What People Are Saying About The 10MP

Citi analysts Wei Zheng Kit and Monica Ratnaputri wrote in a June 10, 2010 analysis titled, "Highlights of the 10th Malaysia Plan," that the most important factor of the plan is its actual implementation, given missed targets in the past. The plan calls for a reduction in the budget deficit to 2.8% by 2015. However, the government has missed previous five-year targets. Of the MYR230 billion allocated to development spending, 55% will go to the economic sector, which is an increase over previous five-year plans, 30% to the social sector, 10% to security, and 5% to general administration. On the issues of subsidies, the plan calls for a 3% annual reduction in subsidy spending by 2015, with energy prices based on market conditions by 2015.



Citi analyst Yong Yin Ng wrote in a June 10, 2010 analysis titled, "10MP – Economic Reform: Ready, Set …," that the 10th Malaysia Plan will not move markets at least until the implementation stage. However, the plan lays out a commitment to economic and political reform, even if subsidy reform will be cautious as a result of political challenges. Ng writes that Malaysia needs to transition to an economy driven by productivity growth and domestic competitiveness that is led by the private sector. The targeted sectors in the plan are E&E, palm oil, oil & gas, tourism, agriculture and green technology and financial services, with the services sector as a whole pushing growth forward.

Kevin Brown writes in a June 11, 2010, FT blog post that the 10th Malaysia Plan unveiled on June 10 shies away from specific proposals to deal with the issue of subsidies and affirmative action, two benchmark reforms that would indicate Prime Minister Najib's commitment and ability to implement far-reaching reforms. PM Najib will likely face challenges from his own party, the UMNO, if he moves forward on significant reforms to the affirmative action policies.



The Oxford Business Group writes in a June 10, 2010, analysis that the impact of the 10th Malaysia Plan will depend on how well it enhances the role of the private sector while reducing the footprint of the government; protects the more vulnerable segments of society; addresses expensive subsidies; and contributes to the development of human capital.

The 10th Malaysia Plan prioritizes the oil and gas sector as one of the 12 National Key Economic Areas (NKEA) that will drive growth over the next five years, according to a June 11 IHS Global Insight report. The plan calls for focusing on improving oil recovery, transitioning toward more clean energy sources, enhancing energy efficiency and beginning to reduce fuel subsidies.



I don't have anything to say about the 10MP. Its been there on the table, the mantras are nothing new. Let's see some action on the Approved Permits already; why are there still big projects being "given" without proper tendering in recent months; the list goes on...