The proposed budget for 2012 for Sarawak, unlike other states, is expected to yield a surplus of RM79 million on the basis of an estimated total revenue of RM4,043 million against a total ordinary expenditure of RM3,964 million. The latest to propose a deficit budget is Perak. Earlier it was Sabah.
The proposed budget for 2012 for Sarawak is the second under 10th Malaysia Plan, which is part of the overall Government Transformation Program (GTP) to push the country to become a developed nation by the year 2020.
It is being formulated with strategies that are consistent with the thrusts of the National Budget with the theme “National Transformation Policy: Welfare for the Rakyat, well-being of the Nation.”
The National budget focuses on the following:-
Accelerate Investment;
Generate Human Capital Excellence, Creativity and Innovation;
Rural Transformation Program;
Strengthen the Civil Service; and
- Ease Inflation and Enhance the Well-being of the Rakyat.
The Federal Budget has also included various programs and projects that benefit the Sarawak as follows:
- Strengthen the development of basic infrastructure and utilities in a more comprehensive manner, which include allocation for village-link road projects, refurbish, upgrade and build schools and clinics and expand clean water and electricity supplies to settlements in rural areas;
- Establish rural transformation centers to integrate services that include collecting, processing and distributing of agricultural products, banking and insurance;
- Develop Samalaju multi-million water supply project;
- Modernize the supply and value chains in the agriculture sector;
- Develop efficient transport and logistics system; and
- Develop the quality and skilled manpower.
The State Budget 2012, among others, will focus on the development of SCORE area, increase the value-add of tourism sector particularly MICE market, modernize the agriculture sector and its supply and value chains and develop efficient transport and logistics system and the quality and skilled manpower.
As the burden of the development, in the past, has fallen heavily on the public sector, the proposed 2012 Budget will facilitate and induce the private sector as the main engine of growth. It has become increasingly crucial for the private sector, with its enormous resources and manpower, should engage actively in stimulating and spearheading investment for economic development of the economy.
 |
| The Sarawak Corridor of Renewable Energy (SCORE) has secured RM28.55 billion in investments from 2009 to August this year. |
Basically, the 2012 Budget will be a development biased budget. About 70% of the total allocation is for development purposes while 30% for operating expenditure. As a developing state, it is imperative for Sarawak to continue with a pro-development budget. More importantly, the management of the budget must be driven by productivity and efficiency. Hence, concerted efforts must continue to be made to optimize the use of available resources and reduce wastages.
The proposed budget continues to give priority to economic activities and productive sectors such as commerce and industry, public utilities, transport and communications, and agriculture and land development.
Understandably, the proposed budget will give special focus to further enhance the efficiency and effectiveness of the State’s financial management as well as the delivery system; it must keep the operating expenditure under stringent control.
Chief Minister, Pehin Sri Haji Abdul Taib Mahmud, in tabling the budget proposals during the current sitting of the State Legislative Assembly, says the State must spend within its means to ensure sufficient financial reserves to meet future challenges. It is important for Sarawak to continue with the policy of a balanced or surplus budget to ensure that the financial position remains strong and sustainable in the long run. This will also ensure that the State has fiscal flexibility to weather any economic eventuality.
Besides, the State, being an open economy, must adopt sound economic and financial policies as it is susceptible to the global and regional economic volatilities. For example, the continued volatilities in demand for commodities, such as oil and gas, crude palm oil, timber and manufactured goods have direct or indirect effect on the State. However, a healthy level of reserves should be able to provide fiscal flexibility in time of economic difficulties.
Pehin Sri Abdul Taib says the State, with a healthy level of reserves, has been able to ride through steadily over a series of global economic crisis in the past decades. The State Government will continue to put in place strategic measures aimed at strengthening the financial management and discipline.
 | |
| The Halal Hub is expected to initially attract RM2 billion investment, mainly from the Taiwanese and Middle East investors.When fully developed, it will be the world's largest halal hub covering a total of 47,000 acres. |
 |
The halal-based industries will include marine fish farming, bio prawn farming, organic chicken and egg,eel farming, chlorella industries ( green algae) and many others. The site of the Halal Hub is strategically located at the intersection of the roads leading to the coastal towns of Rajang,Jerijeh and Belawai, and only a short 2km from the Tanjung Manis New Township. Tanjung Manis is poised to become a major industrial town within the next 10 years. Currently the major industries are timber based . In the near future there will also be heavy investment in the fishing and shipbuilding industries. |
He says the State has again, for the ninth consecutive years, been accorded a Clean Certificate for its 2010 Public Accounts. The State has also been reaffirmed with commendable credit ratings from both the international and domestic rating agencies. The track records show that the State Government has conducted financial affairs in a transparent, accountable and prudent manner in line with the applicable rules and regulations.
Pehin Sri Abdul Taib says the State’s credit rating position is maintained at investment-grade status in spite of the global financial and economic turmoil that have adversely affected credit standings of some well established rated sovereigns, sub sovereigns and corporate entities around the world.
Moody’s has affirmed the State’s investment grade credit rating at Baa1 with positive outlook, while Standard & Poors also affirmed the rating at A-with stable outlook. Domestic rating agencies, both Rating Agency Malaysia (RAM) and Malaysian Rating Corporation Berhad (MARC), have also maintained our rating at AAA.
He says the commendable investment grades ratings reflect the strong confidence of the international rating agencies on the State’s sound financial position and effective financial and fiscal management. Nonetheless, the State must strive to ensure the financial position remains sound and the socio-political environment continues to be stable. It is more critical for the State to the sustain the commendable credit ratings in view of efforts to attract direct and indirect investments in a bigger way towards the year 2020 and beyond.
 |
| Samalaju on the plan, expected to accomodate jobs for 50,000 people. |
Until now Sarawak is the only State in Malaysia that has been able to place itself to greater scrutiny and review by both the domestic and international rating agencies as well as the international investors. In other words, the State’s ability, integrity, transparency and prudence in financial management are being acknowledged globally.
Pehin Sri Abdul Taib says the world economic growth has weakened as the handover from public to private demand in U.S. economy stalled and the euro area continues to encounter major financial turbulence. The International Monetary Fund (IMF) in its World Economic Outlook Report, released in September 2011, projects the world economic growth to moderate from 5.1% in 2010 to about 4.0% in 2011.
He believes the global economic prospect is expected to be more challenging in 2012 with European sovereign debt crisis and the slower world trade expected to dampen growth. For example, IMF has revised downwards the world economic growth for 2012 to 4.0% from their earlier estimates of 4.5% while the world trade to 5.8% from their earlier estimates of 6.9%, a decline of more than 1%.
Pehin Sri Abdul Taib says the State economy is expected to record a favorable growth of 4.5% in 2011. The growth will be underpinned by the sustained expansion of private domestic demand and strong exports of commodities arising from high commodity prices and favorable regional demand. However, the uncertainties in U.S. and Japan and the deepening of debt-sovereign crisis in Europe could have impact on the growth of the State economy.
He expects inflation to moderate in line with the expected slowdown in the global economy. The government, being sensitive to the plights of the people particularly the impact on the lower income group, has undertaken various measures to cushion them. The rate at the national level is expected to average 3.0% to 3.5% this year. The rate at the state level, in the first half of 2011, was recorded at 2.7% and is expected to remain below 3.0%.
Pehin Sri Abdul Taib says the State Government is always supportive of efforts being taken by the Federal Government to cushion the impacts of inflation on the people, who should also be prudent in their spending habits. At the same time, local businessmen and industrialists must be more creative, innovative, efficient and productive to ensure that their products are competitive at the global market.
benuasains
*Photos Source:
http://www.skyscrapercity.com
http://rubberseeds.blogspot.com
http://google.com
No comments:
Post a Comment