Reviewing The Malaysia Plan Infrastructure Period Construction Essay

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For the Eighth Plan period, emphasis will be given to increasing the capacity and accessibility in less developed areas while in urban areas, the focus will be to enhance efficiency and improve public transport services. The provision of utilities such as communications, water and sewerage will be given priority to increase coverage and improve the quality of life. Participation by the private sector will continue to be encouraged with the Government assuming an increasingly important role in the supervision and setting of performance standards of infrastructure facilities and services to support the growth and competitiveness of other sectors.

Road - For the Eighth Plan period, a total of RM5.1 billion will be allocated for the development of new roads and RM8.9 billion for the improvement and upgrading of existing roads. The larger allocation for upgrading of existing roads is in line with the efforts to improve safety, driving comfort and reduce travel time, including the provision of motorcycle lanes in identified dangerous stretches.

Several major urban roads will be constructed during the Eighth Plan period. These include the road link from Kampung Pandan Roundabout to Sultan Ismail Road in Kuala Lumpur; Butterworth Outer Ring Road, Penang; Muar Bypass Road, Johor and several roads in Kota Kinabalu and Kuching. In addition, several other roads will be upgraded including Jalan Klang Lama, Kuala Lumpur; Kuantan Bypass Road, Pahang and the Karamunsing Interchange, Kota Kinabalu.

Rail Transport.

Transportation - During the Eighth Plan period, the urban transport strategy will continue

to focus on the development of an integrated, efficient and reliable urban transport environment in the Klang Valley as well as in other major urban centres. In this regard, strategies and measures will be required to alleviate traffic congestion as most urban centres continue to experience high population growth and socioeconomic development. Emphasis will be on the need to have a more efficient, safe and comfortable public transport system to enable a modal shift from private car usage.

The rapid increase in car ownership and commercial development in major cities will continue to impose greater demand on road capacity. Greater and more sustained efforts are therefore required to enhance public transport services, improve traffic demand management and upgrade the road network to enable quicker vehicular flow and dispersal to the ring roads. In this regard, local authorities need to upgrade their expertise in urban transportation planning and management. Measures such as adequate land use planning, provision of public

transport facilities and strict enforcement with regard to indiscriminate parking and construction activities will be required to alleviate severe cases of traffic congestion.

The increasing number of motor vehicles in all major urban centres will require the implementation of public transport priority measures, car parking control, local area traffic improvement schemes, restrictions on heavy vehicles, greater pedestrianization and the application of ITS. Measures will be taken to enhance effective car parking control through limiting the duration of parking hours, reducing parking requirements for new projects and imposing higher parking charges in specific areas. Local area traffic improvement schemes include one-way circulation, contra-flows during peak hours and traffic calming measures.

ITS applications will continue to be an imperative tool in the strategy to alleviate traffic congestion and improve the urban transport system as well as reduce pollution. Some of the more effective ITS applications include vehicle information system, transport information kiosks, variable message signage and ultimately an integrated demand management system (IDMS). This will incorporate an urban traffic control system with linkages to vehicle tracking, data collection, safety, public transportation and parking guidance. In this regard, a Government

appointed private consortium will undertake a plan to implement ITIS in the Klang Valley.

While LRT STAR, LRT PUTRA and KTM Commuter managed to secure a combined daily ridership of about 250,000 commuters on peak days, it is still lower than the forecasted figures, thus requiring more promotional efforts by the companies. The Government will also consider various options to ensure the financial viability of the projects and the provision of better services to the public. In addition, higher productivity and cost-saving measures will be pursued

to enhance the financial sustainability of the urban transit systems. The intercity monorail system, however, is viewed as more commercially viable by the concession company based on lower construction, systems, operating and maintenance costs. The lower costs are attributed to the deployment of Malaysia's first locally manufactured monorail vehicles. The monorail system is expected to provide a critical public transport link from KL Sentral to the central business district and several LRT stations. To further expand the urban rail network, the Government will implement the locally manufactured monorail system which is similar to the KL Monorail, as the core transport mode in Putrajaya and Cyberjaya. The first phase of the project is scheduled for completion in 2003. Both Putrajaya and Cyberjaya will feature an integrated internal transport system which will interface with the ERL to Kuala Lumpur and KLIA and inter-city buses.

Further development will continue to focus on greater rationalization and optimization of the public transport sector especially in the Klang Valley. Emphasis will be on the promotion of multimodalism through the use of a common ticketing system, integrated route and facility networks, improved locations for bus and taxi stands, transit malls, efficient feeder buses and more car parks on the urban fringes close to LRT and bus stations. Buses will continue to be

a major mode of transport in cities and will be further improved to provide an efficient, safe and comfortable service. For the Klang Valley, the Government will examine the reorganization and restructuring of the total urban transport operations with the objective of creating an efficient and financially sustainable system.

The opening of KL Sentral in early 2001 heralds a significant milestone for public transportation in the Klang Valley. As the main public transport hub linking Kuala Lumpur to KLIA, Putrajaya and Cyberjaya through the ERL, KL Sentral's pivotal role will be continuously monitored and enhanced. It is also expected to increase the ridership levels of the LRT PUTRA, KTMB inter-city and commuter train services and the monorail, as these different modes will converge at the KL Sentral. To ensure efficient operation of KL Sentral, its management will be privatized.

Pedestrianization projects in the major urban centres will continue to be encouraged to induce the public to walk short distances rather than use their cars. Landscaped and sheltered pedestrian walkways will continue to be implemented. Further improvement in lighting and provision of street furniture will also be undertaken to attract more commuters to public transportation.

Several major urban roads will be constructed during the Eighth Plan period. These include the road link from Kampung Pandan Roundabout to Sultan Ismail Road in Kuala Lumpur; Butterworth Outer Ring Road, Penang; Muar Bypass Road, Johor and several roads in Kota Kinabalu and Kuching. In addition, several other roads will be upgraded including Jalan Klang Lama, Kuala Lumpur; Kuantan Bypass Road, Pahang and the Karamunsing Interchange, Kota Kinabalu.


Road development programme will be continued with emphasis on quality and safety. New roads construction will focus on opening up corridors for development as well as improving accessibility to rural areas. Construction of roads through privatization and deferred payment method will be continued on a selective basis, thereby sustaining road project implementation.

10.58 For the Eighth Plan period, a total of RM5.1 billion will be allocated for the development of new roads and RM8.9 billion for the improvement and upgrading of existing roads. The larger allocation for upgrading of existing roads is in line with the efforts to improve safety, driving comfort and reduce travel time, including the provision of motorcycle lanes in identified dangerous stretches.

Emphasis will be placed on roads leading to and within the less developed areas, in order to provide better access and improve road system to these areas. In this regard, new rural roads will be built to high geometric standards that will facilitate the movement of larger commercial and heavy vehicles to serve industries in these areas, thereby accelerating rural and regional development. Some of the major projects to be undertaken include the construction of Titi Karangan-Grik section of the Second East-West Highway, Sepulut to Kalabakan Road in Sabah

and the highway from Kuching to the new Federal Administrative Centre in Rambungan in Sarawak. In addition to the Pan Borneo Highway linking Miri and Limbang and the Simpang Pulai-Lojing-Kuala Berang Road, the construction of the East Coast Expressway will be expedited through Government funding.

Various new projects are expected to be completed through privatization including the Senai-Desaru Highway, Kajang-Seremban Highway and the Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT Highway). The completion of these highways will add about 100 kilometres of privatized highways to the total road network.

Urban Transport

During the Eighth Plan period, the urban transport strategy will continue to focus on the development of an integrated, efficient and reliable urban transport environment in the Klang Valley as well as in other major urban centres. In this regard, strategies and measures will be required to alleviate traffic congestion as most urban centres continue to experience high population growth and socioeconomic development. Emphasis will be on the need to have a more efficient, safe and comfortable public transport system to enable a modal shift from private car usage.

The rapid increase in car ownership and commercial development in major cities will continue to impose greater demand on road capacity. Greater and more sustained efforts are therefore required to enhance public transport services, improve traffic demand management and upgrade the road network to

Rail Transport8

During the Eighth Plan period, emphasis will continue to be given to enhance the efficiency and quality of rail services. In this regard, efforts will be undertaken to increase operational safety, reliability and greater professionalism of the railway workforce in order to realize the inherent competitiveness of rail transportation.

The selective doubling, strengthening and electrification of tracks, modernization of signalling and communication systems and investment in higher quality rolling stock augurs well for the future role of rail transportation. The current share of overall freight transportation by rail of less than 5 per cent offers vast potential for market expansion. Towards this end, the rail industry will

embark on more effective marketing of its services.

With the completion of the rail link project to the West Port of Port Klang, North Butterworth Container Terminal and the scheduled completion of the rail connection from Kempas to Port of Tanjung Pelepas, Johor in 2002, efforts will be undertaken to promote the competitive cost advantage of freight transportation by rail. This will also contribute significantly to the development of these ports. Various supporting measures, including the upgrading of operations and maintenance standards, enhancing productivity levels and the optimal utilization

of existing resources, will be undertaken to enhance rail transportation.

The implementation of the Rawang-Ipoh electrified double track project is scheduled for completion in 2004. This will serve as a crucial link in the Southern Thailand to Malaysia land-bridge project by providing efficient freight services on the Padang Besar-Ipoh-Rawang-KL-Port Klang route. In line with the need to increase track capacity, efficiency and quality of both passenger and freight services, the Government will consider the extension of the current Rawang-Ipoh electrified double track project to Padang Besar in the north and from Seremban to Johor Bahru in the south. Inter-city passenger services will be improved with the increased track capacity and the extension of commuter operations between Rawang and Tanjung Malim. In addition, the implementation of the Sentul-Batu Caves electrified double track project will extend commuter train services in the Klang Valley by another seven kilometres.

As part of its long-term strategy to promote freight multimodalism, KTMB will continue to gear itself towards general cargo containers as well as increase productivity and performance standards of its yard and terminal facilities. In addition, more container depots and terminal facilities will be built jointly with the private sector to further increase freight business. In order to have an efficient, market-oriented and sustainable railway operation, a major restructuring of KTMB will be undertaken transport.


During the Eighth Plan period, the Government will embark on an extensive sewerage capital development programme with the implementation of 13 sewerage work projects. These include the upgrading of 10 sewerage treatment plants and sewer networks and the provision of three new central sludge facilities to ensure the delivery of better service. The completion of these projects will provide sewerage services to an additional 1.8 million population.

The implementation of the refurbishment works programme on about 2,500 treatment plants will produce better quality effluent and improve the environment. The implementation of this programme is in line with the recommendations of the sewerage study where the existing concessionaire will undertake the operation and maintenance works for the sewerage services including billing and collection of charges. The Government, on the other hand, will be responsible for the capital expenditure required to expand, upgrade and rehabilitate the sewerage system. This option will, among others, ensure that the sewerage services will continue to be provided to the public at affordable rates and ensure safe wastewater disposal.

The taking over of new sewerage plants from the developers will increase the coverage of the population served by the concessionaire to about 14.4 million people by the year 2005. The implementation of the sewerage catchment plan will further reduce the number of localized treatment plants and optimize resources in the operation and maintenance of sewerage systems. However, individual sewerage systems will be implemented in locations such as hilly and isolated areas where connections to the centralized system are costly or have an adverse

impact on the environment.


During the Eighth Plan period, the urban transport strategy will continue to focus on the development of an integrated, efficient and reliable urban transport environment in the Klang Valley as well as in other major urban centres. In this regard, strategies and measures will be required to alleviate traffic congestion as most urban centres continue to experience high population growth and socioeconomic development. Emphasis will be on the need to have a more efficient, safe and comfortable public transport system to enable a modal shift from private car usage.


The implementation of water supply projects will be further accelerated, such as the construction of the Chereh Dam and the Greater Kuantan Water Supply and the Tanjung Malim Water Supply Scheme. The construction of two major source works, the Sungai Selangor Phase III project (SSP3) and the Pahang-Selangor Raw Water Transfer scheme, will commence during the Plan period to cater for the increase in water demand in the Klang Valley. Besides the Sungai Selangor Dam, the SSP3 includes Stage 1 of the Bukit Badong Water Treatment Plant with a capacity of 400 mld which is expected to be completed by 2002 and Stage 2 with a capacity of 400 mld by 2004. The Pahang-Selangor Raw Water Transfer project is designed to transfer a maximum capacity of 2,400 mld of raw water by means of pipelines and a tunnel from Pahang to Selangor as well as the Federal Territory of Kuala Lumpur and subsequently to Negeri Sembilan.


The communications and multimedia industry will provide world-class services at competitive rates to meet the challenges of global competition. The Communications and Multimedia Act, 1998 will facilitate the introduction of new services using new technologies through a more liberal licensing regime that is technology-neutral and service-neutral. In this regard, most e-commerce activities such as web hosting, internet content, electronic transaction and private

network services are exempt from licensing by the Commission. The Act also provides increasing self-regulation by the industry to enable operators to respond quickly to competitive pressures and focus on productivity and efficiency. The Government will develop key performance indicators to monitor performance and set broad guidelines such as fair competition to protect and promote consumer interest as well as ensure social objectives are met. The private sector will have to be innovative and creative to provide new and differentiated services, especially in niche markets where customization and specialization will command a premium.

The Communications and Multimedia Commission will oversee the implementation of the USP plan including setting targets and time-table for the roll-out of communications infrastructure, the standard of service and its delivery. The rural penetration rate is thus expected to increase to 17.5 telephones per 100 populations in 2005 and the national penetration rate to 27.0. This will involve the installation of 423,800 new lines and 88,760 public telephones in the rural areas. A total of RM2.1 billion is expected to be invested to achieve the USP target, with the majority of funding by the private sector through contributions to the USP Fund. Cellular phone penetration is forecasted to be 38 per 100 population in 2005, spurred by its convenience, competitive pricing and computing capability.


The Government will continue to provide a substantial allocation for infrastructure and utilities development. As shown in Table 10-8, a total of RM27 billion will be allocated by the Government, with RM14.0 billion for roads, RM4.1 billion for rail and RM4.0 billion for water supply. Investments by the private sector amounting to RM3.5 billion on roads will complement the Government's allocation for this subsector. This substantial investment in infrastructure and utilities projects will further improve the transport network as well as the availability and reliability of public utilities.



(RM million)


Allocation Expenditure Allocation

Transport 20,913.1 20,484.2 21,222.1

Roads1 12,429.9 12,269.5 14,002.6

Urban Transport 404.2 404.0 705.6

Rail 5,450.3 5,450.3 4,081.0

Ports 1,157.4 1,089.2 1,500.0

Airports 1,471.3 1,271.2 932.9

Utilities 3,445.3 3,048.0 5,549.9

Water Supply 2,776.8 2,382.7 3,966.3

Sewerage 668.5 665.3 1,583.6

Communications 51.0 39.6 228.0

Communications & Posts 10.2 4.1 146.7

Meteorological Services 40.8 35.5 81.3

Total 24,409.4 23,571.8 27,000.0

Note: 1 Excludes localized roads in regional development areas, some local authorities and agricultural roads.

Housing Plan


The manufacturing sector plays a vital role in the urbanization process as it not only

consumes large tracts of land but also acts as a major source of employment. For decades

the government has been active in marketing the country as heaven for foreign

investment. The manufacturing sector is growing at a fast rate contributing to 6.3% of the

GDP growth in 2000 out of a total of 8.3%. The efforts to promote manufacturing

especially in the capital intensive industry is relentless as manifested in the commitment

of the government to leap frog in the IT sector. This is perceived to be a very high value

added activity that will spur the development of higher quality urban environment. The

trend was established between 1970 and 1988 when there was a major shift in

employment from the primary to the secondary sector, particularly in the manufacturing

and the construction. The share of employment increased from 9 per cent in 1970 to 16

per cent in 1980, primarily in the labour-intensive electronics and textiles industries. With

this structural change in the economy the urban landscape took a drastic change where

formal housing development escalated.

The development and modernization of infrastructure also has positive impacts on the

urbanization and housing development. With the completion of the North-south highway

in1994, vast acres of land which were initially inaccessible had become potential areas

for urbanization. A classic example is the completion of the Second crossing between the

southern tip of the peninsula Malaysia and Singapore. Approximately 20,000 acres have

been earmarked and are currently under development together with the new port of

Tanjung Pelepas. The move by Mearsk Sealand to transfer its regional shipping activities

from Singapore to PTP last year also created a positive stimulus to the urban expansion to

the undeveloped south-western seaboard of the peninsula. Similarly with the completion

of the new Kuala Lumpur International Airport, thousands of acres of undeveloped

landing its vicinity have been opened for urbanization. The challenge for the government

now is to ensure that these new developments will eventually caters for future needs and

aspirations of the population in terms of human comfort and sustainability.

To meet these challenges the government has been adhering to the national housing

policy, which is to ensure that all Malaysians, particularly the low income groups, have

access to adequate and affordable shelter and related facilities. It is translated through

housing programmes and strategies set out in the country's development plan. It also

emphasises the human settlement philosophy through the provision of social services and

amenities as well as economic activities necessary for the attainment of a better quality of

life, national integration and unity.

The progress of housing is closely monitored by the Ministry of Housing and local

government which also issues guidelines and follows recent world trends and

development. Through the Town and Country Planning Act 1976, it provides the policies

and framework for urban planning by considering land allocation, population density,

layout plans and overall physical development. The Ministry also enforces its policies

through various other Acts such as Local Government Act 1976; Street, Drainage and

Building Act 1974; Town Planning Act 1995; Housing Developers (Control and

Licensing) Act 1966; Strata Tittles Act 1985; Fire Services Act 1988 and Sewerage

Services Act 1993.

Responding to the new challenges developers, architects and planners are compelled to

explore innovative typologies in developing housing products. The typologies include

generous public and landscaped areas for recreational and relaxation of the inhabitants.

Modern houses are sensitively anointed with landscaping. Smart homes are now being

developed in tandem with the increasing application of IT. Houses can be wired to enable

networking to the main telecommunication system and automated to receive commands

from the occupants. The pressure of urbanization has been brought about by the

increasing number of population who are urbanised. In 1991, the population was recorded

as 17.6 million with 50.6% as urban population. Accordingly, the population growth

rates during these two inter-censal periods were recorded as 2.3% and 2.2%

respectively. Now the population stands at over 23 million. It is expected that by 2020

the population is forecasted to reach 32 million with 65% urbanised. With this trend the

National Population Policy for the attainment of 70 million people by the year 2100 will

be achieved, adding to the pressures of urbanization.

The national housing stock registered substantial growth from 1970 with 1.97 million

living quarters to 2.64 million in 1980 and to 4.09 million in 1991, recording annual

growth rates of 2.9% and 4.4% during the two decennial periods. These houses

were delivered by the various government agencies, private licensed

developers, individuals, estates and mines, cooperative societies and private

companies. The National Housing Department, land development agencies, State

economic development agencies and Government departments such as defence, education

and the police, are also involved in housing delivery activities via various

programmes. Rapid expansion in the housing development was experienced during the

3rd Plan period, but declined during the 4th and 5th Plans period when the economy was

poor. The public sector delivered 190,045 units of houses out of a target of 398,570 units

while the private sector delivered 201,933 units out of a target of 524,730 units. During

the 7th Plan period, total of 859,480 units of houses were constructed by both the private

and public sectors out of a target of 800,000 units. The economic crisis which

started in July 1997 impaired the property sector badly which resulted in a large overhang

of unsold units. Innovative marketing and incentives were devised by the private

developers and the government to boost sales through the Malaysian property exposition

every year. The demand for low cost and medium cost houses remains strong. Low cost

houses are those priced at not more than RM25,000.00, with three bedrooms,

living/dining room, bathroom and kitchen. In 2001, the government allocated

RM150,712,900.00 to develop 27,579 units of low cost houses in 97 projects.

In the Eighth Malaysia Plan(2001-2005) a total of 615,000 units of houses have been

planned. Of these, 232,000 are low cost, 131,000 are medium-low cost, 110,700 are

medium cost and 125,000 high cost (RM250,000.00 and above)(Table 2). Based on the

current state of the economy these targets are expected to be met comfortably.

The recently announced Budget 2002 allocated an amount of RM1.82billion which will

with the focus on building quarters for the police, armed forces and civil servants;

housing for the poor; and relocation of squatters. In addition, the government announced

the revival of several projects which were shelved. These include the double track rail

lines which will form part of the pan-Asian railway from Kunming in China through

southern Yunnan, and into IndoChina and right down to Singapore, Bakun hydroelectric

dam and the second Penang bridge.

Housing Development

For the Eighth Malaysia Plan (2001-2005) the government will continue to emphasize on it role to ensure that all Malaysians particularly the low-cost groups have access to adequate and affordable housing and related facilities.Table 7 shows the proposed housing target for the 8th Malaysia Plan. A total of 615,000 units of houses have been targetted to be built during this period of which 312,000 units or 50.73% are to be delivered by the public sector and 303,000 or 49.27% by the private sector. 248,000 units (or 40.33% of total target) of low-cost are projected to be built of which the majority or 83.87% are to be built by the public sector and another 16.13% by the private sector. The emphasis on low-cost housing during this period reflects the government's commitment to provide affordable housing for the low-income groups. To achieve

the targets projected, a number of measures will be introduced such as the implementation of modular coordination concept to improve the quality of housing and reduce costs in production of mass housing. Another method is by introducing factory-made building components such as prefabricated system to speed up production of low-cost units and the introduction of the open industrialised building system in housing industry to make housing construction system more flexible and replacement of parts less troublesome. An Integrated National Housing Policy will also be formulated under the 8th Malaysia Plan to guide the process of housing development more effectively and respond more adequately to the growing housing needs of the nation.

The concept of sustainable cities is sustainable development where the community's development needs are met without imposing unsustainable demands on local or global natural resources and systems. The central focus on sustainable cities will be the improvement of housing, living and working environment where people can have access to all social amenities and supporting infrastructures. To prepare for sustainable cities, city planners have to depend on public participation in order to ensure quality living environment through master plan preparation. At present, planning is done by urban planners without much consultation with the people. Planning cannot be accomplished by planners operating in a vacuum. Improving quality of living environment requires the active participation of various groups in society. It requires the active participation of property owners, bankers, developers, architects, engineers, contractors, and others involved in real estates. It then requires the sanction of community groups, civic organizations, elected and appointed public officials, and municipal employees. Planning after all is about change, preventing undesirable change and bringing desirable one. Thus, the scope can be broadened and the process to gear for greater transparency with the mechanism to obtain feedback from public needs to be reviewed and positive values in new developments incorporated to ensure quality living environment. In line with this, MHLG has been consulting the relevant parties to ensure their views and interests are taken into consideration.

9th Malaysia Plan


RM28.6 bil savings from privatisation

RM10 bil for Iskandar Region Development Authority (IRDA)

RM3.5 bil for building and upgrading rural roads

RM2 bil for biotechnology (physical and soft infrastructures)

RM1 bil for upgrading and extension of KKIA, second low cost hub for Malaysia

Second bridge and monorail for Penang island

Additional runway and satellite building for KLIA

Double tracking at selected priority stretches

An upgraded works of Pasir Gudang Highway and the construction of JB Eastern Dispersal Link.

RM 143 mil quarters in remote areas of Sabah & Sarawak

Universities for the states of Terengganu and Kelantan

180 primary, 229 secondary and full boarding schools to be built

RM 10 billion for corridor initiatives

RM 2 billion for Sabah and Sarawak development

RM 2 billion for double tracking rail projects between Ipoh and Padang Besar and Seremban and Gemas

RM 2 billion for additional rural infrastructure

RM 1.6 billion for public transportation

Table 17.2: Approved Projects for the Ninth Malaysia Plan in SJER


Ninth Malaysia Plan allocation (RM million)

Upgrading of JB-Kota Tinggi / Pasir Gudang Interchange


Skudai Interchange


Inner Ring Road Interchange


Rail track to PTP


Upgrading of Perling Interchange


2nd Permas Jaya Interchange


Senai Interchange


Road to Nusajaya from Second Link


Two interchanges in Jalan Tampoi


Upgrading of Jalan Tampoi


Upgrading of Ulu Tiram-Kota Tinggi Road


Bridge from Tg Pelepas to Tg Bin (Study only)


Senai-Desaru Highway Land Acquisition


Senai Airport Infrastructure


River Cleaning (Sg Seget, Skudai, Tebrau)


Security (police stations etc)


Coastal Highway (land acquisition)


Traffi c Dispersal (Interchanges)l


Senai Skudai Highway




Traffic dispersal (upgrading, etc)


Total Approved


Infrastructure expansion plans

The current horizon for the development of infrastructure in Malaysia is the Ninth Malaysia Plan period of 2006-2010. There are no development plans for infrastructure beyond 2010. During the Ninth Malaysia Plan public sector investment in infrastructure is projected to be RM41.6 billion, an increase of about 15 per cent over the RM36.2 billion invested during the Eighth Malaysia Plan. Private sector resources will supplement public sector investment in infrastructure. How much the private sector will invest in infrastructure during the Ninth Plan period up to 2010 cannot be ascertained but going by past experience the amount of private sector investment in infrastructure will almost certainly exceed the RM41.6 billion to be spent by the Government. Even though the total investment in infrastructure up to 2010, inclusive of investment by the private sector, is not known, indications are that capacity expansion and sector modernization will continue unabated. There will also be some important changes in priorities. The following highlight the expected growth and development of infrastructure up to 2010.


Roads are the primary mode of domestic transport, accounting for well over nine-tenths of all passenger and freight traffic in the country. Although no details are available on the road expansion plans of the Government up to 2010 the road network will, as during other Plans, grow substantially in the course of the Ninth Malaysia Plan. The inter-urban roads in the more developed parts of the country would, wherever it is deemed financially feasible, be developed by the private sector. The Government in turn will concentrate on the development of rural roads and construct roads to link the less developed parts of the country to the main network of inter urban highways.


After a long period of limited investment in KTMB, the inter-city railway operator in Peninsular Malaysia, its infrastructure is now being expanded and modernized. Specifically, a programme to double-track and electrify the entire west coast line of KTMB is underway. Upon completion KTMB will be in a much better position to compete for passenger and freight traffic along the most important transport corridor in the country. Similarly, the improvements underway to the small Sabah Railways will allow it to play a bigger role in its hinterland. The introduction of rail systems in the capital city of Kuala Lumpur in the 1990s and the planned expansion of the network as well as new systems in other urban conurbations in the country suggest an important shift in the Government's urban transport policy. In an area long dominated by road transport, there are now clear indications that rail will play a more important role in the development of public transport facilities in the larger cities in the country.


No new ports are being planned in the country under the Ninth Plan. The focus will be on the expansion and modernization of existing ports, especially those catering to the country's foreign trade and mainline operators. There will be substantial investment in the expansion of terminals, most of which will be financed by the private sector. The cargo handling capacity of Malaysian ports is expected to increase from 443.3 million tonnes in 2005 to 570.0 million tonnes at the end of the Ninth Malaysia Plan in 2010. This is a 28.6 per cent increase within a five-year period. The importance of the external sector to the economy is clearly reflected in the projected growth of the ports sector.


The growth in the telecommunications sector will be in the cellular and internet segments. Cellular subscriptions are expected to increase from 19.5 million to 24.4 million between 2005 and 2010, raising the penetration rate of cellular phones in the country from 74.1 per cent to 85.0 per cent. Subscriptions to the internet are expected to increase rapidly. Dial-up subscriptions are projected to increase from 3.7 million in 2005 to 10.0 million in 2010, the penetration rate thus going up from 13.9 per cent to 35.0 per cent. Internet broadband subscriptions are forecasted to increase seven-fold within five years from 0.5 million subscriptions in 2005 to 3.7 million subscriptions in2010.


Electricity generation capacity of the country is projected to increase by 31.4 per cent from 19,217 MW in 2005 to 25,258 MW in 2010. Substantial improvements are also expected in rural electrification coverage. Nation-wide the rural electrification coverage, already high at 92.9 per cent, is forecasted to increase to 95.1 per cent. Sabah and Sarawak, which have the lowest rural electrification coverage rates, will see significant improvements. In the case of Sabah the percentage will increase from 72.8 per cent in 2005 to 80.6 per cent in 2010. In Sarawak rural coverage is planned to improve from 80.8 per cent to 89.6 per cent between 2005 and 2010.

Water sector

Water supply is already quite well developed in Malaysia. Water supply coverage is projected to further increase from 95.0 per cent in 2005 to 96.8 per cent in 2010. The rural areas will see big improvement in water supply coverage, from 92.0 per cent in 2005 to 95.2 per cent in 2010.

Housing Development

RM 690 mil for teachers' accommodation or housing quarters

RM 1 billion for low-cost and medium-cost housing

Constructing low-cost houses

32,000 units of low-cost houses built

3,702 units built under Program Perumahan Rakyat (PPR) Dimiliki with

Government subsidy of RM129.6 million

Housing and Urban Services

The public sector housing programme will continue to focus on the provision of adequate, quality and affordable houses for all, particularly the low- and low-middle income groups. The implementation of the low-cost housing programme will be expedited with the construction of an additional 18,500 units under the PPR for rental scheme. In addition, 12,300 units of affordable houses under the Rumah Mampu Milik programme will be built by 2010. Efforts will also be undertaken to provide low-cost housing areas with adequate facilities and amenities to provide a pleasant living environment. In the case of long houses in Sabah and Sarawak, the PPR scheme will be adapted to produce appropriate house designs, taking into account prevailing ownership practices. Steps will also be taken to promote ownership by expanding rent-to-buy schemes. The identification of qualified applicants for low-cost houses will be improved with the integration of the database for registration and distribution of low-cost houses at the Federal and state levels. Greater efforts will be taken to promote the use of the Industrialized Building System (IBS) in the construction of affordable homes. Rapid urbanization continues to increase the demand for housing, public amenities and infrastructure, posing greater challenges to local authorities. In this regard, local authorities will have to depart from the routine provision of services and improve upon the delivery of required services. Measures will continue to be taken to strengthen the capacity and management capability of local authorities. As community involvement is crucial to good governance especially at the local level, the formation of partnerships between local authorities and communities will continue to be encouraged, including through the Local Agenda 21 programme. The coming into enforcement of the Solid

Waste and Public Cleansing Management Act and the Solid Waste and Public Cleansing Management Corporation Act, will enable the Government to implement, among others, more cost-effective and efficient schemes for the collection, transportation and disposal of solid waste. Programmes and activities will be intensified to close dumping sites or upgrade them to sanitary landfills. In addition, solid waste management will be further improved through greater

use of material recovery technologies and emphasis on the waste to wealth concept, including the expansion of waste minimization and recycling schemes. Additional incentives to encourage waste minimization and promote recycling activities will be introduced.

Electricity Supply

Access to electricity supply, especially in rural areas of Sabah and Sarawak will be expanded to improve the quality of life of rural communities. The increasing cost of supplying electricity to rural areas will be addressed by adopting cost-effective modes of supply, such as solar hybrid,

micro-hydro and micro-wind turbine. To enable better planning of the programme and assessment of outcomes, database on the rural community will be improved. Implementation and coordinate ion mechanism will be further strengthened to expedite supply of electricity to rural areas. Community involvement will also be enhanced to ensure sustainability of the programme. By the end of the plan period, rural electricity coverage in Sabah and Sarawak is expected to increase to 82.6% and 93.2%, respectively.

Water Supply and Sewerage

Coverage of water supply in remote areas will be expanded with the implementation of more gravity flows, tube wells and rain water harvesting system through the rural water supply programme. Rural water coverage is expected to increase to 70% in Sabah and 95% in Sarawak by 2010. Water supply services will focus on expanding and upgrading the supply system and rehabilitation programmes to reduce non-revenue water. Emphasis will be placed on raising the quality of water to meet international standards. In line with the restructuring of the water services industry, corporatisation exercise for the remaining states of Kedah, Pahang,

Perak, Perlis and WP Labuan will be implemented, while the establishment of the state water regulatory body will be expedited. The sewerage system in highly populated areas, especially in the Klang Valley, will be improved to enhance public health, safeguard the environment and reduce water pollution. Priority will be given to the rationalization and centralization of the sewerage networks, as well as upgrading of treatment plants. The implementation of a joint billing system by Suruhanjaya Perkhidmatan Air Negara (SPAN) will be pursued towards improving sewage bill collection.

Transport System and Road Safety

The rural road network will continue to be expanded to meet the inadequate coverage, especially in Sabah and Sarawak. A study is being undertaken to identify additional road requirements to improve the road network and accessibility in these two states. Meanwhile, other road developments will include the East Coast Highway Phase II from Kuantan to Kuala Terengganu and the Senai-Desaru Highway. Traffic congestion continues to be a challenge in major cities and urban centres. The insufficient road space to cope with the rapidly increasing number of private vehicles and inadequate public transport services will be addressed systematically. Efforts such as increasing coverage of the urban rail transit system and building

more integrated transport terminals as well as improving the efficiency of the Commuter, bus and taxi services will be undertaken to achieve the target ratio of private vehicles to public transport of 70:30 by 2010, particularly in the Klang Valley. The development of various transport infrastructure will also take into consideration providing greater accessibility and more convenient public transport facilities to PWDs. A public transport commission will be established to plan and coordinate all public transport programmes and initiatives. The commission will also be responsible for regulating the public transport sector and develop a more efficient and integrated public transport system. The coverage of the Komuter service will be extended with the completion of the Sentul-Batu Caves electrified double tracking rail project, benefitting

approximately 8,800 commuters per day. The Light Rail Transit (LRT) Kelana Jaya Line will be extended from Kelana Jaya to Putra Heights while the Ampang Line from Sri Petaling to Putra Heights. Connectivity will be provided at Putra Heights by an interchange station for both lines.

Despite the increased number of road safety campaigns, road accidents and fatalities remain high. Measures will be undertaken to reduce road fatality rates from 3.7 in 2007 to 3.0 per 10,000 registered vehicles by 2010. Among others, these will include rehabilitation of accident-prone spots and increasing safety features of roads. The growth of low-cost air services has enhanced air travel opportunities as well as fostered greater travel between different parts of the country. The upgrading of the low-cost carrier (LCC) terminal at the KL International Airport will increase its capacity and enhance the efficiency of low-cost air services. Rural air services

will be expanded to improve access to remote areas in Sabah and Sarawak. Further improvement of the LCC terminals will enable expansion of facilities and provide greater access to low-cost travel to a larger segment of the population. Inland water transport is an alternative, cost effective and environmentally sustainable mode of transport in remote areas. To expand the riverine and coastal transport system in Sarawak, a master plan will be drawn up. Meanwhile, construction of new jetties and upgrading of existing ones will be undertaken to enhance mobility of the rural population.


To achieve the National Mission during the Ninth Malaysian Plan, the Federal Government will allocate a total of RM200 billion for development expenditure, an increase of RM30 billion from the Eighth Malaysia Plan. Furthermore, projects worth RM20 billion will be implemented through the private finance initiative. Out of the total allocation, 44.9 percent will be distributed to development projects under the economic sector; 37.5 percent for the social sector; 10.6 percent for security and 6.9 percent for general administration. For the sub-sectors, education and training will receive the biggest percentage of the allocation, at 20,6 percent, in line with the Government's resolve to enhance the human capital quality. Public transportation sector's allocation is 15.9 percent; energy and public facilities, 10.9 percent; trade and industries, 9.9 percent; agriculture, 5.7 percent; health, 5.4 percent; and housing, 5.0 percent. For development allocation by state, we have taken into consideration the need to reduce

the development gap between states and between regions. The Government is confident that the allocation is adequate to give effect to the intention and objectives of the Plan.