NEM Highlights

March 30, 2010

NEM: Market Friendly Affirmative Action Policy (Highlights)

Prime Minister Najib Abdul Razak today unveiled a raft of economic measures that he said would propel Malaysia to developed nation status by 2020.

Following are some of the highlights of what he announced at INVEST Malaysia 2010:

  • State investor Khazanah to sell 32 percent stake in Pos Malaysia.
  • To list stakes in two Petronas units.
  • Facilitate foreign direct and domestic direct investments in emerging industries/sectors.
  • Remove distortions in regulation and licensing, including replacement of Approved Permit system with a negative list of imports.
  • Reduce direct state participation in the economy.
  • Divest GLCs in industries where the private sector is operating effectively.
  • Strengthen the competitive environment by introducing fair trade legislation.
  • Set up an Equal Opportunity Commission to cover discriminatory and unfair practices.
  • Review remaining entry restrictions in products and services sectors.
  • Phase out price controls and subsidies that distort markets for goods and services.
  • Apply government savings to a wider social safety net for the bottom 40 percent of households, prior to subsidy removal.
  • Have zero tolerance for corruption.
  • Create a transformation fund to assist distressed firms during the reform period.
  • Easing entry and exit of firms as well as high skilled workers.
  • Simplify bankruptcy laws pertaining to companies and individuals to promote a vibrant entrepreneurship.
  • Improve access to specialised skills.
  • Use appropriate pricing, regulatory and strategic policies to manage non-renewable resources sustainably.
  • Develop a comprehensive energy policy.
  • Develop banking capacity to assess credit approvals for green investment using non-collateral based criteria.
  • Liberalise entry of foreign experts specialising in financial analysis of viability of green technology projects.
  • Reduce wastage and avoid cost overrun by better controlling expenditure.
  • Establish open, efficient and transparent government procurement process.
  • Adopt international best practices on fiscal transparency.

9 thoughts on “NEM Highlights

  1. Comment on the substance this time. What do you think about the NEM, New Yorker Bean?

    Reforms are urgently needed in education, economic management and healthcare. Perkasa should be happy that affirmative action will take care of the Malays without handouts, etc.–Din Merican

  2. Some parallels can be drawn between Perkasa and the tea party movement over here. I can just about imagine Perkasa leaders screaming “Do not retreat … but reload”.

  3. EPF has proposed to buy over MRCB ( a listed GLC company ). Does this go in the opposite direction from the NEM ?

  4. Laoshan, you are right. Why engage reverse gear when we want to move forward. Why the government and EPF want to be property developer? What say you Mr. Ozawa?

    “Government of Malaysia and the EPF will form a joint-venture to promote the development of 3,000 acres of land in Sungei Buloh into a new hub for the Klang Valley. This will lead to over RM5 billion of new investments being made that will have an immediate effect on domestic growth, with an enormous potential for the private sector to participate in prominently. ” Najib.

  5. Will the current PM reduce protectionism with respect to the Malaysian car market and risk the wrath of an ex-PM?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.