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Malaysia economic monitor : transforming urban transport (English)

After a strong finish in 2014, growth moderated in early 2015. Malaysia’s economy expanded by 6.0 percent in 2014, accelerating to 7.3 percent q/q saar in Q42014 due to resilient domestic demand and a pick-up of exports. Growth moderated to 4.7 percent q/q saar in Q1 2015 on account of weaker external demand, but domestic demand remained strong. To transform the planning and delivery of urban transport, Malaysia may consider prioritizing the following reforms: (a) Establish lead transport agencies at the conurbation level that spearhead an integrated approach towards the planning and delivery of urban transport across different modes; (b) identify and implement sustainable financing mechanisms for the lead agency. Introducing local taxes on fuel would not only result in environmental gains and trim the fiscal deficit (by RM10-19 billion), but also fund transport (for example, 24 percent of Vancouver’s transit system is funded by municipal gas taxes). Reviewing impediments to transit-oriented development will be another option, but should be considered alongside implications for affordability and inclusion; and (c) align policies to promote public transport with incentives to discourage the usage of private transport in congested areas. Introducing congestion pricing in areas well-covered by public transport as is done inSingapore will be an example of such policies.


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    Gil Sander,Frederico, Blancas Mendivil,Luis C., Westra,Reindert

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    Working Paper

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    East Asia and Pacific,

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    Malaysia economic monitor : transforming urban transport

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    Early Childhood Care and Education;urban transport;Oil and Gas Sector;current account surplus;domestic demand;real gross domestic product;Goods and Service Tax;labor force participation rate;Upper Middle Income Countries;balance of payment statistic;gross fixed capital formation;higher level of education;producer price index;progressive personal income tax;private consumption;corporate income tax;monetary policy;cost of congestion;machinery and equipment;Public Transport;external financial conditions;increase in prices;current account balance;consumer price inflation;export of goods;real wage growth;Urban Transport Planning;commodity price;urban mobility;chamber of commerce;higher fuel price;commercial bank lending;consumption tax account;electronic road pricing;primarily due;total tax revenue;higher interest rate;employment and unemployment;repair and reconstruction;reduction in pollution;retail fuel prices;consumer price index;capital goods import;private motor car;highly educated women;labor force participant;public transport usage;per capita emission;clean urban transport;real estate investment;real output growth;number of road;vehicle ownership rate;local air pollution;cost of fuel;oil price infrastructure;medium-term expenditure framework;private transport;transport agency;unemployment rate;export volume;congestion cost;net export;fiscal consolidation;fixed investment;deficit target;palm oil;oil field;external demand;consumption growth;real gdp;investment growth;average speed;credit growth;Labor Market;budget amount;national account;Public Transit;seasonal fluctuation;Population Growth;congestion pricing;asian countries;external factor;co2 emission;city hall;crude petroleum;manufacturing wage;commodity export;private vehicle;fiscal deficit;inflation rate;Fuel Subsidies;economic expansion;high employment;rapid urbanization;delay costs;percent change;export growth;insurance service;transport emission;fuel tax;food component;bus lane;monetary condition;raise revenues;real export;consumer inflation;clean environment;product lead;employment growth;age population;petroleum refining;wage increase;manufacturing sector;health indicator;investment property;intangible asset;international investment;export duties;holding pattern;inflation dynamic;loan ratio;banking sector;weighted average;coverage ratio;statutory bodies;core inflation;upward pressure;retail price;excessive price;fiscal position;excise duty;inflation expectation;investment income;mineral fuel;vegetable oil;fat consumption;public consumption;negative shock;capacity expansion;Cash Transfer;motor fuel;household income;smallholder household;rubber prices;private investment;investment contract;gender norm;external environment;open economy;financial volatility;institutional change;management position;Fiscal policies;fiscal policy;million people;road congestion;administrative boundary;income loss;environmental damage;separate entity;medium enterprise;external flows;increased volatility;macroeconomic environment;Gas Tax;fiscal benefit;urban development;sustainable financing;local taxes;environmental gains;Fiscal Reform;motorization rate;export earning;export earnings;incidence analysis;price decline;low-income group;metropolitan area;direct transfer;capital loan;road traffic;national transport;transportation intervention;institutional mechanism;geographic level;exempt goods;financial account;urban density;equity fund;reference currency;consensus forecast;offset price;consumption demand;private spending;corrective taxes;significant challenge;fiscal target;photo credit;debt level;job growth;tax authority;tax authorities;childcare center;transport cost;global city;petroleum consumption;funding mechanism;monetary cost;energy price;prices fall;decline of prices;Energy Sector;fiscal planning;agricultural commodity;agriculture product;soy bean;supply constraint;annualized change;fiscal impact;supply side;domestic value;export value;trade surplus;intermediate imports



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Gil Sander,Frederico Blancas Mendivil,Luis C. Westra,Reindert

Malaysia economic monitor : transforming urban transport (English). Washington, D.C. : World Bank Group.