Posts tagged ETP
There has been a ‘wave’ of foreign direct investment (FDI) into Malaysia this year, totaling RM31.7 billion (US$10.6 billion) to the end of July 2011. More than half of this has flowed to the manufacturing sector and the top sources are Japan, Singapore, the Netherlands and Taiwan.
Malaysia’s Minister of International Trade and Industry, Mustapa Mohamed, announced the figures and said government initiatives such as the Economic Transformation Programme (ETP) had attracted international interest. Domestic investment had also improved, with RM4.3 billion ($1.44 billion) also going to manufacturing projects.
Business Times reports a breakdown of manufacturing investments shows RM6.5 billion ($2.2 billion) went to electronics and electrical products, RM2.4 billion ($804 million) to basic metal products, RM1.7 billion ($570 million) to chemicals and chemical products, and RM1.1 billion ($369 million) to food manufacturing.
Mustapa also said the figures reflect a shift towards high-value-added, more capital intensive (investment per employee) industries as Malaysia became less competitive at the lower-pay end against countries like China and Vietnam. He promised more new opportunities and growth areas as the ETP chases its 2020 goal of RM1.2 trillion ($40.23 billion), 92% of which the government wants to come from the private sector.
Total investment in Malaysian projects, including both foreign and domestic, was RM47.2 billion ($15.8 billion) in 2010.
source & article: Business Times
The Malaysian government is embarking on a rationalization of its GLCs (government-linked companies), and has identified 33 it plans to sell off, list, or partly-sell. At least 21 of those firms will see complete privatization by the end of 2012, as the government continues to review its role in Malaysian business.
The government said it doesn’t want a ‘fire sale’ of its companies and will ensure it receives ‘maximum value’ with each sale. It has not revealed exactly which companies it plans to divest, nor is it announcing how much it plans to earn from the rationalization. It has also identified four major areas which will still require government involvement in future: areas of business involving national security (including rice production); those with long gestation periods (like nanotechnology); vital infrastructure and transport projects; and those designed to increase Malaysia’s Gross National Income (such as the economic corridor developments).
According to The Star, the Malaysian government controls such major companies as Petronas, Felda, KTMB and state-level companies, while listed ones include Affin Holdings Bhd, Axiata Group Bhd, BIMB Holdings Bhd,Chemical Co of Malaysia Bhd, Malaysia Airline System Bhd, Malayan Banking Bhd, Tenaga Nasional Bhd, the UEM Group, TH Plantations Bhd and Sime Darby Bhd. The government also operates major investment companies like Kumpulan Wang Simpanan Pekerja (EPF), Khazanah Nasional Bhd,Permodalan Nasional Bhd (PNB), Lembaga Tabung Haji (LTH), Kumpulan Wang Persaraan (KWAP) and Lembaga Tabung Angkatan Tentera (LTAT).
The plan is another Strategic Reform Initiative under the government’s Economic Transformation Programme (ETP). Industry representatives were generally positive on the announcement, saying it would increase liquidity and attract larger investors to Malaysia.
source & article: The Star Business
Malaysia yesterday announced 15 initiatives, including nine new projects and seven recaps, as part of its Economic Transformation Programme (ETP). According to Prime Minister Najib Razak, the ETP is already bearing fruit despite running for only a short time.
Yesterday’s announcement was the sixth regular update of the ETP, and sees the programme reach 50% (or 65) of its 131 ‘Entry Point Projects’ launched. The 15 new initiatives promise to bring in RM2.77 billion (US$913.8 million) in investment, add RM66.31 billion ($21.87 billion) to Malaysia’s Gross National Income and create 36,595 new jobs by the target year of 2020.
The initiatives (with their national key economic areas) are: (more…)
Aircraft maintenance, repair and overhaul (MRO) is earmarked as a Malaysian growth industry and has full government support under the Economic Transformation Programme (ETP). To achieve its stated vision of becoming RM193.3 billion (US$65 billion) industry by 2020 and making Malaysia a regional MRO hub, however, the industry needs to make big leaps in policy & procedure improvement, availability of skills, and build a spare parts infrastructure.
MAS Aerospace Engineering (MAE), a division of national carrier Malaysia Airlines (MAS), is the company best positioned to achieve the goal and seems to have a good understanding of improvement points. The company made RM2 billion ($663.8 million) in revenue in 2010, 40% from its parent company and 60% through third-party and joint venture services. It is the third-largest airframe MRO company in the world, and says 75% of the world’s top airlines are on its client list.
Business TImes reports MAE is currently in talks with potential joint venture partners in China, and recently opened a facility with partner GMR Group in Hyderabad, India, its first outside Malaysia. Asia-Pacific, China and India accounted for 23% of the global MRO market, or RM29.6 billion ($9.8 billion), the company said.
On the homefront, MAE said that to properly develop MRO leadership, Malaysia needed more licensed aviation engineers and more training centers to produce the engineering skills required. There is also a feeling among the country’s top aviation schools that aviation engineering isn’t being promoted effectively enough as a vocation, and that the industry needed greater public awareness of its economic importance before it could develop and keep up with increasing speed and complexity.
source & article: Business Times
More good news of new Japanese investments for Malaysia as Prime Minister Najib Razak completed a short but high-level tour last week. Japanese firms have reportedly confirmed a commitment to RM3.8 billion (US$1.26 billion) in new investments between now and 2012, with another RM5.22 billion ($1.72 billion) to follow from 2013-15.
Key targets for investment are industries specializing in electrical and electronic goods, biomass, metallics and substrates used in the manufacture of hard drives. The total includes Tokuyama Corporation’s RM3.7 billion ($1.22 billion) investment in a polysilicon project in Bintulu, Sarawak state. Polysilicon is a vital ingredient in making electronics and solar photovoltaic (PV) cells.
During the tour, Najib met with Japanese Foreign Minister Takeaki Matsumoto, held discussions with representatives of the Japan-Malaysia Economic Association (Jameca) and delivered the keynote address at the 17th Nikkei International Conference.
Matsumoto apparently asked Najib to consider Japanese firms for major Malaysian infrastructure projects arising from the Economic Transformation Programme (ETP), such as the proposed Mass Rapid Transport system. He also expressed support for the new Malaysia-Japan International Institute of Technology, due to begin in September, and promised a special loan from his government to guarantee its success.
For its part, Malaysia has lifted a travel advisory it issued for its citizens going to Japan after the Fukushima nuclear incidents, and offered its expertise as an intermediary between Japanese firms seeking foreign investments of their own in lucrative Middle East markets.
source & article: Business Times
Malaysian Prime Minister Najib Razak yesterday announced 12 new projects and other developments under his government’s Economic Transformation Programme (ETP), designed to spur further foreign investment and confidence in Malaysia’s development and increase the country’s Gross National Income (GNI).
Many of the projects are based around technology and electronic communications, but also cover manufacturing, retail, tourism, energy and Islamic finance. At a glance, the new projects and initiatives are:
(ringgit/dollar conversion is RM3.02 = US$1)
- Appliance maker Pensonic Holdings Sdn Bhd will invest RM250 million by 2020 in an initiative to establish a manufacturing and international distribution hub, exporting home appliances to Southeast Asia and the Middle East, and adding RM500 million in GNI and creating 850 jobs;
- Germany’s Infineon Technologies Sdn Bhd will invest RM500 million in 2011 in its Melaka manufacturing facility producing power semiconductors, adding production and R&D capacity, adding RM814 million to GNI and creating 350 jobs;
Malaysian Prime Minister Najib Razak today gave a 100th day progress report on the country’s Economic Transformation Programme (ETP), announcing 19 new ‘Entry Point Projects’ which will contribute RM67 billion (US$21.8 billion) in investment, RM36 billion in Gross National Income and 35,000 new jobs.
Big-hitting highlights were a number of major oil & gas infrastructure projects and the introduction of a group to study the potential of nuclear energy in Malaysia. The projects also help fulfill Malaysia’s ambitions to become a regional data and technology hub, a center for medical research and electronics production, and a magnet for students and tourists. The ETP also seeks to bring Malaysian talent back to the country from overseas to fill the new roles, and transform mass transit infrastructure in the Kuala Lumpur/Klang Valley area.
A full list of new projects is after the jump:
Singapore has been playing a big role in Malaysia’s recent foreign investment spike. As of September 2010, there are 75 approved Singapore-backed projects worth a total of US$1.134 billion.
Malaysian Minister of International Trade & Industry, Mustapa Mohamed and Minister Idris Jala spoke to about 400 corporate leaders at the Forbes Asia breakfast meeting, in partnership with the Singapore Business Federation (SBF). Both the ministers and SBF chairman Tony Chew drew attention to the immediate cross-border benefits of Malaysia’s Economic Transformation Programme (ETP), and reassured investors that the Malaysian government remained fully committed to liberalization.
Under the ETP, restrictions on advertising for international recruits and 10 year position term limits have been repealed, and passport/visa processes have been streamlined for workers on both sides of the border.
source & article: pemandu.gov.my
The Malaysian government today announced progress in nine projects related to its Economic Transformation Programme (ETP), designed to propel Malaysia into full developed-nation status by 2020.
Among today’s progress reports were updates on initiatives to develop Malaysia’s oil and gas infrastructure, construction of technology parks to further knowledge and R&D, new hotels and training programs for hospitality workers, and a program to advance the business tourism industry. A large majority of funding for ETP projects is coming from the private sector.
In implementing the ETP, the Malaysian government has identified 131 ‘Entry Point Projects’ (EPPs) under 12 ‘National Key Economic Areas’ (NKEAs). Projects falling within these categories will receive special treatment and benefits, often in the form of tax relief, reduction in export duties and investment assistance.
source & article: pemandu.gov.my
Malaysia’s healthcare sector become a ‘private sector driven engine for economic growth’ under the Economic Transformation Programme (ETP). The government aims to change the perception of healthcare from a wealth-consuming public service by exploring other facets of the industry, from pharmaceuticals and medical devices to more advanced innovations in services and research. One example is appealing further to health travelers from abroad, usually citizens of wealthier countries seeking quality healthcare at a lower price.
The ETP wants healthcare to generate an incremental Gross National Income of RM35.3 billion (US$11.4 billion) in the decade to 2020, and will divide projects into ‘quick wins’ for income generation in the immediate future and longer term ‘bets’ on future opportunities. The former consists of pharmaceutical research, insurance and hospital beds, while longer term proposals aim to develop Malaysia as a medical hub with a ‘health metropolis’ at Universiti Malaya and a ‘diagnostic service nexus’ to facilitate international outsourcing through telemedicine (eg; remote surgery where surgeons are not physically in the same place as the patient).
The government will establish a Health Industry Development Corporation to achieve its goals, estimating RM23.3 billion ($7.53 billion) is needed from 2011-20. Only 1% of this will come from the government, with the other 99% intended to come from private sector sources.
source & full article: Business Times