KUALA LUMPUR, 16 NOVEMBER 2012 - The Prime Minister, YAB Dato' Sri Mohd Najib Tun Abdul Razak, today announced 20 projects under the National Key Economic Areas (NKEAs) as well as the three Economic Corridors. Combined, the projects will contribute RM10.08 billion of GNI in the year 2020 as well as attract investments of RM26.09 billion and create 64,282 jobs by 2020.
The 11 key projects in seven National Key Economic Areas (NKEAs) will contribute RM1.129 billion of GNI in the year 2020 as well as attract investments of RM6.68 billion and create 40,021 jobs by 2020.
The seven NKEAs are Oil, Gas and Energy; Greater KL/KV; Communications Content and Infrastructure; Business Services; Healthcare; Tourism and Education.
In the last Progress Update for 2012, he also announced the progress of the Competition, Standards and Liberalisation Strategic Reform Initiatives (CSL SRI) as well as the Narrowing Disparities SRI.
Also highlighted are nine projects under three corridors, the Sabah Economic Development Corporation (SEDC), Northern Corridor Implementation Authority (NCIA) and Iskandar Region Development Authority (IRDA), which will complement the Economic Transformation Programme (ETP) in propelling Malaysia's economic growth. The 9 projects will contribute RM8.95 billion of GNI in the year 2020 as well as attract investments of RM19.41 billion and create 24,261 jobs by 2020.
In his speech, Najib said Malaysia has stood out to many investors as an attractive investment destination in times of economic turbulence, because of the country's growth, and commitment to structural changes.
He also said the benchmark FTSE Bursa Malaysia KLCI index has reached more fresh peaks this year than any other year, cumulating in a historic high of 1,675.69 points recently on 1st November.
On top of this, Malaysia's initial public offering (IPO) market is back on the radar of global investors. Listings of Felda Global Ventures Holding Bhd, IHH Healthcare Bhd and Astro Malaysia Bhd have made Malaysia one of the most attractive IPO centres globally.
"In addition, our commitment to structural changes is validated by the World Bank's Doing Business 2013 report which saw Malaysia leaping to 12th position in global competitiveness."
"The report, which surveyed 185 economies, also ranked Malaysia 1st in "Ease of Getting Credit" and 4th in "Protecting Investors". This puts us ahead of countries such as Germany, Japan and Taiwan," he added.
The new ranking of 12th position is a significant improvement over last year's 18th position and 23rd in the year 2010, continuing a trend of improving competitiveness which began four years ago.
The Grant Thornton Global Dynamism Index (GDI) also ranked Malaysia as the second best country in Asean for dynamic growing businesses. The strong positioning was a result of good ratings in key areas of business operating environment, economics and growth, and financing environment.
However, Najib also said, "While we are making good progress on all fronts, we need to expedite the structural reforms to make Malaysia, and Malaysians globally competitive. It's absolutely critical to build an environment that's totally conducive for individuals and companies to build and strengthen their global competitiveness as soon as possible."
Malaysia dropped four rankings from 21st to 25th in World Economic Forum's (WEF) Global Competitiveness Report 2012-2013, after substantially improving its ranking last year.
"This is a glaring indicator that we cannot afford to be complacent as the other countries are continuously improving their competitiveness. I am even more determined to work towards improving our competitive position especially in the areas of technology and innovation."
The 11 ETP projects announced today are as follows:
NKEA: Oil, Gas and Energy
Seaport Worldwide Sdn Bhd, a wholly-owned subsidiary of Johor Port Berhad is developing the RM1.02 billion Tanjung Bin Petrochemical and Maritime Industrial Centre in Pontian, Johor.
The development comprises prime and strategic land covering a total area of 2,255 acres (913 hectares). Gazetted as a Free Trade Zone area with a 99-year leasehold tenure, this centre will complement other projects in Johor which aim to drive Malaysia's ambition to be Asia Pacific's hub for petroleum storage and trading.
NKEA: Greater KL
Nusa Gapurna Development Sdn Bhd will be driving a RM5.23 billion property development project to regenerate and revitalize the old township of Petaling Jaya.
The PJ Sentral Garden City development which will span across 40 acres is poised to be the new green central business district of Selangor, supporting Kuala Lumpur and other business hubs around the city and state.
NKEA: Communications Content & Infrastructure
GPSTech Solutions Sdn Bhd will roll out the Malaysian Public Transportation System (MyPUTRAS), a free online smartportal and smartphone application. Amongst others, the app will provide real-time tracking of buses, showing the estimated time of arrival and departure, and WiFi internet access on buses.
With a projected investment of RM16.29 million, services will be made available by end December 2012. The initial roll-out will be focused on providing bus information for the Klang Valley. Eventually, the service will be available for rail and taxi services, parking, and public communication facilities nationwide.
Transport providers participating in the first phase roll-out include Syarikat Prasarana Negara Berhad (RapidKL, LRT, Monorail) and GO-KL.
MyPUTRAs was made possible by public-private sector collaboration involving the Malaysian Communications and Multimedia Commission (MCMC) and the Land Public Transport Commission (SPAD) with technology support from MIMOS, Prasarana Negara Berhad, Malaysian Technical Standards Forum Berhad, REDtone, DiGi and U-Mobile.
NKEA: Business Services
CRF Computer Recovery Facility Sdn Bhd (CRF) is investing RM15.5 million in its 60,000 sq. ft. purpose built data centre facility and network infrastructure, located in Petaling Jaya. This purpose built Tier III data center offers one-stop business continuity data centre services that include co-location, hosting, professional managed services, work space and cloud computing.
Amanjaya Specialist Centre Sdn Bhd plans to invest RM40.3 million to build a 108-bedded multidiscipline specialist Hospital in Sungai Petani, Kedah. The Amanjaya Specialist Centre Green Hospital is expected to be operational in the first quarter of 2014.
Love On Wheels Healthcare Services Sdn Bhd (LOWHS) is a fully integrated mobile healthcare service provider. The company complements the existing healthcare providers, in providing the avenue for the continuity of the patient's recovery process at the patient's preferred location, be it at home or the workplace. LOWHS is expected to invest RM68.56 million in this project.
Medical Innovation Ventures Sdn Bhd will invest RM8.92 million in its In-Vitro Diagnostic (IVD) project. The company plans to ramp up its market share in IVD by focusing on tropical infectious diseases by commercializing local technologies, driving the industry value chain, continuous investment in R&D and collaborating with universities.
Vigilenz Medical Devices Sdn Bhd will invest RM25.8 million to extend its current product line and through R&D, introduce new products such as synthetic sutures, hernia mesh, wound care, haemostats and anti-adhesives.
Straits Orthopaedics (Mfg) Sdn Bhd will invest RM76.38 million and plans to expand its product offerings to include spinal implants and joints replacement products.
These new products require medical-grade forgings, castings and Titanium Type 2 coatings. The combination of machining, forging, casting and all other surface finishing capabilities will make Malaysia a one-stop hub for a comprehensive range of orthopaedic devices for MNC orthopaedics companies.
Jewel of Mabul Development Sdn Bhd, the developer of Alorie Lepa Lepa will build an exclusive overwater resort at the southern tip of Mabul island.
The RM168.4 million Alorie Lepa Lepa resort will feature 88 pool villas - each villa has a private pool - across 80 acres of submerged land. The resort would include an underwater restaurant, a spa, scuba diving centre and a marine conservation centre.
Construction of the resort began in the last quarter of last year and is expected to be completed in the first quarter of 2014.
The Government has provided a number of incentives to encourage the growth of International schools such as Investment Tax Allowances for international schools. Companies that establish new international schools or existing international schools undertaking expansion are eligible to apply for an Investment Tax Allowance of 100 percent on the qualifying capital expenditure incurred within a period of 5 years.
As a result, the number of international schools has been growing at a rate of 14.34% over the past five years, driven by demand in the expatriate community as well as the removal of 40% quota on Malaysian student enrolment in international schools.
To encourage more international student enrolment in line with Malaysia's aspiration to be regional education hub, the Government is working with the National Association of Private Educational Institutions (NAPEI) and Education Malaysia Global Services Sdn Bhd (EMGS).
The Ministry of Education, NAPEI and EMGS are working on plans to brand Malaysian International Schools, and to assist local as well as foreign recruitment agents in positioning Malaysia as a destination for primary and secondary schooling. Key target markets include South Korea, Indonesia, China, Turkey, and Singapore.
SRI: Competition, Standards and Liberalisation
The Prime Minister also announced the liberalisation of six more sub-sectors. These subsectors are legal services, medical specialist services, dental specialist services, international schools, private universities and telecommunications - Network Facilities Providers (NFP) and Network Services Providers (NSP).
This means that a total of 15 out of the 17 sub-sectors announced during the 2012 Budget are now liberalised. The remaining two - engineering and architectural services, as well as a new sub-sector, quantity surveying - will be announced once the amended legislation giving effect to the liberalisation is passed.
In addition to liberalisation, the government places great importance on ensuring that local companies align to international standards, and therefore, able to compete in the global marketplace.
In line with this, the Ministry of Health (MOH) have introduced MeSTI, a food safety programme to facilitate compliance with food hygiene and safety requirements by the micro, small and medium-scale food industries.
The objective of MeSTI which stands for "Makanan Selamat Tanggungjawab Industri" or "Food Safety is the Responsibility of the Industry" is to put in place a system for the maintenance of hygiene and process control including for food safety assurance and food traceability.
MeSTI compliance is also a building block for the micro and SMEs in Malaysia to be a major producer and exporter of food products. Importing countries are increasingly setting standards or requirements for processed food imports through imposition of international standards such as Good Manufacturing Practices and the Hazard Analysis and Critical Control Points.
SRI: Narrowing Disparities
Under the Narrowing Disparities SRI, we created a programme called TERAS which is driven by TERAJU. The TERAS programme aims to develop market friendly, transparent, needs and merit based affirmative action to uplift Bumiputera SMEs by targeting high-potential Bumiputera companies to thrive in the next five to ten years.
Up to date, there is a total of 246 companies that were identified under this programme fulfilling certain criteria. From these, 15 companies have received approval for the TERAS fund with a loan amount totaling RM190 million, and 3 companies received approval for a facilitation fund amounting RM47.2 million for 3 projects worth RM385 million. Many more Bumiputra SMEs are encouraged to apply to become a TERAS company through the TERAJU website.
REGIONAL ECONOMIC CORRIDORS PROJECTS
In September 2011, transformation programmes were formulated in an eight week lab in recognition of the importance of the five regional cities and corridors to propel the economic growth of the country. These are Georgetown and the Northern Corridor Economic Region (NCER); Johor Bahru and Iskandar Malaysia; Kuantan and East Coast Economic Region (ECER); Kuching and Sarawak Corridor of Renewable Energy (SCORE); and Kota Kinabalu and Sabah Development Corridor (SDC).
The Regional Cities and Economic Corridors Transformation Programmes further built on existing programmes including the 10th Malaysia Plan, ETP, GTP as well as the respective regional economic corridors and state programmes.
The labs aligned these initiatives, problem-solved the issues and developed detailed, three-feet level implementation programmes, critical to ensuring effective execution and monitoring by each individual Economic Corridor Authority.
The following are initiatives under the management and monitoring of the three Authorities, which were also announced today. The 9 projects will contribute RM8.95 billion of GNI in the year 2020 as well as attract investments of RM19.41 billion and create 24,261 jobs by 2020.
Sabah Economic Development and Investment Authority (SEDIA)
There are five projects under SEDIA. First is the Kimanis Power Plant, a 300MW combined cycle plant that is being built to provide sufficient and reliable electricity supply to ensure economic growth. The project is ahead of schedule and the first phase will be completed by December 2013.
The Palm Oil Industrial Cluster (POIC) Lahad Datu is Malaysia's first dedicated palm oil logistics hub. Located in the Sabah's palm oil belt, the first two phases will cover 1,150 acres focus on major palm oil industries such as refineries, fertilizer plants and oleochemicals.
Sipadan Mangrove Resort Sdn Bhd is developing a resort in Sungai Kalumpang. Spread across 200 acres of Aquaculture Park and 700 acres of Mangrove Reserve island, the resort will provide facilities for divers as well as eco-tourism.
Borneo Shrimp (Sabah) Sdn Bhd will begin commercial development and production of cultured prawn in Kampung Pintasan, Kota Belud and Sungai Telaga, Pitas.
The fifth project is the Alila Dalit Bay Integrated Resort. With 452 rooms and 134 villas, the hotel will complement the Sabah West Coast tourism zone.
Northern Corridor Implementation Authority (NCIA)
There are three projects under NCIA. The first is a collaboration between NCIA, the Department of Fisheries, and E-Arowana Trading Sdn Bhd as the anchor company. Using in-vitro technology and building on the success of a previous project in Bukit Merah, the project aims to increase Arowana production to meet the strong demand from China, Korea, Taiwan and Europe.
Another collaboration between NCIA, the Department of Fisheries, and Progressive Ocean Sdn Bhd aims to produce approximately 800 metric tonnes of Kerapu Harimau annually to meet the demand from Hong Kong, Taiwan, China, Japan and Europe.
The final project is championed by the Farmers' Organisation in Pokok Sena, Lahar Bubu and Penaga. This project aims to double the current yield from 4MT/ha/season to 8MT/ha/season in 2020 by improving the mechanization programme in paddy farming.
Corridor: Iskandar Region Development Authority (IRDA)
Damansara Assets Sdn Bhd, a wholly owned company of Johor Corporation, will invest RM440 million to redevelop two tourism outlets, KOMTAR (renamed Aira Shopping Mall) and Plaza Kotaraya (renamed Galleria @ Kotaraya).
Nathrah Johar Salim
+6012 297 7674