Poor infra the biggest obstacle to Sabah’s growth

Published on: Sunday, August 08, 2021

By: Datuk John Lo

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I HAVE the privilege of meeting Datuk Bung Moktar recently. Not surprisingly, our conversation should turn to Sabah’s run-down and/or lack of infrastructures. What surprised me were [a] his in-depth knowledge of Sabah’s serious problems in infrastructures, [b] his heightened awareness/concern of their acute/adverse economic impacts on Sabah’s economy and [c] his sense of urgency in seeking solutions. [d] Most comforting is Bung Moktar’s view that the solutions to our perennial infrastructural headaches are not to be found in politics, rather in leadership, management, finance and implementation strategy. His view is refreshing. The sort of politics in Sabah in the past has not been conducive as is evidenced by the 30 years plus of very poor and inadequate infrastructures.

What Infrastructures That Need Fixing in Sabah?

Admittedly, there have been some improvements in infrastructure but the situation is far from satisfactory in quality and quantity.

[a] Water>>> Major problems are [i] supply which will be inadequate in a matter of just a few years. Sufficient supply will be a “make or break” in our promotion of investments in manufacturing, hotels/resorts, etc. These are substantial water consumers. [ii] Irreconcilable that Sabah, despite of having the most favourable rainfall pattern, should have insufficient water supply. [iii] Pipes are ancient, leakages are extensive, replacement will cost billions. [iv] Inability to solve political complications over dam constructions.

Recommendations>>> [i] Look at the Chinese model of resettlements for those who will be affected by the construction of the dams. Any resettlement will be complicated. The minimum package for the affected should be a much more attractive deal than what they have now either in land or in lieu of. They should be also offered opportunities to earn better incomes. China has done it.

The opportunity cost in loss of investments, jobs and other economic benefits of having an adequate supply of water will be far greater than the improved compensations to be paid by the Sabah government.

Water is completely under Sabah’s jurisdiction. We must resolve the water woes and avoid the impending disaster asap.

[b] Sewerage>>> Seldom talked about cos we don’t see it. This gigantic infrastructure issue is lurking underground all the time. To his credit, Bung Moktar is keenly aware of this stinking time bomb. Not if. Only when the sewerage will erupt upon us, which can happen sooner rather than later, diseases may spread. We will have a major health hazard in our hands. Sewerage is the proverbial “swept under carpet” item, no previous leader has bothered to pay attention. It has been given token budgets on and off, little or no upgrade or update for years.

Recommendations>>> To upgrade and update sewerage in KK and other major towns will be a massive task physical and financially. This must be looked into immediately. Consideration should be given to future needs, especially in KK where there is rapid growth in population.

[c] Electricity>>>I must say the incidents of black outs or brown outs have reduced a lot in KK, not as much in the East Coast. Having said that, an expansion of electricity supply should be undertaken imperatively soonest possible. Token increase of 2pc or 3pc is grossly inadequate to cater for expected increase post Covid-19 especially in hotels/resorts development, new industry like mining which may require about 100MV, ITP downstream industrialization. Mining power requirement alone will be about 10pc of Sabah’s present total capacity. The first thing investors look for are power rate and reliability, both of which Sabah scores poorly.

Recommendations>>>Sabah can’t construct a Bakun Dam for lack of water-heads. Construction of many planned mini- hydro plants including the one at Upper Padas, should be expedited. Most importantly the construction of Southern Link should start soonest possible to improve power supply in the East Coast.

The agreement to purchase of power from Sarawak is definitely an excellent move.

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Needless to say, improvement in electricity is long over due and will cost billions.

[d] Roads/Highways, Air and Sea Connectivity, Internet>>> Due to space constraints, suffice for me to mention these critical infrastructure items for our economic development need serious attention. Briefly, having been independent for such a long time, our roads/highways in term of quality and coverage, are nothing to shout about.

Sabah needs a new airport for future expansion and to stay competitive in tourism. Waiting for federal fund for a new airport is a lost cause. Sabah should immediately commence to look for alternative finance.

Much potential is waiting to be exploited in sea connectivity because of Sabah’s geographical position in the South China Sea where trillions of $$$ of trade are by passing us.

In internet, I have 3 words, SPEED, RELIBILITY, COVERAGE. Tardy implementation of 5G will be obsoleted by 6G or 7G. China is already look at 6G. Rural coverage is grossly lacking.

Infrastructures Are Critical for Sabah’s Economic Development.

Bung Moktar is absolutely right. Sabah must confront head on to sort out the problems in infrastructures for our economic development, for our future and our future generations. Delays will incur exponential more expenses and will further stymie Sabah’s economy.

Sorting out years of neglect in Sabah’s infrastructures is the toughest job including finding the billions and billions to rectify and reconstruct them, innovative and creative financing needs to be found especially PFI from domestic and foreign sources.

Equitable Federal Budget Allocations For Sabah’s Infrastructural Development.

The federal government has short-changed Sabah in budget allocations for too long. Present criteria must change to take into considerations>>>[a] Sabah is a partner in Malaysia. Political lip service by PMs and Finance Minsters is insufficient. We want this to be reflected in the budget allocation. [b] Sabah needs more allocation because we are as big as whole of W Malaysia. Datuk Bung Moktar’s parliamentary constituency is bigger than some states in W Malaysia. [c] The federal budget should reflect Sabah’s total contributions to national GDP including revenues from oil/gas, oil palm from which Sabah is getting almost zilch benefits.

The fight for equitable federal budget for Sabah is the responsibility of all Sabahan political leaders including opposition ones. This fight is for only Hajiji, Bung Moktar only but all leaders who profess to uphold Sabahans’ interest in their breast. Any leader not pulling his weight behind this fight is anti-Sabahan.

Please stop all the petty politics that we read in the newspapers daily. Get on with the struggle for our equitable share of federal money for our infrastructure development.