MICCI Highlights Issue of Royalty on Minerals and Gas Supply

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The MICCI Perak Branch recently gave a media statement which was read out by its Chairman Leong Hua Kooi. The statement highlighted the problems faced by mineral related industries specifically the Quarry Operators and Cement and Kaolin manufacturers on the issue of Revised Royalty on Minerals Act.

MICCI Highlights Issue of Royalty on Minerals and Gas SupplyAccording to Leong, two dialogue sessions were held with the Minerals and Geoscience Departments since October. While the dialogue sessions were a good platform to understand the issues facing the industry, the industry players say that the royalty rates fixed earlier this year are not acceptable to many as “the rates will cause competitiveness issues and hinder local and foreign investment”.

Leong said that the industry players have acknowledged that most of the rates have been finalized and are currently pending approval when tabled at the next sitting of the State Assembly. The industry players are now requesting that the negotiated rates when approved be fixed for the next five years with the expiry date at December 31, 2016 in order to assure investors of the certainty of doing business here.

Gas Supply

Another topic of concern raised was the the request of gas supply which, according to Leong, “has been a long standing request by all the Chambers ie MICCI, FMM and PCCCI”.

Leong lamented that the scheduled meeting on November 26 to discuss the issue of gas supply was postponed to a later date and hoped that the state government would take a serious view to address the issue with the federal government.

“If necessary we welcome more dialogue between the industries and government similar to the dialogue with PTG in order to enable a more conducive business environment in the state,” added Leong.

JAG