Gov't rolls out RM100 bil in development projects
Malaysiakini
Nov  3, 2006

The government is rolling out a series of projects worth RM100 billion under a national development plan in efforts to boost the economy.

The expenditure includes 20 "high-impact" projects overseen by the country's education, agriculture and rural development ministries as Malaysia implements its five-year Ninth Malaysia Plan unveiled in March.

Cabinet minister Effendi Norwawi said the projects would be partly funded by the private sector, but that the government would not discount using foreign-currency denominated bonds as well, the Star daily reported.

"The government will seek the best source of funding," Effendi, a minister in the prime minister's department, was quoted as saying.

Minister: Outlook bright

Effendi said Malaysia's economic growth rate would speed up in the second half of this year due to the projects, particularly through increased activity in the slow-growing construction sector.

"The outlook of the second half 2006 is bright. We expect the growth of the third quarter to exceed the overall performance of the second quarter," he said in a statement released late yesterday.

The economy grew by 5.5 percent in the first quarter of 2006 and 5.9 percent in the second quarter. Growth reached 5.2 percent in 2005.

Malaysia in September scaled back its 2006 economic growth forecast to 5.8 percent from 6.0 percent, citing challenges including high oil prices and competition from China and India.