It was a bright and sunny Tuesday in Kuching.
The weather could perhaps be used as a metaphor to explain the economic prospects in Sarawak, which is clearly ascending towards greater growth trajectory.
Endowed with rich natural resources, strategic location, rapid economic development and easy access to foreign markets, Sarawak remains attractive to local and international investors.
Even the International Trade and Industry Ministry recognised that Sarawak, apart from low-cost electricity, has a “good investment climate” especially in locations such as Bintulu, Sibu, Kuching, Kemena and Tanjung Manis.
The enticing factors had helped the state attract foreign investment totalling a staggering RM11.8 billion — the second highest in the country after Johor.
The investment came from 22 projects from various industries, which are expected to play an important role in stimulating Sarawak’s development and boosting the state’s economy.
It was not a surprising matter since Sarawak was one of the
top recipients of foreign direct investments (FDIs) in the country in 2014.
The FDIs received by the state stood at RM8.4 billion during the year, attributed to investments in energy-intensive industries in the 70,000sq km-wide Sarawak Corridor of Renewable Energy (SCORE), particularly from Japan, China and South Africa.
The construction sector in Sarawak is also expected to double its growth to 10 per cent, or RM2.6 billion, in the next four years.
Since 2010, the sector recorded a growth of 11 per cent annually.
The favourable economic outlook for Sarawak was recently supported by a rating agency, which attributed its findings based on the ongoing mega infrastructure and power projects, including the multi-billion Pan-Borneo Highway project that will propel growth in the state.
Apart from acknowledging that companies in the construction sector will benefit from the many high-impact projects over the next few years, RAM Rating Services Bhd also found that the power sector had helped stimulate economic growth in the state.
Yesterday, Yang di-Pertua Negeri Sarawak Tun Abdul Taib Mahmud officiated the state’s third and newest dam in Murum.
Costing more than RM2 billion, the Murum hydroelectric plant has the capacity to generate an additional 944 megawatts of power for the state.
By 2030, Sarawak’s real gross domestic product will hit RM118 billion, making it a regional economic powerhouse. SCORE alone would create a demand for more than 650,000 new workers.
While several economic indicators show things are looking great for Sarawak, more needs to be done to ensure the state could realise its vision of becoming a developed state in 14 years.
Chief Minister Tan Sri Adenan Satem, although optimistic, reckoned that Sarawak needed to achieve a growth rate of 6.5 per cent to be on a par with other states in the country.
It is an ambitious feat since the figure is about two per cent above the national growth rate target.
To attract more investors, Sarawak needs to prepare all physical and social infrastructures to meet the increasing demand by industry for the state to prosper.
This includes building new dams as revealed recently by state Assistant Minister for Public Utilities (Electricity and Telecommunications) Dr Abdul Rahman Junaidi.
He said the present number of hydroelectric plants was not enough to meet the demand from industry in the long-term for Sarawak to prosper.
“We are looking into plans to build more hydropower plants in the state, which will benefit the people and the business community in the long run,” said Abdul Rahman.
However, it will not be an easy task for the state government to build more dams. As it is, the proposed construction of the 1,000-megawatt Baram Dam was halted last year due to resistance from some quarters.
So, the question is where does the state government go from here before it can proceed with building more dams.
“The state government appreciates the concern raised by several quarters and non-governmental organisations over the environment, but rest assured that only projects with favourable environmental impact assessment will be given the go ahead.
“I am aware of the developmental philosophy of 3Ps — People, Planet and Profit. In trying to balance the individual requirements of the 3Ps, we must never put one of the ‘P’s at the expense of others,” Deputy Chief Minister Tan Sri James Jemut Masing recently said.
Adib Povera, born in Kuala Lumpur, raised in Perak, is NST Sarawak bureau chief. A nature lover, he never tires of discovering new sights in the Land of the Hornbills