Post on 30-Jun-2018
transcript
Malaysian Economy
Bachelor of Business Administration (BBA)
Professor Dr. Ahmad Bin Othman
School of Business and Management
University College of Technology Sarawak (UCTS)
96000 Sibu, Sarawak
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What is Extractive Industry?
Any processes that involve the extraction of raw materials from the
earth to be used by consumers. The extractive industry consists of
any operations that remove metals and mineral from the
earth. Examples of extractive processes include oil and gas
extraction, mining, dredging and quarrying.
Our focus of discussion will be on TIN and PETROLEUM
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Tin has been in use since ancient ages and its role has played an important
role in the history of the human race.
Around 5000 years ago, human first began mining and incorporating tin
with copper to create bronze thus marking the beginning of the Bronze
Age.
The Bronze Age is now a recognised stage in the development of
civilisation.
How bronze was discovered we do not know, but the peoples of Egypt,
Mesopotamia, and the Indus valley started using it around 3000 BC.
General discussions
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Tin artefacts have been found in an Egyptian tomb of the eighteenth
dynasty which dates around to 1580-1350 BC and it was traded
around the Mediterranean by the Phoenicians who obtained it from
Spain, Brittany and Cornwall.
In the 19th century, Cornwall was the major producer of the metal,
but then deposits were found in Bolivia and East Asia, and today China
is the leading producer, followed by Indonesia and Peru.
General discussions
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The Chinese were mining tin around 700 BC in the province of Yunnan.
Pure tin has also been found at Machu Picchu, the mountain citadel of the Incas.
When copper was alloyed with around 5 per cent of tin it produced bronze,
which not only melted at a lower temperature, so making it easier to work, but
produced a metal that was much harder, and ideal for tools and weapons.
General discussions
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Nowadays, we cannot imagine anything without this metal, TIN.
Right from cold drink cans to roofs, almost everything has tin.
It is found in both as an alloy and also in pure form to make up
thousands of daily items that we take for granted.
General discussions
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Tin was originally known as plumbum candidum or white
lead in Latin.
Tin is actually a soft white metal which has an unusually low
melting point of 231.85 degrees Celsius. Its chemical symbol is
Sn, and comes from its more recent Latin name, stannum. The
English name, tin, finds its origin from a Germanic root.
General discussions
Fact about Tin
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Group 14 Melting point 231.93 oC, 449.474 oF, 505.08 K
Period 5 Boiling point 2586 oC, 4686.8 oF, 2859.15 K
Block p Density (kg m-3) 7285
Atomic number 50 Relative atomic mass 118.71
State at room temperature Solid Key isotopes 120Sn
Electron configuration [Kr] 4d105s25p2 CAS number 7440-31-5
http://youtu.be/NAZDN_WGckg
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Tin mining is one of the oldest industries in Malaya.
The tin mining started since 1820s in Malaya after the arrival of Chinese
immigrants.
The Chinese immigrants settled in Perak and started tin mines. Their leader was
the famous Chung Ah Qwee.
Their arrival contributed to the needed labour and hence the growth of the tin
mining industry.
By 1872, there were about 40,000 miners in Malaya, mostly Cantonese and
Hakka.
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In Selangor, tin mining started in 1824. There were about 10,000 Chinese in the state. The
majority of them were Hakka. Kuala Lumpur, like Selangor was similarly developed by the
hardworking miners.
… In 1857, this is where it all began. A group of 87 miners, all of them Chinese, poled
their way up the Klang in search of tin.
At that time, tin was in huge demand, especially by America and the British Empire,
which needed the durable, lightweight metal to help fuel their industrial revolutions.
In Ampang, few miles to the east, there were huge reserves of tin, and this spot was the
highest point.
They named it "muddy confluence," built a ramshackle, thatched-roof village, and within
a month all but 17 of them had died of malaria. It was a devastating beginning to what
would become one of Asia's richest cities.
Tin in Malaysia
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Later, more tin prospectors, followed, and within a few years the village thrived. Like
all mining boom-towns, it was raucous place, populated almost exclusively by men.
They spent their days in gruelling labor, crouching over tin pans or digging the earth,
returning to the town at dusk to console their loneliness in bars, gambling halls, and
brothels.
Few got rich, but throughout the peninsula the mania for tin inspired fierce rivalries
and claim disputes.
The Chinese miners organized themselves into clans and warring factions called
"secret societies." Without a centralized Chinese authority keeping peace, order in
the mining areas was nearly impossible.
Tin in Malaysia
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Whole clans could be swept up in fights that started over little more than a
drunken dispute between two men.
In 1868, needing a solution to the chaos, the headmen of the local clans
elected a man named Yap ah Loy as "Kapitan China," or leader of the Chinese
community.
With the support of the local sultan, he built prisons and quelched revolts,
quickly establishing an infamous reign over the entire Kuala Lumpur mining
area.
Tin in Malaysia
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The expansion of tin mining began in the 1870s, with the
commencement of pit-working of tin laden sands in valleys all the
way down the West Coast region of the Peninsular.
Growing industrial demand for tin, and the discovery of large and rich
tin deposits in Larut and Kinta in the state of Perak in the early 19th
century led to the disputes among the Malay rulers.
Large scale immigration of Chinese labour which in turn gave rise to
Chinese investment, British intervention and domination and finally,
injection of foreign, mainly British capital and technology into the
Peninsular.
Tin in Malaysia
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Year Dredge %Gravel
Pump%
Open
Cast%
Under-
ground
%
Dulang
Washin
g
% Others % Total
1970
1975
1980
1989
1990
1991
1992
1993
1994
23,931
20,329
18,222
11,963
10,267
9,515
6,072
3,522
1,355
32.4
31.6
29.7
37.3
36.1
45.9
42.3
33.9
21.0
40,739
35,183
34,484
13,263
12,216
6,476
3,886
3,426
2,438
55.2
54.7
56.2
41.4
42.9
31.3
27.1
33.0
37.8
2,504
2,535
2,705
2,905
2,173
1,754
1,592
1,653
1,375
3.4
3.9
4.4
9.1
7.6
8.5
11.1
15.9
21.3
2,254
1,894
1,085
103
102
71
71
48
72
3.1
2.9
1.8
0.3
0.4
0.3
0.5
0.5
1.1
2,828
3,081
3,246
2,835
2,601
2,065
1,640
1,059
721
3.8
4.8
5.3
8.8
9.1
10.0
11.4
10.2
11.2
1,539
1,342
1,662
965
1,109
829
1,078
676
497
2.1
2.1
2.7
3.0
3.9
4.0
7.5
6.5
7.7
73,795
64,364
61,404
32,034
28,468
20,710
14,339
10,384
6,458
Tin Mining Activities
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1970
1975
1980
1989
1990
1991
1992
1993
1994
73,795
64,364
61,404
32,034
28,468
20,710
14,339
10,384
6,458
13,726
18,476
8,422
23,857
21,732
30,536
33,264
27,277
35,574
92,631
77,940
69,498
49,480
52,703
42,425
45,149
35,545
35,327
10.99
15.94
35.72
23.09
16.45
15.05
15.25
13.09
14.14
1,083
910
852
255
141
92
63
43
39
49,453
39,736
39,009
12,695
8,508
6,594
4,672
2,296
2,006
Year Production Import Export Average
Price
No. of
Mines
Employment
Tin as Commodity
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Year Production of tin (‘000 tons/tonnes)
Countries 1861-
1900
1931 1929 1950 1965 1980 1990 2001 2008
Malaysia 8.5 51.4 72.3 57.5 63.7 61.4 28.5 5.0 3.4
Thailand - 6.7 9.9 10.4 19.0 33.7 14.4 2.5 0.2
Indonesia 6.0 20.9 35.9 32.1 14.7 32.5 31.1 56.3 96.0
Bolivia 0.1 25.9 46.3 31.2 23.0 27.3 17.2 12.0 16.0
Brazil - - - 0.2 1.8 6.9 39.1 13.0 9.6
China 0.5 8.3 6.8 7.5 25.0 16.0 44.0 99.4 121.2
United Kingdom 9.4 5.3 3.3 0.9 1.3 3.3 4.2 - -
Nigeria - 4.0 11.1 8.3 9.5 2.7 0.2 1.3 2.4
Zaire - - 1.0 13.5 6.3 3.2 1.6 - 9.0
Australia 0.1 7.8 2.2 1.8 3.8 11.6 7.4 9.6 1.8
South Africa - 2.3 1.2 0.6 1.7 2.9 1.1 - -
USSR/Russia - - - 8.9 23.0 16.0 15.0 5.5 1.1
World 25.0 134.0 196.0 169.3 201.1 235.9 220.6 249.3 310.2
Source: Rajah Rasiah (ed.) (2011)
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Tin is an important commodity in international trade, but it does not naturally
as a metal.
Tin is used in hundreds of industrial processes throughout the world. Tin is
widely used in many industries such as in food packaging, culinary equipment,
electronics, tin chemicals, plumbing solders, engineering alloys, pewter and
bronze in music and the arts, dental amalgams, anti-corrosion and engineering
coatings, wine capsules and fire retardants.
Uses of tin
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Tin is mostly commonly used in alloys, and in tin plate which is a thin sheet of
steel with a protective coating of tin.
Tin plate is used for food cans because it is not reactive to the acids present in
food.
Alloys of tin include bronze (combination of tin and copper), pewter (combination
of tin and lead), superconducting wire (combination of tin and niobium), Babbitt
metal (combination of tin, copper and antimony), bell metal (combination of tin
and copper and solder which is a combination of tin and lead). Babbitt metal is
used for the surface of bearings. Superconducting wires are used in the
manufacture of extremely powerful magnets.
Uses of tin
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Oil,and nergy
The Miri oilfield in Sarawak – started production in 1910,
Developed by Shell
Petroleum production began offshore from east coast of
peninsular Malaysia in mid-1970s
By 1980, petroleum generated 24% of Malaysia’s exports.
By 1990s, 58% of Malaysia’s petroleum output came from
Peninsular Malaysia, 28% from Sarawak, 14% from Sabah.
In 2000, petroleum contributed 25% of Malaysia’s revenue.
General discussions
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Petronas was Incorporated on 17 August 1974 under the Companies Act 1965
Ownership: 100% owned by the Malaysian government
Address: Petroliam Nasional BerhadTower 1, KLCC50088 Kuala Lumpur, MalaysiaTel: 603-20515000
Today it is found in the Fortune Global 500 largest corporations.
And has fully-owned subsidiaries which are listed on the Kuala Lumpur Stock Exchange. It has business interest in 35 foreign countries.
About Petronas
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Important Achievements 1975 First export of crude oil 1976 Conclusion of production sharing contract with Shell and Esso 1978 Incorporation of Carigali, the exploration arm. 1980 Incorporation of Asean Bintulu Fertilizer - marking its entry into
petrochemicals 1981 Its first gas station set up in Taman Tun Dr Ismail, Kuala Lumpur 1982 Carigali's first oil discovery in the Dulang oilfield, offshore Terengganu 1983 Malaysian LNG exported its first shipment of liquified natural gas to Japan First refinery with 30,000 bpd capacity in Kertih, Terengganu came onstream 1984 HQ move to Kompleks Dayabumi 1985 First fertilizer export. First liquified export. 1990 First overseas operation - Myanmar 1994 Petronas Dagangan Bhd - first subsidiary listed on KLSE 1997 HQ moved from Dayabumi Comples to the Twin Towers
About Petronas
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Sustaining oil and gas production
This involves extending the lifecycle of existing resources by optimising exploration,
development and production activities. Three EPPs have been identified:
•EPP 1: Rejuvenating existing fields through enhanced oil recovery;
•EPP 2: Developing small fields through innovative solutions; and
•EPP 3: Intensifying exploration activities.
*EPP – Entry Point Project
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Enhancing downstream growth
This thrust aims at tapping two sources of growth in the downstream sub-
sector to take advantage of growth opportunities and improve the supply of
oil and gas to end users:
•EPP 4: Building a regional oil storage and trading hub; and
•EPP 5: Unlocking premium gas demand in Peninsular Malaysia.
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Making Malaysia the number one Asian hub for oil field services
This thrust aims at positioning Malaysia as an OFSE hub for Asia, leveraging the
nation’s strategic location at the centre of the Asia Pacific region and adjacent to
international shipping lanes. Three EPPs have been identified:
•EPP 6: Attracting MNCs to bring a sizeable share of their global operations to
Malaysia;
•EPP 7: Consolidating domestic fabricators; and
•EPP 8: Developing engineering, procurement and installation capabilities and
capacity through strategic partnerships and joint ventures.
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Building a sustainable energy platform for growth
This thrust includes initiatives that aim at ensuring energy security for Malaysia as the
nation strives for growth towards becoming a high-income economy. This also involves
reducing reliance on fossil fuels while growing our power generation capacity. Four EPPs
have been identified to improve Malaysia’s energy security and efficiency:
•EPP 9: Improving energy efficiency;
•EPP 10: Building up solar power capacity;
•EPP 11: Deploying nuclear energy for power generation; and
•EPP 12: Tapping Malaysia’s hydroelectricity potential.