Published January 5, 2009

Johor government looking at RM17b oil refinery proposal

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(MUAR, Malaysia) The Johor state government is looking at a proposal by an international company to invest RM17 billion (S$7.1 billion) to construct an oil refinery at Teluk Ramunia, Kota Tinggi.

Menteri Besar Abdul Ghani Othman said the state government was assessing the effects of the project on the lives of fishermen and tourist centres in the area before giving approval.

He was informed of the investment proposal through a letter from the Malaysian Industrial Development Authority (MIDA) five days ago.

'The state government does not have any problem in preparing a site for the purpose because we have about 1,200 hectares for the industrial sector at Teluk Ramunia,' Mr Abdul Ghani said.

He was speaking to reporters after a gathering with leaders of Umno Cawangan Zon Kesang at Kesang Batu 7 here on Friday evening.

Mr Abdul Ghani said an industrial impact study was needed because oil refining could affect the livelihood of the fishermen and the tourism industry if there was pollution.

He also said that Johor was still being favoured by foreign investors although the world was facing an economic downturn due to the financial crisis in the United States.

According to him, statistics showed that 28 per cent or almost one-third of the overall investment value in the country went to Johor.

Mr Abdul Ghani said he hoped that the federal government will give attention to small projects in the second economic stimulus package to be announced by Deputy Prime Minister Najib Tun Razak soon. -- Bernama