What Are NKRAs?

GTP 2.0 Improving Rural Development

There are two main focus for the RD NKRA in the GTP 2.0: the first is to complete the infrastructure work begun in the GTP 1.0, and the second is to enhance the economy of the rural areas to ensure that rural rakyat enjoy similar opportunities as those in the city.

In so doing, the hope of the RD NKRA is that rural areas will provide the rakyat with attractive incomes and amenities, thereby discouraging diaspora and retain youth in the kampungs. The long-term goal is to raise the overall income level of all rural areas thereby contributing to Malaysia’s efforts of transforming into a high-income nation.


  • Completing the Development of Rural Basic Infrastructure

    Completing the Development of Rural Basic Infrastructure

    • A budget setback in the GTP 1.0 meant that only 75% of its targeted goals were achieved. The need for adequate infrastructure is as important today as it was at the start of the GTP 1.0 and hence the RD NKRA is committed to deliver on its initial promises to the rural rakyat. Meanwhile, a new component – namely the maintenance of infrastructure – will also be established under this programme.

    • The initiatives are and their respective goals are detailed in the table below:

        Coverage in 2009 By end-2012 By 2015
      Improved roads
      Peninsular Malaysia 91% 98.6% 99.5%
      Sabah 82% 87% 95%
      Sarawak 82% 86% 95%
      Access to clean or treated water
      Peninsular Malaysia 88% 98.6% 99%
      Sabah 57% 79% 95%
      Sarawak 57% 90% 95%
      24 hour electricity
      Peninsular Malaysia 99% 99.8% 99.9%
      Sabah 77% 88.7% 95%
      Sarawak 67% 82.7% 95%
    • Supporting initiatives will also be introduced in the GTP 2.0 to maintain and ensure adequate delivery of the above utilities. The initiatives include:

      • Enhancing water supply distribution and treatment system: Upgrades will be made to the existing system to ensure that the expansion of water delivery will not overly tax the existing supply.

      • Rural electrification programme: Schools in rural areas will be connected to the main grid to reduce their dependence on diesel generators thereby lessening their fuel cost and ensuring that there is a more stable supply of electricity. Hybrid systems will also be used to deliver electricity to rural households.

      • Maintenance of infrastructure: This initiative aims to monitor and maintain roads and power generators in rural areas.
  • Enhancing Rural Areas via the 21st Century Village (CV) Programme

    Enhancing Rural Areas via the 21st Century Village (CV) Programme

    • The ultimate goal for the 21CV programme is to encourage youths to remain in kampungs, and to work and start businesses there. The overall target of the programme is to create 132 21CVs. Economic activities in those villages will cover a number of economic subsectors including agriculture, tourism, plantations and cottage industries. An estimated 37,800 households or 189,000 persons are expected to benefit from this programme.

    • The initiatives implemented under this programme are:

      • Establishing state-driven modern integrated farms: This initiative seeks to develop sustainable economic activities while providing gainful employment and housing for the poor in rural areas. It will also ensure stable monthly remuneration for participants of this programme. Development will commence in 2012 and be completed by 2013. This initiative aims to start 39 farms by 2015 and also targets to harvest and market the produce annually.

      • Private sector-drive fruit and vegetable farms: These farms will be developed on state or federal land in rural areas, and will be linked to anchor companies listed under EPP 7: Premium Fresh Fruit and Vegetables contained within the ETP’s Agriculture NKEA. Around 15 villages will be developed using this approach.

      • Enhancing village co-operatives: Under this initiative, the Government aims to expand the operations of industries and factories that currently exist in rural areas. Some villages and kampungs currently possess core competencies in agriculture, fisheries, eco-tourism or in cottage industry. Many of these are still small-scale businesses with potential to grow and expand. This initiative leverages the core competencies and existing business ventures and looks to further develop them.
  • Driving Youth Entrepreneurs

    Driving Youth Entrepreneurs

    • The RD NKRA has identified the youth segment as the future of the development of rural areas, and has thus implemented a programme under the GTP 2.0 to encourage retention of young talent there. The first phase of the programme sees the implementation of an annual business plan competition for youth.

    • The goal of this competition is to encourage Malaysian youth to develop businesses in rural areas, and winners will be given financial assistance to carry out their plan in rural communities. The initiative aims to implement 39 rural-based businesses arising from the competition by 2015.

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