Najib launches 20 news ETP, corridor projects

Malaysia is an attractive investment destination because of the country’s growth, and commitment to structural changes.

KUALA LUMPUR: Prime Minister Najib Tun Razak today announced 20 projects under the National Key Economic Areas (NKEAs) as well as the three economic corridors.

Combined, the projects will contribute RM10.08 billion of GNI (gross national income) in 2020 as well as attract investments of RM26.09 billion and create 64,282 jobs by 2020.

The 11 key projects in seven National Key Economic Areas (NKEAs) will contribute RM1.129 billion of GNI in 2020 as well as attract investments of RM6.68 billion and create 40,021 jobs by 2020

The seven NKEAs are oil, gas and energy; greater KL/KV; communications content and infrastructure; business services; healthcare; tourism and education.

In the last progress update for 2012, he also announced the progress of the Competition, Standards and Liberalisation Strategic Reform Initiatives (CSL SRI) as well as the Narrowing Disparities SRI.

Also highlighted are nine projects under three corridors: the Sabah Economic Development Corporation (SEDC), Northern Corridor Implementation Authority (NCIA) and Iskandar Region Development Authority (IRDA), which will complement the Economic Transformation Programme (ETP) in propelling Malaysia’s economic growth.

The nine projects will contribute RM8.95 billion of GNI in 2020 as well as attract investments of RM19.41 billion and create 24,261 jobs by 2020.

In his speech, Najib said Malaysia has stood out to many investors as an attractive investment destination in times of economic turbulence, because of the country’s growth, and commitment to structural changes.

He also said the benchmark FTSE Bursa Malaysia KLCI index has reached more fresh peaks this year than any other year, cumulating in a historic high of 1,675.69 points recently on Nov 1.

On top of this, Malaysia’s initial public offering (IPO) market is back on the radar of global investors. Listings of Felda Global Ventures Holding Bhd, IHH Healthcare Bhd and Astro Malaysia Bhd have made Malaysia one of the most attractive IPO centres globally.

“In addition, our commitment to structural changes is validated by the World Bank’s Doing Business 2013 report which saw Malaysia leaping to 12th position in global competitiveness.

“The report, which surveyed 185 economies, also ranked Malaysia first in ‘Ease of Getting Credit’ and fourth in ‘Protecting Investors’. This puts us ahead of countries such as Germany, Japan and Taiwan,” he added.

Expediting structural reforms

The new ranking of 12th position is a significant improvement over last year’s 18th position and 23rd in 2010, continuing a trend of improving competitiveness which began four years ago.

The Grant Thornton Global Dynamism Index (GDI) also ranked Malaysia as the second best country in Asean for dynamic growing businesses. The strong positioning was a result of good ratings in key areas of business operating environment, economics and growth, and financing environment.

However, Najib also said, “While we are making good progress on all fronts, we need to expedite the structural reforms to make Malaysia, and Malaysians globally competitive. It’s absolutely critical to build an environment that’s totally conducive for individuals and companies to build and strengthen their global competitiveness as soon as possible.”

Malaysia dropped four rankings from 21st to 25th in World Economic Forum’s (WEF) Global Competitiveness Report 2012-2013, after substantially improving its ranking last year.

“This is a glaring indicator that we cannot afford to be complacent as the other countries are continuously improving their competitiveness. I am even more determined to work towards improving our competitive position especially in the areas of technology and innovation.”