On 2 May 2009, Prime Minister Najib Razak announced the government's plan to develop a new economic model that will speed Malaysia's transition to a high income country.
[4] Among other reforms meant to accomplish this goal, the NEM seeks to empower the private sector and to reduce fiscal disparity between the wealthiest and poorest of Malaysians.
[6] Malaysia has implemented measures to attract and maintain foreign investment, including a moderation of preferences designed to benefit ethnic Malays.
Specifically, these reforms include allowing foreign investors to hold majority stakes in most enterprises excluding "strategic" industries such as banking, telecommunications, and energy, easing insurance regulation, curtailing powers of the Foreign Investment Committee and lowering the minimum quota for Malay ownership in publicly traded companies from 30 percent to 12.5 percent.
Sugar and fuel subsidies were selected for reform due to the fact that they disproportionately benefit the wealthy and foreigners, encourage over-consumption and create opportunities for fraud and smuggling.
Responding to concerns about how these reforms might affect the poor the Prime Minister's Office pointed out that Malaysia will still be spending RM7.82 billion per year on fuel and sugar subsidies and that prices for these commodities would remain the lowest in Southeast Asia.
Najib and Indian Prime Minister Manmohan Singh signed agreements to co-operate in the areas of higher education and finance.
In January 2010 Najib announced plans to develop a new visa regime for Indian nationals, specifically for managers and knowledge workers to visit Malaysia.