MALAYSIA TO FOCUS ON NEW SECTORS FOR ECONOMIC TRANSFORMATION

JITRA (Malaysia), July 10 (Bernama) -- As the global economy develops
slowly, the Malaysian government is undertaking a form of economic
transformation by focusing more on new sectors and development of the domestic
economy.

Second Finance Minister Ahmad Husni Hanazlah said new sectors
such as Islamic finance where Malaysia occupies the top spot globally and
services, can support the fall in manufacturing exports.

He said the move to expand domestic investments is the right action towards
the projection for the Malaysian economy to expand positively.

"There are indicators now that the global economy is slowing. A number of
countries are facing financial problems resulting from the global economic
crisis which can impact the export of goods," he said here on Saturday.

According to Ahmad Husni, the decision to enhance the domestic economy and
export services, is the basis for the projection that the country's economy is
on the right track.



He also said the government would continue to monitor the growth of the
global economy although a number of international financial organisations have
expressed optimism that Malaysia would achieve a six per cent growth this year
as projected.

"The government policy to reduce the number of foreign workers so as to not
be too dependent on cheap labour, will not affect the economic transformation,"
he explained.

He highlighted that during the economic crisis last year, more than 21
million tourists visited Malaysia, and this is a reason to export services which
can make it more attractive for more people to come.

He said that the Talent Corporation was established by the government to
bring back 700,000 "high-powered" Malaysians from overseas to spearhead the
change in the manufacturing technology sector to a high technology industry
which had added value.

On the Budget 2011, he said the Prime Minister Mohd Najib
Tun Abdul Razak, had finished having consultations on it on July 6, with 400
delegates from various sectors in attendance.

They included associations, businesssmen, professionals and individuals who
gave their input on three key sectors, namely, macro economics, sectoral and
social, which forms the thrust of the formulation of the budget.

Ahmad Husni said the more than 10 focus groups created had finished meeting
and looking into detail, the issues raised, including domestic investments as
the basis for the country's future economic growth.

However, the ministry was still accepting suggestions from interested
parties which would be looked at closely before being brought to the budget
meeting, he added.

On trade, he said China and India represent markets with potential,
especially for manufactured goods and services.




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