The 2011 Budget while it had laid out allocations for expenditure and projects to transform the nation, it did not offer any mechanisms or specific plans to attract investors, a local

industrialist said today.

The industries were expecting to see some incentives to attract investors, said BIG Industries Bhd director Dr Lau Ban Tin.    

With the limited local market, domestic investors are already moving out, and the lack of incentives would further add on to the current situation, he told Bernama after delivering a talk on ‘Economic Landscape for 2011 and Beyond’ at the Budget 2011 Seminar, organised by TAR College School of Business Studies in Petaling Jaya.

He also said that with the limited funds, the government should give priority to more pertinent issues than infrastructures that could be built much later or even after achieving Vision 2020.

With the nation aggressively steering towards achieving a high-income nation and expecting for more foreign direct investments (FDIs), it should look at incentives such as special harbour, special industrial zones, more tax incentives and exemptions, special loans or government guarantee for purchase of land to lure investors.    

Lau was comenting on the Budget 2011 tabled by Prime Minister Najib Razak in Parliament yesterday.

"We are saying we don't have enough money, 60 percent of the population is earning below RM3,000."

Mega tower can wait

The government is presently withdrawing subsidy, expecting more FDIs and private investments and therefore there are bigger problems to be addressed, Lau said, adding that the government could consider building the Warisan Merdeka later.

azlan The Warisan Merdeka landmark, a RM5 billion project located within the enclave of Merdeka Stadium and Stadium Negara will start next year and is expected to be completed in 2015.

In 2011, private investment is estimated to expand 12.5 percent to RM86 billion.

The implementation of the 12 National Key Economic Areas (NKEA) is expected to generate investment exceeding RM1.3 trillion and the private sector is expected to finance 92 percent of the NKEA.

- Bernama