MSC vs SJC

In the 80s, Mahathir created the visionary MultiMedia Super Corridor to stir economic activities to take Malaysia through the 3rd Wave, structuring the Malaysian economy to meet the growing changes instituted by the dynamic forces of the internet and Information Technology revolution (4th Wave) and to act as the catalyst to pump-prime the Malaysian Economy.

Multimedia Super Corridor is a Government designated zone, designed to leapfrog Malaysia into the information technology and knowledge age. MSC includes an area of approximately 15x50 km² which stretches from the Petronas Twin Towers to the Kuala Lumpur International Airport and also includes the towns of Putrajaya and Cyberjaya.

The Multimedia Super Corridor aims to attract companies with attractive tax breaks and facilities such as high speed internet and proximity to the local international airport, Kuala Lumpur International Airport.

The result was the fact that the secondary intent was somewhat fruitful but the primary objective was cremated in the dark cloudy hades. Cyberjaya becomes a light industrial estate and Putrajaya becomes a Federal Administrative Centre, less the multi-media forceful dynamism and as a consolation, there were glimpse of broadband presence.

Now, two decades later, and a changed in leadership, after 3 solid years of warming his premiership, the initial objectivism of parring off foreign debts and the first cry of reactivation of the Argriculture RE-volution and the batik-economy, it was clear that the nation tho' showing economic growth by virtue of the strong manufacturing exports (largely contributed by the foreign multi-national corporations), the slowing and ailing economy had triggered deflation and a continuous contraction of the construction economy had infected and emasculated the economy with spiralling effect and causing great grief to business entities. The construction industry was the worst hit with almost nothing left for most of the medium size Bumiputra contractors who will be suffocated soon if no drastic and radically effective pump-prime actions are taken to inject economic air into their lungs.

With a sigh of relief was the announcement that RM15bil from the 9MP will be implemented within 3 months. The news brought some hope ... which will remain hope till affirmative actions proved otherwise. However, there seems to be some sceptism whether we would actually see RM15b of projects been spreadwide to the masses of contractors or will it be Pareto's doctrine of 80:20 (80% for giant crony-corp and 20% to the remaining 80% of contractors).

So far, only the education ministry had rushed out the implementation of one miserable project in Malacca, a pre-negotiated contract award which, betrayed the promised open tender system as announced. It had been observed that many of the other projects from the 9MP had been under negotiation in EPU. The signs are there that most of the projects will be negotiated-type contract and the beneficiaries will be the gigantic corporations and State-own corporations, including well-known cronies and high-profile corporations such as UEM, Ranhill, MMC, DRB-HICOM, MTrans, YTL, TSR, AZRB, MTD, Gamuda, MRCB, IJM, PJHB, etc.

To add flavour to par off the agonising growing dissent, the economic advisors are concocting some economic mimics. The first screenshots is named:

Abdullah's Baby Girl - a Super Corridor in South Johor and the pre-supposed concoction of the 2nd one in Penang to be named Northern Corridor and the 3rd to be Eastern Corridor.

"Let me stress that this is my idea. It did not come from anyone else. It is my own vision and plan to create this super corridor in south Johor to make it the nation’s premier growth centre," Prime Minister Abdullah Badawi said.

The grand scheme seems to bring some air of delight to the business corporations with many hoping they will be able to jump into the new economic bandwagon which, economist and analyst prophesizing with renewed vigour.

However, the South Johor Corridor (SJC) draws much cynicism and sceptism. Firstly, the pronounced RM15bil for the SJC isn't much about governmental economic development initiatives.

Observing the contents and context, large portion of the pronouncement are private initiatives and mostly commercial enterprising activities.

For example, the Danga Bay Billion-dollar project was a joint-venture initiated by PLCs with the State Government having 30% shareholding, primarily contributed via land-share swap. This project kick-off in 2003 during Mahathir's tenure and was drifting sideways largely due to lack of investment from Singaporeans.





Danga Bay is an integrated waterfront city covering 809ha, which will be developed in phases stretching over 15 years.

Another is the UEM/Pro-Link Bandar Nusajaya project which stretch over 10,000 hectares of land around Gelang Patah. Nusajaya is located at the south-western tip of Johor by the Gelang Patah area, and is linked to Tuas in Singapore by the 2 km long Second Crossing bridge.

Again, this project was snailing around for the last ten years due to lack of commercial viability and lack of investments of Singaporeans.

Currently, the Johor Govt had given a shot in the arm to UEM by the development of the Johor State New Administrative Centre and residential projects which will be an investment funded by the Johor State Govt. The Johor Government’s new administrative capital, which is now under construction and is due for completion by August 2007.

Spread over 130ha and costing RM400 million, it will have a new legislative assembly complex and State Secretariat and enclaves for State and Federal Government offices.

Apart from these two projects, the other included in the RM15bil announcement is the Ranhill's RM1.48bil Senai-Desaru Road Widening DBT Project. This project will open up Johor’s southeast coast and "might" spur development in Desaru, where a "Korean investor" have shown some interest to invest RM2 billion building a resort. It's still in dreaming stage.


Yet another is the proposed Disney land project which will worth some RM3bil investments from foreigners and possibly some contributions from the Floating City project of Pilecon which is struck with incurable cancer and dangling in ICU ward.

So, RM15bil is taken up. What does the Class A and Class F contractors get from this supposely RM15b? Well, it can be said that they could benefit from the spill-down effect and some sub-contracting works. However, these sum is to be spread over a possible 10-15 years gestation period. The annual economic turnover will be somewhat about $2bil.

Pak Lah has also included a plan to built a Cybercity - Johor’s version of the Multimedia Super Corridor with the creation of a Cyberport at the 30-storey Menara Sarawak here. The proposed cybercity will be built in Kulai.

There will also be a Logistic hub - The port of Tanjung Pelepas, Senai Airport and Johor port in Pasir Gudang will be synergised to provide air, sea and land/rail links to woo multinational corporations.

What about the Northern Corridor? Well, UEM would most likely be the ultimate beneficiary. The Penang 2nd Bridge is worth some $2-3 billion, the Jelutong Ring-road will be worth about $1.5b and the proposed monorail project will be worth some $2b too. The beneficiaries looks certain to be a few such as MTrans, UEM, MMC and possibly YTL.

Eastern Corridor will benefit MTD and WCT. The others in the run will be corporations connected with the Pahang Royalties.

The question arises is: what would the masses of contractors numbering tens of thousands entities' share of the economic cakes within the 9MP? We hope they would get enough to keep their companies afloat and to feed their families and employees and their families.

Khazanah and PNB have been dragged into the PFI investments. Good or bad, yet to be seen. EPF had been hooked-into and the CEO Azlan is leaving as his tenure is not renewed; don't know why but you may have to guess.