Prasarana reserves ‘at least’ 30pc of MRT for Bumi contractors

By Boo Su-Lyn

Malaysian Insider, 23 August 2011

KUALA LUMPUR, Aug 23 — Syarikat Prasarana Negara Bhd will reserve at least 30 per cent of the Klang Valley Mass Rapid Transit (KVMRT) construction packages for Bumiputera contractors.

Abdul Malik Azman, Prasarana’s head of MRT Procurement Management Department, told The Malaysian Insider today that the quota for Bumiputera contractors was part of the government’s “national agenda.”

“We have this Bumiputera agenda approved by the MOF (Finance Ministry).

“At least 30 per cent of packages should be allocated for Bumis. This is the national agenda,” he told The Malaysian Insider after a briefing for pre-qualified contractors at Prasarana’s office here today.

In May, Prasarana had caved in to pressure from Malay rights groups when it revised pre-qualification criteria for several construction packages.

The project owner had said then that contractors who wanted to tender for elevated civil works, stations and depots work construction packages would be allowed to form joint ventures (JV) or consortiums among local companies.

Twenty-eight firms including heavyweights such as Sunway, IJM and MRCB have been shortlisted for the construction of the first phase of the KVMRT project

The works packages were divided into two categories: Open and Bumiputera.

The value for contracts under the Bumiputera category is about RM250 million per package, based on the last briefing to contractors by Prasarana in May.

Abdul Malik said today that there were 18 work packages, comprising eight packages for elevated civil works, eight packages for stations and two packages for depots.

He said six out of the 16 packages for elevated civil works and stations, as well as the Kajang depot work package, were reserved for Bumiputeras.

“A few Bumis here can (also) bid in the Open category. (They can go) fishing in the pond and ocean. They have more chances,” said Abdul Malik.

He pointed out that Trans Resources Corporation Sdn Bhd, Ahmad Zaki Sdn Bhd and MTD Construction Sdn Bhd could bid for all eight elevated civil works packages.

Trans Resources Corporation and Naim Engineering Sdn Bhd could bid for all eight stations and both Sg Buloh and Kajang depot work packages, he added.

Abdul Malik told a press conference earlier today that winning contractors would be picked based on their financial capabilities, their equipment and “realistic” offers.

The Prasarana official, however, refused to specify what he meant by a “realistic” price, saying: “If we say, we might not get a competitive price.”

He added that the first two elevated civil works packages, which are a 5.2km viaduct from Taman Bukit Ria to Phoenix Plaza in Cheras and another 5.4km viaduct from Phoenix Plaza to Bandar Tun Hussein Onn, would be awarded in January or February next year, and construction of the multi-billion ringgit rail project would start.

Thumbs-up for ‘Najibnomics’

Saturday September 12, 2009

KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak has covered good ground since taking office on April 3 with a number of positive policies and actions.

They include liberalising the New Economic Policy, ensuring greater transparency, speeding up the award of government infrastructure pro-jects and improving ties with Singa-pore to draw more foreign direct investments into Iskandar Malaysia, a development region in Johor twice the size of Singapore.

Aimed at stimulating the local economy, attracting foreign investments and foreign talent, reducing bureaucracy, tackling crime and corruption, effecting greater accountability and promoting national unity (through the 1Malaysia concept), Najib’s policies have been impressive.

CLSA Asia-Pacific Markets, an independent brokerage and investment group headquartered in Hong Kong, described Najib’s positive economic and social reforms as “Najibnomics”, given his economics background.

With his background on industrial economics from the University of Nottingham, CLSA said Najib had been quick to effect various fiscal, government and structural reforms.

In its special strategy report on Malaysia, CLSA said: “Although he has until March 2013 to call for the next general election, we believe he has little choice but to work quickly as the clock is fast ticking.

“Najib not only has to implement new policies to reform the government and turn around the economy simultaneously, he has to deliver some decent results to ensure that the ruling Barisan Nasional coalition performs better than in the last general election in March 2008.”

On the economic front, CLSA said it expected the Malaysian economy to recover in 2010 while consumer sentiment was also improving.

In view of Malaysia’s high savings rate at 43.3% of the GDP which would support private consumption while the impact of weak imports from Western countries would not be too severe, it pointed to an economic recovery next year.

Malaysia’s 2009 GDP has been forecast to decline by 4 to 5% this year compared to a growth of 4.5% last year.

CLSA’s expectations are in line with that of Bank Negara Malaysia, which indicated that the country’s growth outlook for the second half of 2009 was expected to improve after the economy contracted at a slower rate of 3.9% in the second quarter of 2009 following a 6.2% contraction in the first quarter of the year.

The central bank said there were increasing signs that conditions in the global economy were stabilising as the pace of the decline in economic activity was moderating in advanced countries.

CLSA said that its recent contacts with Malaysian companies revealed that most were cautiously optimistic and were coping fairly well with the economic downturn.

“There has not been any high-profile debt default while non-performing loans in the banking system remain benign. Companies have merely been hit by shrinking revenues, thinning margins and higher receivables, while corporate governance issues have been sporadic.

“Most companies believe that the worst is over. Having said that, they do think the way forward will remain challenging as unemployment continues to creep up,” CLSA said.

The investment group also conducted a survey among 300 respondents, two-thirds of them from Kuala Lum-pur, and ascertained that Malay-sians were coping well with the downturn, with only 22% of them saying that their employment had been affected.

In terms of household income, 44% said they experienced a decline in income while 10% experienced an increase.

About 70% said they had changed their spending patterns, reducing expenditure on food, clothing as well as leisure.

Essentials like mortgages, utilities, transport, children’s education, healthcare and communications have been largely unaffected by the downturn.

CLSA said these simple surveys and feedback from companies and consumers seemed to tie in with the findings of the Malaysian Institute of Economic Research. — Bernama

Govt lifts 30% bumi rule for 27 services sub-sectors

STAR, 22 April 2009

PUTRAJAYA: The government has removed the 30% bumiputra equity condition in 27 services sub-sectors, with immediate effect.

Prime Minister Datuk Seri Najib Tun Razak said the sub-sectors, which involved health and social services, tourism services, transport services, business services and computer and related services, would have no equity conditions imposed.

He said the liberalisation was aimed at creating a conducive business environment to attract more investments, bring in more professionals and technology, encourage competitiveness and create higher value employment opportunities.

“We will be progressively undertaking liberalisation of the other services sub-sectors,” he told a press conference at his office on Wednesday.

Saying that the services sector would become a new growth sector of the economy, Najib said it contributed 55% to the GDP in 2008, and accounted for 57% of total employment in Malaysia.

The Government wanted to tap the sector’s full potential and raise its contribution to 60% of the GDP, he said.

However, he assured that the liberalisation would not adversely affect the domestic services industry, which would continue to be supported.

He said a RM100mil services sector capacity development fund was established under the first economic stimulus package, managed by the Malaysian Industrial Development Authority (Mida) to assist the industry to face the more liberalised services environment.

To facilitate investments into the sector, a National Committee for Approval of Investments in the Services Sector had been established under Mida which would receive and process applications of investment in the services sector, excluding investments in financial services, air travel, utilities, Economic Development Corridors, Multimedia Super Corridor and Bionexus status companies and distributive trade.

In a bid to develop Malaysia as an international Islamic financial hub, the legal profession would be liberalised to allow up to five international law firms with expertise in international Islamic finance to practise in Malaysia, Najib said.

Najib also said the liberalisation was in line with Malaysia’s commitment to Asean.

However, some of the measures were better than those undertaken by other Asean countries, he said, adding that they would also make Malaysia more equipped to compete internationally.

“Consultations were carried out and the decision was made based on the reception and acceptance by the sub-sectors,” he said on the selection of the sub-sectors.

Najib said that in 2008, approved investments in the services sector totalled RM50.1bil, exceeding the target of RM45.8bil per annum under the Third Industrial Master Plan.

The share of foreign investments was 11% of the total investments.

“With the liberalisation of the services sector, we expect greater inflow of investments,” he said.

Najib also said he would announce next week the liberalisation of the financial sector.

He declined to give details.

“I want it to be full of surprises” and “It is good for the market to digest (the announcement for the services sector) first.”