TRANSPORT SECTOR CAN CONTRIBUTE FURTHER TO ECONOMIC GROWTH

KUALA LUMPUR, Aug 20 (Bernama) -- The Transport Ministry is optimistic that the
transport sector can contribute further towards Malaysia's economic growth in
the third quarter this year based on encouraging developments so far.

According to its minister Kong Cho Ha, the transport sector is an important
component of the economy impacting on the development and welfare of the
Malaysian population.

A good and efficient transportation system is a requirement for economic
development in Malaysia, which has an open and highly dependent economy and
generates large volume of trade to be transported to global markets, Kong said.

"The aspect of more linkages and connectivity by sea, air and land
transportation both within Malaysia and other overseas destinations not only promote
and facilitate the trade but also the tourism industry," he said in a statement.

Given its importance to the national development, the government has placed
strong emphasis on the development of transport infrastructure, namely ports,
airports, road and rail, under its various development plans, Kong said.

A total sum of RM61.2 billion was spent under the Eighth Malaysia Plan and the
Ninth Malaysia Plan for the transportation sector comprising of roads, urban
transport, rail, ports, airports and rural roads, he said.

Kong said the inclusion of the improvement in the public transport system under
the National Key Result Areas (NKRAs) is another major step to save journey time
of daily commuters and other users.

This will eventually increase productivity of workers in terms of
punctuality and reliability of the system, he said.

The other impact is the cost savings from the modal transfer from using private
transport to public transportation mode.

As for the maritime sector, Kong said its importance and immense
contribution to the economy could not be overemphasised.

"Our ports act as gateway for the economy and facilitate much of the nation's
trade, 95 per cent of which is carried by seaborne transport," he said.

"Together, ports and the shipping sector generate tremendous multiplier effects
and create employment opportunities."

According to Kong, Malaysia is poised to grab a bigger slice of intra-Asean and
intra-Asian trade given its excellent port infrastructure and good maritime
institutional and regulatory framework.

"With the Asean Free Trade Area set to become a reality by 2015, Malaysia's
ports, some of which offer world-class services at a competitive cost, are set
to reap the opportunities presented by a huge and integrated regional market,"
he said.

He added that with an efficient maritime sector in place, Malaysia's economy
should be on track to register commendable performance despite sluggish global
economic recovery, on the back of its ability to handle bigger volumes of trade.
(US$1=RM3.13)
-- BERNAMA