establishment of a National Commission to regulate the overall public transportation system, with a specific commission to be set up for the Klang Valley.
Abdullah said the government will also implement a number of major projects across the country, including the Penang Monorail and the Eastern Dispersal Link in Johor.
To improve the quality of life of the people, the government will enhance water supply systems and overcome floods.
It will also focus on programmes to ensure national security and public order.
The fifth thrust of the National Mission outlines the government's efforts to improve the delivery system particularly amongst government-linked companies (GLCs).
In addition, human capital development amongst the civil service will also be intensified through education and training.
The Prime Minister said to improve the delivery system in the public sector, the government will review and amend laws and regulations which impede development.
He said, a Public-Private Sector Action Committee will be formed to recommend needed amendments to laws and regulations.
Abdullah also proposed the establishment of two National Implementation Action Bodies; one to monitor selected high impact projects from the 9MP and the second to monitor programmes related to the formation of a new generation of the Bumiputera Commercial and Industrial Community (BCIC2).
Before concluding his speech, which lasted for about one hour and 40 minutes, the Prime Minister stressed on the need for full commitment and concerted efforts from all parties to ensure the successful implementation of the Ninth Malaysia Plan.
The Prime Minister said: "Each one of us plays an important role in ensuring success of our nation and our race.
"The private sector must take the lead in generating the economic growth while the public sector enables economic growth and is the provider for socio-economic facilities. Civil society must be a partner in development.
"If we want to realise our aspiration to become a developed nation, every citizen has to show commitment and willingness to work hard, improving our self-worth and embrace life long learning."
