Port Klang Free Zone

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Port Klang Free Zone (PKFZ) is a 1,000-acre (4.0 km²) regional industrial park and integrated free zone and industrial zone providing integrated commercial and industrial zone offering facilities for international cargo distribution (export), regional distribution and manufacturing parks for products fabrication. It is located along the Straits of Malacca Port Klang, Klang, Malaysia. The PKFZ was previously managed by Jebel Ali Free Zone Authority (JAFZA), however it is taken over and rebranded by local company in 2007. ^[1] The regional industrial park offers various investment incentives to investors to set up business and manufacturing facilities in PKFZ, eg. tax exemptions on most products and/or services, industrial allowances, 100% foreign equity, 100% repatriation of capital and profits and, incentives for R&D, training and export.

1 Precincts
2 Transport connections
3 Controversies
- 3.1 Financial Scandal
4 See also
5 Reference

[edit] Precincts

The Port Klang Free Zone is divided into 8 development precincts. Each precincts houses different type of industries.

**Port Klang Free Zone Precincts**
Precinct	Industries
Precinct 1	Logistics
Precinct 2	Heavy Industries
Precinct 3	Light Industies and Warehousing
Precinct 4	Logistics
Precinct 5	Business complex
	Exhibition and trade centre
	Customs centre
	Food court
	PKFZ authority office
Business class hotel
Precinct 6	Automotive
Precinct 7	High Tech Industries
Precinct 8	Heavy Industries

[edit] Transport connections

Quay Cranes at Northport Malaysia.

Port Klang is well connected to one of Asia's aviation and distribution hubs, Kuala Lumpur International Airport. The Airport houses KLIA Advance Cargo Center which covers 108 acres (0.4 km²) of land and can handle one million tonnes of cargo per annum with the capability to expand to 3 million tonnes/year. The center is designed as an integrated transshipment hub within the Free Commercial Zone.

The Port is also closely linked to Northport and West Ports in Port Klang, the 16th busiest port in the world.^[2].

[edit] Controversies

[edit] Financial Scandal

The controversy started when Malaysia Parliament's Public Accounts Committee had a two hour long meeting with the Port Klang Authority (PKA), proclaiming that the Public Accounts Committee were dissatisfied with the outcome as PKA was unable to answer questions posted by Public Accounts Committee on the huge cost overrun amounting to RM 3.5 billion (USD 1.0748 billion) for setting up the regional industrial park, PKFZ. The original cost of setting up the integrated free zone was RM1.845 billion but ballooned to RM4.6 billion when the project is completed four years later.

“

This affair is one of the many examples from the present administration that reveals conflict of interest, corruption and mismanagement involving politicians, business interests and public officials ^[3], said Raja Petra, Malaysia Today's Contributor

”

PKA purchased 1,000 acres (4.0 km²) of Pulau Indah land from Kuala Dimensi Sdn Berhad at RM 25 per square foot for a total consideration of RM 1.8 billion (inclusive of interest). Kuala Dimensi made a capital gain of RM 993 million because it had purchased the land from Pulau Lumut Development Cooperative Berhad for only RM 95 million^[3] (at RM 3 per square foot). Moreover, Minister of Transport saw fit to reject the Attorney-General's view that the land could be acquired for "public purpose" under the Land Acquisition Act at RM 10 per square foot. ^[3]

In 2007, the Malaysian Government will give a soft loan of $1 billion to Port Klang Free Zone. In the press release, The Ministry of Transport, Malaysia put the blame on the previous regional industrial park management company of Port Klang Free Zone, JAFZA for mismanagement. The PKFZ initial plan was to develop in two phases, covering 500 acres (2.0 km²) at the cost of RM 400 million. However, the JAFZA advised PKFZ to develop the entire project in single phase, costing RM1.845 billion.^[4]

In 2008, PricewaterhouseCoopers was selected as the external auditor to help clear up the reason for the RM 4.6 billion soft loan.^[5]