THE government is assisting industries cope with the gas supply shortage through a redistribution of gas from the independent power producers (IPPs).

 

National oil company Petroliam Nasional Bhd is now supplying the gas to the industries.

 

Malaysian Industrial Development Authority (MIDA) director-general Datuk Jalilah Baba said 100 million standard cubic ft (scf) of natural gas has been set aside for distribution between 2009 and 2011.

 

For 2012 to 2013, the government is looking at importing gas.
 
"We have also been approached by companies interested to import and distribute gas in the country. Discussions are ongoing," she said during a dialogue session at MIDA's annual media conference in Kuala Lumpur yesterday.

 

Gas supply shortage has been a major grouse among some industries since 2008.

 

Jalilah said with the government's thrust in green technology and renewable energy, prospective investments in these industries would not be dependent on gas.

 

Earlier, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said it was incorrect to attribute the dip in last year's foreign direct investments to the gas shortage issue.

 

He said Malaysia remains an attractive destination for greenfield investments in 2009, with approved investments amounting RM752 million in the renewable energy and energy conservation sub-sectors.

 

"Recognising the importance of the services sector, the government will undertake measures to progressively liberalise the other services sub-sectors," he added.

 

The government will launch the New Economic Model in the first quarter of the year.

 

It will intensify efforts to attract industries and new growth areas such as automotive, aerospace, electronics, petrochemical, biotechnology, machinery and equipment, pharmaceuticals and medical equipment.