FAQ

Cluster II: Economy
Chapter 1: Strengthening Macroeconomic Fundamentals
Q1. What are the macroeconomic issues and challenges?
Last updated : 05 Oct 2021
  • Among the key issues and challenges are:
    1. Low productivity among micro, small and medium enterprises (MSMEs)
    2. Low quality of investment
    3. Slow structural economic transition
    4. Wide development gap between states
    5. Low share of compensation of employees (CE)
    6. Limited gains from global value chain (GVC) participation
    7. Disruption of the medium-term fiscal consolidation
    8. Adverse impact of economic growth on the environment
Q2. What was the labour productivity growth during the Eleventh Plan?
Last updated : 29 Sep 2021
  • Labour productivity grew at 1.1% per annum during the Eleventh Plan, from RM84,114 per worker in 2015 to RM89,025 in 2020. However, growth across all sectors was slower following the impact of the COVID-19 pandemic both in terms of value-added and employment.
Q3. What was the contribution of multifactor productivity (MFP) to real gross domestic product (GDP) growth?
Last updated : 27 Sep 2021
  • The contribution of MFP improved from 23.2% during the Tenth Plan to 39.3% in the Eleventh Plan.
Q4. What are the productivity growth prospects in the Twelfth Plan?
Last updated : 29 Sep 2021
  • Efforts to accelerate productivity growth will continue under the Twelfth Plan, with MFP expected to contribute 40.4% to GDP growth, while labour productivity growth is targeted at 3.6% per annum.

  • Productivity growth will be driven by the implementation of initiatives under the Malaysia Productivity Blueprint and various strategies at the sectoral level in strengthening the ecosystem to increase productivity, including uplifting research, development, commercialisation and innovation (R&D&C&I) activities.
Q5. How did the Malaysian economy perform during the Eleventh Plan?
Last updated : 29 Sep 2021
  • The Malaysian economy was on its targeted growth trajectory during the 2016-2019 period. However, economic growth fell below the target, registering a moderate growth of 2.7% per annum over the Eleventh Plan period as it was significantly weighed down by the impact of the COVID-19 pandemic.

  • This growth was mainly attributed to private expenditure, following the expansion in domestic demand. Private consumption remained resilient, increasing by 4.7% per annum, while private investment increased by 1.2% per annum, despite being affected by the COVID-19 pandemic.

  • Public consumption grew by 3.2% per annum, supported by Government spending on emoluments as well as supplies and services. However, public investment declined by 7.9% per annum partly due to the postponement and reprioritisation of mega projects.
Q6. What are the growth prospects for the Malaysian economy during the Twelfth Plan?
Last updated : 29 Sep 2021
  • GDP is expected to grow between 4.5% and 5.5% per annum, raising gross national income (GNI) per capita from RM42,503 (US$10,111) in 2020 to RM57,882 (US$14,842) in 2025.

  • The private sector will continue to be the key driver of growth. Private consumption is expected to increase supported by higher household income, while private investment is envisaged to rebound.
Q7. How to attract quality investment to spearhead economic growth?
Last updated : 29 Sep 2021
  • The National Investment Aspirations (NIAs) will be the basis for comprehensive reforms in all investment-linked initiatives and policies. NIAs adopt a holistic and targeted approach in an effort to attract more quality investment in line with the goals to create high-paying jobs, expand domestic networks and enhance inclusivity.

  • Among the efforts to be emphasised in the Twelfth Plan include:
    1. Improving the ecosystem and regulations to enable more effective public service delivery and facilitate ease of doing business
    2. Reforming investment institutions
    3. Reviewing existing investment incentives
    4. Promoting technology adoption and providing innovative business ecosystem to attract more domestic direct investment
    5. Focusing on multinational companies that facilitate domestic firms to obtain market access as well as technology and knowledge transfer
    6. Enhancing collaboration between businesses and higher education institutions
Q8. What was the growth performance by sector during the Eleventh Plan?
Last updated : 29 Sep 2021
  • All sectors of the economy, except mining and construction sectors, recorded positive growth. The services and manufacturing sectors continued to be the main impetus for economic growth.

  • The mining sector declined following disruptions in crude oil and natural gas production, while the construction sector contracted marginally, mainly contributed by sluggish construction activities during the Eleventh Plan.
Q9. What are the GDP growth targets by sector during the Twelfth Plan?
Last updated : 29 Sep 2021
  • The average annual GDP growth targets by sector are:
    1. Agriculture sector at 3.8%
    2. Construction sector at 4.2%
    3. Mining sector at 2.6%
    4. Manufacturing sector at 5.7%
    5. Services sector at 5.2%
Q10. What is the strategy to accelerate the structural economic transition?
Last updated : 29 Sep 2021
  • Structural economic transition will be accelerated through the adoption of advanced technologies in all sectors in line with the Fourth Industrial Revolution (4IR), especially in high value-added industries.
Q11. What was the GDP growth performance by state during the Eleventh Plan period? Which states recorded growth above the national average?
Last updated : 30 Sep 2021
  • All states registered positive growth during the Eleventh Plan. The Federal Territory of Kuala Lumpur, Johor and Sarawak remained as major contributors to the national economy in 2020.

  • The Federal Territories as well as seven states, namely Selangor, Pulau Pinang, Kelantan, Perak, Kedah, Johor and Negeri Sembilan recorded economic growth above the national average, which was 2.7% per annum during the Eleventh Plan period. The growth in most of these states was predominantly led by the services and manufacturing sectors.
Q12. How will the socioeconomic development gap between states be narrowed?
Last updated : 05 Oct 2021
  • Among the measures to be undertaken are:
    1. Optimising the potential of each state and region
    2. Strengthening collaboration between the Federal Government, state governments and local authorities, including regional development authorities
    3. Upgrading infrastructure and re-energising economic activities in rural areas
Q13. What was the performance of GDP by income during the Eleventh Plan?
Last updated : 29 Sep 2021
  • GDP at current prices continued to grow by 3.8% per annum from RM1.18 trillion in 2015 to RM1.42 trillion in 2020. The compensation of employees (CE) increased by 5% per annum. The share of CE to GDP also increased from 35% in 2015 to 37.2% in 2020.

  • Gross operating surplus (GOS), which comprises capital owners' income and mixed income, increased by 3.7% per annum. The share of GOS to GDP declined marginally from 60.2% in 2015 to 60.1% in 2020.

  • Mixed income, which represents income from self-employment, unincorporated businesses and others, grew at slower pace at 2.5% per annum. The share of mixed income to GDP decreased slightly from 22.3% in 2015 to 21% in 2020.
Q14. What is the prospect of compensation of employees (CE) during the Twelfth Plan?
Last updated : 29 Sep 2021
  • The share of CE to GDP is targeted to increase from 37.2% in 2020 to 40% in 2025, supported by continuous increase in salaries and wages.
Q15. What are the strategies to ensure the compensation of employees (CE) growth target can be achieved?
Last updated : 27 Sep 2021
  • The strategies are:
    1. Improving employee productivity
    2. Creating more high-income jobs
    3. Improving labour market efficiency
    4. Strengthening trade unions
    5. Reducing dependency on foreign workers
    6. Encouraging more participation of locals in the labour market
Q16. How was the current account position of the balance of payments (BOP) at the end of the Eleventh Plan period?
Last updated : 29 Sep 2021
  • The current account of the BOP recorded a higher surplus, from RM35.2 billion or 3.1% of gross national income (GNI) in 2015 to RM60 billion or 4.3% of GNI in 2020, supported by the expansion in gross exports which outpaced that of gross imports.

  • Gross exports grew by 4.8% per annum driven by manufactured and agriculture goods. Growth in exports of manufactured goods was supported particularly by electrical and electronics (E&E), chemicals, optical and scientific equipment as well as rubber products. The expansion in exports of agriculture was contributed by palm oil and palm-based products.

  • Gross imports expanded by 3% per annum driven by intermediate and consumption goods as well as re-exports. Growth in imports of intermediate goods was in line with the sustained performance of manufactured exports, while imports of consumption goods was attributed to continued demand from households. The expansion in imports for re-exports was contributed by higher re-exports of E&E and petroleum products.
Q17. What are the prospects of the external sector during the Twelfth Plan?
Last updated : 29 Sep 2021
  • Malaysia’s international trade performance is expected to improve in tandem with the expected recovery in global trade and the strengthening of major commodity prices.

  • Gross exports are projected to increase at an average annual rate of 5% supported by higher value-added products and diversification of markets.

  • Gross imports are estimated to expand at an average annual rate of 5.9% in line with strong exports performance and higher domestic investment activities. 

  • The current account of the balance of payments is projected to remain in surplus at RM44 billion or 2.2% of GNI in 2025 supported by higher surplus in the goods account despite the continued deficit in the services account.
Q18. What are the strategies to strengthen trade and balance of payments?
Last updated : 29 Sep 2021
  • Strengthening internationalisation by:
    1. Enhancing collaboration among industry players, government agencies and research institutions
    2. Identifying new high value-added products and markets
    3. Improving the efficiency of trade facilitation at all entry points
    4. Encouraging MSMEs to leverage digital platforms
    5. Boosting competitive advantage of main export industries through adoption of new technologies
    6. Promoting Malaysia as a preferred destination for tourism, education and healthcare
  • Reducing import content by:
    1. Strengthening high value-added resource-based downstream activities and related services
    2. Enhancing product substitution for imports
  • Strengthening trade cooperation by:
    1. Implementing the ASEAN Economic Community (AEC) Blueprint 2025
    2. Participating in new free trade agreements (FTAs) such as the Regional Comprehensive Economic Partnership (RCEP)
Q19. What are the Green Economy Indicators (GEI)?
Last updated : 29 Sep 2021
  • The GEI is a complementary tool to existing economic indicators, which was introduced in 2018. GEI is used to systematically assess the impact of socioeconomic development on the environment.

  • The GEI consists of 79 indicators, including carbon emission, energy intensity, share of renewable energy, forest area, aquaculture production and usage of chemical fertilisers. GEI is published periodically by the Department of Statistics Malaysia (DOSM).
Q20. What is the importance of a balanced development policy?
Last updated : 29 Sep 2021
  • A balanced development policy is crucial to ensure sustainable economic growth, boost resource efficiency and maintain environmental ecosystem resilience.
Q21. How will the green economy be incorporated into macroeconomic planning?
Last updated : 29 Sep 2021
  • A green economy model will be introduced to complement existing macroeconomic planning and impact analysis.

  • The model will determine the linkages between economic growth and the use of natural resources as well as environmental impact.
Q22. What is the Malaysian Wellbeing Index (MyWI)?
Last updated : 29 Sep 2021
  • MyWI is a composite index used to measure the impact of various socioeconomic policies and strategies in improving the wellbeing of the rakyat as well as to guide policymakers in formulating appropriate policies.

  • MyWI’s measurement is divided into economic and social wellbeing sub-composite indices:
    1. The economic wellbeing sub-composite index has five components namely transport, communication, education, income and distribution as well as working life
    2. The social wellbeing sub-composite index has nine components namely culture, family, health, environment, housing, social participation, governance, public safety as well as entertainment and recreation
Q23. Did the wellbeing of the rakyat improve during the Eleventh Plan?
Last updated : 29 Sep 2021
  • The MyWI grew by 0.5% per annum driven by both economic and social wellbeing sub-composite indices.

  • Based on the economic wellbeing sub-composite index, Malaysians benefitted from upgraded transportation infrastructure, improved working life, better quality of education and enhanced communications.

  • The increase in social wellbeing sub-composite index reflected higher social participation as well as improved environment and governance. Nevertheless, family and health subcomponents recorded among the least improvements. Among family and health issues that need to be addressed include divorce rates as well as non-communicable disease cases.
Q24. What are the measures to ensure the Malaysian Wellbeing Index (MyWI) growth target of 1.2% per annum in the Twelfth Plan is achieved?
Last updated : 27 Sep 2021
  • The measures to be undertaken are:
    1. Increasing social participation
    2. Improving quality of the environment
    3. Enhancing transport connectivity
    4. Improving access to healthcare services
    5. Providing more affordable housing
Q25. What are the measures to improve public finance management?
Last updated : 29 Sep 2021
  • The measures to be undertaken are:
    1. Strengthening fiscal governance by institutionalising the fiscal sustainability principles through the introduction of the Fiscal Responsibility Act
    2. Enhancing revenue by exploring new sources, expanding the revenue base, reviewing tax incentives, strengthening overall tax administration and adopting a medium-term revenue strategy
    3. Strengthening the management of expenditure by introducing medium-term budgeting and expenditure frameworks, undertaking public expenditure reviews and improving Government procurement management
Chapter 2: Restoring Growth Momentum
Q1. What are the priority areas in restoring the growth momentum in the Twelfth Plan?
Last updated : 27 Sep 2021
  • The priority areas are:
    1. Boosting productivity growth
    2. Expanding exports markets
    3. Strengthening the effectiveness of financial intermediation ecosystem
    4. Enhancing the role of industrial estates and food production areas
    5. Improving governance and policy
Q2. What are the main challenges that curb the growth momentum?
Last updated : 27 Sep 2021
  • The main challenges are:
    1. Low productivity
    2. Low market access and uncompetitive firms
    3. Rapid changes in the financial landscape
    4. Imbalanced industrial development between regions
    5. Ineffective implementation mechanism and governance
Q3. What are the strategies to boost productivity growth?
Last updated : 27 Sep 2021
  • The strategies are:
    1. Strengthening the planning, evaluation and monitoring mechanism
    2. Moving up the value chain
    3. Strengthening financial capability
    4. Scaling up successful productivity nexus
    5. Scaling up green practices
Q4. What are the strategies to expand export markets?
Last updated : 27 Sep 2021
  • The strategies are:
    1. Improving market efficiency in ensuring the industry has wider market access and achieve higher growth
    2. Empowering industry to compete in the domestic and global markets
    3. Strengthening trade facilitation
Q5. What are the strategies to strengthen the effectiveness of the financial intermediation ecosystem?
Last updated : 27 Sep 2021
  • The strategies are:
    1. Transforming the financial ecosystem to meet future economic needs
    2. Enhancing the resilience and governance of the financial system
    3. Promoting a sustainable and inclusive financial system
Q6. How will the role of industrial estates and food production areas be strengthened?
Last updated : 27 Sep 2021
  • These areas will be made into growth catalyst, by improving its management and development, and providing better financing and incentives.

  • Promoting equitable and balanced industrial development.
Q7. What are the strategies to improve policy and governance?
Last updated : 27 Sep 2021
  • The strategies are:
    1. Strengthening coordination and collaboration
    2. Enhancing institutional roles and functions
    3. Strengthening policies and legislation
Q8. What are the outcomes to be achieved by restoring the growth momentum?
Last updated : 27 Sep 2021
  • The outcomes are:
    1. Increased labour productivity growth
    2. Increased exports
    3. Strengthened effectiveness of the financial intermediation ecosystem
    4. Increased use of industrial areas and food production
    5. Sustainable growth of economic sectors
Chapter 3: Propelling Growth of Strategic and High Impact Industries as well as Micro, Small and Medium Enterprises
Q1. How to boost electrical and electronics (E&E) industry in moving up the value chain?
Last updated : 29 Sep 2021
  • The measures to be undertaken are:
    1. The E&E industry ecosystem will be strengthened to create higher value chain
    2. The E&E industry will move towards higher-value activities across the supply chain with greater automation and advanced technology utilisation
    3. Talent and capability will be developed to meet market demand
    4. Research and development as well as design and development activities will be encouraged to spur growth in the industry
Q2. What is a global services hub?
Last updated : 01 Oct 2021
  • A global services hub offers high-value services that incorporate multiple functions and business services, operating across the globe with full control in the decision-making process, budget and reporting lines.

  • These services include information and communication technology, research and development, finance and accounting, human resources, procurement, legal, marketing, business analytics and shared support services across multiple locations within an organisation. Examples of global services are principal hubs, global business services and operational headquaters.
Q3. How can Malaysia become more competitive as a global services hub?
Last updated : 29 Sep 2021
  • Among the initiatives are:
    1. Instituting clear and supportive policies, regulations and business environment
    2. Enhancing talent and capability of global service providers
    3. Improving digital infrastructure
    4. Enhancing air connectivity to major cities
Q4. What are the measures in strengthening the local aerospace industry?
Last updated : 27 Sep 2021
  • The initiatives are:
    1. Developing a sustainable aerospace ecosystem
    2. Clustering and zoning of aerospace activities for balanced industry growth
    3. Establishing an aerospace digital system
    4. Venturing into sustainable energy
Q5. What are the measures to maximise the potential of the creative industry?
Last updated : 27 Sep 2021
  • Among the measures to be undertaken include:
    1. Developing a holistic ecosystem
    2. Reviewing the creative industry policies and framework
    3. Enhancing talent to fulfil industry needs
    4. Strengthening product development and promotion
Q6. What are the strategies to revive the tourism industry that is badly affected by the COVID-19 pandemic?
Last updated : 29 Sep 2021
  • The strategies are:
    1. Restoring tourist confidence in coming to Malaysia
    2. Ensuring quality products and services
    3. Improving the sustainability of tourism products
    4. Strengthening the Malaysia brand and promotion
    5. Instituting governance reforms
    6. Intensifying domestic tourism
Q7. What are the measures to increase the competitiveness of the halal industry?
Last updated : 29 Sep 2021
  • The measures to be undertaken are:
    1. Uplifting the development of halal talent
    2. Establishing halal professional recognition
    3. Accelerating industry development including Bumiputera participation
    4. Increasing product competitiveness
    5. Positioning Malaysia as a global halal hub
Q8. Why is the biomass industry considered as a strategic industry?
Last updated : 29 Sep 2021
  • Given the vast availability of biomass resources, the biomass industry has the potential to attract high-value investment and create new job opportunities.

  • This industry also adopts the circular economy concept by reusing waste and contributing to the reduction of greenhouse gas emissions.
Q9. What are the initiatives to realise the potential of the biomass industry?
Last updated : 29 Sep 2021
  • The initiatives are:
    1. Formulating a comprehensive biomass policy
    2. Developing local technology through research, development, commercialisation and innovation
    3. Accelerating the development of high value-added products and services
    4. Promoting utilisation of high value-added biomass products
Q10. What are the measures to intensify smart farming activities?
Last updated : 29 Sep 2021
  • The measures to be undertaken are:
    1. Developing a comprehensive smart farming framework
    2. Accelerating the adoption of modern technologies
    3. Improving the dissemination of information on technology and talent development
    4. Enhancing the participation of technology providers
    5. Empowering local communities
Q11. What are the key strategies to boost the capabilities of micro, small and medium enterprises (MSME)?
Last updated : 29 Sep 2021
  • The key strategies are:
    1. Creating innovative and sustainable entrepreneurs
    2. Promoting inclusive participation through MSMEs, cooperatives and agriculture-based associations
    3. Creating a conducive and holistic ecosystem for entrepreneurship
Q12. What are the initiatives to transform micro, small and medium enterprises (MSME) as the new driver of growth?
Last updated : 29 Sep 2021
  • The initiatives are:
    1. Small Entrepreneur Digitalisation Empowerment Program (PUPUK)
    2. The MyAssist MSME Portal
    3. The second chance intervention programme
Chapter 10: Developing Future Talent
Q1. What are the priorities in developing human capital?
Last updated : 29 Sep 2021
  • The priorities are:
    1. Realigning the labor market for inclusive and sustainable growth
    2. Developing future-ready talent
Q2. What are the main issues in developing future talent?
Last updated : 29 Sep 2021
  • The main issues are:
    1. Inequality in compensation and labour participation
    2. Inefficient labor market
    3. Displacement of labour due to the COVID-19 pandemic
    4. Low students outcomes
    5. Lack of coordination and governance
    6. Unconducive ecosystem for innovation
    7. Limited accessibility for students with Special Education Needs and Orang Asli students
Q3. What are the main targets to be achieved?
Last updated : 29 Sep 2021
  • The main targets are:
    1. Compensation of employees (CE) to GDP increases to 40% in 2025
    2. Labour productivity growth per worker of 3.6% in 2021 to 2025
    3. Programme for International Student Assessment (PISA) and Trends in International Mathematics and Science Study (TIMSS) score at par with the international level
    4. Intake of SPM leavers or equivalent to technical and vocational education and training (TVET) programmes at 55%
    5. Graduate employability in higher education institutions and public TVET institutions at 86.7%
Q4. What are the strategies in realigning the labour market?
Last updated : 29 Sep 2021
  • The strategies are:
    1. Promoting equitable compensation of employees (CE)
    2. Increasing labour participation
    3. Strengthening the labour market support system
Q5. How to facilitate local labour force participation?
Last updated : 29 Sep 2021
  • Among the efforts are:
    1. Introducing a specific policy to ensure that foreign workers leave the country after a certain period
    2. Reviewing the multi-tier levy mechanism
    3. Channeling the excess levy collected to the industry
    4. Incentivising the employers to create a more conducive working environment
    5. Introducing suitable social policies to increase the female labour force participation rate
    6. Enhancing the Returning Expert Programme
Q6. What is the labour market information analytics platform?
Last updated : 29 Sep 2021
  • It is a platform that collects and harmonises data obtained from various traditional and emerging data sources for central analytics.

  • It will assist policymakers by allowing in-depth exploration for empirical-based policy decision.

  • This platform will incorporate a predictive model which uses machine learning technology to better understand the dynamics of the labour market.
Q7. How to ensure the wellbeing of gig workers?
Last updated : 29 Sep 2021
  • The efforts to be undertaken are:
    1. Enhancing the social protection scheme
    2. Establishing a training fund to assist gig workers in upgrading their skills and move to a more favourable employment
    3. Applying international best practices to enable these gig workers to work in a safe and conducive environment
Q8. What is Comprehensive Special Model School 9 (K9)?
Last updated : 29 Sep 2021
  • The Comprehensive Special Model School 9 (K9) was introduced to increase the secondary education enrolment among indigenous, Anak Negeri Sabah, Bumiputera Sarawak and remote area communities.

  • Implementation of this strategy aimed to address student dropout issue during transition from Year Six to Form One and also to ensure facilities of Under Enrolled School are used optimally.

  • There are nine K9 schools operating in Malaysia as at 2020.
Q9. What is Comprehensive Special Model School 11 (K11)?
Last updated : 27 Sep 2021
  • K11 is an initiative to provide access to education for 11 years, from Year One to Form Five.

  • It is expected to reduce the dropout rate of students transitioning from Form 3 to Form 4.
Q10. Why did the participation rate of upper secondary students in science, technology, engineering and mathematics (STEM) decrease?
Last updated : 29 Sep 2021
  • The student participation rate in STEM decreased from 49:51 in 2015 to 47:53 in 2020 due to:
    1. Lack of interest in learning STEM-related subjects
    2. Science labs not being fully functional
Q11. What are the efforts to increase upper secondary students participation rate in science, technology, engineering and mathematics (STEM)?
Last updated : 29 Sep 2021
  • The efforts to be undertaken are:
    1. Strengthening STEM education to prepare students to embrace 4IR
    2. Upgrading the science labs
    3. Enhancing teachers training programmes in Inquiry-Based Science Education and Inquiry-Based Mathematics Education
    4. Introducing new and advanced STEM curriculum embedded with digital technologies
Q12. What is graduate employability (GE)?
Last updated : 29 Sep 2021
  • GE refers to graduates who are working, furthering their study, undergoing upskilling training and waiting for job placement within six months after graduation. It also includes graduates from Malaysian Skills Certificate Level 1 to Doctor of Philosophy.

  • The GE rate increased from 76.1% in 2015 to 84.4% in 2020.
Q13. How to ensure higher education institutions (HEIs) remain competitive?
Last updated : 29 Sep 2021
  • The measures to be undertaken are:
    1. Promoting a more flexible higher education system
    2. Diversifying education and training pathways as well as offering transdisciplinary programmes
    3. Encouraging academic staff to pursue professional qualifications or certification programmes
    4. Reviewing, streamlining and formulating relevant policies and legislations to increase the efficiency and effectiveness of HEIs
Q14. How to enhance research, development, commercialisation and innovation (R&D&C&I) activities in higher education institutions?
Last updated : 29 Sep 2021
  • R&D&C&I activities will be enhanced by:
    1. Strengthening collaboration with industry players
    2. Expanding focus areas in R&D&C&I
    3. Providing grants for research universities and Higher Education Centres of Excellence
Q15. What are the main issues in technical and vocational education and training (TVET)?
Last updated : 29 Sep 2021
  • The main issues are:
    1. Technological mismatch and knowledge gap among teaching staff
    2. Equipment in the institution is obsolete
    3. Lack of understanding of the potential of TVET
    4. TVET education is considered a second or last option
    5. TVET institutions are administered by several different ministries
    6. TVET is not governed by any act
    7. Absence of a centralised database
Q16. How to strengthen technical and vocational education and training (TVET) ecosystem?
Last updated : 29 Sep 2021
  • Among the initiatives are:
    1. Enhancing the quality of TVET programmes
    2. Leveraging digital learning
    3. Addressing redundancies in TVET governance
    4. Promoting the TVET brand
    5. Establishing a TVET database
Q17. What are the strategies to improve technical and vocational education and training (TVET) governance?
Last updated : 29 Sep 2021
  • The strategies are:
    1. Establishing a National TVET Council
    2. Leveraging emerging technologies
    3. Introducing ranking system
Q18. How will technical and vocational education and training (TVET) ecosystem improve human capital development?
Last updated : 29 Sep 2021
  • TVET ecosystem will:
    1. Address issues of dependency on foreign workers, low compensation of employees (CE) and student dropouts
    2. Reduce the gap between graduates’ skills and industry expectations
    3. Increase the quality of TVET institutes and encourage more industry collaboration
    4. Upskill communities in the rural areas
    5. Establish TVET as the preferred choice among students
Q19. What is meant by working age population?
Last updated : 29 Oct 2021
  • Working age population refers to those aged between 15 to 64 years. They are classified into two categories, namely within and outside the labour force. In 2020, the total working age population was 22.8 million, of which 15.6 million were in the labour force.
Q20. What is meant by projection of new jobs?
Last updated : 29 Oct 2021
  • Projection of new jobs refers to net jobs creation which is equivalent to new jobs created less the jobs that are no longer available in that period. It is estimated that a total of 1.054 million new jobs will be created in the Twelfth Plan as shown in Table 13 and 14 of the Twelfth Plan document. This figure had been discussed and agreed upon by all stakeholders.
Q21. Why are there individuals outside the labour force?
Last updated : 29 Oct 2021
  • According to the Labour Force Survey, 2020 by the Department of Statistics Malaysia, the number of individuals outside the labour force amounted to 7.2 million. Among the reasons cited for being outside the labour force are household work, family responsibilities, attending schools, furthering studies, disability, lack of interest, retired and old age.
Q22. What are the measures to increase the local workforce?
Last updated : 29 Oct 2021
  • The measures are:
    1. Reducing the numbers of foreign workers
    2. Increasing women labour force participation
    3. Providing more childcare facilities
Chapter 11: Boosting Digitalisation and Advanced Technology
Q1. What is digital economy?
Last updated : 28 Sep 2021
  • Malaysia defines digital economy as economic and social activities that involve the production and use of digital technology by individuals, businesses and government.
Q2. What is Pelan Jalinan Digital Negara (JENDELA)?
Last updated : 29 Sep 2021
  • The National Fiberisation and Connectivity Plan, which was launched in 2019 to improve the provision of digital infrastructure was reviewed and known as JENDELA in 2020.

  • The implementation of JENDELA aims to achieve these targets:
    1. 100% 4G coverage in populated areas
    2. More than 100Mbps speed of mobile broadband
    3. 100% of households subscribing to internet
    4. Nine million premises passed for fixed broadband service
    5. Wider 5G coverage
Q3. What are the strategies to implement digital infrastructure development?
Last updated : 29 Sep 2021
  • Among the strategies are:
    1. Outlining Thrust: Build Enabling Digital Infrastructure in the Malaysian Digital Economy Blueprint
    2. Establishing governance structure to set policy planning, implementation as well as monitoring national 4IR and digitalisation initiatives
    3. Strengthening cooperation between the Federal and state governments
    4. Streamlining regulations and legislation in digital infrastructure development
    5. Introducing digital-by-default laws to facilitate crowding-in private investment and the creation of new network infrastructure
    6. Introducing telecommunication services as a public utility under the Uniform Building By-Laws and other relevant laws
Q4. What are the efforts to expand the sharing economy?
Last updated : 29 Sep 2021
  • The efforts to be undertaken are:
    1. Conducting a study to develop a regulatory framework for the sharing economy including the gig economy
    2. Increasing awareness and involvement of the rakyat in the sharing economy
    3. Providing training programmes for the rural population through partnerships between sharing economy players and technical and vocational education and training (TVET) institutions
    4. Facilitating local industry players to be accredited with international sharing economy standards and certification
Q5. What are the efforts to develop future-ready digital talent in the future?
Last updated : 29 Sep 2021
  • The efforts to be undertaken are:
    1. Driving initiatives related to the development of digital talent through the National Digital Economy and 4IR Council
    2. Improving the education in the early age to nurture future-ready talent
    3. Incorporating the knowledge of emerging technologies into the school curriculum without neglecting the elements of digital accountability, ethics as well as cultural values
    4. Training local talent in the field of digital technology and solutions to reduce dependency on foreign experts
    5. Expanding the Continuous Professional Development Programme to to TVET instructors
    6. Strengthening the upskilling and reskilling efforts for the existing workforce
Q6. What are the focus areas of digital economy?
Last updated : 29 Sep 2021
  • The focus areas are:
    1. Cyber security
    2. Digital content
    3. Financial technology (fintech)
Q7. What are the strategies to strengthen the cyber security aspect?
Last updated : 29 Sep 2021
  • Among the strategies are:
    1. Implementing the Malaysia Cyber Security Strategy to manage cyber threats
    2. Strengthening relevant regulations pertaining to data sharing
    3. Encouraging micro, small and medium enterprises (MSMEs) to adopt cyber security measures and a secure digital environment
    4. Intensifying efforts to inculcate ethical usage of digital platforms
    5. Developing local talent to enhance the expertise in cyber security
Q8. What are the importance of digital economy to the economic development?
Last updated : 29 Sep 2021
  • The importance of the digital economy are:
    1. The digital economy is one of the contributors to the nation's development in becoming the leader of the new industry globally
    2. Rakyat will get more opportunities and benefits
    3. Malaysia will be transformed into a high-income nation driven by digitalisation
    4. Malaysia will be the ASEAN digital centre in cyber security solutions, financial technology and digital content production
Q9. What are the strategies to promote rakyat participation in the digital economy?
Last updated : 29 Sep 2021
  • Among the strategies are:
    1. Expanding eCommerce activities to vulnerable groups
    2. Implementing sharing economy awareness programmes
    3. Ensuring people’s confidence to participate in the digital economy through trusted, secure and ethical digital ecosystem
    4. Improving digital governance by formulating data sharing policies in the decision-making process and protecting data privacy
    5. Enacting a national digital identity policy
    6. Reviewing the Personal Data Protection Act
Q10. How will digitalisation support inclusive development?
Last updated : 29 Sep 2021
  • Among the efforts to be undertaken are:
    1. Improving the broadband quality and the use of digital devices
    2. Ensuring more affordable broadband packages and digital devices
    3. Increasing the digital talent opportunities to reskill and upskill
    4. Strengthening initiatives to create new digital businesses
    5. Implementing activities to promote the sharing economy
Q11. What are the initiatives to strengthen research, development, commercialisation and innovation (R&D&C&I) capacities and capabilities?
Last updated : 01 Oct 2021
  • Among the initiatives are:
    1. Streamlining national science, technology and innovation priority areas
    2. Strengthening R&D&C&I funding
    3. Translating research and development output as well as intellectual property into high added value products
Q12. What are the main issues in embracing 4IR?
Last updated : 29 Sep 2021
  • The main issues are:
    1. Lack of innovation-led mindset and resistance to change
    2. Inequitable access to quality digital connectivity and technology infrastructure
    3. Inadequate 4IR-ready talent to address current and future needs
    4. Fragmented governance across various ministries and agencies
Q13. What are the efforts to capitalise on advanced technology potential?
Last updated : 29 Sep 2021
  • The efforts to be undertaken are:
    1. Seizing economic growth opportunities arising from the 4IR
    2. Creating a conducive ecosystem to harness the potential of the 4IR
    3. Establishing trust and building an inclusive digital society
Q14. Why is enhancing digital connectivity important?
Last updated : 28 Sep 2021
  • Digital connectivity, be it wireless, wired or satellite technologies, is crucial to support the modern way of life. It will, among others, enable remote working and learning, as well as eCommerce, particularly related to the new norm.

  • High quality, efficient and affordable digital connectivity as well as enabling regulatory environments will facilitate businesses, thus improving the economy and enhancing quality of life.
Q15. What are the strategies to align research, development, commercialisation and innovation (R&D&C&I) activities towards commercialisation?
Last updated : 29 Sep 2021
  • Among the strategies are:
    1. Aiming 50% of research funding on experimental development with high commercialisation potential
    2. Ensuring R&D&C&I activities are in line with national priorities with the establishment of the Research Management Unit (RMU)
    3. Establishing a one-stop centre for technology commercialisation and transfer to scale up home-grown technologies
    4. Increasing investment by the private sector in R&D&C&I and access to alternative financing
    5. Establishing an endowment fund to source funds from industry, matching grants, crowdfunding and waqf
    6. Creating more local talent as technology developers and creators
Chapter 12: Enhancing Efficiency of Transport and Logistics Infrastructure
Q1. What are the key issues in increasing the modal share for public transport?
Last updated : 29 Sep 2021
  • The key issues are:
    1. Inadequate first- and last-mile connectivity
    2. Low On Time Performance (OTP) and longer journey time
    3. Absence of holistic travel demand management in public transport services
    4. Reluctance of the public to change behaviour from using private vehicles to public transport
Q2. What are the challenges in establishing reliable transport and logistics services?
Last updated : 29 Sep 2021
  • The challenges are:
    1. Poor last-mile connectivity to major ports
    2. Inadequate facilities at ports and airports
    3. Absence of a centralised database
    4. Low utilisation of rail services for cargo movement
    5. Inefficient cargo clearance procedures
    6. Inconsistent warehouse governance
    7. Weak maritime economic governance
Q3. What are the key strategies to encourage the usage of public transport as the first choice of travel?
Last updated : 29 Sep 2021
  • Among the key strategies are:
    1. Developing an integrated transportation network and journey planner
    2. Introducing an alternative community based public transport system
    3. Extending the dynamic fares for Electric Train Services (ETS) and unlimited passes for rail and bus passengers
    4. Restricting parking areas and imposing higher parking charges on private vehicles in areas with good public transport
      5. connectivity
Q4. What are the initiatives to increase the efficiency of the transport and logistics sector?
Last updated : 29 Sep 2021
  • Among the initiatives are:
    1. Enhancing the capacity of ports infrastructure and services
    2. Upgrading the rail networks and access roads to improve the last-mile connectivity to main ports
    3. Encouraging the service providers to adopt multimodal cargo movement approach
    4. Upgrading the outdated systems and obsolete equipment for the aviation sector
    5. Implementing preventive maintenance using advanced materials and innovative technology for selected roads and bridges
Q5. How will the role of the National Logistics Task Force (NLTF) be strengthened?
Last updated : 28 Sep 2021
  • Strengthening the capacity and capability of NLTF.
  • Establishing key performance indicators for NLTF.
  • Encouraging cooperation between agencies and industry players.
Q6. What are the main initiatives to transform the logistics ecosystem?
Last updated : 29 Sep 2021
  • Among the main initiatives are:
    1. Centralising the planning and development of logistics hubs
    2. Accelerating the adoption of technology
    3. Encouraging mergers and acquisitions among industry players
    4. Establishing single border agency for trade facilitation
    5. Introducing national regulatory framework for warehousing and the maritime economy
Page Viewed : 47762