Economic Planning Unit Prime Minister’s Department MALAYSIA 7 September 2006

1. FIRST POLICY CONSULTATION FORUM OF THE SEOUL INITIATIVE ON GREEN GROWTH ‘PROMOTING SUSTAINABLE INFRASTRUCTURE DEVELOPMENT’ 6-8 SEPTEMBER 2006 SESSION VI INFRASTRUCTURE AND UTILITIES DEVELOPMENT IN MALAYSIA Economic Planning Unit Prime Minister’s Department MALAYSIA 7 September 2006

2. PRESENTATION OUTLINE • Malaysia – Basic Statistics • Overview of Economic Development in Malaysia - Development Philosophy - Major Economic Policies • Current Status of Infrastructure and Utility Facilities • Strategies For Infrastructure and Utilities Development under the Ninth Malaysia Plan (2006 – 2010) • Challenges OUTLINE

3. 3

4. Malaysia: Basic Statistics • Land Area: 330,252 sq.km 2006* 27.2 19,484 5,145 11.5 11.1 3.5 Total Population ( million) GNIPer Capita RM USD Labour Force (million) Employment (million) Unemployment rate (%) Main Exports: Electrical and electronic products, textiles, clothings and footwear, crude oil and palm oil * Data as at May 2006 MALAYSIA : BACKGROUND

5. Development Philosophy through a MIXED ECONOMIC SYSTEM of free enterprise but with active government support and direction The GOVERNMENT provides the broad thrusts and sets direction for the whole economy, and ensures the achievements of socio-economic goals The PRIVATE SECTOR is free to operate and given appropriate policy, institutional and infrastructural support. DEVELOPMENT PHILOSOPHY

6. The Malaysia Incorporated Policy . . . • Launched in 1983 ~ marked the introduction of structured public-private sector collaboration • Stresses the importance of cooperation between public and private sectors • Government began instituting major policy reforms ~ economic liberalization & deregulation; improving investment policies & incentives; and administrative & institutional reforms to upgrade efficiency of the public sector • Establishment of several consultative panels / dialogues comprising members from the public and private sector DEVELOPMENT PHILOSOPHY

7. THE NATIONAL MISSION 2006-2020 Vision 2020 Major Economic Policies Total Development Enhancing Nation’s Capability ~ competitiveness, unity, distribution & quality of life Building a Resilient & Competitive Nation : To raise quality of development & generate high sustainable growth National Vision Policy (NVP) OPP3 (2001-2010) National Development Policy (NDP) Balanced Development : To establish a more united & just society OPP2 (1991-2000) New Economic Policy (NEP) Growth with Equity : To eradicate poverty & restructure of society OPP1 (1971-1990) Post- independence 1957-70 • Laissez-faire / export-oriented • Economic and rural development 7

8. Current Status of Infrastructure and Utility Facilities (2006) 2006* Unit • Roads • All paved roads • Unpaved roads • Railway • Urban rail (LRT) • Heavy rail (KTMB) • Ports • No. of ports • Port capacity • Airports • No of international airports • No of domestic airports • No. of Passengers handled km km km km no mil tonnes no no mil 59,816 18,440 122 1,668 24 443.2 5 16 45 ACHIEVEMENTS

9. Current Status of Infrastructure and Utility Facilities (2006) • Water Supply • Production Capacity • Water Supply Coverage • Urban • Rural • Non-revenue Water • Sewerage Services • Connected and • Septic Tanks • Electricity Coverage • Urban • Rural 14,312 95.2 97.9 92.6 35.3 16.1 100 93 mld % of population % Pop. Served (mil) % of population Unit 2006* ACHIEVEMENTS *as at June 2006

10. DEVELOPMENT STRATEGIES FOR INFRASTRUCTURE AND UTILITIES UNDER THE NINTH MALAYSIA PLAN, (2006-2010) • Measures towards eco-efficiency and sustainable development • Implementation of infrastructure and utilities projects are subjected to Environmental Impact Assessment (EIA) and execution of Environmental Management Plan (EMP) • - toaccess possible environmental impact • - to consider necessary mitigation measures that need to be undertaken • Participatory approach • - involvement of stakeholders including public and NGOs in planning and implementation of projects • Appropriate guidelines and best practices are applied in decision making and implementation • Green Building approach

11. Strategies…. Specific Sub-sectors Roads • Increase accessibility to especially less developed areas • Enhance road safety - improve physical aspects of roads • - stringent enforcement of regulations • Conducting EIA Studies for environmentally sensitive zones - Social impact assessment conducted in mountainous areas and areas adjacent to primary forest reserves Urban Transport • Provision of an integrated, efficient public transport system • Encourage a modal shift from private vehicles to public transport - reduce traffic congestion and air pollution • National Public Transport Commission to oversee holistic transport development.

12. Rail Transport Strategies…. • Upgrade rail infrastructure including double-tracking and electrification: - Enhance operational efficiency • Promote rail transport for freight and as alternative mode for inter-city travel - provide fast and reliable service - reduce pollution and use of fuel Ports • Enhance efficiency and productivity of ports and port-related services • Upgrade navigation equipment - enhance safety of navigation - reduce environmental pollution Airports • Enhance airport facilities and services • Improve competency in air traffic control, airline efficiency and productivity - reduce wastage of fuel and pollution with efficient handling

13. Strategies…. Water Supply • Ensure adequate and sustainable supply of clean water - conserve quantity and improve quality - identify potential water resources without neglecting the environment and natural resources • Water Demand Management Initiatives • Promote wise use of water - Water conservation and awareness campaign • Promote Integrated Water Resources Management (IWRM) Sewerage • Expansion of sewerage services • Rehabilitation and upgrade Sewerage Treatment Plants to improve efficiency. - ensure effluent discharged into receiving water bodies comply with environmental standards of DOE

14. Energy Strategies…. • Enhance sustainable development of the energy sector through: • Reducing high dependence on petroleum products by increasing the use of alternative fuels (such as NGV, biofuels, solar hydrogen fuel and fuel cell) - Promoting greater gas (NGV) utilization in commercial and transport sectors • Ensuring cost-effective and reliable supply of electricity • Promote greater utilisation of RE for power generation and by industries • Implementing Small Renewable Energy Programme (SREP) • Promoting efficient utilization of energy especially in the transport, industrial and commercial sectors as well as in Government buildings (e.g Low Energy office in MEWC in Putrajaya) • Ehancing awareness on EE

15. Strategies…. Solid Waste • National Strategic Plan For Solid Waste Management (NSPSWM): • Construction of new sanitary landfills and transfer stations with integrated material recovery facilities • Promoting reuse, encourage waste reduction and recycling (3RS) of waste • Promote greater use of environment friendly materials such as bio-plastics • Increasing awareness • To educate the public on the need to have proper waste management facilities and benefits of practicing sustainable consumption

16. CHALLENGES FOR SUSTAINABLE DEVELOPMENT • Accessibility verses environmental damage • Public verses Private Transportation • Conservation verses Development • Consumption verses Disposal • Promotion of Renewable Energy (RE) and Efficient Energy (EE) • Adequate Budget Allocation CHALLENGES

17. THANK YOU TERIMA KASIH KAMSA HAMNIDA