Malaysia PM unveils measures to boost investment

By Razak Ahmad

KUALA LUMPUR (Reuters) - Malaysian premier Najib Razak announced on Monday more populist measures aimed at boosting investment and countering opposition gains, including a promise to slash street crime.

Najib said the government would cut crime by 20 percent, tackle public service graft, expedite rural development, improve public transport and widen access to quality educational institutes, the state news agency, Bernama, reported.

"All these are being done to ensure that in the final analysis it is the people who will derive the benefits," Bernama quoted Najib as saying.

The prime minister set a deadline of 2012 to reach these targets, a year before his Southeast Asian country must hold its next polls.

The opposition won control of five of Malaysia's 13 state assemblies and denied the ruling National Front coalition its once iron clad two-thirds majority in parliament in an unprecedented electoral performance last year.

More than 10.9 billion ringgit ($3.10 billion) would be allocated for the measures, although Najib did not specify the source of funds for the spending.

To curb street crime, Najib said police would get additional equipment while the government would also consider setting up a special tribunal or court to speed up prosecution.

They are the latest steps to help Malaysia become more internationally competitive and win back investment, which Najib has announced since taking over from Abdullah Ahmad Badawi in April.