Monday Corner : Books on Sarawak's Development

Readinglist on Sarawak's development and economicprogress:

1) Empowering People To Work For Change - Jameson Ahip Nawie (Publisher : Jabatan Penerangan)

2) Inside Sarawak 2011 - Inside Invester (Publisher : Inside Invester Ltd)

3) The Report Sarawak2011 : Politics Overview - Capitalising On Strenghts (Publisher: Oxford Business Group)

An interview with SarawakChief Minister, YAB Pehin Sri Haji Abdul Taib Mahmud of his plan to take thelead to materialise the objectives of SCORE and his views about future ofSarawak and his attempt to share his development thoughts and ideas with thepeople to prepare them to march forward, shoulder to shoulder, with othercommunities towards the year 2020 and beyond.

People Development :A Leader's Journey In The Transformation Of Sarawak : Taib Mahmud  - R.Palan and Sabariah Putit (Publisher:SMR HR Group Sdn Bhd)

This book by Palan andSabariah is a unique attempt to highlight the unwavering commitment to humancapital development of a transformational Malaysian leader, YAB Pehin Sri HajiAbdul Taib Mahmud and his journey of commitment to public service.

benuasains

 

 *Source:

http://chiefministertaib.sarawak.gov.my/en/perspectives/literature

Urgent need to institutionalize unity, solidarity of people into a force to achieve development for all

The resilience and the strength of the local people, comprising of various ethnic and religious groups are something that all of us should value and be grateful for. Together, we have been able to withstand the uncertainties that are challenging us from time to time. 
 

However, we should not let our guards down and forget that the journey ahead is still full of challenges. Instead, we must be more determined and have a stronger sense of dedication in our efforts to ensure that we achieve the National and State development objectives within the stipulated framework. 

Obviously, we must stay united and should not be distracted by political bickering and arguments over petty issues which do not benefit anybody. Looking back, Sarawak has been able to accelerate the pace of development and move upward from being No.2 or No.3 from the bottom to a few steps upward with the unity and solidarity of the people behind the government.  

Arguably, with some voices of dissent mainly from the opposition, the State has been able to catch up with many of the States, though they started their development seven years ahead of Sarawak, in Semenanjung Malaysia during the last 30 years.  It has provided a strong foundation for Sarawak, mainly through the development of SCORE, to become the richest state in Malaysia.  Generally, the people recognize the fact that Sarawak has been able to surge from the backwater lane of development to become one of the fastest developing states in the country. 

Generally, the people do not doubt that the State’s policy and the common struggle for unity and solidarity have been able to bring about greater comfort and prosperity in their lives.  Needless to say, the State must continue to find a more modern and organized way to perpetuate the kind of thinking that can sustain the progress and prosperity for the generations that will come after us.   

Obviously, conscientious efforts must be made to institutionalize the unity and solidarity of the people into a force to achieve development for all.  Without such kind of thinking, the society may breed rebel groups here and there, who will be busy fighting for small things to benefit few individuals and not the society as a whole. 

Undoubtedly, unity is needed much more now than before as the State implements the second phase of the politics of development namely the development of SCORE up to the year 2030 and beyond.  Hence, all communities must learn the value of working together and appreciate much more that only through unity they can sustain development for the generations that will come after them.  For example, the progress that has been achieved must be sustained in order to have more ambitious plan, which may take one or two generations to turn Sarawak into a very rich state. 

Obviously, the successful implementation of such a plan requires a strong discipline of the people, who must be able to recognize, for example, that politics is no longer the fight for the individual advancement. It is common fight of the people in order to achieve a much bigger thing namely the transformation of the society.

Once, the concept of development was misconstrued by a lot of people as waiting for the fruits to fall. In other words, development was equated with durians, which will fall when they become ripe. They fall for the people to pick them up only; there are not many efforts on the part of the people. 

But development is strength that comes from efforts of the people. Besides, development is the improvement of experience from time to time so that what can be achieved tomorrow will be better than that being achieved today. In other words, development means to be able to do things better all the times. 

And that does not depend on money alone. It is dependent on efforts that need to be upgraded all the time by the capacity of the people to learn, understand and choose the way of working to cope with problems and opportunities that accompany with the process.  That explains the need to perpetuate the unity and solidarity, which have become more important today than from any other times in the history of the people. 

Arguably, Sarawak has succeeded in setting up a working democracy that can improve the way of life of the people. The State has succeeded in building a democracy that can last longer with more young people with better qualification and experience being chosen to provide the leadership in future.  Besides, SCORE is the common call for the people to work together to realise the dream of making Sarawak the richest State in the country by the year 2030.

Obviously, SCORE is not the exercise of picking up the fallen fruits. Its implementation demands individuals in the community to upgrade their ability to exploit big opportunities that will come up in the process.  

Chief Minister, Pehin Sri Haji Abdul Taib Mahmud, in his speech during a recent Solidarity dinner organized by Federation of Orang Ulu Association Sarawak, Malaysia (FORUM) in Miri says he is happy to be able to see the success of a community that has been able to take proper steps to move forward in a more organized manner. It is yet another example that if a community plans its steps to move forward properly it will be able to succeed in their economic endeavors and take further steps to sustain it. Obviously, the success of the Orang Ulu community is attributable to the politics of development that was launched in 1985.

He says, he decided not to call the State’s economic policy that had succeeded in making structural changes to the economy and given benefits to the people as the New Economic Policy for Sarawak as in Semenanjung Malaysia but instead coined a phase to become the philosophy of development.  The State government decided not to call the policy the New Economic Policy with the realization that it cannot talk about economic development mainly through steps being taken for it. 

The other states in Semenanjung Malaysia began to realize the importance of unity through the common struggle for Independence.  However, Sarawak, because of the security threat looming in Asian region with some indications that it could threaten the future of Sarawak, decided to seek unity and solidarity with Semenanjung Malaysia to save ourselves from such threat.  

That explains why the State did not have sufficient time to plan far ahead for the political consolidation and development. Besides, Sarawak has 20 to 30 ethnic groups with none of them being big enough to provide a majority and the basis for political stability in democracy; democracy without a majority will not be sustainable and likely to face lots of problems.  

Pehin Sri Abdul Taib says politics of development combines efforts to organize politics and develop the economy together in order to convince the people that they have a lot to gain by cooperating and working together in pursuit for progress and advancement.  It was also to make the people appreciate the necessity to have a broader understanding that covers all ethnic groups, which do not have the majority,   in order to enhance unity and solidarity among them.    In other words, the basis of a stable government lies on the ability of the people to have broad agreement among them. For example, the people must have the agreement to achieve the same thing through a common aspiration. 

He decides to make politics of development as the philosophy of development to spearhead efforts to develop politics and economy in Sarawak in 1985 to remind the people that the efforts to achieve progress and prosperity represent the most difficult job to do. Basically, the State can only be successful in economic development with the success to bring people comprising of various ethnic and religious groups together in unity to move forward.

Pehin Sri Abdul Taib says he is very happy to see the Orang Ulu, as a small community can be involved in the process of development and join other communities in promoting greater unity and solidarity in the State. 

He admits of being a bit worried 20 years ago with the concern that the Orang Ulu might not be able to sustain and use their own energy in the development of the community. There could be less than half of members of the community remaining in their longhouses during the period of less than 10 years. In other words, most of the longhouses in Baram would be half empty. Those who would remain behind would comprise of old people and children of ages 12 or 13 years old.

Then, the immediate challenge of leaders of the community was to make conscientious efforts to pool the energy of the Orang Ulu, which has more sub-ethnic groups that talk different dialects of between eight or nine of them, to develop Baram, which is often considered as the last frontier of development  in Sarawak.

For this reason, the Orang Ulu community like other communities must endeavor to solidify efforts and support the leadership in the drive for change.  That is being expected of the people to achieve. 

benuasains

 *Photos Source:

Penerangan Photo

SCORE will provide opportunities for Sarawak to catch up with development in Peninsular Malaysia

For us in Sarawak, our common struggle must necessarily be to ensure that the economy will continue to grow at a decent pace in order to generate sufficient employment and business opportunities for the people. The vocal complaint by the Opposition DAP that Sarawak is still the fourth poorest state in the country will not push it to the higher level of economic achievement without making bold steps to develop the economy. DAP’s comparison of Sarawak with Selangor and Pulau Pinang, just show how ignorant and shallow the party’s elected representatives can be.

Whatever DAP says about the state of the economy,  the State Government is taking the bold steps forward to make a quantum leap within the framework of the the Economic Transformation program, a Federal initiative to migrate the economy from the medium to high income economy towards the year 2020.  The development of SCORE will push the State to the era of massive industrial development that will bring it to the same level of socio - economic development and progress as in Semenanjung Malaysia, not just Selangor and Pulau Pinang, the jewels of the Opposition, which began their development in earnest six years earlier. 

Asean Bridge connecting Miri- Brunei

Admittedly, now Sarawak, which is almost of the same size as Peninsular Malaysia, is in the same stage of development as it was in late 80s in terms of physical infrastructure and industrial development. Sarawak has a big land area and small population, which is scattered in small groups comprising of more than 5,000 settlements over a very wide area. Hence, when Malaysia opened its door to foreign direct investment in the late 80s, the focus was on Peninsula to the great disadvantage of Sarawak with its small population and economy.

As a consequence, Peninsular Malaysia could undergo active period of building roads including the North - South expressway, ports including Tanjung Pelepas port in Johor, the expansion of power supply with IPPs or Independent Power Producers, the expansion of the water main power and many other projects. The stock market was liberalized and the Security Commission established. The federal strategy, in the early 1990s, was to privatize infrastructure projects and much of the funds were sourced from capital markets.

Now Sarawak urgently needs bigger allocation from the Federal government to develop infrastructure facilities as prerequisites to the proper development of the industrial base.  In addition, it must build suitable ports so that international trade can take place on a bigger scale, better roads and means of connectivity both internally and with the rest of the world. The State must also deliver sufficient water and electricity on a stable, reliable and reasonable basis to major industries that are coming up.  

Kuala Baram

Therefore, the State needs a good funding strategy to develop infrastructure facilities that are required by the industrial sector as it moves to a higher level of industrial development. For example, it must continue to build critical mass facilities in order to meet the requirement of big investors on the ground. Four of them have already committed billions of ringgit worth of investment to Sarawak. Many more investors are waiting to get basic facilities to develop their operational facilities.

Henceforth, the growth of the economy comes from the government spending and projects. However, conscientious efforts are being made to raise the income levels of the community across the board towards the year 2020 and beyond. Hence, the development of the economy has to depend more and more on private investments both from within and outside the country.  

Obviously, the quantum leap can be achieved by a significant injection of private investments, both locally and foreign. This paradigm shift in development strategy requires a similar paradigm shift in the mindset of the people. In other words, as Sarawakians aspire to enjoy high incomes they must be prepared to be trained to work hard and smart and to be more organized as productive communities.  

More importantly, they must be prepared to venture out of the old thinking and experience and embrace wholeheartedly the advances in the modern world.  For example, they must appreciate that the benefits of SCORE will be accrued by those who have the skills and expertise.

Indisputably, Sarawak is undergoing a significant transition from being an essentially agro-based economy with some reliance on mining and manufacturing activities to embrace a modern economy.  However, the development of SCORE, which requires major funding for successful implementation, will drastically change the pattern of development from now onward.  The successful implementation of SCORE will provide opportunities for Sarawak to catch up with the development and progress of Peninsular Malaysia. Its huge benefits will not only for Sarawak but the whole of Malaysia.

Sibu Durin Bridge

SCORE is dynamic for Sarawak’s situation. It is a homegrown development strategy, which takes advantage of reasonably priced energy from hydro and others to attract world class industries to build industrial clusters.  The State’s goal is to create good jobs so that the people can earn their living locally. The development of energy potential, especially hydroelectric power and coal, is crucial to the economic future of Sarawak. The availability of energy will provide the main comparative advantage to propel the industrial development in Sarawak.

In an open economy like ours, it is inevitable that a number of Sarawakians have opted to work abroad in search of better life;   it is a natural privilege of people living in an open economy and society. Besides, a number of them have been trained overseas and seen another way of living.

Chief Minister, Pehin Sri Haji Abdul Taib Mahmud, who is also the Minister Finance and Resource Planning and Environment, in his speech in winding the debate on Budget 2012 in Dewan Undangan Negeri, reaffirms the State’s commitment to develop SCORE  so that Sarawakians can earn high income  locally.  Therefore, it is paramount that ways and means must be found to ensure that development projects are properly funded. The successful development of SCORE will yield high economic growth for Malaysia, the state in particular, as it will create new avenues for growth and employment and not dependent on past performance. The development of SCORE entails the development of energy, industries and manpower development.

He says the development strategy during the past 20 years has seen significant change in the economic structure of the State. The shares of professional and technical workers rose from 5.2% in 1980 to 13.3% in 2010 in spite of increase in population. This means that the number of professionals and technical workers employed in Sarawak rose from 23,800 people in the year 1980 to 165,000 people in the year 2010.

Bintulu LNG

He says the structural change in the economy implies a significant change in the skillset and mindset required for the transformation to take place. The labor market is fluid especially in the current globalize world with the internet, advance communication and low budget air travel. The mobility of Sarawakians around the world is a good sign that they are capable of quick adaptation to changes in the modern world. Therefore, it is inevitable that Sarawak must transform the economy and society further through SCORE.    

Pehin Sri Abdul Taib says the development of Sama Jaya Free Industrial Zone, which employs a total of 9,479 people, is a success story. A total of 98.8% of its employments are locals comprising of 729 engineers, 246 other professional staffs in accounts and legal matters. There are 1,901 non-engineering technical staffs while 5,825 are operators and 663 administrative staffs. This is typical of high tech industries with the proportion of unskilled labor normally very low. Obviously, Sama Jaya industrial development can bring about good jobs for young people.

He says the State government recently commissioned UNIMAS to conduct a study on manpower requirements in Sarawak, the value chain of each of the ten (10) priority industries in particular. Projections of manpower demand are made using a quantitative economic module with assumption of different stages of investment growth. The UNIMAS manpower study concludes that the manpower requirements in term of the number of people are fairly modest in the next five years up to 2015.  The 10 priority industries in SCORE will generate about 58,200 new jobs in the first five years to 2015.  

This means about 11,600 new jobs should be created each year with 620 being professionals and 1,700 semi professionals. There will be 700 workers in support groups and 8,600 as general workers. Professionals are those with university degrees while semi professionals have Diplomas and Certificates in technical skills.   The number of jobs to be created for professionals will rise further to about 980 people each year after 2015.

Bintulu Port

There will be 1,130 professional jobs by the 2025 and 1,620 professional jobs by the year 2030. The study estimates that the local labor force will rise to about 1.1 million by the year 2015. The labor force will cumulatively have 226,000 professionals and semi professionals working by then. By the year 2030, the labor force will rise to 2.2 million, which will comprise of 50,000 professionals and 318,000 semi professionals. In other words, nearly half a million jobs will be for professionals and non-professionals.

Pehin Sri Abdul Taib says a survey being conducted recently among companies investing at Samalaju Industrial Park indicates that at the construction stage alone is about 17,200 construction workers in six plants. The average is nearly 3,000 workers per Plant. When the plants start to operate, they will immediately require about 8,700 office and factory workers and an average of 1,200 professionals and semi professionals per plant.

Understandably, there is concern that the State may be building too many hydro dams and other power generation plants. The concern may be born out of the apparent boldness of a long-term development plan that stretches for more than 20 years up to year 2030. However, the big plan should be visualized into components of five different periods.  The immediate actions of the plans are practical and the State can undertake heavier challenges as the people gather more knowledge and experience in implementing each phase of the plan.

Palm Oil Plantation

Pehin Sri Abdul Taib says the State government, at the moment, is building Murum dam only. It seems comparatively easier when compared with Bakun as the State government has better experience and understanding of all the problems involved. The development of other dams will go through the due process especially the social environmental impact assessment (SEIA) to ensure that each of them will be carried out in a manner that complies with international standard and is satisfactory to all stakeholders including people, who will be affected by their development.

The State government conducts the Social Environmental Impact Assessment (SEIA) in line with the equatorial principles to ensure affected communities will be properly resettled and compensated.  The resettlement exercise provides the government with opportunities to eradicate poverty and create new rural growth centers for the people. There are international standards to follow to ensure that the resettlement will truly bring about an improvement in the lives of the people.

benuasains

 *Photos Source:

http://google.com

Sarawak’s transparency, prudence in financial management are being acknowledged globally

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 10^th 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

Strategic measures to be enforced to strengthen financial discipline and management at all levels

The people must take great pride that the State has been able to achieve the present level of political and socio-economic development with the steady effort and sustained steadiness.  The State has come out from the backwater lane of development in the 60s and 70s to become one of fastest states in the country with every potential to attain the status of a developed economy by the year 2020.  

Undoubtedly, in spite of the negative reports written about Sarawak by  unfriendly foreign NGOs, the State has been managing resources effectively.  The State has been able to with stand the uncertainties that are challenging us from time to time. However, the journey ahead is still full of challenges; we should not let down our guards.  Instead, we must continue to act with a sense of dedication to ensure that we shall be able to achieve the development objectives within the stipulated framework. We must stay united and should not be distracted by political bickering and arguments over petty issues which do not benefit anybody.

The common struggle is to steer the development to a greater height. The State must maintain the growth momentum so it can embark on higher ground where a new economy will emerge. The State economy is expected to record a favorable growth of 4.5% in 2011. However, the concern over the uncertainties in U.S. and Japan and the deepening of debt-sovereign crisis in Europe may have impact on the growth of the State economy. 

Kuching

The State economy is projected to grow at 5.0% in 2012 as economic prospects in the region continue to look positive. Besides, strong domestic demand and economic activities generated by the on-going projects under the Tenth Malaysia Plan and SCORE area will be plus factors to healthy growth.

The construction sector is expected to grow at 6.4% in 2011, in tandem with the increasing tempo of the implementation of development projects in SCORE area as well as government projects under the Economic Transformation Programs. The growth is also supported by the strong construction activities in the residential and non-residential sub-sector. For 2012, the construction sector is expected to continue to register a strong growth of 8.0%.

The agriculture sector is expected to grow at 2.6% in 2012, with higher production of crude palm oil and other sub-sectors as a result of the rebound in commodity prices. The production of crude palm oil is expected to grow by 2.9% as the production continues to expand to meet the expected favorable demand.

Understandably, the State government will continue to pursue additional financial allocations from the Federal Government for development. Undoubtedly, more funds are needed to develop the vast State to bridge the development gap with Peninsular Malaysia. 

Sibu

Chief Minister, Pehin Sri Haji Abdul Taib Mahmud, who is also the Minister of Finance, says the State Government will continue to put in place strategic measures aimed at strengthening the financial discipline and management at every level. In this regard, conscientious efforts will be made to instill the culture of financial discipline and prudent financial management among members of the Civil service. It is fundamental that the State must be able to maintain fiscal flexibility and autonomy and conserve resources for the future generations.

He says the State government will continue to plan well ahead with greater foresight to ensure that the policies will be able to meet increasing challenges of global scenario and environment. More importantly, the development of Sarawak must be able to meet the rising expectation of the people, younger people in particular.

He assures that all projects under the current development plan and those under SCORE will be implemented timely and smoothly. The speed of implementation is crucial to further spur the domestic economic activities to cushion the impact of external economic slowdown.

He calls on all Ministries, Departments, Agencies including Government- Linked Companies to closely monitor the implementation of all projects to ensure that they are being implemented and completed as scheduled. This is even more crucial in view of the prevailing global economic conditions where the external sector is weak. Therefore, high impact projects, which have greater multiplier effects, must be implemented speedily to further spur domestic economic activities.

Pehin Sri Abdul Taib says the development of infrastructure in SCORE area must be implemented timely as scheduled. This is critical as the development of the high impact corridor will stimulate further the economic growth for the State for the next twenty years. For example, the development of good infrastructure and competitive energy supplies is essential in order to attract more Foreign Direct Investment (FDI) particularly those relating to the development of energy-intensive industries to the State.  

Mukah

He believes the energy-intensive and downstream processing industries, in the long run, will be able to attract local professionals and highly skilled workers now working overseas to come back as the industries will be able to match their high income.

The proposed budget for 2012, which was tabled last Monday, 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 State must spend within its means to ensure it has sufficient financial reserves to meet future challenges. More importantly, the State must continue with a balanced or surplus budget policy to ensure that its financial position remains strong and sustainable in the long run.

The State Budget for 2012 is formulated consistent with the thrusts of the 2012 National Budget.  The budget, like its predecessor for 2011, will be a development biased budget. About 70% of the total allocation will be for development purposes while 30% for operating expenditure.

However, it will also facilitate the role of the private sector as the new engine of growth.  Erstwhile the burden of the development has fallen heavily on the public sector. Therefore, it has become increasingly crucial for the private sector to get actively engaged and involved in stimulating and spearheading investment for development of the State economy.

Pehin Sri Abdul Taib says it is imperative for Sarawak, as a developing state, to continue to have pro-development budget but with an adequate level of expenditure required to stimulate a desirable level of economic activities and growth during the year.  

Miri

He says the proposed budget continue to give special focus to further enhance the efficiency and effectiveness of the State's financial management as well as the delivery system. For example, it will continue with the strategy of keeping the operating expenditure under stringent control. There is a need for growth to be driven by productivity and efficiency. It is imperative that concerted efforts are made to optimize the use of available resources and reduce wastages.

He says the world economic growth has fallen sharply as the handover from public to private demand in the U.S. economy stalled and the euro area continued to encounter major financial turbulence. The International Monetary Fund (IMF) in its World Economic Outlook Report, released in September 2011, projected the world economic growth to moderate from 5.1% in 2010 to about 4.0% in 2011.

He says the slow progress by key advanced economies in eliminating sovereign and financial sector imbalances to facilitate a shift from public to private demand has limited the global economic growth.  For example, deteriorating sentiment and speculation on the Euro-zone monetary future continue to unsettle markets. At the same time, the Euro sovereign debt crisis and the U.S deficit problem that led to the downgrading of their credit rating are posing significant recessionary pressures on global economic growth.

He says the global economic recovery in 2011 has been further impeded by unexpected shocks, including supply disruptions arising from earthquake and tsunami in Japan, the surge in oil prices, and political unrest in the Middle East and North African regions.

The global economic prospect is expected to be more challenging in 2012. The IMF 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%.

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