News & Events

[ 22-04-2013 ]
Kedah BN Confident Of Attracting Foreign Investors To ZIPY If It Retakes State
ALOR SETAR, April 21 (Bernama) -- The Kedah Barisan Nasional (BN) is confident of attracting foreign investors to the Yan Petroleum Industry Zone (ZIPY) if it retakes the state in the 13th General Election (13GE) on May 5.

Its deputy chairman and Deputy Minister of International Trade and Industry Datuk Mukhriz Tun Dr Mahathir said the existing good relations between the federal government and foreign investors would help attract high impact industries to Kedah.

"I am confident of securing the local and foreign investors as that was my job at the Ministry of International Trade and Industry.

"This for sure needs the involvement of a government that understands the needs of foreign investors. For that reason, they too will be more confident with what we have done at the federal government level all this while," he told Bernama.

The redevelopment of ZIPY is a mega project planned by the BN for Kedah in the 13GE, it wins back the state.

Capable of generating high income for the state, apart from creating lucrative job for the people, ZIPY is among the highlights of the Kedah BN's general election manifesto.

ZIPY, planned by the Kedah BN in 2007 when it ruled the state, involves the construction of an oil refinery to process crude oil from West Asia, before being sold to East Asian countries.

When the opposition took over Kedah after the 2008 general election, they continued with the project but changed the name to the Sungai Limau Hydrocarbon Hub (Sulihh).

But its implementation was stalled due to various factors, including the excuse that the chosen developer faced technical and financial problems.

The project, going by the earlier planning, was to have been completed this year and could generate an income of RM400 million annually for the state coffers.

ZIPY was a venture between foreign and local investors. The role of the foreign companies is to guarantee demand for the product or oil stored within it, while local investors would build the infrastructure.

"From my discussions with the private sector parties involved, they are awaiting a change in the state government, and have given an assurance that the project can go on if BN wins at the general election," Mukhriz said.

He expressed confidence that should the Kedah BN implement the project, it would have a big impact on the economy, not just in Yan, but throughout the state.

"A centre like this would take between three to four years to develop. But even during construction, it will open up economic opportunities at various levels," he added.

Mukhriz said the state government had failed to fulfill its obligations to provide job opportunities for the people, while, Kedah's development had stagnated over the past five years.