Archive for November 25th, 2009

Matrade gets expo centre for ‘free’, says Mustapa

The Malaysian Insider
Wednesday November 25, 2009

By Asrul Hadi Abdullah Sani

KUALA LUMPUR, Nov 25 — International Trade and Industry Minister Datuk Mustapa Mohamed today defended the proposed expo centre in Jalan Duta from controversy after the RM628 million project was given to Naza TTDI, saying the government was getting it for free.

Mustapa explained that building-for-land deal is good value for the Malaysian External Trade Development Corporation (Matrade).

“The valuation of the land in 2007 is RM197 million and we are getting RM628 million’s worth building so we are getting value for money for us. We need a big centre,” he told reporters in parliament here.

The mammoth expo centre being built on a 13.1-acre site in Jalan Duta here is to be developed by Naza TTDI, a unit of the Naza Group, in exchange for 62.5 acres of state land at RM226 per square foot although the market value of the land could reach RM1.5 billion. The entire project will have a gross development value of RM15 billion.

The Matrade centre is estimated to be 90,000-sq-m and set to be completed in 2013.

Mustapa noted that the currently available exhibition centres in the Klang Valley were too small to lure major investors. Read the rest of this entry »


Bumiputera contractors: A wasteful national mission to date

By Koon Yew Yin
Wednesday, 18 November 2009 07:54

Centre for Policy Initiatives

It is an indictment of our system that IJM is able to compete internationally for contracts but yet is required to work as a sub-contractor to Bumiputera companies on the North-South Highway in Malaysia.

On Oct 25, 2009 our Second Finance Minister Ahmad Husni Mohamad Hanadzlah said that government has vowed to cut down on wasteful spending to lower its budget deficit and all major public projects must go through the open tender system.

Earlier, the Auditor-General’s report for 2008 revealed continuing financial management weaknesses at every level of the government. Delays in project completion seem to be a perennial problem and the lack of oversight by various ministries and departments in the procurement of goods and services continue to cost the government hundreds of millions of ringgit.
Read the rest of this entry »