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Creating Sabah’s first G to G relationship
Published on: Sunday, August 25, 2024
By: Datuk John Lo
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Phoong in dialogue with Jilin government leaders.
Over the last 30 years, many feeble attempts have been made and nothing meaningful has come out of them in the establishment of “Sister Cities” agreements by DBKK and some cities in Australia, Japan and even one from USA. Oakland if I remember correctly. Never at the G-to-G level.
WHY DID PHOONG FOCUS ON JILIN PROVINCE?
He sees Jilin Province is a perfect match for Sabah for the following reasons. Jilin is one of China’s most important “food sufficiency” or “food basket” provinces, very strong in agriculture research and food-production in addition to industrial tree plantation. It is also China’s pioneer in industrialization, the first province to venture into manufacturing after the revolution.
Jilin Province’s FAW built China’s first car in 1958. FAW has grown into a major vehicle manufacturer producing cars and lorries in Jilin and its branches throughout China. Most worthy noting is that FAW has manufactured the first official car for Chairman Mao and has since been producing all the Presidential Cars under the flagship name of Hongqi [Red Flag] – China’s Roll Royce. FAW will assemble light trucks in KK for domestic and export markets.
Sabah can benefit very substantially from the G-to-G relationship that Phoong has established for Sabah with Jilin because Sabah needs food sufficiency urgently and is now embarking on a new journey of industrialization.
Phoong’s economic reasons for selecting Jilin are:
[a] Jilin and three other neighbouring provinces Liaoning, Heilongjiang, Inner Mongolia are totally “green field” markets for Sabah. Jilin can be Sabah’s entry to the other 3 provinces as the Jilin Government has offered to facilitate this for Sabah.
[b] Jilin has 28 million people and combined with the 3 other neighbouring provinces; total population is 127 million.
[c] Jilin and other neighbouring provinces enjoy a relative high GDP per capita.
[d] Jilin’s GDP is USD178 billion. The 4 provinces combined GDP is more than USD1 trillion. Sabah’s GDP is about USD20 billion.
[e] Beijing Government has given the green light for the establishment of Jilin/Sabah G to G relationship.
[f] The 5 MOUs are very significant in the context G to G relationship because the Chinese Economy is being very much driven by the Chinese Government.
[g] Logistically very important is that DP World [world’s 2nd largest port operator], which has a joint management agreement with Suria Capital, is jointly developing a port with Jilin Province in nearby Russian territory.
This will pave the way for Sepangar Port to become a logistic hub and open up China’s North East and Eastern Russia markets for Sabah.
Hence, Phoong’s initiative will be very exciting in many ways for Sabah’s future.
5 MOUs SIGNED AND THEIR ECONOMIC SIGNIFICANCE FOR SABAH.
Phoong and his SUT Datuk Thomas Lozigin have toiled tirelessly from ground zero on the G-to-G relationship to the completion of these 5 MOUs for 2 years. Their labour will bring in widespread and long-term economic benefits for Sabah.
They have very carefully secured the participation Desa Group [GLC] and 4 Sabah based private sector parties covering:
[a] Light truck manufacturing with FAW. KMA has failed. With FAW, success will be assured.
[b] JV in seed productions and jaggung production will help Sabah to attain food sufficiency and food security expeditiously. Many farmers and related downstream players will benefit.
The jaggung production by Desa’s JV will meet the demand for jaggung in animal feeds which is being 100% imported by Sabah from Argentina now. It will give Sabah the badly needed food security for meat production and will contain/reduce inflation.
Jilin has offered and ready to assist Sabah on padi. Sabah has yet to respond.
[c] Durian cultivation is expanding rapidly. Last count is 10 acres per day. There are more than 2,800 existing small durian farmers. These stakeholders will benefit from durian export and downstream stakeholders under the JV.
The small durian farmers will receive a boost in price, income and access to a much bigger market. This will require the government in upgrading their trees to Musang King and Black Thorn by mature grafting.
[d] Bird’s nest is very quickly becoming an industry. The 4 provinces are be an untapped market.
[e] Health food is huge for China. This will encourage the growth of high value crops.
These MOUs, when fully implemented, will produce thousands of new jobs, many of them for semi-professionals and full-fledged professionals, substantial business and downstream opportunities of all sort for Sabahans.
This G-TO-G relationship will add significant values to Hajiji’s Sabahans First Policy and econonomc restructure for Sabah.
G TO G RELATIONSHIP WITH JILIN & ECONOMIC LEADERSHIP.
For those who wants more details on the 5 MOUs signed during Phoong’s official visit to Jilin, they are readily available in the public domain. I like to give some reflections on economic leadership in the context of G-to-G relationship.
I have written on the vital urgency for Sabah to have economic leadership among our leaders, i.e. less politicking, focus on economic issues to make lives better for all Sabahans.
It has proven to be true. In all the official and post-official friendly discussions during dinners that Phoong had with the Chinese leaders, from the Deputy Provincial Governor down to the city majors, the focus was on economic matters. Not surprising, these Chinese leaders well conversant with Sabah.
Phoong was on par with all of them and conducted the dialogues extremely well. The Chinese leaders have been suitably impressed. His grasp of economic facts, figure and development of China, the region and Sabah have been excellent.
PHOONG IS HAJIJI’S RIGHT CHOICE.
Phoong has established a very cordial and friendly relationship with the Jilin Government leaders for Sabah. In addition to the meaningful substance of his discussion points, his excellent command of Chinese and his style of delivery have endeared him to them.
So much so that the Jilin Provincial Government has offered its agriculture research capacity/facilities to Phoong for Sabah. This is a rare gesture, not given lightly.
As further evidence of this cordial relationship, the Jilin Government has confirmed immediately to Phoong’s request that it would send a delegation to the Sabah/China Business Summit and Exhibition next November.
SABAH SHOULD ESTABLISH MORE G-TO-G RELATIONSHIPS WITH OTHER STATES AND PROVINCES.
This G-to-G achievement by Phoong for Sabah over the last 2 years is valuable and interesting experiences. It is the first of its kind. He and Lozigin have made an effective politician/civil servant formidable team, the like of which is seldom seen in Sabah. Datuk Thomas has broken down many inter departmental silos and assembled an effective collaboration with the private sector and chambers of commerce.
This working model can be a template for future G-to-G relationships.
PHOONG’S SUCCESS WILL LEAD TO OTHER COLLABORATIONS.
Firstly, this template can be used to establish G to G relationship with Singapore, Taiwan and HK governments. Also, other Chinese provinces.
Secondly, because of Phoong’s initiative, Sabah can immediately benefit from the collaboration with Jilin Provincial Government in the followings:
[a] Value-add on our commodities. Jilin has been able to multiply value to the tune of 10 times in its economy. Jilin does not sell any raw products/commodities. Sabah can collaborate with Jilin in this field as we have very little EVC.
[b] Cross border trade with Russia and N Korea is booming. This Sabah can do soonest in Sarondong/Kalimantan.
[c] Both Beijing and Jilin Governments have very robust development policies on trade and value-added activities.
[d] Jilin has a very proactive policy and an effective system on promoting and nurturing local and women entrepreneurs.
[e] Jilin has a very progressive and efficient management of industrial parks. The latest industrial park at the Russian/Korean border with China is progressive, land price is very competitive, excellent infrastructures like good roads, cheap power supply. They don’t rent their land to investors like KKIP. Investors can acquire land from the government on a 50-year lease.
[f] Last and most important, Jilin, like the whole of China, has a very effective and robust “economic value added” policy and eco-system, from the humble, common black fungus to minerals and manufacturing of electric vehicles and Petro-chemicals.
FOOD FOR THOUGHT: Sabah produces 5.5 million tons of CPO but has negligible EVC/ downstream. If Sabah wants to expand our GDP and implement Sabahans First Policy quickly, this CPO leakage must be plugged. With Hajiji’s investor friendly policies, billions of Chinese investments are waiting to come to Sabah to add value to our CPO. POIC Lahad Datu and POIC Sandakan will benefit tremendously! Sabah’s east coast can be economically vibrant.
The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express.
If you have something to share, write to us at: [email protected]
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