Malaysia announces new investments, energy incentives

Najib announced the latest in a slew of investments which are part of the government's Economic Transformation Programme (ETP), aimed at creating 3.3 million jobs and pushing the country towards developed-nation status by 2020.

"These developments, new projects and foreign investment clearly demonstrate that our programme to transform Malaysia's economy is working," Najib said.

"The bright future for the country that we have promised is far from a pipe dream."

He said the investments would include 3.0 billion ringgit over the next two years to create the Tanjong Agas oil and gas logistics industrial park in the central state of Pahang -- intended to be a regional oil and gas hub.

Najib said state power firm Tenaga Nasional would also be investing 4.0 billion ringgit in reinforcing infrastructure and building two new hydro power plants in Terengganu and Perak, with a coal power plant also to be built in Perak.

He said the cabinet had already agreed to amend the Petroleum Income Tax Act to provide oil and gas companies with additional incentives to develop more than 10 hard-to-reach oil fields in the country and stimulate domestic exploration to overcome a projected 1.0 to 2.0 per cent drop in production.

Najib said the incentives, for which he will seek an official endorsement from parliament, could lead to petroleum-generated revenues of 50 billion ringgit for the country over the next 20 years.

Under the ETP, created in consultation with the private sector, 12 key sectors have been identified including oil, gas and energy, financial services and a plan to revitalise Kuala Lumpur.

Critics have argued that previously ambitious plans have crumbled at the implementation stage as would-be investors are often deterred by the preferential treatment for government-linked companies.

Malaysia also has a decades-long positive-discrimination policy for its majority Muslim Malays, seen as hampering competition.