Friday, December 24, 2010

Water and electricity for all in 2 years: DPM

STAR, 23 December 2010

LIMBANG: The Federal Government has set itself a target of two years to resolve the electricity and water supply problems facing the people.

Deputy Chief Minister Tan Sri Muhyiddin Yassin said these two basic amenities must be supplied to all Malaysians regardless of where they were living.

“The extension of electricity and water supply has been included in the National Key Result Areas (NKRAs) and we have set a target of two years to provide the people with these amenities,” he said when addressing people from all races during a dinner here on Wednesday night.

Confident of achieving the target, he said the Government had already set things rolling.
“We are no longer talking about plans. We are not at the planning stage any more. We are already implementing programmes on the ground to get these accomplished.

“Provision of these basic amenities to all people, especially outside the cities and towns, is vital. It is as important as the construction of road-links for all rural regions, which is also under the NKRAs,’’ he added.
On Opposition propaganda, Muhyiddin urged the people not to believe their accusations that the Federal Government had given too much attention to only certain places, like Kuala Lumpur.

While he acknowledged that the Government had to spend huge sums to tackle public problems in huge cities like Kuala Lumpur, it had not neglected the rural people.

“In Kuala Lumpur, we have to spend billions to build facilities like the Mass Rapid Transit (MRT) just to resolve the massive traffic jams daily.

“However, we are also at the same time, focusing on overcoming the very basic problems like absence of electricity and water in rural settlements such as in Sarawak,’’ he added.

Muhyiddin said the Government’s plan to create a high-income society was aimed at the city and town people alone.

“We want to raise the per capita income to US$15,000 (RM46,700) by 2020, from the present US$8,000 (RM24,900). This target is achievable even for the rural people if the Government’s transformation programmes can succeed,’’ he said.

He said the Government had rolled out 131 big projects nationwide to transform the economic, industrial and services sectors and a big portion of these are for rural areas.

Syed Mokhtar gets Penang Port

December 24, 2010

KUALA LUMPUR, Dec 24 — Tycoon Tan Sri Syed Mokhtar Al-Bukhary has won the race to take over the Ministry of Finance’s (MoF) Penang Port Sdn Bhd (PPSB), adding the northern port operator to his maritime logistics operations.

The Malaysian Insider understands that the Cabinet approved the sale at its meeting this week despite competitive bids from other top businessmen and also the Penang government, which owns the port land.
“The Cabinet has decided in favour of Syed Mokhtar,” a source told The Malaysian Insider, saying the tycoon’s company will buy into the port operator and the ferry service between Penang and Butterworth.
It is not known what price the government had agreed on but sources said it will be finalised soon.

Syed Mokhtar also owns PTP and Johor Port.
The influential businessman already owns Port of Tanjung Pelepas and Johor Port via MMC Corp Bhd, whose joint venture with Gamuda Bhd were also named Project Delivery Partner (PDP) for the RM36 billion Mass Rapid Transit (MRT) project in Kuala Lumpur.

Sources said Syed Mokhtar was the preferred contender as he already owned ports and airports although another Putrajaya-friendly tycoon Datuk Siew Ka Wei was keen to purchase PPSB through Ancom Logistics Bhd, whose chairman Datuk Abdul Latif Abdullah used to be PPSB chairman.

PPSB is a wholly-owned subsidiary of MoF Inc while the regulator, Penang Port Commission (PPC), also reports to Putrajaya through the Transport Ministry. Prime Minister Datuk Seri Najib Razak recently named MCA president Datuk Seri Dr Chua Soi Lek to head the PPC.

Penang Chief Minister Lim Guan Eng wrote to Najib in early December to put in a bid to run the port, which has declined since the MoF took over in 1994. The port lost its free port status in 1974.

It is learnt that cargo volumes have failed to match Port Klang and Tanjung Pelepas, growing only 5.8 per cent a year between 1995 and 2009, against Klang which grew 14.2 per cent annually.

Syed Mokhtar’s Tanjung Pelepas port began in 1999 but now handles more than six million TEUs (twenty-foot equivalent units) a year, six times more than the one million TEUs in Penang.

Penang has complained that federal ownership of the port operator has worsened its financial position, with net debt rising from RM148 million in 2004 to RM832 million in 2009 — a 462 per cent increase in five years.

Apart from the debt, any company taking over PPSB will also have to find nearly RM400 million to dredge the port channel and attract larger vessels there.

PPSB is already carrying out dredging in the North Channel to ensure it goes from 11.5m to between 13.5m and 14.5m in the coming year.

Lim’s administration had sought to take over PPSB.
PPSB has been planning to privatise and float its shares on Bursa Malaysia since 1996, but it was not able to do so because of the loss-making ferry service. A plan to hive off the ferry operation to Syarikat Prasarana Negara Bhd last year also fell through at the last minute. The ferry service has been a major hindrance to state-owned PPSB’s listing plans in the past due to the losses incurred, running into some RM13 million to RM15 million a year.

PPSB made RM77.74 million in after-tax profit in 2009, up from RM22.70 million the previous year despite revenues falling to RM268.54 million in 2009 against RM277.04 million in 2008.
State government sources said Lim could bring in enough businessmen and experts to run PPSB, which needed funds to deepen the port’s channel and also modernise its wharfs and berths.

“Lim has a few ideas to turn around the port and make it perform better,” a source said, pointing out that Penang owns the port’s land and waters and would have a say over who eventually owns PPSB.

Lim’s DAP colleagues had told Parliament on November 24 that Putrajaya should come clean on whether Syed Mokhtar had bought into the management of PPSB, which is led by Penang Umno leaders such as PPSB chairman Datuk Seri Dr Hilmi Yahya and its managing director, Datuk Ahmad Ibnuhajar.
A unit of Syed Mokhtar’s diverse infrastructure and logistics conglomerate was awarded a 4G network provider licence recently while another subsidiary is interested in acquiring the North-South Expressway (NSE).

Friday, December 3, 2010

Penang joins race for state port operator

Malaysian Insider, December 3, 2010
 
Lim Guan Eng
KUALA LUMPUR, Dec 3 — Penang is seeking to buy state port operator Penang Port Sdn Bhd (PPSB) from Putrajaya, which has received several offers for the profitable major port in northern Malaysia.

The Malaysian Insider understands that Chief Minister Lim Guan Eng sent the bid to PPSB’s owners, the Ministry of Finance. Others interested in the port include tycoons Tan Sri Syed Mokhtar Al-Bukhary and Datuk Siew Ka Wai, both of whom are said to be close to the Najib administration.

“Penang has already sent in a bid for PPSB. It believes it can do a better job than the current management,” a state government source told The Malaysian Insider.

PPSB made RM77.74 million in after-tax profit in 2009, up from RM22.70 million the previous year despite revenues falling to RM268.54 million in 20099 against RM277.04 million in 2008.

State government sources said Lim can bring in enough businessmen and experts to run PPSB, which apparently needs funds to deepen the port’s channel and also modernise its wharfs and berths.

“Lim has a few ideas to turn around the port and make it perform better,” a source said, pointing out that Penang owns the port’s land and waters and would have a say over who eventually owns PPSB.

Lim’s DAP colleagues had told Parliament on November 24 that Putrajaya should come clean whether Syed Mokhtar had bought into the management of PPSB, which is led by Penang Umno leaders such as PPSB chairman Datuk Seri Dr Hilmi Yahya and its managing director Datuk Ahmad Ibnuhajar.

A unit of Syed Mokhtar’s diverse infrastructure and logistics conglomerate was awarded a 4G network provider licence recently while another subsidiary is interested in acquiring the North-South Expressway (NSE).

But Syed Mokhtar is facing competition for the port operator from Siew, the pro-government industrialist who recently widened his Red Berry media company to include The Malay Mail tabloid, Bernama TV and business daily Malaysian Reserve.

Lim’s ruling Pakatan Rakyat (PR) state government is the political foe to the Barisan Nasional (BN) federal government, which recently appointed MCA president Datuk Seri Dr Chua Soi  Lek as regulator Penang Port Commission (PPC) chairman.

The PPC has licenced PPSB to run the port, which was privatised from January 1, 1994 when the island was ruled by BN. However, the shock results of Election 2008 has handed over the state to PR.

DAP lawmaker Tony Pua raised questions on November 23 over the widely-speculated takeover of the troubled Penang Port by Syed Mokhtar and demanded that the government disclose the full details of the privatisation process.

Petaling Jaya Utara MP Tony Pua pointed out to in Parliament that the port operations was already fraught with malpractice and irregularities, as underlined in the recent Auditor-General’s 2009 report, and was poised for a probe by the parliamentary Public Accounts Committee (PAC) in about two weeks’ time.

Pointing to a speculative report carried in Singapore’s Business Times last October, Pua noted that if the takeover did take place, it would be yet another direct affront to the government’s many promises of transparency and public accountability as underlined under Prime Minister Datuk Seri Najib Razak’s New Economic Model (NEM).

Pua described the move as another privatisation process “ala-Dr Mahathir” and questioned why the government had not conducted an open tender to allow the best bidder to develop the Penang Port.
Jelutong MP Jeff Ooi said that the Penang government felt “insulted and shortchanged” that the handover of Penang Port was not being done via open tender.

He also called for the suspension of PPSB chief executive Ahmad over reports of malpractices and irregularities in the port operations.

“The Penang government has suffered and contributed a lot through concessions given to the port authority, including the valuable prime land that has been alienated to them... notably, the one that is at the North Butterworth Container Terminal.

“According to the A-G’s report, there were a lot of malpractices here and the failure of the management has contributed to the sorry state of affairs.

“We want the CEO to be investigated by the CEO and the Malaysian Anti-Corruption Commission,” Ooi said.

Price hike for RON95, LPG and sugar

STAR, 3 December 2010

PUTRAJAYA: The prices for RON95 petrol and diesel will increase by 5sen per litre at midnight (12.01am Dec 4) while the prices of liquified petroleum gas (LPG) and sugar will be up by 5sen and 20sen per kg respectively.

RON95 would be raised to RM1.90 per litre from the current RM1.85 while price of diesel would be retailed at RM1.80 per litre. LPG and sugar will cost RM1.90 and RM2.10 per kg respectively.

Minister in the Prime Minister’s Department Datuk Seri Idris Jala Idris said the price hike was the second wave of the subsidy rationalisation programme.

Prices of RON95 and diesel went up by 5sen per litre while sugar and LPG were raised by 25sen and RM10 on July 16 for the first wave of the programme.

That resulted in total savings of RM779mil. This time around, Idris said the savings is expected to be RM1.18bil.

Idris said the savings would be channelled towards improving urban transportation network, rural basic infrastructure and roads, education and efforts to combat crime.

He added that the increase was very minimal and should not hurt the people.

“I think it is fair to the rakyat. I believe people will be able to accept it,” he told a media briefing on the second wave of subsidy rationalisation here Friday.

Idris said the Consumer Price Index could be contained in view of the low increase and declined to disclose the amount of subsidy the government would have to pay for the items.

PM launches second part of NEM

STAR, 3 December 2010

PUTRAJAYA: The final part of the New Economic Model was launched Friday as the government seeks to push the country forward through a comprehensive transformation plan.

The National Economic Advisory Council (NEAC), which prepared the NEM, emphasised that the document was a long-term plan comprising a combination of new and existing initiatives.

Performance Management and Delivery Unit (Pemandu), which NEAC chairman Tan Sri Amirsham Aziz described as having done a “fabulous job” over the past year, will continue to be the coordinating agency to oversee the implementation of the transformation programme.

In addition, the NEM also included a recommendation for an independent evaluation board to review the pace of policy implementation and to monitor if the objectives of the NEM was achieved.

On the affordability of implementing the NEM, Amirsham said it was “the cheapest and most cost-effective transformation programme.”

On affirmative policy, the NEAC pointed out that it had to be transparent, market friendly and merit-based.

One of the council’s recommendation is to have a set of criteria for which exemptions can be granted from the 30% bumiputra equity and employment requirement, and eliminate case-by-case exemptions.

“In the future, with or without a 30% or higher target of bumiputra ownership of share capital, an overwhelming proportion of bumiputra household income growth will come from wages and salaries.

“Thus, both bumiputra and other communities would be better off if Malaysia is unencumbered by the never ending debates over wealth distribution. After all, before wealth is to be distributed it must first be sustainably generated,” said the NEM.

Among other recommendations included:
* A central oversight authority to collect financial data on all GLCs, monitor their expenses and hold GLCs accountable for their mandates and budgetary expenses incurred
* Govt to divest non-strategic companies and channel proceeds from divestment into a sovereign wealth fund
* To have a set of criteria for which exemptions can be granted from the 30% bumiputra equity and employment requirement, and eliminate case-by-case exemptions
* Consolidate and merge national enterprises to create scale to compete in global market, as had been done in the financial sector
* Establish new specialised courts and tribunals e.g. to hear environmental, fiscal and maritime issues
* To revive the National Development Planning Committee as the premier body for policy development, coordination and consultation
* Implement the Goods and Services Tax (GST), roll back some corporate tax incentives for selected industries and lowering corporate and personal tax rates
* Establishing a National Wage Consultative Council, formalise a productivity-linked wage system, consider a minimum wage policy and introduce unemployment insurance
* Adopting a single comprehensive database for social assistance programmes

Amirsham said the transformation journey would be tough, but was encouraged the government had taken up some of the recommendations proposed under the first part of the NEM, which was launched on March 30 this year.

These included the introduction of health insurance scheme for foreign workers, the setting up of Talent Corporation and more focus on vocational training.

“Government finances was affected by unpaid hospital bills. The healthcare of foreign workers should be looked after, and the employers should bear the cost,” he said.

Road Transport Act amendments seek to resolve many transport issues

2 December 2010

KUALA LUMPUR: Amendments to the Road Transport Act (RTA) are most timely and will resolve many issues related to land transport infrastructure and road fatalities, say the Malaysia Institute of Transport (MITRANS) and the Association for the Improvement of Mass Transit (TRANSIT).

The two advocacy groups said the amendments to the RTA, which would be re-tabled in Parliament next week, would also see changes in the way Malaysians travel by road.

The amendments include those related to the registration of electric cars, the implementation of automated enforcement system to curb dangerous driving and the formation of the Land Transport Commission.

"It is definitely high time for the Road Transport Act to be amended to include the three important elements which will comprehensively address the road safety and public transportation problems Malaysians are tangled with today," said Associate Professor Sabariah Mohamad of Universiti Teknologi Mara and Director of MITRANS.

She said the amendments would objectively re-educate drivers who had been abusing the traffic laws.
Sabariah said the implementation of the Automated Enforcement System (AES) would help curb traffic offenders and lead to better driving practices among motorists.

Muhammad Zulkarnain Hamzah from TRANSIT said the association viewed the amendments to the RTA as necessary to fulfill the country's mobility needs in the future.

"We hope that the government will not just address the problem of road fatalities and congestion on the surface level, but focus on transforming our present mobility infrastructure and urban environment from being car-oriented to people-oriented.

"Kuala Lumpur and other high density cities in Malaysia must quickly implement traffic-restraint and transit-priority policies, and not depend entirely on rail-based mass transit for people to shift from cars to public transport."

Muhammad Zulkarnain said aggressive and risk-taking behaviour had become the norm among drivers in Malaysia as they become increasingly affected by congestion and travel delay and competed with each other to arrive at their destinations on time, while the road capacity had not increased at all.

Under amendments to the RTA, Malaysia will embark on the implementation of the AES, which uses hi-tech digital cameras to capture motorists violating traffic rules, including running red lights and speeding.
Malaysia has emerged as one of the countries with high road deaths per population, with 6,640 deaths from road accidents recorded in 2009.

Road accidents cost the economy some RM9bil last year, in terms of loss of lives and injury.
The Transport Ministry has targeted a long-term plan for "zero fatality vision" and studies by the ministry revealed that 60 to 70 percent of accidents were caused by speeding.

The ministry is also proposing amendments to the RTA to enable electric cars to be registered in Malaysia. Currently, electric vehicles cannot be registered as they do not have an engine and chassis number, which is a requirement when a vehicle is registered with the Road Transport Department.

The world's first mass-market electric cars will go on sale next month, and these cars are expected to hit Malaysian shores not too far down the road, especially with Proton planning to produce its own electric cars.
Meanwhile, the existence of the Land Transport Commission (LTC) to plan, regulate and enforce rules on land-based public and freight transport in Malaysia will also be dependent on the passing of the amended RTA.

Initially, LTC was to come into existence in September but the delay in RTA has resulted in the delay of its operations and its formulation of a public transport masterplan to ensure the holistic development of public transport in the country.

The commission had targeted 25 percent of the Klang Valley's population to use public transport by 2012.
The government's target under the 10th Malaysia Plan (2011-2015) is to improve the share of public transport from 12 percent in 2009 to 30 percent by 2015 in Greater Kuala Lumpur.

LTC's immediate target, as part of its masterplan, is to carry out five initiatives for the National Key Result Areas for urban public transport under the Government Transformation Programme.

They include improving bus journey times by having Bus Express Transit services, establishing dedicated bus right of way such as the Bus Rapid Transit system (bus lanes physically separated from other traffic), building and improving of over 1,000 bus stops in the Klang Valley, reorganising the bus network in the Klang Valley and having integrated smart ticketing. - Bernama

Govt open to foreign investors in local auto industry

Friday December 3, 2010

Star

KUALA LUMPUR: Strategies are being devised to open up the local automotive industry to foreign investments.
Transport Minister Datuk Seri Kong Cho Ha said this was in line with globalisation and liberalisation trends.
“The Government is devising appropriate strategies to open up the automotive industry while protecting local players and setting sustainable policies that allow fair competition among automakers,” he said in his keynote address at the 3rd Kuala Lumpur International Auto­motive Conference here yesterday.

Crowds looking at two Proton concept vehicles during a preview at the Kuala Lumpur International Motor Show 2010 at PWTC.

Kong said a liberalised industry and a level playing field would allow local and foreign players to map out future investment plans.

“Local players will be more competitive in line with the trend of market liberalisation and globalisation,” he added.

Kong said the Government was committed to tackling sensitive but economically vital issues, such as the potential gradual revision of fuel subsidies and inflationary control policies.

He urged the industry to expand through partnerships, mergers and acquisitions to become more competitive and achieve economies of scale and market dominance.

He said there was a shift in focus by major and established car makers, which were investing in emerging markets with large populations such as China, India and Indonesia, and striking up local alliances to expand their operations.

“This reflects a tremendous shift in their global market strategies which is in line with the growing economic and political power of the emerging market regions,” he said.

He said the Government hoped to create a conducive business environment that would enable auto industry players to flourish and find their share of the global market.

Kong said Malaysia could be considered a highly motorised country with 1.017 million new vehicles registered in 2009 alone.

The total number of registered vehicles on the road at the end of last year was 19.016 million and by the end of this year, it would be more than 20 million, he added.

On environmental sustainability, Kong said the Government was committed to promoting the manufacturing of fuel-efficient and alternative-energy vehicles to draw in more foreign investments.

Rais: Telco chiefs calmed by spectrum explanation

December 01, 2010
Malaysian Insider
Rais (right) blamed the media for the telco chiefs’ discontent over the alleged spectrum award. — file pic
 
KUALA LUMPUR, Dec 1 — Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim today said telco players’ fears have been successfully allayed following their meeting with the prime minister over the YTL-700MHz issue.
“We gave an explanation and they (the telco chiefs) were satisfied because the 700MHz will always be there,” he told reporters here after unveiling his ministry’s new logo.

Rais admitted in Parliament yesterday that Datuk Seri Najib Razak met with industry players recently to discuss future plans for Malaysia’s communications sector.

However, The Straits Times reported that during the closed-door meeting, Najib had also told the Malaysian Communication and Multimedia Commission (MCMC) to consult “the private sector before awarding the rights of the 700MHz spectrum”, which is seen as a key component of 4G high-speed wireless broadband.

The Malaysian Insider also understands that Najib has directed regulators to review the 700MHz apparatus assignment rights allegedly granted to YTL Communications Sdn Bhd (YTL Comms), following the MCMC’s denial on the matter on Sunday.

The country’s telcos have been up in arms ever since MCMC’s chief planning and development officer Toh Swee Hoe told The Edge weekly that YTL Comms will get an apparatus assignment (AA) in the 700MHz for its hybrid television service.

Broadband spectra are now highly coveted by telecommunications and multimedia companies, and the alleged award of the AA in the prized spectrum to YTL Comms has riled the country’s telcos, who say it can be used to offer their services in rural areas.

They fear it would allow a new provider like YTL “a stranglehold over the next wave of new technologies, called Long Term Evolution (LTE) which will power the 4G market”.

YTL Comms has denied that it will repurpose the spectrum for its broadband service, pointing out that it already has the 2.3GHz spectrum and a 20MHz block within the 2.5/2.6GHz spectrum which MCMC recently allocated.

Rais also reiterated that the 700MHz spectrum has never been awarded to any party as MCMC was keeping it for digital broadcasting purposes.

“Because the media do not understand, they have published preliminary news which caused some telco chiefs... to feel that this jeopardises their business,” he said.

He gave assurances that the 700MHz spectrum will be expanded and allocated accordingly to other industry players “based on need”.

On Sunday, MCMC denied that YTL Comms can operate its television service on the 700MHz band, saying “MCMC would like to reiterate that no spectrum assignment has been issued to YTL of the 700MHz spectrum band for pay-TV broadcasting, hence the reports and commentaries on a spectrum issuance are inaccurate.”

However, in the same statement, MCMC said it was examining a YTL business plan for digital TV, which will operate within the 700MHz spectrum under the National Spectrum Plan

Rais grilled in Parliament over YTL-700MHz saga

UPDATED @ 09:27:25 PM 30-11-2010
November 30, 2010
Malaysian Insider

KUALA LUMPUR, Nov 30 – The Najib Administration was forced to stave off continuous accusations of cronyism in Parliament today for its alleged award of the prized 700MHz spectrum to YTL Communications Sdn Bhd (YTL Comms).

Information, Communications and Technology Minister Datuk Seri Dr Rais Yatim manned the fort for a good hour when speaking on the issue and continued to deny that government regulator Malaysian Communication and Multimedia Commission (MCMC) had ever given approval to anyone to operate in the 700MHz band, which can be used for broadcasting or broadband services.

The issue was raised by Jeff Ooi (DAP-Jelutong) in the House when debating a RM10 pay cut motion for Rais, who accused the government of “quietly” awarding the spectrum to YTL Comms, a unit of tycoon Tan Sri Francis Yeoh’s YTL property-to-power group.

In his debate speech, Ooi said the alleged award had been shrouded in mystery and reeked of cronyism and lacked transparency.

“It also means that if YTL is awarded the spectrum without fair consideration given to other MCMC licensees in the industry, including Telekom Malaysia, Axiata, Maxis, Digi, Packet One and others. This has become a monopoly and is similar to a 100m race where YTL is give a 50m head-start privilege while the others are left behind.

“Why was YTL given this privilege?” he asked.

He added that without the apparatus assignment (AA) rights, other industry players like Axiata, Maxis and Digi would not be on a level playing field and would likely face a shutdown or be forced to buy bandwidth from YTL.

Ooi dared the ministry to come clean on the issue and questioned if the saga was a mere repeat of the sports betting episode earlier this year when the government flip-flopped on its decision to award a license to tycoon Tan Sri Vincent Tan’s Ascot Sports Sdn Bhd.

“I put it to you, Mr Minister, that you as the minister is fully aware that YTL was given the 700MHz spectrum in writing but the Prime Minister was forced to be dragged into this, and forced to do another flip-flop because of objections from Axiata and others?” he charged.

Last May, Tan had told Bursa Malaysia that his Ascots Sports Sdn Bhd had received a letter from the government dated January 13, 2010 that his sports betting licence had been re-issued.

But following the uproar that his announcement had caused and the silence from the government that followed, the licence was eventually rescinded.

In his response today, Rais stressed that the prized spectrum had never been awarded to anyone and claimed that Ooi’s debate was void of facts.

“The 700MHz spectrum was never awarded to anyone. So YB, you should first know the facts before you make such unfounded statements.

“The two spectrum commodities – the 700MHz and 2.6GHz spectrums – are important to help us in the future to compete in the communications sector.

“We have to be aware that the 700MHz spectrum is held by MCMC and is important for our future programmes in the country,” he said.

He added that despite what was reported in Singapore and local media, all allegations were merely “hearsay”.
“So I invite MP Jelutong to attend a briefing with the MCMC. Come and see for yourself where your debate stands.

“It is easy to use such eloquence to accuse MCMC but this should not be done. This is akin to punishing a person before asking the question, instead of asking the question first, and then meting out a punishment.
“I would like to state here that little knowledge is dangerous,” he said.

Ooi interjected at this juncture, pointing out that news of the contentious award of a 80MHz block in the 700MHz spectrum had hit the headlines on November 26.

“But it took MCMC 48 hours to deny it. And why was there a special meeting held between the chiefs of Axiata with the Prime Minister? If there is no wind, the leaves on the tree will not sway,” he said.
Rais continued to deny the rumours, however, and reasoned that the Prime Minister had every right to meet with the telco chiefs.

“I invite you again to check your facts. The 48-hour issue is not the problem. The problem is whether what you say is based on facts or not. So let me repeat the facts – the 700MHz spectrum was not given to anyone,” he said.

Rais admitted to a meeting with the Prime Minister and industry players recently and revealed that it was also attended by the country’s economic adviser.

“But discussions centered on the country’s plans for the future in the communications sector. So in the future, whether or not we choose an auction or to create new rules, what is more important is that we do not lose our source of revenue,” he said.

Rais pledged the government’s intention to incorporate the services of the new players in the telco industry, insisting that none would be left behind.

The Malaysian Insider reported today that Prime Minister Datuk Seri Najib Razak had directed regulators to review the 700MHz apparatus assignment rights allegedly granted to YTL Comms, following the MCMC’s denial on the matter on Sunday.

In its denial, the regulator had however conceded that it was presently “assessing a detailed business plan by YTL for the roll out of digital pay-TV and not 4G mobile services as reported.

“MCMC would like to reiterate that no spectrum assignment has been issued to YTL of the 700MHz spectrum band for pay-TV broadcasting, hence the reports and commentaries on a spectrum issuance are inaccurate.

“The operating licence issued to them on August 30 is for a content applications service provider individual licence, to provide subscription-based Internet protocol television services using their 2.3GHz WiMAX network,” it said in its statement on Sunday.

Industry sources were tight-lipped over a closed-door meeting between the prime minister and telco executives but The Straits Times reported that Najib had told the MCMC to consult “the private sector before awarding the rights of the 700MHz spectrum”, which is seen as a key component of the 4G high-speed wireless broadband.

He also directed the ministry to complete its review before the end of January, and to submit recommendations on how the government should proceed with the award, executives familiar with the meeting told The Straits Times.

YTL Comms executive director Datuk Yeoh Seok Hong had told The Malaysian Insider last week that the company had a five-year concession to operate in the 700MHz band for a pay-television operation competing with the dominant Astro network.

MCMC has regulations on award of spectrum but executives familiar with the process told The Malaysian Insider that the regulator had ignored the rules in the recent apparatus assignment exercise for the 700MHz and the 2.5/2.6GHz spectrum recently.

Broadband spectrums are now highly coveted by telecommunications and multimedia companies, and the alleged award of apparatus assignment in the prized spectrum to YTL Communications had seriously upset the country’s telcos who can use it to offer their services in rural areas.

They had feared that it would allow a new provider like “YTL a stranglehold over the next wave of new technologies, called Long Term Evolution (LTE) which will power the 4G market”.

But in its release, the MCMC said: “Under Malaysia’s National Spectrum Plan, the 700MHz spectrum band is allocated for broadcasting service, and not for LTE or 4G mobile services as speculated.”