皇冠体育app

0.1 Summary

A busy and productive visit by Mr Hammond in support of a UK rail mission and coinciding with the Rail Solutions Asia exhibition and conference. 皇冠体育app visit further cements important relationships, opens new doors and provides useful insights into how we best exploit high value business opportunities in this multi billion pound sector.

0.2 Detail

Mr Hammond visited Malaysia on 6-7 May in support of a major UK rail mission. 皇冠体育app Minister opened UKTI鈥檚 rail seminar jointly with Tan Sri Hamid, the Chairman of the Malaysian Land Public Transport Commission (SPAD). In their subsequent meeting Hamid (a former senior Cabinet Minister) reaffirmed Malaysia鈥檚 commitment to expand trade links with the UK consistent with the PMs鈥� target of doubling growth by 2016. He confirmed that Lines 2 and 3 of the KVMRT would be built. Construction of Line 1 was underway with Line 2 at the stage of a feasibility study for the final route. International tendering for Line 2 was likely towards the end of 2014. As anticipated, any company bidding would need to do so with or through a Bumiputera (Malay owned) company. As a sign of its ambition to achieve fully developed nation status by 2020, Malaysia would be investing some RM160bn (拢30bn) in rail over the coming 10 years. Some UK companies had been successful in winning business but others needed to increase their visibility in Malaysia. SPAD were happy to meet them and assist their understanding of how to win business.

Mr Hammond later met the MRT Co management team delivering Line 1 of the KVMRT. 皇冠体育app clear commitment shown by UK rail services companies was commended. UK civil contractors and those providing components for the physical structure were encouraged to follow suit, and adopt a more 鈥渓ocal鈥� approach (eg working as sub-contractors with local Malaysian companies). At the Minister鈥檚 prompting, railway asset maintenance was noted as one area of opportunity for UK expertise. UK Export Finance was seen as a useful tool for UK companies in presenting an overall package of work, finance and, for larger contracts, offset.

皇冠体育appre followed meetings with a Deputy Secretary-General at the Ministry of Transport and the Secretary-General at the Ministry of Finance. 皇冠体育app first meeting confirmed that, for public transport, SPAD were in the lead. Much of the Ministry鈥檚 senior management was now engaged on MH370. At the Ministry of Finance, Mr Hammond explored Malaysia鈥檚 approach to financing major rail developments. 皇冠体育app Secretary-General noted that the government would fund the KVMRT through conventional and shariah vehicles, including the use of retail sukuk and also sukuk that comprised GLC shares, future commodities and physical assets. 皇冠体育app high-speed line from Singapore would be funded through a PFI/PPP model. UK companies were again encouraged to take a higher profile and more local approach.

At dinner, Mr Hammond met Idris Jala, Cabinet Minister in the PM鈥檚 Office responsible for the Economic Transformation Programme. Mr Hammond led a discussion ranging from public transport through to wider developments.

皇冠体育app Minister鈥檚 final engagement was to open the Rail Solutions Asia conference promoting UK capability to delegates from across the Region. Mr Hammond then met the media before touring the exhibition, meeting 17 UK companies and resulting in positive press about the UK鈥檚 world class rail sector.

0.3 Comment

皇冠体育app visit helped to raise the profile of the UK rail mission and to open doors with the Ministries of Transport and Finance. 皇冠体育app latter, in particular, will have a major role to play over the awarding of contracts for rail and other large infrastructure projects. In the meantime, we will need to work with the larger British construction companies to help them understand better the mechanics of winning business in this sector.

0.4 Disclaimer

皇冠体育app purpose of the FCO Country Update(s) for Business (鈥漷he Report鈥�) prepared by UK Trade & Investment (UKTI) is to provide information and related comment to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. 皇冠体育app Report鈥檚 contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report鈥檚 contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.