Large Malaysian Petro-chemical Plant near Changi

[myo539]

Malaysia’s Pengerang project to draw additional investments

12 January 2011 |Malaysian PM Razak announced oil and gas projects worth MYR20 billion (*S$8.4 billion) and Malaysia’s intention to transform the deepwater petroleum terminal in Pengerang, Johor, along the lines of Singapore’s Jurong Island petrochemical complex.
The Dialog Group Bhd and Vopak Asia plan to invest RM5 billion in the five million cubic metre petroleum storage facility in southeast Johor..... Pengerang is expected to attract MYR50-100 billion of additional investments in refineries, petrochemical and power generation plants once the terminal is completed.

Read article for rest of news....

http://www.iesingapore.gov.sg/wps/p...gerang+project+to+draw+additional+investments

Any one knows more about the project? My impressions:

As we know, Malaysia always appears to copy things that have worked for Singapore such as port, airport and industries. But why Pengerang - the sleepy district off Changi that I love to cycle and have my lobster and crab seafood?

1. The coast is muddy and rocky - where got deep sea water or port? Yes, big ships anchored off-shore - but that's Singapore water territory and you can see Pedra Branca from there.
2. The place is in the direct part of hundreds of planes taking off every day. Isn't it dangerous? The Malaysians already complaining about noise and danger from our combat planes, and ban them from their southerncairspace.
3. The place is so remote. From JB, the nearest large town, you'll need to up north and negotiate down the whole Pengerang peninsula before you reach the place. Building the bridge across the Johor River can help, but it is still not ready.
4. The danger of the Monsoon. One reason why east coast of Peninsular Malaysia is not so developed is because of the north-east Monsoon - the strong wind, heavy rain and current from November to February. Remember the case of the Sporean drowned at Mersing? Within a day or two, his body was discovered in Bintan island - more than 100 km away. Imagine how strong the current is.

Singapore will continue to face such challenges from its nearest neighbours.

 

[RandomNexus]

Malaysia’s Pengerang project to draw additional investments

12 January 2011 |Malaysian PM Razak announced oil and gas projects worth MYR20 billion (*S$8.4 billion) and Malaysia’s intention to transform the deepwater petroleum terminal in Pengerang, Johor, along the lines of Singapore’s Jurong Island petrochemical complex.
The Dialog Group Bhd and Vopak Asia plan to invest RM5 billion in the five million cubic metre petroleum storage facility in southeast Johor..... Pengerang is expected to attract MYR50-100 billion of additional investments in refineries, petrochemical and power generation plants once the terminal is completed.

Read article for rest of news....

http://www.iesingapore.gov.sg/wps/p...gerang+project+to+draw+additional+investments

Any one knows more about the project? My impressions:

As we know, Malaysia always appears to copy things that have worked for Singapore such as port, airport and industries. But why Pengerang - the sleepy district off Changi that I love to cycle and have my lobster and crab seafood?

1. The coast is muddy and rocky - where got deep sea water or port? Yes, big ships anchored off-shore - but that's Singapore water territory and you can see Pedra Branca from there.
2. The place is in the direct part of hundreds of planes taking off every day. Isn't it dangerous? The Malaysians already complaining about noise and danger from our combat planes, and ban them from their southerncairspace.
3. The place is so remote. From JB, the nearest large town, you'll need to up north and negotiate down the whole Pengerang peninsula before you reach the place. Building the bridge across the Johor River can help, but it is still not ready.
4. The danger of the Monsoon. One reason why east coast of Peninsular Malaysia is not so developed is because of the north-east Monsoon - the strong wind, heavy rain and current from November to February. Remember the case of the Sporean drowned at Mersing? Within a day or two, his body was discovered in Bintan island - more than 100 km away. Imagine how strong the current is.

Singapore will continue to face such challenges from its nearest neighbours.

As usual, Malaysia always knows to do one thing : copy Singapore. And they are always doing so when it is late.

This is part of Iskandar project. I also took a look at Danga Bay project which was previously abandoned, but now revived, with new additions, now attempting to copy Sentosa Cove project. Not sure if you regard staying there as scenic in Johor Straits - highly polluted. I do like to see if it can encourage foreign interest.

Petrochemical investment depends on one important caveat : need for political stability due to massive amounts needed to invest. If you are looking current political scene, Najib is far being able to assert political control. The continuing use of race and religion rhetoric, with a danger to real escalation, is one which will be looked with great interest by foreign investors.

It helps if there is a base oil and natural gas supply nearby to facilitate. This is something which is in Malaysia's favour. Like I said, they could have done much earlier instead of now. So far this first investment is about a storage facility, and it is a natural fit for their own oil supply. It will take a while if they can attract further investments to exploit this. I am not sure if they can attract. Personally I do doubt it is possible - let us wait and see.

The choice for Pengerang, my guess, is that this will hopefully spark the development of the eastern region of Johor, and I think Najib also has an eye that this will present opportunities for Pahang which he hails from. He has previously suggested a third link via this eastern region, to be connected to Kuantan, which was rejected by Johor king.

The corporate governance for Malaysia is not as good, and I reckon this investment, will result in pollution, if not managed carefully, and has a possible bearing for eastern region of Johor and eastern side of Singapore. If there is a monsoon, I wonder if the wind will carry out the polluted air to Singapore?

 

[myo539]

Now the voice to build a 3rd link from Changi will become louder - as it will stimulate development on the eastern seaboard. But the Johore Sultan siao siao. Wants the Causeway to be demolished, but don't want a 3rd link while the Federal Govt want to develop eastern seaboard, to give it a balance.

It will be wise for Singapore to use this as a trade off - some sort of "package" deal because without Singapore's participation and patronage, pojects after projects will fail, as is the case with the development of Desaru.

That's why the current warm relationship is basically to get Singapore's participation in the Iskandar Project - building of iconic projects and an MRT linking to Singapore. As you can see, many Singaporeans have baited and are buying houses in the central and swampy west - leading to a frentic building of houses and escalating prices of properties. The locals are not smiling, as the wealth hardly filters down to many of them - they still had to cross the Causeway to earn a better living. The same sort of feeling Singaporeans have for FTs. Time will tell.

Had a talk with the locals there. They showed me the stretch of reclaimed land from one end of Tekong and extending beyond to the open sea. To go to Tg Pengelih from Changi Point, you have to go a big detour eastward to the open South China Sea before turning back westward to the bumboat-cum-immigration terminal.

The locals are highly impressed with the vision Singapore has in reclaiming land even though Singapore has been deprieved of sand supply from Malaysia. I was privy to the rumour that the Johore Sultan actually had a role in the reclamation project. I left it at that, knowing that sand is a sensitive issue, and that the Johore Royal household sometimes doesn't see eye to eye with the Federal Government. Moreover that eccentic Mahathier will now and then throw a dummy bomb to stir things up a bit to get at Singapore or MM Lee.

Latching on to Health Minister Khaw idea's of retiring in Malaysia, my vision of a retirement bungalow by the South China Sea has to be put on hold - in case I am choked by the fumes and polluted water from the petro-chemical plant.

 

[IR123]

what if it explodes or attacked by terrorists?

will singapore be affected? KL seems far away enough not to be affected. How about Johor?

 

[alyl21]

It's interesting to track the developments in Iskandar Malaysia. So far, www.iskandarwatch.blogspot.com tracks developments there.

http://www.iskandarmalaysia.com.my/news/100514/malaysia-singapore-to-reactivate-business-council

Singapore and Iskandar may have close cooperation soon. Any views anyone?

 

[alyl21]

what if it explodes or attacked by terrorists?

will singapore be affected? KL seems far away enough not to be affected. How about Johor?

You might want to consider the fact that some developments north east of Singapore can be pollutive already

 

[syed putra]

actually, malaysia cid not copy jurong island masterplan. both countries were competing to attract investors for their chemical zone complexes.
in the case of exxon and shell, they opt for jurong after rejecting a site in kemaman. there are plants belonging to kellogs, basf, corning and petronas already, but singapore offered better incentives to exxon as it was suppose to be the world largets chemical vomplex for them.
when exxon ceo personally visited mahathir to convey their decision, his faced turned red. this was maybe more than ten years ago.
if exxon had decided on kemaman/kuantan, then the jurong island will never had got off the ground.
the one being planned now in eastern johore seaboard will benefit singapore based ship brokers and maritime lawyers,as many contracts will have arbitration clauses that states singapore to settle disputes and financial transaction could be from their respective marketing and trading offices based in singapore