Selasa, 27 November 2012

Lim Guan Eng

Lim Guan Eng

Kong Cho Ha Should Do His Duties As Transport Minister And Visit The Twin Distressed Projects Of RM250 Million Expansion Of Penang International Airport And RM 43 Million Tanjung City Marina As Well As The Troubled RM65 Million Swettenham Pier Project.(en/bm/cn)

Posted: 26 Nov 2012 10:47 PM PST

Press Statement By Penang Chief Minister Lim Guan Eng In Komtar, George Town On 27.11.12.

Datuk Seri Kong Cho Ha should do his duties as Transport Minister and visit the twin distressed projects of RM 250 million expansion of Penang International Airport and RM 43 million Tanjung City Marina as well as the troubled RM 65 Million Swettenham Pier project. The Penang state government is shocked by the outrageous claim by Malaysia Airports Holdings Bhd (MAHB) that renovation and upgrading works at the Penang International Airport in Bayan Lepas have been "substantially completed".

Any passenger who uses the Penang International airport facility knows this is untrue. How can MAHB sacrifice public interests by stating that the expansion project has been substantially completed when the roof has still not been put fully up, water leaks occur when raining, the toilets are dirty and the whole place still looks like a construction work-site with noise and dust. Only those with eyes but do not see, ears do not hear and a brain that does not think can agree with MAHB's outrageous lies that the RM250 million expansion project has been "substantially completed".

Instead of trying to defend the contractors and officials monitoring the work done, MAHB should come clean and own up to the reasons behind the failure to complete the work on time. There have already been 2 extensions of time given to the contractor, the last one which expired on 24 November 2012. Can Kong state what is the new completion date and the penalties imposed on the contractor for failure of completion?

Kong should come and inspect the airport himself instead of allowing MAHB to make Malaysia an international laughing-stock by announcing the airport to be substantially completed when it is not. If an uncompleted project can be passed off as "substantially completed" after spending RM250 million, then this is a clear case of not just mismanagement of funds but also abuse of public trust.

Kong should also inspect the abandoned RM 43 million Tanjung City Marina project, which is in a pitiful state. Despite being completed in 2007 at a cost of RM43 million, it is practically rotting away with half submerged disembarkation ramp in the sea water and rows of concrete and foam pontoons floating dangerously, posing a threat to cruise liners and ferries as well as security risks posed by lighting that is not working. The marina has the capacity to accommodate 140 yachts and boats with 102 berths but there are now no yachts or boats.

The Penang Port Sdn Bhd (PPSB) management has pushed away responsibility for this failed project with a statement in today's papers that the marina’s berthing facilities, designed and constructed by the Penang Port Commission (PPC), were badly damaged because of design flaws. To overcome the design flaws, PPSB said that an additional RM10 million was required for repair works. PPSB added that the previous PPC Chair Tan Cheng Liang had promised to provide the RM10 million for repairs but the promise remain unfulfilled.

Clearly the present PPC Chairman Datuk Seri Chua Soi Lek has failed in his duty not just improving but even to maintain the facilities under PPC. For this reason, Kong must intervene and find a quick solution or else this abandoned RM 43 million Tanjung City Marina will only remind us all that is wrong with the management of a BN-controlled PPC.

Kong should also inspect the RM65 million Swettenham Pier to prevent it from suffering the same fate. There have been several complaints of inadequate facilities and service by the important cruise liners that serve an important role to expand tourism into Penang.

These 3 projects under the Transport Ministry cost a total of RM358 million. RM358 million is a gross wastage of public funds and abuse of public trust if Kong does not take immediate steps to stop such failure in project management as well as rescue these distressed projects. Instead of only being concerned about the tender of car registration numbers and installing 831 1Malaysia cameras under Automated Enforcement System or AES, Kong should come urgently to Penang to find a salvage and rescue formula.

Lim Guan Eng

—BM Version–
Kenyataan Akhbar oleh Ketua Menteri Pulau Pinang Lim Guan Eng di Komtar, George Town pada 27.11.12

Kong Cho Ha Harus Menunaikan Tanggungjawab Sebagai Menteri Pengangkutan Dan Melawat Dua Projek Parah Iaitu Projek RM250 Juta Untuk Naik Taraf Lapangan Terbang Antarabangsa Pulau Pinang dan Projek RM43 Juta Tanjung City Marina Serta Projek Bermasalah Swettenham Pier Yang Bernilai RM65 Juta.

Datuk Seri Kong Cho Ha harus menunaikan tanggungjawab sebagai Menteri Pengangkutan dan melawat dua projek parah iaitu projek RM250 juta untuk naik taraf Lapangan Terbang Antarabangsa Pulau Pinang dan projek RM43 juta Tanjung City Marina serta projek bermasalah Swettenham Pier yang bernilai RM65 juta. Kerajaan negeri Pulau Pinang amat terkejut dengan dakwaan Malaysia Airports Holdings Bhd (MAHB) bahawa kerja-kerja ubah suai dan naik taraf di Lapangan Terbang Antarabangsa Pulau Pinang di Bayan Lepas sudah "banyak yang siap".

Mana-mana penumpang yang menggunakan prasarana Lapangan Terbang Antarabangsa Pulau Pinang pasti tahu bahawa kenyataan ini adalah palsu. Bagaimanakah boleh MAHB mengenepikan kepentingan awam dengan kenyataan bahawa projek naik taraf tersebut sudah "banyak yang siap" apabila bumbung belum habis dipasang, air masih lagi bocor apabila hujan, tandas-tandas berada dalam keadaan kotor dan seluruh tempat itu kelihatan seperti tapak pembinaan dengan bunyi dan habuk. Hanya orang yang mempunyai mata yang rabun, telinga yang pekak dan otak yang tidak boleh berfikir sahaja akan bersetuju dengan penipuan MAHB bahawa projek RM250 juta tersebut itu sudah "banyak yang siap".

Daripada melindungi kontraktor-kontraktor dan pegawai pemantauan, MAHB harus bersikap jujur dan memberi sebab-sebab kenapa kerja naik taraf tersebut tidak mematuhi masa. Masa sudah pun dilanjutkan 2 kali untuk kontraktor tersebut, di mana lanjutan terakhir telah tamat pada 24 November 2012. Bolehkah Kong menyatakan apakah tarikh siap baru dan apakah penalti yang akan dikenakan kepada kontraktor kerana gagal menyiapkan dalam tempoh masa yang sepatutnya?

Kong harus datang dan memeriksa sendiri dan tidak membenarkan MAHB untuk menjadikan Malaysia sebagai bahan lawak antarabangsa dengan pengumuman bahawa lapangan terbang tersebut sudah "banyak yang siap" apabila jelas banyak lagi yang belum siap. Sekiranya projek yang tidak siap boleh dikatakan sebagai "banyak yang siap" selepas perbelanjaan RM250 juta, maka ini adalah satu kes yang membabitkan bukan sahaja salah urus kewangan tetapi penyelewengan amanah awam.

Kong juga harus memeriksa projek RM43 juta Tanjung City Marina yang terbengkalai. Walaupun disiapkan pada tahun 2007 pada harga RM43 juta, ia kini berada dalam keadaan reput dengan tanjakan yang separuh tenggelam dan barisan-barisan pontun konkrit yang terapung serta membahayakan kapal-kapal persiaran dan feri serta membawa risiko keselamatan akibat lampu-lampu yang rosak. Marina tersebut mempunyai kapasiti untuk menampung 140 buah kapal layar dan bot dengan 102 kawasan berlabuh, tetapi tiada satu pun kapal layar atau bot yang kelihatan.

Pihak pengurusan Penang Port Sdn Bhd (PPSB) menepiskan tanggungjawab bagi kegagalan projek tersebut dengan kenyataan dalam akhbar hari ini bahawa prasarana pelabuhan yang direka dan dibina oleh Penang Port Commission (PPC) telah rosak akibat kecacatan reka bentuk. Untuk mengatasi kecacatan reka bentuk, PPSB berkata bahawa RM10 juta diperlukan untuk kerja pembaikan. PPSB menambah bahawa Pengerusi PPC terdahulu Tan Cheng Liang telah berjanji untuk menyediakan RM10 juta untuk kerja pembaikan tetapi sampai sekarang janji tidak ditepati.

Jelas Pengerusi PPC kini Datuk Seri Chua Soi Lek telah gagal dalam tanggungjawabnya bukan sahaja untuk menaikkan taraf malah untuk menyelenggara prasarana PPC. Untuk sebab ini, Kong harus campur tangan dan mencari penyelesaian dengan lekas. Kalau tidak, projek RM43 juta Tanjung City Marina yang terbengkalai ini akan menjadi peringatan kepada semua tentang salah urus oleh pihak pengurusan PPC yang dikawal BN.

Kong juga harus memeriksa Swettenhem Pier yang bernilai RM65 juta untuk mengelak daripada nasib yang sama. Aduan telah diterima daripada kapal-kapal persiaran yang penting kepada sektor pelancongan Pulau Pinang bahawa perkhidmatan dan kemudahan yang disediakan tidak memuaskan.

Ketiga-tiga projek ini adalah di bawah naungan Kementerian Pengangkutan dan berjumlah RM358 juta. RM358 juta ini akan menjadi pembaziran yang besar dan penyelewengan amanah awam sekiranya Kong tidak mengambil langkah segera untuk mengelakkan kegagalan dalam pengurusan projek serta menyelamatkan projek-projek yang parah ini. Daripada membazirkan masa dengan nombor pendaftaran kereta dan pemasangan 831 kamera 1Malaysia di bawah Sistem Pengkuatkuasaan Automatik atau AES, Kong harus datang segera ke Pulau Pinang dan menyelamatkan keadaan.

Lim Guan Eng

—-Mandarin Version—

槟州首席部长林冠英于2012年11月27日在乔治市发表声明：

江作汉应该要履行其身为交通部长的义务，巡视两项令人懊恼的工程：2亿5000万令吉的槟城国际机场扩建工程、耗资4300万令吉的槟城丹绒城市游艇中心，以及问题处处的6500万令吉的瑞典咸码头提升工程。

拿督斯里江作汉应该要履行其身为交通部长的义务，巡视两项令人懊恼的扩建工程：2亿5000万令吉的槟城国际机场扩建工程、耗资4300万令吉的槟城丹绒城市游艇中心工程，以及问题处处的6500万令吉的瑞典咸码头提升工程。槟州政府很惊讶，马来西亚航空控股有限公司发表令人不能容忍的言论，他们说峇六拜槟城国际机场的装修及提升工程"大致上已经完工"。

任何取道槟城国际机场的搭客都知道这是不确实的。马航控股有限公司怎么可以牺牲公众利益，说扩建工程已经大致上完工，事实上连机场的顶盖都还没有安装好、逢雨便漏水、厕所"脏"不忍睹，整个机场看来像个吵闹、尘埃处处的工地。只有那些视而不见、充耳不闻及不思考的人才会赞同马航控股有限公司的谎言，即"这项耗资2亿5000万令吉的扩建工程已经大致上完工。"

马航不该为承包商及监督工程的官员"辩护"，他们应该解释清楚为何无法在指定的时间内完工？当局已经两次展延完工时期，最后一次是2012年11月24日。江作汉能够解释清楚新的完工时间，以及承包商若无法完工应缴交多少罚款？

江作汉应该亲自前往机场巡视，而不是任由马航控股让我国成为国际的大笑柄，在2亿5000万令吉的扩建工程半天吊时，宣布已经"大致上完工"，这不只是财务管理不当的实例，也是违背公信的问题。

江作汉也应该视察被废置、耗资4300万令吉打造的槟城丹绒城市游艇中心，处境实在不堪。上述中心于2007年耗资4300万令吉，目前可说是"腐坏"，让游艇停泊的浮沉板已经不能使用、混凝浮箱危及邮轮及渡轮，那些无法操作的路灯也隐藏保安问题。游艇中心原本可以停靠140艘游艇及102艘有锚船只，但是，现有即无游艇也无船只。

槟城港口公司已经发表文告，撇清本身与这项计划的关系。它说游艇中心的设施、设计及建造是由槟城港务局全权处理，因设计问题而严重毁坏。如果要解决设计上的缺陷，槟城港口公司说必须拿出额外的1000万令吉来修复。该公司也说，前港务局主席陈清凉曾经答应会提供1000万令吉的维修费，但是至今还没有兑现。

很明显地，现任港务局主席拿督斯里蔡细历没有尽责改善甚至维护港务局属下的设施。因此，中作汉必须介入，寻找对策，否则这项4300万令吉的丹绒城市游艇中心只会提醒我们，由国阵政府控制的港务局所犯下的管理不当问题。

江作汉也应该检查耗资6500万令吉兴建的瑞典咸码头，阻止它陷入与上述游艇中心相同的命运。数家在槟州拓展旅游业方面扮演重要角色的主要邮轮公司已经针对该码头的不当设施及服务作出投诉。

这三项交通部主导的工程耗资3亿5800万令吉。如果江作汉不立即采取行动，阻止这些工程陷入失败状况、拯救它们，那么这3亿5800万令吉将形同浪费公款及背弃公信。与其只关心车牌号码的招标、在自动执法系统安装831个一个大马电眼，江作汉应该寻求补救工程的对策。

林冠英

Speech By Penang Chief Minister Lim Guan Eng In The ASLI Conference In Singapore On Penang Investment Opportunities

Posted: 27 Nov 2012 03:50 AM PST

Penang is a small island located off the northwest coast of Malaysia. With a total land area of about 1,031 sq km when combined with the mainland portion of the state, we make up the second smallest state in Malaysia. However, though we may be small in size, I am sure many of you here in Singapore will agree with me when I say that good things come in small packages.

We share many similarities with Singapore. Penang, being a part of the Straits Settlements, had its humble beginnings as a prosperous port city. Naturally blessed with the strategic geographical advantage as the gateway into the Bay of Bengal and a pivotal point in the spice and silk trades, Penang was able to carve a commercial niche as an international transhipment hub and entrepôt.

This continued until free port status was withdrawn in the 1960s. Faced with the need to adapt, Penang showed typical resilience by taking advantage of the global industrialisation trend and quickly positioning itself as a base for export-oriented manufacturing. In five decades, manufacturing as a component of the economy grew from a mere 13% in the 1970s to 51% in 2010. At the same time, we have also moved up the value chain and diversified beyond low-skills low-productivity manufacturing into higher technology, knowledge-based sectors such as LEDs, renewable energy, biotechnology and even venturing into areas such as shared services and business process outsourcing.

Today, we are now one of the largest global electronics manufacturing hubs and a world-renowned tourist destination that has managed to maintain the delicate balance between a highly-urbanised and developed state and the physical and living heritage that has made us a UNESCO World Heritage City.

Factors of success
Ladies and gentlemen,

The lynchpin of Penang's future success is based on five key factors. Firstly, Penang is blessed with valuable human talent in the form of a dynamic workforce. Thanks to an inherited legacy of well-developed institutions, Penangites have a high rate of literacy well above the national average, as well as a multi-lingual population that is conversant in English, Mandarin and many other languages. As a result, our talent pool has been the backbone of our economy. The superior quality of Penang talent is of course well-known to Singapore, as many of our sons and daughters have ended up headhunted by Singaporean universities and corporations. Sometimes I think our biggest export product has not been electrical and electronics goods but in fact our people!

Secondly, Penang has been a traditional logistics hub with well-established trade-related and communications infrastructure. Linkages between our port, rail, air and highway facilities are seamless and well connected. Besides the RM250 million airport upgrade currently on-going, the Second Penang Bridge linking BatuKawan on the mainland and BatuMaung in the south of the island will be ready in less than a year's time. We are also planning to build an undersea tunnel as a third link between the mainland and the island, in anticipation of future growth and development.

Thirdly, as a result of Penang's long involvement in the manufacturing sector, we have been able to not only foster a local supply chain ecosystem of high-quality, efficient supply services but also embed ourselves in the global production network. The existence of such an established ecosystem makes us an ideal location for any investor looking to set up shop.

Fourth, Penang is highly liveable. According to ECA International, we are the most liveable city in Malaysia and 8th most liveable in Asia. While we may not be able compare to Singapore, which ranks amongst the top in the world, we are tops in education and healthcare both in terms of money and value for money – two key areas for expats and their families. And equally important, Penang is the safest city in Malaysia with the highest drop in crime index for the last 4 years. Who wouldn't fancy living and working in a tropical island paradise with beaches and hills within twenty minutes of each other? On top of that, we are also a cultural capital and, most important of all, home to the best food in the world. This is why Yahoo Travel! has ranked Penang as one of top 8 islands in the world to visit before you die.

Finally, while the availability of human talent, logistics, mature supply-chain and liveability are important factors, there is one crucial element that binds them all together – institutional stability provided by good governance. In short, there must be rule of law. In this, Penang offers strong intellectual property protection and an effective, non-corrupt government based on the core principles of Competency, Accountability and Transparency (CAT). Penang has recorded budget surpluses every year, reduced our debts by a record 95% over 4 years to nearly debt free winning accolades not just from the annual Auditor-General's Report as the best performing state but also from Transparency International for implementing open competitive tenders.

We also passed the Freedom of Information Enactment which allows disclosure of government contracts with the private sector. And to top it off, we have also become the first state in Malaysia to have the entire state cabinet including the Chief Minister make a full public declaration of assets.

These measures, in addition to solid fiscal fundamentals and prudent financial management, have led to Penang becoming the number one investment destination in the country in 2010. This historic feat was repeated in 2011 as well, with the total foreign direct investment achieved over those two years making up 28% of the national total. For a state that makes up only 6% of the nation's population, that is no mean feat. Further Penang contributes 25% of Malaysia's imports and exports and nearly 2/3 of Malaysia's health tourism receipts.

And so, because of these five factors that I have mentioned, Penang has been able to establish itself as the home to some of the biggest names in the business, such as Advanced Micro Devices (AMD), Agilent Technologies (originally Hewlett Packard), Fairchild Semiconductor (originally National Semiconductor), Intel, Clarion, Renesas (originally Hitachi), OsramOpto Semiconductors (originallyLitronix), Robert Bosch and up to 300 other multinational corporations.

Key industries
Ladies and gentlemen,

As I mentioned earlier, Penang has been a traditional leader in the electronics manufacturing sector, especially in areas such as semi-conductors, electronics, medical devices, storage hardware and even the halal industry.

However, over the last few years, we have aggressively promoted Penang as a destination of choice for investment in higher value-added technology such as LED/solid-state lighting devices, renewable energy, biotechnology, as well as aerospace/avionic industries. The results have been encouraging and many corporations such as Intel have now made Penang their base for research, design and development activities.More recently,leading USB flash drive manufacturer Phison Electronics Corp has selected Penang to be its first overseas location by setting up its engineering development and design centre in Penang. This significant move by Phison will not only attract more scientific and engineering talent but also lead to technology and talent transfer to Penang.

Other than manufacturing and its related activities, we are also promoting Penang as a hub for shared services and outsourcing, particularly in business processing outsourcing (BPO), information technology outsourcing (ITO) and knowledge process outsourcing (KPO).

At the same time, while we will continue to build upon our solid manufacturing base, we also seek to beef up our services sector. In this, we wish to take a leaf out of the Florida book. Although Florida is a high-tech, high-knowledge state, more than 50% of its economy is derived from the services sector. Hence, Penang is now aiming to promote our services industry through sectors such as tourism, healthcare, education, hospitality, MICE (Meetings, Incentives, Conventions and Exhibitions), property and logistics.

Penang is of course well-known as a tourist destination, what with our hills, beaches, glorious food and colourful social and physical cultural heritage. These are our treasures that attract people, investors and tourists to Penang.

Within tourism itself, we are also carving a niche as a leading provider of medical tourism. About two-thirds of national medical tourism receipts nowcome from Penang, with Penang hospitals servicing 60% of the total 555,000 foreign medical tourists who came to Malaysia for healthcare in 2011. We currently have seven major private hospitals that provide high-quality yet affordable healthcare to both local and foreign patients.

In addition to becoming a Medical City, Penang also aims to be a regional Education Hub. Historically, students from the northern region of Malaysia and even from Thailand have sought out Penang for commercial studies as well as English classes. Today we have more than 30 public and private universities and colleges, in addition to nine reputable international schools. Furthermore, in a bid to draw the interest of students from around the region, we have successfully attracted the Asian Women's Leadership University to set up campus in Penang. The AWLU will be a liberal arts institution managed by the renowned Smith College from the United States.

As for the MICE industry, construction is already underway to build the Subterranean Penang International Conference & Exhibition Centre (SPICE), which will be a massive underground exhibition centre with the "Penang People's Park" on the ground above that will include a sports arena as well as an aquatic centre. Following closely behind will be the construction of an iconic conference centre at The Light, an upcoming coastal development in Penang. The conference centre at The Light will be designed and managed by Suntec, which is regarded as one of the best MICE developers and managers in the world.

Besides the above, we are also embarking on developing the Penang Tech Centre, which will become a public showcase of technology and innovation as well as a centre for convergence of industry, innovators and thinkers. This project will be spearheaded by the Penang Science Council, which is a government-facilitated but wholly private-sector led initiative. To give Penang the competitive edge, Penang is the only state in Malaysia to offer free wifi in public places.

The trinity of residents-tourists-investors
Ladies and gentlemen,

I believe that in order for Penang to make the leap into the future, we must be able to fulfil the trinity of choice, which I define as: the habitat of choice for residents, the destination of choice for tourists and the location of choice for investors in setting up business.

Besides strengthening the five key factors of success which I have outlined earlier, it is also important for Penang to build upon our natural niches as an innovative industrial base, heritage city and campus for intellectual property creators as well as ensuring equitable distribution and sustainable development for all.

Penang will be the first state in Malaysia to eradicate poverty by 2013. We are also undertaking a massive public housing programme and have appointed the best builder of public housing in the worl, namely Surbana, formerly known as HDB Corporation. On sustainable development, we are proud to be the number one green state in Malaysia with the highest recycling rate, banning plastic bags at supermarkets and the use of polystyrene packaging, weekly car-free Sundays and turning Penang into the Bicycle State of Malaysia.

Conclusion
Ladies and gentlemen,

Our vision is to transform Penang into an international and intelligent city. Our mission is to make Penang the preferred location that is clean, green, safe and healthy. We can guarantee that the freedoms and openness that we see in Penang will still remain 10 years or 20 years from now.

Thank you.

Lim Guan Eng

Speech By Penang Chief Minister Lim Guan Eng During The 4th World Chinese Economic Forum

Posted: 27 Nov 2012 03:48 AM PST

Speech By Penang Chief Minister Lim Guan Eng During The 4th World Chinese Economic Forum In Melbourne Convention Centre On 13 November 2012.

Many Asian Countries, Including Malaysia, Faces A Talent Cliff That Will Not Only Blight Economic Growth And Innovation But Also Affect Efforts To Establish Integrity In Public Life.

1. The United Nations Population Fund(UNFPA) estimated that in 2008, for the first time in history, more than half of the world's population will be living in cities. With 3.3 billion people living in cities today this number will double by 2050 where 75% of the world's population will live, with urban growth concentrated in Africa and Asia. For this reason whilst I agree with the Asian century, I am more inclined to think that the Century of Cities will have more relevance to us.

2. In principle, cities offer a more favourable setting for the resolution of social and environmental problems than rural areas. Cities generate jobs and income. With good governance, they can deliver education, health care and other services more efficiently than less densely settled areas simply because of their advantages of scale and proximity.

3. However this brings us face-to-face with challenges relating urban, property and infrastructure development. The challenge for Asian and African cities revolve around one key issue – urban planning. Melbourne has much to offer in its unique experience and success in transforming itself into the most liveable city in the world.

4. Asia continues to provide the momentum to drive global economic growth. Even though the World Bank recently cut its projected growth rate for East Asia and the Pacific from 7.6% to 7.2% in 2012, this will still be the fasting growing region in the world. Following closely behind is the South Asia region which is projected to grow at 6.4% in 2012. By contrast, the countries in the Eurozone are expected to experience a 0.3% decline in GDP while the United States is only expected to grow by 2.1% in 2012.

5. The center of economic gravity has already begun to slowly but steadily shift away from North America and Europe towards Asia. And this trend will continue for the next decade or so. By 2014, East and South Asia, with slightly more than half of the world's population, would have overtaken the Eurozone in terms of economic output. Asia's Nominal GDP in 2014 is projected at US$16.2 trillion, not far behind the United State's Nominal GDP of US$17.2 trillion.

6. Billions of people have been lifted out of poverty and millions have entered into the ranks of the middle class. According to the Brookings Institute, China already has 157 million people in the middle class, making it the 2nd largest middle class population in the world. Asia is projected to add another 2.5 billion people into the middle class ranks in the next 20 years. The Economist Intelligence Unit projects that China and India will each have more than 200 million people with annual incomes exceeding US10,000 by 2015.

7. Much of this growth has taken place in the urban conurbations in Asia. According to the United Nations, the percentage of the population in Asia who lives in urban areas almost doubled from 23.7% in 1970 to 45% in 2011. Despite having the 2nd lowest level of urbanization among the major areas around the world, Asia already has 52% of the global total urban population, with 1.9 billion people. Urban centric economic growth has increased rural-urban migration and fuelled an explosion in the population of mega-cities in Asia. By 2015, 16 out of the world's 24 megacities – cities with more than 10 million people – will be located in Asia.

8. Rising incomes and an increasing middle class who will be concentrated in large and growing cities translates into unprecedented levels of demand for this population. The new middle class need to be fed, clothed and housed. They also possess a new found purchasing power that gives them access to a wider range of consumer goods. China is already the world's largest market for mobile devices and passenger cars, having overtaken the United States in 2010.

9. The infrastructure needs in the region have to keep pace with the increasing demands of the population. Asia needs better and more roads to connect its growing cities and to cope with the ever increasing number of vehicles on the roads. It needs more railway lines to transport goods and passengers more cheaply and efficiently. It needs a greater number and bigger airports to connect cities within its own borders and in other countries. It needs more power stations and alternative energy sources to supply factories, offices and homes. That is why in Penang, we have decided to boldly implement highways and tunnel infrastructure costing billions of dollars.

10. The Asian Development Bank projects that US$8.22 trillion will need to be invested in national infrastructure needs in the energy, transport, telecommunications, water and sanitation sectors from 2010 to 2020. A further US$320 billion is required for regional infrastructure projects such as the Trans Asian Railway and projects in the Greater Mekong subregion as well as in ASEAN.

11. This huge amount of resources needed for infrastructure investment requires the various stakeholders to have clear principles when planning for and carrying out these projects. The stakes involved are high not just in terms of the financial resources being spent but also the possible impact on the environment and on the lives of ordinary citizens affected by these infrastructure projects. Let me outline four clear principles which I have found useful in planning and carrying out such projects in my home state of Penang – what I describe as CAT governance of competency, accountability and transparency.

12. Firstly, Competent and Credible decisions have to be made by policymakers and politicians when planning and carrying out these infrastructure projects.

13. Secondly, the policymakers and politicians have to make Accountable decisions in terms of the location, scope and scale of these infrastructure projects. This means that the local residents who would be affected by these projects need to be properly consulted. Proper environmental impact assessments (EIAs) have to be carried out especially for large projects such as the building of dams which requires thousands of hectares of forests to be cut down or submerged.

14. Policymakers and politicians also have to consider the economic and environmental costs and benefits of these projects to the local community. For example, in Sarawak, the largest state in Malaysia, the state government has plans to build 12 dams under the Sarawak Corridor of Renewal Energy (SCORE) that can generate 7000 MW of power even though there is already an overcapacity of power in the state after the completion of the controversial 2400MW Bakun dam. These 12 dams are supposed to produce cheap electricity to support heavily polluting industries including aluminium smelting. Legitimate questions are asked how the local indigenous communities that have to be relocated will benefit.

15. For some of these projects, neighbouring countries should also be consulted especially where resources are shared. For example, even though the proposed Xayaburi dam in Laos is situated within its own borders, but it will affect the economic activities of millions of farmers and fishermen further downstream in the Greater Mekong area which includes Thailand, Cambodia and Vietnam. The decision of the Laotian government to continue with the construction of this dam despite not having obtained a consensus from the Greater Mekong Commission seems to be against the spirit of mutual cooperating and consensus building which has been the modus operandi of the ASEAN countries.

16. Thirdly, the decisions made by the policymakers and politicians have to be Transparent. And the costs associated with the lack of transparency are huge. For example, the Economist estimates that as much as US$39 billion was lost to the Indian government as a result of the 'dodgy sale of mobile-phone licenses' in 2008. Similarly, the less than transparent allocation of coal blocks to public and private companies was estimated to have cost US$34 billion. In Malaysia for example, the construction costs alone for the Bakun dam doubled to US$2.6 billion after the firms in question, which were awarded the contracts through direct negotiation, could not deliver in time and had to be terminated.

17. Fourthly, these large scale infrastructure projects requires Smart Partnerships which are Sustainable in order to bring about long term benefits to the most number of people, especially Public Private Partnerships to finance these projects in a manner which is fair and equitable to both the public and private sector. Far too often, we have seen PPPs turn a privatisation exercise meant to benefit the public to a piratisation exercise to benefit the cronies.

18. The 'smarter' the partnerships, the greater the chances of the projects being sustainable from a financial, environmental and social impact perspective. This will create a virtuous cycle that is mutually reinforcing where the government, the private sector and the local communities can work together for the benefit of all in the long term.

19. The USD 10 billion China-ASEAN Investment Cooperation Fund (CAF) by China is a private equity fund focusing on investment opportunities in infrastructure, energy and natural resources in the ASEAN region and China. Commencing in 2010, the CAF gives opportunities not only to ASEAN but also Australian companies to get involved in this Asian century.

20. Australia has the unique advantage of having gone through big infrastructure projects such as the irrigation of the Murray-Darling basin and managing its water resources, building energy infrastructure of coal, iron, oil and gas. Countries in the rest of Asia can leverage on the experience of Australia, to learn from its best practices as well as some of the negative experiences, so that Competent and Credible policymakers and politicians in the region can make Accountable and Transparent decisions which involve Smart Partnerships which are Sustainable.

21. Commencing in 2010, ASLI patron Tan Sri Lee Kim Yew and ASLI CEO Michael Yeoh had mentioned that the Asian region faces four broad challenges, the "Four E's": economic growth, energy, environment and education. To which I would like to add "Two I's" namely integrity and innovation. The challenge to retain human talent and establish trust in society will decide the success or failure of sustainable economic growth and equitable development for all.

22. If America faces a fiscal cliff, many Asian countries including Malaysia, faces a talent cliff that will not only blight economic growth and innovation but also affect efforts to establish integrity in public life.

23. Cities thus present opportunities for social mobilization and women's empowerment. And the density of urban life can relieve pressure on natural habitats and areas of biodiversity. The challenge for the next few decades is learning how to exploit the possibilities urbanization offers. The future of humanity depends on it.
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