Prime Minister Datuk Seri Najib Tun Razak on 30 March 2010 (Tuesday) unveiled the New Economic Model (NEM).
The objective of the NEM is to transform the nation into a high-income economy that is sustainable and inclusive and will position the nation on the right path towards attaining developed nation status by 2020.
Some of the highlights of the NEM are:
- Employees Provident Fund (EPF) will be allowed to invest more in overseas assets.
- Government and EPF to form a joint venture to promote the development of 1,200 hectares of land (3,000 acres) in Sungai Buloh into a new hub for the Klang Valley and is expected to generate new investments worth over RM5 billion.
- Petronas has identified two sizeable subsidiaries with good track record to be listed this year on Bursa Malaysia, a move that will reduce government's presence in business and enhance private sector's role.
- Khazanah Nasional Bhd will divest its 32 per cent stake in Pos Malaysia Bhd through a two-stage strategic divestment process.
- Several parcels of land in Jalan Stonor, Jalan Ampang, Jalan Lidcol in Kuala Lumpur will be tendered out and developed by private sector, failing which it will be wasteful if the assets were not developed as the government will incur cost of maintaining them.
- It is hope that Malaysia per capital income increasing to US$15,000 by the end of the decade from US$7,000.
- The government will reassess the subsidy system and broaden revenue-raising base through proposed Goods and Services Tax (GST).
- 40% of the Malaysia has the household income less than RM 1500.
I'm not sure how much the Malaysian per capita income has increased since the last 10 years. But just recalling back when i first joined the work force, starting income was somewhere in the range of RM2000 to RM2500.
And today 10 years down the road, my own siblings have started working. Starting income has gone even lower, RM1500 to RM2000, while cost of living has increased considerably over the last 10 years. I sincerely hope Malaysia's per capita income will double by the end of the decade. And hopefully this doubling is due to all Malaysian's generally earning better income, not because the gap gets bigger.
3 comments:
My lay man understanding of the facts:
The assumed income per capita is USD7k/year or RM2k/month, and NEP projects 7.2% increament per annum (USD15k/annum after 10 years).
Can you live with income RM2k/month? If the inflation about 7%, I don't see any difference in quality of life.
If petrol increase 10% do u think consumer price increament stop at 7%? In another words, 10 years later, we'll live like we are today, or maybe worse...
True. Thats why in developed countries like Japan, UK, US, there are still homeless and poor people. Kalau tak, semua orang dah kaya ler. The difference is the IT Exec yg baru keje 2 tahun i know in Japan can afford to travel the world, coz duit Japan sgt ler besar (though they are middle class in Japan). Can we say the same about us (maybe kalau ke Indon excluding Bali that is, oklah)?
If we do not stop this we are going to be like Indonesia. The rich becomes richer and the poor becomes poorer.
Simple example, nowadays houses are not selling 200k, but a million plus. semi-d asking price is RM2.2mill. No demand no supply.
Look at our roads now. Previously seldom we see jaguar, aston martin, ferrari and porsche on the road. now it becomes norm. Gembala (they tuned porsche cars) open their own branch in Malaysia (Kota Damansara for all the places in K - it could be KD will become the next Hartamas/Kiara). The price of the car? 1mill or more.
Just my two pence (i have in my pocket)
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