Highlights of Economic Transformation Program
Sector Initiative Potential beneficiaries
Greater KL KL MRT - received high level of commitment Gamuda, MMC
Rubber Research Institute project MRCB, WCT
High speed train to Singapore YTL Corp
Klang river project SP Setia, YTL Power, MRCB
Initiatives to make KL more attractive SP Setia, Bolton, DNP
Oil, gas & energy LNG regasification plant KNM, Dialog, Kencana
Financial services Create regional champion Maybank
Improve capital markets Bursa Msia
Promote bond market Maybank
Business Services Increase level of skilled workforce Jobstreet
Health services Promote generic drug manufacturing and export Pharmaniaga
Education Push for health services education Masterskill
Boosting connectivityMeanwhile, connectivity to and within the Greater KL/KV will be boosted with a high-speed rail system connecting the area to Singapore, while intra-city connectivity will be amplified via the proposed RM36 billion mass rapid transit (MRT) project.
The high-speed rail system is expected to cost RM16.5 billion and may generate RM6.2 billion in additional GNI, while creating 29,000 jobs.
Preliminary estimates for the MRT project indicate a cost of RM47 billion — RM36 billion for infrastructure costs, RM2 billion for land acquisition, and investments of RM9 billion for operating assets such as rolling stock.
The GNI impact from the MRT is estimated to be about RM21.3 billion annually by 2020, with 20,000 new jobs created both directly and indirectly.
The redevelopment of the Klang River is slated to be managed by “a small but highly professional statutory authority established under Federal legislation”, and will be formally established by end-2011, subject to the legislative timetable. This is estimated to have a capital expenditure (capex) of RM17.9 billion, of which RM14.3 billion has been identified as the private investment component in real estate development. The river project is expected to generate RM4.3 billion in GNI annually by 2020, with 17,000 new jobs created.
Meanwhile, the greening of Greater KL/KV to raise the amount of green space to 16 sq m per person according to World Health Organisation (WHO) standards from 12 sq m at present will require a capex of RM149 million over the next decade, and is expected to generate RM1 billion in GNI annually while creating 3,000 new jobs.
The repositioning of KL as a global city with heritage attractions by establishing a “heritage triangle walking museum” linking Masjid Jamek, Merdeka Square, Dayabumi and Central Market, the transformation of Central Market into a live arts studio complex, as well as the transformation of Pudu Jail into a mixed development will cost RM240 million, half of which will be sourced from private investors. This will have a potential GNI impact of about RM460 million annually, with some 13,500 new jobs created in the next decade.
Source: PEMANDU, HwangDBS Vickers Research, THEEDGE