The ETP is a highly ambitious programme, and there are certainly risks to implementation.
The most significant risk is that the required growth in private sector investment of over 12 percent per annum is not achieved.
Since 92 percent of the capital required for the ETP is projected to come from private investment, if this growth in investment does not materialise, the risk is that the economy will not grow in line with the Government's target.
To mitigate this risk, the Government recognises that it has a new role to play in facilitating growth in what is a private sector-led programme of transformation. The Government will be absolutely focused on implementing the reforms identified by the
NKEA labs and will target funds to the EPPs, so as to stimulate private investment. In addition, the corporatisation of Malaysian Industrial Development Authority (MIDA) will help enhance Malaysia's ability to attract foreign investment and stimulate domestic investment.
There are other risks to the programme. The global economy is unpredictable and may not grow as quickly as the 4.5 percent projected through the 10 years. There is a limit to what can be done to mitigate this risk. However, the fact that the ETP aims to balance growth across exports and domestic consumption means that Malaysia will be somewhat less exposed to changes in global economic activity than would otherwise be the case.
"There is also a potential risk that the delivery of the initiatives will be delayed. This is being tackled head on by the government"
The programme is based on very concrete EPPs and actionable market-driven reforms. There will be clear accountabilities across Government for delivering the reforms and initiatives required to drive economic growth, and a new unit has been established under PEMANDU that will support the ministries, government agencies and private sector in the delivery of the ETP.
2012/01/05