Naturally, anyone buying property in Malaysia would like reassurance that the economic outlook is rosy. There have been however, various articles expressing concerns about the country's long-term outlook.
This is partly because the supplies of oil and gas, which have been a major sourse of income, are dwindling. Malaysia has had a long-running plan to reach fully-developed-nation status by 2020. This so-called "Vision 2020" has consisted of 5-year plans with the aim of transforming the economy and imroving life for Malaysia's people. So far, the government has done an impressive job of moving the country forward.
However, even the government now recognises it has some major obstacles ahead. They have therefore embarked on a major initiative which they call the Government & Economic Transformation Programme (GETP). It is being overseen by a new ministry called Pemandu (performance management & delivery unit).
Part of the Government Transformation Programme addresses social and related issues including education, poverty, crime and corruption. There was also an examination of some costs borne by the government, most noticable the various subsidies offered on a range of products from flour to petrol, to look for ways to reduce them.
The key area of focus was aimed at raising the country's gross national average income from US$6,700 to US$15,000 by 2020. In order to acheive this, the government set up think tanks managed by senior private and public sector employees who were tasked with studying eleven key industries to see what could be done to accelerate growth. Called the Economic Transformation Programme, it consists of a number of specific projects with the objective of accelerating growth.
In addition to the eleven economic areas, there was one geographic one. That is the Greater Kuala Lumpur/Klang Valley Plan. Its ambitious aim is to make the city into one of the top-twenty most liveable cities in the world. It recognises that KL faces stiff competition, even within Asia, when it comes to attracting talent and multinational corporations. The plan includes creating a new body - Talent Corp - which will aim to attract talent from overseas: both expats and Malaysians who have chosen to live elsewhere. It will also try to encourage multinationals to set up business here.
The KL plan will address the poor public transportation and include beautification programmes. The latter includes developing 10 areas along the banks of the Klang River, cleaning up the river, and increasing the green areas. It goes without saying that if this plan is successfully implemented then the value of properties in the KL area will certainly appreciate accordingly.
The GETP is a comprehensive and very ambitious effort that deserves the nation's full support. There are of course critics who questions its acheiveability, but that has been the case with every government initiative for the past thirty years. During that time we have seen the transformation of Malaysia and like most expats we have been very impressed by the progress made in a relatively short time. We remain optimistic.
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