This project on surface appears interesting but I suggest it will be a strategic error with grave consequences if we do not involve Thailand in an ASEAN project.Thailand may not appear such an attractive place for investment right now but if we study the map of Thailand it seems that this project if done exclusively by Malaysia will become obsolescent just three years after investors decide to build a similar scheme just north of the border.
(click on Thailand map to check distances)
If this is solely a private investment, then taxpayers would not be concerned but if some of the RM24billion will involve taxpayers' monies we need to be concerned.
A JV with Thailand would require a pipeline only about 100km long and that means the investment could be reduced to perhaps 60% of the RM24b or RM14.4b and the cost of pumping the oil would also be reduced to one-third the distance.
If we study the map of Thailand again, a possible route for the Thai-Malaysia JV could start in Perlis and end south of Songkhla, subject to deep-water facilities.
This new route will also preserve much of the pristine forests in the north of Malaysia and with the shorter route it will be easier to safeguard. Plus Kota Bahru will be spared from any major oil spills. As global warming increases, the passage to the Far East via northern Europe will also be see more ships sailing that way and avoiding the Malacca Straits for a few months and this can happen within the next 10 years.
Introducing more economic activities in south Thailand of the non-tourist type may improve the political situation there and create more economic benefits. Hopefully the Thais will then stay on their side of the border and we will have fewer refugees fleeing the unrest.
Such a joint venture will be a "win-win" solution for everyone.
Graphics: Thanks to http://www.maps-thailand.com/ and malaysiakini
