Business

Saturday October 18, 2008

Khazanah warns of power shortage in Malaysia by 2012


KUALA LUMPUR: There are “structural problems” with Malaysia’s electricity industry that may result in a shortage of supply by 2011 or 2012.

Government investment agency Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar said the whole industry structure needed to be reviewed.

“Otherwise it will become a time bomb. By 2011 or 2012 there is going to be a shortage,” he told reporters after attending a session of the Regional Eisenhower Fellowship Conference yesterday.

Azman said Khazanah had begun its own study of the electricity sector to be submitted to the Government, but declined to give a timeframe.

Tan Sri Azman Mokhtar

According to Azman, the Government — through the Economic Planning Unit — was also conducting a study on the country’s power supply system.

The structural problems could also result in the possible collapse of national electricity utility Tenaga Nasional Bhd, Azman said.

The industry was at present very imbalanced, and so was not sustainable, he said, adding: “We are not targeting any sector of the industry but I believe it is in everyone’s interest to make the industry sustainable.”

Meanwhile, Bernama reported CIMB Group chief executive officer Datuk Seri Nazir Razak at the same conference yesterday as saying that South-East Asian businesses should be well equipped to make fast decisions and grab opportunities arising from the current financial cirsis.

Bernama also reported AirAsia Bhd chief executive officer Datuk Seri Tony Fernandes as telling reporters after attending a session at the conference that AirAsia might cut its fuel surcharge further if there was some stability in the slide of oil price and the movement of the ringgit.

“I think it (surcharge cut) is possible. We are working on it. We will announce within the next few weeks,” Fernandes was quoted as saying.

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