November 21, 2009 22:24 PM

Government To Fast Track Projects

KUALA LUMPUR, Nov 21 (Bernama) -- The government will fast track the implementation of several projects to the first quarter of 2010 to help the economy achieve a higher Gross Domestic Product (GDP) next year.

Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said the government was looking at various ways to raise GDP growth from the initial target of 3.0 per cent.

"We are now reasonably confident that a revised target of 5.0 per cent is achievable next year," he added in his speech delivered at the annual dinner of the Malaysian Investment Banking Association Saturday night.

The Minister added that the Economic Council, chaired by the Prime Minister Datuk Seri Najib Tun Razak last Thursday, had identified several sources of growth to enhance the country's capacity through domestic demand.

"We are also looking to strengthen the private sector's contribution to the GDP through government-linked companies," Ahmad Husni added.

He also said the government's primary focus in the medium term would be to revitalise private initiatives by improving internal competition in the marketplace, focus on technology and innovation in niche areas including green and bio-technologies.

He said the government would also develop these niches on existing comparative advantages and provide soft and hard infrastructure for the knowledge economy.

"With all these, we will create new catalysts of growth, boost demand for knowledge workers and skilled labour, raise private and social returns to education and skills upgrading, and a more balanced internal economic structure with a bigger role for domestic demand," he said.

Meanwhile, on the 10th Malaysian Plan, to be launched next year, he said the government plans to promote broad-based investment in human capital and push the private sector to move up the value chain as well as spur innovation and creativity.

"We have identified the domestic financial industry as one of the primary contributors to the growth of our new service economy," he added.

To do so, Ahmad Husni said Malaysia's financial institutions need to expand their geographic market coverage as well as product and service offerings to retain its pole position in Islamic finance.

-- BERNAMA

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