Jitters over PKFZ extends to IDR
The Port Klang Free Zone (PKFZ) fiasco has forced the authorities to double their efforts to secure foreign investments from Dubai in the Iskandar Development Region (IDR).
One reason is that among those the authorities hope to inject RM382 billion of investments into the IDR in the next 20 years come from the same business community as the Dubai-based Jebel Ali Free Zone (Jafza).
The Port Klang Free Zone (PKFZ) fiasco has forced the authorities to double their efforts to secure foreign investments from Dubai in the Iskandar Development Region (IDR).
One reason is that among those the authorities hope to inject RM382 billion of investments into the IDR in the next 20 years come from the same business community as the Dubai-based Jebel Ali Free Zone (Jafza).
Jafza - which had been appointed to manage and market PKFZ - pulled out of a 15-year contract with its owner Port Klang Authority (PKA) last month.
Media reports indicate this was due to disagreements between Jafza and PKA over issues of red tape, inaccuracies in the minutes of meetings and attempted tax evasion.
Acknowledging the jitters over the fallout, Public Accounts Committee (PAC) chairperson Shahrir Samad said the investor community in Dubai is small and developments affecting some of its members will be known by others.
"What happens in Port Klang can raise questions in the minds of investors in other areas of the country, especially those with big investments," he said when contacted.
"The Dubai (business) community is a small one, and they would know each other," added the Johor-based politician.
PM 'uneasy'
Other than the split between Jafza and PKA, a slew of allegations have implicated PKA and PKFZ senior officials as well as those in the transport and finance ministries.
Among them are massive cost overruns to the tune of more than RM3 billion, allegations of conflict of interest and interference by political figures with vested interests in PKFZ, and a dubious land deal .
While PKFZ and transport officials have maintained a silence over the matter, Prime Minister Abdullah Ahmad Badawi has reportedly "expressed unease" over the dispute between PKA and Jafza.
Abdullah has also ordered an explanation from Transport Minister Chan Kong Choy.
Shahrir said if the statement from the Transport Ministry is not issued soon as promised by Chan, PAC would have to obtain the clarifications.
As of now, however, none of the investors in IDR have pulled out for the specific reasons arising out of the PKFZ fiasco, he noted.
"No one has pulled out. There has been no negative impact on investments in the IDR... yet. But I am concerned," said Shahrir.
