NTP Ar2016 Eng PDF

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NATIONAL TRANSFORMATION PROGRAMME

ANNUAL REPORT 2016
CONTENTS
2
TRANSFORMATION PROVES TRIUMPHANT
4
EMBODYING THE GOVERNMENT OF THE PEOPLE
6
DELIVERING THROUGH DISCIPLINE OF ACTION
2016 YEAR IN REVIEW
26
NTP
APPENDICES
EXPENDITURE 2016 228
AGREED-UPON PROCEDURES BY PWC 229
NTP PERFORMANCE 2016 230
KEY PERFORMANCE INDICATORS
2 National Transformation Programme Annual Report 2016
Prime Ministers Foreword
TRANSFORMATION
PROVES
TRIUMPHANT
My fellow Malaysians,
The year 2016 was one marked by sweeping geo-political
change and continued global economic uncertainty. I am
pleased to say, however, that Malaysia remained blessed
with stability and continued on a positive growth trajectory.
This is as the National Transformation Programme
(NTP) completed its sixth year of implementation, proving
decisively that the crucial decisions we have taken since
2010 place us firmly on the path to become a high-income
status nation by 2020.
I am pleased to report that by improving public
service delivery through the Government Transformation
Programme (GTP), and catalysing private sector investment
through the Economic Transformation Programme (ETP),
the Government continues to deliver on our promises made
at the launch of the NTP in 2010.
Chief among these promises was the development of a
truly world-class transport system. In addition to capacity
expansion and infrastructure upgrades to our existing
public transport network, in December 2016 we saw my
dream of an efficient, reliable and safe public transportation
system for the rakyat come closer to reality with the launch
of the Mass Rapid Transit (MRT) project in the Klang Valley.
This, the largest infrastructure project ever undertaken
by the Government, sets the benchmark for all of our future
plans, taking into account the rakyats connectivity needs
and quality of life. Phase one of the Sungai Buloh-Kajang
Line was also delivered ahead of schedule and under
budget, bearing further testimony to the Governments
success in implementing the NTP.
But the tangible outcomes of the transformation do
not consist only of large scale projects. Another vital
component of the NTP is the effort to secure sustainable
and inclusive growth through fundamental reforms in areas
such as Government finances and economic development.
As a result, since 2010, we have recorded healthy GDP
growth year after year, regularly achieving rates that were
more than double global growth. I am also pleased to
note that efforts to diversify the Governments sources of
revenue have successfully reduced the share coming from
the oil and gas sector from 41.3% in 2009 to 14.7% in 2016.
National Transformation Programme Annual Report 2016 3
This has been led by the diversification of our economy Other highlights of the NTP include the establishment
through the ETPs 12 National Key Economic Areas, as of the Pengerang Integrated Petroleum Complex (PIPC)
shown in the Year in Review 2016 and NTP chapters in Johor, a world-class hub for downstream oil and gas
within this publication. A point to note is that beyond activities that is drawing sizeable private investment and
lifting our economy out of the global turmoil in 2009, the is driving our oil and gas capabilities higher up the value
wisdom and prudence of the Governments efforts were chain. Furthermore, the Human Capital Development
demonstrated during the decline in oil prices and other Strategic Reform Initiative has paved the way for the
external economic developments beyond our control. They formation of a skilled workforce that will support our high
shielded our economy against significant slowdown, and in income aspirations and raise our global competitiveness.
2016 we continued to achieve stable GDP growth of 4.2%. Malaysia has emerged as a model for other countries
The NTP has also been instrumental in propelling us pursuing transformation, providing affirmation that our
out of the middle income trap, in which we found ourselves plan is one that works and offers valuable lessons that
in 2009. As at the end of 2016, our GNI per capita had others can draw from.
increased to US$10,010, against our high-income target It is right that we should note these achievements,
which was estimated to be US$12,272 for last year based on but our work is far from being done. The Government will
PEMANDUs estimate following the World Banks GNI per not rest until we have attained our high income goals and
capita calculation using the Atlas method, using currently improved sustainability and expanded inclusiveness in our
available public information. economy. At this point, I would like to express my gratitude
This is a commendable achievement, as it means that to the civil service for their dedication in driving our country
between 2010 and 2016 Malaysia narrowed the gap towards towards our aspirations. I am confident that over the past
the high income target from 33% to 18%. In addition, the six years the civil service has built the capacity and adopted
national transformation has also helped to create over 2.26 the processes required to continue the NTP on its journey
million jobs in the past 6 years. towards the goals we have set for 2020.
At the same time, the Government has had to introduce It is for this reason that we felt the time had come for
difficult but necessary measures such as the Goods and the civil service to take over the mantle of the NTP from
Services Tax (GST) and subsidy rationalisation. These may PEMANDU, which up to this point had been overseeing and
not have been popular. However, they have been vital. performance-managing the transformation implemented
With RM38.5 billion in GST collected in 2016, the new tax by the civil service. As announced by my office in
has made up for the shortfall in Government revenue of January 2017, some of this transformation work has been
RM30 billion due to the drop of nearly 50% in the price of fully transferred to the civil service helmed by the Chief
oil. This has allowed us to support our expenditure amid Secretary to the Government, Tan Sri Dato Dr Ali Hamsa.
limited resources and continue to implement our measures The remainder of the work will be transferred in stages up
and programmes whose sole purpose is the benefit of the until 2019.
rakyat. I would like to take this opportunity to extend my
Subsidy rationalisation has also reduced the burden on appreciation to PEMANDU for their relentless efforts in
the Governments finances and helped to eliminate leakages. overseeing the NTP since the start. My gratitude is also
In 2016, the Governments fiscal deficit continued to decline extended to the rakyat for their continued support for our
steadily to 3.1%, which leads us to maintaining our target of initiatives.
achieving a balanced budget by 2020. This has enabled us The road to transformation has not always been easy.
to introduce a more efficient and targeted subsidy system However, I remain certain that by 2020, in just three years
to benefit those who are truly in need. Bantuan Rakyat time, we will stand shoulder-to-shoulder to witness the
1Malaysia (BR1M), for instance, provided relief to 7.28 million triumph of our great nation in becoming a high-income
households in 2016. Since 2012 it has ensured that no one is country in which prosperity and opportunity are able to be
left behind amid the countrys transformation. shared by all.
In working towards an inclusive economy, the NTP has
touched the lives of millions of people, especially those in
rural areas. We have already completed 6,041.7 km of new
rural roads, against the 750 km of rural roads built in the
first year of the NTP in 2010, and we continue to undertake
rural electrification and water supply programmes, as well
as building and restoring houses for the rural poor. All these YAB DATO SRI MOHD NAJIB TUN ABD RAZAK
have benefited a total of 6.2 million rural folk. PRIME MINISTER OF MALAYSIA
A Note from the Deputy Prime Minister
EMBODYING THE
GOVERNMENT OF
THE PEOPLE
As the chair of the Government Transformation reduction in Index Crime by almost half between 2010 and
Programme, I am pleased to report that its initiatives 2016.
continued to enhance public service delivery and address Registering an average decline of 9% annually since
the rakyats most pressing concerns in 2016. Six years 2010, our efforts to reduce crime have made the public
into its implementation, we have also witnessed greater feel safer, with the Perception of Crime Indicator recording
institutionalisation of the transformation throughout the a marked reduction in the rakyats fear of becoming
Ministries involved. a victim of crime in 2016. It also reflects our success in
At this juncture, I call on all my peers within the civil adopting a more targeted approach to fighting crime by
service to remain committed to achieving our high- focusing on the crime and safety issues that concern the
income aspirations and continue taking up the mantle in public the most.
implementing the National Transformation Programme. I am also pleased to note that our 1Malaysia initiatives
This is especially as the NTP reached a new juncture in such as BR1M remain a targeted and effective measure
2016, with the transition of PEMANDUs work to the civil in aiding those in need, gaining widespread recognition
service as the programme nears its completion in 2020. for the benefits it delivers. During the year, 7.28 million
The achievements of the NTP speak volumes of the households benefited from the RM5.36 billion in BR1M
work the civil service has put in to build an impactful funds disbursed by the Government to provide relief to
public service delivery system and ensure the well-being those battling the inevitability of rising living costs. We
of all Malaysians. Chief among these results has been the have also introduced a number of measures centred
on entrepreneurship, such as the 1AZAM programme, These activities, together with the continuing bus and
to improve outcomes for the poor and hard-core poor taxi service transformation to ensure first- and last-mile
in a sustainable way. These initiatives underscore the connectivity for commuters, as well as the initiation of
Governments commitment to charting a future for efforts to offer an integrated payment system for transport
Malaysians that is both inclusive and sustainable. services, bode well for the Governments efforts to create
Key to paving the way for this bright future is ensuring a world-class system of urban public transport. Truly, these
a high-quality education system for our students, starting efforts represent tangible markers in Malaysias journey of
from the early childhood level. I am heartened to note transformation into a high-income nation.
that the national preschool enrolment rate rose to 85.56% At the heart of the NTP lies our initiatives to improve
in 2016, from 67% in 2009, with national preschools the quality of life of rural communities. From 2010 to 2016,
achieving almost universal enrolment for the 5+ age group, this has seen the Improving Rural Development NKRA
at 92.1%. Older schoolchildren are performing better; deliver 6,041.7 km of new rural roads and 2,378.5 km in
with the school banding system showing improvements road maintenance, provide 350,094 houses with access to
in the performance of schools. This is further reflected clean water and 153,821 houses to electricity services and
in improvements in Malaysias Trends International build and restore 94,605 houses for the rural poor. These
Mathematics and Science (TIMSS) scores for 2015. initiatives have benefited a total of 6.2 million Malaysians,
Reported in 2016, our students showed better scores in ensuring all Malaysians benefit from the efforts of the NTP
Mathematics and Science in the assessment. and are provided with access to the opportunities created
To build on the enhancements of our national education in a high-income economy.
system, the High Performing Schools programme has Indeed, this focus on ensuring no one is neglected and
identified 132 schools to act as a model for other schools creating long-term impacts is the anchor of our national
by further improving their quality, while the Dual-Language transformation. This has resulted in the near-eradication
Programme and the Highly Immersive Programme of poverty since the introduction of the NTP, the creation
continue to equip our students with the English language of over two million jobs and lasting change in the way the
skills needed for them to be globally competitive talents. Government provides public services. All the while, this
As part of the Governments efforts to eradicate has been achieved by taking the publics interests to heart.
corruption, the National Consultative Committee on As we enter the final phase of the NTP, it is my hope
Political Funding (NCCPF) continued to engage with that all Ministries and agencies involved will remain
Malaysias political parties on both sides towards resolute in shaping a brighter future for our beloved nation
introducing legislation for financing, managing and that we can share for generations to come, and continue
reporting political campaigns. To ensure the Government embodying the spirit of a Government that is for the
leads by example in rejecting graft, in 2016 74.4% of people.
corruption cases had been disposed of within a year
of registration in court. This was achieved through the
establishment of 14 special corruption courts in each State
and Federal Territory.
Meanwhile, developments in urban public
transportation represented some of the Governments
significant achievements in 2016. The launch of Phase
1 of MRT Line 1 in December 2016 marked the height
of the sectors success during the year, capping off
enhancements to Greater Kuala Lumpur/Klang Valleys rail YAB DATO SERI DR AHMAD ZAHID HAMIDI
backbone with the LRT Line Extension Project. DEPUTY PRIME MINISTER OF MALAYSIA
THE YEAR IN REVIEW
DELIVERING DATO SRI IDRIS JALA

CHIEF EXECUTIVE OFFICER
PEMANDU
THROUGH
DISCIPLINE OF
When we first started the National
Transformation Programme (NTP) in 2010, Malaysia
faced a multitude of challenges from socioeconomic
disparity, a precarious fiscal position, and stagnating
ACTION economic growth. Six years on, our objective

remains steadfast to become a high income nation
by 2020 in a manner that is inclusive and sustainable.
Year on year, the Government has diligently worked
towards setting Olympic targets and delivering on
impossible KPIs we set for ourselves.
In 2009, Malaysia was said to be stuck in the
middle-income trap because in the preceding years,
the gap between our countrys GNI per capita and
the World Banks high-income threshold had not
narrowed. Now, six years into the implementation
of the NTP, we are clear that Malaysia has escaped
the middle-income trap, with our GNI per capita at
US$10,010. 1
1
PEMANDUs estimate based on World Banks GNI per capita calculation
using the Atlas Method using currently available public information
THE YEAR IN REVIEW

TAKING THE ROAD LESS TRAVELLED TOWARDS HIGH-INCOME,
SUSTAINABILITY AND INCLUSIVENESS
The Government was clear when At the same time, the NTP has In addition to propelling our
we began the NTP that we would not rejuvenated economic activity, GNI per capita towards the high-
adopt the path that many countries enabling the private sector to drive income threshold, the main measure
took pursuing unbridled growth growth through business-friendly of the national transformation has
at the expense of the Governments policies. The economic reforms been geared towards achieving a
fiscal position. We have had to instituted through the NTP have robust fiscal position and mildly
make tough decisions such as the redistributed Malaysias sources expansionary, private sector-driven
gradual removal of long-standing of growth we have reduced our development to achieve sustainable
blanket subsidies and introduction historic reliance on oil & gas from growth. The NTP also focuses on
of the Good and Services Tax (GST), 41.3% of the Governments revenue enhancing inclusiveness within the
all aimed at reducing borrowings in 2009 to an estimated 14.7% in economy through socioeconomic
and deficit levels to secure the 2016. outcomes which touch the lives of
Governments fiscal position. all Malaysians positively.
THE YEAR IN REVIEW
All this required new courses

of action in the Governments
processes and the courage to
institute unpopular but necessary
measures to inculcate prudence
in Government spending, as well
as increasing revenue to mobilise
socioeconomic development and
improvements for the rakyat.
The end result is sustainable
and resilient economic growth.
This decision by the Government
proved to be unusually prescient, as
despite global headwinds caused by
uncertainty in major markets such
as the US, UK and the Eurozone
as well as a depression in global
oil prices, Malaysia continued to
We have reduced the

fiscal deficit from
6.7% in 2009 to 3.1% in
2016. At this rate, the
Government remains
well on track of
achieving its target of
fiscal balance by 2020.
achieve stable GDP growth of 4.2% fiscal deficit from 6.7% in 2009 to is one of the very few countries that
in 2016, sustaining a trajectory of 3.1% in 2016. Here, the Government has this self-imposed debt ceiling.
over 4% since the start of the NTP in maintains its target of achieving its This fiscal prudence has been
2010 and on occasion, outpacing the target of fiscal balance by 2020. supported by vibrant economic
global growth rate. We are also carefully managing activity led by the private sector
We were clear that we wanted the Governments debt-to-GDP which has doubled its compounded
to ensure growth did not come at ratio. In 2016, our debt to-to-GDP annual growth rate (CAGR) of
the expense of the Governments was 52.7%, within its self-imposed investment since 2010. Between
fiscal position. We have reduced the debt ceiling of 55% of GDP. Malaysia 2011 and 2016, the CAGR of private
THE YEAR IN REVIEW

investment was 10.8%, against just
5.5% in the period from 2006 to
2010.
Additionally, from around
an equal share of total realised
investments between the public
and private sectors prior to the NTP,
since 2010 the private sector has
gradually outpaced public sector
investment. In 2016, the private
sector showed its clear dominance
in realised investment, accounting
for a lions share of 71% against
public sector investment of 29%.
This vibrant landscape for private
investment has been enabled by
the NTPs focus on 12 National Key
Economic Areas (NKEAs) designed
to position the private sector as
the engine of economic growth.
The NKEAs have accounted for the
largest share of GDP, representing
RM865.3 billion, or 70%, of the
countrys GDP of RM1.23 trillion in
2016.
The NKEAs have

accounted for the
largest share of
GDP, representing
RM865.3 billion,
or 70%, of the
countrys GDP of
RM1.23 trillion
in 2016.
THE YEAR IN REVIEW
The GNI contributions by NKEA GNI VALUE (RM BILLION)

also account for the majority share
of the structure of our GNI, as well NKEA SECTOR 2016
as showing diversification in our GNI
structure. Agriculture 68.1
An immediate impact of this
private sector-led growth has Palm Oil/Rubber 64.9
been the creation of a wealth of
employment opportunities for Oil, Gas & Energy 179.7
Malaysians. Since 2010, the economy
has recorded 2.26 million new jobs2. Electrical & Electronics 57.0
Wholesale & Retail 181.9
Education 9.7
Healthcare 10.9
Communication Content & Infrastructure 58.1
Tourism 73.3
Financial Services 64.8
Business Services 58.6
TOTAL NKEA 827.2
Other Industries 367.5
TOTAL GNI 1,194.6
TRANSFORMATION FOR ALL
Inclusiveness and a balanced in business, education, employment promise set out at the start of the
socioeconomic impact are or quality of life. NTP, to grow the monthly income
cornerstones of the NTP. Being With this in mind, the plight of of the B40 group. Today, B40 mean
a developed nation means Malaysias Bottom 40% of household and median household income
nothing if we are not inclusive income earners (B40) continues growth is outpacing total household
in our development. We want all to be a key concern of the NTP, in income growth at a CAGR of 12%
Malaysians to have an equal footing tandem with the Governments and 12.8%, respectively3.
when it comes to opportunities, be it growth policies. This follows the
2
Jobs created calculation is based on PEMANDUs definition and methodology. The data for the calculation is sourced from DOSM
3
DOSM Household Income and Basic Amenities Survey Report 2014. This report is released every two years.
The report for 2016 is expected to be released in the second half of 2017.
THE YEAR IN REVIEW

We have put a lot of effort into These efforts have been enabled, small service providers (Azam
ensuring rural communities are not in part, by the Governments review Khidmat) and creating opportunities
left out of the nations development. of its expenses undertaken through in agriculture (Azam Tani), have
To date the NTP has also achieved the NTP. Through the gradual contributed significantly in raising
the following: removal of blanket subsidies as the low income households chance
outlined earlier, the Government of a better life.
1. Completed 6,041.7 km of rural was able to redeploy its funds to These initiatives and
roads; target those most in need. achievements serve as a testament
2. Provided 153,821 rural houses The funds were channelled to the far-reaching impact of
with reliable electricity; to low-income households and the NTP and are aligned to the
3. Provided 350,094 rural houses individuals through the Bantuan programmes approach of ensuring
with access to clean water; and Rakyat 1Malaysia (BR1M). In addition no one is left behind amid the
4. Built and restored 94,605 houses to this, the Program 1AZAM, which countrys transformation into a
for the rural poor. provides assistance in four essential high-income nation.
All in all, these measures have areas -- job placements (Azam
impacted the lives of 6.2 million Kerja), creating small business
Malaysians. enterprises (Azam Niaga), creating
THE YEAR IN REVIEW
ADDRESSING THE RAKYATS KEY TOUCH POINTS AND DRIVING

PRIVATE SECTOR PARTICIPATION IN THE ECONOMY
The NTP was first developed Completing the NTPs initiatives As detailed in the subsequent
with a view to address the rakyats are the 12 NKEAs as well as the six pages of this Annual Report, in
most pressing concerns. This has Strategic Reform Initiatives (SRIs) 2016 the NTP continued to deliver
been undertaken through the which account for the Governments on its promises as first set out in
seven National Key Results Areas efforts to build the focus and its roadmaps in 2010. The following
(NKRAs) implemented by the competitiveness needed for is a summary of the programmes
Governments delivery system and Malaysias economy to achieve high- activities and highlights for the year.
were identified as the key factors income status. This is being achieved
to be enhanced in tandem with by prioritising the economic sectors
Malaysias transformation into a which contribute the most to GNI
high-income nation. These NKRAs and GDP growth while putting in
also represent areas of civil service place the enablers required to ensure
reform to ensure the rakyats needs a business-friendly environment and
and expectations are met in terms global competitiveness among local
of their main touchpoints. businesses.
ADDRESSING THE RISING COST OF LIVING

While Malaysias inflation rate In view of this, the NTP has
remained low at 2.1% in 2016, the cost put in place measures to provide
of living will naturally be impacted immediate relief to those struggling
by the general increase in prices over the most with the rising cost of living,
time. A moderate level of inflation, as with emphasis on the B40 group.
has been enjoyed by Malaysia since Bantuan Rakyat 1Malaysia (BR1M)
2010, is in fact a sign of a healthy is the flagship initiative under this
and growing economy. However, NKRA. Since 2012, a total of RM19.33
the cost of living is susceptible to billion has been disbursed to low-
the impact of external factors such income individuals and households
as commodity prices and currency on a needs basis. In 2016, RM5.36
fluctuations. This adverse impact billion was disbursed to 7.28 million
on prices may, in turn, affect some households.
groups, such as low-income earners,
more than others.
THE YEAR IN REVIEW

RAISING LIVING STANDARDS OF LOW-INCOME HOUSEHOLDS
Poverty eradication is key to Kerja, AZAM Khidmat, AZAM is to provide all successful 1AZAM
a countrys development into an Bandar and the autonomously- participants the ability to increase
inclusive and harmonious nation. operated 1AZAM Sabah and 1AZAM their incomes from their existing
Focusing on the different factors Sarawak. Participating individuals projects by 50% for at least three
which cause poverty to ensure are provided the assistance most months and lead them towards
the nations hard-core and urban suitable to their circumstances and establishing their own small- and
poor are permanently uplifted capabilities to upskill themselves. medium-sized enterprises (SMEs).
out of poverty, the initiatives of They are then either given In 2016, 7,016 new individuals
this NKRA emphasise economic access to gainful employment participated in 1AZAM. 7,758 new
empowerment for those in need. opportunities or a chance to prove and existing participants increased
This has contributed to the decline their entrepreneurial skills. High- their income above RM300
in the countrys poverty level to performing participants are also (more than 90% of their previous
0.6% in 2014 from 1.7% in 2012. provided the opportunity to join individual income). Meanwhile,
Initiatives are led by the 1AZAM the Beyond 1AZAM programme, 1,719 participants in Beyond 1AZAM
(Akhiri Zaman Miskin) programme which provides advanced training, increased their income by at least
which covers seven focus areas: coaching and mentoring. The 50%.
AZAM Tani, AZAM Niaga, AZAM primary goal for this programme
REDUCING CRIME
While even the worlds safest perception towards their most

cities and countries cannot worrying factors about crime and
boast freedom from crime, the safety.
Government remains determined to At the core of this NKRAs
reduce the countrys crime rate to activities is the transformation
ensure the rakyats safety and peace of the police force through the
of mind. Modern Policing initiative, the
Since 2010, this NKRA has rehabilitation of drug offenders
reported an average annual decline and reducing recidivism. During
of 9% in Index Crime, bringing the the year, crime-fighting efforts also
total reduction to 47%. In 2016, the turned towards border security as
Index Crime rate fell by 2.8%. In Malaysias growing socioeconomic
tandem with this, the Perception prominence has made the country
of Crime Indicator (PCI) registered more vulnerable to cross-border
a decline in the people of Kuala crime.
Lumpurs fear of becoming a victim
of crime to 61% in 2016 from 80%
at the indicators introduction in
2015. The PCI measures the publics
THE YEAR IN REVIEW
FIGHTING CORRUPTION
Integrity, transparency and Funding (NCCPF) held focused In an effort to build on the MACCs
accountability represent critical discussions with Malaysian political efforts, this NKRA has also placed
values of a high-income nation. parties across the political divide to emphasis on inserting a corporate
To this end, this NKRA tackles the gather feedback on its proposal on liability provision in the MACC Act
eradication of corruption among the political funding. This engagement in line with its initiatives to combat
public and private sectors. Although will continue with a target to finalise corruption in the corporate sector.
political will and governance play the proposal for Cabinet approval Although this has yet to be achieved,
a strong role in fighting corruption and draft the bill of the proposed it represents a game-changing
by ensuring the existence and Act on political financing to be opportunity for MACC to persecute
enforcement of the appropriate brought to Parliament for debate. companies which commit graft. It
corruption legislation, the public Another highlight of efforts to also builds on the Corporate Identity
must also recognise their part in fight corruption in Government Pledge (CIP) and Corporate Integrity
enabling corrupt practices. has been the disposal of 74.4% Systems Malaysia framework to
On the public sector front, of corruption cases within a steer companies towards putting
this NKRA has focused on year of its registration in court, corruption prevention measures into
transforming political financing and led by the Malaysian Anti- practice. As of 2016, 800 companies
the management, regulation and Corruption Commission (MACC). have signed the CIP since the launch
reporting of political campaigns. This was further enabled with of this initiative under the Fighting
Following its establishment in the establishment of 14 special Corruption NKRA.
August 2015, in 2016 the National corruption courts for each State and
Consultative Committee on Political Federal Territory.
IMPROVING URBAN PUBLIC TRANSPORT
A safe, efficient, affordable Developments under this NKRA transport services. Additionally,
and reliable urban public transport represent among the brightest measures are underway to
system is the hallmark of a high- achievements of the NTP, with enhance urban public transport
income nation. Prior to the NTP, the year 2016 ushering a new era payment systems to increase user
urban public transport initiatives and of urban public transportation in convenience and affordability.
services have been fragmented and Malaysia. Following the completion
did not fully address the transport of the LRT Line Extension Project,
needs of Malaysias urbanites. This which expanded and upgraded
changed with the introduction of the LRT network for the first time
the NTP, which spearheaded the since its construction in 1998, urban
introduction of subsequent land commuters further benefited from
public transport development the opening of the first phase
plans to adopt a holistic approach of the Klang Valley MRT Line 1.
to urban public transport with a These activities were additionally
focus on building a comprehensive supplemented by ongoing initiatives
transport network with first- and to transform taxi and bus services
last-mile connectivity. for a complete suite of urban public
THE YEAR IN REVIEW

IMPROVING RURAL DEVELOPMENT
This NKRA brings development In terms of providing income the Rural Business Challenge (RBC),
to rural areas by providing basic generating opportunities, the which encourages entrepreneurship
infrastructure to remote areas and NKRA undertakes the 21st Century among rural youth. Overall,
offering economic empowerment Village programme, spearheaded entrepreneurs from the RBC have
programmes to rural populations. by the Desa Lestari initiative which recorded a 109.35% increase in
For 2016 alone, 755.42 km of develops the rural economy sector sales, with 43.47% of entrepreneurs
new roads were built and 3,000 through co-operative platforms registering more than 100% growth
houses were provided with access and commercial projects. During in sales. RBC projects have also
to clean water. Meanwhile, 3,233 the year, the Desa Lestari project helped to generate more than
new houses were built and 8,900 achieved 100% of its targeted 20 352 new jobs and create 82 new
houses repaired, and 9,921 houses villages. Another initiative under the entrepreneurs.
were connected to electricity. 21st Century Village programme is
EDUCATION
The NTPs initiatives on registered a 45-point improvement up of institutes of higher education,

education are undertaken through in the studys Science score to student accommodation and
public (NKRA) and private sector 471 and a 25-point increase in the recreational and sports facilities
(NKEA) efforts, signalling the Mathematics score to 465 points. also continued to gain traction
Governments holistic approach to The Education NKEA, meanwhile, with the opening of Multimedia
improving educational outcomes for has helped to establish Malaysia Universitys (MMU) Johor Campus
all Malaysians from early childhoold as an international education hub, and University of Readings first
through to the tertiary level. The with 172,886 international students, overseas, full-fledged campus.
education sector has also been from the international school level
identified as an engine of economic to the tertiary level, recorded in
growth due to its potential to 2016. Subsequently, UNESCO
generate private investment and ranked Malaysia the ninth-preferred
exports of education services. destination for tertiary education
Among the Education NKRAs among international students in its
achievements include improving latest International Students Mobility
the performance of students Survey. This marks an improvement
against international benchmarks, from the countrys 12th-place
such as the Trends International ranking in 2014. The countrys
Mathematics and Science (TIMSS) EduCity@Iskandar initiative, a fully
study. Since 2011, Malaysia has integrated education centre made
THE YEAR IN REVIEW
OIL, GAS AND ENERGY
While the Government has Pengerang Integrated Complex completion at the end of the year,
taken steps to reduce its reliance (PIC) and Pengerang Deepwater while DIALOG has completed 1.3
on oil revenue, private sector Terminal (PDT). million cubic metres of oil storage
efforts to harness the high-value PIPC is the single largest capacity under the first phase of
potential of the Oil, Gas and Energy downstream/infrastructure investment PDT. DIALOG is also on track for
industry remain a key driver of project in Malaysia, with an expected phase two of the oil/petroleum
the countrys economy. This has total investment of RM128 billion terminal.
been spearheaded by significant from its anchor investors PETRONAS
downstream projects such as (for PIC) and DIALOG (for PDT).
Pengerang Integrated Petroluem The PIC continued to progress on
Complex (PIPC), which houses the scheduled in 2016, reaching 50%
HEALTHCARE
The healthcare sector accounts sponsored research (ISR) and sector, RM9.69 billion in exports
for another important driver of the enables and facilitates clinical trials. were recorded for 2016. A further
Malaysian economy, supported by During the year, CRM reached a significant development for the
the new growth areas catalysed crucial juncture with the introduction sector includes the establishment
by the Healthcare NKEA. Initiatives of Phase 1 clinical trials in Malaysia, of two Good Laboratory Practice
are further anchored on the marking the countrys move higher (GLP) labs, which will help local
Governments efforts to enhance up the clinical trial value chain. medical device-makers cut costs in
the delivery of care through The pharmaceuticals industry testing the safety of their products.
capability and capacity building, recorded exports of RM737.31 This is geared towards a holistic
policy improvements and active million in 2016 while also providing ecosystem to support the sector.
promotion of healthcare services in a platform for local companies In terms of promoting Malaysia as
collaboration with relevant Ministries to enter new markets. During the a top healthcare travel destination,
and agencies. year, a new Entry Point Project was the Malaysia Healthcare Travel
In 2016, the NKEAs efforts were established through a strategic Council (MHTC) facilitated a number
focused on the clinical research, partnership between Winthrop (M) of public-private partnerships as
pharmaceuticals, medical devices Sdn Bhd, a subsidiary of Sanofi well as Government-to-Government
and healthcare travel sectors. Aventis Group (Sanofi), and Xepa- agreements. This has contributed to
Clinical research is driven by Clinical Soul Pattinson (M) Sdn Bhd (Xepa) a significant increase in healthcare
Research Malaysia (CRM), which for Xepa to locally manufacture and travel revenue.
positions Malaysia as a preferred export a range of Sanofis products.
global destination for industry- Under the medical devices
THE YEAR IN REVIEW

ELECTRICAL AND ELECTRONICS (E&E)
This NKEA builds on Malaysias The Malaysia Investment household appliances, and solar
expertise and competitive advantage Development Authority (MIDA) wafers and cells.
developed over the countrys long approved 107 E&E projects As a result, Malaysias E&E
history as a manufacturing hub. amounting to RM9.2 billion in exports rose by 3.5% to RM287.72
Under the NTP, however, activities investments, surpassing the years billion in 2016, accounting for
are focused on higher higher-value- target of RM6 billion. Of these, almost half of the countrys total
added businesses in tandem with 17 projects represented new exports last year. Furthermore, the
Malaysias transformation into a high- investments worth RM1.5 billion, sector has catalysed the creation of
income economy. While electronic while 90 accounted for expansion/ 108,920 employment opportunities
components manufacturing remains diversification projects with an as at the end of 2016, with 157,000
active, the sector has also investment value of RM7.7 billion. more jobs expected to be created
increasingly moved towards high- The majority of investments by 2020.
value operations such as industrial were made up of expansion and
design, test & measurement and diversification activities in the
electrical appliances. manufacturing of LED products,
BUSINESS SERVICES
The Business Services NKEA is been ranked the third most attractive data centre sector, which is driven
focused on developed new areas of SSO location in the world by AT by businesss demand for storage
growth in which Malaysia can carve Kearneys Global Services Location and use of digital information, saw
a globally competitive niche. To Index since 2004. VADS Bhd start building a new
date, this has allowed the country Other highlights recorded 100,000-square-foot data centre
to nurture its expertise in the by the NKEA in 2016 include a in Nusajaya, Johor, which will be
outsourcing industry, data centres, number of foreign investments and linked to a similar facility to be built
aerospace manufacturing, green the establishment of agreements in Cyberjaya, Selangor through a
technology and ship repair and with foreign companies: Malaysia 100Gbps high-speed fiber optic link.
shipbuilding. Airlines and US company Aircraft
The NKEA contributed RM56.5 Propeller Service entered into a
billion in GNI in 2016, up 9% from joint venture to build Asias first
from the previous year despite a ATR aircraft turboprop MRO
slower business climate and shifting facility, Japans Asahi Aero Malaysia
global trends. It also continued to Sdn Bhd opened an RM18 million
drive job creation in high-value aircraft parts surface treatment
services and knowledge intensive facility, its first in Southeast Asia;
industries. For example, 3,734 jobs and Swiss company RUAG Aviation
were created in the Shared Services opened its new 24,000-square-foot
and Outsourcing (SSO) industry this component repair centre, the first
year. Malaysia has also consistently of its kind in Asia. Meanwhile, the
THE YEAR IN REVIEW
GREATER KUALA LUMPUR & KLANG VALLEY
The Greater Kuala Lumpur and of a bilateral agreement between facilitated the approval of more then
Klang Valley (Greater KL/KV) is the Malaysia and Singapore 4,000 skilled Malaysians to return to
unique among the NKEAs in that it is Governments to commence the work here from abroad. The River of
focused on a geographical location, High-Speed Rail (HSR) link between Life project, which has seen several
centred on Malaysias capital city our two nations. To position Malaysia attempts at initiation since even
and its surrounding suburbs. as a hub for commercial activity and before the NTP, also demonstrated
During the year, this NKEA talent, InvestKL secured the entry of encouraging progress with the
witnessed tangible outcomes of 13 new multinational corporations river cleaning portion starting to
six years of hard work initiated at (MNCs), bringing the total number show results in improving the water
the start of the NTP. In addition to of MNCs setting up their regional quality of the iconic Klang and
the commencement of the MRT operations here to 64 since the Gombak rivers and its tributaries.
Line 1, it also recorded the signing start of the NTP; while TalentCorp
FINANCIAL SERVICES
The Financial Services NKEA

is a strong example of the private
sector taking the lead in economic
activities, facilitated by the
Government and other regulators.
During the year, the financial
system remained resilient due to
the well-capitalised banking system
and in spite of external factors such
as soft conditions in the oil and
commodities markets. The capital-
markets also continued to be robust,
recording a value of RM2.8 trillion.
Financial Services highlights
during the year include progress
in the single insurance and takaful
business conversion exercise and
growing adoption of new digital
technologies in financial services
with the introduction of peer-to-
peer financing.
THE YEAR IN REVIEW

WHOLESALE AND RETAIL
The Wholesale and Retail NKEA during the year, while Lulu Group, a
aims to capitalise on Malaysias major retailer from the Middle East,
strong private consumption by also commenced its operations
facilitating investments in the sector here during the year. In terms of
and assisting small retailers increase supporting small retailers, the
their competitiveness. In addition TUKAR and ATOM programmes
to brick-and-mortar shopping, the continued to transform local
NKEA also promotes the growth of retailers and automotive workshops.
e-commerce. The TUKAR programme signed up
In line with this, seven new 151 new participants in 2016, while
hypermarkets and 12 new 100 new ATOM participants were
superstores opened their doors recorded.
COMMUNICATIONS CONTENT AND INFRASTRUCTURE
Efforts under this NKEA are

aimed not only to drive Malaysias
communications and creative
content activities higher up the
value chain, it also seeks to leverage
digital platforms to create additional
income for Malaysians, especially
the B40 group.
During the year, activities were
focused on the development of
digital applications and content
while expanding communications
connectivity. To this end, the Bay of
Bengal submarine cable to enhance
broadband connectivity was
completed in 2016 while creative
content recorded export growth of
182% to RM1.22 billion. Furthermore,
high-speed broadband ports were
also increased to 281,262, with new benefiting from this initiative.
towns and cities including Kangkar Broadband coverage also improved
Pulai, Johor; Kemasek, Terengganu; with the addition of 127,546 ports
Bukit Palah, Melaka; Kota Belud, providing high speed broadband in
Sabah; and Lundu, Sarawak sub-urban areas (SUBB).
THE YEAR IN REVIEW
TOURISM
The tourism industry continues The NKEA undertook the Tourism A further highlight for the
to build on Malaysias prominence Lab 2.0 in 2016, identifying culture, industry in 2016 includes the
as an internationally-renowned arts, heritage and crafts as well as introduction of Visa-free entry
tourist destination by focusing birding, diving and homestays as and eVisa facilities in March 2016,
on new opportunities for growth. new areas to be developed. At the aimed mainly at facilitating travel
The country continued to gain same time, the ecotourism cluster from China. This resulted in a 26.7%
recognition and was named Asias and cruise industry continued to increase in Chinese tourist arrivals
Leading Destination at the World provide strong avenues for growth. for the year.
Travel Awards 2016 and the No. Furthermore, Malaysia has emerged
1 Muslim-friendly Destination by as one of the regions top business
MasterCard-Crescent Rating 2016. destinations, hosting highly
The industry recorded 26.7 million accredited Meetings, Incentives,
tourist arrivals in 2016, from 25.7 Conferences and Exhibition (MICE)
million in 2015, and registered RM13 events.
billion in tourism receipts.
PALM OIL AND RUBBER
As the worlds second-largest

exporter of crude palm oil, with 5.6
million hectares of planted area
out of the 7.9 million hectares of
agricultural land available, palm oil
continues to be Malaysias leading
commodity. Through the NTP,
the palm oil industry has been
geared towards unlocking higher-
value potential while creating
opportunities for smallholders.
In terms of the rubber industry,
this NKEA has focused on raising
demand as well as the quality of
supply. 122,521 hectares of palm oil land and the worlds fifth-largest producer
As a result, the country produced seven palm oil mills certified in 2016. of natural rubber. Malaysia is now
15.85 million tonnes of crude palm oil Meanwhile, the rubber industry renowned globally for its high-
for the domestic and foreign markets recorded strong growth in the quality and competitively priced
in 2016, valued at RM52.2 billion. The price of Standard Malaysian Rubber rubber products. This contributed
Government also fully implemented grade 20 to RM8.71 at the end of to a marginal year-on-year growth
the Malaysian Sustainable Palm Oil 2016 from only RM4.81 in 2015. of 0.9% in its exports of rubber
(MSPO) certification in line with Although rubber production and products in 2016, surpassing RM18
global standards for quality and exports of natural rubber have been billion.
environmental compliance, with on the decline, the country remains
THE YEAR IN REVIEW

AGRICULTURE
The Agriculture NKEA focuses raw and unclean birds nests from
on driving local companies up the Malaysia to China. Signed during the
value chain through the adoption YAB Prime Ministers visit to China,
of better standards, technology the protocol is expected to drive
transfer and facilitation of higher- the price of Malaysias birds nests
value activities, utilising the anchor exports up to between RM3,000
company model to expand export and RM5,000 per kg from RM1,000
presence while leading smaller per kg previously. This will benefit
players towards achieving larger 10,000 birds nest farmers. Another
market share. Collectively, this achievement includes the higher
enables companies to demand average annual income earned by
better pricing thus increasing their farmers involved in the NKEAs mini
income. estate paddy farming initiative; to
The sector recorded a RM42,000 in 2016 from RM33,500
breakthrough in 2016 with the in 2012.
signing of the protocol allowing
COMPETITION, STANDARDS AND LIBERALISATION
Aimed at enabling an following the liberalisation of 45

environment that is conducive for services sub-sectors, the Malaysia
business in Malaysia to raise the Services Development Council
countrys global competitiveness, (MSDC), which oversees the
this SRI continued to record liberalisation process, continues to
milestones including the issuance improve the regulatory environment
of two decisions against companies by reducing or eliminating laws
found guilty of anti-competitive while the Malaysian Productivity
practices, following the Malaysia Corporation (MPC) has also
Competition Commissions reviewed and recommended the
(MyCC) fifth year of enforcing removal of various regulations
the Competition Act 2010. On the for the education, healthcare,
Standards front, standards adoption professional services, construction
gained further traction with a 10% industries and ICT sectors.
growth to 1,070 in the number of
companies being certified on various
standards. In terms of Liberalisation,
THE YEAR IN REVIEW
HUMAN CAPITAL DEVELOPMENT
The Human Capital Development Training Programme (DVT). The One major breakthrough of
SRI focuses on upskilling and programme is set to be expanded this SRI was its initiation of the
reskilling the countrys talent pool with further funding from the Minimum Wage Order 2012, which
to meet the human capital needs Ministry of Human Resources, while institutionalised minimum wages
of a high-income nation, while the Penang State Government also for the domestic labour market to
enabling workers to secure higher- sponsored RM2 million to expand raise living standards of Malaysian
income jobs through capability- the programme in the state. workers, especially the lower-
building programmes as well as the Other highlights include the income groups. Under this Order,
appropriate legislation. continued momentum of the the minimum wage for workers in
Among efforts include the National Human Resources Centre Peninsular Malaysia as well as Sabah,
establishment of a partnership (NHRC) in supporting the human Sarawak and Labuan was initially set
between the Department of resource management capabilities at RM900 and RM800, respectively.
Skills Development, the German- of SMEs, in addition to capability- In July 2016, the minimum wage was
Malaysian Institute (GMI) and building programmes which saw the raised to RM1,000 for Peninsular
Malaysian German Chamber of participation of 33,735 employees Malaysia and RM920 for Sabah,
Commerce and Industry for the in 2016. This earned the employees Sarawak and Labuan.
introduction of the Dual Vocational certifications and diplomas in
Human Resources.
PUBLIC FINANCE REFORM
The Public Finance Reform A number of initiatives have goods and services which are GST-
Strategic Reform Initiative been implemented to achieve exempt, such as healthcare and
implements public finance-related this, including strengthening tax education. Furthermore, certain
policies recommended by the administration and compliance goods and services such as basic
National Economic Advisory Council by the Inland Revenue Board of household items are subject to 0%
(NEAC) in the New Economic Malaysia (IRBM) and the Royal GST.
Model (NEM). It aims to strengthen Malaysian Customs Department
Malaysias fiscal position that had (RMCD). This has allowed IRBM to
been weakened following the 1998 collect RM2 billion and RMCD over
Asian Financial Crisis. RM150 million more than their usual
Since its commencement, the collection target.
SRI has assisted the Government This SRI also led the development
to gradually reduce its fiscal deficit and implementation of the Goods
from 6.4% in 2009 to 3.1% in 2016. As and Services Tax to replace the Sales
a result, the Government continues Tax and Service Tax. In addition
to maintain its target of achieving a to improving the Governments
balanced budget by 2020. finances, the GST introduced a
safety net for the public for essential
THE YEAR IN REVIEW

NARROWING DISPARITY
This SRI was established to From 2011 to 2016, the provides scholarships at the school,
improve outcomes for Bumiputera Roadmap created RM108 billion in tertiary and professional certification
in the areas of corporate equity, employment opportunities, funding levels, with 6,239 scholars in 53
employment, entrepreneurship, and investment. Programmes such programmes identified as recipients
human capital and ownership of as Dana Mudahcara (Facilitation during the year.
non-financial assets. Its initiatives are Fund) provided grants for the
undertaken through the Bumiputera infrastructure and equipment
Economic Transformation Roadmap costs of projects. As at the end of
overseen by Unit Peneraju Agenda 2016, RM1.57 billion in funding was
Bumiputera (TERAJU). Since 2011, approved, generating RM13.18 billion
TERAJU has introduced 27 main in investments for 469 projects.
programmes aimed at driving This catalytic activity also created
wealth creation among Bumiputera 43,371 employment opportunities. In
individuals, entrepreneurs, SMEs, the area of human capital, Yayasan
corporates and Government-Linked Peneraju Pendidikan Bumiputera
Companies.
PUBLIC SERVICE DELIVERY TRANSFORMATION (PSDT)
Aimed at improving the LEAN Healthcare is aimed while the Road Maintenance
processes and service quality of at improving the quality of care Transformation programme saw
public services, a series of pilot provided by public hospitals by using improvements to 136 km of 43 main
projects were undertaken to test the existing resources to enhance the and protocol roads around the KL
ability and capacity to achieve quick patient experience and add value to Central Business District in 2016.
positive outcomes. The projects are the public health service. To date, the
then scaled up towards driving new process has been implemented in 36
nationwide standards for public MOH hospitals nationwide and has
service delivery. since proven its worth in enhancing
Projects in 2016 included the delivery of healthcare services in
the Ministry of Healths (MOH) Government hospitals. In 2016, 80
LEAN Healthcare initiative and LEAN projects were implemented
the Ministry of Federal Territories in these hospitals, recording an
(Kementerian Wilayah Persekutuan average improvement of between
- KWP) Projek Perumahan Rakyat/ 20% and 50% in patient waiting
Perumahan Awam (PPR/PA) times. Meanwhile, KWPs PPR/
Lift Transformation and Road Lift Transformation programme
Maintenance Transformation. has expanded to five PPRs/PAs,
THE YEAR IN REVIEW
THE LAST MILE OF TRANSFORMATION
As announced by the YAB Prime In tandem with this transition, to play a part in the national
Ministers Office in January 2017, the NTP will be tasked to the Chief transformation agenda. The journey
we reached another milestone in Secretary to the Government, YBhg. has not been without its challenges,
2016, marked by the transition of Tan Sri Dr. Ali Hamsa in 2017. Since sometimes compounded by the
performance management and KPI his appointment in 2012 as the career cynics, who lack the belief
monitoring of the NTP to the civil countrys top civil servant, YBhg. Tan that we would ever achieve anything.
service. Sri deserves our utmost gratitude I am, given the results and outcomes
Where PEMANDU has for his support and commitment to we have illustrated thus far, glad to
previously introduced the process the NTP. PEMANDU will continue say that Malaysia is on the right path
of transformation, monitored to support the Government in along our transformation journey. I
and supported the civil service performance management and am confident that the civil service
in implementing the NTP, it was delivery of the NTP for the next will continue to build on their good
determined in 2016 that some two years to ensure a smooth and work undertaken since 2010. I
NKRAs, NKEAs and SRIs were successful transition. encourage them to continue raising
to be fully transferred to the civil I would also like to take this the bar in setting the standard for
service allowing independent opportunity to thank YAB Prime best transformational practices.
implementation of transformation Minister and the Government for
initiatives by the civil servants. giving PEMANDU an opportunity
25
NATIONAL TRANSFORMATION PROGRAMME

2016 ANNUAL REPORT
NTP
Improving Urban Public Transport 26
Raising Living Standards of Low-Income Households 40
Reducing Crime 46
Fighting Corruption 54
Addressing the Rising Cost of Living 60
Improving Rural Development 66
Education 70
Greater Kuala Lumpur/Klang Valley 86
Oil, Gas and Energy 94
Wholesale and Retail 104
Palm Oil and Rubber 114
Tourism 122
Electrical and Electronics 134
Business Services 140
Communications Content and Infrastructure 150
Healthcare 158
Financial Services 170
Agriculture 180
Human Capital Development 188
Public Service Delivery Transformation 198
Competition, Standards and Liberalisation 206
Narrowing Disparity 218
Public Finance Reform 226
One Step DATO SRI

LIOW TIONG LAI
Closer
Minister of Transport
to Our
The year 2016 ushered in a new era of urban
public transportation in Malaysia with the opening
of Phase 1 of the Klang Valley Mass Rapid Transit
(MRT) Line 1, spanning Sungai Buloh to Semantan.
Destination The completion of the MRT represents a promise

delivered by the Government, paving the way
towards a world-class public transport system.
Commuting in and around our cities is now better
than ever, with a range of reliable, affordable, safe
and eco-friendly options available to the public.
The Governments efforts to enhance our
urban public transport network are not only aimed
at enabling the efficient movement of people
and goods, but also building environmental
sustainability. We also hope to improve commuters
quality of life by providing travelling option for
the public, allowing the rakyat to spend less
time caught in traffic and save travel costs. With
activities in 2016 focused on expanding our rail
services, such as with the launch of the MRT and
the LRT Extension Project, in addition to measures
to improve bus services and the taxi industry
transformation which is currently underway, we
are confident of attaining our target of 40% modal
share for public transportation in Greater Kuala
Lumpur/Klang Valley (Greater KL/KV) by 2030.
In doing so, there remains a need to enhance the
overall connectivity of our urban public transport
network, especially in terms of the first- and last-
mile, to encourage demand for public transport.
This will complement the capacity improvements
the Government has put in place over the past few
years to provide the rakyat with a variety of options
for commuting in and around urban areas.
We have already seen a positive impact from
the improvements in urban public transport so far
and I hope that the rakyat will continue to join us
on this exciting journey towards building a public
transport network that we can all be proud of.

The MRT Sungai Buloh-Kajang Line.
OVERVIEW
The Improving Urban Public The population of the Greater to capitalise on career opportunities
Transport National Key Results Area KL/KV region is expected to reach in the city.
(UPT NKRA) has seen significant 10 million by 2020, and with it, In 2016, the public transport
investments since 2010 in order increase traffic congestion which network in Greater KL/KV received
to enhance the adoption of public not only causes inconvenience a significant capacity increase,
transport in the Greater Kuala and frustration, but also results with the completion of several
Lumpur/Klang Valley (Greater in economic losses due to lost high-impact projects. Aside from
KL/KV) area. In 2016, RM106.5 productivity, wasted fuel and enhancing the rail network, seen
million was spent to improve the environmental pollution. Switching as the backbone of Greater KL/
connectivity and accessibility of to the use of public transport for KV public transport, the UPT
the public transportation network the majority of daily commutes by NKRA has also improved bus and
within Greater KL/KV, enhance the urbanites is expected to ease this taxi services, which provide vital
networks capacity and increase congestion and mitigate its effects. first-and-last-mile connectivity
overall customer satisfaction. These Public transport commuters also to the rail system, as well as other
efforts have now materialised and gain peace of mind by avoiding the intermediary infrastructure and soft
can be seen in the encouraging 2016 inconveniences of searching for measures aimed at increasing the
KPI achievement of 84%, surpassing parking and other stresses related attractiveness of public transport.
progress made in previous years. to driving private vehicles. The All efforts to improve urban
The public transport modal share increased connectivity between public transport have significantly
in Greater KL/KV has also improved Greater KL/KVs many suburban increased public transport modal
from 10% in 2009 to 20% as of 2015. centres and the Central Business share in Greater KL/KV.
District (CBD) further allows people
MRT AT THE FOREFRONT OF URBAN PUBLIC

TRANSPORT TRANSFORMATION
will generate a Gross National Income
(GNI) of between RM3 billion and RM4
billion per annum from construction and
operations alone from 2011 till 2020.
Furthermore, aside from improving
connectivity and spurring economic
growth, the MRT is anticipated to result
in a host of other benefits such as higher
productivity gains and a better quality of
life.
For example, with travel time
reduced, as people are no longer stuck
in traffic jams, productivity is expected
to increase to 280 million hours annually.
This will translate to RM20 billion per
The YAB Prime Minister and the Chief Secretary to the Government, annum in time savings, he says.
Tan Sri Dr. Ali Hamsa, at the launch of MRT Phase 1. The MRT will certainly be at the
forefront of changing the landscape
of land public transport in Malaysia.
Imagine this: by the year 2020, there Mass Rapid Transit Corporation Sdn With high levels of reliability, safety
will be an estimated 10 million people Bhd (MRT Corp) envisions that the Mass and integration, hopefully the MRT will
living in the Klang Valley, all of whom Rapid Transit (MRT) will be a solution be able to shift the rakyats mind-set
will travel around the Greater Kuala to traffic congestion by reducing the towards utilising it.
Lumpur area by car. With such growth, number of people having to rely on I believe there were two critical
both in population and in the number private cars for commuting, says MRT success factors in the implementation
of cars, the roads will not be able to Corp CEO Dato Sri Shahril Mokhtar. of the MRT project. Firstly, the structure
accommodate all these vehicles that will MRT Corp has estimated that some of the MRT project, with the MRT
be making their way in and out of the 529,000 users will use the MRT Sungai Executive Committee chaired by the
city. Traffic conditions will only get worse Buloh-Serdang-Putrajaya line once it Chief Secretary to the Government,
and perhaps even be gridlocked for long comes online in 2022, following the full which has enabled efficient decision-
periods. launch of the Sungai Buloh-Kajang line in making and problem solving, especially
third quarter 2017. in those areas involving various parties
Besides being a solution for and Government agencies, Dato Sri
transportation needs, Dato Sri Shahril Shahril says.
says that the MRT project will create He continues that the committee
MRT Corp has estimated that employment opportunities for an comprises of heads of agencies and
estimated 130,000 people. This in turn authorities. Any issues arising can be
some 529,000 users will
use the MRT Sungai Buloh-
Serdang-Putrajaya line once
it comes online in 2022,
following the full launch of
the Sungai Buloh-Kajang
line in third quarter 2017.

resolved at the highest level through
this forum, thus ensuring construction of
the MRT runs according to schedule. In
addition, its Project Delivery Partner has
provided strong project management
expertise that has resulted in timely
delivery by contractors. Moreover, the
rapport between MRT Corp and the
Land Public Transport Commission
(Suruhanjaya Pengangkutan Awam
Darat - SPAD) has been paramount in
running the project smoothly.
The Urban Rail Development Plan
(URDP) is important in ensuring that an
integrated rail network system with good
The YAB Prime Minister riding the MRT SBK Line.
connectivity is developed. The MRT
project is a critical component of the
Klang Valley Urban Rail Network. Whats
Partner initiated collaboration with CIDB
more, SPAD was also the authority to
(Construction Industry Development
give the final approval to both the SBK
Board) Malaysia and NIOSH (National
and SSP Line Railway Schemes. Thus,
Institute of Occupational Safety and
we had to work closely to obtain the
Health) Malaysia to further improve
final approval as efficiently as possible,
education in safety for the MRT project.
explains Dato Sri Shahril.
This collaboration set a benchmark
It should also be noted that SPAD
for Malaysias safety standards in the
chairs the MRT Technical Committee,
construction industry, inadvertently
which meets to solve all project-related
becoming a reference point for other
issues and guarantees a seamless
players in the construction industry to
process in executing the project. project and also in terms of integrity and
improve their safety standards, explains
A project of such size and magnitude good governance. For the size and value
Dato Sri Shahril.
as the MRT however, has seen its share of the project that is based on utilising
Learning from the experience of
of challenges. These included building public funds, it is important to ensure
constructing the SBK line, MRT Corp has
through very developed urban areas, that there is a high level of transparency.
introduced five major initiatives to boost
making construction a challenge as Ultimately, the proof of any pudding
SHE standards for the construction
there was limited space to work with. is in the eating. For the MRT project, the
of the KVMRT. They are Construction
This also made safety a big concern as proof of MRT Corps success is of course
Design Management, Specifications
the construction took place in an area in its timely delivery, within the stipulated
and Contractual Obligations, SHE
where people come and go, 24 hours budget, and in the working of the railway
Performance Scheme, Safety Passport
a day, seven days a week. MRT Corp system, he says.
Scheme, and Master Trainer Programme.
addressed this by implementing high
The initiatives are not only aimed at
safety standards at the construction site
reducing the number of incidents at
together with various other measures
the MRT project worksites but also at
such as Traffic Management Plans and
developing a culture of ownership on
awareness programmes with the public.
SHE aspects by the Work Package
MRT Corp places a lot of importance
Contractors.
on Safety, Health and Environment
Moving forward, Dato Sri Shahril
(SHE). Currently, the construction
would like to see the MRT project as the
industry in Malaysia has a very low
project that sets the benchmark in terms
understanding on SHE. MRT Corp
of project management, delivery of the
together with its Project Delivery
Launch Ceremony of LRT Line Extension Project in June 2016.
The LRT line extension

recorded an average
daily ridership of
440,000 since its
inception, the line
extension is a RapidKL four-car train set for LRT line.
testament to UPT
These efforts have clearly for public transport use, recording
planning which meets paid off, as also demonstrated
by the results of the Land Public
an improvement to 78% in 2016
from 67% in 2015 in respondents
the needs of Transport Commissions (Suruhanjaya
Pengangkutan Awam Darat - SPAD)
likelihood of using public transport
in the future.
the rakyat. 2016 Customer Satisfaction Survey

conducted by Ipsos. The survey
In order to ensure that the
UPT NKRA meets and even
showed that overall customer exceeds the expectations of the
satisfaction with public transport rakyat, extensive benchmarking of
has increase to 84% in 2016 from world-class public transportation
74% in 2015, mainly due to the infrastructure from across the
LRT Extension Project. Notably, globe has been conducted, with the
the improvement in customer adoption of these practices tailored
satisfaction was also contributed by to local conditions. For example, the
more convenient taxi services due recent Taxi Industry Transformation
to mobile applications. The survey Programme (TITP), which aspires
also showed a positive outlook to overhaul the industrys systemic

issues, is an example of this rigorous added between the Sri Petaling and Improvements to the rail network
approach. Malaysias taxi industry Kelana Jaya stations, extending the extend beyond just infrastructure
was benchmarked against those Kelana Jaya Line to 46.4km and the upgrades. KTM also charted several
from the UK, Singapore, Australia, Ampang Line to 44.7km. Recording service delivery successes, with its
Dubai and Indonesia in terms of its an average daily ridership of 440,000 KTM Komuter services during the AM
business models, driver assessments, since its inception, the line extension peak period (7am-9am) registering
accreditation and training, as well as is a testament to UPT planning an on-time arrival rate (defined as
market entry costs. Ridesharing/e- which meets the needs of the rakyat. within a margin of 10 minutes of
hailing service regulation in various The LEP also extends commuters the scheduled arrival time) of 97%
other markets was also scrutinised. accessibility to other urban rail following the deployment of new six-
This ensures that Malaysia adopts networks, including Keretapi Tanah car sets in Greater KL/KV to cater
a progressive approach to taxi and Melayu (KTM) Komuter stations and to a growing number of commuters.
ridesharing services which will be Bus Rapid Transit (BRT) Sunway The enhancement initiated five
beneficial for the rakyat. services. years ago took a holistic approach
Meanwhile, the first phase of the and addressed supply issues for
Improving the Rail

Klang Valley MRT Line 1 from Sungai KTM Komuter to increase the
Buloh to Semantan began operations capacity and reduce wait times for
Backbone of the
on 16 December 2016. Despite several passengers, especially during peak
challenges along the way, this mega- hours. Headway for KTM Komuter
Public Transportation
project registered savings of RM2 trains during peak hours has since
billion from the initial target cost of improved from 45 minutes to 15
Network
RM23 billion, and the entire 51km minutes, making rail travel a more
Sungai Buloh to Kajang line is on convenient option.
track to be completed as scheduled
Several infrastructure projects by July 2017.
involving the rail network that serves
Greater KL/KV were completed
and launched in 2016, with several
more either in the planning or While the rail network makes up the
implementation stages.
The completed LRT Line backbone of the urban public transport, the
Extension Project (LEP) was launched
as scheduled in July 2016, connecting bus network and taxi services are also high
Kelana Jaya and Sri Petaling to
Putra Heights. 23 new stations and priorities under the UPT NKRA.
35km of new rail tracks have been
MRT feeder bus.

An MRT train set on the Sungai Buloh-Kajang Line.
Further to this, on 19 October trends and patterns. Subsequently, the wider ICPS service once the latter
2016 KTM launched its Automated KTMB will be able to provide better is ready for launch.
Fare Collection (AFC) system. A comfort, convenience and safety in
Expanding First-And
new contractor was appointed terms of infrastructure and facilities
to oversee the project, with the at its stations. It will also assist KTM
Last-Mile Connectivity
Delivery Management Offices of in creating loyalty programmes and
the Ministry of Transport and the benefits for frequent commuters.
Land Public Transport Commission The AFC is also expected to help
(SPAD), as well as the KTMB Steering minimise loss of revenue by cutting While the rail network makes up
Committee closely monitoring it to down on fare dodging. It is also the backbone of the urban public
ensure effective implementation. expected to make public transport transport, the bus network and
The AFC uses tokens and more appealing to car users by taxi services are also high priorities
stored-value cards (also known as making the KTM Komuter service under the UPT NKRA, providing
KomuterLink) that can be purchased more convenient. In anticipation of many commuters access from their
at ticket vending machines and the upcoming Integrated Common residential areas to rail corridors as
customer service counters throughout Payment System (ICPS), which will be well as within the residential areas.
all 53 KTM Komuter Stations. This the standard ticketing system among 2016 marked the first full year
new system is able to capture travel all rail operators in the Klang Valley, of operations for the Bus Rapid
statistics and data that will provide the AFC system, in its current form, Transit (BRT) Sunway line, serving
KTMB with insights into ridership will be conveniently integrated into 500,000 people in Bandar Sunway

their eligibility for fare discounts as Bus Stop Info Panels have been
well as facilitated the application installed at high-traffic areas within
and issuance of BRT cards. the Greater KL/Klang Valley. These
Following the implementation panels help the rakyat plan their
of the Bus Network Revamp in journeys more effectively, as route
2015, the utilisation of Prasaranas numbers, each bus stop served
stage buses outperformed the and bus schedule information
higher KPI target set for 2016 will be displayed on the panels. A
coming in at around 80% total number of 3,000 info panels
consistently throughout the year. were targeted for installation, but
This was due to the increased due to operational issues faced
demand for buses stemming during installation, the actual
from the LRT extension and the number of info panels installed as
rollout of MRT Line 1, as well as the of 31 December 2016 amounted
addition of a new KPI to address to 1,290. Both SPAD and Ministry
the stage bus driver shortages in of Transport (MOT) have closely
Greater KL/KV. The Bus Network monitored the project to ensure
Revamp aimed to improve the the installation will continue to be
first- and last-mile connectivity completed in 2017.
of bus services between rail and To further improve first- and last-
other public transport hubs, and mile connectivity, the Taxi Industry
for direct services within Greater Transformation Programme (TITP)
KL/KV where rail services do not was introduced to improve the
reach. Efforts continued to increase taxi industry in a comprehensive
bus area coverage (especially in manner, encompassing not only
previously underserved routes) the existing fleet of registered taxis,
and frequency, as well as enhance but also the as-yet-unregulated
bus operator performance and ridesharing / e-hailing services,
network efficiency. including Uber and Grab.
and Subang Jaya and connecting

them to KTM Komuter and LRT.
This 5.4km stretch passing through
seven stations recorded up to
6,000 commuters daily 50% more
than the previous year. A major
contributing factor to the ridership
growth was the commencement
of the LRT extension in July 2016,
which boosted the connectivity and
take-up rate on public transport.
The BRT Sunway team has also
been relentless in their marketing
efforts, which focused on students,
senior citizens and the disabled.
Besides the introduction of a 50%
fare discount to students, the
project team, in collaboration with
nearby higher learning, have also RapidKL Stage buses.
informed new student intakes of
The launch of the TITP followed to the initiatives to improve their

after a lab conducted by SPAD livelihood and welfare, the reception to
and PEMANDU in late 2015, which
produced several recommendations
the legalisation of private hire e-hailing
services was, however, polarised. The Taxi Industry
endorsed by the Economic Council in The lab nonetheless proposed for
April 2016 and received the Cabinets the legalisation of e-hailing, while Transformation
approval-in-principle in July 2016. also proposing that the barriers to
The recommendations included entry for taxis be reduced, ensuring Programme (TITP)
11 initiatives under four key areas, standard clauses are present in all
namely:
the regulation of e-hailing
taxi contracts and the liberalisation of
vehicle options for taxis.
was introduced to

the
(ride-sharing) applications;
improvement of taxi
Meanwhile, the Centralised
Taxi Service System (CTSS) will be
improve the taxi

the
drivers income and welfare;
improvement of taxi
introduced as new technology to
improve the quality of taxi services.
industry in a
drivers service quality and
conduct; and
CTSS is a technological infrastructure
which consists of a core system and comprehensive
the harmonisation of taxi a mobile app interface for the driver
fares for greater industry which enables the performance manner.
competitiveness. monitoring of taxi service delivery.
A number of taxi drivers and Most importantly, the system will assist
operator associations were engaged SPAD to carry out its enforcement
and syndicated throughout the and monitoring duties with regard
lab. More than 30 meetings and to the taxi service performance and
syndications were carried out to test management. The data collected from
new ideas and initiatives that would the CTSS will also ease analysis and
improve the taxi industry as a whole. planning of taxi services, improving
While taxi associations were receptive the industry as a whole.
Teksi 1Malaysia (TEKS1M)


Making Public
Transport an
Attractive Option
Infrastructure upgrades
and extensions, performance
enhancements, and quality of
service improvements have all
been part and parcel of making
urban public transport a smart and
viable choice for city commutes.
Initiatives under the UPT NKRA are
also aimed at making urban public
transport an attractive, convenient
choice through a variety of push
and pull factors.
In terms of pull initiatives, more
Park n Ride facilities have been built Park n Ride at Salak Tinggi.
at strategic locations throughout
the Greater KL/KV rail network,
with a total target of 7,000 parking
bays. 2016 saw 1,547 new parking
bays in Park n Ride facilities at
Taman Paramount, Taman Jaya,
Taman Bahagia, UKM and Nilai.
Similarly, Parkway Dropzones
are being built at high ridership
rail stations for better integration
of existing infrastructure, such as
bus stops with covered walkways,
to encourage car-sharing and act
as a transit facility for bus/taxi
passengers to board rail services.
The first Parkway Dropzone was
completed at Kampung Dato Harun
on 13 September 2016. Parkway Dropzone at Kampung Dato Harun.
The NKRA has also spearheaded
a solution to provide real-time travel
information for urban public transport
users to plan their commute. SPAD operator service information via a
has developed a Journey Planner search engine. The application will
app which is targeted to be launched also display the best options for an
in 2017. The app is designed to help individuals trip, based on real-time
commuters find land public transport information, once the user has keyed
services to and from a destination in their start and end destinations.
within Greater Kuala Lumpur/Klang The project team is currently working
Valley. Commuters will be provided on addressing fixes and new builds to
with an integrated platform that ensure the app will be beneficial to
includes multimode and multi- the public once it goes live.
Passengers boarding a Rapid KL bus.
The urban public transport This is to support the overall aim of was submitted to DBKL, and the
capacity reached 61,978 passengers reducing private transport modal outcomes presented to the Mayor.
per hour per direction (pphpd) last share in the KL CBD (especially The workshops outcomes have
year, and this is expected to grow to around the Middle Ring Road 1) also been presented to the CEO of
127,578 pphpd by 2020, an additional during the AM peak period to 60% SPAD and received the commissions
capacity of 61%. This capacity boost by 2020. With all the pull initiatives full support. Following this, further
will help alleviate the choking traffic in place and ongoing, it is crucial to detailed discussions will need to take
condition in KL CBD but only if push be supplemented by significant push place between DBKL, SPAD and
initiatives are effectively put into initiatives to ensure strong adoption other related agencies.
place. In response to this, a KL Travel of land public transport in KL CBD Managing travel demand,
Demand Management Workshop and subsequently help improve traffic while important for the long-term
was organised in May 2016 by Dewan congestion. sustainability of a growing city like
Bandaraya Kuala Lumpur (DBKL) The workshop came up with nine Kuala Lumpur, will not be easy.
in partnership with various related initiatives that could be implemented For instance, in July 2016, DBKL
agencies including SPAD to plan the by DBKL and SPAD within the announced a 150% increase in DBKL
implementation of push initiatives. short-term (three years). The report parking charges for on-street parking
within the CBD, which resulted in IMPROVING URBAN PUBLIC TRANSPORT

some controversy. Despite the public
pushback, it is a step in the right
direction, especially since the last rate
The urban public transport capacity reached 61,978
increase was in 1984. In future, as the
public transport capacity in Greater
passengers per hour per direction (pphpd)last
KL continues to grow and the level
of convenience for public transport
year, and this is expected to grow to 127,578 pphpd
continues to improve, more efforts
must be directed at driving demand
by 2020.
for urban public transport. Source: Operator Analysis by SPAD
Taxis in Kuala Lumpur.
Having focused on monitoring is crucial to alleviate bottlenecks

urban public transport AM peak at some Monorail stations. The
ridership as a KPI, the UPT NKRA three-year delay in the KL Monorail
will shift towards monitoring daily expansion project has warranted
ridership for a better reflection of the close monitoring by both PEMANDU
full impact its efforts are creating. and the Ministry of Transport (MOT),
In terms of rail connectivity, the escalating to the YAB Prime Minister
full Klang Valley MRT Line 1 will be for immediate intervention. A Third
completed by July 2017, followed by Supplementary Agreement was
Line 2 in 2022. MRT Line 3 (Circle signed on 3 March 2017 to address
Line) has undergone a feasibility contract issues and facilitate the
study, the results of which are being delivery of the remaining six trains
assessed. To further provide better for the project scheduled in 2017.
connectivity and manage consumer All parties have been working
demand, remedial measures will be hard to ensure the completion of the
considered and taken to address project, with ongoing monitoring of
issues relating to delayed projects implementation, rigorous problem-
such as the KL Monorail Fleet solving exercises and coordination
Expansion Project (KLMFEP), which meetings held every two weeks.

The KL Monorail Expansion Project stations. These exclusive lanes will congestion in Kuala Lumpur.
will add greater capacity to the run on existing road infrastructure, The TITP is now being
current service, which serves a daily although the roadway will be implemented, with the next major
ridership of 63,778 and registers an widened to accommodate the milestone comprising the regulation
average load factor of around 89% BRT lane. The KL-Klang BRT will of e-hailing services. This can be
during the AM peak period, with serve an important and congested anticipated in 2017, when SPAD will
demand expected to rise further traffic corridor and hence table an amendment to the Land
due to population growth and the contribute towards relieving traffic Public Transport Act to allow for
completion of other rail projects. congestion on the Federal Highway the regulation of e-hailing services.
Following the success of and improving public transport SPAD, as the lead implementer
BRT Sunway, SPAD and other connectivity in this very dense and of the UPT NKRA, will continue to
relevant agencies are working vibrant section of Greater KL/KV. oversee the TITP in 2017 and ensure
towards preparing the tender for Meanwhile, the Integrated the number of new taxis and ride-
construction of the the next BRT Transport Terminal (ITT) Gombak hailing vehicles on the road are
corridor (KL-Klang) in 2017. The project is being closely monitored, optimal.
BRT KL- Klang corridor will run from with constant engagements with Beyond the outcomes already
Pasar Seni to Klang town, passing the concessionaire, project owner discussed during the KL Travel
through three major thoroughfares; and KPI owner, to ensure significant Demand Management Workshop,
namely, the Federal Highway, Jalan construction progress in 2017. DBKL and SPAD will also be
Tun Sambanthan and Jalan Syed When completed, ITT Gombak will brainstorming a comprehensive
Putra. It will span a total distance of serve as the hub for all inter-city Travel Demand Management plan
34km along 25 stations. Unlike BRT buses operating the KLEast Coast to resolve the traffic problems in
Sunway, which features purpose- routes, removing approximately Greater KL/KV and encourage the
built road infrastructure for the 750 express buses from the Eastern further take-up of urban public
buses, BRT KL-Klang will instead and Northern sectors currently transport.
have exclusive lanes for the busway, being served by hubs in the city
at terminals and the intermediate centre, thus helping to relieve traffic
Kuala Lumpur Monorail.

DATO SRI ROHANI

ABDUL KARIM
Minister of Women, Family and
Community Development
The Raising Living Standards of Low-Income

Households National Key Results Area (LIH NKRA) has
created a deeply transformative and uplifting impact
on the nations hard-core and urban poor. With an
emphasis on providing economic empowerment to
the needy rather than merely providing handouts, the
NKRA focuses on the different factors which cause
poverty to ensure long-term, sustainable results.
This approach has become especially vital as
the Government strives for prudence in its financial
management and the optimisation of resource
allocation towards activities that will influence lasting
change. Nonetheless, I am pleased to report that
we remain on track to meet our KPI targets for the
1AZAM programme, which has become an important
element of this NKRA in catalysing meaningful
change for our hard-core and urban poor.
Since 2010, the Government has spent over RM1.9
billion on the LIH NKRA in order to uplift the rakyat
from poverty and hard-core poverty. From a poverty
level of 3.8% in 2009, the NKRA has seen a drop to
0.6% in 2014. During the year, over 90% of the people
who participated in the 1AZAM programme increased
their income by at least RM300.
In light of the challenging global economic
conditions, there is a need for a strong safety net for
the less fortunate segments of our society, not just for
the rural bottom 40% of income earners (B40), but in
Lighting the
the urban areas as well. The LIH NKRA has accordingly
also put in place, initiatives that empower these
segments of our population to pursue work, training
and job opportunities outside of formal employment,
Way for a in order for them to earn additional income.

Various agencies, especially those implementing
the programmes on the ground, have gone through
Brighter
many challenges together with low-income groups
determined to improve their lives. I am thankful for
their dedication and commitment, and I want to
Future
assure everyone that the Government will continue to
do its best to transform the plight of our low-income
households.

OVERVIEW
The LIH NKRA is a multi-agency
effort led by the Ministry of Women,
Family and Community Development
(MoWFCD). Other partner agencies
include the Ministry of Agriculture and
Agro-based Industry (MOA), Ministry
of Urban Wellbeing, Housing and
Local Government (MUWHLG), Sabah
State Government, Sarawak State
Government and Implementation
Coordination Unit (ICU). MoWFCD
has taken greater ownership of the
LIH NKRA, developing the NKRA
Joint Committee as an alternative
to bring together all stakeholders
to brainstorm, troubleshoot and
problem-solve while implementing
the NKRAs initiatives. Overall, the LIH
NKRA achieved 122% of its KPIs in 2016.
Credit has to be given to ICU, being
the owner of the eKasih database, for
taking the initiative to go down to the
1AZAM Niaga participant.
ground to verify the status of B40
individuals and households, to ensure
the fair distribution of funds to those
Boosting Earning
truly in need. performing 1AZAM participants
In 2016, RM66.71 million was who have graduated from the
Potential
allocated to all the agencies involved basic 1AZAM programme with
in delivering the LIH NKRA, focusing advanced training, coaching and
on the continuation of the 1AZAM mentoring. The primary goal for
(Akhiri Zaman Miskin) and Beyond The 1AZAM programme has this programme is to provide all
1AZAM programmes and the recorded significant rates of successful 1AZAM participants the
delivery of economic empowerment participation since its introduction in ability to increase their incomes from
projects to vulnerable groups via 2009. Under the seven 1AZAM focus their existing projects by 50%. With
digital means. Efforts were focused areas (AZAM Tani, AZAM Niaga, proven skills and capabilities, these
on initiatives which maximised the AZAM Kerja, AZAM Khidmat, AZAM Beyond 1AZAM participants have
value of the allocation as well as on Bandar and the autonomously- the potential to start up their own
seeking private sector assistance for operated 1AZAM Sabah and 1AZAM small and medium-sized enterprises
Beyond 1AZAM participants to grow Sarawak), individuals are provided (SMEs).
their businesses. the assistance most suitable to In 2016, 7,898 new individuals
In the Governments efforts to their circumstances and capabilities participated in 1AZAM and 10,225
alleviate the impoverished, the poor to upskill themselves. They are new and existing participants
and hardcore poor now make up then either given access to gainful have increased their income
only 0.6% of the population in 2014 employment opportunities or a above RM300. Meanwhile, 2,329
from 3.8% in 2009. The Government chance to prove their entrepreneurial participants in Beyond 1AZAM
will continue its efforts in assisting skills. successfully increased their income
the rakyat, especially the B40, to The Beyond 1AZAM programme, by 50% or more.
give them a chance of a better life. which started in September 2014
as a pilot project, provides high-
AZAM TANI DRIVES UP INCOME OF PARTICIPANTS
The project has

allowed the madrasah
to earn extra income
through six cycles of
fruit harvesting since
July 2015, generating
earnings of RM39,000
Residents of Madrasah Tahfiz Raudhatul Baiduri harvesting rock melons
that they planted as part of the AZAM Tani project.
to date.
The AZAM Tani programme to RM10,000 after receiving the projects, such as in Banting, Selangor,
has recorded significant success in assistance. where the Madrasah Tahfiz Anak
helping its participants improve their Akrab bin Hassan is another Yatim/Miskin Raudhatul Baiduri
livelihood, providing participants AZAM Tani participant who has undertook a rock melon project.
with aid to improve and expand seen phenomenal growth in the The madrasah received a fertigation
their businesses. Among these income from his agro-based/ system, as well as seeds, fertilizer,
beneficiaries include Mohd Jaffar food processing business, through pesticide and other resources
bin Juman, from Tanjung Karang, which he produces coconut-based needed to grow the fruit, while the
Selangor, who operates a fruit stall. food products. With the assistance Ministry of Agriculture & Agro-Based
Aid from the programme allowed from AZAM Tani, Akrab received Industry also provide training to its
him to upgrade his stalls canopy and the processing and packaging management and students on the
display racks, as well as equipment machinery as well as cooking agriculture and fertigation system.
needed to run his business, such as a equipment to grow his businesses, The project has allowed the
sugar cane juice machine and a cash and now earns RM15,000 monthly madrasah to earn extra income
register, among others. As a result, from just RM600 previously. through six cycles of fruit harvesting
his earnings have improved from The AZAM Tani programme since July 2015, generating earnings
just RM1,000 a month previously also conducts community-based of RM39,000 to date.

SUCCESS STORY: MARIAM HUSSIN
by AIM, Mariam now lives a better
lifestyle. Praise be to God, after
getting into the disposable diaper
industry, my monthly revenues are
around RM1 million. I have been
able to put all my children through
university without needing loans, had
their weddings in luxurious locations,
even given them each a car. I have
also been able to purchase an oil
palm plantation. And at the end of
January (2017), I will be bringing
my entire family for the Muslim
pilgrimage. She feels very fortunate
to have been involved with AIM, and
with Gods blessing, shes been able
Mariam Hussin is amongst one of hotel, and the next day back to the to live a good life.
the people who have been assisted airport, it had all been taken care of, Mariam advises low-income
by Amanah Ikhtiar Malaysia (AIM) she explained. To this day, Mariam earners who wish to become
in starting up her disposable diaper still maintains a close working entrepreneurs to take advantage of
business. Before that, she had gone relationship with her supplier. the excellent facilities and services
through a tough life. In order to Every month, Mariam gets up to offered by AIM. Sell disposable
support her family, Mariam did all five container loads of disposable diapers which are daily necessities
sorts of jobs, right up to dealing in diapers from her supplier. The quality just like rice; look at how I am able
scrap metal. Whatever I could do to of South Korean products is the to sell five full container-loads every
make money, I did, she stated. highest in Malaysia, she stated. At month. I am confident that my fellow
At that time, her family was so present, she also exports to Indonesia Sahabat AIM are able to succeed the
poor she could not afford to buy and the Philippines. The imported way I have.
the disposable diapers that were disposable diapers are distributed
then on sale for her small children. not only through retail outlets, but
My income before 2003 didnt even also through online channels such as
reach RM1,000. Mudah.com. In fact, at one stage she After having been
The expense of disposable was also selling through the Tesco
diapers was one of the factors that chain of hypermarkets. supported by AIM,
inspired Mariam to enter the industry. Mariam is very thankful for the
I tried to go overseas to find diapers assistance that AIM has provided Mariam now lives a
with more reasonable prices, which her. Amanah Ikhtiar Malaysia is
could then be resold. So I began my a body that has been extremely better lifestyle. Praise
business in 2003; I went to (South)
Korea to import their products and
good to me, and has greatly helped
small business owners. AIM has be to God, after getting
then to distribute them in Malaysia
and overseas.
provided me assistance in the form
of promotion, training and courses,
into the disposable
Mariam had been given a lot
of support by her South Korean
explaining my products to other AIM
friends and also financially through
diaper industry, my
supplier when she made the decision
to become the exclusive distributor
loans. AIM loan repayments are not
burdensome, either. AIM also gives
monthly revenues are
for his brands in Malaysia. Transport,
food and lodging from the airport
AIM friends the opportunity to
network with each other.
around RM1 million.
to their factories and then to the After having been supported
Entrepreneurship as
day, on 17 September 1987, with the by AIM is through partnerships
aim to reduce the level of poverty in with universities. Since 2012, AIM
a Means of Escaping
Malaysia by providing micro-credit in collaboration with AKPK has
financial aid to support economic been working together with
Poverty
activities that have the potential to Taylors University to organise
generate more income for low income financial literacy programmes for
households. The services provided by entrepreneurs to improve their sales,
The Government has always been AIM have comprehensively helped income and savings. The mentor-
committed in helping the rakyat to many entrepreneurs from the B40 mentee concept was introduced
increase their incomes and lead a segment to establish and develop through this collaboration to allow
better quality of life. A long-standing their businesses and expand to the business owners to acquire
initiative by the Government to help SMEs through close monitoring and theoretical knowledge in order to
individuals in the B40 segment to continuous training. enrich their businesses and achieve
increase their income and escape Since its establishment, AIM higher sales to develop from micro
poverty is through the efforts of has developed innovative ways to businesses to small and medium
Amanah Ikhtiar Malaysia (AIM). further enhance the capabilities enterprises.
Amanah Ikhtiar Malaysia is a trust of entrepreneurs from the B40
council initiated way back in the segment. One of the ways adopted
eKASIH DATABASE ENSURES EFFECTIVE AID DISTRIBUTION

given and leakages to the poor is then automatically calculated by
and hard core poor by establishing the system based on the households
a central data bank which can be income and Poverty Line Income
accessed and used by all agencies (PLI).
and other related parties involved in eKasih keeps detailed profiling
poverty eradication programmes at of the poor and hard-core poor as a
both the Federal and State level. Thus, base for national poverty programme
all agencies are accessed and referred planning and aid distribution.
to in the same repository, says Md Information captured contains
Azhan Samat, Director of Society programme/project information
As part of initiatives to ensure Wellbeing Division at ICU. details and profiles of heads of
effective distribution of funds and Previously, data related to households (HOHs) and members of
assistance to low-income individuals poverty was collected and stored households (MOHs), including details
and households, the Implementation by the various databases owned of location, residence, education
Coordination Unit, Prime Ministers by the different agencies involved levels, skills and job, property
Department (ICU JPM) has developed in alleviating poverty. Although this ownership, health condition, sources
eKasih, a centralised National Poverty data was verified by the respective of household income and aid or
Data Bank which keeps information agencies according to their individual assistance received such as Bantuan
related to poverty such as detailed processes and procedures, the data Rakyat 1Malaysia (BR1M), Kumpulan
profiles of the poor and hard core poor, was fragmented. The Department Wang Amanah Pelajar Miskin
aids/assistance received from various of Statistics Malaysia (DOSM) has (KWAPM) and 1AZAM.
government agencies, economic since conducted a poverty census, The development of the eKasih
programmes/projects and other according to international standards, database is revolutionary, particularly
information. to further verify this data. This has in current times when despite the
eKasih was established in October improved the integrity and reliability countrys rapid development, there
2007 as a new initiative to improve the of the data. The data verified by are those who are still in need of
effectiveness of poverty eradication DOSM is then captured through the help. This database ensures the
implementation programmes. The Poverty Household Census data entry Government can channel that help
main objective of eKasih is to avoid system before it is uploaded into effectively and efficiently, says Md
any duplication of aid/programmes eKasih. A households poverty status Azhan.

on the information/documentation
required by banks/financers in the
services provided by Beyond 1AZAM.
The NKRA will also partner with
SME Corp and participating banks
to facilitate microcredit financing to
YB Minister with Sahabat AIM.
successful participants and provide
additional support such as marketing
MOVING FORWARD The NKRA will increasingly

leverage other economic
training for potential and successful
1AZAM participants.
In tandem with growing emphasis
empowerment programmes by the on the use of information and
Government as well as work with communications technology (ICT) to
non-governmental agencies and the raise the incomes of the B40 and M40
private sector to ensure the continued groups, the e-usahawan programme
effectiveness of LIH programmes will be expanded as a platform
as prevailing economic conditions to further grow small businesses.
impact its funding. Efforts to gain more registrations for
The overall 1AZAM process will eRezeki will also be increased, as the
also be improved, with lessons platform will also be used to track the
learnt to be applied to further earnings of participants. Furthermore,
assist the implementing agencies promotional activities for the orang-e
in 2017. 1AZAM graduates will platform will be intensified to increase
also be incubated as Beyond its take-up, while the scope of the
1AZAM participants in an effort to orang-e platform will be expanded in
nurture entrepreneurship among 2017.
participants. Additionally, the While Malaysias economic
relevant agencies working towards climate remains resilient and the
delivering impact under this NKRA NTP has created new avenues of
will formulate a way forward for growth, it remains imperative that no
Beyond 1AZAM participants to firmly one gets left behind as the country
fix their place in the M40 or even the transforms into a high-income nation.
top 20% of income earners (T20). In tandem with this aspiration, the
Initiatives will also focus on Government will continue to innovate
providing training/support to its programmes not only to achieve
potential entrepreneurs to grow the eradication of poverty, but also to
the SME sector. This will require drive low-income households towards
incorporating training programmes a brighter, sustainable future.
REDUCING CRIME
YAB DATO SERI

DR AHMAD ZAHID
HAMIDI
Deputy Prime Minister of
Malaysia and Minister of
Home Affairs
Following six consecutive years

of significant reductions in crime, it is
reasonable to forecast the reduction in
our crime rate to moderate and reach a
plateau given the increase in population
and development. Bearing in mind that
the safest cities and countries in the world
are not crime-free, the achievements
under this NKRA to date are nevertheless
noteworthy. Between the year 2010 to
2016, our Index Crime decreased at an
average of 9% annually to record a total
reduction of 47%. In 2016, the reduction
registered a lower decrease rate of 2.8%.
This figure suggests that the number
of residents filing crime reports have
increased, but does not directly indicate
that there is an increase in the number
of crime incidents. Rather, it possibly
suggests the increase in vigilance of
the rakyat in filing crime reports. The
analogy of the tip of the iceberg can be
applied in this context.
The Perception of Crime Indicator
(PCI) introduced in 2015 recorded
Ensuring the
a reduction in the people of Kuala
Lumpurs fear of becoming a victim of
crime, signalling that the rakyat does feel
Safety and
safer. From 80% in 2015, this has been
dramatically reduced by 19% to 61%,
which reflects a marked improvement
in our endeavor to address the publics
Security of the
most pressing concerns about crime and
safety, as we embark on a more targeted
approach to combating crime.
Country and
The core of our efforts is the complete
transformation of our law enforcement
agencies. Under the Modern Policing
its People
initiative, the Royal Malaysian Police
(PDRM)s vision is to become a world-
class, service-oriented police force
by 2020, by using technology to
improve efficiency and productivity. By
streamlining and simplifying decades-
REDUCING CRIME
old processes and work practices,
we will free up personnel to focus
on eliminating existing threats
OVERVIEW opportunity to be trained and certified
in various technical skills to increase
their employability once released. This
and facing new ones. We are also The Reducing Crime National Key reduces criminal recidivism and is an
changing the way we rehabilitate Results Area (CRI NKRA) has been important part of crime prevention.
drug offenders and how they can successful in reducing the Index Crime The CRI NKRA is also looking
be reintegrated into society by by 47% from 2010 to 2016, with the towards enhancing border security as
providing an innovative end-to-end number of cases declining to 112,354 threats and occurrences of terrorism
drug offender treatment programme in 2016 from the 2009 baseline of as well as human, drug and weapons
which has been piloted in the district 209,817 cases. Overall in 2016, CRI trafficking are rising globally. Malaysias
of Besut, Terengganu. NKRA achieved 118% of its KPIs. In security forces must be proactive
This year we also took steps the past seven years, the NKRA had in facing these threats, focusing on
towards strengthening our borders. focused its efforts on crime reduction, preventive measures to arrest on
Our countrys socio-economic drug rehabilitation, prisoner upskilling, international and cross-border crime
prosperity and development have community policing, and programmes with an eye not only on keeping
increased our vulnerability to to improve public perception. Malaysia safe, but also on safeguarding
criminal elements. Human and However, due to (but not limited the economy.
drug trafficking, and the threat of to), the ever-shifting trends in crime, This NKRAs 2016 initiatives for
terrorists infiltrating our borders, Malaysias evolving demographics, reducing crime were benchmarked
are very serious issues that must and socio-economic structure provide against several best practices
be addressed urgently. I believe a basis for change to the way crime internationally i.e. Modern Policing
the newly set up Border Safety reduction initiatives are formulated. (Singapore Police Force, London
Agency and the Border Security Lab With the national Index Crime rates Metropolitan Police, Hong Kong
held in April 2016 will significantly starting to moderate and the PCI Police Force), Drugs Treatment
strengthen our borders and indicating that the rakyat of Kuala Initiative (Portugal), Border Security
discourage criminal syndicates from Lumpur feel safer now than they have (US-Mexico border framework, US-
operating at our borders. in the previous year, the CRI NKRA will Canada border framework, UK Border
Lastly, the foundation upon focus on addressing the issues raised in Agency) and Perception of Crime
which this NKRA was built is to the NKRAs annual surveys to continue Surveys (UK, US).
ensure the safety and security of ensuring the safety of the rakyat.
our people remains paramount in One of the ways in which the CRI
all our efforts to combat crime. I NKRA is changing the way crime is
believe this years results shows addressed is through the Modern
the impact of the crime reduction
initiatives implemented, and I would
Policing (MP) initiative within the
PDRM, aimed at shifting the police
In the past seven
like to congratulate PDRM and
other NKRA stakeholders such as
force towards a service-oriented,
technology-savvy organisation that is
years, the NKRA had
the Department of Prisons and the
National Anti Drug Agency (Agensi
focused on its core duties.
Another change in direction
focused its efforts on
Anti Dadah Kebangsaan, AADK) on a
job well done, but we must continue
comes from reviewing the way drug-
related offenders are treated. The
crime reduction, drug
to be vigilant. decriminalisation of drug offences
marks a policy change towards the
rehabilitation,
innovation and modernisation of how
the country views and treats addiction
prisoner upskilling,
in a holistic manner.
Meanwhile, prison time is viewed
community policing, and
not just as incarceration, but an
opportunity for inmates to reflect
programmes to improve
on their life and better themselves
through upskilling programmes.
public perception.
Prisoners are provided with the
REDUCING CRIME
Modern Policing Talk to Us Event.
Transforming the
include replacing a 30-year old feet on the ground to enhance public
manual filing process and shifting confidence. With the MP initiatives
Police Force
towards electronic filing by migrating in place, approximately 10% of the
handwritten POL40 (station diary) manpower (or 11,500 personnel) in
and POL41 (police report book) forms the police force is expected to be
Phase One of the 10 Modern to the electronic format, enabling deployed for on-the-ground tasks.
Policing (MP) initiatives was auto-filling of identity details when a Other technological improvements
completed on 31 October 2016. The complainants National Registration will also be brought through the MP
implementation of these initiatives Identity Card (NRIC) is inserted into initiatives to reduce redundancy
was headed by the Royal Malaysian the Police Reporting System (PRS), and simplify paperwork processes,
Police Kuala Lumpur Contingent providing biometric and NRIC readers releasing personnel for patrolling and
Headquarters and rolled out to 24 at stations. The MP programme also other core policing duties.
police station within the contingents encourages effective patrolling, PDRM has also taken a stricter
jurisdiction. Amongst the initiatives allowing the police force to put more stance on law enforcement for
common infractions and as of
December 2016 issued 1,676,272
summonses, of which 665,111 have
been collected. This has contributed
PDRM has also taken a stricter stance on law to higher Government revenue
with approximately RM81.3 million
enforcement for common infractions and as of collected. For 2017, this NKRA will
pursue a higher target for summons
December 2016 issued 1,676,272 summonses, collection of at least 40% from 30%
in 2016.
of which 665,111 have been collected. The success of the MP initiative

has been reflected in the results of
the PCI, which recorded a reduction
in the publics fear of being a victim
REDUCING CRIME
of crime and an improvement in the Workshops aimed at reviewing in 2015, an increase of 8.1%
feeling of safety among the rakyat. current engagement strategies, The CRI NKRA will also move
The total number of respondents introducing improvements and new towards a more comprehensive
in the KL survey also increased to measurements for effectiveness were approach to measure the crime
14,393, indicating an increase by 3.4 completed in September 2016 and are rate, such as by calculating crime
times from 4,200 in 2015. currently in the process to syndicate. per 100,000 population where the
In a further effort to understand As the NKRA continues to crime rate is measured by dividing
the publics concerns about crime undertake initiatives to keep crime the number of reported crimes by
and safety, the NKRA has completed rates low, efforts will increasingly take the total population; the result is
the development of a Community into account growing urbanisation multiplied by 100,000. This, together
Engagement Index (CEI). The which is contributing to a rise in street with other NKRA initiatives, will
CEI is aimed at restructuring crime, in addition to the uptrend in shape how PDRM and other law
and streamlining the way PDRM non-index crimes such as cybercrime enforcement agencies address crime
engages with the public and will be and narcotics-related crimes resulting moving forward.
measured based on three criteria; from Malaysias shifting demographics
the percentage of engagement (foot and worldwide crime trends. From
print); the intensity of engagement January to December 2016, 17,333
(contact hours); and the effectiveness street crimes had been recorded
of engagement (thumbs up). against 16,034 during the same period
AN OUT-OF-THE-BOX APPROACH
TO COMBATING DRUG ABUSE
programme which provided rehabilitation programmes with
methadone and clean injecting dedicated facilities, as this has also
equipment for people who use proven to be largely ineffective
drugs. Malaysia was successful in worldwide.
rapidly reducing the number of The Besut pilot project aimed
HIV infections in this population. to move drug users who had been
This is an example where when an detained by the police into the
evidence-based approach is used; treatment stream very rapidly, rather
the desired results are produced. than having them remain within
We should now move forward by the criminal justice system. We
Prof Dr. B. Vicknasingam, Director of the not only providing harm reduction got them into community-based
Centre for Drug Research at Universiti Sains services but to get people who use outpatient treatment programmes,
Malaysia.
drugs into treatment programmes Prof Vicknasingam explains. Our
The Besut drug rehabilitation and not continue to lock them treatment is non-punitive. Previously,
pilot project is an initiative which up, says Prof Dr. B. Vicknasingam, when treatment providers treat
uses a treatment-based public health Director of the Centre for Drug drug users, if they come up with a
approach to reform drug users in a Research at Universiti Sains Malaysia urine-positive test, the doctors will
new way to combat the crime more (USM), which leads the project under punish them. In contrast, the Besut
effectively. the Crime NKRA. trial assured the drug users that as
At the turn of the millennium, Prof Vicknasingam points out that long as they came for the treatment
the main driver of HIV infection in previous institutional rehabilitation sessions, they would not be
Malaysia was injecting drug use. models based on disciplining drug penalised even if they continued to
The Government realised that users were largely ineffective, test positive. As long as they came
they needed to address this issue further elaborating that Malaysia is for the sessions, we still have a point
and implement a harm reduction not alone in using institutionalised of engagement and the opportunity
REDUCING CRIME
to change them, Prof Vicknasingam wrong with this person and why Prof Vicknasingam highlights
adds. he resorted to drug use. We should that the majority of people currently
The Besut project used also understand that drug use is in prison are there for possession of
a combination of treatment a relapsing disorder where it will relatively small quantities of drugs
approaches such as methadone and take several attempts to finally quit used for personal consumption.
buprenorphine for heroin users and drugs. He further underscores this Many are repeat offenders, so
intensive counselling for those who point by providing an example of putting them in prison is not
use amphetamine-type stimulants, someone trying to stop smoking. only pointless, it costs Malaysian
or what are locally called pil kuda How many of them managed taxpayers quite a fair bit as well.
(horse pills) due to the belief that to quit smoking on the first We should channel these drug
those narcotics originate from horse attempt? Maybe only about 10% users into treatment programmes
tranquilisers. We measured two but we expect drug users to quit rather than put them in prison
parameters; one was compliance immediately. It is time that we start where no treatment is provided.
in terms of treatment session thinking out of the box to deal with Instead of temporarily putting away
attendance, and the second was the the drug problem. We have been the problem, our efforts should be
urinalysis tests for drugs. Out of the detaining drug users all these years concentrated on decreasing the
97 patients we have in Besut, over with not much success in terms supply of drugs by taking down the
80% are attending more than 75% of output. As long as we do not pushers and suppliers.
of their treatment sessions, which provide treatment for people who
is very encouraging for us. Indeed, use drugs they will continue to use
about 55% of them are beginning to them, as drugs are addictive. What
show negative urine results. For the we are doing in Besut is to provide
first three or four weeks, they were treatment for people who have been
still using drugs outside, but as the detained for using drugs and not
weeks went along, they began to for drug users who have committed
abstain. other crimes. They will still have to
The success of the Besut project face the criminal justice system if
model has gotten both the Kedah they commit a non-drug related
and Terengganu State Governments offence, lets be clear on that.
interested in replicating it across Two patients enrolled in the Besut
several districts. Prof Vicknasingam trial, Adam and Badrul (not their real
explains that the project itself names) had been involved with drugs
provides successfully-treated for only two to three months, having
patients with skills training. If you been pressured into it by their peers.
just provide treatment and leave For both, the Besut programme
them in the current environment, was their first drug rehabilitation
thats not going to be helpful either. programme. Adam had been
Prof Vicknasingam believes that directed there by the police, and he
upskilling the drug users can help has since improved and recovered.
decrease their demand for drugs Now drug-free and happier, he says
by not only occupying their time, his health has improved significantly
but giving them hope and better and his appetite has returned. He is
economic prospects. spending more time with his family
From his experience, Prof and at work, instead of loitering
Viknasingam believes that the vast around with friends which was
majority of drug users in Malaysia are what got him involved with drugs
a result of troubled beginnings, and in the first place. Meanwhile, Badrul
should not be penalised solely for was sent to join the programme by
seeking solace in drugs. If we look AADK because he no longer wants
at their dwelling, socio-economic to be involved with drug abuse. He
status, troubled family background, too, is currently recovering well.
then we can understand what went
REDUCING CRIME
ADDRESSING THE RAKYATS KEY
CONCERNS ON CRIME
different population. Foundation is now working on
Prior to the introduction of the training its members on the ground to
PCI, the perception towards law and learn what the problems are in each
order and its enforcers was very particular area. Housewives, school
bad, as Dato Kamarudin describes it. children, pensioners, members of
At the time, the statistics provided residents associations, neighbourhood
by the police were not necessarily community, and like-minded NGOs;
believed by the public, he recounts. they are good sources of information.
Perception is reality, and one of the The MCPF helped to develop the
Datuk Kamarudin Md Ali, Vice Chairman reasons the rakyat didnt believe PCI, with its four indicators of signals,
of Malaysian Crime Prevention
Foundation (MCPF).
the numbers given was the lack of my space, amplifiers and service,
engagement from the police. In order and discover how the people felt
As far as non-governmental to further study this matter, MCPF about them. Its up to us, the MCPF
organisations (NGOs) go, the Malaysian went down to the ground, visiting members, to explain to the rakyat that
Crime Prevention Foundation (MCPF) is various police stations throughout Rome was not built in a day, Dato
a fairly uniquely-placed one. Founded the nation, and conducting focus Wong expounds, highlighting that
in 1993, the MCPFs Chairman is a group interviews with representatives all segments of society are needed
serving Cabinet Minister appointed across all segments of the public. to prevent and reduce incidences of
by its patron the YAB Prime Minister, The work that the police have put crime.
while its Deputy Chairman is the ex into improving their visibility, and the As Datuk Kamarudin sees it, the
officio Inspector-General of Police. publics confidence in them, through Modern Policing and Omnipresence
As a result, MCPF works closely with increased engagement with the initiatives, also part of the CRI
law enforcement bodies to increase rakyat over the past year, has been NKRA, played a significant role in the
the awareness of crime prevention encouraging. Dato Kamarudin points improvements to the PCI figures over
amongst the rakyat, and to encourage out that the PCI has improved from 2016. We told the police that we have
the various sectors of Malaysian 2015s figure of 80% to 61% in 2016, to face the public and allow the public
society to play a more active role a reduction in the level of the fear of to question them directly regarding
in reducing crime in line with the crime by 19%. I have been engaging what they have done, as well as their
CRI NKRA, according to MCPF Vice with the residents associations ever other concerns, he says, adding that
Chairman Datuk Kamarudin Md. since I was a police officer back in MCPF roundtables held throughout
Ali. Were involved with student the early 2000s, and recently, when I the nation saw the participation of
programmes all the way through was talking to the Bangsar residents top police officials doing just that.
tertiary education, and we also involve associations, their complaints Dato Wong agrees, pointing out
ourselves with the rehabilitation of were not about street crime like that a number of police initiatives to
prisoners, he explains. pickpocketing; they were instead meet and greet with the communities
MCPF was involved in the complaining about double parking. at large are progressively inculcating
development of the Perception of That shows their shift of focus away and reinforcing the image of the
Crime Indicator (PCI), which, as from street crime. police as the rakyats friends and
MCPF EXCO Member Dato Wong The MCPF, too, has been playing protectors, thus reducing their fear of
Pui Lam puts it, is made up of three its part in community engagement. crime.
sub-indicators; one each for the rural, We are like an arm of conscience We want the rakyat to visit the
semi-rural, and urban populations. to tell the public that we are here to police stations not only to make
The most pronounced response help you; we are here to tell the police statements and reports, but simply
will be from the urban population, look here, this is the public reaction. to drop in and have a chat with the
because the demand is greater, he We interface between the two police on duty as friends and fellow
clarifies. The factors that influence parties, Dato Wong says, explaining members of the community.
the PCI numbers differ between each MCPFs work in further detail. The
REDUCING CRIME
Internship programme for automotive

skills training and certification of
prisoners at the Henry Gurney
Prisoners School (SHG) in Telok Mas,
Melaka. Through the partnership, the
training facility at SHG was upgraded,
while HINO Motors also provided one
engine for the trainees to work with.
Ten juvenile residents had
registered for the programme,
which included related courses on
workshop safety and audio systems
conducted by four trainers. HINO
Motors also provided skills upgrading
to the trainers prior to the start of the
programme.
In addition, under the Prisons
Departments certified skill training
programme, a total of 2,125 inmates
Police officers engaging with the public during a Talk to Us session under have completed certified skill training
Modern Policing initiative. under Sijil Kemahiran Malaysia (SKM-
SLDN), Sijil Kecekapan Kemahiran
(SKK-CIDB) and Program Pemanduan
A New Approach
large. Based on the correspondence Kenderaan Perdagangan (Metro). A
with volunteers of the drug pilot review of expansion of other skillsets
to Drug Offender
project, 65% of the volunteers have (i.e. working in call centres, textile
registered for treatment and 54% manufacturing and others) will be
Rehabilitation
of them have remained drug-free. undertaken next year.
On a national level, as at the end of
2016, 6,144, or 60%, of 10,192 People
Crime reduction does not end Under Supervision (Orang Kena
with capturing the perpetrators and
locking them away. In addressing the
Pengawasan/OKPs)rehabilitated
drug addicts who are aiming to
A total of 2,125 inmates
root causes of criminal behaviour i.e.
substance addiction, the CRI NKRA
remain addiction-free have stayed
clean for a minimum of one year,
have completed certified
has taken a holistic and not just a
punitive or deterrence approach.
against 37% in 2015.
skill training under Sijil
In the case of drug addiction
cases, the NKRA has taken some Leading Prisoners to Kemahiran Malaysia
innovative steps towards drug
treatment and rehabilitation. a Brighter Future (SKM-SLDN), Sijil
Initial steps have been taken to
decriminalise addicts, moving away Prison related initiatives under
Kecekapan Kemahiran
from the arrest, incarceration and
cold turkey methodology to one
this NKRA have focused on reducing
recidivism by equipping prisoners
(SKK-CIDB) and Program
that is health-based, involving the
community and providing an end-
with skills that will increase their
employability upon their release.
Pemanduan Kenderaan
to-end treatment programme.
This approach was piloted in the
During the year, the Malaysian Prisons
Department worked with heavy
Perdagangan (Metro).
district of Besut in Terengganu, vehicle manufacturer Syarikat HINO
creating an encouraging impact Motors Sales (M) Sdn. Bhd. (HINO
on the patients and community at Motors) on the Corporate Smart
REDUCING CRIME
Various agencies working together strengthening Boder Security.
MOVING FORWARD
Following this NKRAs success policies that are inclusive, robust and Fostering Greater Interagency
in reducing Index Crime since 2010, better able to address current issues. Cooperation, and Inculcating a
initiatives will move towards overall Border security is also becoming Culture which Emphasises Integrity
crime reduction. This is as the one of the top priorities of the CRI and Honour. Amongst the quick wins
Government adopts a more holistic NKRA. During the Border Security are establishing a one-stop inspection
approach to crime-fighting which Lab held in March 2016, which was centre, implementing a reward
not only takes into account crime attended by over 150 participants system for performing personnel and
statistics, but also on reducing the from over 20 Government agencies, 16 maintaining an accreditation standard
fear of crime and improving the big bucket issues and 82 sub-issues as well as setting up an interagency
feeling of safety among the public. In were identified in terms of policies joint patrol between PDRM and the
2017, the NKRA team intends to go to and processes, community outreach Malaysian Armed Forces. In 2017, we
the ground to addressing the specific and inter-agency cooperation; and see the implementation of the 6 quick
concerns the rakyat of Kuala Lumpur agency empowerment and integrity. win initiatives at two Immigration,
highlighted in the 2016 Perception of Following this, a border security Customs, Quarantine Security
Crime (PCI) survey. framework was developed with a Complexes (ICQS) located at Bukit
To this end, the CRI NKRA will vision of securing Malaysias land Kayu Hitam in Kedah and Rantau
continue to transform processes borders against illegal movements of Panjang in Kelantan.
and workflows, structures, and the people and goods. Anchored on this The overall target is to improve
workplace cultures of implementing vision, the lab identified 21 initiatives, and streamline lawful travel and trade
agencies to create a sustainable with six Quick Wins, to address the 16 at nine immigration, customs and
improvement in efficiency and significant issues. The initiatives are quarantine (ICQ) locations at the
effectiveness in law enforcement and clustered according to six focus areas; Northern Land Borders (Kedah, Perlis,
crime prevention. The CRI NKRA will Streamlining Border Processes and Kelantan, Perak) as well as strengthen
also work to replace crime-related Policies, Changing Border Community and secure the Northern Land
law enforcement policies that are Mindset and Culture, Improving Borders from any illegal movements
outdated, irrelevant, inadequate Physical Infrastructure, Manpower (porous entry and exit) of people and
or otherwise hinder progress and and Technology, Strengthening goods by the year 2020.
improvements with more appropriate Border Personnel Capabilities,
FIGHTING CORRUPTION
DATUK PAUL LOW SENG KUAN

Minister in the Prime Ministers
Department
The year 2016 proved to be an eventful year

in fighting corruption, both within the public and
the private sectors. In 2015, Malaysias standing in
Transparency Internationals Corruption Perception
Index (CPI) had dropped from 50 to 54; in 2016, our
ranking stood at 55th out of 176 countries. Regardless,
it is true that global media coverage has not done our
nation any favours when it comes to the international
communitys perception of the level of integrity in
Malaysia.
Corruption can be deeply rooted; not only in
Government agencies and corporate bodies, but within
our own society, given how many of our youth seem to
believe that corruption is acceptable. There is no silver
bullet that will magically resolve entrenched and
systemic issues. However, this NKRA aims to deliver
true transformation in the way financing of political
parties and campaigns is handled, regulated, and
reported. This is likely to be a game-changer, capable
of significantly improving the levels of integrity and
transparency within the political arena.
To this end, we tasked the National Consultative
Committee on Political Funding (NCCPF) on how best
to tackle this issue and have taken its recommendations
to the Cabinet. It is noteworthy that over the course
of 12 months, the Committee consulted and engaged
with a wide cross-section of stakeholders, including
Malaysian political parties whether in Government or
not, international experts and civil societies in order
to complete the proposal. The Committee had also
received written submissions from various parties on
the subject matter during the development period, so
Raising
as to more accurately represent the nations viewpoints.
Meanwhile, in combating corporate corruption,
the insertion of the Corporate Liability Provision into
Standards of
the MACC Act has the potential to be another massive
game-changer, though this has yet to become a
reality. Clearly, this is another area with its own set of
complications, but is a vital step that needs to be taken.
Integrity We are engaged in a long-term process to eradicate

corruption in our country, so that future generations
can grow up in a Malaysia based on integrity and
honesty.
FIGHTING CORRUPTION
OVERVIEW 96.6% of issues highlighted in Auditor
Generals Report 2014 Series 1-3 have
been successfully dealt with and
are used. Other recommendations
included the introduction
legislations to regulate and govern
of
The fight against corruption resolved within a year of being tabled political parties funds, especially
involves both the inculcation of in Parliament. This is a noteworthy during election campaign seasons.
transparency and accountability achievement and underscores In September 2016, the NCCPF
within the government machinery, as MACCs effectiveness in investigating announced 32 recommendations,
well as the upholding of integrity in these cases, as well as the NKRAs which encompasses three main areas:
corporate bodies and the community, commitment to clean governance. The implementation process of
especially amongst the youth. Corporate integrity is also a the reform
From a CPI score of 45 in 2009, priority for the NKRA. The insertion The need for the new law and its
this NKRA has seen it increase to 50 of a corporate liability provision into content
in 2015. In 2016, Malaysia achieved the MACC Act, which will empower Wider and longer-term issues
a score of 49. Overall, the NKRA the MACC to go after companies The recommendations made
achieved 79% of its KPIs in 2016. committing graft, is currently still a by the NCCPF address the basic
One main highlight in 2016 is that work in progress. systemic issues in establishing a
governance of political financing has fundamental governance structure
Transforming the
taken steps in the right direction. The to regulate political financing that is
National Consultative Committee currently missing.
Governance of
on Political Funding (NCCPF) was In October 2016, the Committees
formed by the Prime Minister in proposal was presented to the
Political Financing
August 2015 to come up with a Cabinet, which called for greater
constructive regulatory structure to transparency from political
resolve issues surrounding political parties through strict political
financing. In December 2016, the Key to the Fighting Corruption donation reporting and disclosure
Committee conducted various NKRA since its inception in 2009 has requirements. The proposal detailed
focused discussions with Malaysian been the reform of the governance of out recommendations in three key
political parties from across the political financing. This is an area that areas; namely, the introduction of the
political divide (BN component constantly receives public attention Political Donation and Expenditure
parties, Pakatan Harapan, PAS and and is critical if the NKRA is to be Act (PDEA), the addressing of
IKATAN) to gather feedback on its taken seriously by the rakyat. wider and longer term issues, and
proposal. The Committee will further In 2012, recommendations a heightened focus on effective
engage all key political parties prior were put forward towards the implementation.
to tabling its final proposal to the institutionalisation of clearer The proposed PDEA serves
Cabinet for approval, in order to guidelines and audit processes of as a suitable platform to create
incorporate additional feedback and political party accounts, increasing an effective system of political
concerns. Once approved, the bill of transparency in how the parties funds financing, covering the areas of
the proposed Act will be drafted and
brought to Parliament for debate.
In terms of fighting corruption in
the Government, 74.4% of corruption
cases have been disposed of within
a year of the case being registered
In December 2016, the National Consultative
in court. The Malaysian Anti-
Corruption Commission (MACC) has
Committee on Political Funding conducted
fully undertaken to see this through
efficiently. The establishment of 14
various focused discussions with Malaysian
special corruption courts (one in
each State and Federal Territory) has
political parties from across the political
allowed the Malaysian judiciary to
hear and adjudicate on the cases in a
divide.
shorter time frame. Additionally, over
FIGHTING CORRUPTION
Eliminating
political donation administration,
political financing expenditure and
disclosure, state funding of political
activities, and the relationship
The proposed Opportunities for Graft
between politics and business.
It will also complement existing
Political Donation and in the Private Sector
laws, including the Malaysian Anti-
Corruption Commission Act 2009,
Expenditure Act serves The Corporate Identity Pledge
Election Commission Act, Election
Offences Act, Registrar of Societies
as a suitable platform (CIP) and the Corporate Integrity
Systems Malaysia (CISM) framework
Act, and Anti-Money Laundering and
Anti-Terrorism Financing Act 2001.
to create an effective have been taken up by many private
companies interested in weeding
Further, the Committee aimed
to criminalise the discrimination or
system of political out corrupt practices within their
organisations. While benchmarking
victimisation of political party donors
within the public and private sectors,
financing. exercise and stakeholder
engagements have been conducted,
and allow redress for unfairly treated incorporating the corporate liability
donors. Government contracting provision (CLP) into the MACC Act
processes will also be reformed to is still in progress, with the draft
minimise the possibility of political effect or name & shame, a gradual having been completed and awaiting
favours. These wider, longer-term but rapid timeline, and applying submission to the Attorney Generals
issues need to be addressed in six guiding principles in designing Chamber (AGC).
order to demonstrate a greater detailed rules, regulations and steps Up to 800 companies both large
commitment to inculcate integrity in reforming political financing in and small have signed the CIP, and
into the political system. Malaysia; namely, the supremacy of some of them have started with
In order to effectively implement the rules of law; enhancement of implementation measures. However, a
the recommended procedures, civic participation; protection of civil significant fraction of CIP signatories
the Committee proposes rights; transparency; accountability has not yet implemented concrete
grandfathering, or giving amnesty, to and integrity; and healthy political prevention measures against
previous deeds i.e. no retrospective competition. corruption, either treating the CIP as
Consultation on the JKNMPP recommendations with the Barisan Nasional component parties on 5 December 2016.
FIGHTING CORRUPTION
Corporate Integrity Pledge (CIP) signatories who have undergone a workshop on the 10 Anti-Corruption Initiatives receiving
Certificate of Appreciation from the Minister during the CIP Conference on 6th October 2016.
more of an agreement-in-principle, all organisations and organisational assessments, implementation of

or due to lack of knowledge on how units, regardless of type, size and financial and commercial controls,
to move from pledge to practice. nature of activity, and whether in and putting in place reporting and
MACC has conducted a number of the public, private or not-for-profit investigation procedures.
workshops for CIP signatories to sectors.
assist them with implementation. This new standard is also all-
NGOs such as Transparency encompassing when it comes to
International have also been working
directly with the private sector,
addressing the issues of bribery,
whether it be in the public, private
Standards Malaysia
organising programmes on improving
governance of companies.
or not-for-profit sectors, whether it
is initiated by the organisation, its
and MACC are working
In 2016, along with 19 other
national delegations across five
personnel or business associates
acting on its behalf or for its benefit, together to adapt ISO
continents, Malaysia was involved in and whether it is direct or indirect
an initiative by the British Standards bribery (e.g. a bribe offered or 37001 for the nation.
Institution (BSI Group) to create and accepted through or by a third party).
establish ISO 37001, an international Currently, Standards Malaysia
Anti-Bribery Management System and MACC are working together to
Standard designed to help adapt ISO 37001 for the nation. This
organisations implement an anti- will involve the adoption of anti-
bribery management system. ISO corruption policies, appointment
37001 requirements are generic of a party to monitor compliance
and intended to be applicable to with these policies, training and risk
FIGHTING CORRUPTION
MRCB WALKS THE TALK IN INTEGRITY

to it and were following through, he
expounds. According to Samarasam,
MRCB Group Managing Director
Tan Sri Mohamad Salim Fateh Din
has set the tone for the rest of the
company by showing that he is also
subject to the same processes, rules
and regulations. He has instructed
me on several occasions that I
should immediately let him know if,
for whatever reason, anything hes
planning to do is against our integrity
processes, and he will then not go
ahead with it, Samarasam recounts.
The CIP has helped surface
Malaysian Resources Corporation brought to its attention, no matter MRCB as a company committed to
Berhad (MRCB), a leading urban how minor. His department maintains transparent and open dealings, as
property and construction company, close contact with the Malaysian Anti- part of a national initiative to change
had already put anti-corruption Corruption Commission (MACC), and Malaysian business. The MD calls me
processes in place long prior has dismissed staff for the slightest in sometimes to manage our vendors,
to its signing of the Corporate breach in integrity. because sometimes theyre not aware
Integrity Pledge (CIP), including a In signing the voluntary CIP, of our policies, Samarasam says. He
comprehensive policy called the MRCB has committed itself morally believes that the integrity landscape
Prevention of Fraud Manual and and ethically to its principles, and will see a further shift with the passing
a whistleblowing policy. That has has unilaterally declared that it of the Corporate Liability Provision.
helped guide management and will not be a party to any acts of
employees maintain very high
standards of conduct and integrity
corruption. Were very serious about
it; we will work towards creating
Not only does MRCB
in dealing with all our vendors and
contractors, Samarasam Krishnan,
a business environment that is
free from corruption, and we will
expect its vendors to
General Manager of Integrity & uphold anti-corruption principles uphold integrity when
Discipline at MRCB, says. in all our dealings with our business
The CIP, which MRCB signed to partners and with the Government, dealing with it, but its
indicate that it stood for transparency
and integrity, did have an impact
Samarasam explains. Not only does
MRCB expect its vendors to uphold anti-corruption policies
as MRCB continued to fine-tune its
integrity processes. For instance,
integrity when dealing with it, but
its anti-corruption policies are also
are also binding on
from an all gifts must be declared
policy, Samarasam points out that
binding on the company when
dealing with others as a contractor or
the company when
in 2016, MRCB revised it to a no
gifts policy, either from vendors to
vendor itself, especially Government
officials and others in power.
dealing with others
MRCB representatives, or from staff While, in his opinion, the as a contractor or
and management to other parties. construction industry is vulnerable to
Except things like flowers for people bad practices simply due to its scale vendor itself, especially
in hospital, Samarasam clarifies. He
believes that small things like these
of operations, Samarasam has not yet
come across any cases of large-scale Government officials
really hammered down the point
for the employees, especially as his
corruption in his tenure at MRCB.
We put these processes in place as a
and others in power.
department investigates all cases matter of principle; were committed
FIGHTING CORRUPTION
Dr Mohd Nizam bin Mohd Ali, Senior Director and Chief Coordinator Centre for Knowledge and Consultancy on Integrity in
Institut Integriti Malaysia (IIM), speaking to PDRM during the Global Integrity Leadership Course 2016 organised by IIM along
with the Institute of Malaysian and International Studies (IKMAS) of the National University of Malaysia (UKM) and Integrity
MOVING FORWARD
The implementation of political will be another priority under the
financing regulations and guidelines is NKRA for 2017.
the top priority for the NKRA in 2017, Although challenging, the NKRAs
despite some political opposition ultimate aim is to rebuild the rakyats
to the proposal from NCCPF, which confidence and trust in the nations
has yet to be debated in Parliament. political institutions, and to ensure
It is essential for all political parties, that the youth are involved in the
to embrace and support the upholding of honesty and integrity in
Committees recommendations, all walks of life from the earliest ages.
and to advocate for immediate For 2017, various seminars will
implementation of this initiative. This be conducted to create awareness
is a necessity, if we are all serious on the ISO 37001 anti-bribery
about strengthening the countrys management system which will
integrity and earn the rakyats trust in also help companies prepare for
the nations governance. implementation of the proposed
Getting private sector buy-in corporate liability provision, another
for the insertion of the Corporate initiative currently in the pipeline
Liability Provision into the MACC Act under this NKRA.
DATO SERI DR. AHMAD

ZAHID HAMIDI
Deputy Prime Minister of Malaysia
In recent years, external factors such as

commodity prices and currency fluctuation have
affected cost of productivity which has led to
increase in cost of living.
While household incomes have been on the rise
and have driven strong private consumption, the
Government recognises that some quarters may
feel the pinch more than others when prices rise,
even though Malaysias inflation has not reached
alarming levels since the introduction of the NTP.
The Government has provided on a needs basis
immediate relief to those who are hit hardest by the
rising cost of living, in particular, the bottom 40% of
income earners (B40).
Bantuan Rakyat 1Malaysia (BR1M) has been
the flagship of our initiatives, and its impact over
the years has been significant. Since 2012, a total
of RM19.33 billion has been disbursed. In 2016
alone, RM5.36 billion was disbursed to 7.28 million
households.
BR1M is supplemented by other COL NKRA
programmes, which are now directly under the
purview of the Office of the Deputy Prime Minister.
Through these programmes, students who come
from lower-income families, as well as the urban
poor and others from remote and rural areas,
have gained access to affordable amenities, basic
medical treatments and other public amenities.
TOUCHING
The provision of quality and affordable houses
to low- and middle-income earners also remains a
priority. The MyDeposit programme was launched
in April 2016 to assist eligible first-time house
LIVES THROUGH
buyers. In addition, priority has been given to those
earning less than RM2,500 a month to own Project
Perumahan Rakyat (PPR) houses or flats.
TARGETED
The Government is fully committed to providing
aid to those who need it the most and to ensure all
Malaysians enjoy a sustainable standard of living.
ASSISTANCE

OVERVIEW
Since the introduction of the
The Government has spent over RM23.5 billion
COL NKRA in 2011, the Government
has spent over RM23.5 billion on on various initiatives since 2011 designed to
various initiatives designed to help
relieve the financial challenges faced help relieve the financial challenges faced by
by the rakyat, especially the B40,
through both immediate and short- the rakyat, especially the B40, through both
term means. There are two main
approaches that the COL NKRA immediate and short-term means.
initiatives have taken: (i) targeted
direct monetary assistance through
programmes such as BR1M (Bantuan
Rakyat 1Malaysia), BB1M (Baucar Buku
1Malaysia) and BKAP1M (Bantuan Throughout the year, the continues to ensure a focused
Khas Awal Persekolahan 1Malaysia); Government collaborated closely approach to addressing cost of living
and (ii) increased availability and with the private sector and non- issues. The panel also incorporated
accessibility to public amenities such governmental organisations (NGOs) perspectives from relevant NGOs and
as K1M (Klinik 1Malaysia), KR1M (Kedai in reaching out to those in need. A consumers associations in coming
Rakyat 1Malaysia), KFR1M (Kafe high-level panel comprising of six up with further measures to help the
Rakyat 1Malaysia) and KK1M (Kedai relevant Ministries was also set up rakyat.
Kain Rakyat 1Malaysia). in January 2016 as the Government
Photo credit: Harian Metro
Customers at Kedai Rakyat 1Malaysia (KR1M) can enjoy staple products such as rice, sugar and cooking oil, at stable prices.
Fast Relief for Expanding Access Since 2012, BB1M has assisted 6.4
Those in Need of Basic Goods

million tertiary students, including
Form Six students, in the purchase
of course textbooks through book
The BR1M initiative seeks to Other COL NKRA initiatives target vouchers of RM250 given to each
help Malaysian households earning specific groups of households and student. BB1M is slated to be replaced
less than RM4,000 per month by their distinct needs, such as parents by the Kad Debit Pelajar (Student
providing direct cash assistance with school-going children and low- Debit Card) programme in 2017.
to help them purchase basic income households. These initiatives The debit card will carry a value of
necessities. In 2016, 7.28 million comprise both direct cash assistance RM250, which can then be used to
recipients received between RM400 as well as Government and private- pay for books, stationery, computer
and RM1,050, depending on their sector programmes offering more accessories and Internet access.
level of household income and needs, affordable goods and services, The new programme is aimed at
amounting to a total disbursement especially in remote and rural areas. addressing systemic issues that BB1M
of RM5.36 billion, achieving 100% of BKAP1M and BB1M are targeted at has faced since its inception, including
its KPI. helping households manage expenses forged and counterfeit vouchers,
This amount has been increased on education. BKAP1M commenced students selling the vouchers to third
from previous years to help low- from 2013 until 2015 and was given to parties for petty cash, redemption of
income households cope with living all students from Year One to Form more than five vouchers by individual
costs, which tend to rise gradually Five. In 2016 the scope of distribution students, theft and loss of vouchers
over time. While the number of of BKAP1M was narrowed down to as well as unauthorised redemptions
applicants in 2016 declined from the focus on students from Year One of the vouchers for goods other than
previous year, the Government has to Form Five from households that books.
allocated RM6.8 billion for BR1M in earn less than RM3,000 per month The B40 and other lower-income
2017, which will be delivered to an to ensure the aid is channelled to the communities, such as the urban poor,
estimated 7 million households. rightful parties. However, despite its also benefited from the COL NKRA
In 2017, BR1M cash transfers to success in reducing parents burdens, initiatives designed to expand their
eligible recipients will be increased BKAP1M will be discontinued in 2017 access to essential basic services and
as per Table 1: following rationalisation exercises public amenities. These include K1M,
carried out in Budget 2017. KR1M, KFR1M, and KK1M, which allow
the low-income segment to purchase
groceries, food, medical services and
fabrics at affordable prices.
179 KR1M stores nationwide stock
a variety of both premium-branded
grocery goods as well as 234 types
of Produk Rakyat 1Malaysia goods,
which are also available in 569 non-
KR1M stores. Other essential goods
are also sold at least 15% cheaper than
similar premium brands. Of the 185
KR1M existing in 2015, six have since
closed down; two in Malacca and one
TABLE 1: BR1M Eligibility Criteria & Cash Handout Amounts each in Kedah, Perak, Pahang and
Sarawak, with no new stores taking
their place. This was in part due to
budget rationalisation, as well as the
In 2016, 7.28 million BR1M recipients received inability to secure strategic business
locations at a reasonable cost in terms
between RM400 and RM1,050. of rental, logistics and infrastructure.

Nonetheless, RM10 million has been
allocated for KR1M for 2017, which will

PROVIDING THE RAKYAT WITH ACCESS TO
AFFORDABLE HEALTHCARE
human resource requirements for
optimal operation of the clinics.
In order to keep operational
costs low for these clinics, MoH
advocates resource sharing with the
main health clinic (Klinik Kesihatan
Induk) which is also responsible
for overseeing the K1M, Dr Hayati
explains.
Furthermore, to ensure the clinics
are adequately staffed to cater to
its clients, MoH has implemented
an extensive redeployment and
redistribution exercise. With K1M
With an increasing number of patients frequenting K1M, several K1M have been
operating beyond the normal 8am-
upgraded to larger and better facilites. K1M PPR Muhibbah is one of them; it
is now operating from Muhibbah Community Centre which was built for this to-5pm working hours, the Ministry
purpose, by DBKL. also came up with flexible working
shifts that reduced the long working
Since its establishment in 2010, low-income populations. Since its hours at K1M, creating a more
Klinik 1Malaysia (K1M) has seen a inception in 2010, we have received conducive environment for the staff.
steady increase in client treatment multiple feedback from the masses. In future, the Ministry is planning
from 1.23 million to 6.47 million in The rakyat has high expectation to improve the quality as well of
2016. Having started with 53 clinics from services at K1M and they are scope of services provided at K1M.
nationwide, the clinics have grown to generally satisfied since the new K1M These would include providing
360 as at the end of 2016, providing is in their neighborhood and close continuation of treatment for
access to healthcare from as low as to their home. They need not travel stable Chronic Non-Communicable
just RM1, targeting the low-income far to seek medical attention, says Diseases (NCD), especially
groups who may face constraints in Dr Hayati Mohd Rodzi, the Director hypertension and diabetes. We are
receiving basic healthcare due to the of the Ministry of Healths (MoH) also posting Medical Officers at K1M
higher costs at traditional clinics. Family Health Development Division. and as of 2016 there are already 100
The K1M are especially beneficial The Division is responsible for the K1M with Medical Officers, mainly
as their locations are concentrated planning, budgeting for K1M, as in the states of Selangor, Kelantan,
in urban centres with significant well as advising the Ministry on the Sabah and Sarawak, says Dr Hayati.
go towards building 25 more KR1M learning institutes (UIAM Kuantan, 356 K1M clinics have been set up across
stores in areas currently unserved Politeknik Sultan Ahmad Shah, Kolej Malaysia, charging a nominal fee of
by the stores. A further 50 stores Matrikulasi Pahang, and Kolej Poly- RM1 per visit, while senior citizens
are planned to be built in 2018 and Tech MARA Kuantan), as well as are fee-exempted. K1M is targeted at
2019, in line with the Governments Kompleks Teruntum in Kuantan. KK1M rakyat living in less developed areas,
aspiration of having at least one KR1M is yet another initiative fully run by the as well as the urban poor. Aside from
store in each parliamentary district. private sector, aiming to provide cost- outpatient treatment, health services
Not all the COL NKRA initiatives effective fabrics to B40 communities. provided at K1M include minor
are Government-led. KFR1M is a There are currently 30 stores across surgeries, women- and children-
Pahang private-sector initiative to Malaysia. centric services, stitching, wound
offer a cost-effective menu, currently In an effort to provide the rakyat cleaning and dressings, as well as
available at four public higher with access to affordable healthcare, treatment for chronic diseases such
of the housing development sector

in Malaysia. The Government is
committed to assist the rakyat in
coping with the rising cost of living
and has introduced several initiatives
that has truly impacted the rakyat,
one of them being the drafting of
the National Housing Policy (Dasar
Perumahan Negara - DRN).
On 6 April 2016, parallel to the
National Housing Policy, KKBPKT
launched the MyDeposit scheme
to assist middle income individuals
and households to own their dream
homes. The scheme is offered to
One of the high-frequented K1M in the country. Conveniently located at the
all Malaysians above the age of
commercial area of Taman Masai, it also serves the surrounding community of
Pasir Gudang. 21, earning between RM3,000 to
RM10,000. To date, 2,776 Malaysians
have benefitted from this project.
as high blood pressure and diabetes. the treatment and management of Another significant initiative by
Since 2010, 26,744,887 visits have chronic diseases in more K1M clinics the Government to provide basic
been made to K1M clinics. In 2016, 20 across the country. housing to those in need is the
new K1M clinics out of the 33 targeted Projek Perumahan Rakyat (PPR).
Providing a Home
for the year have begun operations. The initiative is focused on relocating
This has led to a total of 6.47 million squatters and fulfilling the need
for All
visits to K1M clinics, an increase of for proper housing for low-income
6.1% from 2015s 6.1 million visits. households. There are two categories
The expansion of the K1M of PPR houses; PPR Dimiliki and PPR
programme in 2016 was however In the effort to provide quality, Disewa. For PPR Dimiliki, low-cost
hampered by staffing constraints, as comfortable and affordable housing terrace houses and semi-Ds are built
experienced across Malaysias public for the rakyat, the Government and sold at a subsidised price ranging
healthcare industry. Additionally, the established the National Housing between RM30,000 to RM35,000,
programme has been unable to secure Department (Jabatan Perumahan while for PPR Disewa, a minimal rent
locations with reasonable rental rates Negara - JPN) under the Ministry of RM124 is imposed upon residents.
for the new clinics. However, the of Urban Wellbeing, Housing and All houses built under both PPR
Government will ensure that all K1M Local Government (Kemeterian categories are required to meet
are appropriately staffed while also Kesejahteraan Bandar, Perumahan certain specifications of planning
expanding the healthcare services dan Kerajaan Tempatan - KKBPKT) to and design of low cost houses that
available, especially those relating to manage the quality and organisation are set in the Standard Perumahan
Kebangsaan Bagi Perumahan Kos
Rendah Rumah Pangsa (CIS2). Each
PPR unit is at least 700 square feet,
In 2016, 20 new K1M clinics out of the 33 targeted comprising of three bedrooms, a living
room, kitchen and two bathrooms.
for the year have begun operations. This has led

Within the PPR vicinity, residents
of PPRs enjoy basic amenities such
as a community hall, praying area,
to a total of 6.47 million visits to K1M clinics, an business area, pre-schools, OKU
facilities, playground and recreational
increase of 6.1% from 2015s 6.1 million visits. area, including waste management.

K1M is run by trained paramedics and supported by a whole team of dedicated staffs.
MOVING FORWARD In 2016, changes in the global In standardising the prices of

economic environment brought controlled essential goods across
upon challenges not only to the the country, the Government will
countrys economic activities but open more and upgrade existing
to the rakyat. The Government will KR1M outlets. The mobile version
always continue to strive to do of KR1M is also being introduced
its utmost best to ensure to carry in rural/remote areas, providing
out initiatives to help the rakyat in the rakyat with more options for
coping with the rising cost of living. affordable products.
While the public and private The initiatives by the Government
sector have adapted to the under this NKRA is widespread, in
implementation of GST, and much which all basic necessities, such as
awareness has been created on food, education, medical facilities
how the GST will help sustain the and housing are accounted for and
governance and development prioritised in allocation of funds and
of Malaysia, the Government drafting of policies. As such, the
acknowledges that attention still Government remains committed
needs to be given to many areas in ensuring that all Malaysians will
of social welfare to ensure the benefit from effective governance
wellbeing of the rakyat. and inclusive provisions of assistance.
Improving Rural Development
DATO SRI ISMAIL

SABRI BIN YAAKOB
Minister Of Rural And Regional
Development
The Improving Rural Development NKRA has

delivered deep and impactful change to our rural
communities, ensuring that even those in the
most remote areas are not left out of our national
transformation programme.
As a people-centric initiative, this NKRA has
seen over 6.2 million of our rural folk benefit
from rural development initiatives in the five-year
period of 2010 to 2016, with new and upgraded
roads, access to clean water and electricity
and housing for the rural poor helping to uplift
some of the more vulnerable groups among our
population. With these basic amenities, rural
communities will be opened up to a world of new
opportunities, services and linkages as never
before.
At the same time, the Government has put in
place initiatives to help increase the income of
rural folk, which will further help modernise the
communities and ensure the sustainability of rural
areas, which are usually home to the rich culture
and heritage which Malaysia is renowned for.
While rural development initiatives are
not without its challenges, mainly tied to land
acquisition issues, I am pleased with the results
delivered by this NKRA. In this respect, the civil
service stakeholders have been instrumental in
ensuring projects are implemented efficiently
and effectively, ensuring far-reaching impacts.
As the civil service has clearly demonstrated
its ability to take the lead in all aspects of
this NKRA, in May 2016 this NKRA was fully
ENSURING
transferred to the Ministry of Rural and Regional
Development. With the stellar results achieved
through this NKRA thus far, and the capacity
INCLUSIVENESS IN
and capability demonstrated by the Ministry
and our other stakeholders in implementing this
NKRA, I am confident we will be able to continue
our systematic and effective delivery of rural
TRANSFORMATION development to ensure the Government achieves

its goal of national transformation for all.

OVERVIEW
With inclusiveness forming a key
driver of the NTP, the Improving
Rural Development NKRA represents
a vital component to ensuring
that the initiatives of the national
transformation benefit all Malaysians.
Activities under this NKRA are
two-pronged: first, to ensure all
Malaysians, especially those in rural
areas, receive access to the basic
amenities that allow them to go
about their daily lives; and second, Road building in progress
to achieve a sustainable standard
of living through the provision of
economic opportunities. These are
undertaken by building and restoring
rural basic infrastructure as well as From 2010 to 2016, the Government has delivered
through the 21st Century Village
programme.
These initiatives in totality are
6,041.7 km in new rural roads and provided road
designed to enhance socioeconomic
balance in the country, in tandem
maintenance for 2,378.5 km of roads.
with Malaysias development into a
high-income nation. It also allows
all Malaysians to participate in rural areas, these activities aim to immediate and tremendous impact
opportunities created by the national increase access of rural folk to services on the rural people. Each project
transformation and that its impact such as education and healthcare, as was completed within one month.
is felt in all corners of the nation. In well as connectivity to the nearest In addition to creating impact for
this way, the NKRA contributes to the towns to enable their participation in the public, the construction of roads
Governments wider effort to ensure commercial and economic activities. transformed the economic profile of
no one is left behind as the country From 2010 to 2016, the villages, allowing rural folk to wider
transforms into a high-income nation Government has delivered 6,041.7 km opportunities. Taking agriculture
by 2020. in new rural roads and provided road as an example, rural folk are now
maintenance for 2,378.5 km of roads. able to venture into retail activities
Basic Amenities
Additionally, 350,094 houses have (related to agriculture) with the newly
gained access to clean water, while established road networks.
Provide Access to
another 153,821 now enjoy connection In terms of connection to
to electricity. Furthermore, 94,604 water services, the Ministry also
Opportunities
houses have been built and restored overachieved its target of providing
for the rural poor. In total, these 3,000 houses with access to clean
activities have benefited more than water by achieving connection to
Since 2010, initiatives under the 6.2 million people living in rural areas. 4,429 houses. This followed the close
NKRA have focused on delivering For 2016 alone, 755.42 km of monitoring and supervision by the
a better standard of living to rural new roads were built, against the Ministry, State Water Authorities and
Malaysians with the provision of target of 601.5 km for the year. This project consultants, ensuring physical
rural roads, access to clean water was enabled through an additional progress of the projects stayed on
and electricity, as well as housing. budget of RM74 million over the pre- track; while any issues were promptly
In addition to narrowing the gap in allocated budget of RM284 million for reported to the relevant local
development between urban and the Projek Jalan Kampung due to its authorities for action. Furthermore,
rural economic sector through co-

operative platforms. This is undertaken
through economic projects proposed
by the villagers themselves, based
on their expertise and focusing on
sustainable projects which would also
generate income quickly.
Since 2010, the NKRA has
developed Desa Lestari in 73 villages.
During the year, the Desa Lestari
project achieved 100% of its targeted
20 villages, which was achieved as
a result of close cooperation and
affiliation between Ministries, State
Ulu Yam Melon Garden under Rural Business Challenge. agencies and villages.
Another initiative under the 21st
Century Village programme is the
the State Water Authorities also took land acquisition, changes in project Rural Business Challenge (RBC)
the initiative to conduct campaigns location and lack of data available to which encourages entrepreneurship
to promote application for treated identify suitable villages for projects. among rural youth. Since 2010, 85%
water among villagers. Nonetheless, these initiatives of RBC winners have achieved an
The Ministrys housing assistance continue to impact the lives of rural increase in income by more than 30%.
initiative to build and restore houses people. In addition to improving For 2016 alone, the initiative recorded
for the rural poor also exceeded its villagers basic sanitation through increased income among 19 of the 23
target for the year, building 3,233 new connection to clean water, electricity winners of RBC 2014, with the winners
houses and repairing 8,900 houses connectivity impacts villagers by increasing their income by 30%.
against the target of 3,055 and 8,168, helping to reduce their financial Other achievements recorded
respectively. The initiative also saw burdens from the use of costly diesel through the RBC in 2016 include the
savings from the cost of repairs, generators. It also improves the quality completion of physical infrastructure
which enabled the implementation of of schools, encouraging teachers for the business ventures on time.
more projects. to stay in the local community and Winners were also encouraged
As part of the Ministrys effort to increase their involvement in school to participate in marketing and
develop quality and reliable electricity activities. Furthermore, street lighting promotions programmes for their
supply to rural areas, 9,921 houses were promotes better safety and security. products, such as through Karnival
connected to electricity in 2016, above Usahawan Desa, Halal Fiesta Malaysia
Empowering Rural
the targeted 9,875 houses. To ensure and the Malaysia Agriculture,
the comprehensive electrification of Horticulture and Agrotourism
Communities
rural areas, the Ministry leveraged two (MAHA) festival.
approaches. The first is by extending Some challenges were indeed
electricity supply from existing faced in both the Desa Lestari and RBC
gridlines provided by the National Further to efforts to improve the initiatives, mainly: (i) the development
and State utilities; while for off-grid standard of living and access to rural of human capital, (ii) ensuring
areas such as those in mountainous basic infrastructure for villages in the competitiveness of products
and island regions, the Ministry Malaysias remote areas, the Ministrys (iii) as well as improving project
utilised alternative systems such as efforts since 2012 have also focused on planning. Despite this, the relentless
solar, medium-sized generator sets enhancing the sustainability of villages involvement and cooperation of state
and solar hybrid power. Completed and its peoples livelihoods. This has agencies, together with local councils
projects are then handed over to been achieved through economic in the implementation of projects,
the State Electricity Authority for empowerment programmes such as as well as close monitoring and
operation and maintenance. the 21st Century Village programme, supervision by the Ministry ensured
These achievements were spearheaded by the Desa Lestari the success of these projects.
recorded despite issues surrounding initiative which aims to develop the

The provision of basic utilities was a core focus of the ministry in 2016.
MOVING FORWARD
The Ministry will continue to been identified for repair/restoration
undertake the people-centric projects to ensure a wider impact. House
under the NKRA, focusing on short- repairs by village councils are also
term projects which will create direct in the pipeline in an effort to create
impacts for rural folk. The flagship higher value for money, with cost
road construction and rural poor savings to be channelled towards
housing programmes will be ongoing aiding more beneficiaries. For new
with higher budget allocation for houses, improvements will be made
roads in Sabah and Sarawak, while to floor plans, size and design of the
85% of the overall target of projects houses to offer its residents more
to be implemented for the rural comfortable homes.
housing assistance programme,
which is segmented into building new
houses and repair/restoration have
EDUCATION
DATO SERI
MAHDZIR KHALID
Minister of Education
The Education initiatives under the

NTP have been instrumental in ensuring
a holistic approach to the development
of both public and private education in
Malaysia. This is in line with our goal to
develop a rich pool of talent to drive our
high-income aspirations.
Entering into Wave 2 of the Malaysian
Education Blueprint 2013-2025 (MEB),
the foundation, set by the NTP and
Wave 1 of the MEB allows the Ministry
to accelerate improvement towards
greater transformation.
Malaysia also supports United
Nations Sustainable Development Goals
(2016-2030) to ensure inclusive and
equitable quality education and promote
lifelong learning for all. In line with this
goal, the Education NKRA and MEB
have focused on the implementation
of priority initiatives to transform the
education system to develop holistic
individuals.
Initiatives started under the NTP
since 2010 are still in place and have
become permanent activities carried
out by the Ministry. This substantiates
the effectiveness of these initiatives
and that transformation in education
STRENGTHENING
is possible with the right support and
discipline.
On top of accelerating improvements
made during Wave 1, Wave 2 of the MEB
THE FOUNDATION will also focus on introducing structural

changes. These are bold initiatives
include transforming teacher training
OF A HIGH-INCOME
institutions (IPG) to be at par with
higher learning institutions, increasing
level of higher order thinking skills
NATION
(HOTS) in students learning process
and also organisational restructuring of
the Ministry to enhance its capacity and
capabilities in delivery.
EDUCATION
Under the Education NKEA, the private sector unique marketing campaigns in targeted countries.
remains key in contributing to quality and accessible It is thus vital to leverage on the nations education
early childhood care and education. The Ministry reputation which is soaring upwards.
has continued supporting the private sector while The higher education system aims to produce
challenging the industry to improve its quality. graduates that are learned and values-driven;
After much deliberation and engagement with professionals, researchers, educators, entrepreneurs,
relevant government agencies and stakeholders, and innovators who have an international outlook
the Government has approved and announced a and can propel Malaysias development forward.
new qualification minimum of a diploma in Early In relation to that, the Education NKEA seeks not
Childhood Care & Education (ECCE) for pre-school only to create a vibrant education sector but also to
teachers by 2020. While this was not an easy ensure that Malaysians exiting the education system
decision to make, it is in the interest of our children will be marketable and employable. To this end, the
that ECCE educators are qualified while raising the discipline cluster Entry Point Projects (EPPs) have
bar for industry players. made commendable progress towards improving
In the future, I hope the qualification and criteria the quality of the system, the graduates, and in
for childcare providers will also be raised as it is enhancing our national talent input. The discipline
critical to support child development from an early clusters also act as enablers for other key economic
age to prepare them for lifelong learning. Providing sectors in Malaysia in developing specific expertise
quality education in a childs formative years also and driving growth of the sectors.
has the capacity to pre-emptively begin closing the
educational achievement gap between low and high-
income students before formal schooling begins.
I am confident that with these comprehensive
measures in place, Malaysias education system
is becoming fertile ground for the development
of world-class, wholesome individuals who can
command high incomes and excel in the face of a
globalised, competitive economy.
DATO SERI HAJI

IDRIS JUSOH
Minister of Higher Education
Malaysia is fast becoming the choice destination

for international students seeking higher education.
With 172,886 international students in 2016, we are
on track to achieve our goal of 200,000 international
students by 2020 as laid out in the Malaysian
Education Blueprint 2015-2025 (Higher Education).
With 10 foreign branch campuses in the country from
the United Kingdom, Australia, and China (including
those ranked within the top 100 in the world),
Malaysia is geared towards becoming the leading
education hub in the region. The focus now will be
on enhancing the countrys education branding with
EDUCATION
Efforts under Discipline Clusters of Education NKEA have resulted in producing quality
graduates that can meet the needs of the nation.
OVERVIEW to the secondary school level to

cultivate specific skills and capabilities
which enable the creation of highly
private preschool enrolment rate.
Malaysia has also been successful
in attracting the establishment of
Education initiatives under the skilled human capital. international schools with a current
NTP aim first and foremost to The Education NKEA, meanwhile, count of 116 international schools
improve student outcomes to is geared towards private education against a target of 87 by 2020.
develop intelligent, well-rounded services to not only offer world-class However, more effort needs to be
Malaysians who can excel amid fierce education to Malaysians to nurture taken to increase enrolment into
competition for talent, both locally a talent pool which can command these schools to meet the 75,000
and globally within the context of high incomes, but also position student target. International schools
a high-income nation. At the same Malaysia as a global education hub. were advised to market themselves
time, the education sector has been At the same time, the development by establishing unique selling
identified as an engine of economic of the Education NKEA through the propositions or adjusting their fee
growth, presenting opportunities for establishment of new education structure to encourage additional
private investment and education institutions and expansion programme enrolments.
exports. offerings and services also contribute Currently, the Ministry of
These initiatives are delivered to the national aspiration in terms of Education (MoE) is reviewing the
through the Education NKRA and the jobs, GNI and investment in Malaysia. approval criteria in approving new
Education NKEA. The NKRA focuses Within the K-12 education space, international school licences to
on raising standards of the public with the announcement of the ensure that the quality of education is
education system by strengthening minimum qualification requirement not compromised in the setting up of
its fundamentals through holistic for preschool teachers that will be international schools.
reforms. Efforts are cascaded through effective in 2020, parents will be In the higher education space,
critical education touchpoints such confident to send their children to continuous dialogues and discussions
as policy, teaching standards and preschools to ensure that they get the have been held with private higher
students themselves, encompassing right education fundamentals to excel education institutions, national
education in the early years through in school, thus resulting to a higher education associations and the
EDUCATION
Ministry of Higher Education to
problem solve matters that inhibit
efforts to position Malaysia both
locally and internationally as a
competitive education destination
of choice. These challenges involve
matters such as programme quality,
fee setting and course approvals, all
on an education institution level in
addition to the on-going challenges
on visa approval time.
With vibrant education offerings,
Malaysias education sector has been
identified as a key export area by the
National Export Council chaired by Education initiatives under NTP have improved the quality of teaching and
YAB Prime Minister. As such, one of learning in the classrooms.
the main focus areas for the Education
NKEA in 2016 and beyond will be the and Science improve significantly performer in terms of national policies
enrolment of international students. following the introduction of the NTP on openness to international higher
As global international student and MEB. The study is conducted education in the British Councils The
mobility is expected to increase to every four years and in its latest Shape of Global Higher Education:
about six million by 2020, of which instalment in 2015, released in 2016, National Policies Framework for
70% are expected to come from the Malaysia registered 465 points, a International Engagement research
Asia Pacific, much more work will 25-point improvement from 2011 in paper. Furthermore, the QS Best
have to be coordinated with multiple its Mathematics score. Among the Student Cities index ranked Kuala
Ministries and agencies to ensure 16 countries that have improved in Lumpur as the most affordable city
that the national target of 200,000 Science, Malaysia showed the biggest for university students. Overall, in
international students by 2020 is met. improvement, with a 44-point jump, 2016, the Education NKRA achieved
Since 2013, the NTPs initiatives and scored 471 points. Malaysia 90% of its KPIs, and the Education
have also been supplemented aims to be in the top one third of NKEA achieved 118% of its KPIs.
with the introduction of the MEB, participating countries in international Although challenges remain
which builds on the NTPs efforts to assessments by 2025. Currently, mainly due to the sheer breadth
accelerate the transformation of the based on TIMSS 2015 results, Malaysia of initiatives being undertaken, the
education system and improvement is placed among the top two thirds of Government remains confident that
of student aspirations to realise participating countries in international the country has embarked on the
a globally competitive education assessments, as it placed 22nd for right track to elevate the education
system. Mathematics and 24th for Science, system for the development of a
It is important to note that these out of 39 countries participated. highly-skilled workforce.
initiatives take a long-term view In another global benchmark,
on enhancing Malaysias education the Programme for International
landscape. Hence, results will not Student Assessment (PISA), Malaysia
be visible overnight. However, the
country has started to witness
also recorded improvements in
Mathematics, Reading and Science
Malaysia aims to be in
encouraging progress since the start
of the NTP and MEB, setting the
in 2015, registering 446, 431 and 443
points, respectively against 421, 398
the top one third of
stage for lasting change.
This includes improvements
and 420 in its last assessment in
2012. This means that Mathematics,
participating countries
against international benchmarks,
such as the Trends in International
Reading and Science have improved
by 25, 33 and 23 points respectively.
in international
Mathematics and Science Study
(TIMSS), which has seen Malaysian
Among other milestones
achieved in education include the
assessments by 2025.
students performance in Mathematics country being singled out as a top
EDUCATION
Since the launch of the NTP, pre-school enrolment rate has increased significantly to 85.56% in 2016.
Sowing the Seeds

the 4+ age group with only a 79.4%
enrolment rate. This is mainly due
In 2016, the national of the Future

to a shortage of classes in public
preschools and parents awareness
preschool enrolment The Government has recognised

that children can benefit from
preschool education as early as 4
rate increased to that efforts to enhance student

outcomes must start from the early
years old.
Meanwhile, the NKEA recorded
85.56%, representing years. Initiatives under both the

NKRA and the NKEA aim to improve
the enrolment of 439,543 students
aged 4+ and 5+ in private preschools,
865,464 4+ and 5+ enrolment and the quality of ECCE,

with the NKEA geared towards
making up 52% of total preschool
enrolment. Additionally, 417 new
year-old children. tapping private sector participation

to achieve targets.
private preschool centres and 239
new private childcare centres were
In 2016, the national preschool established during the year, bringing
enrolment rate increased to 85.56%, the total number of private preschool
representing 865,464 4+ and 5+ centres and childcare centres to
year-old children. It should be noted 7,360 and 3,525 respectively.
that the enrolment rate for 5+ age Furthermore, to ensure the
group is almost universal at 92.1%, provision of quality preschool
although there remains a shortfall in education, the Government
EDUCATION
announced on 1 April 2016 that
all public and private preschool
teachers must possess a minimum
qualification of a diploma in ECCE,
with full effect from 2020. While new
teachers will be required to abide
by the new policy starting January
2017, there will be a three-year grace
period for existing teachers to upskill
themselves to diploma level. This is
in view that approximately 80% of
total preschool teachers still do not
have a minimum diploma in ECCE
qualification.
Also towards ensuring quality
preschool education, 22,975
preschools have participated in the
National Preschool Quality Standard
assessment following its introduction
2016 preschool enrolment rate by age group
in 2015. Of these, 22,549 or 98% were
found to have met the minimum quality
standards. The School Inspectorate secondary schools in Malaysia, banding methodology in 2017. As
and Quality Assurance (Jemaah especially lower-performing schools, a result, school banding will not be
Nazir dan Jaminan Kualiti - JNJK) by banding the schools into seven tracked as a KPI in 2017 while a new
coordinated verification activities categories. This allows the MoE methodology will be developed for
of the self-assessed tool on 543 to focus efforts and resources on school banding.
preschool centres with the help of the underperforming schools (Bands 6 The High Performing Schools
inspectorates from the Community and 7) while making schools more (HPS) programme, meanwhile, aims
Development Department (KEMAS), aware of their performance to to improve the quality of Malaysias
the Department of National Unity motivate them to raise their ranking. best schools and raise the bar for
and National Integration (JPNIN) and During the year, primary schools all schools. Since 2015, 132 schools
MoEs Private Education Division. continued to improve with more have been identified as High
schools moving up to higher bands. Performing Schools. No new HPS
Enhancing the
The overall number of schools in were identified in 2016 however, as
Bands 1 and 2 which are the top the Government exercised stricter
Education Ecosystem
achieving schools in Malaysia rose selection of schools to maintain the
to 3,980 in 2016 from 3,105 in quality and prestige of HPS. Efforts
2015. However, secondary school were focused instead on ensuring
As students main educational banding shifted downwards due to HPS help surrounding schools move
touchpoint, schools form a critical the exclusion of Form 3 Assessment upwards through coaching and
part of the education landscape (PT3) from school banding networking.
in improving student outcomes. calculation. This is as PT3 is not an The Literacy and Numeracy
Undertaken through the NKRA, externally-assessed exam, making Screening (LINUS) programme will
efforts are therefore focused on it difficult to be used objectively also be continuously implemented
close monitoring of the performance for national banding. As a result, and monitored. As the programme
of schools to ensure a targeted the overall number of schools in has run for seven years and
approach to the delivery of Bands 6 and 7 rose to 199 in 2016 undergone several revisions and
improvements. from 139 in 2015. As assessments in improvements, LINUS will remain
Launched in 2010, the School the school system have undergone as a vital component of the new
Improvement Programme (SIP) significant changes in recent years, Primary School Standard Curriculum
provides targeted support to all there is an opportunity to review (KSSR) syllabus for primary schools
10,000 Government primary and and enhance the existing school to ensure students obtain basic
EDUCATION
DUAL LANGUAGE PROGRAMME

A WIN-WIN FOR STUDENTS AND TEACHERS
Dr. Logendra Stanley Ponniah,
Dean of the Education Faculty at Taylors
University, which supported SK Convent
Bukit Nanas (CBN) 1 & 2 in their
DLP Programme
The workshop helped

the teachers to see new
and creative methods
in teaching Math &
Fourteen third-year students from
the Education Faculty of Taylors
Education faculty students from
Taylors were stationed at the schools
Science in English and
University participated in a 10-week
Math and Science workshop with SK
twice a week for the workshop, bringing
with them multiple specially-designed
the focal issue they
CBN 1 & 2 in the second semester of 2016
as part of the Governments efforts to
tools and games in English. Selected
Year Four students would take turns
should emphasise
support the schools implementation of to participate in the workshop; their when teaching the
the Dual Language Programme (DLP). respective subject teachers were
All 14 students went into the programme also present to manage the class and subjects in English.
with much enthusiasm and passion to participate in the learning process. Pre-
teach and to learn. They completed the and post-workshop Math and Science
workshop with remarkable skills which test performances of the students
they could not have learnt from books were recorded from which the findings subjects in English. In the meantime,
such as classroom management and showed a significant improvement in the Taylors University students had
clinical teaching methodologies, says Dr. their test results. an experiential field exposure where
Logendra Stanley Ponniah, Dean of the Dr. Logendra proudly emphasises, they learned to manage the class from
Education Faculty at Taylors University Students, teachers and principals of SK the school teachers who were present
Malaysia who oversaw the workshop. CBN 1 & 2 were very pleased with the throughout the workshop.
SK CBN 1 & 2 were selected to outcome and were ready to adopt the Although this DLP workshop was
participate in this programme as the learning of Math & Science in English only an experimental programme, it has
schools requested for assistance in with a new perspective. Teachers proven that the principles in Math and
teaching students who were weak in discovered that prior to the workshop, Science were not the core difficulty in
English, especially in its usage for Math the Year Four students struggled with learning for the Year 4 students. It was
and Science subjects. Nevertheless, a poor English vocabulary that led to the language proficiency that hampered
the students were willing to learn in poor understanding of mathematical the learning process of the students.
English as the programme provides and scientific principles. Dr. Logendra With this significant finding, both the
opportunities to improve language continues, The workshop helped MoE and Taylors University will propose
mastery through increased exposure to the teachers to see new and creative their recommendations to improve
the language. These two schools also methods in teaching Math & Science English language learning capacities
fulfilled the NTPs urban poor public in English and the focal issue to be and environments for school children at
school criteria in the DLP programme. emphasized on when teaching the various levels.
EDUCATION
MINISTRY OF EDUCATION
REVITALISES TEACHER TRAINING
be from different parts of the world. to collaborate with the MoE. This was
The trainees would also be given overcome through a three-way approval
opportunities to experience a vast array process for the institutions that applied
of learning methods and have access to to join the programme. The three
top-notch libraries and labs. approval parties were the MoE, the
Seventy-three new teacher recruits Ministry of Higher Education (MoHE)
were selected to participate in this and the Malaysian Qualifications Agency
inaugural collaboration between the MoE (MQA).
and private institutions and enrolled into As the first batch of trainees have just
the English teaching programme. The graduated from training, it is too early to
main criteria of the selection process make any assessment of their teaching
was a minimum of 5As in their SPM quality. However, in the future, the
results. The trainees were trained to Ministry looks forward to having more
be English teachers for primary schools dynamic forums and two-way dialogue
(Sekolah Rendah) nationwide. All the 73 with participating private institutions
trainees tuition fees, room and board for more value-added training curricula
expenses at the private institutions were to be provided. It is also the desire of
fully sponsored by the MoE, Dato Haji the Ministry to see more quality private
Mahmud Karim says. institutions apply to collaborate in such
All 73 trainees completed the initiatives.
diploma training at the end of 2016. They The Ministry expects teachers
will be channelled to various primary trained by these private institutions
schools nationwide through the usual to have attained more unconventional
teacher placement process; there is no and creative teaching methods and
Dato Haji Mahmud Karim, Director of
special process to allocate these newly philosophies. These teachers should be
MoEs Teacher Training Division
trained teachers to any specific urban able to train school children to think
or rural schools. Dato Haji Mahmud more dynamically rather than just rote-
The private teacher training continues, All placements will be learn.
programme was the first in Malaysias processed according to the vacancies Ultimately, these collaborations
history of teacher training to have raised by the respective schools through will benefit Malaysian children in their
new recruits trained by private higher the state education office. The need for education. The MoE is always committed
education institutions. As part of the the English teachers in schools is the priority to work with private institutions to
NTPs Education initiatives, it was the of the Education Ministry. improve the training of Malaysian
first public-private sector collaboration The main challenge of this teachers to bring about positive change
in a teacher training programme, with programme is the selection of trainees to the countrys education system.
selected private institutions including to be enrolled in private institutions. The
SEGi University, Universiti Tunku Abdul
Rahman (UTAR) and UCSI University.
selection committee spent the most time
reviewing the quality and character of The need for
According to the Director of the
MoE Teacher Training Division, Dato Haji
the applicants to ensure their suitability
and commitment. The committee English teachers in
Mahmud Karim, the Ministry saw that
the private institutions would be able
is responsible for ensuring that the
Ministrys investment in sponsoring the
schools is the
to provide a more wholesome campus
experience to the trainees who may be
selected trainees would be returned
through the trainees full commitment to
priority of the
from the remote rural areas. The private
institutions provide a diversified learning
teaching upon graduation.
Another challenge was the
Education ministry.
environment where their students may selection of suitable higher institutions
EDUCATION
exposed to more English language

activities and longer duration of
language exposure through the
teaching and learning of Science and
Mathematics subjects in English. In
2016 the Government implemented
the DLP in 378 schools, comprising
132 primary and 246 secondary
schools. Cambridge English
Language Assessment conducted a
baseline study to measure students
English language proficiency by
administering a Cambridge English
exam. The results were used to
measure the impact of the DLP
on students English proficiency in
comparison to students from non-
Level of immersiveness of 6 states in HIP Phase 1
DLP schools.
Source: Monitoring and Support Visits Phase 1 Report by English Language Based on the DLP baseline
Teaching Centre study conducted on 3,520 students
(comprising both DLP and non-DLP
students), the students involved in the
literacy (Bahasa Malaysia and Programme (DLP) which gives DLP appeared to have benefitted in
English) and numeracy by the end of schools the option to teach Science terms of strengthening their English
Primary Year 3. and Mathematics in English or Bahasa language ability. Additionally, 75% of
Malaysia to Year One, Year Four and DLP students were placed at or above
Nurturing Globally
Form One students; and the Highly the target level of the test (60% at A2
Immersive Programme (HIP), which and 15% at B1), as compared to 61% of
Competitive Students
aims to increase English proficiency of non-DLP students. In terms of overall
pupils through increased immersion performance, some 62% of rural DLP
in the English language through in- students performed at or above the
Enhancing the proficiency of class and out-of-class activities, extra level of the test (57% at A2 and 5%
students in the English language classes and outreach programmes. at B1). While this is some way behind
makes up a key thrust of the NTPs The DLP and HIP were introduced urban DLP at 79% (61% at A2 and 18%
efforts to cultivate students who are following an English language lab at B1), it is closer to the performance
globally competitive. Through the conducted in 2015. It is to ensure that of non-DLP urban students at 67%
NKRA, initiatives are centred on two students are more proficient in the (54% at A2 and 13% at B1).
approaches: The Dual-Language English language, given that they are The study concluded that DLP
students clearly did better in terms
of higher numbers achieving the
standard and registering fewer
Based on the DLP baseline study conducted on students notably below the target.
A stronger profile is also apparent
3,520 students (comprising both DLP and non-DLP among DLP students in schools that
are only partially participating in the
students), the students involved in the DLP have DLP.
Although the baseline study
appeared to benefitted in terms of strengthening has been encouraging, the self-
selection of students may mean
their English language ability. that the students in the DLP schools
already have better levels of English
proficiency to be able to participate
EDUCATION
in the DLP pilot. With the baseline
study in place, the Ministry will
continue to evaluate the impact of the
programme next year.
The Ministry has also decided
that UPSR papers for Science and
Mathematics subjects will continue to
be offered in dual-language. This is an
important enabler for the success of
the DLP.
Some schools have given
feedback to the MoE requiring
additional support to implement the
DLP. Twenty-seven schools have also
been identified as at risk schools for
various reasons. In an effort to ensure
the success of the DLP, PEMANDU
has engaged with other institutions
and private organisations to support
DLP schools by providing additional
teaching and learning materials and
training for teachers and students.
Additional support has been provided
to teachers through the provision of an Ninety-four schools in six pilot states were
online training programme developed
by MoEs English Language Training selected to embark on the first phase of the HIP
Centre (ELTC).
For example, Taylors School journey, which commenced in March 2016.
of Education supported Sekolah
Kebangsaan Convent Bukit Nanas 1
(SK CBN 1) and Sekolah Kebangsaan
Convent Bukit Nanas 2 (SK CBN in schools, making the HIP a good In its second phase which started in
2) through a 10-week Mathematics platform to allow more schools to July, the programme was expanded
and Science workshop for Year 4 participate in the DLP and gain more to 1,106 schools in other states. In
students. Using a learner centric hours to conduct English activities. 2017, HIP will be scaled-up to 5,500
pedagogy approach that encourages A highly immersive environment schools and will be fully implemented
collaborative learning, pupils for the English language is defined in all 10,000 schools by the year 2018.
developed better communication as a learning environment that is HIP practices in schools have been
skills with the results of the surrounded by English language encouraging, recording significant
summative assessment conducted usage. This environment is progress. For Phase 1, Sarawak
before and after the intervention constructed using English language showed the highest level of English
showing improvement in scores for activities that are fun, game-, immersion among the six states. The
both subjects. Other organisations problem- and simulation-based. This level of immersion is categorised
such as Sri KDU and Cambridge simulates realistic scenarios and tasks across four levels, with level 1 being
University Press have also supported that give learners the opportunity to the weakest and level 4 the strongest.
some DLP schools, focusing on the practise their English language skills Data showed that no school
teachers. In order to join the DLP, and interact with other learners using had rated itself a Level 4 of the
schools must fulfil certain criteria. This these language skills. immersiveness scale. Twenty-one
limits the participation of schools in Ninety-four schools in six pilot schools across the six states (22%)
the programme as not all schools are states were selected to embark on rated themselves a Level 3 of the
qualified for the DLP. However, there the first phase of the HIP journey, immersiveness scale. The majority of
is a need for more hours of English which commenced in March 2016. the schools (71 schools: 76%) rated
EDUCATION
themselves a Level 2 and two schools programmes in schools. (Institut Pendidikan Guru IPG)
(2%) rated themselves a Level 1 of the Further supporting the with C1 (effective operational
immersiveness scale. The two schools Governments efforts to enhance proficiency). However, this fell short
that rated themselves a Level 1 were English proficiency among students, of targets during the year, with 64%
from the state of Perak (1 school) and in 2016 84.5% of B1 teachers and of pre-service teachers achieving C1.
Sabah (1 school). 42.7% of B2 teachers that participated Nonetheless, the MoE is confident
Similar to the DLP, PEMANDU has in the Professional Upskilling of that graduates in 2017 will perform
engaged with private organisations English Language Teachers (Pro-ELT) better as this cohort underwent strict
and facilitated a few collaborations programme in that year have improved selection and have undertaken a strict
to further support HIP schools. their proficiency band. The year also IPG curriculum since the start of their
For example, Sunway University marked the first time since 2013 that five-year pre-service course.
conducted a series of workshops to the upskilling training was conducted
Harnessing Talent
provide a platform for teachers of HIP in-house by the MoEs ELTC trainers
schools in Perak to develop their own using the British Councils modules.
through a Focused
ideas for building an English language Notably, the results are comparable
school culture that is affordable, to English teachers who were trained
Approach
realistic and sustainable. by the British council in 2013.
Other examples include Pintar While Pro-ELT initiatives have
Foundations support of 74 primary improved our English teachers
schools through the Action Song proficiency level based on the Under the NKEA, strategies
Programme to develop confidence Common European Framework of have been identified to establish
and familiarity with the English Reference for Languages (CEFR), it discipline clusters in the provision of
language among younger pupils. is important to ensure new English private higher education to develop
This programme also develops skills teachers entering the service a pool of talent in specialised areas.
in integrating the scripting of music have the right proficiency level as These strategies address Malaysias
and movement with language. The well. The Ministry requires all new challenges to prepare a wide variation
Edge Education Foundation has English teachers to graduate from in quality graduates for key industries
also been supporting some English the Institute of Teacher Education both locally and internationally
Under the NKEA,

strategies have been
identified to establish
discipline clusters
in the provision
of private higher
education to develop
a pool of talent in
specialised areas.
EDUCATION
and utilises a network of education further develop an international- discipline cluster also aims to increase
institutions, international institutions recognised professional certification, student enrolment in Islamic finance
and industry to collaborate and which is critical in major markets like and business programmes to 54,000
develop relevant academic offerings. the Middle East. On top of this, EPP7s by 2020. In 2016, 15,606 students
project lead will be undertaking plans were enrolled. This EPPs progress is
Private Skills Training and Education to develop a concerted marketing tracked by the number of enrolled
Technical Vocational Education campaign on these education students into Islamic finance and
and Training (TVET) has formed one disciplines to increase enrolments business programmes
of the Governments key thrusts in of students in related courses. In
enhancing Malaysias talent pool in 2016, the International Council of Health Science Education Cluster
line with its high-income aspiration. Islamic Finance Educators (ICIFE) As reported in the past, this
This focus area aims to rapidly scale has attracted 145 new individual EPP was shelved previously as
up and increase the quality of private and institutional members, locally development plans were still being
skills-training institutions and attract and internationally. The globally reviewed by the EPP project owner.
international vocational students. recognised professional association It was reactivated two years ago and
This will be achieved by increasing for Islamic finance educators has the Health Science Education Cluster
public-private partnerships with attracted close to 400 individual and EPP is gaining traction again. The
technical and vocational schools and institutional members in total. This target of this EPP is to ensure medical
facilitating industry investment in
training to provide students with an
alternative option for learning and
establish closer ties with the industry.
Highlights of the initiative during
the year include Malaysia emerging as
overall champion at the 11th ASEAN
Skills Competition held on 19-29
September 2016 with an impressive
haul of 24 gold, four silver and five
bronze medals.
In other developments, the
Department of Skills Development
under the Ministry of Human
Resources has shifted its focus towards
the quality of trainers in institutions.
Under the KPI of improving the
knowledge and expertise for TVET
instructors, approximately 13,923 have
been trained through short-term and
long-term courses.
Islamic Finance and Business

Education Cluster
The Islamic finance and business The Discipline Clusters have been successful in producing graduates that have
strong exposure to industry practices through collaborations with industries.
education cluster aims to cultivate
talent in Islamic finance and business
to meet the sectors human capital
needs, while leveraging Malaysias
dominance in Islamic finance. The
target for this cluster is to establish
In 2016, 15,606 students were enrolled in
a standard national curriculum for
an education in Islamic finance and
Islamic Finance and Business Programmes.
business of which will be used to
EDUCATION
2017, catering for medical, surgical, Accountancy Education Hub
At the end of 2016, a obstetrics and gynaecological and

paediatrics general wards as well as
Championed by Sunway TES,
this discipline cluster was established
total of 850 students critical wards such as an Intensive

Care Unit, Coronary Care Unit and
specifically to build a sustainable
pool of talent by incorporating
including Peneraju High Dependency Unit. professional accounting qualifications

into existing accounting degree
scholars were enrolled Hospitality and Tourism Cluster

In an effort to support the growth of
programmes offered by public and
private institutions of higher learning.
in professional the tourism industry, the hospitality

and tourism cluster aims to increase
Besides the public and private
partnership initiative, Sunway TES
accounting courses hospitality and tourism graduate

output from 20,000 in 2009 to
also supports the effort in increasing
the numbers of Bumiputera
through public and 50,000 by 2020, led by the Malaysia

Centre for Tourism and Hospitality
professional accountants
the Yayasan Peneraju Pendidikan
under
private partnerships Education (MyCenTHE). With the

target to have 50% of the industry
Bumiputera (Peneraju) sponsorship
programme. The target is to produce
with various tourism and hospitality workforce

trained or reskilled, MyCenTHE aims
5,500 chartered professional
accountants by 2020. The progress
universities. to raise the quality of the workforce

with the combined efforts of its
of this discipline cluster is tracked by
the number of enrolled students in
15-member institutions and seven Sunway TES programmes which are
cluster leaders across the nation. in collaboration with public higher
and health students gain employment In 2016, MyCenTHE revitalised education institutions and Peneraju.
upon graduation, through the its branding and promotional efforts During the year, Sunway TES
establishment of the UCSI Universitys by holding marketing campaigns, signed an MoU with the Department
Teaching Hospital as a start to lead as well as reaching out to the youth of Polytechnic Education (Jabatan
the cluster development to set the and public using social media to Pendidikan Politeknik JPP).
stage as a training ground, crucial for educate and create more awareness Under the agreement, Sunway
practicum placements as well as for on the future of the tourism and TES and polytechnic institutions
the development of industry-relevant hospitality industry as well as related will be collaborating with ACCA to
curriculum. career aspects. In its awareness promote the professional accounting
UCSI Universitys Teaching and marketing campaigns, it also certification programme to students.
Hospital in Bandar Springhill, Negeri introduced its Events and Retail The initiative includes a Train-the-
Sembilan is currently being set up to Discipline Leader, Berjaya University Lecturers programme, intensive
be the first private teaching hospital in College of Hospitality. English courses and preparatory
Malaysia to bridge American medical Making its contributions classes for selected ACCA papers.
practices and will be a leader in the together with leading education Politeknik Port Dickson (PPD)
teaching and training of Masters, MRCP providers in Malaysia, MyCenTHE has been identified to pilot the
and American Fellowship students via with coordination by the Ministry programme. Also to note is the
its first medical certification centre of Higher Education will work with support of Peneraju towards this
for the Educational Commission for Sunway University, Taylors University initiative as scholarships will be
Foreign Medical Graduates (ECFMG) and KDU University College to provided to candidates who meet
examinations and training. It will continuously collaborate and organise the requirements under Program
also engage in world-class medical events to promote hospitality and Profesional Akauntan Muda by
research collaborations with US, tourism education in Malaysia as well Peneraju.
UK and Canadian universities and as collaborations with associations in At the end of 2016, a total of
research centres. the ASEAN region. 850 students including Peneraju
The first phase of the hospital will scholars were enrolled in professional
have the capacity for 130 beds by accounting courses through public
and private partnerships with various
universities.
EDUCATION
Positioning Malaysia
new programmes; Accounting and programme. EduCity@Iskandar is
Business Finance and International a fully integrated education hub
as a Global Education
Business Management. Also among comprising of institutes of higher
them were more than 30 transfer education, student accommodations
Hub
students from its UK and Dubai as well as recreational and sports
campuses. In April, it registered facilities. A number of renowned
its largest batch of nearly 200 institutions have established
Malaysia has established itself foundation students. themselves at EduCity over the years
as an international education hub During the year, the Malaysia with both international and local
through initiatives under the NKEA campus, together with the universitys student numbers gradually increasing
to leverage the countrys value for two other main campuses in Dubai as institutions continue to expand its
money, wide range of courses and and the UK signed an agreement programme offerings.
schools available, safe environment with the Chinese Service Centre for During the year, it also welcomed
and multicultural population. In Scholarly Exchange and its study two new campuses with the opening
2016, the country recorded 172,886 abroad centre to collaborate to send of Multimedia Universitys (MMU)
international students, encompassing students from China to study abroad Johor Campus and University of
international school-level and at any of Heriot-Watts campuses. Reading Malaysia (UoRM)s first
tertiary-level students, and is on An agreement was also signed with overseas, full-fledged campus.
track to meet the target of 200,000 Guizhou University that will allow The University of Reading
international students by 2020. Guizhou University students to Malaysia (UoRM) will also be home
Reflecting the success of this undertake the first and second year to the internationally renowned,
initiative, UNESCO in its latest of the programmes under Heriot- triple-accredited Henley Business
International Students Mobility Watts School of Social Sciences in School and its prestigious Henley
Survey ranked Malaysia the ninth- China, before continuing their final MBA. The programmes will allow
preferred destination for tertiary year at any of the universitys other undergraduates and postgraduate
education among international campuses. students to split their time between
students, from 12th in 2014. Efforts The EduCity@Iskandar initiative the UK and Iskandar campuses.
under this initiative include closely further marks Malaysias strategy MMUs third campus in EduCity
monitoring students and schools to as an education hub. It also plays offers the Bachelor of Cinematic
maintain the quality of the country as an integral part in the success of Arts (Honours) programme in
an education hub. Additionally, while Malaysias Economic Transformation collaboration with the University of
attracting international names in
tertiary education is vital to support
this initiative, the Government will
remain selective in approving the
establishment of foreign university
campuses here, where there are
currently 10.
To further support the countrys
status as an education hub, the
Government will facilitate Tier One
institutions to establish foreign
branch campuses in the country.
One of the 10 branch campuses
set up in this country is the Heriot-
Watt University Malaysia, which was
established in Putrajaya in 2014 and
offers foundation, undergraduate
and postgraduate programmes. .
In 2016, the university welcomed
The EduCity Stadium and Sports Complex has a seating capacity of 14,000
its third cohort of undergraduate and houses sporting facilities of international tournament standards.
students, including students from two
EDUCATION
Southern California. Since its opening Thailand. The roadshow received 65 from the foreign exchange income
on 25 January 2016, a total of 153 applications for the 2017 academic earned from international school
students have enrolled in MMU. UoRM year which were forwarded to the spending.
opened its doors a month later to respective universities. During the year, a private-
offer courses fully accredited as It also undertook several partnership programme agreement
University of Reading degrees. infrastructure upgrades in 2016, was signed between the International
In addition to MMU and UoRM, including the increase of Internet School of Kuala Lumpur (ISKL), the
EduCity currently houses the bandwidth at the student village Employees Provident Fund (EPF)
Newcastle University of Medicine and the introduction of an additional and the Federal Land Commissioner
Malaysia, Marlborough College free bus service from Puteri Harbour for the establishment of ISKLs new
Malaysia, University of Southampton to Larkin Sentral with a stop at campus. ISKL will invest RM350
Malaysia Campus, Netherlands EduCity. This new service enhances million in the new campus that
Maritime Institute of Technology, the current EduCity bus that runs is scheduled to open its doors in
Raffles University Iskandar, on Fridays, weekends and public August 2018 offering early years,
Management Development Institute holidays from the student village elementary, middle and high
of Singapore and the Raffles to Anjung Nusajaya, Bukit Indah school education. The new school
American School. and Larkin Sentral. In 2017, it will is expected to attract students,
In February 2016, PEMANDU and undertake a RM1.9 million expansion teachers and administrators from
EduCity Iskandar Malaysia Sdn Bhd of its gymnasium. Its sports complex around the world and enhance
held a round-table discussion with also currently hosts training for JDT Malaysias reputation as a centre of
various corporate bodies, education football teams (under 12 and 15), world-class education.
foundations and universities in with 70 of the young footballers There are currently 116
Educity, on the grant of scholarships staying at the student village. The international schools operating in
and sponsorships. EduCity celebrated complex is also used to host other Malaysia, exceeding the targeted 87
another important milestone in state-level events. schools by 2020 as identified under
July 2016 as the first batch of 18 Further supplementing the the NKEA. However, the initiative
engineering students from the NKEAs initiative to position Malaysia has yet to reach the target of 75,000
University of Southampton Malaysia as an education hub, efforts have students as most international
Campus graduated. been taken to increase the number of schools operate below capacity.
To widen its reach for potential international schools in the country Efforts are therefore required to
students, EduCity collaborated with to accommodate the education monitor the quality of education
Education Malaysia Global Services needs of the influx of expatriates provided by the schools to attract
(EMGS) and held several exhibitions and returning diaspora. This will also more students.
in Pakistan, Kazakhstan, Jakarta and allow Malaysia diaspora to benefit In view of this, the MoE has
developed action plans to be more
stringent in approving new licences
as well as monitor at risk schools
In addition to MMU and UoRM, EduCity currently to ensure that the interests of
students and schools are protected.
houses the Newcastle University of Medicine The key objective of this action
plan is to provide quality education.
Malaysia, Marlborough College Malaysia, University Focus will be given more to the
existing providers by elevating the
of Southampton Malaysia Campus, Netherlands quality of all international schools
in order to reduce the capacity
Maritime Institute of Technology, Raffles University gap. Simultaneously, the policies
under various Ministries to attract
Iskandar, Management Development Institute of international students must be
reviewed and streamlined.
Singapore and the Raffles American School.
EDUCATION
MOVING FORWARD
The Ministry of Higher Education acquire relevant skillsets to ensure job including forming public-private
aspires to attract more talented compatibility as well as support the partnerships in education.
students for post-secondary employment of graduates. Approximately 838 more schools
education in Malaysia. While the In this regard, the Ministry of are targeted for the adoption of the
target of student enrolment is being Higher Education has and will continue DLP in 2017, while lessons will be made
met, the Ministry is committed to to provide strong support to discuss more interactive. Efforts will also be
improve its international students and and facilitate the development of the taken to ensure sufficient resources
tertiary education policy and service Education NKEA EPPs to overcome such as textbooks, reference books
delivery through business process challenges that have been inhibiting and learning materials are aligned
reengineering to further improve growth. with the latest syllabus. Additionally,
the countrys competitiveness as an Efforts under the NKRA meanwhile initiatives will focus on ensuring
education hub. will focus on achieving aspirations teachers are well-trained to teach
Education NKEA EPPs will under the MEB. This includes being Mathematics and Science in English.
continue to be developed with more bolder in carrying out structural The selection of teachers involved in
collaborations between institutions changes to accelerate transformation the Teaching and Learning of Science
and associations to ensure the quality in the education system, such as and Mathematics in English (PPSMI)
and education offerings are robust tightening the selection criteria for will be prioritised, as well as the co-
and relevant with marketing initiatives new teachers, setting a minimum training of new teachers.
undertaken locally and internationally level C1 English proficiency for new Under the HIP, pilot schools
to attract international students to English teachers and enhancing the will be encouraged to share their
study in Malaysia. pedagogy approaches of teaching best practices with others. The
Discipline clusters will continue to embrace technology as well as State Education Departments and
growing their members as well as student-centred and collaborative District Education Offices must play
affiliations with relevant industry learning. an important role to anchor HIP
associations and players. For example, The Ministry of Education schools and guide them towards
MyCenTHE under the initiative to build recognises that concerted effort and better immersion in English. The
a hospitality and tourism discipline participation from all stakeholders, number of HIP schools will increase
cluster of the Education NKEA will including parents, the community and to 5,500 in 2017, with a target to
expand its collaboration with more the private sector is imperative to the have all schools running HIP by 2018,
hotels as well as relevant hospitality success of the transformative journey. requiring heightened monitoring to
and tourism associations to ensure To realise this collaboration, every track and report the immersion level
that students gain exposure to the party should be open and receptive consistently and efficiently.
world of work prior to graduation, to new ideas and ways of working,
Greater Kuala Lumpur/Klang Valley
DATUK SERI UTAMA TENGKU

ADNAN BIN TENGKU MANSOR
Minister of Federal Territories
The Greater Kuala Lumpur and Klang Valley (Greater

KL/KV) region, a source of pride for many Malaysians,
has continued to grow from strength to strength. In 2016,
we saw a number of major projects coming to fruition
after the last six years of hard work from stakeholders
involved.
A major game changer eagerly anticipated by
Malaysians and Singaporeans alike is the High Speed Rail
(HSR) connection between Kuala Lumpur and Singapore.
A bilateral agreement was successfully signed on 13
December 2016, establishing guidelines and protocols
required for the commencement of the HSR project and
acting as a framework to start the construction process.
Expected to be completed by 2026, the HSR will spark a
new era of improved and thriving relations between two
of the most prominent cities in Southeast Asia.
The commencement of operations of the Mass Rapid
Transit (MRT) on 16 December 2016 marked another
feather in our cap after five years of construction. I
am pleased to note that the first phase of the Sungai
Buloh-Kajang Line was completed ahead of schedule
and enabled cost savings of RM2 billion, and bears
testimony to the Governments commitment to fulfilling
its promises to the rakyat.
Projects such as the HSR and the MRT can only cement
Greater KL/KVs position as an economically vibrant
metropolitan area, attracting both local and foreign
talents. From 2011 to 2016, TalentCorps Returning Expert
Programme (REP) facilitated the approval of more than
4,000 skilled Malaysians from abroad to contribute
to the growth of the nation. Concurrently, InvestKL
continues to draw multinational corporations (MNCs) in
Building
setting up their regional operations here in Greater Kuala
Lumpur, and in 2016 drew 13 new companies, bringing
the total number of companies which have set up their
a World-Class
bases here to 64. The River of Life (ROL) project, which
aims to transform the iconic Klang and Gombak rivers
to their former glory while spurring more commercial
City
and recreational activities, also recorded encouraging
progress with the river beautification portion starting to
show tangible results.
Overall, the growth and development of Greater KL/
KV has made it one of the most vibrant cities in Southeast
Asia and I look forward to its continued advancement.

OVERVIEW
The transformation of Greater
Kuala Lumpur and Klang Valley
(Greater KL/KV) remained positive
and progressive in 2016, with the
region sustaining its position as a hive
of economic activity, despite difficult
operating conditions in the global
landscape. In 2016, the Greater KL/
KV NKEA achieved 115% of its KPIs.
This was reflected by
developments in the NKEAs
initiatives during the year. Highlights
include the signing of a bilateral
agreement between the Malaysia
and Singapore Governments for the
Kuala Lumpur-Singapore High Speed
Rail (HSR) project on 13 December
2016. This paves the way for the
implementation of the project, which
is targeted for completion in 2026.
The enhancement of connectivity Masjid Jamek: The Heart of the River of Life Project.
in and around Greater KL/KV is a vital
component of the regions continued
socioeconomic development. region amid global uncertainties and and the adoption of four parks. To
Following the milestone achieved economic slowdown. date, 135,734 trees have been planted
by the HSR project, on 16 December A milestone currently in progress under the Greener KL initiative,
2016 the eagerly anticipated Mass and anticipated for completion in exceeding the 100,000 trees targeted
Rapid Transit opened its doors to early 2017 is the first package of for planting by 2020. Additionally, an
the public with the commencement the river beautification works under outcome study conducted by DBKL
of Phase One of the Sungai Buloh- the River of Life (ROL) project. This and the Ministry of Federal Territories
Kajang Line. project, carried out deep in the heart and presented to the Prime Ministers
InvestKL focuses on attracting of Kuala Lumpurs Heritage Quarter Department and the Implementation
large global multinationals such and in the vicinity of Masjid Jamek Coordination Unit (ICU) in October
as Fortune 500 and Forbes 2000 and Bangunan Sultan Abdul Samad 2016 showed that the trees planted
companies to set up their regional two of the most important heritage have resulted in a 64.9% increase in
business, innovation and talent buildings in Kuala Lumpur is aiming shaded area, equivalent to 1.22 million
hubs in Greater Kuala Lumpur and to transform this area into a vibrant square metres, successfully reducing
strategically grow their business in waterfront with a high economic and the surrounding temperature by 2.7%.
Asia. The mandate has successfully commercial value. The ROL project A comprehensive master plan
delivered a total committed will continue its extensive river is underway to develop pedestrian
investment of close to RM 9 billion beautification works along the 10.7 walkways and cycle lanes in Kuala
and creation of over 5,000 regional kilometre stretch of the Klang and Lumpur. Works are also progressing in
jobs. The 2016 report card proves Gombak rivers starting from Puah the areas of enhancing basic services,
that Kuala Lumpur remains a key Pond in the north to the borders of such as near-end construction of
investment destination as InvestKL Mid Valley in the South. sewerage pipe networks to cater
managed to achieve a stretch target To make Greater KL/KV a greener, the growing number of Greater KL/
of securing 13 MNCs to establish their sustainable and more vibrant city, KV population and more sustainable
regional offices in Greater KL/KV or concentrated efforts were focused solutions for sanitation and solid
expand their footprint in the Asia on the GPS-tagging of 30,000 trees waste management.
Line is credited to the collaborative

efforts and strong institutional set-up
via the projects developer and asset
owner, MRT Corp and the MRT Exco
body chaired by the Chief Secretary
of the Government, which ensured
timely delivery of the project. The
same entities will concentrate efforts
for the construction of the second
MRT line, the 52.2km MRT Sungai
Buloh-Serdang-Putrajaya Line. To
date, 14 out of the initial target of 11
packages for the second MRT line
have been awarded, registering a KPI
of 127%. The work packages consist
of underground, viaduct and system
works packages. The line is expected
to commence full service in Q2 2022,
with a capacity to serve a daily
ridership of 529,000 passengers.
The safety aspect of the
MRT project is also a priority. It is
imperative that the new train line
At the MRT Sungai Buloh-Kajang Line Station: MRT staff greeting its users.
and its operations gain trust from
riders prior to its operational launch
Improving
trains and extending railway lines date. Strict safety measures put in
have been crucial towards meeting place have resulted in low accident
Connectivity of a
Greater KL/KVs transportation frequency rate (AFR). The project
needs. The Klang Valley Mass Rapid
Growing City
Transit (KVMRT) represents the
flagship project under this initiative,
As the countrys centre of

comprising the Sungai Buloh-Kajang
Line and the Sungai Buloh-Serdang-
The MRT project
economic activity and the base
of thousands of home-grown
Putrajaya Line.
The Mass Rapid Transit project
reached a crucial
and international businesses, it is
important for the Government to
reached a crucial milestone with the
launch of the first phase the Sungai
milestone with the
continually invest in infrastructure
improvements to cater to the long-
Buloh-Kajang Line on 16 December
2016, serving 12 stations from
launch of the first
term growth of Greater KL/KV. Key to
this is improving connectivity within
Sungai Buloh to Semantan. Upon
the completion of the second phase
phase the Sungai
the city, not only to enable efficient
and convenient movement of people
scheduled for Q3 2017, running from
Semantan to Kajang, the 51km line is
Buloh-Kajang Line
and goods, but also to avoid the time-
wasting congestion and pollution
expected to serve an estimated daily
ridership of 400,000 passengers. The
on 16 December 2016,
seen in other bustling cities.
The Government has thus placed
line will be served by a total of 58
trains, of which 52 were received at
serving 12 stations
priority in improving connectivity
through train networks. As one of the
the Sungai Buloh Depot in 2016, the
delivery and testing ground for new
from Sungai Buloh to
most efficient and environmentally
sustainable modes of transport,
trains for the MRT.
The successful completion of
Semantan.
efforts to increase the number of phase one of the Sungai Buloh-Kajang

cumulative AFR is 1.0 for 1 million enabled MNCs to decide and provide total number of jobs committed to
man hours worked compared to the their stamp of approval to set up just above 9,000 since the inception
set KPI of less than 1.5 accidents per 1 regional headquarters here despite of InvestKL in 2010.
million man hours worked. the challenging global economic and Collaborating closely with key
Connectivity in and around operating conditions. stakeholders in the public and private
Greater KL/KV will be further InvestKL also exceeded its sectors, TalentCorp worked to ensure
enhanced with the HSR project slated target of 600 new high-skilled jobs Malaysias leading employers in
for completion in 2026. The signing of committed and approved in Greater Greater KL/KV continued to have
the bilateral agreement for the Kuala KL/KV. As of 31 December, some access to a pool of home-grown
Lumpur-Singapore High Speed Rail on 1,862 job creations were committed and global talent capable of fuelling
13 December 2016 demonstrates the in 2016. Oracle, Novartis and CREC their growth and investment. Last
Malaysia and Singapore Governments contributed the highest number of year through the Scholarship Talent
commitment to the project. Built on regional jobs of over 1,500. These Attraction and Retention (STAR)
discussions held since a 2013 leaders employments will come into fruition programme, 1,217 Government-funded
retreat, the agreement furthers the in the next five years bringing the graduate scholars successfully served
good progress made by both sides
since the signing of the Memorandum
of Understanding on 19 July 2016.
The high speed rail is expected to cut The 2016 report card proves that Kuala
travel time between Singapore and
Kuala Lumpur to about 90 minutes Lumpurremains a key investment destination
via a 350km line, with 335km in
Malaysia and 15km in Singapore. This as InvestKL managed to achieve a stretch target
HSR project is expected to bring the
two countries even closer together, of securing 13 MNCs to establish their regional
improve connectivity, deepen people-
to-people ties and catalyse further offices in Greater KL/KV or expand their footprint
economic cooperation.
in the Asia region.
Leveraging Greater
KL/KV as an Engine of
Economic Activity
As the pulse of Malaysias
economic activity, Greater KL/
KV remains a competitive regional
headquarters location for MNCs.
This has been reflected by InvestKLs
success in attracting 64 MNCs to
date since 2011 which has resulted in
the creation of 5,012 jobs and RM2.9
billion in realised investments. In 2016,
some notable MNCs that have chosen
Greater KL/KV as their regional base
include Voith, Oracle Corporation,
Novartis International, Oceaneering Member of the PEMUDAH DBKL taskforce, Dato Pardip Kumar Kukreja,
International Inc. and China Railway explaining the ITIS Traffic Management System to Ambassadors and
Embassy representatives at the visit to DBKL ITIS Centre, organised by
Engineering Corporation. Greater InvestKL in May 2016.
KL/KVs strong propositions have
their bond of service by working in liveability in cities and boost residents rivers have been improved to Class III
MNCs, GLCs or established Malaysian physical and mental health. This is from Class V (unfit for contact).
companies. Meanwhile, the REP hoped to indirectly result in increased Proper wastewater management
approved 398 applications from high- productivity and higher economic is crucial for the acceleration of
value Malaysian professionals abroad potential to workers in all types of river cleaning works. In this regard,
despite the softening job market and professions. interceptors pre-treatment plants
weaker global economic conditions In line with the Malaysian that filter and treat wastewater and
throughout the year. Moving forward, Governments commitment to sullage play an important role and is
TalentCorp will intensify its efforts increase the well-being of residents included as part of river beautification
to engage Malaysian professionals living in this region, significant efforts. As planned, the first four
abroad utilising digital platforms investments and collaborative efforts interceptors located at Bangunan
such as LinkedIn and strengthening have been initiated, carried out and Sultan Abdul Samad, Masjid Jamek,
cooperative ties with Malaysian completed since 2010. These efforts the former D Tebing food court and
embassies. have been supported by participation across the Pasar Seni LRT station have
To better facilitate access by from stakeholders within the public been successfully completed, working
leading investors and employers sector, private sector and the general to ensure the water discharged into
to foreign skill sets needed, the public. One of the examples of a the river is at Class IIB.
Immigration Department and successful partnership is Wilhelmsen With a catchment area almost
TalentCorp jointly oversee the Ships Services (WSS) and Wilhelmsen four times the size of Kuala Lumpur,
Malaysia Expatriate Talent Service Ships Management (WSM), which the River of Life project is a mammoth
Centre (MYXpats Centre) which jointly sponsored 100 trees to be undertaking. Having to clean up eight
processes and issues all Employment planted in one of the parks within rivers and tributaries running at 110km
Pass (EP) applications and other Kuala Lumpur. Both companies in length is not an easy feat. In spite of
EP-related passes for expatriates also strengthened their presence in this, infrastructure such as communal
working in Malaysia. In 2016, 82% the Greater KL through InvestKL,
of EP applications processed by highlighting the unique factor that
MYXpats were approved within its Greater KL possesses as both an
five-day client charter.
The Residence Pass-Talent (RP-
economy and a livable destination.
Among the many initiatives
Through the
T) meanwhile, is an initiative by
TalentCorp and the Immigration
planned and designed to elevate the
liveability of Greater KL/KV to greater
Scholarship Talent
Department which enables highly
qualified expatriates to stay and
heights is the ambitious River of Life
project. Planned for completion by
Attraction and
contribute in the longer term to
Malaysias economic growth. 1,234
2020, this project aims to clean the
Klang River and its tributaries to Class
Retention (STAR)
expatriates were approved for the
RP-T in 2016.
IIB (safe for recreational activities)
and at the same time revitalise
programme, 1,217
underperforming areas, particularly
Government-funded
Enhancing the Beauty of
riverbanks and surrounding sites into
urban hotspots booming with cultural
graduate scholars
Greater Kuala Lumpur
and commercial activities along a 10.7
km stretch of the Klang and Gombak
successfully served
and Klang Valley
rivers.
Comprehensive efforts have been
channelled towards river cleaning
their bond of service
It is important for a growing
metropolis like Greater KL/KV, which
and improving the sewerage and
drainage systems. The year 2016
by working in MNCs,
is expected to reach a population of
10 million by 2020, to have sufficient
has seen improvements of water
quality index (WQI) at two water
GLCs or established
green space for its residents. As
backed by multiple scientific studies,
quality monitoring stations. Since
the beginning of the ROL, the WQI
Malaysian companies.
greener environments can improve readings at the Klang and Gombak

grease traps, flood retention ponds,
log booms, river water treatment
plants, waste water treatment plants
and sullage water treatment plants
have been completed and are helping
to filter and clean the waste water
being discharged into the rivers.
Sewage pipes have been replaced,
upgraded, extended and new ones
have been built while sewage plants
have been rationalised, upgraded or
new and larger ones are being built
to cater for a growing population. All
this is done to achieve the target of
Class IIB by 2020.
The second portion of the ROL
project, comprising river beautification
at Precinct 7 Phase 1, reached 84.5%
completion during the year despite
challenges in procuring materials
and resource management. A major
milestone for the river beautification
project is the completion of the four
interceptors in the Heritage Quarter.
The four interceptors capture sullage
The launch of Tescos park adopted in Dec 2016 in Bandar Manjalara,
discharged by businesses within Kepong, Kuala Lumpur.
the area and clean it to ensure the
discharge is class IIB water. Phase 2
at the surrounding areas of Dataran Persekutuan Kuala Lumpur. Each attract the private sector to adopt
Merdeka, Jalan Tun Perak, Jalan Tun tree sponsored is an embodiment local parks. In return for assistance
Tan Cheng Lock, Jalan Masjid India, of residents ownership and provided towards the parks general
Dang Wangi, PWTC and Brickfields commitment in making Greater KL/ upkeep and maintenance, companies
were awarded in late 2016. The KV a greener, more sustainable city. enjoy corporate tax exemption.
remaining package, Titiwangsa Park, Yayasan Hijau Malaysia and Currently, four parks under this
is expected to be awarded by the first InvestKL have played a vital role in initiative are in various stages of
quarter of 2017. spearheading this initiative, providing construction.
Another initiative under the awareness on green tax incentives Further efforts to enhance the
Greater KL/KV NKEA tracks the provided by the Ministry of Finance overall attractiveness of Greater KL/
number of trees planted by sponsors through Yayasan Hijau Malaysia to KV include the establishment of
and has made Greater KL/KV home participating companies. In support of iconic landmarks and attractions.
to thousands of new trees. Despite this initiative, as many as 15,636 trees Following this, three Heritage Trails,
lacking direct funding from the have been sponsored by companies comprising guided pedestrian walks
Government, a partnership between through DBKLs One Stop Centre, as through landmark sites such as
DBKL, Yayasan Hijau Malaysia and a part of development orders (DOs) Dataran Merdeka, Medan Pasar and
corporate citizens such as ThinkCity that requires developers to provide Central Market have been introduced
has proven fruitful and attracted many green spaces in their development since 2013. DBKL has conducted a
sponsorships. This collaboration the plans. study on the trails which showed
first public-private sector partnership Following successful park that the rental rates of premises
of its kind has resulted in the adoption implemented in many located along the Heritage Trails have
planting of 3,303 new trees, with the major cities around the world, a park increased 50% and in 2016, the trails
top contributors being MRT Corp adoption or sponsorship programme received 31,477 visitors, exceeding the
and Jabatan Perhutanan Wilayah was initiated with the aim to invite and targeted 24,000 visits a year.
INVESTKLS FOCUSED EFFORTS

ATTRACT MNCs TO MALAYSIA
The CEO of InvestKL, Datuk Catering to the needs of MNCs shorten clearance time from eight hours
Zainal Amanshah, believes in three means catering to the needs of its to just one hour.
things: effective communication, the people. Greater KL/KV offers a wide Yet the work is not without its unique
significance of word-of-mouth referrals variety of appealing neighbourhoods challenges. They [investors] dont like
and the importance of being proactive and a strong expatriate community, who surprises, Datuk Zainal notes. Therefore,
at work. These factors are the reasons are also attracted to Malaysias tourism when various Government agencies make
behind InvestKLs success in drawing sector and affordable healthcare new changes in policies and procedures,
multinational corporations (MNCs) to set services one of the best in the world. [InvestKL takes the initiative to] provide
up new regional operations in Greater The Governments enhanced efforts to clarity on how those changes will affect
Kuala Lumpur and Klang Valley (Greater increase liveability via additional rail their operations in Malaysia.
KL/KV) a task it has embarked on since lines and the River of Life (ROL) project The true impact of InvestKLs work
2011 but faced challenges in achieving in also show commitment to continuous is far-reaching. Aside from direct job
2016 due to the slow global economic progress. creation, the organisation also engages
environment. We have cases where retired with universities. InvestKL works with
Despite the odds, it can boast that expatriates choose to remain in reputable universities like University of
it is directly responsible for the opening Malaysia after their tenure, reveals Malaya (UM) and Universiti Teknologi
of 1,862 new positions in 2016, against a Datuk Zainal. Some expatriates living Petronas (UTP) to channel students
goal of 600, as it succeeded in attracting here also actively promote Malaysia to as interns for MNCs operating in
all 13 of the new MNCs it targeted to their friends, families and colleagues. Malaysia. Some of them are absorbed
bring in to Greater KL/KV this year. The Their word-of-mouth referrals are the into the MNCs workforce, says Datuk
numbers were hard-fought, especially truest form of testimonial we try to Zainal. There are also MNC-university
given prevailing economic conditions, collect them for our case studies. collaborations that resulted in positive
with many companies taking a wait- R&D. One research effort created non-
and-see attitude towards investment. WORKING WITH STAKEHOLDERS concrete cement that can reduce the
We prayed a lot, jokes Datuk Zainal. Tasked with a role that requires cost of house-building, while another
However, we believe that the true extreme tact and transparency created a more efficient type of
potential of Malaysia as an excellent between high-level stakeholders, Datuk biomass.
operational hub revealed itself [to the Zainal and InvestKL sits on multiple
MNCs]. 2016 was an exciting, if tough Steering Committees. He believes the THE MODEL THAT WORKS
year for us. As a country, we are very sessions are important. We engage in a With three years to go to 2020,
blessed [with what we have to offer]. lot of clarification sessions on behalf of Datuk Zainal reaffirmed InvestKLs
There is indeed much to shout out MNCs and actively push for favourable commitment to hitting the big goal: 100
about Greater KL/KV and Malaysia. policies that can ease their set-up MNCs setting up regional operations
Feedback received from existing process here in Malaysia. For example, in Malaysia. The service-focused
investors is overwhelmingly positive: we are working to streamline processes approach will be continued for a simple
business-friendly policies, a strong talent with the Immigration Department of reason it works.
pool, low and consistent operating costs, Malaysia, so that expatriates can enjoy Going forward, we plan to remain
interesting culture and heritage, and more efficient services. Our plan is to targeted and proactive, says the
stability of government all contribute make the services as simple as plug CEO. We will work with alliances that
towards MNCs decision-making and play [automated], he explains. provide services to MNCs, such as tax
process. Being the main point of contact and advisory firms. We plan to provide
Other factors that make Malaysia for MNCs looking to set up operations support to Government agencies like
favourable as an operational hub here in Greater KL/KV has also required MITI, DBKL and the Ministry of Federal
include strong IP laws, good regional InvestKL to play its role in providing Territories so that the ease of doing
location with easy access to ASEAN and effective interventions. The organisation business here is better. We will also
Asian countries, as well as the planned takes feedback seriously and takes compile more testimonials and case
high speed rail between Malaysia and proactive actions in providing solutions, studies from existing MNCs to help
Singapore and the planned East Coast which range from customs to talent promote Malaysias good name. This
rail line. The protective laws and ease acquisition to tax and accountancy will strengthen the believability of our
of connectivity are good foundations services. In one example, InvestKL claim - that Malaysia is an excellent
for businesses operating from Malaysia, assisted Schlumberger the worlds location for MNCs to operate from in
says Datuk Zainal. largest oilfield services company - to this region.

MOVING FORWARD With many initiatives under this the quality of the local talent pool
NKEA well under way, the gears are that will spur a ripple effect of
in motion for the continuation of attracting more MNCs to Greater KL/
Greater KL/KVs progress towards KV. With the ultimate aim of securing
becoming a world-class city by 2020. 100 MNCs by 2020, despite external
The successes achieved so far have challenges, InvestKL is poised to go
brought to forefront the strength, forward strong in attracting more
resourcefulness and the power of MNCs to Greater KL/KV even beyond
collaboration among all stakeholders. 2020.
With the commencement of Phase 1 of the River of Life project
phase one from Sungai Buloh to at the Heritage Quarter along with the
Semantan on 16 December 2016, the collapsible weir which acts as a dam
full implementation of the MRT Line to raise the water level of the Gombak
1 project which extends from Sungai and Klang rivers is scheduled to be
Buloh to Kajang will be completed in completed in Q3 2017. The completion
Q3 2017, with the full line to serve a of the first phase would hopefully
corridor of up to 1.2 million people. herald a paradigm shift in the rakyats
MRT Line 2 will connect the existing attitude towards preserving the
Sungai Buloh station, pass through beauty of the rivers. When the project
Serdang and end in Putrajaya. is fully completed by 2019 it is hoped
Construction work has started that the River of Life can be on par
and remains in progress, with its with other world-renowned river
completion targeted for Q2 2022 and transformation projects such as the
is expected to serve a corridor of 2 Cheonggyecheon in Seoul.
million people. Moving forward, the momentum
Having secured 64 companies towards improving Greater Kuala
to date since 2011, InvestKL remains Lumpur and Klang Valley towards
focused on securing companies that becoming a truly world-class city
provides opportunity for high value continues unabated. With the
jobs to enable Greater KL/KV to partnership of all stakeholders and
move up the value chain and stay the rakyat, this is certain to become a
competitive. This, in turn, increases reality.
OIL, GAS & ENERGY
DATUK SERI
PANGLIMA DR.
MAXIMUS ONGKILI
Minister of Energy, Green
Technology and Water
The global oil market experienced

unprecedented volatility in the 2014-2015
period, as a supply glut placed downward
pressure on global oil and gas prices.
However, this scenario has not detracted
from the Governments aspiration to
sustain domestic production, while also
aspiring to grow the industry through new,
high-value activities.
A heartening development in this era of
low crude oil prices is that more innovation
is being embraced in the development and
production of oil, as the industry works
to reduce oil production unit cost. The
end game is a stronger, leaner oil and gas
industry that can better withstand the
future vagaries of the industry and global
economy.
The Government also remains mindful
of the impact of the utilisation of fossil
fuels on the environment, amid concerns
on climate change. As such, we will
continue efforts to decarbonise our
economic growth by gradually shifting
from the use of conventional fossil fuels
towards renewable sources. This is in
line with our commitment to the 21st
Conference of Parties (COP 21) in Paris,
where we have targeted to reduce carbon
emission intensity by 45% by the year
2030, relative to our carbon emissions
intensity in 2005. The Government had
also committed to meet the stipulated
renewable energy target of 23% by 2025,
through the implementation of Large
Geared for
Scale Solar (LSS) and Net Energy Metering
(NEM) in addition to the continuation of
the Feed-in Tariff programme.
Sustainability
In the years to come, the Government,
in partnership with the private sector,
will continue to strive to establish a more
robust energy infrastructure, diversify
Malaysias sources of energy, and shift
towards market-based energy pricing.
OIL, GAS & ENERGY

being made in preparation for Net
Energy Metering (NEM) and Large
Scale Solar (LSS) Initiatives in 2017.
Ensuring the Nations

Energy Security
The liberalisation of the gas market
has been among the NTPs key focus
areas, with the Economic Planning Unit
and Energy Commission (Suruhanjaya
Tenaga ST) spearheading initiatives
to enable a competitive gas pricing
environment to benefit consumers;
promote sustainable usage of energy
to support growth; introduce market
pricing for gas to attract new industry
players; and encourage more efficient
use of resources.
Regasification Terminal at Sungai Udang, Melaka.
The effort is also expected to
strengthen the countrys energy
security and enhance economic
growth for the rakyats prosperity and
OVERVIEW their gas supply. Thus far, Petronas has

been the sole supplier of gas in the
market. With the Third Party Access
well-being. Following the shortage of
domestic piped gas in 2008, the need
for energy security has indeed been
The oil, gas and energy industry (TPA), other suppliers can join the gas evident. The gas market liberalisation
contributed to 14.5% of the countrys market and supply gas at competitive initiative has seen the implementation
GDP in 2016. As for Government prices. of key building blocks such as the
revenue, only 14.7% attributed to At the same time, downstream development of LNG import facilities,
oil & gas revenue. This, despite the projects such as the Pengerang with efforts in 2016 focused on
current low oil price, is testament to Integrated Complex (PIC) and completing the framework for Third
this NKEAs success in diversifying Pengerang Deepwater Terminal (PDT) Party Access (TPA).
the countrys oil and gas activities. continue to act as game-changers The TPA will allow third parties to
Overall, the NKEA achieved 98% of for the countrys oil and gas industry, access and utilise regasification (LNG
its KPIs in 2016. As at the end of 2016, creating new avenues for the industrys import), transmission and distribution
the NKEA contributed RM179.7 billion growth. This has started the ball rolling facilities. With the amendment of the
in GNI and generated RM411.5 billion in in the nations interest to diversify Gas Supply Act 1993, STs role will also
investments. the upstream and downstream, to be strengthened to include regulating
The success is reflected upon create a better balance in the oil and the tariff for utilising regasification
PETRONAS adoption of a prudent gas industry. In addition, due to the terminal, transmission pipeline and
stance in evaluating projects. As continuous pressure to cut cost in the distribution pipeline to ensure a level
the main driver of upstream-related upstream side of the business, Oil & playing field for the implementation
activities, the national oil company Gas Services and Equipment (OGSE) of the TPA initiative. The amendment
has placed more focus on cost control companies are responding through to the Act received royal assent in
to determine project viability. innovative processes and technology August 2016 and was gazetted in
The Government is committed to help reduce costs. September 2016, with implementation
to create an efficient domestic gas Another encouraging development scheduled for January 2017. Key
market in order to provide consumers in energy policy this year is centred instruments such as the amendment
competitive choices of the source of on sustainable energy, with progress of relevant regulations, regasification
OIL, GAS & ENERGY
As of 20 October 2016, Pengerang Deepwater Terminal (PDT) has received more than 758 vessels with a total of
five Very Large Crude Carriers (VLCCs).
transmission and distribution gas from local sources as well as LNG segment is working towards capturing
codes, guidelines and online license imports. A robust gas market will also more value through the adoption of
application have also been put in catalyse new industries, creating new world class facilities such as that at the
place. revenues for the country. Pengerang Integrated Complex (PIC).
In May 2013, PETRONAS The Pengerang Integrated
Diversifying Towards
commenced the operation of the Petroleum Complex, which houses
first regasification terminal (RGT) in the Pengerang Integrated Complex
Downstream
Sungai Udang, Melaka. PETRONAS is (PIC) and Pengerang Deepwater
also currently building a second RGT Terminal (PDT) represents the single
in Pengerang, which is expected to largest downstream/infrastructure
commence operations in the fourth Following the move to diversify the investment project in Malaysia, with
quarter of 2017. oil and gas sector, the downstream its anchor investors PETRONAS (for
The implementation of the PIC) and DIALOG (for PDT) expected
gradual regulated gas price revisions to invest approximately RM128 billion
towards market-reflective pricing for in total.
the power and non-power sectors
continued at an encouraging pace in
The PIPC represents DIALOG has completed 1.3 million
cubic metres of oil storage capacity
2016. The initiative is equally crucial
to encourage the development of
the single largest under the first phase of PDT and is
well on track for phase two of the
challenging gas fields in Peninsular
Malaysia, which have yet to attract downstream oil/petroleum terminal. As of 20
October 2016, PDT has received more
viable investment due to the existing than 758 vessels with a total of five
regulated pricing. infrastructure Very Large Crude Carriers (VLCCs)
Malaysias continued economic and has handled a total of 19 million
growth is expected to drive further investment project in metric tonnes (discharge/load) of
demand for natural gas, which powers petroleum products.
more than 40% of the countrys
electricity production. This will require
Malaysia. Meanwhile, PETRONAS PIC is
progressing on schedule and has
a diverse, stable and secure supply of achieved 50% completion at the end
OIL, GAS & ENERGY

of 2016. In sourcing for the best proven the awarding of an engineering, development, PETRONAS also
technology to ensure the highest procurement, construction and invested in the development of the
efficiency of the PIC development, commissioning (EPCC) contract Pengerang Co-generation Plant,
PETRONAS has recorded several for Malaysias first automated one of six associated facilities within
milestones throughout the year, warehouse for polymer products. the PIC. This plant will be one of the
including: largest co-generation power plants
The PIC is one of the largest oil and in the region, using Siemens latest

the arrival of the tallest and gas industrial developments in this H-class gas turbine technology
heaviest propylene fractionator region, as well as PETRONAS largest together with a unique dual steam
process column on the shores downstream investment to date. It turbine configuration to ensure
of Malaysia on 25 June 2016. consists of a 300,000 barrels per the highest efficiency. Apart from
The installation of the column at day (bpd) refinery and petrochemical generating power, it will also produce
PICs Steam Cracker facility was plants designed to produce premium steam for utilisation within the PIC.
officiated by the Prime Minister differentiated petrochemicals. Not Slated for completion mid-2017, the
on 5 December 2016; only will it meet domestic demand for 1,220 MW co-generation plant will
petroleum products and the Malaysian provide a total of 600 MW of power to

the successful installation of governments future legislative the national grid, while the remaining
the heaviest diesel hydrotreater requirements on the implementation will be used for the PIC.
(DHT) reactor for its refinery on of Euro5 specifications for petrol and Another PETRONAS facility,
21 September 2016, an important diesel, but it will also capitalise on Projek Air Mentah RAPID (PAMER),
component for the production the growing need for petrochemical was fully completed and commenced
of Euro5 Diesel, which will products in Asia in the next 20 years. operations on 18 July 2016, currently
be enforced in Malaysia by Apart from the refinery channelling 30 million litres per day
September 2020; and and petrochemical integrated (mld) to the Sungai Lebam reservoir
to supplement the Johor States
existing water supply for public
consumption in addition to supplying
230 million litres per day (mld) of
water to the PIC.
In the long term, the PIC is
expected to provide reasonable
returns, thus it is important for
PETRONAS to ensure effective
execution of the project delivery. The
PIC will not only expand PETRONAS
existing business portfolio, but also
act as catalyst for further investments
and create a multiplier effect on the
nation. The PIC is poised for overall
start-up in early 2019.
Effective Coordination
at All Levels of
Government
To further support private investment
in the in Pengerang Integrated
The YAB Prime Minister officiating PICs steam cracker facility on 5
December 2016. Petroleum Complex (PIPC), the
Federal Government together with
OIL, GAS & ENERGY
the State Government has planned Planning Unit and the Johor State Gas Services and Equipment (OGSE)
for 25 critical PIPC infrastructure Government Office. companies to explore opportunities
projects worth approximately RM2.49 The governance structure was to enhance their competitiveness
billion as part of the 10th and 11th adopted from the implementation of and prepare for the next upcycle
Malaysia Plans to meet the need for the MRT project, which was effective upon recovery. This may be achieved
utilities, facilities and amenities at in driving integration and alignment through consolidation or increased
PIPC. This includes the installation between different project owners. As investment to become owners of
of a comprehensive network of of 30 October 2016, seven out of 25 technologies. In 2016, the OGSE sector
power, telecommunications and Federal project work packages for has done well in its achievement of
water supply, upgrading of roads to infrastructure and public amenities EPP targets.
highways to facilitate movements of surrounding PIPC have been One of the encouraging progresses
goods and services and the creation completed, with all projects expected in 2016 is the achievement of RM650
of a centralised management system to reach full completion by 2020. million in committed investments
for the effective and efficient removal Additionally, with the from both local and international
of industrial waste products from the establishment of a dedicated OGSE companies. Investments have
complex. Programme Management Team been secured towards the Sungai
The Federal Project Steering under JPDCs Capital Economys Rengit Industrial Park Phase 1, the
Committee (FPSC) chaired by Tan Sri umbrella, 31 packages of Federal WEG Groups Centralised Southeast
Dr. Ali Hamsa, the Chief Secretary to and State Government projects are Asia Warehouse, the Asian Supply
the Government, has been tasked with being monitored concurrently under Base Sdn Bhd purchase of equipment
driving the delivery of these projects internationally-recognised standards for its proposed new quay wharf
and has proven success in building of Project Management Institute. The and the development of supporting
the momentum and providing the monitoring procedures enable JPDC infrastructure for the Sipitang Oil
support needed to Johor Petroleum to facilitate clients in mitigating their and Gas Industrial Park. Apart from
Development Corporation (JPDC), risks, problem-solve and ensure the that, 46 companies had hitherto
the implementing agency for the timely completion of the project. placed bids for projects in new
development of the infrastructure For example, Klinik Kesihatan Taman market segments and/or countries,
and public amenities, as well as to Bayu Damai was able to commence as part of the national target to take
nine other implementing Federal operations less than one month local OGSE companies to the global
Ministries, and Federal/State support after completion by the project market. This is close to the target
agencies such as the Implementation implementer. of 60 companies to be achieved by
Coordination Unit (ICU), Economic JPDC also plays an important 2020. The achievements during the
Planning Unit (EPU), National Audit role in securing investments to year were supported by specialised
Department, Johor State Economic realise PIPCs vision as an integrated marketing missions to Kazakhstan,
downstream oil and gas hub through Vietnam, Iran, Brazil, Bahrain and
the establishment of three additional Indonesia , among others. Of note,
The Federal and State industrial parks within PIPC in 2017.

The additional investments are crucial
five new companies were registered
with PetroVietnam subsidiaries after
Governments have to accommodate future downstream

and support services.
the Vietnam marketing mission, while
SIRIM QAS International Sdn Bhd
successfully established its Bahrain
planned 25 critical
Enhancing the
outpost with the assistance of the
Bahrain Economic Development
PIPC infrastructure
Competitiveness of
Board, Malaysia Petroleum Resources
Corporations (MPRC) MOU partner.
projects worth
OGSE companies
MPRC has also been putting
in effort to attract MNCs to set up
approximately RM2.49 operations in Malaysia and partner
The challenging operating with local firms. To date, seven MNCs
billion. environment is expected to continue
in the mid- to long-term. This has
have received assistance since 2012
to establish their global/regional
served as a crucial impetus for Oil & operations in Malaysia, while 26 MNCs
OIL, GAS & ENERGY

Malaysia Petroleum Resources Corporation MPRCs Innovation Pavilion at MOGSEC 2016.
have formed joint ventures or merged engineering services, power Imaging Technologies to provide
with domestic MNCs. 46 international and automation, established its advanced core analysis and
OGSE companies that have relocated regional HQ in Malaysia in 2016. Nuclear Magnetic Resource
their regional HQs or engineering (NMR) services.
centres to cost-competitive countries, The year also saw partnerships
such as Malaysia, include: being established between local and Going forward, it is imperative for
international OGSE firms, namely: companies operating in the OGSE

McDermott International, which sphere to continuously ramp up their
designs oil production facilities and SNC-Lavalin & Bizworth Sdn Bhd competitiveness to ensure optimum
provides engineering solutions. for the provision of modular gas leanness and agility to respond
The company completed its move services equipment; quickly to changing conditions in the
from Singapore to Kuala Lumpur highly dynamic industry. Continued
in mid-2016; J&E Hall & Rasma Corporation Sdn support from the Government to
Bhd for the provision of specialist promote Malaysia as a regional

Fulkrum Technical Resources, refrigeration solutions; and OGSE hub has gone a long way
specialising in the provision of Onyx Engineering & Green to assist these companies in this
QA/QC and inspection personnel
in upstream and downstream oil
and gas, established its regional
presence in Malaysia to provide
QA/QC services to players in
MPRC has also been putting in effort to attract
Malaysia and the Asia Pacific
region; and
MNCs to set up operations in Malaysia and

Brazil-based WEG Group,
partner with local firms.
specialising in electrical
OIL, GAS & ENERGY
PIPC A MEGA PROJECT

THAT BENEFITS MALAYSIANS OF ALL LEVELS
Pengerang, a district in Kota Tinggi
Johor, is also known as a small customs
cum immigration post. Blessed with many
natural resources, sea life and unique
landforms, it is a well-known seafood
destination and has a beautiful seacoast.
Once a sleepy town home to mainly
farmers and fishermen, Pengerang
became tipped for modernisation with its
selection by theJohorState Government
as the site for a catalyst project for
rural transformation: The Pengerang
Integrated Petroleum Complex (PIPC)
mega project under the Oil, Gas and
Energy NKEA.
PIPC represents a giant step in Signing ceremony between JPDC and SME Bank, SME Corp, CGC & Teraju
adding value to the downstream oil and on SME Financial Assistance for Pengerang SMEs.
gas value chain in Johor and Malaysia,

occupying a single plot measuring major changes within Pengerang itself. comprehensive growth and development
20,000 acres. When completed, it will In 2014, some 400 households were of Pengerang.
have the oil refining capacity to produce 1 relocated from the village to a new Another local resident, Puan
million barrels per day, 11.8 million tonnes township called Taman Bayu Damai. Hasnah binti Mahmood says she too has
of petrochemical products per annum, The new township provided the village benefited tremendously from the PIPC.
5 million cubic meters of oil storage folk with new housing and facilities such A small trader who sells her sewing in
space, and 3.5 million tonnes of LNG as health clinics, a fishermens complex, Pengerang, she managed to participate
regasification capacity per annum. schools and community and daycare in a tender to supply upholsteries for the
Currently there are two investors centres. The village chief, Tuan Haji Mohd living quarters of the PIC and PDT. Her
within the PIPC project, Petronas, which Khairdir bin Ismail says, This has been success in winning the bid has changed
is developing the Pengerang Integrated the most efficient village relocation plan. her socioeconomic status, and she
Complex (PIC) and Dialog Group The residents now enjoy a well-built expects her business to expand further
Berhad, which is building the Pengerang township, equipped with modern and with the proposed establishment of a
Deepwater Terminal (PDT), both housed orderly public amenities. Infrastructure camp for the complexs 22,000 workers
at PIPC. These two key players focus and drainage systems are more efficient is set up.
on the core activities of the project: now; the villagers no face flooding or Puan Roszana binti Johari, who runs
naphtha crackers, power plants, LNG infrastructure problems. a food shop in Pengerang, also says her
storage tanks, oil storage tanks, refineries, Tuan Haji Mohamad Khaidir Ismail shop has been increasingly busy. Her
regasification plants, and petrochemical also highlights that with the rapid business volume has doubled in the last
plants. Johor Petroleum Development development of the PIPC, abundant job one year. My coffee shop is now many
Corporation Berhad (JPDC), a subsidiary and business opportunities have emerged times busier than a year ago. I have to
of MPRC, which is mandated to transform for the local residents. Household income hire more workers to cook, to clean, wash
Johor into a sustainable world-class has naturally increased over the last and to serve at the tables. She also notes
downstream oil and gas hub, oversees two years. Living standards have also that more new businesses are opening in
the project. improved along with their quality of Pengerang, as new housing is built for the
In line with the construction of PIPC, life. Tuan Haji Mohd Khairdir himself workers involved in the PIPC project, and
planning and building new townships has set up new businesses to meet the the once-quiet township on the southern
within Pengerang became the next focal supply chain needs of the PIPC, with tip of Johor becomes more vibrant.
activity. Development came alongside these opporunities further leading to
OIL, GAS & ENERGY

respect. More extensive industry
research and international trade
missions with agencies like MIDA,
MATRADE and MITI will also provide The implementation of energy efficiency
a much-needed boost to the sectors
efforts. initiatives will also catalyse new technological
adoptions in Malaysia.
Strengthening Energy
Sustainability
MWh/year (RM300,000/year), with to make this effort sustainable in
In 2016, the Government a reduction of almost 1,000 tonnes of the long term, there must be clear
conducted energy audits and carbon dioxide emission. business case for proceeding in
retrofitted buildings with energy- This initiative is also hoped to energy efficiency investments.
efficient cooling and lighting systems spur the private sector to adopt the The implementation of energy
as well as implemented efficient same approach as well as encourage efficiency initiatives will also catalyse
energy management practices. Eight energy companies to tap into new technological adoptions in
Government buildings (Parcels B1-B8) opportunities for energy efficiency Malaysia such as the use of high
were identified as having an average in the global building sector. To efficiency chillers, utilisation of smart
annual electricity consumption of accelerate the rate of implementation, sub-meter systems as well as energy
15,253 MWh/year in the period of the Government provides conditional efficient appliances. This provides a
2013-2015. The retrofitting exercise, grants for companies to implement win-win situation for building owners
which commenced in September energy efficient measures, and thus and the Energy Services Companies
2016 and costing RM6.9 million, will far the response from the commercial (ESCO) to develop capacity in energy
yield an expected savings of 1,342 sector has been welcoming. However, management as well as the adoption
Large-Scale Solar panels.

OIL, GAS & ENERGY
of the Energy Performance Contract

(EPC) and International Performance
Measurement & Verification Protocol
(IPMVP) concepts. These upgrades
such as those done in government
hospitals will also improve the
working conditions and the level of
comfort of the public and staff.
Under the 11th Malaysia Plan,
to incentivise energy-intensive
industries to implement energy-
efficient measures to reduce their
operational costs, KeTTHA has
reduced the Special Industrial Tariff
(SIT) by 2%.
EPP 10: Building Up Renewable
Energy and Solar Power Capacity
supports existing initiatives such as
those under the 11th Malaysia Plan
where renewable energy capacity
is expected to reach 2,080 MW by
2020, contributing to 7.8% of the
total installed capacity in Peninsular
Malaysia and Sabah. The Feed-in Tariff
Programme (FiT) was continued YB Datuk Seri Panglima Dr. Maximus, KeTTHA Minister and YBhg Datuk
to promote the contribution of FiT Seri Ir. Dr. Zaini Ujang visit to IGEM 2016.
renewable energy sources to the
national energy grid. A cumulative
total of 412 MW has been generated
as of November 2016, representing
a 103% achievement of the targeted The NEM programme is the first of its kind in
400 MW for 2016. This programme
has also made Malaysia the third- the region, allowing electricity generation from
largest producer of Photovoltaic
(PV) panels in the world. solar PV.
In order to expand the renewable
energy agenda in Malaysia, the Net
Energy Metering (NEM) and Large
Scale Solar (LSS) programmes actively promoting this to domestic, Meanwhile, the LSS programme
were introduced in 2016. Launched commercial and industrial consumers. is also crucial for Malaysia to
in October 2016 and implemented The NEM programme is an accelerate renewable energy growth,
in November 2016, the NEM inclusive initiative to encourage in line with the target to achieve
programme is the first of its kind the participation of households 1,000 MW in energy generated from
in the region, allowing electricity and businesses in the nations renewable sources by 2020. ST has
generation from clean energy via green agenda while contributing to been entrusted by the Government
solar PV self-consumption and power generation. Under the NEM to implement the LSS programme,
the sale of excess energy to utility programme, the Government targets which invites the private sector
companies which results in savings to achieve 90 MW/year for Peninsular to build, own and operate LSS PV
in consumers electricity bills. The Malaysia and 10 MW/year for Sabah plants to supply and sell energy to
Sustainable Energy Development and Labuan in power generation the utility companies under long-
Authority of Malaysia (SEDA) and from 2016 until 2020, amounting to a term power purchase agreements.
Energy Commission (ST) have been total of 500 MW.
OIL, GAS & ENERGY

PETRONAS first Floating Liquefied Natural Gas (PFLNG Satu) facility.
MOVING FORWARD Although oil prices have surged Amid various challenges
to a 17-month high in December projected in 2017, the Government,
2016 after OPEC and non-OPEC in partnership with the private sector,
producers agreed to reduce output will continue the efforts to ensure
in a landmark deal, it has yet to be the robustness of Malaysias energy
seen whether oil prices will bounce infrastructure. Efforts to diversify the
back in 2017 or maintain its new countrys sources of energy and the
norm. Nevertheless, Malaysias oil, move towards a market-based pricing
gas and energy industry continues will remain in the agenda. The coming
to be in a position of strength year will focus on the implementation
and in the year ahead will steadily of the TPA with the completion of
build stronger foundations for the the second regasification terminal
countrys energy and economic in Peninsular Malaysia located in
landscape. Pengerang.
WHOLESALE & RETAIL
DATO SERI
HAMZAH ZAINUDIN
Ministry of Domestic Trade,
Co-Operatives and Consumerism
The Malaysian wholesale and retail sector

experienced timely and rapid growth in 2016.
The accelerated development pushed forward
through well-placed policies and initiatives from
the public and private sector, has softened the
effects of depressed commodity prices and slowing
economy. Years of dependency on the oil and gas
sector would have exposed us to tough challenges,
yet the Malaysian economy remains stable, resilient
and strong.
As evidenced by other oil-producing nations
which suffered high inflation and stagnated growth,
it is important for Malaysia to explore, diversify
and retain multiple revenue channels. Investments
in the retail sector have paid off; the wholesale
and retail sector has grown by an average of 10%
per annum since the start of ETP and now consist
15.15% of the total GDP, overtaking the Oil, Gas and
Energy sector as the single largest contributor to
Malaysias Gross Domestic Product (GDP).
The strong growth pattern is expected to
continue, driven by opportunities availed under
developments within Large Format Growth
and E-Commerce. Additional impetus from the
Government in the form of the recently-announced
Budget 2017 included measures designed to
increase disposable incomes generated by
Malaysians, which in turn supports private
consumption.
Indirectly, Government initiatives in place
that result in high online penetration among
Malaysians has also paid off. According to data,
Transforming
we can expect the revenues from e-commerce
retail to grow steadily at a rate of 23.7% annually
until 2021. Such robust demand has created a
the Shopping
thirst for new innovations in retailing practices and
payment channels that ultimately benefit everyday
Malaysians.
Eco-System
WHOLESALE & RETAIL

Traders, including small store
operators play an important role
in fulfilling domestic consumption
demand. We are thankful for the
media, which helped to highlight
success stories as well as inspire many
Malaysians towards entrepreneurship
activities. Assistance to small
retailers through the TUKAR and
ATOM programmes saw evidence of
self-sustaining SMEs that has made
themselves attractive to consumers,
which resulted in increased profits
and better livelihoods.
Let us continue and contribute to
this positive trajectory.
Makan Bazaar at Medini Mall, Johor Bahru.
OVERVIEW
Six years since the implementation
of the Wholesale and Retail
National Key Economic Area
(NKEA) initiatives, Malaysians
have embraced the traditional and
digital retail sector with open arms. Wholesale
& Retail
The abundance of retail choices

afforded to both locals and tourists Total
have significantly contributed to the

growth of the Malaysian economy.
Investments made in the
wholesale and retail sector totalling
RM6.4 billion (as of 2016) in various
initiatives have created a robust At the same time, small and Second only to China and
economic environment for both medium businesses were not India, Malaysia was ranked third
buyers and sellers. About half of ignored. We have seen how the in the 2016 AT Kearney Global
the investments were channelled for NKEA efforts have transformed the Retail Development Index (GRDI),
Large Format Growth (RM3.1 billion), livelihood of everyday Malaysians, its highest rank to date and up six
contributed by the establishment including the economically places since 2015. In fact, Malaysia
of seven new hypermarkets and vulnerable. In particular, small was ranked 17th prior to the
12 new superstores. Not only had grocery retail stores greatly implementation of NTP in 2010. This
we exceeded the target of Large benefit local communities as it big improvement is a testament to
Format Growth, LuLu Group, a provides affordable shopping the effectiveness of NKEA efforts.
major retail player in the Middle East choices, convenience, and local job Currently, Malaysia is described
opened its first premise in Malaysia. opportunities. as the most business-friendly
environment among Southeast
Asian countries ranked in the GRDI.
WHOLESALE & RETAIL
amaxMALL:
THE UNIQUELY MALAYSIAN VIRTUAL MALL
can do what they do best: making great and health products, the sleek website
products and services, she explains. also offers discounts to Malaysian-
The platform offers cost-effective owned restaurants, ticketing services
digital stores and services to small and and various electronic products. Afdlin
medium-sized businesses in Malaysia. Shauki-owned Comedy Planet and
The amaxMALL team helps in setting Old Market Square Cafe are listed in
up e-stores, providing design and amaxMall as well, and we are working
photo-enhancing services in addition on amaxShoppe for halal products, she
to offering professional product photo adds.
shoots, manages payment gateways and In 2017, amaxMALL will focus on a
deliveries, provides consultancy services, leading pain point for online retail: tough
organises seminars and workshops and competition online. We are going to
produces promotional content on behalf concentrate on our digital marketing
of the SMEs. The direct result is wider efforts to attract more buyers. We will
customer reach and thus increased use social media and produce video
potential revenue for Malaysian content that target our desired audience:
entrepreneurs using the platform. people who love and consume Malaysian
The shift towards becoming an products and services. For example,
e-commerce platform will also encourage as you know, it is not uncommon for
the adoption of cashless transactions, Malaysians to travel great distances for
a positive step towards higher digital a taste of region-specific flavours. We
economy penetration in Malaysia. As simply make that access easier with
opposed to potentially unsafe direct amaxMALL now they can buy them
Datin Dr. Nik Sarina Hashim payments to bank accounts, amaxMALL online.
amaxMALL CEO retailers and consumers will enjoy At the same time, we will also work
increased trust, convenience and safety with retailers some of whom are from
amaxMALL is a virtual mall catering via trusted online payment gateways. rural areas to improve their branding.
to domestic and non-domestic Malaysian Good copywriting and professional-
consumers, but with a very clear and Helping the Little Guys looking store images help boost sales as
distinct advantage. We proudly offer Datin Dr. Nik Sarinas passion in well, adds Datin Dr. Nik Sarina, noting
hand-picked, high-quality, uniquely nurturing and providing an enabling amaxMALLs potential to boost local
Malaysian products and services, says environment for Malaysian SMEs shows. economies.
amaxMall CEO Datin Dr. Nik Sarina 500 merchants currently enjoy a digital Undeterred by new, complicated
Hashim. presence in amaxMall without the large challenges that pop up in the running
amaxMALL started as an initial investment commonly required in of an e-commerce platform, Datin Dr.
e-marketplace in June 2015, but setting up online stores. The virtual mall Nik Sarina stresses the importance for
made a deliberate shift to become an is supported by various Government Malaysians to embrace e-commerce. It
e-commerce platform in October 2016. agencies such as Majlis Amanah is the future, she says.
The big difference between the twois Rakyat (MARA) and Malaysia Design More and more Malaysians enjoy
that previously, merchants were solely Development Centre (DDEC). the variety, convenience and payment
responsible for their store presence, This synergy has brought local security offered by e-commerce
branding and operations, including products previously overshadowed by platforms. We want to make sure that
payment channels and deliveries. With bigger Malaysian and non-Malaysian Malaysian SMEs, especially those from
e-commerce, more support is provided companies into the spotlight. Aside rural areas, can benefit from it as well.
from us so that small Malaysian retailers from food, beverages, fashion, beauty E-commerce is indeed the way forward
for us Malaysians.
WHOLESALE & RETAIL

LULU HYPERMARKET CHANGING MALAYSIAS
RETAIL LANDSCAPE
LuLu is planning on expanding

to three more locations in the
country: Setia City Mall in Shah
Alam, Bangi Gateway in Bangi
and Perling Mall Johor Bahru,
with each store measuring
The retail industry in Malaysia is establish the first 100% halal hypermarket 150,000 square feet each.
rapidly growing and is the number one
contributor to the countrys rising GDP.
in the country, with the goal to change
the retail landscape. The highlight of its
By 2020, LuLu is targeting to
One new player in the local retail arena business is its 100% halal status, and the open 10 stores nationwide.
is the internationally renowned retail management has a very strict process of
chain, the UAE-based LuLu Hypermarket ensuring all ingredients in every product
& Department Store. An extremely are halal before it reaches the shelves, of the products sold on LuLus shelves,
popular choice for consumers in the Gulf says Salim MA, a Director at Lulu ranging from biscuits to paratha, are
region, LuLu currently has 132 stores Hypermarket Group. made locally.
in 31 countries globally and is actively He adds that being an Entry Point As a new player in the industry,
expanding to South Asia and Southeast Project company under the Wholesale & LuLu is aware that publicity will take
Asia by bringing unique products with Retail NKEA has definitely helped LuLu time thus they are carrying out rigorous
exceptional value. establish its presence in Malaysia, while marketing strategies to ensure that sales
The LuLu Hypermarket & the ease of doing business in Malaysia pick up. Despite the slow economy,
Department Store opened its doors in terms of the smooth process of LuLu is definitely proving that it is
in Malaysia in 2016, with its first-ever completing the requisite formalities was creating a strong footing in this country.
establishment strategically located at an encouraging factor for the retail chain When it first started operations, the
Capital Square in Kuala Lumpur. LuLu to enter the country. The Government customer count was around 3,500 billing
offers a modern shopping ambience, and has also been tremendously supportive customers a day andwithin six months,
a wide variety of good quality, 100% halal in providing infrastructure for business that number has increased to 5,000
products. It also has extensive payment development, says Salim. billing customers a day. They also receive
counters, ample parking spaces, play LuLus presence has created 15,000 walk-in customers every day and
areas for children, a food court, currency employment opportunities to the local they are expecting sales to boost in 2017.
exchange counters and ATMs. community, as 70% of the workforce According to Salim, LuLu is planning
Malaysia is an attractive location behind the operations of the hypermarket on expanding to three more locations in
for expansion as there is great market are Malaysian. Some of them are sent the country: Setia City Mall in Shah Alam,
potential in the retail industry. LuLu has for training in the UAE to equip them Bangi Gateway in Bangi and Perling Mall
identified that there is a gap in the halal with the necessary skills unique to the Johor Bahru, with each store measuring
market. Therefore, the international retail company. This also adds value to the 150,000 square feet each. By 2020, LuLu
chain decided to land in Malaysia to local workforce. Apart from that, many is targeting to open 10 stores nationwide.
WHOLESALE & RETAIL
Enhancing Retail
Concepts
Under Entry Point Project (EPP) 1,
seven new hypermarkets and 12 new
superstores were set up throughout
Malaysia, exceeding the targets of
six and five respectively despite a
perceived market slowdown. This
brings the total number of new large
format stores since the start of the
NTP to 46 hypermarkets and 58
superstores as of 2016. While existing
local and foreign players such as
Mydin, Econsave, Tesco, AEON and
AEON Big expanded their business
stronghold, UAE-based LuLu Group
entered the Malaysian retail scene by
opening a 250,000 sq ft premise in
Kuala Lumpur. The Lulu Hypermarket
is the first out of 10 planned outlets in
the country, with a total investment
of RM1.3 billion.
True to our gastronomy-focused
culture, the Makan Bazaar initiative
under EPP 5 leverages on our
obsession with local and international
cuisines. Positioned as both family-
and tourist-friendly spots, these
iconic food outlets combine the
best hawkers in one large premium
food centre, supported by other
established eateries such as quick-
service restaurants, cafs, bars
and fine dining restaurants. Oasis
Damansara Big Box Boulevard in
Ara Damansara and Medini Mall in
Nusajaya are presently operational
Makan Bazaars that cater to flows
of hungry visitors. This initiative aims
to build 10 Makan Bazaar outlets in
major cities by 2020.
Driving the growth of large format retailers as part of retail modernisation

WHOLESALE & RETAIL

The Big Box Boulevard is a family attraction and is becoming a Malaysian lifestyle.
The Oasis Big Box Boulevard Modernising the As such, the development
Shopping Experience
development under the EPP 13 of virtual malls under EPP 7 of
initiative is ongoing and on track to the Wholesale and Retail NKEA
complete construction of its AutoCity answers to the ongoing need
component, a large shopping area The rise of e-commerce retail of modernising e-shopping for
for automobiles to complement in Malaysia is a success story retailers of all sizes. One of the
numerous retail development and worth USD894 million in 2016, with achievements of our virtual malls
offices in the surrounding areas. With revenues expected to grow 23.7% is amaxMALL, an online platform
existing establishments such as Tesco annually until 2021. that supports small retailers to
hypermarket, Citta Mall, Oasis Makan Moreover, the thriving e-commerce access larger audiences. By sharing
Bazaar, Sime Plantations and other ecosystem in Malaysia is expected the same e-commerce platform,
category stores, this will transform to double the average revenue per small retailers enjoy minimal cost in
the location into an integrated retail user by the year 2021. The high operating online stores.
hub. number of user penetration and Established by AsiaSpace Sdn
demand for price transparency, Bhd, amaxMALL saw almost 100%
along with advances in mobile increase in participating small
payment infrastructure, has brought retailers from 2015, helped in
forth innovations in retailing part by collaborations with other
practices that enhance customer government agencies. In particular,
experience and satisfaction. an official partnership with MDEC has
WHOLESALE & RETAIL
Consumers are spoilt for choice by shopping online
encouraged participation of digital
By sharing the same entrepreneurs under the eUsahawan

programme. As of 2016, 646 sellers
e-commerce platform, have been registered in amaxMALL

offering a range of products and
small retailers enjoy services.
Aside from digital entrepreneurship
minimal cost in initiatives by public
the Government is committed to
agencies,
operating online stores. provide an enabling environment

for the private sector to flourish
in cyberspace as well as increase
linkages to international e-commerce
actors.
WHOLESALE & RETAIL

SUNDRY SHOP OWNER CREDITS BETTER LIVELIHOOD TO TUKAR PROGRAMME
Johorian Zul Izzamin inherited Customer Experience is Key Ensuring Constant Progress
Izzamin Mini Market from his late father It is important to modernise the shop and Improvement
in the year 2000. The sundry shop, for improved customer experience, he Since the transformation, Izzamin
serving mostly local communities in the acknowledges. Customers have more Mini Market has enjoyed increased foot
Pontian district in Johor, is his familys (shopping) options nowadays, we have traffic. Some of his customers verbally
bread and butter. Zul is a frequent to keep up with the trends so they keep commended and complimented the
attendee at state-sponsored seminars, coming back. Look at South Korea positive changes. Zul is now in the midst
constantly updating himself on new there, they can even buy groceries by of repaying his loan under the TUKAR
developments and knowledge related to scanning pictures with smartphones! programme but has already made plans
small businesses. The small business owner adds that to apply for another in the future to grow
In 2011, he chanced upon the Small mentors under the TUKAR programme his business further. He envisions Izzamin
Retailer Transformation Programme were extremely helpful and took a Mini Market as a modern one-stop centre
(Transformasi Kedai Runcit or TUKAR hands-on approach. TUKAR mentors with multiple branches, offering more
programme) under the Wholesale are experienced executives working in products and services to customers.
and Retail NKEA as advertised in the well-known hypermarkets operating in Being among the first beneficiaries,
newspaper. Zul found that he was eligible Malaysia, such as Tesco and Mydin. Zul also lauds improvements to the
thus enrolled and took the initiative to Teams of up to three people came to programme. They (TUKAR programme
implement expert advice from TUKAR my shop, some travelling as far as Kuala implementers) are open to our feedback.
programme mentors. Our (shop) Lumpur (to Pontian, Johor). They came There is a better selection of contractors
income has increased by 100%-200% a couple of times and gave constructive and suppliers now.
since then, he says modestly. feedback. For example, they showed On advice to other small business
Zul says that he took a RM25,000 me how to organise the products so owners, Zul says, While programmes
loan offered under the programme they look more presentable. The prices like these are helpful, success depends
to renovate his shop, purchase new must be well-displayed. They told me, on the participants as well. We (small
equipment and increase the number of The easier it is for the customer to find business owners in rural areas) cant just
products and services offered at Izzamin the products and make the selection, depend on the Government, we cannot
Mini Market. Among his major purchases the easier it is for them to make the just expect (handouts), we have to work
were shop renovations, an updated purchase, Zul recounts. hard to maintain our business and retain
POS (Point-of-Sale) system and a new our customers. We have to take the
counter and display racks. initiative to learn and grow.
The Izzamin Mini Mart was amongst the small sundry shops transformed under the TUKAR programme.
WHOLESALE & RETAIL
Boosting Small
Businesses
Small retailers were assisted
via the TUKAR (Small Retailer
Transformation Programme or
Transformasi Kedai Runcit) and
ATOM (Transforming Automotive
Workshop) programmes, which
bore a degree of success for some
participants.
The TUKAR programme was
formulated to help small retailers
modernise and reverse slumping
Encik Kamarul Anim, a participant of the ATOM programme.
sales into profits, by implementing
critical changes in line with customer
expectation and demands. Small
retailers were given assistance to
improve areas in human capital,
equipment, expertise, standard
operating procedures, product
display and inventory tracking.
For the automotive sector,
assistance via the ATOM programme
yielded positive transformation
among its participants. Since
launched in 2011, 764 automotive ATOM - Before ATOM - After
workshops all over Malaysia that
participated in this programme
were provided funding for tools
and equipment. This was hoped to
result in improved quality as well as
expanding the range of expertise
and services in automobile
repair and maintenance-related
businesses. While interest among
target audience was lower than TUKAR - Before TUKAR - After
expected, a number of success
stories emerged and serves as
inspiration to others.
2016 saw an increase of 151 Measurable indicators of quality
2016 saw an increase new TUKAR and 100 new ATOM

participants. Moving forward, the
include a percentage of participants
experiencing a higher increase in
of 151 new TUKAR focus of both programmes in 2017

and beyond is to improve the quality
revenue upon TUKAR and ATOM
interventions and an increase of
and 100 new ATOM of the programmes and to reduce
the number of non-performing
services offered by participants.

participants. loans. More efforts will be focused
on achieving higher success rates.
WHOLESALE & RETAIL

The retail scene in Malaysia is thriving.
Moving forward, the focus of both As the biggest contributor

the TUKAR and ATOM programmes to our GDP in 2016 at 15.15%,
in 2017 and beyond is to improve the Government is committed
quality and ensure sustainability and to support, improve and sustain
continuous growth. More efforts developments in the wholesale
will be focused on achieving higher and retail sector. Emphasis on
success rates. Measurable indicators digital innovations should ensure
of quality include a percentage of competitive edge at the global retail
participants experiencing a higher arena and help maintain Malaysias
increase in revenue upon TUKAR position as one of the leading retail
and ATOM interventions and an destination in the world.
increase of services offered by
participants.
PALM OIL AND RUBBER
DATUK SERI
MAH SIEW KEONG
Minister of Plantation Industries
and Commodities
With 5.7 million hectares of planted area out of

7.9 million hectares of agricultural land available,
palm oil is one of Malaysias most important
commodities. Producing 17.3 million tonnes of
crude palm oil, Malaysia is the worlds second
largest exporter. Total export value of crude palm
oil and palm-related products earned us RM67.6
billion in 2016.
I am pleased to report significant progress
and new developments that have occurred under
the Palm Oil NKEA in 2016. From upstream to
downstream, multiple new initiatives have been
introduced as we embark on the 11th Malaysia Plan.
It is my biggest hope that these new initiatives,
in addition to current undertakings, will drive the
economy towards our goal of reaching high-income
status by 2020.
One major initiative driven by the Government is
the full rollout of the Malaysian Sustainable Palm Oil
(MSPO) certification. In 2016, 122,521 hectares and
seven palm oil mills were certified, and a substantial
pipeline has also been built for certification in 2017.
Malaysian palm oil has erstwhile been produced
sustainably and it is pivotal that we fully leverage
the differentiation in quality and environmental
compliance that is in fact much sought after by our
customers globally. On the other hand, downstream
integration continues to gain momentum with more
new projects in the commercialisation of high-value
oleo derivatives, food and health products as well
as clinical trials globally to support the use of palm
phytonutrients as health supplements. Under the
11th Malaysia Plan, RM280 million worth of grants
have been allocated to support these initiatives.
The focus under the Rubber NKEA has been
Anchoring on
to increase the quantity of demand as well as the
quality of supply. I am glad to note that the Malaysian
Rubber Board is aggressively exploring new uses of
rubber domestically and abroad, especially in the
Sustainability areas of green rubber for transportation and other

industrial use. This was undertaken in collaboration
with stakeholders in the public and domestic
sectors to create true demand-driven growth.
PALM OIL AND RUBBER

On this note, I would like to
express my utmost appreciation to
all parties for their tireless efforts
in realising the Palm Oil and Rubber
NKEA. Together, we will make
strides towards realising our vision
of driving our expertise in the palm
oil and rubber industries higher up
the value chain to cement our global
leadership in the commodities
markets.
Workers harvesting fresh fruit bunches in palm oil estates.
OVERVIEW
2016 was a mixed year for the combined value of RM67.6 billion in
palm oil industry. The Crude Palm Oil 2016, compared with RM63.2 billion
(CPO) price breached the RM3,000 in 2015. Overall, the Palm Oil and
ceiling during the year, rising 49% Rubber NKEA achieved 115% of its
to RM3,200 per tonne at the end KPIs in 2016.
of 2016 from RM2,151 per tonne a RM5.129 billion has been
year earlier. While high prices are allocated to the Palm Oil and Rubber
cherished, production was heavily NKEA between 2011 until 2020.
impacted by a combination of Up until 2016, all allocations have
the El Nino and La Nina climatic either been spent or committed
phenomena with the country to be spent on new and existing
witnessing dry seasons in the west initiatives. The remaining funds will
coast area and floods in the east be staggered and released in stages
coast states. until the projected completion of
Total fresh fruit bunch this NKEA in 2020.
production fell 12% this year to 86.33
million tonnes as of December 2016,
compared to 98.34 million tonnes
in 2015. It is hoped that production
The CPO price breached
yield will fully recover in 2017. The
lower production volume was
the RM3,000 ceiling
also reflected in major importing
markets. The biggest importer, during the year,
India, registered lower imports of
21% to 2.66 million tonnes. China and rising 49% to RM3,200
the EU also reported a reduction
of imports at 24% and 13% lower, per tonne at the end
respectively.
The higher prices have however
helped cushion the climatic impact
of 2016 from RM2,151
and preserved palm oil export value.
The industry exported upstream
per tonne a year earlier.
and downstream products worth a
PALM OIL AND RUBBER
Developmental 10th Malaysia Plan 11th Malaysia Plan

Expenditure 2011-2015 2016-2020
(RM mil) (RM mil) (RM mil)
Rubber 1,544 1,384
Palm Oil 788 1,449
Sourced from MPOB, LIGS, RISDA, and JPS
Ensuring Revenue
Sustainability
Independent smallholders have
benefitted greatly from replanting
and new planting of palm oil and
rubber. In terms of size of impact,
the implementing agencies, namely
Malaysian Palm Oil Board (MPOB),
Rubber Industry Smallholders
Development Authority (RISDA),
Lembaga Industri Getah Sabah
(LIGS), and Jabatan Pertanian
Sarawak (JPS) have successfully
implemented 319,340 hectares
nationwide, or an area equivalent to
4.4 times the size of Singapore, in the
2020 target* : Replant 365,000 hectares of land to achieve FBB yield of 26 metric tonnes per
hectare annually. past six years.
During the 10th Malaysia Plan,
EPU disbursed a total of RM1.03
billion for oil palm planting to
MPOB, and another RM748 million
for rubber planting to RISDA, LIGS,
and JPS. To ensure the continuity of
planting efforts in the 11th Malaysia
Plan and towards 2020, EPU has
allocated RM540 million to MPOB.
Meanwhile, for the rubber segment,
RM767 million and RM644 million
have been allocated to LIGS and JPS,
respectively. The larger allocation in
the 11th Malaysia Plan compared to
the 10th Malaysia Plan for the rubber
segment is intended to cover the
five-year maintenance for rubber
trees planted between 20122015 as
well as 2016 onwards.
Starting 2016, efforts under this
2020 target* : To maintain 1.2 million hectares of land planted with rubber through replanting
of 40,000 ha/year and new planting of 30,000 ha/year. NKEA included organised oil palm
* 2020 target includes both public and private sector replanting.

PALM OIL AND RUBBER

smallholders in Sarawak. This will be
implemented by the Sarawak Land
Consolidation and Rehabilitation
Authority (SALCRA).
Since 2011, MPOB has relentlessly
worked with smallholders in
selected areas nationwide in forming
cooperatives. By joining cooperatives
and removing middlemen between
smallholders and palm oil mills,
smallholders will be able to gain bulk
discounts on agricultural inputs and
better pricing for their produce.
In 2016, 33 cooperatives with
a combined membership of 2,800
have been established. Twenty-five
cooperatives have started operations
nationwide, up from 15 in 2015. In
2016, the cooperatives have already
well-surpassed the annual target of
Fresh Fruit Bunch (FBB) of 40,000 with palm oil production to improve Developed Area (LDA) in Perak. The
tonnes with a delivery of 47,766 by 5.6% from better yield and decision to choose an LDA allows
tonnes and estimated value of RM21 increased matured area. It is hoped the project to earn further fiscal
million. this positive trend will spur more incentives from MIDA, as the project
Production during the year investments in mechanisation. helps bring development and jobs
was however impacted by climatic to a non-traditional industrial area.
Innovation and Moving

phenomena of dry seasons and For clinical trials, RM6.7 million has
heavy rains which took place been granted for a multi-country
Downstream
between 2014 and 2015. This affected lipid nutrition study and another
FFB production in 2016, resulting RM6.2 million has been granted for
in a decline of 12% to 86.33 million a red palm oil study among school-
tonnes. Subsequently, FFB yield per Major companies exercised goers in India and Malaysia.
hectare also dropped by 14% to 15.91 caution in investing in the With these projects, 2016
tonnes per hectare as of December downstream segment in 2016. concluded with RM222.4 million in
2016 from 18.49 tonnes per hectare Nonetheless, EPP6: Developing private investments, bringing total
in December last year. This led to Oleo-derivatives and Bio-based private investments to RM3.29
less spending for mechanisation in Chemicals recorded some activities billion since the NKEA was initiated.
upstream production, affecting the with a major plantation company
take-up rate of the Oil Palm Industry successfully securing a substantial
Mechanisation Scheme (OPIMIS), a grant from the EPP6 fund. The
newly-launched scheme by MPOB. project is a joint venture with a
OPIMIS provides subsidies of major household brand from Japan
up to 20% for selected machinery. to produce essential chemical
This was introduced to encourage products for household use.
mechanisation, which in turn Meanwhile, EPP8: Expediting
increases productivity and reduces Growth in Foods and Health
reliance on foreign labour. Plantations Segments, witnessed a variety
can participate via MPOB-appointed of vibrant projects. On the
suppliers. In 2016 about 85% of the commercialisation front, a local
allocated RM750,000 was taken up company partnered with a foreign
by the industry. Going into 2017, the firm to produce high quality export-
industry is expecting yield to recover grade food ingredients in a Less
PALM OIL AND RUBBER
FIRST RECIPIENT OF ITE SCHEME GRATEFUL FOR

22 GOATS
Puan Meriah bt Abdul Hadi, who During the first few visits from accumulate as many goats as possible.
lives with her daughter and son-in- MPOB, we did not have goat pens yet. Acting as animal mid-wife, she personally
law in Tangkak, Johor makes a modest We didnt have the money to build a delivers new kids and takes care of new
living from her five-acre land and palm proper goat pen, says Puan Meriah. additions to the herd, especially during
plantation. On 27 October 2016, she The advisors said, build some fences, the critical first few months. Puan
also became the first recipient of the they keep the goats safe. They gave Meriah admits that she is so thankful
ITE Scheme (Skim Intensif Integrasi suggestions on what we can do with our for the Governments help, she is not
Ternakan Dengan Sawit). limited money; they were very helpful. considering selling them yet. I will take
The MPOB (Malaysian Palm Oil After we built basic but working fences, care (of the goats) for as long as I can. I
Board)-led scheme was introduced our application was approved and we am very grateful for them.
specifically for independent smallholders received the goats.
in the palm oil industry as a way to
generate extra income and improve their Livestock Suitable for
livelihoods. Through the ITE Scheme, we Palm Plantations
received 22 goats; two males and twenty
females. We also received grass-cutting All livestock provided by the ITE
machines, animal medication and some Scheme undergo medical checks to
animal feed, says Puan Meriah, adding ensure they are in optimal health. The
the aid was valued at RM50,000. goats were also of prime reproducing
age. Puan Meriah estimates that her
MPOBs Advisory Role goats give birth to about one new kid a
week. In addition to her own goats, Puan
Puan Meriahs application process Meriah and her family take care of about
included consultations with MPOB 60 goats.
representatives to ensure she met the Goats and cows are suitable livestock
schemes eligibility requirements. This for integration on palm oil plantations.
ensures the right beneficiaries benefit In addition to animal feed, they can eat
from the scheme. As a smallholder who young palm leaves as well as grass all
works full-time on an independent palm available in abundance in plantations. In
plantation, Puan Meriah was eligible to turn, there are many ways ITE Scheme
apply for the scheme. However, she was participants can generate income from
also asked to ensure the availability of the livestock: the animals can be milked,
goat pens and clean water supply for butchered or sold for additional income,
the goats. thus directly improving the livelihoods of
low-income independent smallholders.
Puan Meriahs current strategy is to
PALM OIL AND RUBBER

Datuk Seri Mah on a site visit to an established glove manufacturing plant.
The rubber industry in Malaysia Healthy growth was also

enjoyed a good year in 2016 and is observed in both the volume and
well on its target with 62% world value of rubber glove exports, with The export value of
market share for rubber gloves and the fluctuations in the ringgits value
raw rubber prices on a bullish trend.
In tandem with the steady
making exports more competitive. In
fact, the export value of gloves has
gloves has seen an
increase in petroleum prices and
continued demand, the price of
seen an increase of 1.4% at RM13.28
billion in 2016 from RM13.10 billion
increase of 1.4% at
Standard Malaysian Rubber grade
20 (SMR 20) rose by 78% to RM8.86
in 2015. Similarly, the export volume
of gloves in 2016 stood at 672,952 RM13.28 billion in 2016
per kilogram in the third week of
December 2016, compared to only
tonnes, signifying an increase of
2.3% as compared to 657,987 tonnes from RM13.10 billion
RM4.98 per kilogram during the in 2015.
same period in 2015. in 2015
PALM OIL AND RUBBER
In 2016, MSPO awarded Championing

launched in 2015 and has since been
implemented nationwide. The MSPO
Environmental
certification is critical to for the
export industry, and is targeted to
certification to a
Sustainability
spur environmental awareness and
consumer demand for sustainably
combined 122,521 produced palm oil products, from
The palm oil industry has toothpaste to margarine and
hectares of palm oil been accused of being one of the
contributors to environmental
lubricants. In 2016, MSPO awarded
certification to a combined 122,521
plantations. damage. Exaggerated claims have

been received from environmental
hectares of palm oil plantations.
From 2017 onwards, the MSPO
groups as well as from concerned development and certification will
members of the public. Taking this be carried out by the Malaysian
into consideration, steps are taken Palm Oil Certification Council
to ensure palm oil plantations in (MPOCC), though MPOB will remain
Malaysia follow best practices in involved in the development of
protecting the environment, without smallholder certification. This will
compromising yield quantity and ensure streamlined certification
quality. processes and demonstrate
To address this, MPOB has Malaysias commitment to achieving
successfully developed the environmental sustainability in palm
Malaysian Sustainable Palm Oil oil plantations.
(MSPO) certification, which was
PALM OIL AND RUBBER

The Palm Oil and Rubber NKEA However, labour scarcity in the
will continue implementing new upstream industry remains the
and existing initiatives to increase biggest challenge, hampering the
productivity and improve the progress in achieving higher FFB
livelihoods of stakeholders in the per hectare of production. This will
upstream industry, as well as further be addressed by facilitating greater
add value in the downstream. investment in higher yielding palms
Looking abroad for new and mechanisation as well as finding
opportunities, the industry is aiming cost-effective ways to reduce
for greater integration with export dependence on labourers.
destinations such as India, China, The depreciation of the ringgit
and the EU. The Ministry, together against the US dollar has hindered
with MPOB will work hand-in-hand the private sector from investing
with the private sector to explore in downstream production
market integration opportunities. domestically. Incentives, including
This is to help the industry secure tax breaks and grants will catalyse
more investments abroad and new investments and expansion.
continue driving exports.
TOURISM
DATO SERI MOHAMED

NAZRI BIN ABDUL AZIZ
Minister of Tourism and Culture
The year 2016 reveals a huge recovery in

Malaysias tourist arrivals and receipts which
demonstrate both the Ministry of Tourism
and Culture (MOTAC) and private sectors
commitments towards achieving Tourism and
Culture NKEA targets. Malaysia also continues
to receive international accolades such as Asias
Leading Destination by World Travel Awards
2016 and No. 1 Muslim-friendly Destination by
MasterCard-Crescent Rating 2016 which serve
as testaments of our relentless endeavour.
From there onwards, we have identified
new areas of opportunities through the
Tourism Lab 2.0 such as culture, arts, heritage
and craft sector and niche sector that consists
of birding, diving and homestay. This effort has
stimulated the industry to diversify its offering
and capitalise on its numerous local products
and experiences. The ecotourism cluster and
cruise industry have also risen to become
strong venues in receiving visitors at Malaysias
various nature sites and ports.
Additionally, Malaysia has also advanced
itself as one of the regions top business
destination through numerous highly
accredited Meetings, Incentives, Conferences
and Exhibition (MICE) events which facilitate
business to business negotiations and attract
Asias
many international delegates. Expansion of
facilities such as the Kuala Lumpur Convention
Centre and Kota Kinabalu Convention Centre
will also enable more opportunities of hosting
Tourism
large-scale events in the future.
This years strategy to facilitate eVisa for
Chinese tourists has resulted in an increase of
tourist arrivals from China. Malaysia sees this as
a strategic opportunity and has since planned
Powerhouse on giving out similar allowance for tourists from

other countries with rising purchasing power as
well. In addition to that, our collaboration with
top international digital media as a marketing
platform will continue to be vital in promoting
our country at the global stage.
TOURISM
Growth upon current success
remains critical in the effort
of achieving our goals within
OVERVIEW
the National Transformation The tourism sector saw a strong from China, including a visa-free
Programme (NTP) and Malaysia recovery in 2016, with 26.7 million option (eNTRI) saw immediate
Tourism Transformation Plan arrivals recorded versus 25.7 million results. This also helped to boost
(MTTP). With relentless effort in 2015, moving closer towards the sectors performance during
and consolidated improvement, achieving the 2020 target of 36 the year, with a 26.7% increase in
I am sure that Malaysias tourism million tourist arrivals. Receipts Chinese visitors in 2016. Upon its
industry will continue to flourish also registered an increase of RM13 successful pilot, the eVisa facility
as one of the nations vital billion, reaching RM82.1 billion in was subsequently extended to India,
supporting economic pillar. total, 49% of the RM168 billion Bangladesh, Nepal and Myanmar.
revenue targeted by 2020. The As testament that the success of
NKEA remains on course towards its this NKEA is built upon the combined
target of achieving 36 million arrivals efforts of both the Government and
Tan Sri Dr Ong Hong Peng, Secretary-General of MOTAC at the groundbreaking

ceremony of phase 2 of Mitsui Outlet Park KLIA
and RM168 billion tourism receipts the private sector, the NKEAs various
by 2020, due in no small part due EPP players also recorded major
to the continuous efforts by MOTAC milestones during the year. This
and its agencies including Tourism included Melaka Gateways signing
Malaysia (TM) and various private of a Memorandum of Agreement
sector stakeholders. (MOA) with Chinas state-owned
MOTACs efforts in facilitating Powerchina International Group Ltd
the Tourism NKEA have borne on 1 September 2016 for investments
strong results with the Ministry worth approximately RM30 billion,
achieving 112% of its KPIs in 2016, which will be released in phases
and contributing to RM73.7 billion over the next two years. Meanwhile,
in GNI, driven by the Shopping, Mitsui Outlet Park (MOP) KLIA
Ecotourism, Cruise and Business announced groundbreaking on its
Events focus areas which continued Phase 2 expansion on 14 November
to grow during the year. The 2016. Phase 2, worth approximately
Governments decision in March RM60 million, will introduce more
2016 to enable eVisa applications premium brands and host 60 more
TOURISM
shops, bringing the number of

outlets in both phases of the factory
outlet shopping mall to 190. The
expanded mall is expected to open
in January 2018.
Malaysia continued to earn global
recognition during the year, with
the country named Asias Leading
Destination in the prestigious World
Travel Awards 2016. Malaysia was
also ranked the No. 1 Muslim-friendly
destination in the world in the
MasterCard-CrescentRating Global
Muslim Travel Index 2016.
Malaysias other accolades
in 2016 include Best Asian City
Destination and Best Asian Culinary Irresistible Malaysian hand-woven crafts
Destination by the Travvy Awards
(travAlliancemedia). Additionally,
Kuala Lumpur was listed among the 194 public and private sector 12 Focus Areas were proposed, with
Top 5 destinations in Expedia UKs representatives participated in Lab most initiatives either private sector-
list of the worlds 25 best shopping 2.0, with private sector participants led or to be undertaken via Public-
cities, while Ipoh was named in accounting for 69% of the lab Private Partnerships.
Lonely Planets Top 10 Best in Asia members. The strong private sector The new focus areas included
for 2016 list. participation reflects the industrys in Lab 2.0 comprise culture, arts &
Tourism industry stakeholders continued commitment to the heritage, crafts, birding, diving and
also earned their share of accolades Tourism NKEA. homestay. The inclusion of culture,
at the World Tourism Awards 2016, Following the assessment of arts & heritage and crafts represents
with One World Hotel named Asias existing and new focus areas under an opportunity for Malaysia to
Leading Meetings & Conference the Tourism NKEA, 71 initiatives across tap into the inherent strengths of
Hotel while Resorts World Genting
was recognised as Asias Leading
Themed Resort. Zouk KL was also
named Hospitality Asia Platinum
Awards (HAPA) Nightspot of the
Year.
Charting the Course

for the Next Five Years
With a view of evaluating the
progress of this NKEA towards its
targets for 2020, MOTAC held a
Tourism & Culture Lab 2.0 (Lab 2.0)
from 6 January to 16 February 2016.
The lab aimed not only to review
existing tourism initiatives under the
NTP but also to expand the areas of
focus, if necessary.
Tourism & Culture Lab 2.0 Focus Areas

TOURISM
Existing focus areas such as
affordable luxury, nature/adventure
and business tourism were also
revisited to take into consideration
the efforts and lessons from the past
five years along with their outlook in
the near-to-medium-term.
Efforts on promoting Malaysia
as a duty-free shopping destination
will continue, along with further
improvements to the Tourism Refund
Scheme (TRS). Shopping Secretariat
Malaysia (SSM) will also continue
to identify new partnerships with
International Federation of Freight Forwarders Associations (FIATA) key shopping malls and precincts
World Congress in Berlin, Ireland
to actively promote shopping
destinations around the country.
its cultural diversity and is aimed tourism offerings and capitalise on Malaysia Major Events (MME) will
at supplementing efforts already opportunities for Malaysia to offer work with the Arts, Live Festivals
undertaken by MOTAC. These products and experiences catering & Events Association of Malaysia
efforts will include identifying new to various special interest groups, (ALIFE) to improve coordination
platforms to support Malaysian particularly in the high-yield birding between event organisers and
craft entrepreneurs and improving and diving sectors. Efforts to develop Government authorities. MMEs
standards to encourage consistency the birding segment will be placed efforts to facilitate both homegrown
in the products developed. This will on training more birding guides events and major live events will
also benefit the various stakeholders while improving facilities at several also continue via its Events Support
in the supply chain of craft products, top birding sites in Malaysia. In terms Programme.
which go beyond the crafts of diving, the National Recreational The construction of any new
entrepreneurs, including both the Scuba Diving Council (NDC) has 4- and 5-star hotels and major
logistics and retail service providers. been established, through which the integrated resorts will be facilitated
The new niche areas proposed industry will work collaboratively on an ad-hoc basis by MOTAC
also aim to further diversify on safety, regulation and related following due assessment.
environmental issues.
Lauching of Alitrip Malaysia Tourism Pavilion in Kuala Lumpur

TOURISM
CRUISE TOURISM MAKING WAVES

The countrys cruise
numbers have been
encouraging, with
the number of cruise
calls growing by 36%
since 2013.
The growth of cruise tourism in She notes that this spending benefits by 36% since 2013. Royal Caribbeans
Malaysia has been a welcome additional the local economy. Tourism industry 4,905-passenger Ovation of the Seas also
economic growth driver for the country. players such as food vendors, coach made its maiden call to Penang and Port
While cruise passengers may not spend drivers and tour guides all benefit from Klang in 2016. Melakas cruise tourism is
on hotel accommodations, unless the cruise tourism action.The impact is also poised to grow even further with
Malaysia develops its cruise destinations quite huge, Sook Ling remarks. the Melaka International Cruise Terminal
into turnaround ports, they tend to splash With the cruise markets in North at Melaka Gateway expected to be fully
on excursions to tourist attractions, and America and Europe now matured, the operational by 2018 and will have the
on shopping and food. focus has shifted to Asia and Malaysia capacity to cater for 250 cruise ships
Yap Sook Ling, Managing Director at per annum catering to an estimated one
Asian Overland Services which organises million cruise passengers.
shore excursions for cruise passengers, Sook Ling says, however, some
says that cruise tourists tend to want to measures could help further develop
make the most of their time given that Malaysias appeal to cruise passengers.
they had been sequestered on a ship for One is to refresh the countrys branding
long periods and have only limited time and products. Another is to raise the
to explore each destination. levels of professionalism among vendors,
Cruise passengers will want to go especially in the rental of water sports
out and discover the destination, Sook equipment and boats. It is important
Ling says. They will go on an intense has an opportunity to grab a bigger that the vendors are licensed and
session of buying, eating and visiting share of the cruise market. The countrys adequately insured, she says, adding
places of interest. cruise numbers have been encouraging, that tourists do not mind paying more
with the number of cruise calls growing for the additional peace of mind.
TOURISM
SETTING NEW STANDARDS IN MALAYSIAN HOSPITALITY
Since opening its doors in 2016, One of those boundaries pushed digital content for the seamless LED
the St Regis Kuala Lumpur has set was in terms of technology. The hotel Projection Systems. Local artisans were
new benchmarks for the capital citys boasts a ground-breaking 188.16 metre- also involved in making the exquisite
hospitality scene. From its oversized long Seamless LED Projection System Japanese style lacquer doors in Taka.
rooms to the worlds first large seamless which runs around the ballroom walls We want the hotel to go beyond the
ballroom projection system, the elite and turns the space into a stunning norms, says Chua. We set standards
property has raised the bar in terms of immersive digital canvas. The scale of the that go beyond expectations.
what a top hotel in Malaysia should be, 47 massive LED panels enable guests to
and makes up one of the projects under enjoy virtual experiences such as trips
the Tourism NKEA. through the galaxy in a way never before
The hotel was designed and in a hotel ballroom. The LED Projection The elite property has raised
conceptualised by rising property System allows you to realise any creative the bar in terms of what a top
developers Carmen and Carmey Chua concept you want, says Chua.
with an eye on to exceed the needs of Food is another area in which the
hotel in Malaysia should be, and
ordinary travellers. property has raised standards in Kuala makes up one of the projects
This hotel is about raising the
standards in Malaysia, says Carmen
Lumpur, playing host to Taka, the only
restaurant outside of Tokyo helmed by
under the Tourism NKEA.
Chua, recounting how she and her Saito-san, a three-Michelin starred sushi
sister spent countless hours picking out chef.
custom furnishings and artworks as well An important benefit of all the high
as pushing the boundaries of what was standards introduced by the hotel was
possible to make a statement with this the promotion of local talents which were
property. involved in making the sophisticated
TOURISM
Eco and Cruise Tourism

Showcase Malaysias
Natural Splendours
Following restoration and repair
efforts, key nature sites in Malaysia
have completely recovered from
the natural disasters in 2014 which
affected visitor arrivals in 2015. A
total of 859,409 visitors visited
Malaysia as a Mega Biodiversity
Hub (MMBH) sites in 2016, far
surpassing the target of 650,000
for the year. Significant increases
were seen in Kinabalu Park following
the opening of the new Ranau Trail,
Adrenalin pumping water rafting, Padas River, Sabah
which takes climbers up to Mount
Kinabalu, in November 2016. Sabah
Parks has also since added the new
Kota Belud trail. Similarly, Taman In line with the recommendations The Cruise Tourism segment
Negara saw an increase of 156% from MOTACs National Ecotourism continued to perform well, with
to 93,620 visitors in 2016 since its Plan 2016-2025, ecotourism efforts the number of cruise calls growing
reopening following repairs due to will be focused on developing by 36% since 2013. The Melaka
flood damage. ecotourism clusters. A pilot cluster International Cruise Terminal at
has been set up for the Taiping- Melaka Gateway is expected to be
Batu Kurau area led by the State fully operational by 1Q2018 and
Executive Committee on Tourism in will have the capacity to cater
A total of 859,409 Perak. In addition to this, two other for 250 cruise ships per annum
pilot clusters have been identified in with an estimated 1 million cruise
visitors visited Sabah and Sarawak. passengers.
Malaysia as a Mega
Biodiversity Hub
(MMBH) sites in 2016,
far surpassing the
target of 650,000
for the year.
MyCEB inked a strategic partnership deal with Malaysia Airlines Berhad in April 2016
TOURISM
Sarawak Cultural Show
season will naturally benefit the

destinations due to the economic
In 2016, a total of 341 business events, comprising corporate activity it generates to transport
meetings, incentive travel, conventions & exhibitions were held providers, key tourism attractions
in Malaysia, attracting more than 127,849 international delegates and also local food and beverage
vendors operating in the vicinity of
and delivering an estimated RM1.5 billion in economic impact to the port.
the country.
Positioning Malaysia
as the Regions
In June 2016, the
4,905-passenger Royal Caribbean
Business Destination
vessel Ovation of the Seas made
its maiden calls to Penang and Port
Klang. The Royal Caribbean fleet is
estimated to bring to shore more For Business Tourism, Malaysia
than 190,000 cruise passengers to Convention & Exhibition Bureau
Penang, Port Klang and Langkawi (MyCEB) continues to build on
for the cruise season between Malaysias prominence as one
October 2016 and May 2017. of the regions leading business
This achievement is further destinations. In 2016, a total of
testament to the growing cruise 341 business events, comprising
market that has seen a 32% increase corporate meetings, incentive travel,
in cruise passengers from 523,272 conventions & exhibitions were
in 2015 to 692,063 in 2016. The held in Malaysia, attracting more
growth in visitors during the cruise than 127,849 international delegates
TOURISM
Tourists taking photos in front of Perdana Putra, Putrajaya
and delivering an estimated RM1.5 Malaysia recorded a further in the meetings industry. The event
billion in economic impact to the milestone with Kuching hosting saw 835 delegates from 61 countries
country. In addition to the direct the largest number of Malaysian converge in Kuching and clearly put
contribution to local businesses and Asian delegates at the 55th Malaysia on the Business Events
and hotels, business events also International Congress and map.
brought in knowledge transfer, B2B Convention Association (ICCA) The first edition of the World
opportunities, innovation to the Congress. The ICCA Congress was a Travel Mart (WTM) Connect Asia
Malaysian community; elevating the significant achievement for Malaysia, was also held in Penang during the
profile of Malaysia. with the Association responsible for year, which saw buyers and suppliers
MyCEB continues to collaborate ranking cities and countries globally from over 30 countries converge for
with the different Ministries for
the attraction, development and
creation of strategically important
business events that will support the
objective of the respective Ministries
and NKEAs. Among key events
highlights in 2016 included the
hosting of the World Congress of
the International Society of Physical
and Rehabilitation Medicine - ISPRM
2016 (1,600 delegates) and the
first ever Institute of Electrical and
Electronic Engineers International
Conference on Communications
2016 (IEEE ICC) organised in
Southeast Asia (1,800 delegates). 55th International Congress and Convention Association (ICCA) Congress.
TOURISM
Business-to-Business negotiations.
The return of Chinese tourists via
the Perfect China International
Incentive Trip marked another
notable achievement, accounting
for the largest incentive event held
in Malaysia in 2016 as it attracted
over 12,000 international tourists for
seven days.
Malaysia looks set to build on
these achievements in business
tourism with new facilities currently
under construction. These include
the expansion of Kuala Lumpur
Convention Centre (KLCC), which
is scheduled for completion in
The legendary Langkawi Island
2018. When operational, this
extension will provide an additional
Easing Entry of
10,000 square meters of flexible Centre which will be able to
and multipurpose floor space to accommodate 5,000 delegates by
Tourists
its existing 22,659 square meters, mid-2018. These additional facilities
allowing it to accommodate not will enable better scale and diversity
only larger international meetings of events to be held in these key
but also concurrent events. Sabah is MICE destinations in Malaysia. The Government introduced
also expected to see the completion Visa-free entry and eVisa in March
of the Kota Kinabalu Convention 2016 to encourage travel by Chinese
Sunset over Kuala Lumpur

TOURISM
tourists. The Visa-free entry, also platform for todays travellers. In

known as eNTRI, enables Chinese 2016, TM signed a Memorandum
The introduction of tourists to visit Malaysia for a period

not exceeding 15 days, while eVisa
of Understanding (MoU) with
Alitrip, an e-commerce platform
allows a length of stay of up to 30 owned by the Alibaba Group, to
Visa-free entry and days. The application for visas can strengthen promotion in China.
be performed online at tourists The implementation of the Malaysia
eVisa has resulted in convenience and does not require Tourism Pavilion (MTP) using this
the physical handover of passports. platform will take place in 2017.
a 26.7% increase in This new process has resulted in a
26.7% increase in Chinese tourist
Aside from this, SSM also
further embraced digital media
Chinese tourist arrivals arrivals to Malaysia.
The eVisa has also been
with the launch of a new digital
icon, Miss SHOPhia. This new icon
to Malaysia. extended to nationals from India,

Bangladesh, Nepal and Myanmar
will be positioned in all promotions
to provide guidance to shoppers
who are residing in their respective on fashion trends, latest news of
countries. where to shop and what to look
out for to get the best out of
Leveraging on Digital
shopping in Malaysia, marking a
departure from conventional static
Media Platforms
advertising. In this same vein, her
persona and appearance will also
be modified throughout the year
TM has continued to recognise to accommodate the different
the importance of digital media as festivities and also target markets
a key marketing and promotions globally.
TOURISM
As part of the NTP, MOTAC will The outlook of the sector in
look to build on its success in 2016 2017 will be challenging, particularly
via the initiatives identified in Lab with marketing and promotional
2.0, that seek to promote local SMEs budgets shrinking. Nevertheless,
within the industry. MOTAC is confident that its
Emphasis will be placed on ongoing collaborations and smart
the newly identified focus areas, partnerships with the industry will
such as crafts, by working with enable the sector to continue to
corridor agencies NCER, ECER, build positive momentum, striving
IRDA, SCORE and SEDIA to identify to achieve more with less, towards
local craftsmen and develop craft achieving its 2020 targets of 36
entrepreneurs. Aside from these million tourists and RM168 billion
collaborations, efforts will be taken tourism receipts.
to identify means to improve
available distribution channels for
these local products. Efforts will also
focus on initiatives identified in both
the niche areas of birding and diving.
Electrical & Electronics
DATO SRI MUSTAPA

MOHAMED
Minister of International
Trade and Industry
Despite the global slowdown in trade and

challenges brought by new technology, the
Electrical and Electronics (E&E) sector remains
a key driver in Malaysias industrial development.
The E&E sector continues to be a significant
contributor to its gross domestic product (GDP)
growth, export earnings, value-added investments
and employment opportunities.
The Malaysia Investment Development
Authority (MIDA) approved a total of 107 E&E
projects with investments of RM9.2 billion,
surpassing the years target of RM6 billion. Of
these, 17 projects were new with investments
totalling RM1.5 billion, while 90 were expansion
or diversification projects with investments
amounting to RM7.7 billion.
The major share of E&E investments was
made up of foreign investments amounting to
RM7.9 billion (86%), while domestic investments
amounted to RM1.3 billion (14%). Most of
these investments involved expansion and
diversification activities in the manufacturing of
LED products, household appliances, solar wafers
and cells.
Since 2011, 455 projects valued at RM54 billion
were approved, out of which 356 projects worth
RM40.6 billion were implemented.
These projects have further enhanced our
exports of E&E products, which rose by 3.5% to
RM287.7 billion in 2016. Malaysias E&E exports
account for 44.6% of the countrys total exports
last year.
Driving
Demand continued to be driven by new
applications of Internet of Things (IoT) in the
sphere of wireless communications and wearable
Malaysia Up the
devices, reflecting the success of our efforts
through the NTP to produce high-value and
innovative products. The NKEA E&E has achieved
Value Chain
89% of its targets as at the end of 2016 and is on
track to meet its overall targets by 2020.
We are confident that the existing measures
under the NKEA together with continued
emphasis on innovation will propel Malaysia
towards reaching our goals for 2020 and beyond.

DATUK SERI PANGLIMA OVERVIEW
WILFRED MADIUS TANGAU The performance of the E&E industry since the inception of
Minister of Science, Technology the NTP is a clear success story of Malaysias effort to engage
and Innovation in higher-value-added activities that will drive the countrys
transformation into a high-income economy by 2020. While
Malaysia remains an attractive market for activities on the
The E&E industry contributes significantly lower end of the value chain such as electronic components
towards Malaysias industrial development and its manufacturing, the country has also raised its global
GDP growth, export earnings, investments and competitiveness in high-value operations such as industrial
employment opportunities. In 2016, the Ministry design, test & measurement and electrical appliances.
of Science, Technology and Innovation (MOSTI) This has been achieved through investments in four major
continued to provide technical support services avenues, i.e. the National Instruments Academy & Innovation
to sustain the E&E industry through our agencies, Nucleus (NI-AIN), SIRIM Bhds Eco Industrial Design Centre
namely, MIMOS, NanoMalaysia and SIRIM. (EIDC), SME Corp Local LED Companies Capacity Building
MIMOS had actively engaged the industry Programme, and the MIMOS Advanced Analytical Labs. In
players and institutions of higher learning addition to moving Malaysia up the value chain, this has
to implement human resource development catalysed immense benefits for the country and its people,
programs in the E&E services sector, with emphasis creating 117,609 employment opportunities as at the end of
in Advanced Failure Analysis, Material Analysis 2016, well on track to achieve the target of 157,000 jobs by 2020.
and Wafer Testing. As the national wafer testing Developments in the LED sector point to the progress that
service provider, MIMOS continued to leverage has been achieved by the E&E industry since the start of the
on the shared infrastructure services approach to NTP, with Malaysian companies shifting away from downstream
provide value-added services and as an enabler to activities like assembling, packaging and testing to higher
the semiconductor industrys ecosystem. volume and more profitable markets and distribution. During
MOSTI is optimistic that the integration of the year, initiatives under this NKEA enabled 11 Malaysian
graphene and other nanotechnology-based companies to penetrate global markets, with combined sales
materials would boost the value and performance of RM125.2 million.
of E&E applications. In 2016, NanoMalaysia However, progress in some areas was hamstrung by market
facilitated the adoption of graphene-based conditions. For example, initiatives to increase the number of
conductive ink and Copper-Carbon Nanotubes solar module producers have been impacted by narrowing
(Cu-CNT) into HANS LED Systems LED profit margins and the implementation of anti-circumvention
products. NanoMalaysia also promoted duties and anti-subsidy duties on Chinese solar PV panels and
photovoltaic solar panels and nanosensors to the cells shipped from Taiwan and Malaysia to the EU. An initiative
swiftlet farming industry by funding their product to develop the E&E industry for rail maintenance, repair and
development activities and providing independent overhaul (MRO) has also been slow to take off; hence a two-
valuation of Intellectual Property (IP). day workshop on the rail sector was held at the end of the year
SIRIM has set up an Eco-Industrial Design to chart the way forward for this initiative and identify new
Centre (EIDC) as a cross-cutting enabler to areas of growth.
drive the manufacturing and service sectors for The growth potential of some areas, such as SME Corps
sustainability and global competitiveness. There LED Consortium Programme, has also been limited by budget
are currently four 3D printing machines that can constraints prevalent across industries and the economy.
produce prototypes for small batch manufacturing. Another initiative, CREST, which was set up under this NKEA
SIRIM also encourages industrial and product to act as a platform for E&E industry players and academia to
designers to work closely with the EIDC to create collaborate on research, design and development, has catalysed
a pool of local designers and engineers who can R&D projects worth RM28 million to date. A new mechanism
design for the environment. has been proposed to enhance the fund disbursement process.
In spite of these challenges, Malaysia remains firmly on the
right track in diversifying its E&E capabilities as it strengthens its
competitiveness and use of innovation to unlock higher levels of
GDP, GNI and FDI.
education, and semiconductor

manufacturing. During the year,
MIMOS also provided four wafer-
testing services to local E&E
companies, while MIMOS metrology
lab was also utilised by 19 institutions
for 31 projects, exceeding the years
target of 30.
MIMOS has also supported
companies involved in integrated
circuit design and in 2014 completed
engineering samples of the Green
Motion Controller (GMC) for
commercial adoption. In 2016, two
YB Datuk Chua Tee Yong and Dr. Roland Mueller at the launch of Osram local companies used the GMC in their
Opto Semiconductors new LED production plant in December 2016.
products, which enables more energy-
efficient applications such as hybrid
Sustaining
In 2016, a total of 135 engineers, electric vehicles and home appliances.
lecturers and students were trained
Competitiveness in the LED Shining the

in failure analysis (FA), material
analysis (MA), and wafer level testing
Semiconductor Sector Way Forward

under the programme. Of these,
32 engineers were trained on FA &
MA under the 1MGrip Programme
Malaysia has long built its and 1Malaysia Outplacement Centre Malaysias growing stature
expertise in semiconductor (1MOC), while 26 engineers were as a production hub for LED
fabrication. As the technology in trained on Product Reliability Testing manufacturers is a point of pride
some fabrication plants approaches under the 1MGrip Programme and for the nation in its journey to high-
maturity, measures were taken to Public Training. A further 77 lecturers income status. LED production
leverage the countrys competitive and students trained on Wafer Level clusters have been developed
advantage in semiconductor Testing under the WISE Programme, in the country to manufacture
fabrication by executing a smart ensuring good training and exposure sophisticated semiconductor
follower strategy. This strategy for both industry practitioners and devices for wafer fabrication as well
entails the establishment of wafer academia. as lighting products and solutions
fabrication plants that use mature MIMOS has also provided the like vehicle lighting, backlights and
technology in niche applications (e.g. industry with 708 advanced analytical displays. Against this backdrop, 11
analogue and power), and accounts services, exceeding the target of 700 Malaysian companies strengthened
for approximately 65% of global for 2016, which was revised upwards their foothold in the global market
semiconductor revenue. from 300 during a mid-year review in in 2016, with combined sales of
Besides reducing innovation risks July 2016. RM125.2 million in 2016.
and offering more sustainable and Over 70 institutions utilising The LED ecosystem in Malaysia is
attractive returns in the long run, MIMOS services benefited from further set to be enhanced with the
this strategy will build a critical mass reduced costs (MIMOS services construction of the largest and latest
of semiconductor wafer fabrication are more cost-effective than those six-inch LED chip production site in
capacity and strengthen the sectors of foreign testing labs), shorter the world in Kulim, Kedah, by Osram,
human capital to drive the entire turnaround times (samples are tested a multinational lighting manufacturer
semiconductor value chain that locally, negating the need for offshore specialising in innovative and
encompasses design, fabrication, deliveries), and knowledge transfer sustainable lighting solutions. Osram
production, assembly, testing, sales from MIMOS. These institutions is investing RM4.7 billion to build
and distribution under a capacity- include companies from diverse fields the plant, which is expected to
building programme developed by such as audio-visual technologies, spur future deployments of high-
MIDA and MIMOS. rubber-glove manufacturing, gaming, technology projects in Malaysia.

Osram has already begun and measurement landscape has prototyping, proof-of-concept and
to realise its investment with continued to thrive, and during the system customisation at the National
its construction of an epitaxy- year saw 48 products from seven Instruments Academy & Innovation
manufacturing plant at the site, companies undergo testing at QAV Nucleus set up through this NKEA.
making it the first time Osram Technologies Sdn Bhds test centres The projects include Seagate
has undertaken LED epitaxy in Penang and Selangor. International (Johor) Sdn Bhds
manufacturing outside its home The countrys venture into flash monitoring system, Universiti
country of Germany. new technologies has also paid Pertahanan Nasional Malaysias blast
off: Penchem Technologies Sdn test system, Infineon Technologies
Game-Changers
Bhd developed a commercially (M) Sdn Bhds development on
ready printable graphene-based RF semiconductor testing, Asian
Leap Forward
conductive ink for electronic Geos Sdn Bhds testing and
applications such as flexible circuit troubleshooting for payout tension
and sensors, inkjet conductive ink, meters and Universiti Putra Malaysias
This NKEA has identified a host RFID tags, antenna and electrostatic gearshift durability test, rotational
of new, high-growth areas and detection devices. gear durability test upgrade and oil
initiatives to extend the countrys Further deepening Malaysias palm grading system.
E&E capabilities. These include expertise in E&E were efforts The country has also sustained
positioning the country as a test to grow automation equipment the development of its embedded-
and measurement hub offering manufacturing, which saw 13 systems sector, capitalising on its
design and development as well automation projects undertaken in established electronics ecosystems
as certification facilities for LED 2016 by local companies, agencies and skilled local embedded-systems
and solar products. The local test and institutes in system design, enterprises. During the year, three
new embedded-systems projects
were approved under the MDECs
Digital Malaysia Embedded Systems
This NKEA has identified a host of new, high- Funding Programme. This initiative
encompasses an embedded IoT
growth areas and initiatives to extend the pilot for 3D printing, testing and
measurement systems, as well as
electrical safety devices.
countrys E&E capabilities. SIRIMs EIDC, which was
established under this NKEA, has also
continued to support local industries
in producing environmentally friendly
products through eco-innovation.
In 2016, 20 eco-design applications
were undertaken by companies
utilising the shared facilities at EIDC.
These applications include Edotco
Group Sdn Bhds CFP profiling for
telecommunication towers, Khind
Mistral Industries Sdn Bhds airflow
simulation of a 56-inch ceiling fan,
EcoOils Sdn Bhds life cycle inventory
analysis for greenhouse gases profile
of eco-processed pozzolan, Wilron
Product Sdn Bhds simulation of
adhesive mixing using computational
Additive manufacturing transformed the manufacturing industry by allowing fluid dynamics analysis and SIRIMs
greater freedom to design and innovate, increasing supply chain efficiency and
supporting green manufacturing initiatives. design and development of dental
implant procedures.
ECLIMO - MALAYSIAN-MADE ELECTRIC SCOOTER

MAKING WAVES AT HOME AND ABROAD
The Eclimo electric scooter was
the brainchild of Dato Dennis Chuah,
the founder and executive director of
Eclimo Sdn Bhd, after he successfully
developed a battery suitable for
electric automobiles. In 2008, after
weighing all the factors, costs and
infrastructure of venturing into electric
automobiles, Dato Dennis found
that electric scooters were the most
feasible, meeting market demands
and cost effective to manufacture in
Malaysia. In 2008, Dato Dennis sold
his electrical engineering company to
invest his money and passion into his
Penang-based company.
The Eclimo scooters are lithium
battery operated; it is easy to operate
with minimal requirements. The
similar type of Lithium Batteries are The built-in GPS helps KFC store battery low for their scooters. In the
used in cars and buses, describes managers to monitor the movement meantime, Eclimo is also diversifying
Dato Dennis, who designed the of the bikers; and unlike conventional into recycling the batteries from
scooter himself. The scooter is bikes, no petty cash handling is the scooters into durable portable
capable of running up to a speed of required for bikers to pump petrol. batteries for household and general
80km per hour. The Eclimo has been A rental programme resolved all of consumer markets domestically.
approved by JPJ as roadworthy and KFCs issues on asset maintenance, Eclimo looks forward to tapping
is being assembled in its compact petty cash handling and employees into opportunities from the NKEA
assembly plant in Perai Industrial delivery efficiency. Currently, KFC Electrical and Electronics to further
Estate, Penang with a team of 20 stores in Kuala Lumpur, Penang, and establish the Eclimo brand in Malaysia
employees only. The scooter only Sungai Petani use the Eclimo for their and into the overseas market as a fully
requires service after the battery has delivery services. There are plans and truly Malaysian-made electric
run for 800 hours. to expand this service to Perak and scooter.
Before launching Eclimo into the many other states in Malaysia.
market, Dato Dennis conducted a While the Malaysian market is
market survey looking for industries
and users who require green
still developing its exposure and
knowledge about battery-operated Currently, KFC stores in
technology that is cost-effective for
their business. They met their first
vehicles, Eclimo has already made its
appearance at international scooter Kuala Lumpur, Penang,
customer, Kentucky Fried Chicken
Malaysia (KFC). KFC Malaysia was
trade shows. Investors from Japan
and Germany had approached Eclimo
and Sungai Petani use
facing multiple handling and logistic
issues with their motorbikes for their
to acquire the design and the brand,
says Dato Dennis, who however
the Eclimo for their
delivery business in the major cities.
We approached them to offer the
insists on keeping Eclimo a truly
Malaysian electric scooter.
delivery services.
scooter rental program where Eclimo Eclimo is leveraging its
takes care of the maintenance of all knowledge and expertise in battery-
the scooters. manufacturing to keep the cost of the

MOVING FORWARD
The establishment of the exports from the E&E industry, and has
Electrical and Electronics Strategic thus far identified seven sub-sectors
Council (EESC) in 2015 is seen for future strategic development.
as an important development for In terms of market landscape,
the industry, with both the private the industry must continue to focus
sector and the Government working on innovation, especially in light of
together to lead the direction of the current trend of automation and
the industry in Malaysia. Co-chaired data exchange in manufacturing
by Malaysian American Electronics technologies. This has been dubbed
Industry Chairman Dato Wong Industry 4.0 and is characterised
Siew Hai and Malaysian Investment by the increasing digitisation
Development Authority Chief and interconnection of products,
Executive Officer Dato Azman value chains and business models.
Mahmud, its main members consist of Efforts must also take into account
representatives from MITI, MATRADE, prevailing economic and business
MDEC, the EPU, MIDA and Bank conditions, growing competition from
Negara Malaysia from the public neighbouring Vietnam and India, as
sector; and industry representatives well as the need for local SMEs to
from the semiconductor, industrial keep pace with MNCs.
system electronics, electronics
manufacturing services, LED, solar,
IoT and automation sub-sectors.
The EESC is aligned with the
Malaysian Governments aim to
increase high-value activities and
BUSINESS SERVICES
DATO SRI MUSTAPA BIN

MOHAMED
Minister of International Trade
and Industry
I am pleased to note the continuous

growth of the Business Services industry
in Malaysia, particularly in strategic
sectors such as the aerospace industry,
MRO services, as well as shared services
and outsourcing services. Malaysia must
keep moving up the services value chain
by focusing on higher value investments
that can enhance the knowledge
economy, provide a global outreach and
create skilled jobs. The NKEA Business
Services assumes a critical role in this
transformation journey.
For instance, the Shared Services and
Outsourcing industry has attracted over
RM700 million in investments, and the
industry outlook is bolstered through
various Entry Point Projects (EPP)
initiatives. Indeed, it is gratifying to see
the quality investments secured under the
various EPP initiatives in Business Services,
Carving
such as EPP7 which aims to make Malaysia
the hub for aerospace Original Equipment
Manufacturers (OEMs).
Malaysias
The NKEA Business Services aligns very
well with the national agenda to develop
the services industry. I am confident that
through close collaboration between
Niche in The various government ministries and

agencies, the industry will achieve its 2020
target and contribute towards the new 30-
Global Business
year transformation plan, Transformasi
Nasional (TN50), which will set an exciting
new vision for the nation.
Services
Industry
BUSINESS SERVICES
Local university graduates from the Graduate Employability Management Scheme - Shared Services and Outsourcing Programme.
OVERVIEW
The Business Services sector Malaysia as a data centre hub and
remained a valuable contributor developing SMEs in the global
to the national economy in 2016
despite the challenging external
aerospace manufacturing industry.
Overall, the NKEA achieved 112% of
Business Services
economic environment. Business
Services contributed RM58.6 billion
its KPIs in 2016.
Initiatives under Business
contributed RM58.6
in GNI in 2016, a 6.7% growth from
the previous year. However, the soft
Services also continued to drive job
creation. Most importantly, many
billion in GNI in 2016, a
business climate globally has posed
a challenge for the industries in this
of the created jobs were in the
higher end services and knowledge- 6.7% growth from the
NKEA, while shifting global trends intensive industries which will help
have also put added pressure on the move Malaysia up the value chain. A previous year.
sector to reinvent itself in order to total of 3,734 jobs were created in
remain competitive. Nevertheless, all the shared services and outsourcing
parties are responding appropriately industry this year, with programmes
to ensure that this NKEA is on track such as the Graduate Employability
to achieve RM78.7 billion in GNI by Management Scheme (GEMS)
2020. creating opportunities for students
In 2016, the Government invested to be trained as future leaders and
RM16.65 million in projects under high-skilled professionals as well as
this NKEA, in three main areas: ensuring a well-qualified workforce
building a globally competitive for the sector.
outsourcing industry, developing
BUSINESS SERVICES
SME CORP HELPS LOCAL SMES BREAK INTO

THE AEROSPACE INDUSTRY
We have been able
to surpass the targets
set for SMEs and show
a structured approach
to produce outstanding
outcomes.
The EPP8 pilot group at the Cranfield Management Development Centre.
SME Corporation Malaysias (SME able to surpass the targets set for SMEs Datuk Dr. Hafsah says that the focus
Corp) special programme to help and show a structured approach to on building up the SMEs was in three core
Malaysian SMEs get a foot in the door produce outstanding outcomes, she areas: marketing strategy, organisational
of the aerospace industry has blown says. transformation and technological
away all expectations - many SMEs have The pilot group of 10 SMEs were planning. Their progress was closely
almost doubled their revenue targets selected from 23 SMEs that were found to monitored by SME Corps consulting
for 2016, while some are already close have suitable aerospace manufacturing partner BDEC Resources Malaysia Sdn
to meeting 2017s forecasted revenue capabilities. Among them were medical Bhd, which ensured that the SMEs
targets as early as February. and automotive parts & equipment stayed on the right track. The SMEs were
The 10 pilot SMEs in the programme manufacturers that wanted to build a provided a maximum of RM500,000 in
- Aerospace Partners Engineering Sdn presence in aerospace. The pilot group matching grants.
Bhd, Elemac Precision Engineering Sdn was then put into an intensive process We have to make sure that the SMEs
Bhd, Innopeak Sdn Bhd, JWR Technology that pushed them to get the relevant themselves want to drive this process,
(M) Sdn Bhd, Selia-Tek Industries Sdn certifications as well as upgrade their says Datuk Dr. Hafsah. Now that the pilot
Bhd, AllStar Manufacturing Sdn Bhd, manufacturing equipment and adopt group has recorded success, SME Corp
Coraza Systems Malaysia Sdn Bhd, lean production - all important elements is ready to enrol the next batch of SMEs
Jecmetal Industries Sdn Bhd, Nagoya for aerospace component suppliers. into the same process to help them break
Plastics Industry Sdn Bhd and Venture The group was also brought to the into the aerospace supply chain, while
Diecasting Sdn Bhd - grossed RM9.84 UK for 10 days for what Datuk Dr. Hafsah also continuing to monitor and evaluate
million in revenue in 2016, exceeding the describes as total immersion in the the performance of the SMEs involved in
target of RM5.4 million. As of February aerospace industry. Activities included the pilot.
2017, total forecast revenue from the pilot visits to the Cranfield Management To prepare for the future, Datuk Dr.
group hit RM20.01 million, against the Development Centre at Cranfield Hafsah stresses that the SMEs have to
total 2017 target of RM24.6 million. University where they learnt the key be ready to adopt upcoming trends
SME Corps CEO Datuk Dr. Hafsah requirements to becoming a player in the including the use of robotics and
Hashim says the stellar results were the aerospace industry. automation as well as e-procurement.
result of a carefully designed programme The SMEs also met some established Voicing her confidence in the abilities of
to groom and nurture SMEs to become aerospace companies in Malaysia such Malaysian SMEs, she says, They are agile
globally competitive in the aerospace as Spirit Aerosystems Malaysia, UMW and adaptable.
manufacturing industry. We have been Aerospace and CTRM.
BUSINESS SERVICES
A330 CAE 7000XR Series full-flight simulator.
In the shipbuilding and ship Becoming a Global One of the key initiatives is to
Contender in Aerospace
repair (SBSR) sector, the Ministry provide opportunities for SMEs to
of Finance introduced new tax thrive in this specialised market by
incentives to boost investments encouraging upskilling in the local
in the industry. SBSR companies Malaysia has laid the foundation industry. These initiatives include
can now either qualify for for a thriving aerospace industry building the original equipment
Pioneer Status, which provides since the launch of its first National manufacturer (OEM) ecosystem with
a 70% income tax exemption on Aerospace Blueprint nearly 20 years the development of human capital
statutory income for five years, ago. The NKEA Business Services and R&D capabilities in structures
or Investment Tax Allowance of further acts as an engine to drive the and component manufacturing. In an
60% on the first qualifying capital growth of this industry, latching upon effort to attract large OEMs, efforts
expenditure incurred within five the globalisation of the industrys have also been made to develop
years. The scheme will be managed supply chain, with initiatives aimed the supply chain in Malaysia to allow
and evaluated by the Malaysian at making Malaysia among the for better quality control and more
Investment Development Authority 3Ms of the aerospace world, technology integration at lower costs.
(MIDA). alongside Mexico and Morocco which To date, aerospace SMEs in
have flourished as major hubs for Malaysia have a cumulative revenue
aerospace services for America and of approximately RM20 million. The
Europe respectively. lead agency SME Corp has identified
BUSINESS SERVICES
Minister of International Trade and Industry, Dato Sri Mustapa bin Mohamad, at the launching of the Malaysia Aerospace
Industry Association on 28 March 2016.
10 additional SMEs to nurture into KLIA, and the inauguration of a

global players and link with major new USD10 million A330 full-flight
Activity in the sector names in the aerospace industry. To

this end, SME Corp, together with
simulator at the Asian Aviation
Centre of Excellence (AACE), a
is also expected to MITI and MATRADE, led a delegation

of these SMEs to the United Kingdom
joint venture between AirAsia and
aviation training provider CAE.
be spurred by the to showcase their capabilities at the

Farnborough International Airshow
Other major investments included
Japans Asahi Aero Malaysia Sdn
development of Asia from 16 20 July 2016. In addition,

the recently established National
Bhd opening a RM18 million aircraft
parts surface treatment facility, its
Aerospace City (AAC), Aerospace Industry Coordinating

Office (NAICO) under MITI has
first in Southeast Asia, and Swiss
company RUAG Aviation opening its
which will serve as a assisted companies in other sectors

like oil and gas and automotive make
new 24,000-square-foot component
repair centre, the first of its kind in
hub for aerospace OEMs a successful transition into aerospace.

Despite a challenging year for
Asia.
Activity in the sector is also
in Southeast Asia when the aerospace industry, investment

activity continued to be robust.
expected to be spurred by the
development of Asia Aerospace City
it is completed in 2018. Among the highlights was a joint

venture between Malaysia Airlines
(AAC), which will serve as a hub
for aerospace OEMs in Southeast
and US company Aircraft Propeller Asia when it is completed in 2018.
Service to set up Asias first ATR The AAC aims to be a catalyst for
aircraft turboprop MRO facility in the advancement of the aerospace
BUSINESS SERVICES
industry by providing a one-stop represent the voice of all Malaysian to date through this NKEA already
destination for a range of relevant companies in the aerospace sector, surpassing the original 2020 target
services to the industry, such as and together with NAICO, establish of 43,330. Since 2004, Malaysia has
research and development, training an integrated national front that will also been consistently ranked the
and business consulting. In addition, propel Malaysias aerospace industry third most attractive SSO location
industry promotion activities were further into global prominence. in the world by AT Kearneys Global
further enhanced by the successful Services Location Index.
Malaysia, the Gateway

organisation of the second Kuala During the year, Malaysias
Lumpur International Aerospace position as the regional gateway
to Asias Outsourcing
Business Convention (KLIABC) by for SSO was strengthened with
MATRADE. The event, held from 7 the launch of the Global Business
Industry
to 9 December, hosted aerospace Services (GBS) initiative in Iskandar
players from over 30 countries Puteri, Johor. A specialised
and featured exhibitions from 250 programme, GBS Iskandar, has
companies, with over 3,000 business Malaysias shared services and been initiated by i2M Ventures Sdn
meetings established. outsourcing (SSO) industry has Bhd (a subsidiary of Khazanah
As the sector grows, the various continued to grow from strength Nasional Berhad) to facilitate local
industry players will need a common to strength. In 2016, the industry, of and foreign businesses in setting
platform with which to voice their which the Malaysia Digital Economy up their GBS operations in Iskandar
concerns and aspirations. In March Corporation (MDEC) coordinates Puteri.
2016, the Malaysia Aerospace Industry as the lead agency, recorded In line with this, the Business
Association (MAIA) was formally RM766 million in investments and Services sector has also been
launched. The association will saw the creation of 3,734 jobs, with recognised as a new promoted
function as an NGO to support and the total number of jobs created sector in Iskandar Malaysia alongside
Launching of the inaugural Global Business Services Forum (2016) in Iskandar Puteri, Johor.
BUSINESS SERVICES
Exhibit of Electric Vehicle at IGEM 2016, promoted by GreenTech Malaysia.
eight other sectors such as creative certified and delivered by trainers Water (KeTTHA) and held from 5
content, tourism and education. As a from the International Association to 8 October, saw 33,903 visitors
promoted sector, qualified Business of Outsourcing Professionals. Since attending, with 350 exhibitors
Services investors are entitled to 2014, 267 undergraduates have been from 33 countries participating in
a host of incentives and benefits trained, with 199 students placed in the event. Furthermore, a record
offered by Iskandar Malaysia including internship programmes at 150 SSO RM2.2 billion in business leads were
tax exemptions and flexibility on companies. generated as a result of various
recruitment of foreign knowledge business networking opportunities
Accelerating the
workers. held throughout the four days.
As part of the initiatives to
Green Economy
develop and upskill talents in the
industry, Outsourcing Malaysia
in collaboration with MDEC and
TalentCorp is running the Graduate Malaysias green technology
Employability Management Scheme sector showed healthy growth in
Shared Services and Outsourcing 2016. Industry revenue reached
(GEMS SSO). The programme aims RM5 billion, while RM3.5 billion
to enhance the employability of fresh worth of green technology
graduates to meet the talent needs investments flowed into the sector.
of the GBS sector through industry- The International GreenTech
oriented training to final year students and Eco Products Exhibition &
from local universities. Participants will Conference Malaysia (IGEM), which
participate in a 10- to 12-day intensive was organised by the Ministry of
training course, internationally Energy, Green Technology and
BUSINESS SERVICES
Establishing Malaysia On the policy front, various
as a Global Data
initiatives are being put in place
to help the industry improve
In August 2016, VADS
Centre Hub
its competitiveness. Challenges
in rising power costs are being
progressively addressed through
Bhd commenced
Malaysia continues to ride the
wave of demand for data centres
the introduction of efficiency-
based schemes like Enhanced
construction of a new
fuelled by companies need to
store and use digital information.
Time of Use (ETOU) and Incentive-
Based Regulation (IBR) pricing,
100,000-square-foot
In August 2016, VADS Bhd
commenced construction of a new
which provide greater visibility for
end-users to manage consumption
Tier III data centre in
100,000-square-foot Tier III data
centre in Nusajaya, Johor, which will
and realise greater
Meanwhile, MDEC will champion
savings.
Nusajaya, Johor, which
be connected to a similar facility
to be built in Cyberjaya, Selangor
the development of the worlds first
Digital Free Zone, which will provide
will be connected to
through a 100Gbps high-speed fiber
optic link. VADS also announced
a secure and integrated framework
for products and services to be
a similar facility to
its establishment of the VADS
Marketplace, Malaysias first cloud
stored, transferred, exchanged and
utilised. This will further position
be built in Cyberjaya,
exchange, which will be anchored
by its dual data centre plan. The
Malaysia as a leader in global data
centre services.
Selangor through a
cloud exchange platform will allow
the company to provide hybrid or
100Gbps high-speed
multi-cloud solutions to customers
and that will be augmented by its
fiber optic link.
twin-core strategy.
Artist impression of VADS data centre in Nusajaya Tech Park.

BUSINESS SERVICES
Offshore support vessel under construction by an EPP6 stakeholder.
Shipbuilding and Ship

Repair Get a Boost Amidst the bearish outlook
for the oil and gas sector, which
Malaysias shipbuilding and ship makes up the majority of Malaysias
repair (SBSR) industry received SBSR industry demand, initiatives
a timely boost in 2016 with the are being put in place to stimulate
introduction of new tax incentives. growth in other niches, led by
With these new incentives, SBSR the Malaysian Industry-Government
companies can now either qualify Group for High Technology
for Pioneer Status, which provides (MIGHT). Among the growth areas
a 70% income tax exemption on is the fishing vessels industry, which
statutory income for five years, should see the introduction of new
or Investment Tax Allowance of vessel construction standards and
60% on the first qualifying capital guidelines in 2017. These standards,
expenditure incurred within five developed by the Department of
years. Existing SBSR companies can Fisheries in collaboration with
also enjoy Investment Tax Allowance MIGHT as well as other industry
of 60% on the additional qualifying players and certification bodies,
capital expenditure incurred within will lift safety and hygiene
a period of five years. Incentive conditions for locally built vessels
applications and monitoring will be to internationally recognised levels,
managed by MIDA, and they provide which will contribute to enhancing
further assistance for industry exportability, facilitating commercial
players to invest in the midst of a financing and promoting sustainable
challenging business environment. fishing practices.
BUSINESS SERVICES
Maintenance and repair work onboard vessel.
The NKEA Business Services prevailing uncertainty in the global

will continue efforts to develop economy has hindered spending
Malaysia as the premier destination on business services. Nonetheless,
for diversified, high-value industries opportunities remain within the
such as aerospace, SSO services industry, and initiatives under this
and data centres. However, Malaysia NKEA will seek to capitalise on
will need to improve and develop this by encouraging cross-border
its competitive advantage against partnerships involving local SMEs.
other markets offering lower The placement of this NKEA under
costs and attractive government the oversight of MITI will also
incentives, and the NKEA will focus ensure a more focused approach
on enhancing policies, facilitating to growing the Business Services
incentives and strengthening critical industry in line with Malaysias trade
enablers such as connectivity, energy and investment policies.
and data governance. Additionally,
DATUK SERI PANGLIMA

DR. MOHD SALLEH
TUN SAID KERUAK
Minister of Communications
and Multimedia
Last year saw this NKEA record steady progress

towards achieving its 2020 goals, creating not only
a financial impact but also sizeable social benefits.
This is in line with the Governments plan to uplift
the rakyat, especially the bottom 40% of income
earners (B40) which make up the low-income
group, by leveraging digital platforms to create
additional income.
This Digital Economy agenda will enable
Malaysians, especially the B40 and new
entrepreneurs to tap into new economic
opportunities, allowing equitable distribution of
wealth. To this end, we have worked closely with
the industry to ensure availability of connectivity in
rural areas to narrow the urban-rural digital divide.
This has been anchored by our Broadband-for-All
initiative which creates a healthy ecosystem to easy
access for digital platforms, supported by roll out
plan of high speed broadband (HSBB) coverage
and the completion of the Bay of Bengal network
to strengthen our regional connections.
Our e-Government initiative represents another
way we are making the lives of Malaysians better,
promoting efficiency and effectiveness of public
service delivery in healthcare services, government
online services and document management. We
also remain mindful of further improvements
that can be made to the e-Government initiative
Creating
to ensure the rakyat can interact easily with the
Government, lower our impact on the environment
and reduce possible leakages.
As we seek to accelerate our exports of creative
a Better Future
content in films, animations and games, our foreign
investments via the Film in Malaysia Incentive (FIMI)
will be enhanced, strengthened and able to provide
through Content
incentives to attract high-quality investments.
In the coming year, focus will be placed more on
the connected economy to create value by linking
and Connectivity
people, machines and organisations through
technology to crystallise the vision of this NKEA.
Creative Content from Malaysia has reached a Global Audience
OVERVIEW
This year saw several of coverage improved markedly
the initiatives in Communications through the rapid expansion of LTE
Content and Infrastructure (CCI)
NKEA flourish, particularly in the
coverage. The nations broadband
connectivity was further enhanced Creative content
areas of communications and by the completion of the Bay of
creative content. In the area of
communications, the focus shifted
Bengal submarine cable in the
first half of 2016. To ensure more
recorded strong
from infrastructure and access to
applications and content. The shift
Malaysians enjoy fast
broadband, the target for LTE
mobile
export growth
has been led by the private sector, coverage nationwide was raised
with an emphasis on realising the
connected economy by building
from 58% to 65% during the 2016
mid-year KPI review.
of 182% to reach
collaborative
linkages
relationships
through
and
technology.
Creative content recorded
strong export growth of 182% to RM1.217 billion.
Overall, CCI NKEA achieved 131% of reach RM1.217 billion. As the industry
its KPIs in 2016. matures, industry players have
The telecommunications industry also grown increasingly organised.
made significant progress in terms The Creative Content Association
of fixed and mobile broadband of Malaysia (CCAM) improved its production houses, particularly
coverage, with fixed broadband visibility and presence by adopting those which are smaller in size
expanding on high speed new marketing approaches in and do not have the funds or the
broadband phase 2 (HSBB2) selling content abroad, which has network to market their content
and sub-urban broadband (SUBB) helped expand the global market internationally, especially benefitted
projects while mobile broadband for Malaysian-made content. Local from CCAMs efforts.
NEW BAY OF BENGAL GATEWAY SUBMARINE CABLE

SYSTEM STRENGTHENS MALAYSIAS IP HUB POSITION
deeper. This makes it more costly to land
a cable in Singapore. There are also more
cable landing options in Malaysia where
space is vast and it is a broad corridor for
landing sites.
Malaysia has lot of land space,
hence providing more opportunities for
international content providers to house
their contents here, says Izani. He adds
that TM has worked with many major
content partners to host their content in
Malaysia under the Content Localisation
Mohamad Izani Karim Initiative (CLI), which helps boost the
General Manager for Carrier Network Development, TM countrys standing as a data centre hub.
Izani also noted that Malaysias energy
The Bay of Bengal Gateway (BBG) This as a result will help improve the costs are comparatively low. For data
Submarine Cable System which was broadband user experience in Malaysia, an centres, its all about space, power and
completed and commissioned in important thrust of the Communications connectivity, he says.
2016 provided yet more diversity and Content and Infrastructure (CCI) NKEA. The BBG is just one of the links that
robustness to Malaysias international It will also boost Telekom Malaysia TM has been putting in place as part
connectivity, strengthening its efforts to Berhad (TM)s broadband offerings of its plan to build a mesh network,
become a major regional IP hub. to international clients and make the extending the countrys connectivity and
The cable, which stretches over country more attractive to major content reachability. Izani says the country now
8,000km from Penang to the UAE and data centre players, as the latter is has at least five (5) cable links to the
will serve as an important alternative another focus area of the CCI NKEA. US and three (3) major links to Europe.
conduit for IP traffic between Singapore Mohamad Izani Karim, General TM is also eyeing regional growth and
and Europe via Malaysia. Currently, Manager for Carrier Network extending its reach within ASEAN.
many cables from Asia to Europe are Development, TM, noted that the BBG Izani further adds that building the BBG
routed through Egypt but with the is the first ever cable which connects did come with challenges, particularly
BBG as an alternative, the new cable Singapore to Europe via terrestrial cables pertaining to obtaining work visas
system will be able to serve as a load in Malaysia. He also said that the cables and shifting regulations in one of the
sharing mechanism if one link fails, design ensures the shortest possible countries along the cables route, which
thus minimising disruptions to the user latency and offers ample capacity to caused delays in the project.
experience. avoid congestion. In terms of spurring the development
Directly landing a cable in Singapore of the network industry in Malaysia,
The cable, which stretches is expensive. We are providing additional

options, he says. We can position
Izani suggests that there should be
more financial incentives. He notes that
over 8,000km from Penang Malaysia as a hub for IP traffic. the countrys economy will become
Malaysia has several advantages increasingly digitised and this will require
to the UAE will serve as over Singapore in terms of landing even higher levels of digital infrastructure
an important alternative cable systems particularly due to the

complexity and tougher requirement
support.
We need more capacity for the
conduit for IP traffic imposed by the Singaporean authorities. future, he says. The digitisation of the
With the heavy shipping traffic off economy and automation, all this is
between Singapore and Singapore waters, the submarine cable riding on connectivity. Broadband is key
Europe via Malaysia. systems are highly exposed to threats

of being damaged by the ships anchor
and to prepare for the future, we need
to beef up our networks both at the
and thus require the cables to be buried domestic and international front.
The LTE coverage

level achieved
in 2016 was
63.94%
Installation of Bay of Bengal cable system at the Kuala Muda landing station.
Enabling Inclusive is only 96% of the KPI target of

Workers during the installation of the
Growth through
133,000 new ports for 2016, the cable installation
cumulative total number of ports has
Internet Connectivity
reached 219,390, which exceeds the
cumulative target of 200,000 ports of 65% for 2016. When completed,
due to over-achievements from the SKR1M will enhance existing domestic
Ensuring seamless access to the previous years. The initiative is at submarine cable connectivity
Internet is a crucial enabler to achieve 72% completion, as is targeted to be between the peninsula and Sabah
inclusive economic growth and global completed in 2019. and Sarawak, and cater for future
competitiveness by leveraging digital To further enhance Malaysias bandwidth growth requirements.
platforms. Initiatives under the CCI connectivity, the 8,100 km long Bay As people increasingly access
NKEA have thus continued to improve of Bengal Gateway was successfully the Internet via mobile technologies,
Internet connectivity infrastructure in completed in 2016, creating a high- LTE has become more critical to
the country to help close the digital speed link between Malaysia, the the nations overall broadband
divide between urban and rural areas Indian sub-continent, Middle East infrastructure. This initiative achieved
as well as satisfy the growing overall and Europe. Built by a consortium significant progress in expanding
demand for broadband. comprising Telekom Malaysia, Dialog
During the year, the number of Axiata, Vodafone, Omantel, Etisalat,
ports rolled out providing high-speed
broadband in phase 2 with speeds up
Reliance Jio Infocomm, AT&T, China
Telecom and Telstra, the gateway
Broadband coverage
to 100Mbps in capital cities and major
towns exceeded the overall target
connects Malaysia, Oman, India,
Sri Lanka and the UAE through a
in the nation has
for the year of 240,000 total ports,
reaching 281,262 ports in 2016. Some
submarine cable and Singapore
through a terrestrial cable, enabling
increased with the
of the new towns and cities that
received HSBB ports include Kangkar
bandwidth growth.
Another initiative to enhance addition of 127,546
ports providing high
Pulai, Johor; Kemasek, Terengganu; connectivity is the System Kabel
Bukit Palah, Melaka; Kota Belud, Rakyat 1Malaysia (SKR1M) which
Sabah; and Lundu, Sarawak. will link Peninsular Malaysia with
Additionally, broadband coverage Sabah and Sarawak. The project is speed broadband in
in the nation has increased with the also on track for completion with
addition of 127,546 ports providing
high speed broadband in sub-
no foreseeable delays. The current
cumulative progress stands at 70.7%,
suburban areas.
urban areas. While the achievement exceeding the cumulative target
The number of
Ministries and Agencies
using the Digital
Document Management
System 2.0 (DDMS 2.0)
has risen to 33.
DDMS improves efficiency of Government document management.
coverage to more cities in 2016, driven institutions will be equipped with the RM670 million target for the
by private sector participation. The e-healthcare. Currently the initiative year. Among notable examples
coverage level achieved in 2016 was is 84% completed against its 2020 of Malaysian movie productions
63.94%, a significant improvement target. that did well abroad in 2016 was
over the 53.5% coverage achieved As part of the Governments BoBoiBoi The Movie by Animonsta,
in 2015. The target for LTE coverage continuous effort to improve its which became the highest grossing
was raised from 58% to 65% during services to the public as well as animated movie in Indonesia
the 2016 mid-year KPI review to embrace transparency and reduce and reached a merchandising
push for even greater coverage and the use of paper, the number of agreement with TOMY in Japan.
enhance the rakyats experience. Ministries and agencies using the Giggle Garages Origanimals
Digital Document Management also made a mark internationally,
Enhancing Public Service

System 2.0 (DDMS 2.0) has risen to winning awards in South Korea and
33, surpassing the target of 10. New Japan. It is now broadcasted to over
Delivery
agencies and ministries which have 140 million subscribers worldwide
come on board include the Malaysia including in countries like Mexico,
National Archives, the office of the the US and Ireland. Other locally-
Public health also received a Chief Government Security Officer made animated hits included
boost as e-healthcare applications and the Ministry of Education. Chuck Chicken, which is one of
saw higher completion rates. the most watched animated series
Realising the Global

Some 515 healthcare facilities on Chinas top IPTV platform iQiyi,
have implemented e-healthcare with 800 million views; and Didi
Potential of Malaysian
applications, representing a 103% and Friends, which has garnered
achievement of the target of 500 some 213 million views on YouTube
Creative Content
facilities. E-healthcare application since its launch in May 2014.
boasts many benefits including On the gaming front, Malaysian
improved waiting time, reduced talent worked on many popular
errors in medication as well as The CCI NKEA initiatives games including Final Fantasy XV,
better access and integration of launched in previous years have Gears of War 4 and Uncharted 4.
patient records. With more facilities begun to bear fruit with Malaysia Appxplore also became the first
using e-healthcare application, starting to carve a place for itself Malaysian game company to launch
patients can expect to experience in the global filmmaking industry. an initial public offering and was
better service improvement. By Exports of creative content listed on the Australian Securities
2020, 1061 Klinik Kesihatan, dental exceeded expectations in 2016, Exchange in January 2016. The
clinics as well as 150 hospitals and surpassing RM1.217 billion against game developer has six games with
over 16 million downloads and has the winnings of a local film, Redha
been featured as Editors Choice on (Beautiful Pains). The film won
both the Google Play Store and the several international awards, among Ten Malaysian films were
Apple App Store. them the Merit Award at the Los
CCAM, representing the Angeles Awareness Film Festival showcased at Malaysia
National Film Development 2016. It was also submitted for
Corporation Malaysia (FINAS), nomination for the Golden Globe Goes to Cannes, including
organised and spearheaded Awards, highlighting the growth of
the screening of five Malaysian the film making industry in Malaysia Tamil language crime
films to industry players. CCAM over the years. A new initiative,
also assisted the directors and Malaysia Goes to Cannes, at the drama Jagat which
producers in their efforts to push Marche Du Film, was also successful
their content onto the global scene, in bringing international attention to was also selected for
playing an important role in linking Malaysia for quality films and work-
local producers with international in-progress projects for potential this years New York
investors and distributors for collaborations or programmes for
productions currently in progress. future film festivals. Ten Malaysian Asian Film Festival; Mohd
The success of Malaysian films were showcased at Malaysia
content abroad was supported Goes to Cannes, including Tamil- Khairul Azris Pekak
by marketing of films and TV language crime drama Jagat
series at foreign film fairs such as which was also selected for this and Syamsul Yusofs
the European Film Market Berlin years New York Asian Film Festival;
and the Hong Kong Filmart. An Mohd Khairul Azris Pekak and Munafik.
outstanding achievement in the Syamsul Yusofs Munafik.
film making industry is reflected in
Telecommunications tower
In an effort to improve its content practitioners - such as

efficiency and provide greater script writers and cameramen - to
clarity on the initiative, FINAS has upgrade their skills, knowledge and
drafted new guidelines for the creativity in order to gain industry
Film in Malaysia Incentive (FIMI). recognition. The platform will take
The new guidelines, which include the form of the Creative Content
a simplified application process, Industry Recognition Framework
will come into effect January 2017. (CCIRF). Certified practitioners
Given the strategic nature of FIMI would better be able to secure jobs
and its encouraging early successes, from local and foreign production
in 2017, FINAS in collaboration houses and earn higher incomes.
with other related agencies plan The Governments plan to uplift
to further improve FIMIs existing the rakyat, especially the bottom
processes. 40% income earners (B40) and
Another major industry-led new entrepreneurs to tap into new
association, the Creative Content economic opportunities, allowing
Industry Guild Malaysia (CCIG), equitable distribution of wealth
continued to raise standards in by leveraging digital platforms
the industry. In 2016, CCIG worked to create additional income, will
on building a platform for creative remain the focus of this NKEA
going forward.
Narrowing social economic disparity through Pusat Internet 1Malaysia programme.
To continue the progress of In line with efforts to expand

providing high speed internet e-Government services, the
connection nationwide, the Government will focus on shifting
complete rollout of ports for HSBB2 physical transactions online,
as per the contract with Telekom targeting to increase online
Malaysia is aimed to be completed transactions by 12%. Next year,
by December 2017. The target for DDMS 2.0 will be rolled out to more
HSBB2 is for 390,000 cumulative agencies and it is targeted to be
number of ports with speeds of adopted by 30 new agencies by the
up to 100Mbps to be rolled out end of 2017. To this end, the Ministry
in major towns and cities. SUBB of Communications and Multimedia
port rollout will now be in its third will work together with the various
year. The target for SUBB is to roll Ministries to establish strategies to
out 317,000 cumulative number of encourage more people to perform
ports in suburban areas. The telco their transactions online.
industry will also be encouraged
to pursue wider coverage of LTE
nationwide.
HEALTHCARE
DATUK SERI DR. S.

SUBRAMANIAM
Minister of Health
The healthcare sector in Malaysia remained

an important driver of economic growth in 2016,
supported by the new growth areas catalysed by the
Healthcare NKEA. This has been further anchored
on the Governments steadfast efforts to enhance
the delivery of care through capability and capacity
building, together with policy improvements and
active promotions in collaboration with relevant
Ministries and agencies.
Certainly, the Ministry strives to achieve
a mutually beneficial scenario for all relevant
stakeholders in health as it recognises that quality
healthcare is a crucial element of development into
a high-income nation. The Government thus seeks
to nurture and further enhance this ecosystem,
which enables technology adoption and efficiency.
This is to incentivise healthcare providers to provide
quality and affordable healthcare for the benefit of
the rakyat.
Throughout the years, Malaysia had benefited
from the dichotomous health system whereby the
public and private health system co-existed and
leveraged upon one another to provide health
service to the public. I am also pleased to witness
initiatives under the Healthcare NKEA bearing fruit
as reflected by our results in pharmaceutical exports
and healthcare travel this year. This had allowed
the expansion of the healthcare industry which
in turn helped create job opportunities, expand
the Gross National Income and at the same time
ensure healthcare remains affordable to the public.
Enhancing
Unsurprisingly, Malaysian Health System is lauded as
one of the best in the world and we have managed
to achieve the Universal Health Coverage despite
Healthcare
having only achieved independence 60 years ago.
This healthy ecosystem needs to be enhanced
further whereby collaboration, cooperation, smart
Delivery
partnership and mutually beneficial health policies
and initiatives can be crafted to pave way for a
better symbiotic relationship between the two
systems.
HEALTHCARE
MOH plans to launch the
Malaysian Health Transformation
Initiative. I am pleased with the
OVERVIEW
progress made and I am certain that Initiatives under the Healthcare The medical devices sector
this will help to converge the two NKEA in 2016 focused on the represents another area which has
systems together rather than diverge clinical research, pharmaceuticals, allowed Malaysia to spur growth,
it apart. It is now in the developmental medical devices and healthcare recording RM9.69 billion in exports
phase and consultations will be held travel sectors, which continued to in 2016. In addition to facilitating
to seek the input of all stakeholders thrive following the efforts that technology and knowledge transfer
to ensure its sustainability and long- have been put in place to catalyse to catalyse the development of
term viability. In the end, the public growth since 2011. In 2016, the NKEA local capabilities, efforts have
and nation will be the real winner achieved 100% of its KPIs. been focused on creating a
from this finely balanced ecosystem. Clinical Research Malaysia holistic ecosystem to support the
The aim is to have a sustainable and (CRM), a non-profit company wholly sector. This year saw a significant
resilient health system that provides owned by MOH, was established achievement with the establishment
equitable, affordable, and accessible in June 2012 to position Malaysia of two Good Laboratory Practice
high quality health service to the as a preferred global destination (GLP) labs, which will help local
rakyat. for industry-sponsored research medical device-makers cut costs in
(ISR) and to function as an enabler testing the safety of their products.
and facilitator to the industry and In promoting Malaysia as a top
medical fraternity for the conduct of healthcare travel destination, the
clinical trials. During the year, CRM Malaysia Healthcare Travel Council
reached a crucial juncture with the (MHTC) has facilitated a number
introduction of Phase 1 clinical trials of public-private partnerships as
in Malaysia, marking the countrys well as Government-to-Government
move higher up the clinical trial agreements, contributing to a
value chain. significant increase in healthcare
The pharmaceuticals industry travel revenue from RM527.3 million
recorded exports of RM737.31 in 2011 to RM1.12 billion in 2016. The
million in 2016, maintaining its revenue is targeted to reach RM1.3
momentum as the highest value billion, with one million healthcare
EPP in the Healthcare NKEA. It has travelers, in 2017, following various
also enabled important technology collaborations and engagements
transfer and provided a platform with target markets like Indonesia,
for local companies to penetrate China, Vietnam and Myanmar.
new markets. This can be seen in This NKEA also implements
the strategic partnership between initiatives for Seniors Living, taking
Winthrop (M) Sdn Bhd, a subsidiary into account opportunities and
of Sanofi Aventis Group (Sanofi), challenges faced by the elderly,
and Xepa-Soul Pattinson (M) Sdn particularly on their healthcare
Bhd (Xepa) formed under a new needs. In line with this, efforts have
EPP in 2016. This will see Xepa locally focused on providing aged care
Infectious disease diagnostic kits developed manufacturing a range of Sanofis services including mobile healthcare
and manufactured by MEDIVEN which can
detect Malaria, Leptospirosis, Dengue, Zika
products to be manufactured locally services and aged care residential
and Chikungunya virus are on par with by Xepa and leveraging Sanofis facilities. These are led by the
international guidelines and standards. extensive international distribution Love On Wheels mobile healthcare
network for export in Southeast Asia. services provider and Eden-on-the-
HEALTHCARE
NEW HOPE FOR CHRONIC KIDNEY DISEASE

PATIENTS
that they can have new hope and
enjoy a better quality of life, including
continuing to work independently,
enjoying better mobility and be less
bound by hemodialysis services. In
addition, Lucenxia INTELLIS comes
with full telemedicine functions,
including online daily monitoring
instead of quarterly, early detection,
enhanced safety, as well as automatic
configuration through prescription
that is administered online.
According to Lucenxias
Managing Director, Low Chin Guan,
Lucenxia INTELLIS is a Malaysian
innovation that will greatly benefit
Malaysians, and soon the rest of the
world. We expect to see INTELLIS
fulfilling the Governments vision of
Malaysia Minister of Health, YB Datuk Seri S. Subramaniam, launches INTELLIS delivering better clinical outcomes for
CKD patients. As Malaysia focuses
more on research-driven healthcare,
In January 2016, Lucenxia Malaysia Dialysis at home can greatly INTELLIS is one of our first and most
launched the Lucenxia INTELLIS, improve quality of life, which allows impressive contributions to global
an Intelligent Automated Peritoneal patients to regain control of their healthcare.
Dialysis (APD) cycler designed for daily activities. Unlike in-centre Low adds that the company is
patients with chronic kidney disease haemodialysis, a more common committed to providing hope and
(CKD) to be treated at home, while blood-filtering procedure, PD utilises affordable health care solutions that
they are asleep. The machine the patients peritoneal membrane in can improve quality of life.
provides new hope and enhances the the abdomen to remove excess fluid Lucenxia is committed to
quality of life of patients, helping ease from the body. PD easily fits into a creating and delivering technologies
the strain on resources catering to patients daily life due to its versatility that can reduce barriers to treatment,
the rapidly growing number of CKD and safety. There are many benefits enhance and extend the lives of
patients in Malaysia. to a patients physical and mental patients, while improving quality
Peritoneal Dialysis (PD) is a lesser health associated with this type of of living around the world, besides
known dialysis treatment in Malaysia treatment. A PD patient is able to reduce healthcare costs. In the case
compared to the more widely used be treated at home, at work, or even of haemodialysis, both the cost and
haemodialysis. More than 90% while travelling. They have flexible lack of mobility of current systems
of patients who undergo dialysis treatment times, and most are able to have made broader access to dialysis
in Malaysia receive haemodialysis eat a more regular diet, allowing them treatment difficult and expensive.
treatment. The average CKD to continue living a more normal life. Our goal and success with the
patient receives three treatments at Lucenxia with the INTELLIS APD INTELLIS APD cycler is to build a
haemodialysis centres every week, cycler seeks to improve accessibility, unique, internally developed system
with each session lasting between outcomes, affordability, operational that will be portable, will lower costs,
three to five hours, while PD allows ease, and environmental protection and will be more efficient in its use
for patients to receive treatment at while providing peritoneal dialysis and other critical features than
the comfort of their own homes. services to more CKD patients so existing dialysis systems.
Source: Smart Investor

HEALTHCARE
Park retirement village in Kuching,
Sarawak.
The Healthcare NKEA will
retain its focus on driving growth
in key economic engines such as
medical device exports and health
travel, while also assist with the
implementation of the blueprint
for health transformation to ensure
the sectors optimal utilisation of
Government resources.
MoU Signing between CRM and Drugs for Neglected Disease Initiative (DNDI).
Clinical Research Driving

This MoU will pave way for a possible treatment option for Hepatitis C which will
bring down the cost of treatment from USD 100,000 to USD 300 per patient.
the Way Forward Overall, the strategies initiated by companies to give masterclass
CRM from its inception in 2012 have training in oncology clinical trials
Malaysia has emerged as an been very encouraging. It achieved and many other capability building
ideal host for clinical research due 105% of its key performance index trainings.
to its well-developed healthcare 1 (KPI 1) determined by the number The number of new principal
system with a pool of highly qualified of ISRs conducted in Malaysia during investigators (PI) stood at 184 as
medical professionals, state-of- the year 2016. This translates to 162 of December 2016, a 167% increase
the-art medical centres and an ISRs conducted against a target of from 69 recorded in 2015. This is
excellent healthcare system. In 155, which was achieved despite a the first time growth was recorded
addition, the countrys consistent 10% global decline and 30% decline since 2008. This is directly related
start-up timelines, prevalence of in Southeast Asia. Meanwhile, the to the 11 State Research Days which
non-communicable diseases (NCDs) number of clinical trials performed CRM supported in 2016. Additionally,
coupled with the populations diverse in Ministry of Health facilities during CRM has also participated in
genetics, competitive trial costs and the same year achieved 102% (KPI 2: various National Scientific/Medical
unwavering commitment from the 101/99) of its KPIs. Society meetings and conferences
Government provide a conducive The number of sponsors and to encourage young clinicians to
environment for safer, more cost contract research organisations participate in ISRs as investigators.
efficient and quality trials with shorter (CROs) utilising CRMs services also Further expanding Malaysias
timelines. rose in 2016. Up until December clinical research ecosystem, in
The growing prominence of 2016, there was a 36% growth in September 2016 the National Cancer
clinical trials in Malaysia is decidedly the number of sponsors (2016: 114 Institute (NCI) opened its doors to
positive in its socioeconomic impact vs. 2015: 84) while the number of conduct ISR in oncology, where most
industry-sponsored research (ISR) CROs increased by 15% (2016: 39 of the current and upcoming research
including interventional researches, vs. 2015: 34) during this time period. projects are focused on. During the
i.e. studies that compare novel The GNI created by clinical trials in year, CRM provided training and
therapy versus standard care - opens 2016 totalled over RM196 million, a development for NCI investigators
up options for clinicians to expand substantial increase of RM71 million and staff to their Clinical Research
their patients treatment options. from 2015 despite the decline in the Centre. Since then, NCI has received
Patients who have exhausted their number of trials conducted. 19 feasibility studies. As at the end
options under standard care like CRM has also increased the of 2016, four site qualification visits
oncology could also pursue new number of feasibility studies by 122.5% (SQVs) were conducted and of these,
avenues of treatment and potentially in 2016 in comparison to 2015 and two studies were awarded to NCI.
receive better care. Furthermore, had recorded a 294% increase in the SQVs are conducted by sponsors to
medical institutions participating number of new companies (sponsors select investigators and to determine
in ISR can expand treatment to and CROs) since 2014 (53 in 2014 vs the sites ability to conduct a clinical
more patients without having to 153 in 2016). In addition to this, CRM trial. Additionally, two investigators
permanently expand their capacity. has partnered with pharmaceutical were given the opportunity to
HEALTHCARE
by a healthy ecosystem for clinical leading global network that fosters

The growing prominence research in Malaysia, which allows an integrated and sustainable ethical
of clinical trials in Malaysia for speedy and reliable delivery of review system towards quality
quality research due to efficient culture in health research.
is decidedly positive in approval timelines and availability Clinical research activity has
its socioeconomic impact of high quality research centres. been further supported by CRMs
CRM has shortened the Clinical provision of sites and investments
-industry-sponsored research Trial Agreement (CTA) review and into equipment to MOH to conduct
(ISR) including interventional approval timeline from three months ISR.
in the past to 14 working days. It Going forward, CRM will ensure
researches, i.e. studies that also launched the e-submission, more active engagement with
compare novel therapy versus which will further reduce the future research sites and doctors through
review timeline to five working days. investigator dialogues as well as
standard care - opens up Furthermore, CRM has seconded clear guidelines on the clinical
options for clinicians to expand staff to the Medical Research and trial landscape in Malaysia are
Ethics Committee (MREC) and to finalised and disseminated quickly
their patients treatment the Medical Device Authority (MDA) for the industrys sustainable and
options. Patients who have to improve approval timelines by responsible growth.
ensuring that the quorum for meetings ISR activity is now poised to
exhausted their options under are met, sending notification to the venture into first-in-human trials with
standard care like oncology members, preparing decision letters the launch of Phase 1 Realisation
to the sponsors as well as assisting in Project (P1RP) for clinical research.
could also pursue new avenues queries from the industry. This will move the country higher
of treatment and potentially Prior to seconding a staff to up the clinical research value chain
MREC, meetings were only held following capability-building in late
receive better care. once a month, which resulted in a stage clinical trials previously. The
longer approval time. The current ability of Malaysia to conduct Phase
I trials will give CROs and sponsors
an option to conduct this type of
trials as previously they had a limited
choice of which country they can
conduct Phase I trials in.
MOH via CRM is now developing
guidelines for first-in-human trials
in Malaysia as it prepares to introduce
the ecosystem for such trials in
2017. Complementing this is the
launch of the Pre-Clinical Research
collaboration, which sees the
Institute of Medical Research (IMR)
Malaysian Phase I Clinical Trial Guidelines committee members. CRM via Phase
I Realization Project (P1RP) is completing the Clinical Research ecosystem by working together with multinational
making sure Malaysia is ready to conduct Phase I trials including First in Human companies in the field to conduct
trials. The guidelines will be ready in 2017. high value clinical trials in the country.
The Preclinical Phase I project is also
showcase NCIs capability with the two weekly meetings are fixed expected to spur the local industry
AstraZeneca Global Medical team and announced in the website in towards discovery and eventually
during the European Society for order for the industry to plan their manufacturing of innovator drugs in
Medical Oncology Conference in submissions. MREC has also been Malaysia, as opposed to importing or
Copenhagen, Denmark in October accredited by the Forum for Ethical sourcing for generic drugs.
2016. Review Committees in the Asian and
This success has been supported Western Pacific Region (FERCAP), a
HEALTHCARE
In 2016, MEDIVEN rceived the Frost & Sullivan Excellence Awards for the Entrepreneurial company of the year in
in vitro diagnostic for infectious diseases.
Encouraging the Growth

million in investments.
This partnership will see Xepa
of the Pharmaceutical
manufacturing patented products
for a series of Sanofis products.
Industry
The collaboration will also enable
technology transfer including the
know-how of using new technology
The pharmaceuticals-related involving the latest compliance of
EPPs have been instrumental ATEX, the European directives for
in spurring the employment of controlling explosive atmospheres,
technical staff and knowledge in a new facility with fluidisation
workers, and has helped various granulation and OEB 3 containment
local companies penetrate foreign system to be brought into Malaysia. Biocon Limited has commenced
markets for pharmaceutical The design of the new facility is production of rh-insulin and insulin
products in a short period of time. currently ongoing. analogues as well as the final drug
product in vials and catridges for
This has contributed to consistent Aside from the benefits accrued sale to patients.
growth in export earnings from 2011 to all parties through improved
to 2016. As at December 2016, the access to cutting-edge technology as well as the final drug product
countrys pharmaceuticals exports and export markets, MOH will also in vials and cartridges for sale to
had risen 17.44% to RM737.31 million benefit through the savings that patients. The facility is the largest
from RM627.80 million in 2015, with can be made from the lower cost of integrated insulin manufacturing
export targets rising since 2014 due locally-produced medicines while plant in Asia, employing a team of
to continued encouraging growth. lowering foreign exchange risk by over 450, including 425 Malaysians.
The sector has also seen reducing the need for imports. The plant has received the cGMP
growing interest from MNCs to certification from the National
invest in Malaysia and partner with Project Champions Pharmaceutical Regulatory Agency
local companies as reflected by the (NPRA).
new project undertaken by Xepa, Biocon Limited Biocon has also built a
the manufacturing arm of Apex Following the operationalisation dedicated state-of-the-art research
Healthcare Berhad and Winthrop, of its US$300 million and development facility which
the generic arm of world-renowned biopharmaceutical research and includes capabilities for pilot scale
healthcare company Sanofi. The development and manufacturing drug manufacturing in real-time
project is targeted to contribute facility in mid-2015, Biocon Limited conditions.
RM41.1 million in GNI, create 52 has commenced the production In addition to creating local
skilled jobs and generate RM69.6 of rh-insulin and insulin analogues employment opportunities, Biocon
HEALTHCARE
has trained over 240 of its Malaysian the project will spur employment Agency and Pharmaceutical
employees at its headquarters in opportunities in various skilled Inspection Co-operation Scheme,
India. Staff also continue to be positions and to date has created in addition to conforming to all
trained through routine GMP and 26 jobs. local regulatory requirements. The
other training programmes on an The company is now working facility will also be operated in
ongoing basis, in various areas of to expand its production to dry accordance with Biosafety Level 2.
biopharmaceutical manufacturing, powder inhalers, nasal sprays,
Raising the Bar in

quality control, supply chain and pre-filled syringes and ophthalmic
research & development. The products.
Medical Device
company also utilises local vendors
to source its input materials AJ Pharma Holding
Production
and services as well as in the AJ Pharma Holding has
construction and set-up of its invested RM37.74 million to build its
manufacturing plant. new plant and acquire equipment
since joining as an EPP partner. It Devices used in healthcare are
BioCare (M) Sdn Bhd has since also submitted its dossier highly sophisticated in construction,
Since joining as an EPP in to the NPRA for the registration of requiring an intricate process of
2013, BioCare Manufacturing Sdn an influenza vaccine and acquired a assembly which places emphasis
Bhd has invested RM26 million license to market Dukoral, a cholera on the safety of patients. As such,
in its metered dose inhaler (MDI) vaccine, in Malaysia. Its plant the Medical Device Authority
manufacturing project. It has will comply with GMP standards (MDA) was created under MOH as
since completed construction of of International Regulatory a regulatory body governed by the
the facility and procurement of Authorities of European Medicines Medical Device Authority Act 2012
equipment and on 11 November (Act 738) to control and regulate
2016 obtained the Certificate of medical devices, its industry and
Fitness for the building. It is now As at December 2016, the activities and enforce medical
preparing for its pre-licensing audit device laws under the Medical
by the NPRA, which will be followed countrys pharmaceuticals Device Act 2012 (Act 737). All
by its product validation batch. exports had risen 17.44% medical devices used in Malaysia
BioCares facility will help must be registered to ensure
benefit the 6%-8% of Malaysias to RM737.31 million from compliance with global quality and
adult population and 8%-10% of the RM627.80 million in 2015, safety standards.
child population who suffer from As at the end of 2016, medical
asthma who have been dependent with export targets rising device exports totalled RM9.69
on imported asthma medication. Its since 2014 due to continued billion from RM9.46 billion in 2015
MDI plant is the first of its kind in and RM5.05 billion in 2011. The
Malaysia and will also cater for the encouraging growth.
Southeast Asia region. Additionally,
BioCare has invested RM 26 million

in its metered dose inhaler (MDI)
manufacturing plant in Perak. The
construction of the facility and
Biocons US$300 million biopharmaceutical R&D and largest integrated insulin procurement of equipment has
manufacturing plant in Asia has commenced the production of insulin in mid-2015. completed in 2016.
HEALTHCARE
toxicity, while Makmal Bioserasi,
Universiti Kebangsaan Malaysia
will test for cytotoxicity, interaction
with blood, effects on skin, as well
as genotoxicity, carcinogenicity
and reproductive toxicity. The
GLP certification process for
MyBioScienceLab and Makmal
Bioserasi has already commenced
with approvals expected in 2017.
Project Champions
Lucenxia (M) Sdn Bhd
EPP company Lucenxia (M) Sdn
One of the GLP labs in Malaysia- Makmal Bioserasi, Universiti Kebangsaan Malaysia Bhd, provider of a comprehensive
will help to lower the production costs of the local companies and bolster Malaysias care system for patients suffering
export capabilities by serving as pre-clinical testing service providers for ASEAN
countries.
from End Stage Renal Disease
(ESRD) using the Peritoneal
Dialysis modality, has invested
RM35.18 million since 2014 to
In an effort to further boost manufacture Automated Peritoneal
The Medical Device exports by complying with export Dialysis (APD) machines under
requirements in Australia, Europe the INTELLIS umbrella and for the
Authority (MDA) was and the US for Good Laboratory development of new products.
created under MOH as Practice (GLP) certification to attest Lucenxia is the first APD
the safety of medical devices in manufacturer in Malaysia and has
a regulatory body human bodies, the Government has seen its business catalysed by its
governed by the Medical given out RM31.8 million in grants
for the establishment of two GLP
Device Authority Act 2012 labs in Malaysia; MyBioScienceLab
(Act 738) to control and Sdn Bhds integrated OECD-
GLP-certified test facility for
regulate medical devices. pharmaceuticals, cosmetics,
nutraceuticals, agrochemicals
and medical devices and
exports have continued its upward Universiti Kebangsaan Malaysias
trajectory as overseas demand biocompatibility lab. Currently, local
was strong for products such as medical device manufacturers must
surgical and examination gloves; test the safety of their products in
catheters, syringes, needles and GLP labs overseas, as there are
sutures; electromedical equipment, none in Malaysia. The two new GLP
opthalmic lenses (including contact labs will enable local companies
lenses); sheath contraceptives; to lower their production costs
orthopaedic appliances and medical and bolster Malaysias export
and surgical X-ray apparatus. The capabilities by serving as pre-
US represents the top purchaser clinical testing service providers for
of Malaysian-made medical goods, ASEAN countries.
followed by South Korea, Belgium, Among others, MyBioScienceLab MyBioScienceLab Sdn Bhds integrated
Germany, Singapore, Japan, China, will test for cytotoxicity, OECD-GLP-certified testing facility will be
able to test for cytotoxicity, genotoxicity,
the Netherlands, Australia and sensitisation, haemocompatibility,
haemocompatibilty, irritation, systemic
Indonesia. irritation, genotoxicity, and systemic toxicity and others.
HEALTHCARE
participation in this NKEA, which Time RT-PCR which can detect Zika,
bore fruit with the launch of its Dengue and Chikungunya virus
INTELLIS product in 2016. The infections, simultaneously following
product will revolutionise dialysis guidelines by the USs Food and
treatments that are funded by Drug Administration (FDA). It also
the Government, helping reduce continues to work with the MDA
the direct cost of treatment on product registration, while also
and requiring zero or very little seeking to strengthen linkages with
infrastructural expenditure and the World Health Organisation to
indirect out-of-pocket costs to facilitate product evaluation.
the patient. It is also transparent
Making a Mark in
and adopts the pay-as-you-use
approach to ensure zero wastage.
Healthcare Travel
Being a home-based treatment
performed during sleep at night,
ABio Orthopaedics Sdn Bhd established
patient transportation to traditional in 2009 has invested RM 45 million
dialysis centres is not required, to build its R&D and manufacturing Malaysia has successfully
reducing the burden on patients capabilities to take on contract established its reputation as a
manufacturing of medical devices
and caregivers. specialising in orthopaedic implants.
global healthcare travel destination
In 2016, Lucenxia earned due to the availability of high-end
recognition from the Public Service treatments at competitive rates,
Department, which approved it as orthopaedic devices in Southeast which have attracted medical
one of the panel dialysis providers Asia. tourists from neighbouring
under the MOH. In an effort to address a talent countries as well as developed
shortage and constraints in its markets such as the US and UK. Last
ABio Orthopaedics Sdn Bhd production capacity, the company year at the International Medical
ABio Orthopaedics Sdn Bhd has implemented a RM20 million Travel Journal (IMTJ) Medical Travel
(ABio) is a leading bio-industry and investment plan while it is also Awards 2016 hosted in Madrid,
known as an emerging Technology recruiting more machinist engineers Malaysia was named Destination of
Company established in 2009. from India. the Year for the second time.
Since 2013, it has invested RM45 The number of healthcare
million in Malaysia to build its Medical Innovation Ventures Sdn travellers increased from 643,000
R&D capabilities and establish Bhd in 2011 to 921,500 in 2016,
manufacturing capacity to take Medical Innovation Ventures generating a revenue of RM1.12
on contracts of the manufacturing Sdn Bhd (MEDIVEN) has invested billion as compared to RM527.3
of medical devices specialising RM10 million since the start of million in 2011. An article in the
in orthopaedic implants. In doing its EPP, undertaking R&D of Huffington Post ranked Malaysia
so, it has employed local science new products, service delivery, as one of the top five destinations
and engineering graduates, giving establishing its core facilities and for travellers seeking affordable
them valuable exposure to global services and marketing its products medical treatment.
manufacturing of medical devices. at home and abroad. Its products For 2017, the Malaysia
On average, ABio has recorded a include GenoAmp Real-Time PCR Healthcare Travel Council (MHTC),
30% compounded annual increase Leptospirosis, PCR Malaria and which is responsible for promoting
in its domestic production, some RT-PCR Dengue diagnostic kits and developing the countrys health
of which were transferred from the which are on par with international travel industry, is targeting for one
US and China. It also successfully guidelines and standards on million healthcare travellers and
collaborated with Singapores infectious disease detection, RM1.3 billion in healthcare traveller
Advent Access Pte Ltd for R&D and providing a high quality, locally- revenue.
manufacturing of dialysis products made and affordable alternative. In 2016, the highest number of
for the global market. These During the year, it developed healthcare travellers were recorded
outcomes are in line with its aim new diagnostic kits for infectious from Indonesia, India, China and
to be the largest subcontractor of diseases, such as the Trioplex Real- Japan. While healthcare travellers
HEALTHCARE
The number of healthcare
travellers increased from
643,000 in 2011 to 921,500
in 2016.
Finance and fast-track facilitation of
visa processing for health travellers
from Myanmar and Bangladesh.
Its Government-to-Government
(G2G) initiatives and collaborations
Showcasing the best of Malaysia Healthcare alongside nine Malaysian hospitals at
with foreign cooporations also
the MYHealth Expo (MHX) Jakarta on 20 - 22 May 2016.
enabled MHTC to enter into the
following engagements in 2016:
from Indonesia mostly seek basic www.medicaltourism.com.my; and
health screening, resulting in organised the Malaysia Loves MoUs with Lions Club Magnolia
lower average bill size per patient, You social media campaign that Jakarta, Sudans NEBRAS Travel
travellers from China, Australia, focused on increasing world & Tourism Agency and Dubais
Japan and the UK record higher travellers familiarity with the Al-Naboodah Travel & Tourism
average bill size per patient despite Malaysia Healthcare brand. Agency to collaborate on
making up a lower number of MHTC also conducts strategic marketing initiatives;
healthcare travellers. Therefore, marketing and promotional Collaboration agreement with
the MHTC must diversify its market campaigns globally in partnership Tai Orient and Myanmar
strategy to attract more travellers with hospitals, Tourism Malaysia, Escapade Travel & Tours as
seeking high-value treatments. Malaysian embassies and selected strategic partners to promote
In the meantime, MHTC has industry partners to create greater medical tourism packages in
established representative offices awareness of Malaysias healthcare China and Myanmar respectively;
in its focus markets of Jakarta services. Such marketing activities Partnerships with the
(Indonesia), Dhaka (Bangladesh), include participating in the World governments of Bangladesh, the
Ho Chi Minh City (Vietnam), Trade Market in London and the UAE, Kuwait, Bahrain, Sudan
Yangon (Myanmar) and will be Oman Health Exhibition and and Gambia for programmes
setting up an office in Guangzhou Conference. MHTC also worked such as bilateral patient
(China) to cater to the fast-growing with AirAsia, the Penang State referrals, medical consultancy
Chinese market. It also collaborates Government and the Penang collaborations, knowledge
with affiliated health facilitators Health Association to establish transfer and learning as well as
around the world to facilitate health direct routes between Penang and medical specialty services
travellers access to information on Ho Chi Minh City, Yangon and Hanoi exports;
their healthcare options in Malaysia, as part of a two-pronged approach Special discounts for patients
as well as assist them in their to grow both the tourism and travelling with Oman Air to
medical and travel arrangements healthcare travel market to Penang Malaysia.
for their medical visits. from Vietnam and Myanmar. The
Additionally, it organised new routes were launched in March In the near-term, MHTC aims to
Market Intelligent InsigHT 2016, a 2016. raise Malaysia healthcares profile as
knowledge-sharing seminar aimed MHTC also plays a vital role in a provider of world-class healthcare
at providing industry stakeholders policy advocacy and during the year services by:
with a deeper understanding of it achieved a significant milestone
the medical tourism industry; with the approval of double Ensuring a seamless and end-
refreshed the commercial site for tax deduction for accreditation to-end experience for healthcare
the Malaysia Healthcare brand, expenses by Malaysias Ministry of travellers
HEALTHCARE
Enhancing service offerings

in the Malaysia healthcare travel
sphere
Encouraging more cohesive
industry development
Creating value-add partnerships
domestically and abroad
Launching initiatives aimed at
encouraging sustainability
within the industry
Going forward, MHTC will continue

promoting world-class healthcare
that is easily accessible and
affordable. Niche treatments such
A proud moment as Malaysia Healthcare takes home the Medical Travel
as cardiology, in-vitro fertilisation, Destination of the Year Award 2016 for the second consecutive year by the
orthopaedics, oncology, neurology International Medical Travel Journal (IMTJ).
and aesthetics (dental and cosmetic
surgery) will receive special focus
due to their high value-added digitise and widen access to its on-the-Park are being fulfilled
nature. services. It has also introduced with the training of its first 50
the Certificate Programme in students as qualified care-givers
Caring for the Elderly

Care-giving, approved by the under a programme approved and
Department of Skills Malaysia, endorsed by the Ministry of Human
aimed at encouraging higher Resources. The first batch of 23
While most developed nations employment in the aged care students completing the course will
took longer time to achieve sector. be prepared for full employment at
increased in life expectancy, Meanwhile, Eden-on-the-Park the retirement village. Furthermore,
Malaysia and most other Asian which is the first Integrated Seniors students trained at Eden-On-
countries took shorter time to Lifestyle and Care Residence Resort the-Park can also contribute
achieve it. In other words, it leaves facility located in Kuching, Sarawak, to the countrys talent pool of
us a shorter time to put everything has built a Care Residence of 142 qualified care-givers, creating job
in place for addressing the needs beds offering care and support opportunities for aged care even
of an aging population. In addition facilities including rehabilitation and outside this retirement village.
to this, the proposed Private Aged daily amenities. In December 2016, The Love On Wheels and
Healthcare Facilities and Services it also completed 104 apartments Eden-on-the-Park projects
Bill which is slated to be presented and 14 villas for active retirement have revolutionised the aged
in Parliament soon, is meant to living. care services in Malaysia. It is
address the healthcare needs of the The Eden-on-the-Park project therefore imperative for the
elderly. has, for the first time in Malaysia, Government to continue building
The Love On Wheels programme provided world-class facilities to on the momentum for Seniors
is one such initiative, providing care for the countrys elderly. This Living created by these projects,
senior citizens with access to supports families in ensuring their including enhancing the aged care
nursing and rehabilitation services loved ones are adequately cared ecosystem, to ensure the needs of
in the comfort of their own home for in their golden years. Malaysias elderly population are
through mobile services. Its latest In addition to building the addressed sustainably.
developments include introducing infrastructure for this retirement
its mSIHAT mobile application to village, staffing needs at Eden-
HEALTHCARE
Eden-on-the-Park which is the first integrated Seniors Lifestyle and Care Residence Resort in Kuching has built a Care Residence
of 142 beds offering care and support facilities, 104 apartments and 14 villas for active retirement living.
MOVING FORWARD
As Malaysia moves closer Additionally, the demand for
towards 2020, the emphasis will be healthcare is surging in an era
placed on seeking game-changing of rising chronic and lifestyle
projects that will change the diseases, aging populations in both
landscape of Malaysias healthcare developed and developing nations
industry, focusing on innovative and a growing middle class with
solutions that will fuel a meaningful improving disposable income in
transition towards higher quality various developing regions. These
and affordable healthcare through will require innovative solutions
private sector-led solutions. which this NKEA aims to catalyse to
spur a veritable shift in the delivery
of healthcare in the country.
FINANCIAL SERVICES
Financial DATUK SERI

JOHARI ABDUL GHANI
Services
Minister of Finance II
Despite external headwinds from the fall of
Provide Backbone
global oil prices and soft commodity market,
Malaysias financial system remained resilient as
a result of our well-capitalised banking system.
The capital, equity and debt markets were
for a Thriving
also strong, recording a value of RM2.8 trillion,
RM1.7 trillion and RM1.1 trillion, respectively.
The conversion to single insurance and
takaful business (conversion exercise), a
Economy
requirement under the Financial Services Act
2013 and Islamic Financial Services Act 2013
has made significant progress during the year.
The conversion exercise, which will require life
and general businesses of insurers, and family
and general businesses of takaful operators
to be carried out under separate entities is
expected to accord greater focus on core
areas of expertise and during the year, we
reached a major milestone with the conversion
of composite insurance and takaful licenses
under the Financial Services Act 2013 and
Islamic Financial Services Act 2013. This move,
which will require life and general businesses
of insurers, and family and general business
of takaful operators to be carried out under
separate entities, is expected to strengthen the
institutional structure of financial institutions
and safeguard insurance policyholders and
takaful participants against contagion risks and
excessive leverage.
The year also saw an increasing mainstream
adoption of new digital technologies
incorporated into existing financial products
and services. As we move towards embracing
financial technology (fintech), the Malaysian
financial sector will closely monitor and
adapt to this trend. Malaysia is receptive to
technologies that drive innovations and cost-
effective solutions that are beneficial for the
consumers.
FINANCIAL SERVICES
Bank Negara Malaysia Headquarters
The Ministry fully believes that

technology will help to broaden
retail investor participation
OVERVIEW
and stimulate more innovative, The Financial Services National
market-based financing options. Key Economic Areas (NKEA) met
This will help address funding
challenges faced by the Malaysian
most of its KPIs for the year due to
the collective efforts across various
Overall, the NKEA
business community, especially
for the Micro, Small and Medium
agencies involved, demonstrating
the resilience of the industry amid achieved 111% of its
Enterprise (MSME) segment and the challenges brought on by
in the long-term, further enrich
our financial services industry in
slowing global growth especially
big economies such as China and
KPIs in 2016.
tandem with our transformation Europe; impact on international
into a high-income nation by relations due to Brexit and Trans
2020. Pacific Partnership Agreement
(TPPA) the continued volatility in new standards for Islamic finance
commodities prices and the mid- professionals and establishing
year rebalancing of the Morgan the Islamic Fund and Wealth
Stanley Composite Index (MSCI). Management (IFWM) Blueprint.
Overall, the NKEA achieved 111% of Meanwhile, developments in the
its KPIs in 2016. insurance and takaful sector saw
As one of the global leaders in progress in the conversion of
Islamic finance, Malaysia continues composite insurance and takaful
to pave new ground towards licenses under the Financial Services
innovating the Syariah-compliant Act 2013 and the Islamic Financial
financial ecosystem, introducing Services Act 2013. The conversion
FINANCIAL SERVICES
products and services. From the

consumers perspective, fintech is
expected to drive down costs and
promote efficiency in the market.
The growth of fintech in Malaysia
can be attributed to the publics
familiarity with digital experiences
and ready acceptance of technology-
assisted products that better address
their needs. With advantages such as
enhanced accessibility, convenience
and tailored products, the initial
clientele will comprise of digital
natives.
To better regulate this fast-
investors as well as provide more developing landscape, a new P2P
Since the access to funding to the MSME
business community.
Financing framework came into
effect on 2 May 2016, with the
operationalisation of For the year 2016, six Peer-
to-Peer (P2P) financing platform
Securities Commission (SC) opening
up applications for the registration
the ECF market in mid- operators in Malaysia were
approved and registered with the
of P2P financing platform operators
until 1 July 2016. It received over
2016, 11 SMEs have raised aim to widen funding opportunities
for small and medium enterprises
50 applications, of which six
were granted operational licenses
a total of RM8 million (SMEs). This is expected to enhance
access to financing; increase
namely B2B FinPAL; Ethis Kapital;
FundedByMe Malaysia; ManagePay
through ECF operators (as investor participation; augment the
institutional market and ultimately
Sevices; Modalku Ventures and
Peoplender. The introduction of P2P
of October 2016) develop a synergistic financial
ecosystem in Malaysia.
financing follows the launch of equity
crowdfunding (ECF) in 2015, making
P2P financing is expected it the second market-based financing
Harnessing the
asset class in Malaysia.
to follow the same Market-based financing, targeted
Potential of Digital
at enhancing access to financing for
upward trajectory. SMEs, is a key objective within the
Finance
SCs digital agenda. SMEs seeking
early-stage financing are now served
through ECFs while those seeking
exercise is well underway with Digital finance has introduced working capital or capital for growth
phased implementation and is innovative new business models will be able to utilise P2P financing.
expected to be completed by 30 and solutions within the financial Since the operationalisation of the
June 2018. services sector. Its applications ECF market in mid-2016, 11 SMEs have
One key trend that Malaysia seeks have enhanced the financial market raised a total of RM8 million through
to capitalise on is the innovations landscape, including promoting ECF operators (as of October 2016.)
stemming from financial technology greater efficiency and better risk P2P financing is expected to follow
(fintech), with the authorities management. Technology-focused the same upward trajectory.
laying the foundation through start-ups and market entrants have Meanwhile, Bank Negara Malaysia
accommodative regulations to allow led the way in innovating products (BNM) is enhancing its regulatory
fintech to enter the mainstream and services previously only offered approach with the introduction of
financial services market rapidly. from the traditional financial services Regulatory Sandbox (Sandbox) on
This technology has the potential to providers, reshaping the value 18 October 2016. Under the Sandbox,
broaden the participation of retail proposition of existing financial financial institutions regulated
FINANCIAL SERVICES
by BNM and fintech companies efforts from Securities Commission, of RM5.3 billion during the period
looking to carry out businesses Bursa Malaysia and industry from January 2010 to December
regulated by BNM may be granted players to build a vibrant, robust 2016.
certain regulatory flexibilities to and competitive marketplace with One of the tenets of a vibrant
experiment with innovative solutions continued focus on sustainability. In and competitive marketplace is the
in a production or live environment addition to expanding the markets expansion of diversity and range
accompanied by appropriate range of tradable products, efforts of products/services to cater to
safeguards. A Sandbox may be are centered on facilitating greater new and increasingly sophisticated
deployed for a period not exceeding market efficiency and accessibility, investors. In this respect, the
12 months. widening Malaysias footprint in the regulator working closely with
regional marketplace. the industry, continues to develop
Building a Sustainable
The equity market has recorded new and diverse exchange-traded
significant gains since 2009, driven products. During the year, Macquarie
Securities Capital Market

by Malaysias stable economic Securities Group launched call
growth. The FBMKLCI has risen and put warrants over the S&P
85% during the period, with market 500 on the exchange alongside a
Despite the challenging market capitalisation increasing 148% and few other new products launched
environment influenced by global average daily trading value (ADV) such as US Dollar denominated Tin
and local economic developments, recording robust growth of 63%. Futures Contract and enhanced
the equity capital market remained The market has also recorded net existing products with the launch
resilient, supported by collective inflows from foreign institutions of the enhanced 3-Year, 5-Year
and 10-Year Malaysian Government
Securities Futures.
As part of a push towards the
regionalisation of the Malaysian
capital market and the expansion
of its global reach, in 2015 the
US Commodity Futures Trading
Commission (CFTC) approved
investments in Bursa Malaysia
derivative products, by investors
in the US. As at December 2016,
trading volume from the US market
tripled, from 0.5 million trades in
2015 to 2.2 million trades (as at
December 2016). During the year,
Bursa Malaysia signed two separate
MoUs. The MoUs were with the
Taiwan Stock Exchange and the
Malaysian Equity Market Indonesia Stock Exchange, which
aimed to jointly study potential
cross-border collaborations
for market development and
promotion, and development.
In line with global trends
and growing investor interest on
corporate sustainability, in 2014
the FTSE4Good Bursa Malaysia
Index (ESG Index) was launched
with 24 constituent Private
Net Inflows
FINANCIAL SERVICES
Equity Market Limited Companies (PLCs) in

2014. This has since grown to 42
Amidst this challenging respectively. In line with the constituents as at December 2016,
scenario, the Malaysian equity performance of FBMKLCI, market reflecting growing commitment
market remained well-supported capitalisation decreased slightly by among Malaysian companies to
by resilient economic fundamentals 1.62% to RM1,667.37 billion as at 31 incorporate environmental, social
coupled with BNMs reduction of the December 2016, from RM1,694.78
statutory reserve requirements. and governance aspects into
billion as at the end of 2015.
The FBMKLCI remained volatile their strategies. Building on this
Given the market volatility, there
through the year, falling to a year success, the FTSE4Good ASEAN
was a decrease in total funds raised
low of 1,600.92 points on 21 January to RM12.83 billion (YTD December Index developed collaboratively
2016, before rebounding to a year 2016), from RM21.24 billion in 2015. among the ASEAN Exchanges was
high of 1,727.99 points on 15 April Meanwhile, fund raising activity in launched in April 2016, showcasing
2016. The FBMKLCI closed at 1,641.73 the secondary market remained ASEAN companies to promote the
points on 31 December 2016. strong with a total of RM12.18 billion region as an asset class.
In terms of trading activity, the raised by (YTD December 2016). In September 2016, Bursa
average daily market transacted The robust secondary market was Malaysia launched Bursa Malaysia-i,
volume and average market driven by major corporate exercises the worlds first end-to-end
transacted value decreased by including rights issues, special issues
13.51% and 5.49% year-on-year, integrated Islamic securities
and private placement by PLCs.
exchange platform. Bursa Malaysia-i
Islamic Market offers global and domestic investors

the choice to invest and trade
For the Islamic Capital Market, bond market, corporate sukuk made Syariah-compliant products via a
the average daily value of Bursa Suq up 61.64% of the total corporate Syariah-compliant platform. This
Al-Sila (BSAS) increased by 7.26% bonds issuances in 2016 compared platform also serves to establish
to RM16.25 billion (as at December to 66.67% in 2015, while corporate Bursa Malaysias leadership and
2016) compared to RM15.15 billion sukuk outstanding accounted for cement its reputation as the global
for (YTD 2015). The growth in 73.55% of the total corporate bonds marketplace for Syariah listings and
BSAS trading can be attributed to outstanding in 2016 compared to investments. The Syariah products,
increased acceptance and demand 71.65% in 2015. The total sukuk also listed on the MAIN and ACE
from the domestic and global issuance for 2016 after taking
markets, includes i-ETF, i-Indices
commodity Murabahah platform into account issuances by both
providers particularly in the Middle and i-Stocks. As of 31 December
government and corporates,
East and North Africa (MENA) and 2016, Bursa Malaysia-is offering
represented 53.81% of the total
Asia regions. bond issuances compared to comprises 74.1% or 682 of securities
The updated list of Shariah- 43.57% in 2015, whereas total sukuk listed on Bursa Malaysia.
compliant securities approved by outstanding represented 56.36% of Efforts by Securities
the Securities Commissions Shariah the total bonds outstanding in 2016 Commission, Bursa Malaysia and
Advisory Council (SAC) was released compared to 54.05% in 2015. all industry players to promote
on 27 May and 25 November 2016 The assets under management the vibrancy of the local stock
respectively. The updated list as at (AUM) of Islamic fund comprising
25 November 2016 featured a total collective investment schemes (CIS)
of 672 Shariah-compliant securities. and private mandates stood at
As at end December, these securities RM149.64 billion registering 13.04%
constituted 74.23% of the 904 listed
securities. The market capitalisation
growth from RM132.38 billion As of 31 December
(as at end 2015). The number of
of Shariah-compliant securities
stood at RM1.03 trillion or 61.81%
Islamic CIS also grew to 328 as at 2016, Bursa Malaysia-is
end 2016 from 314 in 2015, making
of the total market capitalisation, a
decrease of 5.12% as compared to
it the worlds largest with AUM of offering comprises 74.1%
RM116.08 billion. As at end 2016,
end 2015.
The sukuk market is an
there were 20 full-fledged Islamic or 682 of securities listed
fund management companies
important component of the Islamic
capital market. In the corporate
operating in Malaysia, with 31 fund on Bursa Malaysia.
management companies offering
Islamic windows.
FINANCIAL SERVICES
Mnister of Finance II at the Launch of Bursa Malaysia-i
Derivatives Market
exchange also included focusing on doubled its membership base to over
encouraging women participation 650 (by end December 2016), from
in businesses and board positions, 240 at its launch. The institute is also
The derivatives market continued enabling market efficiency and in the process of issuing successfully
to chart growth in volume traded. For accessibility through the Green issued two more professional
YTD December 2016, total contracts Lane Policy, which has been standards; the CIIF Code of Ethics
traded registered a 1.2% growth year- extended to eligible futures brokers and CIIF Standards of Professional
on-year with an average daily contract and general clearing participants Conduct, following the introduction
traded of 57,829 contracts in 2016 in the derivatives market, and of the CIIF Standards and Guidelines
compared to 57,157 in 2015. The growth undertaking greater outreach on Admission of Members and the
in volume is attributed to Crude Palm and awareness through its multi- CIIF Standards and Guidelines on
Oil Futures Contracts (FCPO) due language websites. Accreditation of Institutions.
to higher volatility in crude palm oil BNM and the Islamic finance
Reinforcing Malaysias
(CPO) prices. industry were key drivers that led to
The Open interest for FCPO, the establishment of CIIF to elevate
Leadership in Islamic
a benchmark product, recorded a the Islamic finance profession by
high of 285,000 contracts on 16 May setting standards on professional
Finance
2016. This was also supported by the education and promoting
increase in foreign participation for all professionalism and integrity among
derivatives products, which grew to its members. CIIF has also been
41% as at December 2016, from 37% in Following its establishment in mandated to set global professional
December 2015. 2015, the Chartered Institute of standards for Islamic financial
Islamic Finance Professionals (CIIF) practitioners around the world. Its
FINANCIAL SERVICES
EQUITY CROWDFUNDING
- WIN-WIN FOR MALAYSIAN SMES AND INVESTORS
Attendees at the PitchIN launch event
Traditionally, Malaysian SMEs stimulate and boost local economy may lose part or all of their investment.
seeking funding choose between by providing alternative sources of Investors should only select companies
three financing options: self-funding, funding to small-and-medium-sized which have a big growth potential,
loans from financial institutions, and businesses and startups. said Sam Shafie, co-founder of PitchIN
Government-issued grants. ECF is the more mature ecosystem and the only ECF operator affiliated
Two new financing options have of the two and offered via six with a tech accelerator (WatchTower
since been added to the mix: Equity licensed ECF operators in Malaysia. & Friends).
crowdfunding (ECF) and Peer-to- Retail investors, angel investors and Citing Kakitangan.com, a home-
Peer Lending (P2P lending). Officially companies have the opportunity to grown human resource management
regulated in 2015 and 2016 respectively, invest in early and growth-phase software which raised more than RM1
these two fintech-enabled options startups. Investing in such options million in 2016, Sam disclosed that two-
connect companies directly to however carries significant risk and thirds of its investors are current users
investors and form part of financial suitable for medium-to-long-term of the SaaS platform. If the product
services initiatives under the National investors with high risk appetite. or service is good, existing users can
Transformation Programme (NTP) to Should the company fail, investors be converted into both investors and
FINANCIAL SERVICES
voluntary word-of-mouth referrers, networking activities with their chosen Retail investors may contribute
increasing the crowdfunding success EPF platforms to ensure the highest up to RM5000 per company and up
rate. Its a true test in user satisfaction chance of equity crowdfunding to RM50,000 per year, while angel
and investor confidence. success. investors taking advantage of the
CrowdPlus.Asia COO Bryan ECF operators in Malaysia Angel Tax Programme are eligible to
Chung echoed this sentiment and have overseen successful equity enjoy up to RM500,000 in tax benefit.
explained the internal vetting process crowdfunding in a myriad of To qualify for the tax incentive, angel
before companies are listed on ECF industries, from Tech and SaaS, to investors must submit an application
platforms. Due diligence is practised Food & Beverage and Real Estate, to and register as an accredited angel
by ECF operators - not all companies Green Technology and Agriculture. investor in the Malaysian Business
are suitable (for crowdfunding) Daniel Geottfert, Managing Director Angel Network (MBAN).
and selected to be listed on ECF of FundedbByMe said that the
platforms. (The companies) must pressure for companies to deliver
have a solid management team and upon successful crowdfunding is very
a comprehensive corporate road map high. Because (crowdfunding is)
outlining its long-term business plan. public, companies must ensure they
With years of VC funding are able to deliver their promises or
experience under his belt, Bryan risk negative feedback on social media
highlighted the important role of ECF and online platforms.
operators in filling in the funding gap FundedByMe Malaysia, which is a
in Malaysia. Access to funding is a joint venture between Penang-based
real problem faced by many high- digital marketing firm Alix Global and
quality companies that are restrained Sweden-originated FundedByMe
by the rigidity and timeframe set by also specialises in online exposure.
traditional financial institutions, he We provide Malaysia companies the
said, Crowdfunding is much quicker in chance to market their products and
comparison and can result in win-win services to the global audience and
arrangement between the company attract investors beyond Malaysia.
and its investors. FundedByMe has access to 70,000
Malaysian SMEs seeking funding investors across 180 countries, Daniel
via crowdfunding channels go explained, adding that the platform
through a series of steps before was also granted a license to operate
they are listed on ECF platforms as a P2P lending platform in 2016.
and receive funds from the public. Despite the potential, ECF
Companies need to first convince their operators in Malaysia believe that more
business model and market potential education and exposure is needed
to ECF operators. Upon completion to attract Malaysian investors and
of this step, companies will then companies onboard this investment
undergo months of consultation and and funding channel.
FINANCIAL SERVICES
aim is to enhance the quality and Developments in Islamic During the year, the following
depth of the Islamic finance talent finance during the year also include milestones were met with respect to
pool to support the industrys the formulation of the Islamic the initiative:
growth. Fund and Wealth Management Notification to the industry of the
As the CIIF was only recently (IFWM) Blueprint to drive further Gazette Orders for exemption
established in November 2015, its development and growth of from stamp duty and real
focus for 2016 was geared towards Malaysias Islamic capital market. The property gains tax
the continuing development and blueprint will establish the medium- Issuance of a policy document on
foundational strengthening of its to-long-term strategic direction for the regulatory requirements for
mandate as well as to accelerate the industry and identify strategies the conversion exercise
its capacity-building initiatives and and recommendations to strengthen Submission of conversion plan
strengthen linkages between the Malaysias competitiveness in the and relevant applications by the
industry and academia. In 2017, it domestic industry, which commands insurers and takaful operators.
will commence development of the 31% of the US$58 billion in global
Islamic finance professionalisation Islamic assets under management While plans are in place to
blueprint as part of its mandate as at the end of 2015. The Islamic keep to established timelines, the
under the Islamic Finance Profession Assets Under Management (AUM) conversion exercise may take more
Charter. in Malaysia for 2016 is RM149.64 time to complete. In an effort to
Recently established in billion, which is 21.49% of total manage this, BNM continuously
November 2015, the CIIFs focus AUM, representing a significant engages with the industry and has set
in 2016 was geared towards the contributor to the growth of the specific milestones to be observed
continuing development and Islamic capital market. in the policy document, including
foundational strengthening of its submission of final applications by
Providing Peace-
mandate. Moving forward, it will seek 31 December 2016. This will allow
additional funding to accelerate its BNM sufficient time to assess and
of-Mind to Policy-
capacity-building initiatives and obtain the necessary approvals to
strengthen linkages between the effect the new licences as well as for
Holders
industry and academia. In 2017, it will the affected institutions to be ready
also commence development of the operationally come 1 July 2018.
Islamic finance professionalisation Furthermore, to ensure
blueprint as part of its mandate BNM is overseeing the ongoing continuous and uninterrupted
under the Islamic Finance Profession conversion of composite insurance protection of interests of
Charter. and takaful licences business under insurance policyholders and
the Financial Services Act and takaful participants, BNM has also
Islamic Financial Services Act 2013. required the affected insurers and
As the CIIF was only recently Now in its second phase, the exercise takaful operators to have adequate
is expected to be completed by 30 communication plan in place to
established in November June 2018. assist policyholders transition to the
2015, its focus for 2016 was The policy objectives behind this new licensed institutions, BNM has
requirement for the conversion are: also required affected institutions to
geared towards the continuing (a) To accord greater focus on core adequately inform the policyholders
development and foundational areas of expertise; of any changes.
(b) To minimise risks emanating from
strengthening of its mandate areas of business where expertise
as well as to accelerate its and skills are limited; and

(c) To ensure continuous stability in
capacity-building initiatives and the insurance and takaful sectors
strengthen linkages between with a pool of sound and efficient

players.
the industry and academia
FINANCIAL SERVICES
The year 2016 has been a Despite this, the Government
challenging year for most economies remains optimistic for the nations
around the globe with uncertainties continued growth. Significant
and shocks such as TPPA, Brexit, progress and groundwork in
volatility in commodities prices and the financial services industry
slowdowns in big economies such have been made, particularly in
as China and Europe. The Malaysian the areas of Islamic finance and
economy has proven its resilience, financial technology. These areas
nonetheless the effects of these are expected to lift the country to
challenges are expected to linger greater heights and towards our
through 2017. Vision 2020 goal.
AGRICULTURE
Unleashing the
DATO SRI AHMAD
SHABERY CHEEK
Minister of Agriculture
Value oF
& Agro-based Industry
Agri-BusinesS
As a vital part of the backbone of Malaysias
economy, the agriculture sector has received
crucial impetus for change since the start of the
NTP. Initiatives under this NKEA have driven
the expansion of products for numerous anchor
companies into the export market; while other
major players enjoyed an increase in their market
shares both in domestic and export markets.
This NKEA has been instrumental in boosting
Malaysias agricultural exports, moving local
companies up the value chain through the adoption
of higher standards, technology transfer and
participation in higher-value activities. This, in turn,
has enabled these companies to demand better
pricing and improve their income.
During the year, the NKEA recorded several
milestones including the protocol signed during
the YAB Prime Ministers visit to Peoples Republic
of China (PRC) allowing raw uncleaned birds nests
export from Malaysia to PRC. This is expected
to increase the price of birds nests for export to
RM3,000-RM5,000 per kg from RM1,000 per kg
currently, which will benefit 10,000 birds nest
farmers.
We have also seen the average income for
farmers involved in our mini estate paddy farming
initiative increase to RM42,000 in 2016 from
RM33,500 in 2012. This was achieved through the
amalgamation of over 25,000 Hectare of land in
Kedahs Muda Area, leading to higher productivity.
The industry, however, encountered some
turbulence in the implementation of several
initiatives. While some of these challenges
comprised external factors, such as adverse weather
conditions and currency volatility, we will continue
to closely monitor shortcomings within our control,
such as the speed of approval processes for some
projects, to ensure the achievement of our goals
AGRICULTURE
Paddy Farming Operation in Muda Area, Kedah
going forward.
Our agriculture strategies must
also address the need for Malaysias
OVERVIEW
food security. This will depend upon Government has invested for 2016 hit 381 metric tonnes, which
the development and delivery of approximately RM2.4 billion in is an outstanding and encouraging
technologies that lead to increased Agriculture NKEA since the performance that spurred farmers
food production so that we can beginning of the NTP. The and operators in the edible birds
enjoy affordable, safe and high investments have been channelled nest industry. In 2016, the Agriculture
quality food for the years to come. to various initiatives that work in NKEA achieved 101% of its KPIs.
I am proud with the initiatives tandem to develop a sustainable The industry is not without
and efforts undertaken by the agriculture economy. Additionally, its challenges. Certain projects, in
Government throughout the years to the partnerships between anchor particular production-based EPPs,
make our farmers competitive in the companies and small vendors were impacted by environmental
domestic and global food market, fostered through this NKEA have factors such as the El Nino and
our agriculture industry continues to formed the backbone of its success. diseases, which leads to a 20%
prosper and ensure food security. Overall, this has resulted in higher reduction in agriculture production
productivity and exports, entrance for aquaculture, livestock and
into new markets, adoption of agriculture EPPs. Meanwhile,
higher standards and development shrimp production was hampered
of new growth areas; all of which by Enterocytozoon Hepatopenaei
contribute to the creation of higher (EHP) and Early Mortality Syndrome
income for Malaysian farmers. This is (EMS), which caused either mortality
evident from the export production in production, stunted growth or
record under the paddy farming non-conformity in shrimp size.
scaling up and strengthening The foreign exchange rate
initiative. For example, productivity fluctuation also affected cow
of paddy production for EPP 11 is imports and increasing operating
recorded at 4.8 metric tonnes per costs. Additionally, security
hectare per cycle as compared to concerns in the Lahad Datu and
4.0 metric tonnes per hectare per Semporna areas, coupled with low
cycle in 2011. As for the export of seaweed prices adversely impacted
edible birds nest, the target set for seaweed farming hampered
2016 was 200 metric tonnes, while cultivation activities. Other areas
the actual export volume recorded which did not perform well include
AGRICULTURE
Paddy Farm Operation under EPP 10 in Muda Area, Kedah
cattle integration, which fell short

of its target for the year as most
Initiatives to upgrade of the anchor companies focused
on oil palm replanting, which led
infrastructure to better to reduction of cattle on their
plantations.
mitigate the risk of Nonetheless, the challenges
faced during the year have not
adverse weather have detracted the continuous efforts

and initiatives under this NKEA to
been and will continue transform the agriculture industry.

Initiatives to upgrade infrastructure
to be prioritised in to better mitigate the risk of

adverse weather have been and
Monitoring of participants farm
will continue to be prioritised in
order to aid farmers to order to aid farmers to reduce loss
record under EPP 10
caused. To help farmers whom

reduce the loss caused. faced shrimp diseases that have 2016 by conducting a value chain
compromised their yields over the analysis on methods and means to
years, the Department of Fisheries increase the price of seaweed. More
have initiated a knowledge-sharing collaboration between technical
platform to combat shrimp diseases agencies such as the Department
among anchor companies and of Fisheries and the industry
experts from the department. will be launched to bring forth
Similarly, to assist seaweed more initiatives and innovations
farmers that have suffered due to to improve the productivity and
extreme low prices, the Ministry quality of the countrys agricultural
of Agriculture and Agro-Based products.
Industry Malaysia has intervened in
AGRICULTURE
Although the productivity of six
anchor companies was hampered
by a delay in land approval from
local authorities, the project has
attracted 300 seaweed cluster
farmers under its seaweed cluster
programme. The programme which is
conducted by the Sabah Department
of Fisheries, has seen the number
of seaweed cluster farmers increase
from 30 when the programme first
commenced in 2014.
Efforts under this NKEA have
also helped to raise the standards
of agriculture companies to ensure
Harvesting of high value shrimps under EPP 6
the competitiveness of Malaysias
agriculture exports. This follows the
Empowering Companies
The success of this effort has been requirement for all anchor companies
demonstrated in the EPP 8 initiative to be certified by Malaysian Good
through Agri-Business
which focuses on strengthening the Agricultural Practices (MyGAP). The
export capabilities of the processed MyGAP certification is similar to an
food industry. To date, this initiative ISO standard, but for farm practices.
The partnership between has seen the development of 96 SMEs It is beneficial for companies that
anchor companies and supporting by anchor companies, with the SMEs want to export, as certain countries,
entrepreneurs has become a driving acting as, among others, raw material particularly developed countries,
force in transforming the countrys suppliers, retailers or distribution impose these kinds of standards
agriculture industry. This has been centres to support the anchor onproducts entering their markets.
led by the Ministry of Agriculture business ecosystem. Meanwhile, in Nine out of 14 shrimp farming
and Agro-based Industrys policy EPP 4 a project that focus on farming anchor companies have since
for anchor companies to develop a through integrated cage aquaculture obtained MyGAP certification,
network of supporting entrepreneurs system has seen an anchor company reflecting the commitment from
with constant monitoring through that is Trapia Sdn Bhd, contributed anchor companies to produce quality
engagement between EPP owners to 90% of total production with the shrimp for premium market. The
and anchor companies to develop successful implementation of cluster certification has standardised the
plans and programmes to increase programmes for smallholders. quality and safety of products for
the number of Small Medium Seaweed farming makes up local and export market consumption.
Enterprise (SME). another project under this NKEA. Alongside this remarkable outcome,
MyGAP managed to get 829 fruits
and vegetable farms certified, and 210
livestock farmers and 159 aquaculture
farms attained their MyGAP
certification in 2016. Evidently,
MyGAP has achieved its objective in
enhancing consumer awareness and
demand for food product quality
and safety. Indirectly MyGAP boosts
the Malaysian agricultural produce
competitiveness at the international
level as we benchmarked with
international GAP certification
Shrimp Processing Facility of Anchor Company under EPP 6 schemes such as the ASEAN GAP
and Global GAP.
AGRICULTURE
BIOTROPICS TAKES MALAYSIAS BIO-RESOURCES

TO GLOBAL STAGE
Biotropics
(Biotropics) was
Malaysia Berhad
incorporated in Biotropics takes care Being one of the most successful
NKEA projects, Biotropics was invited
of the full spectrum

February 2007 to develop and to share its Tongkat Ali research and
commercialise Malaysias bio-resources development at the 2016 Vitamin & Food
into superior natural health products. Europe Expo. Subsequently, Biotropics
It is a government-linked company of the business was also invited to conduct a seminar on
established by Khazanah Nasional Bhd to combating aging with traditional herbs
develop the herbal industry, namely the development for this at similar herbal trade shows in Europe in
famous Tongkat Ali for the international 2016. These appearances allowed for the
market. Foreign and local academic
research conducted over the years have
natural herb, from lab penetration of new European markets for
Biotropics herbal products.
also served as evidence of the proven
benefits of this glorious Malaysian herb
research to branding, On the flip side of becoming a
globally recognised herbal product,
for vitality. marketing, distributing Biotropics founder, Tengku Shahrir
shared that copyright infringements are
Biotropics takes care of the full
spectrum of the business development and logistics. becoming more rampant. In many cases,
several food supplement companies have
for this natural herb, from lab research
damaged the image of Tongkat Ali in
to branding, marketing, distributing
Vietnam by misrepresenting Tongkat Ali
and logistics. Tongkat Ali has been long as an ingredient of their products when in
recognised and certified as a vitality the development of our market share fact, these products did not contain the
herb by the Oxford Institute of Medicine. and distribution channels. Concerted herb. To address the concern, Biotropics
The distributorship of Biotropics herbal efforts were involved, from value chains has had to fork out extra damage control
products is well established in the United of the Ministry of Health for medicinal resources to re-educate Vietnamese
States, United Kingdom, Japan, China, value certification, Forestry Department consumers and distributors. As the
Russia and Hong Kong, says Tengku for our access to the wild herb in the company develops for the international
jungle, Orang Asli office for coordinating market, it is also equipping its team to
Shahrir Tengku Adnan, CEO and founder
manpower resources in reaching the herb protect the copyright, royalty and patents
of Biotropics.
in the natural forest, and MATRADE for of its products in the international market.
The Agriculture NKEA programme
bridging the connections with trading
has been a crucial catalyst for the
counterparts in the international markets,
growth of Biotropics in the international
and connecting to US Food And Drug
market, allowing it to access a larger
Administration for the approval of the
market share and distribution channels.
products marketed by Biotropics, says
The NKEA value chain contributed to
Tengku Shahrir.
AGRICULTURE
DATO AHMAD RIZAL BIN ABDUL RAHMAN,
CHAIRMAN, SBH PERAK AGRO AQUACULTURE SDN BHD
SBH Perak Agro Sdn. Bhd. was technology into farming and seedlings,
established seven years ago as an local farmers were more than happy to The NKEA set a
agricultural joint venture with Trapia participate in our farming programme.
Sdn. Bhd. focusing on aquaculture and They learnt the latest technology in standard KPI for us,
vegetable farming. For aqua-farming, the quality organic farming and were proud
focus is on shrimp and fish farming for to participate. Our vegetables, shrimp requiring SBH Perak
both the domestic and export markets and fish are of international export quality
while for vegetable farming, we carry out
organic farming mostly for the export
and in high demand by our neighbouring
countries. Additionally, the sustainable
Agro to demonstrate
market.
SBH Perak Agro has capitalised on
profit sharing scheme with the farmers
is definitely a crucial success factor that
a 34% growth in our
the farming land bank we have in Perak
and boldly proposed to the Ministry of
ensures the continuous growth of the
company.
production, to engage
Agriculture, with the endorsement of the
Perak state government, to participate in
The NKEA programme also required
us to manage our risks and minimise
and to share our
the Agriculture NKEA programme when
we saw that some of its projects shared
losses in our farming activities. It
was quite challenging managing risk
profits with the
the same agricultural development
direction as SBH Perak Agro.
when unpredictable weather was an
uncontrollable factor that brought local farmers.
SBH Perak Agro was initiated to be damage to our farms. However, we were
a self-funding business and a farming able to utilise technologies that help us
project that would benefit local farmers. prevent diseases and pests in our farming
After we participated in the NKEA, we activities.
were able to obtain a soft loan to enhance We look forward to continued efforts Thanks to the support of the NKEA
our investment in quality vegetable and through the NKEA in the long-term for us which has helped build our channels
fish products. to invest in instilling an interest in farming of distribution. Now a majority of our
The NKEA set a standard KPI for us, among the younger generation; and also produce is currently for the export
requiring SBH Perak Agro to demonstrate to invest in the upstream and downstream market.
a 34% growth in our production, to of our production. Our production will
engage and to share our profits with the certainly continue to increase as we
local farmers. We are proud to say that expand our farming lands and facilities to
SBH Perak Agro was able to exceed the produce vegetables and fish.
KPI set by NKEA. With the investment of
AGRICULTURE
Paddy Farming Operation, an initiative under EPP 9, EPP 10, and EPP 11
Venturing into
From the total of 24 High-Value Products Edible birds nest packaged
for sale
herbal products under The herbal products sector during the year, Malaysia will now
the programme, has emerged as one of the

success stories under this NKEA,
be allowed to export raw uncleaned
edible birds nest to the country.
extracting value from Malaysias Previously, only raw and cleaned
11 products have expertise in traditional medicines edible birds nest were allowed for
which leverages the countrys rich export to PRC. This new protocol
entered clinical trial biodiversity. The project is on track to has opened a new market for
meet the 2020 target of completing Malaysian farmers and is expected
in local and overseas clinical trials for 10 nutraceutical and
cosmeceutical products. From the
to benefit 10,000 birds nest farmers
through an increase in prices from
locations. total of 24 herbal products under
the programme, 11 products have
RM3,000 to RM5,000 per kg versus
RM1,000 per kg previously.
entered clinical trial in local and Meanwhile, the market for raw
overseas locations i.e Europe, Japan, and cleaned edible birds nest has
the US, Egypt and Korea. Other seen a steady increase in the total
products are expected to further number of companies allowed to
progress into clinical trial phase by export their products to PRC. To
2017 after the completion of their date, a total of 19 local processing
respective pre-clinical studies. plants have been approved by the
Edible birds nest production Chinese Government for export,
marks another area in high-value from 15 in 2015 and just eight in
products where Malaysia has made 2014. These plants exported around
a name for itself. With the signing 324 metric tonnes of edible birds
of the birds nest protocol with PRC nest in 2016.
Irrigation system of paddy farming, initiative under EPP 9, EPP 10, EPP 11
AGRICULTURE
Commercial scale shrimp harvesting operation under EPP 6
With the agriculture industry has come for companies to double

experiencing steady growth, it is their efforts and focus on delivering
imperative that all stakeholders, both the production of their respective
from the public and private sectors agriculture products. This is to
to maintain their momentum in the ensure companies achieve the
implementation of the initiatives targeted output during the initial
under this NKEA. Stakeholders must planning of projects to enable the
also remain responsive to prevailing NKEA to realise its targets for GNI
economic conditions, build resilience and job creations.
and reduce their dependence on the The encouraging impact of
Government while maintaining if not efforts and initiatives led by the
increasing their productivity. NKEA Agriculture are clearly evident
The industry requires long- in many agricultural products and
term solution and better planning businesses in 2016 mentioned above.
to mitigate impacts of bad The full maturity of the industry is
weather, outbreaks of diseases anticipated when a new programme
and fluctuations in agriculture will be demanded to take the growth
prices. Furthermore, as the first of agriculture industry to a new level
construction phase of projects for Malaysia.
have been completed, the time
DATO SRI RICHARD

RIOT ANAK JAEM
Minister of Human
Resource
The Human Capital Development

(HCD) SRI is crucial in raising the quality
of Malaysian talent to adequately fulfil the
countrys labour demands as it journeys
towards high-income status.
This SRI came into being after the
National Economic Advisory Council
(NEAC) recommended nine HCD policy
areas of focus in the New Economic Model
(NEM). These recommendations were
predicated on the NEACs research, which
revealed that the quality of Malaysias
workforce, both that of existing workers
and new entrants, were insufficient to meet
the skill requirements of local industries.
This then necessitated a comprehensive
reform programme that encompassed
the creation of the overarching HCD
policy area and the two key themes of
Workplace Transformation and Workforce
Transformation.
Since then, the SRI has enabled the
introduction of important initiatives to
address the nine policy areas recommended
in the NEM, namely Modernise Labour
Legislation, Strengthen Strategic Human
Resources Programmes, Enhance the
Labour Safety Net, Undertake Labour
Meeting the
Market Analysis and Leveraging Womens
Talent.
As a result, in 2013 we witnessed the
enforcement of the Minimum Wages Order
Talent Needs of
2012, gazetted on 16 July 2012 to provide
protection to vulnerable workers by setting
a legal floor wage, to meet the workers
a High-Income
basic needs, and the Minimum Retirement
Age Act 2012, which sets the retirement
age for private sector employees to 60
Nation
years to take into account the longer
lifespan of Malaysians and a need to
increase their retirement savings. The first
minimum wage review was carried out in
2016 and the new Minimum Wages Order
2016 which took effect on 1 July 2016

raised the floor wage to RM1,000 from
RM900 per month in Peninsular Malaysia,
and RM920 from RM800 in Sabah, Sarawak
OVERVIEW
and Labuan. The Human Capital Development SRI represents a component
The SRI has also paved the way for small- of the NTP, cutting across all NKEAs under the Economic
and medium-sized enterprises (SMEs), Transformation Programme. A direct offshoot of the NEM, the goal
which form the backbone of Malaysias of this SRI is to enhance human capital capabilities and address
economy, to enhance their business human capital needs to support the execution of all 12 NKEAs and
performance through the establishment thus, contribute towards Malaysias aspiration of achieving high-
of the National Human Resource Centre income nation status by 2020.
(NHRC). Furthermore, the Institute of Efforts have focused on enhancing the capabilities of the local
Labour Market Information and Analysis workforce, advocating diversity of workers and implementing
was established to ensure the Government policy measures which will uplift the earning potential of lower-
is equipped with sufficient data to aid in income workers. Among the SRIs highlights during the year
manpower planning. include an increase in the minimum wage, marking the first review
We have also seen the MyProCert since the policy was gazetted in 2012.
Upskilling Programme and National Talent
Enhancement Programme play important
roles in upskilling our talent pool to support
the development of the NKEA. This is
particularly crucial as the need to upskill Among the SRIs highlights during the
our current workforce and become globally
relevant is imperative. The Government year include an increase in the minimum
remains positive that the foundations laid
through this SRI will foster a conducive wage, marking the first review since the
landscape for our talents to thrive.
policy was gazetted in 2012.
Building Talent
Capabilities
This SRI has put in place efforts
designed to enhance the capabilities
of Malaysias workers in line with the
talent needs of a high-income nation.
This, in turn, enables the workforce to
avail themselves of the opportunities
in high-value jobs created by the
initiatives under the NTP.
Among these efforts has been
the establishment of an overarching
strategy for the continual upgrading
of the domestic workforce. This
is undertaken by developing and
strengthening links between industry
HRDF Conference & Exhibition 2016.
players and educational institutions
to improve the relevance of tertiary
and vocational training in the real The SRI has also spearheaded the Portal and Call Centre in 2012, with
world. One highlight of this initiative establishment of the National Human its tailored HR solutions adopted
is the partnership between the Resources Centre (NHRC) to support by over 4,000 SMEs. The NHRC
Department of Skills Development, the growth momentum of SMEs, Portal provides solutions for a range
the German-Malaysian Institute (GMI) which typically lack human resource of issues pertaining to recruitment
and Malaysian German Chamber management capabilities. Established through to retirement via toolkits,
of Commerce and Industry for the in 2012 under the purview of MoHRs templates and process flows that
establishment of the Dual Vocational Human Resources Development have been simplified for SME use
Training Programme (DVT). Fund Corporation (HRDF), the NHRC but can easily be scaled up to suit
Facilitated by PEMANDU, the provides strategic HR solutions for more sophisticated contexts. The
partnership commenced in June SMEs including walk-in advisory NHRDC also serves as a helpdesk
2014 with 22 trainees undergoing sessions and larger-scale HR Club & for queries on HR matters, such as
training in industrial management (11 Peer Mentoring sessions. employee and industrial relations. In
trainees) and logistics management The Centre also launched its 2016, an additional 11,605 employers
(11 trainees). The scheme involves 17
companies which are mainly German-
based (e.g. Infineon, Schenker,
a.hartrodt, Bosch, SGL, TV Rheinland
and Panalpina). One highlight of this initiative is the partnership
Due to its success, MoHR will fund
the expansion of the programme. between the Department of Skills Development,
Aside from industrial and logistics
management, students will also be the German-Malaysian Institute (GMI) and
able to enrol in mechatronic courses.
Additionally, the Penang State Malaysian German Chamber of Commerce and
Government sponsored RM2 million
to expand the programme in the state Industry for the establishment of the Dual
through an agreement between the
Penang Skills Development Centre
(PSDC) and the Malaysian-German
Vocational Training Programme (DVT).
Chamber of Commerce and Industry.

Uplifting Earning
registered with and benefited from
the NHRC Portal.
In addition, the NHRC produced
two customised publications; Quick Potential of The minimum wage
Reference on HRM for SMEs and How
to Write an Employee Handbook, Low-Wage Groups has succeeded in
both of which have been distributed
to SMEs and employer associations Enacted in 2012, the Minimum contributing to a
across the country to equip
entrepreneurs and HR practitioners
Wage Order institutionalised
minimum wages for the domestic reduction in income
inequality in Malaysia,
with the appropriate knowledge, labour market in an effort to uplift
competencies and skills to build the living standards particularly of
competitive and sustainable SMEs the lower-income groups. Under
that can compete on the international this Order, the minimum wage for benefiting the
stage. workers in Peninsular Malaysia as well
This policy area also witnessed as Sabah, Sarawak and Labuan was countrys lowest paid
the launch of HR capability-building initially set at RM900 and RM800,
programmes in 2012, which were respectively, with a view of reviewing workers.
open to HRDF and non-HRDF the minimum wage periodically
registered employers. A total of to ensure it reflected prevailing
33,735 employers participated in economic conditions. In July 2016, the
these programmes in 2016, enabling minimum wage was raised to RM1,000
their employees to earn qualifications for Peninsular Malaysia and RM920
like certificates and diplomas in for Sabah, Sarawak and Labuan. The
Human Resources. Since 2013, a total revision took into account the cost of
of 96,616 employers have participated living as well as the need to balance
in these programmes. employers operational costs.
My PLIC 2nd Malaysia Productivity-Linked Wage Conference With Dato Sri Richard Riot Anak Jaem Minister of
Human Resource, Malaysia.
HRDF Conference & Exhibition 2016.
The minimum wage has

succeeded in contributing to a
As reflected by statistics from the Department reduction in income inequality in

Malaysia, benefiting the countrys
of Statistics Household Income and Basic lowest paid workers. As reflected

by statistics from the Department
Amenities Survey 2014, median monthly income of Statistics Household Income

and Basic Amenities Survey 2014,
for the bottom 40% of Malaysias income earners median monthly income for the
bottom 40% of Malaysias income
recorded a compounded annual growth rate earners recorded a compounded

annual growth rate (CAGR) of 13%
(CAGR) of 13% between 2009 and 2014, rising between 2009 and 2014, rising
from RM1,440 to RM2,629. Mean
from RM1,440 to RM2,629. monthly income registered a CAGR

of 12% during the same period, from
RM1,440 to RM2,537. The CAGR for
B40 median and mean income also
rose more than that of the middle
40% (M40) and top 20% (T20) of
income earners, with M40 earners
seeing a 9% CAGR in both median
and mean income, and T20 earners
recording CAGR of 8% and 7% in
median monthly income and mean
monthly income, respectively.

Championing
women talents to raise national are encouraged to have at least
productivity standards. 30% of their key decision-making
Workforce Diversity
All Ministries and government positions filled by women executives,
agencies have been mandated to though such appointments must be
incorporate gender issues into their made based on meritocracy.
In addition to helping to enhance policy design. Likewise, through a In this light, the Prime Minister
Malaysian talent capabilities and memorandum from the Ministry of had in 2015 announced two new
introducing the appropriate policies Women, Family and Community measures to increase the percentage
to improve working conditions, Development in 2004, public of women on company boards:
this SRI has focused on leveraging companies, both listed and unlisted,
1.
Through policy requirements,
government-linked companies
will allow their executives to serve
on the boards of other listed
companies, as long as there is no
conflict of interest; and
2. Moving forward, listed companies

will be required to disclose in their
Annual Reports the composition
and diversity of their boards and
top management in terms of
gender, ethnicity and age.
Furthermore, directives had

also been issued for corporations
to implement policies that
allow greater flexibility in work
arrangements and provide for
childcare support, as research has
FIGURE 1: 54% Women Participation In Labour Force shown that the existence of such
support systems result in higher
female labour participation rates
(e.g. Denmark and Sweden each
spend 1.7-2.7% of their GDP on
childcare and have over 70% of their
women in the workforce).
A study from United Nation
Development Programme Asia-
Pacific Human Development Report
2010 suggested that an increase of
female participation in workforce
up to 70% can boost Malaysias GDP
up by an additional annual growth
of 2.9%, dramatically catalysing the
countrys aspiration to be a high-
income nation. The 11MP has set a
target to achieve at least 59% female
participation in the workforce by
2020.
Under this initiative, the Ministry in the workforce. TalentCorp Malaysia

of Women, Family and Community in 2016 supported 32 companies
Other key measures Development has encouraged
employers to set up childcare
offering of FWA and facilitated
the return of 168 women to the
taken by the Government centres in the workplace. This push
has seen 41 out of 483 new centres
workforce after a career break under
the Career Comeback Programme.
to increase female established in 2016. A total of 1,637
childcare minders were trained
The participation of women
in public-sector decision-making
worker participation with the Kursus Asuhan PERMATA
module during the year.
positions has risen tremendously,
and this has been reflected in the
include encouraging While training child minders is
aimed at improving the delivery of
private sector for listed companies
as well. In 2011, the Prime Minister
employers to implement childcare services, additional efforts
were put in to encourage parents to
announced the target of 30%
women in decision making positions
Flexible Work enroll their children into registered
childcare centres by driving the
by the end of 2016. As at end of
2016 (1) the percentage of women
Arrangements (FWA) and establishment of new childcare
centres as well as registering
on boards of Bursa Malaysias Top
100 Public Listed Companies by
the Career Comeback unregistered centres. This saw the
establishment and registration of
market capitalisation was at 16.6%,
a marginal improvement from the
Programme launched in a total of 1,256 childcare centres in
2016, allowing for better governance
14% in 2015, (2) 26% women in top
management (including CEOs) and
March 2015 for women to from relevant authorities in ensuring
quality childcare services. However,
(3) 29% women in top management
(excluding CEOs). The commendable
return and be retained in enrolment declined from 8% in 2015
to 6.8% in 2016 as data was verified
result was due to the effort of
the Ministry of Women, Family
the workforce. to ensure its accuracy, following
double counting found in data from
and Community Development
in collaboration with Securities
previous years. It is the goal of the Commission, Bursa Malaysia, Talent
Government to improve childcare Corp and the 30% Club.
services delivery and quality in an Founded in the UK, the 30%
attempt to lessen the burdens of Club aims to develop a diverse
working mothers as well as attract pool of talent for all businesses to
women to return to work. improve the gender balance at all
Other key measures taken levels of their organisations. Initially
by the Government to increase targeting to triple the percentage
female worker participation include of women on boards of companies
encouraging employers to implement to 30% by 2016, the timeframe was
Flexible Work Arrangements extended to 2020 as the Olympic
(FWA) and the Career Comeback target deadline was not met.
Programme launched in March 2015 However, we are close to
for women to return and be retained achieving the 30% target for women

MINIMUM WAGES ORDER CONTRIBUTES TO INCOME GROWTH
high-income economy which is
inclusive, wages at the bottom of
the wage scale had to be lifted up.
Additionally, the minimum wages
policy is expected to benefit the
economy in the long-run with the
improvement in the purchasing
power of the working class due to
the higher wages.
Minimum wages in Malaysia
is implemented through the
National Wages Consultative
Council 2011 (Act 732). Act 732
provides a mechanism where the
NWCC, which comprises employer,
employee, Government and NGO
representatives, deliberate and
recommend minimum wages rate
for consideration and decision of
Malaysia reached a historic
milestone in January 2013 with
In order for Malaysia the Cabinet.
Two Minimum Wages Orders
the introduction of the Minimum to become a high- have been made so far, starting
Wages Order, a new policy with the Minimum Wages Order
designed to raise the income scale income economy which 2012 which has since been
in the country in tandem with its replaced with the Minimum Wages
high-income aspirations. is inclusive, wages at Order 2016.
Implementing the policy The International Labour
however, was no easy feat, as the the bottom of the wage Organisation (ILO) refers to
Government needed to secure minimum wages as a form of
consensus from both employer scale had to be lifted safety net meant to secure
and employee groups; with the
Government playing the role of up. employees a reasonable basic
standard of living. For Malaysia,
mediator to ensure a win-win the minimum wages policy is
solution for all stakeholders. intended to ensure employees can
T Shanmugam, the Secretary of meet their basic needs and create
the Ministry of Human Resources anxieties that the minimum wages the necessary environment for
National Wages Consultative have increased their cost of doing industries to move up their value-
Council (NWCC) tasked with business. On the other hand, chain by increasing productivity
implementing the policy who has the workers are arguing that the of their employees through the
been involved in this initiative present minimum wages are too use of technology, automation and
since it was initiated under the low and need to be increased due other innovations, Shanmugam
Human Capital Development SRI, to the rising cost of living. This explains.
notes, So far, Malaysias journey scenario is rather baffling for the He adds that Malaysias
in implementing minimum wages policy makers, especially for the minimum wages policy is unique
policy has been rather interesting. Ministry of Human Resources! as the NWCC is assisted by
I say interesting because He explains, however, that in an independent and impartial
employers on one hand, raised order for Malaysia to become a technical committee known as
the National Wages Consultative Shanmugam also notes that the Minimum Wages Order has
Technical Committee (NWCTC). there have been calls for a lower transformed the lives of Malaysias
The primary role of this committee, minimum wages rate for foreign low-income earners in the three
comprising representatives from workers to offset benefits received years of its implementation.
the Department of Statistics, by foreign workers, such as free Directly, about 1.9 million
Malaysia, Malaysia Productivity accommodation. floor level workers have benefited
Corporation and academicians However, the Government from the introduction of minimum
in socioeconomic and does not support the idea of wages through the Minimum
macroeconomic fields is to advise having a separate (lower) minimum Wages Order 2012. Indirectly,
NWCC on all technical aspects of wages for foreign workers as we due to the ripple effect of the
minimum wages. should not discount their immense minimum wages for the upper
Furthermore, while various contribution to the Malaysian level workers, the supervisory and
statistical indicators such as economy. Besides, implementing a middle management workers have
the median wage, poverty line separate minimum wages package also benefitted from this policy,
income, productivity growth, for foreign workers would be says Shanmugam.
unemployment rate, consumer against the existing provisions in The Government also remains
price index and other indices form labour legislations as well as not committed to reviewing the
a reference point to determine conform with international labour minimum wages rate at least once
the minimum wages rate, NWCC standards. every two years in accordance
also places emphasis on spirit of In addition, beginning June with Act 732. Shanmugam explains
tripartism among the employers 2016, Malaysia has also ratified that adjustments are based on
and employees representatives. the ILO Minimum Wages Fixing components including Poverty
This is to ensure the final Convention No 131, which is Line Income, productivity growth,
recommendation made to the an international instrument the inflation rate, median wage
Government on the minimum for smooth implementation of and the unemployment rate.
wages rate takes into account the minimum wages, Shanmugam However, based on several
best interest of all parties. says. discussions with various parties
With this need to consider the He also notes that there including the ILO and the World
concerns of various stakeholders, remains a lack of officers to carry Bank, since Malaysia was reviewing
Shanmugam notes that other out inspections and enforcement the minimum wages order for the
challenges which have arisen from activities on minimum wages, with first time ever, it was their view and
this initiative include the continued only 503 enforcement officers for advice that a balanced approach
disparity between the minimum the whole country. This is against should be taken to avoid sending
wages in Peninsular Malaysia the 965,998 places of employment shocks into the labour market
and Sabah, Sarawak and Labuan. registered with the Labour Market which could be detrimental to the
This is due to the varying levels Database. overall economy.
of economic development and This has cast doubt on the As such, a smaller increase,
socioeconomic indicators such as efficacy of the enforcement of which was RM100 for Peninsular
the median wage, unemployment among others, the minimum wages Malaysia and RM120 for Sabah,
rate and productivity growth. law. However, continuous effort to Sarawak and Labuan was
Nonetheless, with the minimum implement a more strategic and implemented. In a nutshell, a slow
wages raised to RM1,000 a focussed inspections at places of and steady increase, appeared to
month in Peninsular Malaysia, employment are being done and be more palatable to industries to
from RM900 at its introduction; discussions with the Public Service absorb the increase in the labour
and to RM920 a month in Sabah, Department for additional labour cost, says Shanmugam.
Sarawak and Labuan from RM800 officers are constantly been held,
previously, the gap in minimum he says.
wages has been reduced from In spite of these impediments
RM100 previously to RM80 now. and the NWCCs daunting task,

MOVING FORWARD
Technical Vocational Education and afforded by vocational education to It is also heartening to note that
Training (TVET) and upskilling efforts ensure more take-up of TVET. HRDF is presently leading the way
continue to provide a significant In the area of leveraging women in encouraging companies to fully
platform for new opportunities and talent in the workforce, the SRI will utilise the mandatory training levies
transformation of the countrys continue to implement initiatives they have paid to the Fund to upskill
human capital development focused on enabling women to their staff on a more regular basis.
initiatives. By 2020, this SRI is return and be retained to work, In addition, significant headway has
targeting for skilled workers to such as through the Flexible Work been made to increase womens
make up 35% of the workforce, Arrangement (FWA), and organising participation in the workforce and
from the current 28%, to ensure career come-back events. However, tighten the bonds between industry
that companies can be confident as improving childcare services has and educational institutions, while
of having the pipeline of workers proven to be challenging, in 2017, the Human Capital Development
needed for operations. In view of the SRI will see the implementation Council is envisioned to continue
this, the Government continuously of the childcare action plan working closely with the relevant
seeks opportunities to engage and developed during a workshop authorities and institutions to ensure
encourage employers to increase held in 2016 to increase childcare meaningful progress is made to
their involvements in dual vocational enrolment and improve the quality upgrade the domestic workforce to
training to enable industry training to of childcare. Meanwhile, in relation international standards and meet
make up 70% of TVET and upskilling to increasing the number of women domestic talent requirements.
syllabus, with the remainder to in key decision-making positions, However, it is imperative for all
be made up of classroom/theory continuous engagement sessions relevant agencies to collaborate with
lessons. This will ensure employees will be organised by the 30% Club the private sector to ensure Malaysia
trained are fit for industry. At the Malaysia, the NAM Institute for the meets its talent development needs
same time, there remains a need Empowerment of Women (NIEW) as it transforms into a high-income
to raise the awareness of students and TalentCorp. nation in 2020.
and parents on the opportunities
PUBLIC SERVICE DELIVERY TRANSFORMATION
TAN SRI DR. ALI HAMSA

Chief Secretary to the Government
The Public Service Delivery Transformation

Strategic Reform Initiative (PSDT SRI) aims
to improve the efficiency and effectiveness of
services delivered by the Government to the
rakyat.
The core of all PSDT SRI initiatives is to focus
on doing more with less. In other words, PSDT
aims to enhance the efficiency and effectiveness
of public services, such that the Government can
continue to meet the rakyats expectations even as
it becomes more prudent in its spending.
PSDT SRI projects are typically rakyat-focused,
process-driven improvements that yield big,
fast results. Since its inception in 2013, we have
initiated 130 projects across 15 Ministries, of which
we have successfully closed 114. Currently, 16
projects remain in the active phase.
Weve seen many successful projects resulting
from the PSDT SRI. These include the improvement
of road signage in Kuantan; working with Muda
Agricultural Development Authority (MADA) to
increase paddy production in the Muda area by an
expected 100% come 2020; the pre-hospital care
pilot, which sought to respond to 90% of all top-
priority ambulance calls within 15 minutes in key
locations throughout the GKL/KV region.
Indeed, some of the SRI flagship projects
DELIVERING
have become successful beyond their original
intent. Such is the case with LEAN Healthcare,
which started out with merely two LEAN pilot
projects in Hospital Sultan Ismail and Hospital
EXCELLENCE
Tengku Ampuan Rahimah, respectively. Since
then, it has been elevated to become an initiative
that will be rolled out to all 134 Ministry of Health
THROUGH OUR
(MOH) hospitals over the coming years. So, too
with the Kuala Lumpur City Hall (DBKL)s Lift
Transformation initiative, which has grown from 1
PUBLIC SERVICES
Projek Perumahan Rakyat (PPR) PPR Batu Muda
to five PPR/Perumahan Awam (PA) in 2016, and
to 40 PPRs/PAs in 2017.
The PSDT SRI needs to rise up to answer the
three key challenges that will be faced by the
government as we move towards becoming a high-

income developed nation; namely,
an increasingly aging population,
the rakyats rising expectations
OVERVIEW out in the Emergency Department
(ED) model of care as developed
by the New South Wales Ministry
and potential budget shortfalls. PSDT SRI projects focus on of Health. The model requires ED
As a result, we need to improve process improvements and the patients to be assessed and treated
the efficiency and effectiveness of enhancement of service quality. The by ED personnel within two hours.
public services that are and will be projects are piloted to demonstrate If additional specialised consultation
delivered to the rakyat. measurable and meaningful or care is required, the patients need
Often times, though, PSDT is outcomes in a short time frame. At to be reviewed by the specialty team
not seen as a priority by those not the same time, the projects are highly and transferred to an inpatient bed or
directly involved. By showcasing the scalable, leveraging the capabilities discharged home within the next two
successes of past and current PSDT of the civil service to ensure that hours.
SRI projects in increasing public these projects and their learnings Similarly, DBKLs Lift Transformation
satisfaction while streamlining can become the new nationwide initiative benchmarked itself against
budgets, we hope to create the standard of delivery. the Singapore Housing & Development
desire within other Ministries and Two major PSDT SRI stakeholders, Board (HDB), which institutionalised a
government agencies to embark on Ministry of Health (MOH) and the complete performance-based asset
projects of their own. Ministry of Federal Territories (KWP), management solution involving
Moving forward, I would like have demonstrated the effectiveness 16 town councils and 10,000+
to encourage other Ministries of this approach. LEAN Healthcare, apartment blocks, covering over 81%
and government agencies to under MOH, is aimed at improving of Singapores residents. Using this
strive for public service delivery the quality of care provided by solution, HDB has been able to record
transformation. As we move public hospitals with existing significant reductions in residents
towards becoming a high-income resources, thereby enhancing the complaints; technician overtime
nation by 2020, it is important patients experience and adding claims; contractors response and job
that we continuously strengthen value to public health service. completion times; inventory annual
the delivery of our services to the In 2016, 88 PSDT projects were purchases and delay of completion
rakyat. successfully completed and closed. of work orders. Overall, the PSDT SRI
MOH and KWP have continued to achieved 140% of its KPIs in 2016.
build on the successes of their pilot
projects, while the Ministry of Higher
Education has decided to rollout
the LEAN Healthcare programme to
its university hospitals, starting with
UMMC.
Meanwhile, both PPR/PA Lift
Transformation and Road Maintenance
Transformation initiatives under KWP
are community-focused, aiming to
improve the daily experiences of
public housing owners and tenants,
as well as road users within the Kuala
Lumpur city centre.
PSDT SRI projects are
benchmarked against the
performance of their international
counterparts to ensure that the
results of the projects are at par
or exceed world-class standards.
The LEAN Healthcare initiative, for
instance, sees MOH adopt the four-
hour emergency access target set
In 2016, a total of 80 LEAN

projects were implemented at these
36 hospitals. The first batch of 16
hospitals progressed to the second
phase of LEAN improvements
involving the hospitals EDs and
Medical Wards (MWs). The second
batch of 20 hospitals saw 40 LEAN
projects initiated at their EDs
and MWs. Another eight LEAN
Healthcare projects were initiated in
the Ophthalmology & Orthopaedics
Specialist Clinics at four hospitals
in the Klang Valley (Hospital Kuala
Lumpur, Hospital Tengku Ampuan
Rahimah, Hospital Sungai Buloh, and
Hospital Selayang). This followed the
successful implementation of LEAN
projects at their EDs and MWs.
The majority of the projects
implemented during the year yielded,
on average, between 20% and 50%
improvement in patients waiting
time. This was largely due to strong
buy-in from all stakeholders at MOH;
The Accident and Emergency Department at Hospital Kuala Lumpur. from the senior management at the
Ministry, right down to the hospital
staff. As a result, the Ministry of
Higher Education (MOHE) decided
Enhancing the Patient

to join MOH by rolling out the
LEAN Healthcare programme to its
PSDT SRI projects are Experience at Public

teaching hospitals, implementing its
first LEAN project at the Accident &
benchmarked against Hospitals

Emergency Department in Universiti
Malaya Medical Centre (UMMC).
the performance of
This has since reduced the average
MOH started the LEAN Healthcare length of stay of non-critical patients
project in late 2013 in Hospital Sultan by 53%. UMMC is now in the midst
their international Ismail in Johor Bahru, followed by of implementing its second LEAN
Hospital Tengku Ampuan Rahimah project at its MWs.
counterparts to ensure in Klang. Due to its rapid success, in The reduction in patient waiting
2014, the Ministry decided that LEAN time has increased hospitals capacity
that the results of the Healthcare would be rolled out to all to treat more patients and lead to
134 Government hospitals in several shorter waiting time for patients and
projects are at par or batches of about 20 hospitals each.
To date, LEAN Healthcare has been
cost saving for the Government. In 2017,
a customised training programme will
exceed world-class implemented in 36 MOH hospitals
nationwide and has since proven its
be developed and rolled out to the
quality departments within hospitals,
standards. worth in enhancing the delivery of
healthcare services in Government
so that they are better positioned to
initiate and oversee the expansion of
hospitals, exceeding the 2016 target LEAN to other departments within
of 15 hospitals. their hospitals.
PAVING THE
WAY TO
BETTER ROADS
According to Sabudin Mohd.
Salleh, Senior Deputy Director of
DBKLs Civil Engineering & Urban
Transportation Department, Road
Maintenance Transformation deals
with one of the most critical needs
of the rakyat. It is our objective to
do what we can as fast as we can to
reduce the burden on motorists, he of manhole deterioration, we are which are multi-lane. Yet despite
states. dependent on their responsiveness. a budget that has been gradually
All 43 protocol roads (roads 70 % of the complaints we get reduced year after year (in 2016,
used for diplomatic processions and concerning this issue involves their DBKL had received federal funding
travel) as well as other main roads manholes, Sabudin explains. In of around RM33 million), this PSDT
that see heavy usage within the city the case of these companies not project has been able to deliver nearly
centre are under the PSDT SRIs Road responding fast enough, DBKL will 100% of its aim, which is to have all
Maintenance Transformation project, pre-emptively seal these manhole complaints attended to within 12
which mandates an initial response covers and bill the companies - hours. Only in one instance was there
within 12 hours of the Department charging them out of the RM5 million a delay: the response team, who had
receiving a complaint. There are deposit (RM10 million in the case of arrived onsite at night, couldnt find
multiple avenues of contacting TNB) they each have placed with the pothole in question, and had to
DBKL about road complaints. All DBKL. The public doesnt care whose wait until the next day.
of the communications received responsibility it is, and these roads are Our plan in moving forward is
are recorded and documented in under our jurisdiction, so we have to to work with the utility companies
accordance with our ISO-certified discharge our duty regardless. to prevent manhole-related pothole
standard operating procedures. One of the innovations the Road issues; this will be done by introducing
It may take some time for those Maintenance Transformation team manholes fixed in the centre of a
complaints to reach the departments brought in to reduce the number concrete slab, which essentially
PSDT team but once it does, we aim of road complaints has been to makes them zero-defect, Sabudin
to send a crew out within 12 hours, eliminate the occurrence of repeating explains. These new manholes are
Sabudin clarifies. potholes, where poorly-patched not cheap, and there are thousands
Not all complaints can be resolved potholes tend to collapse and require of manholes to be replaced, but in
immediately, as Sabudin points out. If patching again within a short time. the long run, they will cut down the
its just a simple pothole we can patch There is a specific process to follow number of complaints and potholes
there and then, we do so. There are in order to avoid this issue, and we we need to attend to.
more complex jobs, such as sinkholes, have been sending our road repair
which may take several days and the crews to training courses on how to
organisation of a lot more material
and equipment. But it is important to
get it done, Sabudin states.
Road maintenance is
It is our objective to
us that we take quick action.
It has not been without its
extraordinarily expensive. A single
pothole patcher alone costs several
do what we can as fast
challenges. DBKL deals with 11 public
utility companies water, sewage,
hundred thousand ringgit. It has
been estimated that RM200 million is
as we can to reduce the
telcos and so on who are responsible
for most of the citys manholes, so
required to resurface 1,800km of road
lanes, while DBKL has jurisdiction
burden on motorists.
when potholes occur as a result over 5,000km of roads, many of
Projek Perumahan Rakyat allow the low-income group to dwell in comfort.
Caring for the City

Community The PPR/PA Lift Transformation project is an
KWP has developed two
initiative to improve the condition of lifts and
initiatives under the PSDT umbrella,
the PPR/PA Lift Transformation and ensure their optimum availability for residents
Road Maintenance Transformation
projects, both of which are under convenience, through prompt maintenance
within the various PPRs and PAs under DBKLs
the purview of DBKL. Since its
inception in 2015, beginning with lift
transformation at PPR Batu Muda and
road maintenance transformation at jurisdiction.
the Middle Ring Road 1, the PPR/PA
Lift Transformation programme has
expanded to five PPRs/PAs, while the
Road Maintenance Transformation condition of lifts and ensure their actively monitored. Additionally,
programme was undertaken on optimum availability for residents approximately half of the lift
136km of 43 main and protocol convenience, through prompt maintenance budget was attributable
roads around the KL Central Business maintenance within the various PPRs to lift breakdowns primarily caused
District (CBD) in 2016, achieving KPI and PAs under DBKLs jurisdiction. by misuse, abuse and vandalism.
targets of 119% and 100% respectively. Formerly, the maintenance approach In an effort to educate PPR/
The PPR/PA Lift Transformation was very much ad hoc and reactive PA communities on best practices
project is an initiative to improve the in nature, and the jobs were not for lift usage, a comprehensive

communications programme was
carried out. There were also the
issues of aging lifts, the availability In total, the average
of spare parts for these lifts and the
unusually bad condition of several
lifts, for which the most cost-effective
uptime of lifts
solution was the wholesale upgrade/
replacement of these lifts. In total,
at the five PPRs/
the average uptime of lifts at the five
PPRs/PAs, comprising 33 apartment
PAs, comprising 33
blocks with 96 lifts, under the purview
of DBKL has been improved.
apartment
Meanwhile, the Road Maintenance
Transformation project faced
blocks with 96 lifts,
challenges in manpower and logistics,
which DBKL overcame by re-rostering
under the purview
shifts and ordering/deploying
additional equipment. To mitigate of DBKL has been
supply costs, just-in-time inventory
methods were employed while DBKL improved.
also improved its ordering processes.
DBKL also opted for the use of cold
mix asphalt as an alternative to speed
up minor repairs, although this was
used sparingly to manage costs.
The Skuad PSDT on duty in Kuala Lumpur.

DBKL UPLIFTS
AFFORDABLE HOUSING RESIDENTS
The PPR/PA Lift Transformation
project is one of two PSDT SRI
projects initiated by Kuala Lumpur
City Hall (DBKL). Mechanical
engineer Noor Suhailan Abdul
Wahab, who has been with
DBKLs Housing Management
and Community Development
Department for over 16 years, is one
of the project leads for the PPR/PA
Lift Transformation.
This project was chosen as part
of the PSDT SRI because there are
523 residential lifts to maintain under
DBKLs jurisdiction, which affects
many residents lives. Not only did we
receive many complaints about lift
breakdowns, but we have recorded
at least one fatality involving a young 2015, DBKL has focused on reducing Thus far, results have been far
boy, Noor Suhailan explains. response times and the number of above expectations. We focus on
As a result, DBKL started focusing lift breakdown complaints as its KPIs. lift uptime within the month; we had
its attention on improving response Contractors had been requested planned on achieving 85% uptime
times to lift breakdown complaints. to deploy special teams dedicated to from the estimated 70%-80% in the
One of the major complaints about serving these particular PPRs/PAs. past, but we had achieved ~96%
the lifts is the frequent occurrence CCTV systems had been installed uptime on average. It came as a
of the man-trap issue, where the to try and cut down the amount of pleasant surprise, Noor Suhailan
lift stops halfway and those inside vandalism, although occasionally recounts.
are unable to get out. Noor Suhailan theyre subject to vandalism Of course, replicating this
notes that much of the problem was themselves. We have also brought in spectacular result across its
due not to mechanical failures per se, lift watchmen at night to check up jurisdiction from 96 lifts to around
but rather the result of lift vandalism on the lifts, Noor Suhailan details. 300, which is what DBKL plans to do
and misuse. Not only have these measures for 2017, will be a challenge. All lifts in
Lift overloads; opening the lift been cost neutral, but the actual costs all the public housing developments
doors when the lift hasnt reached of lift maintenance and repair have will either be replaced altogether,
the floor yet; jamming the door been dropping, and Noor Suhailan or be placed under the PPR/PA
open, which results in the lift motors believes that the PSDT SRI project Lift Transformation project, Noor
burning out; relieving themselves in is one of the main reasons for this. Suhailan says.
the lifts; these are just some of the The budget we use on preventing However, he is confident that it is
factors that cause man-traps and vandalism and having quick possible. We get a lot of complaints,
other lift failures to happen. He response times to lift complaints is but its not uniformly distributed
emphasises that the priority in those more than offset by the amount we across all PPRs/PAs. We will need
circumstances is to first rescue the save on not having to do costly lift to focus on the complaint hotspots,
people trapped within the lifts repairs or parts replacements, he probably add more dedicated teams
before repairing the faults. reckons, pointing out that regular and reduce the number of lifts under
From a pilot on one public lift maintenance on the other public each team. We are now currently
housing development (PPR Batu housing developments were being studying how we can scale up the
Muda) in 2014 to five of the top 10 in carried out as usual. implementation.
000

MOVING FORWARD As per its schedule, MOH
intends to expand the rollout of
will be extended to 40 PPR/PAs
under DBKL, involving a maintenance
LEAN Healthcare to another batch schedule for over 500 lifts. The Road
of 15 MOH hospitals, as well as pilot Maintenance Transformation project
a block appointment system at is also expected to cover the whole
Hospital Sungai Buloh involving all Central Business District (CBD) of KL,
the specialist clinics. which comprises five zones in total.
The block appointment During this time, the teams will have
system will involve scheduling to be up to face various challenges,
patient appointments using pre- including the possible changes of
determined time blocks (e.g. two their leadership and their members,
hours), and matching the number taking into consideration cuts to
of appointments within each time their operational expenditure budget,
block to the capacity of the service and ensuring that these process and
provider. This is to mitigate the quality improvements continue to be
current practice of many patients applied and practiced, rather than
who arrive at the hospital between falling back to the previous, more
7am and 9am, resulting in congestion familiar (but also more inefficient)
in the parking area, overcrowding in routines.
the specialist clinics, and long waiting
time for patients and caregivers alike.
With the best practices learned
and acquired, KWPs PSDT teams have
been inspired to continue with both
transformation projects in 2017. The
PPR/PA Lift Transformation project
DATO SERI
HAMZAH ZAINUDIN
Minister of Domestic
Trade, Co-operatives and
Consumerism
The implementation of the Competition

Act 2010 is one of the Strategic Reform
Initiatives (SRIs) identified under the NTP,
intended to foster healthy and thriving
competition in the Malaysian economy.
It is the Malaysia Competition
Commissions (MyCC) intention that the
enforcement of the Competition Act 2010
will create an economy in which efficiency
and innovation can thrive by ensuring a
level playing field for local enterprises that
is free from anti-competitive activities.
This healthier and more competitive
market will deliver a wider range of high-
quality goods to the rakyat at competitive
prices, while innovative Malaysian
enterprises will bring their products and
services to the international level.
DATUK SERI
PANGLIMA WILFRED
MADIUS TANGAU
Minister of Science,
Technology and Innovation
With the theme of Standards Build

Trust, for the 2016 World Standards Day
celebration, Standards Malaysia continues
to play an important role in advocating
Raising
the value of standards to stakeholders.
The adoption of standards by Malaysian
companies not only help to improve the
quality of products and services, but also
Malaysias Global
to improve the efficiency of resources
used, gain public confidence and increase
customers satisfaction. In addition,
Competitiveness
standards have undisputedly become
the international language of commerce.
The common acceptance of standards is
fundamental to the success of robust, fair
and free trade.

DATO SRI MUSTAPA
MOHAMED
Minister of International
OVERVIEW
Trade and Industry The Competition, Standards and Liberalisation Strategic Reform
Initiative (CSL SRI) aims to enhance Malaysias attractiveness to
global business, commerce and industry by enabling an environment
that is conducive for business. Overall, CSL SRI achieved 103% of its
The current global economic scenario KPIs in 2016.
is challenging. To address these challenges, The Malaysia Competition Commission (MyCC) marked its sixth
the Government has placed several platforms year of operations and its fifth year of enforcing the Competition
to deliberate strategies to accelerate the Act 2010 (CA 2010) in 2016. During the year, it achieved milestones
growth of the services sector, which has been in enforcement, advocacy, market review, capacity-building,
identified as a major driver of the economy. and knowledge-sharing. As educational efforts are essential in
The Malaysia Services Development communicating the importance of CA 2010 to stakeholders in both
Council (MSDC) will continue to assume an the private and public sectors, MyCC continued to conduct advocacy
active role in monitoring and evaluating the programmes targeting business chambers, consumers associations,
implementation of services related blueprints industry players, universities and government bodies.
and masterplans to ensure a coherent and MyCC also undertook constructive action in issuing two decisions
cohesive approach towards the development against companies that had demonstrated anti-competitive practices
of the services sector. with a potentially large impact on consumers. Additionally, as one
National Export Council (NEC), another of its mandated activities under the Competition Act 2010, MyCC
initiative by the Government to address issues conducted a study on the pharmaceutical sector. Market reviews
related to the exports ecosystem, will work such as these remain critical in identifying anti-competitive elements
together with the private sector to propose in specific markets.
high impact strategies to spur the growth of Meanwhile, despite budget constraints, Standards Malaysia
exports, including the export of services. continued to champion adherence to standards and quality control
The National eCommerce Council (NeCC) nationwide. In 2016, Standards Malaysia organised two major awareness
was established in December 2015 under programmes involving the public in order to create demand for quality
the auspices of MITI as part of our efforts to products. Jointly-organised seminars on relevant standards were also
develop a high value, ambitious and lively held to assist industries in complying with standards.
e-commerce environment which is integrated To date, Malaysia has liberalised 45 sub-services sectors. Since the
within the global digital economy. The NeCC liberalisation of the sub-sectors, the Malaysia Services Development
will oversee the implementation of the Council (MSDC), which oversees the liberalisation process, has been
National eCommerce Strategic Roadmap improving the regulatory environment by reducing or eliminating
launched by YAB Prime Minister of Malaysia cumbersome and unnecessary regulatory burdens that may
on 13 October 2016. impede domestic and foreign investment in Malaysia. The Ministry
of International Trade and Industry (MITI)has also continuously been
involved in developing the capability of domestic industries to be
more competitive.
Forging a Path
A seminar on fighting bid-rigging
and abuse of dominant position in
Towards Greater The Special Committee public procurement was held on 26

September 2016 in Kuala Lumpur. The
Competitiveness on Competition was seminar forms part of MyCCs ongoing

initiatives to create awareness
Spearheaded by MyCC, the

formed to discuss among Government procurement
officers about the role of MyCC
Special Committee on Competition
was formed in 2011, comprising
mutual issues on and implementation of CA 2010.
The seminar was attended by 160
several sector regulators to discuss
mutual issues on competition laws
competition laws and participants from various Ministries
and agencies throughout the country.
and policy and to ensure consistency
in the application of the CA 2010 and policy and to ensure The keynote speakers of the seminar
included representatives from MyCC,
other related laws. The Committee
convened a meeting on 10 May 2016 consistency in the the Ministry of Finance Malaysia, the
National Audit Department and the
application of the CA
to discuss various competition issues Malaysia Anti-Corruption Commission.
cutting across sector regulators. The first Moot Court Competition
On 10 October 2016, a forum on on competition law was held on 17
competition law in the pharmaceutical 2010 and other related October 2016 in Kuala Lumpur. The
sector was held in Kuala Lumpur. event was the first of its kind held by
The objective of the forum was to laws. MyCC as part of its efforts to promote
discuss on competition law issues in CA 2010 among university students,
the pharmaceutical sector. The forum with the intention of creating a pool of
was attended by 85 participants competition experts in Malaysia. The
from the public and private sectors Moot Court Competition attracted
globally, and included keynote for Competition, Investment and the participation of six teams from
speakers from MyCC, the Ministry of Economic Regulation, India. five universities; namely, Universiti
Health, the European Commission, MyCC continued to focus on Malaya (UM), Universiti Kebangsaan
Spains National Authority for Markets advocacy and education on the Malaysia (UKM), Universiti Teknologi
and Competition, the Organisation importance of the CA 2010 by MARA (UiTM), Universiti Utara
for Economic Cooperation and engaging with stakeholders from Malaysia (UUM) and International
Development and CUTS Centre both the public and private sectors. Islamic University Malaysia (IIUM).
The Moot Court was won by the team
Competition from UM.
Beyond advocacy and educational
activities, MyCC also continues with
its enforcement of anti-competitive
practices, proactively undertaking
market reviews of various economic
sectors, as well as investigating
allegations of anti-competitive
conduct and behaviour and taking
appropriate action where necessary.
During the year, it conducted a
market review on the pharmaceutical
sector in accordance with section 11 of
CA 2010. The main objectives of this
Photo credit: Malaysia Competition Commission
market review were to understand
Students participating in the first Moot Court Competition held on 17 October the market structure and supply chain
2016 in Kuala Lumpur. of the pharmaceutical sector, identify
any anti-competitive practice among

Photo credit: Malaysia Competition Commission
Participants at MyCCs Forum on Competition Law in the Pharmaceutical Sector held on 10 October 2016 in
Kuala Lumpur.
the industry players and promote Decision against My E.G. Services

competition in the sector. The market Berhad (MyEG) and My E.G.
review is still ongoing and is expected Commerce Sdn Bhd (MyEG MyCC continued to
to be completed by March 2017. Commerce), after an investigation
In terms of anti-competitive based on numerous complaints focus on advocacy
investigations, MyCC issued two main received alleging that MyEG had
decisions pursuant to Section 40 of
CA 2010:
abused its dominant position in
the provision and management
and education on the

Decision against Containerchain
of online Foreign Workers Permit
(PLKS) renewals. MyCC found
importance of the CA
(M) Sdn. Bhd. (Containerchain),
together with four container depot
that the companies had infringed
section 10(2)(d)(iii) of CA 2010 by
2010 by engaging with
operators, namely Ayza Industries
Sdn Bhd/Ayza Logistics Sdn Bhd;
abusing their dominant position
in harming competition in the stakeholders from
ICS Depot Services Sdn Bhd; E.A.E. downstream market in which
Depot & Freight Forwarding Sdn MyEG Commerce is participating both the public and
Bhd; and Prompt Dynamics Sdn as an insurance agent for online
Bhd for engaging in price-cartel PLKS renewal applications. private sectors.
activities. Through these activities,
the container depot operators The details of the two decisions
increased the depot gate charges can be found on MyCCs official
imposed on their customers from website at www.mycc.gov.my.
RM5 to RM25 and fixed a rebate of
RM5 to hauliers.
Spearheading Usage
of this study showed a strong
Standards Malaysia correlation between standards and
continued to champion of Standards

economic performance, indicating
that a 1% increase in standards will
increase GDP by 0.02% (for E&E),
adherence to standards champion
Standards Malaysia continued to
adherence to standards
0.26% (for F&B) and 0.06% (for
Agriculture).
and quality control and quality control nationwide,
advocating the usage of national
The study also showed that
standards have contributed to GDP
nationwide, advocating and international standards to
enable SMEs to gain a competitive
growth of 1.3% (for E&E), 4.6% (for
F&B) and 1.5% (for Agriculture). The
the usage of national advantage, especially on the global
stage and to enhance the awareness
outcome of the study will guide
Standards Malaysia on how best to
and international of the rakyat on the importance of
standards and quality.
promote the adoption of standards
among businesses, especially SMEs;
standards to enable During the year, it conducted
a study on the economic impact
and to provide evidence-based
policy advice to other Government
SMEs to gain a from the usage of standards for
the electrical and electronic (E&E),
agencies and regulators. This is
aimed ultimately at improving the
competitive advantage. food and beverages (F&B) and
agriculture sectors. The results
quality of products in line with
customer needs to increase sales
ZAHID ISMAIL,
DIRECTOR, PRODUCTIVITY AND COMPETITIVENESS DEVELOPMENT, MALAYSIA PRODUCTIVITY CORPORATION
For the past five years, we have been working with the vital to ensure Malaysia remains relevant in the O&G
Government, through the Competition, Standards and sector.
Liberalisation SRI, to reduce unnecessary regulatory Following this project, we have found that O&G
burdens within our business environment. companies face constraints in terms of permits related
During the year, among the projects undertaken to tariff codes. We are therefore working with the
by the Malaysia Productivity Corporation in this area Royal Malaysian Customs Department to eliminate this
were in reducing unnecessary regulatory burdens constraint.
(RURB) for oil and gas services equipment (OGSE) These efforts are vital to ensure we secure
Maintenance, Repair and Overhaul (MRO) companies investments from these O&G companies, as they may
to lower their operating costs. choose to expand their business to other countries
Many companies want to establish their business in instead. Additionally, the nature of the MRO industry
Malaysia, especially from Singapore as the cost of doing is that it is based on speed. Time is crucial. If we can
business in Singapore has been increasing, and they speed up the process, we can ensure we do not lose
want to set up their regional hub in Malaysia instead. out on potential investments.
This interest in establishing their hub in Malaysia is also Additionally, in terms of facilitating the ease of
due to the uniqueness of services that these companies doing business for foreign companies, one of the
can offer. However, some of the movement of goods to elements is meeting Government requirements. If the
Malaysia as well as from Malaysia is burdensome due Government cannot help foreign companies to improve
to the regulatory requirements, which exist on three their efficiency, they will go somewhere else. Through
levels of Government: Local, State and Federal. this initiative, we hope to better facilitate the entry of
Hence, we have been working with these companies foreign companies into Malaysia, with the ultimate aim
to identify these barriers to their business with an aim of driving economic growth for our country.
to remove those barriers. The RURB exercise is also

myGAP, has shown a CAGR of
40% and 45% in the number of
certifications for fruit and vegetable
farms and aquaculture, respectively,
since its inception in 2011. This can be
attributed to increased awareness,
market access and funding incentives
to farmers to upgrade facilities for
myGAP certification.
The myGAP has been harmonised
with ASEAN GAP and is now
recognised in various markets,
including Singapore which provides
green lane access for myGAP produce.
The demand for certification has also
increased, especially for swiftlet farms
due to requirements from China for
all imports of edible birds nests from
Malaysia to be sourced from myGAP-
Standards programme launched by Deputy Minister of MOSTI, YB Datuk certified farms. However, demand
Wira Diah, on 28 August 2016 in Melaka.
for certified produce remains low
in the domestic market, requiring
collaboration with hypermarkets
and enhance the competitiveness of of the public of different ages. and grocers to demand for certified
these businesses. Furthermore, in collaboration produce, step up enforcement and
Despite many challenges, with several agencies such as the raise awareness among consumers.
2016 marked another significant Malaysia External Trade Development Currently, MOA focuses on farms
achievement on standards adoption Corporation (MATRADE), the that volunteer for myGAP auditing
amongst the industries. More than Malaysian Investment Development as myGAP certification is currently
1,070 companies have been certified Authority (MIDA), and the Halal voluntary, with the certification
to various standards, an increase of Industry Development Corporation of farms left to the discretion of
10% as compared to the previous (HDC), the Ministry of Tourism and farmers. Fruit and vegetable farms
year, reflecting that industries have Culture (MOTAC), the Ministry of Local that are certified by the Department
recognised the significant impact Government and Housing, Sabah of Agriculture (DOA) comprise small
of embracing standards. To further (MLGH Sabah) and all Standards farms which account for only 3.4%,
increase standards adoption, Development Agencies (SDAs); 76 or 21,041 Ha, of the total farm land in
Standards Malaysia is also piloting jointly-organised seminars on relevant Malaysia. Hence, there is a need for
projects to require standards standards were held throughout the larger farms to apply for myGAP
compliance as a pre-requisite for Malaysia in 2016 to assist industries certification.
its vendors to create demand for in complying with standards. The In an effort to further enhance the
quality products and services through seminars were attended by 7,920 standards of agricultural produce,
Government procurement. participants. the MOA has also allocated funds
Apart from engaging with to assist farmers in upgrading their
Adding Value to
businesses, Standards Malaysia storage, sewage, collection, and
also undertook public outreach other facilities. Over 2,000 farmers
Agriculture Products
programmes to raise awareness benefited from this assistance,
and demand for quality products impacting 1,996 farms under the
among the public. These included the Department of Agriculture (DOA),
Standards Awareness Programme Overseen by the Ministry of 11 farms under the Department of
(Program Kesedaran Standard) in Agriculture and Agro-based Industry Veterinary Services (DVS) and 26
Malacca on 28 August 2016, which (MOA), the Malaysian version of the farms overseen by the Department
was attended by 1,000 members Good Agricultural Practice standard, of Fisheries (DOF). In addition
myOrganic with capacity-building

and guidance on compliance to the
standard.
Government
Drives Adoption
of Environmental
Standards
Malaysia has embarked on
sustainable development strategies
which will enable economic growth
myGAP-certified Asian seabass caged farm owner, Mohd Zain bin Daud,
without causing large scale damage
from Kelantan.
to the environment, as outlined
by the NTP and under the 11th
Malaysia Plan. The country has also
indicated its clear intention to be a
In an effort to further enhance the standards of front runner in the green economy.
In line with this, the Ministry of
agricultural produce, the MOA has also allocated Energy, Green Technology and
Water (KeTTHA) has committed
funds to assist farmers in upgrading their storage, to support the transformation of

industry towards environmentally-
sewage, collection, and other facilities. Over friendly ventures through green
technology. Its major initiatives
2,000 farmers benefited from this assistance. include GreenTech Malaysias

Green Procurement Flagship that
focuses on catalysing sustainable
consumption and production of
green technology products and
to funding, the departments certification of farms to be services among the public and
supported the MOAs efforts closed by early December 2016. private sectors. The Flagship
through engagement programmes Additionally, DOF has adopted a addresses public procurement
including 24 capacity-building cluster approach for certification of green technology through the
programmes by the DOA, awareness and stepped up efforts to identify Government Green Procurement
and promotion programmes by and certify farms in other states. (GGP) policy and initiatives and
the DOF in Peninsular Malaysias Other challenges seen during implementation of the MyHIJAU
northern, southern, central and the year include increasing farms Programme, including the MyHIJAU
eastern zones as well as in Sabah compliance with myOrganic. In Mark recognition for certified green/
and Sarawak and capacity-building 2016, only 15 new farms were eco-labelled products and services,
and awareness initiatives held by certified, largely due to the stringent MyHIJAU Directory and MyHIJAU
the DVS in 13 states. requirements. Many farms find it SME & Entrepreneur Development
A fire in Look Buton, Semporna, difficult to fulfil the requirements Programme.
Sabah destroyed a drying platform under myOrganic which includes a Under the development budget
which impacted 25 farms that were two-year conversion period before for 2016-2017, RM4.88 million has
earmarked for new certification. the farms can be considered for been allocated to create awareness
However, DOF has since repaired certification. The DOA will provide and develop capacity-building
the platform and this will allow farms that are identified for among the industry and SMEs

through the development of a green Bhd to certify the environmental environmentally-friendly goods.
technology industry programme attributes of green products and Hence, the expansion of GGP to all
and the implementation of GGP services; Ministries in 2017 through to 2020 is
in Malaysia. The year 2016 saw 12 targeted at creating greater demand
Ministries selected to implement
Energy-Efficiency Rating & and expanding product groups as
GGP, while all Ministries are expected Labelling Scheme by the well as increasing the involvement
to implement GGP by 2017. Energy Commission for energy- of more implementing agencies. The
The GGP initiative is targeted at efficiency labelling of electrical introduction of the Green Income Tax
raising the publics quality of life by appliances; and Allowance (GITA) and Green Income
promoting sustainable consumption, Tax Exemption (GITE) in the 2014
while creating a new avenue for
Water-Efficient Products Labelling budget should further encourage
growth for Malaysian businesses. Scheme by the National Water demand for the MyHIJAU Mark-
It is also seen to add value to local Services Commission or SPAN. certified products and services. GITA
products and services, enhancing and GITE were announced by the
the ability of businesses to penetrate As is the case in the rest of YAB Prime Minister during the 2014
global markets that impose strict the world, the green initiative Budget Speech on 25 October 2013.
environmental standards. has faced difficulty in gaining GITA is granted to companies
With GGP, Malaysia joins the support from industry to produce on a project basis as an incentive
ranks of at least 43 other countries
that now have public institutions
adopting Sustainable Public
Procurement/Government
Procurement/GGP policies or policy
Public
Malaysia has embarked on sustainable
development strategies which will enable
measures.
The eco-labelling initiative is
complementary to GGP, helping
GGP implementers decide on which economic growth without causing large scale
products are greener. Eco-labels
identify goods and services that damage to the environment, as outlined by the
are more environmentally-friendly
throughout their life cycle from start NTP and under the 11th Malaysia Plan.
to finish. At present, there are several
eco-labels that have been introduced
around the globe. For example,
the European Union has the EU
Ecolabel, Hong Kong has the Green
Label, and Australia has The Good
Environmental Choice Australia.
Malaysias eco-label falls under the
MyHIJAU Programme, which aims
to encourage the application of
green technology and the adoption
of more environmentally-friendly
practices among businesses.
The following certification bodies
have been recognised under the
MyHIJAU Mark in Malaysia to provide
environmentally-friendly certification
schemes:
SIRIM Eco Labelling Scheme (Type MYOrganic-certified oyster mushroom farm in Semenyih, Selangor.
1) by SIRIM QAS International Sdn
for investments in green technology 5,000 set in 2011. on a voluntary basis and is non-
for capital expenditure incurred for KeTTHA, through GreenTech chargeable. Since 2014, MOH has
business purposes and where such Malaysia, developed the MyHIJAU collaborated with the Ministry of
investment is expected to derive SME and Entrepreneurship Domestic Trade, Co-operatives
green results. This is targeted to programme to facilitate and and Consumerism (KPDNKK) for
encourage companies to acquire encourage more producers, Kedai Rakyat 1Malaysia (KR1M); the
assets (products, equipment and manufacturers, suppliers and service Ministry of Plantation Industries
systems) which have been verified providers towards providing greener and Commodities (MPIC) for oil
as green technology assets. GITE products and services. As of October repackers and refineries and the
is given to qualifying companies 2016, 145 companies and businesses Prisons Department to increase the
providing green technology have participated in the business number of premises certified with
services and systems which have clinic and advisory session activities MeSTI.
been verified by Malaysian Green and 92 companies and businesses As a result, 98% of KR1M
Technology Corporation (GreenTech have been recognised under the suppliers premises, 71% of oil
Malaysia). Other initiatives include Green Transformation initiatives. repackers and oil refineries that are
engaging with identified agencies registered with MPIC as well as 14 out
Spearheading Food
that provide Environmental of 18 the food processing premises in
Certification Schemes under the prisons across Malaysia are certified
Safety
MyHIJAU Programme and the to a FSAP. MOH has also intensified
implementation and enforcement of its joint awareness campaigns with
the Minimum Energy Performance other agencies such as the Fisheries
Standards (MEPS). In 2012, the Ministry of Health Development Authority of Malaysia
In 2016, 1,958 local products have (MOH) has introduced Makanan (LKIM), Department of Fisheries
been recognised as green products Selamat Tanggungjawab Industri (DOF), Department of Agriculture
under the MyHIJAU Programme, (MeSTI), a food safety assurance (DOA) and NGOs on the importance
including air conditioners, televisions, certification programme which of FSAP to ensure food safety and
refrigerators and consumer products aims to ensure food manufacturing market access.
such as biodegradable detergent, premises, especially those owned by MOH has also certified 40% of
representing an additional 519 SMEs, implement and maintain the food manufacturing premises that
products from 2015. As of 2016, Food Safety Assurance Programme are registered under the Food Safety
13,000 products have been (FSAP), which includes food Information System of Malaysia
recognised under the MyHIJAU hygiene and process control. MeSTI (FOSIM Domestic), while enhancing
Programme, against the target of certification is currently performed enforcement of the Food Act 1983
and its regulations to increase the
number of food manufacturing
premises implementing FSAP such
as MeSTI. The number of food
MOH has collaborated with the Ministry of manufacturing premises certified
with MeSTI certification have
Domestic Trade, Co-operatives and Consumerism increased every year, totalling 3,133
since 2012, while certification for
(KPDNKK) for Kedai Rakyat 1Malaysia (KR1M); the food product establishments has
shown a growth of 40% during the
Ministry of Plantation Industries and Commodities same period.
In order to increase the number
(MPIC) for oil repackers and refineries and the of food manufacturing premises
implementing FSAP, MOH also
Prisons Department to increase the number of collaborated with five
hypermarkets in Malaysia such as
major
premises certified with MeSTI. Aeon Co, Aeon Big, Giant, Mydin and
Tesco on the Sustainable Supplier
Development Programme (SSDP),

which saw the participation of 11 with local authorities to require
food suppliers and 11 students from MeSTI certification as a condition for
University Putra Malaysia (UPM). the issuance of business licenses for MeSTI is now
The initiative aims to improve food food manufacturing premises. MeSTI
safety along the supply chain certification should also be made a recognised by
through public-private partnerships, pre-requisite in the supply of food
strengthened market access locally and beverages under Government Singapore and green-
and internationally and capacity- contracts.
building.
As a result of this initiative,
Despite the success achieved by
MeSTI, there remain some challenges
lane access is given
all of the SMEs moved towards
compliance with FSAPs such
in sustaining MeSTI certified premises
due to MOHs limited resources in
for MeSTI certified
as MeSTI, Good Manufacturing
Practices (GMP) or Hazard Analysis
terms of both budget and manpower
to carry out verification activities.
products i.e. ready to
Critical Control Points (HACCP).
Meanwhile, the students received
Furthermore, verification of food
manufacturing premises for MeSTI
eat food (RTE) such as
training based on SSDP Modules and
were guided to develop FSAPs in
compliance is not only confined
to new applicants, but also for
nasi lemak, sandwiches
food supplier premises under a six-
month internship programme. They
renewals, and regular monitoring for
compliance. Since the introduction
and kuih bulan.
also received mentoring from the of MeSTI in 2012, only 43.2% of
retailers, with 67% of the students
offered employment upon their
completion of the programme.
Besides SSDP, MOH also
collaborated with UPM under the
Smart Partnership Programme,
which provided internship students
with training on MeSTI modules by
MOH. The students also assisted
food manufacturing premises to
develop FSAP for MeSTI certification.
Fourteen food manufacturing
premises were involved in the six-
month programme, which saw 42%
of premises certified with MeSTI.
The remaining premises are in the
process of corrective action and
being upgraded.
MeSTI is now recognised by
Singapore and green-lane access is
given for MeSTI certified products
i.e. Ready To Eat food (RTE) such
as nasi lemak, sandwiches and kuih
bulan. In addition, MOH has required
exporters to be part of an FSAP
such as MeSTI before issuance of
Health Certificates and Free Sales
Certificates.
In order to increase the number
of food premises participating in this myGAP-certified pineapple farm at Taman Kekal
Pengeluaran Malaysia in Lepau, Johor.
scheme, there is a need to collaborate
food manufacturing premises have which attracted about 50 e-market

renewed their certifications. players such as e-Lelong, Lazada,
mudah.my and 11Street. Of these,
Malaysia Productivity
Keeping Malaysia
20 were local e-market players and
logistics providers and 30 were from
Corporation has been
Open for Business
ASEAN, China, Hong Kong, Korea,
tasked to evaluate
Sri Lanka and Bangladesh. The
workshop aimed to help merchants
Malaysia has autonomously sell regionally, as well as assist both
liberalised 45 sub-services sectors. local and foreign e-marketplace domestic regulations
Of these, 27 sub-sectors were players to coordinate assistance
announced in 2009 while another to their respective merchants to and ensure the
18 sub-sectors were announced in improve regional sales.
2012. The amendments to relevant Meanwhile, Outsourcing Malaysia regulations support
Acts for the liberalisation of 15 sub- (OM) gathered buyers from
sectors were completed in 2013, with
the remaining three sub-sectors,
Singapore and sellers from Malaysia
in Singapore for a Structured B2B
the opening of the
architectural services (Architect
Act 1967), engineering services
Networking Session in December
2016. The objectives of this session
market and the
(Engineering Act 1967) and quantity
surveying services (Quantity
were to create a platform for local
players to attain a wider market
creation of a conducive
Surveyor Act 1967) approved by
Parliament in December 2014.
outreach and grow their customer
database, build greater awareness on
business environment.
To deliver the full benefits their brand and services and unlock
of liberalisation, the Malaysia the opportunities in a new market,
Productivity Corporation (MPC), an and assess in real-time its return on
agency under MITI, has been tasked investment (ROI). The networking
to evaluate domestic regulations session attracted 20 qualified buyer
and ensure the regulations support companies from Singapore and 15-
the opening of the market and the 20 OM member companies.
creation of a conducive business OM also held the Smart Sourcing
environment. Since 2014, MPC has Summit 2016, a business-to-business
reviewed and recommended the (B2B) session. This Summit aimed
removal of various regulations for the to grow and nurture domestic
education, healthcare, professional outsourcing players in line with
services, construction industries and the Business Services NKEA by
ICT sectors. facilitating their growth through
MITI has also been continuously various programmes and initiatives,
involved in developing the one of which is market access.
competitiveness of domestic During the Summit, OM organised
industries. On 10 June 2016, the several structured B2B meetings
Minister of International Trade and for local industry players to meet
Industry launched the National with prospective regional and
E-Commerce Strategic Roadmap, international clients.
which has as two of its six thrusts The direct beneficiaries of these
the lifting of non-tariff barriers and two initiatives were the Malaysian
the promotion of the national brand service providers under OMs
to boost cross-border e-commerce. Membership umbrella, which were
The National ICT Association of provided a platform to reach a wider
Malaysia (PIKOM) subsequently market to grow their customer base
held a Cross-Border E-Commerce and bring greater awareness to their
Workshop on September 2016, brand services.

MOVING FORWARD
MyCC will remain focused on growth to meet Malaysias goal of
raising awareness with stakeholders becoming a developed nation by
in both the private and public sectors, 2020 as well as achieve Malaysias
as well as educating them about commitment of reducing its carbon
the implications of bid rigging and intensity by up to 45% from 2005
enforcing CA 2010, especially in levels by 2030 in line with the countrys
cases involving enterprises with large pledge at the 21st Conference of the
impact on consumers. MyCC will also Parties (COP 21).
need to build additional capacity and Under the MeSTI programme,
pursue knowledge and expertise in MOH and myGAP, MoA will continue
competition law through networking to increase the awareness in the
efforts, especially with the Ministry domestic market for certified
of Finance, the National Audit produce. Efforts will be stepped up to
Department and the Malaysian Anti- ensure all suppliers to hypermarkets
Corruption Commission. have their products certified.
In terms of standards promotion In terms of sector liberalisation,
and compliance, Standards Malaysia the Malaysia Productivity Corporation
will work with relevant Ministries and (MPC) will be undertaking a case
Agencies to ensure that certification study to identify the best solution
and standards compliance are made to reduce unnecessary regulatory
mandatory for companies to be burdens on Oil and Gas Services
eligible for schemes and incentives Equipment (OGSE) Maintenance,
from Ministry/agencies. The GPP will Repair and Overhaul (MRO)
also be expanded to more products companies to lower their operating
to increase demand for standards cost. Due to prevailing economic
compliance. Standards Malaysia conditions, large companies such as
will continuously ensure that the Schlumberger, Kencana Petroleum
number of testing facilities (for and Baker Hughes are experiencing
identified industries e.g. automotive, challenges from the MRO price
E&E, construction and consumer hike, which then affects their SME
goods) and Certifying Bodies will be contractors. The results of the case
increased. study will be used by MPC to replicate
Moving forward, KeTTHA will the model for MRO in aircraft and
continue its efforts to integrate automotive, in line with the aspiration
sustainability and socioeconomic to establish MRO hubs in Malaysia.
NARROWING DISPARITY
DATUK SERI ABDUL
Charting RAHMAN DAHLAN

Minister in The Prime Ministers
Department
the Course
for
The success of a nation is only sustainable
when all its people share equally in the prosperity
of that nation: hence, the Narrowing Disparity
SRI was conceived to narrow the income gap,
Inclusiveness
especially between the Bumiputera and other
ethnic groups in the nation. This SRI operates
with the understanding that the empowerment
of the Bumiputera community is an essential part
of the national agenda for inclusive prosperity
and success. Therefore, many agencies have
come forth to provide facilities that cover various
aspects of support for the Bumiputera, such as
financial aid, capacity and capability development,
infrastructure, social development and many other
aspects.
We are still in the journey to narrow the
economic gap between Bumiputera and non-
Bumiputera, and a great deal of investments have
been put towards this effort. Bumiputera economic
empowerment efforts should not only be left to
Government agencies, but also by the community
as a whole. Thus, I hope that the beneficiaries of the
programmes carried out by the Government that
have achieved success in their respective fields will
continue to play a role in helping the Bumiputera by
creating job and business opportunities, developing
supply chains, catalysing talent development,
training and consulting, providing financial aid
through the form of sponsorships or education
scholarships in addition to sharing knowledge and
experience to those who are just starting their
transformational journey.
The Bumiputera Empowerment Agenda is one
of the Governments main focus areas and the
Government remains committed to shouldering this
responsibility. However, the greater responsibility
placed on Government agencies that support this
initiative is to ensure that every programme carried
out in line with this effort will create Bumiputera
entrepreneurs that will continue to be competitive
and successful in local and international markets.
Further, I truly hope that those who have succeeded
will give back for the wellbeing of the nation.
NARROWING DISPARITY
YAB Prime Minister Dato Sri Najib Razak chairs a Bumiputera Economic Council meeting
OVERVIEW
The Narrowing Disparity SRI The initiatives under this SRI is able to be achieved, thus further
(ND SRI) was formed to improve spearheaded by Unit Peneraju strengthening the core of
Bumiputera representation in Agenda Bumiputera (TERAJU), a Bumiputera entrepreneurship and
market equity, employment, high unit established in 2011 specifically business activities in the country.
value-added occupations and to lead, coordinate and drive As of 2016, the efforts by
management positions. It aims to Bumiputera economic participation TERAJU have succeeded in
help Bumiputera companies develop in parallel with the National creating jobs, providing financial
and enhance capacity, and improve Transformation Programme. aid, developing human capital,
competitiveness, besides reducing TERAJU is committed to ensure attracting private investment and
reliance on Government contracts. that Bumiputera entrepreneurs creating value worth of RM94.31
To realise the objective of remain relevant and competitive, billion. These achievements are a
this SRI, policy measures were as emphasised by the YAB Prime result of the collaboration between
proposed to construct Bumiputera Minister. various Ministries, the private sector,
transformation programmes in order TERAJU is the backbone of the Government agencies and the
for the Bumiputera economy to be Bumiputera Economic Empowerment Economic Corridor Authorities.
market-friendly and transparent. Agenda and coordinates all
Five areas for game-changing efforts under this agenda,
development of the Bumiputera which involves 25 Bumiputera
economy were brought into focus Economic Empowerment units
education, employment, income in all government agencies.
levels, wealth creation and the Provided the support from the
overall performance of Bumiputera Bumiputera Economic Council,
companies. 94 Bumiputera-related KPIs are
NARROWING DISPARITY
ENTREPRENEURS OBSESSION FOR SUCCESS

WATERBAY SDN BHD
TERAJU has not only

helped us in terms
of funding but also
provided us guidance
and support in terms of
skills and opportunity
to expand our network
with other agencies.
TERAJU has not only helped us in

terms of funding but also provided us
Mohd Azhan Ahmad guidance and support in terms of skills
Pulau Pinang and opportunity to expand our network
41 with other agencies.
The opportunity to win the SUPERB
His passion for entrepreneurship I had fully devoted my life and grant was not easy, because I had to try
drove Mohd Azhan Ahmad from Pulau energy into creating Stuhl until I lost four times to convince TERAJU panels
Pinang to venture into business at the focus on my core business; I even used about my obsession. Alhamdulillah,
young age of 25, running a variety of the companys profits for the chair without giving up, I made it to the finals
businesses before starting Waterbay creation. Fortunately I became aware and won the grant at the fifth attempt,
Sdn. Bhd., a dentistry supplier. of it and instead, I strived to increase he says.
After 16 years in the business, he can the companys sales by setting aside a Mohd Azhan feels proud as his
now savour his success with his products budget for research and development obsession has led to the successful
having gained the trust of companies (R&D), he continues. creation of the automatic mobile
including the Ministry of Health Malaysia Winning the SUPERB grant enabled treatment chair that enables blood
(Dental Division). him to increase his R&D team and donation programmes and outdoor
Yet he continues to awe his expand the companys engineering dental treatment clinics or hospitals to
employees with his obsession for the sector by increasing the employment be done comfortably.
business. My obsession began when of engineers and designers who excel in We aim to be innovators that
I was working with a private company their relative field. cater to high-tech medical or dentistry
that markets various dental products With the help of the SUPERB grant, products not only in Malaysia but also
including mobile treatment chairs that we successfully created Stuhl 2.0, the internationally, he adds.
are widely used in clinics and rural first automatic mobile treatment chair According to Mohd Azhan, to be a
schools. I had the idea to create an in Malaysia. We created Stuhl with a successful entrepreneur, one has to have
automatic mobile treatment chair or more ergonomic design, compact, high compassion, determination, persistence
Stuhl after noticing two persons are quality and user friendly, whilst giving and hard work to confront the challenges
needed to assemble that mobile chair us the confidence to try and market our of the business world.
and it took a long time to build, he says. products globally, says Mohd Azhan.
NARROWING DISPARITY
LEADING YOUTHS TO BRIGHTER FUTURES
Auni Wadhiah Azahar Winnie Kariza Bakri Fikri Izzan Kip

Kuala Terengganu Tawau, Sabah Kuching, Sarawak
15 25 19
Auni Wadhiah Azahar, 15 years old, is Winnie Kariza Bakri, 25 years old, is Fikri Izzan Kip, 19 years old, is from
from Kuala Terengganu, Terengganu. Her from Tawau, Sabah. She is the eldest of Kuching, Sarawak. He is the fourth of
parents are divorced, and Auni currently five siblings. Her father is a retiree with five siblings. His father is a research
lives with her mother, who works as a an income of RM1,000 a month, while assistant in MARDI while his mother
dressmaker, with a monthly salary of her mother is a full-time housewife. is a housewife. As a young boy, Fikri
RM700. She is the youngest of three Although her initial ambition was to harboured aspirations of becoming
siblings, all of which are still studying. become a doctor, her average SPM an aerospace engineer. Fikri was first
Despite familial and financial challenges, results had led her towards the STPM inducted as a Yayasan Peneraju scholar
Auni had obtained straight As in her pathway to obtain placement in public under the Peneraju Juruteknik Pesawat
UPSR examinations. Shortly after, Auni tertiary education. From there, Winnie Berlesen programme in June 2016.
became a Yayasan Peneraju Pendidikan began slowing realising her potential, Due to his determination, consistent
Bumiputera (Yayasan Peneraju) successfully balancing her studies and performance and passion, Fikri had been
scholar under the Peneraju Tunas her curriculum activities. With an STPM promoted into the Peneraju Jurutera
Geliga programme, and continued her CGPA result of 4.0, Winnie was accepted Pesawat Berlesen programme in January
secondary education in SMKA Dato Haji as a Peneraju Tunas Potensi scholar, 2017. Now Fikri is more determined than
Abbas in Kuala Terengganu, Terengganu. and continued her studies in Universiti ever to achieve his dream of becoming a
The conducive studying environment, Kebangsaan Malaysia (UKM) in 2012. licensed aircraft engineer.
as well as nurturing, development and Through Yayasan Penerajus continuous
financial support from Yayasan Peneraju, development, as well as financial
had enabled Auni to strengthen her support, Winnie continued to excel in
academic performance. In 2016, Auni her studies. In 2016, she graduated with
obtained 11 As for PT3 examinations. She a first class honours in Bachelor of Social
is currently in Form Four. Science (Hons) Geography, with a CGPA
of 3.77. In February 2017, she completed
her Masters post-graduate degree in
Environmental Management. Winnie is
now working as a Grade 41 officer with
the Ministry of Women, Family and
Community Development.
NARROWING DISPARITY
Providing a Springboard
Since its launch in August
2011, TERAJUs drive in enhancing
for Growth
Bumiputera private investment
reflects in the funds allocated
amounting to RM2 billion, which has
In the endeavour to help the seen the completion of 447 projects
Bumiputera in capacity building with RM12.8 billion total investments.
and global expansion, TERAJU has Currently 399 Bumiputera companies
introduced the Dana Mudahcara have benefited from the Facilitation
(Facilitation Fund), a facility Fund by TERAJU.
399 Bumiputera established to be a tipping point

in the initiative to attract private
Since its inception, TERAJU
has provided various business
companies have investments. One of the main

objectives of the Facilitation Fund is to
opportunities for Bumiputera
companies with the introduction of a
benefited from the

narrow the gap in private investments wide range of incentives for all types
for Bumiputeras, besides functioning of companies, from start-ups to SMEs
as an incentive by the government and potential listing in Bursa Malaysia.
Facilitation Fund by to include Bumiputera companies in
projects and programmes in order to
One specific initiative to increase
the participation of Bumiputera
TERAJU increase their investments in capacity
development projects, especially
companies in mega projects involving
the Government and private sectors
within high impact NKEA sectors. and GLCs is the Carve Out and
Datuk Seri Abdul Rahman Dahlan with Yayasan Peneraju Scholars

NARROWING DISPARITY
INSKEN Participants.
Unleashing Bumiputera
Compete programme. This initiative is Financing Programme to Leapfrog
parallel with TERAJUs role to aid the Bumiputera Businesses in Retail
Talent
expansion of Bumiputera companies, and Distributive Trade, Bumiputera
based on six principles laid out Entrepreneurs Startup Scheme
under the Bumiputera Economic (SUPERB), Bumiputera Export
Transformation Programme; market- Business Programme, Tunas In line with one of the thrusts of
friendly, needs-based, merits-based, Usahawan Belia Bumiputera the 11th Malaysia Plan to increase the
transparent, pro-development and Programme, Bumiputera Entrepreneur number of high skilled professionals
sustainable. Development Fund (Sabah, among Bumiputera in order to raise
Among the projects included in Sarawak, ECER, IRDA, NCIA), Dana their employability and income-
this programme are MRT Line 1 and Pembangunan Usahawan Bersama earning potential, various platforms
Line 2 by MRT Corp, Menara Warisan NGO and the National Institute of have been made available for
Merdeka by PNB, Asia Aerospace Entrepreneurship (INSKEN). Bumiputera to enhance their skills
City by MARA, and the Pan Borneo The Bumiputera Entrepreneurs and capabilities.
Sarawak Highway by Lebuhraya Startup Scheme (SUPERB) has Yayasan Peneraju Pendidikan
Borneo Utara Sdn Bhd. The total shown outstanding results and has Bumiputera (YPPB) was established
value of these projects amount to an helped develop many new successful to reinforce capacity-building
impressive RM45.54 billion. entrepreneurs. Since the introduction among Bumiputera wholly and
TERAJU has introduced various of the scheme, a total of 101 new, sustainably. Through YPPB, short-
schemes to financially support creative and innovative entrepreneurs term and long-term intervention
Bumiputera companies, among have received start-up grants of up programmes are developed to
them are the Teras Fund, Bumiputera to RM500,000. Funds amounting realise YPPBs aspiration in its drive
SME Equity Financing Programme, to RM100 million has been utilised to improve the quality, quantity and
Bumiputera Technology Fund, in the effort to support these new effectiveness of Bumiputera talents.
High Performing and Enhancement entrepreneurs in strategic sectors
Cooperatives Programme, Facilitation that have great future potential.
NARROWING DISPARITY
SUPERB Participants
This is in line with the Governments Following the rapid expansion

effort to develop Malaysia into of the Bumiputera economy and
A total of 101 new, a highly-skilled nation through the existence of a large number of
education, and professional and new Bumiputera entrepreneurs,
creative and innovative vocational certification. the management of programmes
entrepreneurs have Programmes offered

YPPB include Peneraju Tunas,
under and activities in relation to the
development and training of
received start-up grants Peneraju Skil, Peneraju Profesional

dan Skim Latihan Pendidikan
entrepreneurs has to be done
systematically and efficiently.
of up to RM500,000. 1Malaysia (SPP1M). As of September
2016, a total of 10,325 individuals
Thus, the National Institute of
Entrepreneurship (INSKEN) was
have been awarded sponsorships established to regulate the
by YPPB. Under Peneraju Tunas, management of Bumiputera
2,356 primary and secondary school entrepreneur development and to
students from low-income families date, a total of RM15 million has
and those that live in challenging been spent for programmes under
environments have received the purview of INSKEN.
financial aid from TERAJU. Under The main function of INSKEN
Peneraju Skil, 5,965 individuals have is to assess the effectiveness of
been provided upskilling training policies and carry out initiatives
up to industry and international to strengthen the efforts of
certification levels. The remaining Bumiputera entrepreneurs through
2,004 scholarship-holders under collaborations with Government
YPPB comprise of individuals agencies and institutions as well
that have been funded to obtain as relevant local and international
professional certification in the organisations. INSKEN also aids
fields of accounting and finance. in capacity development planning
and execution among Bumiputera
entrepreneurs to ensure that all
initiatives that are carried out are of
a high standard of quality, effective
and successful in implementation.
NARROWING DISPARITY
In 2017, TERAJU will launch
the Bumiputera Economic
Transformation Roadmap 2.0, with
a comprehensive review of the
transformation work over the past
five years, and a clear way forward
for the next phase of the Bumiputera
economic transformation effort.
With close partnership and support
from all Ministries and Agencies,
TERAJU will continue to drive its
mandate to promote greater socio-
economic inclusiveness, in line with
the aspiration of the NTP.
SRI: PUBLIC FINANCE REFORM
DATUK SERI JOHARI BIN

ABDUL GHANI
Minister of Finance II
The Public Finance Reform Strategic Reform

Initiative (SRI) was designed in early 2011 to implement
public finance-related policies recommended by the
National Economic Advisory Council (NEAC) in the
New Economic Model (NEM). The main objective was
to strengthen Malaysias fiscal position that had been
weakened following the 1998 Asian Financial Crisis.
Over the period of the last seven years, the
Government has gradually reduced its fiscal deficit
as a percentage of GDP from 6.7% in 2009 to 3.1% in
2016. Based on this trajectory, the Government remains
on firm footing to achieve its target of a near balanced
budget in 2020.
A number of initiatives have been implemented to
achieve this, including strengthening tax administration
and compliance by both the tax agencies of the
Ministry of Finance, namely the Inland Revenue Board
of Malaysia (IRBM) and the Royal Malaysian Customs
Department (RMCD). With IRBM focusing on direct tax
revenue and RMCD on indirect tax, these agencies have
never failed to produce desired results in improving tax
administration and compliance.
On an annual average, IRBM managed to collect
RM2 billion and RMCD more than RM150 million through
implementation of initiatives these agencies designed
Building
during the Public Finance Reform SRI lab. These figures
are additional to their usual collection target.
Also as part of initiatives under this SRI, and our
Resilience and
effort to ensure long-term sustainability and stability of
Malaysias economy, the Government made the difficult
decision to introduce the Goods and Services Tax
(GST), a broad-based tax which replaced the two other
Sustainability
consumption taxes, the Sales Tax and the Service Tax
(SST). The GST was introduced in 2015 following long-
drawn-out discussions among policy makers since the
through Fiscal
mid-1980s.
While the GST is implemented on a broader range
of goods and services compared to the SST, at a rate of
Reform
6%, it was introduced at a lower quantum than that of
the Sales Tax (10%) and Service Tax (6%). It also remains
the lowest rate among the eight ASEAN countries which
has implemented the GST.
In addition to strengthening our fiscal condition,
the GST has allowed us to address loopholes in the
SRI: PUBLIC FINANCE REFORM

Sales Tax and Service Tax as well as
introduce a safety net for the public,
which did not exist in the previous
tax regime, through a list of essential
goods and services which are
exempted from GST. These include
healthcare, education and child care.
Furthermore, certain goods and
services such as basic household
essentials, while not GST-exempt,
are subject to a 0% rate of GST. In
effect, consumers are not charged
GST on these zero-rated goods and
services.
The improvements in tax
administration and compliance and
the introduction of the GST have
allowed us to cushion the effect
of low oil prices which have been
affecting the global economy and
impacting the Governments revenue
collection. At the same time, the
initiatives enabled the Government
to reduce our reliance on oil-based
revenue from 41.3% of revenue in
Essential goods and services are exempted from GST as a safety net measure.
2009 to an estimated 14.6% in 2016.
This indicates a more streamlined
revenue collection system with a
set of more efficient taxes as well
as more diversified and broader
revenue base. The initiatives enabled the Government to reduce
On the expenditure side, the
Government remains committed to our reliance on oil-based revenue from 41.3% of
enhance spending efficiency and
effectiveness through optimatisation revenue in 2009 to an estimated 14.6% in 2016.
and reprioritisation measures. In this
regard, Government has undertaken
subsidy rationalisation measures
such as managed float fuel pricing addressing this through the Moving forward, the SRI for fiscal
mechanism as well as removal of implementation of Outcome-based reform will come entirely under the
sugar and flour subsidies. One Budgeting (OBB) which replaces purview of the Ministry of Finance,
direct result of these measures has the Modified Budgeting System. The in line with the transition of NTP
been the Governments ability to new system allows us to optimise initiatives from PEMANDU to the
introduce targeted, direct financial the outcome of expenditure and is civil service. With the achievements
aid through programmes such as in line with the Governments efforts of this SRI thus far and a clear plan
BR1M, which channels assistance to rationalise fiscal policy initiatives moving forward, which have enabled
to those truly in need such as the through better expenditure the Government and the economy
vulnerable and low-income groups. management, especially in ensuring to withstand global economic
Another policy initiative better results and value for money fluctuations, we are confident that
proposed through the NEM was through targeted programme the country remains on the right track
the strengthening of expenditure implementation and minimum to achieve high-income status as
control. The Government is redundancy of programmes. envisaged by the NEAC in the NEM.
EXPENDITURE 2016
EXPENDITURE
2016
In the interests of transparency and accountability, the following is the summary of expenditure for NKRA and SRI.
Meanwhile, the expenditure is not reported for the Economic Transformation Programme (ETP) as the ETP is private-
sector driven and contains market sensitive data.
NKRA AND SRI 2016 OE* SPENDING

National TRANSFORMATION PROGRAMME (NTP)
Achievement Total 2016 OE ALLOCATION Total Spent
NKRA % Spent
(%) (RM) (RM)
Fighting Corruption 79 942,740 658,028 70
Assuring Quality Education 90 18,000,000 17,987,751 100

Raising Living Standards of Low-Income Households 122 68,588,500 57,469,350 84
Total 87,531,240 76,115,129
Achievement Total 2016 OE ALLOCATION Total Spent

SRI % Spent
(%) (RM) (RM)
Competition, Standards and Liberalisation 103 1,000,000 717,379 70
Total 1,000,000 717,379
*OE refers to Operating Expenditure

Note: No 2016 OE allocaton for NKRA Addressing lost the Cost of Living, NKRA Improving Rural Development, NKRA Reducing Crime and NKRA Improving Urban Public Transportation
NKRA AND SRI 2016 DE* SPENDING

National TRANSFORMATION PROGRAMME (NTP)
Achievement Total 2016 DE ALLOCATION Total Spent
NKRA % Spent
(%) (RM) (RM)
Reducing Crime 118 45,000,000 44,350,000 99
Improving Urban Public Transportation 84 60,422,600 42,384,863 70
Improving Rural Development 114 2,552,460,300 2,378,930,886 93
Total 2,657,882,900 2,465,665,749
Achievement Total 2016 DE ALLOCATION Total Spent

SRI % Spent
(%) (RM) (RM)
Public Finance Reform 56 10,514,370 10,514,370 100
Total 10,514,370 10,514,370
*DE refers to Development Expenditure

Note: No 2016 DE allocation for NKRA Addressing the Cost of Living, NKRA Fighting Corruption, NKRA Raising Living Standards of Low-Income Households and Assuring Quality Education
EXPENDITURE BUDGET 2016

agreed upon
procedures By PWC
A core tenet of the National review reported results for the KPIs
Transformation Programme and projects announced. The AUP
(NTP) has been transparency is applied to a sample taken from
and accountability. In this Annual each KPI. It is then checked against
Report, the 2016 key performance guidelines and formulae developed
indicators for each National Key in the initial PEMANDU lab sessions,
Result Area (NKRA), National and prescribed by PEMANDU. Over
Key Economic Area (NKEA) and the course of this exercise, PwCs
Strategic Reform Initiatives (SRI) are findings highlighted a number
published in full, with achievements of exceptions on the samples
versus targets listed*. PEMANDU selected, which were subsequently
endeavored to ensure the scoring addressed and reflected in this
system is transparent and stringent. Annual Report. PwC confirmed that
Extensive rigour has been put the results reported for the selected
into confirming the collection samples in the Annual Report have
of data, tabulations of statistics, been validated according to the
and results are accurate. External Agreed-Upon-Procedures. PwC
validation is also key to effectively also identified opportunities to
evaluate the efficacy of the NTP. improve processes and the quality
To this end, PEMANDU engaged of information. PEMANDU, together
PricewaterhouseCoopers Malaysia with the relevant Ministries and
(PwC), an independent professional private sector stakeholders will be
services firm, to conduct a series taking positive prescriptive actions
of Agreed-Upon-Procedures to effect these improvements over
specific tests and procedures to the next 12 months.
*Exceptions were made where targets featured market-sensitive data. In such instances, this
information was kept confidential at the request of involved parties.
KEY PERFORMANCE 2016
NTP PERFORMANCE 2016

All three methods have been formulated to provide a pragmatic representationof the actual KPI numbers in
percentages. The overall NKRA/NKEA/SRI composite scoring is the average of all scores.

NKRA -ADDRESSING THE RISING COST OF LIVING
KPI Target Actual Method 1 Method 2 Method 3
(FY) (YTD) % % %
Direct handout to the Rakyat through BR1M 100% 100% 100% 100% 100%
TOTAL 100% 100% 100%
NKRA - FIGHTING CORRUPTION

(FY) (YTD) % % %
Transparency International (TI) - Corruption Perception Index (CPI) score 55 49 89% 89% 0.5
Percentage of disposal of corruption cases within 1 year upon registration 85% 74.4% 88% 88% 0.5
Percentage of conviction rate for corruption cases 85% 79% 93% 93% 0.5
Tabling of AuG Report in every Parliament Session 2 2 100% 100% 1.0
Percentage of resolution of cases highlighted in AuG Report Series 1-3 2014 85% 96.6% 114% 100% 1.0
1 year after being tabled in Parliament
Percentage completion on insertion of corporate liability provision in MACC Act 80% 40% 50% 50% 0.0
Number of Corporate Integrity Pledge (CIP) signatories implementing prevention measures 60 23 38% 38% 0.0
Percentage of Public Private Partnership (PPP) projects to sign Integrity Pact 100% 100% 100% 100% 1.0
Political Financing Framework 100% 100% 100% 100% 1.0

i. Present to Cabinet - 33% (by 2016)
ii. AGC to prepapre Act - 66%
iii. Table to Parliament - 100%
Transparency International (TI)-Global Corruption Barometer (GCB) score 60 N/A 0% 0% 0%

(No Survey
Conducted)
Percentage of results of direct negotiation contracts published online, excluding Strategic and Security contracts 100% 100% 100% 100% 1.0
TOTAL 79% 78% 59%

NKRA - REDUCING CRIME

(FY) (YTD) % % %
Reduce Overall reported Index 5% 2.8% 56% 56% 0.5
Percentage improvement of Perception Crime Indicator 10% 23.8% 238% 100% 1.0
To roll out the Phase 1 of the Modern Policing project to the entire IPK KL 100% 117% 117% 100% 1.0
Percentage development of a Community Engagement Index 100% 125% 125% 100% 1.0
Number of PDRM Mobile Patrol Vehicles (MPVs) that are beyond lifespan replaced 500 0 0% 0% 0%
Percentage of Orang Kena Pengawasan (OKP) who attended treatment programme in the community 40% 60.2% 151% 100% 1.0
to maintain recovery for at least a year
Upskilling of Inmates: 100% 138% 138% 100% 1.0

i) Number of inmates undergoing certified skill training
ii) Percentage completion of a training facility for prisoners to learn new skills
Percentage of summonses issued by PDRM paid in 2016 under the category POL 257 30% 39.7% 132% 100% 1.0
TOTAL 118% 79% 79%


NKRA - EDUCATION
(FY) (YTD) % % %
Nationwide pre-school enrolment, including NGO (4+ and 5+ years only) 90% 85.6% 95% 95% 0.5
English literacy rate among Year 3 students 95% 94.8% 100% 100% 1.0
Percentage of Band 1 & 2 schools 37% 39.9% 108% 100% 1.0
Percentage of Band 6 & 7 schools 0.8% 2.0% 40% 40% 0.0
Percentage of teachers improved to at least minimum competency level through CPD 85% 85.8% 101% 100% 1.0
Percentage of principals improved to at least minimum competency level through CPD 85% 94.4% 111% 100% 1.0
Numeracy rate 100% 100% 99% 99% 0.5
Bahasa Melayu literacy rate 100% 98.6% 99% 99% 0.5
Percentage of teacher trained in the Pro-ELT programme that have increased by at least one proficiency 100% 92.3% 92% 92% 0.5
band in CEFR
New English teachers from IPG achieved C1 based on CEFR before posting 80% 64% 80% 80% 0.5
Percentage completion of initiatives under Phase 1 of IPG Transformation Roadmap Implementation Plan 35% 34.6% 99% 99% 0.5
2016-2017
The completion of survey on the percentage of secondary schools with functioning science laboratories 100% 100% 100% 100% 1.0
Percentage readiness of the new ministry restructuring operational plan 100% 30% 30% 30% 0.0
Number of students utilising VLE at least in 1 lesson session per week 1,000,000 1,517,371 152% 100% 1.0
National childcare enrolment rate (0-4) 15% 6.8% 45% 45% 0.0
TOTAL 90% 85% 60%

NKRA - RAISING LIVING STANDARD OF LOW INCOME HOUSEHOLDS

(FY) (YTD) % % %
Number of new participants in 1AZAM programme monitored at the minimum of 6 months after implementation 7,225 7,898 109% 100% 1.0
Number of new existing AZAM participants increased their income by RM300 - RM500 for any 3 months 8,600 10,225 119% 100% 1.0
Number of 1AZAM participants in Financial Literacy and Debt Management Programme 7,225 9,731 135% 100% 1.0
Number of 1AZAM project in collaboration with NGO and Corporate Sector 3 4 133% 100% 1.0
Number of 1AZAM community / group based programme 16 16 100% 100% 1.0

Beyond 1AZAM participants obtained minimum 50% increased in income from existing AZAM project 700 2,329 333% 100% 1.0
To ensure 100% updates in eKasih system 100% 100% 100% 100% 1.0
Develop B40 Entrepreneurs from Micro segment to Small Enterprise (SME category) 50 50 100% 100% 1.0
Adoption of Information and Communications Technology via registration among B40 participants via Orang-e 16,000 16,849 102% 100% 1.0
platform
Adoption of Information and Communications Technology via registration among B40 participants via eRezeki 2,050 2,222 108% 100% 1.0
platform
TOTAL 122% 91% 91%
NKRA - IMPROVING RURAL DEVELOPMENT

(FY) (YTD) % % %
Rural Development : Rural Basic Infrastructure
Roads Delivery (km length) 601.5 755.42 126% 100% 1.0

Water Delivery: Number of Households 3,000 4,429 148% 100% 1.0
Electricity Delivery: Number of Households 9,875 9,922 100% 100% 1.0
Housing: Number of HousesHousing: Number of Houses 11,223 12,133 108% 100% 1.0
Rural Development: 21st Century Village

Desa Lestari Programme: Number of Villages that successfully initiate business at least one (1) of the 20 20 100% 100% 1.0
approved economic projects that has been completed
Rural Business Challenge: 80.0% 82.6% 103% 100% 1.0

(b3) Percentage of 2014 RBC winners with more than 30% increase of incomes.
TOTAL 114% 100% 100%


NKRA - IMPROVING URBAN PUBLIC TRANSPORT
(FY) (YTD) % % %
Number of KL Budget Taxi Fleet - at par with ASEAN Best in Class 2,000 2,264 113% 100% 1.0

KL Monorail Expansion Project: LOA issuance to new contractor and completion of preliminary design 100% 70% 70% 70% 0.5
review
Bus Rapid Transit Corridor 1 (KL-Klang) project: Completion of tender evaluation by JTAS 100% 85% 85% 85% 0.5
Urban Public Transport Customer Satisfaction Level (GKL/KV) 85% 84% 99% 99% 0.5
AM Peak Urban Public Transport Ridership (GKL/KV) 500,000 435,439 87% 87% 0.5
KTM Komuter On Time Performance during AM Peak (within 10 minutes) 90% 96.9% 108% 100% 1.0
MOC approval on new CTSS concept / Dec 2016 100% 92% 92% 92% 0.5
Launching of Journey Planner App Dec 2016 100% 80% 80% 80% 0.5
Utilisation of PRASARANAs stage bus in GKL /KV 80% 82% 103% 100% 1.0
Total number of PRASARANA Stage Bus Captain in GKL 2,090 2,182 104% 100% 1.0
Completion of Integrated Cashless Payment System (ICPS) 60% 56% 93% 93% 0.5
Number of Bus Info Panel Installed in GKL/KV 3,000 1,300 43% 43% 0.0
Number of additional parking bays at Klang Valley Rail Network 1,530 1,547 101% 100% 1.0
Percentage of construction progress of Parkway Dropzone Facilities: 100% 71.7% 72% 72% 0.5
a) Dato Harun
b) Serdang
c) Batu Tiga
Percentage of completion of KTMB Ticketing System (AFC) 100% 99.6% 100% 100% 1.0
ITT Gombak Project: Site possession 100% 72.9% 73% 73% 0.5
TOTAL 84% 82% 62%

NKEA - AGRICULTURE
EPP
(FY) (YTD) % % %
AGRI EPP1: Unlocking value from Number of clinical trials to be conducted for nutraceutical and 10 10 100% 100% 1.0
Malaysias biodiversity through cosmeceuticals
herbal products
Total sale of herbal product (RM Million) 4.5 4.47 99% 99% 0.5
AGRI EPP2: Expanding the Total export of Edible Bird Nest product (MT) 200 381 191% 100% 1.0
production of swiftlet nests
AGRI EPP3: Venturing into Total production of Seaweed under Cluster and Mini Estate (MT) 2,000 1,742.20 87% 87% 0.5
commercial scale seaweed farming
in Sabah
AGRI EPP4: Farming through Total production of farmed fish by anchor companies (MT) 9,000 10,991.31 122% 100% 1.0
integrated cage aquaculture systems
AGRI EPP5: Cattle in Oil Palm estates Total cattle in population 56,500 41,536 74% 74% 0.5
AGRI EPP 6: Replicating integrated Total production of farmed shrimps (MT) 27,000 24,846.77 92% 92% 0.5
aquaculture model (iZAQs)
AGRI EPP7: Upgrading capabilities Total production from Taman Kekal Pengeluaran Makanan (TKPM) 60,000 63,347.06 106% 100% 1.0
to produce premium fruit and and anchor companies (MT)
vegetables
AGRI EPP8: Strengthening the export Total sales of anchor companies and Small and Medium Enter- 285 297.87 105% 100% 1.0
capability of the processed food prise (SME) (RM mil)
industry
Number of new Small and Medium Enterprise (SME) under 15 22 147% 100% 1.0
Anchor Companies (AC)
AGRI EPP9: Fragrant Rice for non- Total tonnage of fragrant rice produced (MT) 3,000 2,340.62 78% 78% 0.5
irrigated areas
Total area Planted (ha) 1,000 563.02 56% 56% 0.5
AGRI EPP10: Scaling up and Total production from amalgamated land (MT) 320,000 320,228.50 100% 100% 1.0
strengthening paddy farming in
Muda area Total land area amalgamated (Ha) 5,000 5,296.86 106% 100% 1.0
Total land acquisition (no. of lots) 8,790 9,038 103% 100% 1.0
AGRI EPP11: Scaling up and Total production from amalgamated land (MT) 140,000 178,110.28 127% 100% 1.0
strengthening of paddy farming in
other irrigated areas
AGRI EPP13: Establishing dairy Total fresh milk produced (mil litre) 23.5 14.96 64% 64% 0.5
clusters in Malaysia
AGRI EPP14: Seed Industry Total seeds produced (MT) 105 50 48% 48% 0.0
Development
AGRI EPP17: Pasar Komuniti Total sales from PAKAR (RM million) 77 83.57 109% 100% 1.0
TOTAL 101% 89% 76%


NKEA - BUSINESS SERVICES
EPP
(FY) (YTD) % % %
BS EPP1: Growing Aviation Revenue from MRO services (RM Mil) 4,000 5,600 140% 100% 1.0
Maintenance, Repair and Overhaul
Services
BS EPP2: Building globally- Overseas sales revenue (RM mil) 3,007 2,641.3 88% 88% 0.5
competitive outsourcers
Projected Investment Value (RM mil) 635 765.97 121% 100% 1.0
BS EPP3: Making Malaysia a Global Total DC services revenue (RM mil) 1,100 1,001 91% 91% 0.5
Data Center Hub
Percentage completion of site readiness for implementation of 100% 101.7% 102% 100% 1.0
Sedenak Iskandar Data Hub (SIDH)
BS EPP4: Jump-starting a vibrant Revenue generated from green technology subsectors e.g. 4,000 4,969 124% 100% 1.0
green technology industry Energy/Building/Transport/Waste/Water/Services (RM mil)
New investment in green technology realised (RM mil) 2,900 3,545 122% 100% 1.0
BS EPP 5: Growing Large Pure-Play Revenue from pure play engineering services companies (RM 100 87.82 88% 88% 0.5
Engineering Services mil)
BS EPP7: Making Malaysia The Hub Committed investments from OEM, Tier 1 and Tier 2 companies 1,000 1,600 160% 100% 1.0
For Aerospace OEMs In South East (RM mil)
Asia Leveraging On Asia Aerospace
City
BS EPP 8: Developing SMEs in the Number of SMEs certified (i.e. AS9100 or NADCAP) 10 8 80% 80% 0.5
Global Aerospace Manufacturing
Industry
TOTAL 112% 95% 80%
NKEA - COMMUNICATIONS CONTENT AND INFRASTRUCTURE

EPP
(FY) (YTD) % % %
CCI EPP1: My Creative Content Revenue of export from Creative Content (RM mil) 670 1,217.84 182% 100% 1.0
Total estimated production spending under the Film in Malaysia 100 86.8 87% 87% 0.5
Incentive (RM mil)
CCI EPP5: e-Healthcare Number of targeted Healthcare Facilities rolled-out with 500 515 103% 100% 1.0
e-Healthcare applications
CCI EPP6: e-Government Number of Agencies On-Board Digital Document Management 10 33 330% 100% 1.0
System 2.0 (DDMS 2.0)
Percentage increase from 2015 in number of online transactions 10% 11.6% 116% 100% 1.0
at Ministries
CCI EPP7: Broadband For All Number of ports providing highspeed broadband with the speed 150,000 168,664 112% 100% 1.0
up to 100Mbps in capital cities and major towns
Number of ports providing high speed broadband in sub-urban 133,000 127,546 96% 96% 0.5
areas (SUBB)
Percentage of access (coverage) to LTE wireless broadband 65% 63.9% 91% 91% 0.5
(% of connected population on LTE)
NKEA - COMMUNICATIONS CONTENT AND INFRASTRUCTURE (continued)

EPP
(FY) (YTD) % % %
CCI EPP8: Extend Reach Number of program sites commissioned 350 380 109% 100% 1.0
CCI EPP10: Regional Network Percentage of implementation of submarine cables (linking 30% 35% 117% 100% 1.0
Sabah, Sarawak, and Peninsular Malaysia) rollout
Percentage completion of Implementation of new international 50% 50% 100% 100% 1.0
submarine cable
TOTAL 131% 98% 86%
NKEA - ELECTRICAL AND ELECTRONICS

EPP
(FY) (YTD) % % %
E&E EPP1: Executing a Smart Number of advance analytical services provided to the industry 700 708 101% 100% 1.0
Follower Strategy for Mature
Technology Semiconductor Number of trained engineers and students in Failure Analysis 100 135 135% 100% 1.0
Fabrication Plants (FA), Material Analysis (MA) and Wafer Testing
Number of wafer testing services provided to local E&E 5 5 100% 100% 1.0
companies
Number of projects utilising metrology lab 30 31 103% 100% 1.0
EPP2: Developing assembly and Number of Advance Packaging companies in operation that 1 0 0% 0% 0.0
test using advanced packaging provide value added services to Advanced Packaging companies
technology
EPP3: Developing Integrated Circuit Number of jobs created from new Integrated Circuit (IC) design 50 0 0% 0% 0.0
Design Firms firms
Number of companies adopted Green Motion Controller (GMC) 2 2 100% 100% 1.0
products
EPP4: Supporting the growth of Number of supporting industry companies for susbtrate 1 0 0% 0% 0.0
substrate manufacturers and related manufacturers
industries
EPP 5: Silicon production Number of new silicon producer in production 1 0 0% 0% 0.0
EPP6: Growing wafer and cell Additional solar wafer or cell production in Malaysia (MW) 500 1,525 305% 100% 1.0
producers
EPP7: Increasing solar module Additional solar module production in Malaysia (MW) 500 1,420 284% 100% 1.0
producers
EPP8: Developing LED front-end Number of quality project approved for epitaxy manufacturer 1 1 100% 100% 1.0
operations
E&E EPP10: Creating local Solid State Total annual sales of local LED companies under SMECorp capacity 115 125.2 109% 100% 1.0
Lighting (SSL) champions building program (RM mil)
Number of new LED products internationally certified 30 38 127% 100% 1.0


NKEA - ELECTRICAL AND ELECTRONICS (continued)
EPP
(FY) (YTD) % % %
EPP11: Building a test and Number of new products to enhance Test & Mesurement local 4 4 100% 100% 1.0
measurement hub ecosystem
No. products tested utilising QAV test centre (both Penang & 48 48 100% 100% 1.0
Selangor)
EPP13: Growing automation Number of high impact project in operation for Automation 1 1 100% 100% 1.0
equipment manufacturing Equipment
Number of new automation projects undertaken by local 25 15 60% 60% 0.5

companies, agencies and institutes in system design, proto-
typing, proof-of-concept and system customisation at National
Instruments Academy and Innovation Nucleus (NI-AIN)
EPP16: Development of Balance of Number of Balance of Systems company in operation for Solar 1 0 0% 0% 0.0
Systems for Photovoltaic PV industry
EPP17: Growing Embeded Systems Number of new embedded systems projects approved under the 4 3 75% 75% 0.5
Industry Digital Malaysia Embedded Systems Funding Programme
Number of new embedded / IOT projects confirmed 2 2 100% 100% 1.0
EPP18: Enabling Electric Vehicle Percentage of completion of homologation test for Li-ion battery 100% 81% 81% 81% 0.5
Component Manufacturing (for electric and hybrid vehicles) to be ready for commercial
production
Percentage of completion of homologation test for EV bus to be 100% 88% 88% 88% 0.5
ready for commercial production
E&E EPP20: Enabling Number of companies adopting commercial graphene and 2 2 100% 100% 1.0
Nanotechnology for Electrical & nanotechnology products for E&E applications
Electronics (E&E) Industry
Total number of new quality NKEA E&E projects approved by MIDA 10 10 100% 100% 1.0
Percentage realised investment of E&E sector projects since 2011 80% 75% 94% 94% 0.5
till 2014 (RM bil)
EPP1-20: Cross Cutting Enablers Total approved investment for E&E sector (RM bil) 6.0 9.2 153% 100% 1.0
Number of R&D projects awarded by CREST 12 11 92% 92% 0.5

Number of R&D projects commercialized or implemented 3 3 100% 100% 1.0
Number of Eco Design application undertaken by companies/ 20 20 100% 100% 1.0

organisations utilising Eco Industrial Design Centre (EIDC) shared
facilities
TOTAL 97% 75% 70%

NKEA - EDUCATION
EPP
(FY) (YTD) % % %
EDU EPP1: Scaling up early child care Private pre-school enrolment, including NGO (4+ and 5+ years 473,397 439,543 93% 93% 0.5
and education centres only)
EDU EPP5: Scaling up private skills No. of SKM qualified students from private accredited centres 38,000 35,804 94% 94% 0.5
training provision
Number of students trained in industry based approach 6,000 9,367 156% 100% 1.0
Improving the knowledge and expertise for TVET instructors 10,000 13,923 139% 100% 1.0
EDU EPP7: Building an Islamic Number of students enrolled at HEIs in the Islamic finance and 17,000 15,606 92% 92% 0.5
finance and business education business programme
discipline cluster
Number of international academics who are members of ICIFE 150 145 97% 97% 0.5
EDU EPP10: Building a hospitality Number of students enrolled in private HLIs in cluster contact of 1,800 6,447 358% 100% 1.0
and tourism discipline cluster hospitality and tourism
Number of student enrolled at private HLIs in the hospitality and 26,000 18,982 73% 73% 0.5
tourism program
EDU EPP11: Lanching EduCity@ Number of students enrolled in EduCity @ Iskandar 5,000 4,478 90% 90% 0.5
Iskandar
EDU EPP12: Championing Malaysias Number of international students enrolled 160,000 172,886 108% 100% 1.0
international education brand
Number of post graduate international students enrolled in HLIs 35,000 30,598 87% 87% 0.5
EDU EPP14: Building a games Number of students enrolled in private HEIs with games cluster 500 344 69% 69% 0.5
development cluster contact
EDU EPP17: Building an accounting Number of students enrolled in Sunway TES collaboration with 1,020 850 83% 83% 0.5
cluster public HEIs programme
TOTAL 117% 91% 64%
NKEA - FINANCIAL SERVICES

KPI
EPP Target Actual Method 1 Method 2 Method 3
(FY) (YTD) % % %
FS EPP1: Revitalising Malaysias Increase velocity in the market 1.9 1.812 95% 95% 0.5
Equity Markets Average Daily Value (ADV) - (RM billion)
Increase in new issuance from both IPO and also secondary 11 15.33 139% 100% 1.0
market (new issue of shares from rights issue, special issue etc)
(RM billion)
Improve breadth and depth of product offerings 5 7 140% 100% 1.0

Number of new products and offerings
FS EPP2: Deepening and Broadening Registration of P2P platform operators 100% 100% 100% 100% 1.0
Bond Markets
FS EPP5: Insuring most, if not all, of Conversion of composite insurance and takaful licences under 100% 100% 100% 100% 1.0
our population the Financial Services Act 2013 and Islamic Financial Services Act
2013 [Phase 2]

NKEA - FINANCIAL SERVICES (continued)
EPP
(FY) (YTD) % % %
FS EPP10: Becoming the Indisputable Launch of Islamic Fund and Wealth Management Blueprint by 100% 99% 99% 99% 0.5
Global Hub for Islamic Finance 2H FY2016
Issuance of Professional Standards by Chartered Institute of 100% 100% 100% 100% 1.0
Islamic Finance Professionals (CIIF), as the professional body for
Islamic finance professionals
TOTAL 110% 99% 86%
NKEA - GREATER KL
EPP
(FY) (YTD) % % %
GKL EPP1: Attracting 100 of the Number of Letter of Intent or equivalent Incentive Offer concluded 13 13 100% 100% 1.0
worlds most dynamic firms within for MNCs to set up Regional Headquarters/Regional Hub activity
priority sectors in GKL
Number of new high skilled jobs committed / approved 600 1,862 310% 100% 1.0
Amount Spent by MNCs in 2016 (RM million) 550 1,130 205% 100% 1.0
Realized Annual Jobs (high skilled jobs on payroll) based on 350 540 154% 100% 1.0
committed / approved jobs for 2016
GKL EPP2: Attracting the right mix of Number of approved application under Returning Expert Program 800 398 50% 50% 0.0
internal and external talent
Percentage of issuance of Employment Pass Process within 5 80% 82% 103% 100% 1.0
working days

New JPA scholars under STAR Program 1,200 1,217 101% 100% 1.0
Number of approved applications under Residence Pass-talent 1,200 1,234 103% 100% 1.0
Program
GKL EPP3: Connecting KL to Formulation of Bilateral Committee TOR reviewed and finalized 100% 100% 100% 100% 1.0
Singapore via a High Speed Rail by SPAD
system
Regulatory Framework reviewed & finalized by SPAD 100% 100% 100% 100% 1.0
GKL EPP4: Mass Rapid Transit [KWP/ Percentage completion of trackwork Installation works 100% 100% 100% 100% 1.0
Innovation]
No. trains delivered and tested at Sungai Buloh Depot 50 52 104% 100% 1.0
Percentage completion of trial operations for Phase 1 100% 100% 100% 100% 1.0
Accident frequency Rate Ratio 1.5 1.0 100% 100% 1.0
11 Packages to be awarded as per planned by end 2016 100% 127.3% 127% 100% 1.0
NKEA - GREATER KL
EPP Target Actual Method 1 Method 2 Method 3
(FY) (YTD) % % %
GKL EPP5: Revitalising the Percentage completion of Sewerage Treatment Plant in Bunus 60% 66% 111% 100% 1.0
Klang River into a Heritage and
Commercial Centre for Greater KL/KV Percentage completion of Sewerage Treatment Plant in Jinjang 11% 11.1% 101% 100% 1.0
Kepong
Water quality results from 2 selected water quality monitoring 100% 100% 100% 100% 1.0
stations meet WQI 60 (Class III)
i) Sungai Gombak (IK17 - Stn. Tun Razak)
ii) Sungai Klang (IK25 - Stn. Abdullah Hukum)
Completion of planning stage for the implementation of Public 100% 100% 100% 100% 1.0
Outreach Programme (POP) until the appointment of consultants
for phases 3, 4 and 5
Percentage of construction progress for River Beautification and 20% 17.4% 87% 87% 0.5
interceptor drainage system works
Compliance of wastewater discharge quality from all completed 100% 100% 100% 100% 1.0
Waste Water Treatment Plant to Water Quality Index(WQI) 76.5
i) Pasar Harian Selayang
ii) Pasar Jalan Kelang Lama
iii) Pasar Air Panas
iv) Pasar Sentul Pasar
v) Pasar Borong Kuala Lumpur
Effluent from 98 communal grease traps installed to comply with 100% 100% 100% 100% 1.0
Malaysian Sewerage Industry Guideline (FOG50 mg/l)
GKL EPP6: Greening Greater KL to Number of trees tagged with GPS Coordinates 40,000 43,325 108% 100% 1.0
ensure residents enjoy sufficient
green space Number of trees sponsored 2,500 7,298 292% 100% 1.0
Number of parks adopted/sponsored 4 4 100% 100% 1.0
GKL EPP7: Creating iconic places and Heritage Trail 5 : Percentage completion of Phase 1 project 50% 50.7% 101% 100% 1.0
attractions development
Heritage Trail 5 : Percentage completion of Phase 2 project design 100% 65% 65% 65% 0.5
Percentage completion of the outcome evaluation report for 100% 100% 100% 100% 1.0
effectiveness of Heritage Trail 1-3
GKL EPP8: Creating a comprehensive Percentage completion of Baselining study to calculate footfall 100% 100% 100% 100% 1.0
pedestrian network (usage) for both NKEA and non-NKEA Pedestrian Network in KL
Percentage completion of feasibility study to develop a pipeline 100% 100% 100% 100% 1.0
for the upgrade or development of new pedestrian networks in KL
for 2017 onwards
GKL EPP9: Solid Waste Management Percentage completion of pre-treatment system and upgrading of 100% 100% 100% 100% 1.0
Leachate Treatment System in Taman Beringin

NKEA - GREATER KL (continued)
EPP
(FY) (YTD) % % %
GKL BO#3: Sewerage Non-River Langat sewage treatment plant and network 24% 26.3% 110% 100% 1.0
Percentage of construction of Pipe Network in Petaling Jaya Utara 99% 93.6% 84% 84% 0.5
(Package D47)
Percentage of construction of Pipe Network in Kajang 1 & 3 40% 43.5% 113% 100% 1.0
(Package D49)
Percentage of construction of Pipe Network Lot 130 Klang (Package 99% 99% 100% 100% 1.0
D55)
TOTAL 114% 97% 93%
NKEA - HEALTHCARE
No KPI KPI Target Actual Method 1 Method 2 Method 3
(FY) (YTD) % % %
HEALTH EPP2: Creating a supportive Number of new clinical trials 155 162 105% 100% 1.0
ecosystem to grow clinical research
Number of new clinical trials performed in MOH facilities 99 101 102% 100% 1.0
HEALTH EPP3: Pursuing Percentage of offtake proposal processed within 87 working 100% 100% 100% 100% 1.0
pharmaceutical export opportunities days as stipulated in SOP approved by Ministry of Finance (by
processed means completion of price negotiations)
Percentage of licensed pharmaceutical (Scheduled Poisons) 100% 100% 100% 100% 1.0
manufacturers which fulfill GMP requirement
Export growth of pharmaceutical products (RM mil) 678 737.31 109% 100% 1.0
HEALTH EPP4: Reinvigorating health Revenue generated from Healthcare Travellers (RM mil) 1,000 1,123.03 112% 100% 1.0
travel through better customer
experience, proactive alliances and Revenue generated from Healthcare Tourists (RM mil) 660 687.72 104% 100% 1.0
niche marketing
HEALTH EPP7-14: Medical device Percentage of time taken to process complete submission 90% 100% 111% 100% 1.0
received in 2016 for establishment license within 30 working days
Number of GLP labs for preclinical testing of medical devices 1 1 100% 100% 1.0
Number of medical device to be registered 70,000 82,306 118% 100% 1.0
Medical device export (RM billion) 10.6 9.69 91% 91% 0.5
HEALTH EPP15-17: Senior Living Senior Living: Private Aged Healthcare Facilities and Services Bill 100% 50% 50% 50% 0.0
to be tabled and presented in the Parliament by end of 2016
TOTAL 100% 95% 88%

NKEA - OIL, GAS & ENERGY

EPP
(FY) (YTD) % % %
OGE EPP2: Developing marginal field Total production from marginal field (oil and gas) (kboe/d)
Production from Marginal Field (Oil) - Thousand Barrel per Day

(kbd)
*Information kept confidential
Production from Marginal Field (Gas) - Million Standard Cubic at the request of involved parties
Feet Per Day (MMscfd)
OGE EPP3: Intensifying exploration Numbers of explored well

activities
OGE EPP5: Unlocking premium gas Implementation of Third Party Access 100% 100% 100% 100% 1.0
demand in Peninsular Malaysia (Amendment of Gas Supply Act)
2013 : 90%
2014 : 90%
2015 : 90% (10% converted to milestone with 100% target,
achieved 70% in 2015, balance milestone to be monitored in 2016
with 100% target)
Implementation of Third Party Access 100% 96% 96% 96% 0.5

(Completion of relevant instruments for Implementation plan for
third party access)
Gas Pricing & Marketing 100% 95% 95% 95% 0.5

RAPID & Pengerang COGEN Power GSA @ market price
OGE EPP6: Attracting MNCs to bring Amount of committed investment by Oil & Gas Supplier and 650 683.7 105% 100% 1.0
their global oil field service and Services and Equipment companies (RM mil)
equipment operations to Malaysia
OGE EPP7: Local companies Number of first time bidders (companies) for international 10 10 100% 100% 1.0
successful in going international projects in new markets segments (includes new countries or
new segments within the same country)
OGE EPP 8: Attracting MNCs to set up Number of MNCs bringing their global operations to Malaysia or 6 6 100% 100% 1.0
operations in Malaysia and partner mergers/JVs between local OGSE companies with global MNCs
with local firms
OGE EPP9: Improving energy Number of buildings audited 10 10 100% 100% 1.0
efficiency
Reduction of Special Industrial Tariff (SIT) by 2% for 2016 100% 100% 100% 100% 1.0
OGE EPP10: Building up renewable Total installed RE capacity through FiT Mechanism 400 412 103% 100% 1.0
power capacity
Large Scale Solar (LSS) Guidelines by 2016 100% 100% 100% 100% 1.0
OGE EPP 11: Deploying Nuclear Deploy 50 MW under Net Energy Metering (NEM) 100% 90% 90% 90% 0.5
Energy for Power Generation
Finalising the drafting of the Atomic Energy Act 100% 90% 90% 90% 0.5

NKEA - OIL, GAS & ENERGY (continued)
EPP
(FY) (YTD) % % %
OGE EPP13: Increase in petrochemical Establishment of industrial park in PIPC to complement existing 100% 25% 25% 25% 0.0
output investments by DIALOG-Vopak and PETRONAS
JPDC to secure potential downstream investors to PIPC via LOIs 6 7 117% 100% 1.0
Revision of PIPC Master Plan
Revision of PIPC Masterplan will ensure the masterplan 100% 50% 50% 50% 0.0
continues to be relevant, accurate and realistic with the current
development of downstream oil and gas industry
Development of critical PIPC infrastructure projects planned for 100% 85% 85% 85% 0.5
2016 to support DIALOG-Vopak and PETRONAS
TOTAL 96% 89% 73%
NKEA - PALM OIL AND RUBBER

(FY) (YTD) % % %
POR EPP1: Accelerate the replanting Area of replanting and new planting approved for smallholders (ha) 7 ,000 11,475 164% 100% 1.0
and new planting of oil palm
and increasing independent Area of replanting and new planting implemented by 15,000 17,663 118% 100% 1.0
smallholders income smallholders (ha)
Crop Integration implemented (ha) 500 508 102% 100% 1.0
Number of individual projects under livestocks integration 85 27 32% 32% 0.0

scheme (goat and cattle)
POR EPP2: Improving FFB Yield Total FFB sold to mills by all cooperatives by year end (MT) 40,000 47,766.32 119% 100% 1.0
Number of new cooperatives (KPSM) start selling FFB to mills 5 5 100% 100% 1.0
with minimum 500 MT/year
New area of plantations/smallholders complying with MSPO/ 50,000 122,521 245% 100% 1.0
RSPO/CoGAP (ha): (i) MSPO
New area of plantations/smallholders complying with MSPO/ 50,000 22,442.05 45% 45% 0.0
RSPO/CoGAP (ha): (iii) CoGAP
National Average Yield (MT/ha/yr) 20.50 15.91 78% 78% 0.5
National FFB Production (million MT) 103 86.33 84% 84% 0.5
Number of new members of 30-tonner club 100 116 116% 100% 1.0
Suresawit kit to assist certification of oil palm nurseries as 150,000 171,067 114% 100% 1.0
follows:- Number of samples tested
POR EPP3: Improving Workers Take up rate of mechanisation grant (RM750,000 for 20% 100% 84.5% 85% 85% 0.5
Productivity in Plantations and discount for machine purchase)
Estates
POR EPP4: Increasing the Oil Number of Palm Oil Mills certified by MPOB for Code of Practice 10 9 90% 90% 0.5
Extraction Rate and other international certifications:(i) CoPM/MSPO
Oil Extraction Rate (%) 21.50% 20.2% 94% 94% 0.5

NKEA - PALM OIL AND RUBBER (continued)

EPP
(FY) (YTD) % % %
POR EPP5: Developing Biogas Progress of biogas plant construction for 8 new mills (%) 100% 150% 150% 100% 1.0
facilities at Palm Oil Mills
Progress of 2 new mills with biogas plant connected to the grid (%) 100% 350% 350% 100% 1.0
POR EPP6: Developing Oleo- Take up rate of the pre-commercialization and technology 100% 144.8% 145% 100% 1.0
Derivatives acquisition funds (%)
POR EPP8: Expediting growth of Take up rate of funds for food and health-based products (%) 100% 80.5% 80% 80% 0.5
Food and Health-based downstream
segment
POR EPP9: Ensuring sustainability of Area of replanting and new planting by rubber smallholders (ha) 6,802 6,802 100% 100% 1.0
the upstream rubber industry
POR EPP10: Increasing world Malaysian export of natural rubber and compound rubber (mil MT) 1 1 100% 100% 1.0
market export of rubber and rubber
products Malaysian export revenue from latex products (RM bil) 13 14 108% 100% 1.0
Number of standards met by rubber and rubber products using 5 4 80% 80% 0.5
the newly commissioned equipment
POR EPP11: Commercialising Sales of Ekoprena and Pureprena (MT) 700 409 58% 58% 0.5
Ekoprena and Pureprena
Commercial collaboration trial product produced (number of 6 7 117% 100% 1.0
agreements signed)
TOTAL 115% 89% 76%
NKEA - TOURISM
(FY) (YTD) % % %
TOUR EPP1: Positioning Malaysia as a Total tourist spend on shopping (RM bil) 31 26 84% 84% 0.5
vibrant shopping destination
Total Footfalls at Malls at BBKLCC 100 131.493 131% 100% 1.0
TOUR EPP4: Positioning Malaysia as Number of visitors to MMBH Sites 625,000 859,409 138% 100% 1.0
a leading ecotourism destination
Percentage completion of upgrading of Sepang Environmental 100% 100% 100% 100% 1.0
Interactive Centre (EIC)
TOUR EPP5: Expanding tourism Revenue generated from golf tourism (RM million) 330 335 102% 100% 1.0
offerings in niche areas
TOUR EPP6: Developing Cruise Number of cruise passengers at primary ports 550,000 682,063 124% 100% 1.0
Tourism
TOUR EPP7: Positioning Malaysia as Number of international cruise calls at Malaysian ports 394 435 110% 100% 1.0
a vibrant events & entertainment
destination Number of international tourists at International Events 78,000 98,813 127% 100% 1.0
supported by MYCEB
TOUR EPP9: Establishing Malaysia Number of approved designated entertainment & lifestyle zones 1 0.7 70% 70% 0.5
as a leading business tourism
destination Total delegates present for event secured (delegate days) 300,000 378,412 126% 100% 1.0

NKEA - TOURISM (continued)
EPP
(FY) (YTD) % % %
TOUR EPP11: Enhancing air Total weekly seats from identified priority countries by all 120,500 142,088 118% 100% 1.0
connectivity to Malaysia from Malaysian carriers
priority markets
TOUR EPP12: Improving mix & Number of new 4-star & 5-star hotel rooms 2,500 2,924 117% 100% 1.0
quality of hotels & integrated resorts
TOTAL 104% 91% 87%
NKEA - WHOLESALE & RETAIL

(FY) (YTD) % % %
WR EPP1: Increasing number of large Number of new hypermarkets 6 7 117% 100% 1.0
format stores
Number of new superstores 5 12 240% 100% 1.0
WR EPP2: Modernising via the Small Number of establishments modernized under the TUKAR 150 151 101% 100% 1.0
Retailer Transformation Programme programme
(TUKAR)
WR EPP4: Transforming automotive Number of workshops modernized under the ATOM programme 100 100 100% 100% 1.0
workshops (ATOM)
WR EPP5: Developing makan Identify new Makan Bazaar site 1 1 100% 100% 1.0
bazaars
WR EPP7: Virtual Mall Number of sellers in amaxMall 500 646 129% 100% 1.0
WR EPP11: Organising unified Number of sub-sectors involved in 1Malaysia Unified Sale 60 60 100% 100% 1.0
Malaysia sales
TOTAL 127% 100% 100%

SRI - NARROWING DISPARITY

(FY) (YTD) % % %
Total value of business opportunities created for Bumiputera companies (RM billion) 10.0 11.54 115% 100% 1.0
Achieve financing approval for Bumiputera companies at a minimum of 3.0 times against respective government 3.0 3.20 107% 100% 1.0
funds received
Increase in G.E.T (Growth , Employment Created and Turnover/Revenue) for 60% micro and small companies 10% 9.1% 91% 91% 0.5
participating in INSKEN500 programmes
TOTAL 104% 97% 83%
SRI -COMPETITION, STANDARDS AND LIBERALISATION

(FY) (YTD) % % %
Number of fruit and vegetable farms certified (new/renewed) under myGAP 750 829 111% 100% 1.0
Number of aquaculture farms certified (new/renewed) under myGAP 158 159 101% 100% 1.0
Number of livestock farms/premises certified (new/renewed) under myGAP 200 210 105% 100% 1.0
Number of new fruit and vegetable farms certified under myOrganic 20 15 75% 75% 0.5
Number of new certifications obtained by companies from Accredited Certification Bodies 1,070 1,225 114% 100% 1.0
Number of new food production establishments certified for Makanan Selamat Tanggungjawab Industri (MeSTI) 710 744 105% 100% 1.0
Number of new products under MyHIJAU Programme 1,800 1,958 109% 100% 1.0
TOTAL 103% 96% 93%


SRI -HUMAN CAPITAL DEVELOPMENT
(FY) (YTD) % % %
Percentage of women on board (Public Companies only from SSM) 20% 16.6% 83% 83% 0.5
Percentage of women on public listed board (BURSA) 12% 12% 100% 100% 1.0
No. of new childcare centres 100% 131% 131% 100% 1.0
> At the Workplace
> Institutions
> Government
> Registered Home Based
> Notification for at-home care below 4 children
Number of additional women placements from Women Directors Programme and 30% Club 25 14 56% 56% 0.5
No. of companies that provide childcare benefits or facilities to employees 50 32 64% 64% 0.5
Number of trained childcare minders through Kursus Asuhan PERMATA or Kursus Asas Asuhan 1,200 1,637 136% 100% 1.0
Data collection system to be extended to all registered childcare centres 100% 95.3% 95% 95% 0.5
To complete Labour Force Information Survey 100% 80% 80% 80% 0.5
HR Capability Building Programmes for SMEs 25,000 33,735 135% 100% 1.0
PSMB Contact Centre Customer Satisfaction Survey 80% 83% 104% 100% 1.0
Number of Employers Registered with National Human Resource Centre (NHRC) 6,000 11,605 193% 100% 1.0
Minimum Wages Statutory Inspection (including) 30,000 38,245 127% 100% 1.0
Draft on the review of EA, IRA and Trade Union ready and submitted to AGC (If TPPA is signed) 100% 70% 70% 70% 0.5
Number of women placements 150 168 112% 100% 1.0
Effectiveness of Graduate Employability Management Scheme (GEMS) & Upskilling 100% 99.5% 100% 100% 1.0
(i) Number of trainees under GEM and Upskilling programme
(ii) 80% from those trained in 2015 are employed
Percentage completion of identification of critical skills gap report 100% 100% 100% 100% 1.0
Number of new companies offering flexible work arrangements, family friendly facilities or benefits 30 32 107% 100% 1.0
Number of internship placements 15,000 16,452 110% 100% 1.0
TOTAL 100% 87% 78%

SRI - PUBLIC SERVICE DELIVERY TRANSFORMATION

(FY) (YTD) % % %
Implement LEAN Healthcare at MoH hospitals 15 36 240% 100% 1.0
Average lift uptime at 5 PPRs under DBKL 90% 0% 0 0 0
Rollout road maintenance to protocol and main roads under DBKL 43% 107% 119% 100% 1.0
Implement LEAN Healthcare at university hospitals with MOHE 1 1 100% 100% 1.0
TOTAL 140% 100% 100%
SRI - PUBLIC FINANCE REFORM

(FY) (YTD) % %
Percentage of Implementation of Accrual Accounting Activities in 2016 100% 55.7% 56% 56% 0.5
TOTAL 56% 56% 50%

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2

NATIONAL TRANSFORMATION PROGRAMME

Prime Ministers Foreword

A Note from the Deputy Prime Minister

THE YEAR IN REVIEW

DELIVERING DATO SRI IDRIS JALA

ACTION economic growth. Six years on, our objective

THE YEAR IN REVIEW

THE YEAR IN REVIEW

All this required new courses

We have reduced the

THE YEAR IN REVIEW

The NKEAs have

THE YEAR IN REVIEW

The GNI contributions by NKEA GNI VALUE (RM BILLION)

Wholesale & Retail 181.9

Communication Content & Infrastructure 58.1

Financial Services 64.8

Business Services 58.6

TOTAL NKEA 827.2

Other Industries 367.5

TOTAL GNI 1,194.6

TRANSFORMATION FOR ALL

THE YEAR IN REVIEW

THE YEAR IN REVIEW

ADDRESSING THE RAKYATS KEY TOUCH POINTS AND DRIVING

ADDRESSING THE RISING COST OF LIVING

THE YEAR IN REVIEW

While even the worlds safest perception towards their most

THE YEAR IN REVIEW

IMPROVING URBAN PUBLIC TRANSPORT

THE YEAR IN REVIEW

The NTPs initiatives on registered a 45-point improvement up of institutes of higher education,

THE YEAR IN REVIEW

OIL, GAS AND ENERGY

THE YEAR IN REVIEW

THE YEAR IN REVIEW

GREATER KUALA LUMPUR & KLANG VALLEY

The Financial Services NKEA

THE YEAR IN REVIEW

COMMUNICATIONS CONTENT AND INFRASTRUCTURE

Efforts under this NKEA are

THE YEAR IN REVIEW

PALM OIL AND RUBBER

As the worlds second-largest

THE YEAR IN REVIEW

COMPETITION, STANDARDS AND LIBERALISATION

Aimed at enabling an following the liberalisation of 45

THE YEAR IN REVIEW

HUMAN CAPITAL DEVELOPMENT

PUBLIC FINANCE REFORM

THE YEAR IN REVIEW

PUBLIC SERVICE DELIVERY TRANSFORMATION (PSDT)

THE YEAR IN REVIEW

THE LAST MILE OF TRANSFORMATION

NATIONAL TRANSFORMATION PROGRAMME

IMPROVING URBAN PUBLIC TRANSPORT

One Step DATO SRI

Destination The completion of the MRT represents a promise

IMPROVING URBAN PUBLIC TRANSPORT

IMPROVING URBAN PUBLIC TRANSPORT

MRT AT THE FOREFRONT OF URBAN PUBLIC

IMPROVING URBAN PUBLIC TRANSPORT