Malaysia to spur growth with $23 billion infrastructure spending

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(Oct 10): Malaysia will start work on infrastructure projects including roads and railways worth at least 75 billion ringgit ($23 billion) in an effort to sustain economic growth, according to Prime Minister Najib Razak.

The government intends to build the 1,663-kilometer Pan Borneo Highway, stretching from Sabah to Sarawak, at a cost of 27 billion ringgit, Najib, who’s also finance minister, said in his annual budget speech in Kuala Lumpur today.

The Southeast Asian nation also plans to construct a 23 billion ringgit second mass-rail transit, a 9 billion ringgit light-rail line and four highways with a combined cost of 16 billion ringgit, he said.

Gross domestic product will expand 5 percent to 6 percent in 2015 on improving external demand and resilient domestic activity, the Ministry of Finance said its annual economic report. Growth this year is seen at 5.5 percent to 6 percent.