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Malaysia's Infrastructure and Utilities

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#1 ·


Malaysia

From the colonial era, Malaysia inherited relatively well-developed but unevenly distributed infrastructure and transportation networks. After achieving independence, the Malaysian government made considerable efforts and large investments in expanding its highways, railroads, seaports, and airports. More recently, the government played an active role in encouraging development of modern modes of communications such as satellite telecommunications and the Internet. In the late 1990s, the government launched a privatization program in the transportation and communication sector, which brought private investments, allowed more flexibility, and provided initiatives for managers to increase profitability and production efficiency.

Malaysia is served by a network of 94,500 kilometers (58,721 miles) of primary and secondary roads, 70,970 kilometers (44,100 miles) of which are paved. This includes 580 kilometers (360 miles) of superior quality expressways, which connect Kuala Lumpur with Singapore and with major seaports and other destinations. However, the road transportation system is still underdeveloped in East Malaysia (Sabah and Sarawak), with most of the roads in Peninsular Malaysia. In the 1990s, with the rapidly growing number of privately-owned cars (840,000 new registrations in 1997 alone), the roads in the capital and other major cities became highly congested. This also brought air pollution in Kuala Lumpur to a very high level, which combined with pollution from forest fires in the Indonesian part of Borneo to create hazardous smog in 1997 and 1998. In 1996, there was a total of almost 7 million motor vehicles registered in Malaysia, including 2.8 million passenger cars, 3.4 million motorcycles and mopeds, 37,000 buses and coaches, and 400,000 trucks and vans. In response to the growing number of cars on the national roads, the government invested in development of the public transport system, including modernization of the country's railways and the construction of a light rapid-transit system in Kuala Lumpur.

Malaysia has a railway system of about 1,800 kilometers (1,120 miles), part of which was planned for privatization in 1998-99. In 2000, only 148 kilometers (92 miles) of railways were electrified. The major tracks run from Singapore to Kuala Lumpur, and further to Pinang and Bangkok (Thailand). However, the railways are unevenly distributed. There is only 1 railway track of about 134 kilometers (83 miles) in East Malaysia (in Sabah). Malaysia intends to invest heavily in development of a monorail system in Kuala Lumpur and into building new railways. The biggest project is the US$632 million (RM2.4 billion) Express Rail Link (ERL), which will connect Kuala Lumpur Central (the main railway station in the Kuala Lumpur City) with Kuala Lumpur International Airport (KLIA). In 1996-97, the 8.6-kilometer Kuala Lumpur People Rapid Transit (monorail) was built at a cost of US$300 million (RM1.14 billion). The U.S.-based Parsons Transportation Group provided design and engineering services to the local Malaysian firm building

Kuala Lumpur's light rail transit systems. Several other multi-multimillion dollar railway projects have been initiated, but some were put on hold due to the difficulties caused by the Asian financial crisis.

Malaysia's seaports were established during the colonial era and served as merchant ports as well as British naval bases. The major ports are Kelang, George Town, Pinang, and Kuantan on the Peninsula, and Kota Kinabalu and Kuching in East Malaysia. During the last few decades, these ports were expanded to serve rapidly-growing Malaysian exports and imports. The West Port of Port Kelang has seen RM2.2 billion worth of combined (private and government) investments, while there has been RM2.8 billion worth of investment in the Tan-jung Pelepas Port. Competition has grown between Malaysia and Singapore for servicing international ships and handling containers, although 40 percent of Malaysia's international trade was handled through Singapore until recently. In 1998 Malaysia's seaports handled 83 million metric tons of cargo. In late 2000, there was an announcement that the world's largest container line, Maersk-Sealand, intends to move its regional trans-shipment operations from Singapore to the Malaysian port in Johor.

Malaysia has also promoted development of aviation in order to serve growing tourism and business needs. The country has 32 airports with paved runways, and 83 airports with unpaved runways. The largest of them, the US$3.2 billion state-of-the-art Kuala Lumpur International Airport, was opened in 1998. It is capable of handling 25 million passengers and 1.2 million tons of cargo annually. U.S. firms, including Harris, FMC, Adtranz, and Honeywell, have been awarded contracts to supply passenger trams, jetways, and information systems for this new airport. Malaysia transformed its national partly-privatized air carrier, Malaysian Airlines, into a world-class company, operating a fleet of about 100 aircraft.

In Peninsular Malaysia, electrical power is supplied by the predominantly state-controlled Tenaga Nasional company. Due to the rapid industrial development and growing demand for electricity, considerable efforts were made to privatize the national utility company and develop private initiatives to build and operate new power generating plants. To this end, a private consortium, the Independent Power Providers (IPPs), was established. Malaysia has sufficient reserves of oil, gas, and coal to meet its energy needs. Additionally, in East Malaysia there is huge potential for building hydroelectric power plants, but their development will require considerable investments. In the mid-1990s, the Malaysian government considered building the Bakun Hydro-electric Dam, which would have been one of the world's largest dams, in Sarawak; the controversial plan was abandoned, however, due to financial difficulties. In 1998, Malaysia produced 57.45 billion kilowatt hours (kWh), 94 percent of which was produced using fossil fuel and 5.22 percent by hydroelectric power plants.

Telecommunications services in Malaysia are provided by several competing companies. The largest is Telecom Malaysia, which formerly had a state monopoly in the sector. The quality of telecommunication services is up to international standards, thanks to an inflow of private investments and the government's initiatives in developing this sector. In 1998, the country had 4.4 million telephone lines and 2.17 million mobile phones. In 1999 there were 8 major Internet service providers (including Telecom Malaysia, MIMOS Ltd., and Maxis Ltd.), with a number of new companies announcing their intention to enter the market. In 1998, the Malaysian government announced the development of the multi-billion-dollar Multimedia Super Corridor (MSC). This ambitious project, 15 kilometers wide and 50 kilometers long, and stretching from Kuala Lumpur to the new international airport, is planned to become a Malaysian "Silicon Valley." The MSC will include 2 "smart cities," employing a high-technology environment, high-capacity telecommunications, sophisticated infrastructure, and even "electronic government."

Source : Encyclopedia of the Nations

 
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#2 ·
Malaysia likely to give growth projects priority
By Sharen Kaur Published: 2008/06/21, BusinessTimes



THE government's review of infrastructure and mega-projects under the Ninth Malaysia Plan (9MP) could see several projects put on hold, scaled down, or extended over a longer period, industry sources said.

Projects will likely be prioritised based on necessity, cost, and urgency.

Amid soaring costs and higher fuel prices, projects that would have the most benefits for the people would jump to the front line, they said.

"The government is more concerned with rising food prices. So they will go for top priority projects which can generate growth, instead of mega developments. While this is a concern among industry players, we hope to be given a slice of the smaller cake," said one official of a public listed construction firm.

The government had announced that 880 projects worth about RM15 billion will be implemented under the 9MP.

So far, projects that have been awarded under the 9MP include East Coast Expressway Phase 2 comprising packages 10 and 12 (worth RM1.5 billion), Kota Kinabalu Airport upgrade works (RM750 million), Second Penang Bridge (worth RM3 billion) electrified double-tracking projects from Ipoh-Padang Besar and Seremban-Gemas (RM16 billion collectively), and Langat 2 Water Treatment Plant (RM4 billion).

Projects that have been shortlisted but not yet awarded, meanwhile, include the Penang Outer Ring Road (PORR), Penang Monorail, Johor Baru Monorail, West Coast Expressway, flood mitigation, Pahang-Selangor Raw Water Transfer Project, Klang Valley LRT extension, and Selangor water treatment and distribution, worth RM28 billion collectively.


One industry player said he believes the government may postpone flood mitigation and building of highways in Peninsular Malaysia, while giving the go- ahead for road and bridge construction works in Sabah and Sarawak.

Some research houses, meanwhile, believe that PORR may be shelved indefinitely while the Gemas-Johor Baru double-tracking project could be postponed to 2009.

"Under the Eighth Malaysia Plan (8MP), 30 to 35 per cent of the projects were delayed and carried forward to the 9MP. We are expecting the same for the 9MP, looking at the current political scenario and rising costs.

"We believe the Ipoh-Padang Besar double tracks awarded to Gamuda-MMC could be prolonged from five to 10 years, and there may be some hitches in the Selangor water projects," an analyst said.

The flow of project awards will also likely slow down for the remainder of 2008, which could put downside pressure on the stock market.

"Most people have already factored in the news (project delays). The constraint now is that the government has a budget deficit level to meet and that level is 3.1 per cent of the gross domestic product in 2008. With this constraint in mind, they can't simply go around spending," said one analyst.

The analyst said there is talk that the Penang Monorail project may be re-tendered and the development plan restructured under a build, operate and transfer concept or private finance initiative offering the company the concession.

Another industry player said the government is expected to concentrate on projects which could benefit the public such as building new roads and improving the public transport system.

"We believe the government may go ahead with the Klang Valley LRT extension. They may shorten the plan," he said.

The LRT extension includes an extension of the Kelana Jaya LRT line to Klang, and a new outer-ring line serving the outskirts of the Klang Valley.
 
#3 ·
Malaysia Has Made The Best Of What It Has, Says Kofi Annan
By M. Saraswathi, Bernama

KUALA LUMPUR -- Former United Nations Secretary-General Kofi Annan today heaped praises on Malaysia's success in economic development and political governance.

Describing Malaysia as having made the best use of whatever resources it has, Annan said its unique experience of development offered a more accessible and appropriate model for less developed countries to learn from.

In making the call, the Nobel Laureate cited how other ex-colonies should emulate Malaysia in investing in areas such as education, developing cost effective social safety nets, building appropriate housing and health systems.

It should also promote agricultural productivity, enhance rural development as well as harness national savings.

These are some of the vital components of modern Malaysia "that seems easy to be taken for granted when you gaze at the Kuala Lumpur skyline with its gleaming office towers clad in glass and steel. Today's Malaysia is a highly industrialized nation with state-of-art infrastructure, modern services and strong research and technology capacity" said Annan, who retired last year after helming the world body since 1997.

Annan, who hails from Ghana, said this in his address at the Khazanah Merdeka Series of lectures here today which was attended by over 800 people including Prime Minister Datuk Seri Abdullah Ahmad Badawi and his wife, Datin Seri Jeanne Abdullah.

Others included Malaysia's former Permanent Representative to the U.N. Tan Sri Razali Ismail, Second Finance Minister Tan Sri Nor Mohamed Yakcop, Khazanah Nasional Managing Director Datuk Azman Mokhtar and about 800 guests.

"You have much to be proud of. Most Malaysians are financially secure and there is a relatively high degree of social mobility "

"I do not support the argument that political stability can only be assured if freedoms are curbed, which some would say has been a price Malaysia has paid for prosperity.

"All this is easier said than done, you will say.

"I hear voices complaining about the inequities of the international systems that make it hard for Malaysia's voice to be heard.

"But this should not slow down efforts to develop networks or promote appropriate development strategies," he said.

"Malaysia has an important knowledge to impart to less developed countries. Joining the ranks of developed nations -- as Malaysia is expected to do -- within the next 12 years, brings certain benefits. It does, but it also carries obligations.

"In today's world, not only are we responsible for each others' security, but we are also in some measure responsible for each others' welfare.

" said Annan, who retired last year after helming the world body since 1997.

Annan, who hails from Ghana, said this in his address at the Khazanah Merdeka Series of lectures here today which was attended by over 800 people including Prime Minister Datuk Seri Abdullah Ahmad Badawi and his wife, Datin Seri Jeanne Abdullah.

Others included Malaysia's former Permanent Representative to the U.N. Tan Sri Razali Ismail, Second Finance Minister Tan Sri Nor Mohamed Yakcop, Khazanah Nasional Managing Director Datuk Azman Mokhtar and about 800 guests.
 
#4 ·
Johor

Aero Mall, hi-tech park to boost Senai airport
Monday June 16, 2008, By FARIK ZOLKEPLI,TheStar



Senai Airport

THE construction of the Aero Mall shopping complex and the Senai High Tech Park will help the Senai International Airport to become a logistics hub in five years.

Johor Mentri Besar Datuk Abdul Ghani Othman said development projects conducted by Senai Aiport Terminal Services Sdn Bhd (SATS) would increase the number of passengers and cargo at the airport and thus benefit Iskandar Malaysia as well.

“The airport will be the first in the country to have a shopping complex equipped with a commercial centre. It will include a hotel, bank, restaurant and entertainment facilities,” he said.
Abdul Ghani said Aero Mall would have its own airport concept.

“With this, the airport will not only function as a location for airplanes to arrive and depart but will also become a high-tech hub for passengers as well as cargo to the rest of the world,” he told pressmen after launching the Aero Mall at the airport in Johor Baru.

The construction of the RM70mil Aero Mall is expected to be completed by December 2009.

SATS is also investing RM300mil to upgrade the main facilities at the airport such as increasing the length of the runways, equipping the runways with a new system and signal lights, as well as constructing runways catering to big aircraft.

“The upgrade is expected to take two years and once it is ready, the airport will be able to cater to big aircraft, both passengers and cargo,” Abdul Ghani said.

Meanwhile, SATS chief executive officer Datuk Mohd Sidik Shaik Osman said SATS would build the high-tech park on 800ha located beside the airport and economic zone.

“This will enable the park to become an interesting destination for high-tech sector investments. The park will be equipped with broadband and stable electrical supply without interruption,” he said.
 
#5 · (Edited)
Johor

Bukit Chagar CIQ to start operations in May
By BERNAMA
11 February, 2008

The Bukit Chagar Customs, Immigration and Quarantine (CIQ) Complex will start its operations in May, Works Minister Datuk Seri S. Samy Vellu says. He said the complex, worth over RM1 billion, has been fully completed and all relevant government agencies have started to move in and make the necessary preparations.

“The CIQ will be open to the public and light vehicles in May,” he told reporters after officiating the ground breaking ceremony for the construction of a road from Permas Jaya to Pasir Gudang here today.

Present was Johor Menteri Besar Datuk Abdul Ghani Othman.

Samy Vellu said the CIQ will have a temporary link to the Johor Causeway.

Upon completion of the “Medium Term Link” (MTL), which connects the CIQ with the Johor Causeway, at the end of 2009, heavy vehicles which presently passed through the Tanjung Puteri Customs Inspection Centre will be allowed to use the complex, he said.

When asked on the cost of building the MTL, he said the Finance Ministry was still looking at it.

On the 9km Permas Jaya-Pasir Gudang road, Samy Vellu said the RM190-million project undertaken by Pelantar Komponen Sdn Bhd would be completed by Jan 1, 2001.

The cost included the construction of elevated interchanges along the Johor Baru-Pasir Gudang Road and in Permas Jaya and three bridges over Sungai Luncho, Sungai Rekoh and Sungai Masai, he said.

“The Works Ministry has identified Permas Jaya as having the potential to grow rapidly with the construction of several other high-impact infrastructure projects under the Iskandar Development Region programme,” he said.

He also said that under the Ninth Malaysia Plan, the federal government had allocated RM1.87 billion for development projects in Johor.
 
#6 · (Edited)
NEW
Customs, Immigration and Quarantine (CIQ) Complex
by serippe



The GSB Project involves the relocation of the existing Customs, Immigration and Quarantine ("CIQ") facilities to the present Johor Bahru railway station at Bukit Chagar and to replace part of the Causeway with a road bridge and a rail bridge, including the construction of other related infrastructure and amenities on a fast-track basis. GERBANG has been appointed by the Government of Malaysia (the "Government") as the Design & Build contractor for the GSB Project.

The Johor Causeway (the "Causeway"), built in 1920 and officially opened in 1924 is frequently congested and no longer adequate in catering to the increasing level of traffic between Malaysia and Singapore. The Causeway suffers from traffic congestion during peak hours, public holidays and festivals. The main focus of the road network in Johor Bahru is in the Johor Bahru Central Business District ("Johor Bahru CBD"), which has evolved around the Causeway linking to Singapore. Thus, the traffic pattern in Johor Bahru CBD is very much connected to what happens at the Causeway.
 
#7 ·
Terengganu

Kuala Terengganu as hub to Far East proposed
Thursday June 5, 2008, TheStar

KUALA TERENGGANU: Terengganu wants the Sultan Mahmud Airport here to be a hub for destinations to China and Vietnam.

“The airport is located close to Kunming in China, Saigon and Hong Kong, so airlines operating these routes could establish their regional offices here,” Mentri Besar Datuk Ahmad Said said after chairing the weekly state exco meeting here yesterday.

Ahmad said the new airport terminal and extended runway could accommodate Boeing 747s from September.

“We will also see flights carrying 8,000 pilgrims from east coast states from the airport here directly to Mecca,

“Twenty Boeing 747s owned by Malaysia Airlines will use the airport to ferry pilgrims to the Holy Land,” he said.

Ahmad said 15 cargo planes, all B747s, will be used to transport horses for the World Equestrian Endurance Championship at Lembah Bidong, Setiu, this November.

“Therefore, the airport could be elevated to a regional hub so that passengers could fly direct to China and Hong Kong,” he said.

Ahmad said the state government would also build an aircraft refuelling facility at the airport for planes to transit.

He also said that Tabung Haji had agreed to build a complex for pilgrims on a 2.8ha site near the airport.
 
#9 ·
Terengganu

Mega projects give a touch of modernity after Barisan takes over Terengganu
Tuesday February 19, 2008
TheStar

KUALA TERENGGANU: Kuala Nerus is one of eight parliamentary constituencies in Terengganu where the Federal Government has launched multibillion ringgit development projects since Barisan Nasional (BN) wrested the state from PAS in the 2004 general election.

These projects have brought much progress to the constituency, giving it a touch of modernity.

Among the mega projects launched in Kuala Nerus are reclamation of land along the Seberang Takir coast, construction of a sports complex and upgrading the Sultan Mahmud Airport.

There is also the development of Pulau Duyong into a venue for the international Monsoon Cup sailing sports and construction of Felda headquarters in the east coast.

Other new projects are Pulau Warisan to create four health centres in each state constituency, constructing pedestrian crossings, Fire and Rescue Department outposts and upgrading the Police Field Force complex in Gong Badak.

In an interview with Bernama, Kuala Nerus MP Che Azmi Abdul Rahman said the RM300mil reclamation of the Seberang Takir coast up to Pantai Tanjung began two years ago. It is expected to be completed soon.

Che Azmi said the embankment was to prevent soil erosion, reduce the impact of waves and, most importantly, facilitate smoother movement for fishermen to land their catches.

For the 12th Malaysia Games (Sukma) in May, he said the state was constructing a RM300mil sports complex near the airport.

On the current RM500mil upgrading works at the airport, Che Azmi said it was done to enable pilgrims to fly to Mecca from the state, rather than travel to Kuala Lumpur International Airport.

Pulau Duyong, once viewed as a scenic fishing village, has earned a place on the international map as a leading haven for sailing enthusiasts and also as the venue for the prestigious annual Monsoon Cup.

The island features a resort and facilities for the locals, including affordable apartments.

“The project did not involve taking land from villagers. The roads and the resort were built on reclaimed land.

There are also two universities – Universiti Darul Iman Malaysia and Universiti Malaysia Terengganu in Gong Badak, with other colleges and teacher training colleges in the area.

Che Azmi said, to ease congestion at Sultan Mahmud Bridge and Manir Bridge, a new bridge linking Kampung Teluk Pasu, Pulau Sekati and Bukit Losong would be completed in two years.
 
#11 ·
KUALA LUMPUR SMART Tunnel - Stormwater Management And Road Tunnel (SMART)
KL's SMART Tunnel:

The SMART Project Tunnel is about 9.7 km long and has internal diameter of 11.83 m. The SMART integrates both stormwater management and a motorway in the same tunnel.

The Stormwater Management Component comprises of the diversion structure, a holding basin, a bypass tunnel, a storage resevoir and the twin box culvert and an outlet structure. The total storage capacity for SMART system is 3 million m3. The existing ponds at Kg. Berembang and Taman Desa will be utilized as holding basin and storage reservoir.

The motorway will consist of a 3 km double deck structure within bypass tunnel with ingress and egress connection links at both ends of the structure. The ingress and egress connection to the motorway Tunnel Linking KL - Seremban Highway to Jalan Sultan Ismail and Jalan Tun Razak.

The motorway consist of four ventilation and emergency escape shafts at about 1 km intervals and cross passages at 250 m intervals along the motorway tunnel.

A flood detection system and control and surveillance team will be incorporate in the overall SMART system to effectively integrate and manage both stormwater and traffic.


Teh operation of the SMART system works on three principal mode operation based on the relationship between flood discharge at the Sg. Klang / Sg. Ampang confluence and the operations status of the motorway. The river water stages and river discharge will be monitored via hydrological stations along the rivers.

The flood discharge will only be diverted into the bypass tunnel when it exceeds 70 cumecs. For flood discharge between 70 to 150 cumecs, the motorway will still be open to traffic. The motorway will only be closed when the flood discharge exceeds 150 cumecs for the full stormwater operation of the SMART, which is expected once or twice a year.

The reinstatement from stormwater to motorway operation will be initiated when the flood discharge recedes to 70 cumecs. The reinstatement process will take about 4 days and this involves cleaning up and reinstalling all portable equipment to full operation mode.

Opening of SMART tunnel to reduce flood risks and traffic jams
By BAVANI M.
Photos by SAMUEL ONG
Monday April 16, 2007
TheStar



In April and October of 2001, and again in June 2003, massive floods in Kuala Lumpur caused serious damage. It was apparent that the rivers flowing through the city were unable to hold the water and space constraints did not permit river improvement work. It was then that the storm water management and road tunnel project (SMART) was offered as a solution to end flooding in the capital city. More than three years have gone by since construction began and the highway is due to open at the end of this month. STAR METRO gains an insight into the workings of this RM1.9bil tunnel.
 
#13 ·
KL-Putrajaya Highway

The KL-Putrajaya Highway will have the shortest direct link between the commercial centre of KL, the federal administrative centre of Putrajaya, the Multimedia Super Corridor of Cyberjaya and the Kuala Lumpur International Airport (KLIA) at Sepang reducing the journey time from about 1 hour to approximately 30 minutes. Given its strategic linkage, this Highway is aptly referred to as "The Gateway to the Nation".

The KL-Putrajaya Highway is designed on a regional connectivity concept linking the Middle Ring Road 1 at Jalan Tun Razak and the Middle Ring Road 2 at Kesas Highway. It is also a traffic dispersal link to relieve traffic congestion along the KL-Seremban Highway at Jalan Tun Razak.

 
#15 ·
NEW
Kuching International Airport (KIA)



The Kuching International Airport (KIA) has long been overlooked by many. Despite being the third largest airport in Malaysia, this airport seems to be rather underutilized after the Malaysian air rationalisation.





 
#16 ·
NEW
Kota Kinabalu International Airport



Kota Kinabalu International Airport (KKIA) is located about 8 km from the city of Kota Kinabalu, the state capital of Sabah, Malaysia. It is the second busiest airport in Malaysia after Kuala Lumpur International Airport with around 4 million passengers using this airport annually for domestic and international flights. It is also the main gateway into the state of Sabah. In 2006, about 2 million unique tourists visited Sabah, and it is estimated that this number will exceed 2.5 million by the end of 2007.

by anoie



 
#18 ·
RM12bil double-track project 8% done
Wednesday June 25, 2008, By Zulkifly Mohamad, TheStar

BUTTERWORTH: The RM12.485bil electrified double track project from Ipoh to Padang Besar which commenced in January is now 8% complete.

An MMC-Gamuda JV Project spokesman said to date, 160km of the total 329km stretch of the project had been opened for works.

He said presently, the joint-venture partners for the project were actively involved in six major works.

“They include utility works such as relocating gas pipelines, water pipes and electricity cables. Works are also in progress to install fibre-optics for telecommunications facilities along the double tracks and stations,” he said.

He said works to build two double-barrel tunnels in Bukit Berapit with a distance of 3.3km and 330m for the other tunnel in Larut had begun.

“Various soil treatment methods are being carried out at all opened locations while earth and drainage works are also in full swing at such locations.

“The earthworks include ground levelling, cut and fill, land removal and preparation of access roads,” he added.

MMC-Gamuda JV Project has been given 60 months to deliver the project on Jan 7, 2013. They received the Letter of Award from the Government on Dec 13, last year, and took possession of the site on Jan 8.

The spokesman said work to build land viaduct at Bukit Mertajam in Penang and marine viaduct at Bukit Merah in Perak was progressing as scheduled.

The double-tracking main line would cover a distance of 171km from Ipoh to Butterworth while the Kedah line, from Bukit Mertajam to Padang Besar in Perlis, would stretch 158km.

It is touted as the single largest and one of the most expensive construction projects in the country and would create more than 100,000 jobs for the people in Perak, Penang, Kedah and Perlis.

Two million pieces of pre-cast concrete sleepers, 1.5mil tonnes of cement and 400,000 tonnes of steel are required to build the entire railway line.

Gamuda group managing director Datuk Lin Yun Ling was quoted as saying that the agreement with the government was one lump sum over the five-year span.

“We are hedging on the prices of building materials, so even if prices are volatile, we will not gain or lose,” he said.
 
#21 ·
Extra RM30b for development
Friday June 27, 2008, TheStar



KUALA LUMPUR: Datuk Seri Abdullah Ahmad Badawi has proposed an increase to the development allocation ceiling from RM200bil to RM230bil for the mid-term period of the Ninth Malaysia Plan (9MP) due to rising costs.

“I would like to emphasise that the Federal Government will continue to implement the 9MP (2006-2010) development projects in all states,” he said at the Dewan Rakyat yesterday, when tabling the motion on the mid-term review of the plan.

For the latter period of the Ninth Malaysia Plan, the Government would continue to manage the macro economy in a prudent manner to ensure that the economic fundamentals remained strong, he said.

While the global economic growth is projected to moderate at 4.1% for the 2008-2010 period, the Malaysian economy is forecast to expand at an average of 6% per annum.

Abdullah said the policy and strategy framework for the mid-term review would focus on five main thrusts:

> Moving the economy up the value chain by increasing productivity and competitiveness, generating new sources of growth and expanding the markets for the country’s goods and services;

> Raising the capacity for knowledge and innovation and nurturing a first-class mentality. The strategies include improving the quality of education and accessibility, making national schools a preferred choice, creating tertiary institutions of international standing, nurturing quality R&D and enhancing scientific and innovative capabilities and fostering a society with strong moral and ethical values;

> Addressing persistent socio-economic inequalities between ethnic groups, in which six key strategies would be implemented: poverty eradication, improving income distribution, ownership restructuring, achieving balanced development between regions and the development of the bumiputra commercial and industrial community (BCIC);

> Improving the standard and sustainability of life by increasing healthcare services, meeting housing needs and improving urban services, building basic infrastructure, improving transportation facilities and ensuring environment conservation and sustainable management of resources; and

> Strengthening institutional and implementation capacity of the public service delivery system, increasing confidence in electronic-based services and implementing outcome-based planning, monitoring and evaluation.
 
#22 ·
Projects ‘will go on in good times’
Friday June 27, 2008, TheStar

THE Government had to defer several major projects slated under the 9th Malaysia Plan (9MP) because of the prevailing economic situation, Datuk Seri Najib Tun Razak said.

The Deputy Prime Minister said these would be continued when the situation improved.

“It’s not a question of punishing anyone,” he said at Parliament lobby after the tabling of the motion on the mid-term review of the 9MP by Prime Minister Datuk Seri Abdullah Ahmad Badawi yesterday.

“When we review the projects, it doesn’t mean that they are cancelled. Essential projects will continue to be implemented, whether the state is run by Barisan Nasional or otherwise.”

Najib was asked about projects in Pakatan Rakyat-ruled states, such as the Penang Outer Ring Road and the Penang monorail, which cost more than RM3bil.

Asked whether these states could use their own methods to fund them, Najib said it would be subjected to the Federal Constitution.

“The states have to decide whether the development programmes are under the state or federal list. If they need to borrow funds, they will need Federal Government’s permission,” he said.

Najib said the overall ceiling figure for development allocation under the 9MP had been increased to RM230bil (from RM200bil) to cater to the rising cost of implementation, and also the need to finance basic necessities in Sabah and Sarawak.

He added that the increase was sourced from funds created from the recent restructuring of the fuel subsidies. “If the restructuring process had not been carried out, the national budget would have faced critical problems, and we needed to avoid that.”
 
#23 ·
GDP growth at 6% for 2008-2010
27-06-2008:
THEEDGEDAILY


KUALA LUMPUR: The government expects the country’s real gross domestic product (GDP) to average 6% per annum during the remaining of the Ninth Malaysia Plan (9MP) which ends in 2010, despite the soaring oil prices, rising inflation and global economic volatility.

In a media briefing on the mid-term review of the 9MP on Wednesday, Economic Planning Unit director general Tan Sri Dr Sulaiman Mahbob said the expected GDP growth was based on the assumption that oil prices cost US$100 (RM330) per barrel.

The inflation during the remaining period under the 9MP is expected to be between 3% to 4% as opposed to 2.8% in the 2006/2007 period.

He said the growth was expected to be driven by domestic demand, especially private sector expenditure.

The federal government had targeted its private consumption growth to be 7.6% annually for 2008 to 2010, as it anticipated further improvement in consumer confidence with increasing employment opportunities and higher disposable income. On the other hand, public consumption is expected to grow at 6.6% a year.

Meanwhile, private investment is projected to grow at 10.6% per annum. In nominal terms, private investment is estimated to reach RM120.1 billion or 56.4% to total investment in 2010, while total private investment in the remaining 9MP is estimated to be RM305.8 million.

Per capita income in current terms was projected to increase by 8.8% to RM29,711 and per capita income in purchasing power parity to US$18,439 in year 2010.

The review report also said the privatisation programme and private finance initiatives (PFI) would also contribute towards increasing private investments.

Sulaiman said the Ministry of Finance has allocated RM20 billion for the PFI, which would be used mainly to build schools, civil servants’ quarters and office buildings. Of the 956 projects under the PFI, 107 were under implementation and 849 had not commenced.

The services sector is expected to sustain its growth momentum at 7.9% per annum. Growth will be led by the financial and business services subsector growing at 9.8% annually with Islamic banking, takaful and re-takaful, shared services and outsourcing as the main contributors.

Manufacturing sector is expected to register moderate growth at 3.5% annually, due to sluggish global demand of electrical and electronics products. However, its growth would be led by domestic-oriented industries.

The construction sector is anticipated to record 5.8% growth annually, underpinned by civil engineering activities and the residential and commercial property subsector, apart from development of regional growth corridors.

The agriculture sector is expected to grow 4.4% annually, with the food crop subsector growing at 6.2% and the industrial crop subsector growing at 3% per annum.

On the other hand, gross exports is projected to expand at 8.1% for the 2008-2010 period, on the back of growth in exports of agricultural and mining commodities that was caused by higher export prices.

Gross imports would also be expected to grow at 9.8% annually, mainly intermediate and capital goods, which would constitute 85.3% of total imports, as it was in line with the sustained demand for imported components with the expansion in the manufacturing sector.

On the country’s fiscal position, the federal government was expected to sustain its fiscal deficit at 3.2% of GDP in 2010. Its operating expenditure is targeted to moderate to 6.9% annually, as it revamped fuel products subsidy in light of high oil prices.
 
#24 ·
RM4.9b to boost urban,rail transport systems
27-06-2008: by Surin Murugiah, THEEDGEDAILY

KUALA LUMPUR: The government will invest RM4.91 billion to improve urban and rail transport systems as part of the fourth thrust of the Ninth Malaysia Plan (9MP), which is improving the standard and sustainability of quality of life.

The amount includes RM350 million and RM35 million for RapidKL and Rapid Penang respectively, RM528 million for the acquisition of 22 cars of train and an estimated RM4 billion on the extension of the existing light rail transit (LRT) lines. The extension is from the Kelana Jaya line to Putra Heights and Sri Petaling to Putra Heights, each measuring 16km each. The rail line is expected to be completed by early 2012.

Under the plan, the 22 new car trains will be delivered beginning early next year and completed by 2010 to ease the congestion on the Kelana Jaya light rail transit line.

As for the RapidKL bus services, there are currently 167 routes with 650 buses covering 980 residential areas with a total bus ridership of 400,000 per day.

According to the mid-term review report, while traffic congestion continued to be a challenge in major cities and urban centres, the insufficient road space to cope with the rapidly increasing number of private vehicles and inadequate public transport services would be addressed systematically.

It said a public transport commission would be established to plan and coordinate all public transport programmes and initiatives, and that the commission will also regulate the sector and develop an efficient and integrated transport system.

Meanwhile, on the overall outlook of the fourth thrust of the 9MP, the report stated that efforts to strengthen the family institution and protect vulnerable members of society would contribute to a more caring society.

It said sports and recreational activities would be promoted to enhance the well being of the community while public safety will be improved.

“Mainstreaming environmental considerations in development will be emphasised for environmental protection and sustainable use of natural resources.

“The promotion and preservation of culture, arts and heritage will contribute to building national identity and unity,” it said.
 
#25 ·
UEM to sign new 2nd Penang bridge pact
By Zuraimi Abdullah Published: 2008/06/26, BusinessTimes



The new deal will cap the project's total cost at RM4.3 billion and call for an open tender of the bridge's toll concession
UEM Group, together with its Chinese partner, expects to sign a new agreement to build the second Penang bridge next month, its top executives said.

The new contract will cap the project's total cost at RM4.3 billion but the UEM-China Harbour Engineering Co Ltd consortium can claim extra expenses from fluctuating material costs, they said.

The new deal follows the government's decision to allow for an open tender of the bridge's toll concession, amid rising costs due to soaring energy and commodity prices worldwide. The move reversed the original plan to let UEM, via subsidiary UEM Builders Bhd, manage the concession once the bridge is completed.

"The (new) contract agreement has been finalised and we hope to sign it soon," group chairman Tan Sri Dr Ahmad Tajuddin Ali said.

Tajuddin and managing director Datuk Ahmad Pardas Senin said the group was managing the construction cost partly through forward- and pre-buying of key materials like steel and cement.

They said the group was well poised to bid for the toll concession when the time comes. UEM is bullish about its chances, given its experience and expertise in highway and toll operation and maintenance locally and abroad.

Tajuddin and Ahmad Pardas were speaking at a press conference after UEM World Bhd's annual general meeting in Kuala Lumpur yesterday.

Ahmad Pardas, who is also group chief executive officer, said the bridge's design had been tweaked with some "esthetic changes" but the alignment remains as in the original plan.

Tajuddin, meanwhile, said the listing of the group's property arm, UEM Land Bhd, is expected to take place in early November. The listing is part of the UEM group's restructuring announced in February this year.

The planned capital repayment to UEM group shareholders, another key component of the restructuring, should be made by the third quarter, he added.

On revenue growth this year, Ahmad Pardas said the target set under its KPI (key performance indicator) is achievable despite a more challenging business and economic environment.

He added that construction, engineering, healthcare and property divisions would continue to contribute significantly to the company's performance.

UEM announced recently a 13 per cent growth each in revenue and return on equity under its KPI targets for the year ending December 2008.

Last year, the group's revenue grew 46 per cent to nearly RM7 billion, although the growth is still short of its targeted 65 per cent under its KPI. Group net profit rose fourfold to RM939.2 million from RM194.9 million previously.

The performance was largely due to major land sales in Nusajaya in Johor, the benefits from the dilution of its investment in Costain plc and a gain of the listing of Opus International Consultants Ltd in New Zealand.
 
#26 ·
PENANG BRIDGE Expansion

Stitching work on Penang Bridge
By DERRICK VINESH, TheStar



An artist impression of how the Penang Bridge
would like after the expansion work.

WHILE most Penangites go to sleep, work to widen the Penang Bridge is being carried out late into the night and early hours of the morning to avoid disrupting traffic flow.

About 500 workers, including local contractors, Indonesian and Bangladeshi labourers, are at the famous Penang landmark from midnight until 6am daily, working together to put up additional lanes on both sides of the bridge.

Stitching work to merge the outer lanes with additional new lanes started 10 days ago.

“Motorists using the bridge may not see the workers as they are mostly working under the bridge,” said UEM Builders Berhad project director K. Preamakanthan.

“We have also placed temporary fences on the guardrails to prevent motorists from being unduly distracted by the ongoing work while driving on the bridge.”

Under the RM585mil bridge-widening project, the existing island-bound and Prai-bound dual-carriageway lanes, each measuring 8m wide, will have an additional 4.8m wide lane each.

Preamakanthan said only 700mm from the 3.65m-wide outer lane would be temporarily closed when stitching works were being carried out.

“We chose to do the work at night to avoid clashing with the heavy traffic flow on the bridge during the day,” he said.

He said the nine lay-bys on the bridge would be moved outside the additional lanes while 2m-wide demarcations would be drawn along the new lanes for motorcycles.

Preamakanthan said since widening works started in November 2006, concrete piles had been driven into the land and marine areas of the bridge between the midspan and Prai.

Piling work for the remaining stretch between the midspan and Penang island, he said, would be completed by August.

“We have started stitching work on a 1.6km-long stretch on the Prai-bound lane. Here, concrete columns have been vertically placed in be-tween large pre-cast concrete boxes, called crossheads,” he said.

Preamakanthan said in between two standing columns, a pair of 40m-long ‘I’ and ‘U’ shaped beams had been placed horizontally to rest on the crossheads.

These beams, he said, were manufactured at the company’s pre-casting yard located near the new toll plaza.

“The I and U-shaped beams, which each weigh 80 tonnes and 140 tonnes respectively, are hoisted using a gantry and placed on a multi-axel trailer to be transported to the designated sites.

“Two 350-tonne launching cranes onboard a 76m-long barge are deployed to pick up the beams and place them in position on the crossheads,” he said.

Preamakanthan said that so far, a total of 80 I and U-shaped beams had been put in place at a rate of two beams per night.

He said the company hoped to complete the laying of all 288 I-shaped beams and 296 U-shaped beams by early January. Work began last December.

Concrete mix will later be poured over the steel bars in a formwork (mould) placed on the beams to create a cemented deck slab.

New concrete guardrails would also be built on the outer side of the new lane, he added.

“The old guardrails will then be hacked to expose some parts of its steel frames that would later be overlapped on the protruding steel frames from the inner side of the new deck slab.

“Concrete mix will then be poured over these steel bars that are placed in a 1.2m-wide formwork to stitch both the old and new lanes,” he said.

Preamakanthan said the process of hacking, steeling and concreting at each stretch between two columns took about 18 days to complete.

He said that based on the rate of progress on the works, he was confident that the overall widening project would be completed by the Aug 24, 2009 deadline.
 
#27 ·
Government compensates concessionaires RM2.97b
by Kevin Tan, 03 Jul 2008 12:26 PM
THEEDGEDAILY

KUALA LUMPUR: The government has paid RM2.97 billion in compensation to four highway concessionaires — PLUS Expressways Bhd, Lingkaran Trans Kota Holdings Bhd (Litrak), Kesas Sdn Bhd and MTD Capital Bhd — for delaying their toll rate increases.

A lion’s share amounting to RM2.09 billion went to PLUS, which operates the North-South highway, said Deputy Works Minister Datuk Yong Khoon Seng. He was responding to an oral question by Lim Lip Eng (Segambut-DAP) in the Dewan Rakyat yesterday.

Litrak received RM630.4 million for operating the Damansara-Puchong highway, Kesas RM150 million for the Kelang-Shah Alam highway and MTD RM98.35 million for the Kuala Lumpur-Karak highway, he said.

“Until now, there is no compensation for the Cheras-Kajang highway (operated by Grand Saga Sdn Bhd) because there was no delay in its toll rate increase, while the New Pantai Expressway, Kajang Dispersal Link Expressway and Kuala Lumpur-Putrajaya highway have not had any toll increase since they started operation,” Yong added.

To a supplementary question from Lim on the total toll collected by the concessionaires, he said it would be replied in writing as he was not informed on the matter earlier.

“We have 23 tolled highways. I will be accused of distortion if I give the wrong information,” Yong said.

On whether the government would take over these highways, he said the government was conducting a study on taking over the highways or reducing their tolls. “When we make a decision, we will inform the parliament,” he added.

Meanwhile, M Kulasegaran (Ipoh Barat-DAP) asked the deputy minister why the government refused to reveal the terms of the concession agreements to the public.

Yong said the government no longer needs to compensate these concessionaires as the traffic volume was more than projected.

However, he said the government had been providing information on the matter in the past few years and stressed that the government was not negligent in having to pay compensation to the concessionaires as there were such provisions in the agreements.

Meanwhile, Minister in the Prime Minister’s Department Datuk Seri Mohamed Nazri Abdul Aziz said the government would enact a comprehensive law to protect whistle-blowers and witnesses.

“The government, through the Attorney-General’s Chambers, is looking into all relevant laws relating to protecting whistle-blowers and witnesses,” he added.
 
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