Industry, business groups hail infrastructure devt allocation to spur economic growth
INDUSTRY and business groups in Sarawak have welcomed the national Budget 2021 allocation for infrastructure development in the state.
With the ongoing federal allocation for the Pan Borneo Highway project, the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) hopes that the highway will be completed on time within its stipulated five-year timeframe.
“We hope the Pan Borneo Highway will be completed on time, even though this is its third year and it looks like it may not be completed on time due to the Covid-19 pandemic and inclement weather this year. Also there is a problem with a shortage of workers in the construction sector,” said ACCCIS president Datuk Tan Jit Kee.
Tan noted that with specific allocations for the Pan Borneo Highway and other infrastructure development, Sarawak and Sarawakians would definitely benefit from Budget 2021.
“If we compare infrastructure development here to that in the Peninsular Malaysia, we are 10 to 20 years behind. If the whole
Pan Borneo can be completed on time, land can be developed and turned into plantations.
“It will also help tourism because tourists can use road transportation from Kuching to Sibu, Miri, Limbang, or Brunei. The project will also help logistics, as many goods, including agricultural products, are transported using roads. This will certainly be beneficial to the state’s economy,” he said.
Tan noted that there is funding for the development of Samalaju Industrial Park, which would also augur well for the state’s economy.
“Most products from Samalaju are for export. If more companies set up or expand their factories in Samalaju, their productions will increase and more can be exported.
“Then, we can impose sales tax on those products, which will increase the state’s income year by year,” he explained.
According to Sarawak Business Federation (SBF) president Datuk Abang Abdul Karim Tun Openg, a major project such as the Pan Borneo Highway would require experienced and financially strong companies with good track records to complete.
“Big projects need collaborations between companies as they cannot do it alone. Hopefully, local companies will play a major role. Nothing wrong if a local company wants to work with a foreign company but at the same time, the local people must get the direct benefits such as profit, experience and jobs,” he said.
Abang Karim said any development expenditure will benefit the state, and noted specifically that if Bumiputera contractors want to benefit from the budget’s allocation, they will need to participate directly either through tender or working with other contractors.
He believes that the government will give due consideration to Bumiputera companies bidding for project tenders.
“Hopefully the projects will be smoothly implemented. Once implemented, obviously the state will benefit,” he added.
Dayak Chamber of Commerce and Industry (DCCI) secretarygeneral Libat Langub said that the Budget 2021 reflected the Federal Government’s continued commitment to bring development to Sarawak.
However, in order to narrow the development gap with Peninsular Malaysia, he said Sarawak should be entitled to a bigger allocation than the proposed RM4.5 billion development expenditure next year.
“This is in view of Sarawak’s vast land size as compared to other states in Malaysia and the many urgent needs in implementing various infrastructure projects such as roads, water and electricity supply, which are lacking especially in the remote hinterlands.
“In the new normal practice where internet access is so vital, the said Budget’s focus on infrastructure development and upgrading of the telecommunications network is most welcomed and ought to be expedited in view of the unsatisfactory service and poor connectivity experienced by most rural communities,” he said.
Libar said DCCI proposed that for infrastructure development projects, the government should ensure that 30 per cent of the value of works be set aside for Sarawak Bumiputera contractors, including Dayak contractors, in order to develop a sustainable and competitive commercial and industrial Bumiputera community.
“Capable Dayak contractors, particularly those having Bumiputera Class F licences, should be given priority to participate in most of the infrastructure projects and programmes in the rural areas and also in the implementation of the Essential Goods Distribution Programme, LPG, and Community Drumming as they are familiar with these places and the people,” he added.
