ESP30. Private Finance Initiative (PFI)

• RM2B to boost private investment - private companies invited to bid for the funds
• Projects characteristics
• private sector to implement, finance and assume project risks. Revenue generated principally from private sector and not from government sources
• government financial assistance only constitute a small portion of project investment cost.
• must be in strategic sector (education, health and tourism), have high spillover effects, create sustainable job opportunities, enhance nation's competitiveness
• Among projects approved are
• infrastructure for Tanjung Agas industrial park - spur creation of industrial cluster in the Eastern Corridor Economic Region (ECER)
• biotechnology cluster in Iskandar Malaysia - to facilitate FDI inflows
• upgrading traffic infrastructure system around KL Sentral - facilitate new private sector investment valued at RM3B over nest 3 year for development of new offices, hotels and shopping complexes
• Education
• increase the number of scholarships for entry into local private universities
• GLCs committed to establish 10 not-for-profit private schools