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Malaysian Firms Eye Investments Here

MANILA, Philippines — Several Malaysian companies are prepared to invest in waste water treatment projects for manufacturing and domestic consumption in Metro Manila as the segment remains untapped.

In an interview, Embassy of Malaysia Trade Office (Matrade) Commissioner Har Man Ahmad said these companies are eyeing partnerships with water firms in Metro Manila such as the Manila Water Company. Inc. and Maynilad Water Services Inc. (Maynilad).

“Rather than water treatment, we are trying to focus more on waste water treatment which, I believe is still untapped in the Philippines right now. So far, according to some sources from Manila Water and Maynilad, the level of utilization of waste water in Metro Manila is only 12 percent which is still low,” he said.

Ahmad said that nationwide, the utilization rate is even lower. For the whole of Malaysia, the utilization rate is at 50 percent.

He said Manila Water had sent a representative to Malaysia to study its waste water treatment process.

Waste water treatment projects mulled for implementation are classified into waste water derived from manufacturing processes which will be used for the same and waste water treated from septic tanks which will be released for public use.

The waste water services offered by Malaysian companies will therefore be an extension of the services provided by major water firms in Metro Manila.

“It is an environment conservation (mechanism). For example, in Metro Manila, the problem is, you have a very limited watershed area, which is replenished by rain and other sources and then it will held in a certain container before it can be treated and supplied to households,” Ahmad said.

“That is why the waste water treatment industry is really, really possible. It will enhance the resources that you already have,” he added.

So far, eight Malaysian companies have expressed interest in waste water treatment projects. These are: Alam Sekitar Malaysia Sdn Bhd, CCM Chemicals Sdn Bhd, Chemkimia Sdn Bhd, Chuah Valves Manufacturing Sdn Bhd, Engtex Water Solutions Sdn Bhd, Sinwinco Engineering Sdn Bhd, Indah Water Konsortium, and MTD Group Philippines.

“So far, many local investors are not aware of the outcome and the potential of the projects so they really didn’t have the courage to invest,” Ahmad said.

He said Matrade is currently conducting consultations with the government and other private companies that will be involved in the projects.

“But our main concern is to grab business opportunities with Maynilad and Manila Water,” Ahmad said.

For groundwork, Matrade is eyeing a partnership DMCI.

For now, the aim of Malaysian companies is to establish waste water treatment presence in Metro Manila but Ahmad said that there is potential for expansion to the provinces, especially in Mindanao. The target for now, is to maximize the coverage areas of Manila Water and Maynilad.

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Source: Manila Bulletin, May 26, 2012
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