Countdown to 2020!

[pedang]

Stiglitz: Large reserves, diversified economy will protect Malaysia

By Hamisah Hamid
hamisahhamid@nstp.com.my

August 30 2007

THE outlook for Malaysia’s economy in the next decade is positive, former World Bank economist Professor Joseph E. Stiglitz said.



The large reserves and diversified economy will shelter the country from external storms, he added.

Stiglitz said the changing global landscape since a decade ago, such as the Asian financial crisis and the 9/11 terrorist attacks in New York, has resulted in the increasing importance of the Asian region.

The post 9/11 period saw investments from the Middle East moving away from New York and London into Asia.

“This provides opportunities for Asian countries, including Malaysia,” he said when fielding a question from the audience at the Khazanah Global Lectures in Kuala Lumpur last night.

Nearly 1,000 people attended the lecture, which was also telecast live to five local universities.

Among those present were the Raja Muda of Perak Raja Dr Nazrin Shah and the Raja Puan Besar of Perak Tuanku Zara Salim, Royal Professor Ungku Aziz, CIMB group chairman Tan Sri Md Nor Yusof, Minister in Prime Minister’s Department Datuk Dr Maximus Ongkili, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz, Khazanah Nasional managing director Datuk Azman Mokhtar and Sime Darby Bhd board member Datuk Seri Panglima Andrew Sheng.

Earlier in his lecture, Nobel Laureate Stiglitz said in meeting future challenges, Malaysia should consider a new economic model that emphasises sustainability and equitability, and where its people lead a less resource-intensive way of live.

Stiglitz, currently a professor at Columbia University, said economic policy should not be just to increase the gross domestic product (GDP) but also to provide sustainable, equitable and democratic increases in standards of living.

“What is clear is that a new economic model is needed … at the very least, Malaysia — and the citizens of all countries — will have to find ways of living that are less resource-intensive,” he said.

Stiglitz said Malaysia, with its abundance of forests, can contribute to help solve the global environmental problem of greenhouse gases, by preserving its forests and stopping illegal logging.

He said developing countries should be provided with compensation for their enormous environmental services that they provide the world by preserving their forests and biodiversity.

He also said that Malaysia, which has managed its multi-ethnic society well to date, could show the world how global community can live together with toleration and respect.

Stiglitz lauded Malaysia’s pragmatism in facing the changing situations and challenges over the last 50 years.

High savings rate, narrowing of knowledge gap and emphasis on social fabric are among Malaysia’s success factors.

He said Malaysia closed the large income gap between various ethnic groups with an active affirmative action programmes, “perhaps the most successful the world has seen”.

[Matsat]

malaysia will have a hard time doing it themselves so good to thing the arabs are coming or we'd be would be stuffed.

Originally Posted by pedang

The Arab $ are coming
bt@nstp.com.my

August 13 2007

IT'S finally becoming a reality.

All that talk about Arab billions flowing into Malaysia is on the brink of happening in a big way, investment bankers and analysts familiar with the matter said.

Major announcements of huge investments from Abu Dhabi and Kuwait in construction projects in the Khazanah-led southern Johor Iskandar Development Region (IDR) are expected in coming months, they told Business Times.

"The floodgates are opening. We could see Abu Dhabi, for example, pour in investment into IDR construction projects," said one banker who declined to be named.

"There is also investment expected from Kuwait, Saudi Arabia, Dubai and even the Lebanese investors to take advantage of Malaysia as a real estate destination," he added.

"This will include investment in land purchase and actual development. This is only the start. We would expect that similar deals could come through also in corporate deals," he said.

"The Middle East investors are also looking at investing in property management, landscaping, water and utilities in Malaysia. Singapore is also getting some but not as much as Malaysia will."

Sheikh Sabah Mohd S. Al-Sabah, a shareholder of Swan Symphony Sdn Bhd which moved last week to take over construction firm Putrajaya Perdana, told Business Times that Malaysia offers a good value proposition for Middle Eastern investors.

"I cannot speak for other investors, but Malaysia welcomes foreign investors, has good infrastructure and supports foreign investment. Plus there are several exciting projects, notably the IDR," he said.

Analysts said Middle East investors are known for their quick starts on projects once everything is in order and completing the projects on time.

Malaysia has been working very hard to lure the Middle East investment for some time and it is finally hitting pay dirt.

The Arab investors are said by bankers and analysts to be opting for Malaysia because they are feel more secure investing in rapidly developing nations like Malaysia.

Since the beginning of last year, some major Arab investment in corporate deals involving listed companies have already occurred.

A consortium comprising the Kuwait Al Sabah royal family and investors from Abu Dhabi, Malaysia and Singapore is buying 50.6 per cent of Putrajaya Perdana for RM390 million.

Saudi Telecom in June paid US$3 billion (RM10.4 billion) for a 25 per cent stake in Maxis Communications Bhd, Malaysia's biggest mobile phone operator.

Institutional investor Saudi Economic & Development Co (Sedco) recently bought a 22 per cent stake in marble maker Gefung Holdings, in a deal worth RM55.5 million.

Sedco also bought 6 per cent of AirAsia Bhd, and 10 per cent of Green Packet Bhd.

"The Arabs are coming because of the attractiveness of the mega investment opportunities in Malaysia, the ability of Khazanah to deliver the goods on government projects and the moderate Islam practised in the country," another analyst said.

"In the next few months we will see some top names from Middle East investing here," he said.

Abu Dhabi, for example, sits on 10 per cent of the world's oil supply and has a grand plan to turn itself into the cultural capital of the Middle East.

"There is a good chance it will bring its grand vision into property projects in the IDR," said the analyst.

The cash-rich investors were keen to put their funds in "green areas" like Malaysia, said TA Securities head of research Kaladher Govindon.

"While soaring petroleum prices could be an attraction, Malaysia, being an Islamic country and with the government's pro-business measures, is in a better position to attract investors from West Asia," he noted.

Kaladher said the IDR is an attraction as there is no equity limitation for foreign investors.

Then there is also the Northern Corridor and the Ninth Malaysia Plan projects which offer an added investment opportunity, he said.

OSK Investment Bank Bhd analyst Chan Ken Yew added that the government is continuing plans to encourage investments from various countries besides the Middle East.

He said, in general, Middle Eastern investors look for Syariah-compliant investment opportunities like in properties, construction, plantations, telecommunications and other utility sectors.

"Based on our observation, most of them have invested in property and construction sectors. It is the government's vision to promote Malaysia as a regional Islamic financial hub and the plan is working. It is a good sign that investors from the Middle Eastern countries are investing here," Chan said.

He said the chances for these investors to get involved in the Northern Corridor and IDR is also high, so long as the sectors are Syariah-based.

According to statistics available on Bank Negara Malaysia's website, investments here from the Middle East covering United Arab Emirates (UAE), Kuwait, Lebanon and Saudi Arabia was 1.83 per cent (RM995 million) of total investments received from across the globe in 2006.

This was an impressive improvement over 2005, where the same countries contributed only 0.16 per cent to the total investments received.

Investments from Malaysia to overseas countries was RM82.3 billion in 2005 and RM141.98 billion last year.

For the first quarter of the current year, the Middle East has contributed 0.64 per cent to total investments received, amounting to RM9.15 billion, as compared with 0.33 per cent over RM11.78 billion in the same quarter last year.

"Judging from the first quarter results, we can expect investments from Middle East to double this year. Looking at the trend so far, we could expect more investors to come here," Chan added.

Kaladher believes this is just the beginning.

He said Malaysian players would look outside the country to invest but now there is a turn where Middle Eastern companies are coming here, to take local expertise abroad.

Local companies like LCL Corp Bhd, MMC Corp Bhd, Ranhill Bhd and Eversendai Engineering Sdn Bhd have been getting lucrative contracts in the Middle East, especially Libya, Sudan, Dubai and Abu Dhabi.

"It works both ways. They are here to capitalise and by acquiring local companies, the investors are able to apply the skill set not just here but in their home base and other countries as well. Malaysian firms would also stand a chance to win bigger jobs abroad," he said.

"Kuwait Finance House is also looking for other investment opportunities here. In the case of Transmile Group Bhd, Middle East players are also expected to come in. It looks very promising for Malaysia," added Kaladher.

Sedco's acquisition of a 22 per cent stake in Gefung Holdings Bhd recently, for example, would allow the high-end marble and granite maker to expand overseas.

[haze]

August 31, 2007 19:05 PM

Bush: Malaysia A Prosperous Nation And A Beacon Of Hope Today


KUALA LUMPUR, Aug 31 (Bernama) -- United States President George W.Bush congratulated Malaysians as they celebrate 50 years of independence today. saying that the country has become a beacon of hope.

In his message, he said that 50 years ago a young democracy came into being on the Malayan peninsula.

To ensure its freedom, its people had to defeat a communist insurgency and chart a course that gave all its people equal rights.

"That democracy, like so many in East Asia, has flourished based on principles of respect for the rights of all in society, regardless of ethnicity or religious belief.

"Malaysia today is a prosperous nation, and a beacon of hope," he said, adding that Aug 31 is an historic day for East Asian democracy.

-- BERNAMA

[Sail_the_Web]

No word about corruption? About cronyism? About affirmative action directed at but one demographic cluster? About crime? Strange indeed!

[haze]

kau tanya bush sendiri la.

[alsen]

Originally Posted by haze

August 31, 2007 19:05 PM

Bush: Malaysia A Prosperous Nation And A Beacon Of Hope Today


"Malaysia today is a prosperous nation, and a beacon of hope," he said, adding that Aug 31 is an historic day for East Asian democracy.

-- BERNAMA

couldnt agree more.

[haze]

Aldar may use Malaysia as its region springboard
By Sharen Kaur
sharen@nstp.com.my


August 31 2007


ABU Dhabi's Aldar Properties may use Malaysia as its base to scout for more investments in the region, its top official said.
Chairman Ahmed Ali Al Sayegh said its investments in the Iskandar Development Region (Iskandar) will be a catalyst for more opportunities.


He said Aldar's participation in Iskandar will open avenues for further investment opportunities with Khazanah Nasional Bhd.


"We are here today because of Iskandar. There will be many other opportunities here. We have expertise and as an investor, we look for projects with good returns," Al Sayegh said.


Aldar is part of a consortium of three Middle Eastern firms that will initially invest RM4.1 billion in Node 1 of Iskandar.


"We are pleased to be part of the government's vision, a clear vision which is important for this thing (Iskandar) to take place," he said after the signing ceremony between South Johor Investment Corp Bhd (SJIC) and the three investing companies from the Middle East on Wednesday.


The companies are Mubadala Development Co, Kuwait Finance House and Millennium Development International Co which will develop the lifestyle and leisure cluster, cultural cluster and international financial district of Node 1.


SJIC will be a strategic partner in each of the consortiums with a 30 per cent stake.


Al Sayegh said Aldar has not set any targets from its Iskandar investments but felt that returns would be rewarding as the region itself was a special zone.


"We have a lot of people interested in this development. Middle Eastern banks are looking for opportunities in Asia. Foreign banks with Islamic banking expertise are also keen," he said.

[Leeigh]

Originally Posted by Sail_the_Web

No word about corruption? About cronyism? About affirmative action directed at but one demographic cluster? About crime? Strange indeed!

there is always a time and place for everything and unfortunately what you mentioned not only much alive in malaysia but anywhere else in the world..cronyism, double standard..all that stuff..

[SEED]

Originally Posted by Sail_the_Web

No word about corruption? About cronyism? About affirmative action directed at but one demographic cluster? About crime? Strange indeed!

as if theres such thing as a non corrupt government in this world.. ur funny!

[haze]

yes ur right seed

[Leeigh]

thats is very true wiseman SEED.

[OshHisham]

why a new register loves trolling ah..?

[pedang]

eptember 03, 2007 15:20 PM

Malaysian Investments In Thailand Rise To US$324.9 Million

By D. Arul Rajoo

BANGKOK, Sept 3 (Bernama) -- Malaysian investment in Thailand amounted to US$324.9 million in the first half of this year, making it the third largest foreign investor in the kingdom after Japan and the United States.

Malaysian Ambassador to Thailand, Datuk Shaarani Ibrahim, said Malaysian investments were diversified, covering both the manufacturing and services sectors.

Among the biggest Malaysian investors in Thailand are Petronas, Aapico, Sime Darby, Trans Thai-Malaysia Ltd and Bina Puri while other companies operating here include RHB Bank and CIMB.

Thailand's investments in Malaysia, on the other hand, amounted to US$200 million for the 2000 to 2006 period, said Shaarani in his message in conjunction with Malaysia's 50th Independence Day and the 50th anniversary of Malaysia-Thailand diplomatic relationships.

Shaarani said Thai investments in Malaysia were mostly in the manufacturing sector, in particular petroleum and chemical products, food manufacturing, transportation equipment and wood products.

"Both countries are making greater efforts to increase trade and investment. An enhancement in business relations will be mutually beneficial and bring the two countries closer together in many ways," he said.

Malaysia is also Thailand's fourth largest trading partner and the largest among Asean countries, with total trade last year amounting to US$15 billion.

Shaarani said in the first six months of 2007, two-way trade amounted to US$7.68 billion, compared to US$7.20 billion over the same period last year.

He also said that Malaysia was cooperating with Thailand in its effort to undertake socio-economic developments in southern Thailand, through collaboration in the field of education and human capital development.

--BERNAMA

[nazrey]

Sarawak celebrates its progress
Tuesday September 4, 2007
By STEPHEN THEN
TheStar




Taking pride: Royal Malaysian Navy personnel
raising the Jalur Gemilang at Miri stadium.

SARAWAK has been transformed from one of the poorest to one of the richest states in Malaysia over the past five decades, largely due to the excellent federal-state government relationship.

Chief Minister Tan Sri Abdul Taib Mahmud said the state, the biggest in the country, has progressed by leaps and bounds and its 2.5 million people have every reason to be proud of Merdeka.

He told this to a crowd of some 30,000 people who gathered at Miri Stadium to celebrate and witness the Merdeka parade.

“Sarawak is looking beyond 2020. We are working towards developing a knowledge-based workforce. We want to accelerate our growth in many key sectors as we move forward towards 2030,” he said.

A total of 117 contingents ranging from school troupes to government agencies and community and business organisations took part in the colourful parade witnessed by Taib, the Head of State, other state ministers and dignitaries and the crowd.

On Merdeka eve, a concert was held at the City Fan recreational ground, followed by a fireworks display after the midnight countdown.

Sarawak will celebrate its 44 years of independence through Malaysia on September 16.

Similar town-scale Merdeka celebrations held all over the state’s 11 divisions, from Kuching in the south to Limbang in the north as Sarawakians joined their counterparts nationwide to mark the country’s independence.

[pedang]

Malaysia, Korea, Thailand make debt mart progress

Email us your feedback at fd@bizedge.com

SINGAPORE: Malaysia, South Korea and Thailand have made the most progress in expanding their domestic bond markets since the Asian financial crisis a decade ago, helping unprofitable and debt-laden companies improve their finances, the Bank for International Settlements said.

The expansion of Asia’s local bond markets has helped companies reduce their dependence on foreign currency-denominated debt and improve corporate reporting, according to the latest quarterly report from Basel, Switzerland-based BIS.

Local-currency bonds account for 52% of debt securities in Malaysia, 18% in South Korea and 25% in Thailand, the BIS report shows.

Asian companies can now turn to the more developed local-currency bond markets to raise funds, helping to reduce the concentration of risk at local banks. Local and foreign banks in Asia have shunned riskier borrowers and cut down on loans to companies, as they shift their focus to consumer lending, according to the report.

About US$94.4 billion (RM330.4 billion) worth of bonds denominated in the South Korean won, Malaysian ringgit and other Asian currencies were sold last year, 16% higher than in 2005, according to data compiled by Bloomberg. Sales of bonds in dollars, euros and yen by Asian companies fell to US$39.1 billion in 2006, from US$44.2 billion the previous year.

Companies that sell bonds are required to disclose information about their finances, allowing investors to assess better their corporate credit risk, the BIS said.

Companies in Asia, which had a high level of capital expenditure but low profitability before the currency crisis, improved their ability to repay debt after selling their non-core operations, reducing their capital investment and using internally generated cash to reduce debt, the report said.

Thailand sparked the Asian crisis in July 1997 when it devalued the baht in an effort to shore up its faltering economy, abandoning a policy of pegging the currency to the US dollar. The exodus of capital spread to the region’s other markets, triggering a crisis that pummeled their economies.

There was a fall in investment after the crisis in the region, leading Asian companies to take on less debt, according to the report.

Malaysia, Indonesia and Thailand had the biggest decline with an average investment rate at about 25% of the gross domestic product from 2000 to 2004, below the pre-crisis average of 34%, the BIS report shows.

[nazrey]

Malaysia says confident of 6 pct GDP growth target
Updated : 04-09-2007
Media : Reuters
via www.biznewsdb.com


KUALA LUMPUR, Sept 4 (Reuters) - Malaysia is confident of reaching its economic growth target of 6 percent for this year, Second Finance Minister Nor Mohamed Yakcop said on Tuesday.

"We are very confident of 6 percent growth," he told reporters after addressing an economic-development seminar.

"We have the flexibility, in the context of any slowdown in the international environment. We have the flexibility to keep the momentum of growth in the economy," he added.

Some economists have raised doubts about the government's target, citing weaker export demand, but strong domestic demand helped the country post better-than-expected growth in gross domestic product for the second quarter.

Last week, Malaysia reported second-quarter growth of 5.7 percent from a year earlier.

[nazrey]

Malaysia yakin capai pertumbuhan 6 peratus
Oleh Azli Ayob
Berita Harian




Kelemahan eksport tak jejas momentum ekonomi: Nor Mohamed

MALAYSIA yakin mampu mencapai sasarannya untuk mencatatkan pertumbuhan ekonomi enam peratus tahun ini di sebalik permintaan eksport yang lemah, kata Menteri Kewangan Kedua, Tan Sri Nor Mohamed Yakcop.

“Kami sangat yakin mencatatkan pertumbuhan enam peratus (tahun ini),” katanya selepas merasmikan Seminar Pembangunan Nasional Khazanah anjuran Khazanah Nasional Bhd di Kuala Lumpur, semalam.

Seminar sehari itu adalah sebahagian daripada siri syarahan Merdeka anjuran Khazanah yang membincangkan pelbagai topik berkaitan proses pembentukan Malaysia sebagai sebuah negara sedang membangun.

Turut hadir, Pengarah Urusan Khazanah, Datuk Azman Mokhtar dan Pengarah Khazanah yang juga Pengerusi CIMB Group, Tan Sri Md Nor Yusof.

Nor Mohamed berkata, Malaysia juga mempunyai fleksibiliti dalam menguruskan ekonominya ketika berdepan dengan sebarang kelembapan ekonomi global yang disebabkan persekitaran antarabangsa.

“Kita mempunyai fleksibiliti dalam memastikan momentum pertumbuhan ekonomi,” katanya.

Beliau menegaskan demikian ketika diminta mengulas komen beberapa ahli ekonomi yang ragu-ragu mengenai keupayaan negara ini untuk mencapai unjuran pertumbuhan Keluaran Dalam Negara Kasar (KDNK) enam peratus tahun ini disebabkan kelemahan eksport.

Minggu lalu, Bank Negara Malaysia mengumumkan Malaysia mencatatkan pertumbuhan KDNK 5.7 peratus dalam tempoh pertama tahun ini disokong permintaan domestik yang kukuh.

Terdahulu, Nor Mohamed dalam ucapannya berkata, disiplin tinggi pemimpin negara dalam menguruskan ekonomi menjadi antara faktor yang mendorong kepada kejayaan negara hari ini.

Disiplin itu katanya, terbukti apabila kerajaan tidak menggunakan dana daripada Bank Negara untuk perbelanjaan negara ketika berdepan kesulitan yang amat perit ketika kegawatan ekonomi yang lalu.

“Kerajaan sebenarnya boleh meminjam dana daripada bank pusat untuk tempoh jangka pendek, tetapi tidak berbuat demikian kerana cuba menyelesaikan kesulitan itu dengan cara yang lebih baik,” katanya.

Selain itu, katanya, disiplin yang tinggi turut ditunjukkan kerajaan sejak 50 tahun lalu apabila tidak pernah meminjam bagi perbelanjaan operasi seperti untuk pembayaran gaji dan kos pentadbiran.

“Kita sebaliknya menggunakan hasil kutipan cukai bagi tujuan itu. Ternyata disiplin yang tinggi itu membawa kepada kejayaan ekonomi negara sehingga hari ini,” katanya.

Katanya lagi, jika pun kerajaan meminjam, ia akan meminjam daripada sumber domestik dan digunakan untuk perbelanjaan pembangunan yang akan menyokong penjanaan pendapatan.

“Tidak seperti negara lain, kita juga sentiasa pastikan pinjaman yang dibuat dibayar semula sebelum waktunya,” katanya.

Selain disiplin, perbelanjaan secara berhemah juga menjadi faktor yang membawa kepada pengukuhan ekonomi negara, katanya.

[pedang]

Japanese venture capitalist keen to invest more in Malaysia
By Hamisah Hamid
hamisahhamid@nstp.com.my

September 5 2007

JAPANESE venture capital company JAIC Asia Holdings Pte Ltd wants to invest in more Malaysian companies and it is now on the lookout for them.

JAIC Asia vice president Hide Fujiyama said the company has invested between US$8 million and US$9 million in three Malaysian companies for the past 18 months.

The venture capitalist is now looking for Malaysian companies in information technology or general manufacturing sectors.

"We are confident that Malaysian companies can be global players. With our experience, we can help small and medium-sized enterprises (SMEs) from Malaysia to penetrate Japanese market and go for listing on Tokyo Stock Exchange," he told a news conference in Kuala Lumpur yesterday.

Among those present were Kuala Lumpur Malay Chamber of Commerce president Datuk Syed Amin Aljefry and Vietnam trade counsellor Nguyen Thi Coi.

Fujiyama, who is in charge of Malaysia, said so far the company has approached over 100 local companies.

He will talk more about regional sources of financing for SMEs at the East Asia SMEs Business Forum 2007, to be held in conjunction with the 8th International Strategic Partnership and Business Networking Trade Fair for SMEs (Global SMEs 2007).

The Global SMEs 2007 will run from September 6 to 8, at Matrade Exhibtion and Convention Centre in Kuala Lumpur.

[nazrey]

Malaysia can withstand slowdown
Wednesday September 5, 2007


KUALA LUMPUR: Malaysia has sufficient tools and strengths within its economy to withstand a slowdown in the global economy, said Second Finance Minister Tan Sri Nor Mohamed Yakcop.

“We have over the years diversified our economy. Today, domestic investment and domestic consumption are equally important factors,'' he said.

“We have the flexibility in the context of a slowdown in the international environment to keep the momentum going in the economy,'' he told the media after opening Khazanah Nasional Bhd's national development seminar yesterday.

Earlier during a question and answer session, Nor Mohamed said Malaysia's comparative strength was its multi-ethnic society.

He said Malaysia being home to the most number of Chinese and Indians outside those two countries, and given the country's ties with the Commonwealth and Organisation of Islamic Conference, was a tremendous comparative advantage.

“The trick is to leverage on this advantage.''

Nor Mohamed also said Malaysia had the ingredients to achieve the qualitative and quantitative targets set by Vision 2020.

He said the country's abundant natural resources, good leadership, democratic principles and judiciary were just some of the factors that would help the country reach that target.

[nazrey]

Gearing nation for the next 50 years
Saturday September 8, 2007


BUDGET 2008 is a happy one where everyone got something and no extra tax was introduced as even the smokers and drinkers were spared.

Designed to propel the country into becoming a competitive global player, Datuk Seri Abdullah Ahmad Badawi said the budget was to improve the quality of life of every Malaysian.

The Prime Minister said the main thrust of the Budget was aimed at enhancing the nation’s competitiveness, strengthening hu-man capital development and ensuring the well-being of all Malaysians.

He said a total of RM12bil has been allocated to implement the Higher Education Strategic Plan, launched on Aug 27 this year.

“This Plan aims to transform the higher education sector to produce highly knowledgeable and first-class human capital as well as develop world-class higher education institutions,” he said.

To promote a culture of lifelong learning among Malaysians, the Government proposes tax relief of up to RM5,000 on education fees be extended to all post-graduate studies.

A huge amount of money has been allocated to enhance knowledge and skills under the human capital development plan, while significant improvements have been announced to the public delivery system.

Abdullah said this Budget, themed Together Building The Nation and Sharing Prosperity, was particularly significant as it was the first as the country entered its second 50 years as an independent nation.

He added that it also reflected the Govern-ment’s aspiration to see the nation's wealth continue to grow and benefit all.

“Only in this way will our economic development be meaningful, with all Malaysians living in prosperity and harmony,” said Abdullah when tabling the Supply Bill 2008 at Dewan Rakyat yesterday.

A sum of RM176.9bil is being appropriated in the 2008 Budget, representing a 10.9% increase compared with 2007. Of this, RM128.8bil is for operating expenditure and RM48.1bil for development expenditure.

Abdullah said the largest allocation of RM20.6bil from the development expenditure would be for the economic sector comprising agriculture, industry and infrastructure sectors.

“A sum of RM15.6bil is allocated to the social sector encompassing education, health and housing. The security sector is given RM7bil,” he added

He said the budget deficit this year would be 3.2% and next year it would be further reduced to 3.1%.

He said a total of RM12bil has been allocated to implement the Higher Education Strategic Plan, launched on Aug 27 this year.

“This Plan aims to transform the higher education sector to produce highly knowledgeable and first-class human capital as well as develop world-class higher education institutions,” he said.

To promote a culture of lifelong learning among Malaysians, the Government proposes tax relief of up to RM5,000 on education fees be extended to all post-graduate studies.

Abdullah said that despite an uncertain global and regional economic outlook, the 2008 Budget's strategy and policies would ensure the nation’s growth prospects would continue to remain strong, with growth projected between 6% and 6.5% in 2008.

Private investment is expected to expand at 9.5% and private consumption at 7.9%. Per capita income is projected to increase by 6.8% to RM23,864 and in terms of purchasing power, parity equivalent to US$14,206.

The services sector is expected to grow at 8.6%, underpinned by tourism, transportation, finance and banking, property, education, health and ICT activities.

The agriculture sector is projected to grow 3.5% and focus will be given to the commercialisation of the plantation and livestock sectors.

“When Malaysia attains Vision 2020 and achieves developed nation status, it will be yet another glorious moment in the history of our nation’s economic development,” Abdullah said.