Sabahans must prioritise their interests
Published on: Sunday, July 14, 2019
By: Datuk John Lo
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Fitch has downgraded Malaysian Ringgit to 4.25 to 1 USD on 27 June 2019. https://www.malaymail.com/ news/money/2019/06/27/fitch-solutions-sees-ringgit-falling-to-4.25-versus-dollar-in-2020/1765975_
As very minimal proceeds of Sabah’s most important exports of petroleum and oil palm actually come to Sabah and we import most of our requirements, this RM de-facto devaluation will drive inflation up and further aggravate our cost of living. Sabah already has one of the highest taking into consideration of our low GDP per capita.
Those in the lower/fixed income group will be affected more severely. We need to look for solutions and policies that can alleviate this high cost of living that will further impact our lives and cushion the impending spiral of prices.
Announcement by Malaysia Statistic Department on 27 June 2019 that the 2018 Net FDI inflow into Malaysia has been reduced. https://www.thestar.com.my/business/ business-news/2019/06/27/malaysia-posts-net-fdi-inflows-of-rm32pt6b-in-2018/
More significantly, Sabahans must take notice that the total inflow of FDI was RM631.2 billion in 2018, which by any standard is very substantial. The question we should all ask, HOW MUCH OF THIS FDI AMOUNT HAS COME TO SABAH?
I am certain it is negligible. The next question Sabahans must ask is – why is this so as Sabah is the largest producer of oil and soon, gas, largest planted acreage of palm oil. Sabah oil and gas, apart from 1 urea project in SOGIP, are being siphoned off with absolutely minimal downstream benefits for Sabahans. Johore and Malacca don’t produce a single drop of oil but are the biggest beneficiaries in down-stream.
Also true in palm oil. Sabah’s down-stream is almost non-existent except for technically backward CPO mills which are great polluters and generate little value add. Tun M’s recent investment promotion speech on high tech in UK on 17 June 2019, has also nothing for Sabah.
If the federal government cannot attract investment for our oil/gas and oil palm for which we have comparative advantages, how can it ever help us in other investments like manufacturing and high-tech industries? So much lip service but where is the result? Why is KKIP still hardly occupied after 30 years.
Going forward, the biggest challenge for Sabah political leaders is to address the issue of lack of FDI for Sabah and lack of attention by federal leaders in this regard. These must be addressed or Sabahans will forever remain poor and downtrodden.
Sabah has been exploited for too long. This must be addressed with greatest urgency.
Following 2 items should be read in same context. 121 infrastructure projects approved for implementation by federal government after cost reduction. https://www.nst.com.my/news/nation/ 2019/03/474751/121-infrastructure-projects-continue-after-cost-reduction-rm80599-million
Sabahans may recall that Azmin Ali has cancelled projects worth RM5.7b on 23 December 2018 for Sabah. Sabahans must ask the federal government how many of the 121 projects that it now has funds to implement will be in Sabah. Will the projects for Sabah that Azmin Ali has cancelled be revived and implemented?
CM Shafie has asked for share of Federal Revenue to develop Sabah. https://www.malaysiachronicle.com/ ?p=166727
Reading in between the lines of Shafie’s statement, I got the impression that negotiations for our 40pc share of revenue and 20pc oil royalty has not progressed to his satisfaction. Maybe it is languishing in limbo while funds are being diverted to projects in W Malaysia like highway buy-outs. It is good that Shafie has brought out this issue.
The former payment is a constitutional obligation and the latter is a manifesto promise. Federal leaders seem to have pushed both into oblivion. We must never allow federal government leaders to forget them, especially now the federal government wants to undertake all of sorts of projects in W Malaysia.
I have written many times that Sabahan political leaders must unite to fight for our equitable share for economic development funds and FDIs. Failure to do so is the greatest disservice to Sabah.
Once again, I say we must unite and fight for our rights to secure equitable economic development funds especially from revenue derived from our natural resources like Shafie has said. If we don’t, Sabah will continue to be ignored. Reason is simple. The PH coalition in W Malaysia have so far failed to put their act together in politics as well as economics even though they have accomplished many important improvements. Politically, PH lacks sufficient co-ordination and cohesion to put its act together.
More glaring is the lack of an economic vision/model. Sometimes, it does not know whether it is coming or going. Little initiatives. Too many ministers are over dependent on Tun M for even mundane things and small policy matters. Their inaptness and lack of initiatives are putting Tun M under a lot of stress and divert his attention from national rescue mission. As examples: -
[a] Tun M wants science and maths to be taught in English. His decision is exactly what many Malaysian parents are dying for their children to have. To date, nothing has been done after more than 1 year after GE14.
[b] PH government has not been able to produce its own new economic model. Only Tun M has announced “Shared Prosperity 2030” with little details.
[c] The minister of human resource has been forced to backdown after only 1 day from his policy of importation of African labour because Tun M has said no publicly. Why can’t this be agreed and settled first before the minister’s announcement? Many a time the PH government ministers make themselves look amateurish.
For years, Sabahan political leaders have failed to look after or protect Sabah’s economic rights in the Malaysian Federation. The federal government had all but taken Sabah for granted. Ex-PM Najib gave us some attention and finance only when his own political fate was in imminent danger before GE14.
The “unwanted adopted Sabah child” trend by federal government leaders has continued from previous to present government and is very real. As I see it now, there is little difference in the attitude of the present group of Federal politicians towards Sabah. At the same time, few Sabahan leaders are devoting time and attention to details of economic issues that are truly important for Sabah.
Time for Sabahan leaders to think and act as Sabahans, must unite as one, which I don’t see happening. In addition to those I have listed above, the followings are also critical: -
[a] Vital communication link like WIFI which has largely remained poor quality, unreliable and slow. The bad WIFI is a very serious setback and costly for Sabah’s private sector. It is impossible for Sabah to attract high tech investment and top end tourists. Federal government will introduce 5G soon. When will we get to use it?
[b] Cabotage policy has remained with no sight of its curtailment or abolition at all.
[c] Many states have free trade zones. Why Sabah has not been given one? Do we need to fight or beg for it? The federal government should give Sabah at least 2 free trade zones, one in the west coast and one in east coast.
[d] Power, energy, which are plentiful in Sabah, must be made available and reasonable cost, to all Sabahans to drive our industries and business.
[e] How will federal government close the vast real GDP per capita gap between Sabah and W Malaysia? After deducting all the revenue from petroleum and oil palm, Sabah’s GDP per capita is very small.
[f] Of utmost urgency, how will Sabah leaders unite and position our state in the 12 Malaysia Economic Plan preparation for which is underway now, to be launched in 2020?
Sarawakians are more daring and vociferous in fighting for their economic rights. Notwithstanding the Sarawak state government is in opposition, Sarawak will get more attention and money for its development than Sabah eventually.
Sarawakian leaders don’t allow themselves to be taken for granted.
While a lot of federal funds are being poured into economic projects in W Malaysia to improve their lives, many Sabahan politicians lack focus on solving Sabah’s economic issues. If they can prioritise in fighting for all these issues, Sabah can develop much faster.
Avoid petty and personal centric issues. All Sabah politicians should be in the same family, irrespective of political inclination, when it comes to Sabah’s interest. Our politicians must open their eyes, speak up and establish the right priorities for Sabah before federal leaders spend all the funds in W Malaysia, leaving crumbs for us. Don’t let them say to us again “INSUFFICIENT FUNDS”.
Sabah’s future generations will just coast along much like we have done for last several decades, experiencing no rapid progress, will continue to witness the depletion of our resources to be enjoyed by non-Sabahans, seeking economic opportunities outside Sabah and not coming back.
The only way to reverse this limbo situation is for present generation of Sabahans to begin NOW to think for ourselves, our economic interest and chart a new economic future by striding out in a new direction, stop being followers and begin to exert leadership in an assertive manner.
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