Malaysia’s journey from anagrarian to a regional eco-nomic powerhouse can beregarded as one of themost amazing and spectac-

ular stories of the current century. A nation,which in the 60s was totally dependent onagriculture, has today become an export-driven economy spurred on by high tech-nology, knowledge-based and capital-intensive industries.

Observes Dato’Ahmad Pardas Senin,MD & CEO of UEM Group Berhad,Malaysia’s leading conglomerate on theturnaround of Malaysia, “During the 1960s,agricultural products formed the bulk ofMalaysian exports, and Malaysia’s primari-ly agrarian economy eventually evolved sothat by 1970, the industrial sector had sur-passed the agricultural sector and by the1980s, it had overtaken the service sector”.

The country did receive a bit of a setbackin 1997 as the economic and financial criseswhich hit many countries in the Asia Pacificregion also badly affected the Malaysianeconomy. It resulted in a currency crisis andstock market crash in Malaysia. However,within less than two years, helped by selec-tive exchange controls and the pegging ofthe Ringgit, Malaysia bounced back andwent on track towards economic recovery.

Malaysia is now an open trading econo-my participating in an extremely competi-tive and fast-moving global market place.The continuous enhancement of knowl-edge, skills, technology and innovation areamong the most important prerequisites inmeeting the challenges of the 21st century,says Dato’ Senin.

The driving forceThe country owes its current standing toTun Dr. Mahathir bin Mohamad , the for-mer Prime Minister of Malaysia. Mahathiris credited with spearheading the phenomenal growth of theMalaysian economy.Growth between1988 and 1997 averaged

over ten percent and living standards rosetwentyfold, with poverty almost eradicatedand social indicators such as literacy levelsand infant mortality rates becoming on parwith developed countries.

Mahatir’s 22-year tenure transformedMalaysia into a regional high-tech manufac-turing, financial, and telecommunicationshub through his economic policies based oncorporate nationalism, known as the vari-ous “Malaysia Plans”. During his term var-ious large scale national projects were exe-cuted such as the North-South Expressway,the Multimedia Super Corridor, KualaLumpur International Airport (KLIA),Sepang Formula One circuit, Bukit Jalil sta-dium and Petronas Twin Towers.

IT is all hereNot be left behind, the launch of theMultimedia Super Corridor propelled thecountry into the Information Age through aseries of specific initiatives. The MSC , mod-eled on the lines of Silicon Valley, bringstogether a legislative framework and anext-generation telecommunicationsinfrastructure in eco-friendly surroundings to create the bestenvironment for the development of multi-media industries.

Comments Sandip Das, CEO, telecommajor Maxis Communications Berhad, “The government of Malaysia is verydynamic, clear headed and focussed in itshigh technology ambitions. That’s a greatcatalyst for modernisation. Plans such asdevelopment of the MSC (MultimediaSuper Corridor), National Broadband Planand specific budget allocation for ICT in the9th Malaysia Plan and MyICMS886 (a five-year national ICT blueprint outliningindustry-driven initiatives) are initiativesthat will catapult Malaysia into an informa-tion technology superpower”

The preferred destination Malaysia’s rapid industrialization was theresult of the country opening itself relative-ly early in the 1960s to foreign directinvestments (FI). Today, its market-oriented economy,combined with an e d u c a t e d

multilingual workforce and a well-devel-oped infrastructure, has made Malaysiaone of the largest recipients of FI amongdeveloping countries. Malaysia wasranked the sixth most competitive econo-my in Asia, after Singapore, Japan, HongKong, Taiwan and South Korea; and 26thworldwide based on the recently-released Global Competitive- ness Index,covering 125 countries.

Visit Malaysia 2007The Malaysian success story is incompletewithout one of its pillars– tourism. It isMalaysia’s second-largest source of foreignincome after manufacturing raking in closeto USD 8 billion from approx. 15.7 millionvisitors in 2005. The government hopes toattract 20 million this year – designated asVisit Malaysia Year 2007 or Tahun MelawatMalaysia 2007. The country boasts of anexciting year-round calendar of world classand unique local events, ensuring visitorshave endless opportunities to enjoy nature-based adventures, enriching cultural expe-riences or fabulous shopping sprees.

August 31, 2007

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On the MoveOn the MoveOn the Move

THE FINANCIAL EXPRESS

(AHMEDABAD, BANGALORE,CHANDIGARH, CHENNAI,

HYDERABAD, KOCHI, KOLKATA,MUMBAI, NEW DELHI & PUNE)

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OOppttiimmiissttiicc ffuuttuurreeWith the economies of both the countries booming, business prospects are looking good.

UUsshheerriinngg iinn tthhee tteelleeccoomm rreevvoolluuttiioonnThe Indian telecom market is attractinghuge investments, and Maxis is in no moodto be left out.

GGaatteewwaayy ttoo MMaallaayyssiiaaWestports is playing a major role in connect-ing Malaysia to the rest of the world.

PPaarrttnneerr iinn NNaattiioonn BBuuiillddiinnggThe Malaysian infrastructure major, UEMGroup is gearing to make inroads in India.

SSuunnrriissee sseeccttoorrBiotechnology has been identified as a keydriver in the Malaysian economic development.

SSpprreeaaddiinngg iittss wwiinnggssMalaysian palm oil industry is on a high. Thenumber one exporter, MPOC is targetting newpastures.

From an agrarian economy in the 60's to a high technology andknowledge driven economy, Malaysia has come a long way

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2

Setting up shop in Malaysia in 1964 Kirloskar has for the past 43 yearsbeen associated with the people of Malaysia in serving and supportingvarious industries.

Kirloskar Electric Co. enjoys a long, rich and a very special relationshipwith the people of Malaysia. Kirloskar Electric Co. is one among very fewIndian companies that ventured into Malaysia as early as 1964. Since thenKirloskar Electric engineers associated with the people of Malaysia in serv-ing and supporting various industries.

Kirloskar Electric participated in building up of various water treatmentplants and other utilities by supporting technically and in supply of variousengioneering equipments like Motors, Transformers, Pumps etc. There arehardly any water supply schemes where Kirloskar products are not there.To name a few, Langkawi WSS, Pelubang WSS, Sungai Langat WSS,Genting Highlands Pumping stations, and many more.

Kirloskar Electric continuosly giving the value addition in training manyMalaysian engineers in Indian plants thus imparting the technical knowledge.

Forty Seven years of association with a strong customer oriented & appli-cation oriented approach and with the continuous technical support result-ed a strong and upper hand in gaining confidence of Malaysian engineersin the core sector industries like Cement, Steel, Water works Etc. With this,today Kirloskar Electric enjoys a broad base of customers in Malaysia.

Back home in India, Kirloskar Electricis one of the largest manufacturer ofElectrical equipments having its corpo-rate office and the main plant located inBangalore. The range offers a diversifiedgamut of products for light to heavyengineering applications. The productsincludes AC Machines, DC Machines,Transformers, AC & DC drives andswitch gears etc.having a very broadspectrum of customers in every applica-tion in core sector industry and utilities.

The driving force of the company, MrVijay R Kirloskar (CMD) says, “To neversay no to a good full blooded challengethrown your way” and “The power ofnow is writing the charter of tomorrow,as we leap from challenge to challenge”.

It is this approach and attitudeinplanted in the team that has led toenviable and growing customeres thatreads like the Fortune 500 of the world.

UCO BANK has a rich history of its own. Since the day it had comeinto being - and that was sixty three years ago - it has achieved sev-eral notable successes. It has survived many difficult periods. The

year 1985 opened a new chapter for United Commercial Bank. The name ofthe bank was changed to UCO BANK by an act of parliament in December1985. It has enjoyed the leadership of eminent personalities from industryand financial services and over these years it has grown into a bank withtruly a national character and international presence.

It operates in Hong Kong, Singapore and has Correspondents / Agencyarrangements all over the world. It undertakes Foreign Exchange Businessin more than 50 Centers in India and has Foreign Exchange DealingOperations at 4 Centers.

Buoyed by the overall sound growth in its business, UCO Bank has set its

eyes on overseas branch expansion and as a first step in the direction,opened its Representative Office in Kuala Lumpur, Malaysia on 3rd October2005. In a way, opening of Representative Office in Malaysia is as good asre-opening the office once again as UCO Bank was once operating with 3branches and had to close down its operations with effect from 1973 due topolicy guidelines by Government of Malaysia which restricted operation ofGovernment owned Banks of other countries in Malaysia. The Bank is alsoin the process of opening its Representative Office in Guangzhou, Chinaduring the current year.

Larsen & Toubro Limited (L&T) is a USD 5.0 Billion technology-drivenengineering and construction organisation, and one of the largestcompanies in India’s private sector. It has additional interests in man-

ufacturing, services and information technology.A strong, customer focused approach and the constant quests for top-

class quality have enabled the company to attain and sustain leadership inits major lines of business across sevendecades. Today, the company has a glob-al spread of offices, joint ventures,agents with encompassing more than 40countries.

L&T started its operations inMalaysia, way back in 1987. L&T’s ini-tial foray was undertaking the projectsawarded by the Malaysian governmentto Indian companies on a counter-tradebasis. The local company in Malaysiawas registered in the year 1996. In thepast the company was mainly involvedin construction of Bridges, Transmissiontowers and Oil & Gas Projects ofPETRONAS. Over the years, L&T hassupplied critical Process Equipments,Switchgears, Industrial Valves, Rubber& Plastic Processing Machineries andWelding products to Malaysia.

Presently, L&T is executing a USD347 Million Lube Oil Refinery Project for

Petronas at Melaka in consortium with Frankfurt – based Lurgi AG and aMalaysian Construction Company, KQKS. It is also executing an informa-tion technology (IT) project for Infineon Technologies at Kulim, Malaysia.

Already, it has formed a USD 100 Million joint venture (JV) with SapuraCrest Petroleum Bhd of Malaysia for derrick cum pipe laying barge onBuild, Own and Operate basis. The venture will add a new dimension to theexisting EPC capabilities by bringing in the vital – ‘Offshore Installation’capability which was a missing link so far. The barge is expected to be oper-ational before mid 2009.

The Malaysian centre is now being developed as a hub for its S.E. Asianoperations. L&T is focussed on developing Malaysia as one of the procure-ment hubs for its turnkey projects. It is actively participating in thePETRONAS Vendor Development Programme (VDP).

In future the company is focussed on engineering & construction in oil &gas projects, railways and infrastructure projects.

These successes overseas only underscore the actuality that Indian engineering companies are making their presence felt globally.

Kirloskar Electric

The Iskandar Development Region(IDR), which was officially launchedby His Royal Highness the Sultan of

Johor in November 2006, is set to becomeSouthern Peninsular Malaysia’s most devel-oped region, where living, entertainment,environment and business seamlessly con-verge within a bustling & vibrant metropolis.

The proposed Iskandar DevelopmentRegion is to be a special economic zone locat-ed in Johor, the southern most state ofMalaysia. The proposed IDR is envisaged tocover the logistic triangle of Senai Airport tothe North, Port of Tanjung Pelepas (SouthWest) and Johor Port in Pasir Gudang (SouthEast), encompassing an area of 2217 sq Km.The proposed area has excellent linksthrough the North-South Expressway, road

and rail links to Singapore, air links and sealinks to Indonesia, and the Asian region.

The development of the proposed IDRwould enable the South Johor region to capi-talize on its strategic location and proximityto some of the world’s most rapidly growingand important economies. Furthermore, theproposed IDR is intended to minimise sever-al key risks that has hampered regionaldevelopment in the past, including uncoordi-nated and duplicative development, exces-sive private value capture and potential mar-ginalisation of the local population.

IDR is only six to eight hours flight radiusfrom Asia’s burgeoning growth centers suchas Bangalore, Dubai, Hong Kong Seoul,Shanghai, Taipei and Tokyo. It is also withinreach of a global market of 800 million.

IDR aims to be a sustainable region ofinternational standard. The beacon of newgrowth, IDR will spur economic develop-ments that actuate Malaysia’s global poten-tial. Recognising the need for sustainabledevelopment, social and environmentalissues features heavily on its agenda. IDR’scommitment to these causes are evident in itsmanifestation within the IDR Masterplan.

IDR is the ideal place to do business withinthe Johor-Singapore-Indonesia (JSI) Triangle.It offers state-of-the-art physical infrastruc-ture and a world-class business environmentlike excellent logistical facilities, cyber cities,and central business administration. SouthJohor as a whole complements Singapore’sgrowth strategy with an environment thatprovides an alternative “quality of life” that is

not readily available in the Island State.Recognising South Johor’s strategic impor-

tance to national development, the FederalGovernment supports the State in respect ofplanning, implementation, coordination, con-trol, management, finance and promotion toensure the success of the IskandarDevelopment Region.

Development will be initially focused inconcentric circles in the waterfront areasaround Johor Bahru and Nusajaya, and thelogistics centres of Port of Tanjung Pelepas,Pasir Gudang and Senai Airport (please referto map above). IDR’s unique ecological beau-ty and location of being near the southern tipof the Asian continent with easy access tologistics facilities makes it suitable for a glob-al rim city to be developed within.

New Jewelin the Crown

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INDIA INC IN MALAYSIA

IDR is being developed as the ideal place to do businesswithin the Johor-Singapore-Indonesia (JSI) Triangle

MMeessssaaggeeOn behalf of the

people andGovernment of

India, I extend warm greet-ings and felicitations to thepeople and Government ofMalaysia on the 50thanniversary of Malaysia's.Independence. lt is ahappy coincidence that theyear 2007 also marks the50th anniversary year ofdiplomatic relationsbetween India andMalaysia. India-Malaysiarelations epitomize bondsof friendship that are over1500 years old.

In the last fifty years, ourtraditional linkages have

been strengthened and diversified into a vibrant and robust rela-tionship. Malaysia, like India, is a multi-religious, multi-culturaland multi-lingual society. Malaysia is home for nearly two mil-lion persons of Indian origin, who have contributed significant-ly to its economy and society and in the nation-building process'

We in India admire Malaysia's remarkable success in trans-forming itself, within the space of a single generation, from aneconomy based on agriculture and primary commodities into amodern industrialized economy.

Our multifaceted relationship today is reinforced by sharedinterests and concerns. India and Malaysia share a commoncommitment to democracy, open society, rule of law and freemarket economy. Bound by a common ocean, the two coun-tries have stakes in each other's success. For India, Malaysia isa key partner within the ASEAN and in the context of her"Look East" policy.

The present dynamism in the economies of India andMalaysia presents a unique opportunity to further strengthenbilateral trade and economic cooperation. India-Malaysia bilater-al trade has expanded from US$ 650 mn in 1992 to over USD 6.58bn in 2006. India is Malaysia's largest trading partner in theSouth-Asian region, while Malaysia is India's second largesttrading partner in the ASEAN. There is, however, still hugepotential to expand trade and economic linkages. In order tounlock this potential we plan to launch negotiations in January2008 to establish a Comprehensive Economic CooperationAgreement which will cover trade in goods and services, invest-ment flows and other areas of economic engagement.

In the short four months that I have been here, one is ableto discern a new momentum and dynamism in the relation-ship. There is a desire on both sides to make fresh progresswhich is reflected in recent understandings and agreements indiverse fields. W. are keen to further cement cooperation in allspheres including trade and economy, culture and tourism,science and technology, education and defence. Indeed, whatwe are seeking is not a mere incremental improvement but aqualitative up gradation in the relationship, proceeding froma strategic perspective.

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Malaysia is today one of themost open economies inthe world and in 2006,the World TradeOrganization ranked

Malaysia as the 19th largest tradingnation, the 19th largest exporter and the23rd largest importer in the world.

The Malaysian economy grew by 5.9 percent in 2006 which was led by the growthexpansion of the manufacturing and serv-ices sectors. For the first time quarter of2007, a GDP growth of 5.3 per cent wasrecorded. This was mainly due to thestrong performance of the services sectorwhich expanded by 9.6 per cent. In addi-tion, the strong expansion was drivenmainly by increased consumption-relatedactivities, finance and business services.

The manufacturing sector also recordeda positive growth of 1.7 per cent during thesame period. The growth in this sectorwas mainly in the resource-based anddomestic-oriented industries. As a result,the projected GDP growth for 2007 hasincreased to 6.0 per cent.

The sustained inflows of foreign invest-ments into the manufacturing and servicessectors are attributed to the MalaysianGovernment's efforts in creating a conducivebusiness environment in Malaysia. That iswhy Malaysia's political, economic andsocial stability have been important consid-erations for investors to invest in the country.

Many Indian companies have consid-ered Malaysia as an ideal offshore locationfor their manufacturing operations. Thereare enormous potentials to further pro-mote the growth of these companies, par-ticularly in sectors where India has itsstrengths such as in ICT, machinery andengineering, biotechnology and pharma-ceuticals industries.

Under the Ninth Malaysia Plan andMalaysia's Third Industrial Master Plan,sectors that will be further promotedinclude petrochemicals, pharmaceuticals,wood-based, rubber-based, oil palm-based, food processing, electrical and elec-tronics, medical devices, machinery andequipment, and transport equipment. TheMalaysian Government is offering attrac-tive investment incentives to Indian busi-nessmen who intend to establish projectsin the promoted activities.

The Malaysian government also recog-nises the importance of the services sectoras a new source of growth and promotethe establishment of regional operationssuch as Operational Headquarters(OHQs), International ProcurementCentres (IPCs), or Regional DistributionCentres (RDCs). Indian companies are

encouraged and welcomed to establishregional support establishments inMalaysia to service their subsidiaries andaffiliates in the region.

The Government has arranged a fewsteps to maintain Malaysia's attractivenessand credibility as a business location. Thisinvolved on the implemented new strate-gies and fine-tuned existing policies basedon the feedback from the foreign and localprivate sector, improved the Government'sdelivery system to enhance public sectorefficiency, reduced corporate tax to 27 percent in 2007, and 26 per cent in 2008 andintroduced special customized incentivepackages for high-technology / knowl-edge-incentive industries that promoteskills development, R&D, fixed capital for-mation and technology transfer.

Some of the Indian companies that havesuccessfully established their manufactur-ing operations in Malaysia include Godrej(M) Sdn Bhd, Pan Century Edible Oils SdnBhd, Ranbaxy (M) Sdn Bhd and TCLIndustries Sdn Bhd.

Malaysia's Multimedia Super Corridor(MSC) is a regional centre for the locationof ICT and multimedia activities, includ-ing R&D, contact centres, technical sup-port centres and data centres. Of the 1,100MSC-status companies established, 45 arefrom India and majority is focused in soft-ware development activities. Among thelarge Indian companies operating inMalaysia with MSC status are SatyamComputer Services, Ramcosystems, HCLInfosystems and IEC Infotech.

India is major player in BusinessProcess Outsourcing (BPO) activities.Many of these offshore BPO operationswill be using a variety of equipment

including electronics and electrical prod-ucts, which can be sourced fromMalaysian companies.

Malaysian companies can establishstrategic alliances with companies basedin India for mutually beneficial partner-ships. Malaysia and India can worktogether to reach common goals based ontheir respective comparative advantagesand in the process would also contributetowards enhancing the bilateral economicrelation between both countries.

With a population of more than a billionand currently, one of the fastest growingeconomies in the world, India offersimmense opportunities for Malaysianbusinessmen. Malaysia has reached astage of economic maturity whereby itsentrepreneurs are now encouraged to pur-sue cross-border investments in certainindustries where the country is no longercompetitive. India has been recognised asthe popular business destination forMalaysian investors.

Malaysian companies have been active-ly investing in India. At present, cumula-tive Malaysian investments in India aremore than US$ 250 million.

Malaysian companies have invested inconstruction, power generation, telecom-munications, logistics and palm oil planta-tion sectors.

Among the Malaysian companies thathave invested in India are Unisphere SdnBhd, Genting Power Holding Ltd, TelekomMalaysia Bhd, Berjaya Group, Tenaga-BK(M) Sdn Bhd, Road Builder (M) HoldingsBhd, Bumi Highway Bhd, Bina PuriHoldings Bhd, United Engineers (M) Bhd,Gamuda Bhd, Sunway Construction Bhd,and Ho Hup Construction Bhd.

Other potential areas for collaborationwith India include infrastructure develop-ment, engineering services, biotechnology,drugs and pharmaceuticals, food, health-care, telecommunications and environ-mental projects particularly in soil andwater conservation.

Malaysia has undertaken measures tosustain its competitiveness in attractingforeign investments. Equity holding in allmanufacturing projects has been fully lib-eralised and 100 per cent foreign equity-ownership is allowed for all manufactur-ing and manufacturing services projects,without export conditions being imposed.

The Malaysian Government alsoplaces emphasis on intellectual propertyprotection to protect intellectual cre-ations and technology innovations.Malaysia's strong Intellectual PropertyRights are among the factors which haveinfluenced foreign manufacturers tolocate their operations in the countryand Malaysia's intellectual propertylaws are in conformance with interna-tional standards that provide adequateprotection to foreign investors.

Malaysia-India Business Ties

Heralding anew era

The robust economies of both countries offeroptimistic prospects for the Malaysian and Indian

businessmen to capitalise on

UCO Bank

L&T

‘‘

Intense competition in the Indian telecom sector is not onlyattracting massive investments in the high growth sector, it isalso emerging as a hunting ground for global telecom majorsscouting for senior management to run their businesses.

Sandip Das, the 48-year old chief executive officer (CEO) ofMalaysia-based telecom major Maxis Communications Berhad,appears to be one of the first Indian telecom veteran to run the over-seas operations of a global enterprise. Working closely along withMaxis Group global CEO, Das, who graduated as a mechanicalengineer and did MBA from FMS, Delhi University, heads theMalaysia operations of Maxis and has a supporting role in the com-pany’s India strategy. Maxis Communications, which owns 74%in Aircel, the leading mobile operator in Chennai, intends to havea pan-India presence. And, it couldn’t think of a better person thanDas who has had a 13-year stint with Hutchison-Essar combine,promoting the company’s paging and cellular business. Excerptsfrom a recent interview:

Where do you see the Malaysian telecom indus-try heading in the next five years? How wouldMaxis position itself to capitalise on the growthopportunities?Penetration levels in Malaysia are high but the demand is byno means over. As markets mature, there is a growingdemand for non-voice applications and this is reflected in

growing revenues in that area. This is also prompting oper-ators to entertain visions of quadruple play.

Maxis are the most comprehensive and diversified mobileoperator, with a strong value added service product engine.It is also far ahead of others in its trials on 3G, broadband,HSDPA, DVBH, etc. In short, it is the best prepared to dealwith the market and technologies of the future.

Has the Malaysian telecom market maturedenough? Even though the market is deeply penetrated, there are stillopportunities for growth in currently underserved seg-ments – both geographic and demographic e.g. inroads stillneed to be made in East Malaysia, Eastern Coast, lowincome groups and immigrant worker segments. We areseeing these segments seek basic voice telephony, whereasthe mature high-end is looking to do morewith their phone. In a way, it is their sixthsense, and they see it as a device that helpsthem in more ways than one.

Now that Aircel has been given thenod for entry into seven other circles,how is Maxis looking at leveragingthis advantage to establish itself as apan-India player?Aircel is a 23-circle national licence holder.Services are being launched in its 10th circlesoon and spectrum is awaited for the bal-ance 13 circles. Aircel has been servingemerging markets that have been starved ofbasic infrastructure and are the next frontierof telephone penetration. This is reflected inthe fact that all through 2007, it has been thefastest growing mobile service. In Chennai,where it started along with others, it hasenjoyed market leadership all through.

So far, the service has stood for goodquality, value pricing, simplicity and trust.As we move forward, our group synergieswill be leveraged in product offerings andtechnology, to give us an added edge alongwith our traditional ‘value-based’ services.

What are the future plans of Maxis forthe Indian telecom market?India continues to offer high growth oppor-tunities for us in the coming year. We expectto aggressively grow our subscriber base inour existing nine circles. We are developinga broad range of new propositions for ourcustomers – from branding, to increasednetwork coverage, to innovative productand service offerings, to refreshing cus-tomer experience. We are in the process ofsetting up our national management teamthat will steer the company through to anew era of competitive differentiation.

Being the leading mobile serviceprovider in Malaysia, Maxis lends its inter-national exposure, technology and market-ing expertise to drive Aircel’s aggressiveand ambitious business expansion. Withadditional licenses to operate in the remain-ing 14 regions and cities in India, our medi-um term plan is to expand services to serveIndia’s 1.1 billion population. The nextfinancial year, that is 2007-08, will be ouryears of investment, giving us a firmnational foothold and footprint.Maxis has made capital invest-ments of close to $3 billionin Aircel. Going for-

ward, it will notbe unusual forour networkinvestments togrow from $1 billionand upwards annually, commensu-rate with our spec-trum availability and rollouts.

We have entered India through an acquisition and now,we are rolling out greenfield operations. We are alwaysreviewing opportunities available to us in growing organi-cally or through acquisitions. The ultimate goal is to create atelecom powerhouse.

Is there any room for more players to enter thealready crowded Indian telecom sector?The growth prospects are very encouraging in India.Analysts are expecting India’s economy to continue itsrapid growth with the GDP growth targeted at about 8%for the next two years. India’s telecom sector, which wit-nessed a growth of 50% last year, is poised for furtherexpansion this year, given the mobile penetration of 19%currently. Over the next few quarters, India is expected tocontinue to add new subscribers at the rate of 6-7 million

per month, which is already the highest in theworld. We are optimistic with our invest-ments and networks. The only constraint wesee is in the area of spectrum availability. Weare in a peculiar situation where we havelicences to operate but no spectrum to start.

Does the Malaysian telecom industryrate India as an attractive destination?There is a natural synergy that Malaysia haswith India due to its regional proximity. Evenethnically, Malaysia has one of the highest pop-ulations of Indians outside of India. India con-tinues to offer high growth opportunities forthe Malaysian telecom players. India’s popula-tion of 1.1 billion and a current low teledensityof 19% are statistics that encourage investors.Two of the three Malaysian mobile operatorsalready have a presence in India and theirinvestments are looking good.

Haven’t they been holding back on India so far?I don’t think you can put it that way. We all know that it is

only recently that it has been easy for people to do businessin India. China has been ahead of the curve in attracting for-eign investment and it is unfair to compare the two countriesin absolute terms. So, it is not so much about Malaysia as itis about the investment climate.

Malaysian companies are eager to do business with Indiabut are possibly intimidated by the size and plurality of theIndian society, which is understandable, because these areearly days.

How can the environment be made conducive forinvestment here?Transparency, simplified processes, speedy clearances, freeflow of finances and basic infrastructure hold the key to

investor confidence. Nothing makes aninvestor more nervous than uncertainty andreversal of policies.

Has the convergence of the telecom-munications, broadcasting and com-puting technologies benefited thetelecom infrastructure network?Key benefit from the convergence is mainlyin the elimination of duplications in theexisting infrastructure network resulting incost savings and efficiencies in the deliveryof data and contents being passed on to theconsumer. Also, standardisation of the serv-ices on a common IP-platform enables theprovision of a wide range of interactiveservices to the customer’s various devices.

However at this stage, ‘convergence’which is a much brandied word, is yet totakeover our lives. It still remains commer-cially conceptual, despite its promise.

How is Malaysia attempting to bridgethe digital divide? What are theefforts to identify measures to extendcommunications services to high-costareas and low income groups?The government has adopted a multi-pronged approach towards bridging thedigital divide viz. setting up of the USP(Universal Service Provision) system/fundsto encourage installation of network servic-es in underserved areas and communities,awarding of Wimax license to smaller play-ers for proliferation of broadband access aswell as implementation of NEP (NewEconomic Policy) to address socioeconomicdisparities. The T1, T2 and now T3 pro-grammes are rapidly helping coveragemove to remote parts of the country, bridg-ing the 'divide'.

Maxis itself works closely with the gov-ernment in various community initiativessuch as the KTAK-Maxis CyberkidsProgram. The KTAK-Maxis CyberkidsProgram is mooted together withMalaysia's Ministry of Energy,Communications and Multimedia to sup-port and increase ICT literacy in the ruralareas of Malaysia to bridge the digitaldivide. Since its introduction in 2002, theprogram has seen participation frommore than 1,200 primary schools involv-

ing over 6,000 school children thus far.Maxis has spent RM15 million on

this initiative, and up to RM5million per year.

As a nation offering quality education, Malaysia hasgrown tremendously during the past decadeand is fast becoming a centre of educational

excellence in Southeast Asia.The Malaysian educational system encompasses edu-

cation beginning from pre-school to University. Pre-terti-ary education (pre-school to secondary education) isunder the jurisdiction of the Ministry of Education (MOE)while the tertiary or higher education is the responsibilityof the Ministry of Higher Education.

Malaysia currently houses more than 50,000 internation-al students from more than 100 countries. Besides the afford-able educational cost, many students choose to study inMalaysia because they recognize Malaysia as an ideal gate-way to develop their Asian network and relationship as wellto learn from Malaysia's great diversity, rapid economic devel-opment and people living in peace and harmony.

The country is set to welcome 100,000 international studentsin Malaysia by the year 2010. The higher education institutionsin Malaysia are being provided by 18 public higher education-al institutions (which include an international University), 27private universities, 4 reputable foreign branch campus uni-versities, more than 500 private colleges as well as various

other higher educational insti-tutions from the UK, US Australia, Canada,

French, Germany and New Zealand which offers twinningand franchised degree programmes through partnership withMalaysian colleges and universities.

The 34 international schools (American, Australian andBritish styled) and 14 expatriate schools which include French,German, Japanese and Taiwanese schools have facilities forstudents from pre-school to upper secondary levels. They pro-vide parents with many options of pre-tertiary internationaleducation at affordable fees. Local and foreign students inpursuit of higher education would be spoilt for choice by thewide range of study options and many selections of both localand foreign universities to suit individual preferences coupledwith affordable education cost.

Poised as the centre of educational excellence in the Asia-Pacific region, Malaysia's educational programmes offered byprivate higher educational institutions (PHEIs) are of excellentquality. These institutions of higher learning are governed byvarious acts such as the Education Act 1996, the Universitiesand Colleges (Amendment) Act 1996, Private HigherEducational Institutions Act 1996 and the NationalAccreditation Board Act 1996. English, an international linguafranca, is the medium of instruction making this a plus factorfor students who aspire to succeed in their career.

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3

high growthopportunities’’

An emergingeducational hubIndia offersIndia offers

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● AAffffoorrddaabbllee lliivviinngg eexxppeennsseess

With a host of top class universities and affordable education,Malaysia is emerging as the next big destination for students

Strategically located along the world’s busiest ship-ping route – The Straits of Malacca, WestportsMalaysia is a gateway to South East Asia’s boomingpopulation market of 500 million with a global con-nectivity to 300 ports.

Spanning 480 hectres on the west coast of PeninsularMalaysia on Pulau Indah, Westports constitutes one half ofPort Klang, operating nine container berths with a quaylineof more than 3 kilometer, capable of accommodating fivemother vessels and three feeder vessels. This natural deepport of minimum 16-meter draft aims to double its quaylineto 6 kilometer by 2010.

Today, 44 Main Line Operators call on the port includingworld’s top names like CMA-CGM, China ShippingContainer Lines, Evergreen Marine, CSAV, Gold Star, Hanjin,Hyundai, APL, IRISL and Emirates.

In terms of connectivity, the port has among others, 16 callsper week to China, 16 to Europe, 12 to the Middle East, 10 toTaiwan, 8 to Japan and Korea and 11 to Sri Lanka. Its Feeder

services connect Jakarta, Belawan and Surabaya in Indonesiawith a total of 14 calls per week, 12 to India, 10 to Bangladeshand Myanmar and 9 to Thailand and Vietnam.

A Flexiport – Handling Multi CargoCommitted to cater to the growing demands in the globalsea-borne trade, Westports has progressed into a world-classfacility and more significantly as a multi-purpose port in theregion. Living up to its name as a Flexiport, Westports hasproved that it has the expertise and facilities to handle con-tainerized and conventional cargo.

Since commencement of operations in November 1994,Westports conventional terminals have enjoyed unconven-tional growth in terms of performance and throughput.

In terms of multiport tonnage, Westports has shown atremendous growth, from 22 million Freight Weight Tonne(FWT) to 63 million FWT for the period 2001 to 2006, record-ing a remarkable growth of 192%.

Phenomenal Container GrowthSince its inception in 1996, Westports container volume hasgrown from 0 to 4.5 million TEUs (Twenty- foot equivalentunits) and revenue reaching RM800 million.

For 2006, Westports recorded an impressive 26% growth tohandle 3.7 million TEUs of contain-

er cargo compared with the previ-ous year’s total of 2.9 million

TEUs. The port’s con-tainer throughput cur-

rently accounts for 63% ofPort Klang’s total turnover

and about 30% of the coun-try’s total. Westports has set a tar-get of 4.5 million TEUs for 2007and eventually to become a 5 mil-lion TEU port next year.

The first six months of 2007 has

shown container volume in Westports reach 2.1 millionTEUs. This is a significant improvement from the correspon-ding period in 2006, as it shows a growth rate of 20%.

Best Employer = Best EmployeeBy embedding values like teamwork, integrity and respect inthe foundation of every action and attitude of its employees,in return it rewards and recognises the relentless effort of itsworkforce to exceed industry norms, escalate productivityand improve the company’s competitive edge.

Westports performance, productivity and technologyare driven by 70% bumiputera (indigenous) staffs whohave shown the world they are a competent force to bereckoned with.

When Westports was established in 1995, it was difficult toattract good workers because ports were often seen asunglamorous, dull and dirty workplace.

However, Westports, under the leadership of its ExecutiveChairman, Tan Sri G.Gnanalingam, changed the image ofports with its extensive and imaginative landscaping andhigh productivity standards, besides offering attractiveremuneration packages and fringe benefits. Today, ports arerun by IT-trained intelligent people who can move more than400-million boxes around the world by using computers.

In Malaysia, more and more young graduates are lookingat ports for employment due to the dramatic changes that hastaken place in the port industry for the past decade.Westports has so far trained more than 100 young Malaysiansunder its Graduate Trainee Scheme. Seventy-one of them,including 12 who were recruited this year, are still serving theport in different functions, either as Managers or Executives.

CSR Initiatives – Zero PovertyWestports has subscribedstrongly to the belief that eco-nomic development mustinvolve and benefit all citizens.The port strongly believes in thephilosophy of ‘Growth withEquality’. Since it’s inception,Westports has adopted long-term policies with regard topoverty eradication.

Right from the day it wasborn, Westports had adoptedPulau Indah at the core of itsCorporate Social Responsibility(CSR) initiative. Aptly called‘Zero Poverty Programme atPulau Indah’, it aimed to elevatethe quality of life for the vil-lagers and upgrade the develop-ment of the island. Pulau Indahwas just a remote fishing villageprior to the island becoming amajor port in this region.

Recognition – An AwardWinning PortSince its inception in 1994,

Westports has won 12 accolades from far and near. Besideswinning the International Association of Ports and Harbor(IAPH) Gold Award for IT for its e-terminal, Westports alsohas the distinction of winning three other awards recently -the BrandLaureate Awards 2006-07 for emerging as the bestbrand in Asia Pacific in the Ports/Terminal category and theSilver Award for Safety Excellence from the NationalCouncil for Occupational Safety and Health in February.Westports was the first Malaysian port to receive this high-est safety accolade from the government.

And the latest addition was the Safety and Peace Awardgiven by the Society of Safety and Peace Malaysia in recog-nition of Westports commitment to Security and Safety atthe port.

Westports had previously won awards for being the BestEmerging Container Terminal, Best Public SectorDevelopment, Best Employer, Best Infrastructure DesignAward, Best Landscaped Award and the Silver ScreenAward for Westports “Millennium” Television commercial.

Logistics Centre Of Excellence – Nation’s PrideWestports, wanting to become the Five Star of the Portindustry, also aims to become the Glocal Center ofLogistics Excellence. It has proven that its Global connec-tions extend beyond Main Line Operators and Ports. Likethe port’s business partners, its people are now part of anexpanding global network of achievers. They continue totake the Westports’ brand to greater heights. Thisundoubtedly reinforces Westports position as the nation’slogistics center of excellence.

The World

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Moves HereA gateway to South Asia’s booming

market, Westports connectsMalaysia to 500 million people

around the globe

4

One of thefew boldand consis-

tent Malaysianvoices on socio-economic reforms,Tan Sri Ramon V.Navaratnam in hisrecently publishedbook Quo vadis,Malaysia ? tacklesthe question thatall concerned localMalaysians har-

bour in their minds – Where is Malaysiaheading to ?

An avid writer and a distinguished civilservant, with his vast experience inGovernment service and now in the privatesector, Tan Sri Nava as he is popularlyaddressed, believes that Malaysia is well on itsway to attain the status of an Industrialisedeconomy. In a brief conversation , heexpressed his views on wide ranging subjects.

Excerpts:

On his vision for next 10 years.The vision for the next 10 years is promis-ing. Malaysia will be well on its way to real-ising its Vision 2020 to become an Industrialcountry. Malaysia will be even more a serv-ice economy and current measures nowbeing taken will give a definite boost to thebusiness climate.

On balancing manufacturing and the agrar-ian sectors leading to assured progress.The balance among the agricultural, tech-nology and service industries would beimproved. Farmers and fishermen wouldbe encouraged to become more productivein situ, instead of moving them out to areasfor which they may not be equipped. Thenew Development Corridors will ensurebetter balance.

On achieving sustained annual growthrates.The average 7% growth will be hopefullymaintained, through greater liberalisationand competitiveness.

On strongest pillars of Malaysian infra-structure.The infrastructure pillars are all interdepen-dent. It’s not just roads, ports etc that can besingled out. We have advanced in providingbetter infrastructure across the board and thathas helped to stimulate economic growth.

On industry-academia collaboration forsustaining a competitive edge.Regrettably, the Industry/Academic collabo-ration has not been as successful as it shouldhave. The Malaysian Industry Govt HighTeknology (MIGHT) has helped, but morewill be done. The Ministry of HigherEducation is now taking new initiative to promote this collaboration.

Quo Vadis, Malaysia?

Sunway Group,one ofM a l a y s i a ' s

foremost conglom-erates is all to set toenter the join thereal estate band-wagon in India . It iscurrently planningthe implementationof the project that itrecently signed upwith a group of wellknown local developers in Hyderabad.

Starting as a tin mining company in1974, it is today one of the most well-diversified companies in Malaysia.Sunway has established a reputation foritself in almost every fields ranging fromreal eastate to entertainment.

The Group's flagship project - the multi-billion Ringgit Bandar Sunway develop-ment - where it took an engineering miracleto transform 800 acres of disused andderelict mining land into an integrated, self-contained resort township surrounded bylush greenery, has received awards and

international recog-nition as a tourismlandmark that it istoday

With such laurelsunder its beltSunway, has decid-ed to recreate themagic in India. SaysNgian Siew Siong,MD, PropertyD e v e l o p m e n t ,Sunway City, "India

is a huge country and the thriving economywill provide such opportunities to SunwayCity. Sunway City has good faith in theIndian property market. It carries a brightfuture and the current pricing of residentialproperties in India is reasonable."

Known for its innovative and modernprojects lifestyle living, modern designs, lat-est construction techniques, world classstandard of finishing, well designed andmaintained landscape, round the clockenhanced security monitoring systems arejust some of the unique features that thecompany ensures in all its projects.

Here comes Sunway

Malaysia offers everythingto a traveler that is essen-tial to relax and unwind.

From breathtaking scenery to exoticfood, you name it and Malaysia hasit. But one of the destination mostfrequented by travelers is GentingHighlands Resort. A mere 50kmfrom Kuala Lumpur, the placeoffers a cool respite from the hustle-bustle of the city, crisp invigoratingmountain air complemented bymajestic scenery, lush green tropicalrainforest shrouded in a veil of per-petual mist.

Genting Highlands Resort, betterknown as Genting - City ofEntertainment to those bitten bythe travel bug, offer the bountifulharvest of nature together with astaggering potpourri of interna-tional standard facilities.

Initially conceptualised as aretirement home in the mid-1960sby its founder, Tan Sri Lim GohTong, Genting Highlands has sinceevolved into one of Asia’s leading

integrated resorts for recreationand entertainment.

An hour’s drive from theMalaysian federal capital, it fea-tures six hotels with over 10,000guest rooms, over 90 distinctivedining outlets, an alluring shop-ping paradise with over 80 stores,pulsating indoor and outdoortheme parks with more than 50 funrides, lively casino gaming andmore than 10 leisure and entertain-ment hotspots. The resort alsooperates Genting Skyway - thelongest cable car in Southeast Asia -spanning 3.38km from the mid-hillat Gohtong Jaya to Highlands Hotelat the peak.

The many national and interna-tional awards that Genting hasbagged in recent years are a clearindication that Genting’s fame has

spilled across the borders ofMalaysia. In recent years world

class performers such as SirCliff Richard, Boyz II

Men, Ronan Keating,Air Supply, Westlife

to name a few

have chosen Genting as a venue fortheir world tour concerts. Apartfrom international stars, Gentinghas also played host to concerts bytop Hong Kong and Taiwan per-formers and Arab world’s best-loved artistes, Kadim Al Sahir.

Musical extravaganzas have becomethe norm in this hill resort. LadySalsa, the first-ever London WestEnd production of Afro-Caribbeandance and music, played to apacked house every night couple ofyears ago.

Extensive plans over the years,including the completion of theFirst World Complex - First WorldHotel, First World Plaza andGenting International ConventionCentre - in 2001 have ensured thatits facilities and amenities havemade it Malaysia’s premier, fully-integrated family holiday destina-tion and the resort of choice. Over18 million visitors, both Malaysiansand international visitors, visitGenting each year.

With a tagline like Genting - Cityof Entertainment, the resort goes allout to ensure that visitors experi-ence just that.

Where HeavenMeets Earth

Genting HighlandsResort is an ideal get-away from the hustle

bustle of city life

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● BBeesstt MMaann--mmaaddee TToouurriissttAAttttrraaccttiioonn iinn MMaallaayyssiiaa bbyyTToouurriissmm MMaallaayyssiiaa iinn 22000022

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Expressways. Engineering and Construction. Healthcare. Environmental services. Property development.Manufacturing. ICT. Logistics. While many see these as our expertise in vital infrastructure development,we see them more as our continuing role and resolve to help nations build better lives for their people.

UEDI

The Preferred Nation-Building Partner

UEM, the Malaysian infrastructure con-glomerate, can truly be termed as"partner in nation- building". Over theyears, it has played a stellar role in the

country's infrastructure projects, which in turn,have paved the way for added growth and progressof various industries.

Besides holding a lion's share, estimated ataround 80% of construction and development ofall highways in Malaysia, it has also to its creditthe construction of two major bridges, namely oneto Penang Island and the other one to Singapore,besides the passenger terminal at the worldrenowned Kuala Lumpur International Airport.

A new feather in its cap that stands to driveeven further business opportunities is the recentlyawarded contract to undertake Penang Island'ssecond bridge, spanning 24 kilometers, and said tobe the longest in Asia-Pacific, to date.

It also has a widespread presence around theworld, significantly through one of its subsidiaries,Opus International Group plc (OPUS). OPUS isone of the first UEM companies to transcend theMalaysian borders with a strong foothold in coun-tries such as New Zealand, the United Kingdom,Australia and Canada.

Other major subsidiaries which are aggressivelyventuring into international market include PLUSExpressways Berhad, UEM Builders Berhad, FaberGroup Berhad, UEM Land Sdn Bhd, UEMEnvironment Sdn Bhd and Pharmaniaga Berhad.

Presently, UEM is making strong inroads intoIndia, with a number of projects in Maharashtraand Karnataka. Furthering its expansion plans, thecompany is setting up a wholly-owned Indian sub-sidiary by the end of this year. In an interview

with the Financial Express, Dato' AhmadPardas Senin, MD / CEO of UEM GroupBerhad, outlines the company's vision forIndia.

Excerpts:India has emerged as a promisingmarket for Malaysian infrastruc-ture companies like UEM Group.How is UEM Group positioned inIndia?UEM is currently involved in a number

of projects covering the roads and highwayssector in states such as Maharashtra,Karnataka, etc. Towards the end of 2006, wewere awarded a RM108 million contract towiden and upgrade a 21.2 km highway inMumbai.

India is an emerging and fast developingmarket, and we foresee India's growing busi-ness trends to herald many opportunities forcompanies such as ours to participate in. Wefelt that the boom within the country's infra-structure development sector has leapfroggedtremendously, following the government'sdecision to focus on Private Public Partnershiproute. With our capabilities, we will leverageon these emerging opportunities.

In addition to that, with our strong capabili-ties in other areas such as water resourcedevelopment, waste management, etc. we arekeen to explore possibilities within these sec-tors as well.

How do you rate India vis-a-vis other

markets e.g. China, as an investmentdestination?Infrastructure is one of the booming sectors ofthe Indian economy. Over the last decade,with the opening up of the economy and thepromulgation of the Private PublicPartnership route, there has been an influx ofcompanies from across the globe which hasforged strategic alliances with local partnersfor project development and execution inareas such as power, water resource develop-ment, roads and highways, etc.

China and India are both very attractivemarkets, offering huge business opportunities.Both have their own strengths and potentials.While China has been faster in developinginfrastructure by attracting foreign invest-ment, India is moving towards the same direc-tion. Our business approach in both countriesdiffers, dependent on the business require-ments and regulations of each country.

In your view what should be India'seconomic agenda for attracting foreigninvestments?As a fast growing country, India has consider-able investment opportunities in terms of fab-ricating new infrastructures to accommodatethe needs of today's India.

According to a research conducted byPricewaterhouseCoopers, India's infrastruc-ture requires USD150 billion in investmentsover the next six years, in order to attain state-of-the-art infrastructure and to achieve an 8per cent GDP growth. The opening up of thissector augers well for the government, as evi-dent by the influx of foreign companies.

Furthermore, the Government's decision topromote private participation in the infra-structure sector through the Private PublicPartnership route has been a progressive step.It has encouraged players like us to invest inIndia and share our vast experience and tech-nical expertise in executing large-scale andcomplex projects.

We also feel that the Government shouldpromote the Design-Build-Finance-Operate

(DBFO) model in infra-structure as adoptedinternationally to givecomplete autonomy toconcessionaires in designand execution, therebyexpediting project devel-opment. Though theinvestments are expected toflow in key areas like air-ports, ports, power androads, our focus has essen-tially been in the roads andhighways sector.

The last decade sawMalaysia achieving averageannual growth rates of about7%. What, in your opinion,caused this turnaround ?Malaysia has been one of themost successful stories in termsof infrastructure building.Execution of high-quality infra-structure is one of the main fac-tors propelling the economy thathas, in turn, a multiplier effect onother sectors. Malaysia has beensuccessful in utilizing itresources and turning theminto new developments.

Today, which is thestrongest pillar ofMalaysian economy?The development in infra-structure has undoubtedlybeen one of the major cata-lysts to propel Malaysia'sgrowth, contributing to theeconomic success and wealthcreation that the whole nationis enjoying now.

This can be clearly seen withmajor infrastructure such as theNorth-South Expressways built byone of our subsidiaries, PLUSBerhad, in the late eighties whereit generated immense job oppor-tunities and significant businessspin-offs that benefited thewhole nation.

New towns have beenestablished along this majorhighway and this has helpedin spreading the develop-ment to the other parts ofthe Malaysian Peninsular.

As a true partner innation-building, UEM Group notonly assists in laying the strong founda-tions of progress, but also advances alongsideit and even beyond.

UEM steers

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strong inroadinto India

5

The Second Penang Bridge, a catalyst to growth

for Malaysia's northern region

Puteri Harbour in Nusajaya, a first-class maritime

infrastructure at the southern tip of Malaysia

Britomart Transport Centre, Auckland, New Zealand is testimo-ny to Opus's expertise in fire and building services engineering

The North-South Highway, Malaysia's pioneering main artery,

spurring growth and development across the length of the country

One of the finest destinations inSoutheast Asia, Malaysia is a landof many cultures, winders andattractions. It is a melting pot ofraces and religions where Malay,

Chinese and Indians have been living in harmo-ny for many years

Malaysia is one of the most enchanting andexotic countries of Southeast Asia. With some ofthe best beaches and diving spots in the world,Malaysia is ideal for island getaways. It is nowonder that Malaysia tops the itinerary of anytraveler visiting Asia. It is a land of fascinatingextremes, where gleaming glass towers of the21st century look down upon the primitivelonghouses. Perhaps it is hard to imagine anyother place where nature blends so beautifullywith the contemporary world.

LangkawiLangkawi comprises a group of 99 tropicalislands situated off the north-western coast ofPeninsular Malaysia. The main island is pop-ularly known as Pulau Langkawi. The islandsare seeped in legends of ogres and giganticbirds, warriors and fairly princesses, battlesand romance. A tropical paradise spectacular-ly endowed by nature, these islands are amust visit.

PenangPenang needs no introduction. This is one ofSoutheast Asia's finest destination and is an

ultimate retreat for food andadventure lovers. There are

many stalls selling local delica-cies. One of the specialtiesof Penang is the Snake

Temple. Legend has itthat the temple, dedi-

cated to a Buddhisthealer priest, was inhabitedby snakes who crawled out

of the jungle on the night of thetemple's completion. You canalso take the funicular train upPenang Hill for a panoramicview of the island.

Kuala LumpurKuala Lumpur, the Capital ofMalaysia is a huge, bustling,cosmopolitan city and is thebusiness heart of the nation.One of the prominent featuresof the city is its ethnic diversity.The city is a melting pot ofMalay, Chinese, Indian andEuropean cultures. Some of themajor attractions of KaulaLumpur are the voluminous

Petronas Twin Towers. At a height of 436m(1453ft), these are amongst the tallest buildingsin the world. The gleaming skyscrapers areindication of Malaysia's rise as a regional eco-nomic powerhouse. The Menara KualaLumpur is the tallest telecommunication towerin South-East Asia and the fourth-tallest in theworld. The Tasek Perdana Lake Gardens areone of the city's best known natural landmarks,a popular spot for picnics and walking.Shopping and eating are other key attractionswith retail opportunities, including everythingfrom huge air-conditioned malls with bargainson many items, through to local handicraftssold by the people who make them.

ExcursionsThe marvelous Batu Caves are located to thenorth of the city. These large natural caves,reached by 272 steps, house the Hindu shrineof Lord Subramaniam. Nearby is the MuseumCave, a fascinating display of brightly coloredstatues and murals from Hindu mythology.Templar Park, 22km (14 miles) north of KualaLumpur, is a well-preserved tract of primaryrainforest, which is rich in scenic beauty. Junglepaths, swimming lagoons and waterfalls all liewithin the park boundaries. Malaysia's latestagricultural park, located at Cherakah in ShahAlam, Selangor, has a large playing area withfacilities for skateboarders and rollerskaters.

IpohDubbed the "City of Millionaires" (due to its tinmining wealth) Ipoh, Malaysia's third-largestcity, offers the ghosts of its grand colonial dayswith the mixture of colonial and modern archi-tecture; the best example of the former is theMoorish and Victorian pastiche of the train sta-tion. The city center also boasts many colonial-erashops, which retain their original atmospheretoday. The Kuala Gula Bird Sanctuary in Ipoh isof great interest to all nature lovers. In addition toover 160 different species of birds, lucky visitors

may get a chance to see smooth otters, long-tailedmacque and ridge-back dolphins.

TaipingAlthough it may be known as the "Town ofEverlasting Peace", Taiping grew to fame as araffish tin mining center. Some of the wealthfrom the tin mining was pumped into Taiping'smain attraction, the disused mining pools thatwere transformed in the late 19th century tobecome the stunning, carefully landscapedLake Gardens. Taiping is also home to someimpressive colonial architecture and thecharming Ling Nam Temple, which is reputedto be the oldest Chinese temple in Perak.

Pangkor IslandPangkor Island, about 100km (60 miles) south

of Penang Island has over the years gained inpopularity, which has brought better facilitiesat the expense of increasing crowds and devel-opment of the pristine environment. Since1996, an internal air link to the island has facil-itated access for tourists. Innumerable baysboast excellent sandy beaches and all kinds ofwatersports.

KelantanBordering Thailand in the north is the state ofKelantan, whose capital Kota Bharu is a color-ful, vibrant city, very much the archetypalSouth-East Asian border town. The beacheshere are clean and the sea is ideal for swim-ming, diving and fishing. The state isrenowned for its many cultural festivals, someof which are unique to the region. PujaUmur (the birthday of the Sultan) is cel-ebrated with a week-long festival, begin-ning with a parade in Kota Bharu.

Fraser HillSet in lush jungle 100km (60 miles) northof Kuala Lumpur, Fraser Hill is popularwith both holidaymakers and golfenthusiasts. A wide range of other sports

are available. There is also a self-containedtownship, self-catering bungalows and aninternational-standard hotel.

MalaccaThe city of Malacca, founded in the 15 century,is mainly dominated by the Chinese communi-ty. However, the city has strong traces of thePortuguese, Dutch and British ruleArchitectural remains include the Cheng HoonTeng Temple in the center of the city, the gate-way of the A Formosa Portuguese fortress, StPaulâ's Church with the grave of St Xavier, theStadthuys, the Dutch Christ Church and theTranquerah Mosque, one of the oldest in thecountry. There are several international hotelsin Malacca, augmented by a fully-equippedresort complex 12km (7 miles) outside the city.

Truly AsiaA blend of the traditional and modern,

Malaysia is a paradise for tourists

Truly AsiaTruly Asia6

7The Ministry of Science,

Technology andInnovation of Malaysia(MOSTI) has identified

the biotechnology as one of sun-rise sectors and key drivers of thecountry's development. With theapplication of biotechnology, theMinistry hopes to unlock addi-tional value in traditionally strongsectors such as plant commoditiesand manufacturing. This is to cre-ate substantial value in new andupcoming sectors such as health-care, nutraceuticals and industrialbio processing.In the NationalBiotechnology Policy, biotechnolo-gy is described as an enabling toolfor advances in agriculture,healthcare and industry providingfor immense benefits to the nation,particularly in building skills,value-added employment andimproving the quality of a widerange of products and services.

Malaysia has been blessedwith a wealth of resources thatlend themselves to the develop-ment of biotechnology. The coun-try is renowned for its biodiver-sity and for its strength inresource-based industries.

However, in order to utilizethese strengths and resourcesfully, serious and concerted effortsare done to provide the right envi-ronment for biotechnology toflourish. MOSTI is assisting thosewith the expertise to carry out

biotech-driven R&D or to developbiotech-driven businesses, or as isoften the case today, to do both.

The potential of biotechnology

has been well acknowledged. It isvery research-driven and withthis, MOSTI is committed toundertake the role of developer

and catalyst of the country'sbiotechnology sector, by unveilingthe national biotechnology policy.The policy which was introducedby the prime minister of Malaysiaat the launch of BIOMALAYSIA2005, encompasses nine thrustswhich underline the direction andmeasures offered by the govern-ment towards developing biotech-nology for wealth creation andnational well-being.

Thrust one of the nationalbiotechnology policy is to trans-form and enhance the value cre-ation of the agricultural sectorthough biotechnology. Thrust twois to capitalize on the strength ofbiodiversity to commercialise dis-coveries in health-related naturalproducts and bio-generic drugs.Thrust three is to leverage thecountry's strong manufacturingsector by increasing opportunitiesin bioprocessing and bio manufac-turing. These three thrusts reflectone of the main principles behindthe National BiotechnologyPolicy-which is to leverage thecountry's existing capabilities andto move them up the value-chain.In this initial phase of biotechnolo-gy development, MOSTI is target-ing biotech sub-sectors, which willshift the country's agriculture,healthcare and manufacturing sec-tors to the high-tech stage.

Thrust Four is to establishbiotechnology centers of excel-

lence in Malaysia, where multi-disciplinary research teams incoordinated initiatives are broughttogether. Thrust five is to build thenation's human capital in biotech-nology via education training.

Thrust Six of the BiotechnologyPolicy is to apply competitive labto market funding and incentivesto encouraged committed partici-pation from academia and the pri-vate sector, includingGovernment-linked companies.

Thrust seven of the policy is toimprove the country's innovationsystem by reviewing the country'slegal and regulatory framework.

Taking all these strands togeth-er, Thrust eight of the NationalBiotechnology Policy sets out tobuild international recognition forMalaysian biotechnology.

The ninth and final thrust of theNational Biotechnology Policy isto establish a dedicated and pro-fessional agency to spearhead thedevelopment of Malaysia'sbiotechnology sector.

The Govt has also decided toemploy an approach that movesaway from an infrastructure focusto one that builds on the capabilitiesof existing institutions. In line withthis, a network or nexus centres ofexcellence is built around the coun-try, known as BioNexus Malaysia.This BioNexus represents the bestinstitute Malaysia has to offer inspecific biotechnology sub-sectors.

Riding theBiotech Wave

After Information Technology, Biotechnologyis the buzzword in Malaysia now a days

The year 2007 marks 50 years of independence forMalaysia. It also records 50 years of mutually-ben-eficial Indo-Malaysian relations in the fields of

trade, tourism and culture, technology as well as com-merce. A major contributor to telecommunications tech-nology, Telekom Malaysia Berhad (TM), through itswholly-owned subsidiary, TM International Sdn Bhd(TM International), has set up operations in India inaddition to successful businesses in Sri Lanka,Bangladesh, Pakistan, Iran, Indonesia, Singapore,Cambodia and Thailand.

Backed by a track record of over 11 years of investingas well as running cellular and other operations in theAsia Pacific region, TM embarked on its Indian foray. OnMarch 10, 2006, it acquired a 49 per cent stake in SpiceCommunications Limited (Spice). Capitalizing on itsstrength in India's telecommunications industry, Spicerecently underwent listing on the Bombay StockExchange on July 19, 2007, bringing TM's shareholding to39.2 per cent. The listing was a resounding success withshares being oversubscribed by 37 times. As at first half2007, Spice chalked up an impressive 3.2 million sub-scribers in the Punjab and Karnataka circles where it islicensed for cellular services. The company is set to roll-out its National Long Distance as well as InternationalServices soon.

Eleven years of investing abroad however commencedwith TM's pioneering international investment in SriLanka, through Dialog Telekom PLC (formerly known asMTN Networks Private Limited), in 1995. This companyprovides GSM cellular service on the 900 MHz and 1800MHz frequency bands as well as 3G under the DialogGSM brand name. Over the years, Dialog has advancedinto quadruple play and convergence services and haslaunched broadcast as well as fixed wireless operationsbased on CDMA technology. As at first half 2007, DialogGSM had a total of 3.65 million customers, commanding57 per cent market share.

From this highly successful venture, TM enteredBangladesh through a joint-venture agreement with AKKhan & Co to establish TM International (Bangladesh)Limited (TMIB) in 1995. The company, which is 70 percent owned by TM, operates a GSM cellular service onthe 900 MHz and 1800 MHz frequency bands under thebrand name AKTEL. With over 6.7 million subscribers asat first half 2007, AKTEL boasts the widest InternationalRoaming Service in the market connecting 440 operatorsacross 185 countries.

Other investments in the South Asia region have takenplace. In 2005, TM International acquired an 89 per centstake in Multinet Pakistan (Private) Limited (Multinet), alicensed LDI, Electronic Information Services (EIS) andData Network Operation Services (DNOPS) licensee. Itsprimary services include LDI and other value-addedservices such as DSL Broadband, Gigabit Metro AreaBroadband, Wireless Broadband and allied services.Carrier's carrier services are also provided through themammoth Project Ittehad which links 107 cities inPakistan with 4,100 km of fibre optics. The project isscheduled for completion by the third quarter of 2007.

In Iran, TM International acquired a 49 per cent inter-est in Mobile Telecommunications Company of Esfahan(MTCE) in 2005. MTCE is the first private telecommuni-cations company in Iran providing GSM services withinthe Esfahan province.

Moving closer to South-east Asia, TM Internationalsecured a stake in PT Excelcomindo Pratama, Tbk (XL)-the first private cellular operator in Indonesia-in 2005. Itnow holds a 67.02 per cent share in XL which had a totalsubscriber base of 10.2 million as at first half 2007. InCambodia, TM International has a full stake in TelekomMalaysia International (Cambodia) Company Limited(TMIC). The company, currently the third largest cellularoperator in Cambodia, provides services on the GSM900frequency band.

The success of TM's investments in India as well as itsother partner countries can be attributed to its commit-ment to providing superior communication infrastruc-ture in these growing Asian economies. By working handin hand with these countries to build telecommunica-tions infrastructure crucial to their economic and socialgrowth, TM continues to make its presence felt in theinternational telecommunications scene while preservinghealthy, bilateral ties with these countries.

Conqueringnew

horizons

The Malaysianpalm oil indus-try is growing

by leaps and bounds.Malaysian palm oiloverall production atthe end of 2006 stoodat 15.88 millionMetric Tons and thenet export at 14.40million tons. Withthe country account-ing for about 43 per-cent of the world pro-duction, today

Malaysia stands at an enviable position ofbeing one of the leading producer-exporter ofpalm oil in the world.

With demand for vegetable oils increasingrapidly, the Malaysian palm oil industry hasentered a new phase. The product, which tillnow was seen as a major food product, has nowtaken the place as alternate fuel produce. Tan SriDatuk Dr. Yusof Basiron, CEO, Malaysian PalmOil Council (MPOC) predicts that with the cur-rent and projected high prices for petroleum andthe inherently high quality and productivity ofMalaysian palm oil, it is almost assured of a keyrole in the global biofuel trade.

Palm oil exports and the India connectionWith approximately 91% of its total productionbeing exported, Malaysia is currently the largestpalm oil exporter. The leading importers areChina (3.6 million MT p.a.), EU (2.6 million),Pakistan (0.97 million) and India (0.56 million).

In spite of the fact that India also has a well-established oils and fats processing industry, itnevertheless has to depend on imported oils,including palm oil for its needs. One of the fac-tors underlying India-Malaysian palm oil tradethat has gone down well with the Malaysianauthorities is that the duty on the product hasbeen reduced twice, once in April 2007 and againin July 2007 and currently stands at 45 percent asagainst 80 percent earlier on crude palm oil. Thishas helped the Malaysian palm oil suppliers in abig way. With duty slashed, palm oil will now beable to compete with other oils on a more level

playing field.Says Dr. Yusof, “With the reduction in

import duty, I hope to see the Malaysianpalm oil exports to India growing from theexisting half million MT to one million MTin the next one to two years.”

Quoting figures from the World Bank, hefurther says, “India has a long way to gogiven the big consumption disparity betweenIndians and consumers worldwide. In India theconsumption is 12kg per person per annum ascompared to the world consumption of 20-24 kgper person per annum, the energy requirementas outlined by the World Bank. However, we arequite optimistic as far as the Indian scenario isconcerned and are hopeful that in the near futurethe exports will grow.”

A viable alternate fuel sourceThe global prices of crude petroleum oil have hitan all time high. This has led countries aroundthe world to come out with alternate sources offuel supply. This has forced consumers, especial-ly those in European countries, to become moredependent on bio-diesel than before.

Oil palm is mainly grown in Malaysia andIndonesia. Palm bio-diesel is fast becoming aviable and attractive alternative to petroleum asit is the most efficient vegetable oils crop. Unlikeseasonal crops, oil palm, a perennial crop,

ensures a steady and consistent supply.Furthermore, the oil palm is well known to havehigh yields, an average of 3.5 to 5 tonnes of oilper hectare annually, which makes it the mosteffective of oil crops.

The Malaysian Palm Oil Council (MPOC) feelsthat palm oil will certainly qualify as secondgeneration biofuel in reducing carbon dioxideemission by more than 80 per cent, with a littlemore fine-tuning in its processing technology.

Bright future aheadThe future of Malaysian palm oil industry inIndia looks bright. With duties slashed andbilateral trade between the two countries pick-ing up, Dr Yusof says that a strong case is beingmade out to extend use of alternatives, such asbiofuels.

“Biodiesel is now the most preferred source ofalternative fuel. Furthermore, around the world,Biodiesel markets are opening up. This willprove beneficial to the industry as this will helpin creating more demand for palm oil.”

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Source: Asian Mobile News Awards Ceremony 2007, organised by Asian Mobile News.

We’d love to celebrate a little longer. But India is waiting. We’ve won three coveted awards from the Asian Mobile News Awards 2007:

Best Asian Mobile Operator 2007

Malaysia’s Mobile Operator 2007

Asian Mobile Operator CEO 2007

But our work never stops.

The world of Maxis is expanding. Aircel Limited, our joint venture with the

Apollo group of companies, is one of the fastest growing mobile

telecommunications companies in India. When the future holds so many

exciting opportunities, how could we possibly rest on our laurels?

DDrr.. YYuussooff BBaassiirroonnCCEEOO,, MMaallaayyssiiaann PPaallmm

OOiill CCoouunncciill

The accolades just don't stop comingKLIA's way. You can't blame AhmadLutfi bin Mustafa, Head,

Commercial Division, Kuala LumpurInternational Airport (KLIA), as he cannotstop grinning with joy. Says he "It is nomean achievement. We are proud aboutour journey so far. However, we havemany more milestones to achieve and wecannot rest before that."● Voted as the World's Best Airport in the

15-25 million passengers with Third BestAirport in the Asia Pacific andWorldwide by (ACI-ASQ) in 2007

● Voted as the World's Best Airport in the15-25 million passengers per annum cat-egory by AETRA in 2006 & 2005. If this wasn't enough, KLIA's interna-

tional cargo recorded higher growth with290 million kg for the first half of 2006 anddomestic cargo posted 33.06 million kg.52,762 aircraft used the KLIA for interna-tional flights during the first half of 2006compared with 50,488 aircraft previously.

Call it the pride of Malaysia or the mar-vels of the modern architecture, the beautyof KLIA is unmatched. Located in Sepang,famous for its Formula 1 Circuit for racingcars (Petronas Malaysian Grand Prix) andthe Motorcycle Grand Prix, KLIA is trulyspectacular. Designed by the renownedJapanese architect Kisho Kurokawa, it isone of the most modern and sophisticatedairports in the world.

KLIA, was launched by the King, Yangdi-Pertuan Agong Tuanku Ja'afa on the

27th of June 1998. Operating around-the-clock, KLIA is capable of handling 35 mil-lion passengers and 1.2 million tonnes ofcargo a year. The airport is one of the majoraviation hubs in Southeast Asia, alongwith Singapore Changi Airport andSuvarnabhumi Airport.

The airport is operated by MalaysiaAirports (Sepang) Sdn Bhd and is the hubfor Malaysia Airlines, Malaysia AirlinesCargo and AirAsia. KLIA is also thestopover point for the kangaroo route forMalaysia Airlines.

The airport has two locations, which areconnected by a monorail. The first build-ing is for checking in/out and for the han-dling of the luggage. That's also the build-ing for the domestic flights.

The second building (Satellite Building)is for the international flights. After check-ing in, the traveler will pass the customsand step into the monorail to go to theSatellite building. Here you can go tax-freeshopping and here you'll find the restau-rants and pubs.

The middle of the Satellite Buildingoffers travelers a landscaped jungle behindglass: forest trees and sculptured waterfallfor enjoyment and relaxation. The SatelliteBuilding features a forest in the airport.

KLIAThe pride of Malaysia

KLIAThe pride of Malaysia

Project Coordinator : RAJIV GIRHOTRAEditorial : PANKAJ BAKSHIDesign : SUBRATA JANA

8Cashing in onthe India advantage

Inaugurated in 1998, KLIA has today become one of themajor aviation hubs in Southeast Asia