GROSS NATIONAL INCOME PROJECTED TO INCREASE CLOSE TO RM1.7 TRILLION IN 2020, SAYS PM

KUALA LUMPUR, Aug 17 (Bernama) -- Malaysia's Gross National Income (GNI) is
projected to increase close to RM1.7 trillion (US$524 billion) in 2020 under
the government's economic transformation programme from RM600 billion (US$188
billion) last year, Prime Minister Najib Razak said Tuesday.

As a result, it would raise Malaysia's per capita income from RM22,000
(US$7,000) to at least RM49,500 (US$15,000) in 2020.

"To fulfil this high-income nation benchmark as defined by the World Bank,
the country will need to grow at five to six per cent between 2011 and 2020,"
the prime minister said in a statement following a Cabinet National Key Economic
Areas (NKEAs) workshop at the Putrajaya International Convention Centre Tuesday.

Najib, who is also Finance Minister, said a total funding of over RM2.2
trillion (US$690 billion) was required for the economic transformation duration.

"The ETP will result in a significant growth in the job market, a shift
towards higher paid jobs and strengthening of the skills base.

"The initiatives under the 12 NKEAs are projected to create an incremental
3.3 million jobs, of which 63 per cent will be in the middle-and high-income
segment compared to the current 43 per cent.

"Forty-six per cent of the new jobs will require a minimum of vocational or
diploma qualifications," said Najib.

The 12 NKEAs laid down in the 10th Malaysia Plan are oil, gas and energy,
palm oil, financial services, tourism, business services, electrical and
electronics, wholesale and retail, education, healthcare, communications,
agriculture and greater Kuala Lumpur.

Of the 12 NKEAs, 11 are industry sectors and one -- Greater Kuala Lumpur --
is a geography.

Consistent with the strategy to make the private sector the primary driver
of economic growth, 92 per cent of the NKEA funding will be private investment,
with public funding taking up the remainder, he said.

In addition, domestic direct investment (DDI) will account for 75 per cent
of total private investment, with the remaining 25 per cent coming from foreign
direct investment, he said.

The DDI is expected to be funded by the 12 per cent surplus between savings
and investment as a share of Gross Domestic Product (GDP).

Najib said the ETP was the culmination of a substantial body of work to
develop the government's economic agenda, building on the 10th Malaysia Plan,
the New Economic Model (NEM), and the principles of 1Malaysia, People First,
Performance Now.

NKEA Lab involves more than 500 participants from over 200 private sector
companies, government ministries, agencies and regulatory bodies as well as
non-governmental organisations (NGOs).

"It has concluded its deliberations on July 30 and has delivered its
Economic Transformation Programme roadmap to the government," he said.

The NKEA is a driver of economic activity that has the potential to directly
and materially contribute to a quantifiable amount of economic growth.

The NKEA Lab was the follow up to the thousand-person workshop convened in
May where consensus on key growth sectors was achieved.

Najib said NKEA has identified key iconic projects that would deliver the
incremental GNI to achieve high-income nation status, details of which will be
shared with the public during the ETP Open Days in the September-October period.

He said this unprecedented collaboration between the public and private
sectors has identified specific projects and business opportunities underpinned
by the 12 NKEAs laid down in the 10th Malaysia Plan.

The ETP marks a fundamental change in approach towards economic growth in
order to achieve developed nation status in 2020. It is focused on action and
contains well developed and specific deliverables to grow each NKEA.

The proposed ideas have been developed through close collaboration between
the private and public sectors, and in quite a few cases, these projects have
secured firm commitment from private sector investors.

"To ensure strong and transparent delivery, the Economic Transformation Unit
(ETU) in PEMANDU is tasked to deliver and monitor the progress of the programme,
guided by clear and demanding Key Performance Indicators (KPIs) for each NKEA.

"Key to the economic transformation is exacting implementation and this we
must deliver," the prime minister added.
-- BERNAMA


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