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159713
Wed, 02/09/2011 - 12:59
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https://oananews.org//node/159713
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Malaysian Investment Development Authority (MIDA) has outlined New Economic Model N
LABUAN (Malaysia), Feb 9 (Bernama) -- The Malaysian Investment Development Authority (MIDA) has outlined several key issues that will be the main focus of the financial sector under the New Economic Model (NEM).
They are facilitating domestic demand; strengthening the capital market; promoting financing for innovation; assisting SMEs; and helping project and industrial financing, said its chairman Dr Sulaiman Mahbob.
The financial sector's role should also be on the stability of the financial system, access to capital, facilitating innovation and project financing, he said when delivering a talk on Economic and Financial Developments in the
Region: Opportunities and Challenges for Labuan International Business and Financial Centre (IBFC) at a leading hotel here Wednesday organised by the Labuan Financial Services Authority (Labuan FSA).
Dr Sulaiman also stressed on the eight enablers or strategic reform
initiatives of the Economic Transformation Programme (ETP) which includes re-energising the private sector; developing quality workforce; competitive domestic economy; strengthening the public sector; transparent and market-friendly affirmative
action; building knowledge-based infrastructures; enhancing sources of growth; and ensuring growth sustainability.
He also said there are a number of factors contributing to the sluggish economic growth, which have been analysed as the most critical -- absence of private investment; difficulties in doing business; low value-added industries;
low-skilled jobs and low wages; stagnating productivity growth; insufficient innovation and creativity; and lack of appropriately skilled human capital.
Dr Sulaiman said new approaches to national economic development was
growth through productivity, private sector-led growth, localised autonomy in decision-making, cluster-and corridor-based economic activities, favour technologically capable industries and firms, Asian and Middle East orientation and retain and attract skilled professionals.
He said finance and insurance services would grow at 8.3 per cent per annum during 2011 to 2015, contributing 12.7 per cent to the Gross Domestic Product
(GDP) (11.7 per cent in 2009).
Capital market would be strengthened (grew 10.2 per cent during
2006-2009) involving RM1.7 trillion. (US$1=RM3.03)
Malaysian Sukuk market (Islamic bond market) accounted for 62 per cent of the Global Sukuk market.
He said that a new financial sector blueprint would also be formulated to drive the next phase of economic development.
“The focus will be promoting financial inclusion, equitable financing excess to all segments, greater leveraging of technology and innovation, enhancing financing infrastructure including capacity building and implementing safeguards to preserve financial stability.
"The insurance industry will be further consolidated and rationalised,” he
said.
To enhance Malaysia's position in Islamic Finance, Dr Sulaiman said there
was
a need to strengthen the Malaysian International Islamic Financial Centre
(MIFC), foster greater linkages with international bodies and streamline R&D
development to enhance Malaysia’s attractiveness as a preferred centre for
Islamic financial education research, training and product innovation.
"Developing the Capital Market Master Plan 2 with strategic initiatives to
expand the role of capital market in supporting the transition to high-income
and K-economy. This will include new financing alternatives and growth of the
capital market industries such as fund management, venture capital and private
equity.”
Dr Sulaiman said the RM20 billion Facilitation Fund would be established
to facilitate private sector investment in projects with high strategic value to
the nation and multiplier effects.
The fund will be designed to bridge the viability gap for private investment
in priority areas such as infrastructures, education, tourism and health
projects.
Projects currently under consideration include the Senai Hi-Tech Park in
Iskandar Malaysia and raw water supply for industrial complex in Tanjong
Langsat, both in Johor.
He said research and development and commercialisation and a Mudharabah
Innovation Fund (MIF) with a RM500 million allocation, would also be introduced
to provide risk capital to government-backed venture companies.
He said the MIF would offer enhanced risk return profile to investors, and
thus attract greater private risk capital to co-invest, and gradually reduce
dependence on public funds.
To bridge the gap between inventions and commercialisation of
high-technology products, Dr Sulaiman said the government would establish a
RM150 million Business Growth Fund.
The fund would focus on supporting companies commercialising public sector
research results and would provide hybrid grant-equity funding.
"The goal is to support companies until they can generate sufficient
commercial value to attract venture capital funding and financing from other
institutions,” he added.
They are facilitating domestic demand; strengthening the capital market; promoting financing for innovation; assisting SMEs; and helping project and industrial financing, said its chairman Dr Sulaiman Mahbob.
The financial sector's role should also be on the stability of the financial system, access to capital, facilitating innovation and project financing, he said when delivering a talk on Economic and Financial Developments in the
Region: Opportunities and Challenges for Labuan International Business and Financial Centre (IBFC) at a leading hotel here Wednesday organised by the Labuan Financial Services Authority (Labuan FSA).
Dr Sulaiman also stressed on the eight enablers or strategic reform
initiatives of the Economic Transformation Programme (ETP) which includes re-energising the private sector; developing quality workforce; competitive domestic economy; strengthening the public sector; transparent and market-friendly affirmative
action; building knowledge-based infrastructures; enhancing sources of growth; and ensuring growth sustainability.
He also said there are a number of factors contributing to the sluggish economic growth, which have been analysed as the most critical -- absence of private investment; difficulties in doing business; low value-added industries;
low-skilled jobs and low wages; stagnating productivity growth; insufficient innovation and creativity; and lack of appropriately skilled human capital.
Dr Sulaiman said new approaches to national economic development was
growth through productivity, private sector-led growth, localised autonomy in decision-making, cluster-and corridor-based economic activities, favour technologically capable industries and firms, Asian and Middle East orientation and retain and attract skilled professionals.
He said finance and insurance services would grow at 8.3 per cent per annum during 2011 to 2015, contributing 12.7 per cent to the Gross Domestic Product
(GDP) (11.7 per cent in 2009).
Capital market would be strengthened (grew 10.2 per cent during
2006-2009) involving RM1.7 trillion. (US$1=RM3.03)
Malaysian Sukuk market (Islamic bond market) accounted for 62 per cent of the Global Sukuk market.
He said that a new financial sector blueprint would also be formulated to drive the next phase of economic development.
“The focus will be promoting financial inclusion, equitable financing excess to all segments, greater leveraging of technology and innovation, enhancing financing infrastructure including capacity building and implementing safeguards to preserve financial stability.
"The insurance industry will be further consolidated and rationalised,” he
said.
To enhance Malaysia's position in Islamic Finance, Dr Sulaiman said there
was
a need to strengthen the Malaysian International Islamic Financial Centre
(MIFC), foster greater linkages with international bodies and streamline R&D
development to enhance Malaysia’s attractiveness as a preferred centre for
Islamic financial education research, training and product innovation.
"Developing the Capital Market Master Plan 2 with strategic initiatives to
expand the role of capital market in supporting the transition to high-income
and K-economy. This will include new financing alternatives and growth of the
capital market industries such as fund management, venture capital and private
equity.”
Dr Sulaiman said the RM20 billion Facilitation Fund would be established
to facilitate private sector investment in projects with high strategic value to
the nation and multiplier effects.
The fund will be designed to bridge the viability gap for private investment
in priority areas such as infrastructures, education, tourism and health
projects.
Projects currently under consideration include the Senai Hi-Tech Park in
Iskandar Malaysia and raw water supply for industrial complex in Tanjong
Langsat, both in Johor.
He said research and development and commercialisation and a Mudharabah
Innovation Fund (MIF) with a RM500 million allocation, would also be introduced
to provide risk capital to government-backed venture companies.
He said the MIF would offer enhanced risk return profile to investors, and
thus attract greater private risk capital to co-invest, and gradually reduce
dependence on public funds.
To bridge the gap between inventions and commercialisation of
high-technology products, Dr Sulaiman said the government would establish a
RM150 million Business Growth Fund.
The fund would focus on supporting companies commercialising public sector
research results and would provide hybrid grant-equity funding.
"The goal is to support companies until they can generate sufficient
commercial value to attract venture capital funding and financing from other
institutions,” he added.
