P3A Sulaiman Mahbob Developing and Implementing National …siteresources.worldbank.org/INTEAPSUMEASPR/Resources/2576847... · DEVELOPING AND IMPLEMENTING NATIONAL PLANS ... 10 An

Growth Through Innovation© 2005 Innovation Associates – All Rights Reserved

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© 2006 NATIONAL IMPLEMENTATION DIRECTORATE ALL RIGHTS RESERVED

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DEVELOPING AND IMPLEMENTING NATIONAL DEVELOPING AND IMPLEMENTING NATIONAL PLANSPLANS

DATUK DR SULAIMAN MAHBOBDATUK DR SULAIMAN MAHBOBEXECUTIVE DIRECTOREXECUTIVE DIRECTOR

NATIONAL IMPLEMENTATION DIRECTORATENATIONAL IMPLEMENTATION DIRECTORATE

22 SEPTEMBER 200622 SEPTEMBER 2006KLCCKLCC

Malaysia : Economic Growth TrendsMalaysia : Economic Growth Trends

Real GDP

50

150

250

350

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006e 2007f

RM b

-10

-8

-6

-4

-2

0

2

4

6

8

10

An. ch. %RM b(LHS) Real GDP

6.0%7.5%5.9%9.2%-7.4%6.1%8.3%0.4%4.1%5.3%7.1%5.2%5.8%6.0%

1960’s1970’s1980’s1991-97199819992000200120022003200420052006e2007f

Asian Asian Financial Financial

Crisis Crisis

Sept 11 Sept 11 & & SarsSars

©© 20062006 NATIONAL IMPLEMENTATION DIRECTORATENATIONAL IMPLEMENTATION DIRECTORATEALL RIGHTS RESERVEDALL RIGHTS RESERVED

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Malaysia : Malaysia : External position strengthens furtherExternal position strengthens further

International Reserves

50

150

250

350

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006August

RM b

0

1

2

3

4

5

6

7

8

9

Months/Times

Goods 125.6 137.9 145.8Services -9.0 -11.4 -13.3C/A balance 75.7 87.9 94.7F’cial acct -37.0 - -

FDI 3.8Portfolio -14.2Others -26.6

E&O -25.0Overall bal. 13.6

Debt service 5.3 4.3 Ratio(%)

RM b2005 2006e 2007f

Balance of Payments

291.3291.3

8.18.1

6.16.1

Months of retained import Months of retained import

Multiples of short term debt Multiples of short term debt


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Federal Government Financial Position Federal Government Financial Position --expansionary but deficit remains at prudent expansionary but deficit remains at prudent levellevel

-3.4-4.8-3.4-3.5-3.8-4.3-5.3% of GDP

-107.6-97.8-20.2-19.3-18.7-19.4-20.9Overall Bal.

Gross Dev Ex

Current Acc

Operating ExRevenue

39.4

17.4

75.292.6

RM billion

2003

28.9

8.1

91.399.4

2004

30.5

8.6

97.7106.3

2005

35.8

15.2

105.4120.6

2006e

44.5

21.8

113.0134.8

2007f

170

64.7

396.7461.4

Achieved8MP

200

87.6

595.5683.1

Target9MP


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Unemployment:Unemployment:remains stableremains stable

Unemployment

2.0

2.5

3.0

3.5

4.0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

An. %Inflation

0.0

1.0

2.0

3.0

4.0

5.0

6.0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

An. %

Inflation: manageable but Inflation: manageable but upside risk prevailsupside risk prevails


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Poverty EradicationPoverty Eradication

Unit RuralUrbanRuralUrban MalaysiaMalaysia

0.8

86.1

3.3

4.0

323.2

14.8

1.4

311.3

5.7

0.6

91.6

2.5

(%)

(‘000)

(%)

Year

3.02.3Poverty Gap

219.7409.3Number of Poor Households

11.98.5Incidence of Poverty1

20041999Overall Poverty

Notes: Notes: 11 Refers to households with monthly gross income below PLIRefers to households with monthly gross income below PLI

Source: Ninth Malaysia Plan 2006Source: Ninth Malaysia Plan 2006--2010, EPU, Prime Minister2010, EPU, Prime Minister’’s Dept, s Dept, PutrajayaPutrajaya, 2006, 2006


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Developing and Implementing National Developing and Implementing National Development PlanDevelopment Plan

Involvement and Engagement of Top Political Leadership

Commitment of Senior Civil Servants

Interdepartmental Coordination

Availability and Prudent Management of Resources

Trained Manpower at policy and project level

Implementation Capacity and Monitoring Mechanism©© 20062006 NATIONAL IMPLEMENTATION DIRECTORATENATIONAL IMPLEMENTATION DIRECTORATE

ALL RIGHTS RESERVEDALL RIGHTS RESERVED66

KEY INSTITUTIONSKEY INSTITUTIONS

The Cabinet

The NDPC

The Chief Secretary

The Role of EPU

Supportive Role of MOF and Central Bank


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Need Strong Central Planning Need Strong Central Planning OrganizationOrganization

Indicative and Market-Based Plan

Macroeconomics

Long-term Growth and Distribution

Other Developmental Concerns

- Industrialization, Technology and HRD

Major Sectoral Divisions

- e.g. Health, Education, Infrastructure©© 20062006 NATIONAL IMPLEMENTATION DIRECTORATENATIONAL IMPLEMENTATION DIRECTORATE

ALL RIGHTS RESERVEDALL RIGHTS RESERVED88

CRITICAL ELEMENTS OF CRITICAL ELEMENTS OF FIVEFIVE YEAR PLANSYEAR PLANS

Identification of Long Term Issues and Targets- example: NEP and Vision 2020

Analysis of Malaysian Macroeconomy- national accounts including Public Finance

Thrust on Growth with Equity- given Malaysia’s history and the demands of a Plural Society

Prudent Fiscal Stance and Budgetary Allocation

Key Sectoral Policies, Programmes and Targets- Manufacturing, Agriculture, Services, Infrastructure


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FIVE YEAR PLANS AND NATIONAL FIVE YEAR PLANS AND NATIONAL BUDGETBUDGET

Total Allocation is based on Resource Availability

Operating Budget – MOF

Development Budget – EPU

Annual Budget for both

Development and current Expenditure


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IMPLEMENTATIONIMPLEMENTATION

The Role of Implementation Coordination Unit (ICU) and the Project Monitoring Mechanism

The Recent Establishment of Implementation Directorate for High Impact Projects (HIPs)- Poverty Eradication and Human CapitalDevelopment

The Implementation of Program Planning and Management System (PPM)


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PROJECT PLANNING CYCLEPROJECT PLANNING CYCLE

EvaluationEvaluation

Feasibility StudyFeasibility Study

ImplementationImplementation

Project PlanningProject Planning

Monitoring


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PROGRAMME AND PROJECT MANAGEMENT (PPM) PROGRAMME AND PROJECT MANAGEMENT (PPM) FRAMEWORKFRAMEWORK

Source : Innovation Associates, 2006 13

NID STRUCTURENID STRUCTURE

NITF(National Implementation Task Force)

Minister (Minister in PM’s Department)

NID(National Implementation Directorate)

EPU(Economic Planning Unit)

ICU(Implementation Coordination Unit)

MOE MOHE MOA/AB MOR/RD

PPM PPM PPM PPM

HIPs / BCIC2(High Impact Projects / Bumiputera Commercial & Industrial Community)


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THANK YOUTHANK YOUwww.neac.gov.mywww.neac.gov.my

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P3A Sulaiman Mahbob Developing and Implementing National …siteresources.worldbank.org/INTEAPSUMEASPR/Resources/2576847... · DEVELOPING AND IMPLEMENTING NATIONAL PLANS ... 10 An