IPOH: The RM180 million piped gas project in Perak will begin in October, with most of the cost will be born by Gas Malaysia Bhd.
International Trade and Industry Minister II Datuk Seri Ong Ka Chuan said the project, to be completed in two years, would help boost the industrial sector in the state.
"Gas Malaysia has agreed to allocate RM120 million and we will look for other sources for the remaining amount," he said after witnessing the signing of the memorandum of understanding (MOU) on a lean partnership between Malaysia Productivity Corp (MPC) and Finisar Malaysia Sdn Bhd here yesterday.
Ong was reported to have said before that the state government should bear the remaining cost to help the piped gas supply project get off the ground as soon as possible, since it was one of the main issues raised by investors.
He was quoted saying that the project would help attract more investors and businesses to Perak, as well as encourage Proton Holdings Bhd to move its manufacturing plant in Shah Alam to Proton City, Tanjung Malim.
However, Menteri Besar Datuk Seri Dr Zambry Abd Kadir later said that the state government could only allocate RM10 million for the project.
On the MoU, Ong praised Finisar Malaysia for taking up the challenge to implement the 'lean management system' as a tool to improve its business process.
He said Finisar Malaysia had proven that it could help promote better outcome through the lean management system, where it had recorded a total savings of RM8 million from 2014 to date.
Under the 11th Malaysia Plan, he said MPC was tasked to foster a strong working relationship with various industries in driving the whole nation towards higher productivity.
"The public and private collaboration could help drive higher productivity growth up to 3.7 per cent per annum, which could help us achieve a target of labour productivity of RM92,300 per employee by 2020," he said .
Earlier, Ong and Finisar Corp global operations executive vice-president Joseph Anthony Young witnessed the MoU signing between MPC deputy director Ab Rahim Yusoff and Finisar Malaysia vice-president Yap Suan See.