MALAYSIA: Second Malaysia Plan, 1971-1975

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1971
Effective Start Year: 
1971
Effective End Year: 
1975
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Power, Multi-Sector
Energy Types: 
Power, Renewable, Hydropower
Issued by: 
Office of the Prime Minister
Source: 
Economic Planning Unit, Prime Minister’s Department
File: 
Second Malaysia Plan, 1971-1975
Overall Summary: 
The Second Malaysia Plan focues on a New Development Strategy setting the national unity as the over-riding objective of the country. It aims at eradicating poverty among all Malaysians and restructuring the Malaysian social structure in a context of economic expansion and well-being of the country.
Access
Bi-, multi-lateral mechanisms to expand access: 
A [...] loan of $2.6 million will be negotiated with the ADB during the Plan period.---[I]mportant sources of finance are suppliers' credits and bilateral aid offers previously made to Malaysia. [...] There is also considerable interest shown in financing this sector by the East European countries. The most suitable form of financing will be determined after international competitive bidding and evaluation of the technical as well as the financial aid terms.
Energy access priorities: 
Power resources must be available to meet the needs of general development as well as to facilitate the achievement of the Plan goals for social improvements in the remote areas.---The programme for rural electrification is an important one in the overall development strategy to accelerate the process of dispersal of industries and to increase productive activity in the rural sector.---One of the major objectives of the New Economic Policy is the dispersal of industries and the development of new industries in those areas of the country now largely dependent on traditional activities. [...] Of importance is the availability of adequate power at reasonable rates in the areas involved. The absence of power availability will not be permitted to become the limiting factor [...].
Energy access action plan: 
The allocation for power development [...]has also been made for an expanded programme of rural electrification.---[T]he extension of the national grid network to Central West Malaysia and the first interconnection to the East Coast in Kuantan, scheduled for completion in 1974, will provide additional rural areas in the region with cheaper electricity from the national grid. ---A sum of $3.32 million has been provided for rural electrification. This expenditure will provide electricity and its associated 'benefits to about 30 new rural areas. A new power station will be constructed in Lahad Datu.
Pricing
Energy pricing: 
The tariff structure employs the widely used block tariffs for domestic and commercial consumers and the two-part tariff with a demand charge for industrial consumers. A special industrial promotion tariff which offers power at rates-slightly above production costs has been established by the NEB as one element of the Government's policy to assist industrial development.
Energy Supply and Infrastructure
Infrastructure development priorities: 
A further 180 MW of steam plant will be added to the NEB system with the completion by 1972 of works now under construction to bring total installed capacity to 844 MW.---The power development programme in West Malaysia is aimed at further expansion of the network through 1985. [...] The forecast of power demand requires a system growth of about 11 % per year from 1970 to 1973 and an annual growth of 10% from 1974 onwards. The recommended sequence of plant installations [...] comprises: (a) the installation of three 120 MW thermal units at Port Dickson over the period 1974-76; and (b) the development of the Temengor hydro-electric project, consisting of three 87 MW units to be commissioned by 1977-78.---The Port Dickson station Stage Two, with further two sets of 60 MW each, will be completed by 1972.---[T]he Temengor hydro-electric project. [...] This will be the second hydro complex to be undertaken in West Malaysia [....] A final decision has been taken to proceed with the project to be commissioned in 1977~78. The project will have a generating capacity of 260 MW. [...] The project involves the construction of a dam, tunnel, generating station and associated trunk transmission lines, and will take about six years to complete. The engineering designs and site works will commence in mid-1971.---[T]he extension of the national grid network to Central West Malaysia and the first interconnection to the East Coast in Kuantan, scheduled for completion in 1974, will provide additional rural areas in the region with cheaper electricity from the national grid. ---The installation of the additional sets at Kota Kinabalu will be done in two stages: one 5 MW set in 1972 so as to increase generating capacity from the present 17.5 MW to 22.5 MW. A second 5 MW set will be installed in 1975 to bring total capacity to 27.5 MW.--- A new power station will be constructed in Lahad Datu.---[T]he installation of two 5 MW generating plants at Kuching to be commissioned in 1973 and 1975, a 2 MW set at Sibu required in mid-1972 and a 3 MW set in 1974, and a 1 MW set at Miri for commissioning in late 1972. Also included is the extension of SESCO's rural electrification programme. In addition, a 33 KV transmission system is to be constructed in Kuching.---Under the Plan the national grid is to be extended across the Main Range to the East Coast covering Bentong, Mentakab, Temerloh, Raub and Fraser's Hill by 1972 and Kuantan by 1974. Extension to other areas on the East Coast, such as Kota Bharu and Kuala Trengganu, will be timed to coincide with progress on other projects, the most important being the completion of the East-West Highway and the Temengor hydro-electric projects.
Investment
Energy sector investment priorities: 
The allocation for power development provides for a substantial programme to meet future demand, which is expected to nearly double within the next five years. Provision has also been made for an expanded programme of rural electrification.
Technology
Industrialization support: 
One of the major objectives of the New Economic Policy is the dispersal of industries and the development of new industries in those areas of the country now largely dependent on traditional activities. [...] Of importance is the availability of adequate power at reasonable rates in the areas involved.