STATE LOOKING AT OIL REFINERY PROPOSAL

MUAR (Malaysia), Jan 3 (Bernama) -- The Johor state government is looking at
a proposal by an international company to invest RM17 billion (US$4.87
billion)to construct an oil refinery at Teluk Ramunia, in southern disctrict of
Kota Tinggi.
Menteri Besar (chief Minister) Abdul Ghani Othman said the state government
was assessing the effects of the project on the lives of fishermen and tourist
centres in the area before giving approval.

He was informed of the investment proposal through a letter from the
Malaysian Industrial Development Authority (MIDA) three days ago.

"The state government does not have any problem in preparing a site for the
purpose because we have about 1,200 hectares for the industrial sector at Teluk
Ramunia," Abdul Ghani said.

He was speaking to reporters after a gathering with leaders of an United
Malays National Organisation (Umno) branch here Friday evening. Umno is the
political party leading the ruling Barisan Nasional coalition.

Abdul Ghani said an industrial impact study was needed because oil refining
could affect the livelihood of the fishermen and the tourism industry if there
was pollution.

He also said that the southern state of Johor was still being favoured by
foreign investors although the world was facing an economic downturn due to the
financial crisis in the United States.

According to him, statistics showed that 28 percent or almost one-third of
the overall investment value in the country went to Johor.

Abdul Ghani said he hoped that the federal government will give attention to
small projects in the second economic stimulus package to be announced by Deputy
Prime Minister Najib Razak soon.

He said small projects were important for Class F contractors to get jobs,
thus activating downstream economic activities at the grassroots level, similar
to the measure taken by Malaysia during the 1997-1998 economic crisis.
-- BERNAMA