Understandably, the State Government must focus efforts in structuring and transforming the economy in a transformation from medium to high income economy, which is a more challenging phase of development, to attain the status of a developed state with high income economy by 2030.
Sarawak’s economic agenda of 2030 is not only to attain the status of a developed State but to emerge as the richest state in the country. Hence, it is progressively moving into top gear in development towards achieving the desired objectives.
The Yang di Pertua Negeri, Tun Pehin Sri Haji Abdul Taib Mahmud, in a rare interview granted to a local daily, believes even with the present premise with a population of 2.5 million, Sarawak can attain the status of a developed State by the year 2020, not so big a challenge. But that is not the end of the story as Sarawak must see and move upward with the use of local manpower.
He believes this is not going to be a big challenge because it cannot move upward using imported labor. The benchmark may be a challenge because the State cannot just move upward using imported labor to fill the bottom. That seems to be a practical solution.
Needless to say, the development ahead will require huge investment that necessitates concerted efforts among the State and Federal governments. There are still so much more that need to be done particularly in transforming the rural areas to catch up with the development in the urban area.
In this connection, the State Government will require all the necessary efforts of the Federal Government especially in providing good public facilities and infrastructure such as schools, clinics, hospitals, roads, bridges and water and electricity supplies in rural areas.
It is of critical important that the Federal Government must provide the necessary allocations to Sarawak to fund the much needed infrastructural projects such as roads, bridges, wharves and jetties, drainage, utilities, basic rural facilities and amenities, facilities for education and medical services and allocation to assist local farmers, livestock breeders and fishermen in rural areas.
The Federal Government, being led by the Prime Minister, Dato Seri Mohd. Najib Tun Abdul Razak, who is considered to be more sympathetic to the development requirements of Sarawak and Sabah, may accede to requests for more allocations to intensify development in order to attain the status of a developed State with high income economy by the year 2030.
Besides, the task of developing the State does not rest with the Government alone; every Sarawakian has an important role to ensure that the State will achieve the status of a high income economy. The commitment from all levels of society will give the State the necessary strength and tenacity to face the challenges ahead.
Understandably, the State Government, being a business friendly government, will emphasize on public – private sector partnership as a way forward in development towards the year 2020 and beyond. In this regards, the private sector is expected to show genuine interests to participate actively in the development of Sarawak ahead.
The State Government believes that the private sector must be further nurtured to take a larger role as the engine of growth as outlined under the New Economic Model. They must enhance their productivity and competitiveness.
Obviously, the State Government is confident that the private sector whether big or small, has the capability to work together with the State Government to achieve the development agenda which ultimately will benefit the people, state and country.
The State, with clear policy directions, strategies and objectives should be able to achieve the status of high income economy through implementing the economic transformation program.
The Chief Minister, Datuk Amar Abang Haji Johari Tun Openg, in the first 100 days in office, has already made landmark decisions, which most people have not expected him to do so in short period, to acquire Bakun Hydro dam from the Federal Government, to make an initial allocation of RM1 billion to develop the technology infrastructure as the prerequisite to digitalize the economy.
He has also approved allocations for the development of modern administrative complexes for the newly upgraded Serian division and Tebedu district. Generally, he will implement the people – centric policies of his predecessor, the late Datuk Patinggi Adenan Haji Satem which were given huge mandate in the 2016 State election.
Undoubtedly, Sarawak has achieved tremendous progress during the last 53 years of Independence through the formation of Malaysia. This is attributable to the services and sacrifices of the first generation of leaders, most of whom are no longer with us, and people as a whole.
Generally, the people can recall that the gross domestic product, the primary indicator of the State’s economic success was merely RM505 million in 1963 and in 2013 after 50 years of Independence it was RM108 billion. The per capita in 1963 was RM688 and in 2013 it was RM42,000.
Undoubtedly, the people, since Independence in 1963 have been enjoying the benefits of development. There were more people under – employment in 1963 than now. Generally, the people had to live from hand to mouth. They had to work first before they could have their breakfast.
Until the 70s, there were only 300,000 job opportunities but now there are more than 1 million in the State. By 2013 the rate of unemployment had dropped to around 4% only. As a consequence, the rate of poverty has been reduced from more than 60% in 1963 to around 2%. The household income in 1963 was only RM410 and now it is RM4,200 an increase of more than 10 times.
In the 60s and 70s, the market to promote growth of the economy was focused in Kuching, Sibu and Miri and negligible in other towns; generally, the situation has changed tremendously in rural areas.
In the words of the a former Chief Minister, the late Datuk Patinggi Adenan Haji Statem, Sarawak, from the backwater of forests, with GDP too ashamed to mention, with per capita too poor to mention, the GDP has become multiplied by leaps and bounds and the per capita has also multiplied by leaps and bounds.
The glorious success that Sarawak has been able to achieve during the last 53, lifting itself from the back water of development to become one of the fastest developing economies in the region, can serve as a strong foundation to turn Sarawak into a modern industrial State in the next 50 years.
The narratives are testimonies to the fact that the State government, with the support and co-operation of the Federal government, has been implementing development policies, strategies and programs, which sometimes differ from the rest of the country, in order to meet the local demands and situation and remain the integral part of the country that is actively moving toward greater equality.
Sarawak has planned for a more ambitious development plan in order to achieve greater progress and prosperity than what it has already achieved during the last 53 years. Now it is for the present and future generations to build on the success to ensure that Sarawak remains part of the big nation that is fully developed, industrialized and diversified in the economy in the next 50 years.
The State Government is implementing a long – term development program known as Sarawak Socio-Economic Transformation Plan (SETP) covering a period of 15 years from 2016 until 2030. The long-term program will be executed in phases starting with the current 5-year development plan. Its implementation will require about RM180 billion.
Sarawak is still lagging behind in terms of infrastructure development although a lot of efforts have been made to address the issue. For example, the rural areas are still largely deprived of basic needs such as roads, water and electricity supplies and accessibility to healthcare and education. About 49 % of the population, who still resides in rural areas, also deserves higher quality of life.
The Sarawak Socio-Economic Transformation Plan (SETP), considered the catch up plan for Sarawak to achieve the same level of development with the most progressive states in Peninsula Malaysia, is being formulated after having numerous labs and dialogues in order to understand better the problems, issues and needs of various groups.
Essentially, SETP is a comprehensive, integrated and balanced development program with the primary objectives to accelerate income growth and reduce disparity. The program, which covers all sectors of the economy, outlines various strategies, action plans and budgets to enable Sarawak to attain the status of a developed State with high income economy by the year 2030.
The current view is that for Sarawak to achieve a high income status by 2020, it needs to grow at 8.5 per cent in real GDP. With the 8.5 per cent growth rate, the Real Growth National Income per capita by the year 2020 will be RM50,600, about RM1,100 above the World Bank’s definition of High Income Nation.
However, the growth scenario is not possible taking into consideration the uncertainties in both the global and national economies. Sarawak has to be practical and realistic in projecting its economic growth for the future.
The State is projected to grow at 6.5 per cent per annum, a more conservative figure, through implementing SETP to achieve a high income status by the year 2030. This is far more realistic as compared to 8.5 per cent growth per annum if the State were to achieve a high income status by the year 2020.
The nominal Growth National Income per capita by the year 2020 is RM44,100, with a projected growth rate of 6.5 per cent per annum, which is still below the World Bank definition of a high income nation. However, by the year 2030 the nominal GNI per capita will reach RM82,600. This will exceed the minimum threshold of a high income nation at RM79,000 by the year 2030.
Essentially, Sarawak must focus efforts on creating high-income opportunities in new potential sources rather than diluting attention on marginal improvements in old industries. In this regards, the government ought to continuously broaden economic base and enhance knowledge and upgrade skills of manpower to be more efficient, productive and innovative In order to remain competitive.
The workforce, who must be agile and vigilant in facing emerging external challenges arising from global regional competitions and the increasing volatility in the world economy, must also develop a more pervasive culture of good governance and uphold the highest level of integrity.
Generally, the people should take great pride with the State for being able to achieve its present level of development as a result of the ability of the Government in managing resources and making continuous efforts to promote unity and harmony among the people comprising diverse ethnic and religious groups despite facing many challenges along the way. This reflects the resilience and strength of the people and the state’s social unity and political stability.
