Business

Thursday July 17, 2008 MYT 3:00:55 PM

LPG-using industries want govt rebate

By JACK WONG


KUCHING: Manufacturers in Sarawak want the federal government to give a 50% rebate to industries that use liquified petroleum gas (LPG).

Federation of Malaysian Manufacturers (FMM) Sarawak branch vice-chairman Michael Hii said such a rebate was justified as these industries had no access to natural gas, even though Sarawak was a producer. “Industries in Sarawak have to rely on LPG which is 3.5 times more expensive than natural gas.

“Natural gas is priced at RM23.8 per mmmbtu (million British thermal unit) compared with LPG’s RM82 mmmbtu,” he said during a dialogue with International Trade and Industry Minister Tan Sri Muhyiddin Yassin at the Kuching Hilton on Thursday.

In reply, Muhyiddin said although it was “quite funny” that industries in a natural gas producing state did not have access to natural gas, a long-term plan had to be worked out to resolve this serious matter.

He said as industries in the state were not concentrated in one area but spread out in different towns, the main concern was the high cost to build pipelines to distribute natural gas.

Muhyiddin said the construction of these gas pipelines would involve a big investment, and asked the Economic Planning Unit to study the request.

  • E-mail this story
  • Print this story