Tuesday, May 25, 2010

20100525 0937 Malaysian Economic News.

The government is to discuss plans to cut its subsidy bill at a cabinet meeting tomorrow, with cuts likely to be phased in over a period of five years, three government officials said. The proposals presented by the think tank had envisaged subsidy cuts starting in June, with price rises coming every six months over a five-year timeframe. The aim is to reduce bill from food, petrol, electricity and gas subsidies that official figures show had cost RM24.5bn in 2009 (15.3% of total federal government spending). (Financial Daily)

The government does not have a specific timeframe to transform state-owned enterprises or government-linked companies (GLCs) into fully commercial companies in the process of gradual transition. National Economic Advisory Council (NEAC) chairman Tan Sri Amirsham A. Aziz, in stating this, said the transformation of GLCs was however needed for the government to become more focused as the country progressed. (Bernama)

Information from the Population and Housing Census of Malaysia 2010 will shape government policies and meet the country's requirements for good planning to develop the economy. This census project will cost RM200m, an increase of RM2m from the previous census carried out in 2000. The census will increase government consumption under the country's GDP. It estimates about 29m total residences in this census (23.5m in 2000). (Bernama)

The government will restore the visa-free transit facility for nationals from Bangladesh, India, Pakistan and Sri Lanka from 1 July, DPM Tan Sri Muhyiddin Yassin said. The government felt that the facility would benefit the country's tourism industry. (Bernama)

The biotechnology industry is expected to generate RM45bn in income by 2013. Science, Technology and Innovation Minister Datuk Seri Dr Maximus Ongkili said the industry was already well on its way to achieving this target. The GDP growth for 1Q measured 2.2%. They hope to achieve the target of 2.5% by end of this year. This sector needs more than 20,000 knowledge workers by 2014. (NST)

Malaysia and Singapore have agreed to reduce the toll charges for the Second Link to increase the road connectivity between the two countries. The new toll charges will be announced within a month. PM Datuk Seri Najib Tun Razak and Singapore counterpart Lee Hsien Loong also announced that the Joint Ministerial Committee (JMC) on Iskandar Malaysia, tasked to increase the connectivity between the two countries, had agreed on several moves. (Bernama)

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