Kota Kinabalu: The Sabah Development Corridor (SDC) has had a generally positive impact on the State's investment climate, economy and income growth, employment opportunities and socio-economic well-being following the first phase of implementation from 2008 to 2010.Sabah Economic Development and Investment Authority (Sedia) in its annual report and SDC performance said it had been transparent, uphold a high standard of corporate governance, and complied with the established policies and procedures without taking any short cut.
It said that often, however, there have been much confusion, half-truths and incorrect information going around about the progress of SDC, especially if the sources or authors remain unanimous.
It, therefore, put the record straight on the performance of SDC, especially with the completion of the First Phase.
A key measure of success for the First Phase was in ensuring that all flagship SDC projects such as POIC Lahad Datu, POIC Sandakan, Sandakan Education Hub, Keningau Integrated Livestock Centre, Sabah Agro-Industrial Precinct, Agropolitan Projects and major SDC infrastructure projects had commenced.
It said all the SDC projects worth RM1.27 billion from the allocation given for SDC projects during the First Phase had been tendered out and awarded to Sabah-based contractors by Sept 30 last year.
They were awarded through open tender, reviewed and approved by the Sedia Tender Board in accordance with the Treasury Instructions of the Ministry of Finance.
"The tender process had been carried out in a transparent manner through publications in major newspapers," it said.
It said about 32,900 new jobs were created in 2008 following the launching of SDC; and more than 40,000 new jobs in 2009.
In terms of unemployment, it is expecting the unemployment rate at between 4.9 per cent and 5.5 per cent annually during the First Phase of SDC.
Sabah's unemployment rate stood at 5.5 per cent, 4.9 per cent and 5.5 per cent for 2007, 2008 and 2009 respectively. The full year statistics for 2010 has not been released yet.
It said in terms of job opportunities, Sabah has fared very well following the launching of SDC.
Given the robust economic growth expected for the 2010-2011 period, the unemployment rate was estimated to be within the range of 4.9 per cent to 5.5 per cent, which is very respectable given the relatively higher unemployment rate in the Advanced Economies as discussed earlier.
As for the socio-economic performance, Sabah's mean gross monthly household income had improved to RM3,102 (in 2009) from RM2,395 in 2004.
The average growth rate of income was recorded at 5.3 per cent over the period from 2004 to 2009.
The poverty incidence declined from 24.2 per cent in 2004 to 19.7 per cent in 2009, and hardcore poverty almost eliminated by the end of the First Phase in 2010.
Total investment from private sector and Government-Linked Companies during the First Phase was set at approximately RM11.3 billion.
SDC managed to secure a recorded RM30.06 billion in investments during the First Phase, whereby RM11.95 billion was realised.
This figure surpassed the target, which was set at RM11.3 billion.
New business and investment opportunities have also been generated arising from the implementation of the various SDC projects as discussed earlier.
The resulting vibrant investment climate has in no small measure boosted further investors confidence and encouraged substantial investment mobilised in Sabah.
Sedia has been receiving enquiries and visitors from foreign investors and embassy officials regarding investment opportunities in SDC.
SEDIA is now in the midst of negotiation with potential investors from Brunei, Middle Eastern Countries, the United States, the United Kingdom, Australia, China, India, South Korea and Japan.
The State's economy had proven to be quite robust and resilient since the launching of the SDC on Jan 29, 2008.
At the height of the recent global economic downturn, the growth of the Advanced Economies declined to 0.2 per cent and -3.2 per cent in 2008 and 2009 respectively, while Malaysia recorded 4.7 per cent and -1.7 per cent in the same years.
Sabah on the other hand registered 7.7 per cent in 2008 and managed to remain positive at 3.3 per cent in 2009.
It is pertinent to note that prior to the launching of SDC, while Malaysia enjoyed robust 6.5 per cent GDP growth in 2007, Sabah managed to secure only 4.2 per cent in the same year.
"We are expecting the state's economy to ride over the global economic rebound in 2010 and strengthen further in 2011 driven by government spending, buoyant commodity prices as well as new investments, with annual GDP growth expected to average at more than 7 per cent during the period.
"Under the SDC Blueprint, the average annual economic growth during the plan period was targeted at between 7 per cent-8 per cent.
The 2008 and 2009 figures have indicated that we are on track to achieve our target for the First Phase of SDC".
Sedia said there could be no question that crucial to the success of the SDC is in having Sedia, the implementing agency, established and achieved full operational status.
In this regard, Sedia affirmed that it has been fully operational by October 2009.
It is a fact that Sedia was established and took the full responsibility to move SDC in 2009, at the height of the global economic downturn, a time when the world economy was in a tailspin and registering its most severe contraction since the Great Depression in the 1920s.
It had indeed been most challenging for Sedia. The fact that Sedia had by and large, been able to deliver and achieve its set objectives by the end of the First Phase of SDC indeed is a testimony to the commitment, dedication, integrity, capability and competence of Sedia staff at all levels.
And above all, what is most significant is that the Auditor General, as stated in the SEDIA 2009 Annual Report has given a clean bill of health to Sedia's financial management performance, and agreed to certify Sedia Audited Account for 2009.
Recently, there had been much debates, discussions and interests from various stakeholders regarding the performance of SDC and the role of Sedia, not only from among policy makers, government officers, corporate leaders, foreign diplomats and business delegations, but also NGOs, intellectuals and the 'rakyat' as a whole.
It goes without saying that Sedia, as the One-Stop Authority driving SDC owe an explanation to the 'rakyat' in particular, more so in view of the fact that, roadshows explaining the concept and programmes of SDC have been organised throughout the State following the launching of SDC on Jan 29, 2008.
"For one, it gives us in Sedia as the One-Stop Authority co-ordinating the expeditious implementation of all SDC projects, another avenue and an opportunity to disseminate correct information concerning the progress and development of SDC as well as engaging directly with the public."
As a matter of fact, Sedia welcome any inquiries or engagements concerning the progress of SDC, investment opportunities, business and employment opportunities, policies and procedures and other related matters.
"In this regard, SEDIA have been participating in roadshows, exhibitions, dialogues and conferences in order to engage directly with stakeholders as well as disseminating correct information concerning the SDC progress, investment prospects, employment opportunities and related policies, incentives and procedures.
The SDC is not only about economic prosperity of course; we also aspire to have people living together in harmony regardless of race, language or religion.
A key measure is for it to reach first or second on the liveability index in the home market and Top 5 in the region.
