FOUR CHALLENGES AHEAD FOR FINANCE MINISTRY TO PUSH UP ECONOMY

PUTRAJAYA, July 14 (Bernama) -- Malaysian Prime Minister Najib Tun Razak
Wednesday underlined four big challenges the Finance Ministry would have to
clear to push forward the country's economy to high income status.

The challenges would be on how to achieve the targets of the New Economic
Model, managing the macro targets, dealing with structural problems in the
economy, and inculcating positive values in the management of the country's
finance.

Najib, who is also Finance Minister, said to ensure the success of the NEM,
the country would have to receive investments worth RM115 billion (US$1=RM3.18)
a year which will ensure an economic growth rate of six per cent throughout the
five-year term of the 10th Malaysia Plan.

"Our responsibility is not in monitoring alone but taking very proactive
action to stimulate all the other parties as well as creating an investment
climate that is competitive at global level.

"At the same time, we need to ensure that the people have a sensitive and
caring government that will continue to look into their welfare," he said.

Najib said this during his speech at the Treasury's excellence service award
ceremony here Wednesday.

The prime minister said the Finance Ministry should also manage the
country's macro targets without neglecting the hopes of the people.

"We need to achieve our goal of reducing the country's deficit from seven
per cent to 5.6 per cent of the Gross Domestic Product (GDP) but we are also
facing the demands of the people who want more allocation through the ministry.

"This is a challenge -- managing the deficit and fulfilling the hopes of the
people at the same time," he said.

Another challenge to overcome is the need to manage the economic structural
problems in the country's economy.

These problems, among others, involve the question of how the country could
rationalise subsidy without disrupting and overburdening the people.

"It also covers on how we can stabilise our revenue base. Our revenue base
is not very broadbased. We are aware of this," he said.

The prime minister also said the Finance Ministry would have to instill
values that would contribute towards strengthening the country's finances.

"These values include spending in a prudent manner, ensuring that our
procurement system is more competitive and transparent, avoiding wastage at
every level of administration," he said.

Najib also said Malaysia managed to ride through the global economic crisis,
expanding more steadily than several other countries.

"We faced a reasonable unemployment rate while the United States had to face
an unemployment rate that went past 10 per cent."

Indeed, several states in the US, the rate of unemployment went above 15 per
atus.

-–BERNAMA




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