20100531 1040 Malaysian Economic News.

Malaysians must bite the bullet and wean off subisidies to save the government RM103bn in five years to reduce the nation's deficit and debt, said Datuk Seri Idris Jala, Minister in the Prime Minister's Department. He said the government would focus on big ticket items such as fuel, electricity and toll to achieve the savings but it would continue to subsidise the poor and disadvantaged. Studies by Bank Negara have shown that inflation will rise to 4.0% (2011-2012) and 3.0% post 2013. (Bernama)

The proposal made by the Subsidy Rationalisation Lab (SRL) to increase the charge for outpatient treatment at public clinics and hospitals from RM1 to RM3 is important to improve the quality of health facilities in the country, said Health Minister Datuk Seri Liow Tiong Lai. The SRL had also proposed that the cost for in-patient treatment be doubled to RM160 for Class One wards, RM40 (Class Two) and RM6 (Class Three).

• Those whose household income is under RM2,160 or categorised under the Fees Act will still enjoy fee exemption. 
• It also proposed that from 2013, patients pay a percentage of their in-patient cost instead of the current flat rate, and from 2015, patients are to pay a percentage of their outpatient treatment and medication. (Bernama)

The rural and regional development ministry will establish a special laboratory to plan and outline strategies to strengthen the rural economy. The laboratory -- to be placed under the ministry's National Key Result Area and New Economic Model -- would see the participation of its various agencies to help generate the economy of the target group. (Bernama)

Malaysia is targeting at least RM40bn worth of investments this year from the RM32.6bn approved in 2009, says Minister of International Trade and Industry Datuk Seri Mustapa Mohamed. The 10th Malaysia Plan would emphasise on greater efforts to attract more private investments as they would be a major engine to drive the country's economic growth. (Bernama)

Local institutions should explore the possibility of establishing partnerships and joint ventures with globally-renowned asset management companies to explore the potential in that segment. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the potential in that segment can be seen through the combined wealth of the Asia Pacific and the high net worth of individuals in the Middle East, which is estimated to grow at an annual rate of 8.8% and 15.6% respectively until 2018. It’s faster than the global average of 7.1%. (Bernama)