POTENTIAL PLANT LOCATION

NO SELECTION CRITERIA PROPOSED LOCATION

Kerteh Industrial Melaka Industrial Pengerenag Industrial
Area Area Area
1. Raw material availability
a) Di-ethanol amine (DEA) Petronas Penapisan DURO Kimia Sdn KLH Chemicals, Pasir
supplier (Terengganu) Sdn Bhd, Damansara Gudang
Bhd, Kerteh
b) Natural gas (untreated) Petronas Penapisan Petronas Pengerang Integrated
supplier Kerteh Penapisan Melaka Petroleum Complex
2. Market
3, Energy availability
a) Electrical supply Sultan Ismail Power Petronas Melaka Pengerang Co-
Station / Self- CCGT Power Plant Generation Plant /
generated using / Self-generated Self-generated using
power plant using power plant power plant
4. Climate
Average Temperature 22oC-30oC 24oC-32oC 22oC-32oC
Average Precipitation 300mm 200mm 200mm
Average Humidity 80% relative 75% relative 80% relative humidity
humidity humidity
5. Transportation
a) Highway
b) railways
c) Airport
d) Port facility
6. Water supplier
7. Waste disposal
8. Labor supply
9. Taxation and legal restriction
a) Property Income Exemption 28% Exemption 28% Exemption 28%
b) Industrial Building Initial allowance: Initial allowance: Initial allowance: 10%
10% 10% Annual allowance: 3%
Annual allowance: Annual allowance:
3% 3%
c) Petroleum Income Tax Exemption 38% Exemption 38% Exemption 38%
d) Unemployment There is no unemployment insurance or unemployment
Insurance assistance
dedicated to helping the unemployed in Malaysia.
e) Required permits -Malaysia Petroleum Resources Corporation
-PETRONAS Licensing and Registration
-Petroleum Development Act (1974)
-Companies Commission of Malaysia
10. Site characteristic
a) Land price
 b) Area available
11. Flood and fire protection
12. Community factors
a) political
b) academic
c) strategic consideration

WEIGHTED EVALUATION

NO SELECTION CRITERIA MARKS

5-4 MARKS 3-2 MARKS 1-0 MARKS
1. Raw material availability Able to obtain large Able to obtain large Able to obtain large
raw material supply raw material supply raw material supply
locally from neighboring from neighboring
state country
c) Di-ethanol amine
(DEA) supplier
d) Natural gas
(untreated) supplier
2. Market
3, Energy availability Able to obtain large Able to obtain large Unable to obtain
electricity supply electricity supply enough electricity
locally from neighboring supply to run the
state plant
a) Electrical supply
4. Climate No significant effects on plant.
5. Transportation
e) Highway
f) railways
g) Airport
h) Port facility
6. Water supplier
7. Waste disposal
8. Labor supply
9. Taxation and legal restriction Standardized for all three sites
10. Site characteristic
c) Land price
d) Area available
11. Flood and fire protection
12. Community factors
d) political
e) academic
f) strategic
consideration
NO SELECTION CRITERIA MARKS
Kerteh Industrial Melaka Industrial Pengerenag Industrial
Area Area Area
1. Raw material availability 5 3 4
b) Di-ethanol amine
(DEA) supplier
c) Natural gas
(untreated) supplier
2. Market
3, Energy availability
b) Electrical supply 5 5 5
4. Climate 5 5 5
5. Transportation
i) Highway
j) railways
k) Airport
l) Port facility
6. Water supplier
7. Waste disposal
8. Labor supply
9. Taxation and legal restriction 5 5 5
10. Site characteristic
e) Land price
f) Area available
11. Flood and fire protection
12. Community factors
g) political
h) academic
i) strategic
consideration