Taib focused on uplifting the economy through a policy of industrialisation. He realised that Sarawak had to utilise the vast natural resources it was endowed with. In 1987, Taib established the Ministry of Industrial Development which, among other things, would formulate policies and strategies for industrial development, promote industrial activities, especially those using local resources and the formulation of strategies for the creation of a conducive investment climate.
Among the long list of portfolio investment priorities were resource based industries such as oil and gas as well as mineral-based, forestrybased, agro-based and bio-technology-based industries and for the non-resource-based industries like capital-intensive hi-tech and shipbuilding.
To ensure that the industrial programme succeeded, industrial estates and parks were opened to meet the respective needs of the various industrial sectors. For example, Tanjung Kidurong was designed to cater for the needs of petroleum, petrochemicals and heavy industries; Kemena, Tanjong Manis and Kuala Baram for wood-based industries; Sama Jaya Free Trade Zone (FTZ) for electronics and many other light industrial estates. Sejingkat is Malaysia’s first industrial park. Sarawak also began to offer generous incentives and special tax exemptions for investors.
OIL – FIRST SOURCE
OF POWER
On October 1, 1973, a simple ceremony was held on Canada Hill, Miri, the town where Taib was born, at which Shell handed over Malaysia’s first oil well dubbed, “The Grand Old Lady” to the Sarawak government on August 10, 1910.
Since then, oil has become the country’s most important revenue earner. In 1968, the oil industry moved offshore, marking a new era in Sarawak. With the discovery of the new oilfield off Miri, production increased dramatically. Today crude oil accounts for more than half the state’s total earnings. Petronas, the National Oil Corporation, which is centred in Kuala Lumpur has been entrusted with the responsibility of developing the petroleum resources.
On May 8, 2003, Dr Mahathir opened Bintulu’s RM1.6-billion Petronas LNG complex – the world’s largest LNG production facility at a single location – and announced that Petronas was another shining example of a vision realised, a national aspiration transformed into reality by a shared belief.
Taib in his speech said that Petronas had not only contributed towards the building of technical and management skills but also helped develop the oil and gas industry.
HIKMA had come of age.
FROM FISHING VILLAGE
TO BOOM TOWN
In the 1970s, the small fishing village of Bintulu, with a population of 7,000, became another major industrial centre when huge reserves of natural gas were found offshore, marking a new era in the economy of the State.
When Taib returned to Sarawak, Bintulu had grown into a bustling urban centre with a population of about 30,000. To speed up projects in the oil and gas-rich region, Taib took over as chairman of the Bintulu Development Authority (BDA).
A year later, Taib was talking about establishing a third industrial estate worth RM23 million. After putting his house in order, Taib invited foreign investors to Bintulu and said in his Foreword in the magazine, An Invitation to invest in Bintulu:
“Bintulu has the basic ingredients for commercial and industrial development and welcomes further foreign participation in its growth.” (NST, June 18, 1985)
By then, Bintulu had become the fastest growing industrial centre in the state. Some of the initial investments included the $7.2 million- LNG project, $737-million Urea-ammonia plant and the $560-million Bintulu deep-water port which served as catalysts for industrialisation.
As Bintulu grew from an old fishing village of 30,000 in the 1970s to a bustling metropolis of 150,000, the government decided to improve communications. A new airport about 28km from town was declared open by Prime Minister Dr Mahathir Mohamad in 2003, paving the way for wide-bodied aircraft to arrive in this busy oil town. This “international airport” will eventually provide direct connections to major business centres in the Asean region.
In 1989, Taib announced that the construction of the world’s first middle distillate synthesis (MDS) plant costing RM1.8 billion in Bintulu would help spur the economy of the town and help widen the state’s industrial base. He said that the project would provide at least 3,000 jobs and create other business opportunities for the people of Sarawak.
Despite the reservations that the project would be unable to take off, Taib was confident that the MDS plant would be a “valuable venture for the state and country”.
THRUST IN HYDROPOWER
To harness the State’s vast power resources, Taib’s government also proceeded with the 92MW Batang Ai hydroelectric dam in the Lubok Antu district. The Sarawak government’s first large hydroelectric project, launched in 1985, involved creating a 21,000-acre lake and the resettlement of 3,000 Ibans from 26 longhouses. A total of RM560 million was spent to build the dam which could provide electricity to the whole of the First and Second (Kuching and Sri Aman) divisions until the year 2020.
At the same time, the government was also planning to build the multi-billion-ringgit Bakun hydroelectric dam in Belaga. Like Batang Ai, there were protests. During a trip to Belaga in September 1985, Taib told the residents there that environmentalists were instigating them to reject the project without knowing the real benefits. He said that the project was aimed at opening up the region with better communications and uplifting the standard of living. Taib said: “It is apparent that this group want the Orang Ulu community to become a museum piece.” (NST, September 1, 1985)
In 1993, Prime Minister Datuk Seri Dr Mahathir Mohamad agreed to go ahead with the 2,400MW Bakun hydroelectric dam – about 178km away from Bintulu in the Belaga district. The project involved resettling more than 7,000 Orang Ulu natives from 15 longhouse communities living along the Balui River to the Asap-Koyan resettlement scheme about 40km away inland.
To date, almost RM1 billion in infrastructure has been poured into building the resettlement scheme and preparing the infrastructure for the dam. When completed in late 2007, the concrete-faced rockfill dam measuring 205m high (the second highest of its type in the world) will be Malaysia’s greatest engineering feat.
(To be continued)
