MSIAN GOVT TO SET UP US$6 BLN FACILITATION FUND UNDER 10MP

KUALA LUMPUR, June 10 (Bernama) -- The Malaysian government will set up a
RM20 billion (US$6.06 billion) Facilitation Fund under the 10th Malaysia Plan
(10MP) to drive private investments in nationally strategic areas.

The government will provide infrastructure and assistance such as through
grants or offtake agreements as a tipping point for viability.

"Such support will be considered for private sector projects, which offer
high economic spinoffs and accelerate the transformation to a high-income
economy," says the Economic Planning Unit (EPU) in the Prime Minister's
Department in the 10MP Report released here Thursday.

Prime Minister Najib Razak tabled the plan in Parliament Thursday.

During the new economic term, EPU said the government will also undertake a
fresh wave of privatisation.

It said the emphasis will be towards forging a more equitable sharing of
risks and returns with the private sector.

"This includes undertaking competitive bidding for future toll highways and
power plants," the unit said.

According to EPU, a public-private partnership (PPP) approach will be
undertaken to drive the developments of strategic industry clusters such as the
development of industrial parks and incubators.

It said the government will also co-invest with the private sector,
particularly in high growth and strategic sectors, through government fund
agencies such as Malaysian Venture Capital Management Bhd (MAVCAP), Malaysian
Technology Development Corporation (MTDC) and Ekuiti Nasional Bhd (EKUINAS).

It would also encourage greater collaboration particularly between
government-linked companies (GLCs) and the private sector to pursue overseas
opportunities.

Such collaboration will also be encouraged in pioneering new growth areas
and markets, where risks are higher and the gestation period is longer.
-- BERNAMA


Attachments: