ID :
237414
Tue, 04/24/2012 - 14:01
Auther :
Shortlink :
https://www.oananews.org//node/237414
The shortlink copeid
Malaysia Can Raise Funding For ETP's Mega Projects, Says Zeti
KUALA LUMPUR, April 24 (Bernama) -- Malaysia's financial system can raise
the funds for mega projects under the Economic Transformation Programme (ETP),
such as the multi-billion My Rapid Transit (MRT), said Governor of Bank Negara
Malaysia (central bank) Dr Zeti Akhtar Aziz.
She said innovative financing, such as the long-term Islamic bonds to be
raised by the government for the MRT project, was one of the ways to fund these
projects.
"Massive funding is needed for the construction of the MRT which will take
four to five years. We were invited to give our views on how it could be
financed.
"We can have innovative financing," she said, when asked on Malaysia's
funding capability for the ETP mega projects during the question-and-answer
session at the Premier Luncheon Series by the British Malaysian Chamber of
Commerce here Tuesday.
Zeti said the RM30 billion Islamic bonds to be raised by the government to
fund the MRT has long-term maturity and the market could absorb the issuance.
Accoding to reports, the bonds, with a tenure of up to 65 years, will be
finalised over the next few months.
"However, all the projects must be implemented on a staggered basis and not
happen at the same time. The MRT needs four to five years. These projects have
to be managed properly so that they would not cause economic dislocation.
"In terms of talent supply, resources and liquidity, if managed very well,
we have ample liquidity to finance these projects," she said.
Zeti said, however, these projects must be carefully assessed and continued
to be presented to the Economic Council meetings in order to avoid cost overrun.
"We cannot have leakages and cost in excess. If these projects are managed
carefully, there are tremendous potentials to be realised," she said.
(US$1=RM3.06)
-- BERNAMA