Highlights of PM's speech at Invest Malaysia 2010 on
Tuesday, March 30


The backbone of Malaysia's long-term policy
agenda will be a new economic model - which will be integrated into the 10th
Malaysia Plan and with a longer-term vision that will be delivered through the
11th Malaysia Plan. These can transform the Malaysian economy to become one with
high incomes and quality growth over the next decade.


Three principles from the NEAC report - firstly, high income, secondly, sustainability and thirdly, inclusiveness.

These three principles will drive Malaysia's
economic progress to become a fully developed nation; a competitive economy
strategically positioned in the regional and global economic landscape,
environmentally sustainable and a quality of life that is all inclusive and
encompassing.


There will be a renewed affirmative action policy in
the New Economic Model, with a focus on raising income levels of all
disadvantaged groups. It will focus on the needs of all our people - those
living in the long houses in Sabah and Sarawak and poor rural households in
Semenanjung Malaysia (Peninsular Malaysia), who often feel disconnected from the
mainstream economic activity. Fishermen. petty traders.and small farmers also
fall under this category .

Malaysia's renewed affirmative action policy
will be built on four principles -- must be market friendly, it must be merit
based, it must be transparent and
it must be needs based.

The eight
Strategic Reform Initiatives will focus on:-

1) Re-energising the
private sector to lead growth;

2) Developing a quality workforce and
reducing dependency on foreign labour;

3) Creating a competitive
domestic economy;

4) Strengthening the public sector;

5) Putting
in place transparent and market friendly affirmative action;
6) Building
knowledge base infrastructure;

7) Enhancing the sources of growth; and

8) Ensuring sustainability of growth.


EPF's investments


The Employees Provident Fund presently dominates local equity and
bond markets with up to 50 percent of daily Bursa volume represented by EPF
related trades, a situation that is not healthy for the market or for the EPF.

EPF will be allowed to invest more assets overseas, both diversifying
its portfolio and creating more room domestically for new participants. EPF
presently has about 6 percent of assets invested offshore and this will increase
significantly.

EPF will also increase its direct investments in the real
economy of Malaysia, as an alternative to market investments - taking positions
in healthcare, commodities, property and other long-term investments that match
EPF's requirements to protect the real rate of return on its assets.


GLCS, Government holding agencies

GLCs and Government
holding agencies pursuing strategic collaborations with private sources of
capital in Malaysia in order to provide prospective investors with exposure to
the government order book and build national competencies.


Divestment of non-core assets

Progress in the area of
divesting non-core assets has seen Khazanah alone has over the course of the
last nine months divested significant stakes in Tenaga Nasional, Malaysia
Airports and PLUS for the purpose of increasing the liquidity of these counters.
But more such progress in this area must be made.

Govt to pursue further
such divestments of non-core and non competitive assets that operate in areas
where new strategic shareholders have the potential to enhance the creation of
value, as compared to them being left within the government stable.

Khazanah has resolved to divest its controlling 32 percent stake in POS
Malaysia through a two-stage strategic divestment process. Khazanah will draw up
a bidding and evaluation process to select a new and entreprenuerial shareholder
to further modernize POS Malaysia.

Petronas has already identified two
sizable subsidiaries with good track records to be listed this year. These
initiatives have the goal to reduce the Government's presence directly or
indirectly in business activities that are best carried out by the private
sector and are a clear signal of our commitment to promoting competition in the
economy, risk taking and long-term economic growth that benefits all Malaysians.



Privatisations

Govt considering privatization measures
related to, Percetakan Nasional Malaysia Berhad, CTRM Aero Composites Sdn Bhd,
Nine Bio Sdn Bhd and Innobio Sdn Bhd with more under consideration.

Land

To promote higher levels of economic investment, expansion and growth,
several parcels of land in Jalan Stonor, Jalan Ampang, Jalan Lidcol, Kuala
Lumpur have been identified to be tendered out and developed by the private
sector. This initiative will be a good kick-off for more outright sale and joint
ventures between the public and private sectors in land development.

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.