By Sharen Kaur
sharen@nstp.com.my
Published in NST on March 10, 2011
THE latest announcements of projects under a government plan could help lift the mood of stock market investors but their effects on the economy would only take place in a few years with effective implementation.
The government announced nine new Entry Point Projects (EPP) with a promised investment of RM2.34 billion on Tuesday.
But analysts are not rushing to change their market forecasts as they have already factored in numbers from projects under the Economic Transformation Programme (ETP) launched last year.
HwangDBS Vickers Research is maintaining its year-end target at 1,730 points and Maybank Investment Bank at 1,710.
RHB's head of research, Lim Chee Sing, is also maintaining year-end target of 1,700 points. The FBM KLCI ended up 6.03 points to close at 1,523.69 points yesterday.
"The 131 EPP projects are not new and the implementation will take between three and five years.
"The market has moved up slightly this week. However, it is not caused by the EPP but the easing of oil prices, which has led to the regional market performing quite well," Lim told Business Times.
Maybank chief economist Suhaimi Ilias said the implementation of ETP will boost private investment.
This is crucial ensuring a healthier, balanced and sustainable gross domestic product (GDP) growth.
Malaysia is targeting 5 per cent to 6 per cent GDP growth this year.
Maybank is looking at private investment to expand 11 per cent in 2011 and accelerate to 13.2 per cent next year following the EPP rollout.
-ENDS-
sharen@nstp.com.my
Published in NST on March 10, 2011
THE latest announcements of projects under a government plan could help lift the mood of stock market investors but their effects on the economy would only take place in a few years with effective implementation.
The government announced nine new Entry Point Projects (EPP) with a promised investment of RM2.34 billion on Tuesday.
But analysts are not rushing to change their market forecasts as they have already factored in numbers from projects under the Economic Transformation Programme (ETP) launched last year.
HwangDBS Vickers Research is maintaining its year-end target at 1,730 points and Maybank Investment Bank at 1,710.
RHB's head of research, Lim Chee Sing, is also maintaining year-end target of 1,700 points. The FBM KLCI ended up 6.03 points to close at 1,523.69 points yesterday.
"The 131 EPP projects are not new and the implementation will take between three and five years.
"The market has moved up slightly this week. However, it is not caused by the EPP but the easing of oil prices, which has led to the regional market performing quite well," Lim told Business Times.
Maybank chief economist Suhaimi Ilias said the implementation of ETP will boost private investment.
This is crucial ensuring a healthier, balanced and sustainable gross domestic product (GDP) growth.
Malaysia is targeting 5 per cent to 6 per cent GDP growth this year.
Maybank is looking at private investment to expand 11 per cent in 2011 and accelerate to 13.2 per cent next year following the EPP rollout.
-ENDS-
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