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Malaysia the Next Level… PP16832/01/2013 (031128) Malaysia Economics 27 July 2012 GTP Roadmap 2.0 The Next Level… Suhaimi Ilias PEMANDU launched the Roadmap for Government [email protected] Transformation Plan (GTP) 2.0. at the GTP Open day in KL on 24 (603) 2297 8682 July, which provided some details on the targets, deliverables and initiatives for the next phase of GTP covering the years 2013-2015 Ramesh Lankanathan (GTP 2.0). The GTP was launched in Apr 2009 to improve [email protected] Government performance and delivery in six National Key Result (603) 2297 8685 Areas (NKRAs) – Reducing Crime, Fighting Corruption, Education William Poh (Improving Student Outcomes), Social Welfare (Raising Living [email protected] Standards of the Low Income Households), Improving Urban Public (603) 2297 8683 Transport and Rural Basic Infrastructure. In June 2011, Cost of Living was added as the seventh NKRA. These seven NKRAs under GTP 1.0 remain in GTP 2.0. GTP is implemented in three stages – the first phase i.e. GTP 1.0 started in 2010 and will conclude this year. Raising the bar in GTP 2.0. The seven National Key Result Areas (NKRAs) under GTP 1.0 essentially remain in GTP 2.0 i.e. Reducing Crime; Fighting Corruption; Addressing Rising Cost of Living; Assuring Quality Education; Improving Rural Development; Raising Living Standards of Low Income Households; and Improving Urban Public Transport. The basic issue and challenge for GTP ahead is raising the bar on the targets/KPIs. We feel that the ability of the GTP to broadly meet or exceed targets/KPIs thus far has been a function of realising the “low-hanging fruits”, “quantitative metrics” and “quick wins” given PEMANDU’s and the Government’s professed aim and GTP 1.0 mantra to deliver “Big Fast Results”. Going forward, “higher-hanging fruits”, “qualitative metrics” and “tough fixes” should be the order of the day. GTP 2.0 has to deal with perception gaps and quality issues, which mainly revolves around crime, corruption and education. There is also a need for greater synchronization and better integration of GTP with the Economic Transformation Programme (ETP) and the Strategic Reform Initiatives (SRI) to avoid the risks of policy frictions and conflicting signals. In addition, stronger internal audits and rigorous independent external audits on to the outcomes and results of the NKRA targets/KPIs are a must to detect and prevent “statistical discrepancies and data anomalies” so as to reduce credibility gap in the data and boost confidence on Malaysia’s transformation story. SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS GTP 2.0 Roadmap PEMANDU launched the Roadmap for Government Transformation Plan (GTP) 2.0 at the GTP Open day in KL on 24 July, which provided some details on the targets, deliverables and initiatives for the next phase of GTP covering the years 2013-2015 (GTP 2.0). The Open Day is also an opportunity for PEMANDU / Government to obtain public feedbacks and ideas. The other two GTP Open Days will be held in East Malaysia i.e. Kuching, Sarawak (10 Aug) and Kota Kinabalu, Sabah (14 Aug). Recap on GTP. The GTP was launched in Apr 2009 to improve Government performance and delivery in six National Key Result Areas (NKRAs) – Reducing Crime, Fighting Corruption, Education (Improving Student Outcomes), Social Welfare (Raising Living Standards of the Low Income Households), Improving Urban Public Transport and Rural Basic Infrastructure. In June 2011, Cost of Living was added as the seventh NKRA. GTP is implemented in three stages – the first phase i.e. GTP 1.0 started in 2010 and will conclude this year. The Three Phases of GTP: GTP 1.0 (2010-2012): Establish a new engine for change and deliver substantial outcomes for the people quickly. This includes setting and achieving targets within the National Key Result Areas (NKRAs) and the Ministerial Key Result Areas (MKRAs) to address people’s priorities. GTP 2.0 (2013-2015): More pervasive change within Government. The important aspects of daily life as defined by the NKRAs and MKRAs should have improved significantly. The structure of the economy should have evolved into higher-value-added sectors in line with the New Economic Model, and government productivity should have been further advanced. The first shoots of a higher-income nation should be emerging. GTP 3.0 (2016-2020): Fundamental changes to the Malaysian society as envisaged by Vision 2020 should have happened. People should be experiencing a new sense of being Malaysian, a higher level of prosperity and better public services. It is expected that the Government would then be smaller, more agile and work increasingly in partnership with the private sector to provide public services efficiently. Innovative and people-centric models of public service delivery – centered on choice and competition – should be in place by then. Source: PEMANDU Improved GTP 1.0 outcomes in 2011 versus 2010, with further progress so far in 2012. PEMANDU reported that most of its targets and commitments set for all the seven National Key Result Areas (NKRAs) have been delivered based on the 2011 results. In the second installment of the GTP Annual Report, the outcome in 2011 was much better than in 2010. All six NKRAs exceeded targets and these were achieved without busting their budget allocations, as summarized by the tables overleaf. In contrast, two NKRAs underperformed in 2010 i.e. Social Welfare and Rural Infrastructure. We gathered from media reports that further progress are being made to achieve 2012 targets. 27 July 2012 Page 2 of 13 GTP 2.0 Roadmap Government Transformation Programme’s (GTP) NKRA Overall Performance, 2011 NKRAs 2011 Target (%) 2011 Actual (%) 2011 Budget 2011 Actual Budget Utilisation (MYR m) Budget (MYR m) (%) Crime 100 130 473 349 74 Social Welfare 100 103 506 497 98 Education 100 187 375 265 71 Rural Basic Infrastructure 100 123 6,480 6,086 94 Urban Public Transport 100 108 1,387 1,328 96 Corruption 100 133 7 4 49 Source: GTP Annual Report 2011 Government Transformation Programme’s (GTP) NKRA Overall Performance, 2010 NKRAs 2010 Target (%) 2010 Actual (%) 2010 Budget 2010 Actual Budget Utilisation (MYR m) Budget (MYR m) (%) Crime 100 168 337.9 257.7 76 Social Welfare 100 79 1,170 1,163 99 Education 100 156 244.6 117.5 48 Rural Basic Infrastructure 100 91 3,234 2,372 73 Urban Public Transport 100 107 448.3 397.5 89 Corruption 100 121 8.2 4.3 52 Source: GTP Annual Report 2010 Snippets of the latest developments under GTP 1.0, 2012 NKRA Updates / News Reducing Crime The nation's crime index fell by 10.1% in Jan-May 2012, recording 63,221 cases as compared to 70,343 cases during the same period last year. However, street crime which recorded a 43% reduction as compared to the same period last year was two per cent short of the government target of 45% reduction. The 2012 target is to reduce the index by 5% after the 11.1% drop in 2011 and 15% drop in 2010. Fighting Corruption 991 people were convicted of corruption by MACC, including high-profile titled personalities, and are listed on the MACC portal complete with their photographs, personal particulars and case history. In Jan-May 2012, 211 people were convicted (2012 target: 300) after 496 in 2011 and 284 in 2010. Improving Rural Basic Sarawak has built or upgraded 119.02km of roads in the rural areas in Jan-Apr 2012, far exceeding the target of 48.5km, Infrastructure and built or renovated 924 houses versus the target of 731 houses. A total of 363 out of the 829 Rural Electrification projects have been completed and the remaining projects are in various stages of implementation under the NKRA programme in Sarawak. The number of houses that have been connected with grid electricity supply to date is 21,635. Currently the coverage of rural grid electricity is 74.3%. Improving Urban A fully air-conditioned, 562m long, 5m wide elevated walkway was opened in May 2012, connecting busy areas of Jalan Public Transport Pinang, Jalan Perak and Jalan Raja Chulan with escalator and staircase entry and exit points at strategic locations, forming a major portion of the 1.173km pedestrian linkages connecting Kuala Lumpur City Centre to Bukit Bintang, and improving access to Bukit Bintang and Raja Chulan Monorail Stations, as well as KLCC LRT Station. Education (Improving Principals, teachers and support staff of 124 secondary schools nationwide received about MYR10m under the Student Outcomes) government's new deal for exceeding their set educational goals. The schools selected for the awards made up 5.51% of the country's 2,248 secondary schools. The government's efforts to bridge the rural-urban gap in education had been fruitful, judging from the fact that 67 or 54% of the 124 schools are rural schools. Social Welfare The Government spent MYR706.6m in carrying out various 1AZAM programmes since its introduction, which benefitted (Raising Living 80,597 participants nationwide as of mid-2012 versus 63,147 at end-2011 (end-2012 target:102,747 ). Standards of the Low- Income Households) Under the initiative to increase home ownership among the poor, a total of 5,352 tenants have purchased flats under the People's Housing Project-National Economic Action Council (PPR-MTEN) and Kuala Lumpur City Hall Public Housing (PA DBKL) programmes so far this year, up from the total of 4,865 reported as at end-2011. To recap, the Government had approved the sale of 44,146 flats to existing tenants under these programmes and as of May 2012, 37,133 flats have been offered, and 11,823 tenants have responded that they wished to continue renting.
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