BUDGET 2011 BUSINESS-AND PEOPLE-FRIENDLY BUDGET, SAYS MINISTER

By Farazira Amira Yusof

KUALA LUMPUR, Oct 19 (Bernama) -- Budget 2011 is a business-friendly budget that
will improve investment climate and spur private sector investments, said
International Trade and Industry Minister Mustapa Mohamed.

The measures introduced served to facilitate private sector investments in a
cross-section of sectors from manufacturing to creative industry, services,
agriculture, construction, tourism and renewable energy, he said.

He said the government had revised the growth rate to seven per cent this year,
fuelled by expansion of the manufacturing sector to 10.8 per cent, services 6.5
per cent and construction 4.9 per cent.

"Going forward, we will be working very hard to achieve six per cent growth next
year. My ministry will work to promote private investments expected to expand by
10.2 per cent and exports 6.7 per cent," he told reporters after attending his
ministry's monthly assembly Tuesday.

Mustapa said the manufacturing sector would continue to spearhead growth,
expanding by 6.7 per cent and services sector 5.3 per cent.

"We will achieve this through more targeted exports and investment
promotions, more hand-holding as well as more trade and investment facilitation at
bilateral and regional levels," he said.

Mustapa said the budget had balanced benefits not only for the business
community but also for an average citizen.

"Indeed, it is a people-friendly budget," he said.

Some of the benefits for the people are toll rates would not be raised for five
years on four highways owned by PLUS Expressways Bhd; higher allocation for
early education, senior citizens and child care; maternity leave for civil
servants increased to 90 days from 60 days previously and reduced stamp duty and
100 per cent financing for first-time housebuyers, he said.

Special allowance would also be given to civil servants with school-going
children, excise tax exemption for purchase of vehicles by the disabled and
RM6.9 billion (US$2.218 billion) for basic infrastructure development for rural
population. (US$1=RM3.10)
-- BERNAMA