Economic Transformation Programme (ETP): A Roadmap for Malaysia

Meta Data

Draft:

Revision of previous policy?:

Draft Year:

2010

Effective Start Year:

2010

Scope:

National

Document Type:

Programme

Economic Sector:

Energy, Power, Multi-Sector

Energy Types:

All, Oil, Power, Gas, Renewable, Solar, Other

Issued by:

Performance Management and Delivery Unit, (PEMANDU), Prime Minister's Department

Notes:

Unofficial source

Source:

United States Documents

File:

Economic Transformation Programme (ETP)

Overall Summary:

The Economic Transformation Programme (ETP), along with the Government Transformation Programme (GTP) serves as a means to achieve economic development towards 2020. The ETP builds upon the policy directions, strategies and programmes of the 10th Malaysia Plan and aims to achieve 12 National Key Development Areas and 6 Strategic Reforms Initiatives. In doing so, it will increase the national revenues and help achieve the Government Transformation Programme (GTP). The 12 NKEAs selected are: Oil, Gas and Energy; Palm Oil; Financial Services; Tourism; Business Services; Electronics and Electrical; Wholesale and Retail; Education; Healthcare; Communications Content and Infrastructure; Agriculture; and Greater Kuala Lumpur/Klang Valley.

Access

Energy service quality targets:

KeTTHA will develop an accreditation framework for energy services companies to improve and regulate the quality of energy services companies in 2011.

Consumer subsidies:

Consumers will receive rebates on particular appliances that account for the biggest part of household electricity bills[...] This initiative will offer a 7 to 10 percent rebate on selected appliance models and for a limited number of units. These targeted appliances are refrigerators, air conditioners and light bulbs.

Efficiency

EE priorities:

[W]e will ensure that we develop an energy efficient, diversified and sustainable energy mix to power our future.---the Malaysian Government is taking decisive steps to ensure that our energy future is green, sustainable and diverse and that Malaysia uses energy in the most efficient manner.

EE targets:

Implement best practices in efficient energy use to reduce Malaysia’s consumption by 10 to 15 percent versus the “business as usual” scenario and ensure that Malaysian businesses and households are able to control their energy costs.--- [T]he Ministry of Energy, Green Technology and Water (KeTTHA) will set efficiency targets stipulating that all ministries must reduce electricity and water consumption by 10 percent per year from 2011 to 2013. Second, KeTTHA will set the target across ministries that 50 percent of the goods and services purchased by the public sector should be eco-labelled by 2020.

EE lighting and mechanical system standards:

The Government will need to replace the current environmental regulation enacted for energy conservation in lighting that bans incandescent lighting by 2015 with a specific directive that only SSL lighting can be utilised (rather than fluorescent lighting) by 2020.

EE building standards:

Regulate better insulation for new buildings and renovated buildings. [...] better insulated properties will be ensured by [...] (2) enforcement measures through the approval process of building plans.

EE financial incentives:

[T]he Government will make a move to gradually rationalise the subsidy on electricity to create an incentive for both industries and consumers to adopt more energy-efficient practices.---Stimulate sales of energy-efficient appliances. Consumers will receive rebates on particular appliances that account for the biggest part of household electricity bills[...] This initiative will offer a 7 to 10 percent rebate on selected appliance models and fora limited number of units. These targeted appliances are refrigerators, air conditioners and light bulbs.

EE public awareness/promotional programmes:

[T]he Government will launch large-scale education campaigns to help industries and consumers identify and apply energy-efficient practices.---Regulate better insulation for new buildings and renovated buildings. [...] better insulated properties will be ensured by (1) improving customer awareness via large-scale awareness campaigns[...].---Stimulate the sales of energy-efficient vehicles by offering rebates to encourage adoption of hybrid or electric vehicles. [...] The Government will promote the use of hybrid vehicles by reducing the import tax on these vehicles.

Renewable Energy

RE priorities:

Building Up Solar Power Capacity.---Tapping Malaysia’s hydroelectricity potential.---To address the power needs of the industry, we will allocate priority for hydroelectric power to the solar industry rather than other energy-intensive industries like aluminium and steel.

Environment

Energy environmental priorities:

Pricing

Energy pricing:

Government will work with TNB to make co-generation economically viable. This initiative [...] will require a review of the TNB tariff on three fronts: (1) increasing the overall tariff by rationalising current subsidies to create a greater urge for more energy efficiency, (2) decreasing the stand-by tariff to encourage more users to use this option and lastly, (3) increasing the buy-back tariff to make it more attractive for industries to co-generate electricity and sell the excess energy back to TNB.

Energy Supply and Infrastructure

Infrastructure development priorities:

Enhancing downstream growth: • EPP 4: Building a regional oil storage and trading hub.---To address the power needs of the industry, we will allocate priority for hydroelectric power to the solar industry rather than other energy-intensive industries like aluminium and steel.

Regional integration priorities:

By 2020 [...] We will also develop a strong regional oil field services and equipment hub and a stronger presence in the regional midstream logistics and downstream markets.---Enhancing downstream growth: • EPP 4: Building a regional oil storage and trading hub.

Trade

Import taxes and fee exemptions:

Stimulate the sales of energy-efficient vehicles by offering rebates to encourage adoption of hybrid or electric vehicles. [...] The Government will promote the use of hybrid vehicles by reducing the import tax on these vehicles.

Investment

Investment climate development:

Making Malaysia the number one Asian hub for oil field services: [...] positioning Malaysia as an OFSE hub for Asia, leveraging the nation’s strategic location at the centre of the Asia Pacific region and adjacent to international shipping lanes. • EPP 6: Attracting MNCs to bring a sizeable share of their global operations to Malaysia; [...] • EPP 8: Developing engineering, procurement and installation capabilities and capacity through strategic partnerships and joint ventures.

Public Private Partnerships:

Making Malaysia the number one Asian hub for oil field services: • EPP 8: Developing engineering, procurement and installation capabilities and capacity through strategic partnerships and joint ventures.

Governance

National policy structure:

PETRONAS will develop the gas network code with the help of the Energy Commission before the end of 2010.---A Government body called Oil Field Services Unit (OFSU) will be set up, tasked with the responsibility to oversee industry growth and development.---The Government will need to replace the current environmental regulation enacted for energy conservation in lighting that bans incandescent lighting by 2015 with a specific directive that only SSL lighting can be utilised (rather than fluorescent lighting) by 2020.

Technology

Advanced fuel extraction technology:

Sustaining oil and gas production: • EPP 1: Rejuvenating existing fields through enhanced oil recovery; • EPP 2: Developing small fields through innovative solutions; and • EPP 3: Intensifying exploration activities.

R&D energy efficiency:

Technologies such as instant pressure drop will be explored in milling to reduce energy costs in the drying process and improve recovery.

Technology collaboration with other member States:

Industrialization support:

To address the power needs of the industry, we will allocate priority for hydroelectric power to the solar industry rather than other energy-intensive industries like aluminium and steel.