Text of Speech by Chief Minister Tan Sri Adenan Satem
when winding up the debate in the State Assembly on April 29, 2015
"With further success expected of the SCORE agenda and hydropower developments, it is timely that commercial and industrial consumers also benefit from the government initiatives. With this in mind, effective from 1st June this year, I wish to announce that the electricity tariff for commercial and industrial tariffs will be reduced.
This reduction will benefit all the current 85,200 commercial and industrial businesses or customers. Out of this number, 50% or 46,000 commercial consumers will enjoy a reduction of about 15% to 50%. Another36% or 30,500 consumers will enjoy about 8% to 11% reduction. The balance 9,000 consumers will enjoy a reduction of average 4%."
Development Focus
State Economy
1. Economic
development is fundamental to the prosperity of any country. All these years,
the Government has put a lot of efforts to develop our economy to be where we
are today. In the case of Sarawak, our
economy has developed and expanded. As a result, we now have a strong economy
and is the third largest in the country after Selangor and Kuala Lumpur. The journey that we have taken over the years
has resulted in our economy having good credit rating that remains positive
with stable outlook from credible rating agencies.
2. We
have worked hard to transform our economy from agriculture based to an economy
which is based on manufacturing and services. This is clearly reflected whereby
in 2014, the manufacturing and services sectors had contributed significantly
at 64.0% to the State economy. These achievements were made possible due toour
far sighted development philosophy, policiesand development plans that we have
formulated and implemented all these years.
3. We are
determined to do more in order to accelerate our economic growth and
development to benefit the rakyat. The best option for us therefore is to
formulate our development strategy that will broaden our economic base by
introducing more high value added activities in all sectors of our economy.
4. Industrialisation
is the way forward for Sarawak. In this context, we will attract more high tech
industries to invest in the State. Meanwhile, for existing industries,there is
also a need for these industriesto deepen their industrial base by moving up
the value chain thus creating more value added activities. The government
primary objective in developing our economy is to ensure that we will continue
to create enough business and employment opportunities to the rakyat. The
industrialisation of the State and the creation of more value added activities
in all sectors of our economy will therefore help us to achieve this objective.
Datuk Amar Speaker,
Rural Economy
5. A good
and conducive business climate and investment environment is paramount for the
private sector to decide on their choice of investment location. Therefore, it
is only logical that when we first started to industrialise, most of the
industrial activities wereconcentrated in the urban areas withbetter
infrastructure and facilitiesneeded by the industries. We would like to see
these industries and businesses to develop and expandto benefit the State.
6. We
will continue to develop more industrial infrastructure in the urban and sub
urban areasto support greater industrial development in the future.
7. While
industrialisation is working well in the urban areas, we need to adopt
different strategies to develop the rural economy as these areas are still
lacking behind in basic infrastructure that are the prerequisites for business
activities.
8. The
right strategies need to be put in place to tap the huge economic potentials in
the rural areas. Among the huge
potentials in the rural areas yet to be fully tapped are in the fields of
agriculture, eco-tourism, forest plantation and aquaculture.
9. To
unlock these potentials, the State Government has completed a Socio-Economic
Master Plan thatwill chart out the development strategies and action plans to
be undertaken commencing the 11th Malaysia Plan.
10. In this
Master Plan, several growth nodes have been identified as the focus areas with
the government providing the necessary enablers and the private sector to
invest as the engine of growth. Despite the challenges, the government is
adamantin developing our rural economy as a large portion of our population are
residing in the rural areas and the rural folks also deserve a good quality of
life comparable to the urban areas.
11. A well
organised rural economy is important to support the development of Sarawak. In
the medium term, the rural areas will be the primary producers of agriculture
produce, livestock, aquaculture and many food items to meet our domestic
market. In the long run, we believe that large scale production through better
farm mechanisation, application of modern technology, improvement in the
productivity of farmers and wider marketing network will enableour rural
economy to be transformedas a major agriculture producer in this region to meet
global demand.
12. Rural
communities are expected to benefit from a transformed rural economy. However,
it is important for them to become active participants. In this respect, they
must get themselves organisedand be equipped with the right knowledge and
skills to become successful entrepreneurs especially in the areas of
eco-tourism, homestay and agriculture.
13. At the
same time, through more business and jobs creations by the private sector in
the rural areas, we should be able to see further reduction in the incidence of
poverty in the State. This initiative will also address the issue of
rural-urban migration in the future.
14. We have
seen the success of integratingthe rural and urban economies in developed
countries and we would like to see similar success to happen in Sarawak.A
well-developed rural economy will also help to address the socio-economic
imbalances between these areas. In doing so, all rakyat irrespective of rural
or urban areas,will be able to enjoy better income and higher quality of life.
Datuk Amar Speaker,
Rural Transformation
15. Under
my administration, we are serious in transforming our rural areas and for this
reason, we have providedsubstantial amount of budget to implement numerous
programmes and projects in the rural areas. All these projects are in the form
of rural basic infrastructure such as roads, water and electricity supplies as
well as social amenities.I would like to assure that these projects are indeed
people centric in order to accelerate this transformation.
16. In
respond to the issue raised by the Honourable Member for Kota Sentosa on MRPs and
social programmes under rural development, I would like to inform that these
efforts are not one-off but will be continued under the 11th Malaysia Plan
until we see marked improvements in the livelihood of our rural communities.The
first tranche of allocation amounting RM244.6 million has been disbursed to
implement 1,032 projects and there are many more being planned and to be
implemented. The Federal Government also continues to provide fund for Minor
Rural Projects every year.
17. I
regret to say that DAP is opposing my request for an additional RM500 million
for rural development which will largely benefit the Bumiputera community. This
additional allocation will be used for the implementation of rural projects
such as Long Lama Bridge, Bako Bridge and Limbang Bridge. The increased in the
MRP allocation for the Barisan Nasional ADUNs is to enable them to fulfil all
the promises to the people within their own constituencies including those
constituencies which are under the opposition.For these constituencies, the
Barisan Nasional ADUNs nearby canforward their request to me for approval.
18. As I
have mentioned earlier, these projects are rural basic infrastructure such as
roads, water and electricity as well as social amenity projects such as
community halls, places of worship and sport facilities. In view of the
different types of projects, scope and location, the cost of each project
varies. Therefore, it is not practical to provide the same amount of allocation
for every project. Government machineryis now in full gear implementing all our
rural transformation projects to ensure that these projects are completedon
time to benefit the rakyat.
Datuk Amar Speaker,
Technical Training
19. Our
people must be ready to grab all the opportunities arising from more investment
coming into the State. These industries
demand workers that are highly skilled and technically competent. We do not
want these opportunities to be filled by foreign workers. Instead, these
opportunities should be taken up by our local workforce.
20. Therefore,
it is imperative for us to prepare and train our people to be highly skilled
and competent to meet the need of these industries.Human capital and technical
training is in the main agenda of our development thrust to spearhead the
success of our industrialisation.
21. For
this purpose, we are establishing more technical training centres. At the same
time, we are fine tuning the quality of existing programmes and courses to suit
the requirements of industries in various fields namely manufacturing,
agriculture and services.
22. The
State will complement the efforts of the Federal Government in technical and
vocational trainings and in this respect, Yayasan Sarawak has been tasked to
collaborate with other agencies in spearheading technical trainings in the
State.
Datuk Amar Speaker,
Pan Borneo Highway, Logging Roads and Jiwa Murni Projects
23. We have
seen how a well-planned and extensive highway networkshave been successful in
changing the economic landscape and accelerating the economic growth
ofacountry. Highways are needed to improve the mobility of people and
transportation of goods effectively and efficiently from one point to another.
24. In the
case of Peninsular Malaysia, the development of the North-South Highway (PLUS)
has helped to integrate and transform the economy of Peninsular Malaysia to
what it is today.
25. We in
Sarawakdo not want to be left behind. All this while, we have been waiting for
the development of the Pan Borneo Highway as we believe this highway will bring
about significant socio-economic progress to our State as can be seen from the
impact of highways in Peninsular Malaysia.
26. The
Prime Minister has honoured his election promise to deliver the Pan Borneo
Highway to us when he launched this project on 31st March 2015. The Prime
Minister is also committed to ensure that the project main contractor appoints
local contractors to undertake the job.
27. We,Sarawakians
are indeed thankful to the Prime Minister and the Federal Government in
approving this project and we should not waste our time debating on the
polemics about this project. Instead, we should be grateful that this highway
will not impose any toll on road users and will be completed within the period
of eight years. We all know that it is the single largest infrastructure
project ever undertaken in the State and will have tremendous impact to transform
the rural areas.
28. In this
regard, this mega project will be the catalyst to accelerate growth and
development in the State as it covers the whole length and breadth of Sarawak
especially the rural areas. Rural road networks will link to the Pan Borneo
Highway, thus helping to integrate the rural and urban economies especially in
the movement of goods and people between the two areas.
29. The
construction and completion of Pan Borneo Highway will also further strengthen
the transportation network and logistics system that we have in the State. This
will help to reduce the costs of transportation resulting in lower costs of
doing business in the State. We believe that this project will help to make
Sarawak a competitive place to do business in the country.
30. As for
the State logging roads, the Federal Government has agreed to provide funding
to improve these roads. For those roads
located in the remote areas, the Federal Government has also agreed to
undertake the construction of these roads under the Jiwa Murni projects.
Datuk Amar Speaker,
Eleventh Malaysia Plan
31. Being
the biggest state in Malaysia, we realised that we are still lagging behind in
term of infrastructure development as compared to the more developed states in
Peninsular Malaysia. We need to catch up
in order to be at par with these developed states especially as Malaysia
embarks on its journey to become a developed nation by the year 2020.
32. For
this reason, we have formulated Sarawak Socio-Economic Transformation Plan
(SETP) which is a catch up Plan to develop the State starting from the 11th
Malaysia Plan.This is indeed critical as the 11th Malaysia Plan is the last 5
Year Development Plan for us to achieve a high income and developed State
status by 2020.
33. I will
provide further information on the State 11th Malaysia Plan in the next DUN
sitting but suffice for me to say that rural transformation is one of the
thrusts covered in our 11th Malaysia Plan. With this approach, more
infrastructure and economic development will be carried out in the rural areas
to benefit the rural communities.
34. We are
asking for more development funding from the Federal Government under the 11th
Malaysia Plan. We are now working closely with the Federal Government to get
more funding than what we have received under the 10th Malaysia Plan.
35. In
respect to SCORE, I am pleased to inform that SCORE is successful in attracting
investors to the State. In view of the encouraging demand, we will continue to
develop the SCORE areas but this development requires more funding. In this respect, we are working closely with
the Federal Government to seek greater funding to develop the SCORE areas and
our requests have been forwarded to the Federal Government under the 11th
Malaysia Plan. In fact, the Prime Minister himself has visited the Samalaju
Industrial Park on 31st March 2015 to see for himself the progress of the Park
and in that occasion we have conveyed our request for more funding to him.
Datuk Amar Speaker,
New Division and District
36. I have
announced the creation of new Division, Districts and Sub Districts. In the
past, we started with five divisions, and over time we have increased the
number of divisions to seven, nine and eleven.
Serian is the 12th Division and will start its operation beginning early
June this year. As I have mentioned earlier, this will be the special Gawai
gift to the people of Serian.
37. I would
like to announce the establishment of 9 new Districts namely Tebedu, Subis,
Beluru, Sebauh, Tanjung Manis, Kabong, Pusa, Telang Usan and Bukit Mabong
(Tunoh) and 4 new Sub-Districts namely Bario, Lapok, Mulu and Long Bedian.
38. The
changes in administrative boundariesthrough the creation of new division,
districts and sub districts are to meet the increased expectations of the
rakyat in the provision of service delivery and the implementation of
programmes and projects.
39. Divisional
and District Administration is the hallmark of the State Government’s efforts
to reach out to the people as these government institutions are important front
line agencies that serve the rakyat. The people have always looked high upon
the Residents and District Officers to resolve many of the ground issues faced
by the rakyat as well as to coordinate and implement projects in the divisions
and districts.
40. This is
in line with our rural transformation programme as all of the new division, districts
and sub districts are located in the rural areas. Through this exercise, we are
expecting more development to take place in these areas in years to come. We
have seen how small towns like Samarahan, Mukah and Betong are now transformed
to become more vibrant than what they were before and we believe that the new
Serian Division and other new districts and sub districts will also enjoy
similar socio economic progress.
Datuk Amar Speaker,
Rationalisation of Cost of Living and Cost of Doing
Business
41. As a
responsible government, we are concerned with the rising cost of living
especially among the middle and lower income groups. In respond to these
issues, the State Government is taking several measures to reduce the burden of
the rakyat.
Electricity Tariff Reduction
42. In the
last sitting, I have announced the electricity tariff reduction for domestic
consumers. With this tariff revision effective 1stJanuary 2015, about 240,000
customers or 50% of SEB's domestic consumers enjoyed reduction of between 20%
to about 40%. Another 130,000 customers of low income group are now enjoying
zero monthly bills as these are paid by the Government.
43. The
tariff reduction was made possible because of the successful operation of Bakun
Hydropower, timely completion of Murum Hydropower and successful securing of
power from the SCORE customers setting up here. The total amount of water
royalty expected to be collected from Batang Ai, Bakun and Murum HEPs in 2015
is RM100 million.
44. With
further success expected of the SCORE agenda and hydropower developments, it is
timely that commercial and industrial consumers also benefit from the
government initiatives. With this in mind, effective from 1st June this year, I
wish to announce that the electricity tariff for commercial and industrial
tariffs will be reduced.
45. This
reduction will benefit all the current 85,200 commercial and industrial
businesses or customers. Out of this
number, 50% or 46,000 commercial consumers will enjoy a reduction of about 15%
to 50%. Another36% or 30,500 consumers will enjoy about 8% to 11%
reduction. The balance 9,000 consumers
will enjoy a reduction of average 4%.
46. For
industrial consumers, about 980 or 87% of them will benefit between 4% to 40%
reduction in tariff. The balance 125
consumers will enjoy a reduction of average 2%.
47. These
revised structures aim to provide greater assistance to small and medium-sized
businesses. This will assist the business community especially the smaller
players and entrepreneurs in the face of the rising cost of operations in
Sarawak.
48. The
revised tariffs structure for the domestic, commercial and industrial sectors
is an element of direct assistance given to the rakyat by the State to reduce
the rising cost of living and cost of doing business in Sarawak.
Toll on Bridges Abolished
49. The
second measure is to abolish toll on bridges in the State. Currently there are
three bridges where tolls are imposed namely Tun Salahudin Bridge in Kuching,
Lanang Bridge in Sibu and Asean Bridge in Miri. I wish to announce that
effective 25th May 2015 the toll for Lanang Bridge is abolished and there will
be no toll imposed for Igan Bridge which was earlier planned to have toll. We
have started the negotiation with the concessionaire of Tun Salahudin Bridge.
Ferry Charges Reduced
50. The
third measure is that the government has agreed to standardise the charges of
ferry fares for passenger cars at RM1.00for every ferry service in Sarawak
including Long Lama and Marudi effective 1st June and 1st July 2015
respectively whereby currently in certain areas, motorists have to pay between
RM10.00 and RM15.00 per crossing.
51. We want
to lessen the burden of ferry users especially those in the rural and coastal
areas. We mean business in helping the rakyat and the business community. We
deliver what we have promised and we do not believe in rhetoric or lip service.
Datuk Amar Speaker,
Term of Title upon Subdivision and Application for
Variation of Title Condition (AVTC)
52. For the
information of this august House, prior to 7thJuly 2014, the State Planning
Authority (SPA) has made it as a condition of approval of development that the
subdivided titles of land with terms of more than 99 years and those held in
perpetuity, be reduced to 99 years. This ruling has caused consternation
amongst some land owners who felt that the condition imposed was rather unfair
to them.
53. While
acknowledging the reasons behind this move, with effect from 7thJuly 2014, I
have decided that for titles having perpetuity term, the new subdivided titles
will also carry the perpetuity term.
NCR Cases in the Court
54. Land
dispute between plantation owners and claimants of NCR land is a recurring
issue that has dragged the Government to Court as a party accused of being
responsible. To date and based on records in the Land and Survey Department,
there are a total of 124 of such cases at various stages of the Court process.
55. This
problem, if left unchecked will be a constant drain on everyone’s time, worse
it gives fodder for the detractors to accuse the Government of a slew of
wrongdoings from land grab to the rape of the countryside.
56. I take
the position that if the parties involved are prepared to settle their cases
outside of the Court, the Government will assist them to do so. I am even
prepared to give the Natives, land either under Section 7 or Section 6 of the
Land Code. But I must emphasize that the Government will not tolerate ludicrous
land claim that extend from “sunrise to sunset”.
Datuk Amar Speaker,
Environmental Protection and Conservation
57. We must
manage and protect our forest well to ensure that our forest remain sustainable
for future generation. Our policy has
been very clear in respect to sustainable forest management but policy alone is
insufficient if it is not followed up with effective implementation and strong
enforcement.
58. We are
determined to manage, protect and conserve our forest, not because we are under
attack by foreign NGOs and other parties but more so because we believe that
this is the right thing to do if we all care about Sarawak and our environment.
For this reason, we are tackling these problems at all levels ranging from
policy, legislation, process and procedures, systems and enforcement. We are serious
in our efforts to transform the image and reputation of our forestry sector and
timber industries as Sarawak aspires to become a leading player in sustainable
forest management.
Datuk Amar Speaker,
59. Our
State is an important player in the international tropical timber and timber
products. In fact, the timber industry is one of the economic sectors that
contributed tremendously to the State’s economy for the past few decades. The
timber sector will continue to grow and is occupying the fourth position in
terms of export after LNG, petroleum and palm oil.
60. We all
know that illegal logging has serious implications on our environment, revenue
and image of Sarawak in the world on how we manage our forest. Therefore, we
are going all out to eliminate illegal logging in the State. I am still not
satisfied with the outcome of our efforts to date in eliminating illegal
logging. Therefore, we will continue to enhance and intensify our efforts until
illegal logging menace is completely wiped out in the State. This is just the
beginning in our determination to eliminate illegal logging and the opposition
should support our initiatives rather than belittling our efforts in combating
these illegal activities.
61. In
terms of achievement, 46,215 cubic meter of illegal logs were seized worth
about RM14 million and a royalty of RM3 million in 2014. Out of 165 sawmills,
123 are active while 42 are non-operation where it is suspected that some of
these inactive sawmills rely on the supply of illegal logs to support their
operation. I would like to announce that the Government will no longer approve
new sawmills to be setup within the timber concession areas.
62. For
this reason, I am happy to note that this august House has passed the Forest
Bill 2015 to enhance protection of forests with tougher law against illegal
logging. The Forest Bill is also to further improve forest conservation efforts
in the State by empowering forest officers and increasing penalty for forest
offences.
63. The
introduction of Forest Bill 2015 is the manifestation of the State Government
resolute commitment to strengthen forest management and taking into account the
environment and welfare of the local community. We trust that with the
implementation of this law will help us to combat and eliminate illegal logging
in the State and improve our image in forest management in the world.
Datuk Amar Speaker,
State Sovereignty and Security
64. The
presence of illegal immigrants (PATI) is causing social, security and economic
problems to the State. If left unchecked, these problems can affect the
security and sovereignty of the State. As the numbers of PATI increased due to
weak enforcement, they are becoming bolder by encroaching on our land and
waters to exploit our rights over job and business opportunities as well as
robbing the State of our precious resources.
65. We have
witnessed these in the recent incidences involving illegal fishing in Miri due
to the abundance of fish in the State waters. As a result, the livelihood of
our local fishermen is badly affected. They have raised numerous complaints to
the relevant authorities but unfortunately, little action was taken until I
have to step in to resolve this issue.
66. Some
PATI were even caught involved in prostitution, smuggling of illegal weapons
and formed part of the squatter colonies in the State. Their health condition
is also a concern because they are not screened as they come in illegally. Their presence is also associated with the
rise in contagious disease particularly tuberculosis (TB) which could pose
serious health risk to our people.
67. I wish
to state here that I am not making any compromise on any issues that can affect
the State security and sovereignty. I
have directed all the relevant enforcement agencies to beef up, be firm and be
bold to round up all the illegal immigrants. Stern actions must be taken to
penalise employers who are hiring and harbouring illegal immigrants. Since
January 2015 until 22nd April 2015, a total of 781 PATI have been arrested by
Immigration Department. Out of this total, 506 are Indonesians while 247 are
Filipinos.
68. Besides
illegal immigrants, we are also facing challenges in containing illegal
activities such as cyber gambling, drug pushing and abuse and smuggling of
goods. These illegal activities not only incurred losses to the State economy
but are threats to our youths who are our future leaders and source of
manpower. We are aware that the culprits are trying to escape the law but I can
tell you that we are persistent in dealing with them.
69. Sarawak
is well known for its religious and racial harmony. The various ethnic groups
in Sarawak have co-existed peacefully and have high respect of each other’s religion,
culture and tradition. This has been our uniqueness and will continue as our
strength as we live together to enjoy the prosperity in this State. Therefore,
we have all the rights to safeguard our unity by preventing racial and
religious extremists from entering the State. I have said this in previous
sittings and I will reiterate today and will continue to do so that I will not
tolerate any racial or religious bigots and extremists from disrupting our
harmony and peace which has been our longstanding pride.
Datuk Amar Speaker,
Federal - State Relationship
70. The
Honourable Member for Pujut lamented that the 1976 amendment to the Federal
Constitution had, in his view, downgraded the status of Sarawak from equal
partnership with Malaya and Sabah to be one of the states within the
Federation.
71. However,
the 1976 constitutional amendment did not in any way remove or dilute any of
the safeguards for the special interests of Sarawak and Sabah enshrined in Part
XIIA of the Federal Constitution nor take away any of the sources of revenues
assigned to Sarawak in the Tenth Schedule nor affect any of the legislative and
executive authorities vested in the State by the Federal Constitution.
72. Notwithstanding
the amendment that the Honourable Member for Pujut complained of, the
constitutional safeguards remain in full force and effect. For instance:-
(i) There
could be no alteration of the boundaries of Sarawak without the consent of the
State to be expressed by a law to be passed by this august House as required by
Article 2;
(ii) The
policy decisions of the National Land Council and the National Council for
Local Government shall not be binding on Sarawak and the national development
shall not apply to Sarawak without the concurrence of the Yang Di-Pertua
Negeri, (Article 95E);
(iii) The
rights of the State Government to control the entry and residence in the State
by non Sarawakians remain embedded in Article 161E(4);
(iv) No
amendment shall be made to the Federal Constitution in respect of the executive
and legislative powers vested in the State, the religion of the State and the
special treatment of natives in Sarawak without the concurrence of the Yang
Di-Pertua Negeri [Article 161E(2) (c) and (d)]; and
(v) The
revenues from our natural resources such as timber royalty, water rates, land
or quit rent and premium are assigned to the State and these cannot be taken
away without the concurrence of the Yang Di-Pertua Negeri by virtue of Article
161E(2)(c).
73. The
protection of the constitutional safeguards now rest with this august House and
the Yang Di-Pertua Negeri acting on the advice of the State Cabinet. I can
assure this august House the State Government will strenuously protect these
safeguards and prevent any erosion thereof.
74. However,
Federal-State relationship must be conducted in the spirit of mutual trust and
respect for each other's constitutional rights, duties, authorities or powers.
It ought to be on a consultative mode and not a confrontational approach, so as
to promote national harmony, peace, solidarity and stability. In short, this
relationship should be on the basis of "Render to Caesar what is
Caesar's" - meaning, what constitutionally is the State's must not be
taken away and the State must be accorded and received what is due to the State
as decreed by the Constitution.
75. The
issue of Borneonisation has been raised by some Honourable Members both inside
and outside this august House. Borneonisation is a term used in the 1960s for
the process of phasing out the colonial expatriate officers and allowing
suitably qualified Sarawakian officers to take over the administration of the
State. That process was completed and by 1969 there were no more British
officers in the State Public Service.
76. Our own
officers have proven to be very capable of administering the State and as Heads
of Ministries and Departments. In fact, over the years, Sarawak was fortunate
to have outstanding, loyal and dedicated public officers who had faithfully
served the State with distinction.
77. Apart
from the State Civil Service, there are also Federal departments and agencies
in Sarawak which are established by the Federal Government to serve the rakyat
in Sarawak and to work with the State Departments and bodies in the
implementation of Federal development projects. These Federal Government
departments and agencies provide services which the Federal Government is duty
bound to provide to the rakyat in the State, such as health care, education,
security, issuance of passports, birth and death certificates etc.
78. Sarawakians
have shown that they are capable and qualified to administer and be Heads of
Departments and perform their duties with dedication and distinction. For this
reason, the State Government would like to have Sarawakians heading Federal
departments where suitably qualified officers are available.
79. In so
doing, Sarawakians would have more opportunities to serve the Federal
Government and this would be a very positive move in fostering national
integration and ensuring that the Federal departments and agencies could
develop a much better understanding of the needs, expectations and the problems
of the people whom these departments and agencies are intended to serve.
80. For the
information of this august House, out of the total 166 Federal departments in
Sarawak, 95 are headed by Sarawakians. We acknowledged that there are Heads of
Federal Departments from Peninsular Malaysia who serve the people well and
contribute towards the development of the State.
Datuk Amar Speaker,
Update on PETRONAS Negotiation
81. I would
like to update on the progress of negotiation with PETRONAS and the Federal
Government to increase the Petroleum Royalty to 20.0%. In the last DUN Sitting
in November 2014, I had announced in this august House that the State
Government and PETRONAS have agreed to work on five key areas of cooperation to
achieve the objective of the resolution.
82. However,
I wish to reiterate here that the negotiation on the percentage of the royalty,
as the State Government take will be decided between Federal Government and the
State Government as it is within the authority of the Federal Government.
83. With
PETRONAS, I am pleased to inform we had made progress on the 5 key areas of
negotiation. Despite the drop in oil prices that has affected their revenue,
PETRONAS continue to accede to the State requests.
84. PETRONAS
has agreed to supply to Sarawak Energy Berhad 250 million standard cubic feet
per day (mmscfd) of firm supply natural gas for power generation for 20 years
at the price of RM15 per million British Thermal Unit (mmBtu) with 1.5%
escalation per annum based on the principle of firm supply contract and it is
also very much lower than the market price if it is sold internationally.
85. In
addition, PETRONAS is also working out a mechanism to supply 200 million
standard cubic feet per day (mmscfd) natural gas for the non-power sector. This
is important to the State especially in realising our SCORE development agenda
as well as our industrialisation strategy. The supply of natural gas to the
non-power sector will enable Sarawak to develop Bintulu as our petrochemical
hub by attracting more petrochemical industries to invest in Bintulu and at the
same time attracting more industries to invest in the Samalaju Industrial Park.
86. PETRONAS
has also increased the actual spending value for jobs awarded to Sarawak
companies from RM2.1 billion in 2013 to RM2.4 billion in 2014. This is an
increase of RM0.3 billion from the baseline value of RM2.1 billion worth of
contracts to Sarawak companies. In the
first quarter of 2015, PETRONAS has already spent RM350 million for the same
purpose. PETRONAS will continue to improve and increase the value of contracts
awarded to Sarawak companies.
87. I would
also like to inform that the number of licensed/registered companies with
PETRONAS has increased from 314 in 2013 to 369 in 2014. To further improve the
Sarawakian companies’ participation in the oil and gas industry, PETRONAS has
rolled out strategies with PETRONAS Supply Chain Management Units and PETRONAS
Product Sharing Contracts in February 2015.
88. A
working committee with members comprise of both PETRONAS and State
representatives have been formed to monitor and track the progress of the oil
and gas industry in the State.
89. In the
area of human resource, education and technical trainings, PETRONAS in 2015
will spend about RM180 million on capital expenditure and educational sponsors
and capacity building.
90. We have
witnessed earlier on 7 March 2015, during the SCAT Fair, PETRONAS had awarded
scholarship to 150 students from MRSM Kuching, Betong and Mukah to encourage
them to excel in their academic performance and another 150 VISTA scholarships
to enable rural youth to undergo technical skill development to enhance their
employability.
91. For
Corporate Social Responsibility, PETRONAS has allocated RM50 million over five
years (2015-2019) on Community Outreach Programme, Disaster Relief Supports,
Infrastructure Contribution and Environmental Conservation.
92. PETRONAS
is also in active final discussion with the State Government on the details of
Shareholders Agreements onthe 10% equity in the MLNG Plant Train 9. We are also
working with PETRONAS for more equity in MLNG 2.
Datuk Amar Speaker,
Project Batu Kawa on State Land
93. According
to the Honourable Member for Kota Sentosa based on his press release in a
number of media, anyone who knows the property market in Kuching would
recognise that the market price for such land is about RM2 million per acre
thus giving a total of RM534 million for the 267 acres. I want to ask the
Honourable Member for Kota Sentosa to get me a buyer within 30 days to pay the
government RM534 million cash lump sum up front and I will ask the project
proponent to withdraw from the project.
Datuk Amar Speaker,
Conclusion
94. I hope
that my explanation on the key focus initiatives of the State Government
especially on rural economy and transformation, the progress of negotiation on
petroleum royalty and our determination to eliminate illegal loggings, entry of
illegal immigrants and criminal activities have enlightened members of this
august House.
95. I am
committed to further strengthen the economic growth and development of Sarawak
to improve the livelihood of the rakyat with more support and bigger funding
from the Federal Government.
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