Existing companies to invest over RM50 billion, 9 new EPPs to invest RM76 billion this year

Companies in Malaysia are expected to invest RM50.6 billion this year, based on a survey conducted by the Joint Investment Committee, co-chaired by the Ministry of International Trade and Industry and the Performance Management and Delivery Unit (Pemandu).

The survey undertaken in the fourth quarter of last year covered 5,835 local and foreign companies, of which 30% of the respondents had indicated plans to invest a combined RM50.6 million this year.

Prime Minister Datuk Seri Najib Tun Razak who released the data in his address at the Fourth Economic Transformation Programme Update in Kuala Lumpur yesterday, expressed confidence that the country would be able to achieve the RM83 million investment target this year, though aware that some of the projects could be delayed or not realised this year.

In addition, in unveiling the additional nine EPP projects with a total investment commitment of RM2.34 billion, Datuk Seri Najib said these EPP projects are expected to account for some RM76 billion in investments this year, which could add up to a total potential investment of RM127 billion in 2011.

Among the projects are- RG Gas and Chemicals' plan to invest RM1 billion to build an integrated O&G hub in Labuan; -Emery Oleochemicals' investment of RM416.2 million to develop oleo derivatives ie bio-lubricants and green polymer additives and surfactants for household and wellness products; - General Electric and REDtone International's plan to invest RM30 million in a diagnostic services nexus, a teleradiology centre; -Cypark Resources to invest RM94.29 million to develop a 26ha renewable energy park in Nilai Negri Sembilan; -The Northern Corridor Implementation Authority and QAV Technologies to jointly develop a Light Emitting Diode-Solid State Lighting Certification Centre with investment of RM12 million and -Faber Group which will undertake the Energy Performance Management System for government bodies.

In the tourism sector is the Marina Island Pangkor International Resort & Entertainment Extension with investment of RM600 million, while two projects are for the agriculture sector.

The Prime Minister had in January announced 14 EPP projects which together with the latest nine projects will involve a total investment of RM14.74 billion and are expected to create 88,354 new jobs as well as contribute some RM20.1 billion to the Gross National Income.

Meanwhile, Rating Agency Malaysia Chief Economist Dr Yeah Kim Leng said that the pick up in private investments would give a boost to the local economy to grow between 6% and 7% this year.

Malaysian Rating Corp Bhd Chief Economist Nor Zahidi Alias also expects the increase in private investment to be positive for the Malaysian economy.

Adapted from New Straits Times and the Star 9 March 2011