We expect the government to review and reprioritise some infrastructure and real estate projects like the KL-Singapore high speed rail, southern (Gemas-JB) double track rail at inaugural meeting of the Fiscal Policy Committee (FPC).
The Government said it was committed to ensuring that its debt did not exceed 55% of GDP, that its revenue exceeded operating expenditure and the fiscal deficit did not exceed 4% of GDP.
Husni said with the narrowing current account surplus, all future public sector projects would be considered carefully and also the current account position in the balance of payments.
“Projects that will have a big impact of public finances will be reviewed and sequenced properly to avoid excessive strain on the Federal Budget,” said Husni.
He added that to ensure money was spent wisely, an Outcome Based Budgeting will be introduced in a pilot programme at the Finance Minstry, Health Ministry and International Trade and Industry Ministry.
“Public sector projects with low import content and high multiplier effects will be given priority, without compromising economic growth,” he said.
AmResearch Sdn Bhd economist Patricia Oh said with a budget deficit target of 3% in 2015, the importance of having clarity on fiscal reforms was important.
“The Fitch sovereign credit outlook downgrade will have made this clear to the Government,” she said.
The cost of KL-Singapore High Speed Rail Project is in excess of RM30billion
Minister in the Prime Minister's Department Nancy Shukri did not elaborate on the report's details and also did not indicate whether the project will be handed out on an open-tender basis but added that the HSR link will involve "major stations" in states between Kuala Lumpur and Singapore.
According to Malaysia's Land Public Transport Commission's website, there will be five transit stations between the two cities.
It was reported that tycoon Tan Sri Syed Mokhtar Albukhary, through a consortium comprising his company MMC Corp Bhd and Gamuda Bhd, is also keen in taking a stab at the project.
The consortium is currently building the first phase of the Mass Rapid Transit project in the Klang Valley.
Earlier, DRB-Hicom, a company control by Tan Sri Syed Mokhtar Albukhary announced net profit dropped 68.5% to RM10.26mil from RM32.6mil, The decrease was mainly due to higher interest cost.
Another company control by Tan Sri Syed Mokhtar Albukhary of MMC corporation, announced 30% drop in revenue in Quarter 2.
YTL Corp Bhd's Tan Sri Francis Yeoh has publicly declared that he is interested in handling the project.
Indeed, it was Yeoh who first mooted the idea of a HSR connecting Singapore to Malaysia's capital years ago.
YTL Corporation have strong balance sheet and finacial muscle to implement the project without governement funding. KL-Singapore High Speed Rail Project might have to awarded to YTL Corporation if government do not want to miss the target to complete the project by year 2020.
Mr Yeoh's penchant for scooping up valuable assets in distressed times and turning them into gems in the cash-plump stable is widely known.
No surprise then that Mr Yeoh is hoping he can work the same kind of magic again in the current slowdown.
'I like headwinds. We can buy a lot of assets,' he says, true to form.
杨忠礼机构有财力独自建隆新高铁
政府决定重新检视系列大型计划。下周一（9月2日）的财政政策委员会议后有所宣布。首相署表现管理及传递单位（PEMANDU）周四召开汇报会，宣布政府将重新检视大型计划，大型基建计划的重新编排，但强调变动不破坏经济增长，并以高经济效应和低进口量的计划为优先。
马银行投行研究分析员担心隆新高铁的可能性也不小，约300亿令吉成本的马新高铁工程因其中进口需要不少，而且目前进展仍让人担心。
PEMANDU称，计划商业评估过程已完成，技术评估则未完成，也需要与新加坡政府进一步商谈。
媒体早前报道，隆新高铁将在今年杪宣布国际公开竞标。然而，安联研究分析员认为，计划融资仍悬而未决，故与其不会在近期内落实。
分析员也相信，马新高铁工程营运后，两国之间的双边贸易將更为健康，並且提振依斯干达发展走廊的投资商业活动。
分析员预计，马新高铁基建工程將对整个经济带来正面效应。
政府预测，马新高铁可每年贡献额外62亿令吉的国民收入（GNI)
《商业时报》报道引述消息人士指出，我国富豪丹斯里赛莫达旗下马矿业，正与金务大和两家分别来自中国及欧洲的系统整合商（system integrator）成立财团，合力争取隆新高铁计划的合约。
丹斯里赛莫达旗下多元重工首季净利跌69%
马矿业首半年营业额跌30%
消息人士披露，杨忠礼机构（YTLCorp，4677，主板建筑股）也对高铁计划充满兴趣，而且将与数外国公司合作竞标，包括西门子公司（Siemens AG）。
楊忠禮機構最早提出馬新高鐵的構思，有关概念是在1990年和2006年由杨忠礼机构（YTL，4677，主板贸服股）提出，該集團是在2006年向政府提呈此倡議，
分析员相信在缺乏政府的资助下，主要承包商要承接如此大额的工程具有一定的挑战。因此，或可通过公私合伙关係（PPP）架构。
杨忠礼机构（YTLCorp，4677，主板建筑股）,有财力在缺乏政府的资助下独自建隆新高铁。
