KUALA LUMPUR, Oct 19 (Bernama) -- The Federation of MalaysianManufacturers (FMM) said Tuesday the promotion of the use of natural gasvehicles in the transportation system was most appropriate in view thatMalaysia has large reserves of natural gas.

In a statement, FMM said the new orientation was a step in the rightdirection, particularly in addressing energy problems from the overallperspective and it would ensure greater vigour and interest in promotingenergy efficiency.

It said the use of natural gas in the transportation system would ensurecleaner air, less pollution, greater cost savings and lower transportcosts.

The energy saving strategy and contribution towards a cleaner environmentcould be further enhanced if the use of natural gas was also encouraged inthe manufacturing sector.

FMM said it has always upheld that the country's energy policy shouldsupport value-added activities for greater multiplier effects andsustenance of economic growth.

In this respect, the government should provide the infrastructure toensure that natural gas was readily available to all industries, includingin Sabah and Sarawak, it added.

Besides, FMM said the government should also reward energy efficientcompanies by providing rebates on electricity tariffs.

As a start, it said there should be greater emphasis on simple energysaving measures such as improving operation efficiency, better maintenanceof machines, energy efficient equipment, and so forth.

Among other things, FMM said alternative fuel sources would be for themedium to long term strategy.

It said extensive research and development (R&D) would have to be carriedout on the fuel, its application to machinery and energy conversionmethods to ensure affordability and accessibility.

On the use of palm oil as a biofuel, FMM said it had to consider the costsinvolved as it would not be economically feasible when the market price ofpalm oil was high.

FMM emphasised that comparatively low energy cost was an advantageMalaysia has because of its rich oil and gas reserves.

The association said that Malaysia should maintain the comparativeadvantage to enhance competitiveness as a production base as well as beingan attractive investment location.

FMM said industries should be encouraged to be energy efficient.

Promoting energy efficiency should therefore be the priority to help thecountry's economy to absorb the increase in petrol prices, it said.

It added that there should also be more petrol kiosk selling natural gasto improve accessibility to supply.

-- BERNAMA