A Total RM6 Billion To Develop Growth Corridors

August 29, 2008 21:30 PM

A Total RM6 Billion To Develop Growth Corridors

KUALA LUMPUR, 29 Ogos (Bernama) -- A total of RM6 billion from the RM10 billion in the Midterm Review of the Ninth Malaysia Plan (9MP) to be spent for the development of the five economic corridors is provided in the 2009 Budget.

The five corridors under the Development Masterplan are Iskandar Malaysia, Northern Coridor Economic Region (NCER), East Coast Economic Region (ECER), Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE).

Prime Minister Datuk Seri Abdullah Ahmad Badawi, when tabling the budget in the Dewan Rakyat today, said an additional RM300 million was provided under the Strategic Investment Fund to finance the implementation of private-public partnership projects in the areas of public transportation, healthcare services, education and creative industries.

"These are priority socio-economic areas, where the government will support the project viability, but with the private sector bearing the project risks," he said. Abdullah said Iskandar Malaysia would develop an integrated public transportation system, initially focusing on enhancing bus services by working together with existing bus operators.

The areas of healthcare, a centre of excellence for postgraduate teaching and research would be established in partnership with private sector hospitals.

"Iskandar Malaysia will also set up and operate not-for-profit schools, initially on a pilot basis. These schools will have a mixed intake of government and private funded students.

In addition, a creative cluster would be developed in Iskandar Malaysia, with funds channelled towards enhancing the capabilities of local creative talent, he said. Among the major projects being implemented in the ECER are Agropolitan in southern Kelantan, Besut-Setiu and Pekan, including developing kenaf products. Abdullah said that to optimise the natural resources of the state, the Kertih Plastics Industry Cluster would be developed as a downstream industry to enable the local residents to benefit from the petroleum resources in Terengganu.

"Similarly, the SCORE will focus on the development of hydroelectric power and coal, petroleum and gas downstream industries as well as large-scale agriculture," Abdullah said.

He said that towards realising the potential of agriculture in the NCER, a number of projects were being implemented, including cattle breeding using the feedlot system in Tobiar, Laka Temin and Chuping as well as the conversion of about 3,000 hectares of idle land for padi cultivation. "In the SDC, a palm oil industry cluster in Lahad Datu and an integrated livestock centre in Keningau are being implemented." Abdullah proposed that venture capital companies that invest at least 30 per cent of their funds in start-up, early stage enchancing or seed capital be eligible for a five-year tax exemption effective Aug 30 this year until Dec 31 2013.

He said one of the incentives for venture capital companies (VCC) was income tax exemption for 10 years subject to the investment condition and at least 50 per cent of funds invested in venture companies must be in seed capital or 70 per cent of funds invested must be in start-up or early stage financing.

-- BERNAMA