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Sabah’s economic clout is growing
Published on: Sunday, July 21, 2024
By: Datuk John Lo
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They were disunited and lacking in economic leadership. Sabah was overrun by non-Sabahans in the economy, investment coming in was a trickle, zero in some years, poverty was everywhere, brain drain and unemployment were wide-spread. Financial leakages were massive in every economic sector. Confidence was at the lowest ebb.
Though we are still not on top of the hill, we have reached at least a quarter of the climb, away from the stormy sea. Now we can see light in the tunnel clearly as billions of investments and some big-name investors have arrived.
Employment is increasing. In some cases, there are jobs chasing after suitably qualified Sabahans. Brain drain is being reversed with young Sabahan returnees setting up new businesses. Tourists have also returned in a big way. When Christina launches the MICE campaign, it will be the epic tourism development of Sabah.
KK is once again alive, vibrant and robust.
In short, economic confidence is returning. Sabah is firmly on the path recovery.
SABAHANS FIRST POLICY IN HAJIJI’S ECONOMIC TRANSFORMATION [private sector].
Hajiji’s economic transformation for Sabah is progressing well. The first step of Sabah’s arduous economic recovery journey has been made. We can’t afford to stop and look back. Forward march is the only option! We must not relax. We must build on what has already been achieved to date.
We must ensure that the progress of economic transformation by Hajiji will be translated to benefits for all Sabahans under his Sabahans First Policy.
[a] Stop being spectators, grab the opportunities.
Can Sabahans escape from the mental imprisonment of the 30 years old lethargy/disillusionment? Have Sabahans got the grit to grab the opportunities that are sprouting from Hajiji’s economic transformation?
God helps those who help themselves. Many people have done well in the worst scenario by being proactive, by looking out for their niches. There is always something to do. Now that billions of investments have come in and more will come, tourism is on a strong recovery, opportunities are aplenty.
SYBIL, SABAH PROFESSIONAL COUNCIL AND THE LADIES ARE ORGANIZING TO POSITION THEMSELVES TO BENEFIT FROM THE ECONOMIC TRANSFORMATION.
STILL WAITING TO SEE ACTION FROM: [i] businessmen rolling up their sleeves, contribute brain and brawn to expand Sabah’s economy. [ii] The Chambers of Commerce are very quiet. These 2 groups stand to gain the most from the economic recovery.
[b] Logistics will be big business.
Don’t be discouraged by the recent blip of increase in port charges by 2 shipping companies. Shahelmy will sort it out. Many ports are undergoing same problems. Look at the longer term. Sabah’s logistic will be big business. Just to mention a few developments: [i] DP World, which is the world 2nd largest port operator, has already signed with Suria Capital. [ii] Gibson of London will build new facilities at SOPIP. [iii] Watch out for POIC Lahad Datu. It has got FZ approval from Federal Ministry of Finance already in double quick time. It is going to be massive.
Yong Teck Lee and his team are putting things together. POIC Lahad Datu will be great, not only for Sabah’s East Coast. It will be a game changer for Sabah.
[c] Sabah’s Blue Economy.
Brain child of Hajiji. The blue economy can be as big, may be bigger than Sabah’s present land-based economy.
Even traditional shipping has so much downstream potentials that remains untapped. Sabah’s geopolitical position is increasingly important by virtue of us being nearest to the flash point in the South China Sea, all the oil and gas deposits in Spratly and beyond.
Most importantly, Sabah has the longest coastline [more than 1,000 KM long] with unlimited economic opportunities.
The Hajiji Government is formulating a strategic plan for the Blue Economy.
[d] Biomass Policy.
The Sabah Government is the pioneer for Biomass, being the first state government to introduce a law on Biomass. Sabah has about 1.7 million hectares or 4.4 million acres of oil palm. Imagine the potential of biomass that can be generated.
[e] Manufacturing in oil and gas and other products.
Tens of billions are being invested. Sabah’s share in oil/gas has increased exponentially. SOGIP is full. A dedicated industrial park for oil/gas in Kimanis is being planned.
A number of young Sabahans have found very lucrative employment. With Masidi fighting for a bigger share from Petronas, investment and business opportunities will grow by leaps and bounds.
SABAHANS FIRST POLICY IN HAJIJI’S ECONOMIC TRANSFORMATION [government sector].
Hajiji’s Sabahans First Policy can only be as good as its implementation by Ministers, Senior officials, Government institutions, Government Agencies, especially GLCs.
[a] First, acknowledgement must be given to many dedicated officials in the public sectors.
[b] Ministers’ performance should be assessed and judged by the public in the quality of their economic leadership and outputs in the context of the Sabahans First Policy.
[c] Sadly, the majority of GLCs are grossly underperforming. These should be compelled to stop being liabilities. Masidi is getting tough on them. Congrats to the few performing ones.
[d] Recent exposure of SDB’s RM5 Billion NPL by Masidi is an eye opener. I am confident that SDB’s Executive Chairman Lim Haw Kuang and his team will sort out the mess and to ensure it won’t happen again. What will be very beneficial for Sabah is for SDB to align its lending policy in tandem Hajiji’s SMJ economic transformation and Sabahans First Policy objectives.
[e] Poor Sabahans in the hardcore poverty group has suffered enough. As Sabah’s revenue improves, these Sabahans should be assisted to realise a higher standard of living.
[f] Service level to members of the public in many areas of government are bad, some very bad. Hajiji has expressed his frustration a number of times. Common to take months, sometimes years, in some cases, more than 10 years for things to get done.
Ways must be found to improve the service level to match those in UTC, change the mindsets and above all, promote good officers to position of responsibility. There are many good, hard working elite officers. They should be allowed to serve.
The poor service is the greatest obstacle that is preventing Sabahans to benefit from Hajiji’s economic transformation. The Napoleons, big and small, must go.
g] Senior officers responsible for promotion of Sabah’s economic transformation should be fighting for decent economic returns for Sabah. Sabah’s economic returns are very bad in [i].33 FMUs. These FMUs should have given huge returns. Instead, very minimal. Sabah could have gotten billions and countless jobs from ITP [Industrial tree]. [ii] 4.4 million acres of land planted with oil palm should be made to yield billions of downstream and jobs. [iii] GLCs with JV agreements with non-Sabahans have been stalled for years. Yet, on expiry of the JVs, this GLCs extend the JV agreements! All these JVs should be reviewed immediately.
All these non-fulfilled JVs are extremely costly and economically damaging to Sabah. [iv] Most worrying about GLCs are the many JV agreements which may have very substantial RPGT liabilities. These must receive immediate attention.
The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express.
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