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The year (2012) is the second year Tenth Malaysia Plan (10MP) has rolled out.

10MP has allocated RM230 billion, and aims to push Malaysia towards a high-income economy that is knowledge and innovation based as the country tries to achieve the goal of becoming a developed country by the year 2020.

55% of this RM230 billion, will spent on the economic sector, 30% on the social sector, 10% on the security sector, and the remaining 5% will used for general administration.

Overall, 60% will spent on physical development while 40% will spent on non-physical development, an increase from 22% in the Ninth Malaysia Plan.

Five key thrusts of the 10MP

1. Creating the environment for unleashing economic growth

2. Moving towards comprehensive socio-economic development

3. Developing and uphold a first world talent base

4. Building an environment that increase the quality of life

5. Transforming government to Transform Malaysia

Promoting Private Sector and Innovation-Led Growth and Making Malaysia Competitive Globally

To form a private sector led economy, the government resolve:

* Modernise business rule

* Liberalise the services sector to improve productivity and attract new investment

* Remove market distortions by rationalizing subsidies

* Introduce competition legislation

* Improve the contact between government and business

To keep innovation-led growth, the government fortitude:

* Shape a supporting economic system for innovation by developing human capital, investing in innovation infrastructure, and using economic incubators

* Create innovation opportunities by improving the public procurement system and reforming rules

* Put in place innovation enablers to reduce inefficiencies in government institutions that support research and design (R&D) and upgrade intellectual property rules

* Fund innovation through the Mudharabah Innovation Fund

The government will also support small and medium-sized enterprises (SMEs) by:

* Reducing the regulatory costs borne by SMEs

* Building the capacity and capabilities of SMEs through training programmes

* Supporting creating an entrepreneurial culture through university-based programmes and initiatives

* Strengthen support systems for SMEs to promote the development and acceptance of SME products and services

* Improve access to financing for SMEs by using programmes that allow early stage SMEs in new growth areas to get financing

* Set up a Skills Upgrading Programme to improve the technical, supervisory, and managerial skills of SME workers

To help Malaysia competes globally, the government resolve:

* Improve competitiveness by expanding export markets, helping Malaysian firms trying to break into export markets, developing FTAs, and reducing transaction costs

* Attract foreign talent and investment to Malaysia by highlighting benchmarks, empowering MIDA, and investing in talent recruitment

Promoting Private Sector and Innovation-Led Growth and Making Malaysia Competitive Globally

To develop education to maintain innovation-led growth and competitiveness, the government propose to:

* Reform the education system to increase student outcomes and improve the skills and employability of Malaysian graduates

* Expand access to and improve the quality of technical education and vocational training (TEVT) programmes

* Implement the Knowledge Transfer Partnership (KTP) programme in 2011 to increase collaboration between industry and relevant universities and provide industrial-based training for graduates

* Provide a Skills Development Fund to help workers and school leavers gain new skills

To further aid in attracting and keeping talent, the government will:

* Liberalise the entry of skilled professionals as outlined by the ASEAN Framework Agreement on Services (FAS)

* Set up a Talent Corporation (TC) to promote developing Malaysian talent and work with both the public and private sectors to develop a National Talent Plan by 2011

Government will adjust its role by:

* Strengthening its role as a policymaker and independent regulator as the private sector increases its participation in the economy

* Extending opportunities for private sector investment to include the delivery of front-line public services

* Transferring non-core operating functions to the private sector to improve outcomes and lower costs, and also reducing government ownership in selected companies and provide companies with a level playing field to ease private-sector competition

* Setting up Innovation Malaysia as a unit responsible for overseeing innovation initiatives to improve R&D and promote production of intellectual properties


(this article published in 1BINA.my)