NEW INITIATIVES FROM NEW MALAYSIA INC?

GLICs may embark on divestment programmes and fresh public-private partnership model introduced

government revenue base, imposing targeted subsidies and incentivising companies to compete in the Fourth Industrial Revolution (Industry 4.0).

“The prime minister said the government is reviving the concept of Malaysia Inc and reaffirmed his aspirations of building the third national car project.

“These ideas resonate with the policies implemented by his administration between 1981 and 2003, fanning speculations that some of his past policies may be revived to build a new Malaysia,” she said in UOB Malaysia’s Budget 2019 preview note yesterday.

GLICs such as Khazanah Nasional Bhd are expected to reduce equity holdings in listed and unlisted companies.

Goh said some government assets, especially 1Malaysia Development Bhd-related projects, would be disposed of while some agencies would be corporatised.

She said during Dr Mahathir’s first tenure as prime minister, about 500 privatised projects were implemented from 1983 to April 2009, helping the government save RM186 billion. This included the privatisation of 58 government agencies, involving the transfer of 113,440 civil servants to the private sector.

Goh said the potential focus areas in the 2019 Budget could include technology manufacturing in line with Industry 4.0, and the tourism sector, which is the second-largest foreign exchange earner for the country after manufactured goods.

There were 25.9 million tourist arrivals last year, with RM82.2 billion in tourism revenue.

She said there would likely be focus on renewable energy, rubber and rubber products — which is the second-largest contributor to commodities exports — automotive, capital markets (as the government will be looking at various financing options, debt issuance and affordable housing options), and the Bumiputera community as the government had signalled that it would be rebooting the Bumiputera agenda.