Thursday, 15 May 2014

#Maybank Research sees #ETP pushing Malaysia closer to 2020 goals. #Economy

KUALA LUMPUR: Malaysia is on track to meet its objectives to be a high-income economy by 2020 based on the quantitative aspects such as private investments and gross national income per capita, Maybank Investment Bank Research said.

It said on Wednesday 47 projects with a combined committed investment value of RM8bil were added on in 2013, lifting the total projects to 196 and the total committed investments to RM219bil since the Economic Transformation Programme (ETP) was launched in October 2010.

Since 2010, realised private investments have grown by a compounded 17.8% per annum to RM161bil, to make up 61% of the total realised investments in 2013 (2010: 55%).

Over the same period, GNI per capita grew by a compounded 6.3% p.a. to reach US$10,060 in 2013 (2020 target: US$15,000).

"Our economics team is of the view that the achievements so far point towards an 'on-track' milestone as far as the quantitative aspects of a high-income economy (by 2020) are concerned," it said.

It said the ETP met 103% of its key performance indicator (KPI) targets in 2013 (2012: 118%, 2011: 123%).

Maybank Research said the enabler for the ETP, which was the Strategic Reform Initiatives, met 95% (2012: 93%). The Government Transformation Programme (GTP) achieved 104% (2012: 108%; 2011: 131%).

The ETP, SRI and GTP form a package of reforms/ plans to lead the country towards a high-income economy by 2020.

The research house maintained its overweight call on the construction and oil and gas sectors.

As for the KLCI, its year-end target of 1,940 and the stock views remained unchanged.

The ETP 2013 Annual Report released on Monday, there was been a slight dip in the targets achieved in the previous year.

However, macro-economic indicators such as private investments and GNI per capita are in track with the 2020 objective.

The research house expected infrastructure related construction awards to be sustained.

It also expected upstream oil and gas production to increase and a more diversified portfolio of the downstream sector to advance.

The research house anticipated the government subsidy rationalisation efforts and asset/investment divestments by the government-linked companies (GLCs) to continue.

On the consumer discretionary sub sector and the Goods and Services Tax (GST), the research house remains cautious. However, there may be a pick-up in investments momentum, which will provide job opportunities.

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