Malaysia's Infrastructure and Utilities

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Proton to design ‘Malaysian’ taxi
26-06-2008: by Surin Murugiah THEEDGEDAILY

SHAH ALAM: National carmaker Proton Holdings Bhd is likely to be the biggest beneficiary of a government plan to standardise taxis in the country, similar to the black cab in London or the yellow taxis in New York.

Under the plan mooted by the Cabinet recently, existing taxis comprising different makes and models will gradually be phased out and replaced with a standard model that would also be fitted with a fuel-saving device as well as the NGV kit.

Minister of Entrepreneur Development and Cooperation Datuk Noh Omar said the government has asked Proton to design a taxi that could be uniquely identified as a “Malaysian taxi”.

“The existing taxis come in varying sizes and sometimes are not comfortable for foreigners, especially those of bigger built or with extra luggage since the smaller taxis retrofitted with NGV kits have less storage space.”

“Therefore, we need a special model that would have the space and comfort, together with a unique design,” he said.

Speaking to reporters after witnessing Proton and Giatmara sign a memorandum of understanding (MoU) to collaborate for the advancement of automotive education and training for Malaysian youths, Noh said the government hoped that Proton would be able to roll out the taxi model by 2010.

Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said the company would study the request by the government as a change in design required extensive research and development.

He estimated that about 50,000 taxis on the road in Malaysia were of Proton models.

Syed Zainal said there had been a higher demand now for cars fitted with NGV kits, both for taxis and retail vehicles.

He said the national carmaker would start fitting new taxis with the NGV kits at its factory as it would be cheaper and carry a warranty, rather than retrofitting as done elsewhere by taxi owners currently.

He said Proton expected to start rolling out its new taxis with the NGV kit by year-end.

On the MoU with Giatmara, Syed Zainal said Proton started collaborating with training and higher education institutions since 2004 and to date had provided more than 200 vehicles worth more than RM4 million for automotive training purposes.

“This does not include engines, parts and other components as well as training curriculum and instructors that we have sponsored,” he said.

“This is part of our corporate social responsibility as we believe in giving back to the community, and education and on-the-job-training is an effective way to do so,” he said.

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Scomi sees strong demand for buses
Saturday August 9, 2008, By YAP LENG KUEN, TheStar

PETALING JAYA: With the increasing focus on public transport, Scomi Engineering Bhd sees growing demand for new buses, especially in Kuala Lumpur and Penang.

It counts Rapid KL and Rapid Penang as the two major city operators but has seen a host of other intercity operators increasing their orders for buses.

“If we deduct purchases by Rapid KL (which are usually on tender basis), demand for new buses is around 1,000 to 1,500 units per year,'' said Scomi Engineering president Hilmy Zaini.

The company is undergoing improvements in the manufacturing process that will enable it to produce 500 buses a year, and has invested substantially in structural designs that meet the R66 European safety standards.

“An important feature is that we may not be able to afford to move up the value chain, for example, use aluminium body buses that are 40% to 50% more expensive, but we cannot compromise on safety. We have invested a lot of time and money to comply with these European safety standards,'' said Hilmy.

A fabricator and exporter of buses and special purpose vehicles (SPVs) for the past 20 years, Scomi Engineering is affected by rising materials and logistics costs.

“We are still in the adjustment period,'' said Hilmy. “We are absorbing some of the price increases, given the fuel price hike. One of our strategies is to increase the usage of urban public transport for which usage is 25% to 30% in matured cities.

“In comparison, usage in Kuala Lumpur is still very low, possibly in the teens, and we see many people still driving to work,'' he said.

While many speak of the convenience of driving to work, Hilmy believes that there will be a significant shift in people's transportation lifestyle if certain issues were ironed out speedily.

Such issues relate to the integration of agencies responsible for public transport, a single authority to oversee the complete transportation system, fare structure for the different modes of transportation and faster extensions of existing light rail transit (LRT) lines.

There is also a need to relook at the current ownership model of transportation assets to ensure measures to develop the transportation system is not hindered by the fight over lucrative routes at the expense of an efficient system.

This is particularly crucial in view of rising cost pressures and high fuel prices, a situation that would likely lead to more people using public transportation as a daily means for travel.

Within Scomi Engineering itself, the integration of functions is taking shape in a big way in view of its increased export orders and impending opening of new plants overseas,

Already possessing a strong design team in monorail, the company recently merged the teams responsible for fabrication of special purpose vehicles, buses and monorail as well as engineering functions into a strong support service centre.

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State to seek RM40m more for airport extension
Tuesday August 12, 2008 MARTIN CARVALHO at the Malacca State Assembly meeting TheStar

WITH the historic city’s inscription as a World Heritage Site, the state will now push for an additional RM40mil to extend Batu Berendam Airport for the landing of fully-loaded Boeing 737-400 and Airbus A320.

Chief Minister Datuk Seri Mohd Ali Rustam said a request for the additional funding for the ongoing RM131.5mil airport project was submitted to the Federal Gov-ernment under the Ninth Malaysian Plan mid-term review recently.

“Prior approval for the airport’s expansion was given for no reason other than to cater for a sharp increase in health-tourist arrivals here.

“We will request the additional funds to extend the runway by 400m now that we are a World Heritage Site,” he told reporters during a break at the 12th State Legislative Assembly here.

“The planes can travel on eight-hour direct flights from Malacca to regional Asian destinations such as China and Australia,” he said.

However, he said that priority would be given to health tourism, with focus on destinations such as Pekan Baru, Palembang, Jakarta and Singapore.

The airport expansion is scheduled for completion early next year and involves the construction of new departure and arrival terminals and extension of the current 1,372m runway to 1,800m.

However, a runway of 2,200m is needed to allow fully-loaded planes to land.

Earlier, during the sitting, Mohd Ali informed the House that health-tourist arrivals had shot up from 18,295 in 2004 to 67,201 last year.

He thanked Betty Chew (DAP - Kota Laksamana) for her proposal to include Penang as an air-package destination from Malacca to allow both historic cities to be promoted as heritage sites.

“We will focus on health tourists from the southern region and not Medan in Sumatra as I do not want the Penang Chief Minister to accuse me of stealing health tourists away from Penang,” he said.

Chew had suggested that she act as a link between Malacca and Penang to promote the air-package proposal, but drew laughter from the House following Mohd Ali’s reply.

“I do not want you (Betty) to quarrel with your husband because of this,” he quipped.

Meanwhile, Mohd Ali confirmed that AirAsia’s chief executive officer Datuk Tony Fernandez would brief the state executive council on Wednesday on the budget carrier’s routes.

“He informed me that he will do something for Malacca,” he added.

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Tenaga and S’wak Energy bid for Bakun
by Nadia S Hassan & Joy Lee May Yen, 13 Aug 2008 10:44 AM THEEDGEDAILY

KUALA LUMPUR: Tenaga Nasional Bhd and Sarawak Energy Bhd have jointly put in a bid to take over the Bakun hydroelectric dam and the multi-billion-ringgit undersea cable project which will transmit power to the peninsula.

Sources said the proposal, which was submitted to the Economic Planning Unit (EPU) and the Ministry of Finance two weeks ago, has Tenaga and Sarawak Energy taking an equal share in the dam project.

As for the undersea cable project, the two utility companies proposed that the federal government take a share, with the remaining stake to be split equally between Tenaga and Sarawak Energy.

The two parties also proposed that the overhead transmission cables from Bakun to the Sarawak coast be installed by Sarawak Energy while Tenaga will take care of the transmission lines in the peninsula.

“The proposal was submitted two weeks ago to the EPU. They are waiting for feedback,” said a source.

Second Finance Minister Tan Sri Nor Mohamed Yakcop, speaking at the launch of the SME Technopreneur Centre II in Cyberjaya yesterday, confirmed that Tenaga had submitted a proposal for the much-maligned Bakun project, but offered no further details.

Despite uncertainties over who would eventually own Bakun Dam, Nor Mohamed reiterated that the project is on schedule and due to be completed by 2010.

In a related development, Bloomberg quoted Tenaga’s chief executive officer Datuk Seri Che Khalib Mohd Nor as saying that the national electricity company would be willing to take over the cable job since Sime Darby Bhd had declined to do so.

“Since Sime is not interested, it is only logical for Tenaga to offer (to undertake) the construction of the undersea cable so as not to further delay the project,” he told the wire news service.

The cost of completing the dam has been estimated at around RM5.5 billion, while a two-year delay would add another RM500 million to the price tag. The two submarine cables are expected to cost around RM10.9 billion.

Sime Darby, which was set to purchase a 60% equity interest in the Ministry of Finance-owned Sarawak Hidro Sdn Bhd which is building the dam, pulled out in June, citing a conflict with its business strategy.

Apart from owning a stake in the dam, Sime Darby also wanted to own 60% of the cable project. The other shareholders in the company undertaking the cable project were to beTenaga and the Ministry of Finance, each with 20%.

It has been reported that Sime Darby and Tenaga could not come to a power-purchase agreement.

The mammoth 2,400 MW Bakun dam forms a pivotal part of the country’s future power-generation mix. It is expected to supply cheap power to Peninsular Malaysia post-2013, helping to reduce the country’s dependence on expensive fossil fuel. Some 1,600 MW are expected to be channelled through the 676km undersea cables from the Sarawak coast.

The Bakun Hydroelectric Project is located in Sarawak, Malaysia on the Balui River. As part of the project, the tallest concrete-faced rockfill dam in the world would be built. This would also be the largest dam in Asia outside of China. It is expected to generate 2,400 megawatts (MW) of electricity once completed.

The purpose for the dam was to meet growing demand for electricity. However, most of this demand said to lie in Peninsular Malaysia and not East Malaysia, where the dam is located. Even in Peninsular Malaysia, however, there is an over-supply of electricity, with Tenaga Nasional Berhad being locked into unfavourable purchasing agreements with Independent Power Producers. The original idea was to have 30% of the generated capacity consumed in East Malaysia and the rest sent to Peninsular Malaysia. This plan envisioned 730 km of overhead HVDC transmission lines in East Malaysia, 670 km of undersea HVDC cable and 300 km of HVDC transmission line in Peninsular Malaysia.

Future plans for the dam include connecting it to an envisioned Trans-Borneo Power Grid Interconnection, which would be a grid to supply power to Sarawak, Sabah, Brunei, and Kalimantan (Indonesia). There have been mentions of this grid made within ASEAN meetings but no actions have been taken by any party.
From Wikipedia, the free encyclopedia

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9MP development allocation fixed at RM230b
by Surin Murugiah & Joy Lee May Yen, 13 Aug 2008 10:48 AM THEEDGEDAILY

CYBERJAYA: The overall ceiling for development allocation under the Ninth Malaysia Plan (9MP) is fixed at RM230 billion and would not be increased during the upcoming Budget 2009, said Second Finance Minister Tan Sri Nor Mohamed Yakcop.

The total allocation for operating expenditure, however, would be higher when the budget was tabled on Aug 29, he said.

The minister did not reveal the quantum of increase in the allocation but his statement was a fairly strong indication that there would be limited pump-priming activities by the government.

The government when unveiling the mid-term review of the 9MP in June had proposed to increase the ceiling for development allocation to RM230 billion from RM200 billion previously.

It said the increase was to cater for the rising cost of implementing projects as a result of escalating prices of building materials, as well as to account for other priorities such as the regional corridor developments and adequate food production for the country.

Speaking to reporters after the official launch of the SME Technopreneur Centre II here yesterday, Nor Mohamed said the operating expenditure allocation would be higher than in the last budget in view of the higher costs now.

He said the upcoming budget, as in the past, would be people-friendly and would not burden the public. “It will not be unfriendly to anyone,” he said, when asked if corporate tax rates would be reduced.

On whether there would be provisions in the budget to require local banks to restructure housing and car loan repayments, Nor Mohamed said there was no need for such a measure as banks were already proactively coming up with their own schemes.

“The banks are already restructuring such loans to enable their clients to repay lower amounts over a longer period. The domestic banks have responded well and have agreed to restructure loans,” he said.

On economic growth, Nor Mohamed said while gross domestic product (GDP) grew 7.1% in the first quarter of the year, growth in the second quarter was reasonably strong and would be announced during the tabling of the budget.

“Obviously 2H08 will not be as good as the first half, but overall it would register positive growth,” he said.

On a separate matter, Nor Mohamed declined to comment on whether national carmaker Proton Holdings Bhd had re-entered into talks with any foreign party, including Volkswagen (VW), to take up a strategic stake in the company.

In the past few weeks, there have been calls for Proton to reconsider a foreign partnership and the latest to suggest the idea was Prime Minister Datuk Seri Abdullah Ahmad Badawi who said that Proton needed to further improve on its quality and service to buyers.

“If such efforts are not made, Proton may need to enter into a partnership with a car company that is stronger and more capable,” Abdullah had said last week.

The government had last November withdrawn from talks with VW, which would have seen the German car company, the fourth largest in the world, acquiring a strategic stake in Proton.

Nor Mohamed had said then that there was no breakdown in the talks and neither did VW walk away from the negotiations.

He had said that the decision was made by the Cabinet Committee on National Automotive Policy (headed by the deputy prime minister) following a final reappraisal of whether the time was right to enter a strategic alliance with a major carmaker to ensure Proton’s sustainability.

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Ipoh Railway Station (NEW)
by cheeseong

image hosted on flickr


image hosted on flickr

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Kajang-Pajam stretch to be opened on Aug 31
Friday August 15, 2008
Story and photo by CHARLES FERNANDEZ



Smoother traffic: A traffic signage on the Lekas highway
to inform motorists on the opening of the Kajang-Pajam stretch.

THERE is good news for motorists on the highly anticipated 44.3km Kajang-Seremban Highway (Lekas) project as a section of the highway will be opened to traffic on Merdeka Day.

While the entire stretch of the highway will be completed by 2010, motorists will be able the use the Kajang-Pajam stretch for a month for free.

Once completed, the highway which is designed to pass through Semenyih, Pajam, Mantin and Temiang, will link the Seremban Inner Ring Road.

The highway will serve as an effective traffic dispersal route for the congested Kajang and Serem-ban town centres.

The Kajang-Pajam stretch is the second opening after the Kajang-Kajang Selatan Interchange stretch was opened to traffic since March 2005.

Following the opening of this stretch, there was a standstill as the original concessionaire, Kajang-Seremban Highway Sdn Bhd (Kaseh), faced financial problems, forcing construction work to be delayed.

The project was revitalised in November 2006 after a takeover by the new concessionaire.

And while it is learnt from sources that the Kajang-Pajam stretch would be opened by the end of the month, the Malaysian Highway Authority (MHA) director-general Datuk Mohamad Razali Othman refrained from making any comments, leaving it to the Works Minister to make the announcement.

“The minister is overseas. He will make the announcement when he comes back,’’ he said through his personal assistant.

During a question-and-answer session at the Dewan Rakyat last month, Works Minister Datuk Mohd Zin Mohamad said the RM766mil highway would be completed by January next year while the stretch from Kajang South to Pajam would be opened to traffic this month.

The Dewan Rakyat was also told that there were issues pertaining to land acquisition but these issues would not affect the construction of the highway.

The Cabinet had yet to make a decision on the toll rates to be imposed but it is learnt that a closed-toll system will be adopted for the Kajang Selatan Interchange to Setul Interchange and an open toll system from the Setul Interchange to the Paroi Inter-change.

A rest and service area is provided on each side of the highway along the closed-toll section between the Semenyih Inter-change and the Pajam Inter-change.

A traffic surveillance and control system centre located at the Kajang South toll plaza, will ensure effective management of the highway.

The Lekas alignment provides an alternative route to the North-South Highway from the city centre to Seremban..

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Curtin to have RM20m biotech park
Friday August 15, 2008By STEPHEN THEN TheStat

MIRI: A RM20mil state-of-the-art bio-technology park will be set up here for the creation of technology related to bio-science industries.

Deputy Chief Minister Tan Sri Dr George Chan Hong Nam said that assistance from the Federal Government had been sought to realise the project, which would be the first of its kind in northern Sarawak.

“The park will be equipped with the facilities, premises and manpower needed to churn out inventions related to bio-technology.

“Researches and experiments will focus on bio-science, such as creating fuel from agricultural waste, research on peat swamps and soft soil.

“The park will be in Curtin University of Technology Sarawak campus here. Curtin has agreed to allocate RM6mil as research funds. We are seeking federal grants of RM6mil,” he said in an interviewed.

Dr Chan, who is State Industrial Development Minister and State Agriculture Modernisation Minister, said he wanted the bio-tech park to focus on projects of value for common folk.

“Come up with inventions and technology that will help farmers and rural folk,” he said.

Specialists from the Curtin Australia campus in Perth will come to Sarawak to help establish the park and provide technical guidance.

Dr Chan said that Curtin Australia had done a lot of bio-tech research and Sarawak could adapt such technology to suit local needs.

On a related matter, he said that Curtin Sarawak has created technology to convert oil-palm biowaste into hydrogen gas fuel.

Trials are being carried out at the Curtin campus to convert biomass from other crops into similar fuel, he added.

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AirAsia To Start Operation In Melaka's Bukit Berendam Airport Dec 8
Aug 13 2008

MELAKA, Aug 13 (Bernama) -- Low cost carrier AirAsia is expected to start its operations this December 8 at Melaka's Batu Berendam Airport (LTBB) which is undergoing a facelift worth RM131.5 million.

Chief Minister Datuk Seri Mohd Ali Rustam said six destinations had been identified by Air Asia for its initial operations comprising four places in Sumatra and two domestic destinations.

"The destinations jointly agreed upon, using the Boeing 737 aircraft, are Palembang, Pekan Baru, Padang and Medan in Sumatra, and Pulau Pinang and Langkawi," he told reporters after chairing the Exco meeting here Wednesday.

Also present at Wednesday's event was Air Asia chief executive officer Datuk Seri Tony Fernandes, chairman of Air Asia Datuk Aziz Bakar and the general manager of Malaysia Airports Bhd, Abdul Rahman Karim.

Mohd Ali said the four major towns in Sumatra were selected based on their potential for medical tourism while Pulau Pinang and Langkawi for their popularity as tourist destinations.

"Among other destinations being suggested are Jakarta, Kota Kinabalu and Nanjing in China and we have opened negotiations to other airline companies besides Air Asia which showed an early commitment to use the LTBB," he said.

The expansion and upgrading work on LTBB which started last April is expected to be completed in April next year and a major aim is to provide facilities to medical tourists.

The number of medical tourists who sought medical assistance in the specialist hospital in Melaka is estimated to have gone up to more than 67,000 people last year compared with 18,000 people in 2004 with most of them coming from Sumatra.

Work on LTBB is being carried out by the Uni-Integrated consortium which will construct a new terminal covering 7,000 sq metres and is expected to be equipped with various facilities to cater to both domestic and international flights.

Mohd Ali said the Batu Berendam airport will be able to handle a capacity of 1.5 million passengers a year, adding that some 500,000 visitors were expected in the first five years.

On the runway, which would have to be extended by 400 metres to 2,200 metres from the current 1,800 metres, he said the contractors involved in the expansion of LTBB had agreed to first bear the cost of RM40 million.

"I am giving the guarantee to the contractors that the state government will pay the RM40 million after a period of several years," he said.

He said that the application for the RM40 million has been also submitted to the Transport Ministry and is currently under consideration.

The extension of the runway to 2,200 metres is in line with international specifications for the safe and comfortable landing of an Airbus 320.

Meanwhile, Tony said Air Asia was ready to cooperate with the Melaka government. He also described Melaka as having great potential as a tourist destination especially in medical tourism.

"Coincidentally, Dec 8 is also the anniversary date of Air Asia and we are ready to take on a role in LTBB and hope to transport many tourists through the LTBB," he said.

-- BERNAMA

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REDtone launches WiMAX service in Sabah
Published: 2008/08/20 BusinessTimes

THE people in Sabah would be the first to experience high-speed wireless Internet access in East Malaysia with the launch of the Worldwide Interoperability for Microwave Access (WiMAX) technology by REDtone International Bhd.

According to REDtone's group chief executive officer Zainal Amanshah, the service would be available in most high-density areas of the city on a 2.3 GHz band.

“By selectively focusing on high density areas, we are committed to achieve 25 per cent coverage of the population in Sabah this year.

“Customers in East Malaysia can expect to pay up to 40 per cent less for REDtone's WiMAX compared to traditional leased lines.

“By taking the lead in bringing down the price of wireless high-speed broadband service, we'd like to think REDtone will be the catalyst in driving in the pricing down further to make the service even more affordable not only to the corporate and SME sectors, but to consumers too,” he said at the WiMAX Soft Launch and Agreement Signing between REDtone and Motorola Electronics Sdn Bhd in Kota Kinabalu today. — Bernama

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New highway to complete on schedule
Friday, August 22nd, 2008



NEW HIGHWAY: The bold lines on the map denoting
both the Original and Revised Matang Routes

KUCHING: The new highway leading to the proposed ‘mini Putrajaya’ or Sarawak’s new Federal Administrative Centre in Rambungan near Matang is expected to be completed in December.

The current progress status of the highway, consisting of 18km double-carriageway and a gateway bridge modelled after the one in the Federal Territory of Putrajaya, is 76 per cent.

This highway, which stretches from Rambungan to Taman Matang Jaya, was the Original Matang Route.

The 13.3km Revised Matang Route, which is from Taman Matang Jaya to Demak (not far from Sarawak Stadium), is currently four per cent completed and is expected to be ready by March 2011.

Both the Original Matang Route and Revised Matang Route, costing a total RM325 million and spanning a total 31.3km, are being built and designed by local firm Zecon Berhad.

Zecon executive director Abang Azahari Osman said yesterday both projects are progressing according to schedule.

“Upon completion, the road will provide free-flow access to Rambungan.

“It will also help to decrease the traffic volume thus providing relief from congestion on the existing Matang Road, especially for those living in Matang,” he told reporters at the project site yesterday.

Earlier, Azahari held an on-site briefing on the project for officers from JKR.

There was also a group from Saudi Arabia construction company, Bin Jarallah Group, led by its senior consultant Dr Hazem Mazen, brought there by Zecon group managing director Datuk Zainal Abidin Ahmad.

The Saudi group is in Kuching to hold talks on joint venture with Zecon.

According to Azahari, the Original Matang Route was revised because the state government wanted to avoid traffic congestion at the Petrajaya roundabout leading to the Satok Bridge.

“The government had vide the Letter of Acceptance of the Revised Matang Route, varied and substituted the terms, provisions, design, scope of work, specifications and other details of the Main Contract, which resulted in the Original Matang Route being shortened by 7km, from 25km to 18km from Rambungan up to Taman Matang Jaya.

“The said 7-km two-lane double carriageway which was to link with the city of Kuching at the Petrajaya roundabout, is replaced by a 13.3 km two-lane single carriageway Revised Matang Route,” he said.

Works on the Original Matang Route started in 2002 while works on the Revised Matang Route started in July last year.

According to him, works to lay in the premix for the lanes for the highway in Original Matang Route would commence next month.

“As for the gateway bridge over Sungai Salang, it is also the first concrete arch bridge in Sarawak. It is almost similar to the one in Putrajaya, and according to the wishes of then Prime Minister Tun Dr Mahathir Mohamad when he came to Rambungan years ago,” he said.

He also expressed confidence that the new highway would pave the way for direct Kuching-Lundu access and enhance the promotion of agriculture and tourism development in the local area.

Rambungan, which is near Lundu, is the site for the 2,020-acre proposed new Federal Administrative Centre for Sarawak.

Meanwhile, Zecon corporate affairs private manager Brandon Goh said public knowledge on this project had been very limited as it was almost not visible from the existing road.

“That is why we invited the media to come here, so that the public will be able to know about this project, especially those residing along Matang,” he said.

— Bernama

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Brunei Sultan keen on big stake in Iskandar
By : Shahrum Sayuthi and Anis Ibrahim



Prime Minister Datuk Seri Abdullah Ahmad Badawi and Sultan Hassanal Bolkiah
of Brunei being briefed by UEM managing director Wan Abdullah Wan Ibrahim
(centre) on the Puteri Harbour project which is part of the Iskandar Malaysia
development corridor project. With them are Johor Menteri Besar Datuk Abdul
Ghani Othman (second from right) and Domestic Trade and Consumer Affairs
Minister Datuk Shahrir Abdul Samad (right).

JOHOR BARU: Brunei Investment Group, which represents the oil-rich sultanate's key economic interests, is likely to join the ranks of major investors in Iskandar Malaysia.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the Sultan of Brunei, Sultan Hassanal Bolkiah had shown keen interest in the progress of the development corridor and indicated the possibility of making investments.

Sultan Hassanal Bolkiah, who was here for the two-day annual leaders' consultation between Brunei and Malaysia, was yesterday given a progress briefing of Iskandar Malaysia and a tour of the development corridor.

"The sultan seems to be very pleased with what he was told about the development corridor's progress and had indicated strong possibilities of Brunei investing there," Abdullah said, after a sending-off ceremony for Sultan Hassanal at the Senai Airport.

He said a team from Brunei Investment Group would visit Iskandar Malaysia soon for a definite assessment on the potential investment opportunities.

"Another team from the group came here earlier and their initial assessments of Iskandar Malaysia was part of the reason why the sultan had chosen to come here to have a personal look at the progress of the development corridor."

Abdullah said the sultan had expressed a positive view about the development corridor.

Sultan Hassanal had during his tour of the development corridor yesterday shown particular interest in the bio-technology investment section of Iskandar Malaysia. It was learnt that an investment in that field could amount to RM5 billion.

Besides Abdullah, the sultan was accompanied at the briefing and tour by Johor Menteri Besar Datuk Abdul Ghani Othman and Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad.

On the sultan's visit, Abdullah said it was a success as both countries had come to an agreement to settle outstanding bilateral issues in an amicable manner, particularly on the overlapping claims along their common land and maritime border.

The agreement would be sealed in an exchange of letters at a later date.

Brunei had laid claims on several border areas with Sarawak, such as Limbang.

It is also one of many nations, including Malaysia, to lay claim to the disputed Spratly Islands.

Several small islands located between Brunei and Labuan, including Kuraman island, are contested between Brunei and Malaysia despite these being internationally recognised as part of Malaysia.

Sultan Hassanal and his entourage attended a luncheon hosted by the Sultan of Johor at Istana Bukit Serene before their departure.

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New investment wave to hit Malaysia
By Sharen Kaur Published: 2008/09/02 BusinessTimes

Up to RM4 billion of FDI is expected to come from the Middle East, South Korea, Hong Kong, China and Taiwan, and is for land acquisitions in the growth corridors

UP TO RM4 billion of foreign direct investment (FDI) is expected to flow into the country over the next six months as more investors see Malaysia as a good investment destination amid concern over a global economic slowdown.

Its transparent laws on land matters, wide use of the English language and value-for-money destination make the country attractive, an industry observer said.

Business Times understands that the inflow of FDI will come from the Middle East, South Korea, Hong Kong, China and Taiwan, and is for land acquisitions in the growth corridors, including the Klang Valley.

The deals are believed to be brokered by a local property firm with international interest.

"These new foreign investments could translate into a gross development value (GDV) exceeding RM15 billion," a source close to the deals told Business Times.

It is learnt that a Korean developer has acquired 0.4ha in Jalan Kia Peng, Kuala Lumpur, for RM2,500 per sq ft to build a luxury one-block residence for around RM1 billion.

"The land was acquired at a record price. The residences will be a stunning landmark within the Kuala Lumpur City Centre enclave and may break the record for prices of high-end products.

"The developer aims to sell the units to Koreans and locals," the source said.

The Iskandar Malaysia growth corridor in Johor, which has attracted RM33 billion in investments, or 70 per cent of the Johor state government's target of RM47 billion to date, is also experiencing a new wave of investments.

The source said that more investments were expected to come from the United Arab Emirates, Qatar and Bahrain as investors look for prime properties like condominiums and offices in south Johor and in KLCC and Mont' Kiara, Kuala Lumpur.

Companies from the Middle East - such as Kuwait Finance House, Aldar Properties, Mubadala Development Co, Millennium Development Co, Damac Properties and Limitless Dubai - are already investing in Iskandar Malaysia.

Sabah, which is experiencing a mini-boom after the launch of the Sabah Development Corridor earlier this year, is attracting investors from South Korea, Hong Kong and Taiwan.

Some RM500 million worth of investment is expected to be made by the first quarter of next year for resort and the broader property development," the source added.

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PM to inspect progress of projects under Budget 2009
Thursday September 4, 2008
TheStar

KOTA KINABALU: Prime Minister Datuk Seri Abdullah Ahmad Badawi will personally inspect the progress of various development projects planned by the Government under Budget 2009.

He said good plans would be of no use if the implementation and delivery were not carried out properly.

“I will personally visit project sites in Sabah to see the progress. If it is not done, I want to know why,” he said in a speech during a buka puasa with some 2,000 people, including state leaders, here yesterday. He also distributed alms to 100 children from three orphanages in Sabah.

Abdullah said among the targets of Budget 2009 was to improve the livelihood of the people in the face of current global challenges.

He said he was confident Malaysia’s economic growth rate would continue at moderate levels, despite higher fuel prices and the food crisis.

Abdullah added that measures taken in the budget included ensuring productivity levels increased through the strengthening of human capital, as well as providing incentives.

He said the Government would give the required assistance for employers to improve the capability of their employees, and to raise the standard of living of the people.

Earlier, Chief Minister Datuk Musa Aman thanked Abdullah for providing Sabah with the allocations for the much-needed infrastructure and rural development projects in the state.

He said that this should put a stop to politicking, including issues like political crossovers.

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USM granted apex status
Wednesday September 3, 2008 MYT 7:30:10 PM
By SIMRIT KAUR and KAREN CHAPMAN
TheStar

PUTRAJAYA: Universiti Sains Malaysia (USM) has been granted apex status and hundreds of millions of ringgit in additional funding to transform it into Malaysia's first world-class university.

Higher Education Minister Datuk Seri Mohamed Khaled Nordin said that both quantitative and qualitative criteria were used to select USM under the accelerated programme for excellence (apex).

"The selection committee evaluated each university's state of readiness, transformation plan and preparedness for change.

"After a thorough evaluation, the committee decided that only one university truly met all the criteria, namely USM,'' said Khaled Wednesday in a press conference at his ministry. The Cabinet agreed to the decision at its meeting on Aug 27.

The university given apex status is one that has the greatest potential among Malaysian universities to be world-class, and as such, would be given additional assistance to compete with top-ranked global institutions, added Khaled.

With apex status, USM will be expected to move up the World University Rankings with a target of top 200 in five years' time and top 100, if not top 50, by 2020, he said.

In last year’s Times Higher Education-QS World University Rankings, Universiti Malaya (UM) was the highest ranked Malaysian university at 246, followed by USM at 307, Universiti Kebangsaan Malaysia (UKM) at 309 and Universiti Putra Malaysia (UPM) at 364.

A selection committee headed by former Universiti Malaysia Sarawak vice-chancellor Prof Emeritus Datuk Dr Mohamad Zawawi Ismail short-listed USM, UM, UKM and UPM.

USM's transformation plan, entitled Transforming Higher Education For A Sustainable Tomorrow focused, among other things, on diagnostics, medical biotechnology, waste management, pharmaceuticals, nano technology, carbon nanotube, membrane technology and vaccinology.

"I hope the apex status will spur other universities to strive for excellence too. It's not about selecting the oldest university but choosing one with a doable plan that can help us transform our higher education,'' said Khaled when asked why UM was not selected.

The other universities that applied for apex status were International Islamic University Malaysia, Universiti Sains Islam Malaysia, Universiti Teknologi Malaysia, Universiti Teknologi Petronas and Universiti Tenaga Nasional.

Khaled said that two more apex institutions would be selected among centres of excellence and newer, more specialised universities.

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Analysis: Malaysia Has First Class Infrastructure But Third World Salaries
September 12, 2008 19:13 PM
By G. Gnanalingam



KUALA LUMPUR, Sept 12 (Bernama) -- After 50 years of development, we can say that we have one of the world's best infrastructures in terms of roads, airports, ports and even the Multimedia Super Corridor.

We only realise this until we travel overseas or to neighbouring countries or when we get visitors from the United States or Europe.

As visitors leave the Kuala Lumpur International Airport, travel on the highway, visit KLCC or the surrounding shopping complexes, they can immediately access the Internet. They all say we are better than the developed countries.

The government has done a lot in that we have a roof for every head, a desk for every school-going child, a bed for the sick and even jobs for 2.5 million foreign workers!

Lately, the government has been taking strides to improve the salaries of the government servants while businessmen have had to increase the cost of food items at groceries or restaurants.

Whilst we have first class infrastructure, we still have third world salaries.

While the economy has grown in the last 50 years -- at 6.0 to 8.0 percent annually, salaries have not matched these types of growth. As such, most of the private sector companies still pay third world salaries.

We cannot afford to measure ourselves against the McDonald's index in terms of how many people can afford to buy McDs. We can't even say we can use the Astro index in terms of how many people can afford an Astro at home, which I believe is less than 10 percent.

It becomes worse when we say how many percent of our population can afford to buy computers for their homes.

We can ask for first class infrastructure but can the population afford to use it?

The key question is: can the population afford handphones, highway tolls, computers and high taxes on cars?

As such, to keep astride with our economic growth and our super infrastructures, private sector salaries need to be increased.

It is sad that after 50 years, we still don't have a minimum salary structure and we bring in foreign workers whom we are happy to pay below RM600.

On top of this, we have 950,000 Malaysians working overseas, including 150,000 professionals, because the salary scales abroad are better.

Maybe we have to compare not only taxation in other countries, and ask the government to reduce income tax and corporate tax.

The government has done well to increase the salaries of civil servants by 35 percent.

The private sector complains bitterly that petrol prices have gone up by 100 percent, steel prices up by 100 percent and food prices by 50 percent. However, they try to contain salary increases between 6.0 and 10 percent.

We need to have a minimum wage urgently because even at RM600, who can afford to live in Malaysia?

Just look at cost of rentals for homes and the cost of a loaf of bread for breakfast, lunch and dinner. This is even before we add the cost of transportation, amenities at home and the cost of educating our children.

In the last 50 years, salaries in Singapore have gone up by 7.5 times that of Malaysia.

Fifty years ago, our salaries and currencies were the same. Today, salaries are three times higher and the currency is 2.5 times higher across the Causeway.

Comparatively, the Hong Kong people are earning more than the Singaporeans and the Japanese are earning more than the Hong Kong people.

The government is responsible for first class infrastructure and as well as the hefty 35 percent increase in government salaries.

Who is responsible for third class salaries in Malaysia? Who is driving away the more than a million Malaysians who work overseas? Don't we need that human capital at home?

-- BERNAMA

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RM4bil needed just for Sarawak roads
Sunday August 31, 2008 TheStar

MIRI: Sarawak will need up to RM4bil just to build roads to facilitate development of the Sarawak Corridor of Renewable Energy (SCORE).

Deputy Chief Minister Tan Sri Dr George Chan Hong Nam said the state was grateful to the Federal Government for the RM3.3bil allocation under Budget 2009 to upgrade basic amenities and infrastructure.

But he warned there might be a need for more funds if SCORE was to be developed on the scale as planned.

“The RM3.3bil is much needed by our state and we are glad to be given such an amount. It will help us implement high-priority projects in rural areas like water supply, electricity generation and construction of access roads,” he said yesterday.

He said necessary basic infrastructure including roads, water and electricity would have to be in place as soon as possible to enable investors to start their projects.

“Based on initial calculations, construction of the roads within the SCORE perimeter alone will cost at least RM4bil. We will seek more federal funding as and when necessary.”

He was commenting on whether the Budget allocation for Sarawak under basic amenities and infrastructure development was enough.

Dr Chan said it was appropriate that Sarawak was given the highest allocation among the states because it was the biggest and most complicated logistics-wise.

“Furthermore, rural areas in Sarawak are far behind the other states in terms of even the most basic facilities.”

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Need For More Integrated & Effective Planning For Public Transport System
September 18, 2008 21:42 PM

KUALA LUMPUR, Sept 18 (Bernama) -- There is a need for a more integrated and effective planning for the public transport system to tackle the country's public transportation woes.

Speakers at the National Summit on Urban Public Transport said to ensure the viability and sustainability of transportation services in the long term, there was a need to develop a masterplan in cooperation with the transport operators and the government.

Chairman/managing director of Konsortium Transnasional Bhd, Datuk Mohd Nadzmi Mohd Salleh, said while an increase in petrol prices may encourage more people to use public transportation system, it would not last long as an inefficient public transport system would deter people from opting for the public transport on a long-term basis.

"To provide a more efficient transport system, there is a need to integrate the bus and rail with other forms of transportation," Mohd Nadzmi said at the session entitled "Toward An Efficient Public Transport System".

Another speaker, past president of Malaysia Economic Association, Datuk Dr Thillainathan Ramasamy, said there was a need to improve the transportation system.

"Investments are needed to interface different train systems and a mini bus feeder system is needed to ensure a more efficient and cost-effective system.

"Improvements will greatly reduce losses in the economy due to time lost in commuting between Klang Valley and from enormous stress due to traffic congestion," he said.

Chief executive officer of Rangkaian Pengangkutan Integrasi Deras Sdn Bhd, Suffian Baharuddin, suggested a policy to address whatever shortcomings in the current bus routes and network coverage.

"The current challenges are that the light rail transit and rail network in Klang Valley are still young compare to other cities. They require high initial costs to develop," Suffian said.

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Ultimatum on bridge
Wednesday September 17, 2008 By TAN SIN CHOW TheStar



Second link: An artist’s impression of the Second Penang Bridge
which is expected to be completed in 2011.

GEORGE TOWN: Take it or leave it! That’s the ultimatum given to UEM Builders Bhd by :Jambatan Kedua Sdn Bhd (JKSB), a special purpose vehicle (SPV) established by the Government to supervise and fast track the second Penang bridge project.

JKSB managing director Tan Sri Zaini Omar said UEM had been given a two-week grace period, effective from Monday, to accept the terms for the construction of the project.

Under the terms, a RM1.3bil contract will be awarded to UEM, one of the three contractors for the project.

“That’s the offer, and if they do not accept, we have to look at other means.

“We will call for a restricted tender if UEM does not accept our offer,” he said at the briefing on the latest progress of the project at Komtar yesterday.

It is learnt that UEM did not accept the offer as the contract rendered was not financially viable.On another matter, Zaini said they saved more than RM300mil after re-designing the structure of the bridge.

He said five per cent of the work had already started, with dredging being carried out and temporary jetties set up at the Batu Maung site.

Construction works will be in full swing within two months once details have been finalised with China Harbour Engineering Company Ltd (CHEC) by end of the month,” he said.

The Chinese company is another contractor awarded a RM2.3bil contract to build the sub-structures of the bridge.

“Any construction carried out below the bridge will be handled by CHEC,” he said, adding that the signing of the agreement is expected to take place by end of October.

A third contractor will be appointed through restricted tender and given a RM750mil contract for works carried out at the land portion of the bridge in Batu Maung and Batu Kawan.

He said the project, which was scheduled to commence in June last year, was behind schedule and is now expected to be completed within 40 months or the end of 2011.

Zaini said the cost was still priced at RM4.3bil but this would depend on the fluctuating prices of fuel, cement and steel, adding that the JKSB might also tender the operation once the bridge is completed.

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UEM given two weeks
by Regina Williams, 17 Sep 2008 9:53 AM THEEDGEDAILY

PENANG: UEM Builders Bhd has been given two weeks from Monday to accept the terms for the RM1.3 billion super-structure job portion for the Second Penang Bridge, failing which it will be offered to other parties via restricted tender.

Tan Sri Zaini Omar, the managing director of Jambatan Kedua Sdn Bhd (JKSB), the special purpose vehicle set up to take over the job, said the Economic Planning Unit (EPU) last week revoked the letter of intent given to UEM Group Bhd in August 2006 to carry out the project, following the new terms being offered to the company.

Zaini, the former director-general of the Public Works Department (PWD), said the government has capped the project at RM4.3 billion but with a variation of price (VOP) option in the event of rise in the cost of materials.

JKPP, an entity under the Ministry of Finance (MoF), was established to take over the Second Penang Bridge project from UEM Group, which was awarded the job on a build, operate and transfer basis in July 2007. UEM group, which currently owns the existing bridge, was also given the concession to operate the second bridge.

UEM’s portion to build the super-structure is RM1.3 billion while the China Harbour Engineering Company (CHEC) has been offered a RM2.2 billion contract to construct the sub-structure and mainspan jobs. Another RM800 million in land works will also be offered via restricted tender.

Zaini, who gave a briefing to Penang Chief Minister Lim Guan Eng, executive councillors, members of parliament and journalists on the latest developments on the project said the decision to offer UEM Builders Bhd the RM1.3 billion job was final.

Asked if it was a take it or leave it situation, Zaini said: “I would not want to put it that way, but yes, they will be offered the RM1.3 billion super-structure contract. It is up to UEM... if they don’t want the job, we will open it via restricted tender to others.

It has been reported that UEM Builders is not agreeable to the price because it was not commercially viable to undertake the job at such a price. The Edge weekly had reported that UEM Builders was prepared to undertake the job if the price was higher or alternatively prepared to undertake the portion given to CHEC.

Zaini said that the negotiations with CHEC for the RM2.2 billion sub-structure and mainspan portions have been completed.

“We hope to sign the agreement with CHEC by the end of the month,” he said adding that the US$800 million (RM2.8 billion) loan agreement with EXIM Bank of China would be signed by the end of October.

Earlier the Chinese contractors had expressed concern should the bridge project delay further, the Chinese government could withdraw the funding.

Zaini said the rest of the project, which will involve the land portion costing RM800 million, would be offered via restricted tender by the end of the year. He said according to the general loan agreement sealed earlier, CHEC must be given 50% of the entire project.

Zaini also said that the design of the bridge has also been modified to reduce costs by at least RM300 million, including replacing a clover flower interchange to a diamond interchange in Batu Kawan, which would result in a savings of RM80 million.

“Our intention is to bring down the cost as low as possible, with no frills, just a basic bridge, similar to the existing Penang Bridge and also to complete the project as soon as possible. So far, 10% of the works have been completed and we are a year behind schedule.

“Until now, we are still on track to complete the project by the end of 2011 but not on Jan 1, 2011 as announced earlier,” Zaini added.

He said to keep cost of the bridge to a minimum, the government has capped the internal rate of return (IRR) for the project at 6%, just enough for the costs to be covered.

He also did not discount the possibility that once completed, JKSB would also be given the concession for the bridge. On the toll rates for the bridge, Zaini said it would be similar to the existing bridge.

“Initially, it was proposed at RM9.40 but we have agreed to maintain it according to rates for the first bridge,” he added.