Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	PUTRA WORLD TRADE CENTRE, 
			KUALA LUMPUR  
Tarikh/Date 	: 	01/10/96 
Tajuk/Title  	: 	THE FIFTH BIENNIAL INTERNATIONAL 
			ASSOCIATION FOR NATURAL GAS 
			VEHICLES CONFERENCE (NGV `96) 



     1.    I  would  like to thank the NGV  '96  National
    organising Committee for inviting me to officiate at
    this  Fifth  Biennial International Association  for
    Natural Gas Vehicles Conference and Exhibition.   It
    is  indeed  a great pleasure for me to be here  this
    morning to address such a distinguished gathering of
    experts and representatives of both the business and
    Government sectors in the NGV industry from all over
    the world.  I am happy that Malaysia has been chosen
    to  be  the host for this conference and exhibition,
    the  first to be held in this region.  I would  like
    to  take  this opportunity to wish all  our  foreign
    visitors,  especially those who  are  here  for  the
    first time, a warm `Selamat Datang' to Malaysia.

     2.    It  is indeed timely and appropriate that  NGV
    `96  is held here in Kuala Lumpur, at the very heart
    of  the  fastest growing region in the  world.   The
    Asian  region has been experiencing continuous rapid
    economic growth over the past decade where the  need
    to  balance growth with environmental protection has
    become   a   key  factor  in  ensuring   sustainable
    development.  Recognising this need, Malaysia places
    considerable  emphasis on environmental conservation
    in  all  its national development plans and policies
    and   is  committed  to  play  an  active  role   in
    international  and regional cooperation  efforts  to
    combat  environmental degradation. This is reflected
    in    the   country's   participation   in   various
    international  environmental conventions.   Malaysia
    has   also   played  an  active  part  in  promoting
    partnership  between  the North  and  the  South  in
    combating    global   environmental   deterioration,
     particularly  through  the  transfer  of   financial
    resources  and  environmentally  sound  technologies
    from the North as well as  adequate responses on the
    part of the South.

     3.    At  the  national  level,  the  Government  of
    Malaysia  continues to adopt the concept of balanced
    growth as the basic thrust of the country's national
    development  policy,  as outlined  in  our  recently
    launched Seventh Malaysia Plan for the 1996  -  2000
    period  to  bring us nearer to our  goal  of  Vision
    2020.  Under  the Plan, environmental considerations
    will  increasingly be integrated in the  formulation
    of   sectoral   policies  that   provide   for   the
    acquisition of the requisite technical,  policy  and
    planning   capability  to  deal  with  environmental
    problems. Early preventive measures and the  use  of
    more  efficient and cost effective pollution control
    measures through research and development efforts as
    well as the acquisition of clean technology will  be
    encouraged to achieve the desired level of pollution
    abatement.  The usage of natural gas  will  also  be
    promoted  more  aggressively in  the  transport  and
     manufacturing sectors, including the utilisation  of
    gas  by fleet owners and industries in the place  of
    less  environmentally  friendly  fuels.   All  these
    Government   efforts   will  be   complemented   and
    supported  by  the  private  sector  through   their
    investment  in  environmental and  natural  resource
    management programmes.

     4.   This public-private sector linkage is essential
    for  ensuring balanced growth and is  very  much  in
    line  with the main thrust of the Strategic Plan  of
    Action   on   the   Environment   currently    being
    implemented    under    the   ASEAN    environmental
    cooperation framework within the ambit of the United
    Nations  Conference on Environment and  Development.
    In  encouraging  the  integration  of  environmental
    factors  in  all  developmental  processes  at   the
    national  and  regional levels, the  Strategic  Plan
    calls for the promotion of Government-Private sector
    interactions  towards  the development  of  policies
    that mutually support the thrust of each sector.

     5.    Such interactions should be encouraged at both
    the  regional  as well as the international  levels.
    As  trade liberalisation in the present World  Trade
    Organisation  era intensifies, leading to  increased
    economic and transportation activities in the global
    market,  transboundary movement of hazardous  wastes
    and   even  polluted  air  particles  need   to   be
    controlled and other environmental management issues
    addressed  through close international  cooperation.
    International  forums like this  Conference  can,  I
    believe,  offer an effective platform for  fostering
    such  close  interactions  and  cooperation  towards
    forging a clean global environment.

     6.    One  of  the  key  issues  that  needs  to  be
    seriously considered in the efforts to establish and
    preserve   a   clean  global  environment   is   air
    pollution.  Air pollution is fast becoming  a  major
    environmental concern of most Governments, with  the
    rapid  deterioration  of air quality  especially  in
    urban  areas.  Increasing transportation  activities
    arising    from   rapid   industrial   growth    and
    urbanisation  are the main contributing  factors  to
    the persistently prevailing problem of air pollution
    in  the  world today.  The transportation sector  in
    most  countries  consumes a large portion  of  their
    final  supply of energy mainly in the form of petrol
    and diesel which need to be continuously improved to
    reduce   the  pollutants  being  emitted  into   the
    atmosphere.    In   Malaysia,  for   instance,   the
    transportation sector consumed some 40 per  cent  of
    the country's total commercial energy demand in 1995
     and  is anticipated to continue to grow at about 8.1
    per cent per annum. I believe this same situation is
    also faced by most other countries.

     7.    With the transportation sector remaining as  a
    major source of air pollution, efforts must be taken
    to  overcome this problem.  The seriousness and  the
    long term negative impact of air pollution cannot be
    overemphasised.  If left to persist,  it  can  bring
    harmful effects to our health and economy which will
    result  in increasing health and social costs  being
    incurred.  It is therefore vital that concerted  and
    coordinated efforts be made to reduce the impact  of
    polluting fuel emissions from vehicles.  To overcome
    this  problem, there is no one single solution.   It
    involves  a  combination of  efforts  which  include
    improving  public  transport,  traffic  zoning   and
    management,   car  pooling,  use  of  low   emission
    vehicles and technologies, and promoting the use  of
    cleaner fuel such as natural gas.

     8.    In  this regard, I am pleased to say that  the
    Government  of Malaysia is committed to continue  to
    carry out every measure possible to improve the  air
    quality  in the country, particularly in  the  urban
    areas.   On-going measures being taken  to  mitigate
    the decline in air quality include the strengthening
    of enforcement efforts and control by the Department
    of   Environment,  Police  and  the  Road  Transport
    Department  to  reduce  black  smoke  emission  from
    vehicles  through  the  use of  cleaner  engine  and
    efficient exhaust system as well as the reduction of
    lead content in petrol from 0.84 to 0.15 grammes per
    litre  as  required under the Environmental  Quality
    Act Regulations.  As a result of these measures,  we
    have  managed to maintain a generally good level  of
    air  quality  in  the country except  for  the  most
    industrialised and urbanised areas.  The  Government
    is  currently implementing programmes  to  ensure  a
     clean environment in these areas.

     9.    These programmes include the relocation of the
    federal  administrative centre in  Kuala  Lumpur  to
    Putrajaya  to reduce urban congestion and  pollution
    in Kuala Lumpur and the Klang Valley, improvement of
    the  Kuala  Lumpur and Klang Valley urban  transport
    system through the implementation of the Light  Rail
    Transit  system and the consolidation of the  public
    transport      system.      Environmentally-friendly
    transport  programmes such as the  natural  gas  for
    vehicles are also being promoted.

     10.  Natural gas for vehicles or NGV certainly has a
    major  role to play in alleviating the air pollution
    problem.   As NGV burns much cleaner than petrol  or
    diesel, its use can reduce significantly the  amount
    of  harmful  air  pollutants emitted from  vehicles.
    Although  natural  gas  vehicles  still  emit   some
    harmful  pollutants, they are at  present  the  most
    commercially viable clean alternative transportation
    mode.  Countries endowed with an abundant supply  of
    natural  gas should tap the gas resources  available
    to provide an alternative fuel that will help lessen
    the deterioration of air quality.  We must not allow
    the  high  capital involved in the  construction  of
    infrastructure for natural gas projects such as  the
    NGV  programme to stand in the way of our developing
    our gas resources for the benefit and well- being of
    our  people.  In the long term, the benefits  to  be
    accrued from the implementation of these natural gas
     programmes  will  far  outweigh  the  high  cost  of
    healthcare   and   environmental   damage   to   the
    Government and the people caused by air pollution.

     11.   Despite the anticipated long term benefits  of
    NGV,  statistics show that it is still not as widely
    used  as  it should be in most countries.  Based  on
    the  1995 estimated worldwide NGV fleets, out of the
    total  of  about  one million and nineteen  thousand
    natural  gas  vehicles in the world,  almost  ninety
    nine   per   cent  are  concentrated  in  only   six
    countries, namely Argentina, the Central Independent
    States,  Italy, Canada, New Zealand and  the  United
    States  of America. This means that there is a  vast
    potential  for  the  future  expansion  of  the  NGV
    industry   and   I   believe   Government    related
    authorities,    suppliers,    vendors    and     gas
    organisations such as the International  Association
    for Natural Gas Vehicles can play a leading role  in
    facilitating the rapid development of the  industry.
    In Malaysia, NGV was introduced in May 1992 with 450
    vehicles converted to run on dual fuel by the end of
     the  year.  Today, the number of vehicles using  NGV
    has increased to about 990.  We are currently taking
    positive  steps  to  reduce  the  cost  of  the  NGV
    facility to make the NGV programmes more viable  and
    affordable.

     12.   Presently,  we  are already  implementing  gas
    development  programmes  to  tap  the  abundant  gas
    resources  in the country to spearhead the expansion
    of  the NGV industry together with other gas related
    projects.   The  development  of  our  NGV  industry
    largely  depends  on the phased  completion  of  the
    Peninsular  Gas Utilisation Project, commonly  known
    as  PGU which was launched by PETRONAS in the  early
    eighties.   The  PGU and Malaysian Gas  Distribution
    projects   are  expected  to  provide  the  pipeline
    infrastructure  to supply gas to the NGV  refuelling
    outlets in urban areas where there is a large number
    of  vehicles.  When the PGU project is completed  as
    scheduled  by  1998, we would expect the  number  of
    vehicles using NGV to increase even further.

     13.  The Government is committed to increase efforts
    to  encourage the wider utilisation of  NGV  and  is
    actively  promoting the fuel in suitable areas  such
    as the Kuala Lumpur International Airport in Sepang,
    in  New  urban areas such as the new federal capital
    of  Putrajaya  and wherever it is possible  for  the
    Government  to  encourage the use  of  natural  gas,
    particularly  in  areas where air  quality  is  fast
    deteriorating.   In  addition, the  Government  also
    provides incentives to make the use of NGV viable.

     14.   However,  for the implementation  of  the  NGV
    programme  to succeed, it needs more than  just  the
    Government's  efforts and commitment to  effect  any
    measures  to  keep  the air  clean.   It  needs  the
    commitment  and cooperation of the whole  community,
    from  the  public sector to the private  commercial,
    industrial  and individual consumers as  it  affects
    their   personal  health  and  well-being.   It   is
    therefore everyone's responsibility to preserve  the
    air  quality  around  us.  The Government,  for  its
    part,  will  continue to provide the policy  support
    and   incentives  for  assuring  good  environmental
    management  practices.   On  the  other  hand,   the
    private sector, particularly those directly involved
    in   the  transportation  sector  such  as  the  oil
    companies, fleet vehicles operators, companies  that
    own  vehicles and the individual vehicle owners must
    play  a  more  prominent and complementary  role  in
     helping  to  reduce air pollution  by  investing  in
    better environmentally-friendly technologies,  using
    cleaner  fuels  and  helping to educate  and  create
    greater awareness of the importance of maintaining a
    clean air environment.

     15.   In  this  regard, I am pleased  to  note  that
    PETRONAS  and Proton, the National car manufacturer,
    are  jointly  taking  a step forward  to  develop  a
    monogas   vehicle.   This  augurs   well   for   the
    development of the NGV industry not only in Malaysia
    but  also  in  the region.  I hope that the  monogas
    vehicle can be adopted as part of an ASEAN programme
    to overcome the air pollution problem in the region.
    To  this end, closer cooperation must be fostered at
    all levels-local, regional and international, as air
    pollution  is borderless.  Together, we  should  all
    work towards a clean air environment for our cities.
    In  this  context, the theme for this  Conference  -
    "Driving To Cleaner Cities" is most appropriate.   I
    hope   that   through  the  close  interaction   and
    networking  among  Conference participants,  greater
    cooperation  can  be  fostered  as  well  as   joint
    programmes and new ideas formulated to expedite  the
     development  and wider utilisation of NGV  globally.
    Cooperation programmes such as the Clean Cities  and
    Healthy  Cities  Programmes  are  good  examples  of
    efforts  that  can  be initiated between  cities  in
    sharing  and pooling resources towards tackling  air
    pollution problems in the cities.  In this  way,  we
    can  bring  about a better and healthier environment
    that   will   be   appreciated  by   our   children,
    grandchildren and the generations to come.

     16.   Finally, I wish all of you an interesting  and
    fruitful  Conference and to our  foreign  guests,  I
    wish  you  all  an  enjoyable and pleasant  stay  in
    Malaysia.

     17.   On  this  note,  I now have  the  pleasure  to
    declare   open   the  Fifth  Biennial  International
    Association For Natural Gas Vehicles Conference  and
    Exhibition.

 
 



 
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