Prime Minister Najib Abdul Razak has laid down a firm foundation to drive the nation towards embracing a high-income economy in the 2010 budget through bold proposals to raise private equity, invigorating the stock market, further developing Islamic finance while emphasising on micro-credit programmes.

NONE Najib, who is also Finance Minister, said green technology would be promoted via a RM1.5 billion fund while small-and medium-scale industries development programmes and the construction sector - both vital backbones to the economy - would be given additional injection of funds.

As for the stock market, he said the government would liberalise the commission-sharing arrangements between stockbrokers and remisiers in two stages to enhance retail participation in the bourse.

Tabling the 2010 Budget in the Dewan Rakyat today, the prime minister said 100 per cent foreign equity participation would also be allowed in corporate finance and financial planning companies.

All public-listed firms too would be required to offer e-Dividend to shareholders to increase efficiency of the payment system.

Existing tax incentives for financial services, particularly Islamic finance, will be extended until 2015, with new measures put in place comprising a 20 percent stamp duty exemption on Islamic financing instruments and deductions on expenditure incurred in the establishment of Islamic stock broking firms.

Islamic bond for all

On the Ar-Rahnu micro-credit programme, the government will encourage all Syariah-compliant financial and banking institutions such as Bank Muamalat and Bank Islam to offer this scheme to assist those unable to secure financing from financial institutions and to obtain business capital fast.

islamic banking To support implementation of private sector projects in regional corridors, the government will allocate RM3.5 billion next year as part of efforts to ensure they are developed according to schedule.

Planned investments totalling RM221 billion have exceeded the Ninth Malaysia Plan target of RM145 billion.

The government will issue 1Malaysia Sukuk (Islamic Bond) totalling RM3 billion to all Malaysians aged 21 and above, with a minimum investment of RM1,000 and a maximum of RM50,000 plus a maturity period of three years, with a five percent annual return paid quarterly.

To further promote the construction industry, Najib said RM9 billion has been allocated to finance infrastructure projects including RM4.7 billion for road and bridge projects and RM2.6 billion for water supply and sewerage services.

He said RM899 million will be allotted for rail facilities, RM820 million for ports and sea services and RM276 million for airport projects.

Plans for corridors, Putrajaya and Cyberjaya

Najib also said that the government has launched five development corridors to narrow economic growth disparities between regions, increase income and ensure equitable wealth distribution.

He said these efforts would generate business and job opportunities as well as improve the quality of life of the people.

"The government will ensure that the regional corridors are developed according to schedule. To date, 126 out of 195 planned projects are at various stages of implementation and planned investments totalling RM221 billion have exceeded the Ninth Malaysia Plan (9MP) target of RM145 billion.

He said to support the implementation of private sector projects in regional corridors, the government will allocate RM3.5 billion in 2010 for infrastructure and basic amenities as well as implement training programmes and socio-economic projects.

"Among projects to be implemented include 'Projek Perumahan Awam' and 'Pembersihan Sungai Segget' in Iskandar Malaysia, 'Projek Pertanian Bersepadu' and 'Pusat Latihan Usahawan Tani' in Northern Corridor Economic Region (NCER).

"Projek Pelebaran Jalan Persekutuan Kuala Krai-Gua Musang and Kuala Lipis-Raub-Bentong in East Coast Economic Region (ECER), Projek Kluster Industri Minyak Sawit Sandakan and Keningau Intergrated Livestock Centre in Sabah Development Corridor (SDC) as well as Projek Jalan Akses Empangan Murum and Projek Jalan Akses Empangan Baram in Sarawak Corridor of Renewable Energy (SCORE)," he said.

Najib also said that the government will continue to develop Putrajaya and Cyberjaya into more lively, vibrant townships and efforts will be intensified to increase business, commercial and recreational activities.

He said among projects to be implemented in Putrajaya include the construction of a hypermarket, international school, art gallery, historical museum, vehicles repair complex and recreational centre.

"Meanwhile, in Cyberjaya, among projects to be implemented are the construction of affordable houses, hypermarket, business complex, parking lots, recreational centre and school, in addition, a more efficient public transport system will be provided, the development of the two township will complement each other," he said.

Najib's budget speech