-  During a briefing yesterday, PEMANDU announced 33 new projects for 1H13 with total investments of RM7.04bil, GNI contribution of RM6.76bil and a creation of 25,825 new jobs by year 2020.

-  Since the commencement of ETP in 2010, 182 projects have been announced with investments totalling RM218.34bil, GNI of RM142.86bil and a creation of 434,268 jobs by 2020. Note that 86% orRM25.42bil in committed investments for projects have been realised in 2011 and 2012.

-  The various EPPs implemented in 1H13 are includedin the following NKEAs: (1) Agriculture; (2) Palm Oil & Rubber; (3) Business Services; (4) Communications, Content & Infrastructure; (5) Education; (6) Healthcare; (7) Tourism; and (8) Wholesale & Retail.

-  The ETP is on track to achieve its full year KPI for 2013. As of August 26, 2013, the ETP achieved 66%of overall KPI target for NKEAs and 51% for SRIs. As of 1H13, 57.7% or RM85.7bil of the targeted private investments in 2013 has been committed. Private investment target for 2013 is RM148.4bil.

-  During 1H13, private investments contributed 65.7% to total investment vs. public investments’contribution of 34.3%. By 2020, PEMANDU envisage the bulk of investments, which accounts for 92% of total investments, to be financed by the private sector.

-  The ETP continues to facilitate the private sector’s role in fuelling growth.The economy will continue to ride on ETP’s sustainable growth path while the inclusiveness will ensure a balanced economic development going forward. This is in tandem with the broad-based transformation plan to achieve a high income economic status by 2020.

-  Going forward, the government is expected to unveil fiscal consolidation measures during the national budget announcement. Among the various measures to be introduced could involve subsidy rationalisation plans, implementation of GST and a review of RPGT.

-  Based on the previous guidance, the GST will likely to be between the rate of 4%-5% to replace the current sales and service taxes. Assuming an implementation of GST at 4%-5%, this may add RM6bil-RM10bil to the government’s coffers during the first two years of implementation. Given a GST rate of 7% though, government revenue could potentially rise by RM27bil.

Source: AmeSecurities