$10 billion PPP investment in Malaysia

“Among the projects to be implemented are the construction of new toll highways, hospitals and universities' campus branches,” he said at a press conference after the launch of PPP Workshop Series 2 yesterday.

To date, a total of 513 projects, including 165 new ones had been implemented where a total of 113,487 jobs had been transferred from the government's payroll to that of the private sector, generating savings of RM163.8bil in capital expenditure and RM8.9bil in operating expenditure. Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop who had earlier opened the workshop said PPP had been increasingly recognised as an effective and appropriate mechanism to manage the complexity of today's development challenges.

“PPP is indeed an important option that can be utilised, particularly in today's challenging economic times, when we need to find increasingly innovative ways to improve the nation's infrastructure and services to meet the requirements of the people,” he said.

Asked on the issues of deficit and subsidies cut in the country, Nor Mohamed said a plan to slash subsidies despite rising prices was well timed in a growing economy.

“The Government does not hold to the ideology that a deficit means you go to hell and surplus means you go to heaven. The Government is being pragmatic by spending during a financial crisis to restore confidence while cutting back when the economy has recovered,” he said, adding that the Government projected the country's deficit to be reduced to 5.4 percent this year from 5.6 percent in 2010.

He added that the Government funds were not unlimited but unpopular subsidy cuts did not mean that the Government would stop spending.

“There are many demands on the Government's budget but it has been given the mandate to manage the public funds and we have to manage them the best way possible,” he said.