ELEVENTH MALAYSIA PLAN

2016-2020
ANCHORING GROWTH ON PEOPLE
 Eleventh Malaysian Plan:
2016-2020
The Eleventh Malaysia Plan sets another historical
milestone as our nation embarks on an important
mission towards a progressive and high-income
nation, as envisioned in Vision 2020.

The focus is now on the increase in income and

wellbeing of the society. The targeted per capita
income would be US$15,000.

2
Outline

1 Introduction of 11MP, 2016-2020

2 11 MP macroeconomic targets

3 11 MP strategic thrusts and game changers

3
 1. Introduction

THE THEME OF THE ELEVENTH MALAYSIA PLAN (11MP) IS

“ Anchoring growth on people

1

People are the bedrock of

the nation
2

Preparing people for the

future
3

Everyone enjoys growth

and development

4
 1. Introduction
11MP is part of a systematic planning of national
development ...
1st Malaya Plan 2nd Malaysia Plan 10MP
6MP 8MP
2nd Malaya Plan 3MP
1st Malaysia Plan 4MP 7MP 9MP Eleventh Malaysia
Plan
5MP

New National National National

Economic Development Vision Policy Transforma-
Post Independence, Policy Policy tion Policy
1956-1970 1971-1990 1991-2000 2001-2010 2011-2020
Growth with Balanced A resilient and New Economic
equity development competitive Model
nation

Vision 2020
1991-2020
5
Outline

1 Introduction of 11MP, 2016-2020

2 11 MP macroeconomic targets
3 11 MP strategic thrusts and game changers

6
 Targets, main strategies and selected macro economic outcomes 2. Targets
Strengthening macro economic resilience for growth

Strategies Initiatives
National Industry Enterprise Multidimensional goals,
Unlocking
productivity potential Malaysia Productivity Enterprise- 2016-2020
Productivity Champions level GDP growth at
to ensure sustainable Blueprint based on productivity
and inclusive growth 5-6%
industry assessments per annum
Public sector and targets
productivity Labour productivity increases
Outcomes from RM77,100 (2015)
Promoting RM 291
to RM92,300
investment to
9.4% billion (2020)

spearhead economic GNI per capita at

Average growth of real private Average private investment RM54,100
growth investment in current prices by 2020
Average monthly household income
increases from RM6,141 (2014)
Increasing exports to RM 57.3
4.6% billion
to
improve trade RM10,540
(2020)
balance Average growth of gross Trade balance
export by 2020 Compensation of employees to
GDP increase from 34.9% (2015)
to 40%
Enhancing fiscal below
(2020)
flexibility to 45%
ensure sustainable Malaysia Wellbeing Index
fiscal position Ratio of Federal Government Fiscal position to be (MWI) to increase
total debt to GDP by 2020 by
balanced by 2020 1.7%
per annum 6
 2. Targets
Income gaps have narrowed since 1990, but higher
growth is needed for 11MP…

1991-2000
1991-2000 (%
(%p.a.)
p.a.) 2001-2010
2001-2010 (%(%p.a.)
p.a.) 2011-2020
2011-2020 (%
(%p.a.)
p.a.)
••GDP
GDP :: 7.1
7.1 ••GDP
GDP :: 4.6
4.6 ••GDP
GDP :: 5.6
5.6
••GNI
GNI per capita
per capita ••GNI
GNI per capita
per capita ••GNI
GNI per capita
per capita
oo RM
RM ::7.8
7.8 oo RM
RM ::6.4
6.4 oo RM
RM ::6.9
6.9
GNI per capita oo USD
USD : 4.2
: 4.2 oo USD
USD : 8.1
: 8.1 oo USD
USD ::6.2
6.2
(US$) ••US$1
US$1 ==RM2.99
RM2.99 ••US$1
US$1 == RM3.62
RM3.62 ••US$1
US$1 == RM3.35
RM3.35

US$15,000

Minimum for high-

-24%
income
economies -30%

GDP: 5-6%
-57% (US$1= RM3.45)
-66%

Malaysia
GDP: 5.3%
(US$1=RM3.24)

Note: Based on GDP (2010 = base year) 7

 2. Targets
Households in all income groups are expected to
enjoy higher income, especially B40 households …

Average monthly household income

(RM’000 in current price)

T20 : RM22,240 % p.a.

Income
Group 2011-2015 2016-2020

National 8.9 9.8

RM14,305 T20 7.2 8.2
M40 9.5 10.1
National Average:
RM10,540 B40 12.7 13.2
M40 : RM9,970
National Median: RM8,420
RM5,662
B40 : RM5,270

Ratio of T20 over

6.90 6.94 5.64 4.22 B40 income
8
 2. Targets
Growth will be driven by domestic demand with
increased contribution from the external sector…
10MP, 11MP, 11MP
2011-2015 2016-2020 •Focus on high quality private
Achievement Target investment in manufacturing and
% to services sector to create high income
% % to
2015 % job
p.a. 2020
GDP p.a.
GDP •Public and private investments will

Real GDP 5.3 100.0 5.0-6.0 100.0 be driven by infrastructure projects

such as high-speed railway, LRT3 and
Consumption 6.8 65.1 5.9 65.3 Pan Borneo Highway
Private 7.1 52.4 6.4 53.9 •Private consumption will increase in

Public 5.5 12.7 3.7 11.5 line with the country's prosperity
•Public consumption is expected to
Investment 9.1 26.8 7.2 28.6
moderate due to prudent spending
Private 12.6 17.3 9.4 20.4
•Positive contribution from net
Public 4.0 9.5 2.7 8.2 exports
Net Exports -7.4 8.4 0.4 6.4
Exports 2.1 74.4 2.1 62.0
Imports 3.8 66.0 2.3 55.6
Note: Based on GDP (2010 = 100) 1
 2. Targets

11MP : GDP is projected to grow 5-6% and is expected to be

driven by productivity …
GDP growth (% p.a.) / % to GDP* GDP growth (% p.a.)
5.0-6.0
5.3

(44.0% )
11MP (48.8%)
• GDP* : 6.0%
• GDP: 5-6%
(16.0%)

(21.4%)

(40.0%
to GDP)
(29.8%)

Note: Based on GDP (2010 = 100) 11

 2. Targets

Manufacturing and services sectors will spearhead

the growth ...

10MP, 11MP,
Sector/ 2011-2015 2016-2020 Construction
% p.a. Mining Manufacturing
Achievement Target

Agriculture 2.4 3.5 Agriculture

Services
Mining 0.9 1.3 56.5 2020
Construction 11.1 10.3 RM1.4 tn
Finance,
Business Others-
Manufacturing 4.8 5.1 Utilities,
Govt.
Transportation, Services,
Services 6.3 6.9 Communications Private
Education
GDP 5.3 5.0-6.0 Trade, & Private
Accommodation & Health
Restaurants

Notes: Based on GDP (2010 = 100) 11

 2. Targets

11MP: Strong economy growth with low inflation and full

employment …
10MP 10MP
CPI (% p.a.), 2.5 2.8
Unemployment (%) 3.0 2.9
11MP
•Inflation is expected to
remain low, averaging 2.5 -
3.0% per annum, on account
of supportive monetary
responses and administrative
measures to contain inflation
•Malaysia has recorded full
employment since 1994

Source :
• EPU forecast
65
Outline

1 Introduction of 11MP, 2016-2020

2 11 MP macroeconomic targets

3 11 MP strategic thrusts and game changers

14
 3. Strategic Thrusts

11MP new dimensions …

• Co-developed over 18 1 Action driven

Focus more on the effectiveness of
months of implementation

stakeholder People-centric
2
engagement with all Focus more on people economy – increase access
to education, healthcare, housing and reducing
segments of society income disparity

• It is the final leg in the

3 Game changers
journey towards To spur growth and ensure inclusivity
achieving Vision 2020,
and lays the 4 Taking the long-term
foundation for further view
Goes beyond 2020
growth
15
The 11MP has 6 strategic thrusts to address the needs 3. Strategic Thrusts

of the rakyat and 6 game changers to accelerate Malaysia’s development ...

Uplifting B40 households

Enhancing inclusiveness 2 towards a middle-class
1 towards an equitable society society

Improving wellbeing for all

2
Enabling industry-led Technical
Accelerating human capital 2 and Vocational Education and
development for an advanced nation Training (TVET)
3

Embarking on green growth

Pursuing green growth for 3
4 sustainability and resilience

Strengthening infrastructure to support

5 economic expansion 4 5 6

Re-engineering economic growth for Enhancing Innovation to Competitive

6 greater prosperity productivity wealth cities 14
STRATEGIC THRUST 1
Enhancing
inclusiveness towards
an equitable society

17
 Strategic Thrust 1 3. Strategic Thrusts
Enhancing inclusiveness towards an
equitable society
Main strategies and selected outcomes Paved roads will
3,000
km be constructed

Empowering communities
8 for a productive and
Transforming rural areas to
out of
prosperous society uplift wellbeing of rural
10 communities
Average score in the
Family Wellbeing
Index

Bumiputera
Uplifting B40 households At least
towards a middle class 1 participation in skilled
society occupation category 60%
RM Mean monthly Enhancing opportunities
5,270 household for the Bumiputera
income in 2020 Economic Community
from RM2,537 in (BEC) to increase wealth
2014 ownership

Accelerating regional
growth for better
RM 236 Realised investment
billion
geographic balance
18
 3. Strategic Thrusts
Game Changer: Uplifting B40 households
towards a middle-class society

Raising the income and wealth of B40 Addressing the increasing

households cost of living

Reducing school dropouts Enhancing integrated Increasing the provision of

entrepreneurship support affordable housing

K9 SME 47,000 50,000

Corp
K9 concept is a primary school SME Corp will coordinate the Program Bantuan Rumah Program Perumahan
with secondary level from Form 1 development of the SMEs owned which will be implemented Rakyat which will be
to 3 that will be expanded by B40 households during 11MP implemented during 11MP
particularly in the rural and
remote areas

Enhancing accessibility to Incentivising investment in Increasing access to

higher education and skills majority B40 households healthcare services
training areas
Community Mobile Flying
CDLeINsaICS CLINICS DOCUTdOaRrSa
20% MNC
Increase access to basic
Increasing the percentage of B40 The private sectors will be healthcare services
households with tertiary incentivised to locate their
educational attainment by 2020 business operations in areas with
from 9% in 2014 majority B40 households 18
STRATEGIC THRUST 2
Improving wellbeing
for all

19
 Strategic Thrust 2 3. Strategic Thrusts

Improving wellbeing for all

Main strategies and selected outcomes

Achieving Providing Creating Improving Enculturating Promoting

universal adequate and quality safer living road safety the spirit of sports for
access to affordable housing environment and 1Malaysia to healthy
quality to poor, low- and for emergency foster social living and
healthcare middle-income communities services to cohesion and unity
households to thrive reduce national unity
fatalities

2.3 47,000 60% 8

minutes
6,800 50%
Hospital beds per Houses to be Percent of Optimised emergency Number of schools Minimum percentag
1,000 population constructed/repaired population response time with Kelab Rukun of Malaysians who
for the poor feeling safe Negara embrace a sports
culture

1:400 606,000 5% 2.0

Doctor to Houses to be developed Annual reduction Road fatalities index
population ratio for low- and middle-income in crime index per 10,000 registered
households vehicles 20
STRATEGIC THRUST 3
Accelerating human
capital development
for an advanced nation

22
 Strategic Thrust 3 3. Strategic Thrusts
Accelerating human capital development for
an advanced nation 2
Main strategies and selected outcomes
Game Changer
Improving labour market efficiency Enabling industry-led Technical and
to accelerate economic growth Vocational Education and Training (TVET)
60% of the 1.5 million jobs that will be created
during the Eleventh Plan will require TVET-
Labour productivity growth related skills
3.7 %
rate per annum

Compensation of Transforming TVET to meet

40 % employees to GDP in
2020
industry demand

Intake of SPM leavers to

225,000 TVET programmes
RM

2,500
Monthly median Improving the quality of education
wage in 2020 for better student outcomes and Strengthening lifelong learning for skills
institutional excellence enhancement
Increase in number of
TOP 58 % employees that will
100 100 % benefit from expansion
of the HRDF act
2 universities in Top 100 of the Student enrolment from preschool to upper
QS World University Rankings secondary 23
Game changer
Enabling industry-led Technical and
Vocational Education and Training (TVET)

60% of the We will enable industry to

1.5 play a greater role across

60%
the value chain, from

million student recruitment through

to curriculum design,

jobs that will be delivery and job placement,

to ensure that the supply of
created during the graduates truly meets
Eleventh Plan will industry demand.
require TVET-related
skills

1 2 3 4 5 6
24
STRATEGIC THRUST 4
Pursuing green growth
for sustainability and
resilience

25
 Strategic Thrust 4 3. Strategic Thrusts
Pursuing green growth for sustainability
and resilience 3
Main strategies and selected outcomes
Game Changer
Embarking on green growth
•Green lifestyle
Strengthening resilience •Reduce, reuse and recycle
against climate change and •Green learning
natural disasters
DRM Establishment of national
crisis and disaster
management Strengthening the enabling
environment for green

2
million
People protected through
flood mitigation projects
growth

Adopting the sustainable

consumption and production
Conserving natural resources for present
concept
and future generations Up to
Reduction in GHGs emission
Terrestrial and inland Coastal and marine areas 40 % intensity of GDP compared
17 % water gazetted as 10 % gazetted as protected areas to 2005 level
protected areas
26
 Game changer
Embarking on green growth
Living and
moving green Reduce, Learning to
reuse, and be green
We will reshape our lifestyle to be recycle (3R) We will instil a shared responsibility
more energy efficient. Households and
industries will be encouraged to use We will look at waste as a valuable to protect the environment through
less energy during peak hours through resource. Households will be education. In schools, sustainable
demand side management practices encouraged to separate their waste consumption and production
such as energy labelling. Residents will to reach a 22% household recycling practices will be embedded in the
have more and better public transport rate by 2020, while private sector will curriculum to instil the right behavior
options, as we move towards energy be encouraged to reuse waste as and mindset.
efficient vehicles. The proportion of inputs for energy conversion or other
renewables in the energy mix will be products.
increased.

1 2 3 4 5 6
27
STRATEGIC THRUST 5
Strengthening
infrastructure to
support economic
expansion

28
 Strategic Thrust 5 3. Strategic Thrusts
Strengthening infrastructure to support
economic expansion
Main strategies and selected outcomes Encouraging sustainable energy
use to support growth

EURO 4M, EURO 5 standards & B15

(15% bio-diesel blending)
implemented
Building an integrated need-based
transport system New generation capacity
7,626
Public transport Malaysian Aviation installed in Peninsular
40 % capital share in Commission as newly
MW Malaysia
GKL/KV established regulator
Unleashing growth of logistics and
Continuing the transition to a enhancing trade facilitation
new water services industry TOP

Annual growth of transport

framework and storage subsector
8.5 % 10 Top 10 in the World Bank
Logistics Performance
Index
99 % Population served by
clean and treated
water
Improving coverage, quality and affordability
of digital infrastructure
Sewerage connected Of GNI per capita for
80 % services coverage,
especially in main cities
95 % Populated areas covered
by broadband 1 %
fixed broadband cost
infrastructure 31
STRATEGIC THRUST 6
Re-engineering
growth for greater
prosperity

30
 Strategic Thrust 6 3. Strategic Thrusts
Re-engineering economic growth for Investing in competitive cities and
greater prosperity regional economic corridors
Main strategies and selected outcomes development

4
Economic development plan
specifically for 4 cities
identified

4 5 6
Transforming Energising Modernising Transforming
services manufacturing agriculture construction
Growth of Growth of Growth of Growth of
Game Changers
6.9%
per annum
5.1%
per annum
3.5
per annum
% 10.3 %
per annum
•Enhancing the
potential of
Contribution of Contribution of Contribution of Contribution of productivity
RM3,488 billion RM1,417 billion RM519 billion RM327 billion •Translating
(56.5% to GDP) with (22.5% to GDP) with (8.2% to GDP) with (5.2% to GDP) with innovation to wealth
9.6 million jobs 2.8 million jobs 1.6 million jobs 1.2 million jobs
•Investing in
competitive cities
Growth of GERD

9.3%
per annum
Contribution of
RM2,421 billion
2%
of GDP
Gross expenditure
on R&D of GDP
Growing or 38.4% Translating
dynamic SMEs to GDP with innovation to
RM 70% of total R&D
2,421 9.5 million jobs wealth
billion across all sectors 70 % expenditure by
Business Enterprises
31
 3. Strategic Thrusts
4 Game Changer: Unlocking the potential of productivity
How? will this be achieved
Why?Is productivity important Malaysia’s approach to productivity will shift from primarily Government-
for Malaysia driven initiatives at the national level to targeted actions across the public
sector, industry players, and individual enterprises.
Greater emphasis on increasing
productivity to achieve a more Strategies
sustainable, inclusive, and high
rate of economic growth

What? will success looklike

labour productivity is targeted
to rise by 3.7% per annum to
RM92,300 in 2020 from
RM77,100 in 2015
sectoral growth will accelerate
due to improvements in
productivity

32
 3. Strategic Thrusts
4 Game Changer: Translating innovation to wealth
Why? is innovation How? will this be achieved
important for Malaysia
Innovation will be targeted at both the enterprise and
As Malaysia continues to move towards a
societal levels, instead of previous efforts which focused
high-value, knowledge-based economy with a
primarily on national-level
strong focus on the services and
initiatives
manufacturing sectors, innovation will be
crucial to raise the overall efficiency and thus
productivity of each sector
Strategies
What? will success look like

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 33
 3. Strategic Thrusts
4 Game Changer: Investing in competitive cities
Why? Important to Malaysia How? will this be achieved

Cities played an important role in a City Competitiveness Master Plans will be developed for
nation’s growth by providing investment four major cities Kuala Lumpur, Johor Bahru, Kuching and
and trade opportunities, as well as Kota Kinabalu as a start, based on key principles that
improving connectivity with rural or increase liveability and stimulate economic growth …
suburban areas

Strategies
What? will success look like
Developing city Strengthening corridors to
competitiveness master fuel regional development
Four major cities in Malaysia will have plans
undergone a step-change in their Strategic review of the
economic growth, importance as talent Enhancing economic density corridor development
hubs, and liveability Expanding Transit-oriented master plans
Development (TOD) Increased investment
City residents will be able to afford
urban housing, have adequate public Strengthening knowledge-
Improved infrastructure
transportation systems, enjoy green and based clusters
open spaces, and have access to Improved talent and skill
Enhancing liveability
economic opportunities that will enable development
them to provide their children with a Adopting green-based
better future development and practices
Ensuring inclusivity
34
Any Question?