Money & You

Monday, July 27, 2009

Malaysia PM unveils measures to boost investment



Source: Razak Ahmad (Reuters)

KUALA LUMPUR (Reuters) - Malaysian premier Najib Razak announced on Monday more populist measures aimed at boosting investment and countering opposition gains, including a promise to slash street crime.

Najib said the government would cut crime by 20 percent, tackle public service graft, expedite rural development, improve public transport and widen access to quality educational institutes, the state news agency, Bernama, reported.

"All these are being done to ensure that in the final analysis it is the people who will derive the benefits," Bernama quoted Najib as saying.

The prime minister set a deadline of 2012 to reach these targets, a year before his Southeast Asian country must hold its next polls.

The opposition won control of five of Malaysia's 13 state assemblies and denied the ruling National Front coalition its once iron clad two-thirds majority in parliament in an unprecedented electoral performance last year.

More than 10.9 billion ringgit ($3.10 billion) would be allocated for the measures, although Najib did not specify the source of funds for the spending.

To curb street crime, Najib said police would get additional equipment while the government would also consider setting up a special tribunal or court to speed up prosecution.

They are the latest steps to help Malaysia become more internationally competitive and win back investment, which Najib has announced since taking over from Abdullah Ahmad Badawi in April

Najib's approval ratings have surged recently to 65 percent from 45 percent, according to a survey by independent polling outfit Merdeka Center.

But analysts said his popularity could take a hit over public anger about the death of an ethnic Chinese from the opposition camp who died under mysterious circumstances after being questioned and released by anti-graft officials.

Political discontent has been brewing following a botched government takeover of an opposition state in February and the coming trial of opposition leader Anwar Ibrahim.

Abdullah led the ruling National Front to record wins in the 2004 general elections, but was forced to retire early after voter grouses including unhappiness over failed promises to fight graft led the government to its worst defeat in polls last year.

Veteran opposition leader Lim Kit Siang of the Democratic Action Party, one of the three parties in the opposition People's Alliance, said Najib's promises to cut crime and graft were not new.

"Again, we are hearing promises which will end up just being rhetoric because the question is whether the government has the political will to really deliver," said Lim.

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