Putrajaya, 11 January 2011 – The Prime Minister of Malaysia today announced 19 Entry Point Projects and developments, following 18 others that have been announced since the launch of the Economic Transformation Programme.
“The Economic Transformation Programme has started the year with a bang by switching into overdrive and surging ahead with more Entry Point Projects and developments, as we approach the 100-day mark since we launch the programme. This time around, the 19 Entry Point Projects and developments will come from 10 National Key Economic Areas. Combined, they will contribute almost RM67 billion in investment, RM36 billion in gross national income and 35,000 new jobs,” said Dato’ Sri Najib Tun Razak.
Leading the announcement are four Entry Point Projects and developments under the Oil, Gas & Energy National Key Economic Area.
Following through from the announcement of new tax incentives under the Petroleum Income Tax Act (PITA) in November 2010, ExxonMobil Exploration and Production Malaysia Inc., in conjunction with its production sharing contract partner, Petronas Carigali Sdn Bhd, plans to invest over RM10 billion in new oil and gas assets to help ensure reliable and sustainable energy supplies for Malaysia.
“This capital expenditure commitment will be utilised to rejuvenate mature facilities and undertake enhanced oil recovery activities in the Tapis field and the Telok gas development project. Located offshore Peninsular Malaysia, the Telok project is being developed under a gas production sharing contract to provide additional supplies for Malaysia’s power and industrial needs and will promote organic growth of the natural gas sector,” said Najib.
Shell Malaysia will be investing RM5.1 billion on upgrading and expanding existing facilities, and building new facilities in upstream, midstream and downstream activities across Malaysia. This includes the expansion of the Shell MDS wax plant in Bintulu, a new biodiesel processing unit at the Shell Refinery in Port Dickson and the Gumusut deepwater development offshore Sabah.
Dialog Group Berhad, along with the State Government of Johor and Vopak, will be developing a RM5 billion independent deepwater petroleum terminal project at Pengerang, Johor. The hub will have a total petroleum storage capacity of five million cubic metres, and is expected to generate RM1.6 billion in gross national income by 2020.
“This project will catapult Malaysia into the ranks of a regional oil storage hub. I expect significant multiplier effects from the Pengerang project to cascade to the entire economy,” he added.
Rounding up the investments in energy is the establishment of Malaysia Nuclear Power Corporation Energy to study the possibility of deploying nuclear energy to meet future demand and diversify the energy mix for Peninsular Malaysia.
“I am pleased to announce the formation of the Malaysia Nuclear Power Corporation as well as Dr Mohd Zamzam bin Jaafar as its Chief Executive Officer. Dr Mohd Zamzam will lead the planning based on the current development timeline of 11 to 12 years, from pre-project to commissioning,” said Najib.
The aspiration to establish Malaysia as a world-class data centre hub under the Business Services National Key Economic Area received a major boost with MyTelehaus, CSF Group and Teliti Data investing over RM671 million collectively to develop new and upgrade existing facilities to supply 475,000 square feet of data centre floor space to cater to the increased demand.
In the healthcare sector, UM Holdings Sdn Bhd, a corporation wholly-owned by Universiti Malaya, will establish the Universiti Malaya Healthcare Metropolis in Petaling Jaya, Selangor. With an investment of RM1.25 billion, the two-million square feet purpose-built facility to be developed in collaboration with 32 healthcare, academic and technology partners, integrates healthcare, bio-research and post-graduate education.
“The project aims to elevate the standards and quality in these areas to be among the best in the world. It is benchmarked against Harvard’s Longwood Medical Centre and Stanford’s Bio-X Centre, two of the global best-in-class examples,” added the Prime Minister.
In addition, Hovid Berhad, a home-grown pharmaceutical company, has entered into a joint venture with Winthrop Pharmaceuticals, a subsidiary of Sanofi-Aventis, a global pharmaceutical company to manufacture and supply generic drugs for diabetes and pain management worth RM50 million over the next five years. This generics export initiative is the first step for Malaysia to tap the global market worth RM435 billion over the next 10 years, catalysed by the patent expiration of major blockbuster drugs.
The tourism sector will see two new hospitality developments. RM1billion will be invested by Teluk Datai Resort Sdn Bhd and its partners to expand and upgrade existing facilities and construct new hotels in Pulau Langkawi, while the YTL Group is investing RM75 million to develop a deluxe family resort in Pulau Gaya, off the coast of Kota Kinabalu.
The AUO SunPower solar cell fabrication facility in Melaka, a joint venture between SunPower Corporation of the USA and AU Optronics Corporation of Taiwan, opened by the Prime Minister recently, is scheduled to be fully operational in 2013. The RM2.2 billion facility is expected to produce high-efficiency solar cells that generate more than 1,400 megawatts annually.
In the agriculture sector, Terengganu State Development has received approval to develop a High-Value Herbal Plantation in Pasir Raja, to cultivate herbs that are in high demand. This project is a crucial step to ensure the availability of a ready source of raw material as Malaysia moves up the value chain to become a leader in the production of nutraceuticals and botanical drugs. It will contribute about RM2.2 billion in gross national income by 2020.
In Communications Content and Infrastructure, SelecTV is set to invest RM30 million to create an internet protocol TV (IPTV) platform, to distribute Malaysian content to about 20,000 hotel rooms in Malaysia, Thailand, Indonesia and the Middle East. This project will see a gross national income of RM90 million by 2020.
The wholesale and retail sector will see the MINES Resort City transformed into MINES Wellness City, an integrated health and wellness Resort. With an investment of approximately RM3 billion by 2020, this project will contribute about RM5 billion in gross national income over the next 10 years.
To achieve the target of a 40% skilled workforce by 2020, Jabatan Pembangunan Kemahiran will launch Skills Malaysia 2011, an initiative to raise awareness and showcase the vocational opportunities for students who have completed their SPM and upgrades for unskilled workers. This initiative is a component of the larger Entry Point Project on private skill training provision that is expected to generate RM2.1 billion in gross national income in 2020 and creating 12,400 jobs in the process.
Key to the success of the Greater Kuala Lumpur/Klang Valley NKEA is the Mass Rapid Transit (MRT) and Talent Corporation Entry Point Projects. MRT will increase connectivity within the area which is critical for urban growth and improved productivity. The project will employ about 130,000 people at its peak construction phase, with a significant multiplier impact on associated industries. The investment of RM36.6 billion will see an incremental gross national income contribution of RM21.3 billion in 2020.
Meanwhile, Talent Corporation, a new government agency under the stewardship of Johan Mahmood Merican as the Chief Executive Officer, is tasked to strategise and implement initiatives to engage and attract the best talents required to fill the 3.3 million positions that will be created by the various National Key Economic Areas.
Guocoland Berhad will invest RM1.9 billion in an integrated development called DAMANSARA CITY 2 located in Pusat Bandar Damansara. Comprising two office blocks of 560,000 and 285,000 square feet each, 290,000 square feet in retail space as well as a 300-room hotel and a 260-unit serviced apartment block, this project is expected to be launched this year.
“By kick-starting these projects as well as the earlier announced projects, the economic effects will soon be tangible. We are completely focused on results and by delivering them, I hope to galvanise the majority of Malaysians who are believers and also convert the minority naysayers to join this cause. After all, this is a national transformation agenda and we must get everyone on board, in the true spirit of 1Malaysia, People First, Performance Now,” said Najib.