20100415 1131 Malaysian Economic News.

RM2.46bn allocation has been set aside under the Public Infrastructure Maintenance (PIA) programme for Class F bumiputera contractors for 5 years, the Dewan Rakyat was told. Deputy Finance Minister Datuk Chor Chee Heung added that for implementation of projects under the Basic Infrastructure (PIAS) programme, an allocation of RM2.972bn has been set aside for 4 years beginning 2006. (Bernama)

The Malaysia Services Exhibition (MSE) 2010 kicked off on a positive note with US$180m worth of projects having been secured on the first day of the event on 13 Apr. Malaysia External Trade Development Corporation CEO Datuk Noharuddin Nordin said the projects encompassed construction of biogas plants, solid waste management and education-related initiatives.

• These projects are located in Saudi Arabia, Sudan, Lebanon and Syria. He added that potential projects worth US$1.6bn had also been identified (vs. RM8.5bn in 2009). (Bernama)

The government gives equal importance to both domestic and foreign direct investments (FDIs), says International Trade and Industry Deputy Minister Datuk Jacob Dungau Sagan. Investors are offered incentives like tax holidays, investment allowances and duty exemptions for raw materials.

• He also said the ministry would provide incentives for companies that used high technology in their operations, produced value-added products, are research and development-driven and paid high salary to employees. (Bernama)

Higher Education Deputy Minister Dr Hou Kok Chung said the ministry aimed to enhance research and development (R&D) and innovation at the higher institutions of learning so as to put Malaysia at a higher level in the field. In line with this, the ministry aims to achieve the ratio of 35 researchers, scientists and engineers (RSE) to every 10,000 workforce to boost research and innovation. At the moment, the ratio was 30:10,000, he said. (Bernama)

The Veterinary Services Department has licensed 8 companies to import a total of 1,600 tonnes of frozen pork from foreign abattoirs. The move was to stabilise the price of pork in local market. Its director-general Datuk Dr. Abdul Aziz Jamaluddin assured that there would be minimal increase in the price of the meat. (The Star)

The Asian Development Bank (ADB) has projected the Malaysian economy to rebound to 5.3% growth this year, underpinned by expansion in exports and strong regional demand led by China. However, it expects growth to slip to 5.0% in 2011 as economic output may struggle to match the expected strong numbers for 2010.

• Inflation in Malaysia is expected to move up to 2.4% in 2010 and 3.0% in 2011 on the back of higher domestic demand, a rise in global commodity prices and a rise in some administered prices. (BT)