ID :
25549
Mon, 10/20/2008 - 13:01
Auther :
Shortlink :
https://www.oananews.org//node/25549
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M'SIA PROVIDES RM5 BIL IN ADDITIONAL FUNDS TO INVEST IN UNDERVALUED STOCKS
KUALA LUMPUR, Oct 20 (Bernama) -- The Malaysian government will provide RM5 billion (US$1=RM3.52) in additional funds to double the size of Valuecap Sdn Bhd to RM10.3 billion and to invest in undervalued stocks and protect investments in government-owned companies, Deputy Prime Minister Najib Tun Razak said Monday.
The government set up Valuecap, with a RM10 billion capital, in January
2003.
Speaking to reporters after opening the Khazanah Megatrends Forum,
Najib said that the government will leave it to the Valuecap on how to
distribute the fund.
"It is up for them to decide (distribute the fund). They will look at the
position assets that are undervalued today," he said.
Najib, who is also Finance Minister, said the government will also
liberalise the service sector in response to manage the global financial crisis.
He said the specific sector will be detailed out and this will be based on
the International Trade and Industry Ministry's proposal to the Cabinet soon.
The government hopes through liberalisation, it can attract more
investments
and generate more employment within the country, he said.
He said the Foreign Investment Committee (FIC) guidelines will also be
reviewed to make it more attractive for foreign investors particularly in the
property and commercial sectors.
Under the liberalisation, Najib said some of the investments and purchases
might not have to get FIC approval.
"These are the elements of the stabilisation plan and we will do it in
stages."
"I'm talking about the financial stability as mentioned by Malaysian
Central Bank (Bank Negara) on the guarantee (for bank deposits) to ensure there
is no credit squeeze and lending continue to be high in Malaysia, particularly
to small-and medium-sized enterprises (SMEs)," he said.
Najib said these measures would also ensure government expenditures will
continue to be at the present level.
"We are mindful that we have to take steps to ensure long-term
competitiveness while we manage the short-term crisis," he added.
The Khazanah Megatrends Forum is an annual gathering of Malaysian corporate
leaders, policy makers, think tanks and practitioners from the public and
private sectors as well as civil society.
-- BERNAMA
The government set up Valuecap, with a RM10 billion capital, in January
2003.
Speaking to reporters after opening the Khazanah Megatrends Forum,
Najib said that the government will leave it to the Valuecap on how to
distribute the fund.
"It is up for them to decide (distribute the fund). They will look at the
position assets that are undervalued today," he said.
Najib, who is also Finance Minister, said the government will also
liberalise the service sector in response to manage the global financial crisis.
He said the specific sector will be detailed out and this will be based on
the International Trade and Industry Ministry's proposal to the Cabinet soon.
The government hopes through liberalisation, it can attract more
investments
and generate more employment within the country, he said.
He said the Foreign Investment Committee (FIC) guidelines will also be
reviewed to make it more attractive for foreign investors particularly in the
property and commercial sectors.
Under the liberalisation, Najib said some of the investments and purchases
might not have to get FIC approval.
"These are the elements of the stabilisation plan and we will do it in
stages."
"I'm talking about the financial stability as mentioned by Malaysian
Central Bank (Bank Negara) on the guarantee (for bank deposits) to ensure there
is no credit squeeze and lending continue to be high in Malaysia, particularly
to small-and medium-sized enterprises (SMEs)," he said.
Najib said these measures would also ensure government expenditures will
continue to be at the present level.
"We are mindful that we have to take steps to ensure long-term
competitiveness while we manage the short-term crisis," he added.
The Khazanah Megatrends Forum is an annual gathering of Malaysian corporate
leaders, policy makers, think tanks and practitioners from the public and
private sectors as well as civil society.
-- BERNAMA
