Oil refinery projects: Up to firms to sort out delays

Malaysiakini Aidila Razak 4:42PM May 29, 2012

It is up to the companies involved in the six stalled oil refinery projects nationwide to sort out the issues delaying the projects, International Trade and Industry Minister Mustapa Mohamed said today.

"It is up to the companies to solve the problems. (The ministry) has approved their licences and we can allow extensions, but it is incumbent on the companies (to sort out the issues)," Mustapa said.

The six stalled projects, he said, faced issues of land acquisition, environment and failure by the project owners to raise enough funds for their investments.

"There is also the Pengerang oil refinery project now, so the scenario has become more competitive," he said of the new and controversial project in Johor.

Mustapa was responding to a question on why the RM36 billion crude oil refinery project, Sungai Limau Hydrocarbon Hub (Sulihh) in Yan, Kedah, has been delayed for about three years now.

The project came under the spotlight recently after Kedah Gerakan claimed that it was "awarded" by the Pakatan Rakyat state government without an open tender called.

However, the Kedah BN government had in 2007 announced that the project, formerly known as the Yan Petroleum Industrial Zone (Zipy), was awarded to Merapoh Resources Corp Sdn Bhd.

Deputy Minister of International Trade and Industry Mukhriz Mahathir blamed the delay of the project on the incompetence of the Kedah government.

Kedah Menteri Besar Azizan Abdul Razak said Merapoh Resources Corp is currently in the midst of sorting out its technical and funding issues.

Liberalising services sector further

Meanwhile, Mustapa said that the government may be looking at further liberalising the services industry, pending a survey by the World Bank that is expected to be completed in four months.

"We are keeping an open mind about it," he said.

However, any further liberalisation would take into consideration the situation of the domestic service providers and close engagement with them would be carried out.

"We don't want any adverse impact on the domestic service providers," he said.

The government has so far liberalised nine service industry sub-sectors and is in the process of liberalising another eight sub-sectors, including dental and engineering services.

The liberalising of the eight sub-sectors, Mustapa added, was progressing and this also involved changes to various laws, which would all be done by December.

Mustapa also announced the appointment of former National Economic Advisory Committee chaiperson Amrisham Abdul Aziz (right) as Malaysian Investment Development Authority (Mida) chairperson.

He takes over from Sulaiman Mahbob, whose term ended yesterday.

"(Amirsham)'s experience and global connections will be an asset to Mida," he said.

Amirsham was part of the team that drew up the New Economic Model (NEM).

He was also presidnet and CEO of Maybank Bhd for 14 years before holding the post of Minister in the Prime Minister's Department from June 2008 to April 2009.