Sarawak needs leeway to deal with world investors

The perspective plan for the development of SCORE is 20 years, not 10 years. The plan, unlike those in other states, stretches all the way to the year 2030 and not to the year 2020 like. Admittedly, Sarawak is introducing something that is completely new in Malaysia. Understandably, the people, at the Federal level have been asking why the State has to put up a perspective plan for is 20 years and not 10 years like other States. But the State government has been told that the full picture of the development of the potentials can only emerge with a 20-year plan. Therefore, all estimates made are within the period of 2030. 

It is anticipated that more heavy industries, with potentials to attract downstream industries like aluminum factories will be created after that period. In other words, the development of downstream industries will unfold more and more after the year 2020. However, the development is expected to happen round about the year 2015 all the way to the year 2020. The rate will increase more and more after the year 2020.  This is what will happen in Sarawak towards the year 2020. The escalation in jobs creation will increase much more after the year 2020 than before that year. 

The Sarawak Corridor of Renewable Energy (SCORE)

Chief Minister, Pehin Sri Haji Abdul Taib Mahmud, says the State government will invest about RM67 billion out of the total investment of over RM360 billion for the development of SCORE towards the year 2030. The proportion will be bigger than those for Peninsular Malaysia but the impact will be beyond SCORE development area. 

The assumption that SCORE will only benefit areas between Tanjung Manis and Samalaju and all the way down to Baram and Tunoh in Kapit is incorrect; SCORE will benefit a much greater area. Out of the total of 1.6 million job opportunities that will come up, about 830,000 will be in SCORE area and the rest will be floated outside it. 

Some of the spin off effects of the development of heavy industries may help Malacca, if not Penang, where there is lots of development in the electronic sector that can use some of the semi processed products from Sarawak. Generally, there will more linkages between Peninsular Malaysia and Sarawak in development. Hopefully, it will have some implications on the State’s ability to increase export volume to Peninsular Malaysia, which at the moment is very small. The State imports a great deal of goods from Peninsular Malaysia but export very little; the ships on their return trips are normally empty. 

SCORE gets US$11 bln investment

For example, Malacca can import silicon ingots, being manufactured in Sarawak, directly from the State rather than to compete with other manufacturers in getting the same products or semi processed products from further afield. This has the advantage of keeping the money inside the country. Besides, it also gives downstream manufacturers in Peninsular Malaysia a greater security of supply of the semi processed goods. This is an example how more linkages will be established between Peninsular Malaysia and Sarawak in future.  Such linkages should be able to create more jobs further afield rather than just in Sarawak.  

In this connection, the people in Peninsular Malaysia can also look for jobs coming up in Sarawak as not all of them can be filled by Sarawakians.  The State Government believes, though it planned for better educational and training programs five years ago, there will still be insufficient inputs into the institutions of trainings and universities to give sufficient job seekers for all the jobs that will be created in Sarawak even before the year 2020. 

Pehin Sri Abdul Taib says it is the view of the State government that the development of SCORE must be put in a different context, namely its impact on Malaysia towards the year 2030. There is no question, after the year 2020, that Sarawak will have the problem of how to sustain its development, the development Sarawak as a whole and the development of SCORE in particular. 

It is projected that the State will be able to produce five times more income from that of today’s level by the year 2030.    Undoubtedly, it is more desirable for the State to integrate its policy together with Peninsular Malaysia. However, at the same time, Sarawakians must be given a lot of leeway and autonomy in designing the format of development that may not necessarily be quite the same as in Peninsular Malaysia. 

For example, Sarawak has to deal with world players, big investors who have got established world policies on investment that give them a lot of advantages; the State has to grapple with their demands or requirements.  The State must know what they want or what kind of industries that they want to set up.  

Understandably, there can be a lot of debates coming up at the Federal and state levels because of the inability to appreciate the specialist needs to a lot of these world investors. Therefore, success depends on the ability of the State to make the federal government appreciates that most of the problems can be tackled at the ground level rather than at the top. 

SCORE PROJECTED TOTAL INVESTMENT

Though the Prime Minister seemed to be philosophically attuned to these kinds of ways of achieving better progress for the future, but there a lot more people to be convinced to be in tune with him.  In other words, the Federal machinery must be properly tuned  to give sufficient autonomy to the State to meet the requirements of heavy industries.  

One good example was the establishment of MMC, a company that manufactures about 6,000 megawatts of solar cell. The company came in about a year ago and its factory is about to be completed in Samajaya.  This is a good example of where there is a will, where there is understanding and where there is determination Sarawak can serve industries as quickly as it can.  

The development of SCORE, induced by competitive prices of energy, can be done in a more sophisticated way. The response of investors is well placed in aluminum, manganese, steel, poly silicon ingot and other tin-related industries.  The investors are very happy to come because they believe that Sarawak, which can offer competitive prices of energy, is the best launching pad to serve the growing hunger of China for the raw materials. 

China, at the same time, is developing a policy to hike some of its manufacturing facilities that require high consumption of energy. China is pursuing a policy to seek the higher end of manufacturing activities inside the country and allow the middle end from outside to be more accessible to China. 

MANPOWER DEMAND

The development of hydro dam at Bakun, being the first project to be developed in the State had to face a lot of problems.  Therefore, Sarawak could not afford to wait for for the completion of Bakun hydro project to do other things.  In fact Sarawak has gone ahead with the construction of Murum dam and feasibility study of Ulu Baram and Pelagus hydro dams with a view to make them on line for development in the next few years. 

At the same time, the State Government is looking at Limbang and Lawas for the development of energy in co-operation with Brunei and probably Sabah.  That will bring us upfront to 6,000 megawatts by the year 2020. That will be sufficient to give development of more than 6.5 per cent every year. The development will be within the expectation of the federal government for the State to achieve. 

Sarawak, which has been fighting from the periphery before, should be able to go right into the centre because of the change in development in Asia. The State lost a lot of competitive position after 1997 because of the rise of China. At one time, China was more or less the manufacturing hub of the whole world. But today it does not need to manufacture everything. They want to go for quality and like us want to develop the high income economy.  Sarawak is in the position that fits very well with the development planning of China and India as the rising market in the world. They can be a partner for trade and joint ventures and in investment.

benuasains

*Photos Source: http://www.recoda.com.my/