17/11/05 KUALA LUMPUR, (Bernama) -- A palm fibre manufacturing venture looks set to take off once Asean leaders endorse the project when they converge for their annual summit here next month.

The chairman of the Asean Business Advisory Council, Datuk Syed Amin Al-Jeffri, said a company known as Sabutek would be the Asean conglomerate which spearheads the project in what is seen as an extension of Asean economic integration.

The venture is also seen a one of the many processes to help create an Asean Economic Community (AEC).

Syed Amin said the project using palm fibre technology would manufacture building as well as bedding materials.

Private sector parties from Singapore, Malaysia and Thailand will participate in the project under the auspices of the Asean Pioneer Project Scheme.

Malaysia is contributing its home-grown palm fibre technology, Singapore will develop and manufacture the required equipment for the venture and Thailand will provide the locations for the endeavour at Krabi and Bangkok.

Syed Amin said Indonesia was also considering to join as it would be an important source of raw materials from the vast areas under oil palm cultivation.

Sabutek's chief executive officer (CEO) is Shahrir Liew.

Syed Amin also said a memorandum of understanding (MoU) had already been signed for the Asean consortium to be formed for the venture.

The proposed project has already been endorsed by the Senior Economic Officials' meeting (SEOM) and the Asean Economic Ministers' Meeting (AEM).

"Now, it is up to the leaders to endorse the project, which was mooted by Prime Minister Datuk Seri Abdullah Ahmad Badawi, at the 1Oth Asean Summit in Vientiane," said Syed Amin.

With the endorsement, he said the respective countries involved in the project can help by providing incentives to facilitate its successful implementation on a regional scale.

Others projects in the pipeline which could be undertaken by Asean conglomerates include Asean electrical and electronics projects, Asean e-commerce, Asean tourism, shrimp farming which being mooted by the Philippines.

As for tourism, he said there are proposals for such a conglomerate could support setting up budget hotels as well as offer single package excursions covering three destinations.

The Asean Business Advisory Council was set up by Asean leaders as the primary vehicle for private sector feedback and guidance to boost efforts in creating an integrated and competitive Asean economy.

It is also a platform for the Asean private sector to present ideas to their leaders to further integrate the region's economies.

Malaysia will play host to the 11th Asean Summit, Asean-related summits with a number of countries like China, South Korea, Japan, India, Russia, Australia and New Zealand, and the East Asia Summit from Dec 12 to 14.

At the same time, the Asean Business Advisory Council will organise the 2005 Asean Business & Investment Summit on Dec 10 and 11 at the Shangri-la Hotel here while there will also be a special leaders' dialogue at the same venue on Dec 12.