In the New Economic Model for Malaysia – Part 1, the National Economic Advisory Council identified 8 Strategic Reform Initiatives.
With the NKEAs focused on delivering tangible outcomes through the 131 Entry Point Projects and 60 Business Opportunities, the concluding volume of the New Economic Model in December structured these recommendations along 51 broad and cross cutting policy measures in order to realise our goal of transforming our nation into a high income, sustainable and inclusive economy.
The Government considers these 51 policy measures to be a high priority for implementation and developed a detailed programme for each policy measure.
The Entry Point Projects are the vehicles that will drive us to our final destination of realising Vision 2020. Each of these 51 policy measures serve as the highway that ensures that the fastest and most efficient vehicles travel smoothly to allow us to reach our final destination on time. No pot holes. No detours. No traffic lights. No traffic jams. Hence this highway creates a conducive environment for us to compete. The Government is committed to competitiveness, especially competitiveness that enables the best and brightest to thrive in this nation.
Laying out this highway requires us to develop a detailed programme. The 51 policy measures have been clustered into two groups to ensure execution. 14 of these measures were housed in existing 'Natural Homes' in various NKEAs and NKRAs, whilst the remaining 37 policy measures have now been clustered into 6 Strategic Reform Initiatives (SRIs). They are:
1Competition, Standards & Liberalization
- 2.6.1 Follow International Standards – Governance and Management
- 2.6.2 Follow International Standards – Sustainability
- 2.6.3 Adopt Quality Standards for Goods and Services
- 2.6.4 Convert Existing Malaysian standards into International Standards
- 2.6.5 Administer Compliance with Standards
- 2.7.1 Liberalisation of Entry, Ownership and Operations
- 2.7.2 Reform the Regulatory Framework
- 2.7.3 Swift and Resolute Implementation of the Competition Law
2Government's Role in Business
- 2.5.1 Set Up a Central Oversight Authority
- 2.5.2 Divest Non-Strategic Companies and Re-engineer the Roles of the Remaining
- 2.5.3 Channel Proceeds from Divestment into a Sovereign Wealth Fund
- 2.5.4 Re-engineer GLCs to Support Private Sector
- 3.5.5 Consolidate and Merge National Enterprises to Create Scale
3Human Capital Development
- 5.2.1 Modernise Labour Legislation
- 5.2.2 Strengthen Strategic Human Resource Programmes
- 5.2.3 Establish a National Wage Consultative Council (NWCC)
- 5.2.4 Formalise a Productivity-linked Wage System (PLWS)
- 5.2.5 Consider a Minimum Wage Policy
- 5.2.6 the Labour Safety Net by Introducing Unemployment Insurance
- 5.3.1 Undertake a Labour Market Forecast and Survey Programme
- 5.3.2 Focus on Up-skilling and upgrading the Workforce
- 5.3.3 Leveraging Women's Talent to Raise Productivity
4Public Service Delivery
- 2.4.1 Revise the Public Sector Governance Framework
- 2.4.2 Implement a Compliance Monitoring System
- 4.2.1 Strengthen the Government's Facilitative Role
- 4.2.2 Create a Citizen-Centred Public Service
- 4.2.3 Expand Private Delivery of Public Service
- 4.2.4 Enhance Public Agencies to Drive Growth
- 4.3.1 Reform the PSC (JPA) to Define Strategic Human Resource Policy and Management Processes in the Public Sector
- 4.4.1 Revive the NDPC as the Premier Body for Policy Development, Coordination and Consultation
5Narrowing Disparities (Bumiputera SMEs)
- 6.6.1 Establish specific programmes for Bumiputera SMEs
- 6.6.2 Focus on capacity building programmes
6Public Finance Reform
- 3.5.1 Develop Government and GLC Procurement Policies that support local innovative products and services
- 4.5.1 Adopting Accrual Accounting for Prudent Fiscal Management
- 4.5.2 Implement Efficient Broad-based Tax (GST) for Revenue and Fiscal Stability
- 4.5.3 Strengthen Expenditure Control
- 4.5.4 Improve Fiscal Policy Institutions and Processes
7Natural Homes (NKEAs/ NKRAs / National Committee of Investments / UNIK)
- 2.8.1 Supporting SMEs & Innovation and Efficiency in Allocation of Capital
- 2.9.1 Accelerate the Rollout of Broadband
- 2.10.1 Internalize Externalities
- 2.10.2 Promote Green Growth and Energy Efficiency
- 2.10.3 Favour Sustainable Agriculture
- 2.10.4 Strive for Energy Resource Sustainability
- 3.5.2 Foster Better and Closer R&D Links between Institutions of Higher Learning (IHLs) and the Private Sector
- 3.5.3 Turning Existing HiCoEs (Centres of Excellence Accredited by the MoHE) into full fledged networks of excellence
- 3.5.4 Extract Greater Value from the Development and Management of Intellectual Property
- 4.2.5 Pursue Administrative Reforms in the Judiciary
- 6.5.1 Establish an overarching policy on social assistance programme
- 6.5.2 Adopt a single comprehensive database based initially on e-Kasih
- 6.5.3 Addressing the Transportation and Housing needs
- 6.5.4 Break the Poverty Cycle through Education
SRI labs were held over 6 weeks in February through April 2011 to develop implementation plans for the policy measures. An 'Entry Point' approach was taken to achieve the ripple effect and create big results fast.
'Entry Point' approach was taken to create the ripple effect
2012/02/10