Iskandar Malaysia project to go ahead as planned
Channel NewsAsia - Saturday, June 7

 

 

SINGAPORE: The Iskandar Malaysia project will go ahead as planned, Malaysia’s High Commissioner to Singapore N Parameswaran said on Thursday.

Malaysian Prime Minister Abdullah Badawi’s poor showing in the recent general elections has left investors concerned about his pet project — Iskandar Malaysia, which was launched in late 2006.

However, the High Commissioner noted that the project — a special economic zone three times the size of Singapore — will have the support of any political party that comes into power.

"There should not be any concern that any changes (that) take place in Malaysia... will... affect the on—going developments in Iskandar," he said.

About 530 square metres of the Southern Industrial and Logistics Clusters (SiLC) at Iskandar Malaysia have been launched. According to developer UEM Land, more than 95 per cent were taken up by Singapore—based companies.

Managing director of UEM Land, Wan Abdullah Wan Ibrahim, said: "The opportunity is the price, the price is extremely low."

Phase one of SiLC was completed in April 2008.

Since its launch in 2006, Iskandar Malaysia has attracted some 33 billion ringgit worth of investment. — CNA

Malaysia Approves MYR22.6 Billion Manufacturing Investments In 1Q
By Benjamin Low,  Dow Jones
June 05, 2008


KUALA LUMPUR -(Dow Jones)- Malaysia approved MYR22.6 billion ($6.94 billion) of investments in 192 manufacturing projects in the first quarter, the Ministry of International Trade and Industry said Friday.

In its quarterly report, the ministry said foreign investors accounted for MYR15.9 billion, or 70%, of total investments, with domestic sources making up the rest.

It said MYR15.8 billion of total investments were in new projects while the remaining MYR6.8 billion were for expansion or diversification.

The ministry didn't provide comparative numbers for the first quarter of 2007, but said it approved 949 projects worth MYR59.9 billion for all of last year.

It said the basic metal products industry received the largest amount of investments, accounting for MYR16.6 billion, or 74%, of the total investments in the first quarter.

- Dow Jones Newswires

Malaysia and India Increase Price of Subsidized Fuel
By PETER GELLING
June 5, 2008


India and Malaysia risked the wrath of voters by raising the price of subsidized fuel, measures that could further weaken the governments of both countries, already made fragile by recent electoral setbacks.

In India, the increase was quickly condemned by political parties from all sides, two of which promised demonstrations. A Bharatiya Janata Party spokesman called the move the equivalent of “economic terrorism.???

Economists and policy makers described the increase as painful but necessary. Fuel subsidies in Malaysia alone would have totaled $17 billion this year.

Consumers in Malaysia, like the woman above, will see gasoline prices go up by 40 percent, and more increases are planned, said Shahrir Abdul Samad, Malaysia’s domestic trade and consumer affairs minister. Gas prices vary across India, but the announcement amounted to an increase of around 10 percent.

By MarketWatch
Last update: 10:33 p.m. EDT June 4, 2008

 

HONG KONG (MarketWatch) -- Governments in India and Malaysia have boosted motor-fuel prices in an effort to ease the burden of fuel subsidies on national finances.

 

India increased prices of gasoline and diesel by about 10% Wednesday, the second such move this year, while Malaysia increased gasoline prices by 41% and said there would be increases for diesel and electricity.

 

Officials in Kuala Lumpur said their move was part of a plan to use global market rates for pricing fuel to contain a subsidy burden on the nation's budget. Malaysia said its fuel subsidies will cost 56 billion ringgit ($17.2 billion) this year based on current crude-oil prices.

 

The moves follow similar revamps of the energy price systems in Indonesia last month, which raised prices by 29% and Sri Lanka, which boosted prices by 14% to 47%.

 

The decision by India's ruling coalition government comes as inflation is soaring. Official data released Friday showed that India's inflation, as measured by the wholesale price index, jumped 8.1% in the week ended May 17 from the year-ago period.

The Bombay Stock Exchange's 30-constituent Sensitive Index, or Sensex, ended sharply lower Wednesday, tumbling 2.8% to 15.514,79, its lowest close since April 4.

 

Malaysia's KLSE Composite Index was down 2.2% in early trading Thursday, extending a 0.4% slide in the previous session.

 

The latest price increases are expected to ease losses at India's state-controlled oil-refining and marketing firms like Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp, which have been selling petroleum products at below cost as the government tried to control inflation. The Financial Times reported India's fuel subsidy burden is expected to rise to $57.8 billion this year, accounting for more than 3% of gross domestic product.

 

Indian refiners lifted prices of gasoline by five rupees ($0.12) a liter, diesel prices by three rupees a liter and cooking gas prices by 50 rupees a cylinder of 14.2 kilograms, effective from midnight Wednesday. Separately, the government cut duties on crude-oil imports and lowered the excise duty on gasoline and diesel.