September 2018

TRANSFORMATION * INNOVATION * PARTNERSHIP

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Malaysia Productivity Corporation, P.O. Box 64, Jalan Sultan, 46200 PETALING JAYA MALAYSIA

Website : www.mpc.gov.my Email : [email protected] Tel : 603 – 7955 7266 / 7955 7050 Fax : 603 – 7957 8068 / 7955 1824

Preface 1. Revisiting NEM 2. Understanding NEM 3. Goals of NEM and NTP 4. The NEM - NTP Story 5. The NEM - NTP Story II 6. The NEM - NTP Story III 7. The NTP Story 8. The NTP Story II 9. Catalysing the Economy 10. Nurturing Future Talent and Inclusiveness 11. Sustaining Socio-Economic efforts 12. Sustaining Growth and Resilience 13. NKRA on the Raising Cost of Living 14. Creating Sustainable Rural Communities 15. Making Public Transport a Choice 16. Alleviating Poverty for Inclusiveness 17. 1AZAM for Sustainable Livelihood of B40 18. Raising Quality through Performance-driven Culture 19. Building National Talent Capacity 20. Public Service Delivery as Exemplars of Excellence 21. Effective Public Service Delivery through Continuous Innovation 22. Aiming for World-class KL/ Klang Valley 23. Enhancing City Liveability and Sustainability 24. KL in the ASEAN Region

Preface

I am delighted to share here the 2017 Collection of e-Sustainable Productivity Talk bulletins. Sustainability has been given much importance globally. We certainly need to translate the three pillars of sustainability: economic, environment and social into actions. The bulletins of 2017 have narrated on how Malaysia has through the New Economic Model (NEM) and National Transformation Programmes (NTP) addressed the EES especially on developing a progressive level of social well-being and harmony for Malaysians to ensure sustainable growth and resilience for the country. As global climate changes drastically, much more work would be needed to achieve sustainability in the true sense. Remember “We are all in this together”. Hence, do appreciate and give gratitude for what the planet Earth is providing us and consume with due responsibility!

Shaik

Dr. Shaik Roslinah Bux, Author of e-Sustainable Productivity Talk/ Deputy Director, Productivity & Competitiveness Development (PCD) Division, Malaysia Productivity Corporation (MPC) (E) [email protected] September 2018

e-Sustainability Talk 1/2017: Revisiting NEM

Welcome to the brand new year of 2017! The year 2016 was more dramatic than 2015 globally. In view of the global challenges awaiting this year, be it economically, environmentally or socially, it is important that we have our fundamentals right. This, in turn, will help us to manoeuvre our anticipated bumpy journey throughout 2017. One pertinent thought that was conveyed by one of our affiliates recently is the need to revisit and understand our New Economic Model (NEM) that was unveiled to us on 30th March 2010. NEM was developed in tandem with the 10th Malaysia Plan (2011-2015). It has the aim to guide our nation’s development and transformation towards Vision 2020. Hence, it makes sense that we should revisit NEM as we work on our 11th Malaysia Plan (2016-2020) and the impending Malaysia Productivity Blueprint. By the way, after 6 years, how many of us (apart from our young Malaysians) remember what NEM is? In this bulletin, I will share some pertinent pointers of NEM: 1. NEM is an output from our National Economic Advisory Council (NEAC) mandated by the Prime Minister of Malaysia to formulate an economic transformational model for Malaysia; 2. The NEAC was mooted by the Prime Minister to evaluate the nation’s economic state, and to recommend medium-to-long term strategic guidelines for structural reforms aimed at propelling Malaysia to a higher level of competitiveness and efficiency; 3. NEAC had the role to provide fresh independent perspective in transforming Malaysia from a middle income to a high-income economy by 2020; and 4. The NEAC is also entrusted to provide fresh views on bridging the gap between public and private sectors, create new public-private partnerships and intensify regional cooperation (i.e. AEC from ASEAN) towards sustainable GDP growth. Numerous pre-NEM issues and challenges have been highlighted and we need to take cognizance of how much of the following issues and challenges have been addressed. This is crucial as we have less than three years to reach 2020. Issues / Challenges Remark / Question . Middle income trap Are we still trapped? . Slower economic engine & emergence of These two phenomena are getting more other developing economies challenging by the day! . Declining investment & attractiveness as Are you aware? Malaysia has been doing investment destination much promotion work for FDIs lately. . High dependency on low skilled workers & There have been resistances to change the foreign labours way we do business. Labour intensiveness

will jeopardise our plan to be a developed nation. . Critical stage of human capital – brain Grass always seemed greener on the other drain, migration side. Do we not have our own green grass? . The Government is burdened with Subsidy rationalization is essential if we subsidies want to be a developed nation and compete on a level playing field.

We have certainly come a long way since 2010. Much efforts have been expended and emplaced. In today’s dynamic situation, the challenging journey continues. As everything around us revolves the need for sustainability, I would like to share again a remark of Marco Lambertini, Director-General of WWF International that was published in the Living Planet Report 2014 that I have shared last year: “We are all connected - and collectively, we have the potential to find and adopt the solutions that will safeguard the future of this, our one and only planet.” Remember, Seven Billion Dreams, One Planet, Consume with Care”.

e-Sustainability Talk 2/2017: Understanding NEM

Time sure flies. It was just like yesterday we welcomed 2017; today, we have another week before we bid adieu to January 2017 with two celebrations in tow: the Chinese New Year this weekend, and the Federal Territory Day on 1st. February 2017. The urgent question now is, have we also moved in parallel with the flying time in terms of our contribution towards the betterment of our community and nation. NEM or New Economic Model that was initiated on 30th. March 2010 has three key goals; namely, high-income with targets of USD15,000 to USD 20,000 per capita by 2020, inclusiveness that enables all communities to fully benefit from the wealth of the country, and sustainability, that emphasizes the importance of meeting present needs without compromising future generations. These three goals as depicted in the diagram below1 and that work towards enhancing our Rakyat’s Quality of Life are guided by NEM’s four principles; they are: market friendly, merit-based, need-based and transparent.

Why are we so engrossed in pursuing NEM and putting on connecting goals as we journey along the time highway? Basically, it is about wanting to be a developed nation that is market-led by 2020. We also want to be well governed, regionally integrated, have high sense of entrepreneurism and innovative. Moving into the 2020 status require parallel mind- set transformation. Are we ready to change to achieve the desired national goals? Are we what one of ex-premier has said “First class infrastructure with third class mentality?” Much introspections and retrospections have to be undertaken to determine if we are receptive

1 Source: NEAC

7 to the challenges that come with national advancement efforts or are we merely a cork in the bottle – a hindrance to national transformation efforts? This self-evaluation determines the sustainability of our national growth. Remember, we have less than three years to reach 2020 and there are almost Eight Billion Dreams now but only one planet; hence, the need to be 1Malaysia and pursue our national goals with care.

e-Sustainability Talk 3/2017: Goals of NEM and NTP

Hello February 2017! After a month of adjusting ourselves for the New Year, the momentum to address dynamic changes and the anticipated global challenges that lay ahead is slowly picking up. Cognizance must be taken to move in parallel with the changing times. In Malaysia, we have the second. half of our New Economic Model (NEM) Agenda (2010- 2020) to achieve. This is being carried out through our 11th Malaysia Plan (2016-2020). I have shared in my earlier bulletin that NEM has three key goals as depicted in the diagram below.

Source: NEAC The goal of the NEM is for Malaysia to be a developed and competitive economy where Malaysians could enjoy high quality of life and high level of income resulting from growth that is both inclusive and sustainable. The NEM is one of the four important pillars needed to achieve Vision 2020. The other three pillars of the national transformation program are: (1) 1Malaysia; (2) Government Transformation Program (GTP); and (3) the current 11th Malaysia Plan (2016-2020). 1Malaysia was launched in April 2009 with the tag line of People First, Performance Now. The aim of 1Malaysia is to preserve and enhance unity in diversity. This was followed by GTP in January 2010. GTP has six national key result areas (NKRAs) and the aim to ensure effective delivery of government services. The 11th Malaysia Plan is a continuation effort from the 10th Malaysia Plan launched in June 2010 to ensure smooth implementation of our government’s development programme with macroeconomic growth targets and expenditure allocation. NEM is a key driver for

Economic Transformation Program (ETP). ETP was launched in March 2010 with eight Strategic Reform Initiators (SRIs). Since 2015, both GTP and ETP have been synergized and reported as a cohesive national transformation story to the nation. The National Transformation Programme (NTP) is an instrumental catalyst in improving public service delivery through the GTP and reshaping the dynamics of public-private sector collaborations through the ETP. I will share more on the NTP-NEM story in my next bulletin. Till then, remember Eight Billion Dreams (worldwide) and we need to be 1Malaysia and pursue our national goals with care, inclusivity and sustain

e-Sustainability Talk 4/2017: The NEM-NTP Story

Hello again! I have shared on our New Economic Model (NEM)’s goals and a prelude on our National Transformation Programme (NTP). Both NEM and NTP have the same target of Vision 2020. In this bulletin, we will continue the journey of enhancing our understanding on the NEM-NTP story. As strategic moves to achieve our Vision 2020, the Malaysian Government has emplaced three important initiatives: the NTP where the private sector leads while the government facilitates; the NEM through which subsidies are reviewed and rationalized as subsidies are not sustainable in the long run; and our 5-year periodical Malaysia Plan that focuses on innovation, creativity and value-added activities. The three initiatives are synchronized into our economic and social goals through the 1Malaysia concept. The NEM has the foundation of three important principles, namely (1) high income – as defined by World Bank, (2) sustainability, i.e. meeting present needs without compromising future generations, and (3) inclusiveness – enabling all communities to benefit from the wealth of the country. High income has been noted to be achievable through innovation, creativity, higher productivity, new technology as well as the development of multi-skilled and highly skilled workforce. Sustainability focuses on environmental friendly projects, increased quality of life and high and sustained growth path. Inclusiveness is achievable through affirmative actions and narrowing the income inequalities. The important part of NEM is the eight Strategic Reform Initiatives (SRIs). The eight SRIs have become essential policy instruments to drive the model to realization. Besides the Government Transformation Programme (GTP), the NEM is also linked to the Economic Transformation Programme (ETP), the other key component of NTP. The ETP has 12 National Key Economic Areas (NKEA), they are as indicated in the table below: The 12 NKEAs of ETP 1. Oil and Gas 4. Financial 7. Agriculture 10. Tourism Services 2. Education 5. Electrical & 8. Private Health 11. Greater Kuala Services Electronics Care Lumpur 3. Palm Oil 6. Business 9. Wholesale & 12. ICT Services Retail It needs to be repeated here that the implementation of the transformation plans requires the collaboration of both the private and the public sectors. Despite commendable economic achievements in the past few decades, Malaysia is still trapped in the middle- income gap. Malaysia has always have commendable vision and strategy but weak implementation. Hence, delivery is a key issue in realizing the NEM. In enforcing the importance of this factor, the Prime Minister of Malaysia has reminded all public sector

11 employees that delivery is a key performance indicator for 2017. NEM is a timely effort, as fast emerging economies such as Vietnam and Indonesia have become economic forces to be reckon with. This is in addition to the business challenges posed by the BRICS (Brazil, Russia, India, China and South Africa) economic forces. The noble goal of NEM is very much dependent upon the delivery effort of all workforce in Malaysia. With less than three years and a much challenging global scenario, the ability of achieving our Vision 2020 certainly requires the cohesive effort of every Malaysian in striving to become a high income advanced nation with inclusiveness and sustainability. I will share more on the NEM-NTP story in my next bulletin. Until the next bulletin, remember Eight Billion Dreams (worldwide) and we need to be 1Malaysia and pursue our national goals with care, inclusivity and sustainability!

e-Sustainability Talk 5/2017: The NEM-NTP Story II

Welcome to the 11th week of 2017. As we count down to the 2nd Quarter of 2017, it is equally important that we take stock on how we have performed for the past 10 weeks. Cognizance must be taken to differentiate between being busy with many activities and actually achieving desired goals with due deliverables. There is always the need to do a balancing act between quality and quantity output with due effectiveness for outcome. It is always important to do the RIGHT things (effectiveness) rather than doing things right (efficiency). The practice of this principle would determine the success or otherwise of our NEM & NTP initiatives. It is a concern that despite Malaysia being one of the 12 countries that registered an average growth rate of 7% or more per annum in the 25 years since World War II, we are still trying to break free from the “middle-income trap” for the past two decades! The deceleration in Malaysia’s economic growth was attributed to the decline in private investment, initially due to the Asian Financial Crisis in 1998, then the 2008 global crisis and currently, another round of global sluggish economic scenario caused by the drastic decline in global crude oil price for the past few years. Nonetheless, Malaysia has persevered on with various counter-measures guided by the NEM and NTP blueprints to achieve the gross national income per capita of USD 10,570 in 2015. This information reported by World Bank on 1 February 2017 indicated that we are still short by almost 30% from our targeted high income of RM15,000 by the year 2020, and we have less than three years to arrive at 1 January 2020! With many dynamic challenges happening globally, how would we chart the picture come 2020? Stay tuned, we will know by then! As said before, the noble goal of NEM that has been incorporated into our NTP and periodical economic plans depends heavily on the delivery mechanism. The Malaysian Government has continuously made effort to revive and reorient our economy to high-value services as well as boost domestic investment and consumption. One of the enabling mechanisms is the eight Strategic Reform Initiatives (SRI) with corresponding policy purposes as outlined in the NEM blueprint. These are as depicted in the following table: Strategic Reform Initiatives (SRI) Policy purpose 1. Reenergizing the private sector . Target high value-added products and services . Remove barriers and costs of doing business . Create eco-system for entrepreneurship and innovation

. Encourage efficiency through healthy competition . Promote SME growth . Create regional champions 2. Developing a quality workforce and . Increase local talent over time reducing dependency on foreign . Re-skill the existing labour force labour . Retain and access global talent . Remove labour-market distortions constraining wage growth . Reduce reliance on foreign labour 3. Creating a competitive domestic . Improve economic efficiency through economy competition . Build entrepreneurship . Remove market distortions leading to misallocation of resources 4. Strengthening the public sector . Improve decision-making process . Improve service delivery . Reduce “friction costs” . Provide a safety net to facilitate a smooth transition . Strengthen public finance management 5. Transparent and market-friendly . Reduce income disparity affirmative action . Create market-friendly affirmative action . Narrow regional differences . Encourage reward on the basis of performance . Promote equal and fair access to opportunities 6. Building the knowledge base and . Create an ecosystem for infrastructure entrepreneurship . Promote an environment for innovation . Establish stronger enabling institution 7. Enhancing the sources of growth . Create value from first-mover and other comparative advantages

. Develop greater integration between products . Create new markets . Build scale of industries and production networks for specialisation . Harness innovation potential . Integrate real-sector industries with financial services 8. Ensuring sustainability of growth . Preserve natural resources . Leverage on comparative advantages for high value added products and services . Meet international commitments . Facilitate bank lending and financing for “green investments” . Ensure sound public finances

So much for now. The story of NEM-NTP continues in my next bulletin. Till then, have sustainable productivity days ahead, and remember Eight Billion Dreams (worldwide) and we need to be 1Malaysia and pursue our national goals with care, inclusivity and sustainability!

e-Sustainability Talk 6/2017: The NEM-NTP Story III

The past week has been rather exciting for Malaysia as we close the chapter for the 1st Quarter of 2017. There were a few national events; namely the Langkawi International Maritime & Aerospace (LIMA) 2017 exhibition, the launching of the Digital Free Trade Zone (DFTZ) by YAB Prime Minister of Malaysia and Jack Ma of Alibaba Group, and the announcement of the Employment Insurance System (EIS) that will be enforced on 1 January 2018. These are certainly value-adding outcomes from our on-going journey along the National Transformation Programme (NTP) guided by the New Economic Model principles. I have shared the eight Strategic Reform Initiatives with corresponding policy purposes in my bulletin 5/2017. Analysing the said items reveal similar ideas being reiterated and expanded in the 11th Malaysia Plan (2016-2020) and numerous national economic papers. There have also been a growing emphasis for foreign direct investment (FDI) abroad as further sources of growth. The rational is that local market is relatively small. Although the population of Malaysia is estimated to be about 31 million now, resources can be quite limited. As a small economy, Malaysia has to invest more abroad to benefit from bigger foreign market and resources. Other small economies such as Singapore, Sweden, Switzerland and Taiwan have set their long-term growth strategy through FDI abroad. Local market and domestic resources for these economies are also small and limited. Hence, Nestle of Switzerland, a widely known brand and company, obtains 90% of its revenue through its vast investments overseas. Advancements in technologies have increased the production capacity of various industries in Malaysia resulting in more supply than domestic demand. Therefore, FDI abroad whether through smart partnerships or joint ventures would enable Malaysia to penetrate more overseas market for various local products. Barriers, transportation costs and other new forms of barriers have made direct export from domestic market difficult. Production of local products abroad and partnership with foreign companies could accelerate local market expansion as well as develop foreign customer’s loyalty. In this aspect, Petronas, Maybank, CIMB, YTL, Genting Group, AirAsia, Axiata Berhad and Limkokwing University have explored the potentials of international market with noted success. It is encouraging to know that many large Malaysian companies of diverse background have taken the national transformation challenge and facilitate the aim of Malaysia to be a high-income economy by 2020. As transformation plans and strategies are assimilated in our subsequent national agenda, we will talk more about our NTP in my following bulletins. Until the next bulletin in Quarter 2 of 2017, have sustainable productivity days ahead. Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity and sustainability!

e-Sustainability Talk 7/2017: The NTP Story

Welcome to the 2nd Quarter of 2017. The National Transformation Programme (NTP) has been instrumental in building our nation’s socio-economic resilience and sustainability. Since the start of the NTP in 2010, the Government Transformation Programme (GTP) has improved public service delivery while the Economic Transformation Programme (ETP) reshaped the dynamics of public-private sector collaboration. Beginning 2015, PEMANDU combined both the GTP and ETP’s achievements and challenges into one report; namely, the NTP Annual Report 2015 to provide a cohesive national transformation story. The past seven years were eventful. However, concerted efforts from all parties have enabled Malaysia to fare relatively well economically against numerous challenges such as uncertainties in large global economies, low commodity prices and trade competition that impaired the value of the ringgit and investor’s confidence in Malaysia. As indicated by YAB Prime Minister of Malaysia, the last seven years have been a test of the effectiveness of our transformation work. He opined that leveraging upon inclusive and sustainable measures have facilitated NTP programs to progress accordingly to realise our 2020 goals. The GTP 2.0 initiated in 2012 was able to deliver big fast results to transform the civil service. The ETP continues to spur private sector participation in the economy through the 12 National Key Economic Areas (NKEAs) and Strategic Reform Initiatives (SRI) to create a favourable business environment to facilitate business growth. Hence, armed with the private sector as a key driver through consumption and investment, Malaysia registered a gross domestic product (GDP) growth of 5 percent in 2015. Also in 2015, a historical event took place in April when the long-mulled Goods and Services Tax (GST) was implemented to introduce a fairer taxation system in Malaysia. The introduction of GST was timely as it created the financial buffers for Malaysia as the nation grappled with dramatically dropping oil prices that affected national coffer. The year 2015 also saw the establishment of the national Human Capital Development Council with the role to spearhead policies and initiatives that would facilitate the creation of a globally savvy workforce in Malaysia. Through its concluding journey, NTP continues its trajectory to deliver changes that would uplift the lives of all Malaysians. Research commissioned by World Bank Group through the Competitive Industries and Innovation Programme (CIIP) entitled “Doing, Learning, Being: A study of Malaysia’s Transformation Programme” confirmed that methodologies used to implement the NTP has enabled the nation to reap transformative results. So much for now, I will share more information on NTP in my next bulletin. Here’s wishing everyone sustainable productivity days ahead. Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity and sustainability!

e-Sustainability Talk 8/2017: The NTP Story II

Hello there! In continuing our talk on National Transformation Programme (NTP), let us do a brief recap. NTP is an extended initiative of our New Economic Model (NEM) unveiled by the Prime Minister of Malaysia in 2009. NEM has the aim and plans to turn Malaysia into a globally competitive high-income nation by 2020. NEM was initiated through different approach. In diversion from the conventional top down way, a series of labs participated by stakeholders from the Government, the private sector, civil society and members of the public were organized to pin point problem areas and identify solutions with clear implementation plans that would enable the nation to achieve its high-income target. It was through the consultative labs that resulted in the birth of GTP, ETP and corresponding key performance indicators (KPI) that also created the performance culture among ministries, departments and agencies. All these had since 2015 been reported in one synergized report and one common banner called the National Transformation Programme.

At the beginning, the GTP had six National Key Results Areas (NKRAs); the seventh NKRA on “Addressing Rising Cost of Living” was included on a year later. Subsequently in 2014, the “Public Service Delivery Transformation” which was previously one of the Strategic Reform Initiatives (SRIs) under the ETP became the eighth NKRA. Top sectors of the economy where Malaysia has comparative advantages in were featured as the 12 National Key Economic Areas (NKEAs) in the ETP. Each key result area has respective governance structure to ensure effective and efficient problem-solving, swift decision- making and win-win relationships between Government and private sector. Additionally, to increase the ease of doing business and creating a more competitive environment for companies to thrive, reforms were initiated through the six Strategic Reform Initiatives (SRIs) introduced in 2011. The six SRIs became the enablers to ensure competitiveness. The SRIs formulated from 37 policy measures recommended by the National Economic Advisory Council (NEAC) were the result of consultations held in six labs involving 500 public and private sector representatives in 2011. This conversation on NTP continues in my next bulletin. See you in May 2017! Till then, have sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity and sustainability!

e-SusP Talk 9/2017: Catalysing the Economy

Welcome to the 5th month of 2017. The 8th.of May 2017 marks a historical milestone for MPC as the Honourable Prime Minister of Malaysia launches the Malaysia Productivity Blueprint (MPB). Business will definitely be different from now on for MPC. We will have more challenging and business not as usual assignments that will value-add the function of who we are to the nation. Transformations of mind-sets will have to take place if we are to be the catalyst to spearhead productivity development and growth for the nation. As productivity is a key enabler for economic growth, it is befitting that this periodical bulletin takes on a complementing name: e-SusP Talk that focuses specifically on sustainable productivity efforts of the nation, be it at national, community or individual level. This week’s bulletin talks about the need for us to catalyse the economy. In the midst of challenging business environment, the Malaysian Government has been instrumental in creating and sustaining macroeconomic stability. The government also expend continuous effort to open up avenues where the private sector could participate and build stronger foundation. A desired outcome from these efforts are certainly to achieve the goals of our 2020 targets; namely, high-income nation, sustainability and inclusiveness. The 12 National Key Economic Areas (NKEAs) of our NTP underscore Malaysia’s targeted approach to achieving sustainable economic growth. The government also duly prioritises the 12 NKEAs due to their potential to enhance Gross National Income (GNI).

For inclusiveness and realising private-sector-driven growth, each NKEA offers private sector involvement and investment opportunities through Entry Point Projects (EPPs). As of 2016, there were 149 EPPs that involved both large corporations and SMEs. A noted benefit for small traders where revenues improved was in the Agriculture NKEA. Randomly situated outdoor markets were transformed and integrated into a dedicated community market known as “Pasar Komuniti” or PAKAR. The community markets have improved facilities that encourage higher hygiene standards and a comfortable shopping environment. This, in turn, improves productivity. The first PAKAR that was set up in Manjung, Perak in 2012 recorded initial total sales of RM384,081. Since then, the Government has set up another 10 PAKARs in various states such as Kedah, Negeri Sembilan, Pahang, Johor, Sabah and Sarawak. Two noted outcomes from the 10 PAKARs were the generation of total sales amounting to RM76.6 million and the creation of 2,738 jobs.

In the Wholesale & Retail NKEA, 2216 mom-and-pop stores underwent improvements through EPP2’s small retailer transformation programme (TUKAR) during the period of

2011-2015. A 2013 study revealed that 77 percent of TUKAR participants experienced higher revenues after the transformation, bringing another gain for national productivity. The finding that private investments reached 65 percent of the total investments into the economy towards the end of the 10th Malaysia Plan (2011-2015) complements this encouraging outcome. It is Malaysia’s aspiration to have the private sector owning up to 92 percent of total investment by 2020. So much for now; as we embrace the newly launched MPB, we will have more interesting e-SusP Talks in my subsequent bulletins. Till then, have sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 10/2017: Nurturing Future Talent and Inclusiveness

Hello there. Further to my recent bulletin on “Catalysing the Economy”, we will talk about nurturing future talent and inclusiveness in this issue. Nurturing future talent is a focus that the Malaysian Government has emphasised on since the inception of the National Transformation Programme (NTP) in 2010. The National Key Result Area (NKRA) Education, National Key Economic Area (NKEA) Education and Strategic Reform Initiative (SRI) Human Capital Development were the key drivers for this focus. Under the Government Transformation Programme (GTP) Roadmap 2.0, the NKRA Education recorded an achievement of 132 High Performing Schools (HPS) within five years, exceeding the targeted goal of 100 HPS. It is important that the existing HPS continue to maintain their standards and quality so that the HPS could be the role model for other schools as well as setting international benchmarks. The current Literacy and Numeracy Screening (LINUS) programme has the objective to ensure Primary 3 students are competent in the English Language, Bahasa Malaysia and numeracy. In 2015, this programme charted the performance of 94.1 percent for English Language literacy, 98.6 percent for Bahasa Malaysia literacy, and 99.1 percent for numeracy literacy among the targeted students. This outcome is encouraging as poor quality of English Language command among school students has been a national concern.

Another element of continuous national focus is inclusiveness. As Malaysia strives towards a high-income status, there will certainly be clusters of people who struggle to keep up. Various NKRA teams; namely, the Cost of Living, Low-Income Households and Rural Development have implemented numerous initiatives to reduce the disparity and bridging the economic divide among Malaysians. The six 1AZAM programmes such as AZAM Tani, AZAM Niaga, AZAM Kerja, AZAM Khidmat and AZAM Bandar provided many families with means of generating sustainable income, financial assistance, skills training and motivational sessions. The outcome from the five years 1AZAM’s effort was the reduction of poverty rate in Malaysia from 3.8 per cent in 2009 to 0.6 percent today. The e-Kasih database of 1AZAM that captures the details of households that require assistance was accorded the United Nation’s Public Service Award in 2012. World Bank through its report “Economic Monitor 2014” also recognised Malaysia as “a success story in shared prosperity” as all households experienced income growth. Growth was higher for those households at the bottom of the distribution, a pattern that led to lower inequality. The efforts of NKRA Low-Income Household were complemented by the work of NKRA Rural Development that ensured Malaysians especially those in rural settings, have access to equitable standard of living. As of December 2015, the Water Delivery and

Electricity Delivery initiatives delivered the following: 345,665 rural households nationwide had access to clean and treated water, while 143,899 rural households enjoyed 24-hour electricity. The target is to achieve 99 percent of Malaysian households having access to both clean and treated water as well as electricity by 2020.

Nurturing future talents and inclusiveness are certainly enablers for achieving our NTP and the Malaysia Productivity Blueprint as national agenda are interconnected and should be built-on progressively to facilitate our journey to becoming a high-income nation. So much for now. Until the next bulletin, have sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 11/2017: Sustaining Socio-Economic Efforts

Hello again. We have roughly three and a half years more to achieve our 2020 goals. As a nation, the fundamental resilience of Malaysia has facilitated our capabilities to respond proactively to global volatility in the last two years. However, there are still numerous weaknesses and opportunities that we must work on to enhance our socio-economic developments. The impetus for innovation amongst local companies is still wanting. South Korea that had started on similar footing as Malaysia is now way ahead as a high- income nation. The simple reason being South Korea has successful local companies such as Samsung and Hyundai that have the drive to win it big in the global market. Malaysia has catching ups to do as the nation has not been able to hit the right markets in increasing productivity growth. Hence, the birth of the recently launched Malaysia Productivity Blueprint (MPB) that has the role to expedite our goals achievement set for 2020. The guiding target for MPB and the 11th Malaysia Plan is 3.7% labour productivity growth per annum. Malaysia’s labour productivity growth of 3.5% for 2016 at RM78,128 is only 85% of the 11th Malaysia Plan’s labour productivity target of RM92,300 that should be achieved by 2020. Geopolitical tensions as well as currency and commodity price fluctuations have dampened global economic recovery. Hence, public-private sectors collaborations are rejuvenated where private sector should assume the role to drive national economic improvements as sustainable economic growth must be private-sector- led. Malaysians must realise that the Government can only facilitate and create conducive environment for businesses to thrive. Eventually, it is local businesses that must innovate to produce products and services that can compete with the best. As noted for 2015, growth of private sector’s portion of the national investment ratio was encouraging, charting 65 % of the total investments in Malaysia. It is the nation’s aspiration of getting private sector to own 92 % of total investments by 2020. In the interest of pursuing sustainable and responsible growth for Malaysia, this aspiration is necessary. The private sector should take the lead in attracting investments into the country so that the Government could focus on developing conducive and business friendly environment that enables sectoral growth. This is done in tandem with the continuing effort to improve quality of life, welfare of the rakyat and strengthening our institution. The importance of maintaining the momentum of our transformation effort is crucial for us to attain high- income status in inclusive and sustainable ways. The Government together with the private sector must remain resolute, stay the course and continuously committed to seeing the transformation programme to its completion in 2020. The Government through the National Transformation Programme (NTP) has emplaced the essence of relevance, sustainability and inclusiveness for all. Ultimately, the nation must collectively come

23 together and be united to support national transformation so that a better Malaysia could be delivered to our future generations. We adjourn our e-SusP talk here; until the next bulletin, have sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 12/2017: Sustaining Growth & Resilience

As the first half year of 2017 journeys to a close in less than two weeks’ time, we certainly have much to introspect and retrospect on the many happenings that have taken place for the past six months. Sustainable issues are getting more crucial and critical by the day. Do we care? Many people are still nonchalant about sustainability and their role in this matter. Interestingly, there is a high correlation between the health of our planet earth and the health of the humankind. Have we noticed that there are more diseases and health issues than before; and there are more natural disasters than before? When the planet gets sick, so too will the human race including all living subjects that live on it! The big question remains: how much progress have we made in the quest to be sustainable in everything we do? In this issue, we will talk about sustaining national growth and resilience. Thanks to the interventionist approach taken for our transformation agenda that has enabled Malaysia to withstand global challenges – repeatedly. Our commendable resilience has facilitated Malaysia to chart 5.6% Gross Domestic Product (GDP) growth for the 1st Quarter of 2017. For the past seven years since Malaysia embarked on the National Transformation agenda, the nation as a whole recorded progresses in the Government sector, in the economy and the society as a whole. The Malaysian Government today is able to deliver public services effectively as well as continuously sustain the work of building better living standards for all. There have been many individual transformation stories from the 1AZAM initiatives to infrastructural changes of national pride such as the soon to be completed Klang Valley MRT Sungai Buloh - Kajang (SBK) line. Come 17 July 2017, city dwellers in the Klang Valley will have the opportunity to experience the full impact of the ambitious project. The Government has taken diligent steps to value add and in improving our living standards to the level of developed nations. Numerous projects undertaken had the objective for sustained economic growth that is private-sector-led. Between the years 2010 and 2015, the fiscally resilient measures of the Government enabled the GDP of the country to grow by 30 percent. The continued investment and consumption from the private sector also fuelled this growth. This outcome is encouraging as it is in line with the aspiration of the Economic Transformation Programme (ETP) to see increased participation of the private sector in driving the economy forward. Coming back to the SBK, dwellers at the southern region of the Klang Valley certainly look forward to the date 17 July 2017 so that they also get their turn to enjoy the fruits and convenience of the MRT system. The landscape for travelling between Sungai Buloh and Kajang will definitely change. For people who do not like driving around Klang Valley and do not drive at all; this time we can say, “Now, anyone can commute!” So much for now, until the next bulletin, have sustainable productivity days ahead!

Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 13/2017: NKRA on the Rising Cost of Living

Welcome to the second half of 2017. As most Malaysians take stock of respective first half-year performance, achievements and progress, it is equally important to put in place well-thought out plan to guide our second half year journey – regardless if you are working, self-employed or just someone managing something informally such as the home. In this bulletin, we will talk about the hot topic that is at the lips of many Malaysians: the rising cost of living. While the nation goes through the transition process as we strive towards high-income status by 2020, the Government is giving due priority to the Rising Cost of Living (COL) National Key Result Area (NKRA) by easing the transition adjustments and where possible, alleviate the economic burden of our society. Through the COL NKRA, short-term and immediate reliefs are delivered to the specified segments of society in particular Malaysians in the bottom 40 percent (B40) in economic terms. The main aims are to help them cope with the rising cost of living and guide them in better managing their households’ expenditure. In 2015, the Government revised its assistance to the B40 by creating better-targeted system to benefit those of genuine need. One of which is the subsidy rationalisation. The Government had also introduced a more effective and broad-based tax through the six percent Goods and Services Tax (GST) in April 2015. There are pros and cons with the implementation of GST and subsidy rationalisation. Both the GST and subsidy rationalisation activities have indirectly contributed to the increase in prices for goods and services. However, we need to acknowledge the importance of both measures in strengthening the country’s long-term financial resilience. Hence, the Government continues to mitigate price impacts and stay focused in rolling out COL NKRA initiatives to support Malaysians in need. The COL NKRA has undertaken two approaches in accomplishing its objective of providing immediate relief to the rakyat. The first approach being the provision of targeted direct cash assistance through programmes such as BR1M (Bantuan Rakyat 1Malaysia), BB1M (Bantuan Buku 1Malaysia) and BKAP1M (Bantuan Khas Awal Persekolahan 1Malaysia). The BR1M initiative is a targeted direct cash assistance for households earning less than RM4,000 per month. In 2015, 7.1 million Malaysians comprising both households and individuals received BR1M assistance. The BKAP1M initiative aims to ease the burden of parents. The second approach is through the increase of the availability of affordable basic goods and services such as K1M (Klinik 1Malaysia), KR1M (Kedai Rakyat 1Malaysia) and MR1M (Menu Rakyat 1Malaysia). KR1M, K1M and MR1M aim to deliver essential goods and services such as groceries, healthcare and food at prices that are affordable to the B40 as well as enabling them to have more of their disposable income. Produk Rakyat 1Malaysia brands are locally produced, generically branded and usually sold at 15 to 30 percent lower than

27 similar premium brand goods. In retrospection, the Malaysian economy faced economic volatilities from the external environment in 2015. The strengthening US dollar compounded this situation. Two distinct outcomes from the economic volatilities were the decrease in oil-based revenue to the Government and the sliding value of Malaysian ringgit. In addressing this situation coupled with the need to achieve better fiscal discipline, the Government had to make the difficult decision to restructure the country’s subsidy models and implement GST to transform the nation’s taxation system and to make it more efficient. At the same time, the Government also takes cognisance of the rakyat’s pressing needs, in particular the vulnerable households that lack the financial capacity to weather the impact of challenging economic times. Therefore, the government maintains its commitment in sustaining the COL NKRA initiatives to ensure assistance reaches the B40 specifically and ease our general Malaysians’ transitory journey to become a high-income nation by 2020. So much for now, until the next bulletin, have sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 14/2017: Creating Sustainable Rural Communities

Hello. We have arrived at the 29th week of 2017. In my last e-bulletin, we have talked about NKRA on the rising cost of living. We will proceed to the topic of creating sustainable rural communities for this serial. As inclusiveness is a key principle of 1Malaysia, all national development efforts address the needs of the rakyat, both urban and rural. It is the National Transformation Programme (NTP) plan to enhance and equip the rural areas with the provision of basic amenities and to transform rural areas into thriving and sustainable centres of commerce. Between the years 2010-2015, about 5.6 million Malaysians in the rural areas experienced improved standards of living through the delivery of roads, clean /treated water, housing and 24-hour electricity. In tandem with the NTP, the Rural Development NKRA (RD-NKRA) has the aim to ensure inclusive development for the rural folks. It is envisioned that if villages could have modern infrastructure facilities, Malaysia would then be able to reverse the trend of rural-urban movement. Whence the rural landscape could support more high-value economic activities, there certainly would be better job prospects and opportunities in villages, This, in turn, would encourage people who have migrated to the cities to consider reverse migration to revitalise their communities which subsequently would enable the creation of sustainable rural communities. In 2012, the RD-NKRA initiated the 21st century village (21CV) programme to build the rural economies. The 21CV programme was designed to boost rural economies and make them more attractive to the youth in the communities. Through this programme, initiatives such as eco-tourism and premium fruit farming have innovated various rural economic activities, improved access to markets and business opportunities, and empowered rural entrepreneurs to be more independent. Accordingly, residents in Desa Lestari under the 21CV programme enjoy higher income and economic growth as well as value-added rural economies. Besides, there is also the “Large-scale fruit and vegetable farms” Entry Point Project initiative under the 21CV that offers job opportunities to the rural people. Farms of over 200 acres in size are planted with different kinds of premium export-quality fruits such as pineapples, bananas, papayas and melons. These fruits are marketed within Malaysia and abroad, such as Korea and Japan. That is all for this bulletin. We will continue our talk in August. Until then, have sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 15/2017: Making Public Transportation a choice

Welcome back! We have talked about rising cost of living and creating sustainable communities in my last two e-SusP Talk bulletins. This serial will focus on transportation – a hot topic since the launching of the full Sungai Buloh–Kajang (SBK) MRT line on 17 July 2017 by our Honourable Prime Minister of Malaysia. Improving the urban transportation ecosystem is one of the seven National Key Results Areas (NKRA) under the Government Transformation Programme (GTP). As Malaysia is currently on the journey to become a high-income nation, enhancing and developing the nation’s urban public transport system became crucial. It is the Greater Kuala Lumpur / Klang Valley (GKL/KV) commuters’ hope to have efficient, cost-effective, reliable, comfortable and safe public transportation services. The Urban Public Transport (UPT) NKRA aims to create a reputable, reliable service that improves connectivity and accessibility with a focus on public transport demand, customer satisfaction and making public transport more attractive. The GKL/KV region that covers the business and administrative capitals of Malaysia is expected to reach a population of 10 million by 2020. Hence, significant upgrading of the region’s public transportation infrastructure is necessary to cater to the transportation needs of that magnitude. High-impact public transport projects in the GKL/KV area that enhances connectivity and accessibility of public transport modes are part of Malaysia’s economic and sustainable development objectives. Among the high- impact public transport projects are: 1) The 5.4km Sunway Bus Rapid Transit (BRT), a strategically located facility in the busy suburbs of Sunway and Subang Jaya. The BRT aims to alleviate the morning congestion of the busy township that is also served by three major highways (NPE, LDP and KESAS). Currently, the BRT can transport 1000 passengers per hour per direction during peak hours. 2) Phase One of the light rail transit (LRT) Ampang Line Extension Project (LEP) that covers four additional stations; namely, Awan Besar, Muhibbah, Alam Sutera and Kinrara BK5. The Ampang LEP that began operation on 31 October 2015, benefits residents at Bukit Jalil, Projek Perumahan Rakyat Muhibbah, and Bandar Kinrara in Puchong. It increases the Ampang Line daily ridership to 196,000, providing comfortable access to the LRT and the rest of the integrated public transport network. Since opened, the first phase of the LEP has recorded an average daily ridership of 4000 and the constantly full Park ‘n’ Ride facilities, taking about 2000 cars off the road. 3) The free GoKL bus service for four routes within the Central Business District (CBD) to ease city traffic congestion.

4) Smooth transfer from the Kuala Lumpur Sentral Monorail station to the Stesen Sentral Kuala Lumpur via a covered link-bridge through the Nu Sentral Shopping Centre. 5) Construction of the Integrated Transport Terminal (ITT) Gombak in June 2016 to cater for express buses servicing the Eastern Corridor. More than 400 buses will be removed from entering the CBD after ITT Gombak is operational. ITT Gombak is the second of the three planned ITTs. The first ITT at Bandar Tasik Selatan known as Terminal Bersepadu Selatan (TBS) that started operation in 2011 caters to Southern buses. The third ITT that is being planned will be at Sungai Buloh to cater for Northern buses. The UPT NKRA aims to drive up the modal share of public transportation within GKL/KV to 40 percent of all commutes by 2030. The modal share of urban public transport has risen from 10 percent in 2009 to 20 percent by the end of 2015. It became necessary that the public transportation network is integrated, convenient, accessible, easy to use and affordable when compared to driving. One of the key measures to gauge this performance is commuters’ confidence. Hence, SPAD conducts yearly customer satisfaction survey for public transport. There has been a gradual improvement of the customer satisfaction index – from 48 percent in 2010 to 74 percent in 2015. Public transportation as with most other industries is also supply and demand driven. A combination of the pull and push strategies is essential to encourage people to embrace public transport as a way of life. In line with the digital era, the Integrated Cashless Payment System (ICPS), a common payment system for urban rail and bus networks, is another UPT-NKRA focus, targeted to be operational by January 2018. On moving forward, the UPT NKRA has certainly recorded many achievements. The taxi industry is also included in the public transport improvement agenda. SPAD is tasked to see how taxi services can be improved through Taxi Transformation Labs. Outcomes from the labs are being tabled to the Government for approval and rollout implementation. With large-scale investments being put in place to encourage more Malaysians to switch to using public transport, the nation looks forward to realising our target of 40 percent modal share for urban public transport, lesser congestion on urban roads, as well as improved mobility and sustainable quality of life. So much for now, have sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 16/2017: Alleviating Poverty for Inclusiveness

Hello again. In relation to the three New Economic Model (NEM) goals of High Income, Inclusiveness and Sustainability, this bulletin focuses on inclusiveness and its methods of implementation in Malaysia. Inclusiveness is defined as the creation of situations that enable all communities to benefit from the wealth of the country. This goal relates with the objective of our Government Transformation Programme (GTP) “to move Malaysia forward to become an advanced, united and just society with higher living standard for all.” Hence, the Government has established the National Key Results Area (NKRA) to upgrade the living standard of low-income households that is now known as the Bottom 40. The collaboration and cooperation between both private and public sectors have enabled the country to accomplish the reduction of national poverty from 3.8 percent in 2009 to 0.6 percent in 2014. All poverty-alleviating programmes are partner-driven where the government enlist and welcome the participation of non-governmental organisations (NGOs) and private sector partners to help fund and support poverty relieving programs. Taking into cognisance that some of the lowest income households live in the most remote parts of Malaysia, requiring the use of waterborne and airborne transport to reach them, this achievement is quite a feat. Prior to the National Transformation Programme (NTP), many Malaysians lived in areas without basic utilities such as electricity, roads and running water. Besides, there is also the provision of safety nets for vulnerable Malaysians with the aim to empower them to become self-sustaining so that they could lift themselves up out of poverty. It is the objective of NTP to reduce reliance on direct cash assistance as it is much more beneficial and sustainable to “teach them how to fish”. It is also desirable that those who have made it out of poverty in turn reach out and mentor others to do the same. Sustainable poverty alleviating initiatives have produced desirable outcomes that would help eradicate absolute poverty in Malaysia for good. In complementing this effort, the Implementation & Coordination Unit (ICU) has established the e-Kasih database to host details of all low-income households in the country. Three notable efforts that the government has taken to alleviate poverty are optimal resource allocation, economic empowerment and rural transformation. Optimal resource allocation requires connecting with the bottom 40 percent and going down on the ground to understand the many different poverty circumstances. Economic empowerment is about equipping low-income households with the basic needs so that they can focus on earning a decent living and contribute productively to the national economy. Rural transformation focuses on enhancing and equipping rural areas with basic amenities as well as transforming the rural areas into thriving and sustainable centres of commerce. In the effort to achieve sustainability beyond the provision of basic amenities, the 21st Century

Village (21CV) programme was implemented in 2012. Among the initiatives undertaken were eco-tourism and premium fruit farming. Additionally, innovation of various economic activities in the rural areas such as eRezeki has further empower entrepreneurs to be more independent, opening up better market and business prospects as well as income- earning opportunities. So much for now, wishing everyone sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 17/2017: 1AZAM for Sustainable Livelihood of B40

Welcome back! We have talked about alleviating poverty for inclusiveness in my last bulletin. Economic empowerment is a key factor in ensuring every Malaysian especially those in the bottom 40 percent (B40) group achieves an acceptable level of financial independence. One way to facilitate the economic empowerment target is through the 1AZAM (Akhiri Zaman Miskin) programme. 1AZAM initiatives have impacted the lives of many low-income families, especially those in less developed areas. A noted success story of 1AZAM Tani is on Chik Azmily Che Abdul Aziz of Kampung Beoh Gunong, Kelantan. He was earning a mere RM500 a month as a daily labourer hired to look after the home gardens of others as well as harvest oil palm fruits. Since joining 1AZAM Tani, an initiative of MARDI (Malaysian Agricultural Research & Development Institute), he was equipped with agricultural equipment and input to plant short-term seasonal cash crops such as cucumbers, tubers, leafy vegetables and watermelons that he sells to wholesalers. Besides, his wife was provided sewing machines to help her with her tailoring work. Owner of a batik factory has also awarded Chik Azmily’s wife with a contract to tailor batik shirts. Through these initiatives, Chik Azmily managed to improve his monthly income by an astounding 10 times to RM5,000 a month and catapulted his family out of hard-core poverty. Chik Azmily has since started farming kelulut (stingless bees) for their honey and expanded his agricultural activities by renting abandoned or unused plots of land. He also plans to sell the produce on his own in nearby farmers’ markets rather than going through the wholesalers. The other 1AZAM initiative is 1AZAM Niaga. Tim Kawen of Kampung Rejoi in Siburan, Sarawak was using his house as an adhoc sundry shop. Through his participation in 1AZAM Niaga since 2014, Tim was able to obtain a proper business license and expanded his retail space. His income increased from RM600 to RM2,800 a month that enabled him to provide his family a more comfortable home. Tim’s expanded sundry shop operation has also benefited his fellow villagers who can now purchase their daily supplies without going down to town. Additionally, the Ministry of Urban Wellbeing, Housing and Local Government (KPKT) has developed the local crowdsourcing portal for the benefit of all 1AZAM recipients. This free-for-life portal increases the visibility and supply of Malaysian talent, and provides 1AZAM recipients the opportunity to expand into new markets for their products. Furthermore, it is the objective of the Government to collaborate continuously with the private sector by tapping on their Corporate Social Responsibility (CSR) programmes to reach out to eKasih participants and ensuring that assistance is given to the right target groups. So much for now. Until the next bulletin, here’s wishing everyone sustainable productivity days ahead!

Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

35 e-SusP Talk 18/2017: Raising Quality through Performance-driven Culture

Time sure flies! We have come to the last week of 3rd Quarter 2017. This is also the time to take stock of how we have been for the first three quarters of 2017. Economically, the nation has fared relatively well with the 5.8% GDP growth for the first half year. It is projected that Malaysia’s GDP will grow at 5.7 to 5.9 % in 2017. This positive trajectory augurs well for us. The question is, how have we, individually and collectively, at micro and sectoral levels contribute to ensure we keep up with this positive momentum? Of course, this points to the need to raise quality through performance-driven culture, and this starts with our education system. Dynamic technology evolution has created greater accessibility and connectivity shrinking the distance among people and making the world seemed rather small! It became crucial that our education system provides our young (children) with the right foundation to be globally competitive and prepared for the challenges of the future. The Malaysia Education Blueprint (MEB), a key enabler for our National Transformation programme, provides guidelines on how to improve Malaysia’s educational system in support of our nation’s goals and at the same time, ensures the sustainability of talent supply over time. The MEB envisages equipping the nation with high-quality workforce who contribute immensely to the country economically, scientifically and culturally. The Assuring Quality Education National Key Results Area (EDU-NKRA) sought to set proper foundations for sustainable improvements in student learning environment and instil a performance-driven culture. Equal opportunities and equitable access to high-quality early education became important factors for students in both urban and rural areas. Some of the notable achievements of MEB are: . More children have access to pre-school education and childcare; . Financial assistance are provided to those who cannot afford pre-school education and childcare; and . Benchmarks set by our High Performing Schools (HIPS) had made them exemplars for others to follow. As indicated in the Malaysia Productivity Blueprint, quality of workforce is a key challenge and must be addressed. A high-income developed nation needs a steady supply of skilled labour and an educated workforce so that local recruits can fill our country’s needs. Employers and Human Resource recruiters have lamented that Malaysian graduates do not always have the skillsets that employers look for. Therefore, EDU-NKRA aims to prioritise proficiency in the English Language as this language is still the world’s lingua franca and language of science; the development of critical thinking and problem-solving skills; and strengthening the teaching and learning of Science, Technology, Engineering and Mathematics (STEM) subjects. A solid foundation will provide the impetus to develop

36 skills for future employability and ensuring Malaysian youth becoming productive and contributing members of the society to which they belong. Building future generations of Malaysians with a performance-driven and outcome-based culture certainly requires a holistic education system that is accessible to all regardless of age, gender and economic status. So much for now. Until we meet again in the 4th Quarter of 2017, here’s wishing everyone sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 19/2017: Building National Talent Capacity

Welcome to the last Quarter of 2017. We have talked about raising quality through performance-driven culture, the Malaysia Education Blueprint (MEB) and the Education National Key Results Area (EDU-NKRA) in my recent bulletin. We will start our 4th Quarter 2017 conversation with another important topic: Building National Talent Capacity. The EDU-NKRA’s efforts to foster schools of international quality have brought positive results as shown by the success of numerous schools excelling in many international competitions such as the Kaohsiung International Invention & Design Expo 2015. Besides, there are also the implementation of Ministry of Education’s Virtual Learning Environment initiative (1BestariNet) and higher-order thinking skills (HOTS) that complement the problem-solving skills in students using current world affairs as a teaching aid. Teachers can also look forward to greater attention on their career development as teachers assume a critical role in building future leaders. They can now choose to assume various career choices whether as teacher, leader or subject matter specialist. By 2025, teaching is envisioned to become a profession of choice, opened only to the top 30 percent of school leavers. Teachers would be provided with continuous professional development opportunities throughout a career that is both exciting and fulfilling. Another issue of great concern in building national talent capacity is language proficiency. Both High Immersion Programme (HIP) and Dual Language Programme (DLP) are optional programmes under the Uphold Bahasa Malaysia and Strengthen the English Language (Memartabatkan Bahasa Malaysia & Memperkukuhkan Bahasa Inggeris) policy that is meant to improve students’ English proficiency. HIP aims to create a peer learning and sharing environment within schools, between schools and with the community. Through HIP, schools are provided with a toolkit comprising a self-assessment tool and a best practices guidebook on how to improve the English proficiency of students through increased language immersion and usage. Approximately 300 schools piloted the DLP in 2016. Through DLP, Science, Technology, Engineering and Mathematics (STEM) subjects were taught in English at qualified schools. It has been acknowledged that English proficiency is critical in the 21st. century and in the face of the ASEAN Economic Community (AEC) as well as the larger regional and global markets. Enhanced English proficiency is a top priority for the Malaysian Government as English remains the global business language as well as the scientific community internationally. A noted phenomenon is that, students who possess high proficiency in English would find it easier to secure employment, communicate with international business partners better, and have greater access to knowledge and academic resources. Eventually, the Government hopes that the HIP and the DLP would enable students to achieve due fluency in Bahasa

Malaysia and English that in turn would enhance the value of our future human resources. Until the next bulletin, have sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 20/2017: Public Service Delivery as Exemplars of Excellence

Hello again! From “Building National Talent Capacity” in my recent bulletin, our conversation this week focuses on Public Service Delivery as Exemplars of Excellence. Public Service Delivery Transformation (PSDT) projects are rakyat-centric and process- driven improvements that aim to yield big, fast results. The PSDT NKRA (National Key Results Area) that began in late 2013 managed to complete 21 projects by end of 2015 with marked improvements in the efficiency and effectiveness of public services for the rakyat. The PSDT is crucial as the nation needs to continuously strengthen the delivery of public services to the rakyat while addressing emerging needs resulting from Malaysia’s transformation into a high-income economy. Key Performance Indicators (KPIs) were instituted to enable the measurement of progress objectively. Efficiency improvements in public service delivery aims to eliminate waste, save time and cost, and improve government services to the rakyat. A noted achievement of the PSDT is the successful implementation of the Healthcare PSDT as a pioneering initiative in 2014 at Hospital Ampuan Rahimah and Hospital Sultan Ismail, Johor. This success has encouraged the Ministry of Health (MOH) to roll out the healthcare PSDT in all 133 Government hospitals nationwide. A key PSDT NKRA of MOH was to improve work processes. This was carried out by examining existing processes thoroughly and eliminating redundancies. In 2015, the Emergency Department of 12 General Hospitals treated 44 percent more patients due to improved patient flow that saved an estimated RM5.3million. The medical wards had also increased their bed capacity by five percent through ward levelling and an improved discharge process. Streamlined processes and tackled delays contributed to the more efficient and effective use of resources, improved waiting times and expedited patient flow. The Ministry of Women, Family and Community Development reported another positive outcome of PSDT. The “Bantuan Orang Tua” or BOT’s application to notification waiting time reduced from 30 working days to one day! The BOT transformation project enabled the application of senior citizens be processed and approved within just one day! BOT provides RM300 per month to senior citizens age 60 and over who have no other sources of income. The Jabatan Kebajikan Masyarakat (JKM) Melaka piloted the BOT transformation project. The initial objective was to reduce the 30 working days to five working days. The pilot project achieved this target. This initiative also involved several government agencies such as Institut Sosial Malaysia (ISM), Department of Women’s Development (JPW), National Population and Family Development Board (LPPKN), NAM Institute for the Empowerment of Women (NIEW), officers from the Ministry as well as the Central Malacca District Social Welfare office (PKMDMT). Bottlenecks and their root causes were identified and potential solutions brainstormed. Another positive outcome of

40 the transformation project is; BOT applications will now be reviewed once every two years upon which the continuation of the aid be either approved or rejected. The BOT transformation pilot project yielded a saving of RM126,000 per annum and the increased availability of 26 staff recording a saving of 14,976 man-hours per year or RM112,320 per annum of lost productivity. So much for now, here’s wishing everyone sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 21/2017: Effective Public Service Delivery through Continuous Innovation Welcome to the 45th week of 2017. We have talked about Public Service Delivery as Exemplars of Excellence. We will value-add our conversation on this subject by highlighting the importance of continuous innovation for effective public service delivery. In this bulletin, I will share three related stories; they are as follow: 1. Effective Use of Public Gyms The Gym1Malaysia transformation project undertaken by the Ministry of Youth and Sports (KBS) sought to transform both hard and soft infrastructures. Based on users’ feedback, KBS transformed the hard infrastructure of selected gyms’ physical infrastructure by redesigning the site layout and equipment. Improved policies and maintenance guidelines were the soft infrastructure transformation piloted at Kompleks Rakan Muda Larut Matang and Selama in Taiping, Perak. The outcome: The piloted gym recorded over six times the original number of visitors every month. Lesson learnt: The need to listen to the rakyat to optimise effective delivery of public services. 2. Effective Data Management for Public Healthcare Services The collaborative effort between MOSTI and MOH boosted services at dental and health clinics. Both ministries developed a unified Teleprimary Care & Oral Health Clinical Information System (TPC-OHCIS) application using MIMOS’ open innovation platforms. The TPC-OHCIS eases patients’ registration and appointment processes, enable patients’ personal and medical records be securely and privately shared across all connected clinics and empower patients to self-monitor certain critical illnesses such as hypertension and diabetics. During critical emergencies such as dengue outbreaks, MOH could use the system for real time data mining and intelligence analysis. Average administrative time per patient has improved 81 percent from 16 minutes to less than three minutes. The TPC-OHCIS has also enabled MOH to gain cost savings as the system uses local technology and is vendor-neutral. 3. Transferring Knowledge from Academia to Improve Peoples’ Lives MOHE has initiated the Knowledge Transfer Programme (KTP) with the aim to put academic research ideas to work in the real world that could help solve pressing national issues for the benefit of our Malaysian society. An example is the KTP- Vermicomposting project that was initially piloted by the Malacca City Council (MBMB). Worms were used to speed up the creation of compost (vermicomposting) from organic waste (fruits and vegetables) collected from the Pasar Besar Wet Market at Melaka Sentral. It was estimated that 70 percent of waste on average was converted to mature compost in three rounds of harvesting. Each round lasted about a month. This method

42 helps businesses to manage solid waste at source. Vermicomposting is more convenient and cost-effective compared to bacterial composting as it produces little to no odour, and the compost produced has higher fertiliser content. It is also a sustainable activity since the worms reproduce themselves and there is no shortage of inputs. We adjourn our e-SusP Talk here for now. Until the next bulletin, here’s wishing everyone sustainable productivity days ahead! Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 22/2017: Aiming for World-class KL / Klang Valley

Welcome back! As we journey into the 47th week of 2017, it is time we took cognisance we have come to that time of the year (again!) for year-end introspection and retrospection of how we have been and would like to be in the coming year. Numerous transformations have taken place in Malaysia since the nation embarked on the National Transformation Programme (NTP) in 2010. The interesting question now is; have we also transformed for the better in tandem with Malaysia – while acknowledging the fact we have an aging nation and population? One noticeable national transformation that we have witnessed and experienced especially for those who live in the Klang Valley is Kuala Lumpur (KL). NTP has plans to transform KL into an excellent city through the Greater KL / Klang Valley (KV) NKEA. One may enquire on the reason we putting so much focus on KL and Klang Valley. The simple answer is that: KL / KV, being the country’s main growth centre, requires comprehensive and sustainable development plan that can sufficiently address the challenges of rapid urbanisation and enhance the competitiveness of our capital city. With the on-going efforts to materialise our ASEAN and AEC plans, it became crucial we enhance the liveability levels of all KL/KV citizens, making it an attractive hub for residence as well as business and investment within the ASEAN region. Outcomes from the Greater KL/KV NKEA have been encouraging as KL is acknowledged as the second most liveable city in Southeast Asia after Singapore in Economist Intelligence Unit (EIU)’s 2017 Global Liveability Ranking reported on 17 August 2017. KL is also ranked 70th amongst 140 cities surveyed. The city was ranked 73rd in the 2015 ranking of EIU. Five broad categories of qualitative and quantitative factors used in the ranking are stability, healthcare, culture and environment, education, and infrastructure. What gave KL the improved ranking were the undertaken efforts such as improving quality of life, well-maintaining recreational parks and providing better accessibility to amenities. The Greater KL metropolitan area encompasses 10 municipalities including the city of KL itself. It is noted that both KL and Selangor have a combined population of about 8 million that is about a quarter of the country’s total population of 32.2 million residents. This, together with the businesses and commercial activities concentration in city presents the crucial need to improve connectivity on a large-scale. The country needs to avoid the possible problem of the city coming to a grinding halt due to overcrowding and poor connectivity. With mounting high cost of urban living, there is the pressing need to alleviate living pressures. Sustainable solutions such as good recreational facilities within the city must be made available to help improve long-term city liveability. Another on-going effort is the integrated urban Mass Rapid Transit (MRT) system that serves as a game-changer in the nation’s continuous effort to increase mobility, productivity and quality of life. The MRT was

44 proposed to ease congestion and provide commuters to the city centre with an efficient and environmentally sustainable mode of transportation. The first phase of the MRT Line 1 (Sungai Buloh-Semantan) started operation towards the end of December 2016 while the full line (Sungai Buloh-Kajang) was completed in July 2017. The line is integrated with the existing KTM Commuter, LRT and ERL rail systems at various locations such as Sungai Buloh, KL Sentral, Kajang, Pasar Seni and Maluri. Work on materialising MRT Line 2 (Sungai Buloh-Serdang-Putrajaya) is now underway. This will further transform the public transportation network in Greater KL/KV. So much for now. As we bid adieu to November 2017 soon, we must ensure we continuously have sustainable productivity in everything that we do. Until the next bulletin in December 2017, Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 23/2017: Enhancing City Liveability and Sustainability

Hello again! As we journey towards the end of 2017, the feel is always the same: “Time sure flies!” Does time really fly or is it that modern living has been so maddening that many people did not realise that the world has passed them by! It is important that, in the midst of our daily business, we take cognisance of our surrounding – to really live rather than mere exist. Having said this, how many of us are aware of the transformations that have taken place in Kuala Lumpur (KL) – our capital city. The initiatives of the Greater KL / Klang Valley (KV) National Key Economic Area (NKEA) have adopted a holistic approach towards urban development by factoring in environmental impact and the well-being of KL residents to improve liveability. The NKEA also aims to put KL among the top economic and liveable cities in the world by 2020. KL is expected to have a population of 10 million people by 2020 from the 6 million in 2010. Therefore, the nation needs to put in place comprehensive and sustainable development plan that can adequately address the challenges of rapid urbanisation. Do you know that Kuala Lumpur has benchmarked Singapore and Taipei for its transformation ideas? Through the KL/KV NKEA, Malaysia embarked on its biggest infrastructure project – the construction of our very own Mass Rapid Transit (MRT) system as we have noted how robust MRT has characterised Singapore and Taipei. Besides, efforts have also been spent to revitalise iconic landmarks in KL such as the Gombak and Klang Rivers that run through the city to increase community interest in heritage sites. Three heritage sites have been developed since 2011. Heritage Trail 1 covers Masjid Negara, Jalan Hishammuddin, Dataran Merdeka and ends at Medan Pasar. Heritage Trail 2 starts at the junction of Jalan Perak and Jalan Melaka passing through Jalan Gereja and ends at Bukit Nenas. Heritage Trail 3 begins from Medan Pasar covering Jalan Kasturi, Jalan Petaling and Lebuh Pudu. The bus stop in front of Bangkok Bank has been closed and the area has now a café at the centre of the square. On another note, Arcadis Sustainable Cities Index that benchmarks cities according to the three dimensions of sustainability; namely, people, planet and profit had ranked KL at 26 out of 50 cities in 2015. However, in its 2016 report, KL is positioned at 55 out of 100 world’s leading cities. Accordingly, in the 2016 report, KL is ranked at 53, 84 and 19 for the people, planet and profit dimensions respectively. These findings point to the need for more efforts to improve our people and planet dimensions if we want to enhance the city liveability level of KL. The people dimension measures social performance including quality of life while the planet dimension captures “green” factors such as energy, pollution and emissions. The profit dimension assesses business environment and economic health. Singapore is the leading Asian city on city sustainability. We certainly have much more to do to elevate the liveability status of KL.

Arcadis advocates that to achieve balance for city development, cities must put people at the heart of sustainability. Again, much food for thought and action! So much for now, until we meet again for the last bulletin of 2017, have sustainable productivity days. Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!

e-SusP Talk 24/2017: KL in the ASEAN region

Welcome back! We have talked about Greater Kuala Lumpur / Klang Valley (KL/KV) effort in transforming the city as the strategic business and investment hub within the ASEAN region. The report “Hotspots 2025: Benchmarking the Future Competitiveness of Cities” by the Economic Intelligence Unit (EIU) has indicated KL as the second most competitive global city in Southeast Asia. With an increasingly mature support ecosystem, an efficient cost structure and a large pool of high skill talent, Greater KL has emerged as a favourite city among multinational companies. 51 MNCs have set up regional offices in Greater KL since its inception in 2011 where 24 are Europeans, 16 are from the Americas and the remaining 11 are from the Asia Pacific region. The MNCs are mainly from the following sectors: engineering services, business services, oil and gas services, global commodities trading and the supply chains of aerospace, logistics and industrial products multinationals. Besides, Talent Corporation Malaysia (TalentCorp) has collaborated with leading companies to address the issue of talent availability in key sectors driving Malaysia’s economic growth. Some of the initiatives undertaken include enhancing the employability of Malaysian graduates, engaging global Malaysians to return or contribute from abroad, facilitating top foreign talent, particularly in areas of skill shortages and optimising home-grown Malaysian professionals that promotes diversity and inclusion. The World Bank in a June 2015 report noted that Malaysia’s Returning Expert Programme (REP) has succeeded in attracting overseas Malaysians with the skills that Malaysia needs. Another positive outcome noted is the 71.5 percent achievement of Malaysian Expatriate Talent Service Centre (MYXpats Centre) by the Immigration Department and TalentCorp in processing employment passes within its five-day client charter. Additionally, in 2015, the Residence Pass-Talent (RP-T), an initiative by TalentCorp and the Immigration Department, was assessed by the World Bank as an effective tool in retaining top foreign talent in areas of skills gaps. Other initiatives to transform KL into an excellent city include the High Speed Rail, the River of Life project, construction of the Jinjang-Kepong Regional Sewage Treatment Plant and the beautification work packages for the 10.7 km stretch along the Gombak and Klang Rivers that flow through KL. It is envisioned that the said initiatives when implemented according to plan would yield the expected deliverables (outcome) and that Greater KL / KV is well on track towards achieving its world-class city aspirations by 2020. These are all for this year. Until we meet again in the New Year, here’s wishing everyone Happy New Year 2018 and may we have continuous sustainable productivity days. Remember Eight Billion Dreams (worldwide), 1Malaysia and pursue our national goals with care, inclusivity, productivity and sustainability!