September 2018 TRANSFORMATION * INNOVATION * PARTNERSHIP 1 Copyright © September 2018 by the Malaysia Productivity Corporation (MPC) All Rights Reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, except with the prior written permission of the Director-General of Malaysia Productivity Corporation or in the case of brief quotations embodied in critical reviews and certain other non-commercial uses permitted by copyright law. For permission requests, write to the Director-General, Malaysia Productivity Corporation. Published by 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 2 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 3 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 4 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 5 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”. 6 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. 8 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.