Rural communities require transformation of ways to organize them to move forward

It is worth while repeating that SCORE is an opportunity for Sarawak to undertake a quantum leap to the future level of development from merely providing welfare, which the government will still be doing, to providing platform for people to enjoy a much higher standard of living.

Bintulu's LNG plant

Actually, its development serves as the vehicle for the State to migrate from the medium income to high income economy as outlined in the Federal perspective towards the year 2020 and beyond. Sarawak, like other states in Malaysia has the aspiration to become a high income economy and a developed State by that year.

Understandably, the government is determined, right from the conceptualization and implementation of SCORE, that it should benefit the people of Sarawak. Hence, its planning and implementation takes into consideration the development of Sarawak economy as a whole and those outside it within the nation and region within the context of global economy and geo-political developments.

SCORE is an extremely ambitious development program.  It is developing one third of the whole area of Sarawak for industrial complex from scratch. Its development has come through many challenges and should be sailing more smoothly from now onward.  The State Government through Sarawak Energy Berhad (SEB) on June 1, 2011 secured a - 30 year Power Purchase Agreement (PPA) with the Federal Government through Sarawak Hydro Sdn. Bhd.

This was a major step forward in the development progress of SCORE. Of course, prior that, the Prime Minister had assured the State that electricity from Bakun hydro would be used for the development of heavy industries in Sarawak.   With this supply of power now secured, Sarawak Electricity Board (SEB) will be able to read to negotiate more firmly with investors the price, size and duration of the power requirement of investors.

Understandably, SCORE has been able to attract tremendous interests from both the local and foreign investors because of the main source of power is hydro electricity with fossil fuel now being traded at above USD100 per barrel.  Fossil fuel prices are likely to stay high in the future because of the diminishing supply and the increasing demand sharply by China and India.

This makes the hydro source of electricity a premium and attracts quite a lot of industries. The premium of hydro electric power over fossil fuel in the long term means that Sarawak must be able to optimize it with investors.  Hence, the development of SCORE, though it requires huge investments, will bring about major social improvements to the people of Sarawak.

SCORE has already secured 13 projects with a total investment of RM26.4 billion, which is well within the expectation of RM10 billion a year. The projects are predominantly in energy intensive industries such as aluminum smelting plants, polycrystalline and metallic silicon and alloy project in Samalaju Industrial Park.

Five of the projects comprising 20% of the investment value are wholly-owned domestic companies while two projects comprising 43% of the investment value are joint-ventures between local and foreign investors and six comprising 37% of the investment values are wholly-owned foreign companies. Four other projects worth RM3.2 billion of investment are still pending the approval for the Manufacturing License by the Federal Government

It is inevitable that the development of gigantic projects namely the development of hydro dams will change the landscape of remote areas as well as the lifestyle of the people who will be affected by it. These people have been depending for centuries, on land for their survival. Admittedly, they have a close sense of identity and communal belonging to the land.

Tanjung Manis Halal Hub

However, they, like the rest of the people, must accept change in the path for progress. The affected communities are assured that the government is sensitive to their demand for adjustments, which have already been incorporated into the resettlement plan.  The government is determined to find ways and means to ensure that the change in the environment will result in better means of livelihood for them.  

For example, the overall plan for an area, which has already been earmarked for a hydro dam, is being considered as the essential component of SCORE. The areas in the interior of Sarawak will be developed gradually to become components of eco- tourism together with efforts to preserve the legacy of the people.

Understandably, the State Government views the resettlement of the affected communities as a major opportunity for rural transformation.  The exercise will transform the traditional communities to be more in line with modern trends of progress and advancement as per the wishes of the people.

Basically, the desire of rural communities to raise their standard of living by a significant amount requires a new transformation of their way of organizing themselves and with those outside their communities. Hence various committees have been set up and consultants engaged to ensure that the format will be in keeping with the preferences of the natives themselves. New technology will be introduced in order to double or triple their output. Besides, constant search for markets will be carried out for products of the rural communities. The nature of transportation and the modes of payments for the products will also be studied.

The State Government has raised the standard in the Social and Environmental Impact Assessment in the development of major projects including the new hydro dams to be in line with the international requirements as embodied in the Equator Principles and the United Nations Declaration on Rights of Indigenous Peoples.   The Equator Principles are voluntary set of standards established by global financial institutions for project finance. They are formulated along the same line as the environmental standards of the World Bank and the social policies with the International Financial Corporation or IFC, which is part of the World Bank Group, to provide loans to improve the quality of lives of people in developing member countries.

In essence, these international standards can be seen to contain the key elements of free, prior and informed consultation to the proposed action plan or the independent review of Impact Assessment or public dussion of the Impact Assessment and the establishment of a Grievance Mechanism. Admittedly, these international standards are major guiding principles.

Therefore, it is important that the people of Sarawak must welcome investors from both the local community and those from outside.  We must work with them so that growth and development can benefit to all levels of our society, not only in urban centers but also in secondary towns, villages and long houses.

Understandably, the State government has been working very hard to connect with trigger projects in order to launch SCORE to a good start. Besides, it has also to deal with issues on how to translate the development of SCORE to the rest of the population.   For example, the young people must be made to realize that the amount of benefits that they will be able to garner from SCORE depends very much on the level of preparations that they are prepared to undergo. In other words, they will get the benefits in proportion to their training, talents and skills and their contribution towards the growth of industries and business.

Mukah Coal-fired station

It can be anticipated that the economic cake will no doubt grow substantially.  The planned private investment for SCORE is over RM200 billion over the next 20 years to the year 2030 or roughly RM10 billion a year with present value of money.  Hence, the State cannot stop at Bakun judging by the interests of investors for more heavy industries to be set up in SCORE development area.  They will only come as long as they can get favorable prices of electricity comparable with those in more established hydro electricity producers like Quebec and Norwegian countries.

It is also anticipated that the development of industries in SCORE will create plenty of jobs for people who have the relevant qualifications, right skills and training. The state government has engaged two world class experts for their advice on the setting up of a mechanism for manpower planning and training primarily to entice more Sarawakians to be trained to take up technical jobs. 

Obviously, the immediate task is to enlighten young people that there are good career prospects waiting for those who have diploma qualifications or trade certificates in the development of SCORE.  It is a peculiar characteristic among local parents of wanting their children to become doctors, accountants, lawyers, engineers and other professionals. However, in successful economies like Germany, Switzerland and even Australia, they require people, who have skills to do technical tasks with speed and accuracy such as machine operators, electricians, deep sea divers and many others.

Therefore, skill training is a good road for students, those who are keen to get good jobs in Sarawak in particular, to take. It is projected that SCORE will create a total of 1.5 million jobs, half of them for skilled people upwards by the year in 2030.   

benuasains

 *Photos Source:

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