Winding up
Speech by Chief Minister Datuk Patinggi Abang Johari Openg at 18th Meeting of
State Legislative Assembly on November 14, 2018.
Sarawak Rights and
Strategic Interests
3. I am
speaking to all the Honourable Members of this August House with great pride in
my heart, because the time is now, for us, as Anak Sarawak, to come out front
and defend our inalienable rights in determining the fate of our beloved
homeland Sarawak. We must fight hard, with great courage and wisdom.
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| Chief Minister Datuk Patinggi Abang Johari Openg |
4. We
have now come to know that we have enemies from among our so-called “friends”
out there who have been quietly undermining our resources right under our noses
and belittling us by saying that we do not know how to govern ourselves. To
these so-called “friends”, I would be like to reassure them that we Sarawakians
are capable of governing ourselves and we shall be happy if there will be no
unnecessary obstacles to our efforts in asserting our rights to autonomy and
self-government.
Asserting
Sarawak’s Autonomy
5. The
Proclamation of Independence for Sarawak, read by the first Chief Minister, Tan
Sri Datuk Amar Stephen Kalong Ningkan on, Malaysia Day, the 16th September,
1963, contained the following words:
6. “Whereas
one of the nine Cardinal Principles of the Rule of the English Rajahs was that
the goal of self-government shall always be kept in mind and that the people of
Sarawak shall be entrusted in due course with the Governance of themselves:
7. And
Whereas this principle accords with the policy which Her Majesty’s Government
of the United Kingdom and Northern Ireland have always pursued in the
Governance of those territories of the Commonwealth for those affairs Her
Majesty’s Government have been responsible:
8. And
Whereas in pursuance of this principle Her Majesty’s Government by an agreement
entered into on the 9th day of July, 1963, with the Government of the
Federation of Malaya, the Government of the State of Singapore and the
Governments of the Colonies of Sarawak and North Borneo it was agreed that the
State of Singapore and the Colonies of Sarawak and North Borneo shall be
federated with the Federation of Malaya, and that the said Federation shall be
known as Malaysia.”
9. Therefore,
it is a historical fact that both the Rajahs and the British Government agreed Sarawak
was to be granted independence in fulfilment of one of cardinal principles laid
down during the reign of the Rajahs that the people of Sarawak shall be
entrusted with the Governance of themselves.
10. In
pursuance of this cardinal principle, the British Government granted Sarawak
self-government on 22 July, 1963 when Sarawak had its own Chief Minister and a
Cabinet system of Government like any other sovereign country having a
democratic form of Government.
11. Sarawak
was, therefore, already a self governing country before Malaysia Day on 16th
September, 1963. This important fact distinguished Sarawak from the other
States of the Federation of Malaya. The Malaysia Agreement, which the
representatives of Sarawak signed on 9th July, 1963, reinforced this principle
by according Sarawak and Sabah greater legislative and financial autonomy and
more sources of revenues, greater control of her natural resources, including
those found in the Continental Shelf, than the other Malayan States, through
the following measures:
(a) As a
condition precedent for the coming into force of provisions of MA 63, the
Malayan Parliament is to pass a law to amend the Immigration Ordinance 1959 to
incorporate the rights of Sarawak and Sabah to have absolute control and authority
over the entry into, and residence of persons not of Sarawak origin, in our
State, and this right was also to be embedded in the Federal Constitution and
cannot be taken away without the concurrence of the State Authority;
(b) The
enactment of the Malaysia Act 1963 by the Malayan Parliament to:
(i) amend
Article 1 of the Malaya Constitution whereby the new Federation of Malaysia
shall comprise the States of Malaya, the Borneo States of Sabah and Sarawak and
Singapore;
(ii) provide
for special constitutional safeguards of the special interests rights and
position of the States of Sabah and Sarawak;
(iii) providing
for greater legislative authorities for Sabah and Sarawak in List IIA (State List) and List IIIA (Concurrent List)
in the Ninth Schedule of the Constitution of Malaysia;
(iv) assigning
additional sources of revenues to Sabah and Sarawak and special grants in the
Tenth Schedule with additional borrowing and taxing powers such as the
imposition of State Sales Tax.
(c) the implementation of the recommendations
for safeguarding the special interests and position of Sarawak and Sabah
contained in the Inter-Governmental Committee Report, 1962 which have not been
incorporated into the Federal Constitution by way of executive, legislative actions to be
undertaken by the Governments of the Federation of Malaya, Sabah and Sarawak.
12. In
September this year, the Federal Government formed a Special Steering Committee
chaired by the Prime Minister to review the implementation of MA 63. I, myself
and members of this August House have expressed strong reservations on the
composition of the Steering Committee. The membership of the Steering Committee
ought to reflect or be similar to the composition of the Inter-governmental
Committee (IGC) whose recommendations formed the basis of the MA 63. I trust
the Federal Government would heed our strong reservations to the composition of
the Steering Committee. It should be reconstituted as an Inter-Governmental
Committee comprising of representatives of the Governments of the Federation
and of Sabah and Sarawak. Indeed, it was such an Inter-Governmental Committee
that made the recommendations to provide for constitutional safeguards for the
special interests and status for Sarawak and Sabah, and these recommendations
underpinned the terms and spirit of the Malaysia Agreement to give birth to our
Nation.
13. Fifty-five
(55) years after the formation of Malaysia, a review of the implementation of
MA 63 is timely. Over the last five and half decades, socio-economic conditions
have changed, the aspirations and expectations of the people of the State the
development and progress of the State have risen – they want better government
delivery systems and services, better infrastructures, education and health
services, more employment and business opportunities and a better future for
coming generations of Sarawakians. Hence, the State Government agree that the
implementation of MA 63 should be reviewed by a Committee akin to the
Inter-Governmental Committee and I am pleased that this August House has on
6th November passed a Motion which
supports the State Government stand on this important issue.
14. Whilst
supporting the review of MA 63, the State Government will ensure that those
special rights for Sarawak entrenched in the Federal Constitution in accordance
with the MA 63, must not be affected in anyway. These include:-
(a) our
immigration autonomy,
(b) our
rights to taxation powers like the imposition of State Sales Tax, port dues for
State ports, royalty for minerals and timber etc,
(c) our
rights to our natural resources including land,
(d) the
protection of our State’s boundaries which extend to the Continental Shelf of
Sarawak, and
(e) our
right to formulate our own Development Plan and declare our own development areas
under Article 95E of Federal Constitution.
These items would be strictly non negotiable.
15. I would
await the views and proposals from the Consultative Committee, established by
this August House, on:
(a) What
have been the breaches or non compliance with the terms of MA 63 and the
constitutional safeguards of the special rights, interest and position of
Sarawak and how these should be remedied by the Federal Government;
(b) Whether
the performance of the Federal Government in regard to subject matters, which
under MA 63 and the IGC Report, are placed under the Federal Legislative List
and over which they have executive authority, have satisfied the expectations
and aspirations of Sarawakians, and if not,
what measures must be taken to address such unsatisfactory performance,
including, but not limited to, the transfer of executive authority under
Articles 80(4) and (6) and Article 95C(1)(b) of the Federal Constitution over
these subject-matters to the State Government.
Tuan Speaker,
16. I wish
to assure this August House and the people of Sarawak that I and the State GPS
Government will unreservedly defend, protect and reclaim the rights belonging
to the State as agreed in MA 63 and the constitutional instruments annexed
thereto. We will ensure that Sarawak continues to have, and be accorded the
level of executive, legislative, administrative and financial autonomy that
will fulfil the principle that we, the people of Sarawak would be able to
govern ourselves so that Sarawak will be a strong, vibrant and progressive
partner in the Federation and capable of making positive contributions towards
the economic well-being, progress, stability and unity of Malaysia.
Desire for Sarawak
Autonomy
17. Our
desire for Sarawak autonomy is not a knee-jerk reaction but a long and
deep-seated emotion built over the last 55 years, as we Sarawakians begin to
see the great disparity in the development of Sarawak when compared to the
other side of Malaysia.
18. We
realise that this disparity has been created as a result of a national policy
that is Putrajaya-centric which puts Sarawak as a peripheral to mainstream
Malaysian politics and economics, while tapping into our natural resources.
19. We are
unhappy that the Federal Parliament can pass laws which erode the power and
rights of Sarawak. We are unhappy that the Federal Government has failed us in
the delivery of services to our people, particularly in basic infrastructure,
education and public healthcare. It is the infringement into our inalienable
rights of our homeland Sarawak and the inadequate provision for the needs of
our people that compel this Government, and I must say, even the whole of this
August House, to work in concert of correcting the wrong that has been done to
us Sarawakians.
20. When
the Federal Government has failed to deliver satisfactorily the services that
they have promised us, what can we do? We have pleaded with them, but failed.
They have used all kinds of excuses to justify their poor actions. They have
used all kinds of administrative tricks to delay the disbursement of funds to
Sarawak and caused us to have insufficient time to complete our projects, and
then used that as another excuse for giving us lower allocations.
21. Against
all these forms of political and administrative sabotage, invisible but real,
Sarawak has no choice but to challenge them to do the right things, and then to
do what we think is fair and due to us.
22. I wish
to reiterate here that in seeking autonomy, Sarawak is not seeking to leave
Malaysia. Sarawak will continue to coexist and cooperate with Malaya and Sabah
under the umbrella of Malaysia. We are happy to be in Malaysia. What we are not
happy about is the nature of our current relationship which we feel has
deviated from the original spirit of the agreement to form Malaysia as
encapsulated in the Malaysia Agreement of 1963. We wish for a real positive
dialogue and resolution of our discontent.
23. I am
glad that with the passing of the motion in this August House on the
establishment of a Consultative Committee, it will provide us the platform to
present our submissions on the Malaysia Agreement 1963 to the Steering
Committee formed by the Federal Government. The Consultative Committee is
important because it is the think tank for the Sarawak representatives to MA 63
Steering Committee, the mouthpiece as well as champions for the people of
Sarawak.
Policy for Sarawak
Autonomy
24. The
call for Sarawak autonomy is in itself a major move. But what do we mean when
we call for autonomy? There are three (3) major policy calls:
25. The
first policy call is the development of a Sarawak-centric economic and
development policy. This means that Sarawak is no more a resource-rich state
for Putrajaya to tap to develop the Peninsular, but for Sarawak to use our rich
resources to build our economy that is integrated in our value chains. We will
develop our hinterland, build our townships and export centres, create a modern
network of transport and logistics, and work with our immediate neighbours on
international trade.
26. The
second policy call is the devolution of power. This means that we want to have
a Sarawak-centric policy on education and public healthcare, which could even
be extended to security and law and order. These are areas which are in the
Federal List of the Malaysia Constitution but which the Sarawak Government
feels that more could be done and done better, in the interests of Sarawak.
27. The
third policy call is to look critically at the financial aspect of the
Federation. What is the advantage to Sarawak from the current arrangement of
the Federal Government collecting revenue from Sarawak, and then allocating
resources in areas which may not be wholly suitable for the needs of Sarawak?
Is there any benefit to Sarawak from this arrangement? Are there alternative
arrangements in financial matter for Sarawak to relate with the Federal
Government?
28. These
three (3) broad policy areas should occupy all of us as we proceed to deal with
Sarawak autonomy, devolution of power and their financial implications.
29. In
short, we do not want to be short changed anymore. We cannot be any longer
subject to Federal policies and decision when it comes to delivery and
implementation of our projects and services to the people of Sarawak. We want
full autonomy in the delivery and implementation of our projects and policies,
as the old, more than half century model have not worked for Sarawak. No More.
Enough is enough.
Anak Sarawak
30. In
Sarawak, we have Malays, Dayaks, Chinese, Indians as well as at least 26
different ethnic groups among our indigenous people. We are all Anak Sarawak.
Although we are only 2.8 million people in number, our small population has the
beauty of creating among ourselves a warm-hearted in the way we treat each
other, such that we are all like members of the same family, regardless of our
race and religion and region.
31. Sarawak
has our own unique brand of humanity which only those who are born in Sarawak
can truly understand. It is as if there is a common Sarawakian spirit pervading
all of us, and among all of us, who are born in Sarawak. We know that there are
also many true friends of Sarawak who were not born in Sarawak but who have
embraced Sarawak as a home for them. To them, we as Sarawakians welcome you
with all our hearts, because they stay here to contribute to our small but
vibrant Sarawak society and culture in a positive and encouraging way.
32. There
are unfortunately those among us Sarawakians who, in pursuit of their ambition
for power, discard their loyalty to Sarawak and open a back door for our
enemies from among our so-called “friends” to enter into Sarawak politics.
100% Sarawak-based
Parties
33. In this
regard, it may be urgent and important that we encourage the formation of new
opposition parties that are truly Sarawak-based and who are not affiliated in
any way to non-Sarawakian or foreign political parties to participate in
Sarawak politics. For us, GPS, we are truly Sarawak based party and helmed for
only Sarawakian.
34. We need
to garner more educated and clever young men and women to be involved in
politics so that our political future may be strengthened against incursions by
foreign interests. Today, we have no 100% Sarawak-based opposition parties.
Pakatan Harapan Sarawak is only the Sarawak chapter of the national Pakatan
Harapan which is based in the Peninsula Malaysia and with leaders from
Persekutuan Tanah Melayu. PH Sarawak has very little say over national policy
on behalf of Sarawak. We have learnt from our history the danger of Sarawak
parties being too closely aligned with Peninsula party such as to be
subservient to the national politics. This is one loop-hole in such national
party concept. Sarawak do not want Sarawak chapters of national parties to take
up positions of political power in Sarawak. Neither do they want
non-Sarawakians to influence Sarawak behind the scenes. In this context of PBB,
we have all along objected to UMNO spreading its wing to Sarawak and this will
remain our policy.
35. I am
therefore not wrong when I bar these non-Sarawakians from entering Sarawak when
I know that they could be here to stir up sentiments and emotions that will
destroy the harmony and split the unity of the Sarawak people. The risk of
disruptive elements to our peace and harmony is one good reason why I will not
relinquish the right of Sarawak to control our immigration policy.
36. As I
have said, we shall debate on ideas and policies, but we shall not question the
right of each of our communities their unique identity, culture and way of life
because they define their own intrinsic values which are rich and precise to
the Sarawakian identity.
Increasing Sarawakian Population
37. It is
therefore in no small regard that I have proposed the encouragement of
Sarawakians to have more Sarawak babies, whether at home or abroad, so that we
have many more strong and clever Anak Sarawak to defend our homeland. It is our
strategic national interest that we encourage the growth of the population of
Sarawakians in Sarawak. I have also announced the RM1,000 endowment fund for
every Sarawakian born, regardless of ethnicity, religion and social status, as
of the first day of next year in be invested in a fund and the amount can only
be taken on their 18th birthday firstly for their education and ultimately we
hope will encourage the increase the birth rate of Sarawak.
Autonomy and
Finance
38. When we
talk about autonomy, we are talking about devolution of power and its financial
implications. We are not foolish to accept political and economic autonomy
without properly looking into the finance aspects. Autonomy means access to our
financial resources and spending them according to our goals.
39. The
original financial plan for Malaysia is that Federal takes the income and other
tax revenue from Sarawak and spends on Sarawak on matters of national interests
such as law and order, security, education and public health. Along the way,
Federal has also taken away our rights over our oil and gas as well as deep-sea
marine fishery resources. As a result, much of Sarawak is under-developed and
we have to rely on the exploitation of our land-based resources for our own
development, leading to unwanted environmental issues.
40. On such
serious matters, Pakatan Harapan Sarawak had the audacity of making a
pre-election offer of 20% oil royalty and 50% of all taxes collected in Sarawak
be given for the Sarawak Government to spend on education and healthcare. The
20% oil royalty was and is our demand, and not a gift from them. Furthermore,
they do not even know how to define the oil royalty properly. On income and
other tax revenue, in fact we would insist on 100% of the revenue from Sarawak
be returned to Sarawak for our government spending, not just 50%.
Economics Of Oil And Gas From Sarawak Perspective
Tuan Speaker,
41. On the
imposition of State Sales Tax on petroleum products, I would like to thank the
Federal leaders on their views. I respect their views and concerns. However, as
I have mentioned several times, the imposition of sales tax is the State
legitimate power as enshrined under the Federal Constitution. Therefore, this
decision ought to be respected.
a) Revenue
Contribution From Oil And Gas To Federal Government
42. Now let
me elaborate on the economics of oil and gas from Sarawak perspective.
43. It
cannot be denied that the Federal government, since the enforcement of
Petroleum Development Act, 1974, has gained tremendous financial benefits from
the production of oil and gas from Sarawak. These benefits are derived from the
receipts of:-
(i) Tax
from Petroleum Income;
(ii) Tax
from Corporate Income;
(iii) Dividend
from Petronas and associate companies;
and
(iv) Royalty
44. The
combined financial benefits made up to more than half of the share of revenue
from oil and gas. One can easily compute, the huge financial benefits gained by
the Federal government as well as Petronas over the past 42 years and
contributing to the prosperity of Malaysia.
b) Revenue
Contribution From Oil And Gas To State Government Of Sarawak
45. In the
case of the State of Sarawak, the only revenue contribution from oil and gas is
a mere 5 percent royalty and dividend from our investments in MLNG. Over the
past 42 years, revenue from the 5 percent royalty to the State amounts to only
RM33.5 billion. This quantum of revenue from oil and gas is rather
insignificant as compared to the financial benefits received by the Federal
government. As such, we have not been able to enjoy fully the benefits from oil
and gas resources extracted from our land.
At this juncture, it has to be noted that last week it
was reported that Petronas will give a one-off dividend of RM30 billion from
its reserves to the Federal Government. It takes Sarawak 42 years to accumulate
RM33.5 billion financial benefits from its oil and gas. What an irony!
c) Imposition
Of State Sales Tax
46. The
State government’s decision to impose 5 percent sales tax on petroleum products
is conferred by the Federal Constitution as in Schedule 10, Part V, Section
7. Hence, it is constitutionally
legitimate for the State to impose State Sales Tax.
47. The
State Sales Tax Ordinance 1998 allows the State to impose sales tax on goods
and services and is applied on sale value.
48. Under
the broad category of taxable petroleum products, the first, being crude
petroleum is predominantly exported from the State. For the information of this
august House, the crude oil extracted from Sarawak is of premium grade i.e.
light and sweet crude which are for export and fetch premium price.
49. The
second major category of the taxable goods is natural gas which is
predominantly sold to LNG plants for processing. As for the other categories,
namely liquefied natural gas, chemical based fertilisers and gas to liquid
products such as kerosene, naphtha, and wax are also mainly for export.
50. I wish
to make a clear and well understood by everyone that any of these petroleum
products that are consumed locally are not significant in volume. Furthermore,
these petroleum products that are to be sold locally shall be exempted from the
sales tax.
Tuan Speaker,
51. The
imposition of sales tax on petroleum products is upon careful study and
thorough analysis and I would like to give assurance that it will not burden
our people as it will have no impact on the cost of living. To the business
community, the imposition of sales tax on petroleum products will have no
impact on the cost of doing business in Sarawak contrary to the ignorant
opinion of some of the Members from Pakatan Harapan.
52. Let me
quote an example, when the sales tax was imposed on crude palm oil and crude
palm kernel oil, it did not lead to the increase in the price of cooking
oil.
d) Industry
Players In Oil And Gas
53. For the
industry players in the oil and gas related business, the imposition of sales
tax is the right of Sarawak that ought to be recognized.
54. In
respect of the concern that the imposition of 5 percent sales tax will impact
Petronas financially, the Federal government has the power to review the rate
of Petroleum Income Tax on income of Petronas and other players in the
industry.
55. In
summary, the imposition of sales tax on petroleum products is on the same basis
as that of the Federal government exercising its right on the imposition of
Sales and Services Tax (SST) pursuant to Federal Constitution. Our effort to levy on sales tax is also in
the same spirit of the Federal government to strengthen financial
capacity. This is more so that Sarawak
needs more revenue to enhance its financial capacity to fund all the much long
awaited and needed basic infrastructure and amenities for the well-being of our
people. We have been deprived from enjoying better quality of life for more
than half a century despite the fact that the State of Sarawak is the biggest
oil producing State in Malaysia. What an irony! Therefore, it is time for us to
take control of our own destiny and boldly move on with our development agenda.
Federal
Development Spending in Sarawak
56. For the
record, in the 53 years since the First Malaysia Plan in 1966 to 2018, the
total cumulative Federal development allocation for Sarawak was about RM79
billion or a meagre 7.3% of the total cumulative allocation of RM1.1 trillion
for the whole of Malaysia. During that same period, the Sarawak Government
allocated RM80 billion for development spending within Sarawak.
57. The
Malaysian Budget 2019 on 2nd November announced two weeks ago an allocation for
Sarawak to RM4.35 billion for 2019, which was marginally larger than for
preceding years.
58. This is
a major disappointment after the big pre-Budget announcement by Pakatan Harapan
Sarawak, a week before, that the allocation for Sabah and Sarawak would
increase from 25% to 30% of total allocation in the Malaysian Budget. In fact,
the allocation to Sarawak is only 7.9% for 2019. This is a shameless lie by
Pakatan Harapan Sarawak to falsify and misled Sarawakians. It has also defended
the cancellation of many projects for Sarawak on account of not being budgeted
for, while the Malaysian Budget was being prepared. It is clear that Pakatan
Harapan Sarawak lies and they have no say in the Federal Government.
59. This is
why I have resolved that we shall trust only ourselves to undertake
Sarawak-centric policies which are good for Sarawak. We must be prepared to
chart our own future for the sake of our children and grandchildren. We in
Sarawak have to decide our own fate. Only Sarawakians can take care of Sarawak.
60. It is
for this reason that I announced a record Development Budget of RM9.1 billion
for 2019 for Sarawak out of our own resources on the first day of DUN. It is
time that we seriously begin to develop the infrastructure of our economy for
future growth based upon our own and foreign investment, hard work and
ingenuity of our people.
Sarawak-centric
Economic Policy
61. We have
to develop Sarawak-centric economic policy. This means that we must have a
strategy to develop our hinterland and our natural resources, as well as to
develop an efficient network of transport and logistics. Sarawak has always
been an international trading nation and we shall develop our economy for
efficiency and international trade.
62. We have
in the past developed our transport and logistics for the exports of
unprocessed natural resources, particularly, oil and gas, timber and palm oil.
We must now build a new network of transport and logistics for the production
and export of agriculture food production, agricultural processing, and
services for international trade including finance.
Rural Development
in Sarawak
63. Rural
development in Sarawak is probably one of the most challenging areas to
properly develop. The greatest challenge is the creation of economic value out
of the rural resources. Most of the rural resources have been used by our
indigenous communities to sustain their traditional ways of life. Modern
education has attracted rural youth to migrate to urban centres in search of
advancement and the modern way of life, thereby eroding the demography of the
rural population. There appears to have some kind of stable of symbiosis
between the rural and urban population, whereby the youth makes money in town
and send some to their parents in the kampong and longhouses, while they carry
on maintaining their traditions. That is why we want to focus on rural
development so that our rural areas can be modernise and become new towns when
the youth can return to work.
64. In
recent decades, globalisation of the world has entered into the rural interiors
such that the previously isolated rural communities are now in touch with the
latest public issues around the world, including the rights of indigenous
peoples and the struggle for the protection of the natural wild environment.
65. This
provides an avenue for the opposition political parties to enter the heartland
and bring disquiet to the hearts of our indigenous people. I think these are
the signs of the times and I am not going to stop that. Instead, if the rural
people want change, I shall help you to bring about the change that you want. I
am always, first and foremost, an Anak Sarawak who is the Chief Minister of all
Sarawakians.
66. Let us
not be taken advantage of by non-Sarawak political parties in Sarawak politics.
How can Peninsular political parties help the indigenous people of Sarawak when
they cannot help the Orang Asli to enter the mainstream?
67. I would
not be the one to prejudge what our indigenous communities really want.
Instead, I choose to listen to your leaders and I response to their requests
accordingly. This is why I have approved allocations amounting to RM6 billion
in this Budget for all the requested basic infrastructure and amenities across
the whole of our interior and hinterland from Lundu, Serian, Betong, and Kapit
to Baram and Limbang and Lawas.
68. When
water, electricity, road and IT connectivity is developed, the costs of doing
business will fall and they will open greater economic opportunities in the
rural areas from which local communities can organise among themselves and
their community leaders concerning production, harvesting, processing,
marketing and sales and exports. In other words, they will open up activities
across all economic sectors including agriculture, manufacturing, finance and
services.
NCR Perimeter
Survey
69. The
perimeter survey of the NCR land is an important milestone for the indigenous
communities of Sarawak. It is very difficult for individuals to accurately demarcate
the boundary of their individual lots, but not impossible to be able ascertain
with some satisfaction on all sides the overall boundary for each respective
whole community.
70. The
rights to NCR land are implicit in the perimeter survey of the NCR land.
Without recognising those rights, there would have been no perimeter survey.
Since the Federal Government has refused to continue with the perimeter survey,
the Sarawak Government will pay to get this survey job done quickly.
71. The
rights to land are an area which is flawed with intricate difficulties.
However, the value of a piece of land is derived from the value that can be
derived from output of that piece of land. In the middle of the jungle, that
piece of land may have little economic value. Worse still is a piece of land
that has been carved out from the general market whereby the number of buyers
is severely restricted. In that smaller market, the value of the restricted
land is sharply reduced. To derive great economic value from land, there must
be economic activities to drive economic value and an open market where the
enlarged demand will fetch the higher market price.
72. It is
for this reason that I have as much emphasis on building basic infrastructure
in the rural areas so that the increase in economic activities will drive
higher income for the rural people.
Businesses and
Youth Entrepreneurship in Sarawak
73. I
believe that when the government spends, the benefits will spread not only to
the project sites intended but also to all the urban centres where most of the
talents are. There will be a need for professional services of all kinds
including engineering consultancy services, transport and logistics for the
import of building materials, hotels and beverages including IT services.
74. I know
that there is a problem with getting enough qualified professionals who are
familiar with the peculiarity of the Sarawak natural terrain, when we are
implementing project which may be several times our normal implementation
capacity. Our qualified professionals with local knowledge will therefore have
to work doubly or triply hard and if need be with outside professionals so that
the efficiency of implementation of projects in Sarawak will provide for our
people a platform for them to leverage and expand their businesses.
Technology and
Research to spur State Economy
75. It is
important that if we want to create good jobs for our young talent, we must be
prepared to be engaged in technology and research to spur our economy which we
are trying to modernise autonomously.
76. On 1st
September 2018, I announced the postponement of the proposed Kuching light
rapid transit (LRT) project in order to prioritise the development of basic
amenities for our rural communities in Sarawak.
77. In
recent weeks, however, I have received numerous requests from city councillors
and members of the public to reconsider reinstating the LRT project as traffic
congestions on some streets and roads are very heavy. As a result, it is
proposed that we consider exploring the development of certain needed segments
of the LRT system.
78. The
Kota Samarahan-Kuching route may require urgent consideration. There are
complaints that the Kota Samarahan-Kuching roads are congested everyday
especially during peak hours and as early as 5 o’clock in the morning.
79. I have
been given the assurance that the proposed Kuching LRT system will be based on
the latest elevated rail technology which has a much lower capital cost when
compared with elsewhere in Malaysia. Furthermore, part of the capital cost can
be offset by gains from real estate appreciation around the proposed routes and
transit-oriented development (TOD) which can also provide affordable housing
and modern urban development within an 800-metre radius of a transit stop, or about
10 minutes’ walk.
Tuan Speaker,
80. I fully
acknowledge the concerns of a number of Ahli-Ahli Yang Berhormat on the issue
of connectivity which indicates that the demand for digital technology is even
more pressing now.
81. Under
the Sarawak Digital Economy Strategy, the Sarawak Government is planning to
build and commission 600 towers throughout Sarawak by 2020.
82. The
tender for building the first 300 of these towers was opened to local Network
Facility Providers (NFP) and was closed on 12th November 2018. The locations of
these towers have been chosen based on the critical needs of areas and their
ability to act as collector and intermediary to other towers in the rural
areas.
83. The
next phase of the plan will be to increase coverage and to penetrate deeper
into rural areas. For this, another 300 towers will be built to achieve mobile
coverage for 99.9% coverage of populated areas in Sarawak.
84. We
expect to see an unrestricted choice of preferred Mobile Network Providers for
the general public throughout Sarawak of affordable and quality
telecommunication and broadband access.
85. As we
construct more telecommunications towers near residential areas, there is
public concern over electro-magnetic frequency or EMF radiation. This issue has
already been recognised and taken into consideration by the Sarawak Multimedia
Authority (SMA) in its Telecommunication Policy In Sarawak which governs the
construction of telecommunication towers. On this highly technical issue, it is
important that concerns are raised based on facts in order that our Digital
Initiatives are not delayed unnecessarily by misguided fears.
86. The
current hydrogen production facility being built by Sarawak Energy and the
purchase of the hydrogen buses are only pilot projects for research purposes to
study on the application of hydrogen technology. The cost of setting up the
pilot facility to power hydrogen fuel-cell buses is about RM15million while the
cost of three units of hydrogen fuel cell buses is currently under negotiation by
SEDC.
87. Hydrogen
is produced by water electrolysis technology to split water into hydrogen and
oxygen using electricity from renewable energy (hydropower). The fuel cell
system powers the hydrogen bus electrical system, producing a clean byproduct -
pure water. Hydrogen powered buses or fuel cell electric vehicles (FCEVs) are
generally lighter with smaller batteries than electric buses. FCEVs can be
refilled much faster and have longer driving range per fill and preferred for
commercial vehicles such as buses and trucks.
88. FCEVs
are currently at the demonstration stage with growing deployments in the next
10 years worldwide. The United States has deployed more than 3,000 FCEVs.
Europe deploy hydrogen vehicles for taxi fleet in Paris, City Bus in UK and
pilot train project in Germany. In Asia, China is aiming to deploy 2000
hydrogen buses in the near future. In Japan and South Korea, Toyota has
introduced Mirai, Honda Clarity and Hyundai NEXO.
Kuching as a Financial Centre to Support Our Economy
89. One
important aspect of our policy for Sarawak is the development of Kuching as our
financial centre. Sarawak used to have our own Sarawak-based banks, notably,
Bank Utama, Hock Hua Bank, Wah Tat Bank. As a result of consolidation of the
banking industry in 2000, all our Sarawak banks were eaten up and disappeared.
Today, there are eight Malaysian banks of which four are big financial
conglomerates among 26 commercial banks operating in Malaysia. Sarawak is now
being served only by branches of KL-based banks which tend to see Sarawak only
as a small market for loans although a big market for deposits. We wish that
they develop strategies for funding Sarawak businesses, understand the local
environment and more prepared to take reasonable risks to nurture local
businesses.
90. There
is a need for Sarawakian banks to help develop businesses. DBOS, the
Development Bank of Sarawak is only a development bank which cannot takes
deposits from the general public and our current purpose is only to help
redirect Sarawak government deposits back into the Sarawak economy through
infrastructure development spending for the purpose of building up the capacity
for growth of Sarawak for future growth. That future growth will need serious
business financing to help the local private sector to develop and grow. In a
way, the inability for small local enterprises in Sarawak to grow is due to the
absence of small local banks to help to nurture and finance them. The focus of
big banks is big businesses, and the focus of small bank is small businesses.
We want more small local Sarawak banks to be established to assist our small
business.
91. I hope
Bank Negara Malaysia can look into the needs to issue at least 3 new banking
licences to be established by the private sector in Sarawak. These could be
ordinary commercial banks with boutique functions to help budding businesses to
conquer new areas of growth in the Sarawak economy.
Challenges for
Project Implementation
92. The
projects I have announced cover a wide scope involving a lot of money. These
projects are creating business opportunities for everyone to share. All the
people involved in implementing the projects must be technically competent and
professional so that the projects will not fail. We may even need to
professional Sarawakians overseas to come back participate in our project
implementation and consultancy services.
93. My
major focus now is on project delivery. I have been given plenty of assurances
by our departments that all projects will be implemented successfully. To
double that assurance, I allow departments and agencies to hire qualified
professionals they need on short-term service contracts.
On State Administration and Civil Service
94. It has
been seen and heard that our so call ‘friends’ on the other side are using
scare and fear tactics on the administration of Sarawak by continuously
questioning the government and insinuating that the government is corrupt and
not transparent.
95. Making
continuous erroneous allegations and insinuation of corruption on me, my Ministers
and the State Civil Servants without any proof or substantiation is to create
the perception to the public that there is something wrong with the State
Government. When they repeat such allegation many times, they are hoping that
the people will believe in their stories and will vote against the government.
When I took over as the Chief Minister, we had an Integrity Pledge witnessed by
Minister in the Prime Minister's Department and Head of Malaysian
Anti-Corruption Commission (MACC).
96. We are
not stupid and do not fear this tactic of the opposition. Ever since (PH)
Pakatan Harapan took over the Federal Government they have harboured on
corruption as a way to bring down leaders. We are not afraid of such tactics
and we are ready to face on any issues that the opposition raised to us without
fear or favour.
97. We are
a new GPS (Gabungan Parti Sarawak) Government whose policy is to focus on
development both rural and urban and to provide service to the rakyat. We will
never err in our objectives and will not fail in our delivery. We will continue
to abide to the financial procedures as laid under the law and the financial
provisions of Treasury Instruction. Don’t ever question our integrity and our
sincerity. If our reserves remain so high, our Stable State Credit Rating are
A- by Standard and Poor and A3 by Moody’s Investors Service and we have
received Clean Certificates for Public Accounts Management by Auditor General
for 16 consecutive years, is that not a good testimony of prudent financial management,
good governance and excellent State Administration and Civil Service. There is
no other state in Malaysia or even the Federal Government having recorded such
excellent achievement. To further enhance our excellent achievement and good
record of governance I will include The Auditor General to sit in all our
project award committee under State Tender Board chaired by The State Financial
Secretary. And I will also invite SPRM (Suruhanjaya Pencegahan Rasuah Malaysia)
to attend our State Tenders Meetings.
98. I want
to repeat again to the members of the opposition in the August House. If you
wish to challenge us, challenge us with facts and not simply create perception
to the public and make character assassination. That is cheap politics. I want
to call on all Sarawakians not to fall prey on this cheap politics of the
oppositions. Their objectives are to bring down the government using perception
and not using facts because they do not have the facts.
99. I am
not governing the State for my own personal benefit. This is about our State
and our people and our future. This is not the game of cards and I will not
allow this State to be destroyed by cheap politics. Only the State Tenders
Board and The State Cabinet decides on projects to be implemented and not by
any government heads. The State Secretary, The State Financial Secretary, The
State Attorney General, Permanent Secretaries and Head of Departments and their
officers and the Civil Servant carry out The Cabinet decisions and directions
prudently and effectively. The Chief Minister’s Department is headed by The
State Secretary and assisted by three (3) Deputy State Secretaries and nine (9)
Directors heading respective Units. Their tasks are well distributed amongst
the officers. The State Secretary, State Financial Secretary, State Attorney
General, Permanent Secretaries and Head of Departments all sit in Government
Boards or GLCs (Government Linked Companies) or other government related outfit
as directed by the government and a number of their memberships are statutory
requirements provided under the various ordinances. They are all governed by
the respective Boards. Their role is to safe guard government interest. In
their absence they are represented by their Deputies or Directors. On the subject related to the roles and
responsibilities of Ministers, all the ministerial matters are decided and
implemented by the respective Ministers and their Permanent Secretaries and not
anyone else.
100. All the
State Head of Departments and Agencies and the Civil Servants serve the
government of the day and they carry out their duties as directed by the
government. One must understand in the running of government, one must know the
procedures of administration, their roles, area of jurisdiction, limits of authority,
statutory requirements, the General Orders and Treasury Instructions and
protocols and many more before making accusation against the government system
of administration. The appointment of The State Secretary, The State Financial
Secretary and The State Attorney General is at the discretion of the government
as provided under the State Constitution. It is not for anyone else including
themselves to decide on their tenure. We in the Cabinet are fully satisfied
with their performance and they have done their job excellently with integrity
and efficiency.
Bonus
101. For the
hard work and dedication of the Sarawak Civil Servant throughout the year, I am
glad to announce a one and half month bonus of their basic salary or a minimum
of RM2,000.00 to be paid by end of December 2018.
Conclusion
102. This
Government of Sarawak shall deliver to the people of Sarawak at all costs and
no expense spared. Our people have been left too far behind, and we must catch
up. If the Federal Government will not help us, we will help ourselves. How do
we fund it? By hook or by crook, as they say in English. I will exhaust all
avenues to exercise our rights to deliver to the people of Sarawak.
103. I must
shall a big “thank you” to every Honourable Member of this August House for
speaking as one voice on the concerning the Consultative Committee regarding MA
63 when the interests of Sarawak are at stake. This is a very good sign. Let us
therefore in this spirit of Anak Sarawak we conduct our politics and our
policies for the betterment of all Sarawakians. We shall debate and fight in
policies, but in the end only good policies will prevail to serve the long term
interests of Sarawak, regardless of which side of this August House we happen
to sit.
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