Govt needs RM211.1biil to grow financial services sector
KUALA LUMPUR: The government needs a cumulative funding of RM211.1bil to achieve its target of growing the financial services sector by three times by 2020.
"The public sector is expected to provide four per cent of this total funding," said the government in the Economic Transformation Programme (ETP) A Roadmap for Malaysia.
Out of the total funding, it said, RM65.2bil will be for the 10 entry point projects (EPPs) and the balance is to fund business opportunities and overall baseline growth.
Under the EPPs funding alone, the private sector is expected to provide 99% or RM64.6bil of this investment while the public sector contributes the remaining one per cent.
Of the Financial Services National Key Economic Area (NKEA), the government said it aims to raise total Gross National Income (GNI) contribution by RM121.5bil by 2020.
It said a total of RM28.8bil will be contributed via 10 EPPs, RM72bil from baseline growth and other initiatives, and RM20.7bil from the multiplier effect created by EPPs from other sectors.
The government noted that the largest source of the multiplier effect on the Financial Services NKEA is the communications, content and infrastructure NKEA, which is estimated to contribute 26% of the multiplier effect.
In addition, through EPPs, 45,000 jobs will be created with 56% of them receiving an average income of above RM4,000 a month while business opportunities and baseline growth will result in a further 229,000 jobs created. "To achieve this vision, we have identified a portfolio of EPPs for the financial services along four strategic thrusts," the government said.
One of the key thrusts is to strengthen the core to ensure all facets of the industry remain healthy and vibrant and able to effectively and efficiently support the needs of businesses and consumers.
This strategic thrust also serves the need of the high-income population, of which the government will set up the Private Pension Fund (PPF), whereby the private sector is required to fund 50% of the total funding of RM48mil.
The private pension industry is expected to grow to RM73bil with more than 2.7 million participants by 2020.
Other thrusts include developing new growth sectors to encourage financial institutions to go on the offensive in becoming regional bank champions and the indisputable global hub for Islamic finance.
A Financial Services NKEA Steering Committee will be established to ensure that the EPPs are implemented according to the schedule, of which it will be headed by the prime minister and co-chaired by the second minister of finance.
The membership includes industry regulators and key representatives of the public and private sectors. - BERNAMA
"The public sector is expected to provide four per cent of this total funding," said the government in the Economic Transformation Programme (ETP) A Roadmap for Malaysia.
Out of the total funding, it said, RM65.2bil will be for the 10 entry point projects (EPPs) and the balance is to fund business opportunities and overall baseline growth.
Under the EPPs funding alone, the private sector is expected to provide 99% or RM64.6bil of this investment while the public sector contributes the remaining one per cent.
Of the Financial Services National Key Economic Area (NKEA), the government said it aims to raise total Gross National Income (GNI) contribution by RM121.5bil by 2020.
It said a total of RM28.8bil will be contributed via 10 EPPs, RM72bil from baseline growth and other initiatives, and RM20.7bil from the multiplier effect created by EPPs from other sectors.
The government noted that the largest source of the multiplier effect on the Financial Services NKEA is the communications, content and infrastructure NKEA, which is estimated to contribute 26% of the multiplier effect.
In addition, through EPPs, 45,000 jobs will be created with 56% of them receiving an average income of above RM4,000 a month while business opportunities and baseline growth will result in a further 229,000 jobs created. "To achieve this vision, we have identified a portfolio of EPPs for the financial services along four strategic thrusts," the government said.
One of the key thrusts is to strengthen the core to ensure all facets of the industry remain healthy and vibrant and able to effectively and efficiently support the needs of businesses and consumers.
This strategic thrust also serves the need of the high-income population, of which the government will set up the Private Pension Fund (PPF), whereby the private sector is required to fund 50% of the total funding of RM48mil.
The private pension industry is expected to grow to RM73bil with more than 2.7 million participants by 2020.
Other thrusts include developing new growth sectors to encourage financial institutions to go on the offensive in becoming regional bank champions and the indisputable global hub for Islamic finance.
A Financial Services NKEA Steering Committee will be established to ensure that the EPPs are implemented according to the schedule, of which it will be headed by the prime minister and co-chaired by the second minister of finance.
The membership includes industry regulators and key representatives of the public and private sectors. - BERNAMA
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