Government’s decision on mini-budget of RM2 billion for private initiative projects (PFI) causes the industry players to be wary.According to an unnamed chief executive of a listed company, “It is still unclear at this point in time how the government wants to do this, but the notable effort could help spur more partnerships.”
While Lim Chee Sing, RHB Research head said that the obstacle is to convince bank groups of PFI Projects.
According to Prime Minister and Finance Minister Datuk Seri Najib Razak during the second stimulus package in Parliament yesterday, he said that private companies can tender for the funds. Najib has added few characteristics for PFI Projects that is, planned projects have to be in strategic sectors that will help to create more job opportunities besides boosting country’s competitiveness in projects related to education and tourism.
He said that the funds only comprises small proportion of the project investment cost as it is a tipping point to turn marginally non-viable project to viable.