Posts Tagged ‘PORR’

9MP Mid Term Review and its impacts on Penang planned infrastructure projects

Monday, July 7th, 2008

The Malaysian Government has tabled its 9th Malaysia Development Plan 2006-2010 (9MP) mid term review in Parliament House recently. Despite the Federal Government increased the development allocation to RM230 billion, the development allocation of several infrastructure projects including Penang’s monorail and PORR, however, have been deferred. researched on these two affected infrastructure projects following the latest decision by the Federal Government to defer it which are considered important projects to Penang economic development.


The proposal and ideas on Penang’s planned infrastructure projects ie Monorail (LRT) system, PORR, Penang Bridge Expansion and Penang 2nd link have been floated since mid 1990’s, more than 13 years ago.

According to a report way back in year 1995, the Penang’s Light Rail Transit (LRT) system was scheduled for completion in year 2002. The proposed LRT system, costing RM650million at that time, was supposed to be implemented under “Built-Operate-Transfer” basis by Business Focus Sdn Bhd. It was also reported that a close-end fund under the name of Dana Mutiara was being set up to undertake infrastructure-related projects including Penang 2nd Link, PORR, monorail system etc. The idea of setting up a close end fund has since fizzled out and most of these planned infrastructure projects were shelved due to the onslaught of Asian financial crisis during 1997-1998. Read more at here and here.

The planned infrastucture projects were subsequently revived and incorporated in the 9th Malaysia Plan 2006-2010 in year 2006 and endorsed in the blueprint of NCER launched by the Prime Minister of Malaysia in August 2007.

Highlights of 9MP Mid Term Review

According to the Mid-Term Review of the 9MP, the Malaysian Government is allocating another RM30bil for development expenditure under the Ninth Malaysia Plan (9MP), increasing the ceiling to RM230bil and here are the highlights of 9MP mid-term review. Several infrastructure projects which are considered important to Penang ie.Penang Monorail, Highway Projects Are Not Under 9MP now despite the Federal Government has endorsed these projects under the initiatives of NCER launched less than 1 year ago.

Reasons and Reactions on deferment

The reason cited for the two Penang projects being deferred (RM2bil monorail and RM1.5bil Penang Outer Ring Road) was to relocate resources to cushion the impact of the increase in global oil prices and focus on people-centred projects. more at here and here. And here are the reactions from the Penang state administration. The Penang Chief Minister is urging the federal government to restore these 2 mega projects and explain the allocation cut to Penang State. The Penang NGOs, on the other hand, have dissenting views and are calling the authorities to establish a Penang transport masterplan. More views and comments relating to Penang’s planned infrastructure projects in Penang-Jelutong MP cum blogger Jeff Ooi’s blog.

Impacts on developments

The deferment of these mega projects would likely to have impacts on ongoing and new planned developments surrounding the PORR and monorail route. More info about mega projects at related blogs; NCER and the high impact projects on Penang and Penang Mega Projects.

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