etp_handbook_chapter_1-4_economic_model

These government actions include policy and

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: wever, delivery of many of the entry point projects (EPPs) requires government action. These government actions include policy and regulatory change and funding in areas such as education or infrastructure. Only about 15 percent of the EPPs do not request specific government funding or policy support. About 70 percent of the required government enabling actions are specific to an individual EPP or across an NKEA and are described in detail in the NKEA chapters of this Roadmap. In addition, there are a series of required government actions that are common across multiple EPPs and across multiple NKEAs. It will be more effective and efficient to coordinate these cross-cutting actions than solve them on an individual basis as they arise. In addition, these enabling actions will support GNI growth resulting from the business opportunities in the NKEAs as well as in the non-NKEA sectors. This is important because the business opportunities in the NKEAs comprise 33 percent of the incremental GNI required to achieve the 2020 GNI target, while the non-NKEA sectors account for an additional 26 percent of incremental GNI. Without these broader policy enablers, it is unlikely that the GNI growth required will be delivered. Four categories of enablers are discussed below. The first is promoting private investment - attracting and supporting domestic and foreign investment as well as developing a clear framework for delivering fiscal support. The second is growing human capital - attracting foreign talent to Malaysia to support growth in areas such as Greater Kuala Lumpur/Klang Valley, streamlining immigration rules and procedures and investing systematically in vocational education for Malaysians. The third is improving the business environment - reducing compliance costs, deregulating and improving the efficiency of government operations in order to generate a substantial increase in private investment. The fourth is investing in infrastructure, such as broadband and logistics. 94 Chapter 3 Enabling the Success of the ETP PROMOTING PRIVATE INVESTMENT Private investment is at the core of the Economic Transformation Programme (ETP). In many cases, delivering this investment will require some support from the Government. Of the 131 EPPs, 59 make a formal request for government assistance to promote private investment. These requests fall into two broad categories: more aggressive investment promotion to obtain both domestic and foreign investment and various forms of fiscal incentives. Investor Attraction A total of RM1.3 trillion in additional investment is required from the private sector to fund the EPPs and business opportunities identified in the ETP. About 73 percent of this capital or RM953 billion is expected to come from domestic sources. As noted in Chapter 2, Malaysia has a high domestic savings rate, indicating that this capital is available. The priority is to ensure that this domestic-capital is attracted to the productive opportunities identified in the NKEAs. Given the importance of domestic investment to the delivery of the ETP targets, we will expand the remit of the Malaysian I...
View Full Document

This note was uploaded on 02/24/2014 for the course ACCOUNTING financial taught by Professor Alan during the Spring '14 term at Howard.

Ask a homework question - tutors are online