10 March 2009

The Mini Budget.

Yesterday was a public holiday for Malaysia - which meant a non-trading day for Bursa. However, with most of the bourses in the region all down yesterday, the KLCI would be expected to be lower in today's trade. Add in yesterday's market performances plus the report by World Bank on the worse-than-expected contraction of the world economy would also alarm investors.

In Malaysia, the investors community would be focusing on the Mini Budget, scheduled to be announced by Deputy Prime Minister Datuk Seri Najib Tun Razak at 4pm in the Parliament today.

My personal take on the Mini Budget?

I believe that the Government will immediately roll out the budget for the smaller scale priority public projects first; such as infrastructure improvements and upgrading works, new police stations and public amenities such as schools and smaller scale hospitals.

One other thing also. I believe that most likely the larger scale mega projects will not be directly funded by the Government since the Government had been introducing and implementing the Private Finance Initiative (PFI) concept. Instead, more efficient and qualified contractors and consortiums will take up concessions with the Government to fund and develop these larger scale projects.

Anyways, lets wait for 4pm and see what Najib has to say.


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