Chief Minister Tan Sri Adenan Satem's winding up speech
at the state assembly on Nov 30, 2016
SARAWAK
TRANSFORMATION: THE WAY FORWARD
• Sarawak has continued to strengthen economic resilience
through various measures over the years. Moving forward, there are challenges
to be addressed arising from the uncertainties in the global economy and the
slowdown in the national economy.
The Prime Minister clearly shows that he is willing to discuss this matter with
the State Government and to find solutions to resolve this issue. The State
Government is not making a ‘U’ turn on this matter because we believe that
Federal and State BN Governments being in the family can resolve this issue
amicably between the parties concerned. Diplomacy is better than confrontation.
This consultation approach is manifested through the Prime Minister’s regular
visits to Sarawak and his approval of many projects during his visits. - Adenan Satem
Despite these challenges, we need to accelerate our
economic growth especially in achieving our vision to become a high income and
developed State by 2030. To achieve this vision, efforts are being carried out
through our Socio-Economic Transformation Plan (SETP) to accelerate income
growth and reduce income disparity among our people.
Under SETP, for the State to achieve a high income status
by the year 2030, the economy needs to grow at 6.5 percent per annum. As I have
mentioned earlier in my Budget Speech, our economic growth in 2015 was 3.7
percent and is expected to grow between 3.5 to 4.0 percent in 2016. This
projected growth takes into consideration of the weak prices of our export
commodities.
However, as the world economy is expected to recover in
2017, the State economy is projected to experience better growth of between 4.0
to 4.5 percent. The slower economic growth registered thus far calls for
adjustments in our economic policy and this required some form of interventions
in Government strategies and expenditure.
For this
reason, I have announced in the Budget Speech 2017 that the State Government is
embarking on a deliberate transformation initiatives in our Development Plan.
The main areas in our transformation agenda are Socio-Economic Transformation,
Rural Transformation, and Performance and Service Delivery Transformation.
We hope that our SETP supported by the transformation initiatives will put our
economic growth back on track as projected.
DEVOLUTION OF POWER
On 16th March 2014, two weeks after my appointment as
Sarawak Chief Minister, I have emphasised that Sarawak's relationship with the
Federal Government must be constitutionally correct. In order to achieve this, the Sarawak BN
Government at the State Legislative Assembly sitting on 8th December 2015 had
sought and was given a mandate for the State Government to safeguard the
constitutional rights and protection of the State in the interest of all
Sarawakians.
The mandate given covered the aspirations of the
people of Sarawak from the days before the formation of Malaysia as stipulated
in the Cobbold Commission Report, Inter-Governmental Committee Report and
Malaysia Agreement 1963.
Pursuant to
this, the Government through its officials has actively and carefully planned a
structured course of action toward achieving this objective. This course of
action involves 3 phases which are as follows:- (1) Administrative empowerment;
(2) Encroachment of State's rights; and (3) Oil and Gas Royalty.
On 21st January
2016, I had announced 13 provisions of administrative empowerment to be
delegated to the State Government which were agreed upon during my meeting with
the Right Honourable Prime Minister Datuk Patinggi Mohd Najib Tun Razak.
The 13 provisions of administrative
empowerment are as follows:-
(1) Sarawak Legal Officers are to be authorised by the
Public Prosecutor under the Criminal Procedure Code to conduct prosecution for
offences under the State Ordinances from the stage a person is charged in the
lower court until the appeal stage. In light of the recent Devolution of
Power exercise agreed between the Federal and State Governments, several
officers of the State Attorney-General's Chambers have on 1st March 2016 been
appointed as Deputy Public Prosecutors.
Since then a total of sixteen (16) forest cases have
been approved for prosecution. Ten (10) cases have been duly charged in Court
with four (4) cases have been successfully prosecuted and the remaining six (6)
cases are pending for trial. Another six (6) cases are pending for charges to
be filed in Court. Following the successful prosecutions, a total amount of
RM77,719.60 in compensation was ordered by the Court to be paid to the State
Government. This amount is over and above the fine imposed by the Court;
(2) It is agreed
for the delegation of power to the State officers to represent the Public
Service Commission and the Education Service Commission in the appointment of
officers to the Federal Civil Service, including teaching and medical services;
(3) Posts in Sarawak Immigration Department will be
increased to improve the enforcement functions in the State with an increase of
100 new posts, with full deployment by the end of next month. As of today, out
of 100 new posts, 99 posts have been filled;
(4) The ratio of
Sarawak-born teachers serving in Sarawak will be increased to 90 percent of the
total number of teachers in Sarawak by 2018. To ensure that this target is
achieved, temporary teachers from the open market will be considered from time
to time and obtain their Diploma in Education while teaching. As of today,
out of the total number of 42,235 teachers in Sarawak, 37,921 of them are
Sarawak-born teachers, which is about 89.8 percent of the total number of
teachers in Sarawak;
(5) Traffic warden power for Sarawak Local Authorities
will be given to the Miri City Council, apart from Kuching North City Hall and
Kuching South City Council;
(6) The Sarawak State Government will be consulted before
an application for a Deep Sea Fishing Permit is forwarded to the Deep Sea
Permit Evaluation Committee for consideration. The Ministry of Agriculture and
Rural Economy is the representative of the State Government in the Deep Sea
Permit Evaluation Committee;
(7) The Sarawak State Government will be consulted in the
drafting of Federal legislation which has bearing or impact to the Sarawak
State Government, where provided by law. In this respect, the State Government
was consulted on, amongst others Integrated Water Resources Management Bill and
Amendment to the Gas Supply Act 2016;
(8) The planning of Federal development projects in
Sarawak will be based on the priorities and strategic thrusts of the State
Five-Year Development Plan. Implementation of the projects will be referred by
the Federal Ministries to the State Government such as in determining the
location of schools, hospitals and other development projects. This initiative
is now being implemented;
(9) The Higher Education Ministry will take necessary
measures to increase the number of student enrolment from among Sarawakians
into medical degree programmes in public universities.
Sarawakians would be given a greater opportunity to enter
foundation studies programmes in UNIMAS. In this respect, UNIMAS has been
empowered to manage the intake of medical students to allocate the quota of 80
percent for Sarawak born students.
(10) It is agreed
that relevant areas that can be delegated will be identified for delegation of
power of the Director General under Section 49 of the Environmental Quality Act
1974 to the State officers or departments. Both the State and Federal
Governments have agreed on the matters to be delegated and are now in an
advanced stage of such empowerment.
(11) Development of housing projects in Sarawak is to be
implemented through a Joint Committee Meeting to ensure that State agencies are
fully involved in the planning, implementation and monitoring aspects of these
projects in Sarawak;
(12) It is agreed that the development of sports in
Sarawak is jointly managed with the State Government. The Federal Youth and
Sports Ministry is also in the process of enhancing the Sports Development Act,
1997 which is expected to be completed by the end of the year. Certain aspect
of the Sport Development Act, 1997 is under review by the parties to look into
the possibilities of enhancing the involvement of the State Government
including the organisation of international/national sporting events; and
(13) It is agreed that the Sarawak Government will carry
out all functions under the Social Welfare Department. All posts will be
transferred to State Civil Service. The Federal Government will contribute 50
percent of the total costs incurred as decided by the National Finance
Council. In this regard, the State
Cabinet will be deliberating and making a decision on the terms and conditions
of these initiatives in the coming months.
These 13 provisions of administrative empowerment are
progressively fulfilled by the Federal Government and we will continue to seek
more empowerment to the State which can bring better benefits including areas
related to tourism and education.
The second phase involves the priorities subject
matter relating to:- (1) Finance (a) Financial Review under Article 112D of the
Federal Constitution; (b) Import Duty and Excise Duty on Petroleum Products;
and (c) Federal Financial Obligation for Expenditure in Concurrent List.
(2) Oil Exploration, Mining and Gas (a) Minerals, Oil and
Oilfields; and (b) Distribution of Gas.
(3) Land and
Revenue from Land Stamp Duties Chargeable on Instruments Prescribed by Land
Code for Transfer, Charge and Sublease. These
issues are at an advanced stage of negotiation by the State and Federal
officers in the Technical Committee set up to look into these priorities
issues. Negotiations are on-going with the relevant parties.
As the
negotiations have yet to be finalised, the details of the meetings cannot be
made public as yet. However, I wish to inform this august House that the next
meeting of the Technical Committee will be held tomorrow, 1st December
2016.Matters not in the priority list will be dealt with after the issues in
the priority list have been dealt with.
UPDATE ON THE OIL
ROYALTY NEGOTIATION
The oil market has shown signs that are heading towards a
more balance situation, despite continuing volatility and challenges. The World
Bank’s Commodity Markets Outlook, October 2016 projected crude oil prices are
to average at USD43 per barrel in 2016, a decline of 15 percent from last year,
and average at USD55 per barrel in 2017.
However, the forecast assumes OPEC will succeed in
limiting global production, and that U.S. production will flatten out next
year. Despite the uncertainty in the oil
market, our negotiation on the request for the increase of oil royalty from 5
percent to 20 percent with the Federal Government and PETRONAS will continue.
In fact, we have made some progress in the following
five (5) key areas of negotiation with PETRONAS: (1) Natural Gas Supply for
both Power and NonPower Sectors; (2) Equity and Royalty; (3) Contracts and
Business Opportunities; (4) Corporate Social Responsibility; and (5) Human
Resource, Education and Technical Trainings.
On the natural gas
supply, PETRONAS has signed five (5) agreements to support the development of
power and petrochemical industry in the State: (1) Principle Agreement with the
Government of Sarawak on the Supply of 450 million standard cubic feet per day
of natural gas for the power and non-power sectors in the State of Sarawak on
3rd April 2016;;
(2) Gas Sales Agreement with Sarawak Energy Berhad to
supply 100 million standard cubic feet per day of natural gas for Tanjung
Kidurong Power Plant on 3rd April 2016;
(3) Memorandum of Understanding with the Government of
Sarawak to conduct a Joint Study for Sarawak Petrochemical Master Plan on 3rd
April 2016;
(4) Heads of
Agreement with HUCHEMS for the supply of 58 million standard cubic feet per day
of natural gas to HUCHEMS' petrochemical complex on 11th November 2016; and
(5) Memorandum of Understanding with Yayasan Hartanah
Bumiputera Sarawak to jointly conduct a Pre-Feasibility Study for a Proposed
Methanol Plant Projectin Bintulu on 11th November 2016.
Through these agreements, PETRONAS has committed to
supply 450 million standard cubic feet per day of natural gas to Sarawak for
the power and non-power sectors development in the State. We will continue to
negotiate for the supply of more natural gas from PETRONAS.
The availability
of natural gas in Sarawak will attract more petrochemical industries to invest
especially in Bintulu. This will support our industrialisation strategy to
transform Bintulu to be the leading petrochemical hub in Malaysia. We believe that the Sarawak Petrochemical
Master Plan will also help us to develop our petrochemical industries in a
strategic way to benefit the State.
The State Government is also in active discussion with
PETRONAS on the details of Shareholders Agreements on the 10 percent equity in
the MLNG Plant Train 9. We are also working with PETRONAS for more equity in
MLNG 2 Plant.
Let me
emphasise here that the State’s equity in MLNG projects is our privilege as not
anybody can participate in the projects. We are also pursuing to have more
contracts to be given to our Sarawak companies.
In this regard, PETRONAS has committed a baseline value
of RM2.1 billion worth of contracts annually to be awarded to Sarawak
companies. Since 2013, PETRONAS has already spent RM14.8 billion worth of
contracts to Sarawak companies.
I would also like to inform that the number of Sarawak
licensed or registered companies with PETRONAS have increased from 314 in 2013
to 396 in 2016. We will continue to negotiate with PETRONAS to enhance the
participation of Sarawak companies in oil and gas industry.
For Corporate
Social Responsibility, PETRONAS is committed to spend RM50 million over 5 years
from 2015 until 2019 for 10 projects. Currently eight (8) projects have started
and are ongoing namely the Development of Community Centre, Sarawak Regatta,
Contribution to NGOs, Mobile CSR, Penan Pre-School, Emergency Aids and PETRONAS
Marine Conservation.
Another two (2)
projects will start soon namely PETROSAINS Playsmart and Rest and Recreation
Areas.
In the area of human resource, education and technical
trainings, PETRONAS will continue to intensify education and human capital
development effortsin Sarawak.
PETRONAS is expected to spend RM465 million, exceeding
the budget of RM420 million meant for 5 years from 2015 until 2019 on:
(1) Capital expenditure for the construction of new MRSM
Bintulu;
(2) Implementation of Asrama Desa projects; and
(3) Educational sponsors and capacity building for
students.
The following are the PETRONAS contribution in education
and human capital development for Sarawakians:
(1) 680 students sponsored under PETRONAS Education
Sponsorship Program to pursue tertiary education since 2003;
(2) 1,054 students sponsored under Program Sentuhan Ilmu
PETRONAS to drive academic excellence since 2003;
(3) 1,008 trainees given the technical skill training
support under PETRONAS VISTA programme since 2007;
(4) 47 students participated in Graduate Employment
Enhancement Scheme since 2011;
(5) 687 students graduated from University Teknologi
PETRONAS since 2003;
(6) 1,945 trainees sponsored at Institut Teknologi
Petroleum PETRONAS (INSTEP) since 2007; and
(7) 95 students sponsored at Akademi Laut Malaysia.
I would like to
inform this august House that currently there are 3,880 Sarawakians or 75
percent of the total workforce being employed by PETRONAS for its Sarawak
operation covering both upstream and downstream activities.
However, after
our negotiation with PETRONAS to increase the number of Sarawakians working
with PETRONAS, they have charted a Roadmap to recruit and develop more
Sarawakians to achieve the targeted job level of 85 percent for Sarawakians by
2020.
The Localisation
Plan was developed to increase the numbers of qualified Sarawakians in PETRONAS
through Structured Succession Planning and New Recruitment through
advertisement.
The Structured Succession Planning of Sarawakians
filling up positions on Non-Sarawakians is on-going since September 2016. For the new recruitment, 192 vacancies (meant
for Sarawakians) were advertised in the local newspapers namely, Utusan Borneo,
Borneo Post and New Sarawak Tribune on 22nd October 2016.
As of 8th
November 2016, PETRONAS has received 10,416 applications (including
non-Sarawakians) and shortlisting is in process. Efforts are also in place to
further up skill and create future qualified Sarawakians leaders. Placement of
Sarawakians at Universiti Teknologi PETRONAS and Institut Teknologi Petroleum
PETRONAS will continue to be done based on merit.
PETRONAS will
continue to expand outreach programme to encourage more Sarawakian students to
enrol in Universiti Teknologi PETRONAS. PETRONAS will also continue to
support technical training programmes in Sarawak via PETRONAS Vocational
Institution Sponsorship and Training Assistance Programme which include the
funding of technical programmes, consumable and Training of Trainers as well as
sponsorship of trainees.
PRIME MINISTER
COMMITMENT TO SARAWAK
The State Government has decided not to proceed on the
motion to Article 1(2) of the Federal Constitution which categorised Sarawak as
one of the thirteen (13) states in Malaysia.
The amended Article 1(2) is perceived as not in the
spirit behind Inter-Governmental Committee Report and the Malaysia Agreement
which was clearly reflected in the original wordings of that Article. That
Article, before its amendments clearly provides that the Federation of Malaysia
consisted of:
(1) The States of the federation of Malaya;
(2) The States of Sabah and Sarawak; and
(3) Singapore.
The Prime
Minister has announced that he is willing to discuss with Sarawak and Sabah on
any matters related to the misinterpretations and misunderstandings to the
Malaysia Agreement 1963.
On this note,
the Prime Minister clearly shows that he is willing to discuss this matter with
the State Government and to find solutions to resolve this issue. The State
Government is not making a ‘U’ turn on this matter because we believe that
Federal and State BN Governments being in the family can resolve this issue
amicably between the parties concerned. Diplomacy is better than confrontation.
This consultation approach is manifested through the Prime Minister’s regular
visits to Sarawak and his approval of many projects during his visits.
As I have always mentioned in the past, we are
fortunate to have Datuk Patinggi Mohd Najib Tun Razak, a caring Prime Minister
who has frequently visited Sarawak since he became the Prime Minister.
Undeniably, this shows that he cares a lot for the wellbeing of the people in
the State. It also exemplifies his great
concern on the needs to accelerate the provision of basic infrastructure and
social amenities especially in the rural areas.
As such, we always welcome his visits to the State. Being
a compassionate and generous Prime Minister, his walkabout to the State does
not come empty handed. Instead, many basic infrastructure and social amenities
projects were approved during his visits cum meeting the people sessions
despite the economic slowdown faced by the country in the last couple of years.
The announcement of many touch point projects during his
visits to the State was made possible due to the close rapport and cordial
relationship between the State and Federal Governments.
In this respect, we strongly believe that consultative
rather than confrontational approach is the best way for the State to engage
constructively with the Federal Government.
Indeed, this
approach has augured well for both parties as manifested through the significant
number of projects approved during the Prime Minister walkabout to the State.
During the recently concluded State Election, YAB Prime Minister has approved
498 walkabout projects with an allocation totalling RM2.601 billion for the
State.
I am pleased to inform this august House that as at 31st
October 2016, 286 projects or 57 percent of the total projects had been
completed while the remaining projects are still at the various stages of
implementation.
The completion of these projects undoubtedly has
significant impact on the livelihood of the rakyat especially those residing in
the rural areas. A case in point is the completion of the Batang Sadong Bridge
costing RM211.3 million in Samarahan Division. This project has benefited
thousands of people living in the coastal settlements within the areas. Towns
and settlements along the coastal areas are now well connected. Hence, the
travelling time between Sebuyau and the surrounding towns has been greatly
shortened.
In addition, the farmers and fishermen in the areas are
now able to market directly their produce to the nearest towns. Of significant to note is that this bridge
acts as an enabler to provide the road connectivity and to fast-track the
development within this area.
With the existence of better connectivity, the private
sector is expected to actively participate in the opening up of more areas for
development notably in commercial plantation, agriculture, aquaculture and
fisheries as well as related agro-based industries.
All these business activities will provide more and
better employment opportunities to the local communities. It is envisaged that
with the provision of better infrastructure and good income will improve the
quality of life of the communities in this area.
The Pan Borneo project, a mega project for Sarawak
that was approved by the Prime Minister is progressing well. All the 11
packages from Telok Melano, Lundu to Merapok, Lawas have been awarded to the
successful contractors. With a total distance of 1,089 kilometres, the project
when completed in 2020 will provide a comfortable and toll free road journey.
The travel time across Sarawak will also be shortened drastically.
As I have
mentioned before, this project will bring multiplier effects on the State economy
through greater mobility of people and goods and opening up of more areas for
development. The project has created job opportunities for 75 local
consultants, 11 main contractors and 36 subcontractors as well as generating
more employment opportunities for Sarawakians.
In order to ensure the successfully completion of this
project and to benefit the rakyat, the State Government is working very closely
with the Federal Government. In reciprocating the kind heartedness and
generosity of YAB Prime Minister, I would like to express our thanks and
heartfelt appreciation to him and the Federal Government for approving these
people-centric and rural focus projects during his walkabout in Sarawak.These
projects have considerably benefited the rakyat especially the rural
communities.
For this reason, we hope that our YAB Prime Minister will
continue to visit us in the future and to announce more programmes and projects
for the benefit of the rakyat in Sarawak.
PROGRESS ON 53
PRINCIPLES AND ACTIONS
I have made many announcements in respect to the 53
Principles and Actions before the last State election. These Principles and
Actions are not just empty promises but sincere efforts by the BN Government to
safeguard the interest of the rakyat as well as to lighten the burden of the
people.
I am pleased to inform that all these
Principles and Actions have already been implemented except for several items
under the Devolution of Power and PETRONAS commitment as I have
explained earlier that are still at the various levels of negotiation with the
Federal Government and PETRONAS. It is obvious that the rakyat have benefited
from the various initiatives that are being implemented.
POLITICAL
SCENARIO
Before I conclude
my speech, let me share some findings on the people support in the last State
Election. In terms of popular votes, there is an increased support for BN from
55.4 percent in the Tenth State Election (PRN10) to 62.2 percent in the
Eleventh State Election (PRN11).
In contrast, the
popular votes for the oppositions (PKR and DAP) have decreased from 37.4
percent in PRN10 to 29.0 percent in PRN11. The people support is translated
into an overwhelming victory by BN in winning 72 out of 82 State Constituencies
contested in PRN11.
The rakyat have made their choice and we, the BN
Government being a caring and responsible Government is duty bound to deliver
all the promises made in the last election. We are committed to discharge our
responsibilities to plan for the posterity of Sarawak and to look after the
wellbeing of the rakyat.
This is the reason why we have fulfilled the 53
Principles and Actions to benefit the rakyat. We are implementing development
policies and strategies through our SETP and Transformation Initiatives for the
economic prosperity of the State and the livelihood of our people.
Therefore, our programmes and projects are people-centric
and focusing on the rural areas.
No comments:
Post a Comment