GOOGLE Inc, plans to invest in the world’s biggest server farm in Malaysia

GOOGLE Inc.the world’s top Internet Search Engine, plans to invest in the world’s biggest server farm, which could be located in Malaysia, India or Vietnam, sources said.

A server farm is a cluster of server computers, or powerful computers, that store vast amounts of data. The data are shared between people via personal computers over a common network like the Internet.

“It will be very major for Malaysia. The investment could run into a few hundred million ringgit,” said a source.

Winning this investment will be a major coup for any country, not just for the inflow of money but also the profile that the US brand provides.

Meeting between Malaysia PM and Google CEO Eric Schmidt in Davos.

Google Inc is interested to set up a base in Malaysia due to its huge ICT market, said Datuk Seri Abdullah Ahmad Badawi. The Prime Minister said the Government’s development plans for the ICT industry were also in line with the company’s expansion programme.

"I was told that Malaysians formed the highest group of Google users in South-East Asia,” he told Malaysian journalists after meeting the US giant’s CEO Eric Schmidt on the sidelines of the World Economic Forum.

Abdullah said the company felt Malaysia was a good place for the base due to its strategic geographical location.

Google declined to comment when contacted.

"We do not comment on rumours or speculation. We have data centre facilities around the world, but do not provide specific locations,” said Dickson Seow, the head of communications and public affairs for Southeast Asia.

Malaysia wants to become a hub for outstanding services, a better- value alternative to low-cost manufacturing, which is now led by Vietnam. As for India, it is already a heavyweight in the software and outsourcing industry.

Since last year, Google has been sending teams to the region to look for suitable places for its data centres. The decision is now down to three countries.

In Malaysia, it may ask for an area of more than 100ha. This could be in Nilai, Negri Sembilan, which is adjacent to Cyberjaya City, a source said.

It is believed that the landowner and a few utility companies had a meeting recently to discuss the needs of the project, code-named Neptune.

"It needs uninterrupted power supply and huge broadband capacity, among other things. These must be sorted out,” another source said.

It is believed that state government officials are excited about the potential investment.

Source: New Straits Times

Note: -

1. Google will set up its first campus in India, which will be spread over 20 acres in Hyderabad, a senior IT department official of the Andhra Pradesh government said on, February 13, 2008.

2. IT services provider Satyam Computer Services Limited is setting up a 15-acre campus at Cyberjaya City, the IT hub of Malaysia, which is expected to be operational by this year end, said Prasenjit Kundu, head (global solutions centre in Malaysia), Satyam. It will be providing high-end services including business process management (BPM), data warehousing, Oracle and engineering practices.

Malaysia To Lead On Development Of Knowledge Economic City In Medina, Saudi Arabia

DATUK Syed Mohamed Syed Ibrahim not only wants to give his best in everything he does but also likes challenges that will enable him to bring out his best.

This is the man whose name in the corporate circle is synonymous with the RM9.2bil smart township, @enstek in Negri Sembilan – a project by TH Properties Sdn Bhd where he was the chief executive officer. He left the company last month, after a four-year stint.

In March, the Universiti Malaya economics graduate will be heading to Saudi Arabia for a bigger challenge – to helm the development of the Madinah Knowledge Economic City (K.E.C. Madinah), a $25billion project.

“K.E.C. Madinah ranks third (in value and size) among the six economic cities to be developed throughout Saudi Arabia, after King Abdullah Economic City and Jazan Economic City,” said Syed Mohamed, 50.

He decided to take up the offer after he and his wife Datin Zaidah Zakaria visited Saudi Arabia in June last year.

While his decision has surprised many of his friends and business associates, it is also one that is not unexpected for those who know Syed Mohamed.

And he is fond of telling his listeners that anything one does must “at least be comparable to the best, if not the best.”

“I like challenges. I like to test my abilities,” he said of his new portfolio as chief operating officer. But what is even more exciting and meaningful for Syed Mohamed is the fact that he will be part of the team to restore the status of Madinah as a beacon of knowledge.

“Madinah is the second holiest city in Islam and the burial place for Prophet Muhammad,” he pointed out, adding that this was one of the three reasons why he decided to take up the job offer there.

K.E.C. Madinah, developed by Seera City Real Estate Development Company, is only five km east of Prophet's Mosque (Masjid Al Nabawi) and five km south of Mohammad Bin Abdul Aziz International Airport.

Its focus is on knowledge-based industries like science, technology, biotechnology, medical services, Islamic studies and social sciences.

The project, on 4.8 million sq metres, will take at most 12 to 15 years to complete, he added.With his 27 years of working experience in the property and banking sectors, Syed Mohamed is certainly upbeat on the booming Saudi economy.

The Arabs, he added, accepted global best practices in developing their country and they also had high regards for the achievements and capabilities of Malaysians.

“It is all about professionalism and meritocracy. When you see things that way, you will not have problems in establishing a good relationship and working together well with others,” he said.

The $6.7bn Knowledge Economic City in Medina will include a technology zone, an advanced IT studies institute, a campus for medical research and life sciences, and an interactive museum on the life of Prophet Mohammad alongside a retail zone, business district and residential zones including high rises, houses, fully serviced apartments, shopping malls and a mosque with a 10,000-worshipper capacity.

The Knowledge Economic City is closed to foreign investment as are all real estate developments in Medina and Mecca. For now, Saudi real estate plays will mainly involve finance sourced in the kingdom, or from its Gulf Co-operation Council partners.

The Holy City of Madinah, which lies in the central Hijaz 447 kilometers north of the Holy City of Makkah, is 625 meters (2,050 feet) above sea level. Sited on a fertile oasis, it is bounded on three sides by hills which form part of the Hijaz mountain range. The highest of these hills, Mount Uhud, rises more than 2,000 meters above the oasis.

The new development, valued at some SR25 billion, will reportedly create more than 20,000 new jobs in the city. The development, named ‘Knowledge Economic City’ will include the Taiba Technological and Economic Information Center, an interactive museum on the Prophet’s life, a center for studies of Islamic civilization, as well as a center for medical studies, biosciences and integrated medical services according to reports from the Saudi Press Agency, quoted in Arab News.

King Abdullah issued the license to develop the project, which will include housing for 200,000 as well as commercial centers.

Knowledge Economic City’s main investors include the King Abdullah Foundation, Savola Group, Real Estate Projects Management and Development Company and Taiba Investment & Real Estate Development Company, while the main investor of the project will be the Saudi Arabian General Investment Authority (SAGIA).

Knowledge Economic City will be developed on a 4.8 million m sq. land while the built up area will near 9 million m sq. attracting SR25bn worth of investments. The project will add 20,000 new jobs to the region.

Facts

Area: 4.8 million sq m

Investment Size: US$ 7 billion

Jobs: 20,000

Population: 50,000

Zones: Taiba Complex for Technology and Knowledge-based Economy, Technological and Administrative Colleges, Theme Parks, Islamic Civilization Studies Centre, Complex for Medical Studies, Biological Sciences and Health Services, Complete Business Centre, Residential Areas, Passengers station, Commercial Area, King Abdul Aziz Mosque
Focus: Knowledge Based industries, Tourism and Services

The Knowledge Economic City (KEC) is composed of several main components as follows: Taiba Complex for Technology and Knowledge-based EconomyTaiba Complex caters for the development of modern technologies, benefiting from its exceptional location near Al-Madinah. This technological park concentrates on meeting the technological demands of the Islamic world. It consists of a system of smart buildings and support services, which integrates the colleges and technological institutes in the City to provide a technically stimulating environment.

Technological and Administrative Colleges

Institutes of advanced technical studies including laboratories for scientific research, branches of local universities and research centers in the Islamic world in the fields of modern communications and applications, the information technology and industries, the software development automation and multimedia. It also includes colleges of business administration.Islamic Civilization Studies CentreThis part of the project addresses the subject of the Islamic civilization through the process of gathering, collecting and presenting the disciplines of Islamic civilization that naturally include knowledge, culture, values and principles based on tolerance and goodwill.

Complete Business Centre

In the heart of the City, business towers rise to accommodate the companies operating in Medina as well as knowledge-based industries that will be attracted by the project. The City is equipped with an advanced infrastructure, as well as conference halls, exhibition centers and offices accommodating up to 10,000 employees.Other components include the Complex for Medical Studies, Biological Sciences and Health Services, the "Seera Land" theme park, a passenger’s station and residential & commercial areas.

US software giant Oracle on Sunday signed a deal with Saudi Arabia’s Knowledge Economic City (KEC) in Medina to provide technology and expertise to help in the city’s development. Under the Memorandum of Understanding (MoU), Oracle will help in developing a blueprint for KEC and establish an Oracle Training Academy to supply the city with skilled labour. Construction on the 25 billion Saudi riyal ($6.7 billion) project is expected to begin in January 2008.

MEDINA: Malaysia will help Saudi Arabia build a RM25bil high-tech knowledge-economic city here.

“This is going to be a landmark not only for Saudi Arabia but also for the Muslim world,” said Deputy Prime Minister Datuk Seri Najib Tun Razak.

“It shows two Muslim countries can co-operate and collaborate in the interest of the ummah (Muslim community) and can indeed transform the Muslim world,” he said here on Monday.

He earlier witnessed the signing of a memorandum of understanding between Malaysia’s Multimedia Development Corporation (MDeC) and Saudi’s Seera City Real Estate Development Corporation to build the Medina Knowledge Economic City (KEC).

Najib said it was only fitting that Medina – the holy city that marked the beginning of the Islamic acquisition of knowledge – was chosen to transform the Muslims and to bring about a true revival.

“This will not only transform Medina but elevate its standing in the eyes of the world,” added the Deputy Prime Minister.

Najib said he was proud that Malaysia had been chosen as Saudi Arabia's partner for the KEC, which is patterned after Malaysia’s own Multimedia Super Corridor and Cyberjaya.

“We are willing to share our experiences and all our expertise. We have built the MSC and Cyberjaya and we will share the experience gained to make this project a real success,” he said.
He also suggested that Saudi Arabia and Malaysia embark on twinning programmes between the MSC and the KEC, adding that MDeC has the framework to bring in the Malaysian companies.

MDec is one-stop agency established to facilitate the development and promotion of the MSC.
Seera City managing director Dr Sami Baroum said they were already in talks with a number of Malaysian companies.

“The project is huge and can absorb as many joint ventures as possible,” he added.Physical work on the project will start in August and the first phase is expected to be completed in three-and-a-half years, he said.

That phase, he said, would include educational and health segments, hospitals, a hospitality complex, museum and some residential and retail shops.

Dr Sami said Medina, because of its holy status, was exclusively for Muslims and, hence, the projects would go to companies from the Muslim world.

“Malaysia is on top of the Organisation of Islamic Conference (OIC) in terms of technology and capability and experience,” he added.

KEC will be ready in 12 to 15 years. Spread over 4.8 million sq metres, there will be, among others, technology and knowledge complexes, an interactive museum, a business centre and Islamic civilisation studies, technology and administrative centres.

Super Corridors Directory

Cyberjaya
http://www.cyberjaya.gov.my/
Tel: 03 8686 6060 (City Command Centre)

East Coast Economic Region - ECER
http://www.ecerdc.com/
Level 50, Tower 1, Petronas Twin Towers, 50088 Kuala Lumpur
Tel: 03 2331 0021, Fax : 03 2331 0020

Iskandar Development Region - IDR
http://www.idr.com.my/

K Perak INC (Implementation & Coordination) Corporation
MSC Malaysia Cybercentre @ Meru Rayahttp://www.kperak.com.my/
Level 8, Perak Techno Trade Centre (PTTC) Bandar Meru Raya,Jalan Jelapang, 30020 Ipoh
Tel: 05 526 1881, Fax: 05 526 0881

Kulim High Tech Park - KHTP
http://www.khtp.com.my/
Suite 3.01 - 3.02 3rd Floor KHTP Business CentreKulim Hi-Tech Park 09000 Kulim, Kedah
Tel: 04 403 2420, Fax: 04 403 1973

Labuan Offshore Financial Services Authority Centre - LOFSA / IOFC http://www.lofsa.gov.my/
Level 17, Main Office Tower, Financial Park Complex,Jalan Merdeka, 87000 Labuan F.T
Tel: 087 59 1200, Fax: 087 41 3328

Multimedia Super Corridor - MSC
http://www.msc.com.my/
MSC Malaysia Headquarters Persiaran APEC, 63000 Cyberjaya
Tel: 1 800 88 8338, 03 8315 3000, Fax: 03 8315 3115

Northern Corridor Economic Region - NCER - Koridor Utara
http://www.ncer.com.my/
1st Floor, Kompleks Sime Darby, Persiaran Kewajipan, USJ7, 47600 Subang Jaya
Tel: 03 5885 8217, Fax: 03 5636 3552

Penang Automation Cluster - PAC
http://www.pac.org.my/
Invest-in-Penang Berhad1 Jalan Sultan Azlan Shah, PSDC Building, Bayan Lepas, 11909 Penang
Tel: 04 646 8833, Fax: 04 646 8811

PenangCybercity - PCC
http://www.investpenang.gov.my/
Invest-in-Penang Berhad 1 Jalan Sultan Azlan Shah,PSDC Building, Bayan Lepas, 11909 Penang
Tel: 04 646 8833, Fax: 04 646 8811

Putrajaya - Federal Administrative Capital
http://www.ppj.gov.my/
Kompleks Perbadanan Putrajaya, 24 Persiaran Perdana, Presint 3, 62675 Putrajaya
Tel: 03 8887 7000, Fax: 03 8887 5000

Sabah Development Corridor - SDC
http://www.sdc.net.my/
Sabah Development Corridor Data Centre, 88300 Kota Kinabalu, Sabah
Tel: 088 24 5097, Fax: 088 24 5097

Sarawak Corridor of Renewable Energy - SCORE
http://www.sarawakcore.com.my/
Regional Economic Development Authority - RECODAState Planning Unit, Chief Minister's Department, Sarawak

Technology Park Malaysia - TPM
http://www.tpm.com.my/
Level 5, Enterprise 4 Technology Park Malaysia 57000 Bukit Jalil, Kuala Lumpur
Tel: 03 8998 2020, Fax: 03 8998 2110

WLK 2 - Second Klang Valley, Selangor
http://www.wlk2.com/
16th Floor, Sultan Salahuddin Abdul Aziz Shah Building, 40000 Shah Alam
Tel: 03 5544 7117, Fax: 03 5510 9229

The Rich Gets Richer!

More than 500,000 Malaysian can afford to purchase a RM 30 million (US$9.1 million) house!

This was reported by a prominent property developer recently!

Real Estate and Housing Developers Association (REHDA) deputy president Michael Yam said the property players achieved better sales after the government introduced incentives, including real property gain tax exemption effective April 2007 and the removal of Foreign Investment Committee approval.

The maximum tax on property gains was 30 per cent for individuals and corporations previously. Other positive factors include Malaysia´s improving economy, availability of loans to foreigners and no restriction to number of units that can be purchased.

"These factors contributed to renewed interests in the property market and have resulted in more enquiries which translated into better sales," he said.

He said unlike the typical residential-type property investor who seek returns in the form of rentals, buyers of high-end residential property are motivated by less tangible factors such as prestige, exclusivity or for speculation.

Property within RM800,000 to RM 1,000,000

The strengthening of the ringgit also augurs well for the high-end residential housing market, he said. Other analysts said the recent economic uncertainties, brought about by the subprime troubles in the US, has made foreign investors more cautious.

Some investors seem to be holding back on further investments until a clearer trend emerges.

"We´ve only just begun (to rally). Singapore´s property market has had a good run for the past two years," he said.

He believed the domestic housing sector should remain robust as long as US subprime mortgage problems are reined in. "It´s status quo for us as we expect Bank Negara to maintain interest rates at the current level," he said.

He said the recent 50 basis points interest rate cut by the US Federal Reserve was not likely to affect Malaysia´s property.

GOVERNMENT REGULATIONS: The government offers incentives to developers under the build-and-sell concept. The incentives include speedy approval of land matters and development plans. Such approvals normally take one to two years but will be expedited and shortened to four to six months. Developers who opt for the concept will also be exempted from paying the RM200,000 deposit and stamp duties.

In the Budget for 2008, Prime Minister Datuk Seri Abdullah Ahmad Badawi announced 50 percent stamp duty exemption on documents of transfer for the purchase of one house costing not more than RM250,000. The proposal is effective for sale and purchase agreements executed from Sept 8, 2007, to Dec 31, 2010. This measure will reduce the cost of purchasing a house by up to RM2,000. He also announced that the government will allow monthly withdrawals from savings at the Employees Provident Fund to service mortgages.

Halal Food Is a Billion Dollar Business

The global market for halal products is US$560 billion (RM2.12 trillion) a year.

The concept of halal -- meaning "permissible" in Arabic -- has traditionally been applied to food. Other goods and services can also be certified halal, including cosmetics, clothing, pharmaceuticals, financial services and even tour packages.

Malaysia has been globally recognised as the world’s halal food hub, despite its cosmopolitan, multi-religious nature. Malaysia has been aggressively marketing itself as a global centre for the manufacture and export of halal products, in line with its moderate version of Islam that emphasises economic and scientific progress.

Foreign Muslims are attracted to Malaysia not only by the beautiful scenery and the prevailing peace, but also by the halal culinary delights commonplace in the country. Between 1999 and 2003, tourists from Muslim Middle East countries to Malaysia rose from about 20,000 to more than 800,000. And this number is increasing.

The certification of halal food has been conducted throughout the country since 1982 by the Department of Islamic Development of Malaysia (JAKIM). The Codex Alimentarius Commission, which is responsible, under the United Nations,for regulations of food preparation globally, has cited Malaysia as the best example in the world in terms of justification of halal food. The Malaysian model has been regarded as the role model for the development of world halal food industries.

According to MITI, quoting sources from the International Market Bureau Canada, the total world Muslim population is estimated to be 1.8 billion, and based on the estimated expenditure per capita for food of US$0.85 (RM3.23) a day, it is estimated that the market for halal products is US$560 billion (RM2.12trillion) a year.

In Malaysia, 60 percent of the population are Muslims and if one were to estimate the per capita expenditure for food as RM1 a day, then thedemand for halal products is more than RM5 billion a year. From 1995 to June 2003, the Malaysian Industrial DevelopmentAuthority (MIDA) had issued licences to 424 food manufacturing companies with a total investment of RM5.9 billion.

Determining the “halalness” of a product goes beyond ensuring that food is pork-free. Carnivorous animals, amphibians (frogs and mangrove crabs) and all insects except grasshoppers are not halal. Intoxicants in any form are also off-limits. Meat from permissible animals such as poultry and cattle must be slaughtered inaccordance with Islamic rites to render them halal.

Halal food also adheres to stringent standards in hygiene and sanitation, and must not be harmful to health. Halal food certification refers to the examination of food processes, from the preparation, slaughtering, ingredients used, cleaning, handling and processing, right down to transportation and distribution.

The concept of halal food is truly from the farm to the table, and must be nutritious and prepared from permissible ingredients in a clean and hygienic manner Contamination from najis (filth as defined by Islamic law) or haram (prohibited)elements also renders food non-halal. Sticky areas include ingredients, genetically modified food and utensils used in processing. Cod liver oil may be halal, but the oil might be contained in a bovine gelatin capsule produced from cows that havenot been slaughtered in line with Islamic rites, making the supplement non-halal. Cows might be halal animals, but splice their genes with porcine DNA, and theresult is a haram hybrid. Another example is that, innocuous items like biscuits might list only halal ingredients such as flour, butter and sugar, but the egg-yolk glaze might be applied with a brush made from pig bristles, making the biscuits non-halal. Logistics and packaging are vital too. Non-halal and halal goods must also be kept separately in the storage or during transportation and distribution in order to prevent contamination.

Since Malaysia is serious to position itself to be the halal food hub center in the Asian region and is the pioneer in the globalisation of Halal certification, the relevant authorities should implement strictker rules and regulations.

Government authorities such as JAKIM, JAIS, SIRIM and MOH will help investors in obtaining global Halal Status and also boost the implementation of Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP), Veterinary Inspection NO and ISO.

As a pioneer in promoting halal food globally, Malaysia’s locally developed halal certification serves as an example for other nations and has been commended by the United Nations as a model system. Currently, halal products certified in Malaysia run the gamut from processed chicken and beef products to ice cream, chocolate and food supplements. This is in line with the nation’s aim of being the regional hub for halal food products.

Opportunities :- The Government of Malaysia through the Ministry of Agriculture and the Department of Veterinary Services has identified a few potential places to be formulated and developed as Halal Food Industrial Zones. These places are: - Pulau Indah in Selangor - Pedas Halal Park in Negeri Sembilan - Serkam Pantai in Melaka - Paya Pahlawan in Kedah - Pantai Remis in Perak - Gambang in Pahang

Food production needs to diversify to strengthen the up and coming halal food hubs. Industries keen on going big scale in food production should look at the endless possibilities of value added products, but should not confine itself to food of their ethnic origins only, but must broaden their horizons to food from other cultures. Malaysia is not competitive to sell raw material but it has the elements to be a trading nation. What Malaysia can do, is to bring in raw material, turn them into halal value added products, and sell them to the global market. This is where halal hubs play its role.

Halal hub means export capable. Therefore the halal hub and the food production sector should complement each other. Under the Ninth Malaysia Plan and Third National Agriculture Policy, the Agriculture and Agro-based Industries Ministry wants to transform Malaysia into a net food exporter by 2010. And the country seems to be on the right track.

Malaysia has been widely recognised for its excellent halal standards, which is further strengthened by the Islamic Development Department of Malaysia’s (JAKIM) halal certification.

“[Our halal certification] is widely, in fact, internationally recognised,” its department’s director general Datuk Mustafa Abdul Rahman says.

The United Nations has also recognised Malaysia as the best example in producing halal food products.

In 1993, JAKIM was awarded the leader in halal certification by IFANCA and in 2004 the same award was given by the Islamic Food Council of Europe. In August 2004, JAKIM, with the Standards Department Malaysia launched the Malaysian Halal Standard MS 1500:2004, being the first halal standard in the world developed based on international standards.

Many countries - be they Islamic or non-Islamic - want to be the number one player of the world's halal industries. Malaysia is one of them. International halal industry players acknowledge Malaysia’s competitive edges: it has been recognised as an Islamic country; has raw materials, supporting infrastructure as well as state-of-the-art processing technology; internationally-approved JAKIM's halal certification and a strong backup and blessing from the government.

There is no stopping Malaysia from reaching its goals.

Menjelang Pelancaran ECER - Petronas Perancang Utama

Hassan said Petronas took seven to eight months to complete the masterplan, which will be officially handed over to the government at the ECER's launch.

Petronas, he said, could be one of the private sector representatives in the council that will run the ECER. He said the council, whose members will include the prime minister and deputy prime minister, the menteris besar of the four states, two cabinet ministers and representatives of the private sector, will be responsible for the implementation of the ECER masterplan. According to him, it is too early to say whether an authority will be established to manage the ECER, as has been done for the IDR and NCER. Hassan said during the formulation of the ECER development plan, Petronas had spoken to all four state governments, including the Opposition-led Kelantan government.

"The plan can succeed. It will have one council, its Bill is being drafted to be tabled in Parliament in December," said Hassan. "If there is focus and strong commitment, there is no reason why the ECER cannot succeed."

Petronas merupakan perancang utama wilayah ekonomi itu, yang meliputi kawasan 66,736 kilometer persegi atau 51 peratus daripada keluasan Semenanjung Malaysia.

"Daripada RM112 bilion itu, 20 peratus akan dibiayai oleh sektor swasta, 27 peratus melalui inisiatif pembiayaan swasta (PFI) dan bakinya oleh kerajaan,” kata Presiden dan Ketua Pegawai Eksekutif Petronas, Tan Sri Mohd. Hassan Marican .

Ia merupakan wilayah pembangunan ketiga yang akan dilancarkan oleh Abdullah tahun ini selepas Wilayah Pembangunan Iskandar (WPI) di Johor dan Wilayah Pembangunan Koridor Utara (Koridor Utara) yang meliputi negeri-negeri di utara Semenanjung Malaysia. Dengan jumlah penduduk sebanyak 3.9 juta, dianggarkan RM30,000 perlu dibelanjakan ke atas setiap individu di wilayah itu dalam tempoh pelaksanaannya dari sekarang hingga 2020.

Bilangan penduduk di ECER merupakan 14.5 peratus daripada keseluruhan penduduk negara ini yang seramai 26.8 juta dan wilayah itu juga merupakan kawasan kediaman utama masyarakat bumiputera yang merupakan 86.6 peratus daripada penduduknya. Ia diikuti oleh China 7.8 peratus, India 1.8 peratus dan lain-lain 3.8 peratus.

Peningkatan kemudahan jalan raya dan pengangkutan termasuk pembinaan fasa ketiga Lebuh Raya Pantai Timur dari Kuala Terengganu dan Kota Bharu, fasa empat Lebuh Raya itu yang menghubungkan Kuantan ke Johor Bharu dan jalan raya menghubungkan Temerloh ke Kuala Pilah. Selain itu, ia juga membabitkan pembinaan beberapa laluan jalan raya baru bagi menghubungkan ECER dengan wilayah-wilayah di Pantai Barat Semenanjung.

Menurut Hassan, matlamat utama pelan pembangunan ECER adalah untuk mempercepatkan pertumbuhan di wilayah itu secara berdaya maju, seimbang dan mapan. Dengan itu, katanya, ia akan dapat menangani ketidakseimbangan di wilayah itu kerana negeri-negeri di ECER mencatatkan pendapatan purata isi rumah antara yang paling rendah di Malaysia.

Pada ketika ini, Terengganu dan Kelantan adalah negeri yang mencatatkan kemiskinan tertinggi di Malaysia, yang mencatatkan 15.4 peratus dan 10.6 peratus kemiskinan di negara ini, dan diikuti oleh Pahang 4.9 peratus.

Di bawah pelan induk ECER katanya, sejumlah 561,000 pekerjaan akan diwujudkan menjelang 2020 dan kemiskinan tegar disasarkan untuk dikurangkan kepada sifar. Selain itu, wilayah ekonomi itu juga bertujuan untuk menggerakkan ekonomi, meningkatkan keupayaan bagi mendapatkan pengetahuan dan inovasi, menangani ketidakseimbangan sosioekonomi yang berterusan, meningkatkan standard dan kualiti kehidupan dan mengukuhkan institusi dan melaksanakan keupayaan. Selain menangani masalah akses ke wilayah itu, ketidakseimbangan dengan wilayah-wilayah lain di pantai barat dan kemiskinan tegar, ECER juga bermatlamat untuk menangani ketidakseimbangan pendapatan antara penduduk bandar dan luar bandar.

"Pada masa yang sama ia juga akan menangani masalah infrastruktur asas, serta mengoptimumkan sektor hartanah, yang termasuk untuk meraih potensi Tanah Simpanan Melayu.

"Antara idea untuk mengoptimumkan Tanah Simpanan Melayu ialah secara mewujudkan satu amanah yang akan memajukan tanah berkenaan,” katanya. Ini kerana Tanah Simpanan Melayu mewakili 40 peratus daripada tanah di ECER.

Hassan berkata, lebih 190 institut latihan dan institusi pengajian tinggi sedia ada yang terdapat dalam ECER juga akan dimaksimumkan peranannya supaya ia bukan sahaja untuk melatih orang tempatan meningkat ke rantaian nilai malah menarik mereka yang berada di luar untuk belajar di sana. Selain pendidikan, katanya, sektor lain yang telah dikenal pasti untuk menyegarkan wilayah itu ialah pelancongan, minyak dan gas, petrokimia, pembuatan dan pertanian.

"Teras ECER ialah pertanian dan pelancongan,” katanya.

The National Mission - Strength Of Human Capital To Determine Malaysia's Success & Islam Hadhari

Malaysia’s economic growth is in no small measure due to the foreign investors’ confidence that it is a place that is safe to invest in. It is also due to the endeavour and ingenuity of Malaysian citizens, who have harnessed the power and potential of industry and technology to turn raw materials into compound products for export, and to use human skills to assemble the electronic components that drive so many of the world’s computers. Petroleum and liquefied gas; chemicals and additives; rubber, wood and textile products; disk drives: All bear the reputable stamp, "Made in Malaysia".

The development of quality human capital is critical to build competitiveness and to achieve national development goals.

As a developing nation, Malaysia faces many competitive pressures and challenges in the 21st century. In the current environment, success comes to those who value-add themselves. This is true for individuals, corporations and nations. To realise our country’s aspirations, a substantial effort must be made to develop human capital and consequently enhance our competitiveness, productivity and capacity to innovate. .

Our youth are like unpolished gemstones. They will inherit our nation and will determine its fortunes in the years ahead. They must possess intellectual capacity, knowledge and culture. They must possess physical well-being and strong morals. Our youth must be prepared to lead our nation to greater heights.

We are currently effecting a quantum leap to develop human capital, and increase our productivity and innovation, so that we can attain developed nation status by 2020. We are transforming our education system at all levels – from pre-school to higher education. It is a complex task that involves many stakeholders. The Education Development Blueprint, 2006 – 2010 that was launched on 16 January 2007 provides the strategy and guidance to deliver quality basic education that is relevant to present needs.


What is the National Mission to determine Malaysia's success?

A: The National Mission has five main thrusts:-

1) moving the economy up the value chain
2) developing first class human capital
3) addressing persistent socio-economic imbalances,
4) improving the quality of life and
5) strengthening institutional capacity all of which are universal, constant requirements for national-building.

The strength of our human capital will determine the success of the Mission. It will determine whether we achieve developed-nation status and progress further. Let us all build a nation that enriches every citizen, regardless of race or belief. Let us be a nation where everyone enjoys balanced development. Let us carry our nation to the peak of distinction.


Q: How will the growth corridors help the poor, especially the Malays?

A: The philosophy behind the development corridors is that no one should be left behind.

There are fears that these development corridors, especially the IDR, will threaten the future of the Malays. Perhaps in the past, we were laggards in our own land. This is not the case now. We now have many Malays who are well educated and have become doctors, lawyers, accountants and even astronauts. A class of Malay managers, capable of successfully running businesses, has emerged. Therefore, the presumption that the IDR will harm Malays is an insult to the ability of Malays to compete on the global stage.

The NCER has been well received by the people of the north. Similarly, the ECER has elicited a positive response from the people on the east coast, including the Pas government in Kelantan.

Our efforts are evidence of the government's sincerity in bringing development to all parts of the country. We put aside politics to improve the quality of life of the people and to lift them out of poverty. The Prime Minister said the harmony among the various communities and religions in the country was not an “optional luxury” but a necessity.

Islam must be identified as a religion that dispenses justice, prohibits inequity and rejects violence. There is nothing wrong with Islam, the error lies in the misguided actions by those who fail to interpret Islam and those who fail to practise it with open minds and rational thought.

Muslims should concentrate on building what makes Islam attractive. The government's stand is that Islam will be respected if it develops intellectual excellence, emphasises the pursuit of knowledge and concentrates on attaining economic success.

The 10 principles of Islam Hadhari, an approach that was understood and supported by all.

The Constitution provides that Islam is the official religion of the federation but there is freedom to practise other religions. Guided by the spirit of the Constitution, Malaysians of different religions must exercise mutual respect. We have received international acknowledgement for our success in developing the Islamic financial system and in building a halal hub, and these efforts are no less important than our individual religious obligations or our fardu ain. These efforts illustrate that Islam is contemporary and relevant in the modern economy. In fact, research in economy, science and technology is encouraged. We should give priority to these pursuits. Islam and the ummah will be developed more quickly when Muslims can show excellence in economy, science and technology.

Malaysia has continued to take great strides in becoming a premier global Islamic centre. In the Islamic capital markets, Malaysia accounts for two thirds of the world's Islamic bonds, amounting to US$47 billion (RM156.5 billion). In line with the Malaysian International Islamic Finance Centre (MIFC) initiative, Malaysia has liberalised the Islamic finance sector to encourage the participation of foreign institutions in banking, capital markets and takaful. In addition, we have taken a leadership role in establishing institutions such as the Islamic Financial Services Board (IFSB) and the International Centre for Education in Islamic Finance (INCEIF).

The IFSB, which has a membership of 125 countries, works to co-ordinate regulations and standards internationally, whereas INCEIF is a university-level institution that develops human capital to meet the needs of the Islamic finance sector.

Malaysia is also committed to becoming a world class halal hub. The government has been active in promoting the products and services of Halal Malaysia while strengthening its halal certification. Our commitment is shown through the establishment of the Halal Industry Development Corporation to spearhead and co-ordinate a variety of initiatives.


What is Islam Hadhari?

Islam Hadhari is an approach that emphasizes development, consistent with the tenets of Islam and focused on enhancing the quality of life. It aims to achieve this via the mastery of knowledge and the development of the individual and the nation; the implementation of a dynamic economic, trading and financial system; an integrated and balanced development that creates a knowledgeable and pious people who hold to noble values and are honest, trustworthy, and prepared to take on global challengers.


Principles of Islam Hadhari .

Islam Hadhari aims to achieve ten main principles:

• Faith and piety in Allah

• A just and trustworthy government

• A free and independent People

• Mastery of knowledge

• Balanced and comprehensive economic development

• A good quality of life

• Protection of the rights of minority groups and women

• Cultural and moral integrity

• Safeguarding the environment

• Strong defenses


The Ummah must be a society that embraces knowledge, skills and expertise in order to build capacity. Islam makes it compulsory for Muslims to embrace knowledge in all fields. The misconception that there exists a difference between so called secular knowledge and religious knowledge must be corrected. Islam demands the mastery of science and technology and the enhancement of skills and expertise. It is important for the Ummah to be guided in understanding and practicing Islam as a comprehensive way of life as a means to building a civilization.

A wholesome way of life will create the balance between our responsibilities in this world and the Hereafter. Islam is not merely a ritual, because ritualism is meant solely for the Hereafter. The Government has never practiced secularism that rejects the Hereafter and focuses solely on worldly matters. Islam must be lived as a system that integrates the worldly life and preparations for the Day of judgment.

The 9th MALAYSIA PLAN - A 5 YEAR PLAN

Prime Minister Datuk Seri Abdullah Ahmad Badawi unveiling the Ninth Malaysia Plan (9MP) which will steer the National Mission towards realising Malaysia's vision of becoming a developed nation by 2020. Pix: Rosli AwangThrust 1: Moving the Economic Up the Value Chain

KUALA LUMPUR, March 31, 2007 -- The Prime Minister Friday unveiled the Ninth Malaysia Plan (9MP) which will steer the National Mission towards realising Malaysia's vision of becoming a developed nation by 2020.


Datuk Seri Abdullah Ahmad Badawi said the 9MP is consistent with the ambition to build a country with an advanced economy, balanced social development and a population which is united, cultured, honourable, skilled, progressive and farsighted.

"We want progress that is enjoyed by all, regardless of religion or ethnicity.

"We want to build a progressive and developed civilisation that echoes the glorious age of Islam and other civilisations, in line with the concept of Islam Hadhari," he said in his speech in Parliament when tabling the 9MP themed 'Building a civilisation to elevate the nation's dignity.'

As a guide for the rest of the journey, the government has drafted and will implement the National Mission, a framework for the country's development agenda which outlines the key steps to be taken in the next 15 years.

In his speech, the Prime Minister outlined the five thrusts of the National Mission which focused on key priority areas which would enable the nation to achieve Vision 2020. They are:

* To increase the value add of the national economy;
* To raise the country's capacity for knowledge, creativity and innovation and nurture "first class mentality";
* To address persistent socio-economic inequalities constructively and productively;
* To improve the standard and sustainability of the quality of life; and
* To strengthen the institutional and implementation capacity of the country.

The first thrust is to increase the value add of existing economic sectors as well as generate new knowledge-intensive activities and employment in information communication and technology (ICT), biotechnology, nanotechnology and services.

Under this strategy, the government will also build a conducive environment for the private sector to take a leading role in the country's development.

Under the second thrust, the government aims to undertake comprehensive improvement of the country's education system, from pre-school to tertiary and vocational institutions, besides fostering a more enabling environment to encourage Research and Development (R&D).

At the same time, heavier emphasis will be placed on the shaping of values to create more well-rounded individuals.

The third thrust aims to eradicate poverty, generating more balanced growth and ensuring the benefits of growth are enjoyed by the people in a fair and just manner.

The fourth thrust stresses on the provision for basic needs such as water, energy, housing, transportation and other amenities but more emphasis would be placed in addressing issues related to maintenance, upgrading and efficient usage of resources.

In the fifth and final thrust, the government is committed to improve the public services delivery system at various levels, and will also address issues related to corruption and integrity in the public sector and among the general public.

Elaborating on the first thrust, the Prime Minister said the government will continue to promote the transition to higher value added activities in three main sectors, manufacturing, services and agriculture.

He said new sources of growth will be identified and promoted to generate additional income and to develop new sources of economic growth.

With globalisation, "not only does the domestic macroeconomic structure and environment need to be strengthened, elements of the micro economy including the respective economic sectors and local corporations also need to be made more resilient," said Abdullah.

Among others, the government will prepare specific incentives to attract investments, including high quality Foreign Direct Investment (FDI) for manufacturing sector activities that are being promoted. In addition, small and medium enterprises (SMEs) with high innovation capabilities will be promoted to become part of the global supply chain.

The Prime Minister said some of the projects to be implemented to enhance the manufacturing sector include the expansion of Kulim High Technology Park, the establishment of Sarawak Technology Park and Perak Technology Park and the development of 20 industrial and SME parks throughout the country.

To enhance the manufacturing sector, the government will develop several industrial clusters, which include electrical and electronics clusters (E&E) clusters in Penang and Kulim and High Technology Park and petrochemical clusters in Pahang and Terengganu.

To improve access to sources of finance, the government will create several funds such as the Strategic Investment Fund, the Automotive Development Fund, the Industrial Restructuring Fund, the Automation Fund and specific funds for biotechnology, halal products and handicraft.
Abdullah said the government will establish the Halal Industry Development Board to develop the industry in a holistic and orderly manner.

The South Economic Region, he said, will be developed as a dynamic regional services hub as part of efforts to expand the sector from the Klang Valley to other locations.
The government will set up the Export Services Fund and SMEs Export Services Fund to enhance the services sector's access to financing.

On tourism, Abdullah said the government will also develop Malaysia as a regional centre for health tourism in both traditional and modern health treatments through the creation of a brand for Malaysian health services, which will be known as "Health Malaysia."

The Prime Minister said, the government will double efforts to develop Malaysia as a regional centre for excellence in the provision of tertiary level education through strategic marketing efforts and the branding of educational products.

He said the agriculture sector will be given a new lease of life in order to become the third engine of economic growth through the 'New Agriculture' programmes, which will focus on enhancing the value chain, cultivating high value added agricultural activities and large scale commercial farming, utilising ICT as well as exploiting the full potential of biotechnology.

The New Agriculture programmes which also encourage participation from the private sector, graduates and agriculture entrepreneurs, are aimed at making Malaysia become a net export of food by 2010.

The Prime Minister said, to realise these objectives, the Prime Minister said, the government had allocated RM11.4 billion for the agriculture sector, a 70 per cent increase over the allocation in the Eighth Malaysia Plan (8MP).

"There are no limits to the upside potential of this sector if it is managed effectively. The agriculture sector needs to be viewed through a new lens, infused with fresh conviction, developed with a new spirit - a new agenda," said Abdullah.

Other sectors to be focused in the first thrust of the National Mission include generating new sources of wealth through ICT and biotechnology and creation of new jobs to keep unemployment low and to ensure that graduates and skilled workers are able to secure employment suitable to their qualifications.

At the same time, focus will also be given to efforts to make the private sector a driver of economic growth by promoting the Private Financing Initiative (PFI) as a new approach under the privatisation programme; and to expand the market for Malaysian products and services which will help strengthen its position in traditional markets and by exploring new markets.

On the second thrust, the Prime Minister said the development of quality human capital will be intensified, which will be a holistic approach and with emphasis on the development of knowledge, skills, intellectual capital in science, technology and entrepreneurship, while developing a culture that is progressive, coupled with high moral and ethical values.

"This is what is meant by human capital with first class mentality," said the Prime Minister, outlining three main strategies to be adopted to achieve the objective.

He said the three strategies are firstly, increasing the capacity for and the mastery of knowledge; secondly, strengthening the nation's capabilities in science, R&D and innovation; and thirdly, nurturing a cultured society that possesses strong moral values.

To increase the capacity for knowledge, Abdullah said the government will enhance rural school facilities, especially in Sabah and Sarawak.

At tertiary level, the Universiti Darul Iman in Terengganu and Universiti Darul Naim in Kelantan and a number of polytechnics will be constructed.

The Prime Minister said as part of efforts to make national schools the "School of Choice", all existing national schools will be made "Smart Schools".

He said to this end, RM284 million will be allocated for the Smart School Programme and RM1.51 billion for the Computerisation of Schools Programme.

Under the third thrust, Abdullah said, in addressing socio-economic disparities, the government will fine tune and streamline strategies, taking into account the open nature of the global economy and the lessons learnt.

He said the government has outlined three principles to address the socio-economic disparities, and they are:

* Eradicating poverty and ensuring no one is left out of the development process;
* Generating balanced development especially in under-developed areas and creating more opportunities for direct participation in the country's economic development; and
* Ensuring that all Malaysians benefit from the economic growth fairly and equitably.

Abdullah said to this end, the government is committed to achieving the target of 30 per cent bumiputera equity share ownership by 2020; assisting the development of customary land in Sabah and Sarawak; and raising the share of equity ownership for ethnic Indians to 3.0 per cent by 2020.

Through the fourth thrust of the National Mission, the government is committed towards ensuring that all citizens benefit from the development programmes and share the fruits of success.

"Such development will be more meaningful if it is equitably shared to improve the quality of life of the citizens," said the Prime Minister.

To achieve the objective of the fourth thrust, focus will be made towards meeting housing needs and improving urban services; improving healthcare services with the construction of new hospitals and implementing a human resource development programme in healthcare.

Others include improving transportation facilities and infrastructure, such as the establishment of a National Commission to regulate the overall public transportation system, with a specific commission to be set up for the Klang Valley.

Abdullah said the government will also implement a number of major projects across the country, including the Penang Monorail and the Eastern Dispersal Link in Johor.

To improve the quality of life of the people, the government will enhance water supply systems and overcome floods.

It will also focus on programmes to ensure national security and public order.

The fifth thrust of the National Mission outlines the government's efforts to improve the delivery system particularly amongst government-linked companies (GLCs).

In addition, human capital development amongst the civil service will also be intensified through education and training.

The Prime Minister said to improve the delivery system in the public sector, the government will review and amend laws and regulations which impede development.

He said, a Public-Private Sector Action Committee will be formed to recommend needed amendments to laws and regulations.

Abdullah also proposed the establishment of two National Implementation Action Bodies; one to monitor selected high impact projects from the 9MP and the second to monitor programmes related to the formation of a new generation of the Bumiputera Commercial and Industrial Community (BCIC2).

Before concluding his speech, which lasted for about one hour and 40 minutes, the Prime Minister stressed on the need for full commitment and concerted efforts from all parties to ensure the successful implementation of the Ninth Malaysia Plan.

The Prime Minister said: "Each one of us plays an important role in ensuring success of our nation and our race.

"The private sector must take the lead in generating the economic growth while the public sector enables economic growth and is the provider for socio-economic facilities. Civil society must be a partner in development.

"If we want to realise our aspiration to become a developed nation, every citizen has to show commitment and willingness to work hard, improving our self-worth and embrace life long learning."

Malaysia Massive US$ 51 Billion Northern Development Plan NCER

Malaysia is a country on the move. From a country dependent on agriculture and primary commodities in the sixties, Malaysia has today become an export-driven economy spurred on by high technology, knowledge-based and capital-intensive industries. Continuous efforts have been pursuit to enhance the services sector, accelerate value-added of the manufacturing sector as well as boost the agriculture and agro-based sector as the third engine of growth. New sources of growth continue to be promoted and developed such as biotechnology, information and communications technology, halal products and Islamic finance.

A major factor that has attracted investors to Malaysia is the government's commitment to maintain a business environment that provides companies with the opportunities for growth and profits. Foreign investors in Malaysia's can hold 100% equity for all investments in new projects. Malaysia continues to enjoy healthy surplus in the external trade, low unemployment as well as strong international reserves and high national savings.

Today, Malaysia can boast of having one of the most well-developed infrastructure among the newly industrialising countries of Asia. Indeed Malaysia is developing as a knowledge-based economy, driven by human capital, innovation and ideas .

Prime Minister Abdullah Ahmad Badawi launched a 51-billion-US-dollar development masterplan to spur economic growth and reduce poverty in northern Peninsula Malaysia.

The Northern Corridor Economic Region (NCER) is a government initiative to boost the economy and raise income levels in the northern states of Perlis, Kedah, Penang and Perak over 18 years.

Projects and programmes to enhance human capital, infrastructure, and competitiveness in the region will involve about 177 billion ringgit public and private sector investments from 2007 to 2025,' a government statement said.

'The focus will be to turn the NCER into a modern food zone of Malaysia, increase the value-add in the manufacturing sector and strengthen tourism,' it said.

Of the 177 billion ringgit, one-third will be spent by the government, with the balance to be undertaken through private finance initiatives and private sector investments, the statement said.

'It will be led and driven by the private sector and market imperatives,' it said, adding that the masterplan aims to create half a million jobs by 2012 and one million by 2018.

The government added that financial incentives will be given to promote agricultural transformation through economies of scale.

The masterplan includes key benchmarks, with the agriculture sector expected to increase its exports to 48 billion ringgit by 2012 from 32 billion ringgit in 2005.

For manufacturing, investments are projected to jump to 24.3 billion ringgit by 2012 from 16.5 billion ringgit in 2006, while the tourism sector aims to raise average spending per visitor to 3,034 ringgit by 2012 from 1,890 ringgit currently.

Government-linked conglomerate Sime Darby, which drew up the masterplan for the Northern Corridor, will act as project manager and investor.

The launch of the NCER comes months after the prime minister kicked off the Iskandar Development Region in southern Johor state.

Abdullah, also finance minister, has said Malaysia aims to attract 50 billion ringgit to the IDR in the next five years as part of an initiative to turn the area, 2.5 times the size of neighbouring Singapore, into a new Asian metropolis.

"We have launched the Northern Corridor, while the Eastern Corridor as well as the Sabah and Sarawak Corridors, when they are launched, we feel that the Japanese has a very constructive role to play and Malaysia has benefited as a result of economic relations with Japan," he said.

Menjelang Pelancaran ECER - Rapatkan Jurang Timur Dan Barat

Sekian lama Banjaran Titiwangsa menjadi tembok pemisah yang mewujudkan ketidakseimbangan pembangunan antara wilayah pantai Barat dan Timur Semenanjung Malaysia.Minggu depan, tembok penghalang itu bakal "dilenyapkan" apabila Datuk Seri Abdullah Ahmad Badawi dijadual melancarkan pelan pembangunan Wilayah Ekonomi Pantai Timur (ECER) di Kuala Terengganu 29 Oktober ini.

ECER bakal melengkapkan rencana pembangunan bagi mengimbangi seluruh wilayah di Semenanjung selepas pelancaran Wilayah Ekonomi Koridor Utara (NCER) di Utara dan Wilayah Pembangunan Iskandar (IDR) di Selatan.

Nota:- Wilayah Ekonomi Koridor Utara (NCER) yang menjanjikan pelaburan sebanyak RM177 bilion dalam tempoh 18 tahun antara 2007 dan 2025 di Kedah, Perlis, Pulau Pinang dan Perak.

Pelan Pembangunan Koridor Ekonomi Pantai Timur (ECER), sebuah rancangan pembangunan ekonomi mega, dijangka mencetuskan kegiatan ekonomi yang rancak dan memberi faedah sampingan yang besar di Pahang, Terengganu, Kelantan dan sebahagian daripada Johor dimana sejumlah RM112 bilion akan dilaburkan dalam Koridor Pantai Timur, dengan kira-kira 40 peratus daripadanya akan dibelanjakan bagi hubungan pengangkutan utama dan kemudahan-kemudahan prasarana penting yang lain.

Pelan induk yang dirangka oleh syarikat multinasional negara, Petronas, dilihat sebagai pembasmi kemiskinan dan pemangkin kemajuan bagi negeri Kelantan, Terengganu, Pahang dan kawasan Mersing di Johor.

Presiden dan Ketua Pegawai Eksekutif Petronas Tan Sri Mohd Hassan Marican berkata tumpuan program ialah mewujudkan jalinan perhubungan dan pengangkutan seperti pembinaan fasa ketiga Lebuh Raya Pantai Timur dari Kuala Terengganu dan Kota Bharu, fasa empat Lebuh Raya itu yang menghubungkan Kuantan ke Johor Bharu dan jalan raya menghubungkan Temerloh ke Kuala Pilah.

Walaupun negeri-negeri dalam ECER meliputi 51 peratus keluasan Semenanjung Malaysia, namun pendapatan purata isi rumah adalah yang paling rendah di Malaysia. Terengganu mencatatkan kemiskinan tertinggi iaitu 15.4 peratus, diikuti Kelantan 10.6 peratus dan Pahang 4.9 peratus.

Di bawah pelan induk ECER, sejumlah 561,000 pekerjaan akan diwujudkan menjelang 2020 dengan pelancongan dan pertanian menjadi teras di samping industri petroleum dan gas yang akan dterus dikembangkan oleh Petronas.

Antara 227 projek yang dilaksanakan di bawah ECER, sektor pembangunan yang diyakini dapat mengembangkan ekonomi masyarakat Melayu ialah penggunaan pintar ke atas rizab Melayu di Pantai Timur, dengan keluasan 40 peratus daripada tanah dalam ECER.

Inisiatif ECER adalah sejajar dengan hasrat yang dinyatakan Perdana Menteri iaitu untuk membasmi kemiskinan dan membangunkan modal insan, tegas Petronas.

Ia bertujuan menambah pendapatan hampir empat juta orang, yang mewakili 15 peratus daripada keseluruhan penduduk negara ini, bakal mewujudkan 560,000 pekerjaan baru dan menarik pelaburan berjumlah RM112 bilion dalam tempoh 12 tahun akan datang.

Pelan induk yang "memberi tumpuan kepada rakyat" dan dikendalikan Petronas ini melibatkan 227 projek dalam sektor pengangkutan, prasarana, pelancongan, pendidikan, pembuatan, minyak dan gas serta pertanian.

ECER juga bertujuan menangani ketidak seimbangan pembangunan antara pantai timur dan barat Semenanjung Malaysia serta perbezaan pendapatan antara kawasan bandar dan luar bandar dalam wilayah berkenaan.

All eyes on eastern corridor

WITH the Iskandar Development Region (formerly the South Johor Economic Region) kicking off rather successfully, the spotlight is now on the Petroliam Nasional Bhd (Petronas)-led Eastern Corridor Economic Region.

The eastern corridor development blueprint, which is expected to be out this quarter at the earliest, is said to be focused on the socio-economic and industrial development of the region involving Kelantan, Terengganu and Pahang.

The development of the eastern corridor, together with the northern corridor spearheaded by Sime Darby Bhd and southern corridor (Khazanah Nasional Bhd) are part of the Ninth Malaysia Plan (9MP), which has the objective of spreading economic development throughout the country.

Billions are expected to be poured into the region – RM22.3bil from Government coffers under the 9MP (which is a big 56% jump from the 8MP) and about RM40bil from Petronas' investments in O&G projects there.

"We expect the modus operandi of the eastern corridor development to be similar to the Iskandar Development Region in terms of the setting up of special bodies and institutions akin to the Iskandar Regional Development Authority and South Johor Investment Corp.

"This is to ensure smooth implementation, active engagements and balanced representation among the private and public sectors, Petronas (as the lead agency in the project), the federal and State Governments,” Aseambankers said.

So, what's new that could emerge from the Eastern Corridor Economic Region development?

"Setting up a shipyard in Terengganu’s backyard could also lead to greater economic activities, considering that there is a massive need for offshore marine vessels to support the O&G activities there.

"We also foresee further expansion at existing seaports and the centralised tankage facilities in Kertih,” Aseambankers said.

Kelantan offers ample opportunities in terms of new infrastructure requirements to support the increasing activities in the Malaysia-Thailand Joint Development Area and potential O&G discoveries offshore Kelantan.

"We favour the idea of setting up O&G infrastructure (supply base and petrochemical site) in Kelantan similar to that of Terengganu, as it is strategically located and could potentially become a regional base for Malaysia-Thailand-Vietnam O&G activities,” Aseambankers said.

It added that a new cracker plant could be built in the region as well. The development of the eastern corridor as the country's petrochemical hub is now well underway.

"The challenge would be to spearhead its growth into a leading petrochemical and O&G hub in the region by catalysing an inflow of investments in related industrial, commercial and infrastructure development,” he said.

He believes further expansion and deepening of the petrochemical hub will be the eastern corridor's core economic foundation and strategy for growth and industrial development.

Yeah expects the potential size of the investments, together with Petronas' ongoing capital investment in O&G exploration, development and production activities to rival those in the other corridors.

"Given Petronas' strong profits in recent years, an assumed 10% to 20% re-investment rate of after tax profits would result in an internal financing capacity of RM5bil to RM10bil annually,” he said.

Malaysia 2008 Outlook

Malaysia's economy is 64.5 percent free, according to 2008 assessment, which makes it the world's 51st freest economy. Its overall score is essentially unchanged from last year, reflecting worsened scores in three of the 10 economic freedoms.

Malaysia is ranked 8th freest out of 30 countries in the Asia–Pacific region, and its overall score is higher than the regional average.

Malaysia scores above average in eight of the 10 areas measured and scores highest in government size, freedom from corruption, and labor freedom. The labor sector is highly flexible, with simple employment procedures and no minimum wage.

The top income and corporate tax rates are moderate, and overall tax revenue is relatively low as a percentage of GDP. Inflation is minor, and direct subsidies do not widely distort market prices. The tariff rate is fairly low, and the government has been working to eliminate some non-tariff barriers.

Malaysia suffers from weak investment freedom and financial freedom. Despite efforts to liberalize procedures, impediments include limited voting shares in companies, enforced hiring of ethnic Malays, and case-by-case government pre-investment approval. The financial sector is fairly well developed but subject to government interference and some restrictions on foreign involvement.

Background:
Malaysia is a constitutional monarchy, and politics is dominated by the ruling United Malays National Organization. Prime Minister Abdullah Ahmad Badawi has pledged to achieve developed-nation status by 2020. A leading exporter of electronics and information technology products, Malaysia has industries that range from agricultural goods to automobiles. Government ownership in certain key sectors, such as banking and airlines, remains high. The government recently relaxed capital controls and foreign investment restrictions in a bid to attract foreign capital. It also indicated a willingness to ease politically formidable affirmative action policies that have discouraged foreign investment and economic development.

Business Freedom - 69%
The overall freedom to start, operate, and close a business is somewhat limited by Malaysia's regulatory environment. Starting a business takes an average of 24 days, compared to the world average of 43 days. Obtaining a business licenses takes more than the world average of 19 procedures and 234 days. Bankruptcy proceedings are relatively straightforward.

Trade Freedom - 76.2%
Malaysia's weighted average tariff rate was 4.4 percent in 2005. Liberalization has progressed, but import restrictions, high service market access barriers, high tariffs, import and export taxes, non-automatic import licensing for import-sensitive industries, non-transparent regulations and standards, non-transparent government procurement, export subsidies, and weak protection of intellectual property rights still add to the cost of trade. An additional 15 percentage points is deducted from Malaysia's trade freedom score to account for non-tariff barriers.

Fiscal Freedom - 82.2%
Malaysia has moderate tax rates. The top individual income tax rate is 28 percent, and the corporate tax rate has been reduced to 27 percent in 2007 and 26 percent in 2008. Other taxes include a capital gains tax and a vehicle tax. The real property gains tax has been abolished. In the most recent year, overall tax revenue as a percentage of GDP was 16.3 percent.

Freedom from Government - 80.8%
Total government expenditures, including consumption and transfer payments, are moderate. In the most recent year, government spending equaled 25.3 percent of GDP. The retains considerable industrial and commercial holdings.

Monetary Freedom - 78.6%
Inflation is moderate, averaging 3.3 percent between 2004 and 2006. Relatively unstable prices explain most of the monetary freedom score. Most prices are determined in the market, but the government influences certain prices through state-owned enterprises; controls the prices of petroleum products, steel, cement, wheat flour, sugar, milk, bread, and chicken meat; and usually sets ceiling prices for a list of essential foods during major holidays. An additional 10 percentage points is deducted from Malaysia's monetary freedom score to account for policies that distort domestic prices.

Investment Freedom - 40%
Rules have been eased, but foreign investors still face such restrictions as limited voting shares, prior approval, and mandatory hiring of ethnic Malays. Investment is banned in the news media, lotteries, or security paper. Foreigners may own 100 percent of certain kinds of new companies, but most existing corporate equity requires that a 30 percent stake be Malay-owned, and foreign ownership is capped in most sectors. Certain kinds of investment are screened, though commercial operations can begin before approval. Residents and non-residents may hold foreign exchange accounts, subject in many cases to government approval. Nearly all capital transactions are prohibited, are subject to restrictions, or require government approval.

Financial Freedom - 40%
Nine of the 32 commercial banks as of September 2006 were domestically owned, and 13 were foreign-owned. Ten Islamic banks account for over 10 percent of assets. The government owns a majority of the two largest local commercial banks and is active in creating larger "anchor banks" to compete internationally. Banks must lend to certain groups like low-cost housing projects. There are several offshore banks, insurance companies, and other financial institutions. Non-performing loans remain a problem. The 41 insurance companies are subject to (among other limits) restrictions on expatriate employment and foreign equity. Foreigners may trade in securities and derivatives, but participation in stock brokering and trust management is restricted.

Property Rights - 50%
Private property is protected, but the judiciary is subject to political influence. Corporate lawsuits take over a year to file, and many contracts include a mandatory arbitration clause. The International Intellectual Property Association estimates piracy-related 2004 industry losses in Malaysia at $188 million. The manufacture and sale of counterfeit products and medicines have led to serious losses for producers of consumer products and pharmaceuticals.

Freedom from Corruption - 50%
Corruption is perceived as present. Malaysia ranks 44th out of 163 countries in Transparency International's Corruption Perceptions Index for 2006. Bribery is a criminal act, but perceptions of widespread corruption and "crony capitalism" persist.

Labor Freedom - 78.7%
Relatively flexible employment regulations could be further improved to enhance employment opportunities and productivity growth. The non-salary cost of employing a worker is low, but dismissing a redundant employee can be difficult and costly. There is no national minimum wage, and restrictions on the number of work hours are flexible.

Malaysia
Rank: 51
Regional Rank: 8 of 30

The Government of Malaysia has on the other hand refused to face up to economic realities for political considerations as the next General Elections is expected within the next 3 months. It has earlier been forecast that the Malaysian economy will grow between 6.0 to 6.5% for 2008. However, in the light of the rising oil prices, the global liquidity crisis and consequently the global economic slowdown, the Second Finance Minister has as recent as 19 December continued to insist that the country will be able to meet its growth targets

KUALA LUMPUR, Dec 28 (Bernama) -- The outlook for the Malaysian economy in 2008 is expected to be favourable with growth of between 6.0 and 6.5 percent despite adverse external factors as brisk activities from new growth corridors coupled with belt-tightening measures, high commodity prices, stable interest rates and inflation provide a crucial boost to the economy.

Gross domestic product (GDP) grew by 6.7 percent in the third quarter this year, its highest in three years, after posting 5.8 percent in the second quarter and 5.5 percent in the first quarter. For the whole year of 2007, the rate is expected to be 6.0 percent.

The positive performance in the third quarter was supported by the robust growth of the services sector of 10.5 percent, followed by construction (4.7 percent), manufacturing (3.4 percent), mining (2.3 percent) and agriculture (0.6 percent).

The trade account recorded a surplus of RM28.2 billion in the third quarter from RM22.6 billion previously.

The ringgit was also strong against the US dollar with the exchange rate in the first 11 months of this year more than 6.0 percent higher than the average for 2006 as a whole. This has created, through stable import prices, a stable investment climate for enterprises.

The local unit has year-to-date rose 4.9 percent and almost 12 percent since it was unpegged from the greenback in July 2005.

Prime Minister Datuk Seri Abdullah Ahmad Badawi had said the government was prepared to face any external negative effects generated by the global economic environment.

Abdullah, who is also finance minister, said the current economic situation in the country was improving, backed by ample reserves and strong fundamentals.

He also said Bank Negara Malaysia (BNM) has developed a system that enabled it to gauge "what is happening now and before" and analyse any kind of developments in countries with which Malaysia has strong investment and trade relations, such as the US, Japan, Singapore and Hong Kong.

BNM governor, Tan Sri Dr Zeti Akhtar Aziz, had said the country's growth momentum was expected to be sustained in the near term.

However, she said, there were greater uncertainties in the medium term such as a pronounced slowdown in the US economy which would make the global financial market volatile and the continued high energy prices.

"Overall, potential exists for the domestic economy to record steady growth. Malaysia's track record showed that each time it faces a challenging time, the country has the capacity and flexibility to respond and produce the desired outcome," she said.

Total investment will grow by 8.4 percent, accelerating slightly from the 2006 rate of 7.9 percent.

Meanwhile, Hong Kong-based Economist Intelligent Unit said Malaysian domestic demand would pick up to ensure that growth remained robust with private consumption to make the largest contribution to GDP this year followed by private investment.

Private consumption is set to grow by 7.3 percent this year, slightly higher than 2006's 7.1 percent while government consumption is expected to grow by 10.8 percent, a rate approximately twice the 5.0 percent posted in 2006.

Private investment is predicted to increase by 7.5 percent this year from 7.0 percent last year while public investment is expected to increase by 9.3 percent from 8.9 percent.

EIU's director of corporate network, Justin Wood, said the domestic demand would be contributed by government spending, particularly due to civil service pay increase while the private sector would invest in plants and machinery.

Demand from the public sector would be driven by infrastructure projects such as the Iskandar Development Region (IDR).

IDR, in southern Johor, is one of the three growth corridors outlined in the Ninth Malaysia Plan, the government's RM200 billion development blueprint which will run through 2010.

The IDR is the first regional development strategy that was launched by the prime minister in November last year to boost the domestic economy, to sustain growth and to shield it from any external shocks.

The other two corridors are the Northern Corridor Economic Region and the East Coast Economic Region which were launched in July and October 2007 respectively.

Meanwhile, in the event of the surge in global crude oil prices, Dr Yeah Kim Leng, group chief economist of RAM Holdings Bhd, said the economy would be spared the direct impact due to massive government subsidies, but cautions that there could be a need for belt-tighthening measures.

Crude oil prices currently hover around US$93 (US$1=RM3.33) per barrel.

While the government should continue to provide subsidies, Yeah nevertheless said that "it may not be sufficient for the government to increase subsidies further as it could exert pressure on the country's financial state."

Subsidies cost the government RM4.788 billion last year and are expected to increase up to RM8.959 billion this year.

The government has promised that the low-income group would not be affected if the petrol and gas prices were reviewed.

Second Finance Minister, Tan Sri Nor Mohamed Yakcop, had said the rising oil prices would help and hurt the economy.

"As a net exporter of crude oil, the country stands to gain RM250 million for every US$1 rise in prices. However, at the same time, the government will have to pay higher subsidies for retail fuel. "But the net effect is positive," he said.

Higher oil prices could translate into higher inflation but the country is confident of maintaining it at between 2.0 and 2.5 percent this year.

The consumer price index (CPI), the indicator for inflation, has increased 2.3 percent year-on-year in November, the highest in nine months.

THIS year, we believe the Malaysian economy will remain strong on the back of the expected significant investment growth and large government projects lined up to boost infrastructure spending within the three economic corridors of development. The country's growth is expected to remain robust between a moderate range of 6.0% to 6.5% in 2008. The Overnight Policy Rate (OPR) is expected to finish the year up 20 to 25 bps to between 3.7% and 3.75% barring any slowdown in growth; while the inflation is expected to rise to a range of 2.5%-3.0%. We also think that the Fed may cut the funds rate by a further 25 bps this year to 4% to avoid a recession.

On the fixed-income segment, we expect the Government’s financing need to add up to about RM44.3bil; hence we believe the Government will issue a minimum of RM45bil worth of government securities (both MGS and GII) in 2008. Meanwhile, the MGS curve is expected to get steeper in 2008 as yields in the longer tenured papers continue to rise. We expect the market to trade the bonds cautiously with bearish bias in response to the inflationary pressures and the unsettled credit issues in the US.

Elsewhere, issuance in the private debt securities (PDS) market is also expected to grow next year in facilitating bigger new corporate structures in the local market and the Private Funding Initiative (PFI). In the near term, continued speculation on further strengthening of the MYR currency leads us to expect a continual foreign interest in the local bond market.

Global Outlook (US)

The first half of 2008 is expected to remain murky, until the actual depth of losses and the full impact of the credit crunch is realised although we expect further knock-on contagion effects to materialise no less from further mortgage resets and rising credit card defaults.

The focus of the second half will be on more control and fixing of the damage in the housing and credit market and limiting the effects of the same. Rising concerns over surging oil prices and the possibility of further deterioration of the US housing slump spreading to the wider economy and affecting consumer spending and business investment contributes further to a possible recession in the US.

The credit crunch did not hit only the mortgage industry but has also led many banks and financial institutions to tighten their lending requirements besides reducing their lending ability as losses hit their balance sheets. This has resulted in heightened risk aversions among investors and widening of interest rate spreads in both short and long-term rates; despite several cuts in the Fed fund rates.

Thus far, the forecast losses arising from the US subprime-related losses total about US$300bil and many financial institutions have warned that there will be more to come next year. However, the Fed was prompt in acknowledging the issues and reacted to it by lowering the Fed funds rate by 50 bps in September, 25 bps in October and another 25 bps during the recent FOMC meeting in December; leaving the rate to stand at 4.25% now.

The Fed has also been gradually injecting liquidity into the money market to contain the financial market turmoil and to avoid the economy from being thrown into an irrecoverable tailspin. In addition, the US Fed also agreed to freeze interest rates on subprime mortgages for the next five years although the effectiveness of this remains uncertain.

The Fed also decided to add liquidity to money markets in collaboration with some of the main central banks in the world such as the BOC, ECB, BOE and SNB with the objective of alleviating the credit crunch although whether this would help alleviate the underlying weakness in the economy remains questionable.

High crude oil prices will continue to threaten the economy next year, carrying forward the spillover effect from 2007. A weaker US currency coupled with market speculation resulted in crude oil rising to an all-time high of US$99.25 per barrel. The current situation however is one that is demand-led and the surge in oil prices is likely to reverse in the event of a slowdown in the global economy.

This situation is underlined by OPEC’s decision to maintain the crude oil production at 31.5 million barrel per day until early 2008 sufficient to meet the expected demand. This has calmed the raging seas not only in US but across the globe as well. However, the impact of market speculation on oil prices and as a hedge to a weaker USD cannot be underestimated.

As the economy continues to be burdened by the dollar depreciation, high oil prices and inflationary pressures, we believe that the Fed will not be complacent at the current funds rate and there may be more rate cuts next year. In the latest FOMC meeting in December, the Fed dropped the language from its previous statement that risks of slower growth and faster inflation were “roughly balanced”; adding that they are ready for further cuts if the housing slump and the credit crunch continue to deteriorate. Given the current release of weaker data and the strong hint by the Fed, we opine that there might be another rate cut in the first half of 2008 which will bring the Fed Funds Rate to 4.00%. However, the next course of action will be very much dependent on the economic data.

As such, we think the US Treasury yield curve will steepen further during the first half. In addition, the 10-2 year US Treasury benchmark spreads has been gradually widening, as the Fed continues its easing policies.

Asian Market

Despite increased risks following the financial turbulence/credit fears in the US economy coupled with surging oil prices, the global economy remains sustained by the continued strength in the emerging economies in the Asian region. Whether these Asian economies can fully support a prolonged and sustained weakness in developed markets' economies will depend on the rate of growth of internal consumption and spending.

Spreads between Asian high-grade bonds and US high-grade bonds had widened tremendously ever since the US market downturn and this trend is expected to prevail through the first half of 2008; as investors patiently anticipates for further signal on the development in the US market.

The outlook of Asian credit remains vague in 2008 following one of the most challenging years experienced by investors in this decade. Given the slowdown in the US economy (with more possible rate cuts in 2008), it should be a stepping stone for Asia to grow moderately while foreign investors continue to invest in Asia due to interest in the widened spreads.

As such, our recommendation for 2008 remains to be defensive, at least until the ongoing impact of the liquidity crunch becomes more visible.