MALAYSIA: Third Malaysia Plan, 1976-1980

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1976
Effective Start Year: 
1976
Effective End Year: 
1980
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Energy, Power, Multi-Sector
Energy Types: 
Oil, Power, Renewable, Hydropower
Issued by: 
Office of the Prime Minister
Source: 
Economic Planning Unit, Prime Minister’s Department
File: 
Third Malaysia Plan, 1976-1980
Overall Summary: 
The Third Malaysia Plan is a continuation of the efforts of the previous development plans to achieve national unity along with the eradication of poverty, social and economic development. Indeed, although Malaysia has achieved much progress in this direction, there is more to be done.
Access
Bi-, multi-lateral mechanisms to expand access: 
The foreign exchange costs will, be financed through external borrowing from multilateral agencies such as, the World Bank and the Asian Development Bank and through bilateral and suppliers' credit offers. The projects expected to be financed through the latter sources include the Temenggor, Tembeling, Trengganu and Tenom-Pangi Hydro-electric Projects and the thermal projects at Prai and Pasir Gudang.
Energy access priorities: 
Appropriate measures will be taken to ensure that the development of power supply is adequate to meet the projected demands of industry, commerce and domestic consumption.---The programme for rural electrification will continue to be expanded during the Plan period as part of the overall effort to provide social amenities to enhance the quality of life and living standards among the rural communities.
Energy access action plan: 
Rural electrification and rural water supply programmes will be stepped up in Peninsular Malaysia, Sabah and Sarawak.---The gradual expansion of the national grid to cover the whole of Peninsular Malaysia represents a further effort to reduce the costs of providing power through diesel stations especially for areas in the East Coast States of Kelantan, Trengganu and Pahang.---To ensure an effective rural electrification programme, a comprehensive study will be undertaken to determine the most cost-effective way of expanding programmes [...].---The development of electricity in Sarawak will also be expanded to meet increased domestic, commercial and industrial demands. ---To tap the vast hydro-electric potential that exists in Sarawak for future power development, a detailed feasibility study will be initiated for the Batang Ai and Batang Belaga Hydro-electric Schemes.
Energy access targets: 
The target is to provide electricity to 2,630 villages or about 21,000 rural households.---[in Sabah] The rural electrification programme for the State will also be accelerated to cover 45 new rural areas to benefit about 4,800 households or 24,000 people.---The development of electricity in Sarawak will also be expanded to meet increased domestic, commercial and industrial demands [...] The rural electrification programme will be expanded to supply another 3,000 households.
Renewable Energy
RE priorities: 
Power generation projects will be programmed and developed based on the most suitable mix of thermal and hydro-electric sources.
RE action plans: 
To tap the vast hydro-electric potential that exists in Sarawak for future power development, a detailed feasibility study will be initiated for the Batang Ai and Batang Belaga Hydro-electric Schemes.
Pricing
Energy pricing: 
An appropriate pricing policy will be developed by the various power authorities to, ensure that the tariffs charged for supplying power to various categories of consumers reflect the actual costs of providing power except in those cases where subsidies are needed as part of the Government's poverty redressal efforts.---The NEB tariffs are designed to reflect the actual operating costs of supplying power. However, the tariffs will be structured so as to ensure that the poor have effective access to electricity as well as to promote the development and dispersal of commercial and industrial activities to the less developed States.
Energy Supply and Infrastructure
Infrastructure development priorities: 
The gradual expansion of the national grid to cover the whole of Peninsular Malaysia represents a further effort to reduce the costs of providing power through diesel stations especially for areas in the East Coast States of Kelantan, Trengganu and Pahang.---the following projects will be implemented under the Plan:- (i) the completion of the Temenggor Hydro-electric Project with four 87 MW units; (ii) the extension of the Prai Thermal Power Station-with three 120 MW units; (iii) the development of a new thermal power station at Pasir Gudang with two 120 MW units; (iv) the development of the Tembeling Hydro-electric Project with four 27.5 MW units; and: (v) the development of the Trengganu River Hydro-electric Scheme with four 100 MW units.---The transmission facilities will [...] be extended to Pekan and Tanjung Gelang by 1976 and to Jengka and Jerantut by 1977. Other transmission lines will be extended from Temeriggor to Machang, Kota Bharu and Kuala Trengganu by 1980.---[I]nstallation of four 8.2 MW diesel sets at Kota Kinabalu, two 8 MW sets and one 5.5 MW set at Sandakan, two 5 MW sets at Tawau and other smaller units at Kudat, Lahad D'atu, Beaufort, Sempoma, Keningau, Ranau and Kota Belud. [...] Additional transmission and distribution facilities associated with the generating capacity expansion programmes will also be constructed[...] One major project to be implemented by the SEB during the Plan period is the Tenom-Pangi Hydro-electric Scheme. [....] The first two 22 MW units are expected to be commissioned in 1980. The rural electrification programme for the State will also be accelerated to cover 45 new rural areas to benefit about 4,800 households or 24,000 people.---A new generating plant will be installed at Kuching comprising three 12MW diesel generating sets which will be commissioned in 1977/ 79. Two diesel sets of 8MW will also be installed at Sibu by 1977. Other diesel sets will be provided to meet power requirements in Miri and Bintulu. [...] Additional transmission lines and sub-stations will also be constructed in the Kuching and Sibu areas. The rural electrification programme will be expanded to supply another 3,000 households.
Investment
Energy sector investment priorities: 
The size of investment needed for development of the country's oil and natural gas resources will be substantial, with most of the investments envisaged to take place after 1980. A Masterplan study for the development of Malaysia's oil and natural gas industry is being undertaken by PETRONAS.
Investment climate development: 
[T]he Government fully recognizes the important role of foreign technology and financing in the petroleum industry and the need to maintain adequate safeguards for the participation of the private sector in the industry. As such, the Government will implement the [Petroleum] Act fairly, equitably and in a manner that will not adversely affect Malaysia's investment climate [...].
Public Private Partnerships: 
Although PETRONAS is the only public sector agency participating in petrolelum related activities, the Government welcomes the participation of the private sector provided it is consistent with overall national objectives.---The Government, through PETRONAS, will assume an increasingly significant role in the development of these resources particularly through joint ventures in the extraction as well as downstream activities of the industry. The private sector is expected to play an important role in both upstream and downstream· activities.
Governance
National policy structure: 
A Masterplan study for the development of Malaysia's oil and natural gas industry is being undertaken by PETRONAS.---An appropriate pricing policy will be developed by the various power authorities [...].
Technology
R&D renewable energy: 
To tap the vast hydro-electric potential that exists in Sarawak for future power development, a detailed feasibility study will be initiated for the Batang Ai and Batang Belaga Hydro-electric Schemes.