While the private sector is responsible for driving and funding a significant portion of the ETP, public funds will play an important role in catalysing investment in areas where additional support is needed.
We commit ourselves to safeguarding public resources by allocating funding according to our delivery principles.
In this spirit, we will ensure that public funding is prioritised by GNI impact, allocated to owners that are transparently selected based on merit and disbursed according to performance that is judged against milestones and key performance indicators.
Prioritising public funding according the highest return projects
NKEAs have been carefully selected, and each has a significant material impact on the GNI of our nation.
As such, we plan to concentrate our development budget on the ETP to ensure it has the funding required for success. Any public spending will be allocated on the basis of maximising GNI per public ringgit of investment.
Transparently selecting owners based on merit
An important element of the programme is ensuring that public funds are distributed through a process that is both transparent and based on merit.
Many of the EPPs will not need any Government funding and are open to any company that chooses to take advantage of the opportunity. However, in cases where EPPs require public funding, the Government will conduct a transparent bidding process that complies with the transparent and merit-based assessment processes utilised by the Ministry of Finance.
Distributing funds based on performance
Steering Committees are tasked with ultimate accountability for ensuring that public funding is allocated within each NKEA in a manner that rewards performance.
As such, ongoing funding will only be distributed to EPPs where performance meets the milestones defined by ETP labs. In cases where milestones are not met by the specified timeline, a Steering Committee has the responsibility to change the terms of public funding, or withdraw any future funding.
Ongoing funding and capturing future growth opportunities
Funding for the ETP as approved by the Cabinet has been secured and will be allocated in a series of ongoing tranches.
The initial tranche of funds for 2011 to 2012 were approved by the Parliament in October 2010. Funds for 2013 to 2015 will be approved in 2012 during the two-year planning cycle as stated in the Tenth Malaysia Plan. Funding for the programme from 2015 to 2018 will be approved under the Eleventh Malaysia Plan.
Finally funding for 2018 to 2020 will be approved in 2017.
Over time we have the flexibility to rebalance our funding for NKEAs
and EPPs, while limiting the maximum number of NKEAs carried out at any given time to 12. The current set of NKEAs reflects the areas that have the highest GNI growth forecast by 2020, and it is likely that there may be significant growth in other non- NKEA sectors in the future as markets and the environment changes. Furthermore, there may also be cases where EPPs will be removed from the programme if they do not meet GNI and job targets. To rebalance the set of NKEAs and EPPs, when it deems it appropriate, ETP Unit may recommend that a new lab process be put in place. This process will bring together participants from both the public and private sectors and will be transparently shared with the public in the spirit of the ETP.
"RM 0.8 Trillion incremental GNI impact delivered from EPPs, business oppurtunities and multiplier effect"
The ETP will transform the Malaysian economy and deliver the increased GNI required to become a high-income nation by 2020 (Exhibit 5)
. The following sections outline the programmes of each of the 12 NKEAs. Exhibit 5