Analysts and observers are largely positive on the government's
progress report on the Economic Transformation Programme (ETP) and the
Government Transformation Programme (GTP).
CIMB Investment Bank, in a strategy report released yesterday, said it was encouraged by the success of the programmes and expects the positive news flow on these fronts to remain a key catalyst for the local bourse.
Prime Minister Datuk Seri Najib Razak had on Monday announced that all 12 National Key Economic Areas (NKEAs) had surpassed or met their minimum targets.
"Despite the ambitious targets set for the first full year, the government delivered strong results in all NKEAs," said CIMB.
The local banking group highlighted a number of companies expected to gain the most from the ETP.
It said Gamuda Bhd remains the main beneficiary of the Mass Rapid Transit (MRT) project, being the Project Development Partner (PDP) and had recently awarded an RM8.2 billion tunneling job.
Among the local banks, Maybank Investment Bank Bhd has the potential to gain the most from the implementation of the ETP projects as it possesses the most diversified business portfolio.
From the Oil and Gas (O&G) sector, Dialog Group Bhd stands as the top gainer given its involvement in the RM5 billion Pengerang tank terminal and other works worth US$800 million.
OSK Research conceded that the construction, O&G and banking sectors have the most to benefit from the ETP.
"All in all, despite the criticisms levelled at it and the challenges it faces, we believe the ETP is still the best economic programme Malaysia has seen," said OSK.
The ETP achieved a Gross National Income (GNI) of RM830 billion last year, above the targeted RM797 billion. In terms of private invesment, the RM97 billion achieved surpassed the RM83 billion target. About 313,741 jobs were committed, exceeding the targeted 330,000.
As for the Entry Point Projects (EPP) under the ETP, 83% or 110 of the planned EPPs had been announced. These projects involved a total investment cornmitment of RM179.2 billion.
OSK said it remained neutral on the Malaysian market, given the increasing risk of a mid-year retracement from the current liquidity-driven rally. OSK noted a number of projects that could affect specific companies.
It said Malaysian Resources Corp Bhd could benefit from the plans for environment management Under Greater KL.
The plan for M&A between offshore fabricators could benefit Kencana Petroleum Bhd and Malaysia Marine and Heavy Engineering Bhd, while Genting Plantations Bhd could gain for the plan for more premium outlets for the country's tourism sector.
Under the education sector, SEG International Bhd and HELP International Corp Bhd could be good for the proposal to remove the quota for Malaysian students in international schools.
Maybank IB Research said it was encouraged by the achievements. It said the share divestments by government-linked investment companies had raised the market's liquidity and breadth.
Additionally, a few projects had seen significant progress during the year. However, Maybank noted that it was essential for the GTP and ETP to raise targets beyond lowhanging fruit or quick wins. ANNUAL REPORT ETP
CIMB Investment Bank, in a strategy report released yesterday, said it was encouraged by the success of the programmes and expects the positive news flow on these fronts to remain a key catalyst for the local bourse.
Prime Minister Datuk Seri Najib Razak had on Monday announced that all 12 National Key Economic Areas (NKEAs) had surpassed or met their minimum targets.
"Despite the ambitious targets set for the first full year, the government delivered strong results in all NKEAs," said CIMB.
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| Mr.Shanker Raj Ayanger (Selangor MIC Youth Chief) give explanation on ETP and GTP |
It said Gamuda Bhd remains the main beneficiary of the Mass Rapid Transit (MRT) project, being the Project Development Partner (PDP) and had recently awarded an RM8.2 billion tunneling job.
Among the local banks, Maybank Investment Bank Bhd has the potential to gain the most from the implementation of the ETP projects as it possesses the most diversified business portfolio.
From the Oil and Gas (O&G) sector, Dialog Group Bhd stands as the top gainer given its involvement in the RM5 billion Pengerang tank terminal and other works worth US$800 million.
OSK Research conceded that the construction, O&G and banking sectors have the most to benefit from the ETP.
"All in all, despite the criticisms levelled at it and the challenges it faces, we believe the ETP is still the best economic programme Malaysia has seen," said OSK.
The ETP achieved a Gross National Income (GNI) of RM830 billion last year, above the targeted RM797 billion. In terms of private invesment, the RM97 billion achieved surpassed the RM83 billion target. About 313,741 jobs were committed, exceeding the targeted 330,000.
As for the Entry Point Projects (EPP) under the ETP, 83% or 110 of the planned EPPs had been announced. These projects involved a total investment cornmitment of RM179.2 billion.
OSK said it remained neutral on the Malaysian market, given the increasing risk of a mid-year retracement from the current liquidity-driven rally. OSK noted a number of projects that could affect specific companies.
It said Malaysian Resources Corp Bhd could benefit from the plans for environment management Under Greater KL.
The plan for M&A between offshore fabricators could benefit Kencana Petroleum Bhd and Malaysia Marine and Heavy Engineering Bhd, while Genting Plantations Bhd could gain for the plan for more premium outlets for the country's tourism sector.
Under the education sector, SEG International Bhd and HELP International Corp Bhd could be good for the proposal to remove the quota for Malaysian students in international schools.
Maybank IB Research said it was encouraged by the achievements. It said the share divestments by government-linked investment companies had raised the market's liquidity and breadth.
Additionally, a few projects had seen significant progress during the year. However, Maybank noted that it was essential for the GTP and ETP to raise targets beyond lowhanging fruit or quick wins. ANNUAL REPORT ETP
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