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New Economic Model for Malaysia

Prime Minister cum Finance Minister, Datuk Seri Najib Tun Razak unveiled the New Economic Model (NEM) at "Invest Malaysia 2010" conference.on 30 March 2010. NEM will transform the nation into a high-income economy that is sustainable and inclusive and will position the nation on the right path towards attaining developed nation status by 2020.

The NEM would make Malaysia more competitive regionally and globally with benefits accruing to all Malaysians, with their per capita income increasing to US$15,000 by the end of the decade from US$7,000 currently.

Under the NEM, the Government would no longer tolerate practices that support the behaviours of rent-seeking and patronage, which have long tarnished the altruisic aims of the New Economic Policy (NEP).

The New Economic Policy (NEP) has 3 goals:

(1) Malaysia aims to become a high income advanced nation, lifting real growth rate to an average of 6.5% per annum over the 2011-2020 period, per capita Gross National Product (GNP) will rise to about USD15,000 by 2020.

(2) Growth will be inclusive, i.e. no-one left behind. Target the assistance to the bottom 40% of households – of which 77% are bumiputeras and many are located in Sabah and Sarawak.

(3) Growth will be sustainable in terms of ensuring macro-economic stability and preservation of natural resources and the environment to protect future generations.

Eight Strategic Reform Initiatives (SRIs):
The NEM requires bold changes through an Economic Transformation Programme (ETP). The ETP will be driven by eight Strategic Reform Initiatives (SRIs) which will form the basis of policy measures. Implementation of the ETP will drive Malaysia to achieve the following characteristics. Malaysia will be:

(1) Re-energising the private sector to drive growth –
Firing up the private sector will stimulate a jump in investment in high value added products and services, generating sustained growth and high income.

(2) Developing a quality workforce and reducing dependency on foreign labour–
Policies will focus on generating a talented workforce to meet the needs of a high-value
knowledge economy while wage-restraining labour market distortions, such as excessive
and indiscriminate use of foreign labour, will be removed.

(3) Creating a competitive domestic economy –
Subsidies, price controls and a myriad of distortion-creating incentives will be phased out. The impact on the vulnerable groups will be cushioned with an enhanced social safety net.

( 4) Strengthening the public sector –
Public sector reform programmes will continue to improve and speed up decision making by a lean, consultative and delivery focused government.

(5) Transparent and market-friendly affirmative action –
To truly foster equal and fair economic opportunities, affirmative action programmes will continue but will aim to achieve their objectives by removing the rentseeking and market distorting features which have limited their effectiveness.

(6) Building the knowledge base and infrastructure –
The key focus here is to promote an environment for innovation by strengthening the delivery of high quality education that nurtures innovation and technology.

( 7) Enhancing the sources of growth –
Malaysia will leverage its natural endowment and sectors of comparative advantage as
the main sources of high value added growth maximising spillover effects into new areas of activities.

(8) Ensuring sustainability of growth –
Preserving our natural resources and safeguarding the interest of future generations
will be complemented by sustainable public finances through stringent fiscal discipline.

The following are some of the highlights of what Datuk Seri Najib Tun Razak announced:

* Malaysian Industrial Development Authority (MIDA) will be corporatised and renamed as Malaysian Investment Development Authority to make it more effective as an investment promotion agency;

* State investor Khazanah to sell 32 per cent stake in Pos Malaysia;

* To list stakes in two Petronas units;

* Facilitate foreign direct and domestic direct investments in emerging industries/sectors.

* Remove distortions in regulation and licensing, including replacement of Approved Permit system with a negative list of imports.

* Reduce direct state participation in the economy.

* Divest GLCs in industries where the private sector is operating effectively.

* Strengthen the competitive environment by introducting fair trade legislation.

* Set up an Equal Opportunity Commission to cover discriminatory and unfair practices.

* Review remaining entry restrictions in products and services sectors.

* Phase out price controls and subsidies that distort markets for goods and services

* Apply government savings to a wider social safety net for the bottom 40 percent of households, prior to subsidy removal.

* Have zero tolerance for corruption

* Create a transformation fund to assist distressed firms during the refom period.

* Easing entry and exit of firms as well as high skilled workers.

* Simplify bankruptcy laws pertaining to companies and individuals to promoteo vibrant entrepreneurship.

* Improve access to specialised skills.

* Use appropriate pricing, regulatory and strategic policies to manage non-renewable resources sustainably.

* Develop a comprehensive energy policy.

* Develop banking capacity to assess credit approvals for green investment using non-collateral based criteria.

* Liberalise entry of foreign experts specialising in financial analysis of viability of green technology projects.

* Reduce wastage and avoid cost overrun by better controlling expenditure.

* Establish open, efficient and transparent government procurement process.

* Adopt international best practices on fiscal transparency.

The Government will gather the input from the public and provide them the opportunity to be part of the decision-making progress over the coming 3 - 6 months in transforming the nation's economy.

Posted Date: 8 Jan 2011

Issues List

Salary Guide, Starting Salaries for 160 Selected Skill-Based Jobs
National Budget 2017
Scheme Micro Financing
Workshop on Sarawak Rural Economic Transformation
Industrial Innovation Program and STTF
Update on Immigration Guideline & Procedure
Minister of Industrial and Entrepreneur Dev
Malaysian Global Innovation and Creativity Centre (MaGIC)
Malaysian Chinese Women Entrepreneurs Foundation
Soft Loan Scheme for Automation and Modernisation
ASEAN Economic Community (AEC) Open Day
Investment Opportunities in the Resource Based Industries
OSH CLASS Regulations
2015 Bank Negara Malaysia Annual Report
Eleventh Malaysia Plan (11MP)
National Budget 2016
Briefing on Labour Chapter, TPPA
Trans-Pacific Partnership Agreement (TPPA)
Go-Ex Programme
KOJADI SME Loan Scheme
Amendments to Regulation 32(1) of the Employees’ Social Security (General) Regulations 1971
Bank Negara Malaysia Annual Report 2014
Green Technology Financing Scheme (GTFS)
The Factories & Machinery (Person-In-Charge) (Amendment) Regulations 2014
Income Tax (Deduction From Remuneration) Amended
Prime Minister's Hibiscus Award
GST Exempt, Zero-Rated and Relief Lists Gazetted
National Budget 2015
Application for GST e-Voucher
Registration for GST before 31 December 2014
Opening of EXIM Bank Kuching
National Budget 2014
Official Opening of Bank of China & Visa Center
MIDA e-Application
Termination of the GSP from 2014
Certificate of Responsibility on Food Safety
Imposition of Customs (Prohibition of Imports) Order on Construction Materials
Updated Import Mechanism for Iron and Steel Products
Minimum Retirement Age Act 2012
Programme on Training Scheme 1Malaysia
New Requirement for Food Exports to China
New Guidelines for Market Development Grant
National Budget 2013
Domestic Investment Strategic Fund
The Investment Coordinating Board of Indonesia (BKPM)
Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI)
Operator of Steam Boiler
Certificate of Fitness of Steam Boiler
Launching of MIDA new headquarters and logo
Pos Malaysia Shopping Portal
Get Malaysian Business Online (GMBO)
Department of Skills Development Malaysia
Customs Appeal Tribunal
The Minimum Wage Order 2012 Gazetted
Malaysian Competition Act 2010 Is Enforced
GST Implementation in the Near Future
National Budget 2012
Government Financial Assistance Programmes By Malaysian Industrial Development Finance (MIDF)
Malaysia Export Exhibition Centre
SME Development Programmes
Tebedu Inland Port
Malaysia National Budget 2011
Strategic Trade Act 2010 (STA)
IRB E-ledger
APEC Website on Tariffs and Rules of Origin (WebTR)
Highlight of Tenth Malaysia Plan (2011-2015)
New Economic Model for Malaysia
Malaysian Competition Act 2010
Malaysia National Budget 2010
Issues Raised at the Economic Council Dialogue
Employers Can Reduce Their Employees' Monthly Tax Deductions
Tax Incentives for the Manufacturing Sector in Malaysia
Halal Industry Development Corporation (HDC)
Malaysia External Trade Development Corporation (MATRADE)
National Budget 2009
Investment & Trade Dialogue and Seminar 2009
Seminar Keselamatan dan Kesihatan Pekerjaan
An Introduction Programme of GMP
Optimising Opp under Malaysia Free Trade Agreement
SMI & SME Intellectual Property Awareness Campaign
Briefing on the Malaysia Benchmarking Index (MBI)
Advertise in SMA 50th Anniversary Directory 2013
SMA Membership Directory 2003: Sample 2
SMA Membership Directory 2003: Sample 1
Contribution Rate For Employees Who Are Above 55 y
Special Taskforce to Facilitate Business (PEMUDAH)
Trade Exhibitions in Malaysia 2008 - 2009
Sarawak Corridor of Renewable Energy (SCORE)
Development Financial Institutions
Definition of SMEs:
2008 Budget Highlights
GS1 Identification System
Skill Training Programmes (Technical & Vocational) By Government
Useful Website
Third Industrial Master Plan (IMP3) 2006 ¨C 2020
International Trade Malaysia 2007
Liberalisation of Foreign Exchange Administration Policies
YB Encik Larry Sng Visited Chuan Ming Sdn Bhd
2007 New Appointed Consul-General in Kuching
Patron, Hon President, Advisors & SMA Council
2007 Budget Highlights - Tax Commentary
MIDA & MATRADE - Trade and Investment Mission
Lee Fah Mee Sdn Bhd HACCP Certificate Presentation Ceremony
Human Resources Development Berhad
Ready Built Factories for Sale and Rental
Certify Your Profession - Put Up Your Skill Badge
TOCC Accredited Kilang Ceria Alam
KKB & Sarawak Enterprise Sign MoU
Ministries of Agriculture Visited Sea Horse Co S/B
ISO 9001:2000 Recognition For Sarawak Slipways S/B
China Council for the Promotion of International Trade
Registration With MATRADE
Asia Pacific Natural Products Expo
Grant for Development and Promotion of Halal Product
Grant for Enhancing Product Packaging, Design and Labeling Capabilities of SMEs
The RosettaNet
WTO Agreement on Technical Barrier to Trade (TBT)
The SME Bank
The Amended Sarawak Labour Ordinance be enforced from 1 October 2005
Electronic Procurement System (ePerolehan)
Additional Incentives for the Manufacturing Sector for Sarawak
Conclusion of the Second National SME Development
Japanese Interested in Business Venture in Sarawak
Closer Economic Partnership Arrangement (Cepa)
The Industry R& D Grant Scheme (IGS)
Hong Kong Trade Development Council Trade Fairs
Assistance For Cleaner Production / Waste Treatment Projects Implementation
Sabah International Expo 2004
Financial Schemes Under MITI For Small And Medium Enterprises (SMEs)
Registration of SMIs with SMIDEC
Registration of Exporters with MATRADE
SESCO Connection Charge Guidelines 1/2003

 

 

 


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