Malaysia Government Supports Private Sector with RM20 billion Funding
The government has approved a total of RM14.2 billion of 320 Facilitations Fund projects, which has generated approximately RM230 billion worth of economic activities. This fund under the Public-Private Partnership (PPP) approach, had been the stimulant for broader sector reforms and increased private sector participation in the Malaysian economy. Under the 10th and 11th Malaysia Plan, the government will allocate RM20 billion of the Facilitation Funding to catalyse private investment in nationally strategic areas. The implementation of this game-changer strategy was announced during the Invest Malaysia 2020 conference.
Out of the RM20 billion Facilitation Fund, RM5 billion would be used for land acquisition while the remaining RM15 billion would be utilised to facilitate private sector finance projects. This fund was intended to bridge the private sector viability gap with projects that have strategic impact and extensive economic spill-over effects.
Economic Recovery Plan in Future
Furthermore, the government will publicly introduce three major documents – Economic Recovery Plan (medium to long term), 2021 Budget (November 6, 2020), and 12th Malaysia Plan (first-quarter of 2021). These documents will serve as guidelines for the private sector to ensure long-term growth and sustainability of the Malaysia economy. The first document on the Economic Recovery Plan will grant the government the opportunity to build a firm foundation for the country’s future growth and sustainable development. This plan will address several reform measures, including and not limited to the future of the workforce, labour market reforms, and the issue of quality investments as well as the digital economy, scrutinising the roles of some public and private institutions that are spearheading the economic development.
As mentioned during Invest Malaysia 2020, the government will also provide more allocation of the fund to both hard and soft infrastructure facilities and maintenance despite its current limited financial resources. The revision of the infrastructure development approaches is essential to the country’s continued progress.
Currently, the government is reviewing the overall macro-economic situation and financial resources. It will announce the total size of the 12th Malaysia Plan’s allocation for the next five years by the first quarter of next year.