The Second Malaysian Stimulus Package - What Does it Hold for the Energy & Power
Sector in Malaysia?
SINGAPORE, Mar. 23 /PRNewswire-AsiaNet/ --
The Malaysian government announced a huge stimulus package on March 10,
2009. The first package announced in November 2008 was generally considered
to be too timid and too little. The second package is to be implemented over
two years and commits RM 60 billion (US$16.2 billion) to stimulating the
economy. What opportunities can the energy & power industry expect from this
package?
According to Frost & Sullivan Asia Pacific Associate Director of Energy &
Power Systems Practice Subramanya Bettadapura, there will be a thrust on
development of Eastern Malaysian States, especially through the Kota Kinabalu
transmission system project.
"The electricity demand in the Sabah and Sarawak region is projected to
grow at 7.7 percent per annum up to the year 2010. Various power generation,
transmission and distribution projects will have to be implemented in order
to support the growing demand in the two Eastern Malaysian states," he says.
Subramanya adds that the 9th Malaysia plan had identified quite a number
of electricity supply infrastructure projects to be implemented in Sabah. Key
among them was the 132kV Transmission Line System Environmentally-Friendly
Project; the Delivery System Upgrading Projects in Kota Kinabalu, Sandakan
and Tawau; the Delivery System Reinforcement Project throughout Sabah and WP
Labuan; the Kota Kinabalu Delivery System Reinforcement Project; and the KK
Outer Ring 132kV Project.
"Most of these projects are to be completed in 2009. The stimulus package
covers the Kota Kinabalu transmission system project. This project will
strengthen the grid and existing distribution infrastructure," he continues.
There are many upcoming opportunities in Sabah and Sarawak for
stakeholders in the energy and power industry that are worth considering such
as the impetus for Green Technology through energy efficiency projects,
conversion of waste to energy, biomass & biogas, and solar.
According to Subramanya, the government will provide loan guarantees up
to 80 percent to qualifying companies for implementing environmentally
friendly productivity enhancing projects.
"This is the time for getting the innovative green projects from the
drawing board to the implementation stage. Energy efficiency projects in
industries can obtain funding under this package. Going green makes perfect
business sense. Opportunities in this area are plenty and it would be
worthwhile for senior managers to evaluate the green technology opportunities
available in the respective sectors and for their organizations," he adds.
The opening up of the Services Sector is another broad opportunity for
suppliers and service providers in the energy and power sector. "The
government has identified the services sector as an important growth area and
is taking necessary steps to further liberalise this sector. The process is
in line with Malaysia's commitment under the ASEAN framework agreement on
services and WTO," says Subramanya.
"Liberalisation gives opportunities to bring in investment to this high
growth sector. Liberalisation also eases the entry of newer technology and
qualified professionals into the country. This provides opportunities to
service providers to the energy and power industry to strengthen their
professional team and technology. Consultancy services would stand to benefit
immensely from this development," he adds.
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MEDIA CONTACT:
Donna Jeremiah
Corporate Communications - Asia Pacific
P: +603 6204 5832
F: +603 6201 7402
E: djeremiah@frost.com
Carrie Low
Corporate Communications - Asia Pacific
P: +603 6204 5910
E: carrie.low@frost.com
SOURCE Frost & Sullivan
CONTACT: Donna Jeremiah, +603 6204 5832, fax, +603 6201 7402,
djeremiah@frost.com, or Carrie Low, +603 6204 5910, carrie.low@frost.com,
both of Frost & Sullivan, Corporate Communications - Asia Pacific
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