'We believe in a win-win scenario'

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					                                                                     ENERGY                                                                DEFENCE                                                                      TOURISM
                                                                     Route to a new energy mix                                             Partners in industry                                                         A world-class melting pot
                                                                     Strides are being made in the drive to harness the nation’s           A hub with high-tech manufacturing facilities serves local and               An unique mix of cultures and landscapes, Malaysia is an
                                                                     resources and tap its renewable energy potential PAGE 4               global defence and security companies PAGE 7                                 outstanding place to both visit and live PAGE 11

                                                                                                                                                                                                                                                             SATURDAY, JULY 16, 2011

Taking centre stage                                                                                                                                                                                                                                                       In recent years,
                                                                                                                                                                                                                                                                              Malaysia has
                                                                                                                                                                                                                                                                      launched 1Malaysia,
                                                                                                                                                                                                                                                                       the New Economic
                                                                                                                                                                                                                                                                            Model (NEM),

in Southeast Asia
                                                                                                                                                                                                                                                                            the Economic
                                                                                                                                                                                                                                                                           Plan (ETP) and
                                                                                                                                                                                                                                                                         the Government
                                                                                                                                                                                                                                                                              Plan (GTP),

The nation is focused on becoming a high-income knowledge-based economy by 2020                                                                                                                                                                                               and seen its
                                                                                                                                                                                                                                                                               capital city
                                                                                                                                                                                                                                                                          Kuala Lumpur’s
     ransformation is the over-
T    riding       theme
Government policy in Malaysia,
                                                                                                                                                                                                                                                                            symbolised by
where the administration of                                                                                                                                                                                                                                                     the iconic
Prime Minister Najib Razak                                                                                                                                                                                                                                                       Petronas
knows there is much to be                                                                                                                                                                                                                                                     Twin Towers
done if the small Southeast
Asian country is to become a
high-income developed nation
by 2020. A series of national
plans over the last 40 years has
seen Malaysia progress from
dependence on exporting rub-
ber and tin to modern indus-
trial production, services and
tourism.In the last decade the
focus has changed again and is
now firmly on creating a knowl-
edge-based economy.
    Malaysia successfully weath-
ered the recent international
firestorm,but faces deeper chal-
lenges.As the global econom-
ic landscape changes with the
emergence of China, India, the
Middle East and rival Southeast
Asian countries, Malaysia also
needs to change in order to re-
main competitive.
    “Transformation is one of
the hallmarks of Malaysia’s ad-
ministration,and I for one know
all too well the difficulties as-
sociated with the transforma-
tion process,” said Mr Najib re-
cently. “But it is not transfor-
mation that we must be wor-
ried about, it is complacency.”
    Last year saw the launch of
the 10th Malaysia Plan (2011-
2015). In addition, since taking
over two years ago, Mr Najib
has launched 1Malaysia, the
New Economic Model (NEM),
the Economic Transformation

Plan (ETP) and the Government
Transformation Plan (GTP).All,
he says,are in some ways a con-
tinuation of a winning formula,
but in other ways they repre-
sent a radical departure from
                                      Transformation is one of the hallmarks of
                                    Malaysia’s administration and I for one know
                                                                                                              ‘We believe in a win-win scenario’
                                     all too well the difficulties associated with                            The UK and Malaysia enjoy a solid relationship in defence, trade and investment, among many other sectors
the past.
    “What is different this time             the transformation process”                                           he visit to the UK by        Secretary Liam Fox was in
around is the widespread pub-
lic consultation,the emphasis on            DATO’ SRI MOHD NAJIB BIN TUN
                                                                                                              T    Malaysian Prime Minister
                                                                                                              Najib Razak this month is aimed
                                                                                                                                                Kuala Lumpur in January to
                                                                                                                                                discuss defence and security is-
                                                                                                                                                                                   ucational exchanges,and com-
                                                                                                                                                                                   mercial ties are strong. The
                                                                                                                                                                                   UK is one of Malaysia’s largest
                                                                                                                                                                                                                         the country are: Royal Bank
                                                                                                                                                                                                                         of Scotland, HSBC, Standard
                                                                                                                                                                                                                         Chartered Bank,Rolls-Royce,
                                                                                                                                                                                                                                                              science, technology and re-
                                                                                                                                                                                                                                                              search,” he says. “There are
                                                                                                                                                                                                                                                              other areas that can be looked
transparency and meritocracy,              ABDUL RAZAK Prime Minister of Malaysia                             at building on a relationship     sues, and Jeremy Browne,           foreign investors, investing          BP and Shell.                        into such as biotech and ICT.
and the clear roadmaps and                                                                                    that remains strong more than     Minister of State at the Foreign   more than £12.5 billion in the           UK exports in goods to            We need to look not just at
benchmarks for the outcomes         ability that suggests a different       The Prime Minister stresses       half a century since the for-     and Commonwealth Office,           country over the last 30 years.       Malaysia totalled £1 billion last    industry but services;service
on which we will be judged,”        way of doing things and a de-        in particular the importance of      mer Federation of Malaya          followed inApril to sign a mem-    The British Government                year,which makes Malaysia the        investment is equally impor-
he says.                            termination to get results.          1Malaysia,which is designed to       gained independence in 1957.      orandum of understanding on        agency UK Trade and                   UK’s second largest export           tant.We have to invest in this.”
    Each of the plans is intend-    Importantly, and for the first       reinforce national unity in the         “We are really looking for-    immigration cooperation with       Investment has designated the         market in SoutheastAsia,after           Investment is two-way, he
ed to address a different as-       time in Malaysia, ministers are      country’s 27 million strong,eth-     ward to further warming of re-    his Malaysian counterpart,         country a High Growth                 Singapore.UK exports in serv-        points out, with many
pect of what Malaysia needs to      being held personally account-       nically diverse population. He       lations,” says Zakaria Sulong,    Hishammuddin Hussein.              Market.                               ices to Malaysia in 2009             Malaysians investing in the UK,
do to take its place among the      able for making the changes re-      says it is about fairness and        Malaysia’s High Commissioner         Both the Duke of York and          British companies are in-          amounted to £397 million.            in water treatment, banking,
world’s high-income nations:        quired to improve the quality        equality and getting everyone        to the United Kingdom.“We         the Lord Mayor of London have      volved in a wide range of in-            Mr Zakaria says investment        and property.“We believe in
enhancing the delivery of           of life of the people of Malaysia.   behind the country’s transfor-       can do a lot more in terms of     also visited Malaysia this year,   dustry sectors in Malaysia,in-        is welcome across the                a win-win scenario,” says the
Government services, remov-            Results are important if          mation.But it is also about clear-   promoting and enhancing trade     while many senior Malaysian        cluding engineering,construc-         Malaysian economy, and par-          High Commissioner.
ing barriers to investment,         Malaysia is to fulfil its dream.     headed, performance-based            and investment between the        cabinet ministers have visited     tion, automotive, oil and gas,        ticularly in the service indus-         Simon Featherstone,British
catalysing change and initiating    Independent analysts say that        management. “1Malaysia is            two countries.We are look-        the UK, as did Malaysia’s          energy, telecoms, IT, educa-          tries. “Apart from manufac-          High Commissioner to
a series of high-value, high-im-    effective implementation of pro-     about furthering national uni-       ing forward to more British in-   monarch and Supreme Head           tion, training, retail, hospitali-    turing we are big with pri-          Malaysia, believes the two
pact projects. But it is the em-    ductivity-boosting structural        ty and social justice,” he says,     vestors coming to Malaysia.”      of State,Yang di PertuanAgong,     ty, publishing, financial servic-     mary commodities: palm oil,          countries are set to forge even
phasis on delivery and on key       reforms is crucial to achieving      “but I make no apologies for say-       Further development of the     for the Royal Wedding.             es,banking,insurance and cor-         timber and we used to be the         closer ties.“The potential for
performance indicators to en-       the level of growth needed to        ing that it is also about lever-     relationship is regarded as mu-      The two countries enjoy         porate services. Among the            biggest producer of rubber.          the relationship is huge,” he
sure transparency and account-      hit the 2020 target.                 aging our economic strength.”        tually beneficial. Defence        wide ranging cultural and ed-      best known names present in           Now, we are moving toward            says. (See interview page 2).

                                          Distributed with The Daily Telegraph. Produced by PM Communications who take full responsibility for and are solely liable for the content
2                                                                                                                              MALAYSIA                                                                                                                      SATURDAY, JULY 16, 2011

                                                                                                                                                                                                                                                                Oil, gas and energy
                                                                                                                                                                                                                                                                  A mainstay of Malaysia’s
                                                                                                                                                                                                                                                                growth, contributing some
                                                                                                                                                                                                                                                                20 per cent of GDP.
                                                                                                                                                                                                                                                                Palm oil
                                                                                                                                                                                                                                                                  The industry spans the
                                                                                                                                                                                                                                                                value chain, contributing
                                                                                                                                                                                                                                                                to economic growth with
                                                                                                                                                                                                                                                                a focus on sustainability
                                                                                                                                                                                                                                                                and community
                                                                                                                                                                                                                                                                Financial services

Vision 2020, looking to the future
                                                                                                                                                                                                                                                                 The sector’s share of
                                                                                                                                                                                                                                                                GDP grew to an average
                                                                                                                                                                                                                                                                of 10.9 per cent over the
                                                                                                                                                                                                                                                                period 2006 to 2009.
                                                                                                                                                                                                                                                                Wholesale and retail
                                                                                                                                                                                                                                                                  A key driver of domestic
                                                                                                                                                                                                                                                                consumption that will
The Government has laid out a raft of development programmes and initiatives to realise its high socio-economic goals                                                                                                                                           spur economic growth.
      wo major transformation
T     initiatives embody Prime
Minister Najib Razak’s pledge
                                                                                                                                                                                                                        tion exercise Malaysia has seen,
                                                                                                                                                                                                                        a record number of homes have
                                                                                                                                                                                                                        been offered to the needy,and
                                                                                                                                                                                                                                                                  A top global destination,
                                                                                                                                                                                                                                                                tourism is Malaysia’s fifth
                                                                                                                                                                                                                                                                largest industry.
to deliver on his promises and                                                                                                                                                                                          thousands of women entrepre-
produce tangible results that                                                                                                                                                                                           neurs have been trained and               Continued development
will affect the lives of all                                                                                                                                                                                            seen their income rise.                 is key, from content
Malaysians.                                                                                                                                                                                                                There has been rapid rural           generation to networks,
   A Performance Management                                                                                                                                                                                             development with millions of            services and devices.
and Delivery Unit (PEMAN-                                                                                                                                                                                               Malaysians being given access
DU) has been established with-                                                                                                                                                                                          to roads, water and electrici-          Education
in the Prime Minister’s depart-                                                                                                                                                                                         ty, many for the first time.              One of the most critical
                                                                                                                                                                                                                                                                drivers for Malaysia’s
ment to facilitate, assess and                                                                                                                                                                                             Congestion has been re-
                                                                                                                                                                                                                                                                transformation to a
drive         the     Economic                                                                                                                                                                                          duced in Kuala Lumpur now               high-income nation.
Transformation Programme                                                                                                                                                                                                that the Kelana Jaya LRT (light
(ETP) and the Government                                                                                                                                                                                                rail transit) line has almost 2.5       Electrical and
Transformation Programme                                                                                                                                                                                                million more passengers trav-           electronics
(GTP).                                                                                                                                                                                                                  elling on it following an in-             The sector comprises
   The ETP is designed to more                                                                                                                                                                                          crease in its capacity.                 over 30 per cent of
than double Malaysia’s gross                                                                                                                                                                                               Reporting on progress made           Malaysia’s exports and
                                                                                                                                                                                                                                                                hosts an array of
national income (GNI) per capi-                                                                                                                                                                                         in the first year of the GTP,Mr
                                                                                                                                                                                                                                                                successful local firms and
ta from its 2009 level of $6,700                                                                                                                                                                                        Najib was understandably up-            international giants.
(£4,200) to above $15,000                                                                                                                                                                                               beat,saying the programme had
(£9,400) by 2020.Such an out-                                                                                                                                                                                           yielded “quick and big wins like        Business services
come can only be achieved by                                                                                                                                                                                            never before,making a positive            The business services
significant remodelling of the                                                                                                                                                                                          impact on the lives of millions         sector has significant
economy with the emphasis                                                                                                                                                                                               of Malaysians.” He added,how-           room for growth.
on developing the services sec-                                                                                                                                                                                         ever, that he was mindful that          Private healthcare
tor. By 2020, it is hoped that                                                                                                                                                                                          the Government should not                A powerful engine of
the industry will account for 65                                                                                                                                                                                        “declare victory” until Malaysia        economic growth, due to
per cent of the economy and                                                                                                                                                                                             has achieved its goal of becom-         demographic shifts.
that 3.3 million new jobs will                                                                                                                                                                                          ing a fully developed country.          Agriculture
have been created across the                                                                                                                                                                                               Acknowledging that the pro-           Agriculture is slowly
country.                                                                                                                                                                                                                gramme had its share of scep-           changing as entrepreneurs
   Under the ETP,public invest-                                                                                                                                                                                         tics,he said the ultimate judge         enter diverse ventures.
ment and policy support is be-                                                                                                                                                                                          of the Government’s perform-            Greater Kuala
ing focused on 12 National Key                                                                                                                                                                                          ance and progress was the               Lumpur
Economic Areas (NKEAs), for                                                                                                                                                                                             people.                                   Already on the global
which the Government has                                                                                                                                                                                                   “Moving forward, the GTP             map as one of the iconic
identified 131 Entry Point                                                                                                                                                                                              will continue to identify real          cities of Southeast Asia.
Projects (EPPs).                                                                                                                                                                                                        problems and deliver tangible
   But it is on participation by    Prime Minister Dato’ Sri Mohd Najib Tun Abdul Razak officially launched Amanah Saham 1Malaysia on July 31, 2009, pictured above, which is an all-Malaysian equity                   solutions for our nation and                 PROJECT TEAM:
the private sector, which has       income fund handled by Permodalan Nasional Berhad (PNB), the country’s biggest fund management company, and enables Malaysians to invest in the country’s future                    the rakyat [people]. We are             Evelyn Vigistain,Ana Nardelli,
been involved in the pro-                                                                                                                                                                                               confident we can make strong                  Thomas Gallagher,
gramme from the start, that         andApril this year.According to      tic investments “which,if prop-    is the GTP, which is intended       1Malaysia, to pursue these          (MKPIs) clearly define what         strides forward as a united na-               Juan Carlos Jover,
the success of the ETP rests.       Mr Najib,this will create almost     erly planned and executed as       to radically change the way the     NKRAs and address them with         ministers must achieve and be       tion and rest assured, no              Edouard Berthier, Jorge Portillo,
The Government’s role is to act     225,000 job opportunities in         envisioned by the ETP,will rein-   Government delivers services        unrelenting conviction and ded-     accountable for, and their per-     Malaysian will be left behind in        Celine Louis, Geoffrey Cooke
as a facilitator,providing essen-   the next 10 years.                   vigorate private investments in    and supports citizens.              ication to create a modern,         formance is reviewed by the         this national transformation.”
tial services and improving the        Total investment for 2011 is      the Malaysian economy in the          The GTP has six pillars,         prosperous,peaceful and high-       Prime Minister twice annually.         The first year of the GTP                 DIRECTOR ASIA:
public delivery system.It is the    expected to exceed the               medium term”.                      known as National Key Result        income nation and improve the          It is an approach that appears   was voted a success by the                       Vincent Rifici
private sector that is expected     Government’s target of $27 bil-         The ETP will be an evolving     Areas (NKRAs).These priori-         lives of all Malaysians regard-     to be delivering results. Crime     International Performance                   Tel: +60 169 758720
to deliver the EPPs and provide     lion (£17 billion),even if only 70   programme rather than a hard-      ty areas – crime prevention,        less of race, religion or social    has been significantly reduced      Review (IPR) committee,a pan-                       Email:
more than 90 per cent of the        per cent of the planned proj-        and-fast blueprint of econom-      corruption,education,poverty,       status.”                            nationwide and the percentage       el of experts appointed to in-            vrifici@pmcomm.com
funding.                            ects are realised.                   ic activity in Malaysia for the    rural development and public           He says the Government has       of Malaysians who think the         dependently evaluate the                  Produced by PMC Ltd,
   There has been a positive re-       The Malaysian Rating              next 10 years. Many new ini-       transport infrastructure up-        deliberately chosen more am-        Government is winning the fight     progress made. The commit-              who take full responsibility
sponse to the ETP from in-          Corporation reports “increas-        tiatives and activities are ex-    grades – have been identified       bitious goals that had been set     against corruption has almost       tee judged the results achieved         for and are solely liable for
vestors, indicated in the value     ingly positive vibes” about the      pected to emerge as the re-        as requiring quick and decisive     before, and that fundamental        doubled.                            under the respective NKRAs                      the content.
of total investments committed,     Government’s transformation          forms take hold and markets        action.                             changes are needed to deliver          The first school ranking sys-    to be “impressive” and having            PMC Ltd, Empire House,
which rose to $31 billion (£19.4    programmes. It says there is a       develop.                              Mr Najib says:“It is our goal,   big results fast.“If we wish to     tem has been introduced,track-      met many of the ambitious first                175 Piccadilly,
billion) between October 2010       strong onus on direct domes-            Complementary to the ETP        in line with the spirit of          see big changes,then a bold ac-     ing the performance of individ-     year targets.                                London W1J 9TB
                                                                                                                                                tion plan is a prerequisite.”       ual secondary and primary              At the same time it stressed          Tel: +44 (0)20 7409 0739
                                                                                                                                                   While the cabinet takes col-     schools, and there has been a       the importance of ensuring that                    Email:
                                                                                                                                                lective responsibility for the      huge rise in the number of chil-    the civil service was fully behind      pmcomm@pmcomm.com
                                                                                                                                                NKRAs, accountability for de-       dren attending pre-schools.         the programme. It was impor-
                                                                                                                                                livery rests with individual min-      The number of extremely          tant that the spirit of the GTP          This report can be read
                                                                                                                                                isters. Ministerial Key Result      poor households has been re-        “cascaded down” the ranks of
                                                                                                                                                                                                                                                                        online at
                                                                                                                                                Areas (MKRAs) and Ministerial       duced to zero per cent in the       the public sector and became
                                                                                                                                                Key Performance Indicators          most successful poverty reduc-      an automatic process.

UK High Commissioner to Malaysia

‘A whole range of British companies are based here’
Simon Featherstone, the UK’s High Commissioner to Malaysia, looks at the                                                                                                            How can UK investors play a         studying in Malaysia for British     beach resorts and the other
close links the two countries share in business, trade, finance and education                                                                                                       larger role in the Malaysian        qualifications.                      attractions in this country to
       hen the UK High went up by 18 per cent to major trading partners with
W      Commissioner to reach a total of RM6.37 bil- Malaysia.
Malaysia Simon Featherstone lion (£1.23 billion).                    Our trade and investment
                                                                                                                                                                                       We have lots of individual
                                                                                                                                                                                    companies that have particu-
                                                                                                                                                                                                                           There is a wide variety of in-
                                                                                                                                                                                                                        stitutions setting up campus-
                                                                                                                                                                                                                        es and schools here in Malaysia
                                                                                                                                                                                                                                                             entice people to come, and
                                                                                                                                                                                                                                                             the cultural mix is also very ap-
                                                                                                                                                                                                                                                             pealing.Malaysia combines the
took up his appointment last        I think I have come at a team organises visits by ei-                                                                                           lar strengths in areas where        as well, particularly in the         fascination of a predominant-
October,he commented that time when the relationship ther regional or sector                                                                                                        Malaysia is seeking investment.     Iskandar region,where we have        ly Islamic country with a very
the British Government was is poised to grow even fur- groups to Malaysia.The High                                                                                                  For example,the expertise that      a whole cluster of British com-      strong tolerance of other faiths
keen to see ties between UK ther and more rapidly, and I Commission does a lot in                                                                                                   British firms have in public-pri-   panies and institutions includ-      and cultures, which is truly
and Malaysia strengthened, feel very excited to be here. terms of disseminating infor-                                                                                              vate partnerships is something      ing Marlborough College,             unique in the world.It is a very
adding that he was looking                                         mation through a wide range                                                                                      very relevant for Malaysia.         Newcastle and Southampton            enticing mix.
forward to “taking this agen- Does the 10th Malaysia plan of information providers,                                                                                                    There is a whole range of        Universities and also Pinewood
da forward during the next present opportunities for such as the internet.                                                                                                          opportunities here, some of         Studios,which make the James         What are your goals and chal-
four years.” Here he talks British companies?                        We also see a lot of com-                                                                                      which we are already explor-        Bond films and a whole range         lenges for the next four years?
about his impressions of the        It represents a very im- panies and provide charge-                                                                                             ing and others where our role       of Hollywood blockbusters.              I want to ensure that the po-
country and the opportuni- portant opportunity for UK able services; they pay us to                                                                                                 as a commission is to open          Legoland, a British-owned            litical relationship between
ties he sees for British busi- firms.We think that the kinds investigate particular sectors                                                                                         people’s eyes to the synergies      company,is also setting up here.     Britain and Malaysia is as good
ness.                             of plans Malaysia is imple- for them.We are one of the                                                                                            between British and Malaysian                                            as it can be because this un-
                                  menting play to the strength most productive and efficient                                                                                        expertise.                          What is the best thing about         derpins other aspects of the
How would you describe the        of British companies and fi- high commissions/embassies                                                                                              The oil sector – as well as      Malaysia in your opinion?            relationship,such as trade,de-
relationship         between      nancial institutions. We are worldwide in this respect.                                                                                           the big players like Shell, BP         There is a lot of validity in     fence, science and technolo-
Malaysia and the UK?              looking very closely at those We often serve small and                                                                                            and Petrofac – has exciting ex-     the tag line that the Malaysian      gy, and culture. I am delighted
   Since I have been here, I plans and we are hoping to medium-sized enterprises.                                                                                                   pansion plans for oil explo-        Government uses:‘Truly Asia’.        that since last summer we have
have been struck by the develop good opportunities                                                                                                                                  ration in Malaysia.                 The culture here combines the        had a range of very high level
warmth of the relationship for British companies to How important is Malaysia’s                                                                                                        Another very important           traditional Malay culture along      visits. Those are something I
and the historical ties.It is ob- work alongside Malaysian membership                of    the                                                                                      area is Islamic finance.Malaysia    with Chinese, Indian and             have been very keen to see es-
vious that a lot of the companies.                                 Commonwealth?                                                                                                    has positioned itself as prob-      European influences, which           tablished, and I think they will
Malaysian system is based on        In fact, this is happening all   We regard those links as                                                                                       ably the leading Islamic finance    makes it a truly unique coun-        create a framework in which
the UK system; for example the time and much of it with- extremely important and we                                                                                                 centre in Southeast Asia and        try that has surprises around        other links can flourish and
the legal and financial sys- out the British Government are particularly pleased that                                                                                               the world.I know that our law       every corner.                        develop.
tems are very similar.            having to intervene.             the former Prime Minister                Simon Featherstone, UK High Commissioner to Malaysia                    and accountancy firms are very         I would also like to highlight       The potential for the rela-
   We share membership of           For example, the British Abdullah Badawi is chairing                                                                                            interested, as well as a large      the potential that exists here.      tionship is huge. We have so
the Commonwealth and the Malaysia Chamber of the Commonwealth Eminent                                       and Malaysia have in com-           stitutions in the fields of cul-    number of banks, in working         Malaysia has been growing very       much history and so many chal-
trade relationship is very Commerce has over 300 Persons Group, which is                                    mon – a desire for the              ture, music, climate change         closely with Malaysia in Islamic    fast – there was around 7 per        lenges we share, be it in the
healthy.Malaysian exports to members, it is not just the charged with reinvigorating                        Commonwealth to be rein-            and sports, for example.We          finance.                            cent growth last year – and          environmental field or the pol-
the UK reached a total of very big names but a whole the Commonwealth and                                   vigorated.                          do not want to be a                    In the area of higher educa-     represents a huge growing            icy field. It can only be good
RM87.2 billion (£1.78 billion), range of British companies making it more accessible                           In the meantime, the High        Government organisation,            tion, we have something like        market.                              for both countries to work
a jump of 12 per cent on are based here either as in- and valuable to its citizens.                         Commission is working with          but a country-to-country            13,000 students from Malaysia          For tourists, you only need       hand-in-hand to tackle those
2009.UK exports to Malaysia vestors or because they are That is something which we                          existing Commonwealth in-           people’s organisation.              in the UK and 40,000 students       to look at the brochures of the      issues.
SATURDAY, JULY 16, 2011                                                                                                       MALAYSIA                                                                                                                                                        3

                                                                               A FAST-TRACK
         ith its economy heav-     trical and electronic products,                                                                                                                                                         The recent renaming of the             “It’s a competitive world,”
W        ily oriented towards
exports, Malaysia has been
                                   refined petroleum products,
                                   palm oil, and crude rubber, as
                                                                                                                                                                                                                         Malaysian Industrial Develop-
                                                                                                                                                                                                                         ment Authority as the more
                                                                                                                                                                                                                                                              says Jalilah Baba, MIDA’s di-
                                                                                                                                                                                                                                                              rector general. “There are
taking huge encouragement          well as chemicals and chemi-                                                                                                                                                          relevantly titled Malaysian          more countries with emerg-
from recent trade figures,         cal products.                                                                                                                                                                         Investment Development               ing economies, and new

which show clear signs of re-         Malaysia’s top five export                                                                                                                                                         Authority (MIDA) reflects its        economies are popular be-
covery from the setback            destinations are Singapore,                                                                                                                                                           expanded role and scope. MI-         cause when things are open-
caused by the global econom-       China,Japan,the United States                                                                                                                                                         DA has been given full em-           ing up,they are visible to every-
ic crisis.                         and Thailand. The country                                                                                                                                                             powerment to make decisions          body. Malaysia, on the other
   Total trade for the country                                                                                                                                                                                                                                hand,has been open for quite
rebounded last year, surpass-                                                                                                                                                                                                                                 some time now; we started
ing the RM1 trillion mark to
register a value of RM1.169
trillion (around £244 billion).
That is close to the 2008 pre-
crisis level,and represents 18.3
per cent growth after a 16.5
                                                                                  NATION       Foreign direct investment rose by more than
                                                                                                                                                                                                                                                              our industrialisation in the 70s.
                                                                                                                                                                                                                                                              Consequently, our challenge
                                                                                                                                                                                                                                                              is to get the investors we want
                                                                                                                                                                                                                                                              on board to get to know us.”
                                                                                                                                                                                                                                                                  Malaysia is ranked 26th out
                                                                                                                                                                                                                                                              of the 139 economies in the
per cent decline in 2009 fol-                                                                                                                                                                                                                                 World Economic Forum’s
lowing the slump in world-
wide demand for consumer
                                                                                             400 per cent in 2010, compared to the previous                                                                                                                   Global Competitiveness Report
                                                                                                                                                                                                                                                              for 2010-2011,and 21st in the
   Exports surged by 15.6 per
                                                                                              year, to £6.05 billion and Malaysia is on track                                                                                                                 World Bank’s latest Doing
                                                                                                                                                                                                                                                              Business report. Mrs Jalilah
cent to RM639.43 billion
(£133 billion) in 2010, and
                                                                                                 to hit its target of £292 billion by 2020                                                                                                                    enumerates the country’s
                                                                                                                                                                                                                                                              strengths, including “our po-
while imports increased by         from free                                                                                                                                                                                                                  litical stability and the fact that
21.7 per cent to RM529.19 bil-     t r a d e                                                                                                                                                                                                                  we are very strong econom-
lion (£110 billion), there was     agreements                                                                                                                                                                                                                 ically.The Government is sup-
still a healthy trade surplus of   (FTAs) between                                                                                                                                                                                                             portive of business and is mov-
RM110.23 billion (£23 billion).    the Association of                                                                                                                                                                                                         ing ahead in terms of increas-
   Even better results are fore-   Southeast Asian Nations                                                                                                                                                                                                    ing efficiency through its trans-
cast for this year.International   (ASEAN) and India,Australia                                                                                                                                                                                                formation programmes.”
Trade and Industry Minister        and New Zealand that came                                                                                                                                                                                                      Nazri Aziz, Minister in the
Mustapa Mohamed predicts           into force at the beginning of                                                                                                                                                                                             Prime Minister’s Department
an export expansion to             this year. It has also been ac-      Pacific Strategic Economic         ond quarter of this year            for the largest share of ex-        al demand for semiconduc-                                                  in Charge of Law and
RM700 billion (£146 billion),      tively seeking bilateral FTA         Partnership last year. It is al-   amounted to RM11 billion            ports, increased to RM47.18         tor devices increases.                                                     Parliamentary Affairs, points
an increase that would meet        agreements.                          so exploring non-traditional       (£2.3 billion).The Minister said    billion (£9.84 billion) last year      The services sector, led by                                             out that Malaysia also has the
the 10th Malaysia Plan target         A bilateral deal with New         and emerging markets,such as       he was confident Malaysia           compared with RM32.64 bil-          the wholesale and retail trade,                                            advantage of having a judicial
of 10.6 per cent.                  Zealand took effect last year        the Middle East and North          would surpass or at least equal     lion (£6.8 billion) in 2009,with    and the communications and            expeditiously and to co-ordi-        system similar to that of the
   “So far this year, the total    and negotiations with Chile          Africa.                            last year’s figure of RM29 bil-     910 projects compared with          finance and insurance sectors,        nate all other investment pro-       UK. “Our laws are based on
trade performance has been         and India have also been suc-           Foreign direct investment in    lion. He believes the country       766 projects in 2009.Malaysia’s     is regarded as a prime growth         motion agencies for the man-         the British system, which has
quite good with a 10 per cent      cessfully concluded. Talks           Malaysia rose by more than         is on track to achieve its tar-     electrical and electronics sec-     engine for the Malaysian econ-        ufacturing and services sec-         been around for hundreds of
increase in the first four         about bilateral FTAs with            400 per cent in 2010 to RM29       get of attracting FDI of RM1.4      tor in particular has attract-      omy.This year its contribution        tors.The approvals process has       years and is known all over the
months compared with the           Turkey and the European              billion (around £6.05 billion)     trillion (£292 billion) to the      ed significant investment and       to GDP is predicted to rise to        been streamlined and decisions       world.Foreign investors know
same period last year,” he says.   Union are under way.                 from £1.06 billion in 2009.        country by 2020.                    is expected to remain a ma-         58 per cent; by the end of the        are being made faster through        that they will be treated fair-
   The improvement is large-          Malaysia became a full ne-           In June, Mr Mustapa an-            Investments in the manufac-      jor contributor to the coun-        10th Malaysia Plan,this is expect-    its National Committee on            ly in countries with good ju-
ly due to higher sales of elec-    gotiating partner in the Trans-      nounced that FDI for the sec-      turing sector,which accounts        try’s export growth as glob-        ed to increase to 61 per cent.        Investment (NCI).                    dicial systems,” he says.

Regional development

Tangible results and rising foreign
interest in five economic corridors
The Government has                    In a bid to further stimu-        ing promoted as a hub for          had attracted cumulative in-        location is another strong sell-
poured £80 billion over            late investment, the regional        agriculture and tourism,while      vestments totalling almost          ing point.“It allows us to serve
the past five years into           development authorities have         the focus of the Sarawak           RM72.5 billion (around £15          a population between 600 mil-
developing five main               recently been told to draw up        Corridor of Renewable              billion) since 2006.                lion to 800 million,” says Mr
areas of economic                  “transformational            pro-    Energy is reflected in its name.      “This year is crucial for us,”   Ismail.“We are looking beyond
activity and establishing          grammes” to move develop-               “We have purposely built        says Ismail bin Ibrahim, chief      Singapore and our other neigh-
them as solid platforms            ment of the corridors and            the corridors to concentrate       executive of the Iskandar           bours within the ASEAN re-
for foreign investment             their associated major cities        and champion industry sec-         Regional       Development          gion. Iskandar is within reach
                                   up a gear.                           tors for which certain regions     Authority.“This is when peo-        of the global market,especial-
    lans for regional develop-                                          already possess a correspon-
P   ment are fundamental to
Malaysia’s drive to become a
                                      “It will take the development
                                   achieved to date to the next lev-
                                   el to build out regional and glob-
                                                                        ding strength,” explains
                                                                        Datuk Jalilah Baba, director
                                                                                                           ple will begin to see what the
                                                                                                           buzz is all about.We need to
                                                                                                           show that we mean business.”
                                                                                                                                               ly the rising economies of
                                                                                                                                               China,India and even Indonesia
                                                                                                                                               to a certain extent.”
                                                                                                                                                                                      Chief executive Datuk Dr MohdYaakub Hj Johari (third from left) and deputy chairman Datuk
                                                                                                                                                                                      Peter Pang (centre) at SEDIA’s first audit committee meeting for 2011 that was held in March
high income economy by             al hubs in their economic ar-        general of the Malaysian              “Five years ago, we had              This is combined with ex-
2020 and the Government            eas of specialisation,” said the     Investment Development             nothing to show – it was all        cellent transportation links.
has invested heavily in the        Government’s Performance                                                theory,” he adds. “Now, it is       “You can get to us by land,
country’s five economic cor-       Management and Delivery                                                 a different story.There is tan-     sea,rail and air;we have three

                                                                                                                                                                                      More than just a
ridors. But it is private-sec-     Unit (Pemandu) in a                                                            gible proof that we have     ports and an airport,” he adds.
tor investment, particularly       statement issued                                                                                            “Iskandar’s strategic location,
foreign investment, that the       last month.                                                                                                 combined with higher con-
corridors must attract to suc-                                                                                                                 nectivity, gives it the kind of
ceed in creating jobs,spurring                                                                                                                 catchment that sets it apart
business activities and im-
proving the quality of life of
the communities that live
   Malaysia has established
                                                                                                                                               from the rest of the players
                                                                                                                                               within the region.”
                                                                                                                                                   An outstanding new feature
                                                                                                                                               of the corridor will be EduCity,
                                                                                                                                               an educational enclave that
                                                                                                                                                                                      pretty place
                                                                                                                                                                                      The Sabah Economic Development and Investment Authority, SEDIA, is helping
five economic corridors,                                                                                                                       has already attracted educa-           investors tap the economic potential of one of Malaysia’s most beautiful areas
each specialising in a par-                                                                                                                      tion institutions from the UK.
ticular area of economic                                                                                                                                                                   he State of Sabah in north-
activity in which it is in-
tended to emerge as a
                                                                                                                                                   The University of Newcastle
                                                                                                                                                    and Marlborough College
                                                                                                                                                     have both set up campus-
                                                                                                                                                                                      T    ern Borneo is one of the
                                                                                                                                                                                      most naturally diverse areas of
                                                                                                                                                                                                                           2016 to 2025 foresees fur-
                                                                                                                                                                                                                           ther expansion of the econo-
                                                                                                                                                                                                                           my, as well as the emergence
                                                                                                                                                                                                                                                               He believes Sabah’s key
                                                                                                                                                                                                                                                               strengths are its strategic lo-
                                                                                                                                                                                                                                                               cation, abundant natural re-
regional and global hub.                                                                                                                             es there and the Univer-         Malaysia.The location of the         of a state with strong support-     sources,rich cultural heritage
   Since 2006, the                                                                                                                                    sity of Southampton will        world’s oldest rainforest, it is     ing infrastructure,global com-      and access to mega biodiver-
Government has spent                                                                                                                                  follow next year. The           home to rare wildlife,such as        panies and an educated work         sity resources.
£50 billion to get the                                                                                                                                Management Develop-             the orang-utan, proboscis            force that is an attractive des-       “We would like to make
corridors off the                                                                                                                                     ment Institute of Singa-        monkeys,pygmy elephants and          tination for foreign direct in-     Sabah a destination for busi-
ground, and it is com-                                                                                                                                pore and the Netherlands        the endangered Sumatran rhi-         vestment.                           ness, culture and nature,” he
mitted to substantial                                                                                                                                 Maritime Institute of           noceros, as well as a rich va-          Charged with bringing all        says.“Investors are welcome
further investment un-                                                                                                                               Technology are also on           riety of bird life.The emerald       this about is the Sabah             to do business in Sabah while
der the 10th Malaysian                                                                                                                                                                green seas that wash its trop-

                                                                                                                                                    site.                                                                                                      at the same time savouring
Plan.Investment from the                                                                                                                               “In terms of sectors that      ical beaches enclose a fascinat-                                         our unique cultural experi-
private sector – from                                                                                                                             I would highlight for British       ing underwater world of mag-                                             ence, as well as having a first-
Europe, the Middle East,                                                                                                                        investors, one would be ed-           nificent coral reefs, sea tur-                                           hand appreciation of our
Asia, the United States and                                                                                                                    ucation, either at secondary           tles,giant clams and many kinds      We would like to                    world-renowned marine at-
Australia – has mostly been                                                                                                                    or university level,” says Mr          of tropical fish.                    promote new                         tractions,rare wildlife and lush
channelled into sectors such                                                                                                                   Ismail.“They can also look in-            With so much to offer the                                             tropical rain forest.”
as energy supply, the paper                                                                                                                    to higher education and ed-            visitor,Sabah is Malaysia’s pre-     sources of growth,                     As far as tourism is con-
and pulp industry,heavy indus-                                                                                                                 ucation in specialised skills          mier nature destination and          such as green                       cerned, the idea is to turn
tries like steel,metal,zinc and                                                                                                                through training centres.This          tourism is an important as-                                              Sabah into a high-end lifestyle
aluminium, and port opera-                                                                                                                     is an area where we strong-            pect of the local economy.But        industries, biotech,                destination attracting luxury
tions, real estate, and hous-                                                                                                    aligned       ly feel that UK investors              Sabah’s potential for econom-        ICT and creative                    holiday visitors to signature
ing and hotels.                       Iskandar                                                                             ourselves to-       should participate further.”           ic activity extends beyond                                               resorts.Agriculture is anoth-
   All five of the corridors       Malaysia, at the                                                                   wards the country’s          Prominent among British            tourism alone.Over the next
                                                                                                                                                                                                                           industries, while                   er promising sector – Sabah
have been gearing up to meet       southern tip of the                                                          overall economic develop-      investors in the corridor is           decade and a half every effort       ensuring sustainable                is already Malaysia’s biggest
their various short and long-      country, was the first of the                                           ment plan.”                         Pinewood Studios,which will            will be made to develop that         utilisation of our                  contributor to oil palm pro-
term targets, according to         corridors to be established          All projects in the corridors         He says 2012 will be the         be investing £81.8 million in          potential to the benefit of the                                          duction – and SEDIA also aims
Muhammed Kassim, group             under the 9th Malaysia Plan in       need NCI approval                  tipping point.“By then, sever-      a 32-acre studio project up            people living in the state.          natural resources                   to encourage the develop-
chairman of the Corridor           2006,and is dedicated partic-                                           al of our strategic projects will   to 2013 that is expected to               The Sabah Development             and preserving                      ment of logistic services and
Development Corporation,           ularly to knowledge-intensive        Authority (MIDA), which            already be starting to deliver.”    generate a profit of £189 mil-         Corridor (SDC), launched in                                              manufacturing.
an investment promotion            and service industries,as well       now centralises the approval          Iskandar Malaysia’s gross do-    lion over a period of eight            2008, is the most recent of          our natural                            “We think there is a lot of
agency set up to complement        as real estate.                      of all investments in the cor-     mestic product is forecast to       years.                                 Malaysia’s five development          environment”                        potential in these areas,” says
the Government’s efforts to           This was followed by the          ridors through a National          rise to £58.5 billion by 2025,          Legoland is building a 70-         corridors.Covering the whole                                             Dr Yaakub.
draw in private capital.           manufacturing and industrial-        Committee on Investment            from £12.5 billion in 2005.The      acre theme park – its first in         state,its 18-year development       DATUK DR MOHD                           Sabah is particularly keen to
   He says the primary aim of      oriented Northern Corridor,          (NCI) established last year.       population is expected to in-       Asia – at Nusajaya, Johor, and         plan is in the second of three                                           attract knowledge-intensive
the corridors is to generate       which includes the states of            “Previously,corridors could     crease to three million from        expects to attract around 1.5          phases of implementation.           YAAKUB HJ JOHARI                     industries and already collab-
investment from private sec-       Penang, Perak, Kedah and             approve investment on their        1.4 million.                        million visitors annually once            The first phase,which end-       Chief Executive of SEDIA             orates with British scientists
tor driven initiatives.            Perlis, and was formed as a          own,” says Mrs Jalilah.               One of the corridor’s            it is completed towards the            ed last year,focused on laying                                           and researchers at the Danum
   “All (the) corridors share      magnet to attract investment         “However,as of May last year,      strongest advantages is its         end of next year. Up to four           foundations for growth               Economic Development and            Valley Field Research Centre,
one common goal: that is to        particularly into the electri-       all these projects have to be      proximity to Singapore,which        million visitors are expected          through development of in-           InvestmentAuthority (SEDIA),        which is recognised by the
contribute towards the             cal and electronic industries.       approved by the NCI. The           allows the two areas to com-        to shop at the soon-to-be-             frastructure, and economic           a one-stop authority working        Royal Society.
growth of the Malaysian econ-         The Eastern Economic              corridors can go out and ne-       plement each other. In terms        completed Johor Premium                and poverty eradication proj-        in partnership with the                “To maintain the attractive-
omy,” he explains.“Specifically,   Corridor – the largest of the        gotiate on their own, but the      of the cost of doing business,      Outlet during its first year of        ects. The current second             Government,the private sec-         ness of Sabah in the long term,”
each is poised to become a         five, extending over half of         final decision rests with us.”     Iskandar Malaysia is three          operations.                            phase, which runs until 2015,        tor and the civil society.          he adds,“we would also like
platform to bring in more          the Malaysian Peninsula and             Having started at different     times as large as the repub-            The maturity date for de-          aims to accelerate economic             SEDIA’s chief executive          to promote new sources of
FDIs (foreign direct invest-       including northeast states of        times, the corridors are at        lic, giving it ample space for      velopment of the Iskandar              growth by promoting value-           Datuk Dr Mohd Yaakub Hj             growth, such as the green in-
ments) and PFIs (private fi-       Kelantan,Terengganu, Pahang          varying stages in their devel-     businesses to expand.               Malaysia corridor is 2025.“At          added economic activities,at-        Johari says the goals of the        dustries,biotech,ICT and cre-
nancing initiatives) – two sig-    and northern Johor – was es-         opment.As the first to be set      Business costs are much low-        that point, we should be able          tracting global companies and        SDC are to eradicate pover-         ative industries, while at the
nificant generators that           tablished to attract oil and         up, Iskandar Malaysia leads        er too and Singaporean firms        to position it as a strong and         building a strong base of local      ty, enhance the quality of life,    same time ensuring sustainable
should propel the nation’s         gas companies and petro-             the others in attracting in-       have been showing an inter-         sustainable metropolis of in-          small and medium-sized enter-        promote economic growth             utilisation of our natural re-
economic growth in the next        chemical industries.                 vestment. By the first quar-       est in relocating there.            ternational standing,” says Mr         prises.                              and ensure balanced,equitable       sources and preserving our
10 years.”                            The Sabah Corridor is be-         ter of this year, the corridor        Iskandar Malaysia’s strategic    Ismail.“That is our vision.”              The final, third, phase from      and sustainable development.        natural environment.”
4                                                                                                                         MALAYSIA                                                                                                               SATURDAY, JULY 16, 2011

The express route to a new energy mix
Malaysia is making strides in diversifying its energy sources with incentives to harness its natural resources and tap its renewable energy potential
  n the second week of
I September, Kuala Lumpur
Convention Centre will host
the International Greentech
and Eco Products Exhibition
and Conference.The four-day
event (IGEM),the largest of its
kind in the region, is expect-
ed to attract tens of thou-
sands of visitors and more
than 50 companies and organ-
isations from around the
   Towards the end of the
same month, Renewable
EnergyWorld Asia,the region’s
premier conference and exhi-
bition for the renewable en-
ergy industry, will draw ex-
hibitors and visitors from
more than 60 countries to the
same venue.
   The nation is emerging as a
major player in renewable en-
ergy and eco-technology.
   At the same time, Malaysia
is a producer of oil and gas.
Next year the 25th World Gas
Conference comes to Kuala
Lumpur, marking the conclu-
sion of Malaysia’s current
three-year presidency of the
International Gas Union, for
which it has adopted the
theme ‘Gas: Sustaining Future
Global Growth’. Malaysia is
only the second Asian coun-
try (after Japan) to hold the
   The oil and gas industry in      Malaysia has set a target to reduce its carbon emissions to 40 per cent of its 2005 levels by 2020 and is pulling out all the stops to become the region’s focal point for renewable energy resources and eco-technology
Malaysia has a history going
back just over 100 years.
Petronas,the national oil com-
                                                                                                           Here, Peter Chin Fah Kui,
                                                                                                         Malaysia’s Minister of Energy,
                                                                                                                                           area of wind technology.We
                                                                                                                                           hope to be able to increase hy-
                                                                                                                                                                                IGEM 2011
pany, plays a big role in the                                                                            Green Technology and Water        dropower generation to as
Malaysian economy,involved in
exploration and production
but also in downstream activ-
ities like refining and petro-
                                                                                                         discusses investment oppor-
                                                                                                         tunities and moves to devel-
                                                                                                         op renewable energy sources.
                                                                                                                                           much as 20 per cent. This
                                                                                                                                           would not necessarily involve
                                                                                                                                           big damns like Bakun in
                                                                                                                                           Sarawak; but rather smaller
                                                                                                                                                                                A showcase for
chemical production. The
Government depends on
Petronas for around 40 per
cent of state revenues.
   Recently Malaysia’s status as
                                                                                                         How significant is Malaysia’s
                                                                                                         hosting of the World Gas
                                                                                                         Conference next year?
                                                                                                            The energy sector creates
                                                                                                         multiple opportunities for fi-
                                                                                                                                           ones which will provide
                                                                                                                                           enough clean energy.We are
                                                                                                                                           also planning some nuclear en-
                                                                                                                                           ergy but of course this is a
                                                                                                                                           long-term project.
                                                                                                                                                                                green technology
                                                                                                                                                                                The region’s largest green exhibition and conference is back for its second year
a net oil exporter has been                                                                              nancing and investment.Thanks                                          in September and will be an even more vibrant hotbed of innovation
challenged as rising demand                                                                              to the environment we have        Are you promoting invest-
and falling oil production from                                                                          put in place there are excel-                                               he second International                                         Set as an annual event,
its maturing fields have required
it to import more crude.
                                                                                                         lent opportunities for the in-
                                                                                                         ternational community to do
                                                                                                                                           ment in renewable energy
                                                                                                                                              Essentially, we are putting
                                                                                                                                                                                T    Greentech and Eco
                                                                                                                                                                                Products Exhibition and
                                                                                                                                                                                                                    The Malaysian Govern-
                                                                                                                                                                                                                 ment has identified green
                                                                                                                                                                                                                 technology as an emerging
                                                                                                                                                                                                                                                  IGEM is strategically posi-
                                                                                                                                                                                                                                                  tioned to take the green lead
   Exploration continues and                                                                             business. I can give an exam-     in place the necessary con-          Conference Malaysia (IGEM)       driver in the country’s sus-     in the region by converging
new discoveries are still being                                                                          ple.We had a green technol-       ditions to allow the renew-          will be held this year from 7    tainable economic growth.        like-minded industry players
made. Petronas, which in                                                                                 ogy conference and exhibition     able energy sector to expand.        – 9 September in the Kuala          At the official opening of    and professionals from both

February announced the dis-                                                                              last year. This event generat-    There will certainly be good         Lumpur Convention Centre.        last year’s inaugural event,     the public and private sec-
covery of major oil and gas re-                                                                          ed $1.4 billion (£870 million)    opportunities for the private        The event aims to create         Prime Minister Najib Razak       tors and across a range of
serves off the coast of Sarawak,                                                                         worth of business.Sixty coun-     sector and we are encourag-          awareness among con-             stated: “Green Technology        sectors. IGEM 2010 set the
is planning to drill 50 new ex-                                                                          tries were represented – we       ing foreign companies with           sumers and industry players      will play a very important       benchmark as the region’s
ploration wells over the next       We are enabling the renewable energy sector                          are doing it again this           expertise in clean technolo-         of the importance of green       role in charting our coun-       largest green exhibition and
three years.                        to expand. There are many opportunities for                          September.There is huge po-       gies to come and invest.The          technology and eco-prod-         try’s development.As a nat-      conference.This year,it is set
   In November last year, the                                                                            tential in terms of exploration   Green Technology Financing           ucts for sustainable con-        ural corollary to our goal of    to rack up another notch in
Government announced tax            British companies to export their expertise                          and technology. In the past       Scheme is specifically de-           sumption and production,                                          its standing as a hotbed in
breaks to attract more invest-      and turbines to Malaysia”                                            there has not been enough in-     signed to transfer technolo-         while showcasing innovative                                       creating a vibrant mix of op-
ment into the sector, with a                                                                             vestment in this part of the      gy from Western countries            and creative green technol-                                       portunities to help spur in-
waiver of up to 100 per cent                                                                             world but we are certainly        to Malaysia.There are already        ogy and services and eco-                                         dustries and institutions to
                                    PETER CHIN FAH KUI
tax on capital intensive petro-                                                                          catching up with Europe and       numerous foreign companies           products and initiatives.                                         adopt green technology and
leum projects such as deep-         Minister of Energy, Green Technology and Water                       America.A conference like the     who are interested.                  Building on last year’s suc-                                      boost eco-technological in-
water drilling.Tax on the de-                                                                            World Gas Conference is                                                cess, IGEM 2011 is expect-                                        novators.
velopment of marginal fields        able energy.With its abundance    provided through the Gov-          therefore very relevant.          How are you encouraging              ed to draw more than 500         sustainable development,we          This year’s exhibition and
has been reduced from 38 per        of natural resources, Malaysia    ernment’s Green Technology                                           greater energy efficiency?           companies and organisations      aspire to become the re-         conference has a greater fo-
cent to 25 per cent with a          has the opportunity to devel-     Financing Scheme to enhance        What are the challenges fac-         There are two challenges in       from around the world and        gional hub for green tech-       cus on the commercialisa-
waiver of export duties on          op several types of renewable     the application of green tech-     ing your Ministry?                this area.The first is making sure   over 80,000 visitors.            nology.”                         tion of green technology that
the oil produced.                   energy,including biomass gen-     nology.The Small Renewable            Energy needs keep on grow-     that our people know how to             Organised by the Ministry        During the United Nations     can become universally
   “By lowering risks and in-       erated from palm oil waste,       Energy Programme promotes          ing; the challenge is how to      manage their production in           of Energy,Green Technology       Framework Convention on          adopted.IGEM 2011 also in-
creasing the rewards for in-        biogas, municipal waste, solar,   small power plants, utilising      find energy resources and bal-    such a way that they use en-         and Water, in collaboration      Climate Change Conference        corporates a thematic focus
vestment,this initiative will po-   mini-hydro and wind.              renewable energy,to sell elec-     ance demand with available        ergy efficiently.The other as-       with the Malaysian Green         of Parties meeting in            on sustainable energy, re-
tentially lead to additional pe-       The 10th Malaysia Plan gives   tricity to the state-owned         supply.We would like to see       pect is using more efficient         Technology Corporation,          Copenhagen in 2009, the          newable energy and green
troleum-generated revenue of        new emphasis on the use of        electricity utility.               gas and coal make up a small-     technologies.Many of our elec-       Expomal International,           Prime Minister also pledged      energy for adoption and
more than 50 billion ringgit        renewable energy, particular-        The latest moves to kick-       er percentage of the energy       tricity generating plants are        International Green Pur-         to reduce Malaysia’s CO2         start-ups,while providing an
(£10.4 billion) for Malaysia over   ly the use of hydropower for      start the renewable energy in-     mix in comparison to hy-          more than 30 years old so the        chasing Network and Green        emission by up to 40 per         essential platform to launch,
the next 20 years,” the Prime       electricity generation and the    dustry include the establish-      dropower, biomass and re-         technology is almost obsolete        Purchasing Network Ma-           cent by the year 2020.           feature and showcase inno-
Minister says.                      mandatory blending of biofu-      ment of a Sustainable Energy       newable energy. We have a         and not energy efficient. We         laysia,IGEM also aims to pro-    Consequently, Malaysian in-      vative eco-products, green
   However,with Malaysia’s gas      els for the transport sector.     Authority and a feed-in-tariff     commitment to reduce carbon       want to increase production          mote Malaysia as a regional      dustries have taken up the       technologies and services.
reserves predicted to last for      The Government’s target is        (FIT) mechanism that will en-      emissions to 40 per cent of our   and ensure efficiency by in-         green economic hub for eco-      baton, encouraged by a           Organisers encourage the
another three decades and oil       to achieve 5.5 per cent re-       able individuals and compa-        2005 levels by the year 2020.     vesting strongly in new tech-        products and green technol-      favourable policy environ-       attendance of both local and
reserves for less than two          newable energy in Malaysia’s      nies to sell electricity gener-    We are looking at other           nology.There are many oppor-         ogy by encouraging spin-off      ment, in order to help con-      foreign participants with var-
decades, the Government is          total energy mix by 2015.         ated from renewable energy         sources of renewable energy,      tunities for British companies       industries in these areas as     vert the country into the        ious backgrounds in the field
taking steps to diversify the          Incentives worth RM1.5 bil-    to utilities companies at a pre-   like solar power and geother-     to export their expertise and        well as in eco-design and eco-   ASEAN region’s green econ-       of renewable energy and en-
energy mix towards renew-           lion (£313 million) are being     mium rate.                         mal energy, and exploring the     turbines to Malaysia.                materials.                       omy hub.                         ergy efficiency.
SATURDAY, JULY 16, 2011                                                                                                             MALAYSIA                                                                                                                                                    5

Major private players in
the energy and water
sectors, such as the
Malakoff Corporation
and Puncak Niaga, are
powering Malaysia ahead
and expanding to meet
its growing demands
                                                                                                                                                                                                                                  energy and
A      ccording to Zainal Abidin
       Jalil,deputy chief executive
officer of Malaysia’s largest in-
                                                                                                                                                                                                                                  water supplies
                                                                                                                                                                                                                                  The Energy Commission and the National Water
dependent power producer,
                                                                                                                                                                                                                                  Services Commission (SPAN) are looking ahead
the Malakoff Corporation:
“Malaysia and Malakoff have the
experience, the talent and the                                                                                                                                                                                                        ecurity and sustainability Government.The capping of
competence to establish a sus-
tainable business model that
                                                                                                                                                                                                                                  S   of both power and water gas prices below market lev-
                                                                                                                                                                                                                                  supplies are issues that the els, for example, has led to
can incorporate new technolo-                                                                                                                                                                                                     Government has actively a surge in demand,especial-
gies, new expertise and new                                                                                                                                                                                                       been addressing.The coun- ly for industrial use.
partners.Diversity defines us as                                                                                                                                                                                                  try’s domestic energy land-           Charged with oversee-
a nation and the region around                                                                                                                                                                                                    scape has changed significant- ing this complex situation
Malaysia is also very diverse.        Power and water                                                                                                                                                                             ly in the past decade from be- and ensuring sufficient pow-
That diversity is something that                                                                                                                                                                                                  ing an energy-rich country to er supply for Malaysia’s
we can leverage on, not just in                                                                                                                                                                                                   one that may soon need to growing demand is Ahmad
terms of our racial makeup but
in terms of our workforce.We
can quickly develop a business
model that will bring value to
                                      Private companies prepare for                                                                                                                                                               rely on imports to meet its Fauzi Hassan, CEO of the
                                                                                                                                                                                                                                  growing demand and bur- Energy Commission, the
                                                                                                                                                                                                                                  geoning economy.                   Government body respon-
                                                                                                                                                                                                                                      After concentrated ef- sible for regulating the sec-
these diverse places.”
   Mr Zainal says that diversity
has not only strengthened
Malaysian companies at home,
but has helped them to success-
                                      Malaysia’s power-hungry future                                                                                                                                                              forts to develop its petro- tor, and in particular elec-
                                                                                                                                                                                                                                  leum industry in the 1970s, tricity and piped-gas supply.
                                                                                                                                                                                                                                  and major discoveries                 Created in 2001 as part
                                                                                                                                                                                                                                  throughout the following of Government efforts to
                                                                                                                                                                                                                                  two decades, Malaysia be- increase the efficiency of
fully expand in the region and        adapt to the cultures in the                                                                                    5,020 MW,comprising six pow-           in Selangor and Kuala Lumpur,        came a significant producer utility services and in an-
further afield.Malakoff current-      countries where we operate.                                                                                     er stations that run on gas, oil       Puncak grew quickly,and had ex-      and net exporter of petro- ticipation of industry
ly boasts a presence in Jordan,       That has a multiplier effect for                                                                                and coal.Today,Malakoff is look-       panded into China by 2008,           leum products. The coun- deregulation, the Energy
Kuwait,Algeria and SaudiArabia,       the nation and also for Malakoff                                                                                ing for local partners that can        where to date it has invested        try’s national petroleum Commission aims to bal-
and is looking to expand in India     as it increases the ability of our                                                                              bring synergies and help the           over RM140 million (£29 mil-         company,Petronas,has been ance the needs of con-
andVietnam,where it hopes to          people to handle projects.”                                                                                     company develop its presence           lion) in water and wastewater        overseeing the sector since sumers and providers of
develop as a full market player.         Incorporated in 1975 as a                                                                                    in areas where power supply            concession projects.                 its incorporation in 1974. energy to ensure safe and
   “We are positioning our-           plantation-based company,                                                                                       is an economic imperative,says            Last year, the company            Although Malaysia also has reliable supply at reason-
selves to be ready when mar-          Malakoff was listed on the Kuala                                                                                Mr Zainal.                             opened its Singaporean sub-          a well-developed gas supply able prices, while foster-
ket forces truly drive the pow-       Lumpur Stock Exchange the                                                                                           Though Mr Zainal believes          sidiary, which will spearhead        infrastructure, gas reserves ing economic develop-
er industry in Malaysia.We want       following year.In 1993,it divest-                                                                               that Malaysia’s growing power          Puncak’s expansion into              are estimated at just 88 tril- ment and competitive
to grow organically as a pow-         ed its plantation assets and ven-                                                                               needs must be met primarily by         Vietnam,Cambodia and Laos,           lion cubic feet. Indeed, gas markets in an environmen-
er generator;there is no ques-        tured into the power sector.The                                                                                 conventional power in the short        among other Asian countries.         production is               The nation’s        tally sustainable
tion about that.Beyond that,we        company’s major shareholders                                                                                    to medium term, he says that           In Malaysia, Puncak is the           now declining by
                                                                                                                                                                                                                                                        flourishing economy manner.
are interested in participating       include MMC Corporation (51                                                                                     Malakoff is interested in ex-          largest water supply conces-         10 per cent an-                                    Responsible
                                                                                                                                                                                                                                                       has greatly increased
in all levels of the industry which   per cent), a UK-based inde-                                                                                     panding its renewable energy ca-       sionaire,with more than 4,000        nually and the                                  for the equally
include distribution and trans-       pendent power producer list-                                                                                    pacity. “We have only started          employees.                           country is reliant demand for energy challenging task
mission,” says Mr Zainal.             ed on the London Stock                                                                                          with renewable energy in re-              While building its capacity as    on imports for 25 over the past decade of ensuring suffi-
   “Going forward, Malakoff is        Exchange, and the Employees                                                                                     cent years so we have not yet          a leading regional water,waste-      per cent of its          and changed its        cient clean wa-
very focused on growing out-          Provident Fund (30 per cent),                                                                                   reached a point where we are           water and environmental solu-        supply.                 energy landscape ter supply for the
side of Malaysia. Right now we        a Malaysian pension fund.                                                                                       scaling up big time, but every-        tions provider, Puncak is also           Another major          substantially;       nation is Dato’
have visibility as a power and           Malakoff’s core business in-                                                                                 one needs to be serious about          aiming to become a significant       source of energy Malaysia is expected Teo Yen Hua,
water player in the MENA              cludes power generation, wa-                                                                                    investing in renewable energy.         player in the oil and gas sector     in Malaysia is coal.     to become a net        CEO of SPAN,
(Middle East and North Africa)        ter desalination and operations                                                                                 It is not possible in terms of scale   through the innovative use of        The country has importer of energy the National
region.We have a very strong          and management services. In                                                                                     at the moment because the              its water technology.                deposits in Sabah            by 2019            Water Services
workforce and when we send            Malaysia, the company has an                                                                                    power requirements have to                Using cutting-edge systems        and Sarawak, but                                Commission.
them abroad they are able to          effective generation capacity of     Malaysia is intensifying renewable energy development                      be met by conventional means,          and processes,Puncak hopes to        again, only a small percent- Appointed as CEO in 2007,
                                                                                                                                                      and we need to deal with this.         collaborate with established lo-     age of local coal is being Mr Teo had previously
                                                                                                                                                      However,we must be prepared            cal and international oil and gas    mined due to remoteness served in the Malaysian civ-
                                                                                                                                                      for renewable energy playing a         technology service providers         and quality factors, and il service for 32 years,hold-
GreenTech grasps industry’s green nettle                                                                                                              bigger part and we are getting
                                                                                                                                                      ready for it,” he says.
                                                                                                                                                          Another Malaysian compa-
                                                                                                                                                                                             in developing water and waste-
                                                                                                                                                                                             water applications in petro-
                                                                                                                                                                                             chemical plants and offshore
                                                                                                                                                                                                                                  Malaysia imports a signifi- ing positions in the Treasury,
                                                                                                                                                                                                                                  cant percentage of its sup- the Ministry of International
                                                                                                                                                                                                                                  ply for power generation. Trade and Industry,Ministry
Malaysia takes the green lead, from education to financial incentives and the region’s largest expo                                                   ny seeking to expand its con-          facilities and in onshore and off-   Both hydro and alternative of Primary Industries and
                                                                                                                                                      tribution to energy and water          shore pipeline construction.         sources of energy, especial- Ministry of Education be-
    he Malaysian Green                of how green technologies per-       academy to train Government           on green technology, so we           security and to meet the de-              In 2010, Puncak’s water           ly biomass,biogas and solar, fore being posted to
T   Technology Corporation –
GreenTech Malaysia – aims to
                                      meate through different sec-
                                      tors, including energy, building
                                                                           staff and the private sector.
                                                                           GreenTech is going to offer a
                                                                                                                 want companies from the UK
                                                                                                                 and the world to come and join
                                                                                                                                                      mands of urban growth is
                                                                                                                                                      Puncak Niaga.Executive chair-
                                                                                                                                                                                             treatment plants achieved 99.9
                                                                                                                                                                                             per cent compliance with wa-
                                                                                                                                                                                                                                  hold potential for the fu- Ministry of Energy,
                                                                                                                                                                                                                                  ture. Although the alterna- Communications                   and
be a one-stop focal point for         construction, transportation,        consultancy service,in terms of       us,” adds Dr Nazily.“We are cur-     man Rozali Ismail says that            ter quality standards, deliver-      tive energy sector in Malaysia Multimedia in 2000.
green technology development          ICT,water and waste manage-          energy saving,green townships,        rently doing business matching       Malaysia is still battling with es-    ing a combined capacity of 692       will still take some time to          As head of the agency re-
for Malaysia and also be a cat-       ment industries.GreenTech or-        carbon and water footprint cal-       and financing.” If a foreign com-    calating costs in meeting water        million cubic metres of treat-       reach fruition, the country sponsible for regulating the
alyst for the whole region.           ganises road shows nationwide        culation and ICT as well.”            pany has a Malaysian partner,        needs in rural areas, and that         ed water. Due to a higher de-        does have a significant hy- nation’s water supply, Mr
Previously known as Pusat             and has also devised a televi-          During last year’s budget          there is a tax incentive from the    progress to restructure the wa-        mand for water, the group’s          dropower sector,and there Teo has worked to increase
Tenaga        Malaysia,      the      sion programme, Green Kids,          speech,the Prime Minister an-         Government,which pays 2 per          ter sector has been slow due           revenues climbed slightly last       is still room for new mini and efforts towards improving
Government-funded non-prof-           to educate on                                          nounced the         cent of the interest.So if it is 5   to overlapping interests and           year by 1.3 per cent to RM1.9        micro hydropower projects. the operational efficiency of
it organisation comes under           how to min-                                            G r e e n           per cent then the company on-        lack of agreement on compen-           billion (£396 million).                  Consequently,Malaysia is the industry and the reduc-
the auspices of the Ministry of       imise environ-                                         Technology          ly has to pay 3 per cent.            sation schemes that have imped-           “There are challenges ahead       expected to become a net tion of non-revenue water.
Energy, Green Technology and          mental degra-                                          Financing              True to Malaysia’s green ini-     ed the holistic management of          of us in the 21st century.With       importer of energy by 2019,           Tasked with ensuring the
Water, facilitating the realisa-      dation, such                                           Scheme. The         tiatives,IGEM,the International      the sector.                            the urbanisation process taking      especially given projections long-term availability and
tion of the national green tech-      as deforesta-                                          Government          Greentech and Eco Products               Water is an essential basic hu-    place,we anticipate a significant    in energy consumption sustainability of water sup-
nology agenda through value-          tion and pol-                                          has dedicated       Exhibition and Conference            man need and the continuous            increase in the demand for wa-       growth.                            ply, as well as its conserva-
adding promotion, co-ordina-          lution.                                                1.5 billion ring-   Malaysia,is ASEAN’s largest an-      supply of safe, affordable and         ter,especially in high growth ar-        Compounding the com- tion, SPAN works to opti-
tion and collaboration on green          “We have to come up with          git (£305 million) to launch the      nual event of its type.This year,    clean drinking water was a fo-         eas like Selangor,Kuala Lumpur       plexity of Malaysia’s power mise the productivity of the
technology policies – ranging         a green technology road map          initiative to encourage produc-       the four-day IGEM 2011 expo          cus of the country’s 2010              and Putrajaya.Considering the        sector are the country’s sys- water supply and waste-
from training, bringing togeth-       for the country to help pre-         ers and users of green technol-       starts on September 7 and will       Budget, 29 per cent of which           challenges of environmental pol-     tems of subsidies and tariffs. water services industry by
er universities,research institu-     pare policies for the                ogy to come forward.                  be a hotbed of buyers, sellers       was allocated to water supply          lution, and its effect on water      While petroleum products monitoring operator com-
tions, industries and various         Government,” says Dr Nazily          Applications are made via             and investors from around the        and wastewater services.               supply, every effort should be       are linked to market prices, pliance with quality stan-
other national and internation-       Mohd Noor, CEO of                    GreenTech and so far in ex-           world exploring trade and col-           Formed in 1994 to manage           made to protect the environ-         gas prices and electricity tar- dards and through continued
al organisations – on a gamut         GreenTech Malaysia.“Our cor-         cess of 200 million ringgit has       laboration opportunities, cre-       30 wastewater treatment plants         ment,” comments Mr Ismail.           iffs are regulated by the capital works development.
of green technology matters.          poration is required to pro-         been earmarked for 17 com-            ating a vibrant mix of opportu-
   Deploying various education-       mote [the use of green tech-         panies.“One of its main objec-        nities to help spur industries and
al promotional initiatives,           nology], so we have to train         tives is to draw in foreign di-       institutions to adopt green tech-
GreenTech is raising awareness        people.We will be launching an       rect investment.We are focused        nology.

IWK adds value to waste
Indah Water Konsortium manages the sewerage system and is now embarking on green technology

       alaysia’s quest to become      dustrial use in cooling systems.                                           business relationships that ben-
M      a technologically devel-
oped nation is evident down
                                      For domestic use,the effluent
                                      can be used for flushing toilets,
                                                                                                                 efit the country and support
                                                                                                                 the green concept,” observes
to its sewerage systems.Indah         apart from other areas in gar-                                             Abdul Kadir.“We’re interest-
Water Konsortium (IWK), a             dening or landscaping,” Abdul                                              ed in projects that are not on-
wholly owned company of the           Kadir says.                                                                ly workable but also viable.
Minister of Finance (Inc), is            Sludge or bio-solid, can al-                                            Only then, a long-term part-
Malaysia’s national sewerage          so be converted into bio-fuel                                              nership can be fostered.”
company. Besides developing           and fertiliser through com-                                                   Although IWK seeks assis-
and maintaining a modern and          posting and ‘nanobricks’ –                                                 tance from the private sector
efficient system for the coun-        bricks produced using sludge                                               to invest in green technology,
try, it seeks greater value in        via nano-technology.                                                       the company has turned heads
wastewater management.                   The other by-product from                                               regionally for its own merits
   “We’ve been embarking on           treated wastewater is methane                                              in sewerage systems.It boasts
the concept of sustainability         gas, which can also be used as       Datuk Ir Abdul Kadir                  a state-of-the-art training cen-
through zero waste manage-            an energy source. “The vol-          Mohd Din, CEO of IWK                  tre equipped with actual man-
ment,” explains Datuk Ir Abdul        ume of sludge that is generat-                                             holes,septic tanks and sewage
Kadir Mohd Din,CEO of IWK.            ed yearly is equivalent to the       hance the volume of gas from          treatment plant
The company actively pursues          Kuala Lumpur City Centre             sludge treatment, and invites            “We’ve been contributing
pilot projects that employ green      Twin Towers. That is a huge          them through open tenders             to the wastewater industry
technology to convert the by-         volume of sludge that we have        under the public-private part-        abroad, namely Indonesia,
products of wastewater treat-         and it is untapped. We have          nership (PPP) and private fi-         Vietnam and the Philippines
ment into usable commodities.         ideas,but we have to find ways       nance initiative (PFI) schemes.       on various aspects of sewer-
   “In the sewerage sector we         of marketing them,” comments         In 2010, the Government               age management,” says Abdul
generate waste, which is              Abdul Kadir.                         launched a green technology           Kadir.“We’ve also been invit-
reusable and recyclable in the           He also says that IWK wel-        financing scheme and could            ed to conferences and forums
form of solid,liquid and gas.The      comes technology providers to        potentially provide incentives.       to share our values and expe-
effluent can be recycled for in-      share their know-how to en-             “We’re looking for long-term       riences.”
6                                                                                                                          MALAYSIA                                                                                                                  SATURDAY, JULY 16, 2011

Oil and gas fuel                                                                                                                         Malaysia to host the
                                                                                                                                         25 World Gas Conference
economic growth                                                                                                                          The global gas industry will converge in Kuala Lumpur come June of next year

                                                                                                                                         A    ll eyes will be on Kuala Lumpur as it this,according to Zahariah Abdul Rahman
                                                                                                                                              embraces the opportunity to host the (fondly known as Liza), is what makes the
Malaysia’s extensive gas pipeline infrastructure will be opened up                                                                       25th World Gas Conference, due to take WGC2012 “unique and highly relevant to
                                                                                                                                         place on 4-8 June 2012.With an expected the most current trends while addressing
to third parties once its LNG processes are ready next year                                                                              attendance of 3,500 paying delegates, 250 pressing issues of the future.”
                                                                                                                                         international speakers,14 keynote address-         WhileWGC2012 aspires to build a new
      he global economic cri-                                                                                                            es and as many as 200 exhibitors, this tri- benchmark with the presentation of new
T     sis and volatile oil prices
are posing significant chal-
                                       In fact, Malaysia is a hub
                                    for the trans-Asia gas
                                    pipeline and has connections
                                                                     Petronas, but once the im-
                                                                     port facilities are set up, we
                                                                     will encourage others to
                                                                                                       SapuraCrest Petroleum
                                                                                                       Berhad is involved in off-
                                                                                                       shore drilling, pipeline and
                                                                                                                                         ennial occasion is promised to be the most elements into theWGC series,it is still de-
                                                                                                                                         prestigious event in the gas industry.          signed to ensure exquisite networking plat-
lenges for the sector. Even         to Singapore, Vietnam and        bring in LNG.”                    facility construction, off-          Themed “Gas:Sustaining              LOCATION                  forms and social events that
with the focus on renew-            Indonesia, with additional          There is also an increas-      shore marine engineering,         Future Global Growth”,                                           have been the tradition dur-
                                                                                                                                                                            The 25th World Gas
able energies and combat-           plans for future expansion.      ing focus in the industry on      and maintenance activities        this event is of special im-                                     ing the previous WGCs.
ing climate change, natural            Along those lines,            R&D,with significant efforts      for the oil and gas and pow-      portance to Malaysia as this
                                                                                                                                                                         Conference will take place Participants can expect to
gas continues to be seen as         Malaysia is open to sharing      under way to enhance tech-        er industries. The group is       is only the second time in          at Kuala Lumpur              gain first hand awareness of
an increasingly cleaner,            its excellent infrastructure     nology. Schlumberger Asia,        currently one of the largest      its history that WGC is            Convention Centre.            the latest technologies of the
more sustainable source of          with other market players,       a leading global supplier of      integrated oil and gas serv-      hosted in Asia,and the first Delegates and exhibitors gas industry from the stud-
energy.                             which, together with its ide-    technology and integrated         ice providers in Malaysia.        time held in the ASEAN re- will have the opportunity to ies that will be presented
   According to Datuk Dr            al location, make it a prime     project management servic-           Further evidence of the        gion.The honour given to            enjoy a total event          during the conference.“As a
Abdul Rahim Hashim,                 candidate for foreign direct     es for the oil and gas indus-     country’s importance in the       Malaysia for the triennial          experience at the            delegate,participation means
Malaysian Gas Association                                                                              global industry is the fact       presidency of 2009-2012 WGC2012 Concept Village to be part of the future
and International Gas Union                                                                            that it will be a first-time      and also as the hosting          that houses all facilities course of the gas industry as         Zahariah (Liza) Abdul Rahman,
(IGU) president, “With the                                                                             host of the World Gas             country for World Gas              within its compound           this is an event made by the     CEO and Head Directorate of the
right policies and proper gov-                                                                         Conference (WGC) in               Conference             2012                                      industry, for the industry,”     National Organising Committee,
ernance, we can be a key                                                                               2012,an event set to feature      (WGC2012),truly reflects the International says Liza.                                             World Gas Conference 2012,
player in the energy indus-                                                                            over 3,500 delegates, 250         Gas Union as a highly international organ-         Malaysia also has an array of features to      Kuala Lumpur
try and […] fuel the growth                                                                            international speakers, and       isation while acknowledging the growing offer the participants, ranging from its di-
energy development in the                                                                              200 exhibitors.                   importance of Asia in the gas industry.         verse multicultural population, adaptable         to it. Not forgetting about bringing to the
country, the region and ulti-                                                                             A recent article about the        Next year’s WGC promises something lifestyle and a well-developed infrastructure.              centre stage our capabilities and knowledge
mately to the world.”                                                                                  event confirmed that “WGC         different for the participants by initiating These constitute a good package for visi-            to organise an event of a global magnitude
Ambitious words,but they al-                                                                           2012 has a unique opportu-        three special projects through Task Forces tors from all parts of the world to feel at            while continuing to advocate gas as the fu-
so accurately reflect the facts.                                                                       nity to advance Malaysia’s        in addition to the existing working and ease and delighted and would also give                    el of choice for sustainable progress,” Liza
   Energy production in                                                                                profile as a leader in the gas    programme committees.TheseTask Forces them a chance to experience the unique                      enthused.
Malaysia has generally been                                                                            industry,[with the event pro-     will address significant issues such as hu- Malaysian hospitality.                                   Being a premier gas conference,
based on its ample oil and                                                                             viding a] strategic meeting       man capital, nurturing the future genera-          “It will be a refreshing experience as we      WGC2012 is generating a substantial
natural gas resources.As for                                                                           ground for major gas indus-       tions, and geopolitics and natural gas, and will be injecting some Malaysian culture in-          amount of interest from key players in the
powering the country,60 to                                                                             try players and suppliers to                                                                                                        international gas industry.With regards to
70 per cent of power gen-                                                                              showcase their latest tech-       WGC2012 KEYNOTE SPEAKERS ARE (ORDER IS ALPHABETICAL BY COMPANY)                                   the local and regional arena,the event has
erated in Malaysia is from          Datuk Dr Abdul Rahim Hashim, President of the Malaysian            nologies and products to in-      Lawrence Borgard                 Chairman,American Gas Association &                              full support from the Malaysian Gas
gas,and state-owned oil and         Gas Association and the International Gas Union                    dustry decision-makers.”                                           President & COO, Utilities, Integrys Energy Group, Inc           Association.Malaysia’s national oil compa-
gas company Petronas con-                                                                                 According to Dr Abdul:                                                                                                           ny,PETRONAS,is the host sponsor for the
tributes more than 40 per           investment. Samsuddin bin        try, is a driving force in this   “Although robust efforts to       George Kirkland                  Vice Chairman & Executive Vice President,                        event and is working closely
cent to Government rev-             Miskon, managing director        area.According to its chair-      commercialise renewable                                            Global Upstream & Gas, Chevron Corporation                       with theWGC2012 National
enues and almost half of            and CEO of Petronas, says,       man,Jamal Ainul:“With Asian       energy sources are under          Rex W Tillerson                  Chairman & CEO, Exxon Mobil Corporation                          Organising Committee to en-
Malaysia’s GDP.                     “We have around 3,000            demand for oil and gas on a       way, fossil fuels (oil, gas and   B C Tripathi                     Chairman & Managing Director, GAIL (India) Limited               sure that Malaysia holds the
   As for powering the world,       kilometres (1,864 miles) of      strong upward trend,the lo-       coal) will continue to be the                                                                                                       most successful and memo-
Malaysia is the second largest      pipelines that can transfer      cation of manufacturing and       backbone of the world en-         Paul van Gelder                  Chairman of the Executive Board & CEO, Gasunie                   rable event in theWGC series.
liquefied natural gas (LNG)         gas from offshore Malaysia.      sustaining teams in the re-       ergy mix in decades to            Gérard Mestrallet                Chairman and CEO of GDF SUEZ
producer worldwide and              This means that there is         gion enhances operational         come, supplementing 70 to                                                                                                            WGC2012 KEY DATES
                                                                                                                                         Alexey Miller                    Deputy Chairman of the Board of Directors &
Petronas’s Bintulu Complex          potential for gas to come        excellence and enables the        80 per cent of total global                                                                                                          1 February –     Call for Papers
                                                                                                                                                                          Chairman of the Management Committee, OAO Gazprom
is one of the largest LNG fa-       in for industry, and we are      efficient development of the      needs.” He also affirms                                                                                                              1 September 2011 Abstract Submission
cilities on the globe.              also working on new im-          solutions needed to match         Malaysia’s leading position       Karen Agustiawan                 President Director & CEO, PT Pertamina (PERSERO)
                                                                                                                                                                                                                                            1 April –        Early Bird
   The country has a lot go-        port facilities, which will be   the region’s technological        is because of what it has in      Hamad Rashid Al Mohannadi        Managing Director, RasGas Company Limited                         31 December 2011 Registration
ing for it: a long and suc-         ready next year.When our         challenges.”                      its own backyard.
cessful track record as an oil      LNG processes are ready in          Another player in Malaysia        Going forward,Malaysia is      Peter Voser                      CEO, Royal Dutch Shell                                            30 April 2012    Deadline for
and gas exporter, a exten-          2012, we will be opening         with significant expertise in     set to continue to play a ma-     Helge Lund                       President & CEO, Statoil ASA                                                       Registration on
sive pipeline network, and a        up our gas infrastructure        the oil and gas industry is do-   jor role in the growth of the                                                                                                                         WGC2012 Website
                                                                                                                                         Mitsunori Torihara               Chairman,The Japan Gas Association
prime location in the Asia-         to third parties. It is cur-     mestic technology expert          world’s gas industry and in                                                                                                          2 – 8 June 2012  Onsite Registration
Pacific region.                     rently being used solely by      Sapura Group.Its subsidiary       meeting future energy needs.      Christophe de Margerie           Chairman & CEO,TOTAL
SATURDAY, JULY 16, 2011                                                                                                                                                     MALAYSIA                                                                                                                                             7

Collaborations bolster defence industry
The proposed Malaysia Defence and Security
Technology Park will be the first of its kind in ASEAN
and make Malaysia the region’s defence industry hub
                                                                                                                                                                                                                                                                                                    We are going to use
    ungkai is a small town                                                                                                                                                                                                                                                                          Malaysia as
S   located in Perak some 75
miles from Kuala Lumpur.
                                    been inviting companies from
                                    Europe,North America,Korea,
                                    Australia and New Zealand,                                                                                                                                                                                                                                      a hub to market any
Easily accessible via the           and we have indicative invest-                                                                                                                                                                                                                                  products that
North-South Expressway, it          ment of around £940 million                                                                                                                                                                                                                                     British companies
is set in an area of lush green-    so far.”
ery, hills, streams and rivers,        “The Government is pro-                                                                                                                                                                                                                                      make over here
and the nearby Sungai Klah          viding the infrastructure so                                                                                                                                                                                                                                    for the ASEAN
Hot Springs Park is reputed         that companies can set up
to be one of the best in            there, and tax incentives will                                                                                                                                                                                                                                  market as well
Malaysia.                           be given to foreign investors                                                                                                                                                                                                                                   as products from
   In the not too distant future,   who would like to invest in
however, Sungkai will be            MDSTP,” Dr Ahmad Zahid                                                                                                                                                                                                                                          North America
known as more than a place          adds. “We are working with
for a relaxing break and a          two universities to provide the                                                                                                                                                                                                                                 We have been
detox. For this is the chosen       workforce and with financial in-
location for the proposed           stitutions locally to partly fi-                                                                                                                                                                                                                                working very well
Malaysia Defence and Security       nance soft loans.”                                                                                                                                                                                                                                              together so far;
Technology Park (MDSTP).               The park will be managed by
The 3,115-acre zone will be         Masterplan Consulting,one of                                                                                                                                                                                                                                    we have joint
                                                                       US DEPARTMENT OF DEFENCE PHOTO BY CHERIE CULLEN

dedicated exclusively to pro-       the leading security and de-                                                                                                                                                                                                                                    programmes
viding high-tech manufactur-        fence companies in Malaysia,
ing facilities and services for     which is forming a joint ven-                                                                                                                                                                                                                                   and exchange
local, regional and global de-      ture with Blenheim Capital.                                                                                                                                                                                                                                     programmes –
fence and security companies.       Ahmad Faris Bin Abdul Halim,                                                                                                                                                                                                                                    we send our officers
   The Government has hired         Masterplan’s chief executive
London-based Blenheim               officer, says: “There is much                                                                                                                                                                                                                                   to Sandhurst in the
Capital Partners to finance         work to be done to design and                                                                                                                                                                                                                                   UK for example”
and develop the zone, using         deliver the strategy for the
hundreds of millions of dol-        park but this framework po-
lars owed to Malaysia from          sitions us well for success and                                                                                                                                                                                                                                 DATO’ SERI DR
offset clauses in defence           I am sure that together                                                                                                                                                                                                                                         AHMAD ZAHID
equipment deals.Such obliga-        Masterplan and Blenheim will                                                                                                                                                                                                                                    HAMIDI
tions already total around          deliver.”
                                                                                                                                                                                                                                                                                                    Minister of Defence
£125 million and the amount            MDSTP reflects a desire by                                                        Malaysian Defence Minister Ahmad Zahid Hamidi, left, and US Ambassador to Malaysia Paul Jones greet US Defence Secretary Robert M Gates, centre, in Kuala Lumpur
will increase with planned fu-      Malaysia to develop profit-
ture defence spending.              making activity in its defence                                                       billion, about 10 per cent of    The largest of these was for       president of exports and in-      as a few cluster companies         and contribute an additional      DA) between Malaysia, the
   Dato’ Seri Dr Ahmad Zahid        sector. Dr Ahmad Zahid sees                                                          which would be for procure-      257 8X8 armoured personnel         ternational business for BAE      which are doing R&D for de-        £2.63 billion by 2020.            UK, Singapore, New Zealand
Hamidi, Malaysia’s Defence          the industry as an emerging in-                                                      ment.He added,however,that       carriers (APCs) for the            Systems’ Land and Armaments       fence products.We are going           Earlier this year Abu Dhabi-   and Australia.Dr Ahmad Zahid
Minister, says the MDSTP will       dustrial activity that could be-                                                     Malaysia was unlikely to spend   Malaysian army.                    sector when the joint venture     to use Malaysia as a hub to        based Mubadala Aerospace          says much of the value of the
be the first of its kind in the     come an important contribu-                                                          much more during the re-            The vehicles will be de-        was announced.                    market any products that           signed a memorandum of un-        agreements lies in training,de-
Association of Southeast Asian      tor to the economy.                                                                  mainder of the decade be-        signed, developed and manu-           Dr Ahmad Zahid says            British companies make over        derstanding with Malaysia’s       veloping human capabilities
Nations (ASEAN) region,turn-           Malaysia has spent big on                                                         cause of the need to channel     factured locally over six years    Malaysia needs to build its own   here for the ASEAN market          National Aerospace and            and exchanging ideas.“We have
ing Malaysia into a regional        defence in recent years.From                                                         state investment into educa-     by DRB-Hicom Defence               defence industry, rather than     as well as products from           Defence Industries (NADI)         been working very well to-
hub for the industry and cre-       2005-2009 it had the largest                                                         tion,health and infrastructure   Technologies (Deftech) work-       simply acquiring military as-     North America. We are also         to explore joint defence and      gether so far; we have joint
ating opportunities that will       increase in defence spending                                                         projects.                        ing in partnership with FNSS       sets developed and manufac-       collaborating with other           commercial MRO cross-re-          programmes and exchange
contribute significantly to the     of any Southeast Asian nation,                                                          The focus of the Defence      – one of Turkey’s leading de-      tured in other countries.         ASEAN countries to manu-           ferral and partnership oppor-     programmes – we send our
prosperity and growth of the        according to the Stockholm                                                           Ministry now is on continued     fence firms and itself a joint        “We are creating our own       facture products and market        tunities.                         officers to Sandhurst in the
country.                            International Peace Research                                                         modernisation and on improv-     venture between the Nurol          technology domestically,work-     products.”                            Malaysian forces have con-     UK for example,” he says.
   “With the Malaysian De-          Institute.Spending on defence                                                        ing Malaysia’s own defence       Group and BAE Systems.FNSS         ing with the National Defence        Malaysia is also keen to cap-   tributed to peacekeeping ef-         Visiting Malaysia to discuss
fence and SecurityTechnology        and security accounted for                                                           production capabilities.         will provide the technical as-     University and theTechnology      ture a larger share of the grow-   forts with the United Nations     defence and security issues of
Park we are seeking to propel       10.6 per cent of development                                                            At last year’s Defence        sistance and technology trans-     University of Malaysia and oth-   ing and lucrative maintenance,     in Lebanon and Afghanistan.       concern to both nations ear-
Malaysia into an innovation-        expenditure under the 9 th                                                           Services Asia (DSA) exhibi-      fer to enable Deftech to pro-      er higher education institu-      repair and overhaul market         Through cooperation with its      lier this year,Britain’s Defence
led economy, by hosting the         Malaysia Plan – £4.38 billion.                                                       tion at the Putra World Trade    duce the vehicles in Malaysia.     tions,andwith the private sec-    (MRO) and to develop its po-       neighbours, it plays a key role   Secretary Liam Fox said
most advanced and fully inte-          In a recent interview, Dr                                                         Centre in Kuala Lumpur, the         “This effort will not only      tor to commercialise the end      tential as a one stop MRO          in keeping the region stable      Malaysia was an important
grated centre for research and      Ahmad Zahid was quoted as                                                            Ministry signed deals for the    benefit the Malaysian Army,        product,” he says.                centre in Southeast Asia.MRO       and peaceful.                     regional power and described
development,producing inno-         saying that over the five years                                                      procurement of defence           but will also further develop         “We have been working          Entry Point Projects under the        This year marks the 40th an-   the FPDA as “the corner-
vative defence industry relat-      covered by the 10th Malaysia                                                         equipment and spare parts        the indigenous capability in       very closely with British de-     EconomicTransformation plan        niversary of the Five Power       stone of our engagement in
ed products,” he says.“We have      Plan the outlay would be £5.42                                                       worth more than £2.17 billion.   Malaysia,” said John Kelly, vice   fence industry players as well    could create 21,000 extra jobs     Defence Arrangements (FP-         Southeast Asia.”.

BHIC has ‘huge potential for growth’
One of the major players in Malaysia’s defence sector, Boustead Heavy Industries Corporation (BHIC) is looking to double its order book
     ice Admiral Tan Sri Dato’      pects to at least double its
V    Seri Ahmad Ramli Mohd
Nor, executive deputy chair-
                                    order book thanks mainly
                                    to defence projects worth
                                                                                                                         Organisation requirement
                                                                                                                         of double-hulled tankers for
                                                                                                                         oil transport. Vessel repair
                                                                                                                                                          this, we can acquire knowl-
                                                                                                                                                          edge and technologies that
                                                                                                                                                          we need.”
                                                                                                                                                                                                Recently, the group ex-
                                                                                                                                                                                             panded into the local avia-
                                                                                                                                                                                             tion industry through its
man and managing director of        about £250 million secured                                                           and maintenance is another          One of the company’s most       £20.8 million acquisition of
BHIC,believes the outlook for       from the Government last                                                             area of activity in which the    recent joint venture deals is      MHS Aviation, which pro-
the defence industry is very        year.More recently,the com-                                                          company sees significant         Pyrotechnical Ordnance             vides helicopter services for
positive. “We feel that our         pany has been finalising a                                                           profit potential.                Malaysia, a partnership be-        oil and gas companies in
business has a huge potential       contract to build a second                                                             BHIC is involved in a num-     tween Boustead Defence             Malaysia.
for growth,” says Mr Ramli.         group of six second-gener-                                                           ber of joint ventures with       Technologies and Prokhas              Tan Sri Dato’ Lodin Wok
“Having said that, we do not        ation patrol vessels for the                                                         multinational companies; in-     Manager to produce and sell        Kamaruddin, deputy chair-
just rely on the Government         Royal Malaysian Navy. BHIC                                                           cluding the European             propellants for the defence        man and group managing di-
to use our services – we also       associate Boustead Naval                                                             Aeronautic Defence and           sector. Some £12 million has       rector, believes that the ac-
tap into the commercial mar-        Shipyard delivered a first set                                                       Space Company (EADS), for        been invested in the plant at      quisition strengthened the
kets.”                              of six vessels, each worth                                                           example, and DCNS of             Bentong,Pahang,where pro-          group’s existing involvement
   Employing more than              around £208 million, last                                                            France.                          duction is expected to start       in the oil and gas sector via
2,000 people, BHIC has ex-          year.                                                                                  “We hope to have more          by the end of next year.           BHIC.
tensive experience in the              At the same time, BHIC                                                            partnerships of this nature,”    Initially it will produce pro-        He says: “We are opti-
maintenance, repair and             is seeking to expand its com-                                                        says Mr Ramli.“In the course     pellants for local use,but they    mistic that this latest acqui-
overhaul of naval and land-         mercial shipbuilding business.                                                       of all these collaborations,     will eventually be marketed        sition will provide a positive
based electronics defence           As one of seven Petronas-                                                            we hope to grow our mar-         throughout the region.             contribution to the group’s
systems.It is a leader in naval     licensed fabricators, the                                                            ket and expand our reach.           BHIC is part of Boustead        bottom line on a long-term
system maintenance in               company hopes to benefit                                                             To achieve our full growth       Holdings,a large conglomer-        basis, more so as MHS’s rep-
Southeast Asia, servicing and       from the substantial capital                                                         potential, we cannot limit       ate with interests in planta-      utation is a strong one.They
repairing defence and ma-           expenditure programme                                                                ourselves to the domestic        tions, heavy industries, prop-     are the pioneer helicopter
rine electronic systems for         planned by the state oil                                                             market; we need to widen         erty, finance and investment,      service provider for the off-
the Royal Malaysian Navy.           producer, and also from                                                              our scope to the external        trading, and manufacturing         shore oil and gas sector in
   Mr Ramli says BHIC ex-           the International Maritime                                                           markets, as well. Through        and services.                      Malaysia.”                        Tan Sri Dato’ Lodin Wok Kamaruddin, Group Managing Director, Boustead Holdings Berhad
8                                                                                                                                MALAYSIA                                                                                                                       SATURDAY, JULY 16, 2011

Sapura Group’s tech talent is in global demand
                                                                         Founded on the principle of promoting knowledge and education, the Sapura Group today is one of the nation’s most successful oil & gas and defence companies

                                                                             oreign investors interested      introducing cutting-edge tech-
                                                                         F   in Malaysia need to consid-
                                                                         er what they can contribute as
                                                                                                              nology to the Malaysian armed
                                                                                                              forces through the transfer of
                                                                                                                                                   ice providers in Malaysia. It is
                                                                                                                                                   involved in offshore drilling,in-
                                                                                                                                                   stallation of pipelines and facil-
                                                                                                                                                                                           Mr Shamsuddin says the con-
                                                                                                                                                                                        tract will mark a “step change
                                                                                                                                                                                        in ascending the oil and gas val-
                                                                                                                                                                                                                            penditures. We may have the
                                                                                                                                                                                                                            capital and the people, but we
                                                                                                                                                                                                                            may lack certain technologies,
                                                                                                                                                                                                                                                                right professionals,” says Mr
                                                                                                                                                                                                                                                                Shamsuddin.“The real value is
                                                                                                                                                                                                                                                                in educating your workforce
                                                                         well as what they might gain.The     technology from international        ities, marine services, offshore     ue chain and developing new         and that is where we go for joint   and giving them the opportu-
                                                                         future lies in joint ventures with   partnerships, participation in       and nearshore marine engi-           competencies in new areas of        ventures.”                          nity to work on cutting-edge
                                                                         companies ready to share the         many Malaysian flagship indus-       neering,the design and the man-      the oil and gas industry.”            He says the common de-            projects.You need to educate
                                                                         technology and the wealth,and        trial programmes and the syn-        ufacture and operation of re-           Over the next two years,         nominator between Sapura’s          them so that they themselves,
                                                                         help to build the economy.           ergy within the Sapura Group.        mote-operated vehicles.It also       SapuraCrest Petroleum is al-        businesses is the way the com-      through R&D,can add value to
                                                                            That is the view of Datuk            A diversified international       undertakes maintenance activ-        locating some £560 million          pany trains its people.             your own original ideas.”
                                                                         Shahril Shamsuddin, president        business with interests in se-       ities for the oil and gas,marine     for capital expenditure on new        The group was founded by             Sapura’s dedication to edu-
                                                                         and CEO of the Sapura Group.         cured technologies,oil and gas,      and power utility industries.        regional offices,assets and hu-     Mr Shamsuddin’s father,Tan Sri      cation and training extends be-
                                                                         “Gone are the days where you         industrial and automotive man-          One of SapuraCrest Pe-            man resources. Regional of-         Shamsuddin,on the principle of      yond its own employees.The
                                                                         can just come into a market and      ufacturing,and knowledge and         troleum’s more recent coups,         fices are planned forVietnam,       promoting knowledge and ed-         education element of its sub-
                                                                         sell,” he says.“It is important to   education, Sapura is a wholly        as part of a consortium includ-      Myanmar,Australia and South         ucation.                            sidiary Sapura Resources pro-
                                                                         go into the market and create        Malaysian technology-based           ing Kencana Petroleum and            America.                              Commitment to capability-         vides higher education infor-
                                                                         value, to serve the market           operation that has taken a lead-     Petrofac Energy Developments            The Sapura Group has joint       building of homegrown talent        mation technology-related
                                                                         through partnerships. Using          ing role in the acquisition and      (PED), is a £500-million con-        ventures in countries such as       and aggressive investment in        courses through theAsia Pacific
                                                                         Malaysian talent anchors a com-      development of strategic tech-       tract to jointly develop and op-     Australia, Singapore, Brunei,       R&D have positioned Sapura          University College of Tech-
                                                                         pany’s presence in the country.”     nologies for more than three         erate the offshore Berantai oil      Thailand, Japan,India,Sri Lanka,    to be globally competitive,         nology and Innovation (UCTI)
                                                                            Technology transfer is al-        decades.                             and gas field for Petronas – the     the Philippines, Pakistan and       producing a highly-specialised      and the Asia Pacific Institute
                                                                         ready a feature of the Malaysian        This is particularly demon-       first time the national oil com-     China.                              and multi-skilled pool of tech-     of Information Technology
                                                                         defence and security industry,       strated in the group’s oil and       pany has signed a risk-service          Mr Shamsuddin says:“When         nology experts.                     (APIIT). In addition to provid-
                                                                         in which Sapura is a recognised      gas business. SapuraCrest            rather than a production-            we choose to go into an area,         “We have always been a            ing Malaysia with skilled tech-
                                                                         player through its Sapura            Petroleum,a publicly-listed sub-     sharing deal for the develop-        we really study the market be-      knowledge and technology-           nology professionals, the two
Datuk Shahril Shamsuddin,                                                Defence subsidiary.The com-          sidiary, is one of the largest lo-   ment and production of pe-           forehand and look at invest-        centric organisation and put a      institutions attract students
President and CEO of the Sapura Group                                    pany has made great strides in       cal oil and gas integrated serv-     troleum resources in Malaysia.       ment in people and capital ex-      lot of emphasis on hiring the       from more than 50 countries.

Graduates to change the landscape                                                                                                                                                                                                                                 green
Providing for a knowledge-based economy means raising quality, innovation and collaboration in post-secondary institutions                                                                                                                                        research
T    he knowledge and innova-       we either have to produce these      operation and Development                                                                                                                          reviewed, upgraded and more
     tion-based economy that        graduates ourselves or attract       (OECD) members, and some                                                                                                                           closely aligned with require-
Malaysia aspires to become will     talent from overseas.”               way behind Singapore’s 35 per                                                                                                                      ments of industry and employ-
require a ready supply of peo-         Malaysia has invested heavi-      cent.                                                                                                                                              ers.Greater attention will also
ple able to create and exploit      ly in post-secondary and high-          The National Higher                                                                                         If we are able to                   be paid to equipping students         UMPEDAC is one of
new ideas and apply and devel-      er education over the past           Education Strategic Plan,                                                                                      produce quality                     with so-called soft skills, such      the six official national
op technologies.The availabili-     decade.The country currently         launched in 2007, is the trans-                                                                                                                    as positive work ethics, com-         centres of excellence
ty of highly skilled workers is     has 20 public universities and       formation blueprint for higher                                                                                 graduates in terms                  munications, teamwork, deci-          (HICoE)
crucial to attracting foreign di-   26 private universities.In addi-     education.To be implemented                                                                                    of numbers and                      sion making and leadership, to
rect investment and driving new     tion, there are 405 public and       in four phases,and including 23                                                                                                                                                               he University of Malaya’s
sources of domestic growth.
   This is why higher education
                                    584 private skills-training insti-
                                                                         critical agenda projects matched
                                                                         with the needs of the nation,it
                                                                                                                                                                                        proportion then
                                                                                                                                                                                        that will change
                                                                                                                                                                                                                            make them more employable.
                                                                                                                                                                                                                               Hiring and retaining the
                                                                                                                                                                                                                            best faculty members is a pri-
                                                                                                                                                                                                                                                                  T    Power Energy Dedi-
                                                                                                                                                                                                                                                                  cated Advanced Centre
figures so prominently in the na-      But Malaysia still has some       will run up to 2020.                                                                                                                               ority.The Government wants            (UMPEDAC) is a flagship
tional transformation plans.The     catching up to do in terms of           “Everybody is involved in                                                                                   the landscape and                   to substantially increase the         of Malaysia’s academic excel-
Government wants to build a         the proportion of its workforce      moving the plan forward,” says                                                                                 will provide the                    number of faculty members             lence. Its main focus is on
critical mass of “quality human     with tertiary education.At 23        Dr Khaled.“We want to make                                                                                     right human capital                 with PhD qualifications. In           research and innovation in
capital” and,in the process,turn    per cent,it is below the almost      sure that each of the institutions                                                                                                                 2009,the proportion of PhD            the field of information tech-
Malaysia into a regional and in-    28 per cent average for              within the higher education sys-                                                                               to spearhead the                    faculty members across all            nology, particularly in ap-
ternational hub of higher edu-      Organisation of Economic Co-         tem plays its role in transform-                                                                               innovation-led                      public universities was 35.9          plied science and renewable
cation excellence.                                                       ing Malaysia into a knowledge                                                                                                                      per cent.The target is to raise       energy.
   “In the current economic sce-                                         society.”                                                                                                      economy”                            this to 75 per cent for re-              Headed by Prof Dr
nario, growth depends on                                                     Dr Radin Umar Radin                                                                                                                            search universities and to 60         Nasrudin Abdul Rahim, ini-
knowledge,” says Dr Mohamed                                                Sohadi, vice-chancellor of                                                                                   YB DATO’ SERI                       per cent for other public uni-        tiatives at the international-
Khaled bin Nordin,Minister of                                               Universiti Putra Malaysia                                                                                   MOHAMED KHALED                      versities by 2020.                    ly acclaimed institution in-
Higher Education. “The global                                                                                                                                                                                                  Polytechnics will be re-           clude looking into environ-
climate is highly competitive and                                                                                                                                                       BIN NORDIN                          structured to offer courses           mental hazards from green-
education is an important tool                                                                                                                                                          Minister of Higher Education        at diploma and degree levels,         house gases produced by
in making a country a true re-                                                                                                                                                                                              and increasingly will specialise      fossil-burning industries and
gional player.To meet the coun-                                                                                (UPM) and a former director         landscape and will provide the       lic universities in matters like    to become centres of excel-           carrying out research in
try’s development objectives,                                                                                   general at the Department          right human capital to spear-        allocation of funding, tuition      lence. “We are focusing on            renewable-energy options.
                                                                                                                of Higher Education,says:“If       head the innovation-led econ-        fees, attracting the best facul-    polytechnic institutions for             UMPEDAC is involved
Closer links between                                                                                            we are able to produce qual-       omy.”                                ty members, and admissions,         technical and vocational skills       in the Malaysia Building
academia and business are                                                                                          ity graduates in terms of          The Government is focusing        but this will be combined with      so we can produce highly              Integrated Photovoltaic
being encouraged to boost                                                                                                   numbers and            on three key aspects of the          greater transparency and ac-        skilled workers able to meet          (MBIPV) project. It is co-
knowledge transfer and the                                                                                                       proportion        higher education system that it      countability. A rating system       the requirements of indus-            financed by the United
employability of graduates                                                                                                          then that      intends to strengthen: quality,      is being introduced with fund-      try,” says Dr Khaled.                 Nations Development Pro-
                                                                                                                                     w i l l       innovation and collaboration.        ing explicitly linked to perform-      The Government wants to            gramme (UNDP), Global
                                                                                                                                      change          It wants closer links between     ance and this will be extend-       enhance Malaysia’s reputa-            Environment Facility (GEF)
                                                                                                                                       t h e       higher education institutions        ed to all private degree-           tion as an international              and industry. It aims to re-
                                                                                                                                                   and business through industry        conferring tertiary institutions.   provider of quality higher ed-        duce direct and indirect
                                                                                                                                                   participation in course provision       “At the end of the day, we       ucation. It aims to attract           emissions of greenhouse
                                                                                                                                                   and students going on industri-      do not wish to distinguish be-      150,000 high quality interna-         gases by reducing the long-
                                                                                                                                                   al attachments. A Knowledge          tween the two,” says Dr             tional students by 2015, ris-         term cost of BIPV technol-
                                                                                                                                                   Transfer Partnership pro-            Khaled. “People outside             ing to 200,000 by 2020 – the          ogy through its increased
                                                                                                                                                   gramme will facilitate the trans-    Malaysia will see both private      current figure is around              use and through environ-
                                                                                                                                                   fer of expertise and research        and public entities as              86,000 students.                      mental and industrial poli-
                                                                                                                                                   findings, with innovation proj-      Malaysian higher education             Dr Khaled says interna-            cies. By tapping solar ener-
                                                                                                                                                   ects undertaken jointly by fac-      institutions.This plan is about     tional involvement should not         gy to generate electricity for
                                                                                                                                                   ulty members and business            having world-class universi-        be limited to student and staff       buildings, the project is ex-
                                                                                                                                                   partners from industry.              ties and ensuring quality in        exchange programmes, but              pected to increase Malaysia’s
                                                                                                                                                      Universities are also being       our higher education systems.       also include increased col-           installed BIPV capacity by
                                                                                                                                                   encouraged to work with in-          We hope that our private            laborative and collegial un-          some 330 per cent and to
                                                                                                                                                   ternational research institutions    higher education institutions       dertakings.                           lower the technology unit
                                                                                                                                                   and foreign universities to en-      will pay closer attention to the       “There should be a higher          cost by some 20 per cent.
                                                                                                                                                   hance research and develop-          standard of education, not          level of collaboration with the
                                                                                                                                                   ment activities,especially in new    only to improve their repu-         rest of the world,” he says.
                                                                                                                                                   emerging technologies.               tation, but also to help            “Through academic and stu-
                                                                                                                                                      Steps are being taken to raise    Malaysia in its goal of becom-      dent mobility,we can improve
                                                                                                                                                   the performance bar. Greater         ing a higher education hub.”        our higher educational stan-
                                                                                                                                                   autonomy will be given to pub-          Course curricula are to be       dards and qualifications.”

                                                                                                                                                   A sustainable campus for research
                                                                                                                                                   UKM is a leader in cross-border education and a magnet for global R&D collaborations

                                                                                                                                                         alaysia’s rise in global       ademic collaborations also
                                                                                                                                                   M     prominence as a centre
                                                                                                                                                   of knowledge, research and
                                                                                                                                                                                        know no boundaries.
                                                                                                                                                                                           “Through the strategy of
                                                                                                                                                                                                                                                                the International Institute of
                                                                                                                                                                                                                                                                Global Health and the United
                                                                                                                                                                                                                                                                Nations University to set up
                                                                                                                                                   development can be direct-           Global Partnership Mobility                                             on the UKM campus.
                                                                                                                                                   ly attributed to its excellent       programmes we are now be-                                                  According to Dr Sharifah,
                                                                                                                                                   universities. Driving educa-         ginning to excite people in                                             UKM’s research lends itself
                                                                                                                                                   tion and research country-           Europe,the West and the US,”                                            to not only commercial ap-
                                                                                                                                                   wide is Universiti Kebangsaan        explains Professor Tan Sri                                              plications but also to social
                                                                                                                                                   Malaysia (UKM), or The               Dato' Wira Dr Sharifah                                                  wellbeing and the creation of
                                                                                                                                                   National University of               Hapsah       Syed      Hasan                                            a high level of human re-
                                                                                                                                                   Malaysia, which was estab-           Shahabudin, vice-chancellor                                             sources – research experi-
                                                                                                                                                   lished in 1970 as an icon for        of UKM. “There are things                                               ence at UKM serves to capac-
                                                                                                                                                   national identity,nation build-      they can learn from us.At the                                           itate students to then go out
                                                                                                                                                   ing and for the promotion of         moment they think they can          Dr Sharifah Hapsah Syed             into the private sectors and
                                                                                                                                                   Malay as a language of knowl-        get whatever they want in           Hasan Shahabudin,                   innovate.
                                                                                                                                                   edge.                                their regions but we have to        Vice-Chancellor of UKM                 The percentage of the uni-
                                                                                                                                                      With an international out-        show that we do have some-                                              versity’s research that does
                                                                                                                                                   look, UKM has on its faculty         thing different to offer.”          of growth proves a major            bear fruit, however, is put to
                                                                                                                                                   people trained both at home             This “something different”       draw to many.                       very practical use in the form
                                                                                                                                                   and abroad in other Asian as         has been packaged in modules           UKM offers more than 270         of start-ups.UKM has 33 com-
                                                                                                                                                   well as Western nations,thus         such as indigenous commu-           programmes in major disci-          panies,working in a variety of
                                                                                                                                                   lending it a rich diversity and      nities or sustainable tropical      plines and is renowned for          fields,including producing new
                                                                                                                                                   broader perspective.Students         heritage. Indeed, UKM’s 100-        its medical and engineering         and more nutrient-rich vari-
                                                                                                                                                   also hail from many coun-            acre on-campus permanent            courses. In 2006, it was des-       eties of plants, growing skin,
                                                                                                                                                   tries.In the last academic year,     rainforest, complete with a         ignated as one of four re-          and developing solar energy
                                                                                                                                                   there were over 2,500 over-          herbarium and fernarium,            search universities in Malaysia,    and other energy-related tech-
                                                                                                                                                   seas students enrolled, from         coupled with its other facili-      thereby attracting the              nology at UKM’s new Green
                                                                                                                                                   nearly 60 countries, and ac-         ties and proximity to centres       Malaysia Genome Institute,          Technology Innovation Park.
SATURDAY, JULY 16, 2011                                                                                                    MALAYSIA                                                                                                                                          9

Attracting brain gain
                                                                                                                                                                                                              formation and communica-          of high-value added products.
                                                                                                                                                                                                              tions technology, machinery       More than 900 domestic and
                                                                                                                                                                                                              and equipment, biotechnol-        international companies are
                                                                                                                                                                                                              ogy, medical devices and re-      now based there, operating
                                                                                                                                                                                                              newable energy.”                  in the fields of telecommuni-
                                                                                                                                                                                                                 Accordingly, MOSTI has         cations, biomedical technol-

with a targeted approach
                                                                                                                                                                                                              proposed an increased allo-       ogy,agriculture biotechnolo-
                                                                                                                                                                                                              cation of 1 per cent of gross     gy and advanced electronics.
                                                                                                                                                                                                              domestic product (GDP) for        Multinationals in the park in-
                                                                                                                                                                                                              R&D under the 10th Malaysia       clude Intel, Nokia, Toshiba,
                                                                                                                                                                                                              Plan. Currently allocation        Fujitsu and IBM, while top
                                                                                                                                                                                                               stands at just 0.7 per cent.     domestic companies include
                                                                                                                                                                                                                Although this is higher than    Telekom Malaysia, Malaysian
Five main areas have been highlighted as priorities for increasing the                                                                                                                                          some regional counter-
                                                                                                                                                                                                                parts, Malaysia intends to
                                                                                                                                                                                                                                                Biotechnology Corporation
                                                                                                                                                                                                                                                and software development
availability and numbers of skilled professionals                                                                                                                                                                match countries like Japan
                                                                                                                                                                                                                 and Korea, which spend
                                                                                                                                                                                                                                                company IRIS.
                                                                                                                                                                                                                                                   The MOSTI-run Malaysian
                                                                                                                                                                                                                  about 2 per cent of GDP       Biotechnology Corporation
  n December of 2006,              Development initiatives,          science and technology serv-                                           ronment where research                                                annually on R&D.
I Malaysia’s Ministry of
Science, Technology and
                                   which target an increase in
                                   the critical mass of skilled
                                                                     ices. The same year, the
                                                                     Ministry also introduced its
                                                                                                            These efforts are already
                                                                                                         starting to pay dividends.
                                                                                                         Malaysia performed well in
                                                                                                                                            and development (R&D)
                                                                                                                                            will flourish.This drive for
                                                                                                                                                                                                                     One sector set to ben-
                                                                                                                                                                                                                   efit significantly from
                                                                                                                                                                                                                                                seeks to nurture and acceler-
                                                                                                                                                                                                                                                ate the growth of Malaysian
                                                                                                                                                                                                                                                biotechnology companies
Innovation (MOSTI) launched        professionals to 50 re-           National Innovation Model           the World Economic Forum’s         innovation in Malaysia is                                             the country’s focus on in-    while actively promoting for-
its Brain Gain Malaysia pro-       searchers, scientists and en-     to stimulate both market-           Global Competitiveness Report      gaining in momentum. Last                                            novation is electronics.       eign investment in the sector.
gramme to fast track the           gineers per 10,000 workers        driven innovation and tech-         for 2010-2011, excelling in        year, Prime Minister Najib                                          Already one of the primary      As an agency spokesperson
country’s transition to an in-     in the labour force.              nology-driven innovation.           the areas of educational qual-     Razak stated that “evidence                                       engines of the economy, the       remarked,“Biotechnology is an
novation-led economy by               The Brain Gain programme       These measures, along with          ity, technology transfer and       clearly shows                                                     electronics and electrical ap-    enabler.Right now,50 per cent
leveraging the talent pool of      was followed in 2007 by the       other initiatives,have served       quality of scientific research     that the keys to
the Malaysian Diaspora and         introduction of MOSTI’s clus-     to support MOSTI’s mandate          institutions.                      success for de-
foreign researchers, scien-        ter approach, which priori-       to add value to Malaysia’s             Considering intellectual        veloped coun-
tists, engineers and techno-       tised five main areas:biotech-    agricultural and industrial         property a key factor the fu-      tries are inno-
preneurs. The programme            nology,information and com-       sectors and to help develop         ture of its knowledge-based        vation and cre-
was complemented by                munication technology (ICT),      the new economy, in partic-         economy, the Government            ativity.”
MOSTI’s Human Capital              industry, sea to space, and       ular ICT and biotechnology.         aims to encourage an envi-            He added that
                                                                                                                                            a new econom-
                                                                                                                                            ic model based
                                                                                                                                            on innovation,

Innovating against financial fraud                                                                                                          creativity and value-added
                                                                                                                                            activities would multiply per
                                                                                                                                            capita income over the next
                                                                                                                                                                             Datuk Jalilah Baba has empha-
                                                                                                                                                                             sised that Malaysia would like
                                                                                                                                                                             to become a base for R&D
                                                                                                                                                                                                              pliances sector is the coun-
                                                                                                                                                                                                              try’s greatest source of ex-
                                                                                                                                                                                                              port revenues, derived from
                                                                                                                                                                                                                                                of the existing industries can
                                                                                                                                                                                                                                                benefit from using biotech-
                                                                                                                                                                                                                                                nology.Around 35 per cent of
Malaysia’s ARI focuses its research on an area in which both individuals and corporations are at risk                                       10years,saying that countries    activities, design and           products ranging from elec-       drugs in the world are still
                                                                                                                                            which favoured innovation,       engineering, and to move         trical appliances to comput-      based on natural substances
   stablished in 2003 as a         tional professional agencies)     and accounting information          cial statement analysis,look at    such as Japan, Finland,
E  special interest group,
Accounting Research Institute
                                   concentrate their research
                                   on the niche area of forensic
                                                                        “What we are trying to do,
                                                                                                         the ratios and see the trend,
                                                                                                         which is a kind of innovation.
                                                                                                                                            Sweden,Switzerland and the
                                                                                                                                            United States, developed
                                                                                                                                                                             ahead in alternative energy.
                                                                                                                                                                             Consequently,MIDA is work-
                                                                                                                                                                             ing closely with a number of
                                                                                                                                                                                                              ers, integrated circuits and
                                                                                                                                                                                                              microprocessors.The aim is
                                                                                                                                                                                                              to now move the sector in-
                                                                                                                                                                                                                                                and we have plenty here, and
                                                                                                                                                                                                                                                when it comes to renewables,
                                                                                                                                                                                                                                                Malaysia is the place to be.”
(ARI) has evolved into one of      accounting and Islamic finan-     in terms of innovation, is to       We are not talking about rock-     more advanced economies          the country’s top universi-      to higher value-added areas          Telekom Malaysia, along
just six Malaysian Ministry        cial criminology,although ARI     simplify the understanding of       et science here where we in-       as a result.                     ties in order to produce the     of automation, miniaturisa-       with other national communi-
of Higher Education Centres        is also sought out for its ex-    financial statements,” says Dr      vent something new but when           Accordingly, the double       graduates needed for the tar-    tion, digitalisation and multi-   cations companies like YTL
of Excellence (HICoE).             pertise in corporate gover-       Normah Omar,ARI director.           we talk about innovation in        thrust of the National           geted industries.                media applications.               Communications, are leading
  ARI and its seven research       nance,management and pub-         “We want to drive the impor-        the social sciences,it could be    Mission 2006-2020 aims to           In London last year,Deputy       In addition to education,      initiatives to advance innova-
centres (co-established with       lic sector accounting,financial   tance of knowing financial          in the form of looking at things   move the economy up the          Prime Minister Muhyiddin         research and collaboration        tion in the ICT sector.In 2010,
various national and interna-      reporting, taxation, auditing     numbers.We can do a finan-          in a more simplistic manner.”      value chain while raising        Yassin      echoed      these    with the private sector, the      YTL launched its 4G Innovation
                                                                                                                                            Malaysia’s capacity for knowl-   thoughts,noting that Malaysia    Government is nurturing the       Network,which provides a fo-
                                                                                                                                            edge, creativity and innova-     was now on a higher plane        development of knowledge-         rum for 4G innovators across
                                                                                                                                            tion, leading to world-class     of industrialisation, focused    based sectors through its         the world to experiment, col-
Innovative IBS-UPM advances biotech                                                                                                         R&D.In sectors such as palm
                                                                                                                                            oil and rubber, the country
                                                                                                                                            is already a world leader
                                                                                                                                                                             on attracting quality and high
                                                                                                                                                                             technology investments, as
                                                                                                                                                                             well as capital-intensive,high
                                                                                                                                                                                                              contributions to physical and
                                                                                                                                                                                                              high-tech infrastructure such
                                                                                                                                                                                                              as the Malaysia Multimedia
                                                                                                                                                                                                                                                laborate and build applications.
                                                                                                                                                                                                                                                Through a twinning pro-
                                                                                                                                                                                                                                                gramme with Clearwire, the
IBS-UPM is recognised as one of the six Higher Institution Centres of Excellence (HICoE) in the country                                     thanks to the investments it     value-added, knowledge-          Super Corridor (MSC).             4G Innovation Network links
                                                                                                                                            has made in R&D.                 based and skills-intensive op-      Originally launched in         Malaysian developers to their
                  Advancing        ducing not only manpower in       ular biomedicine,cancer,vac-        new ideas and meaningful in-          Director general of the       erations. He confirmed that      1996,MSC is a Government-         global peers,including some of
                  the fron-        the much needed fields of         cines, immunotherapeutics           novation.                          Malaysia Investment Devel-       Malaysia’s “priority sectors     designated economic zone          the world’s most creative
                  tiers of re-     life sciences and biotechnol-     and marine biotech.                    Five laboratories with 17       opment Authority (MIDA)          are advanced electronics, in-    for R&D and the production        minds in Silicon Valley.
                  search and       ogy,but also many new inven-         Currently, more than 60          research programmes sup-
touching lives,the Institute of    tions and products.               IBS-UPM scientists are work-        ported by high-calibre sci-
Bioscience (IBS-UPM) is a             Powered by scientists of       ing with prestigious univer-        entists, support staff and
premier research centre in         various natural science back-     sities and agencies around          postgraduate students are
Universiti Putra Malaysia          grounds, IBS-UPM focuses          the world, including Oxford,        bringing to fruition IBS-
(UPM).It is synonymous with        on cutting-edge multidisci-       Cambridge,Imperial College          UPM’s mission to be a lead-
excellence in innovation and       plinary research in natural       London, Harvard and the             ing research centre of glob-
research development, pro-         products discovery, molec-        University of Tokyo to seek         al repute.

Animators succeed in an
ICT sector ‘ripe for SMEs’
ICT regulator MCMC has created an environment for start-ups like Les’ Copaque Production to flourish
      s Malaysia pushes forward
A     with its goal of becoming
a knowledge-based economy,
                                   ICT hub in the region,Malaysia
                                   is investing heavily in commu-
                                   nications infrastructure while
                                                                     ripe for the entry of small and
                                                                     medium-sized companies,says
                                                                     Mr Khalid, especially in the
                                                                                                         year-old Malaysian twins and
                                                                                                         their comical introduction to
                                                                                                         fasting during the month of
the country is making rapid        encouraging the creation of a     area of content and applica-        Ramadan, on the Disney
strides in placing the founda-     dynamic industry. Mr Khalid       tions.An example of one such        Channel.
tions of connectivity.Nearly 55    says his agency encourages        successful start-up is Malaysia’s      Indeed, Les’ Copaque Pro-
per cent of the population         free competition, self-regula-    animation flagship, Les’            duction has focused on using
now has access to broadband        tion and flexibility, and that    Copaque Production.                 local images with global ap-
internet, up from 28 per cent      they are technology-neutral,         Founded by three multime-        peal.Most of its stories are set
just three years ago, and the      “meaning that we do not con-      dia graduates and a former          in rural Malaysia and the com-
country’s ICT regulator – the      trol the technology,as long as    petroleum industry magnate          pany states its mission as show-
Malaysian Communications           it serves the nation in terms     in 2005, Les’ Copaque               casing Malaysian culture and
and Multimedia Commission          of coverage,quality,speed and     Production is spearheading          talent. Currently employing a
(MCMC) – is at the forefront       price, operators are free to      the country’s animation in-         staff of 50 people,ranging from
of initiatives to expand infra-                                                                          scriptwriters to animators and
structure and communications                                                                             artists, all of Les’ Copaque
and multimedia services.                                                                                 Production’s jobs are done in-
   “There are currently around                                                                           house by local talent.
17 million internet users in                                                                                The company’s productions
the country, which is consid-                                                                            are also strengthening region-
ered to be one of the highest                                                                            al links, as Upin & Ipin is also
in the region. Cellular cover-                                                                           popular in Indonesia, and
age throughout the country is                                                                            Geng:the Adventure Begins has
now 95 per cent and we are                                                                               been released in Indonesia,
aiming to achieve 97 per cent                                                                            India, Singapore and Brunei.
by next year.All this speaks for                                                                         The second-highest grossing
itself and is a clear indication                                                                         local film in Malaysia’s histo-
of the Government’s efforts                                                                              ry, Geng: the Adventure Begins,
over the years,” says Tan Sri                                                                            which was sponsored by
Khalid Ramli, chairman of                                                                                the Ministry of Science,
MCMC.                                                                                                    Technology and Innovation,
   “MCMC has to create a suit-                                                                           won the Audience Choice
able ecosystem so that broad-                                                                            award at the Indonesian
band penetration, infrastruc-                                                                            International Film Festival for
ture and content are devel-                                                                              Kids 2009, as well as the
oped for the future growth of      Internet access in Malaysia is among the highest in the region        Special Jury Award and the
the country;content will drive                                                                           Highest Box Office Collection
innovation.There are tremen-       bring in technologies from any    dustry,which the Government         Award at the 22nd Malaysian
dous opportunities for in-         country.”                         has identified as one of the        Film Festival that same year.
vestors, both in terms of in-         In addition to building com-   new emerging growth sec-               “In terms of our interna-
frastructure and content.”         munication towers through-        tors.The company has creat-         tional ambitions,I believe that
   ICT and communications in       out the country, MCMC is          ed various high-quality 3D an-      we have to start with Asia be-
general will be the main en-       working to bring convergence      imated films and series, such       cause it is the most densely
ablers in terms of innovation.     to the communications and         as Geng: the Adventure Begins,      populated region.Most Asian
They have become important         telecommunications sectors.       Malaysia’s first 3D animated        children grow up with Disney,
drivers in the country’s           Malaysia has advanced from        feature film, and Upin & Ipin,      which largely promotes
growth; communications is          2G to 4G in the space of 10       the hugely popular TV series        Western values.This creates
one of the key elements in the     years and is now focused on       that won the Best Film              a sort of confusion among
nation’s economic transfor-        expanding content through-        Animation Award at the Kuala        some Asian children.We need
mation programme.                  out society through the cre-      Lumpur International Film           to come up with children’s
   “Our Ministry and MCMC          ation of e-banking,e-health        Festival 2007.                     stories with Asian values that
in particular oversee the en-      and other products that                Management at the com-         children in this region can re-
try point projects in various      encourage demand for                   pany is now in talks to air    late to. It is the same recipe
areas;an example of this would     broadband.                               the series, which tells      Sesame Street used when they
be the ‘Broadband for All’ ini-       The industry is                          the story of two five-    expanded globally,” says man-
tiative. We must push our                                                                                aging director Burhanuddin
economy forward,” says Mr                                                                                bin Md Radzi,who along with
Khalid.                                                                                                  his wife has written most of
   Also aiming to become an                                                                              the company’s storylines.
10                                                                                                                               MALAYSIA                                                                                                                       SATURDAY, JULY 16, 2011

Abundant agricultural opportunities
Palm oil, cocoa and rubber may generate significant export revenues, but Malaysia also produces timber, peppers and tobacco
     griculture is very much         The Ministry of Agriculture,                                                The Government is cur-
A    an important way of life
in Malaysia: 16 per cent of
                                     responsible for policy, strat-
                                     egy and programme imple-
                                                                                                              rently putting in place a se-
                                                                                                              ries of mega-ventures – such
                                                                                                                                                  used vegetable oil (after
                                                                                                                                                  soybean) in just three
                                                                                                                                                  decades. Malaysia has been
                                                                                                                                                                                        plans for the future include
                                                                                                                                                                                        boosting exports to Eastern
                                                                                                                                                                                        Europe and the Middle East,
                                                                                                                                                                                                                            focus on research and de-
                                                                                                                                                                                                                            velopment (R&D) and mar-
                                                                                                                                                                                                                            keting, with a view to diver-
                                                                                                                                                                                                                                                                   Government promotion
                                                                                                                                                                                                                                                                of R&D has also boosted
                                                                                                                                                                                                                                                                progress in Malaysia’s agricul-
the population is involved in        mentation, has been work-                                                as the Agropolitan Project,         able to maintain its momen-           while maintaining exports           sification in food and non-         tural sector, with palm oil
the industry and close to            ing in tandem with agro-                                                 the Sustainable Food                tum in the industry by in-            with Japan, Europe and the          food products.Moreover,he           and rubber technology be-
24 per cent of land is allo-         based industries and asso-                                               Production Park and the             creasing productivity at its          US. Projections expect ex-          comments:“Malaysia’s goal is        ing advanced by the
cated to agricultural prac-          ciated agencies to put into                                              high impact project Aqua-           palm oil plants and improv-           ports to reach £725 million         to provide socio-economic           Malaysian Palm Oil Board
tices. While the country             place a series of agricultur-                                            culture Industry Zone – ev-         ing quality, processing and           annually.                           benefits through our pro-           (MPOB) and the Malaysian
boasts a plethora of natu-           al plans, the most recent of                                             idencing its determination          marketing.                              According to Dato’ Dr             duction of beans.We are ori-        Rubber Board (LGM).
ral resources, the main cash         which is the 2011-2015 10th                                              to make agriculture “an en-            The cocoa industry is al-          Azhar Ismail, general direc-        ented towards increasing our           Further R&D resources
crops are palm oil, cocoa            Malaysia Plan (10MP), in pur-                                            gine of development”.               so a mainstay of the sector           tor of the Malaysian Cocoa          country’s wealth, [to mov-          will be earmarked for food
and rubber.                          suit of the administration’s                                                Malaysia has many agri-          and the economy, dating               Board, the industry places an       ing] forward in the industry        production technology
  The sector currently ac-           objective.                         industry continues to con-            cultural success stories.           back to 1780. Domestic                emphasis on quality, origin         and [to creating] fruitful syn-     in the future.
counts for 12 per cent of               National Agricultural Plans     tribute to Malaysia’s econ-           One such example is palm            grinding plants produce co-           and environmental impact.           ergies.”
GDP. Going forward, Prime            have been in place since           omy and global competitive-           oil, which sees production          coa butter, powder and                Growers adhere to the Good
Minister Najib Razak has ex-         1984. Broadly speaking, they       ness.These plans also aim to          exceeding 10 million tonnes         liquor, while exports in 2008         Agricultural Practices
pressed the Government’s             seek to improve farm pro-          deepen links with other sec-          per year and has Malaysia           led to a cash inflow of £695          (GAP) established by
desire to increase the in-           ductivity and efficiency,          tors, create new sources of           meeting more than half of           million. Malaysia is the              the board and
dustry’s share, making it an         boost private-sector partic-       growth and contribute to              global demand. Palm oil has         largest cocoa grinding and            there is a
engine of economic growth.           ipation and ensure that the        sustainable development.              become the second most-             processing hub in Asia. Its

Palm oil                                                                                                                                             Plantations and Commodities

Oiling the wheels of       ‘We are focused on the three
Malaysia’s economic growth P’s: people, planet, profit’                                                                                                                                                                                                          example.At the moment, 60
Whilst palm oil affords many health benefits and is a potential                                                                                      Higher value-added                                                                                          per cent of our exports are
                                                                                                                                                     commodity-based                                                                                             from primary products like
substitute for fossil fuels, it is also a driver of economic development                                                                             products for global                                                                                         plywood, and 40 per cent for
                                                                                                                                                     markets is the                                                                                              value-added products like fur-
      limate change,the deple-
C     tion of non-renewable re-
sources,the ever-pressing need
                                                                                                              ed by even the most pessimistic
                                                                                                              of pundits is that with greater
                                                                                                              oil efficiency, lower is the de-
                                                                                                                                                     Government’s target
                                                                                                                                                     for the nation’s key
                                                                                                                                                     commodities sector
                                                                                                                                                                                                                                                                 niture. By 2020, we want to
                                                                                                                                                                                                                                                                 reverse this balance.”
                                                                                                                                                                                                                                                                    Recognising the importance
for more food sources and                                                                                     mand for new agricultural                                                                                                                          of its forestry sector,Malaysia
poverty reduction can all list                                                                                                                             ver the past 50 years,
something in common. They
can all be addressed by one
                                                                                                              lands, and therefore lower is
                                                                                                              the threat of rainforest con-
                                                                                                                                                     O     the plantations and com-
                                                                                                                                                     modities sector has been one
                                                                                                                                                                                                                                                                 has put in place a sustainable
                                                                                                                                                                                                                                                                 forestry regime – 56 per cent
                                                                                                                                                                                                                                                                 of its land area is proudly still
tropical tree: the oil palm.                                                                                     Palm oil has yet another leg-       of the key drivers of Malaysia’s                                                                            under forest cover.
   Introduced to Malaysia by                                                                                  up on the other oil-bearing            economic growth.Comprising                                                                                     The Government has also
the British in the 1870s, the                                                                                 crops: it requires less input of       palm oil, rubber, timber, co-                                                                               developed the Malaysian
merits of the fruit of this na-                                                                               fertilisers, pesticides and fuel       coa, pepper and tobacco, the                                                                                Timber Certification Scheme
tive West African tree were                                                                                   energy.A study has shown that          sector has become one of the                                                                                (MTCS), which is operated
soon discovered and by the                                                                                    palm oil’s input-output ener-          country’s major export earn-                                                                                by the independent Malaysian
late 1910s, the first commer-        The oil palm tree reaches maturity in three to four years,               gy ratio (the gigajoules need-         ings sources.                                                                                                Timber Certification Council
cial plantations had been            when it is about two metres high; however, its economic life             ed per hectare per year to                In 2010 export values of                                                                                   (MTCC), to meet the de-
established. The production          continues for another 20 years                                           produce one tonne of oil in re-        commodities and commodi-                                                                                      mand for certified timber
of palm oil received an extra                                                                                 lation to the gigajoules of en-        ty-based products reached                                                                                    products.Since its implemen-
boost in the 1960s under the         try remains forested (double          One of the oil palm’s great-       ergy per hectare per year its          £23.5 billion as global demand                                                                              tation,various authorities and
Government’s agricultural di-        the average in Europe),and on-     est advantages over its ‘com-         products give back) is 9.5,            for vegetable oils,rubber and                                                                               organisations in a number of
versification programme.This         ly approximately 4.8 million       petitors’ is its output efficien-     whereas for soybean it is just         cocoa butter overtook                                                                                       countries such as the UK,
initiative was followed by land      hectares of land out of a total    cy. To produce one tonne of           2.5 and for rapeseed oil it is         supply.The figure rep-                                                                                      Netherlands, New Zealand,
settlement schemes for culti-        of 32 million are under oil palm   oil, the oil palm requires on         3.0. Hence, palm oil is a cheap        resents an increase                                                                                         France, Denmark, Germany
vating oil palm as a means to        cultivation, according to Tan      average just 0.26ha of land.          and efficient biofuel and food         of 24 per cent on                                                                                           and Japan have recognised
fight poverty for the landless       Sri Bernard Giluk Dompok,          Conversely, soybean requires          source that is also highly sus-        the £18.87 billion                                                                                          MTCS as providing assurance
farmers and smallholders.            Minister of Plantation Indus-      2.22ha, sunflower, 2.00ha, and        tainable.                              brought in the year be-                                                                  Major export       of either sustainable or legal
   Over the next decade, the         tries and Commodities.             rapeseed, 1.52 ha.                       Malaysia’s palm oil industry,       fore and even surpassed the                                                              commodities        timber products.
sector became more industri-            Malaysia currently accounts        Already the most efficient         which directly employs near-           previous record of £23.28 bil-                                                          include cocoa,         “In addition to the usual
alised with the introduction of      for 39 per cent of world palm      oil-bearing crop in the world,        ly a million people, is a highly       lion in 2008.                                                                          palm oil, rubber     factors of price, quality and
crude palm oil refining.Refined      oil production and 44 per cent     oil palm efficiency is about to       regulated one that adheres to             “Big commodities we are                                                                 and timber       reliability, Malaysian timber
oil, coupled with the nascent        of world exports. In the con-      double: the Ministry of               various laws and regulations           producing right now are palm                                                                                products now have an addi-
oleochemicals industry, gave         text of global production of       Plantation Industries and             concerning environmental               oil and rubber, as well as co-       tivities,such as developing,en-    vantage is that Malaysia is very    tional strength: we can now
passage to a wider range of          oils and fats,Malaysia accounts    Commodities, working with             protection,wildlife conserva-          coa,” says Tan Sri Bernard           hancing and promoting the          innovative.We are constant-         supply significant volumes of
products and consolidated            for 12 per cent of production      TSH Resources, has just an-           tion and worker safety.It is al-       Giluk Dompok, Minister of            oleochemical and biomass           ly looking for sources of raw       certified timber,” says Chew
Malaysia as a world leader in        and 27 per cent of export,re-      nounced the release of a new          so a key participant in the            Plantation Industries and            downstream industries,espe-        materials – we are looking at       Lye Teng,CEO of the MTCC.
palm oil and oleochemicals.          spectively. Over 70 per cent       clone that promises an oil yield      Roundtable on Sustainable              Commodities.“Palm oil was            cially for its palm oil.           plantation forests and also         “Most countries in the sur-
Today, Malaysia is focusing on       of the four major oils import-     of up to 10tonnes per hectare.        Palm Oil (RSPO).The RSPO               not indigenous to the coun-             The Minister says that the      new sources like oil palms,         rounding region are still un-
increasing productivity through      ed into the EU-27 was palm         Dubbed the Wakuba oil palm,           is the global watchdog of the          try and now we have almost           Government is actively look-       which reach up to 30 feet           able to do that.”
expanding the downstream             oil, 32 per cent of this came      this clone is the product of          industry,issuing certification to      perfected the planting of it.”       ing at ways of improving pro-      high.We are investigating new          Malaysia has a rich pool of
and added-value industries,          from Malaysia.To date, nearly      nearly five years of scientific re-   those companies who have                  The plantations and com-          ductivity and that between         plant sources, such as kenaf        expertise in various areas of
such as biofuels, a cleaner al-      40 per cent of the palm oil im-    search aimed at finding ways          adopted and consistently ad-           modities sector naturally            2009 and 2010, some £20.7          and bamboo, as well as look-        commodities development.
ternative to fossil fuels.           ported by the UK originated        to improve oil yields. One di-        here to the strictest standards        goes hand-in-hand with the           million was allocated to assist    ing at sustainable and recycla-     The goal is to establish
   Fifty-six per cent of the coun-   from Malaysia.                     rect result that can be applaud-      of sustainability.                     Government’s sustainability          smallholders in replanting ac-     ble materials.”                     Malaysia as a future centre of
                                                                                                                                                     and environmental protec-            tivities.“We are also going for       He adds,“We do not want          excellence for the commod-
                                                                                                                                                     tion efforts, as well as the         timber plantations as well,”       to just produce timber or ply-      ity sector and a major pro-
                                                                                                                                                     drive to alleviate poverty and       adds the Minister.                 wood, but we want to con-           ducer of higher value-added
                                                                                                                                                     rural depopulation. “We are             The Malaysian Timber            vert it into end-products like      commodity-based products
                                                                                                                                                     focused on the three P’s –           Industry Board (MTIB) was          furniture and mouldings, for        for global markets.
                                                                                                                                                     people, planet, profit – and         established in 1973 as the
                                                                                                                                                     they must be linked.You must         lead agency to enhance the
                                                                                                                                                     not look at things purely from       development of the Malaysian
                                                                                                                                                     a profit perspective:you must        timber industry.“One of our
                                                                                                                                                     also look at the planet as well      main competitive advantages
                                                                                                                                                     as the people,” says Mr              is the availability of raw ma-
                                                                                                                                                     Dompok.                              terials:95 per cent of our in-
                                                                                                                                                        To remain competitive             dustry uses internally sup-
                                                                                                                                                     against other commodities-           plied raw materials,” says Prof
                                                                                                                                                     producing countries,Malaysia         Madya Dr Jalaluddin Harun,
                                                                                                                                                     will focus on venturing into         director general of the MTIB.
                                                                                                                                                     diversified niche business ac-          “Another competitive ad-

                                                                                                                                                  A Malaysian research centre of excellence, ARI is making waves
                                                                                                                                                  around the world in fundamental and applied research.

                                                                                                                                                              http://accounting-research-institute.blogspot.com                                                 ari.uitm.edu.my
SATURDAY, JULY 16, 2011                                                                                                        MALAYSIA                                                                                                                                             11

                                                                                                                                                                                                                                                                A land of contrasts and
                                                                                                                                                                                                                                                                  harmonious diversity,
                                                                                                                                                                                                                                                              Malaysia is banking on its
                                                                                                                                                                                                                                                                incredible tourism mix
                                                                                                                                                                                                                                                           attracting 36 million visitors
                                                                                                                                                                                                                                                               and £35 billion in tourist
                                                                                                                                                                                                                                                              receipts annually by 2020

Experience a melting pot
of riches beyond compare
Culturally unique, geographically diverse Malaysia is an exhilarating feast for the senses
      vibrant kaleidoscope of cul-    mangroves and beautiful sandy
A     tures, landscapes and ex-
periences,Malaysia is attracting
                                      beaches lapped by the South
                                      China Sea.
                                                                        of the country’s success stories.
                                                                        From attracting just 5.5 million
                                                                        tourist arrivals in 1998, con-
                                                                                                            taken include visa-free or spe-
                                                                                                            cial visa arrangements for
                                                                                                            tourists and 100 per cent eq-
                                                                                                                                                achieved through the 12
                                                                                                                                                initiatives proposed under
                                                                                                                                                the Tourism National Key
international tourists in unstop-       Unsurprisingly, therefore,      tributing some £1.77 billion in     uity for investors who intend-      Economic Areas (NKEA).”
pable droves.Visitors are drawn       record numbers of visitors are    tourism receipts, last year         ed to operate three-star and           Malaysia’s global status as
into its heady mix of multicul-       coming to Malaysia and the        Malaysia attracted 24.6 million     four-star hotels and theme          one of the world’s leading
turalism and spectacular natu-        tourism sector has now be-        tourists who added £11.8 bil-       parks in Malaysia.Highly recog-     tourism destinations was con-
ral beauty, while being en-           come its second largest foreign   lion to the nation’s coffers.       nised foreign tourism compa-        firmed last year when the
veloped by an exciting atmos-         exchange earner.Promotion of         “The tourism sector will con-    nies have also been encouraged      World Tourism Organisation
phere that is further intensi-        the sector is indisputably one    tinue to be in the forefront of     to open branches in Malaysia.       (UNWTO) announced that
fied by the nation’s fast-track de-                                     Malaysia’s economic develop-           “It is very important that we    Malaysia was one of the top 10
velopment gaining pace.                                                     ment,” says Dato’ Sri Dr Ng     tell the world that we are a        countries regarding tourist ar-
   A bustling melting pot of                                                       Yen Yen, Minister of     very strong tourist destination     rivals. It secured ninth posi-
races and religions, where                                                               Tourism. “This     and to share with them our lib-     tion, up two places from the
Malays, Indians, Chinese and                                                                   sustain-     eralisation policy,” says Dr Ng.    previous year, and joined only
many other ethnic groups live                                                                       able       According to the Minister,       by China,in fourth position,as
together in peace and har-                                                                          and     the Government has set its          Asian countries in the top 10
mony, has not only made the                                                                                 sights on a target of 2020:36:168   list.
country a gastronomical par-                                                                                – that is in the year 2020,            The nation’s confidence in
adise, but also home to hun-                                                                      high-     Malaysia will receive 36 million    maintaining its top 10 position
dreds of colourful festivals.                                           yield sector will continue to       tourists arrivals and RM168 bil-    and its assurance of reaching the
   Both culturally rich and ge-                                         drive Malaysia’s economy, pro-      lion (£35 billion) in tourist re-   2020 targets is understandable,
ographically diverse,Malaysia is                                        viding income and job oppor-        ceipts.“This would mean the in-     since the efforts being made to
divided into 13 states and three                                        tunities to the Rakyat [peo-        dustry will grow by three times     highlight the sheer diversity of
Federal Territories – Kuala                                             ple].”                              and tourism will contribute         Malaysia’s attractions and its
Lumpur,Putrajaya and Labuan.                                               The introduction of a liber-     RM3 billion [£625.5 billion] re-    broad appeal to a wide range
One of the major attractions                                            alisation policy in tourism has     ceipts per week to the coun-        of visitors should only mean
that draw people to Malaysia is                                         boosted Malaysia’s competitive-     try in 2020,” she says. “This       even more people come to ex-
its extreme contrasts:wooden                                            ness in the industry. Measures      strategic ambition will be          perience “Malaysia,Truly Asia”.
houses built on stilts squat next
to towering skyscrapers and
modern,five-star hotels and re-
sorts sit several metres away
from ancient reefs.Meanwhile,
refreshing, cool hideaways are
found in the misty highlands,
which roll down to rich,humid

Secretary General of Tourism

Second-home seekers is ‘a market we can tap into’
Blessed with a year-round summer climate, Malaysia is also great value for money
and offers a whole range of practical incentives to those after a place in the sun                                                                                                                                       People can also have a do-       people to the scheme. The
                                                                                                                                                                                                                       mestic maid and buy prop-          participants are screened so
    or everyone from family           ond language.Plus,the coun-       in population and a market                                                                                                                     erty here. It is great value for   that they meet the criteria
F   holidaymakers, nature             try has a wide spread of          that we can tap into.                                                                                       Malaysia has                       money in terms of prices.          of high net-worth individu-
lovers and sports enthusi-            recreation and entertain-         Naturally, we want to max-                                                                                  many competitive                   They can own as many prop-         als.We aim to attract more
asts to second-home buyers,           ment options, a fascinating       imise the pensions and life                                                                                                                    erties as they want, subject       participants.
medical tourists and busi-            culture, a great climate and      savings we have, and this po-                                                                               advantages.                        to a minimum price.                   At the beginning of this
ness guests, in addition to           represents excellent value        tential of Malaysia as a sec-                                                                               We have a lot to                     In addition, people with         year we rebranded the
unabashed art lovers and              for money.                        ond home or retirement des-                                                                                                                    social visit visas can also in-    MM2H programme, but do
out-and-out culture vul-                Furthermore, foreign resi-      tination is important.
                                                                                                                                                                                    offer that caters                  vest. In the past you could        not want to keep changing
tures, Malaysia truly is a            dents in Malaysia can rely on        The potential is huge.Even                                                                               to the different                   not do this, but now you           the terms and conditions.
world-class destination.The           solid governmental support,       with the increasingly com-                                                                                  interests of                       have the best of both worlds.      We want consistency, so for
ageing baby boomer popu-              Here, Dato’ Dr Ong Hong           petitive environment where                                                                                                                     Also, if you are over 50 and       the foreseeable future I do
lation is creating a global in-       Peng, Secretary General           many countries are also try-                                                                                British people.                    you have a special skill, you      not think that we will be
crease in demand for both             of Tourism, speaks about          ing to attract British people,                                                                              The whole package                  can work part time for 20          making many changes.
second homes and retire-              Malaysia’s appeal to foreign-     the market is big enough for                                                                                                                   hours a week here. I think
ment havens, but Malaysia is          ers and the Government’s          all countries to compete in                                                                                 is very attractive                 this whole package is very         Tourism is a very impor-
not alone in wanting to at-           creative ‘Malaysia,My Second      and share.That itself is a pos-                                                                             for any foreigner”                 attractive for any foreigner.      tant sector for the country,
tract British high-end holi-          Home’ (MM2H) programme,           itive trend.                                                                                                                                                                      and as Secretary General of
day homebuyers and golden             which is drawing in more and         Malaysia has many com-                                                                                   DATO’ DR ONG                       There are a lot of people          the Ministry of Tourism,
agers. So what are Malaysia’s         more people to Penang and         petitive advantages – one is                                                                                                                   from the UK who have al-           what motivates you per-
competitive advantages as a           the capital Kuala Lumpur in       that Malaysia is located near                                                                               HONG PENG                          ready taken advantage of           sonally to continue to pro-
second-home destination?              particular.                       the equator so it is summer                                                                                 Secretary General of Tourism       this programme. Do you             mote Malaysia as a desti-
Why is Malaysia somewhere                                               all year round. It does not                                                                                                                    have a vision for the future       nation for foreigners?
that retirees should think            What is your perspective          have to go through the harsh                                                                                                                   development of Malaysia              I believe in Malaysia and
about living?                         on the global second home         and cold winters, and that is       ticultural and multiethnic and      tive. Assuming that the offer          Foreign residents can bring     My Second Home? Are                what we can offer.We know
   Stability is a big plus, as        and retirement home mar-          good for those of retirement        we have strength and har-           is taken up, we will continue       their own car,tax free,and they    there more things that you         that whoever comes to
     well as healthcare.              ket and its growth in the         age, especially the Brits.          mony in diversity, so that          to renew this social visit visa,    can also choose to buy a car       would like to do in the fu-        Malaysia will be delighted
        English is widely             future?                              Retired people are look-         makes living in this country        as long as the country’s rules      locally, again tax free.They can   ture in order to increase          and they will wish that they
            spoken and is the           There has been an increase      ing for a value-for-money           very exciting.We have a lot         and regulations are not vio-        also have offshore income from     the number of people us-           had got to know Malaysia
                  nation’s sec-                                         destination – and that is ex-       to offer that caters to the dif-    lated.There is a sense of se-       work. I know of consultants        ing it or are there any            earlier.
                                                                        actly what Malaysia is. It has      ferent interests of British         curity and that you will always     who are based here and who         changes you would like to            We have a saying – that to
                                                                        world-class infrastructure          people.                             be welcome and you can stay         work overseas on assignments,      make?                              know Malaysia is to love
                                                                         with modern amenities and                                              here as long as you like.           so they are earning offshore.        We want to attract more          Malaysia!
                                                                        good medical and recre-             MM2H is an innovative pro-
                                                                            ational facilities. You can     gramme in line with the
                                                                             relax and visit many in-       Ministry’s drive towards
                                                                              teresting places and we       longer-stay,higher-spend vis-
                                                                              have so much to offer.        itors.Can you share some of
                                                                               English is widely spo-       the incentives and require-
                                                                        ken, so British people will         ments of the programme?
                                                                        feel very comfortable here.            I would like to highlight that
                                                                           We are al-                       it is a long-stay programme
                                                                        so very mul-                        and we welcome UK or for-
                                                                                                            eign residents that meet cer-
                                                                                                            tain criteria to stay here for
                                                                                                            long periods of time.
                                                                                                               To reflect that, those who
                                                                                                            are on the Malaysia,My Second
                                                                                                            Home programme get a 10-
                                                                                                            year social visit visa (multiple
                                                                                                            entry), so that is very attrac-
12                                                                                                                                MALAYSIA                                                                                                                       SATURDAY, JULY 16, 2011

A world-class destination
The beautiful “heart and soul” of Asia caters to business travellers, families and everyone in between

Unmatched natural blessings, a harmonious multicultural society and a proactive socio-economic agenda have combined to create a burgeoning, multifaceted tourism sector to be tapped and an enviable lifestyle to be enjoyed

     welcoming environment          looking for destinations, but                                                                                                                       and Resorts, a premier inter-        “Malaysia has dynamic tourism
A                                                                                                              posed 12 high-impact tourism        2020, contributing over seven                                                                                 own local service quality pro-

     is vital for any country’s     experiences, and arts-related                                              initiatives.The projects to boost   times more than the next tar-        national hotel management            products that can be fully ex-      gramme: ‘Let Us Manja
tourism sector to flourish.         tourism will enhance our glob-                                             tourism fall under five main        get urban centre – Johor Baru        company.The brand is a regis-        ploited and marketed to the         (Pamper) You’. We are hon-
Mutual understanding be-            al appeal,” he says, adding that                                           themes that are targeted: af-       – and 2.5 times over the largest     tered trademark in London and        world. It has become a must-        oured that our service trade-
tween the nation’s various re-      Malaysia should look at high-          People are very                     fordable luxury;nature adven-       industry sector,namely oil,gas       Malaysia and is present in           visit,must-shop,must-see and        mark has won many awards
ligions and communities is a        lighting its arts and cultural of-                                         ture; family fun; events, enter-    and energy.                          10countries around the world.        must-invest destination.”           here in Malaysia and we are
key factor that promotes peace      ferings.                               friendly in Malaysia                tainment,spa and sports;busi-          “We want to make KL world         The company has 25 quality              She adds, “We wanted to          committed to providing the
and harmony in Malaysia.                The country’s rich cultural        and it is an                        ness tourism;and cross-theme        class,” says Dato’ Raja Nong         hotels and resorts, eight of         establish a truly Malaysian ho-     same level of personalised
“Diversity is definitely the        heritage is reflected in its unique                                        projects, which enhance con-        Chik Zainal Abidin,Minister of       which are in Malaysia,that pro-      tel brand name and give val-        services in all destinations that
strength of Malaysia that makes     art – an area rich in potential
                                                                           international                       nectivity for medium-haul mar-      Federal Territories. “One of         vide levels of accommodation,        ue-for-money products and           we operate.”
her special to the eye of the       to increase tourist spending.          country. If you                     kets and improve the selection      KL’s main competitive advan-         services and amenities that are      services, while at the same           The company offers its
world,” says Dato’ Seri Jamil       Although greater visitor num-          come, you will live                 of higher quality hotels.           tages would definitely be cost.      appreciated by both business         time keeping international ho-      guests a range of accommo-
Khir Bin Baharom, Minister          bers have increased revenues                                                  Business tourism is one of       We are very competitive com-         and leisure travellers alike.        tel standards. Holiday Villa        dation, from affordable and
in the Prime Minister’s De-         from the sector, the next step         like a king”                        the key areas that will see a       pared to most cities in the             “Being the heart and soul of      wants to give our guests ex-        modern deluxe rooms to lux-
partment of Religious Affairs.      is to similarly increase yield per                                         greater focus on high-yield vis-    world. In terms of structure,        Asia, Malaysia can be a con-         tra warmth and friendliness         urious boutique hotels,chalets
“The concept of 1Malaysia is        tourist.The Ministry ofTourism                                             itor traffic. In 2009, Malaysia     we are not far off most world-       necting point for those want-        and we introduced                                   and apartment
not a mere slogan or political      wants to double yields (receipts       JIMMY CHOO                          welcomed 1.2 million interna-       class cities.We are looking to-      ing to see more of Asian coun-           our very                                           suites.
rhetoric. For Malaysia to suc-      per arrival) from £469 in 2009         Internationally renowned            tional business tourism visi-       wards developing more parks,         tries,” says Datin Mavis Masri
ceed, it can only be done           to £975 by 2020.                       Fashion Designer                    tors, generating around £2.06       etc,so that locals and foreign-      Azman,managing director and
through the unity of all races          Tourism Minister Dato’ Sri                                             billion in visitor spending to      ers will have access to areas        CEO of Hotel Villa
with respect to diversity.”         Dr NgYenYen sees Malaysia well        fashion designer Jimmy Choo          the local economy. The esti-        of leisure and be able to wind       Hotels and
   There are some 80 ethnic         positioned as a high-yield art        comments,“Malaysia has got a         mated spending for each in-         down.”                               Resorts.
groups in Malaysia, the main        tourism destination.In an inter-      lot of beautiful places and a lot    ternational business tourist is
groups being Malay, Chinese         view with BBCWorld News last          of local artists as well. Our lo-    £1,525 – three times the spend-     Holiday Villa: one of
and Indian. “The concept of         year, she said,“We encourage          cal designers and artists are        ing of an average leisure visi-     Malaysia’s most trusted in-
1Malaysia is intended to har-       tourists to visit the country not     fantastic.Malaysia does so many      tor.The Government’s plan is        ternational brands
monise the various races with-      only because of food, beaches         beautiful things.”                   to see 2.9 million business vis-        In its Road to Compet-
out changing their identities,”     or shopping, but to admire               To present Malaysia’s tour-       itors annually by 2020.             itiveness report, the Malaysia
says the Minister.                  homegrown art pieces.Malaysia         ism treasures to the world and          At the heart of Malaysia’s       Productivity Corporation looks
   Deputy Prime Minister Tan        has talented artists who have         in line with the Economic            business community is the na-       at how companies and nations
Sri Muhyiddin Yassin believes       exhibited beautiful contempo-         Transformation Programme –           tion’s capital,Kuala Lumpur,or      have the capacity to add value
innovation within the industry      rary art pieces. Hopefully            Malaysia’s roadmap to become         KL as it’s known locally.There      to economic products, servic-
is the key to attracting more       tourists will purchase these          a high-income nation that is         is a drive to see Greater KL be     es and processes to give them
tourists to the country. “The       pieces as souvenirs.”                 both inclusive and sustainable       the largest contributor at the      an edge. One company that is
global traveller today is not           London-based Malaysian            – the Government has pro-            gross national income level by      highlighted is HolidayVilla Hotels

Urban development

Kuala Lumpur is one of Asia’s most liveable cities                                                                                                                                      Malaysian real-estate history        rary suburban developments          neighbourhood mall and the
KLCCP and Perdana ParkCity are two developers that are further helping turn the
                                                                                                                                                                                        with the £7.88 million sale of       offering elegant lifestyles to      public primary school,” says
city into a top destination for living, working, playing, shopping and entertainment
                                                                                                                                                                                        the first of the two triplex pent-   complement its city centre op-      Lee Liam Chye,group CEO of
                                                                                                                                                                                        houses in the building.              tions.                              Perdana ParkCity.
       ne of the priorities set     Kuala Lumpur that are of val-                                                                                                                                                               Perdana ParkCity is a
O      out in the 10th Malaysia
Plan (10MP) is to turn Kuala
                                    ue, we are talking about the
                                    more ‘complete living’ com-
                                                                          Oriental Kuala Lumpur Hotel,
                                                                          among others.
                                                                             “In terms of KLCC as a glob-
                                                                                                                                                                                           “It is comparable to Lon-
                                                                                                                                                                                        don’s One Hyde Park.You are
                                                                                                                                                                                        talking about a trophy asset
                                                                                                                                                                                                                             Malaysian developer blazing a
                                                                                                                                                                                                                             trail with one of the fastest
                                                                                                                                                                                                                                                                    A secondary care private
                                                                                                                                                                                                                                                                 hospital is under construction
                                                                                                                                                                                                                                                                 and is scheduled to open mid-
Lumpur (or KL,as it’s known)        munities – apartments where           al landmark for Kuala Lumpur                                                                                  that directly faces the Twin         growing and best-selling mas-       2013.The community’s inter-
and the Greater Kuala Lumpur        you are in a secure location          and Malaysia, the Twin Towers                                                                                 Towers,” Mr Hashim says about        ter planned communities in          national school is slated to
(Greater KL) conurbation in-        with good security and facili-        have certainly established that                                                                               the park’s only residential de-      the country. Just eight miles       open this September.
to a world-class city with a vi-    ties.The infrastructure and fa-       to an extent,” says Mr Hashim.                                                                                velopment. “You can be as-           from the city centre in the af-        The company is targeting
brant environment for people        cilities are what drive the de-       “We’ve ensured that they are                                                                                  sured that KLCC Park will re-        fluent northwestern area of         the growing middle-class hous-
to live,work and play.Liveability   velopments.”                          of a world-class standard.We’ve                                                                               main a park because it is so im-     the city,Desa ParkCity has be-      ing market.“It is sizeable, pre-
and quality of life will be im-        Malaysia-based KLCCP’s             been here for 12 years and you                                                                                portant to us. The 50-acre           come a 473-acre premium             dictable and lucrative,” says Mr
portant factors in attracting       niche position in property in-        can still see that the buildings                                                                              green space is basically our         community of highly desirable       Lee. “Middle-class groups all
high-skilled talent on the glob-    vestment and facility manage-         are maintained in pristine con-                                                                               jewel.We need to continue to         real estate. It is the single       over the world generally sub-
al stage to the nation’s capital    ment services is backed by a di-      dition. But more importantly                                                                                  preserve that and we are cur-        biggest development project         scribe to the same values, be-
city, as people today not only      verse property portfolio,large-       we have to realise the full de-                                                                               rently spending a lot of mon-        in Kuala Lumpur and the first       liefs, aspirations and world
look at places for their employ-    ly within the KLCC (KL City           velopment of the masterplan of                                                                                ey on doing so.”                     of its kind in Malaysia.            views.Therefore,I believe that
ment opportunities, but they        Centre) Development, com-             Kuala Lumpur,which will ensure                                                                                   The 10MP report states that          The company’s vision has al-     with insights of who they are,
also gravitate to locations for     prising office buildings, a lead-     that it remains as the landmark                                                                               Kuala Lumpur is Asia’s 11th          ways been for a markedly bet-       what they want and how they
their vibrancy and lifestyle.       ing retail mall and a luxury ho-      for the city.In this respect there                                                                            most liveable city and has the       ter place for people of all ages,   want it, it is possible to ven-
   “What the Prime Minister         tel. Its prestigious portfolio in-    is the remaining development                                                                                  potential to enter the top five.     backgrounds and ethnicities to      ture into the housing business
and the people of Kuala             cludes the PetronasTwinTowers         of KL as a destination. Today,                                                                                   To attract skilled resources      reside,work,shop,play and en-       to serve this group in many
Lumpur want is quality of life,     – two 88-storey office skyscrap-      from the airport [KLIA] to KL-       Binjai On The Park offers incredible views of KL’s skyline               from overseas, Kuala Lumpur          tertain. Upon full completion,      Asian cities with manageable
meaning the value of safety         ers that have become an icon-         CC, we have direct transport                                                                                  is to be promoted as a city for      Desa ParkCity will have some        risks.Besides,many Asian cities
and security,” says Hashim          ic image of the city.                 from the Express Rail Link and       We always say that we are one          However the company’s first       those seeking rich culture and       7,500 homes. “We have cur-          are experiencing rapid immi-
Wahir,CEO of KLCC Property             It also features the six-storey    the fast train connected to          traffic light away from KLIA.       residential development – Binjai     a modern metropolis with so-         rently completed some 2,500         gration and urbanisation.Surely,
Holdings Berhad (KLCCP).“If         Suria KLCC shopping centre            LRT [light rail transit], straight   There are also several highways     On The Park – is also making         phisticated infrastructure. As       homes, the central park, the        this gives rise to attractive busi-
you look at the properties in       and the premier Mandarin              to the doorstep of KLCC.             connecting it.”                     its mark. Last year it made          such,it also needs contempo-         community clubhouse, the            ness opportunities.”

                                                                                                                                                   Five-star luxury in the Golden Triangle
                                                                                                                                                   The JW Marriott Kuala Lumpur is a haven of elegance catering to both MICE travellers and families

                                                                                                                                                       ocated in one of southern        general manager. Moreover,                                                 Voted byWorldTravelAwards
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                                                                                                                                                   international cities, the JW
                                                                                                                                                                                        the JW Marriott KL especial-
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                                                                                                                                                                                                                                                                 as Malaysia’s Leading Business
                                                                                                                                                                                                                                                                 Hotel 2010, the JW Marriott
                                                                                                                                                   Marriott KL offers high-tech         sian hospitality, which makes                                            KL also boasts one of the coun-
                                                                                                                                                   business amenities,internation-      a stay or an event here even                                             try’s best dining experiences:
                                                                                                                                                   al five-star standards, person-      more enjoyable.                                                          the Shanghai Restaurant.
                                                                                                                                                   al service and outstanding din-         Beyond its sumptuously lux-                                           Three-time winner (2008-
                                                                                                                                                   ing in the business and shop-        urious lobby, guests can avail                                           2010) of the Hospitality Asia
                                                                                                                                                   ping heart of Kuala Lumpur.          themselves of the numerous                                               Platinum Awards’ ‘Most Ex-
                                                                                                                                                      The JW Marriott brand             amenities available at the JW                                            quisite Palate Experience’ in the
                                                                                                                                                   stands out among the 3,000           Marriott KL, which include                                               Chinese cuisine category, the
                                                                                                                                                   Marriott hotels and their 11         complimentary in-room broad-                                             Shanghai has been listed numer-
                                                                                                                                                   different brands for its special     band internet access, a fitness                                          ous times in Malaysia Tatler’s
                                                                                                                                                   attention to business travellers     centre, an outdoor pool and          Mahmoud Skaf,                       Malaysia’s Best Kitchens guide
                                                                                                                                                   and its complete host of MICE        tennis court,a spa,and of course     General Manager of                  and Expedia.com’s Malaysia’s
                                                                                                                                                   services, says Mahmoud Skaf,         a full-service business centre.      JW Marriott Kuala Lumpur            Best Restaurant Guide.

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