SMJ roadmap to chart new direction
Published on: Wednesday, January 19, 2022
By: Hayati Dzulkifli
.jpg "SMJ roadmap to chart new direction")
Hajiji (middle) listening to a short briefing by Deputy Chief Minister cum Agriculture and Fisheries Minister Datuk Seri Dr Jeffrey G. Kitingan (right) when he visited the Ministry’s booth.
Kota Kinabalu: The Sabah Maju Jaya (SMJ) Development Plan will be the driving force that will chart the State’s future in the next five years, in which its roadmap sets out a new strategic direction for Sabah’s economic development.Chief Minister Datuk Seri Hajiji Mohd Noor said the Gabungan Rakyat Sabah (GRS)-led State Government launched the SMJ, which is also a blueprint that is pivotal in bringing Sabah into the next decade, in March last year.
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He said the SMJ also aims to make Sabah prosper in three main thrusts, in line with its motto “Sabah Prosper”, because when Sabah prospers, everyone prospers.
“The SMJ Development Plan has three main thrusts. First, we focus on three main economic sectors, namely Agriculture, Industry and Tourism.
“Second, the State Government emphasises on human capital and wellbeing of the people. Third, the plan puts emphasis on connectivity, specifically green infrastructure and sustainability networks.
“The three sectoral economic thrusts will provide clarity on Sabah’s key focus areas, especially for businesses and investors,” said Hajiji, who is also State Finance Minister, in his keynote address when launching a two-day Sabah International Business and Economic Summit (SIBES) at Sabah International Convention Centre, here, on Monday.
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The State Government sponsored the inaugural summit and partnered with the KSI Strategic Institute for Asia Pacific for smooth implementation.
Some 400 people from the public and private sectors and dignitaries, including from overseas, attended the summit that touched on various topics covering the outlook of Sabah’s economy, the investment landscape to agricultural transformation and economic digitalisation, plus discussions and recommendations on vital topics to Sabah’s development and progress.
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“We start with the agriculture sector – encompassing crops, livestock and fisheries. It plays an important role having contributed 16pc to Sabah’s Gross Domestic Product (GDP) in 2019.
“We will put a heavy emphasis on building the value chain, specifically production, harvesting, processing and marketing.
“We are also focused on ensuring the agricultural sector is more competitive and sustainable. Thus, we are adopting sustainability practices, pursuing modernisation as well as creating an aquaculture industrial zone for Sabah,” he said.
Hajiji said the Sabah Government also intends to leverage technology and innovation to boost productivity and growth such as using drones to map and manage large swaths of palm oil plantations.
In fact, he said, there is an abundance of opportunities for investors in Sabah.
“For example, last year, the Linaco Group of Companies committed to invest in and develop large-scale high-yield hybrid coconut plantations, including downstream industrial development.
“The project involves an estimated initial investment of RM200 million and is expected to provide 4,250 job opportunities,” he said.
The next sector, he said, is the industrial sector where Sabah was once an industrial powerhouse in the 1980s.
The sub-sectors, he said, include mining and quarrying, construction and services with manufacturing being the biggest.
Overall, he said the industrial sector contributes to 8pc of Sabah’s GDP. However, this figure truly does not reflect the sector’s true potential.
“We were on the top and we aim to reclaim our spot. The State Government is fully invested in enhancing infrastructure, nurturing entrepreneurship, boosting investment and increasing competitiveness by leveraging advances in the Fourth Industrial Revolution (IR 4.0)
“As we speak, I am happy to share with you that on Tuesday, I will witness the signing of three Memorandums of Understanding for high-impact investments in agriculture, industrial and tourism.
“We are certain these new investments – including an innovative solar glass manufacturing and a large-scale herbs plantation, will assure Sabah of good returns whilst creating job opportunities for our people.
“We look forward to partner with more investors who are serious to do business with us. I assure investors, foreign and domestic, that the State Government will strengthen the implementation of these projects to ensure their success,” he said.
He said innovation doesn’t necessarily mean technological adoption because it takes many forms.
For example, Hajiji said the Industrial Tree Plantation or ITP is an innovative public-private partnership between the State Government and the timber industry to reduce and relieve pressure on tropical timber and forest.
“The ITP initiative has higher yield and shorter gestation period, which will be a game-changer to reviving Sabah’s timber industry to its former peak production of 12 million cubic metres in the 1980s.
“The private sector from the timber industry in Sabah will plant 80 million trees in 10 to 12 years with an investment of RM4 billion.
“Based on industry input, the establishment of 400,000ha of forest plantation can create potential employment of 40,000 skilled and semi-skilled employed in the upstream sector.
“Another 40,000 in the downstream forest industries will be created when planted timber starts to flow,” he said.
Hajiji said the ITP is projected to earn RM7 billion per year from the export of the timber products. In line with this, he said they must ensure that the timber industry is sustainable for future generations and for the industry.
The Sabah Forestry Department, as the conservator of the forest, is tasked with monitoring the implementation of the ITP to ensure environmental sustainability and governance of the forest, he said.
“The ITP, initiated by the Sabah Forestry Department, is not only an economic game-changer but crucial for conservation and sustainability.
“By planting trees in areas degraded by logging activities, it will go a long way in achieving a carbon-neutral nation by as early as 2050.
“This effort is in line with the Environmental, Social and Corporate Governance (ESG) and Sustainable Development Goals (SDGs). This is indeed an innovative initiative on the part of the private sector in the timber industry and I wish to congratulate them for taking the lead in making this bold investment,” he said.
Hajiji said high on the State Government’s agenda is the importance of green sustainability.
He said the green sustainability agenda is very important as it not only involves environmental issues and global warming phenomenon, but also an asset for economic development and state revenue.
“Sabah is a big region. As such, we have several key industrial zones. There are two free economic zones, namely the Integrated Logistics Services in Kota Kinabalu Industrial Park (KKIP) and the Transhipment Hub in Sepanggar.
“We also have the Sabah Oil & Gas Terminal (SOGT) in Papar and the Sipitang Oil & Gas Industrial Park. In addition, there is the Palm Oil Industrial Cluster (POIC) in Lahad Datu and the Furniture Park in Sandakan.
“Suffice to say, there are many opportunities to leverage multiple sectors across the State. The proof is in the pudding,” he said
In light of this, Hajiji said Sabah has secured RM4.4 billion worth of foreign investments as of June 2021, the third biggest in the country.
He said the State Government is confident that Sabah is and will be an attractive destination for investment.
“I have stressed from the onset that we want to be investor-friendly and we will ease all hurdles to facilitate all investments,” he said.
The third and final sector, Hajiji said, is tourism, the third largest sector for Sabah’s economy as it contributed more than 10pc of GDP with tourists coming from China, South Korea, Australia and Taiwan.
He said tourism is the State’s comparative advantage because Sabah has something for everyone from white sandy beaches and beautiful islands to rainforests and exotic wildlife. In short, he added Sabah is truly blessed with attractions from ocean deep to mountain high.
In another development, he said the Sabah–Sarawak 275 kV Interconnection Power Exchange Agreement supports the Borneo Grid and complements the Trans Borneo Power Grid Sarawak – West Kalimantan Interconnection Project, both vital to the Asean Power Grid project.
This, he said, would boost Sabah’s power supply system.
“A stable electricity supply in addition to water will directly increase both domestic and foreign investments, apart from supporting the growth of industrial manufacturing and upstream sectors as well as creating employment opportunities in the heavy and light industrial sector.
“Power and water supply are two key amenities the State Government is placing high emphasis on, including hydro power projects,” he said.
On connectivity, Hajiji said it goes beyond physical infrastructure as much of economic and commercial activities take place on the Internet.
He said the State Government is working hard to ramp up digitalisation efforts to fully leverage the potential of our digital economy.
In this respect, he said they are working closely with the Federal Government to ensure every citizen will have access to Internet connection regardless of where they live in Sabah.
“The Federal Government has allocated RM3.61 billion to provide wider coverage and better quality of broadband experience for the people, whilst preparing the country for 5G technology under the first phase of National Digital Network Plan or Jendela from 2020 to 2022,” he said.
According to him, the Federal Government has been very receptive to Sabah’s development needs as evident in the 12th Malaysia Plan which has committed to enhance Sabah’s development as one of the nine main focuses.
“We are confident that with the high level of Federal Government support, we can push ahead to achieve what we have set out to do.
“With Federal Government support and in a span of two weeks from December 7, 2021 the Commercial Collaboration Agreement (CCA) was signed between the State Government and Petronas which will give Sabah greater say, greater participation and greater revenue sharing in oil and gas related matters.
“Following this success, I launched the Sabah Gas Master Plan early this month on January 4, thus paving the way for collaboration between the State Government and Petronas to guide investments in Sabah’s natural gas resources,” he said.
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