In 2014, GNI per capita rose to RM34,1232,
from RM30,809 boosted by private sector
investments at RM146 billion3. We have
also been able to create 1.8 million new
employment opportunities within the
larger economy in the last four years,
striding closer to our 2020 target.
There is no denying that 2014 was a watershed year in cementing the Government’s commitment towards fiscal discipline. We demonstrated our seriousness to transform policies to meet the needs of the current fiscal climate and ensure sustainability in the long term. These measures include shifting towards a managed float for retail prices of RON95 petrol and diesel, the implementation of GST in April 2015 and our disciplined approach in keeping the nation’s fiscal deficit in close check.
Such manoeuvres have without a doubt helped us become increasingly resilient to external volatility. More importantly, our economic fundamentals remain intact and continue to improve through crucial fiscal reforms.
Enhancing Sustainability and Inclusiveness
Achieving our targeted numbers in GNI, investment and employment make up only a portion of our pursuit towards high-income status. In order to truly transform, we must include as many people as possible in wealth creation, while developing at a sustainable pace over time without straining available resources.
Over the years, we have seen tremendous success in poverty eradication. According to the latest preliminary data from the Department of Statistics Malaysia (DOSM), only one per cent of our population was in poverty as at 2014, compared with 3.8 per cent in 2009. This also represents a far cry from the first records of poverty in Malaysia collected in 1970, when 49.3 per cent, or almost half, of the population was classified as living in poverty.
Towards the Last Mile: Key Indicators of Transformation
We have made progress in supporting broader economic development as shown by the following key indicators.
- Stable Economic Growth
- Closing in on High Income with NKEAs Being Main Contributors to GNI
- Employment on the Rise
- Growing Share of Private Investment
- Fiscal Consolidation Measures on Track
- Government Revenue Increases
- Reducing Dependence on Oil & Gas Revenue, Diversification of Economy
- Robust Capital Market Economy
- Private Consumption on Uptrend
- Continued Global Recognition
NKEAs Drive Growth
The ETP’s 12 NKEAs represent our efforts to focus economic growth on industries in which our capabilities, expertise and specialisation can be enhanced in line with those of a high-income economy. In 2014, our overall KPI for the NKEAs stood at 110 per cent.
The following is a snapshot of the activities of each NKEA during the year, with detailed reporting disclosed within the respective chapters of this report.
SRIs Foster Global Competitiveness
Formulated from policy recommendations from the New Economic Model, the SRIs represent components required for Malaysia to achieve global competitiveness. Initially made up of six SRIs, 2014 saw the Public Service Delivery SRI transferred to a higher platform and renamed the Public Service Delivery Transformation programme, the reporting of which is available in the GTP Annual Report 2014.
In 2014, the overall KPI achievement for SRIs was 120 per cent.
2020: Staying the Course
Malaysia has shown significant progress towards high-income status in the past four years. As we enter the final phase of the ETP, it has become more important than ever for us to stay the course and maintain the momentum that has been established in the country’s transformation.
In the next five years, PEMANDU will remain in its role of overseeing the ETP to ensure we arrive at our targeted goals for 2020, while working in tandem with other Government programmes, such as the 11th Malaysia Plan which will commence in 2016 and see us through the final lap towards 2020.