JUN 22, 2012

Dissecting the ETP Annual Report (Part 3): It was only RM12.9 billion of ACTUAL investment

Going in the right direction isn’t the same as having reached your destination. Commitment isn’t the same as achievement.

PEMANDU trumpeted the RM179 billion investments brought in by the ETP in 2011, but these are merely committed investments. Actual investments were a mere RM12.9 billion, equivalent to just 7% of the RM179 billion committed.

Commitment is also only commendable if it is believable. Unfortunately, the wobbly financial footing of the project owners of some big projects doesn’t inspire much faith in their ability to carry the big ticket items through. For example, the project developer of the RM9.6 billion Karambunai Integrated Resort is being sued for defaulting on a piddling RM18 million of rental payments.

There is perhaps not much harm in making overstated achievements a cause for celebration, but the same cannot be said when they are made into a compass. While proclaiming that the RM94 billion private investments in Malaysia last year exceeded its target by 113%, PEMANDU said, “This development validated our push to make the private sector the engine of economic growth.” The gloomy truth is that the ETP itself brought in only RM12.9 billion, which includes both private and government investments.