GOVT MUST PROVIDE PERSUASIVE ARGUMENTS ON "WARISAN MERDEKA" PROJECT

By Mohd Iswandi Kasan Anuar

KUALA LUMPUR, Oct 19 (Bernama) -- The government has been urged to provide more
persuasive arguments on the benefit of the Warisan Merdeka (Independence
Heritage) development, to win over the skeptics and avoid a political backlash,
says the former Deputy Director-General of the Institute of Strategic and
International Studies (ISIS), Dr Zainal Aznam Yusof.

"We are unsure as to exactly how much it would eventually cost. All we know is,
the idea and possible range of cost, is in the billions of ringgit," he told
Bernama in an interview Tuesday.

He also said there are questions regarding the economic viability and impact as
well as overall benefit of this project.

The Warisan Merdeka project, located within the enclave of Stadium Merdeka and
Stadium Negara here, was announced by Prime Minister Najib Razak during the
tabling of the Budget 2011 last Friday.

The proposed integrated development comprising a 100-storey tower, is expected
to be completed by 2020.

According to the Prime Minister, Warisan Merdeka is another landmark to be
developed by Permodalan Nasional Bhd at a total cost of RM5 billion (US$1.607
billion), with the tower expected to be completed by 2015.

"Will it provide returns or is it just purely an iconic project," he asked,
noting that, Malaysia already has the Petronas Twin Towers, which at one stage
was the tallest building in the world.

Zainal said the common man on the street wants to know if the 100-storey Warisan
Merdeka, which will be the tallest in the country, is money well spent.

On other budget proposals, Zainal, who is also advisor to the National Economic
Advisory Council (NEAC), welcomed the incentives to encourage first time house
buyers, especially those among the lower income group.

He is also expecting much more aggressive government intervention in the
property market to curb speculation, but noted, it was not addressed in the
budget.

"A lot of people are now concerned about the asset bubble in the residential
market, particularly in urban areas like Kuala Lumpur, the Klang Valley and
other urban areas.

"It could be putting houses out of the reach of many people," he
highlighted.

Zainal said speculators rather than real investors now mostly generating the
demand.

"The speculators just want to make money out of the genuine effort of people to
own houses and the budget has provided nothing to curb it," he added.

On the proposed private pension fund, Zainal said the idea is good but there is
a need for further details and may take time to materialise.

If there is little government involvement it may spin off into something
Malaysians will be unhappy with as in other countries, he said, adding the good
thing is, it is going to be tax deductible.

Overall, Zainal said the Budget 2011 should be seen as part of efforts by the
government to transform the country's economy for the medium term up to 2015 and
over the long term to 2020.

He said the budget also fits in nicely with the 10th Malaysia Plan and the New
Economic Model.

"The RM212 billion Budget 2011 is fairly kind and modest as the government is
trying to contain the fiscal deficit," he added. (US$1=RM3.10)
-- BERNAMA



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