Top Story : New Economic Model – Broad framework unveiled
Market Update (published 30 Mar 2010)
♦ The PM unveiled the broad framework for the New Economic Model (NEM) yesterday.
♦ While the PM talked about the subsidy system, introduction of the GST and also pledged to carry out economic reforms, we note that the market may be disappointed by the lack of actual policy changes.
♦ The GLCs appear to be in the driving seat, especially with regards to public-private partnerships.
Government land in Sungei Buloh will be developed in a jv with the EPF, while other prime land in Kuala Lumpur will be tendered out and developed by the private sector.
♦ Sustainability of natural resources also appeared to be a key focus including palm oil and oil & gas, with the emphasis on downstream activities.
♦ As for the subsidy system, the PM mentioned Pos Malaysia in relation to improving wages although we believe this can only come from an increase in postal rates. We think TNB will also be in the running for a revision to its electricity tariffs.
RHB Equity 360° ( Market, Banks, Telecom, TNB, Pos, HL Bank, EON Cap, Astro, Hiap Teck, VS; Technical:KUB)-...
- We believe the NEM is a long-term plan and more importantly consistent implementation will still be crucial.
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