RM90-RM91b allocation in first 2 years of 10MP

THE government will allocate between RM90 billion and RM91 billion for expenditure in the first two years of the 10th Malaysia Plan (10MP), says director-general of the Economic Planning Unit (EPU) of the Prime Minister's Department Datuk Noriyah Ahmad.

"What we announced earlier for the 10MP is more on policy and strategic direction. We are now doing the budgeting and are targeting between RM90-RM91 billion for 2011-2012," she said.

Under the RM230 billion 10MP, she said the budgeting and planning will be more current and relevant through a two-year rolling plan.

All ministries will receive their allocations once in two years.
This is a departure from previous practices where the ministries receive a lump sum allocation for five years.

"We need a new strategy for economic recovery. The economic condition now is not the same as in 2005, where it was better.

"For the 10MP, we have changed strategy, with a two-year rolling plan and we will only allocate resources for this period. Why? Because we see that our projects can be completed within 18-24 months," she told a press conference after officiating at the National Conference: The New Economic Model, Globalisation and the Malaysian Consumer, in Kuala Lumpur yesterday.

Noriyah also disclosed that an allocation will only be given for projects that are ready to take off.

"In the 10MP, we will no longer focus on building construction. What we want is more soft infrastructure, such as funds and research and development.

"For example, to enhance human capital, rather than build training centres which will take a long time, it is better to send the workforce to be trained at the available public and private institutions.

"This will also help to generate business for the private sector," she said.

"As such, we do not need to hire more teachers and trainers and it will also give the private sector an opportunity to expand," she explained.

Earlier, in her speech, Noriyah said among the key challenges of the 10MP is to stimulate private sector investments to grow at 12.8 per cent annually or RM115 billion.

It was reported that the country may not be able to achieve the 6 per cent gross domestic product growth target if the 12.8 per cent growth is not achieved within five years. - Bernama