From a primary producer of raw materials to exporter of manufactured goods, services

While the tendency is to think that the government should do all things for the people and the government has the capability and capacity to do so. The fact remains the sustainability of rural transformation and modernization lie in the hands of the people and their ability to positively engage in adjustments. They may need education and technical assistance and probably some development funding which the government can afford to give.

Bintulu Port

Therefore, there is a need to refocus efforts on entrepreneurship among Sarawakians both Bumiputera and non-Bumiputera alike. Entrepreneurship is the sole creative agent that transforms the life of a community and society from a dull and an uneventful community towards an active society where something new is happening all the time.  Someone, somewhere in the community has a clever idea and is working very hard to achieve his or her role and vision to succeed.

Sarawak is slowly but surely transforming itself from a simple primary producer of raw materials exporter of manufactured goods and services with a solid industrial base. Thanks to SCORE, founded on good resources of hydro electricity power, the new economy of Sarawak will be more involved with investment, marketing and exporting, which are major elements of the creativity called entrepreneurship.

However, the people must gear themselves to play a more active role in the process of development in order to maximize benefits from it.  They must learn from developed countries like United States and Europe that the constant pouring of government funds into the economy for consumption purpose does not necessarily mean full employment and a high standard of living for them.  Instead, a country may end up getting lots of inflation and other related problems.

Undoubtedly, the people have been living a relatively unchanging way of life. However, the sharp increase in the expectations of the people, as a result of the exposure of young people to the larger world through the internet and social networking, means our traditional way of life seems to be rather uneventful and some would claim to be backward and deprived.  Of course, it is a matter of perception and not a reality.

What used to be seen comfortable before is now considered to be shortcomings. Hence, the government is compelled to undertake drastic economic transformation in order to meet the expectations of the people. The government has to move forward fast.  Obviously, the emphasis now is to make a success of the transformation plan to upgrade the economy from medium to high income economy towards the year 2020 and beyond.

Therefore, efforts must be made to upgrade productivity, explore new resources and see the potentials for greater development. However, financial assistance must be applied judiciously in selected and exceptional cases where there is severe handicap or inabilities. Otherwise, the State and country will end up like some developed countries who are now suffering on the verge of bankruptcy.

Obviously, the crucial aspect of development program for Sarawak is to ensure that SCORE, an extremely ambitious development program is being developed properly.  SCORE, in spite of many teething problems, is developing a huge area of about one third of the total land surface of Sarawak over a period of over 20 years.

The development of SCORE has come through many challenges.  One of the major hurdles to its development is to secure a sufficient supply of power for the setting up of mega industries in the development area.   Bakun Dam, is owned by the Federal Ministry of Finance, which funded its construction from 1997 following the Asian Financial crisis. The dam is being by Sarawak Hidro Sdn. Bhd. which is owned by the Federal Government.

Bakun Dam

The State Government through Sarawak Energy Berhad has made a proposal to the Federal Government to buy the Bakun Dam but the offer is not accepted.  Instead, the State Government through Sarawak Energy Berhad (SEB) has managed to secure a 30-year Power Purchase Agreement (PPA) with the Federal Government through Sarawak Hydro Sdn. Bhd. for a long term use of energy from Bakun for the development of industries in Sarawak, SCORE development area in particular.

With the supply of power now secured, SEB will be able to negotiate more firmly with investors the price, size and duration of the power requirement by them. SEB will bear the additional costs that include the construction of transmission lines and electrical sub- stations to deliver the power to the consumers.

Obviously, the state must have a clear and definite plan for the development of power to enable it to enter sales agreements with investors that have expressed intentions to set up industries in SCORE.  Besides, the development of power is very costly to necessitate its future development plans to made very clear to enable the state to have early talks with potential investors.  It is important to have power takers years ahead as anchors for the future development of energy either from hydro dams of coals in order to achieve favorable terms for the state.  

Understandably, SEB has a concrete plan to develop hydro dams each at Murum, Limbang and Lawas and coal-fired power plants each in Balingian and Nanga Merit, depending on responses from major investors for the development of other trigger projects in SCORE development area.

SCORE has been able to attract tremendous interests from both local and foreign investors with the State’s concrete plan to develop hydro dams to generate electricity at reasonable costs.  With continued volatility in costs of fossil fuel, now being traded at above USD100 per barrel, hydroelectricity has increasingly become a premium in the global market.  Fossil fuel prices are likely to stay high in future because of the diminishing supply in crude oil and the increasingly sharp increases in demand by China and India.  Sarawak must be able to optimize this premium with investors.

Besides, conscientious efforts will be made to attract more foreign investors to invest in the development of Sarawak in order to stimulate   its growth and development for the benefits of all levels of our society in urban and rural centres, primary and secondary towns, villages and longhouses.

Undoubtedly, the economic cake will grow substantially with the development of SCORE over the next 20 years to the year 2030. It will require private investments totaling RM200 billion or roughly RM10 billion a year with the present value of money.   The economic cake will keep on growing to meet the requirements of the people.

Tanjung Manis Deep Sea Port

Sarawak will remain attractive to developers of heavy industries like aluminum smelters, the energy intensive industries, if they can get favorable prices of electricity.  The prices must be comparable with those in more established hydroelectricity producers in Quebec, Canada and Norwegian countries.

In other words, Sarawak will remain the attraction for more heavy industries judging by the interests of foreign investors to set up gigantic projects in Samalaju, Tanjung Manis and other places in SCORE. To-date, SCORE has secured 13 projects with total investments of RM26.4 billion, which is well within the expectation of RM10 billion a year.

Five of them are wholly-owned domestic companies while two projects 37% are wholly-owned foreign companies. In addition, four other projects worth RM3.2 billion of investment are still pending the approval for the Manufacturing License by the Federal Government.

Under the First Rolling Plan of the Tenth Malaysia Plan, another nine projects amounting to RM300 million for 2011 have been approved by the Federal Government.  . The State Government is giving priority to the projects that are planned and implemented for Samalaju Industrial Park, which are mostly basic infrastructure, utility and communication projects. The Federal Government has acknowledged these projects to be crucial in order to meet the requirements of investors for the timely implementation of SCORE

SCORE is a green field project, which starts from scratch, to build infrastructures like roads, ports, airports and others. The State Government is grateful to investors, who have shown great understanding of the local situation and been willing to assist in identifying the types of infrastructure requirements that should be put in place. The State Government is also grateful to the Federal Government for its support to SCORE, which is the home grown plan, to implement its concept of regional economic corridor of development.

Mulu Resort

It is worth repeating that SCORE is an opportunity for Sarawak to undertake a quantum leap to provide platform for people to enjoy a much higher level of standard of living. However, the amount of benefits that the people will be able to garner from the development depends very much on the amount of preparation they have got to undergo. In other words, they will get the benefit in proportion to the training, to the talents and skills they can contribute towards the growth of industries and businesses.

Sarawak, as with the rest of Malaysia has the aspiration to become a high income economy toward the year 2020 and beyond. Hence, the planning and implementation of SCORE takes into consideration the development of the Sarawak economy as a whole and those outside it within the nation.    

benuasains

 *Photos Source:

 google.com.my