1.

Involvement of Chambers in Planning for Sabah Economic Development Corridor

Since a few years ago, representatives of the various chambers of commerce in Sabah has not been invited to take part in the meetings of the State Economic Action Committee, and were hence not informed of the committee’s various efforts in charting the state’s economic development.

More recently, it was learnt that some chambers of commerce were not invited to the various planning meetings for the upcoming Sabah Economic Development Corridor.

We are also concerned about the level of local participation in the upcoming Sabah Economic Development Corridor, which could be of tremendous help in uplifting the economic situation of the local population.

The state government is urged to include the representatives of the various chambers in the meetings of the State Economic Action Committee as well as the various planning meetings for the upcoming Sabah Economic Development Corridor, which should meet regularly and be provided with timely and relevant economic data, so as to enable it to play a more proactive role in the state’s economic development, including the upcoming Sabah Economic Development Corridor.

We also urge that there should be at least forty percent (40%) local participation in equity, technical and occupational involvements in the projects of the upcoming Sabah Economic Development Corridor.

2.

Tourism

There seems to be confusion as to precise tourism data, including breakdown of origins of tourists and numbers of hotel rooms and other tourism facilities needed to sustain the tourism development in the state.

The state government should work closely with the various tour agencies, airlines, hotels and their associations to periodically survey and publish the precise numbers of touristic facilities needed to sustain the state’s tourism development.

In addition to domestic tourists from elsewhere in Malaysia, more emphasis should be placed at attracting foreign tourists to Sabah.

The touristic attractions in various “zones” or districts of Sabah could be packaged with touristic facilities such as hotels and restaurants and promoted overseas.

The state government should work closely with the federal government and especially the federal ministries of tourism and transport to achieve a more-or-less “open air” policy for direct flights to and from Sabah for especially East Asian, South Asian and Middle Eastern routes.

3.

Cement

Currently, cement industry in Sabah is practically a monopoly, but the monopoly is not able to supply sufficient cement to fulfill the needs of the booming construction industry.

It is learnt that starting next year, the cement industry in West Malaysia would not be monopolized anymore.

The state government is urged to work closely with all parties involved in the construction industry in order to undertake periodic surveys to ascertain the volume of cement needed in the state.

The state government is urged to proactively discourage monopoly practice in cement industry, or at least to instruct the monopoly to import sufficient cement or clinkers from overseas to be supplied to the construction industry at reasonable prices.

It is also urged that the proposed East Coast cement plant should be situated in Lahad Datu instead of Sandakan due to convenient access by both Sandakan and Tawau.

In addition, the proposed clinker plant near Sepanggar Port, an area which is already congested, should instead be situated at Usuakan Bay, near the former copper mine jetty, with easy access to importation of raw materials.

An alternative solution to the cement shortage problem would be for the state government to assist the various chambers, which would form a joint-venture company, in obtaining a license to import cement.

4.

Food and Rice

It was reliably learnt that food items worth approximately RM 3 million were being imported daily to fulfill the needs of the local population. This led not only to the draining of foreign exchange, but also to the loss of self-sustainability in food supply in a state where agriculture should be a sustainable economic activity.

Rice is yet another monopoly and is imported at approximately RM1000 per 1000kg, or RM1 per kg, but is sold at RM1.80 per kg even for the lowest grade, thus generating a high profit margin which is harmful to the interest of the consumers.

It is learnt that Sabah is issued with two rice trans-shipment licenses, with some of the rice supposed to be trans-shipped actually being sold in the state.

The state government is urged to adopt measure to further promote commercial farming of food items, in addition to traditional subsistence farming.

The state government is urged to work closely with the federal ministries concerned so as to either subsidize the price of rice in Sabah or to abolish the monopoly, so that competitive forces would work to bring down the rice price.

An alternative solution would be for the state government to assist the various chambers, which would form a joint-venture company, in obtaining a license to import rice.

5.

Reforestation

It is reliably learnt that while large sum has been allocated to SAFODA for reforestation purposes, the harvested timber was mainly exported without further processing, thus not benefiting the development of downstream timber industry in the state.

It is also learnt that most forest management units (FMU) are not fulfilling their objectives.

It is urged that the soft wood harvested as a result of reforestation should not be exported directly, but should be utilized to develop downstream timber industry in the state, so as to increase local employment and upgrade local expertise.

The state government is urged to reconsider its FMU policy, for example in not over-depending on one type of trees.

6.

JPPS & Development Projects

It is learnt that JPPS was set up at the time when Sabah was ruled by the opposition in order to channel federal project. Now, however, JPPS caused confusion between its role in development with that of the state JKR, since they are often overlapping in functions.

In addition, there are apparently insufficient F-Class license PKK contractors to undertake small projects, to the extent that sometimes there are more projects than available contractors.

The decision-making process for major federal projects should at least involve the state JKR. The state government should also urge JPPS to consult with local authorities especially on road maintenance for JPPS-built infrastructures.

At the least, more federal development projects should be awarded to genuine Sabahan companies or at least involve Sabahan contributions, such as allowing PUKONSA contractors to engage in JPPS projects in Sabah.

The state government is urged to work with the federal agencies concerned to reopen the applications for F-Class license contractors. At the least, it is suggested that whenever there are insufficient F-Class license contractors to undertake projects, D- and E-Class license contractors be allowed to undertake such projects.

7.

Health

According to official statistics, out of 3 million population in Sabah, there are only about 1300 doctors, including 300 private ones. The doctor/patient ratio is thus about 1:3000, which is low when compared to prevailing world standard of 1:1000.

Hospitals in Sabah were often not built at locations where they were most needed, but at locations where there were few patients.

The remunerations of health professionals, including doctors and nurses, are low, and when combined with hardship postings, cause many of them to immigrate to more lucrative countries.

The state government is urged to work closely with the federal ministries of health and higher education to train more Sabahan doctors and nurses so as to fulfill the state’s health needs.

Proper surveys should be carried out as to the actual health needs of the local populations, before hospitals and clinics are built at certain locations, so that they could be located where they are most needed, and the scarce health and financial resources could be conserved or most efficiently deployed.

We support the position of the health workers’ unions urging the public service commission to revise the pay scale of or offer other forms of incentives to health professionals, especially those in hardship postings, so as to retain their much needed service for the state.

8.

Education

It appears from official statistics that there are sufficient teachers in Sabah, but complaints are still often heard of insufficient teachers for certain subjects.

Many of our rural schools are still not equipped with tap water and electricity. As such, the school computer projects may be called a failure at least in rural Sabah, as the computers were simply not being able to operate without electricity.

It is also learnt that there are schools with large capacity which were built at sparsely populated areas, such that much of the schools’ capacity were not being efficiently used.

It is also reliably learnt that the canteen operations, stationery and school maintenance were often first awarded to West Malaysian companies and only subcontracted to Sabahans. This causes concern on quality as profit margin of the “final hand” is understandably low.

The state government is urged to work closely with the federal ministry of education to ensure that there are sufficient teachers for all subjects taught, and not disproportionately high or low numbers of teachers for certain subjects.

The state government is again urged to work with the federal government to equip our rural schools with basic necessities such as water and electricity.

It is also urged that a careful survey of educational needs of a region should be undertaken before schools are built at various locations throughout the state, so that they could be situated where there are most pressing educational needs.

The school operations should be outsourced directly to genuine Sabahan companies so as to ensure high quality of service and goods provided for our students.

9.

Information Technology

It is learnt that penetration rate of information technology in Sabah remains low. However, the state budget allocation for the ministry of resource development and information technology is the lowest among all state ministries.

Besides, only a total of RM18.5 million was allocated in the state budget for human-resources training purpose, while a comparatively much large sum was allocated in the Sarawak state budget for similar purpose.

The Sabah government website is also not updated frequently enough, nor is it user-friendly.

The state government is urged to increase its allocation to the state resource development and information technology ministry and to devise innovative proposals for developing the state’s information technology infrastructure and for training adequate human resources for the state’s economic development.

The state government unit concerned is urged to more frequently update the state government website and to make it more user-friendly.

10.

Industrialization

Sabah is actively pursuing an industrialization policy. However, the state budget allocation for the ministry of industrial development is also low at RM4.6 million.

The state government is urged to increase its allocation to the state ministry of industrial development so as to enable it to more effectively carry out the many industrialization projects crucial to the state’s economic development.

11.

Ports, Rails and Air Freights

It is learnt that the port facilities in Sabah, even the relocated Sepangar Port, are either in need of upgrading or not adequate, compared to those in Port Klang, such that container ships prefer the Bintulu Port, which implies additional costs for land transport to and from Sabah.

It is also learnt that typical 20’ and 40’ containers are charged more than RM5000 and RM6000, respectively, for transport from Kuala Lumpur to Kota Kinabalu.

A similar situation is with air freights, which often had to transit at Kuala Lumpur before being flown into or out of Kota Kinabalu.

The state railway, at its current operation model, is a losing concern according to official statistics.

The state government is urged to consult with the various parties involved in the logistics industries and to work with the relevant federal agencies to upgrade the port facilities in Sabah.

The state government is also urged to consult with the federal government on the feasibility of designating Kota Kinabalu as an international port capable of handling 150,000-tonne ships, and especially as a potential container centre, taking advantage of Kota Kinabalu’s central position in Southeast Asia.

The state government should similarly urge the federal government to encourage more direct air freight to and from Sabah to enable more goods to be imported and exported, especially with respect to APEC countries.

The railways should be extended to East Coast so that they could be utilized for transporting oil palms and other products which currently have to be transported by lorries over difficult terrain and at great cost.

12.

Land

It is reliably learnt that many lands given by the government to landless farmers were simply resold to and planted with oil palms by plantation companies.

The government should pre-survey, charge only token premiums, and solve all administrative procedures with respect to the lands given to landless farmers. It is recommended that each of them be given 15 hectares of such lands, with conditions that such lands may be used only for subsistence farming, may not be resold, and can only be rented for subsistence farming or transfer to next-of-kins.

The state government is also urged to resolve the issue concerning agricultural activities carried out in forest reserves equitably and speedily.

13.

Foreign Labor

It is reliably learnt that there are more than 1.5 million foreign laborers in Sabah, mostly working in the plantation industry. It is also learnt that immigration procedures for such foreign labors could only be done at certain intervals, which is not the case in West Malaysia. Only panel doctors may perform the required medical checks on these foreign laborers. The heavy levies imposed upon the employers add to the cost of production, and could create social problems in the long run, as the laborers may be laid off.

The state government is urged to work closely with the federal ministries of human resources, plantation industries and internal security, and to consult all the private-sectors concerned, in order to devise a comprehensive foreign labour policy, such that immigration procedures could be carried out more frequently or as needs arise, and levies could be lowered or subsidized.

While we appreciate that the panel system for doctors performing medical checks is now handled by a state organization, we urge that it be further opened up for private sector participation, and the prices for such checks should be reduced.

14.

Public Safety

We have received complaints that general public is quite alarmed with their personal safety, and is quite concerned with the widespread recreational clubs with gaming facilities.

These observations are especially rampant in Penampang, which is close to the state capital.

The state government is urged to work closely with the relevant federal authorities in beefing up police presence especially in neighborhoods identified to be high-crime areas. More Rela units should also be formed in the most high-crime areas. More “healthy” social activities should also be held in conjunction with the various NGOs in the state.

The state government is also urged to reduce the number of licenses to these recreational establishments.

15.

Elected Representatives

There are grievances about the poor performance of elected representatives in the state. This causes discontent among the general public, resulting in their becoming non-supportive of government policies. And such unsatisfactory quality among the elected representatives also partially led to formulation of poor policies.

The state ruling coalition is urged to put up only reasonably qualified candidates to stand in the next general elections. These candidates should be persons of integrity and enjoy genuine grassroot support, and are willing to speak out on issues which closely affect the lives of the people. The quality of their performance should be closely monitored. These are crucial steps for restoring the confidence of the general public in the government.

16.

State Honors

Traditionally, the state honors are essentially awarded to mostly politically linked persons, with only few NGO personalities being conferred. This overly politicized situation may dampen the enthusiasm of those volunteers and activists who are not politically inclined, but who nevertheless render great service to the state and to the general public.

While we appreciate that in the most recent round of awarding state honors, there was an in creasing number of genuine NGO personalities as well as senior officials of the chambers being awarded, we urge that more state honors should be continued to be conferred upon such persons, which may be divided into different categories, such as environment, welfare, etc.