Highlight ETP on track to propel Malaysia towards high income nation by 2020, says report

by **Cals** Tue 13 May 2014, 01:23

Highlight ETP on track to propel Malaysia towards high income nation by 2020, says report

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 12 May 2014 20:30

KUALA LUMPUR (May 12): The Economic Transformation Programme (ETP), a 10-year plan launched by Prime Minister Datuk Seri Najib Razak in 2010, is on track to propel Malaysia towards achieving its goal of becoming a high-income nation by 2020.

Malaysia, via economic transformation, is acquiring the characteristics of a high-income economy.

In several areas, the ETP has surpassed its targets. Among the notable achievements are:

Private investment hit RM161.1 billion in 2013, surpassing its target of RM148.4 billion;
Services sector accounted for 55.2% of GDP for 2013, closing in on the ETP’s target of 65% by 2020;
Malaysia is set to cut its budget deficit down to 3% next year.

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In a statement released in conjunction with the Prime Minister’s launch of the ETP Annual Report 2013 today, the ETP team said outcomes in GNI (gross national income), jobs, and investments show the positive catalytic effect of the ETP.

“Key macroeconomic indicators demonstrate the country is on track to achieve its high income goals.

“GNI per capita grew an impressive 42.5% from USD7,059 in 2009 to USD10,060 in 2013, with just six years to go to the 2020 target of USD15,000,” said the press statement by the Prime Minister’s Department.

“Led by the private sector and supported by the government, the ETP has reinforced the structure of the economy in building towards a more resilient, sustainable and globally competitive business and financial environment,” the statement said.

Elaborating on achievements, the statement said since the launch of the ETP, private investment has surged, growing 15.3% during 2010-2013 compared with 4.7% during 2007-2010.

“In 2013 alone, private investment reached RM161.1 billion, surpassing its target of RM148.4 billion by 8.6%.”

Looking at employment, the ETP statement said sectors within the National Key Economic Areas (NKEAs) have created 1.3 million additional high-value jobs in the past three years. This comes on top of better income for the overall labour market.

“Malaysia’s economic transformation is evolving to acquire the characteristics of a high-income economy that is service-based, private consumption driven, and being less reliant on oil revenues,” it said.

The services sector accounted for 55.2% of GDP for 2013, closing in on the ETP’s target of 65% by 2020.

Private consumption grew 7.6% in 2013, up from 6.9% in 2010, supported by income growth. Private consumption now accounts for 51.2% of GDP, on course to achieve 60% of GDP by 2020.

“The government has made great efforts to diversify its revenue mix. As evidenced, it has reduced the country’s dependence on oil and gas revenue from 39.7% of total revenue in 2008 to 30.6% in 2013. For 2014, it is forecast to be further reduced to 28.9 per cent.”

Overall, Malaysia’s government revenue rose 38.1% to RM220.4 billion in 2013 from RM158.6 billion in 2010 due to more efficient tax collection. “In 2014, government revenue is expected to rise to RM224.1billion”.

The statement noted fiscal deficit had been trimmed to 3.9% in 2013, from 6.6% of GDP in 2009.

“With this result, the Government is on target to reduce its deficit further to 3% in 2015 and achieve a balanced budget by 2020,” declared the ETP team.[/color][/size]