MALAYSIAN PM TO ANNOUNCE ADMINISTRATIVE REFORMS TO SUPPORT NEW ECONOMIC MODEL

From Mikhail Raj Abdullah

HONG KONG, March 24 (Bernama) -- Prime Minister Najib Tun Razak
will announce administrative reforms when he introduces the New Economic Model
(NEM), next week, to ensure its success and effectiveness on the Malaysian
economy and the people.

"The emphasis will be on the execution of the NEM in order to achieve the
government's objective of transforming Malaysia into a high-income economy and
to spur deveopment," he told Malaysian reporters here on Wednesday before
returning to Kuala Lumpur after attending the Credit Suisse Asian Investment
Conference.

Najib, who is also Finance Minister, said: "Although the new economic model
is good but if the implementation is not planned well, with the right people in
place, then we will not be able to achieve the desired target."

When asked if the administrative reforms would involve both the
International Trade and Industry and Finance ministeries, he said: "Let's wait
and see next week".

On his visit to Hong Kong and his meeting with foreign fund managers at the
Credit Suisse Asian Investment Conference, Najib said it had attained the
intended objective of "explaining the direction of the new government policy in
bringing about a huge transformtion of the Malaysian economy".

Najib said he obtained valuable feedback from foreign fund managers on the
local bourse where they hoped to see increased listing of strong and bigger
companies with less involvement by the government in government-linked
companies.

The Prime Minister said foreign fund managers were also very keen to invest
in
Malaysia but felt that there were constraints as there were very few listed
large companies on Bursa Malaysia for foreign fund managers to invest in.

He said foreign fund managers were also keen on the NEM as they felt that it
was the best approach to show the direction of the economy, going forward and
the emphasis placed on certain industries.

Besides, "we will also be able to explain that, in whatever we do, the
government will take into consideration its impact on the stock market and the
people.

"For example, if the government wants to introduce the goods and services
tax
or even reduce subsidies, all this must be explained to the people first in
order for them to receive the changes being made in the interest of the
economy," he added.

However, in the effort to increase listings on Bursa Malaysia, Najib said
the
question of "good governance" cannot be compromised.

"However, we are speeding up companies which have a listing potential," he
added.

He also said his discussions with foreign fund managers revealed that there
were some lingering misinformation about what has happened in the past.

"Although, we have made the reforms, they think that the same situation
still
exists in Malaysia," Najib said.

He said this was evident from media reports in Hong Kong as reforms
instituted
by the Malaysian government were not reported and the message never reached fund
managers.

As such, we had this meeting with foreign fund managers at the Credit Suisse
Asian Institute conference to convey what we are doing.

"Its not suffice to just make one or two media statements but meet them
face-to-face and address their concerns, fears and misconception," said Najib.

He also said Malaysia must gear up efforts to attract foreign investments
which was expected to increase after the New Economic Model is launched.

"We must establish ties with big companies like Credit Suisse which has
extensive global networking with investment specialists," Najib added.

He also said Credit Suisse was the number one banking and financial services
group with a very good reputation in Asia (and) therefore "we should continue
to network with them".

Asked on his meeting Tuesday with Donald Tsang, the Chief Executive of Hong
Kong SAR, Najib said the former requested to see him as they were personal
friends.

He said they exchanged views on the global economic situation, including the
impact of the U.S. healthcare plan on the U.S. federal budget deficit, and
if it would affect the global economy.

Najib and his wife, Rosmah Mansor, left for home at 10.30am on
Wednesday from the Hong Kong International Airport.

-- BERNAMA