Overview of ETP

Launched on 25 September, 2010, the Economic Transformation Programme (ETP) was formulated as part of Malaysia's National Transformation Programme. Its goal is to elevate the country to developed-nation status by 2020, targeting GNI per capita of US$15,000. This will be achieved by attracting US$444 billion in investments which will, in turn, create 3.3 million new jobs. 

The ETP's targets for 2020 will be achieved through the implementation of 12 National Key Economic Areas (NKEAs), representing economic sectors which account for significant contributions to GNI. The programme is also centred on raising Malaysia's competitiveness through the implementation of six Strategic Reform Initiatives (SRIs). The SRIs comprise policies which strengthen the country's commercial environment to ensure Malaysian companies are globally competitive. 

In arriving at the high-income threshold of US$15,000, the Government followed the World Bank’s threshold for a high-income economy of US$12,476 and factored in its published historical global inflation rate of 2% until 2020.

The ETP represents the catalyst for economic growth and investments needed for Malaysia to achieve high-income status by 2020. The Government's role in the ETP is that of facilitator, coordinating, tracking and monitoring the programme. While the Government will prioritise its policies and spending for the ETP, the bulk of investments, targeted at 92% by 2020, are to be financed by the private sector. The private sector, therefore, has been placed in the driver's seat in the implementation of the ETP
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EPP 3: Positioning Malaysia as a World-class Data Centre Hub


Data centres (DCs) are specialised secured facilities that house sophisticated computer systems and

telecommunication equipment and have become a key structural component for an enterprise’s IT

infrastructure ecosystem. They support the day-to-day operations of applications and data processing as

well as disaster recovery. Apart from creating high-value jobs in the IT ecosystem, DCs also create a positive

spill-over effect to other industries (i.e. telecommunications, IT hardware and software and construction



The DC industry in Asia Pacific is expected to grow by 16.3 percent annually, reaching RM10.9 billion by 2014.


To develop Malaysia as a world-class DC hub, industry and Government will work to coordinate sales

efforts. We will also improve the credibility of Malaysia as a DC hub through benchmarking services and

improving privacy standards and develop human capital to capitalise on higher-value managed services and

increase the number of certified companies.


EPP 2: Building Globally Competitive Outsourcers

The global and regional outsourcing industry is forecast to grow robustly over the next few years, with

the Asia Pacific market expected to expand by 12 percent per year between 2009 and 2014. Malaysia
currently captures only 3.9 percent of the Asia (excluding Japan) market, roughly RM3.5 billion per
Between 2003 and 2008, the Malaysian outsourcing industry grew by 9 percent, a healthy growth rate but
lower than the regional average and significantly slower than regional leaders, such as India (27 percent)
and China (16 percent). Malaysian outsourcing companies lag their regional peers because they are small
and fragmented, lack niche focus areas, are over reliant on the domestic market and lack a credible track

The most competitive outsourcing markets globally have one thing in common: they have provided the base

for the emergence of globally-competitive companies within outsourcing, such as India’s Infosys, TCS and
Wipro. Starting from a strong domestic base, these companies achieved the scale, awareness and credibility
to become the largest and most respected companies around the world.
Our aspiration is to create at least two globally-competitive outsourcing companies and, in the process put
in place the policy incentives and marketing initiatives to allow smaller companies to flourish.

We will work on three fronts to achieve our aspiration. We will reach critical scale by setting up a
Government-shared services centre through a public-private partnership and then use policy to grow
industry leaders and encourage consolidation. Simultaneously we will work to build global awareness and
ensure that customers in target markets are aware of the skills and capabilities of Malaysian outsourcers.
To enhance industry capability and credibility, especially overseas, we will raise industry standards and
foster greater competitiveness in order to challenge established foreign competitors