The Prime Minister cum Finance Minister, Datuk Seri Najib Tun Razak tabled the Tenth Malaysia Plan (10MP) in the Parliament (Dewan Rakyat) on 10 June 2010. The 10MP, which carries the theme "Towards Economic Prosperity and Social Justice", allocates RM230 billion for development expenditure during the five-year period from 2011 to 2015.
To carry out the Tenth Malaysia Plan development programmes, the Government will make available an allocation of 230 billion ringgit for development expenditure. This will comprise 55% for the economic sector, 30% social sector, 10% security sector and 5% for general administration.
Datuk Seri Najib Tun Razak outlined five key strategic thrusts under the 10MP to enable Malaysia become a high-income and developed nation by 2020.
10MP: Five Strategic Thrusts
To achieve the aspirations of the 10MP, five key strategic thrusts have been identified. These thrusts are holistic and comprehensive strategies to achieve the objectives and targets set in the 10MP. The five thrusts are as follows:
(1) Designing Government philosophy and approach to transform Malaysia using NKRA methodology;
(2) Creating a conducive environment for unleashing economic growth;
(3) Moving towards inclusive socio-economic development;
(4) Developing and retaining a first-world talent base; and
(5) Building an environment that enhances quality of life.
10MP: 10 Main Premises
Transforming the nation towards achieving Vision 2020 requires a holistic and focused approach. We can only succeed if we put our hearts and minds to it. This Plan is based on 10 ideas, which have been translated into 10 Main Premises as follows:
(1) Internally driven, externally aware;
(2) Leveraging on our diversity internationally;
(3) Transforming to a high-income nation through specialization;
(4) Unleashing productivity-led growth and innovation;
(5) Nurturing, attracting and retaining top talent;
(6) Ensuring equality of opportunities and safeguarding the vulnerable;
(7) Concentrated growth, inclusive development;
(8) Supporting effective and smart partnerships;
(9) Valuing our environmental endowments; and
(10) Government as a competitive corporation.
12 National Key Economic Areas (NKEAs)
The main approach in transforming to a high income economy will be to adopt strategies based on specialisation, given that strong and sustainable competitiveness is difficult to achieve without specialisation. This Plan will focus on 12 national key economic areas or NKEAs which have potential to generate high income. Apart from 11 sectors, Greater Kuala Lumpur has also been selected as an NKEA as it has the potential to become a world-class city that can be a driver of economic growth. Details of the NKEA will
be finalised in the Economic Transformation Programme, which will be announced in October. The following are the NKEAs:
(i) Oil and gas; (ii) Palm oil and related products; (iii) Financial services; (iv) Wholesale and retail; (v) Tourism; (vi) Information and communications technology (ICT); (vii) Education services; (viii) Electrical and electronic; (ix) Business services; (x) Private healthcare; (xi) Agriculture; and (xii) Greater Kuala Lumpur.
10MP to Stimulate Private Sector Investments
A key challenge of the 10MP is to stimulate private sector investments to grow at 12.8% per annum or 115 billion ringgit per annum.
Smart and effective partnerships between the public and private sectors will be established to drive the economic transformation agenda. This new wave of public-private partnership (PPP) will ensure equitable sharing of risks and returns. To help the private sector finance these projects, a Facilitation Fund of 20 billion ringgit will be provided under the 10MP. This fund aims to help bridge the private sector viability gap with respect to projects that have a strategic impact and those with huge economic spill over. The fund is expected to attract private sector investments worth at least 200 billion ringgit during the Plan period.
The private sector will also have the opportunity to participate in the development of several projects led by government-linked companies (GLCs). These include projects such as the Kuala Lumpur Strategic Development by 1Malaysia Development Berhad (1MDB) covering the Sungai Besi Airport area, the KL International Financial District in Kuala Lumpur, construction of the liquefied natural gas regasification plant by PETRONAS in Melaka at an estimated cost of 3 billion ringgit as well as two aluminium smelters in SCORE Sarawak with an estimated cost of 18 billion ringgit.
To date, 52 high-impact projects worth 63 billion ringgit have been dentified for implementation. These include (1) Seven highway projects at an estimated cost of 19 billion ringgit; (2) Two coal electricity generation plants at an estimated cost of 7 billion ringgit; and (3) Development of the Malaysian Rubber Board.s land in Sungai Buloh, Selangor covering an area of 3,300 acres at an estimated cost of 10 billion ringgit.
The objective of Bumiputera ownership restructuring in the early 1970s was focused on equity ownership. Going forward, the measurement of Bumiputera participation in the economy will be enhanced to include financial and non-financial assets, such as real estate and business premises as well as professional employment. At the same time, the target of achieving at least 30% Bumiputera corporate equity ownership at macro level remains.
An important measure in the 10MP is improving the method of financing for public venture capital companies. Currently, government financing for public venture capital companies, such as the Malaysian Technology Development Corporation and Malaysian Venture Capital, is provided through long-term loans. In this Plan, financing will be in the form of equity to match the risk profile of venture capital investment. For this purpose, the Mudharabah Innovation Fund (MIF), with an allocation of 500 million ringgit, will be introduced to provide risk capital to government venture capital companies.
The Government will set up a Business Growth Fund with an initial allocation of 150 million ringgit. The aim of this fund is to support these companies until they can generate sufficient commercial value to attract venture capital financing and other forms of financing.
To ensure that the SMEs have better access to financing facilities, the Government established the Working Capital Guarantee Scheme totalling 7 billion ringgit under the Second Economic Stimulus Package. In view of the encouraging response to the Working Capital Guarantee Scheme, the Government will provide an additional 3 billion ringgit under 10MP, making it a total of 10 billion ringgit.
Currently, only 23% of our workforce is highly skilled. This percentage is much lower compared with other developed countries. We need to improve the composition of highly skilled workers to at least 37% by 2015, to become a developed nation. To encourage private sector involvement in the training for highly skilled workers, the Government will povide financial assistance in the form of loans for employees to undergo training to enhance their qualification. A sum of 500 million ringgit will be provided under the Skills Development Fund Corporation and this is estimated to benefit at least 38,000 employees.
The Government will also promote environmentally friendly housing by introducing guidelines and a green rating system. Putrajaya and Cyberjaya will serve as flagship green townships. The Government will take the lead in adopting green building standards. New Government buildings will be designed to meet green standards. Energy efficiency of existing buildings will be enhanced and as a showcase example, the Prime Minister.s Office complex will be upgraded to meet the Gold Standard Green rating.