12th Malaysia Plan: Transforming in tandem with rebuilding the nations economy

THE economic landscape is undergoing significant disruption globally, and is becoming more complex with the rise of smart technologies, game-changing business models, consumer empowerment and shifting regulatory landscapes. The traditional business model is now increasingly challenged by market liberalisation, decarbonisation, decentralisation and digitalisation.

In the last 18 months since the worldwide pandemic started, we have seen many challenges being surmounted by the government and people to take the economy forward aimed at boosting the level of economic confidence. The most urgent task is to plan and strategize post-pandemic economic growth to bring Malaysia out of the recession caused by the pandemic and to move towards the Industrial Revolution 4.0, which is shaping the world economy. Year 2020 marked the end of Vision 2020 and the Eleventh Malaysia Plan, 2016-2020 period. As a continuation, a post-2020 development plan with a clear strategic direction will be formulated to set the way forward for national development agenda along with the implementation framework over the next decade. This is to ensure an inclusive and meaningful socioeconomic development towards a more prosperous society. The Federal Government is committed to improve the quality of life of all Malaysians with its ‘Shared Prosperity’ vision starting with the 12th Malaysia Plan 2021-2015 (12MP) so that no Malaysian is left behind in the development of the country.

The government has identified technology and digitalisation adoption as key priorities under the 12MP to transform Malaysia into a prosperous, inclusive and sustainable nation. In this light, the NAZA Group is set to undergo its own transformation, sharpening its focus through strategic divestitures and embark upon NAZA2.0 Transformation Plan (NAZA2.0). This strategic impulse aims to achieve a robust structure for the Group in the next five years and to identify a higher-purpose mission. NAZA2.0 will look at “centralised-focus” structure across four verticals – Property and Construction, Asset Management, Niche & Premium Automotive and Other Businesses.

As the NAZA Group progresses in the transformation, we learned quickly, the automotive industry must meet consumer demands for a digitally enhanced seamless vehicle buying experience. Adoption of digital technologies and cognitive business practices will help reshape sales systems, and supply chain logistics. Another important pillar in 12MP is the transition to a green economy to support the sustainable development agenda and turning Malaysia into a low-carbon country. In line with 12MP, the Government will have to tackle decarbonisation issues, the question of fuel subsidies, and a new automotive policy to encourage the uptake of electric vehicles (EVs). Malaysia’s policies on decarbonisation started in 1992 with the government’s participation in the United Nations Conference on Sustainable Development in Rio de Janeiro, and Malaysia’s commitment to the United Nations Framework Convention on Climate Change (UNFCCC) in the year 2000.

In effecting the shift towards Malaysia’s green economy, NAZA is currently open for collaboration with partners to introduce hybrid or electric vehicles in line with the future direction of NAZA2.0. This initiative promotes clean and energy efficient transportation for the country, in line with the National Policy on Green Technology. Parallels in businesses provide opportunities to deploy new technology and innovation to the market, while supporting the delivery of the country’s national imperatives.

The 12MP also emphasises on the Bumiputera Empowerment Agenda focusing on radical strategies and initiatives in order to bring about a quantum leap in the Bumiputera economic landscape. In its 45 years of establishment and in recent years, as part of NAZA2.0 Transformation Plan, the NAZA Group has played an active role in advancing the status of Bumiputera companies, as part of the overall Bumiputera Agenda. The Group will continue to support Bumiputera entrepreneurs in line with the Government's focus and calls, to empower and strengthen the Bumiputera economy in Malaysia. We also have a comprehensive plan in place to remain relevant and sustainable as a Bumiputera conglomerate.

On the property development front where the NAZA Group also has a formidable presence in the property industry, there is a pressing need to address three key challenges to weather past the post-pandemic era - sustainability, innovation and technology. The pandemic has also made a significant change for the property industry by pushing developers to rethink their strategies in terms of engaging with potential buyers remotely with the usage of digital technology. The Government’s sustainable development agenda for the 12MP augurs well with NAZA Group’s transformation exercise as it transitions into being better as Malaysia’s esteemed privately owned conglomerate.

Sm Nasarudin Sm Nasimuddin

Naza Corporation Holdings