The Star Online > News > Latest
Monday April 18, 2005

26 projects under RM9 to be implemented immediately

News Update by The Star Newsdesk

PUTRAJAYA: Twenty-six development projects originally slotted for the Ninth Malaysia Plan have been brought forward to reactivate the sluggish construction industry.

The projects that will cost the government RM2.4bil will start from the middle of this year.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said with the move the government hoped to stimulate the industry that had contracted by 1.9% last year and the trend was expected to continue this year.

"All these projects will be implemented through open tender to ensure competitive pricing.

“To ensure that more contractors benefit from this move, the bigger projects will be divided into packages that will in turn be tendered out separately,” he said when opening the 2006 Budget Consultation at the Finance Ministry Monday.

Abdullah, who is the Finance Minister, said the use of imported materials would not be allowed for the projects and contractors that used the industrialised building system would be given priority.

"The implementation of these projects in a more effective and controlled manner will allow the government to continue with its fiscal consolidation at sustainable deficit,” he added.

Selasa, 19 April 2005

RMK-9 galak Melayu berniaga di bandar besar
Oleh Ismail Mat dan Manzaidi Mohd Amin


JELI: Kerajaan akan memberi tumpuan khusus untuk menarik lebih ramai pengusaha Melayu menceburi bidang perniagaan di bandar besar, terutama di Kuala Lumpur mengikut Rancangan Malaysia Kesembilan (RMK-9).



Menteri di Jabatan Perdana Menteri, Datuk Mustapa Mohamed, berkata mereka akan digalakkan sama ada sebagai peniaga atau memiliki hartanah.

“Kerajaan amat tidak berpuas hati dengan bilangan yang ada sekarang,” katanya kepada pemberita selepas merasmikan konvensyen Program Usahawan Muda Maktab Rendah Sains Mara (MRSM) Semenanjung Malaysia di MRSM di sini, semalam.

Beliau berkata, bilangan orang Melayu di bandar sekarang semakin kecil berpunca beberapa masalah termasuk tidak mampu menghadapi persaingan terdesak dan menjual tanah milik mereka kepada bukan Melayu.

Bagi orang Melayu yang mendapat kontrak kerajaan pula, sudah menjualnya kepada orang asing dan ada segelintir yang bersikap sambil lewa menyebabkan mereka kerugian, katanya.

Mustapa yang juga Ahli Parlimen Jeli berkata, bagi mengatasinya, kerajaan akan menubuhkan satu badan khas untuk membimbing mereka bagi menggantikan peranan Perbadanan Pembangunan bandar (UDA) yang kini diswastakan.

Selain itu, beliau berkata, kerajaan menggariskan tiga faktor penting untuk dilaksanakan, antara lain melatih mereka agar menjadi pengusaha yang sanggup menghadapi cabaran, berakhlak, amanah, mempunyai pengurusan yang baik dan berkeyakinan.

Beliau berkata, satu pasukan pemantau juga akan ditubuhkan bagi mengawasinya selain berusaha memantapkan institusi yang ada seperti Mara yang terbukti memainkan peranan penting memartabatkan orang Melayu dalam pendidikan dan keusahawanan.

Katanya, ini penting untuk meningkatkan pegangan harta orang Melayu dalam negara ini yang kini hanya 18.7 peratus.

Sementara itu, Ketua Pengarah Mara, Datuk Zamani Mohd Noor ketika berucap pada majlis itu, berkata salah satu punca ramai graduan Melayu kini menganggur ialah disebabkan kurangnya orang Melayu menjadi tauke kepada industri besar.

Beliau mahu penuntut di MRSM berusaha dan belajar bersungguh-sungguh agar mereka dapat muncul sebagai usahawan yang berjaya dan dapat membantu bangsa sendiri termasuk menyediakan peluang pekerjaan.

The Star Online > News
Monday April 18, 2005
RM550mil needed to fix landslip prone spots

By MUGUNTAN VANAR
KOTA KINABALU: At least RM550mil is needed to rehabilitate 1,303 landslip prone spots along the highways in peninsular Malaysia, said Works Minister Datuk Seri S. Samy Vellu.

Among those, 20 are described as critical and include the federal roads in Cameron Highlands, Langkawi, Penang and Kelantan.

Samy Vellu said the Public Works Department’s (PWD) slope management unit had identified 464 high-risk slopes on the North-South Expressway.

Another 698 spots were identified on federal roads and 141 on the Kuala Lumpur-Karak Highway.

He said the Cabinet had approved the setting up of an early warning system at the landslip prone areas and had sought funds for rehabilitating the slopes under the Ninth Malaysia Plan (9MP).

Samy Vellu was speaking to reporters at the opening the Sabah MIC convention attended by Chief Minister Datuk Musa Aman and other state Barisan leaders yesterday.

He said PWD was also formulating guidelines for the rehabilitation of the slopes that should be practised and adopted by all authorities.



A special committee comprising officials from the Malaysian Highway Authority, Projek Lebuhraya Utara-Selatan, MTD Prime Sdn Bhd and National Remote Sensing Department (Macres) among others would be formed to give its input.



Earlier in his speech, Samy Vellu said 68 infrastructure development projects, including 38 new projects valued at RM3bil, had been identified for implementation under the 9MP.



He said a special audit team would also be sent every four months to Sabah and Sarawak to check on the progress of the implementation of various federal projects to ensure they were carried out smoothly.

The Star Online > News
Saturday April 9, 2005

At least RM10bil to replace pipes

BY SA’ODAH ELIAS
PUTRAJAYA: The Federal Government will spend at least RM10bil to replace old and faulty water and sewage pipes nationwide.

Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said the funds for this endeavour would be raised through long-term and low-interest loans and made available through its wholly-owned company, Water Asset Holding Company (Wahco).

The setting up of Wahco, he said, would be expedited because of the acuteness of problems affecting water supply.

“Wahco will need at least RM10bil to replace faulty and old pipes nationwide. As such, state governments, which collectively had requested a total of RM20bil under the Ninth Malaysia Plan for the same purpose, will not be getting anything from the Government,” he told reporters after presenting his ministry’s service awards here yesterday.

Dr Lim said old and faulty pipes were the main cause of many problems affecting the country’s supply, in particular dirty and cloudy water and the high percentage of non-revenue water.

None of the existing water supply operators, be they state government-owned or privatised, had been able to tackle this problem because of the high costs involved.

Dr Lim also rejected calls by Members of Parliament to set up a select committee on water management.

“My decision is based on the Cabinet’s decision, that there is no need for such a select committee because the numerous problems pertaining to water services in the country are well known.

“Everybody knows how chaotic water services in the country are and how dirty water supply is. We don’t need a select committee to tell us that, and the solutions that we are proposing are meant to benefit the public.

“So why do we need a select committee that will only delay our efforts to address these problems?” he added.

Dr Lim, however, said he would brief the Members of Parliament on the issue on Tuesday.

Wednesday March 30, 2005

Govt to launch national grid computing project


BY RASLAN SHARIF
CYBERJAYA: The Government is embarking on a National Grid Computing initiative to boost research and development by pooling computing resources in local universities and research institutions.

Mimos Bhd is leading the effort, with work already underway since the end of last year, according to Datuk Seri Dr Jamaluddin Jarjis, Minister of Science, Technology and Innovation (Mosti).

The initiative is expected to be launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi next month, he said.

“We are going to build a networked, multiprocessing, multistorage computing capability” to enhance the existing R&D infrastructure in universities, Jamaluddin told reporters at the official launch of the Malaysian Research and Education Network (MyREN) on Monday.

MyREN is a high-speed research network linking 12 local universities.

Jamaluddin did not disclose the cost or completion date of the grid computing initiative.

A grid computing platform integrates high performance computing clusters, applications and databases together via high-speed networks.

Such an infrastructure would catalyse the formation of research clusters in new and existing scientific areas, as well as consolidate Malaysia’s expertise in these areas, said Jamaluddin.

“It will be crucial for our R&D efforts in the life sciences and biotechnology sectors,” he said.

Once completed, it would be linked to MyREN, and be made available to the scientific and research community in the country, he said.

Grid computing is expected to be a key component of Malaysia’s technology agenda under the upcoming Ninth Malaysia Plan. Others include IPv6 (Internet Protocol version 6) and RFID (radio frequency identification) technologies.

Global links

Meanwhile, efforts are underway to connect MyREN to the Japan Gigabit Network, which is also a research network, said Datuk Seri Dr Lim Keng Yaik, Minister of Energy, Water and Communications.

Multimedia University (MMU), a MyREN member, is currently working with Japan’s Ministry of Internal Affairs and Communications on the linkup, he said.

“This would most certainly bring about better fruition of the joint initiatives we have now, as well as future collaborations,” Dr Lim said in his speech at the MyREN launch.

Malaysia is also offering space and resources to the European Commission (EC) to locate the South-East Asia network operations centre (NOC) for the Trans-Eurasia Information Network (TEIN2), he said. The EC administers TEIN2.

Work on connecting MyREN to TEIN2 is expected to be completed later this year, MyREN officials said. The MyREN NOC is located in Cyberjaya.

The linkup will provide a gateway to scientific and research collaboration with national research and education networks (REN) that are part of the GEANT – the pan-European REN – as well as RENs in other Asian countries.

Countries in the region that have set up RENs include Singapore, China, South Korea, Thailand, Vietnam, the Philippines and Indonesia.

Focused research

Dr Lim also said that current R&D activities utilising MyREN are focused on four areas: Network technologies, IPv6, “e-sciences” such as bioinformatics, and multimedia applications.

Ongoing research include a teleradiology project involving researchers at Universiti Putra Malaysia (UPM), Universiti Sains Malaysia (USM), Universiti Teknologi Mara, and the Malaysian Institute of Nuclear Technology; cancer cell visualisation at Universiti Malaya (UM) and MMU, as well as a bioinformatics project at UPM.

The universities concerned are MyREN members. Others are Universiti Kebangsaan Malaysia (UKM), Universiti Teknologi Malaysia, Universiti Utara Malaysia, Universiti Tenaga Nasional, Universiti Teknologi Petronas, Universiti Malaysia Sarawak and Universiti Malaysia Sabah.

MyREN comprises two networks – a production network and an experimental network – that cater to differing research requirements.

The production network is MPLS-based (multiprotocol label switching) and links the 12 universities at up to 8Mbps (megabits per second). It is being used for data exchange in collaborative research projects.

The experimental network provides 2Mbps point-to-point connectivity linking four locations – USM, UPM, UM and UKM – for network research and dedicated testing.

MyREN will also be opened to other participants, as local and international organisations have also expressed interest, Dr Lim said.

“As soon as we stabilise the system, we will accept membership from other local private and public universities, government research institutions, as well as private sector research entities,” he said.

Dr Lim described the launch of MyREN as ushering in “a new chapter in the history of R&D in Malaysia,” and said that it provided the tool that would enable the country to “make the much vaunted quantum leap.”

Any idea which are the 26 construction projects to be resumed?

^^^ No idea.....but that should be it mah......my friends in the construction business said that the situation is very bad. Even Putrajaya is at a halt! :cry:

Seriously lah.....with Dr. M at the helm....this thing wouldn't happen. I could say that our administration currently is ignoring the construction industry.......even vital infrastructures like the double tracking project and the 2nd Penang bridge are put on hold....gila wan :ohno:

Hope that means green light for Plaza Rakyat :)

Hope that means green light for Plaza Rakyat :)


I am keeping my fingers crossed! :D

I dun think Plaza Rakyat would be one of the revived project as the total sum of RM2.4 billion is too little to 26 projects :(

The Star Online > News > Latest
Monday April 18, 2005

26 projects under RM9 to be implemented immediately

News Update by The Star Newsdesk

PUTRAJAYA: Twenty-six development projects originally slotted for the Ninth Malaysia Plan have been brought forward to reactivate the sluggish construction industry.

The projects that will cost the government RM2.4bil will start from the middle of this year.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said with the move the government hoped to stimulate the industry that had contracted by 1.9% last year and the trend was expected to continue this year.

"All these projects will be implemented through open tender to ensure competitive pricing.

“To ensure that more contractors benefit from this move, the bigger projects will be divided into packages that will in turn be tendered out separately,” he said when opening the 2006 Budget Consultation at the Finance Ministry Monday.

Abdullah, who is the Finance Minister, said the use of imported materials would not be allowed for the projects and contractors that used the industrialised building system would be given priority.

"The implementation of these projects in a more effective and controlled manner will allow the government to continue with its fiscal consolidation at sustainable deficit,” he added.

wah,i love this.Government is goin to spend RM9 on the projects:P

really hope to hear something bout Plaza Rakyat.I think the giant should be awaken as soon as possible.Probably take back KL's title as the house for the tallest building in the world

Twenty-six projects to have spin-offs

BY SA’ODAH ELIAS IN PUTRAJAYA






ALL the 26 Ninth Malaysia Plan projects that have been brought forward to this year are infrastructure projects meant to benefit the people.

They involved several large-scale road projects and a few buildings that the Government believes would have positive spin-off effects for the people, said Second Finance Minister Tan Sri Nor Mohamed Yakcop. :banana:

He also confirmed that the revival of the double-tracking project was not in the list of the 26 projects. :cry:

The Works Department (PWD), he said, was in the process of breaking up the larger projects into smaller packages so that more contractors could get the jobs.

“The PWD is looking at how this can be implemented so as to stimulate the growth of our economy.

“It has also been told to do it fast so that we can start opening the tenders as soon as possible. We will announce the projects involved as soon as the department completes its work,” he said after launching the Academy of Knowledge for Accounting and Leadership (Akal) in Putrajaya yesterday.






http://biz.thestar.com.my/archives/2005/4/23/business/b_02yakcop.jpg

Tan Sri Mohamed Yakcop






Prime Minister Datuk Seri Abdullah Ahmad Badawi on Monday announced that the implementation of 26 projects worth RM2.4bil that were originally slotted for the Ninth Malaysia Plan would be brought forward to this year to boost the flagging construction industry.

Earlier in his speech, Nor Mohamed said the Government would always welcome private sector-led initiatives in further developing the education industry.

The sector, he said, would continue to be a key priority in the country’s pursuit of quality development, which could only be achieved through people-centred development.

He commended KUB Malaysia Bhd on its initiative to set up Akal, a specialist academy that provided short-term work-based training and medium to long-term advanced education programmes for both public and private enterprises.

The academy is an approved tuition provider for Professional Accounting Programmes such as ACCA and is expected to run the prestigious National University of Singapore MBA programme beginning next year.

Govt Plans To Break Up RM2.4 Bln Projects Into Mediums Ones
April 22, 2005 16:55 PM



PUTRAJAYA, April 22 (Bernama) -- The government plans to break up the RM2.4 billion construction and infrastructure projects, announced recently into medium ones to enable more contractors to take part, Second Finance Minister Tan Sri Nor Mohamed Yakcop said here Friday.

He said that discussions were currently being held with the Public Works Department (PWD) to indentify the projects's scope and implementation, which would be announced soon.

"We want to break up the projects into medium ones so that more contractors can benefit from it," he said when approached by reporters after launching the Academy of Knowledge for Accounting and Leadership (AKAL), KUB Malaysia Bhd's new subsidiary under its Education and Training Sector.

The government announced early this week that projects worth RM2.4 billion under the construction sector initially slotted under the Ninth Malaysia Plan (9MP) which kicks off next year, would be implemented immediately to stimulate the construction sector which contracted 1.9 percent last year and expected to register lower growth this year.

However, Nor said that the postponed electrified double tracking project was not included in the projects to be expedited.

The government had postponed the project early last year as it wanted to give more priority to socio economic projects under the Eighth Malaysia Plan.

"We are discussing with the Works Department on the scope and will make an announcement soon. We want to stimulate the country's economy and as such we have to implement the projects faster," he said.

He said that the PWD has been told to give priority to these projects, which would largely benefit the rakyat, like the construction of roads, buildings and other infrastructure projects including water and electricity.

"These infrastructures are important as it will enhance the rakyat's standard of living and also have a spin off effect," he said.

Meanwhile, when asked on the implementation of the small and medium industry (SMI) bank announced recently, he reiterated that the government was expediting it and that works would start the latest by October.

"We are looking for the right individual to lead the bank, as the bank is very important. We have to ensure that it is steered by an individual who has the right quality, not only in terms of expertise, but should also be hardworking," he said.

-- BERNAMA

Kota Marudu To Graduate From First List Of Poorest Districts By End Of 9MP
April 24, 2005 19:05 PM



RANAU, April 24 (Bernama) -- The parliamentary constituency of Kota Marudu is determined to graduate from the first list of "poorest districts" in Sabah by the end of the Ninth Malaysia Plan period, Minister in the Prime Minister's Department Datuk Dr Maximus Ongkili said Sunday.

Closing a two-day workshop aimed at formulating a district development blueprint for Kota Marudu and Matunggong sub-district in Ranau, he said all efforts must be focused on ensuring that the constituency derived maximum benefits from the development programmes to be implemented by the government.

The workshop was the third in the series and attended by some 100 government officers, entrepreneurs, non-governmental organisations (NGOs) and community leaders from Tandek and Matunggong.

Ongkili, who is the Kota Marudu MP, said the Barisan Nasional (BN) had targeted the elimination of absolute poverty in the country within the next five years and would implement specific development packages for such purpose in the ninth plan.

"It is therefore imperative that Kota Marudu and Matunggong get a fair share of the development funds so that the constituency can be among those which will move out of the "poor district" status.

"Hence, it is urgent that a district development blueprint be prepared to map out the socio-economic needs, economic potential and action plans for the area," he said.

Ongkili also emphasised that district planning alone would not solve all problems.

One of the factors he identified as essential ingredients of an effective poverty eradication strategy was the provision of basic infrastructure such as roads, electricity, water supply, medical and education facilities.

Apart from that, changed mindset of the people, improvement of household incomes through increased farm productivity and better employment opportunities and proper coordination of implementing agencies were also effective for that purpose, he said.

-- BERNAMA

Ninth Plan to ready Malaysians for global market
BY CHARLES F. MOREIRA
Tuesday June 28, 2005



PUTRAJAYA: A major thrust of the Ninth Malaysia Plan will be human capital development, Chief Secretary to the Government Tan Sri Samsudin Osman said last week.

“Its focus will be on the development of expertise, leadership skills, managers, technologists and workers in the new growth areas identified under the plan,” he said.

“We will also need to ensure a workforce imbued with innovative and creative qualities which can make a difference for the country in the global market place.”

Samsudin was speaking at the Microsoft Government Leaders Conference 2005 here last week.

The conference was organised by Microsoft Knowledge Capital Centre with Mampu, Intan and the Energy, Communications and Multimedia Ministry. It discussed the evolving technology landscape and the implementation of e-government strategies.

Besides information and communications technology (ICT), other new growth areas under the plan include agro-based industries, especially health and educational tourism, services, the extension of the Multimedia Super Corridor to other parts of the country, biotechnology, development of small- to medium-sized industries and further development of the halal food industry.

However, Samsudin could not say how much has been allocated for these various initiatives since funding has yet to be finalised and included in the plan, which is due to be tabled in Parliament soon.

On e-government, Samsudin lamented the lack of multimedia applications for handheld devices which deliver quality services for end users over cellular and WiFi networks.

He said the Government is looking into using these technologies as alternative channels for the processing of tax assessments, car registrations, quit rent and so on, which can then be submitted by the public from mobile devices.

Samsudin expressed pleasure that the one-stop, citizen-centric myGovernment portal (www.gov.my) that he announced two years ago, now includes 900 websites of federal, state and local authorities, and hosts 2,430 online services offering more than 2,500 downloadable forms.

He also noted that that its online services section records 249 hits per day on average while its downloadable forms section records 152 hits daily.

Samsudin was also pleased with the increased number of e-government applications available today. As an example, he cited the E-Perolehan electronic procurement application which currently has 95,000 registered suppliers, of whom 28,231 are enabled to transact electronically with the Government.

“During that period, close to 50,000 transactions worth more than RM340mil were recorded,” said Samsudin.

“A total of 583,835 transactions worth RM16.8bil were conducted through electronic fund transfers in 2004,” he added.

Other successful applications are E-Syariah which has improved the quality and services of the Syariah courts and improved the productivity and efficiency of their management.

Another is the Road Transport Department's “JPJ Electronic Driving Test Taking” facility which has enabled 500 candidates to take their driving tests each week, versus the 50 per week before the system was introduced.

About 200 senior government officials and education sector leaders attended the two-day conference.

really hope to hear something bout Plaza Rakyat.I think the giant should be awaken as soon as possible.Probably take back KL's title as the house for the tallest building in the world
I think work has resumed already right? I can see cranes on the site from as far as the KL Monorail...

Projects Proposed Under 9MP To Be Reviewed Later This Year
Updated : 11-07-2005
Media : Bernama



Minister in the Prime Minister's Department Datuk Mustapa Mohamed said the government will review all public work projects proposed under the 9th Malaysia Plan (2006-2010) later this year before making decisions on them.

He said the government had received many proposals which needed to be looked into objectively.

"By year-end we will be making decisions on them," he told reporters at the launching of the 16th Asian Finance Association Conference here Monday.

He was responding to questions if the government, under the 9MP, would continue with abandoned projects, like the construction of the double railway tracking project.

"That's not abandoned. It has not even started," he said.

Mustapa said decisions on the projects would only be known by early next year.

"There will be some statements on the 9MP whether we want to proceed with some of the proposals or not," he said.

Human Resource Development Masterplan ready by year-end
Updated : 06-09-2005
Media : Business Times
Story By : HAMISAH HAMID



THE Human Resource Development Masterplan, aimed at developing the right skills to support Malaysia's industrialisation, is expected to be finalised by the year-end.

International Trade and Industry Minister Datuk Seri Rafidah Aziz said the masterplan, which lasts until 2010, is being formulated by the Economic Planning Unit (EPU) in the Prime Minister¡¦s Department.

¡§The Government is serious in capacity-building and human resource development. Vision 2020 is premised upon the nurturing of a highly-skilled, technologically competent, innovative and creative workforce which can push the industrialisation process rapidly foward,¡¨ she said at the 2006 Panasonic Scholarship Award Ceremony in Kuala Lumpur yesterday.

Also present were Matsushita Electric Co (M) Bhd managing director Yuichi Shimizu, Panasonic Management Malaysia Sdn Bhd director Akira Hashimoto, Japan-based Panasonic Scholarship Inc president Tsutomu Shimada and the Japanese embassy¡¦s first secretary for education, Koji Takahashi.

Rafidah said that besides the masterplan, the Government has also established the Academia-Industry Consultative Council to provide the skills and knowledge to students of higher-learning institutions and training institutes.

The council will also help to minimise any mismatch in the supply and demand of such skills.

She said continued investments in key sectors of the economy, such as manufacturing and services, create increasing demand for appropriate skills and competence.

The 1,677 manufacturing projects worth RM44.13 billion approved between January 2004 and July 2005 are expected to generate 150,537 jobs.

In the same period, 56,149 jobs are expected to be created by 311 approved electronics and electrical projects valued at RM14.99 billion.

9MP To Focus On Development, Poverty Eradication

KUALA LUMPUR, Jan 4 (Bernama) -- The Ninth Malaysia Plan (9MP) will focus on developments, eradication of poverty, boosting the growth of the small and medium enterprises (SMEs), and human resources, said Deputy Finance Minister, Datuk Dr. Ng Yen Yen.

She said the Finance Ministry was currently studying the budget plans submitted by various ministries for the 9MP which runs from this year until 2010.

The allocation for 9MP is expected to be higher than the RM170 billion allocated by the government under the Eighth Malaysia Plan.

"The allocation should be more than last time and enough to cover all the expenses," she said at a media briefing on MCA's "Project Care - Cookies of Love 2006" here, today.

The soon-to-be-announced 9MP will set out Malaysia's socio-economic goals and targets going forward.

It is scheduled to be tabled before April, said Dr Ng.

can i know what are the 26 projects???

Friday March 31, 2006



PM unveils RM220bil Ninth Malaysia Plan



PETALING JAYA: Prime Minister Datuk Seri Abdullah Ahmad Badawi on Friday unveiled the Ninth Malaysia Plan in Parliament.

http://thestar.com.my/archives/2006/3/31/nation/PakLahAP.jpg
The Prime Minister tabling the Ninth Malaysia Plan in Parliament. The speech was broadcast live to the nation.

The RM220bil plan seeks to put Malaysia on a solid footing as the country moves towards achieving developed nation status by 2020.

The key thrusts of the plan are:

Moving the economy up the value chain

Raising the country's capacity for knowledge and innovation, and nurturing "first-class mentality"

Addressing persistent socio-economic inequalities constructively and productively
Improving the standard and sustainability of quality of life

Strengthening institutional and implementation capacity

Friday March 31, 2006



Full text of the PM's 9MP speech to Parliament


SPEECH BY THE PRIME MINISTER YAB DATO’ SERI ABDULLAH AHMAD BADAWI AT THE TABLING OF THE MOTION ON THE NINTH MALAYSIA PLAN, 2006-2010 DEWAN RAKYAT, 31 MARCH 2006

BUILDING A CIVILISATION TO ELEVATE THE NATION’S DIGNITY

1. With great pleasure I stand in this august House to table a motion as follows:

“That this House, acknowledges the healthy economic growth and socioeconomic progress achieved during the implementation of the Eighth Malaysia Plan despite the challenging global environment; endorses the Government’s efforts to implement the National Mission as the framework for the planning and implementation of the country’s developmental policies towards achieving the goals of Vision 2020; approves the Ninth Malaysia Plan which encompasses the strategies, programmes and allocation designed to realise the National Mission, thereby advancing Malaysia towards becoming a more developed, just and united nation as set out in the Order Paper CMD. 1 of Year 2006.

That in approving the Ninth Malaysia Plan, this august House calls upon all Malaysians to work together with the Government, with full intent and determination, in building a prosperous, progressive, just, resilient and competitive nation.”

2. With the permission of the Speaker, I table the Ninth Malaysia Plan for the period 2006-2010, together with the National Mission, to be debated by the Honourable Members of this august House.

INTRODUCTION

3. Praise be to Allah s.w.t. for by His grace and generosity, I am able to present you with the Ninth Malaysia Plan. Truly, Allah s.w.t commands humankind to prosper as in His firman: Translation: “He brought you forth from the Earth and hath made you husband it” (Surah Hud 11:61)

4. In the context of building our prosperity, the Ninth Malaysia Plan represents one of the most significant Malaysia Plans in our country’s history, as the nation is currently at the mid-point of the journey towards the year 2020. We have just undergone the first fifteen-year phase of Vision 2020. During that period, we faced a multitude of obstacles and challenges. The strong growth of the 1990s was interrupted by the Asian financial crisis. Our country was in the process of recovering by the year 2000, but the events of September 11, 2001 presented us with fresh challenges. Various other events have affected our country and the region, including the outbreak of SARS and avian flu, earthquakes and the tsunami.

5. Alhamdulillah, the country’s leaders have been resolute and the Malaysian people have been diligent – we have succeeded in working together to achieve a rate of economic growth and social progress that we can be proud of. Despite the various challenges faced in the last fifteen years, the country generated an average GDP growth of 6.2 percent per annum from 1991 to 2005. This growth more than doubled average household income from RM1,169 per month in 1990 to RM3,249 a month in 2004. All economic sectors showed strong growth, including the germination of new economic sectors such as the information and communications technology (ICT) sector. As a result of this growth, the country’s exports grew at a rate of 13.5 percent a year in the period 1991-2005, making the country the 18th biggest trading nation in the world.

6. The country also continued to show social progress. The poverty rate declined from 22.8 percent in 1990 to 5.7 percent in 2004. The provision of basic amenities such as health services, education and housing increased, as did the provision of other infrastructure and utilities.

7. Although we have navigated the last fifteen years successfully, we must change our mindset to face the next fifteen years. I see this second phase as a period that is even more challenging. The world is and will continue to be very different from what we have experienced in the past. No one has been spared the effects of rising world oil prices. Competition for investment and job opportunities has become more intense. In addition to competition from China and India, other Asian developing countries are also assertively developing their economies. As an open economy, Malaysia is not insulated from this competitive environment, particularly in the era of ICT.

8. At the same time, there are challenges on the domestic front. The structure of Malaysian society has changed. A large proportion of the population now resides in urban areas. With increased education levels, the middle class has expanded. The quality of life enjoyed by Malaysians has improved. Nevertheless, great disparities in income and wealth still exist especially between ethnic groups and between rural and urban areas. Ethnic polarisation is still prevalent in schools, work places and in society.

9. Malaysia must overcome these myriad challenges astutely and effectively. We need to determine the means to meet these challenges in order to achieve Vision 2020. We have no time to lose. Only fifteen years remain between now and the year 2020. These fifteen years must be our most productive years, our best years, so that we may stand tall in the year 2020 and declare that our vision has been realised.

THE NATIONAL MISSION, 2006-2020

Mr. Speaker Sir,

10. We now take the next step, to begin the second phase towards achieving Vision 2020. We want our country to be a developed country, imbued with its own unique characteristics. We want progress that is holistic, encompassing all nine aspects contained in Vision 2020. We want progress that is enjoyed by all, regardless of religion or ethnicity. We want to build a a progressive and developed civilisation that echoes the glorious age of Islam and other civilisations, in line with the concept of Islam Hadhari.

11. As a guide for the rest of this journey, the Government has drafted and will implement the National Mission – a framework for the country’s development agenda which outlines the key steps we must take in the fifteen years to come. The National Mission aims to concentrate the country’s efforts on priority areas which will ultimately lead to achieving Vision 2020. These priority areas encompass the nation’s global competitiveness, human capital development, national integration, ethnic relations, distribution of income and wealth and the quality of life. Our focus on these areas will enable us to attain better results and greater impact from our developmental efforts.

12. The National Mission comprises five thrusts, as follows:

· The first thrust is to move the economy up the value chain. The Government aims to increase the value add of existing economic sectors as well as generate new knowledge-intensive activities and employment in ICT, biotechnology and services. The Government will also build an environment which encourages the private sector to take a leading role in the country’s economic development.

· The second thrust of the National Mission is to raise the country’s capacity for knowledge, creativity and innovation and nurture ‘first class mentality’. Malaysia’s future success depends on the quality of its human capital, not only in terms of intellect but also character. Therefore, in line with this thrust, the Government aims to undertake comprehensive improvement of the country’s education system, from pre-school to tertiary and vocational institutions. A more enabling environment will also be fostered to encourage the R&D. At the same time, heavier emphasis will be placed on the shaping of values to create more well-rounded individuals.

· The third thrust of the National Mission is to address persistent socio-economic inequalities constructively and productively. The Government strongly believes in eradicating poverty, generating more balanced growth and ensuring the benefits of growth are enjoyed by the Malaysian people in a fair and just manner.

· The fourth thrust of the National Mission is to improve the standard and sustainability of our quality of life. The Government will continue to provide for basic needs such as water, energy, housing, transportation and other amenities but more emphasis must now be placed in addressing issues related to maintenance, upgrading and efficient usage of resources.

· The fifth and final thrust of the National Mission is to strengthen the institutional and implementation capacity of the country. The success of our plans rests on our ability to implement. As such, the Government aims to improve the public services delivery system at various levels. The Government will also address issues related to corruption and integrity in the public sector, the private sector and among the general public.

THE NINTH MALAYSIA PLAN, 2006-2010

Mr. Speaker Sir,

13. The Ninth Malaysia Plan represents the first of three Malaysia Plans that form the National Mission to achieve Vision 2020. As such, the Ninth Malaysia Plan is consistent with the ambition to build a country with an advanced economy, balanced social development and a population which is united, cultured, honourable, skilled, progressive and farsighted. To deliver the Ninth Malaysia Plan, we need to multiply our efforts towards achieving greater success in order to build a civilisation that will elevate the nation’s dignity.

14. The Government will ensure macroeconomic conditions remain stable, enabling development to be carried out smoothly and effectively. The Government will ensure that inflationary pressures are controlled. The Government will ensure that fiscal policy continues to support growth, while the Federal Government deficit will be reduced gradually from 3.8 percent in 2005 to 3.4 percent in 2010. The public sector accounts will be managed judiciously and steps will be taken to ensure the cost effectiveness of public expenditure.

15. Domestic consumption and private investment is expected to drive growth. Private investment is expected to expand at an average rate of 11.2 percent a year, exceeding public investment for the first time since the Asian financial crisis. At the same time, total factor productivity is expected to increase from 29 percent to 35.8 percent, in line with the evolution into a more knowledge- and productivity-based economy.

16. Malaysian exports is expected to grow at a healthy rate in the next five years at a rate of 8.5 percent a year. Total trade is expected to exceed the RM1 trillion mark for the first time. 17. Our target is to achieve average real GDP growth of 6.0 percent per annum. Based on this growth, GNP per capita is expected to increase at an average rate of 5.9 percent per annum to reach RM23,573 by the year 2010. GNP per capita adjusted for purchasing parity is expected to increase to USD13,878 in 2010.

18. Economic growth is inextricably linked with external factors. Therefore, our foreign policy will provide optimal benefits to meet the National Mission. We will strive to foster an external environment that is conducive to the accomplishment of the objectives of the Ninth Malaysia Plan. We will work to strengthen cooperation, peace and stability in the region and beyond, because our economy cannot prosper otherwise. We will aggressively undertake initiatives to seek new markets, promote our exports, attract investments and increase tourism. We will negotiate and enter into bilateral and regional trade agreements that are in our best interests. To these ends, we will also improve capacity in the institutions that are primarily responsible for preserving and promoting our interests abroad.

IMPLEMENTING THE NATIONAL MISSION

Mr. Speaker Sir,

19. Please allow me to outline the main policies and programmes of the Ninth Malaysia Plan, which have been intended to achieve the thrusts and objectives of the National Mission.

Thrust 1: To Move the Economy Up the Value Chain

20. Globalisation has escalated the level of competition in the international market. Not only does the domestic macroeconomic structure and environment need to be strengthened, but elements of the micro economy including the respective economic sectors and local corporations also need to be made more resilient. In order to enhance national long-term competitiveness, the Government will continue to promote the transition to higher value added activities in three main economic sectors, the first being manufacturing; second, services; and third, agriculture. New sources of growth in these sectors will be identified and promoted to generate additional income and to develop new sources of economic wealth.

Enhancing value added in manufacturing, services and agriculture

21. The manufacturing sector is projected to expand by 6.7 percent per annum, and will continue to shift to high technology and knowledge-intensive activities with high value added content in various industries, especially involving electrical and electronics, petrochemicals, biotechnology, machinery and equipment, aerospace and maritime. The Government will prepare specific incentives to attract investments, including high quality FDI for manufacturing sector activities that are being promoted. In addition, we will promote Small and Medium Enterprises (SMEs) with high innovation capabilities to become part of the global supply chain.

22. Some of the projects that will be implemented to enhance the manufacturing sector include the expansion of Kulim High Technology Park, the establishment of Sarawak Technology Park and Perak Technology Park, the development of 20 industrial and SMEs parks throughout the country, and infrastructural improvements to existing industrial areas. The Government will also develop several industrial clusters, which include electrical and electronics (E&E) clusters in Pulau Pinang and Kulim High Technology Park, and petrochemical clusters in Pahang and Terengganu. To improve access to sources of finance, the Government will create several funds such as the Strategic Investment Fund, the Automotive Development Fund, the Industrial Restructuring Fund, the Automation Fund, and specific funds for biotechnology, halal products and handicrafts.

23. To leverage on Malaysia’s advantages in the halal sector, particularly in terms of certification and logo recognition, the Plan will drive the sector’s growth in making Malaysia an international hub for halal products and services. The Halal Industry Development Board will be established to develop this industry in a holistic and orderly manner.

24. The services sector will be given a boost in order to realise its full potential. This sector is projected to expand by 6.5 percent during the Plan period. At present, services industries are mainly located within the Klang Valley. In order to expand the services sector to other locations, the South Johor Economic Region will be developed as a dynamic regional services hub, benefiting from its location and natural advantages. To enhance the services sector’s access to financing, the Export Services Fund and SMEs Export Services Fund will be established.

25. Revenue from the tourism industry has almost doubled between 2001 and 2005. To maintain this momentum, we will develop Malaysia as a main international tourist destination, while enhancing domestic tourism. Malaysia’s advantage as a centre for conferences, event organisation, sports facilities, exhibitions and conventions as well as its wealth in arts and crafts, shopping and recreation must be promoted aggressively. As such, the management of the Malaysian Tourism Board will adopt private sector business practices in order to become more dynamic. In addition, main programmes that will be implemented by the Government include enhancing access and facilities for tourist arrivals, and improving as well as maintaining amenities and infrastructure. An expenditure of RM1 billion has been allocated for the purpose of maintenance. By the year 2010, our target is to attract 24.6 million tourists per annum.

26. We will also develop Malaysia as a regional centre for health tourism in both traditional and modern health treatments. For this purpose, we need to develop comprehensive health services packages. Promotional efforts will also be enhanced through the establishment of a brand for Malaysian health services, which will be known as ‘Health Malaysia’.

27. For educational-related services, we will double efforts to develop Malaysia as a regional centre for excellence in the provision of tertiary level education. We will promote and export tertiary education through strategic marketing efforts and the branding of educational products.

28. For financial services, efforts will be aimed at strengthening Malaysia’s position as an international centre for Islamic banking and finance. In addition to the progressive liberalisation of the financial services sector, we will continue to promote the expansion of competitive domestic financial institutions into other regional markets.

29. The Government will also promote the development of a maintenance, repair and overhaul (MRO) industry for aircraft and vessels as well as an integrated logistics industry. For this purpose, the Government will develop a comprehensive aviation hub to attract the participation of more local and international players. Incentives will be offered and development programmes will be organised to expand and enhance the competitiveness of commercial, professional and consultancy services.

30. The agriculture sector is projected to expand by 5 percent. This sector will be given a new lease of life in order to become the third engine of economic growth. We must think progressively and remove misperceptions that agriculture is a low value-added economic activity capable of only generating small incomes. In fact, agriculture is the main economic driver for rural communities. 37 percent of Malaysians live in rural areas. 7 out of 13 states in Malaysia possess large tracts of rural land. The highest incidences of poverty, with a level of 8.3 percent, occur amongst the Bumiputera community who form the majority of the rural population. 11.9 percent of poverty occurs in rural areas, more than twice the national average. Hence, agricultural sector development not only has the potential to generate new sources of growth, but can help to narrow national socioeconomic divides by simultaneously eradicating poverty. The Government will develop the ‘New Agriculture’ programmes by giving focus on enhancing the value chain, cultivating high value added agricultural activities and large-scale commercial farming, utilising ICT as well as exploiting the full potential of biotechnology.

31. Initiatives will be taken to enhance productivity and competency as well as increase opportunities to generate income and wealth, expand usage of modern agricultural techniques and technology, increase R&D and innovation, improve farming accreditation, product standards and quality, as well as develop marketing capabilities and infrastructure. The Government will promote a higher level of private sector participation including that of Government-linked companies (GLCs), SMEs, graduates, agriculture entrepreneurs and skilled labour in order to enhance the level of professionalism in the sector. Malaysia aims to become a net exporter of food by 2010.

32. To realise these objectives RM11.4 billion has been allocated for this sector; a 70 percent increase compared to the allocation in the Eighth Malaysia Plan. A large portion of the allocation will be for the development of infrastructure for irrigation and drainage, R&D, enhancing credit facilities and implementation of entrepreneur development programmes. Programmes to integrate and rationalise more than 100,000 hectares of land will be implemented, whereas more than 380,000 hectares of land will be replanted with rubber and oil palm. Other main projects include the creation of 28 Permanent Food Production Parks comprising a land area of almost 2,400 hectares, an Agropolis at Serdang and National Food Terminals (TEMAN) at Ipoh and Kota Bharu. We will also increase the development areas of oil palm clusters, livestock valleys, fruit valleys, aquaculture parks and Halal food parks.

33. The agriculture sector that is being developed by the Government includes agro-based industries, which achieved a total value added worth RM16.9 billion in 2005 and has the potential to create 128,000 new jobs over the next 5 years. There are no limits to the upside potential of this sector if it is managed effectively. The agriculture sector needs to be viewed through a new lens, infused with fresh conviction, developed with a new spirit – a new agenda.

Generating new sources of wealth through ICT and Biotechnology

34. The Government will continue to implement measures to ensure that Malaysia remains a choice destination for ICT-based investments. Malaysia will realise its potential by continuing to promote the development of the shared services and outsourcing industry. Local companies will be urged to develop outsourcing and other high value added activities. The Government will develop new fields such as the local digital content industry and bio-informatics. Specific attention will be given to promote the widespread use of ‘e-dagang’. Development of the Multimedia Super Corridor (MSC) will be focused on the development of corridor networks, encompassing the 3 existing cyber cities and 4 new cyber centres that will be developed, as well as enhancing facilities at Cyberjaya. To enhance access to financing sources, various funds and programmes will be developed while existing funds will be strengthened.

35. Biotechnology is an important industry, as it has the potential of generating new sources of wealth. Efforts will be increased in order to develop the biotechnology industry as a new driver of economic growth. Focus will be given to the usage of biotechnology in agriculture, health care, industrial activities and bio-informatics. To support the development of this industry, we will improve the investment regulatory framework, develop relevant infrastructure, improve access to funding, increase the rate of R&D commercialisation, increase the number of skilled biotechnology workers and researchers, as well as attract foreign R&D partners. The Government will allocate a total of RM2 billion to promote the development of biotechnology in order to complement private sector funding. Local and foreign companies holding ‘Bio-Nexus’ status will be offered attractive incentive packages.

Enhancing job creation

Mr. Speaker Sir,

36. A total of 1.6 million new jobs were created in the Eighth Malaysia Plan. To sustain economic growth, we continue to give emphasis to the creation of new jobs to keep unemployment low and to ensure that graduates and skilled workers are able to obtain employment suitable to their qualifications. The Malaysian people must be equipped with the skills and knowledge that make them employable. For this purpose, functional training will be provided to ensure the workforce has the specific skills required by industry.

37. Every year, it is estimated that 220,000 people will join the labour force. 44,000 of them will possess tertiary qualifications. It will be a challenge to provide employment opportunities to this group. Indeed, a critical challenge that will need to be addressed is the attitude of local workers who are unwilling to accept low-level employment positions. This forces the nation to rely on foreign labour. Currently, there is a total of 1.8 million registered foreign workers. This has resulted in many new social problems for the nation. The Government is currently structuring programmes that are designed to fortify spiritual and physical resilience and inculcate noble values to change the mindset and attitudes of Malaysian youth.

The Private Sector as the main engine of economic development

38. The economic participation of SMEs must be increased. Although SMEs represent more than 90 percent of commercial establishments, SMEs only contribute 46 percent to national output. With proper support, SMEs will be able to increase their economic participation more effectively. Initiatives that will be implemented by the Government include improving access to funding through SME Bank and providing seed funding for newly established SMEs. Specific programmes will be introduced to strengthen cooperation and linkages between SMEs and large domestic companies as well as multinational corporations (MNCs). Efforts will also be concentrated on enhancing entrepreneurial and technical capabilities of SMEs.

39. The Government and the private sector must work closely in order to ensure continuous economic growth. Implementation of privatisation programmes over the last two decades has provided a strong foundation for cooperation between the Government and the private sector. Privatization programmes have contributed to a higher level of participation of the private sector in the economy and have subsequently made the private sector a driver of economic growth. Nevertheless, there remain several aspects within the privatisation program that require fine-tuning and improvements in order to make it more effective.

40. Changes that will be made include focusing on projects proposed by the Government based on national development priorities. Private financing initiative (PFI) will be introduced as a new measure under the privatisation. The Government plans to widen the implementation of PFI-based projects during the Plan period to increase opportunities for the private sector to participate in infrastructure and utilities development. This measure will also help drive growth in the construction industry, which has been contracting over the last five years.

41. The PFI approach will be utilised in two circumstances. First, PFI can make the implementation of Government projects more efficient, in a manner where risk and reward is equitably shared between the Government and the private sector. Secondly, PFI can be utilized in situations where Government support enhances the viability of private sector projects in strategic or promoted areas. Among the projects that have been identified as feasible for the implementation of PFI include public transportation services and the development of education infrastructure. With careful implementation, PFI can also accelerate private sector investment for regional development.

Expanding the market for Malaysian products and services

42. In order to remain competitive, initiatives to expand the market for Malaysian products and services will be intensified by strengthening our position in traditional markets and by exploring new markets. Liberalisation under WTO and AFTA as well as bilateral free trade arrangements with countries in East Asia, South Asia and Asia Pacific will expand our global reach, and provide additional opportunities for trade and investments. Mr. Speaker Sir,

Thrust 2: Enhancing the National Capacity for Knowledge and Innovation and Nurturing Citizens with “First Class Mentality”

43. The most precious assets of a nation are its people. The development of human capital, the upgrading of the mentality and intellectual capacity of a nation is one of the biggest challenges under the Ninth Malaysia Plan. If we wish to become a knowledge-based economy, if we wish to be a developed country and maintain that developed status, the development of human capital must be a priority. In the context of globalisation, high quality human capital has become a necessity, not merely a luxury.

44. Development of quality human capital will be intensified. The approach must be holistic and emphasise the development of knowledge, skills, intellectual capital in fields such as science, technology and entrepreneurship. Simultaneously, we must develop a culture that is progressive, coupled with high moral and ethical values. This is what is meant by human capital with “First Class Mentality”. Three main strategies will be adopted:

· First, increasing the capacity for and the mastery of knowledge; · Second, strengthening the nation’s capabilities in science, R&D and innovation; · Third, nurturing a cultured society that possesses strong moral values.

Increasing the Capacity for Knowledge

a. Increasing access to education and quality training at all levels

45. There will be more education opportunities at better equipped pre-schools and primary and secondary schools. During the Plan period, the Government will build 180 primary schools and 229 secondary schools and full boarding schools. Dilapidated schools, especially those in Sabah and Sarawak will be replaced. The Government is also aware that 1,598 schools in Malaysia do not have piped water and 809 schools do not have 24-hour electricity supply. Therefore RM1.15 billion is allocated to improve and enhance rural school facilities, primarily in Sabah and Sarawak.

46. At tertiary level, the Universiti Darul Iman in Terengganu, Universiti Darul Naim in Kelantan and a number of polytechnics will be constructed. The Government will also increase vocational training facilities by establishing Community Colleges, MARA Training Centres and Centres of Advanced Technology.

47. Steps will also be taken to improve the academic achievements of students especially rural students. The improvement of teaching quality and the learning environment in rural schools including providing ICT facilities will be emphasised under the Plan. The education and training of teachers will be emphasised to produce qualified, skilled, responsible teachers who are proud to be educators. The status of teachers’ colleges will be upgraded and improved to become Institutes of Teaching Education which can award bachelor degrees in education. The Government has allocated RM690 million for teachers’ accommodation or housing quarters. Half of this allocation will be for teachers’ housing quarters in rural areas.

b. Making national schools the “School of Choice”

48. Schools are where the seeds for national unity and national integration are sown. We must ensure a balance in the racial composition amongst students and teachers in national schools. Various steps need to be taken towards strengthening the national schools so that they become the “School of Choice” for all races in Malaysia. The quality of teaching in national schools will be improved. The curriculum and co-curriculum activities will be reviewed to ensure a solid foundation for basic competencies and to ensure that they are in line with current human resource demands of the country. Languages such as Mandarin and Tamil will be introduced as elective subjects.

49. As part of the effort to make national schools the “School of Choice”, all existing national schools will be made “Smart Schools”. To this end, RM284 million will be allocated for the Smart School Programme and RM1.51 billion will be allocated for the Computerisation of Schools Programme. Educational opportunities for special children and those with learning difficulties will also be improved.

c. Increasing the level of technical and vocational skills

50. The capacity and effectiveness of training will be enhanced by increasing the number of public training institutions, adding further courses in technical fields, strengthening the certification/accreditation systems and the quality of technical education, as well as encouraging private sector participation in the field of technical training. Under the “National Dual-Training System”, the intake of technical trainees will be doubled. The technical curriculum will be enhanced with the cooperation and input of industry.

d. Producing Higher Institutions of Learning of International Standard

51. The Government will continue to take steps to increase the quality of tertiary education. Local tertiary institutions will be benchmarked against international standards. The quality of academics in terms of leadership, expertise and a sense of commitment will be enhanced. The Government targets to have 60 percent of academics in Malaysia with PhDs by the year 2010. In order to strengthen research capacity at local institutions, cooperation networks with leading international institutions will be created. Tertiary education institutions must also ensure the courses offered at their institutions are in line with the nation’s needs.

Strengthening R&D capacity, Science and Technology

52. The Government is fully committed to building up the country’s competency in R&D, science and ability to innovate. Malaysia cannot become a developed nation without acquiring significant capabilities in science and technology. The public sector budget allocated for R&D activities is RM3.9 billion - twice the amount that was allocated under the Eighth Malaysia Plan. The Government aims to eventually spend 1.5 percent of GDP on R&D by 2010. We will encourage research as the basis for developing and deepening knowledge. To ensure that expenditure on R&D is maximised, we will prioritise and focus on specific R&D efforts and pursue the commercialisation. The Science Fund and the Techno Fund will play an important role in achieving these aims.

53. The Ninth Malaysia Plan will focus on producing more researchers, scientists and engineers (RSE) and we target to have 50 RSEs for every 10,000 members of the labour force by 2010. To achieve this target, we have created a RM500 million S&T Human Resource Development Programme. As a start, we will implement the Brain Gain Programme - a programme directed at involving or attracting outstanding researchers, scientists and engineers, including Malaysians abroad.

Fostering a Cultured Society with Strong Moral Values

54. A society with “First Class Mindset” is one that we define as being knowledgeable, competitive, has a high performance culture, integrity and strong moral values. It is also a society of learned people who appreciate culture, arts and heritage, as well as the history of their nation, race and religion. This society is known by its strong sense of self-esteem and is not easily swayed by the waves of globalisation. This society is steadfast in its faith in God and loyalty to the King and country. The spirit of Islam Hadhari that stresses on noble universal values will be inculcated.

55. Direct participation by Malaysians in culture, art and heritage activities will contribute to the holistic development of human capital, whilst strengthening national unity. The Government will seek to increase Malaysian awareness on the importance of culture, arts and heritage in daily life and also promote the arts and culture industry within the country.

Empowering Youth and Women

56. The young are important assets and valuable natural resources. They shall inherit the mantle of leadership and continue the struggle. This Plan, the National Mission and Vision 2020 will be entrusted to them. Therefore, we must nurture in them an appreciation and understanding of the National Mission and Vision 2020. We should guide and build up the leaders amongst them. We have to nurture them and involve them in programmes to develop the nation at all levels - planning, leadership and implementation. Leaders of youth organizations must be able to fulfill the aspirations of the young. Youth organisations must be the forum for them to voice the aspirations of their generation. For that reason, the leadership and membership of youth organisations should appropriately be handed over to the young. The Government is in the process of enacting the National Youth Act, which will serve as a compass for the future of Malaysian youth.

57. Malaysia abides by the principles of gender equality. Women, when provided equal opportunity, have proven they possess outstanding capabilities. There is no doubt at all that women have important roles in all aspects of development. Women have contributed tremendously towards the nation’s development. Housewives and those who do not work full time contribute significantly towards the socioeconomy development by nurturing family values and human development. The Government will continue to facilitate higher participation of the women into the nation’s labour force by providing more training opportunities, encouraging flexible work hours and creating a special window in existing business financing programmes. In addition, the Government will continue to review existing laws and regulations that discriminate against women.

Thrust Three: Addressing Socioeconomic Disparities Constructively and Productively

58. The twin objectives of the New Economic Policy to eradicate poverty and restructure society was borne out of the experience of the May 13 incident. This bitter episode in the nation’s history was the result of the discontent between “the haves” and “have nots” as well as the strained relations between different ethnic groups caused by inequitable distribution of the country’s economic cake. The NEP was formulated to address these socioeconomic disparities through expanding the economic cake and not denying any group of its rights and share in the wealth of the country. The NEP’s implementation began to address these disparities. There was reduction in poverty, people began to enjoy high quality of life. The number of Bumiputera professionals increased and the Bumiputera and non-Bumiputera middle-class expanded.

59. However, the progress in ensuring more equitable distribution stagnated since the early 1990s when the country began liberalising. When the Asian financial crisis occurred in 1998, the disparity in income levels became even more pronounced, especially between ethnic groups, between rich and poor, and between between urban and rural areas. This shows that although robust economic growth can raise income levels and enhance the quality of life of the rakyat, it does not in itself ensure that the benefits of economic growth are enjoyed by all citizens in a far-reaching and more equitable manner.

60. We have not achieved the targets that were set under the NEP. We cannot pretend to be blind to the realities today. We must have the courage to admit the truth because only then will it allow us to take the necessary corrective measures. If unaddressed, these disparities can threaten the harmony and stability we enjoy and consequently, thwart the country’s economic development.

61. It is with this in mind that in the Ninth Malaysia Plan, we re-emphasise efforts to address socioeconomic disparities as we have not met the set targets. To address this issue, we fine tune and streamline strategies bearing in mind the open nature of the global economy and the lessons that we have learnt from that. To be effective, strategies to be adopted will be based on the following principles:

· Firstly, to eradicate poverty and ensure no one is left out of the development process, thereby strengthening the country’s socioeconomic foundation to enable steady economic growth; · Secondly, to generate balanced development especially in under-developed areas and creating more opportunities for direct participation in the country’s economic development; · Thirdly, to ensure that all Malaysians benefit from the economic growth fairly and equitably.

Eradicating Poverty

62. Efforts to eradicate poverty, irrespective of race, region and state will be intensified. Poverty eradication must be the first step in the larger effort to address disparities in the country’s socioeconomy. This will then ensure that the needs of citizens are met, the socioeconomic foundation is strengthened, economic growth sustained and harmony and stability maintained.

63. Effective implementation of the poverty eradication programme requires us to know exact details of the target poverty group. To determine who the target group are, the Government has revised the Poverty Line Income (PLI) bearing in mind the significant changes in price structures, consumption patterns and standard of living since 1977 when the PLI was first introduced. Besides allowing more accurate information about poverty to be obtained, the new PLI would be able to help to identify and reduce the burden of those who are clearly poor under current conditions, but are not categorised as such under the old PLI. These include the urban poor.

64. Based on the new PLI, in 2004, the overall poverty rate in the country was at 5.7 percent and hard-core poverty at 1.2 percent. The Government intends to reduce the overall poverty rate to 2.8 percent and to eradicate hard-core poverty entirely by 2010.

65. The main focus of the poverty eradication programme is to build the capacity of the poor by improving their access to education and skills training, instil positive thinking and build self-confidence and motivation. This will encourage active involvement of the poor in economic activities. To facilitate the involvement of the poor in development and economic activities, the Government will facilitate access to financing and provide better infrastructure. Special programmes will be implemented to address rural poverty and urban poverty among the Bumiputera in Sabah and Sarawak as well as the Orang Asli community. Nevertheless, recognising that there are certain groups that are unable to participate directly in economic activities, the Government will continue to provide direct assistance to the elderly, the infirm, the disabled and the destitute.

Achieving Income Parity

66. Although the Eighth Plan saw a rise in average household income, the overall income gap and that between rural and urban areas continued to widen. We need concerted efforts to achieve income parity and reduce the income gap. We have set some targets to reflect the Government’s commitment to address this issue. The income gap between Bumiputera and the ethnic Chinese will be narrowed from a ratio of 1:1.64 in 2004 to 1:1.50 in 2010 and between Bumiputera and ethnic Indians from a ratio of 1:1.27 in 2004 to 1:1.15 in 2010. The income ratio between rural and urban areas will be reduced from 1:2.11 in 2004 to 1:2 in 2010. The Government also aims to increase the share of household income of the bottom 40 per cent of the population.

Spearheading Regional Development

67. The Government will increase the amount allocated for the development of rural areas as well as under-developed regions to reduce the development gap between rural and urban areas as well as between under-developed regions and developed regions. However, merely increasing allocations is insufficient in the era of the global economy. What is needed is a development formula that is integrated, comprehensive and dynamic. The time has come for centres of growth and development not to be exclusively concentrated in the Klang Valley. Therefore, the Government will develop new growth area including focusing on transborder development between states in order to enable the benefits of development projects to be enjoyed by several states at once. We will therefore develop a Northern Peninsula Corridor encompassing the states of Perlis, Kedah, northern Perak and Seberang Perai; an Eastern Corridor covering southern Kelantan, northern Terengganu and eastern Pahang, and Sabah and Sarawak.

68. Apart from this, regional growth centres will be identified in several regions to spearhead development. The Southern Johor Economic Region will be developed in a comprehensive and systematic manner. The construction of the Second Penang Bridge will spur growth in nearby areas, including mainland Penang, Kedah and Perak and, will spur economic activities particularly for businesses that benefit from the port facilities and air cargo services.

69. Integrated development will be undertaken to consolidate villages as well as establish growth centres. The Government will improve infrastructure and facilities as well as create new economic opportunities to generate income and employment, particularly in modern agriculture, agro-based industries, and the services sector. A total of RM1.2 billion will be utilised to improve water supply to rural areas; RM1 billion for rural electrification, RM2.7 billion for rural road construction and RM900 million for construction of village roads. New regional development authorities will be established in Sabah and Sarawak to develop rural areas and rural growth centres.

Reducing the Wealth Disparity

70. The Government is committed to achieving the target of at least 30 per cent Bumiputera equity share ownership. Realistically, the target can only be achieved over a longer time period. Therefore, we have set the target to achieve at least 30 per cent Bumiputera equity share ownership by the year 2020. The privatization programme will remain as a foundation to assist qualified Bumiputera to participate in business. Meanwhile, we will continue to develop sources of capital for Bumiputera, for example land and wakaf assets currently under the state Islamic religious authorities. The state Islamic religious authorities need to to shoulder the responsibility of fardu kifayah, play an active role to develop the economy of Muslims and assist in the development of human capital. The scope of Bumiputera ownership of assets will be widened to include housing and commercial property ownership, especially in urban areas. For this purpose, the Urban Development Authority (UDA) will be re-established to complement the efforts of Yayasan Amanah Hartanah Bumiputera. We will also encourage greater Bumiputera ownership of intellectual property.

71. We will also assist the development of customary land in Sabah and Sarawak. We will implement a comprehensive plan to accelerate the development of the Orang Asli community. This includes creating more income generating opportunities through Skim Pembangunan Kesejahteraan Rakyat (SPKR) and relocation schemes as well as introducing rural entrepreneurship programmes.

72. We will take appropriate steps to raise the share of equity ownership of ethnic-Indians to 3.0 per cent by 2020. Besides encouraging entreprenuership, we will increase opportunities for skillstraining for Indian youths at Pusat Giat MARA and Institut Keusahawanan Negara (INSKEN), as well as establishing Pusat Putra. The Government will continue to improve the environment and facilities in new villages. With these efforts and programmes, all ethnic groups will derive the full benefit from economic opportunities that are being provided under this Plan.

Restructuring Employment Patterns

73. In the five-year period of the Plan, the Government will strive to ensure that the employment pattern in all sectors of the economy truly mirrors the racial composition of Malaysian society. The private sector must play its role in enhancing Bumiputera participation in sectors where they are under represented. Efforts must also be intensified to ensure increased non-Bumiputera participation in the public sector and in sectors where they lack equitable representation. We will monitor strictly the progress in restructuring the employment sector.

Developing the Next Generation of Bumiputera Commercial and Industrial Community

74. The Government will continue to develop the Bumiputera Commercial and Industrial Community (BCIC) as part of the agenda to restructure society and ensure more meaningful participation of Bumiputera in the economy. The second phase of the BCIC programme will be launched, with the aim of developing Bumiputera entreprenuers who are independent, resilient and competitive, as well as to develop sustainable Bumiputera SMEs. To improve the implementation of BCIC programmes, we will seek to improve the capability of trust agencies, GLCs and co-ops. The involvement of Bumiputera in new growth areas will be encouraged. The franchise and vendor development programmes will be strengthened. We will be more systematic and focused in our approach to develop rural-based entrepreneurs, specifically agro-based and handicraft SMEs.

Achieving A Balanced and Meaningful Development

75. In order to bring about more balanced development so that its benefits are shared fairly and equitably among the rakyat, there has to be strong commitment from the government, private sector, non-governmental organisations, as well as each and every Malaysian. Programmes to create a more balanced socio-economy never meant that existing wealth of any group would be re-distributed. Instead, it is aimed at increasing wealth and re-distributing the future expanding cake gradually through the active and direct participation of all groups in the country’s growth process.

76. Studies have shown that by undertaking the steps that we have recommended, including that of distribution, by the year 2010, household income would be raised by 25 per cent on average, from today’s levels. In other words, all races would be able to enjoy a rise in their income levels. What needs to be stressed here is the fact that by implementing distribution policies, not only the Bumiputera, but all other races will be able to enjoy the benefits as well.

77. Nevertheless, the Government is cognisant of the need for distribution policies and programmes to be properly designed, implemented and monitored in order to be fair to all groups. Poor implementation and monitoring of policies allows for leakages and abuse to occur and hence, the benefits will only be enjoyed by a small group of people. This should not be allowed to occur. In order to realise a more balanced and meaningful development, we must accept the fact that a policy that does not provide meaningful opportunities for all groups, primarily the majority group, is not viable in the long-term.

78. Therefore, we are committed to implementing distribution policies fairly and effectively. The Government will ensure speedy set-up of implementation and monitoring structures to ensure that the impact of the policies and programmes will be realised as soon as possible. We must view the target of achieving social justice and harmony as a duty (amanah) entrusted to us. We have to undertake this duty with sincerity and firmness so that our vision for a brighter future for our country and nation will come to fruit for this generation and the generations to come.

Thrust Four: Enhancing the level and sustaining the quality of life

79. A nation’s development is also evaluated by the quality of life of its citizens. The Government will ensure that all citizens benefit from the development programmes and share the fruits of success. Such development will be more meaningful if it is equitably shared to improve the quality of life of the citizens.

Meeting housing needs and improving urban services

80. In the Eighth Malaysia Plan, the number of houses built exceeded the set targets. The quality of low cost houses also improved. We will continue to ensure sufficient quality and affordable housing for all citizens, especially for those in the lower income group. The Government will build approximately 43,800 units of low cost houses through Program Perumahan Rakyat. This will be complemented by the building of approximately 29,000 low and medium cost houses by Syarikat Perumahan Negara Berhad. The private sector must complement such Government efforts to build low cost houses through mixed development projects.

81. We will continue to enhance the quality and efficiency of urban services by restructuring local authorities and applying Key Performance Indicators (KPIs) to monitor performance. Local authorities have an important role in ensuring clean and environmentally-friendly surroundings in which, people can work and live in a more conducive lifestyle. A conducive, clean and nature-friendly environment in residential and commercial areas will directly assist in inculcating a first class mindset amongst the citizens. Local authorities have a key role to play in furthering the national agenda by providing attractive and well planned business premises for Bumiputera. The use of ICT will also be expanded to enhance efficiency of services. The Government will also implement the National Solid Waste Management Strategic Plan. The National Urbanisation Policy will be formulated to assist in the planning and implementation of urban services.

Improving healthcare services

82. Facilities for health care will be improved to provide for an active and alert society. Current facilities will be upgraded whilst new facilities will be built to provide a comprehensive package of services. This includes building 8 new hospitals, replacing 14 old hospitals and building specialist centres. Mobile clinics will be increased to improve healthcare services in rural areas. Primary, secondary and tertiary healthcare services will be integrated through an efficient and effective referral system. A human resource action plan will be drafted and RM1 billion will be allocated to human resource development in healthcare.

Improving transportation facilities and infrastructure

83. A superior public transportation system that meets the needs of the people is another characteristic of a developed nation. The high incidence of road accidents and traffic congestion that arises from limited road capacity are extremely unproductive for the country. This is exarcerbated by the increase and instability in the price of petroleum derived fuels. The Government has the political will to improve the public transportation system effectively. The establishment of the Public Transport Trust Fund will be one of the initial steps in this direction.

84. The commuter, LRT and monorail systems have proven to be effective investments. Nevertheless, these systems need to be integrated comprehensively with a wider network in order to become the choice mode of transportation. We need a complete feeder system, on-time services, increase in frequencies and less waiting time. Transportation planning must take into account the growth of new residential areas, new commercial centres and complexes, new public infrastructure such as schools and also population growth and density.

85. A National Commission will be established to regulate the overall public transportation system in the country and a specific commission will be established for the Klang Valley. Integrated transport terminals will be built in Gombak and Bandar Tasik as transit hubs to Kuala Lumpur. The Government will also implement a number of major projects across the country, including the Penang Monorail and the Eastern Dispersal Link in Johor.

86. The Government will continue building new roads and upgrade current roads to facilitate access to less developed areas and to link regional growth centres with areas that have tourism potential.

Ensuring the sustainability of energy supply

87. Adequate and quality energy supply is key to the nation’s development. The public has to realise the value and scarcity of such resources. An energy conservation culture must be inculcated. Such resources need to be prudently and carefully utilised. Buildings should be designed to optimize energy usage. The Government will adopt measures to reduce wastage by enhancing energy efficiency and increasing energy sufficiency. The Government is also committed to reduce dependence on petroleum products through the increased usage of alternative fuels such as biofuel and biodiesel as well as renewable energy

Enhancing water supply systems and overcoming floods

88. I am deeply saddened by what is happening to the nation’s water resources. Contamination has killed off much of our aquatic life. Rivers that were once abundant with fish, prawns and terrapins are now barren.

89. As revealed by God, this is the Earth’s retribution against the cruelty of mankind. Overlogging, encroachment into water catchment areas, unrestrained greed, indiscriminate waste disposal in rivers and drains are among the root causes. God has bestowed this Earth with rain and rivers that flow from hilltops to valleys. These gifts must be honoured and protected. Many around the world suffer from a shortage of water. If we do not exercise due care, our country will soon face a water crisis in the near future. We must therefore manage our water resources more efficiently and responsibly.

90. The Government will focus on improving the quality, coverage and reliability of water supply. Suruhanjaya Perkhidmatan Air Negara (SPAN) will regulate the quality of water supply throughout the country to safeguard the interests of consumers. Water supply infrastructure will be built and upgraded. Among the major projects that will be implemented include the Pahang-Selangor Inter State Raw Water Transfer, Triang and Batu Hampar Water Supply Scheme in Negeri Sembilan, Sandakan Phase 2 in Sabah as well as Phase 2 of Langat Water Treatment Plant in Selangor. The Government will also allocate RM1.48 billion to rehabilitate the distribution network to reduce the rate of non-revenue water from 38 percent in 2005 to 30 percent by 2010.

91. We will continue to initiate flood mitigation measures. We will not be able to adequately develop the eastern corridor and other regions without overcoming the flood problem. The Government will spend almost RM4 billion for flood mitigation projects, compared to RM1.79 billion the Eighth Malaysia Plan. Flood mitigation projects will be implemented. Apart from that, flood prevention measures will also be implemented through control of land usage as well as an integrated forecast, warning and response system that is efficient.

Ensuring environmental sustainability and resource management

92. God has blessed the country with natural resources and an environment that provides nutrition and medicine. Beaches and seas, hills and rivers, tropical forests and flora and fauna are national treasures which are valuable assets and an attraction for eco-tourism. Unfortunately, such beauty is being destroyed by irresponsible human action and greed. The environment is damaged, degraded and contaminated. Our treasures will becomes extinct and God’s gifts lost forever. We must learn our lessons from past mistakes.

93. Therefore, the Government has a responsibility to ensure there is a balance between development and environmental sustainability. We will step up enforcement and increase preventive measures. For this purpose, RM510 million has been allocated for cleaning, preserving and beautifying rivers; RM350 million for coastal management; RM200 million for reforestation; and another RM70 million for the management of wildlife and protected areas.

Developing sports

94. Sports plays an important role in strengthening national harmony and unity, instilling patriotism and developing a disciplined and competitive society. Malaysia will continue to promote both mass and high performance sports. We will give emphasis to inculcate a sporting culture amongst the citizens whilst working towards sporting excellence at the international level. 13 Community Sports Complexes will be built. The private sector will be encouraged to provide sporting and recreational facilities as well as sponsor sports and recreational programmes.

National defence and maintaining public order 95. National security and public order have a major influence on the political and economic climate. A country which is free from any internal or external threats can increase investor confidence and ensure political stability. The level of crime in the country needs to be mitigated effectively. The move to improve the effectiveness of the police force by improving capacity will be given significant attention. It is also important to enhance and modernise the national defence mechanism to safeguard sovereignity. Apart from the role played by the army and police force, citizens must assist in ensuring stability. The media, political parties, non government organisations as well as individuals must be sensitive to issues related to religion, race, culture and language and must not instigate issues that threaten peace and security. Thrust Five: To strengthen the institutional and implementation capacity of the country

96. The National Mission and the Ninth Malaysia Plan were formulated based on the input, views and feedback from various parties. The planning contained therein may not be perfect and may require further refining. However, the more important thing is to ensure effective and efficient implementation. Malaysians want to see the political will and determination of the Government in implementing this Plan as the first step towards realising the National Mission and ultimately achieving Vision 2020.

97. Hence it is the Government’s duty to structure the implementation, monitoring and evaluation machinery to become more effective. It is the responsibility of the Government to build the capacity of that machinery with first class human capital development. It is the duty of the Government to improve and amend existing laws and regulations in order to facilitate development and reduce obstacles.

98. Therefore, the the fifth thrust of the National Mission is to strengthen the country’s institutional and implementation capacity. The Government will improve organisational structure; facilities and work environment; the quality of human capital; and laws and regulations. With these steps, the Government excpects to enhance the performance of frontline Government agencies as well as improve the delivery system particularly amongst government-linked companies (GLCs).

99. As a specific step towards strengthening the country’s implementation, monitoring and evaluation system, I would like to announce in this august House the restructuring and re-scoping of the National Economic Action Council (NEAC). The NEAC will henceforth focus on the implementation of programmes and projects to ensure effective service delivery. I am also proposing the establishment of two National Implementation Action Bodies; one to monitor selected high impact projects from the Ninth Malaysia Plan and the second to monitor programmes related to the formation of a new generation of the Bumiputera Commercial and Industrial Community (BCIC2). I will chair both bodies and other members will include the Deputy Prime Minister, relevant Cabinet Ministers and the Chief Secretary to the Government. These two Bodies will be supported by a National Implementation Directorate, which will comprise project management experts.

100. Additionally, human capital development amongst the civil service will be intensified. Local and foreign institutions will be involved in the education and training. Meanwhile, laws and regulations which impede development will be reviewed and amended. For this task, a Public-Private Sector Action Committee will be formed to recommend needed amendments to laws and regulations.

101. I would like to caution however that the success of implementation does not only rest on the public sector; other institutions such as the private sector, civil society, Parliament and the media all play vital roles. Indeed, the collective effort of all these institutions will determine the level of our achievements in economic growth as well as social progress.

102. I would like to emphasise once again that the country’s implementation machinery must be predicated on the values of trustworthiness and integrity in order to increase accountability and to raise qualitative standards of national administration. Without trustworthiness and integrity, the country cannot be said to be developed in the true sense of the word, no matter how developed the economy, the social landscape or the quality of life.

103. The National Integrity Plan has been drafted and it contains plans and strategies towards building a society with integrity. The implementation of the National Integrity Plan will be strengthened. The Malaysian Integrity Institute will intensify steps to educate and create awareness in the public sector, private sector and the public to encourage the practise and internalisation of integrity in work and in everyday life.

104. The Government remains firmly committed to combatting corruption even if efforts appear to run against the tide. To step up the battle against graft, we will increase enforcement by adding more manpower, equipment and other enforcement tools. Anti-Corruption Agency investigating officers will be trained in latest techniques. At the same time, regulatory agencies such as Bank Negara and the Securities Commission will continue to ensure that private sector companies improve the quality of corporate governance and adhere to related regulations. To ensure more effective enforcement in the corporate sector, the Securities Commission and the Companies Commmission will be merged to oversee nearly all laws related to commercial entities in Malaysia.

DEVELOPMENT ALLOCATION

105. To achieve the National Mission during the Ninth Malaysia Plan, the Federal Government will allocate a total of RM200 billion for development expenditure, an increase of RM30 billion from the Eight Malaysia Plan. Furthermore, projects worth RM20 billion will be implemented through private finance initiative. Out of the total allocation, 44.9 percent will be distributed to development projects under the economic sector; 37.5 percent for social sectors; 10.6 percent for security and 6.9 percent for general administration.

106. For the sub-sectors, education and training receive the biggest percentage of the allocation, at 20.6 percent, in line with the Government’s resolve to enhance the human capital quality. Public transportation sector’s allocation is 15.9 percent; energy and public facilities, 10.9 percent; trade and industries, 9.9 percent; agriculture, 5.7 percent; health, 5.4 percent; and housing, 5.0 percent. For development allocation by state, we have taken into consideration the need to reduce the development gap between state and between regions. The Government is confident that the allocation is adequate to give effect to the intention and objective of the Plan.

CONCLUSION

107. The Ninth Malaysia Plan allows us to identify the progress we have made, identify weaknesses and put us on the track to achieve developed nation status by 2020. The National Mission provides a long-term perspective; formulated to produce better performance and enhance the impact from the efforts that have been undertaken to develop the nation.

108. It is of utmost importance that we ensure implementation is on schedule; and that the returns we generate commensurate with our spending. Implementation, monitoring and assessment mechanisms will be strengthened. The Economic Planning Unit and Implementation Coordination Unit under the Prime Minister’s Department will be responsible to ensure that the programmes implemented are in line with the development thrusts and accomplish the objectives set. I, with the assistance of my Deputy, will be heading the high-level taskforce to monitor the implementation of the Ninth Malaysia Plan.

109. We need full commitment and concerted efforts from all parties to ensure the successful implementation of the Ninth Malaysia Plan. I would like to reiterate that each one of us plays an important role in ensuring success of our nation and our race. The private sector must take the lead in generating the economic growth while the public sector enables economic growth and is the provider for socio-economic facilities. Civil society must be a partner in development. If we want to realize our aspiration to become a developed nation, every citizen has to show commitment and willingness to work hard, improving our self-worth and embrace life long learning.

110. May we achieve our wish to build a nation that is more prosperous, developed, progressive and dynamic; a nation that is capable of providing a better quality of life to its people. May we build a golden civilization that earns the respect of the world. May the Almighty bless our sincerity and labours.

111. Ya Allah, You are the One Exalted in Power, the One Full of Knowledge – between the good and evil; between the obvious and the unseen. Protect us from calamity and danger – from disturbances and strife; grant us our prayers; guide us to righteousness and to the path that You bless, provide us with people that are sincere, trustworthy, noble and honest; responsible in building a developed nation – building a united people – we forever seek Your blessings, “Towards Excellence, Glory and Distinction”.

Mr. Speaker, I move the motion.

Friday March 31, 2006



Works Ministry wants RM30bil

KUALA LUMPUR: The Works Ministry has sought RM30bil to carry out 692 development and infrastructure projects under the Ninth Malaysia Plan, its minister Datuk Seri S. Samy Vellu said.

He said the request included RM19.67bil for 296 projects approved under the Eighth Malaysia Plan that would be continued under the new plan.

Samy Vellu said priority would be given to complete projects started under the Eighth Plan, except for large projects, which would be carried out in stages.

He said the Economic Planning Unit had approved 145 projects valued at RM8.75bil although 180 projects were proposed by the various states in the peninsula, while all 79 projects valued at RM3.66bil for Sabah and Sarawak were approved.

Samy Vellu said the ministry approved 14 road projects valued at RM2.53bil proposed by the Malaysian Highway Authority ,and RM1.47bil for construction of buildings, housing and jetties and the purchase of computers.

Friday March 31, 2006



MSC to go into phase 2

By H. AMIR KHALID

THE Multimedia Super Corridor will go into its second phase with the inception of the 9th Malaysia Plan. Development of existing MSC cybercities will continue, and newly-identified cybercentres in Perak, Malacca, Johor and Sarawak will also be developed. This should bring another 250 multinational companies into the MSC.

The number of MSC-status companies is projected to grow from 1,421 as of last year to some 4,000 by 2010, and these are expected to create some 100,000 new jobs and generate about 1,400 new intellectual properties.

Malaysia will also promote local-foreign cooperation in ICT (information and communications technology) research and development; extend MSC benefits in line with the geographical expansion of the MSC; and encourage the usage of domestic IT products and services.

The MSC will also set up more technology incubators under its Technopreneur Development Programme to nurture new ICT ventures, with enhanced mentoring help and technology risk assessment services provided to technopreneurs. It will also foster the creation of an innovative research community via the R&D Cluster initiative.

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Students using computer Internet access at SRK Dato Hashim 2 in Pengkalan Chepa, Kelantan recently. The development of Web-enabled Smart School applications is to be accelerated.

Cyberjaya itself is to be further developed as a national ICT hub with a pro-business environment. It will also be made into a wireless-broadband city as a testbed for new applications.

The Multimedia Development Corp (MDC) will embark on joint strategic marketing and promotional programmes with the local private sector, as well as promote more alliances and joint ventures between local companies and foreign multinationals.

The MDC will also be geared towards providing technical and consultancy services to guide lead agencies in implementing MSC multimedia applications. To this end, it will set up a new applications centre to develop and test new technologies, keep abreast of new technologies, and build up core competencies.

As for the Government itself, its e-Services project will see more services introduced and made accessible from a single portal, while the various government applications are to be streamlined to ensure compliance with global standards by benchmarking applications against international standards.

The development of the Government Multipurpose Card as a common applications platform will be continued, and more security features will be added as necessary. The development of Web-enabled Smart School applications is to be accelerated. Private healthcare providers will be encouraged to join the public sector in the implementing the Life Health Plan services to improve national health planning and execution.

Friday March 31, 2006



Making plans to boost ICT sector

By JO TIMBUONG

THE 9th Malaysia Plan will help the Government boost the adoption of ICT (information communcations technology) in the country.

To aid it in its task, the Government has MyICMS, a blueprint for the development of the local ICT sector; the promise of Internet Protocol version 6 (IPv6) which would enable more IP addresses and better security on the Web; and Radio Frequency Identification (RFID) technology that offers wireless identification and tracking capabilities.

Among the stumbling blocks to the increased use of ICT are the slow uptake of broadband Internet among Malaysians, the incomplete mobile communications coverage in the country, and the bridging of the digital divide between the technology haves and have-nots.

The Government plans to address the nation's slow broadband uptake by accelerating the implementation of its National Broadband Plan (NBP).

NBP aims to boost the broadband Internet access penetration rate to about 10% of the population by 2008.

Drafted by the Malaysian Communications and Multimedia Commission in 2003, it also aims to provide 2.7 million homes in Malaysia with broadband access by 2007.

The Government will also consider last-mile technologies such as wireless broadband and broadband over power lines, to reach areas in the country that lack telephone landlines.

This will in effect increase broadband take-up from the current 1.9% to 13% by 2010.

Next, the number of cellphone users in Malaysia is expected to increase to 85% of the population by 2010, so national communications coverage and interoperability will need to be improved through the expansion of 3G (third-generation) mobile services in phases.

Cooperation between mobile service operators and local content providers will be enhanced under the 9th Malaysia Plan to ensure the extensive provision of mobile Internet to consumers, the Government announced.

It said it would implement MyICMS in phases to promote the growth of ICT infrastructure, products and services.

The implementation will include increased integration of the Internet, mobile telephony and broadcast services.

Internet service providers would be encouraged to consolidate and share communications facilities, as well as set up common facilities and interoperable systems.

The Government is also considering migrating from the current Internet Protocol version 4 (IPv4) to IPv6 in view of the latter's improved features.

Friday March 31, 2006



Telehealth services pilot project

THE government has selected Seberang Prai to implement its telehealth services pilot project under the 9MP.

The project is a test bed to see how the interoperability and sharing of information through lifetime health record (LHR) and lifetime health plan (LHP) would be introduced.

The government also plan to have a nation-wide information system, linking public and private facilities, to allow the transfer of patients information among providers whenever and wherever required.

The aim is to have a borderless and continuous care for the convenience of the public. This will also see a centralised National Health Informatics Centre that processes health-related information for a timely, quality and reliable respond.

At the same time, rural folks in Sabah and Sarawak can look for a better health care services as the government plans to expand its teleconsultation services there.

Other plans under the 9MP include the implementation of hospital information system (HIS) in selected hospitals and clinics to improve health care delivery.

Under the 9MP, HIS will be implemented in phases.

Friday March 31, 2006



RM11.6m less for culture

By REVATHI MURUGAPPAN

ARTISTS are not going to happy when they find out the culture, arts and heritage allocation has been reduced by RM11.6mil under the 9MP.

During the Eighth Malaysia Plan, the expenditure was RM454mil but for the next five years, the budget is RM442.4mil.

Of this total, 63% is to be used for preservation and conservation of cultural heritage and the balance, for implementation of various arts and cultural programmes.

When former Prime Minister Tun Dr Mahathir Mohamad launched Vision 2020, he outlined various challenges we had to overcome en route to achieving developed country status.

The first of the challenges was to establish a united Malaysian nation with a sense of common and shared destiny.

Every race is championing their respective cultural traditions but there is no sight of an integrated bangsa shaping any time soon.

“I have never believed in Bangsa Malaysia as defined and articulated by politicians. In that sense, I do not believe that Bangsa Malaysia is shaping well.

“However, I believe in our deeper history of interaction and cultural confluence”, said Eddin Khoo, director of Pusaka, Centre for the Study and Documentation of Traditional Performance in Malaysia.

Co-founder and director of arts portal Kakiseni.Com, Kathy Rowland said she was confused as to what exactly the term referred to.

“Our politicians are even more confused than we are. Everyone is saying a different thing,” she remarked.

However, Khoo is happy to note that the current administration has identified cultural awareness as a priority. Although the new consolidated ministry has made many positive changes in terms of preserving our arts, culture and heritage, Malaysia lags behind in comparison with other developing countries.

Malaysia is behind Singapore in the development of the arts and unlike sports, there is no arts education curriculum in our schools and almost every art-centred activity is placed under optional co-curricular activity.

“If you don’t lay the groundwork in our schools, you can’t expect our students to jump into university and study the arts. How can you achieve a pool of creative talent when they have no basics?” asked Rowland.

“What is positive is that there has been a real investment in terms of infrastructure. We finally have our own national theatre. Cambodia built hers in the 1960s!” added Rowland.

Although Malaysia’s heritage is rich, complex and cosmopolitan, Khoo believes the resplendent heritage was under threat from more puritanical forces who would like to see a more mono-cultural, racial-religious-community-centric cultural condition in Malaysia

“The Malaysian heritage is an encapsulation of the nation’s historical and cultural reality. It is not an experience that can be shaped by edict or policy. Edict and policy must be directed only at helping illuminate the complexities of the nation’s cultural composition,” said Khoo.

“Among the more pragmatic ways of preserving our cultural heritage is imbuing an appreciation of it within the very fabric of Malaysian society – in the education system.

“For example, allow and encourage a greater public interaction with our heritage,” he added.

Khoo was delighted with the National Heritage Act 2005, calling its enforcementa momentous achievement.

He added, however, it was important to appreciate what lay behind an act of preservation or it became a sentimental exercise.

Rowland said heritage should be a way of life, practised by every Malaysian.

“We must remember not to enclose heritage in a glass case and say, it cannot be changed. Then it becomes a problem.”

It’s a long shot to nurture more talents in arts and craft.

“Until we are able to convince the public that the arts and craft industry is viable and can lead to professional opportunities, that it is a realm in which creativity and the imagination can evolve and be appreciated, the potential of the arts and craft will remain unrealised.

“Again, these principles should be embedded within the education system,” opined Khoo.

On making Kuala Lumpur a cultural hub for the region, Rowland said it was unfortunate that culture was often seen as a commodity for the tourist industry, thus the aesthetic value was sometimes lost.

Khoo believes Kuala Lumpur has great potential but a lot of its facilities are not being put to good use. For instance, there are no buses or LRTs to Istana Budaya, our cultural pride.

“It all comes down to how seriously we take ourselves as people. Malaysians don’t take themselves seriously. We would like to leave our cultural interactions to attending Muhibbah open houses,” said Khoo.

Friday March 31, 2006



Reducing regional imbalance

STATES placed below the national average on the Development Composite Index (DCI) will be given extra attention to reduce regional imbalance.

There will be specific programmes and also increased allocations to boost development.

Steps will also be taken to reduce disparities in per capita and household incomes, incidence of poverty in the less developed states, and disparities in infrastructure and utilities between Sabah and Sarawak and the states in the peninsula.

To ensure higher economic growth, development efforts will focus on growth centres in the respective states as well as trans-border areas involving two or more states.

Among the trans-border areas are the Northern Terengganu-Southern Kelantan-Western Pahang zone, identified as the Eastern Corridor, as well as Kedah, Perlis, Seberang Prai in Penang and northern Perak, identified as the Northern Peninsular Development Zone (NPDZ).

Set to receive a development allocation of RM23.8bil under the 9MP, compared with RM20.8bil under the Eighth Plan, the NPDZ will spearhead the development of food industries, including halal hubs.

Infrastructure projects include the Trans-eastern Kedah Hinterland Highway, an integrated halal hub and permanent food production parks in Kedah, expansion of the Kulim Hi-Tech Park and the Penang Outer Ring Road.

The Central region, which is the most developed region in the country, continues to require projects to meet its development needs.

The Central Region, the most developed in the country, continues to require projects to meet its development needs.

Johor will receive an allocation of RM10.2bil, compared with RM9.2bil under the previous plan.

The Kuala Terengganu airport will also be upgraded while the main campus of a new university will be located in Besut.

Sarawak will receive RM13.4bil and Sabah RM15.7bil for development projects.

Friday March 31, 2006



Shift to public transport

ROADS in the Klang Valley will see a drastic drop of private vehicles if the Government's plan to reduce the usage of private vehicle and increase public transport usage is realised within the next five years.

In 2003 only 16% of people travelling within the Klang Valley used public transport, while the figure in 1985 was much higher at 34%.

According to the 9MP the development of urban transport will focus on a shift from private vehicles to public transport. The government’s target is to improve the public to private transport split by achieving a ratio of 30:70.

These include expansion of Light Rail Transit (LRT) and Komuter services, procurement of more rolling stock and buses, enhancement of stations as well as park and ride facilities.

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Integrated transport terminals would be constructed as transit hubs to enable inter-city passengers to access the central areas of Kuala Lumpur by urban rail systems.

To realise this the allocation for urban transportation under the 9MP has been more than doubled to RM1.56bil compared with RM706mil under the 8MP.

A commission would be set up to regulate public transport systems in the Klang Valley. The commission would also be responsible for the planning, coordinating and licensing of all public transport modes in the Klang Valley.

The 9MP would see the construction of ring roads and bypasses at Georgetown, Seremban and Johor Baru.

The Stormwater Management and Road Tunnel project in Kuala Lumpur is scheduled for completion in December 2006. The motorway section of the tunnel is expected to ease traffic congestion at the southern gateway to Kuala Lumpur.

Existing public transport facilities and services would be upgraded and further integrated to encourage a modal shift from private vehicle usage to public transport.

The allocation for road building and maintenance in the urban areas under the 9MP is RM17.3bil, a reduction of RM1.1bil or 6.2% compared to the 8MP.

However, the allocation for rural roads has increased to RM3.64bil, an almost 60% increase compared to RM2.28bil for the 8MP.

Under the rural roads programme, more roads would be constructed to improve the transportation of agricultural produce from rural areas.

The programme would be expanded to connect resettlement areas to rural industrial areas and estates, particularly in Sabah and Sarawak.

The review of the Highway Network Development Plan to be completed by the end of the year would identify priority projects to improve the national road network in peninsular Malaysia.

As for rail transport, a sum of RM3.63bil was allocated, a drop of 31% compared to the 8MP. The development of rail transport would focus on increasing operational efficiency as well as a major mode of freight transportation and an effective alternative inter-city transport for passengers.

These include track realignment and improvement works from Taiping to Padang Rengas.

New stations would also be built to serve new growth areas as well as replace old ones. However, old stations that have heritage value would be restored.

Rail services in Sabah particularly the stretch from Tanjung Aru to Tenom would be upgraded to reduce travel time between the two destinations by half.

The overall allocation for transport under the 9MP is RM30.3bil, slightly lower than the RM30.9bil allocated under the 8MP.

Friday March 31, 2006



Expanded network

ALLOCATION for airport infrastructure will see an increase of 61% from RM1.77bil to RM2.86bil under the 9MP whereas allocations for port infrastructure will see a decrease of 47% from RM2.44bil to RM1.29bil.

The reason for an airport allocation increase is because airport passenger traffic is forecasted to grow at an average rate of 5.8% per annum to 54.5 million passengers in 2010.

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The forecastgrowth in air traffic will require the continued expansion of airport capacity and facilities as the KL International Airport is expected to reach its capacity limit of 25 million passengers per annum by 2008.

Work to increase capacity to 45 million passengers per annum is scheduled to commence during the 9MP period.

Upgrading works will also be completed by the end of the 9MP period on the airports at Kuching, Kota Kinabalu, Labuan and Kuala Terengganu.

The expected increase in flight frequencies will also require sophisticated traffic control equipment and money will be spent to upgrade current equipment for greater efficiency.

http://thestar.com.my/archives/2006/3/31/9MP/cargo.jpg

The report added that airlines from Asean countries would have unrestricted access to Asean capitals by 2008 with the Government continuing to liberalise air services.

Malaysia Airlines will also be focusing on building a more viable and sustainable network and increasing its market share in the regional market.

As for ports, efforts to enhance performance and productivity of ports will be continued in view of stiff competition from regional ports.

Measures to be undertaken include promotions to attract more main line operators and forging alliances with international ports, especially for Port Klang and Port of Tanjung Pelepas.

Additional gantry cranes and other operating equipment will be purchased and cargo storage facilities upgraded.

Focus would also be given to improving navigational safety and reducing sea pollution.

The report said river transport would continue to support the socio-economic and cultural development of Sarawak.

Saturday April 1, 2006



9MP: Construction sector a top gainer

THE construction sector has emerged as one of the biggest winners in the Ninth Malaysia Plan (9MP) with the approval for quite a number of large infrastructure projects after two years of absence.

The stage has been set for a strong foundation for the economy to grow and prosper, as well as enhancing the people's well being.

Infrastructure and construction companies are now looking forward to clinching more lucrative projects after the two-year long drought that plagued the sector and resulted in poor earnings performance among industry players.

The 9MP has provided significantly larger allocations in areas such as sewerage, water supply, flood mitigation, public transport and rural roads upgrades.

All the large industry players have built up expertise and experience in these areas and are well positioned to participate in these upcoming projects.

Heads of these companies are eager to get on with these projects and are hoping the relevant ministries will expedite announcement of the said tenders so that contractors can immediately bid for them.

Master Builders Association Malaysia (MBAM) has appealed for the allocation to be quickly broken into smaller contracts so that a wide group of registered contractors and subcontractors will benefit from the projects.

Lauding the generous allocation, MBAM said the money to be pumped into the sector would spread and spur domestic consumption spending, sustaining employment of a large construction workforce and utilisation of locally produced equipment and materials.

There is a good spread of projects across the length and breadth of the country.

Penang folks have every reason to smile as the state will be getting the long-awaited second Penang Bridge, estimated to cost RM2.6bil; the monorail project (RM1.2bil) and Penang Outer Ring Road (RM1bil).

The other notable projects include the Pahang-Selangor Raw Water Transfer project, estimated at RM3.8bil, which will solve the water woes of Klang Valley folks.

In Johor, a new state administration centre will be built in Bandar Nusajaya while the Senai Airport will be expanded.

Friday, March 31, 2006

RM200bil to be set aside for construction
By KEITH HIEW

PETALING JAYA: The development allocation for the construction sector under the Ninth Malaysia Plan (9MP) could well reach RM200bil, an 18% increase from the RM170bil spent under the 8MP, analysts said.

Should the RM200bil allocation go through, AmResearch Sdn Bhd said the projected 18% increase in development spending under the 9MP would still be much lower than the 81% and 71.6% higher allocation under the 7MP and 8MP, respectively.

''We deduce that construction spending is less likely to be as significant as in the previous two five-year plans, given that most of Malaysia's basic infrastructure has already been put in place,'' the research house said in a report yesterday.

It said the huge allocation of funds could be to cover inflationary elements such as transportation costs and higher raw material prices like steel, citing the example of the rise in costs for the proposed East Coast Expressway to RM1.7bil from RM1.3bil in two years.

http://www.star-space.com/articles/news/2006/03/31/p2-newbuilding.jpg
A new building under construction in Kuala Lumpur - Reuterspic

''Stripping these inflationary elements, the real increase in development allocation could be less than our expectation of RM200bil.

''The upside to construction spending could be lower, should the Government decide to channel some funds towards other critical areas such as agriculture and biotechnology,'' it added.

The Government's role in new projects under the 9MP would be limited to footing bills for feasibility studies and design costs of new projects while construction, operations and maintenance of the infrastructure would be financed by the private sector, AmResearch said.

This would increase the burden on the private sector, especially with interest rates bound to rise and the under-developed status of infrastructure loans, it said.

Because of the increase in private funding, the research house said mega projects would most probably favour construction big guns like IJM Corp Bhd, Gamuda Bhd, Road Builder Holdings Bhd, WCT Enginneering Bhd, MTD Capital Bhd and Ranhill Bhd.

AmResearch thinks the Klang Valley and Sabah and Sarawak will still garner the lion's share of development spending under the 9MP.

It added that Ranhill and UEM Builders Bhd would be prominent players in Johor, while Naim Cendera Holdings Bhd, Hock Seng Lee Bhd, Cahaya Mata Sarawak Bhd were favoured in east Malaysia.

Avenue Securities concurred that east Malaysia could again be the focus of 9MP, with Sarawak bidding for RM3bil for its clean water supply programmes.

The state government, in its effort to make Sarawak a more broad-based economy, would include further development of the Coastal Industrial Zone and create more opportunities for research and development in the manufacturing sector.

Concerns would arise, though, that with an annual spending of around RM40bil from 8MP's average of RM34bil, the federal government would need to increase revenue collection to about 20%, Avenue Securities said.

9th Malaysia Plan: Samy Vellu will ‘find ways to speed up work’


KUALA LUMPUR: Public reaction was good. The lay person, NGOs and businesses all gave thumbs up to the Ninth Malaysia Plan (9MP).


But the nagging fear that many had was whether the bureaucracy could ensure the smooth implementation necessary to ensure the country remained on track to achieve the "National Mission" outlined by Prime Minister Datuk Seri Abdullah Ahmad Badawi when tabling the 9MP in Parliament today.

An emphatic "yes" was the response from Works Minister Datuk Seri S. Samy Vellu whose ministry will be largely overseeing most, if not all, of the socio-economic projects marked under the plan.

The ministry, he said, would form national and state level committees to ensure the smooth implementation of projects.

Their task, Samy Vellu says, is to find ways to speed up infrastructure projects once allocations and sites have been identified. And he promises that there will be "hands-on" management.

The committees will visit building sites and seek to quickly settle problems which arise, especially when third parties such as state land offices and local authorities are involved.

There will be proper disposal of construction waste and all payments for work contract jobs would be paid on time, thus avoiding delays and complaints from contractors who are not paid.

Samy Vellu said cost and time saving systems, such as the Industrialised Building System (IBS), which used structural steel, would be introduced where suitable.

9MP Report: Transport hubs to ease travel woes
By Minderjeet Kaur

April 1:
After a four-hour express bus ride, Suraj Panicker gets down at the crowded, smokey and humid Pudu Raya bus terminal. Pushing his way through the crowd, he is greeted by a long traffic snarl outside.


With luggage in hand, he has a 15-minute walk ahead to the Pasar Seni LRT station, where he’ll take a train to Kelana Jaya. By now, he is sweating and his hands are aching from the heavy load he is lugging.

Suraj puts up with such conditions whenever he comes to Kuala Lumpur from Johor Baru. He routinely travels every three weeks here for meetings and stays for four days each time.

“I dread coming here. The pollution and jams around the terminal are a put off,” he complains.

Like everyone else who is fed up with the conditions around the Pudu Raya terminal, Suraj can sigh with relief as the Government is planning to build an integrated transport terminal hub at Bandar Tasik Selatan.

He will soon be able to disembark at the Bandar Tasik Selatan terminal, which will cater to buses from the southern part of Malaysia.

From there he can hop onto the KTM Kommuter, or the Express Rail Link transit or the RapidKL light rail transit (formerly known as Putra LRT and Star LRT).

Transport Minister Datuk Seri Chan Kong Choy says passengers from the south will have a choice of transport at the hub.

“Those travelling to KLIA can take the ERL transit from here, instead of having to do so from KL Sentral, while others can choose the bus, taxi or other train services to get to their destination,” says Chan.

Suraj, like other frequent travellers, is glad that he will be able to avoid the Pudu Raya area.

“I do not mind taking the LRT to go to Kelana Jaya, as long as it is convenient and hassle-free,” he says.

According to Chan, another integrated terminal will be built to cater to buses from the East Coast.

“It will be located next to the RapidKL Gombak line. From there passengers from the East Coast will be able to take the train, buses and taxis to their destinations,” Chan says.

Both projects, which are under the 9th Malaysia Plan, aim to reduce congestion in Pudu Raya.

“The area is crowded, polluted and cannot cope with the increasing number of passengers coming into and leaving the Klang Valley,” Chan explains.

Both the hubs, he adds, will be connected by covered pedestrian walkways and have proper pick-up and drop-off points.

“There will also be plenty of buses and taxis waiting for passengers at any given time to ensure no one has to wait,” he says.

There are also plans to have a terminal hub for buses from the northern part of Malaysia. However, the ministry has yet to decide on the location.

The Government is also setting up a commission to oversee and regulate public transport system in the Klang Valley. The commission will plan, co-ordinate and licence all modes of public transport in the Klang Valley.

Several roads will be constructed or upgraded to improve traffic flow in major cities. These include the construction of ring roads and bypasses in George Town, Seremban and Johor Baru.

Also, the SMART project (storm water management and road tunnel) is scheduled for completion next year. The motorway section of the tunnel is expected to ease traffic congestion at the southern gateway to Kuala Lumpur.

There are also plans to develop rail transport and enhance the performance of ports to fight stiff competition from regional ports.

Rail infrastructure will be upgraded and the communications system modernised. These include track realignment and improvement works from Taiping to Padang Rengas in Perak and from Tanjung Aru to Tenom in Sabah.

New rail stations will also be built to serve growth areas as well as replace old ones. However, old stations which have heritage value will be restored.

River transport to support socioeconomic development in Sarawak will also be improved.

9MP: Govt allocates RM200b
By Joseph Chin

The government has allocated RM200 billion for development under the Ninth Malaysia Plan (9MP), up 17.6% from the RM170 billion in the Eighth Malaysia Plan (8MP).

Major beneficiaries would be education and training; energy and public utilities and commerce and industry, according to the report released on March 31.

Over the five years of the 9MP (2006-2010), the government targets annual gross domestic product (GDP) growth of 6% over the 9MP, with emphasis on price stability.

However, it does not expect to have a balanced budget over the five years of the development plan from 2006-2010.

http://www.theedgedaily.com/cms/storage/images/com.tms.cms.image.Image_500668ce-cb73c03a-bbfa5c00-1d199856/1/9MP_Inside.jpg
Prime Minister Datuk Seri Abdullah Ahmad Badawi with Deputy Prime Minister Datuk Seri Mohd Najib Tun Razak

“Overall federal government fiscal deficit is expected to be RM107.6 billion or 3.4% to GDP in the 9MP, lower than the 4.8% to GDP in 8MP,” it said.

The report also said domestic borrowings would be used to finance the debt and the net domestic borrowing is expected to reach RM106.3 billion under the 9MP (8MP: RM81.05 billion).

To manage the fiscal deficit, the government would increase the revenue base and improve efficient and effective use of government expenditure.

The federal government has set a revenue target of RM683.13 billion (8MP: RM461.39 billion) in taxes during the 9MP, with income taxes accounting for nearly RM300 billion.

It envisaged that companies would pay more income taxes under the 9MP totalling RM154.75 billion (8MP: RM120.17 billion) and individuals RM52.06 billion (8MP: RM44.93 billion).

Excise duties would also be a major revenue contributor to government coffers, as it forecast to collect RM58.28 billion in duties (8MP: 28.97 billion) and RM130.75 billion from non-tax revenue (8MP: RM66.23 billion).

http://www.theedgedaily.com/cms/storage/images/com.tms.cms.image.Image_4fca4685-cb73c03a-bbfa5c00-eef41110/1/ministry_allocation.jpg

Non-tax revenue including dividends from Petroliam Nasional Bhd and government-linked companies are expected to increase at 9.4% per annum from RM215 billion in 2005 to RM39.30 billion in 2010.

On development expenditure, the report said the ceiling for the 9MP would be RM200 billion.

About 35% of the 9MP allocation is for projects which have been carried forward from the 8MP. They are mainly infrastucture projects such as road and school projects.

Excluding the RM200 billion, an additional RM20 billion has been set aside as private finance initiatives. The government will outsource to the private sector projects with the RM20 billion allocation.

To reduce regional imbalances, emphasis would be given to develop states below the national average - the eastern region of Peninsular Malaysia, Sabah and Sarawak.

To speed up development in the northern region, RM23.8 billion or 11.9% of 9MP would be allocated. The projects include the Trans-Eastern Kedah Hinterland Highway in Kedah.

It said the central region would get RM56.2 billion or 28.1% of 9MP. The projects included building several federal roads and the Banting-Taiping Coastal Highway.

States in the eastern part of Peninsular Malaysia would receive a total of RM22.3 billion or 11.2% of 9MP (8MP: RM14.3 billion) for the Simpang Pulai-Gua Musang-Kuala Terengganu Road.

Sarawak would receive RM13.4 billion (6.7% of 9MP) for projects including upgrading the Oya-Mukha-Balingan road and the coastal Sibu-Bawang-Assan-Seredeng Road.

http://www.theedgedaily.com/cms/storage/images/com.tms.cms.image.Image_4fc87176-cb73c03a-bbfa5c00-a7bd136b/1/state_allocation.jpg

Sabah would be allocated RM15.7 billion (7.8% of 9MP) to complete the Sepulut-Kalabakan Roas and the Sipitang-Tenom Road.

The 9MP report also said that economic and social programmes would continue to be emphasised upon.

In the economic sector, funds would be channeled to agriculture, commerce and industry, infrastructure as well as utilities. Social programmes would focus on human resources development and improvement of basic amenities.

Under the sectors, the energy and public utilities would be allocated RM21.8 billion (8MP: RM12.72 billion); commerce and industry RM19.9 billion (8MP: RM10.17 billion).

Agriculture, the third pillar of the economy, would receive RM11.43 billion (8MP: RM7.75 billion).

Housing would also be given a boost with an allocation of RM9.95 billion (8MP: RM6.97 billion) while research and development would see its allocation doubled to RM3.86 billion (8MP: RM1.96 billion).

The government would continue to focus on education and training, which would see it receiving the largest allocation of RM41.11 billion (8MP: RM43.73 billion). Transport would be given RM31.87 billion (8MP: RM31.81 billion).

No wonder Sabah is the third biggest receiver of development allocation just behind Wilayah Persekutuan and Selangor...but the important things is that they should spend the money and not going to waste...

can i know what are the 26 projects???
"sebuah lagi projek kerajaan barisan nasional" X 26

"sebuah lagi projek kerajaan barisan nasional" X 26

Suppose to sound like this

SATU LAGI PROJEK BARISAN NASIONAL.

I have a question thou,
Shouldn't it is a gov. project- is the SATU LAGI PROJEK BARISAN NASIONAL use BN money? If that's true they are pretty rich party!

^^ I remember it being "Satu lagi projek Kerajaan Barisan Nasional".

Another project by the Barisan Nasional government, which is true.

It does not say another project by the Barisan Nasional party which would be a false statement, thats why the billboards do not say "satu lagi projek parti barisan nasional".

SMS polling on Ninth Malaysia Plan launched
Hamidah Atan
PUTRAJAYA, Mon:

Do you want to contribute to the success of the Ninth Malaysia Plan? Now you can with the launch of the public opinion poll via SMS today by Public Complaints Bureau.

The SMS poll system is managed by the Public Complaints Bureau with the co-operation of telecommunication companies.

The question is:

The sucess of the Ninth Malaysia Plan depends mainly on:





A. Change in attitude

B. Fair distribution

C. Effective monitoring

D. The government's delivery system, and

E. No corruption.


Send an SMS to 36367 and you will receive the question and answers. Choose your answers and reply to the SMS.

Each SMS is charged seven sen. The Public Complaints Bureau, working with mobile phone providers, will ensure that only one vote is allowed per phone number.

PCB deputy director-general Isbah Idrus said nearly 2,000 SMS had been received just a few hours after the topic was posted on its website at www.bpapoll.org. You may also take part in the online poll at the site. Registration is required to take part.

9MP goodies to boost small-cap stocks
By Adeline Paul Raj and Ho Siew Yee
April 3 2006

http://www.btimes.com.my/Current_News/BT/Monday/Frontpage/BT560651.txt/Article/Current_News/BT/Images/dailyn/the9mp.jpg



INVESTORS may want to buy shares of smaller firms in the construction, building material and water sectors which are seen as key Ninth Malaysia Plan (9MP) benefactors, analysts said.


These stocks could rise as their values are still attractive even after weeks of rallying before the plan was announced, Avenue Securities research head Noor Azwa Mohd Noor said.

Prime Minister Datuk Seri Abdullah Ahmad Badawi announced an 18 per cent rise in public development spending to RM200 billion for the 2006-2010 period from the previous five years. Another bulk of RM20 billion projects will be financed by non-government- controlled firms.

"The Government is focusing on the right areas in the 9MP, which is to increase the mindset of people as well as productivity. The plan will also ensure the country remains competitive.

"Given two to three months, the market might react reflectively towards the new plan," said Teoh Kok Lin, managing director of Singular Asset Management Sdn Bhd.

While research heads and fund managers agreed unanimously that the 9MP is indeed a good one, Noor Azwa said that the allocation, which was in line with most of the research houses' expectations, is unlikely to cause major ripples in the local bourse.

"The market had already anticipated it (the allocation). The small- cap construction, steel and water firms are the main beneficiaries, so it does not impact the big stocks much. Thus, there may not be much support for the market to go up without the blue-chips," he explained.

The benchmark index closed 0.34 point, or 0.04 per cent, lower to 926.63 points last Friday.

Some RM38.9 billion will be spent on infrastructure and utilities, including rural roads, rail development, highway extension, upgrading airports, construction of water supply as well as for flood mitigation projects.

Vincent Khoo, research head at Hwang-DBS Vickers, said the 9MP seemed more pragmatic, in that there were considerably fewer mega-projects and more of smaller ones. The mega-projects chosen to be implemented, he noted, were seen as being "needed and productive".

OSK Research is bullish over builders like Isyoda Corp Bhd, Prtasco Bhd, Ahmad Zaki Resources Bhd, MTD Capital Bhd and the UEM group while the bigger boys, such as Gamuda Bhd, IJM Corp Bhd and MMC Corp Bhd, will benefit from the bigger 8MP leftover projects, its research head Kenny Yee said.

Manufacturers like APL Industries Bhd as well as Sarawak players like Cahya Mata Sarawak Bhd and Naim Cendera Holdings Bhd will likely be in the limelight as well, Yee said.

"There's also a huge increase in allocation for water sector.

"This will benefit firms like Choo Bee Metal Industries Bhd, YLI Holdings Bhd, Hiap Teck Venture Bhd and Engtex Group Bhd," he added.

Can Malaysia achieve 6% annual growth amidst competition from particularly China & India? What are the criterias do we need? What are the issues we need to look into in order to achieve the set target by 2010? Lets discuss.

I'm seeing that now the main focus no longer stays solely on the Central Corridor (Klang Valley), but also to the Northern Corridor (Penang+Kedah+Perak), Southern Corridor (Seremban+Melaka+Johor), Southern Johor Economic Region (JB), Eastern Corridor (Kelantan+Terengganu+Pahang), Sarawak & Sabah.

Can Malaysia achieve 6% annual growth amidst competition from particularly China & India? What are the criterias do we need? What are the issues we need to look into in order to achieve the set target by 2010? Lets discuss.

I'm seeing that now the main focus no longer stays solely on the Central Corridor (Klang Valley), but also to the Northern Corridor (Penang+Kedah+Perak), Southern Corridor (Seremban+Melaka+Johor), Southern Johor Economic Region (JB), Eastern Corridor (Kelantan+Terengganu+Pahang), Sarawak & Sabah.


Malaysia has never been completely dependent on the central corridor. Just see what happens if the all the MNC's in Penang relocate. Penang has always been better at attracting hi tech factories compared to Selangor and KL. Just see what happens when all the MNC's in Penang relocate. The Malaysian GDP will plunge by at least 30% which is more than enough to trigger an economic crisis. Malaysia has yet to move into the post industrial stage unlike Singapore. Singapre can survive without factories due to the sheer number of financial institutions it attracts. KL is nowhere near Singapore in that area. Although KL has many high rise buildings, it still has one has the cheapest office rents in Asia.

Tuesday April 11, 2006



Smooth the way for 9th Plan by not delaying approvals

By K. PARKARAN and MANJIT KAUR



KANGAR: Whoever stands in the way of the 9th Malaysia Plan must go.

That is the Prime Minister’s stern warning to civil servants responsible for the implementation of the plan as he kicked off his nationwide tour to explain the 9MP to the rakyat.

If government officers cannot deliver, Datuk Seri Abdullah Ahmad Badawi said, they should take a rest.

http://thestar.com.my/archives/2006/4/11/nation/n_01paklah.jpg
SWEET SUCCESS: Datuk Seri Abdullah Ahmad Badawi tasting some grapes at the Perdana plantation in Bukit Bintang, Kangar, yesterday. With him is Perlis Mentri Besar Datuk Seri Shahidan Kassim (right). – Bernamapic

“In fact, they should take a permanent rest,” he suggested yesterday.

“We cannot entertain those who can’t work. We should not pity them when asking them to leave. We should pity the people who have been waiting for the approvals for so long.”

Abdullah said it was ridiculous that officers took two weeks to approve applications when it could be done in just three days.

”Besides the layers and layers of red tape, they also ask for ‘toll’ in some cases,” he said, in an apparent reference to corrupt practices.

“Facilitate, don’t frustrate when dealing with applications for approval,” he emphasised.

“Bureaucracy deters investors. Non-performers have to leave.

“The world is very competitive, and frustrated investors will look to other countries like China, India and Thailand.”

He said government officers should not be pointing fingers when something went wrong, but should look for ways to overcome the problem.

On the second link for Penang, the Prime Minister said: “I did not approve it (under the 9MP) just because I am from Penang.

“This project will spur development in the Northern Corridor where neighbouring states like Kedah, Perlis and Perak will also benefit.

“Coupled with the Penang International Airport, the region stands to gain.”

Abdullah said he would personally ensure that the 9MP was implemented effectively because that could “make or break” the nation’s march towards Vision 2020.

“Good ideas will go to waste if we don’t have good officers to implement them. Besides the ICU (Implementation Coordination Unit), we have also set up a special committee to monitor the implementation of the 9MP,” he said.

“I have even brought along two very senior officers of the Economic Planning Unit, including the D-G, with me this morning.

“That’s how serious we are.”

I agree with you ::yes::
Since Kedah is the neighbour of Penang, and Penang has the advantages to attract hi-tech industries, so Kedah takes the geographical advantages to establish Kulim Hi-tech Park in order to lure the foreign investors to invest in Northern Region since Kedah has plenty of lands. This will benefit the Northern Region, such as Perlis, Kedah Penang and Perak, by establishing a huge MSC status corridor indirectly (in the future...). For example, Intel has shifted its manufacturing factories to Kulim. The finishing products will be shipped to overseas by using Penang Port, exported to Thai through Perlis or Kedah bordertown and distributed to whole Malaysia by NSE. Just my 2 cents worth. :)
Malaysia has never been completely dependent on the central corridor. Just see what happens if the all the MNC's in Penang relocate. Penang has always been better at attracting hi tech factories compared to Selangor and KL. Just see what happens when all the MNC's in Penang relocate. The Malaysian GDP will plunge by at least 30% which is more than enough to trigger an economic crisis. Malaysia has yet to move into the post industrial stage unlike Singapore. Singapre can survive without factories due to the sheer number of financial institutions it attracts. KL is nowhere near Singapore in that area. Although KL has many high rise buildings, it still has one has the cheapest office rents in Asia.

For all i Know , if a country wish to accelerate growth within our states ; IT IS A MUST for us to equip ourselves with excellent transportation. i cite Singapore as an example: Their MRT position encourage human flow and spending ; THis produced a focus point , which helps shopping malls and commerical industry to cluster togather. It brings better cycle of coordination which explains Y Singapore CDB has been regarded as one of the best in the region.

I sincerely hope to see more Metro , LRT , monorail sprouting across nation-wide.

OH now... the Half Bridge to replace Johor-Singapore causeway has scrapped... at least I think this is the most rational decision...

- EDITED -

Ninth Plan seen a fillip to property mart in Johor, Penang

business times news
April 15 2006


THE property market in Johor and Penang is due to get a boost from the Government's plan to improve infrastructure in the two states under the Ninth Malaysia Plan (9MP), said Citigroup Global Markets Malaysia.

The research house said several developments in the recently-announced 9MP could spur the property market in the two states.

The developments include the South Johor Economic Region, Bandar Nusajaya, a logistic and education hub in Johor, an outer ring road and a second bridge for Penang.

Besides the 9MP, Singapore's plan to set up two integrated resorts in its country is also a potential long-term driver for Johor's property market, which has the second highest unsold residential units as at March last year.

The Singapore Government estimates that the two integrated resorts could create 35,000 jobs.

"We expect the employment opportunities created here to be a driver for stronger housing demand in Johor," Citigroup Global Markets Malaysia analyst Andrew Chow said.

The research house selected SP Setia Bhd its top pick among property stocks should the Johor and Penang property markets recover.

The group has 594ha of development land in Johor and 45ha in Penang with total gross development value of more than RM4 billion.

It is also present in the Klang Valley via Setia Alam development of 1,572ha, the land value of which is expected to increase when the construction of the link road to the North Klang Valley Expressway (NKVE) is completed.

"We reiterate our buy rating as we believe Setia's prospects and valuations look compelling.

"We expect a three-year earnings per share (EPS) compounded annual growth rate (CAGR) of 15 per cent. The shares are trading at a 29 per cent discount to our restated net asset value (RNAV) estimate of RM5.41 per share.

Citigroup has set a target price of RM4.90 for SP Setia. The stock closed 2 sen higher to RM3.86 yesterday.

Govt announces RM15b worth of projects

The government called tenders on July 18 for up to RM15 billion or US$4.1 billion, worth of government projects under the five-year Ninth Malaysia Plan.

The 880 projects cover more than 450 schools, as well as plans for water supply and road networks, Prime Minister Datuk Seri Abdullah Ahmad Badawi's office said in a statement posted on its website.

Shares of companies considered likely to snare some of the work have surged after Abdullah announced the US$54 billion (RM200 billion) plan in March. He did not give much detail on specific projects at that time.

Attention has focussed on construction companies such as state-controlled UEM World, which has seen its share price almost double since mid-March, to stand at RM1.68 ringgit by July 18's close of trade.

Also popular with investors are MMC Corp, which has risen 34% since mid-March, with its shares up 3.9% at RM3.22 by July 18's close, and UEM Builders, up 40% since mid-March, to stand at RM1.23 by close of play on July 18, or a gain of 3.4%. -- Reuters

880 Projects Worth RM15 Bln To Be Tendered Out Under 9MP
Business
July 18, 2006 18:39 PM
KUALA LUMPUR, July 18 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi on Tuesday announced that 880 new development projects worth RM15 billion under the Ninth Malaysia Plan would be tendered out soon.

The initial list of projects include the construction of 450 primary and secondary schools, roads, bridges, projects to increase water supply and the building of the integrated transportation terminal at Gombak in Selangor, he said in a statement issued from the Finance Ministry at Putrajaya.

Abdullah, who is also Finance Minister, said the road project is from Padang Besar to Kayu Hitam, the bridge would be between Semporna and Pulau Bum Bum in Sabah and the water project in Terengganu.

He said the government was aggressively pursuing programs and projects under the 9MP just a month after the plan was approved by Parliament.

While the list of projects announced was the initial list, he said the government would announce additional lists from time to time, after having obtained the required information from the respective ministries.

He said all ministries and agencies together with the Works Ministry have been directed to act quickly to come out with the project design and tender document so that projects could be implemented as soon as possible.

At the same time, "I want the entire government machinery to ensure that all other development projects approved under the 9MP are implemented quickly so that the people can benefit as desired by the government," said Abdullah.

The details of the tenders would be advertised in the local papers as well as on the government's website (www.gov.my), Works Ministry's website (www.kkr.gov.my) and the website of the Construction Industry Development Board Malaysia or CIDB (www.cidb.gov.my).

The list of projects can be obtained from the website of the Prime Minister's Office (www.pmo.gov.my), Ministry of Finance (www.treasury.gov.my) and Economic Planning Unit (www.epu.jpm.my).

He said a Programme and Project Management (PPM) methodology would be used by the Implementation Coordination Unit and the National Implementation Directorate to monitor the projects concerned.

The main feature of the PPM methodology would incorporate the best practices and process for the planning and implementation of these projects.

This includes ensuring that projects would be completed within reasonable costs and a fixed timeframe.

PPM would also develop a proven method to assess the effects and outcome accurately to ensure the programmes and projects implemented achieve their objectives.

"As the chairman of the National Implementation Action Body, I will monitor the implementation of these projects," the Prime Minister said.
----------------------------------------------------------------------------------------

anyone have details about the above projects...integrated transport terminal-Gombak! bridge between Semporna & P Bum Bum!

9MP details announced by PM: RM15b construction projects up for tender
Source : NewStraitTimes
19 Jul 2006

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Govt announces RM15b worth of projects
18 Jul 2006 6:45 PM


The government called tenders on July 18 for up to RM15 billion or US$4.1 billion, worth of government projects under the five-year Ninth Malaysia Plan.

The 880 projects cover more than 450 schools, as well as plans for water supply and road networks, Prime Minister Datuk Seri Abdullah Ahmad Badawi's office said in a statement posted on its website.

Shares of companies considered likely to snare some of the work have surged after Abdullah announced the US$54 billion (RM200 billion) plan in March. He did not give much detail on specific projects at that time.

Attention has focussed on construction companies such as state-controlled UEM World, which has seen its share price almost double since mid-March, to stand at RM1.68 ringgit by July 18's close of trade.

Also popular with investors are MMC Corp, which has risen 34% since mid-March, with its shares up 3.9% at RM3.22 by July 18's close, and UEM Builders, up 40% since mid-March, to stand at RM1.23 by close of play on July 18, or a gain of 3.4%. -- Reuters

Tenders For 9MP Projects To Be Out In Three Months
Business
July 19, 2006 19:47 PM
PUTRAJAYA, July 19 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi said tenders for projects under the Ninth Malaysia Plan (9MP) will be out in three months time.

The tenders will be put out by the respective departments, he told a press conference here Wednesday.

Tuesday, Abdullah who is also the Finance Minister, had announced that 880 construction projects worth RM15 billion would be tendered out soon.

Of the total projects, 455 would be implemented through government tenders while 425 projects would be funded by private finance initiative (PFI).

However, Abdullah pointed out that not all the projects would be implemented simultaneously this year as the 9MP was a five-year development plan.

He said the variety of projects under the 9MP would give opportunities to contractors.

On the priority of projects to be implemented, Abdullah said they were decided based on their location, urgency and ease of implementation.

Asked on the PFI projects, he said the government has decided to establish a RM5 billion Facilitation Fund, an allocation to assist the implementation of the projects.

He said the government has decided on the PFI projects but if there were any suggestions from the private sector to implement certain projects, they should fork out their own funding.

An example, he said, was the KL-South fast train project which was not in the PFI planning because of its high cost.

However, if the private sector feels that the project can meet the demand and be accepted by the public, it can be considered but they would have to come out with their own funding, he said.

"This is because the government has no plans to implement or provide an allocation but the government understands that it is very useful to the people," he said.

The prime minister said the private sector concerned should build the project and upon completion, they should also manage, operate, fix the ticket pricing and make it their property.

He said there was no necessity for the government to own a fast train company but what the government could do would be to help simplify the process of land acquisition.

Furthermore, Abdullah said there was no need to have a second fast train project to compete with the present one.

Asked whether the proposed fast train project has been accepted, he said the government was waiting for suggestions from other companies. YTL has made some suggestions.

Abdullah also said there were projects under the 9MP that the government had decided upon but it could be implemented as PFI projects.

He cited the housing project for police personnel as an example.

The project needs to be completed fast and does not depend on the allocation for a particular year.

As such, the government will ask the Employees' Providend Fund (EPF) to set aside an allocation for the implementation of the project.

The houses would be rented out and EPF would get better returns from the investment compared with returns from fixed deposit, he said.

According to a statement issued at the press conference, EPF would give out loans to a SPV (special purpose vehicle) and the contractor for the project would be picked through tenders.

The SPV would then pay the contractor and own the project while the government would pay rental to the SPV before the facility is handed over to the government.

It said EPF would get back the principal amount and returns from the rentals received from the government.

9MP will have forceful impact in medium term, says CIMB Securities

CIMB Securities Sdn Bhd said the projects under the Ninth Malaysia Plan (9MP) would make a forceful impact on the country’s economic growth over the near to medium term, while some of the fast track and smaller scale projects will support domestic growth in the short-term.

“We maintain that economic growth would remain relatively flat at between 5% to 5.3% in second quarter (2Q) and 3Q, before improving to 5.5% in 4Q," it said in a research note on July 19.

The research house expects real gross domestic production (GDP) to sustain at 5.6% in 2007 compared with the estimated 5.3% this year, largely driven by the acceleration of public spending.

The research house said other contributing factors would be decent expansion in private sector expenditure, although exports would be slower.

CIMB Securities identified the construction, manufacturing (mainly construction-related materials) and services sectors as the main beneficiaries of the 9MP.

The assessment follows Prime Minister Datuk Seri Abdullah Ahmad Badawi's announcement on July 18 that an initial 880 new development projects worth RM15 billion would be tendered out under the 9MP.

CIMB Securities said that as the bulk of the expenditure was for smaller scale projects, it is expected to have high multiplier effects and linkages to a broader segment of the economy.

“We expect the impact to be felt more in 2007. It is estimated that public investment is expected to contribute at least 1.5 to 2 percentage points to real GDP growth in 2007."

It said private investment was expected to contribute 1.5 percentage points, benefitting from the implementation of 9MP under the private finance initiatives as well as the continued inflow of foreign direct investment.

Wednesday July 26, 2006

Government to ask for PFI project proposals

By Loong Tse Min

tsemin@thestar.com.my

PETALING JAYA: The Government will soon call for requests for proposals (RFPs) for private financing initiatives (PFI) projects, sources said.

The RFPs, to be called possibly next month, were expected to include broad parameters for packaged criteria such as the project cost, model and design, the sources told StarBiz.

It is believed the Government is likely to view the proposed projects in terms of the best possible scheme, and the amount put up and sum to be funded by the private sector.
http://thestar.com.my/archives/2006/7/26/business/b_p1train.jpg
KTM projects worth about RM2.4bil are among the PFI jobs set to be rolled out as part of the Ninth Malaysia Plan
Avenue Securities analyst Kamarulzaman Hassan said that big construction players such as Gamuda Bhd, Road Builder (M) Holdings Bhd, IJM Corporation Bhd, Ranhill Bhd and Sunway Holdings Incorporated Bhd were likely to gain most from the PFI scheme.

“The PFIs would certainly stretch Malaysian contractors' balance sheets. A decent-sized PFI project of RM1bil could easily push big contractors' gearing to more than 100%,” he added.

The head of research at a local brokerage believes the Government would be “very selective in terms of the use of available funds in the country, both from the Employees Provident Fund and other pension funds, as well as from private banks''.

“Clearly, they (the proposals) would have to be for the designated areas in the northern, southern and eastern corridors.

“Anything outside the scope of the Government's development plan would not be viewed that positively,” the head of research said.

The research head concurred with Avenue's Kamarulzaman that the bigger contractors who had the capital clout and expertise stood to gain from such projects.

Hwang-DBS Vickers Research said about half the projects already announced under the Ninth Malaysia Plan (9MP) fell under the PFI scheme, of which almost all were building projects.

According to Hwang's report, 357 of the PFI projects are for the Education Ministry, 24 for the Internal Security Ministry, 17 for the Defence Ministry, and a smaller number for the Home Affairs Ministry, Information Ministry, Human Resources Ministry; Culture, Arts and Heritage ministry; Transport Ministry, Works Ministry, Natural Resources and Environment Ministry, Agriculture and Agro-based Industries Ministry, Plantation Industries and Commodities Ministry, the Treasury and the Prime Minister's Department.

TSR Capital Bhd is one company to have recently announced its participation in a PFI project.

“We are certainly keen to participate in PFI projects,” TSR Capital managing director Tengku Datuk Mustapha Tengku Mohamed said when contacted by StarBiz.

In a filing with Bursa Malaysia last week, TSR Capital said it had received a letter from Universiti Teknologi MARA (UiTM), which had agreed in principle on the development of a proposed 660-acre Medical City in Sepang funded through PFI.

Avenue's Kamarulzaman said some of the projects to be rolled out as part of the Government's 9MP allocation of RM50bil that might fall under PFIs included the Penang Monorail estimated to be worth RM1.1bil, KTM projects worth RM2.4bil, New North Klang Valley Expressway (RM1bil) and KL-Johor Bullet Train (RM8bil). :)

Gamuda rises on hope of 9MP projects
By Chong Pooi Koon
August 5 2006


A STRING of positive news had investors convinced that the Government is set to roll out more big-ticket projects that will benefit larger contractors like Gamuda Bhd, pushing shares of the company up 7 per cent on heavy volume yesterday.

Things have been moving fast in the local construction scene after the South Johor Corridor development plan was announced by the Government recently.

Up north, the Cabinet on Wednesday gave Penang folks reason to smile when it approved the construction of a multi-billion-ringgit second bridge and the RM1.2 billion monorail system, cheering construction players along the way.

In addition, the Government is evaluating the bullet train project proposed by the YTL group, which links Kuala Lumpur to Singapore.

Analysts now see the recent string of positive news as the precursor towards more Ninth Malaysia Plan (9MP) projects, which will benefit larger contractors and government-linked companies.

"Should this happen, we expect a re-rating of larger construction companies such as IJM Corp, Road Builder, Gamuda, WCT Engineering, Hock Seng Lee, Naim Cendera Holdings, Tronoh Consolidated and Ranhill," AmResearch Sdn Bhd said in a recent note.

The positive sentiments have sent stock prices of key construction firms up.

On Bursa Malaysia yesterday, IJM rose 5 sen, or 0.9 per cent, to RM5.75. WCT Engineering gained 12 sen, or 3.7 per cent, to RM3.36.

UEM World Bhd, which is building the second bridge in Penang, was one of the most actively traded stocks yesterday. The shares ended 3 sen, or 1.9 per cent lower, at RM1.59.

Comparatively, Gamuda's gain yesterday was sharper. The stock at one stage rose as much as 9 per cent to RM3.82, before settling down to close at RM3.76, up 26 sen, or 7.4 per cent, from the previous day.

Volume was heavy with some 11 million shares changing hands, almost six times the average trading volume in the past 15 days.

"Gamuda just bagged the bridge project in Bahrain days ago and there could be some follow-through buying," an analyst said of the stock performance.

Moreover, the announcement of Penang's bridge and monorail projects also shows that the Government is committed to rolling out more big projects, which will definitely benefit big players like Gamuda, the analyst said.

Speculation was also swirling that Gamuda may have won more contracts in the Middle East, but a company official dismissed such talk when contacted.

"There's nothing new besides the Bahrain job that we have announced, but in the next three months nobody can predict," the official said.

The company is bidding for projects worth a total of RM10 billion in the Middle East.

Corporate: Niggling questions over 9MP mega projects
By Nadia S Hassan and Malar Velaigam

The construction sector received a shot in the arm last week when several big-ticket projects under the Ninth Malaysia Plan were announced. As expected, the construction stocks ran ahead in anticipation of more goodies to come in the next few weeks.
But beneath the optimism, the niggling question being asked is when will the projects take off.
Last week, the government announced the development plan for the South Johor Economic Region (SJER) and approved two mega projects in Penang — the second bridge and the monorail. The government intends to spend RM5 billion on infrastructure in the SJER project. The two Penang mega projects are expected to be collectively worth RM3.9 billion. So far, they are the biggest projects to be announced.
Construction stocks such as UEM Builders Bhd, Gamuda Bhd, IJM Corp Bhd, Road Builder (M) Holdings Bhd, WCT Engineering Bhd, Hock Seng Lee Bhd and related stocks such as Melewar Industrial Group Bhd and Cement Industries of Malaysia Bhd, have seen their share prices run up as a result of the news.
Whilst the stocks are predictably garnering interest, fundamental questions are still on the tongues of sceptics. When will the tender period open? When will the projects start? Based on past experience, if tender periods are open for three to six months, it normally means the projects would only come on stream in the third quarter next year.
It is this lack of concrete time frame for the implementation of these projects that has analysts treading cautiously, calling the movement in share prices a knee-jerk reaction.
"Allowing for the time lag needed to co-ordinate and evaluate the projects, we think these projects are only likely to kick off next year," says a report by AmResearch.
A report by Hwang-DBS states that the research house is still neutral on the construction sector as details and the initial cash-flow impact of all 9MP projects are still months away.
It is a well-known fact that large projects are notoriously difficult to get off the ground, given the complexity of the agreements involved. Also, it would be worthy to note that some of the projects are not new.
Take the Second Penang Bridge for example, an idea that has been mooted for some time now. The government has said that it will award the project to UEM Builders who holds the concession for the existing Penang Bridge.
Yet on closer inspection, there is no mention of any agreement being signed despite the company having completed the groundwork. Likewise, the idea of building a monorail in both Penang and Johor has been around for the past five years.
Similarly with the SJER, the exact details of how the government will spend the RM5 billion have yet to surface. The masterplan is being prepared by Khazanah Nasional Bhd and will be out by year-end.
As a result, it becomes almost impossible to predict the impact of these projects on earnings for the awarded companies. Investors who are looking for quick returns will also be disappointed.
A case in point is UEM World Bhd's development of Nusajaya, Johor's version of Putrajaya. According to reports, the development is expected to take six to 10 years to complete. So, despite the fact that the project is expected to generate returns of RM1 billion in sales, the returns will only start to flow slowly.
AmResearch, however, is expecting implementation of the projects to be relatively speedy.
"This is given the government's official construction gross domestic product [GDP] growth forecast of 3% for 2006, and 3.5% over the 9MP period," states the report.
Although the dust has not yet settled after the Prime Minister's announcements, many are already placing bets on the next round of awards. According to AmResearch's report, the recently announced Johor and Penang projects may just prove to be precursors of larger 9MP projects.
Among the projects expected to be announced soon is the Penang Outer Ring Road worth RM1.1 billion. The concession for the project has, in fact, already been awarded to Peninsula Metro Works Sdn Bhd, although no formal announcement has been made.
As for the Penang monorail, the government is currently waiting for bids from qualified companies. Analysts are citing UEM Builders, Melewar Industrial Group Bhd, Gamuda Bhd and IJM Corp Bhd as prospective bidders. However, many were surprised by a bid from Penang Port Sdn Bhd, whose chairman Datuk Latif Abdullah also helms Realmild Sdn Bhd, the investment arm of Umno.
The government has also announced that it will start feasibility studies on the KL-Singapore bullet train project mooted by the YTL group, worth a possible RM8 billion.
Other large projects that have yet to be awarded include the West Coast Highway, the East Coast Expressway II, the Pahang-Selangor water transfer, the greater Kuching water supply project, New Langat II and the Klang Valley LRT extension. Many of these projects have been in the pipeline for more than four years.

waaa!!!!! to many text laa.... i cant read it all. by the way, 9th Malaysia Plan
is quite good than previous one....

BizFocus:
Property sector builds up hopes of good times again
By Chong Jin Hun
January 4 2007
BusinessTimes


The Ninth Malaysia Plan and the recently launched Iskandar Development Region in Johor are expected to help boost the industry and reverse the dismal showing of last year, during which sales declined and profit margins were slimmer

MALAYSIA'S real estate sector is set for a better showing this year against the backdrop of planned large-scale development initiatives and accommodative policies, industry experts say.

The Ninth Malaysia Plan (9MP), from 2006 to 2010, and the recently launched Iskandar Development Region (IDR) in Johor are seen as catalysts to push forward the property sector this year.

Both schemes, property developers said, will favourably impact the real estate sector, the performance of which is widely linked to overall economic health.

"Barring any unforeseen circumstances, the property market is in for a positive reversal of fortunes this year," said Tan Sri Liew Kee Sin, group managing director and chief executive of SP Setia Bhd, Malaysia's largest property developer in terms of sales.

"The spin-off benefits from the rollout of these projects will filter down to the property industry, given that the performance of the real estate sector is dictated by the state of the overall economy," Liew added.

The 9MP and the IDR, therefore, are crucial in reversing the dismal showing by the real estate sector in 2006, a year which saw declining sales and slimmer profit margins.

Fragile consumer sentiments, volatile oil prices, higher costs and interest rates, and intense competition resulted in a tough business environment for industry players last year.

Nevertheless, they stressed that the phenomenon should not be seen as having a blanket effect on the entire sector as certain segments, such as the middle-level and upmarket properties, continued to thrive.

Furthermore, Malaysia's growing young working population is a source of optimism that demand for real estate in the country will remain resilient.

As Johor Land Bhd managing director Shafiqul Hafiz puts it: property ownership in Malaysia reflects personal achievement; hence, such sentiments should spur people to buy houses regardless of what the nation's economic climate may be.

"In Malaysia, owning a property is essential and portrays overwhelming achievement. This could override the above economic factors," Shafiqul said.

The sector could still see a pick-up in sales, especially for the higher range of properties in selected niche areas.

The Government's actions and efforts in the real estate scene are expected to result in improvements, he added.

The Government plans to spend up to RM200 billion on public development under the 9MP. Of that amount, RM46.5 billion has been earmarked for this year.

The multi-billion-ringgit IDR, which is nearly three times the size of Singapore, will be transformed into a dynamic international metropolis.

Some 800,000 jobs are expected to be created over the next 20 years at the IDR, which will be turned into a logistics hub and a centre for the development of services industries like medical, financial and educational.

"Exciting times are in store for Johor's property market with the impetus from the IDR, which entails the creation of a global investment and economic hub.

"We believe migration of people from other states to Johor Baru in search of job opportunities will significantly boost residential demand in Johor Baru," SP Setia's Liew said.

Meanwhile, Mah Sing Group Bhd group managing director Datuk Leong Hoy Kum said the commercial real estate market, which has been consolidating, is expected to strengthen.

According to Leong, rentals for prime office and retail outlets, besides the occupancy and average room rates for hotels, are on an upward trend.

"We have a positive outlook on the property sector, spurred by the implementation of the 9MP which will have a multiplier effect on the whole economy.

"We also see stronger growth in the commercial property sector, after a long consolidation period. With the encouraging economic growth, there could also be a shortage of newer commercial buildings," he said.

The Klang Valley, Johor Baru and Penang remain Malaysia's property hotspots by virtue of their significance to the nation's economy.

As such, urban migration to these areas will fuel demand for real estate in these locations, Leong added.

MIDF Sisma Securities analyst Asnul Badrisyah, however, does not expect an across-the-board handsome increase in residential property sales in the country this year.

He said property developers have to contend with the fact that buyers will be spoilt for choice amid an abundant supply of homes. As such, it would be survival of the fittest for the developers.

"I am not expecting a significant jump in sales, but developers with good image, projects in good locations, should be able to see good sales.

"It is a buyers' market," he said.

MIDF Sisma expects local interest rates to fall this year to boost consumer spending in response to an expected slowdown in the nation's economy. Lower interest rates will mean cheaper bank loans for home purchases.

The Government has kept the Overnight Policy Rate (OPR), which determines bank lending rates, at 3.5 per cent. The OPR has been raised thrice since November 2005 to the current level.

Petroleum prices, which dictate the cost of construction materials like cement and steel, are anticipated to stabilise at existing levels in line with an expected drop in world oil demand, MIDF Sisma added.

World oil prices stood at around US$61 (RM214) a barrel as at December 13, down from a high of about US$70 (RM246) last April.

"Even if Opec (Organisation of Petroleum Exporting Countries) lowers oil production, we still expect the global economy to slow down, hence, reducing oil demand," the research house said.

Going forward, foreign demand, especially for upmarket homes in Malaysia, will add zest to the nation's real estate scene together with the country's efforts to boost tourism.

The "Malaysia My Second Home Programme", for instance, is a government initiative allowing foreigners to live in the country on a social visit pass with a multiple- entry visa.

They can now own or invest in houses costing more than RM250,000 each in Malaysia without having to secure the Foreign Investment Committee's approval.

"It is this kind of programme which will possibly give us a brighter spot in the years ahead. It must be something more integrated involving education, health and tourism," real estate developer MK Land Holdings Bhd executive director Datuk P. Kasi said at its shareholder meeting in Petaling Jaya recently.

Mavtrac to help smoothen path for 9th Plan projects
By Ooi Tee Ching
October 30 2007
BusinessTimes


THE government has set up a special purpose vehicle to directly bulk-buy building materials from manufacturers at fair prices so as to facilitate timely implementation of Ninth Malaysia Plan (9MP) projects.

This is in response to the repeated appeals by contractors that rising prices in steel bars and cement are hampering execution of government construction jobs.

To be launched this Friday by Finance Minister II Tan Sri Nor Mohamed Yakcop, Mavtrac Sdn Bhd will deal with steel bars, cement, diesel, bitumen, sand, agregrates, copper and aluminium. Mavtrac is parked under UEM Group Bhd and is wholly owned by Khazanah Nasional Bhd.

"Mavtrac is set up to improve efficiency in the supply chain and to help facilitate timely execution of government jobs under the 9MP," said Mavtrac chief executive officer Mohd Azman Sulaiman.

"Essentially, we will work with cement and steel bar manufacturers to secure the best price via bulk purchase," he said.

"Manufacturers will stand to benefit because the Mavtrac business model is being built into the government project procurement process. As a credit-worthy customer, we will order in larger volumes and the 14 days payment will apply," he told reporters at a briefing in Kuala Lumpur yesterday.

"UEM has been tasked to helm Mavtrac for the first few years. UEM group of companies are not using Mavtrac to bulk-buy building materials for their projects. Whatever UEM needs, it will procure under a separate entity," he said.

Asked if the emergence of Mavtrac will displace financially-weaker building material distributors, he replied: "While we bulk buy, we do not intend to invest in warehousing or physical distribution of the building materials. We intend to work with the Building Materials Distribution Association's network. It is not our intention to displace existing building material suppliers."

Mohd Azman said contractors that have been awarded government jobs can place their steel bar and cement orders with Mavtrac via the Internet.

"It will be an open bid, the whole process is transparent," he said, adding that Mavtrac is the acronym for the "Malaysian Virtual Trading Corporation".

The "virtual" in Mavtrac is intended to signify an entity that integrates virtually into the trading and supply community with contractors seamlessly. Mavtrac's website is www.mavtrac.com.my.

Steel earnings rise, shortage concerns
Monday December 3, 2007
Stories by YEOW POOI LING
TheStar

The Government is likely to speed up 9MP projects as we're moving into the third year of the 9MP, says analyst.

THE recent results season saw a number of steel players reporting double-digit growth in revenue thanks to higher selling prices of steel.

Ann Joo Resources Bhd posted over 70% jump in pre-tax profit to RM62.1mil for third quarter ended Sept 30 on the back of almost 31% growth in sales to RM490.6mil.

Southern Steel Bhd's third quarter pre-tax profit also rose more than 70% to RM54.8mil compared with RM31.6mil in the previous year while revenue improved by close to 40% to RM885.1mil.



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An artist’s impression of the Second Penang Bridge. Analysts say there could
be shortage of long steel bars and billets for construction especially when
major Ninth Malaysia Plan projects are mplemented almost simultaneously.



Kinsteel Bhd's turnover surged 151% to RM582.4mil in the third quarter from RM231.4mil a year ago.

Pre-tax profit, however, dropped almost 82% to RM70.5mil from RM385.9mil due to a negative goodwill arising from the acquisition of subsidiaries in the preceding year.

Not all steel companies reported improved profitability amid rising sales given that margins had been adversely squeezed by rising cost of materials.

Choo Bee Metal Industries Bhd posted 40% increase in sales in the third quarter to RM129.6mil but pre-tax profit dropped 32.6% to RM7.6mil from RM11.3mil a year ago.

Leader Steel Holdings Bhd's pre-tax profit declined to RM823,000 against RM1.7mil although revenue rose 18.8% to RM52.9mil in the third quarter.

An analyst at a local brokerage said the rising selling prices of steel would bode well for steel manufacturers.



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“Rising tide lifts all boats, regardless of operational efficiency. Coupled with rising production volume and upward price trend, next year should be an even stronger year for steel makers,” he said.

Long steel bars and billets are controlled items with ceiling prices and these are usually used in construction works.

However, there is no restriction over export of such products and manufacturers may find it more profitable to sell overseas than to sell in the domestic market.

The analyst said there could be shortage of such products for construction especially when the major Ninth Malaysia Plan (9MP) projects such as the inter-state water transfer project, double-tracking and West Coast Highway were implemented almost simultaneously.

“The government is likely to speed up the projects as we're moving into the third year of the 9MP. Drawing lessons from the 8MP, between 2002 and 2003, there was a shortage,” he said.



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Cement, another building material, is also seeing rising price trend. The government last December adjusted the ceiling price of cement while the automated pricing mechanism (APM) will take effect Jan 1 onwards.

YTL Cement Bhd reported a 13% increase in revenue for first quarter ended Sept 30 to RM321.2mil from RM283.9mil a year ago. Pre-tax profit improved by 45% to RM76.4mil against RM52.7mil.

The company attributed the expansion to better demand, higher efficiency and better selling prices. Cement Industries of Malaysia Bhd and Lafarge Malayan Cement Bhd have yet to release their results.

OSK Investment Bank in a recent report said there was further upside to cement prices with the APM.

“Latest data from the Construction Industry Development Board indicated that average prices of 1 tonne of OPC (ordinary portland cement) in peninsular Malaysia are RM221.20. We believe that this may see, at least, a further 10% to15% increase next year,” the brokerage said.

An analyst noted that cement was a “domestic game” given that the building material has to be near the construction side.

Nonetheless, the rising prices trend of building materials like steel and cement definitely would not bode well for contractors, as their margins would be affected, he added.

Will rising costs affect 9MP projects?
Monday December 3, 2007
By FINTAN NG
TheStar

The high cost of building materials has made it increasingly hard to keep total construction costs down. With the anticipated acceleration in the rollout of Ninth Malaysia Plan projects in the next two years, industry players are clamouring for more sustainable solutions.

THE year is almost coming to an end but there has been no end to the rise in the cost of building or construction materials, especially for steel, cement and quarry products. This has led to higher costs for those in the construction sector, which include property developers.

With expectations of an accelerated rollout of Ninth Malaysia Plan (9MP) projects in the next two years, those in the construction sector view the problem as becoming more acute. There have been calls by various industry bodies representing the various professions and trades in the sector to address the rising costs.

The UEM group, on its part, has set up a one-stop agency, Mavtrac Sdn Bhd, to source for construction materials directly from suppliers for government construction projects, which would include those under the 9MP and the development corridors.

The 9MP took off against a backdrop of rising building material prices, largely caused by rising demand for building or construction materials such as steel, cement, sand and aggregates, copper and timber in emerging economies such as China and India.

The higher prices for building materials on the international market have led local producers to prefer exporting instead of selling to the local market, thereby creating a shortage. The problem is further compounded by the prohibition against imports of steel and cement and, government control ceiling prices for these materials.

The Malaysian Iron and Steel Industry Federation estimates steel consumption to increase by 5% to 8.1 million tonnes this year and further expects another 7% growth next year and in 2009.

The federation's president Tan Sri Soong Siew Hoong said at the Asean Steel Conference in late August that steel consumption was 7.7 million tonnes last year and would hit 8.4 million tonnes next year.

Reuters reported recently that Chinese steel producer Baoshan Iron and Steel Co had announced that it was raising cold-rolled steel product price by 4% to 4,796 yuan per tonne while hot-rolled steel products was raised by 8% to 4,042 yuan per tonne from this quarter. The wire service, quoting an analyst, said this was to reflect the increase in the cost of production.

Another worry is the surge in the price of crude oil because total construction costs have to take into account the use of diesel fuel for transportation and machinery for construction. Building material producers would have to take this into account too due to energy consumption and recent calls for a review on electricity tariffs. Crude oil has risen by more than 40% since mid-August to over US$99 per barrel in intra-day trading.

Since the announcement of the 9MP, three development regions have been launched, namely the Iskandar Development Region in southern Johor, Northern Corridor Economic Region encompassing the northern states of the peninsula and the Eastern Corridor Economic Region encompassing the eastern states. There is another development region to be launched for the state of Sabah before the year-end.

A large proportion of the development in the economic regions includes large-scale infrastructure developments that need lots of raw material, whose prices have been rising over the past two to three years.

Development of these economic regions would span the implementation periods of several Malaysia Plans starting with the 9MP, which was launched last year, so naturally there would be concerns about how projects in the implementation period (2006 to 2010) would be affected since it would give an indication of where things may go.

In fact, according to figures released to StarBiz by the Building Materials Distributors Association of Malaysia (BMDAM), the price of steel in the local market has risen by 13.7% this year compared to last year while the price of cement has risen by 57.15%, concrete products by 213.35%, steel fabric by 17.08%, tiles by 43.88% and bricks by 6.7%.



http://star-space.com/archives/2007/12/3/pnews/b_14highsteel.jpg



BMDAM president Steven Tai said the main problem was the price ceiling imposed on steel and cement “encourages steel producers to export steel as billets instead of converting it to bars for local consumption.”

According to MBAM president Patrick Wong, the average price of steel bars in Singapore was S$865 per tonne while in the local market, it was RM1,837 to RM2,010 per tonne depending on size and product for the peninsula.

As for cement, the average price in the peninsula is RM10.85 to RM11.50 for a 50kg bag or RM217 to RM231 per tonne. It is understood that the price in Singapore is the same.

Wong estimated that an extra RM30bil to RM40bil would be needed for 9MP projects because the cost estimates were made last year and only announced in the fourth quarter of last year.

“In the middle of last year, steel bars had an average price of RM1,800 per tonne, now its averaging RM2,500 per tonne,” he said.

Projects that were awarded this year but have been delayed would face higher costs next year.

“In fact UEM Builders Bhd is asking for a review in the costs for the second Penang Bridge, which was estimated at RM3bil.

“My own jobs have been delayed due to the supply problem while a number of Class F bumiputra contractors have also faced problems. Quarry products would also be going up by between 20% and 30% next year,” Wong said.

EDT Rawang - Ipoh Project is higer cost than Malaysia - Singapore HST !!!?..:uh:

EDT Rawang - Ipoh Project is higer cost than Malaysia - Singapore HST !!!?..:uh:

maybe its because of the length concern. KL-SIN is much shorter than Ipoh-PADANG BESAR as what it is written in the pic. 300+km VS 500+ km...which is longer?? obviously the longer one will be higher cost.

Oh MY..Silap sya ..mula tu I tot EDT Rawang - Ipoh project...:lol:

Works Ministry to submit project list for 9MP mid-term review
Sunday February 10, 2008
TheStar

IPOH: The Works Ministry will submit its list of projects to be completed to the Economic Planning Unit (EPU) next week for the mid-term review of the Ninth Malaysia Plan (9MP).

Minister Datuk Seri S. Samy Vellu said priority would be given to projects which had already received the letter of acceptance.

“Besides that, other projects include those already approved by the Cabinet which support or complement all the development regions like the Northern Corridor,” he said.

Samy Vellu said the number of projects on the list was identified based on the level of importance and urgency.

“For example, there are still many roads which need to be upgraded and linked to the main cities,” he said.

He added that the projects would kick off once Parliament gave its approval to the working papers.

Samy Vellu said the ministry had spent 60% of its RM20bil allocation for projects under the 9MP.

On a separate matter, Samy Vellu said a new football field and possibly a clubhouse for youths would be built in Felda Lasah, near here. He said the Youth and Sports Ministry has agreed to provide RM260,000 to construct the field.

“I will ask its minister (Datuk Seri) Azalina Othman for a further RM80,000 to build the clubhouse,” he said.

At the function earlier, Samy Vellu distributed RM2,000 each to 63 village heads in the Sungai Siput parliamentary constituency to carry out small projects.

Projects ‘will go on in good times’
Friday June 27, 2008, TheStar

THE Government had to defer several major projects slated under the 9th Malaysia Plan (9MP) because of the prevailing economic situation, Datuk Seri Najib Tun Razak said.

The Deputy Prime Minister said these would be continued when the situation improved.

“It’s not a question of punishing anyone,” he said at Parliament lobby after the tabling of the motion on the mid-term review of the 9MP by Prime Minister Datuk Seri Abdullah Ahmad Badawi yesterday.

“When we review the projects, it doesn’t mean that they are cancelled. Essential projects will continue to be implemented, whether the state is run by Barisan Nasional or otherwise.”

Najib was asked about projects in Pakatan Rakyat-ruled states, such as the Penang Outer Ring Road and the Penang monorail, which cost more than RM3bil.

Asked whether these states could use their own methods to fund them, Najib said it would be subjected to the Federal Constitution.

“The states have to decide whether the development programmes are under the state or federal list. If they need to borrow funds, they will need Federal Government’s permission,” he said.

Najib said the overall ceiling figure for development allocation under the 9MP had been increased to RM230bil (from RM200bil) to cater to the rising cost of implementation, and also the need to finance basic necessities in Sabah and Sarawak.

He added that the increase was sourced from funds created from the recent restructuring of the fuel subsidies. “If the restructuring process had not been carried out, the national budget would have faced critical problems, and we needed to avoid that.”

Extra RM30b for development
Friday June 27, 2008, TheStar

http://thestar.com.my/archives/2008/6/27/nation/n_04midterm9mp.jpg

KUALA LUMPUR: Datuk Seri Abdullah Ahmad Badawi has proposed an increase to the development allocation ceiling from RM200bil to RM230bil for the mid-term period of the Ninth Malaysia Plan (9MP) due to rising costs.

“I would like to emphasise that the Federal Government will continue to implement the 9MP (2006-2010) development projects in all states,” he said at the Dewan Rakyat yesterday, when tabling the motion on the mid-term review of the plan.

For the latter period of the Ninth Malaysia Plan, the Government would continue to manage the macro economy in a prudent manner to ensure that the economic fundamentals remained strong, he said.

While the global economic growth is projected to moderate at 4.1% for the 2008-2010 period, the Malaysian economy is forecast to expand at an average of 6% per annum.

Abdullah said the policy and strategy framework for the mid-term review would focus on five main thrusts:

> Moving the economy up the value chain by increasing productivity and competitiveness, generating new sources of growth and expanding the markets for the country’s goods and services;

> Raising the capacity for knowledge and innovation and nurturing a first-class mentality. The strategies include improving the quality of education and accessibility, making national schools a preferred choice, creating tertiary institutions of international standing, nurturing quality R&D and enhancing scientific and innovative capabilities and fostering a society with strong moral and ethical values;

> Addressing persistent socio-economic inequalities between ethnic groups, in which six key strategies would be implemented: poverty eradication, improving income distribution, ownership restructuring, achieving balanced development between regions and the development of the bumiputra commercial and industrial community (BCIC);

> Improving the standard and sustainability of life by increasing healthcare services, meeting housing needs and improving urban services, building basic infrastructure, improving transportation facilities and ensuring environment conservation and sustainable management of resources; and

> Strengthening institutional and implementation capacity of the public service delivery system, increasing confidence in electronic-based services and implementing outcome-based planning, monitoring and evaluation.

Extra RM30b for development
Friday June 27, 2008, TheStar

http://thestar.com.my/archives/2008/6/27/nation/n_04midterm9mp.jpg

KUALA LUMPUR: Datuk Seri Abdullah Ahmad Badawi has proposed an increase to the development allocation ceiling from RM200bil to RM230bil for the mid-term period of the Ninth Malaysia Plan (9MP) due to rising costs.

“I would like to emphasise that the Federal Government will continue to implement the 9MP (2006-2010) development projects in all states,” he said at the Dewan Rakyat yesterday, when tabling the motion on the mid-term review of the plan.

For the latter period of the Ninth Malaysia Plan, the Government would continue to manage the macro economy in a prudent manner to ensure that the economic fundamentals remained strong, he said.

While the global economic growth is projected to moderate at 4.1% for the 2008-2010 period, the Malaysian economy is forecast to expand at an average of 6% per annum.

Abdullah said the policy and strategy framework for the mid-term review would focus on five main thrusts:

> Moving the economy up the value chain by increasing productivity and competitiveness, generating new sources of growth and expanding the markets for the country’s goods and services;

> Raising the capacity for knowledge and innovation and nurturing a first-class mentality. The strategies include improving the quality of education and accessibility, making national schools a preferred choice, creating tertiary institutions of international standing, nurturing quality R&D and enhancing scientific and innovative capabilities and fostering a society with strong moral and ethical values;

> Addressing persistent socio-economic inequalities between ethnic groups, in which six key strategies would be implemented: poverty eradication, improving income distribution, ownership restructuring, achieving balanced development between regions and the development of the bumiputra commercial and industrial community (BCIC);

> Improving the standard and sustainability of life by increasing healthcare services, meeting housing needs and improving urban services, building basic infrastructure, improving transportation facilities and ensuring environment conservation and sustainable management of resources; and

> Strengthening institutional and implementation capacity of the public service delivery system, increasing confidence in electronic-based services and implementing outcome-based planning, monitoring and evaluation.

Making sure mega projects take off
Friday June 27, 2008
By YENG AI CHUN
TheStar

A VETERAN politician of 20 years and a former Bagan MP for four terms, state Public Works, Utili- ties and Transportation Committee chairman Lim Hock Seng says he has a lot to learn.

“When you are an opposition MP, you can give suggestions and it is up to the government to implement. But as the ruling party, you not only have to have something in mind but you have to turn it into reality,” he said when met at his office in Komtar recently.

Lim however relishes his new role and has been busy learning the ropes.

Many mega projects such as the second Penang Bridge, the Penang Outer Ring Road and the proposed monorail project come under his portfolio.

“We play the co-ordinator role and give feedback and information to assist the Federal Government in fulfilling the current and future needs of the state. But at the same time, we also have to protect the interests of Penangites,” he explain-ed.

During the 100 days in office, Lim said he had to deal with issues such as the restriction of heavy vehicles on the Penang Bridge during peak hours to ease congestion, speculation that construction of the second Penang bridge might be halted and complaints about immigration procedures.

“The Second Finance Minister has said so many times that the work on second bridge will proceed.

“I think the Federal Government has no intention to confront the state government on mega projects. But as these projects need huge funding and with the present economic uncertainty, there might a need to reconsider the projects. It is not linked to politics,” he said.

“If we can lay the foundation and help bring about some of the mega projects, that will be a great success for me.

“This does not mean the credit should solely go to the new government as the previous government was handling them too,” he said.

Tomorrow: Phee Boon Poh

Malaysia shelves large projects
Published: 2008/06/26 - 1546
BusinessTimes

The federal government is not punishing those who voted for the opposition by putting on hold the outer ring road and monorail projects, says the deputy prime minister


MALAYSIA shelved some large building projects and pledged to spend US$9 billion more to boost rice production and ease poverty, as the government sought to quell growing public anger over rising prices.

In a mid-term review of a state development blueprint, the government stuck to its average annual economic growth target of 6 per cent for 2006-2010, saying domestic spending would offset the effects of weak global demand.

The government said it was reviewing spending to focus on projects that would benefit the public as high energy and building material prices strain its finances.

To free up money for other projects, the government put on hold a RM1.5 billion (US$461 million) road project and a RM2 billion monorail, both in Penang, said Sulaiman Mahbob, director general of the Economic Planning Unit.

Deputy Prime Minister Datuk Seri Najib Tun Razak said today that the federal government is not punishing those who voted for the opposition by temporarily shelving large projects like the outer ring road and the monorail projects.

The two projects were being halted as it was not viable to implement them at this point in time but this did not mean they have been completely scrapped, Najib said.

It allocated RM30 billion more to improve health, raise rice output, build schools and rural roads and reduce poverty, bringing development spending to RM230 billion under the plan that covers 2006-2010.

“The additional ceiling is to take into account additional development requirements and the increase in construction-related materials cost,” the government said in the review report.

“Development projects will also be reprioritised giving priority to people-centred projects.”

Malaysia, Asia’s largest net oil exporter, earns RM250 million a year in revenue for every US$1 rise in crude prices.

It raised petrol prices by 41 per cent and diesel by 63 per cent this month as part of a broad revamp of its energy price system that would save it US$4.23 billion.

The government said today it would continue to gradually cut fuel subsidies, but did not elaborate.

“While the subsidy on petroleum and gas will be systematically and gradually reduced, a social safety net will be introduced to ensure the poor and deserving continue to receive some form of support to mitigate its impact,” it said.

LOWER DEFICIT, HIGHER INFLATION

Despite the planned increase in development spending, the government said it would cut its fiscal deficit to 3.2 per cent of GDP in 2010, lower than an earlier estimate of 3.4 per cent.

The government expects a deficit of 3.1 per cent this year, compared with 3.2 per cent last year.

Annual inflation was expected to average 3-4 per cent in 2008-2010, above the 2 per cent recorded last year, it said.

Malaysian annual inflation hit a 22-month high of 3.8 per cent in May and is expected to rise further, at a time when the authorities are eager to keep interest rates low to support domestic demand.

At 3.50 per cent, Malaysia’s key interest rate is among the lowest policy rates in the region.

The government also said it would increase the equity ownership of indigenous people, including ethnic Malays, to 20-25 per cent in 2010 from 19 percent in 2006. - Reuters

Construction sector seen as main loser
By LAALITHA HUNT


PETALING JAYA: The mid-term review of the Ninth Malaysia Plan (9MP) reveals that the construction sector appears to be the main loser due to cutback in spending.

CIMB Research in an update report said the review was neutral on most sectors as there were no strong commitments to spend on them.

“Food and beverage, oil and gas and building materials (sectors) were marginal winners,” it said.

CIMB Research said the RM30bil increase in development expenditure to RM230bil was positive over the next 12 months for the building material sector, as part of the expenditure would address rising cost of materials.

“However, in the longer term, the outlook for building material demand is less optimistic given the reduction in construction spending,” it added.

http://biz.thestar.com.my/archives/2008/6/28/business/p3-monoraili.JPG
A woman walking past a poster in George Town. The removal of both the Penang Monorail and Penang Outer Ring Road projects from the 9MP allocation was negative for the construction sector.
The removal of both the RM2bil Penang monorail and RM1.5bil Penang Outer Ring Road project from the 9MP allocation was negative for the sector and outweighed the potential positives arising from the additional development budget, the research house noted.

CIMB Research remains “overweight” on the oil and gas sector due to the current overriding demand for energy but is “neutral” for the plantation sector.

“The Government's policy of expanding arable land and increasing food production, in view of the global increase in food prices, are expected to have minimal impact on the listed oil palm players in Malaysia,” the report said.

While it maintains its “overweight” rating for the telecommunications sector, CIMB Research has reduced its target price for Telekom Malaysia Bhd as it remains negative on the rate of penetration for the household high-speed broadband project.

“Although continued efforts would be made to push household broadband penetration to 50% by 2010, affordability and demand for such speeds from most residential customers are likely to be limited,” it said.

The research house noted that VADS Bhd and JobStreet Corp Bhd were clear beneficiaries in the technology sector as the review envisaged an increase in exports from Multimedia Supercorridor companies and an increase in information and communications technology (ICT) global players' investments in high-valued outsourcing.

“On VADS' part, it harbours the aspiration of being a local ICT champion while its core divisions should benefit from increased transactional flow from shared service outsourcing. Meanwhile, JobStreet will see a positive impact from the creation of more jobs,” it added.

9MP - Mid-term Review: More houses for low income group
By : Firdaus Abdullah

http://www.nst.com.my/Saturday/National/2279843/insidepix1
A low-cost housing project in Kuching. More such homes will be built in the state to cater to the low-income group.


KUCHING: More affordable houses will be built to cater to the lower income group in the state following the allocation of additional funds under the Ninth Malaysia Plan Mid-Term Review.

State Housing Minister Datuk Seri Abang Johari Tun Openg said unlike the other sectors where projects were being shelved, the construction of affordable houses would be stepped up.

"The prime minster (Datuk Seri Abdullah Ahmad Badawi) has continued to give allocations for the housing sector to cushion the impact of escalating cost of living.

"The subsidy for low-cost housing is also being increased and we will construct more houses for the lower income group.

"We must thank the federal government for this."

All government housing projects in Sibu, Miri and Bintulu under the 9MP would proceed as planned and additional projects would be implemented in other areas, Abang Johari added.

Speaking after opening the 2008 Evidence Based Nursing Conference here yesterday, the Parti Pesaka Bumiputera Bersatu deputy president said, apart from funds for housing, Sarawak had also been allocated an additional RM1 billion as promised by the prime minister during his visit here early this month.

Abang Johari said the additional funds could be used to cushion the impact of the fuel price hike which was taking a toll on the people.

On fears of an increase in the prices of houses, he advised the people not to be unduly worried as the government was taking necessary measures to minimise the effects of higher prices of building material.

Abang Johari welcomed the focus on expanding rural road networks and the emphasis on improving rural schools in Sabah and Sarawak under the 9MP.

More money for 9MP
25-06-2008: by Pauline Puah & Yong Yen Nie
THEEDGEDAILY


PETALING JAYA: In tandem with rising cost of raw materials and fuel prices, the development expenditure for the Ninth Malaysia Plan (9MP) is expected to increase by between 10% and 15%.

Sources told The Edge Financial Daily that due to the unprecedented rising cost of raw materials especially in the construction sector, an additional amount to the tune of between RM20 billion and RM30 billion will be allocated for the 9MP.

When the plan was tabled and approved in parliament in 2006, the amount set aside for development over the entire period between 2006 and 2010 was RM200 billion. An additional RM20 billion was to come from the private sector in the form of projects to be undertaken via the private finance initiative (PFI).

Sources said that some major projects were likely be shelved due to the government’s cost-cutting measures and emphasis on projects that are most crucial at the moment. High on the list of projects that are likely to be delayed are the RM1.3 billion Penang Monorail project and the RM5 billion Pahang-Selangor Inter-State Raw Water Transfer Project.

A consortium led by Malaysian Resources Corp Bhd (MRCB) had received the letter of intent (LoI) for the monorail project. As for the inter-state water project, three Japanese companies have been shortlisted for the job. They are Shimizu Corp which has UEM group and IJM Corp as its partners, Taisei Corp (with HRA Teguh Sdn Bhd) and a stand-alone bid by Kajima Corp.

The extra allocation for development expenditure is to be used to supplement the funds for development of roads in rural areas and low-cost housing as well as the food security programme.

An inkling of the extra allocation for the development budget came about last Friday when Rural and Regional Development Minister Tan Sri Muhammad Muhammad Taib was reported as saying that the ministry would be allocated an additional RM4 billion under the 9MP mid-term review. He had said the move was to pull some 10,000 families out of hardcore poverty and give them a more decent living standard in the rural areas.

Prime Minister and Finance Minister Datuk Seri Abdullah Ahmad Badawi will table the mid-term review of the 9MP in parliament tomorrow.

A source said the review would also unveil the government’s plan to set up a public transport commission to overlook all public transport programmes and also reaffirm its commitment to extract the maximum value from every ringgit spent by implementing open tender for projects and procurement.

Sources said the construction of the East Coast Expressway Phase II — the Kuantan-Kuala Terengganu, Senai-Desaru and Kemuning-Shah Alam highways are expected to take place as planned.

“We also expect the construction of the Seremban-Gemas and Ipoh-Padang Besar electrified double-tracking rail projects to go ahead at full speed without hiccups,”said a construction industry source.

Analysts fro research houses when contacted were expecting several projects under the 9MP to be scrapped due to escalating raw material prices that had caused construction costs to balloon.

Nevertheless, one analyst from a local research house said: “Between the water sector and the public transportation sector, the former is more demand-driven, and therefore, we expect it to be given more priority.”

Aseambankers Research construction analyst Wong Chew Hann said the projects that had taken off were those that were deemed to be on the federal government’s priority list, hence, it is not surprising if projects that had not taken off yet would take a back seat at the moment.

“For instance, although the MRCB-led consortium which also includes Penang Port Commission, and Scomi Engineering Bhd had received a Letter of Intent to start negotiations on the monorail project, it did not mean anything as the government could well shelve it altogether,” she told The Edge Financial Daily.

9MP devt allocation increased to RM230b
27-06-2008:
THEEDGEDAILY


KUALA LUMPUR: The government proposed to increase the overall ceiling for development allocation for the Ninth Malaysia Plan (9MP) to RM230 billion from RM200 billion previously, Prime Minister Datuk Seri Abdullah Ahmad Badawi said.

“This increase is required in order to cater for the rising cost of implementing existing projects as a result of the rising prices of building materials as well as to account for new priorities such as the regional corridor developments and adequate food production for the nation,” he said in the Dewan Rakyat yesterday.

Unveiling the 9MP mid-term review, Abdullah said the government would also use privatisation and private financing initiative (PFI) to complement public investment towards providing quality public service.

“The government will enhance its fiscal discipline by implementing government procurement via tenders to ensure ‘value for money’ as well as to reduce leakages and wastage and by cultivating best practices in project implementation,” he added.

Without mentioning whether the government would be shelving any projects, Abdullah said the federal government would continue to implement the 9MP development projects in all states and give priority to people-centric projects.

These include projects that provide basic amenities and which impart direct benefit to the people such as water supply and electricity, health facilities, education, low-cost public housing, poverty eradication and public safety.

The prime minister stressed that Malaysia had been able to not only maintain encouraging economic growth and stability but continue to enhance national competitiveness in an effective manner.

Among others, the country managed to sustain economic growth at an encouraging rate of 6.1% per annum and enhanced the quality of life of Malaysians by increasing per capita income from RM18,840 in 2005 to RM23,066 in 2007, he said.

Abdullah also said the government managed to reduce its fiscal deficit from 3.6% of the gross domestic product (GDP) in 2005 to 3.2% in 2007 through prudent management of the government budget.

“It is evident that the implementation of the Ninth Malaysia Plan is not confined to planning or limited to mere rhetoric, it has resulted in tangible accomplishments,” he added.

As such, he stressed that the tabling of the mid-term review was important to ensure the continuity of the nation’s development agenda, especially in light of the challenging economic environment at present.

Without effective measures, the sharp rise in oil and commodity prices as well as the continued turbulence in global financial markets could derail our efforts to maintain economic stability and achieve robust growth, Abdullah said.

“Thus, one of the main objectives for the second phase of implementation of the 9MP is to ensure that the quality of life of Malaysians is protected. Programmes to increase earnings propensity as well as to provide social safety nets will continue to be implemented and enhanced.”

At the same time, the mid-term review did not ignore the nation’s need to enhance capacity and competitiveness, he added.

“Infrastructure development, human resource improvements and expansion of sectors contributing towards new sources of growth will continue to be pursued, taking into account the long-term development needs of the nation,” he said.

Corridors get RM10b out of additional RM30b in 9MP
27-06-2008: by Yong Yen Nie
THEEDGEDAILY


KUALA LUMPUR: The biggest portion of the additional RM30 billion allocated under the Ninth Malaysia Plan (9MP) will go towards infrastructure projects in the regional corridors, especially the East Coast Economic Region (ECER).

Economic Planning Unit (EPU) director-general Tan Sri Dr Sulaiman Mahbob said one-third of the additional development expenditure would be used to build infrastructure and improve the health and education levels of rural communities, especially in the ECER and the Northern Corridor Economic Region (NCER).

He said that the ECER would require more investments due to its lack of infrastructure while the southern corridor (Iskandar Malaysia) would be driven mainly by private-sector investments.

At a media briefing on the 9MP mid-term review on Wednesday, he said: “This extra allocation is part of the government’s efforts to reprioritise development projects towards people-centred ones.”

He said the extra allocation would come from savings obtained from the government’s fuel subsidy revamp as well as the revenue collected.

“The government had also apportioned the remaining RM20 billion into various initiatives, including RM3 billion for food security in the wake of rising food prices, RM1.6 billion to improve the country’s public transportation system and RM1 billion each for the development of Sabah and Sarawak,” Sulaiman said.

A sum of RM2 billion would go towards improving rural infrastructure, of which the electrified double-tracking rail projects form a part.

The federal government also planned to spend RM1 billion on low- and medium-cost housing projects, another RM1 billion to boost high-impact projects under the Education Development Master Plan and RM3.1 billion to improve the government’s administrative system via electronic processes, apart from investing RM3 billion in a strategic investment fund.

Sulaiman said out of the RM200 billion allocated originally under the 9MP, the government had so far completed RM29.6 billion worth of projects, while RM161.2 billion worth of other development projects were still in progress and RM9.6 billion worth of projects had not commenced.

He added that the federal government had not provided allocations for the Penang Monorail and the Penang Outer Ring Road (PORR) that were estimated to cost a total of RM3.5 billion.

Other projects for which no allocation has been made are the RM250-million Mont’ Kiara public park, various memorials under the Ministry of Arts and Culture that would cost about RM38 million, and federal administration centres costing RM290 million.

However, Sulaiman said the Pahang-Selangor Inter-State Raw Water Transfer Project, which would pipe water into Selangor to address its water shortage, was still ongoing.

“We have not scaled back any project in the regional economic corridors. We are merely allocating for projects that we think are ready to be implemented,” he said.

Good progress made in reducing poverty
27-06-2008:
THEEDGEDAILY

KUALA LUMPUR: Good progress was made during the first half of the Ninth Malaysia Plan (9MP) period in reducing poverty, narrowing income imbalances between ethnic groups and increasing bumiputera participation in key occupations and sectors of the economy, said the Economic Planning Unit (EPU) in its mid-term review.

It said that during the remaining period, distributional strategies would continue to be pursued towards a more balanced participation and equitable distribution among the various ethnic groups.

The EPU said programmes for poverty eradication would be designed based on an integrated approach to enable micro-targeting to increase coverage of the target group effectively.

Income generating activities and the provision of basic amenities particularly housing, will continue to be emphasised as a critical element in poverty eradication, it said.

The scope of the housing programme would also incorporate building longhouses in Sabah and Sarawak to cater to the socio-cultural practice of the local communities.

“In addition, agropolitan projects, an integrated land development on a smaller scale, will be implemented in Johor, Pahang, Perak, Sabah, Sarawak and Terengganu. These projects aimed at improving the socio-economic position and standard of living of the hardcore poor in the rural areas.

“The three main components of the projects are the provision of basic infrastructure, income generating projects and the development of human capital,” it said.

Concerted efforts will continue to be undertaken to reduce income and economic gaps between and among strata and ethnic groups.

“Emphasis will be on increasing the income share of the lowest 40% of households, creating a bigger middle-income group and narrowing ethnic and regional disparities.

“This group, defined as those earning household income between RM2,000 and RM4,000 per month, is expected to increase in size and achieve a more rapid growth in income level,” it said.

Need to reshape economic structure to compete in global environment
27-06-2008:
THEEDGEDAILY

KUALA LUMPUR: The growth in key sectors of the economy during the first half of the Ninth Malaysia Plan (9MP) was supported by adoption of new technologies and best practices as well as greater research and development (R&D), said the Economic Planning Unit (EPU) in the Prime Minister’s Department.

In the mid-term review of the 9MP, it said the highly-competitive global environment required Malaysia to reshape its economic structure and strengthen its resilience through concerted efforts with greater private sector participation.

“To move the economy up the value chain, more synergistic and focused efforts will be undertaken to increase productivity and competitiveness, generate new sources of growth and expand into new markets,” it said.

Reviewing the first thrust of the 9MP, it said steady progress was made in moving the economy up the value chain.

It said in the services sector, advancements were made in new growth areas such as information and communication technology (ICT), telecommunications, tourism, Islamic finance and shared services and outsourcing (SSO).

Growth in the manufacturing sector was mainly driven by domestic-oriented industries, while transformation of the sector to capital- and skill-intensive and high technology activities was supported by R&D, design and development and good manufacturing practices, it said.

It said primarily agricultural industrial commodities including palm oil, rubber and sawlogs, and strong growth in the fisheries and livestock subsector contributed growth in the agriculture sector.

“Moving forward, the enabling environment will be further improved including through deregulation and liberalisation to increase private sector participation and enhance efficiency across all sectors.

“This will support and intensify the development of knowledge-intensive activities and adoption of advanced technologies,” it said.

In its report, the EPU said three major pillars underpinning the thrust are enhancing productivity and competitiveness, generating new sources of growth and expanding markets for Malaysian products and services.

“Efficient allocation and use of resources, focusing on higher value-added activities where the nation has comparative advantage as well as adoption of good practices and advanced technology will significantly enhance productivity and competitiveness,” it said.

It said the generation of new sources of growth would enhance and sustain the growth trajectory towards achieving high-income status and lead to greater economic dynamism and resilience in facing global challenges.

Raising capacity for knowledge and innovation, nurturing ‘first-class mentality’
27-06-2008: by Surin Murugiah
THEEDGEDAILY

KUALA LUMPUR: Education and TEVT (technical education and vocational training) delivery systems would continue to emphasise on producing quality human capital needed for the development of the economy, said the Economic Planning Unit (EPU) in its Ninth Malaysia Plan (9MP) mid-term review.

It said the implementation of various programmes by public and private sectors was expected to help address the need for knowledge workers in moving up the value chain.

Reviewing the 9MP, it said employment expanded in line with economic growth with contribution mainly from the services and manufacturing sectors. The economy maintained full employment while recording increasing growth in labour productivity, it added.

It said efforts to develop human capital were based on five main strategic thrusts, namely improving education quality and accessibility, making national schools the school of choice, creating tertiary education institutions of international standing, nurturing quality research and development (R&D) and enhancing scientific and innovative capabilities, and fostering a tolerant society with a sense of belonging and patriotism.

It said participation rate in education improved from 17.6% in 2005 to 21.9% in 2007, with enrolment in public institutions increasing from 390,828 in 2005 to 465,094 in 2007, and 258,825 to 364,737 in private institutions.

Meanwhile, the enrolment rate of Chinese and Indian pupils in national primary schools was 6% and 40% in 2007 respectively, it said.

On the plans to achieve 60% academic staff with PhD in public universities by 2010, the EPU said the number increased from 26.6% in 2005 to 31.6% in 2007, adding that Universiti Putra Malaysia had 64%, while Universiti Malaya and Universiti Sains Malaysia achieved 51% and 50% respectively.

The population is expected to grow at a lower rate of 1.2% annually in the remaining period of the 9MP to reach 28.24 million in 2010 while labour force would grow slower at 1.76% per annum and employment rate marginally higher at 1.79%, which would decrease the unemployment rate to 3.1% in 2010.

The share of labour force with tertiary education would increase to 26.7% in 2010 while those with secondary level was expected to increase to 60.1%, it said.

A total of 625,000 new jobs will be created for the remaining period of the 9MP, including in the regional growth corridors, and demand for knowledge workers is expected to increase at an average 3.1% annually to form 47% of total jobs created.

9MP devt allocation increased to RM230b
by Kevin Tan, 28 Jun 2008 2:30 AM
THEEDGEDAILY

KUALA LUMPUR: The government proposed to increase the overall ceiling for development allocation for the Ninth Malaysia Plan (9MP) to RM230 billion from RM200 billion previously, Prime Minister Datuk Seri Abdullah Ahmad Badawi said.

“This increase is required in order to cater for the rising cost of implementing existing projects as a result of the rising prices of building materials as well as to account for new priorities such as the regional corridor developments and adequate food production for the nation,” he said in the Dewan Rakyat yesterday.

Unveiling the 9MP mid-term review, Abdullah said the government would also use privatisation and private financing initiative (PFI) to complement public investment towards providing quality public service.

“The government will enhance its fiscal discipline by implementing government procurement via tenders to ensure ‘value for money’ as well as to reduce leakages and wastage and by cultivating best practices in project implementation,” he added.

Without mentioning whether the government would be shelving any projects, Abdullah said the federal government would continue to implement the 9MP development projects in all states and give priority to people-centric projects.

These include projects that provide basic amenities and which impart direct benefit to the people such as water supply and electricity, health facilities, education, low-cost public housing, poverty eradication and public safety.

The prime minister stressed that Malaysia had been able to not only maintain encouraging economic growth and stability but continue to enhance national competitiveness in an effective manner.

Among others, the country managed to sustain economic growth at an encouraging rate of 6.1% per annum and enhanced the quality of life of Malaysians by increasing per capita income from RM18,840 in 2005 to RM23,066 in 2007, he said.

Abdullah also said the government managed to reduce its fiscal deficit from 3.6% of the gross domestic product (GDP) in 2005 to 3.2% in 2007 through prudent management of the government budget.

“It is evident that the implementation of the Ninth Malaysia Plan is not confined to planning or limited to mere rhetoric, it has resulted in tangible accomplishments,” he added.

As such, he stressed that the tabling of the mid-term review was important to ensure the continuity of the nation’s development agenda, especially in light of the challenging economic environment at present.

Without effective measures, the sharp rise in oil and commodity prices as well as the continued turbulence in global financial markets could derail our efforts to maintain economic stability and achieve robust growth, Abdullah said.

“Thus, one of the main objectives for the second phase of implementation of the 9MP is to ensure that the quality of life of Malaysians is protected. Programmes to increase earnings propensity as well as to provide social safety nets will continue to be implemented and enhanced.”

At the same time, the mid-term review did not ignore the nation’s need to enhance capacity and competitiveness, he added.

“Infrastructure development, human resource improvements and expansion of sectors contributing towards new sources of growth will continue to be pursued, taking into account the long-term development needs of the nation,” he said.

GKent submits bid for RM400m package in water project
by Racheal Lee Mei Nyee
Email us your feedback at fd@bizedge.com


PETALING JAYA: George Kent (M) Bhd has submitted its bid for a RM400 million job to build raw water intake and piping stations for the RM9 billion Pahang-Selangor interstate raw water transfer project.

“The project has been divided into several packages, and we are at the pre-qualification stage for Package 3A,” said its managing director Lee Pui Leng.

The project is scheduled to be completed in 36 months.

Lee was confident that with its experience, George Kent would be able to advance to the tender stage. The result of the pre-qualification, which closed yesterday, will be known in two to three months.

He also said that George Kent would bid for other water-related projects under the Ninth Malaysia Plan (9MP).

Under the water transfer project, water from three drainage basins of the Pahang River — Kelau, Telemong and Bentong — is to be transferred to Selangor via pipelines.

Three Japanese companies have been shortlisted to carry out the tunneling portion: Shimizu Corp which has UEM group and IJM Corp as its partners, Taisei Corp (with HRA Teguh Sdn Bhd) and a stand-alone bid by Kajima Corp.

The water intake and piping stations will be used to pump raw water to the tunnel for the transfer of the resource.

On another matter, George Kent chairman Tan Sri Tan Kay Hock said the company had increased the prices of its products to mitigate the current high commodity prices.

“The raw material prices have been going up since five years ago, and the prices are now five times higher. However, we are still able to keep the margins,” he said.

George Kent reported a flat net profit of RM1.9 million for its first quarter ended April 30, 2008, compared to RM1.8 million a year earlier, while revenue surged 56.3% to RM25.6 million from RM16.4 million, on the back of higher sales of products and services.

The domestic market contributed 89.4% or RM22.9 million to its revenue, while overseas markets accounted for the remaining RM2.7 million. The company exports to Europe, the Middle East, Africa, Australia and New Zealand.

9MP development allocation fixed at RM230b
by Surin Murugiah & Joy Lee May Yen, 13 Aug 2008 10:48 AM THEEDGEDAILY

CYBERJAYA: The overall ceiling for development allocation under the Ninth Malaysia Plan (9MP) is fixed at RM230 billion and would not be increased during the upcoming Budget 2009, said Second Finance Minister Tan Sri Nor Mohamed Yakcop.

The total allocation for operating expenditure, however, would be higher when the budget was tabled on Aug 29, he said.

The minister did not reveal the quantum of increase in the allocation but his statement was a fairly strong indication that there would be limited pump-priming activities by the government.

The government when unveiling the mid-term review of the 9MP in June had proposed to increase the ceiling for development allocation to RM230 billion from RM200 billion previously.

It said the increase was to cater for the rising cost of implementing projects as a result of escalating prices of building materials, as well as to account for other priorities such as the regional corridor developments and adequate food production for the country.

Speaking to reporters after the official launch of the SME Technopreneur Centre II here yesterday, Nor Mohamed said the operating expenditure allocation would be higher than in the last budget in view of the higher costs now.

He said the upcoming budget, as in the past, would be people-friendly and would not burden the public. “It will not be unfriendly to anyone,” he said, when asked if corporate tax rates would be reduced.

On whether there would be provisions in the budget to require local banks to restructure housing and car loan repayments, Nor Mohamed said there was no need for such a measure as banks were already proactively coming up with their own schemes.

“The banks are already restructuring such loans to enable their clients to repay lower amounts over a longer period. The domestic banks have responded well and have agreed to restructure loans,” he said.

On economic growth, Nor Mohamed said while gross domestic product (GDP) grew 7.1% in the first quarter of the year, growth in the second quarter was reasonably strong and would be announced during the tabling of the budget.

“Obviously 2H08 will not be as good as the first half, but overall it would register positive growth,” he said.

On a separate matter, Nor Mohamed declined to comment on whether national carmaker Proton Holdings Bhd had re-entered into talks with any foreign party, including Volkswagen (VW), to take up a strategic stake in the company.

In the past few weeks, there have been calls for Proton to reconsider a foreign partnership and the latest to suggest the idea was Prime Minister Datuk Seri Abdullah Ahmad Badawi who said that Proton needed to further improve on its quality and service to buyers.

“If such efforts are not made, Proton may need to enter into a partnership with a car company that is stronger and more capable,” Abdullah had said last week.

The government had last November withdrawn from talks with VW, which would have seen the German car company, the fourth largest in the world, acquiring a strategic stake in Proton.

Nor Mohamed had said then that there was no breakdown in the talks and neither did VW walk away from the negotiations.

He had said that the decision was made by the Cabinet Committee on National Automotive Policy (headed by the deputy prime minister) following a final reappraisal of whether the time was right to enter a strategic alliance with a major carmaker to ensure Proton’s sustainability.

'Let top priority projects go on'
By Sharen Kaur Published: 2008/10/17
BusinessTimes

INDUSTRY players hope the government's plans to review projects under the Ninth Malaysia Plan (9MP) will be prioritised to have minimal impact on the general public, the economy and companies' bottom lines.

It was recently announced that some 9MP projects, including those in the economic growth corridors, might be reviewed and shelved owing to the current financial crisis and gloomier global outlook.

Water Association of Selangor, Kuala Lumpur and Putrajaya president Tan Sri Rozali Ismail believes that an area that should continue to be given focus is water and wastewater management projects that address water pollution concerns and supply.

"Consumption of water is increasing, and so is demand for fresh water. But there is no proper water and wastewater management system to supply enough clean water, especially in Sabah, Sarawak and Kelantan," Rozali told Business Times in in Shah Alam, Selangor, yesterday.

"Most of our rivers are polluted by direct discharge from the waste treatment system, which is not properly built or managed.

"We must improve the system as it is becoming critical," said Rozali, who is also the executive chairman of Puncak Niaga Holdings Bhd and Syarikat Bekalan Air Selangor.

Melati Ehsan Holdings Bhd managing director Tan Sri Yap Suan Chee said that flood mitigation projects in the country should also proceed.

The government doubled its budget for projects to tackle flooding to RM4 billion under the 9MP, but speculation is rife that some jobs may be delayed.

"Projects under the 9MP which have yet to be awarded may be affected by the global credit crunch; therefore, the government is right to prioritise projects to benefit the rakyat.

"But bigger projects, especially infrastructure-related, should not be shelved to keep companies going, especially the lower liners," Yap said.

He said that Melati Ehsan, with more than RM1 billion of construction jobs in hand, expects to complete its current contracts on schedule and to launch new affordable housing.

MMC Corp Bhd chief executive officer Hasni Harun, meanwhile, does not expect a negative impact on its business if the government shelves some projects.

"Last month, we leased part of our 913ha in Iskandar Malaysia to Vitol Terminals, the world's leading oil terminal operator, which will invest up to RM1 billion to construct facilities for an oil terminal in the region.

"Given our existing presence in south Johor, a review of new projects in the state will not impact these businesses," Hasni said.

"MMC has built a strong foundation locally and internationally in becoming a global utilities and logistics player.

"We are confident of riding out the current economic downturn. We remain optimistic of MMC's future and expect to record better results this year," he added.

Naim Cendera Holdings Bhd deputy managing director Dr Sharifuddin Abdul Wahab said, however, that the company had been bracing itself for a cut in government projects for some time and concentrated instead on property development and oil and gas.

"We had anticipated this even as far back as two years ago, hence our inroads into the oil and gas sector and acquiring a stake in Dayang Enterprise Holdings Bhd last year," Sharifuddin said.

He added that while Naim would be affected if projects were shelved, it was nevertheless looking for jobs overseas to improve earnings.

State Govt Allocates RM2.778 Billion For Sabah Budget 2009
November 14, 2008 21:49 PM

KOTA KINABALU, Nov 14 (Bernama) -- The Sabah state government has allocated RM2.778 billion for Budget 2009, up by RM477.66 million or 20.76 percent from the current budget.

Sabah Chief Minister Datuk Seri Musa Aman, who is also the state Finance Minister, in presenting the budget at the Sabah Legislative Assembly, said the budget was the highest and biggest presented so far.

The strategies for Budget 2009, among others, are to continue efforts towards strengthening the state financial position through efficient financial management, raising efficiency of the public sector delivery, improving productivity and intensifying socio-economic development.

Estimated state expenditure for development in 2009 amounted to RM1.04 billion, higher by RM56.25 million or 5.71 percent compared to this year's expenditure of RM984.23 million.

"Besides the state allocation, there are also allocation sources from the federal government amounting to RM435 million. With this, the total allocation for Sabah will be RM1.475 billion," Musa said.

Revenue for the state in 2009 is estimated at RM2.57 billion, down by 11.23 percent compared to this year with crude palm oil (CPO) prices and forestry revenue expected to be lower next year.

For 2008, based on the revenue gained so far, the state is expected to achieve RM3 billion by end of this year, Musa said.

He said the state's economic growth is projected at 5.0 percent for this year and 4.50 percent next year due to external factors like the global financial crisis, high fuel prices and rising inflation.

Musa said despite the global economic uncertainties, private sector investment remained stable as shown by the 7.30 percent increase in loans by commercial banks to various sectors in the first six months of this year totalling RM26.60 billion.

He said though the private sector was cautious as a result of the global scenario, the recent four-day Sabah International Expo 2008 saw an eight-fold increase in business transactions totalling RM142.7 million compared to RM18.1 million in 2006.

"This showed that the confidence of investors as well as local and foreign businessmen in Sabah is high," he added.

-- BERNAMA