MALAYSIA: Sixth Malaysia Plan (SMP), 1991-1995 (Chapter XI - Energy)

Meta Data
Title in national language: 
RANCANGAN MALAYSIA KE ENAM (RM6) 1991 - 1995
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1991
Effective Start Year: 
1991
Effective End Year: 
1995
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Energy, Power, Multi-Sector
Energy Types: 
All, Coal, Oil, Power, Gas, Renewable, Bioenergy, Hydropower, Solar, Wave and Tidal, Wind, Other
Issued by: 
Economic Planning Unit
Source: 
Economic Planning Unit, Prime Minister’s Department (EN)
File: 
Sixth Malaysia Plan (SMP), 1991-1995 (MS)
Sixth Malaysia Plan (SMP), 1991-1995 (Chapter 11 - Energy) (EN)
Overall Summary: 
The Sixth Malaysia Plan aims at sustaining the rapid economic growth of the country after the recession in 1985-1986. After a review of the development performance, the Plan explores the Development Framework for 1991-1995 and strategies.
Access
Energy access action plan: 
In Peninsular Malaysia, the implementation strategy will be to further strengthen the system, especially in the identified rural growth centres to bolster industrial development. In Sabah and Sarawak, programmes will be intensified to cover more isolated villages.
Energy access targets: 
During the Sixth Plan period, programme implementation will aim to achieve full coverage for Peninsular Malaysia and greater coverage for Sabah and Sarawak. By the end of the period, the national coverage is expected to reach 90 per' cent, with almost 100 per cent for Peninsular Malaysia, 73 per cent for Sabah and 77 per cent for Sarawak.
Renewable Energy
RE priorities: 
[P]olicy measures will be undertaken to ensure a timely schedule for the transition away from reliance on oil and prepare the economy for the final depletion of oil resources in the long term. The substitution of oil and the diversification of energy supply based on available indigenous resources will, therefore, be central to the objectives of energy supply policies and strategies.
RE action plans: 
With respect to hydro development, a major hydroelectric project located along Sg. Pergau, Kelantan will be implemented.[...] In Sabah, the Sabah Electricity Board (SEB) will implement the Liwagu hydroelectric project[...].
Environment
Energy environmental priorities: 
Efforts will be undertaken to formulate safety standards and regulations for mining operations as well as measures to minimize environmental pollution.
Pricing
Fossil fuel subsidies: 
[T]he Government has laid the incentive framework to encourage users of motor vehicles,particularly commercial fleet, to convert to CNG (clean natural gas). These incentives include pricing mechanism as well as import duty and sales tax exemption on conversion kits.
Energy pricing: 
Pricing policies will be directed at ensuring that energy prices will reflect the economic or true cost of supply, be able to raise sufficient revenues for the sector's development as well as remain competitive to encourage diversification of energy resources into greater utilization of indigenous resources, such as gas.---In the electricity sector, a competitively-priced gas supply will be adopted. In the industrial, commercial, residential as well as the transport sectors, prices will also be determined on the basis of competitiveness with alternative fuels.---[E]fforts will continue to be made to ensure stability in electricity tariffs at acceptable and internationally competitive levels, while at the same time, taking into account the needs of power utilities to generate sufficient revenues for their future development plans.
Energy Supply and Infrastructure
Infrastructure development priorities: 
The use of compressed natural gas (CNG) as autofuel will be promoted as an alternative to diesel and gasoline.----The substitution of oil and the diversification of energy supply based on available indigenous resources will, [...], be central to the objectives of energy supply policies and strategies.---The completion of the Peninsulat; Gas Utilization II (PGU II) project in 1991 will enable the transmission network to reach the growth centres in the western and southern regions of Peninsular Malaysia.---Parallel to the gas development in the power sector, a gas reticulation network to serve the industrial, commercial and residential sectors will be implemented.---The necessary network of infrastructural facilities to promote the use of CNG, such as conversion as well as servicing and maintenance workshops, will be developed in line with the completion of the PGV II project.---In Sarawak, two major gas-based projects. the middle distillate syntllesis (MDS) and the expansion of the LNG plant, will be irnplemented in Bintulu. [...] The LNG plant will be expanded from the existing three trains to six trains. This expansion programme is expected to be completed by the end of 1996.---[...] Efforts will be geared towards the establishment of new gas-based generation plants and conversion of existing oil-fired plants into gas-based ones. In Peninsular Malaysia, Tenaga Nasional Berhad (TNB) is expected to add some 3,500 MW of new generating capacity, which will be largely gas based [...]. In addition, the conversion of existing thermal plants into gas-based generation will also be undertaken. The Sarawak Electricity Supply Corporation (SESCO) will commission a total of 240 MW of gas turbines at Bintulu [...].---With respect to hydro development, a major hydroelectric project located along Sg. Pergau, Kelantan will be implemented.[...] In Sabah, the Sabah Electricity Board (SEB) will implement the Liwagu hydroelectric project.---In Peninsular Malaysia, some 1,800 kilometres of transmission lines will be installed.---In Sarawak the transmission and distribution projects are geared towards interconnection between towns, industrial zones of timber-based industries and industrial estates. [...] A 275 kV transmission line will be extended from Sibu to Bintulu.
Trade
Energy trade priorities: 
Gas Development: apart from promoting its direct usage in the industry, commercial and residential sectors, its potential for greater exports will also be exploited.
Import taxes and fee exemptions: 
[T]he Government has laid the incentive framework to encourage users of motor vehicles,particularly commercial fleet, to convert to CNG (clean natural gas). These incentives include [...] import duty and sales tax exemption on conversion kits.
Investment
Independent power producers: 
[P]rivate sector participation will also be promoted to encourage competition in the sector. Towards this end, the concept of build - operate transfer, particularly in power generation. will provide avenues for private sector participation.---PETRONAS will, as far as possible, restrict itself to upstream activities and leave business opportunities in the downstream sector for the private sector, particularly local entrepreneurs.
Local content requirement: 
In the implementation of the energy diversification strategies, emphasis will be placed on the utilization of domestic resources.
Investment climate development: 
PETRONAS will, as far as possible, restrict itself to upstream activities and leave business opportunities in the downstream sector for the private sector, particularly local entrepreneurs.
Governance
National policy structure: 
Efforts will be undertaken to formulate safety standards and regulations for mining operations as well as measures to minimize environmental pollution.
Energy institutional structures: 
The [gas reticulation] network will be privatized. A regulatory body will be instituted largely to ensure competitive pricing as .well as the enforcement of safety standards and technical specifications.
Technology
Natural gas transportation technology: 
The use of compressed natural gas (CNG) as autofuel will be promoted as an alternative to diesel and gasoline.
R&D renewable energy: 
Research and development efforts in the area of non-conventional energy will also be encouraged.---There is potential for solar, wind, wave, biogas and biomass energy for domestic and small-scale industry, particularly in isolated areas. In the light of this, research and development will be encouraged to develop their potential.