500 km MRT for Iskandar Malaysia

Iskandar Region Development Authority (IRDA) was reported to proposed a 500km Mass Rapid Transit in Iskandar Malaysia, Southern Johore. The project, if it was approved by the Malaysian cabinet would likely to be build in 6 phases, with the first phases to be operational by 2020.

The project might be the one that is proposed by the joint-venture company between Malaysia Steel Works (KL) Bhd and KUB Malaysia Bhd. The joint-venture company, Metropolitan Commuter Network Sdn Bhd, is reported proposing for a world-class commuter rail network, which will utilize the existing Keretapi Tanah Melayu Bhd (KTMB) lines in southern Johore area as well as its reserve lands.

The Malaysian government had given the go ahead for a MRT line in the Klang Valley region, which is likely to start in July this year. The Sungai Buloh - Kajang line, which is about 51 kilometres length, and would likely to cost at least RM20 billion for the first line. The entire MRT ecosystem in KL was slated for a price tag at least RM50 billion for a comprehensive MRT lines of 150 kilometres.

Even though the land price in Southern Johore (not including Johor Bahru city area) is much lower than that in the Klang Valley, it is safe to say that the 500 km MRT projects would costs at least a whopping RM100 billion to say the least, considering that less land acquisitions to be made compared with the KL MRT projects, and that the project manager will utilize the existing KTMB's lines and land reserves.

The project might be a catalyst for more liberalization of the construction and infrastructure sector in Malaysia, as it was reported earlier that Singapore would help the Iskandar Malaysia to put in place MRT lines in the economic zone. This is due to the KTMB relinquishing its lands in Singapore (the relocation of KTM stations in Tanjung Pagar and Woodlands in Singapore) to the government of Singapore.

More details of the project and studies should be made in order for Iskandar Malaysia to have an orderly systematical mass public transportation system, which would attract more people to reside there and fully optimize its potential to become a vibrant metropolis.

Enhancing Malaysia's Capital Market

Malaysia's capital market is forecast to reach RM5.8 trillion in market capitalisation by 2020, said Prime Minister Datuk Seri Najib Tun Razak. As at 2010, the capital market is worth more than RM2 trillion, with the bond market at the third largest in Asia compared to GDP ratio, and is a global leader in Islamic financial market.

It is not impossible for Malaysia to reach such a level, and in fact it is seen as something highly likely given that the nation managed to attract more foreign funds investing in the market and also encourage better earnings amongst Malaysia-listed companies. As the economic growth is forecast to be sustainable at 6% for the next decade, it is very much a matter of when, not if, for the Malaysian capital market to reach such a scale in 10 years time.

Nevertheless, the concern is not on Malaysia's performance alone. The FTSE Bursa Malaysia is regarded as an Advance Emerging Market stock exchange. Now this could be a good sign, as the local bourse was regarded as an Advance Market with daily trades exceed that of New York's Stock Exchange in the late 90s, but after the Asian Financial Crisis in 97-98, the exit of foreign funds from the local market has turned it into a lackluster capital market.

The problem with Malaysia as a whole country or economy is that it is neither here nor there. It is yet to be classified as an advance, high-income economy by the OECD, but it is also not really an emerging market with large domestic market and low-cost labour. Countries with a clear definition of where it is today could attract the most investors, as it is easier for investors to determine where to park their money.

Investors invests in Indonesia because of its vast domestic market and low-cost labour and wage structure, Thailand because of its automotive sector which is regarded as the Detroit of Asia, Singapore for its financial services and high-technology investments such as medical equipments and oil refining, and of course China for all the good reasons you could think of ; vast domestic market, relatively low cost-structure, stable political environment, high number of technically skilled workers and so on.

Now, Malaysia has to reinvent itself economically. The nation has to agree to one inspiration, that is to propel its growth into the high-income bracket. It is now among the higher middle-income bracket, on par with Turkey, South Africa, Thailand and Taiwan. It must reinvent its economy so that it could provide a niche for investors to park their money into.

Under the Economic Transformation Program (ETP), the Malaysian government has outlined several initiatives to turn Malaysia into a high-income economy. One of it is the Islamic finance industry and halal industry. Malaysia has all the advantage in the world to become a world leader in the Islamic finance, and it has also one of the most developed Halal industry. So it could capitalize on these sectors two create niche industries which investors could have a more focused investment theme.

Even though Malaysia's Islamic finance industry is one of the most advance in the world, it does not have a mega Islamic bank, one that could rival the likes of JP Morgan, BoA Merryl Lynch, and Royal Bank of Scotland. One suggestion would be to merge locally incorporated and locally owned Islamic banks to become one single entity which could monopolize the industry. For example, CIMB Islamic, Maybank Islamic, Public Amanah, and RHB Islamic, could be merged to become a mega Islamic bank.

The other sector which Malaysia has an advantage is in Palm Oil industry. Malaysia is the second largest palm oil producer in the world after Indonesia, and the palm oil benchmark price is traded in ringgit. It is only natural that Malaysia should assume the position of world leading palm oil refiners and researchers. Palm oil could be used in the production of bio-fuel, and it has many other uses in many industries  such as food processing, chemical industries and many others.

Malaysia also has a viable footprint in the oil and gas industry. Lead by Petronas, Malaysia's oil and gas industry is slated to drive the economic growth by reestablishing the industry's focus from upstream production to downstream research and developments, and oil refining activity. The southern peninsular state of Johore has recently received substantial amounts of investments in this field and is expected to complement Singapore in oil storage and exports facilities.

Singapore to Venture into Nuclear Power

Singapore is studying the possibility for the city-state to utilize nuclear technology for its future power generation.

According to the state's senior minister for trade, industry and education S Iswaran that the government of the city-state has begun preliminary studies on the possibility of the city-state to use nuclear in power generation.

Asian countries has been ambitious in their planning in utilizing nuclear as an energy source, with Indonesia, Vietnam, Thailand and Malaysia has stated their plans to do so in the next decade or so.

However, due to the Japan's earthquake and tsunami which devastated much of the country's north eastern shores last month, which triggered nuclear crisis due to the destruction of the Fukushima Daiichi nuclear power plant in Sendai prefecture, which was caused by the earthquake and tsunami, many Asian countries has put their nuclear ambition on hold.

Risks for earthquake and tsunami is very much high in countries which is situated on the pacific ring of fire, which includes the Phillipines and Indonesia. Indonesia has stated their plans for a nuclear power plant, but stated that they will undertake the highest level of safety precautions if they were to build and commission nuclear power plants for energy generation of the country.

Thailand, though not directly located on the pacific ring of fire, has put their nuclear power plants plans on hold in reaction to the Japan's nuclear crisis in Fukushima. Malaysia has also postponed such plans, as it incurs high capital outlay and there are still more studies should be conducted in the event of nuclear power plant to be commissioned in the country.

Geographically, Singapore is not an earthquake prone island, but its tiny size will make it highly risky for the island-state to commission such a highly dangerous undertakings, even though the Singapore government could boasts of having the best safety precautions for a nuclear power plant to be commissioned there.

Maybe the best option would be for ASEAN member countries to come out with a joint regulation for any member countries to venture into nuclear power plant to comply with ASEAN's best standard of governing and administer the nuclear power plants set to be commissioned here. The ASEAN's best standard should comply with the world's best standard, approved by the International Atomic Energy Agency and the Organisation of Economic Cooperation and Development.

Penang Needs a City Rail Transportation System

In the hype of the planned MRT system in Klang Valley, the government should not forget that other cities in Malaysia are also in need of a multi-modal transportation system.

Although it is undeniable that the Klang Valley region, with an estimated population of 7 million people should be more prioritized for a world class transportation system, secondary cities such as Penang and Johor Bahru also must not be forgotten.

Penang, for example is in need for a city rail transportation system. Whilst it is already planned for a monorail system to be implemented in Penang under the Ninth Malaysia Plan, it is without any reliable and relevant reason why should the high impact project be scrapped.

As an island, Penang has no other choice but to plan further up ahead for a better traffic management, if it doesn't want to turn out like the Klang Valley with its notorious traffic congestion. The situation is worst in Penang as it was an island, and the only way out of any traffic congestion off the island is via the Penang bridge, which is known to be pretty badly congested during peak hours!

Hence, a rail system connecting Balik Pulau and Bayan Lepas is very much due. And it won't be enough to just built a monorail line, as it will only cater for a small ridership. The state and Federal government should plan for a Light Rail Transit (LRT) system on the island.

An LRT system should be able to cater to a wider passenger base. With a comprehensive LRT system on the island, the government "may" discourage the use of private vehicles on the island by imposing higher toll rates on Penang bridge and the Second bridge. With higher toll rates, people from the mainland might want to use the ferry service in Butterworth, hence reviving the lack-lustre service.

For people to utilizes the ferry system, the Penang Sentral in Butterworth should be expanded and be linked to the jetty. This is so that vehicles could be parked at Penang Sentral for a relevant fee and then just use the ferry to get into Penang island. Maybe the government could put in place regulation that only allows Penang island registered vehicles to enter and leave the island via the Penang bridge at a lower toll rates.

Penang is set to become the next global city in Malaysia after Kuala Lumpur. Penang already has all it takes to compete with any other Asian cities, including Singapore and Hong Kong in terms of economic and tourism activity. The only major hindrance is the lack of infrastructure in Penang as compared to the other major Asian cities. With the LRT system on Penang island, many economic values could be unlocked.

The Federal government should not neglect Penang as the Pearl of the Orient is the key for a better, forward and progressive Malaysia.

Sarawak State General Election - A Wind of Change?

The current Sarawak state government mandate will expire this July, and many has been predicting that the current Chief Minister from Parti Pesaka Bumiputera Bersatu (PBB), Tan Sri Abdul Taib Mahmud will desolve the state council latest by end of this month.

This is due to the Malaysian constitution, that an election should be called within the period of 60 days after the dissolution of the State council or Parliament. With the expiry date coming closer by the day, the speculation that Taib Mahmud would call for a state election is rife.

The state election would become as an acid test for the ruling coalition, as the benchmark of their performance and popularity among the rakyat, before the Parliament is dissolved and a nationwide General Election would be called.

Analyzing the mood of the Sarawakian on grass roots level recently, the ruling coalition still holds favorable position among the Bumiputera strong bed. Judging from past results, and the fact that literacy rate and internet and communication infrastructure is very much lagging in Sarawak's mountainous landscape compared to the Peninsular Malaysia, it is safe to assume that the rural Sarawakian is still "detached" to the political scene at large in West Malaysia.

However, the state's opposition coalition, lead by Peninsular-based Democratic Action Party (DAP), the oppositions are making in roads into the larger urban areas in Sarawak, especially in cities like Kuching and Miri, and also larger towns with significant Chinese voters such as Sibu and Bintulu.

The ruling coalition has kick-started the election fever with ceramahs and public celebration with goodies and allocations given out to schools and the local community. These are further signs that the state election is just around the corner.

On the questions whether the Federal government would dissolve the Parliament to hold a simultaneous General Election together with the Sarawak State Election, it is very unlikely. According to a very reliable source, the Federal government would want to see the implementation of various economic projects and investments announced earlier to gain support from the rakyat, as it will be a prove that the government's economic policy is favorable to investors, and that the government is able to bring development to the rakyat.

Among the big ticket projects announced for implementation this year is the Klang Valley MRT project and the Sungei Besi Airport development project.

Malaysians Fate in Egypt still Unknown

Due to the recent Egyptian revolution, Malaysians in Egypt are still unknown for their fate.
Most of them are students, studying in selected Egyptian universities, mainly the Al Azhar University, University of Cairo and Mansoura University.There are some business community also especially in cities like Cairo and Suez.
Most countries have started evacuating their citizens out of Egypt, by air, sea or land.  The British government is reported to sent chartered aircraft to bring their citizens out of Egypt for fear of their safety. Other countries has also started evacuating their citizens, and mostly they will be brought to neighboring countries first, such as Saudi Arabia or Jordan.
According to the latest report on The Star (Malaysian newspaper), the Malaysian government has issued a directive to bring Malaysian students by air or sea out of Egypt. They will eventually be placed at the Tabung Haji (Malaysian pilgrimage fund) center in Jeddah until the situation calms down.
So far, more than 11,000 of Malaysian students has registered with the Malaysian embassy in Cairo.

Dr Mahathir hits out Singapore

Malaysia does not sabotage Singapore by developing its own ports, said Dr Mahathir Mohamad. In his letter to Utusan Malaysia today, the former Prime Minister of Malaysia said that it is not wrong for an independent country like Malaysia and Indonesia to develop their own ports.

According to him, what Malaysia and Indonesia did was not an act of sabotaging the Singapore port, but as a competition to the latter.

Singapore's Port operation is said to be affected by the growing and fast developing ports on southern Johore, such as the Port of Tanjung Pelepas (PTP) and the Johor Port at Pasir Gudang.

PTP for instance, set the world record as the fastest growing port with 1 million twenty foot equivalent unit (TEU) in just 571 days of operation in 2000. This is due to its strategic location which is on the busy sea lanes of which the Port of Singapore derived its growth.

Previously, there was also call from MMC Corp, a power-to-ports conglomerate which owns both ports (Pasir Gudang and Tanjung Pelepas) to the government for a consolidation between the operation of both ports. According to persons who are informed with the proposal, the consolidated operation between both ports could pose a greater competition to Port of Singapore in the medium to long term.

PTP and Johore Port could become the alternative choice to Port of Singapore based on their competitive rates and efficient container handling and throughput. This is reaffirmed by the growing sea liners which opted to dock at PTP such as MAERSK, Evergreen and CMA-CGM, which are three of the world largest sea liners.

The government should play more roles in promoting PTP and Johore Port as the choice ports in South East Asia. More investments should be injected into expanding the ports berthing facility and also for increasing the connectivity between the ports to the rest of Asia.

With the area of southern Johore being gazetted as the next growth region for the country through the implementation of the Iskandar Development Region (IDR), there are much more potential for both ports to expand and increased in prominence as the next international port destination in Asia. 

Would the Uprising Movement of Tunisia and Egypt reach our shores?

The recent series of protest happening in Tunisia and Egypt is not likely to happen in Malaysia, says government officials. This is because of the stark difference between the situation in the North African countries with Malaysia.

Economically, Malaysia enjoys relatively full employment with only 3% of the workforce is unemployed. The standard of living is much better than other developing countries, or even on par with some developed countries. And the political freedom is very much upheld here, even though there are some draconian laws which restricts the freedom of the people for the reason of security, such as the Printing Presses and Publications Act, Sedition Act and the Internal Securities Act.

Nevertheless, these are the situations at the macro level, whereas what happens on the ground could be much, much different from what is provided by official data.

For instance, the people are feeling the pinch of the rising inflation driven by the ever increasing oil prices, and that even though the Ringgit is strengthening against the greenback, Malaysians are having lesser items that could be bought using the local currency.

Ironically, the situation in Sarawak, East Malaysia could be said as "comparable" of that in Egypt and Tunisia. It has a long service leader of over 30 years, a state with ample resources and yet the people is relatively poor compared to the rest of the country and the leader's family very much own the largest corporations there. Corruption and nepotism is the game of the day.

Some might argue that the situation in Sarawak is not as dire as in Egypt or Tunisia, but if it is left unchecked, the small tumor will eventually grow bigger and consumes the entire state. And if the Federal Government turns a blind eye on the Sarawak, it might become just like Acheh in Indonesia, Narathiwat in Thailand and Mindanao in the Phillipines.

The government of each level, state and Federal, should listen carefully to the grouses and pleas of the people on the ground if they do not want another Tunisia or Egypt happening in Malaysia.