VAST POTENTIAL FOR MALAYSIAN INVESTORS IN LAOS

By D. Arul Rajoo

VIENTIANE, Sept 16 (Bernama) -- Although Malaysia's investment in Laos is
small compared to other Asean countries, there is vast potential in the mining,
construction, tourism, hydropower, agriculture and education sectors.

Malaysia-Laos Association president Zulkiflee Abdullah said Malaysian
investors could tap opportunities arising from the Laotian government's various
projects to lift the economy of the country.

"Things are moving now, with the construction of more roads and other
infrastructure projects," said Zulkiflee, who is chief executive officer of
International Commercial Bank.

He said while Laos may be small in terms of domestic market of just six
million people, they can be big in certain sectors like mining, power plant and
mining.

"One sector is the hotel industry as rooms are not enough during peak
season. With more international flights and exposure of the country to the
outside world, more business people and tourists are coming here," Zulkiflee
said in an interview here.

According to the Malaysian Embassy in Laos, from 2000 to 2008, Malaysia's
total cumulative investment in Laos reached US$135.3 million in 33 projects,
mainly in the sectors of agribusiness, mining, hotels, textile and garment
manufacturing, banking, wood industry, services and trading.

Among the biggest players are Gamuda, which is constructing the 450-megawatt
Nam Theun 1 hydropower project in central Laos, and Mega First Corporation,
developer of the Don Sahong Hydropower Project in the Khong District of the
Champasak Province.

In recent years, the Laotian government had announced its intention to build
close to 30 new dams, with intention to sell power to Vietnam and Thailand.

Another Malaysia-based company, Giant Group Limited, was awarded a US$5
billion contract to construct a 220-kilometre electrified railway track in
Savannakhet, Laos, linking Mukdahan in Thailand in the west and Lao Bao,
Vietnam, in the east.

Last week, Malaysia's Universal Pacific Ltd was given a 50-year concession
to develop a special economic zone near the newly-completed Laos-Thailand
railway line across the Mekong River.

Zulkiflee said besides these, Malaysian investors could also tap potential
in agriculture, especially rubber and plam oil, advertising, printing, and
education, mainly in technical and English programmes.

"Things are expected to move even faster when Laos hosts the SEA Games in
December," he said.
-- BERNAMA