20100311 0940 Malaysian Economic News.

The New Economic Model (NEM) will look at high income as well as productivity while providing the flexibility to address a global crisis. Deputy International Trade and Industry Minister, Datuk Mukhriz Tun Mahathir said the country's business strategy could no longer be based on low-cost labour as it was no longer an advantage. “We are trying to push for a new economic strategy based on innovation and creativity. The government will continue to provide incentives,” he said. (Bernama)

The services sector contribution to the country's gross domestic product (GDP) could have been higher than what has been reported due to missing links and figures in the final data compilation, said Malaysian Industrial Development Authority (MIDA) director-general Datuk Jalilah Baba. However, unlike the manufacturing sector, the services industries are more complex and cover diverse range of intangible products and activities that are difficult to encapsulate within a simple definition. Therefore, there are still much more in the services sector statistics compilation awaiting to be tabulated, which MIDA hopes to improve upon on a progressive basis if not in the immediate term, she said. The sector's contributions this year is expected to soar further to 60%, she added. (Bernama, BT)

Prime Minister Datuk Seri Najib Razak believes Malaysia can achieve more than 6.0% economic growth if all quarters work together to increase investments. He said the government would do its best to provide an efficient and business-friendly environment so that the business community could invest more in the country. “For new investments, the government will play our part to help you all the way, look for new opportunities, find new partners and work with our GLCs,” he said. He urged the business community to take advantage of the current situation where all indicators were looking positive, whereby prices of rubber and palm oil were also likely to go up this year and exports had rebounded. (NST)

Germany's continuous flow of investments in hi-tech industries will help realise Malaysia's aspirations to emerge a developed nation in less than 10 years. Malaysia's emergence as an advanced nation will, among others, be thrust upon on highly-skilled human capital, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed. (Bernama)

There has been a strong signal of interest from potential investors from Holland to invest in Malaysia, especially in the services sector, says Datuk Jalilah Baba, Director- General of the Malaysian Industrial Development Authority (MIDA). "The focus in Holland is the services sector as it contributes 80% to the country's gross domestic product (GDP)," she said. (Bernama)

The Ministry of Higher Education (MOHE) has requested the government for an increased allocation of RM1.2bn for its Fundamental Research Grant Scheme (FRGS) under the 10th Malaysia Plan (10MP) from RM550m in the 9MP. The Director of IPT Excellence Planning of the Department of Higher Education, Dr Mohamad Jailani Mohamad Nor said the proposal for the increased allocation would be submitted to the Economic Planning Unit (EPU) by Jun 10. (Bernama)

Deputy Chief Minister and Minister of Agriculture and Food Industry, Datuk Seri Panglima Yahya Hussin has called for the industrialisation of aquaculture in the wake of the declining seafood supply in the country. "With increased seafood demand and declining supplies, there is a need for the industrialisation of aquaculture," he said. (Bernama)