KUALA LUMPUR (Feb 16, 2012): Malaysia leads in policies on infrastructure development, with its private-public partnership (PPP) concept paving the way, said Asean Constructors Federation chairman Jorge A. Consunji.
“One of your best policies is to make use of both private and public funding. You’re using private funding to develop partners for your basic infrastructure, at the same time making use of public funding to deliver the basic necessities, whereas typically in a lot of developing countries, the government spends for both and if you want to catch up, you have to be able to tap into the other sources of funds and partnership with the private sector,” he said.
Speaking to reporters on the sidelines of the 4th Malaysian Construction Summit today, Consunji said Malaysia is the leader in PPP as it has introduced the concept way ahead of other Asean countries.
“With the global financial crisis in Europe and America, all eyes are not focused on Asia. The advantage of Malaysia today is that you have prepared your roadmap way ahead of the other Asean countries. Personally, I believe that you have jumpstarted the other countries… For example, Singapore, it is a well- developed country but their focus is not the same as Malaysia… it is complementary,” he added.
Earlier, in his keynote address, Works Minister Datuk Seri Shaziman Abu Mansor said Malaysian companies are currently undertaking 82 overseas projects worth about RM38 billion.
“Our main presence is in the Middle East, followed by India, Asean and Africa,” he said, adding that there is still room to increase our presence overseas.
“Over the next decade, it is estimated that Asean economies will require approximately US$60 billion a year to fully address the region’s infrastructure needs. Therefore, the creation of the Asean Infrastructure Fund and China-Asean Investment Cooperation Fund to finance major infrastructure, energy and construction projects across the Asean region is highly welcomed,” he added.
Shaziman’s speech was read out by the ministry’s secretary-general Datuk Himmat Singh.
The Malaysian Construction Summit is an annual event organised by the Master Builders Association, Malaysia. This year’s theme was “Infrastructure Investment Through Public-Private Partnership”.