9MP mid-term review:

2008/06/27
9MP mid-term review:'People-centric' projects to cushion oil shocks

By : V. Vasudevan, Eileen Ng, Joseph Sipalan, Irdiani Mohd Salleh, Ili Liyana Mokhtar, Annie Freeda Cruz, Audrey Dermawan, Sharanjit Singh and Marina Emmanuel
NST

KUALA LUMPUR: An additional RM30 billion will be set aside for the rest of the Ninth Malaysia Plan period to cover the rising costs of existing projects.

Funds would also be channelled to "priority" areas such as regional corridor developments and food production.The money, in addition to the original allocation of RM200 billion, will come from the recent fuel subsidy restructuring. Prime Minister Datuk Seri Abdullah Ahmad Badawi said the government would undertake "people-centric" projects for the remaining period of the 9MP from 2008 to 2010 in light of rising oil prices and uncertainty caused by external factors. Tabling the Mid-Term Review of the 9MP in Dewan Rakyat yesterday, he said the government was committed to easing the burden on the people.
People-centric projects provide basic amenities and directly benefit the people, such as water supply, electricity, health facilities, education, low-cost housing, poverty eradication and public safety.The aim of the review is to implement strategies and programmes that will turn the country into a strong and united nation.As such, he said, one of the main goals of the second phase of the 9MP was to protect Malaysians' quality of life.As part of efforts to eradicate poverty by 2010, a focus group has been set up to streamline, coordinate and assess programmes at state and district levels, said Abdullah, who is also the finance minister.Programmes to increase earnings and provide social safety nets would be boosted.Help will be extended in the form of aid to children, the aged, those with special needs, patients with chronic diseases and those with artificial limbs."These are additions to existing policies that make education and health services affordable or even free." Abdullah said the Mid-Term Review did not ignore the nation's need to boost capacity and competitiveness.Turning to basic infrastructure, particularly water and electricity, he said the use of technology such as solar-powered generators, wind turbines and rainwater harvesting would be intensified. "In populated areas such as the Klang Valley, the quality of water supply and sewerage systems will be enhanced with the establishment of the National Water Services Commission," he said

Meanwhile, Deputy Prime Minister Datuk Seri Najib Razak said RM13 billion of the allocation would be derived from the restructuring of the fuel subsidy."If we didn't do this (restructuring of fuel subsidy), the country's financial situation will be dire. With the global economic slowdown, we must have a reserve margin," he said at Parliament's lobby.Najib added the money would also come in the form of external loans.Increases in food and fuel prices also prompted the government to expand the social safety net, with an allocation to alleviate the burden of the low-income group. "There is a need for additional funds for public facilities, especially in Sabah and Sarawak." He said the Mid-Term Review highlighted the government's commitment to eradicating hardcore poverty.