KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak has given the assurance that the government will announce a slew of new major and exciting projects in the next few months, providing traction in implementing effectively Malaysia's Economic Transformation Programme.
Having announced 60 projects so far, Najib said he wants the plan to take off by focusing on the entry point projects, the big ticket items as well as high-impact projects and not just infrastructure projects.
"It's the whole works, including high investment projects that will create high-value to the economy and jobs," which was key for the remainder of the government's current term, he said during an interview with Bloomberg television channel at his office in Putrajaya on Friday, April 1.
During the wide-ranging interview on his achievements after two years in office with Bloomberg journalists Robyn Meredith and Barry Porter on the economy, he said Malaysia's clear aim was to become a fully-developed nation by 2020.
Among other things, the interview touched on inflation, subsidies, Malaysia's nuclear ambition, its leadership in Islamic finance, the upcoming Sarawak elections and possible date for the general election, the Bumiputera affirmative policy, Kuala Lumpur's involvement in the Trans-Pacific Partnership and impact of China's Yuan.
Asked whether Malaysia would be able to meet Bank Negara Malaysia's Gross Domestic Product target of between five and six per cent this year, he said: "I believe we are still on track to achieving 6.0% with positive government intervention in the form of entry point projects and massive underground mass urban transport system for Greater Kuala Lumpur.
"That will create multiplier effects (and) those are the kind of investments that will make us achieve 6.0 per cent growth this year," he said.
As to financing the mass rail transit project, he said: "We can finance it in a creative way so that it will not be too taxing in terms of our development expenditure.
"So, it is, in a way, a project that has got the viability because the returns are good and will create a multiplier effect," he said.
Najib also said the government might sell bonds to finance the project which was within the government's means domestically.
"We have huge savings in Malaysia, so those are sources of investments or borrowings we can use to finance it,' he said.
The Prime Minister dismissed notions that the government would refrain from raising petrol prices, saying however that there should be some flexibility in the way subsidies are rationalised.
"We do not want rising prices in Malaysia to be a major burden for the people," he said, adding the government would continue to keep a close watch on inflation which was "creeping up slightly" but was still below 3.0%.
On the possibility of pausing on subsidy cuts and doing more later, Najib said:"That is what we are looking at now in total, because we have to see how much more subsidies we can bear.
"At the same time, we are committed to reducing the deficit. The deficit cannot go up. It's at 5.6% now. We hope to bring it down to 5.4% and eventually to around 3% to 4%.
"But that's a medium-term goal. At the same time, we have to look in terms of our revenue. How do we increase our revenue as a government? We are looking at some of the challenges we need to do between domestic requirement and the need to give that confidence in terms of our macro management," he said.
On whether this was a change from the government's earlier deficit target of 2.8% by 2015, he said: "Its about 3% to 4%" in the next five years or so.
Najib said Malaysia was committed towards reducing federal debt.
As to helping people cope with inflation, he said that domestically, the government was looking at the supply side, for instance, increasing the supply of chicken to bring down the prices, which, he said, might come down next month.
However, he said imported inflation or rising imported food prices were going to be a challenge for Malaysia.
"We are also looking at whether we can have shops selling at discounted prices to the people," he said.
Najib however cautioned that commodity price inflation was a global worry, not only for Malaysia, meaning Malaysia would "have to maintain subsidies at quite a high level, including petrol subsidies."
"I am also looking at new initiatives to help people who are facing the brunt of rising prices. We have not reached the maximum threshold yet, but there are some signs people are feeling the pinch of rising food prices.
"We have to look at the government package and as well as try to stimulate supply," said Najib.
Touching on the emergence of China's Yuan as a reserve currency and currency for trade settlement, he said: "We have to maintain the US dollar as the most important international reserve currency. The euro is also an important reserve currency, despite what's happened in Europe (and) we have confidence in the long-term stability of the euro currency."
Najib stressed that Malaysia has a very good relationship with China, particularly on the economic front, saying that "we can now settle trade between our countries in local currencies."
On whether Malaysian trade settlements in Yuan could double, he said that it was "very likely. I think it is a very positive step."
To questions in safeguarding against hot money flowing in and out of the country, Najib said the government was "monitoring this very, very closely."
"We do not like excessive volatility, whether it is in the stock market or in our currency. As long as there is steady growth based on strong fundamentals, that is what we are trying to achieve.
"So, it is going to be a combination of a very, very strict supervision of what's happening (and) if it gets overheated in any way, I think we will take the necessary steps," he said. - Bernama
Having announced 60 projects so far, Najib said he wants the plan to take off by focusing on the entry point projects, the big ticket items as well as high-impact projects and not just infrastructure projects.
"It's the whole works, including high investment projects that will create high-value to the economy and jobs," which was key for the remainder of the government's current term, he said during an interview with Bloomberg television channel at his office in Putrajaya on Friday, April 1.
During the wide-ranging interview on his achievements after two years in office with Bloomberg journalists Robyn Meredith and Barry Porter on the economy, he said Malaysia's clear aim was to become a fully-developed nation by 2020.
Among other things, the interview touched on inflation, subsidies, Malaysia's nuclear ambition, its leadership in Islamic finance, the upcoming Sarawak elections and possible date for the general election, the Bumiputera affirmative policy, Kuala Lumpur's involvement in the Trans-Pacific Partnership and impact of China's Yuan.
Asked whether Malaysia would be able to meet Bank Negara Malaysia's Gross Domestic Product target of between five and six per cent this year, he said: "I believe we are still on track to achieving 6.0% with positive government intervention in the form of entry point projects and massive underground mass urban transport system for Greater Kuala Lumpur.
"That will create multiplier effects (and) those are the kind of investments that will make us achieve 6.0 per cent growth this year," he said.
As to financing the mass rail transit project, he said: "We can finance it in a creative way so that it will not be too taxing in terms of our development expenditure.
"So, it is, in a way, a project that has got the viability because the returns are good and will create a multiplier effect," he said.
Najib also said the government might sell bonds to finance the project which was within the government's means domestically.
"We have huge savings in Malaysia, so those are sources of investments or borrowings we can use to finance it,' he said.
The Prime Minister dismissed notions that the government would refrain from raising petrol prices, saying however that there should be some flexibility in the way subsidies are rationalised.
"We do not want rising prices in Malaysia to be a major burden for the people," he said, adding the government would continue to keep a close watch on inflation which was "creeping up slightly" but was still below 3.0%.
On the possibility of pausing on subsidy cuts and doing more later, Najib said:"That is what we are looking at now in total, because we have to see how much more subsidies we can bear.
"At the same time, we are committed to reducing the deficit. The deficit cannot go up. It's at 5.6% now. We hope to bring it down to 5.4% and eventually to around 3% to 4%.
"But that's a medium-term goal. At the same time, we have to look in terms of our revenue. How do we increase our revenue as a government? We are looking at some of the challenges we need to do between domestic requirement and the need to give that confidence in terms of our macro management," he said.
On whether this was a change from the government's earlier deficit target of 2.8% by 2015, he said: "Its about 3% to 4%" in the next five years or so.
Najib said Malaysia was committed towards reducing federal debt.
As to helping people cope with inflation, he said that domestically, the government was looking at the supply side, for instance, increasing the supply of chicken to bring down the prices, which, he said, might come down next month.
However, he said imported inflation or rising imported food prices were going to be a challenge for Malaysia.
"We are also looking at whether we can have shops selling at discounted prices to the people," he said.
Najib however cautioned that commodity price inflation was a global worry, not only for Malaysia, meaning Malaysia would "have to maintain subsidies at quite a high level, including petrol subsidies."
"I am also looking at new initiatives to help people who are facing the brunt of rising prices. We have not reached the maximum threshold yet, but there are some signs people are feeling the pinch of rising food prices.
"We have to look at the government package and as well as try to stimulate supply," said Najib.
Touching on the emergence of China's Yuan as a reserve currency and currency for trade settlement, he said: "We have to maintain the US dollar as the most important international reserve currency. The euro is also an important reserve currency, despite what's happened in Europe (and) we have confidence in the long-term stability of the euro currency."
Najib stressed that Malaysia has a very good relationship with China, particularly on the economic front, saying that "we can now settle trade between our countries in local currencies."
On whether Malaysian trade settlements in Yuan could double, he said that it was "very likely. I think it is a very positive step."
To questions in safeguarding against hot money flowing in and out of the country, Najib said the government was "monitoring this very, very closely."
"We do not like excessive volatility, whether it is in the stock market or in our currency. As long as there is steady growth based on strong fundamentals, that is what we are trying to achieve.
"So, it is going to be a combination of a very, very strict supervision of what's happening (and) if it gets overheated in any way, I think we will take the necessary steps," he said. - Bernama
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