The Government is convinced that there is a lot that Sarawak can offer in the digital economy, such as the involvement of young talent in content development, the digitization of the market through the Internet and distribution of hubs and the hosting of server farms as a result of the availability of energy resources. Currently, Sarawak is taking a major step to push the economy one notch up the ladder by developing the digital economy as there is a need for capital to work with skills for the future development of Sarawak. However, the role of Sarawak Government, which is fully aware that the government should not be investing directly into the digital economy, principally because it is a fast changing environment and the casualty rate high, is to facilitate its development by the private sector. In as much as the government has always been supportive in building basic infrastructure for telegraph and motor vehicles, the government shall also be supportive in building the basic infrastructure for digitized data. With Sarawak going seriously into research and innovation, it is natural that the State should also be looking at sources of alternative energy.
The world has been focusing on fossil fuel in the last 150 years. There is now increasing concern of the impact of fossil fuel on the environment. The key word is now green energy. Chief Minister Datuk Patinggi Abang Haji Johari Tun Abang Haji Openg in his opening speech of the 4TH International Energy Week (IEW) 2018 at Borneo Convention Centre Kuching last Tuesday said obviously, Sarawak with abundant water resources from hydropower can look to hydrogen fuel cell and hydrogen energy as the greatest potential in transportation.
The re i s good s cope for development of green energy in Sarawak as the population is still small and it is timely to set up state water grid to distribute water initially from Batang Ai dam to the coastal areas and eventually the whole state. He has approved RM1 billion to learn and acquire greater international exposure through working together in the overall efforts to develop Sarawak into a new and modern digital economy to improve the wellbeing of the people.
A s Sarawak undertakes the transformation initiatives, it must also take cognizance of the new opportunities that can be found in this part of the world, which is an exciting world of change and opportunities. He said the world energy consumption is expected to rise by 28% by 2040, according to the International Energy Outlook report for 2017. Of this, 60% of the increase in demand will come from developing countries in Asia, which include China and India alone contributing to 60% of the increase. He believes fossil fuels will continue to dominate the energy use. The consumption of renewable energy will grow at a more modest rate of 2.3% per year in the medium term. Nevertheless, the tremendous demand for energy gives impetus to the search for greener sources of energy in order to be able to exploit the economies of scale presented by the demand side. Sarawak is an energy-rich economy. Oil was first discovered in 1910 and natural gas was first fully exploited in 1983.
Hydropower came into operations in 2011. The significance of hydropower for Sarawak is that, for the first time, Sarawak is able to use energy resources to power its own economic development. Datuk Patinggi Abang Haji Johari said the development of hydro power in Batang Ai and Bakun opens up a whole new range of opportunities in Sarawak, which has successfully acquired and gained the full control of Bakun hydro Dam from the Federal Government. He said with the acquisition of Bakun hydro dam and the management of resources, representing 70% of the country’s hydro potential deep in the interior, Sarawak is now the biggest power generator in Malaysia The Sarawak Cor r idor of Renewable Energy (or SCORE) was launched in 2008. There was initially a need to bring in anchor projects which are big enough to ensure the economic viability of the hydropower dams. To-date, the State Government has approved 22 investment projects in SCORE with a total investment of RM33.64 billion. These projects are expected to generate 17,000 employment opportunities.
Among the projects already in operation at Samalaju Industrial Park in Bintulu are OCIM Sdn Bhd, Press Metal Bintulu Sdn Bhd, OM Materials (Sarawak) Sdn Bhd, Pertama Ferroalloys Sdn Bhd, Sakura Ferroalloys Sdn Bhd and Elkem Carbon Malaysia Sdn Bhd. In addition, we have also developed key infrastructures including the Samalaju Industrial Port that will take us forward into the next phase of development. Datuk Patinggi Abang Haji Johari said there will be greater emphasis on downstream industries, which will create higher value-add in economic activities. As Sarawak has a small population of only 2.7 million people, the State does not have cheap labour. Instead, steps are being taken to place greater emphasis on higher value-added skills to work with capital-intensive industries.
Furthermore, this is critically important if Sarawak is to go anywhere achieving high incomes for the people. Datuk Patinggi Abang Haji Johari said the world is interconnected and digitized and the State must follow suit by being socially connected and work with up-to-date data and information. Sarawak has to live within the digital world and survive in the digital environment. He reiterated that improved connectivity is the foundation for Sarawak to progress. On this note, the State is happy that the Pan Borneo Highway project is currently being implemented. It will support the future development in Sarawak and closing the development gap between the rural and urban areas. He believed more socio-economic activities will be generated through this development, increasing market accessibility.
The development of Sarawak’s energy sector will also gain benefit from this project. Datuk Patinggi Abang Haji Johari said Baleh Hydroelectric dam, now being constructed, will be the backbone of transmission line to Samalaju Industrial Port with the aim to achieve the remarkable feat of having renewable energy up to 50% of energy consumption by 2050. He believed that Sarawak is arriving at the forefront of the digital age with the energy industry spearheading it ahead into the future with the many recent technologies and advancements. He reiterated the determination of the State Government under his leadership become part of the digital transformation, which will accelerate growth towards attaining the status of a developed economy towards the year 2030. As such, steps are being taken to enhance the education system in developing talents among youths and at the same time encourage the adoption of new ICT technologies and services including Artificial Intelligence and Fintech.
I will produce huge potential that will generate new businesses and services, providing high paying jobs for Sarawakians. In this regards, the State welcomes expatriates. It is prepared to look into employment laws to make it easier for expatriates to come and work in Sarawak. He pledged that Sarawak Government is pleased to provide continued support for the staging of the International Energy Week as it provides a platform for the energy and infrastructure industry to come together to examine issues. More importantly steps should also be taken to address challenges and at the same time explore many new business opportunities as they move into the digital age, which Sarawak is embarking on now. Johari believed the future outlook of the energy sector will transcend beyond the boundaries of energy resources.
For example, International Energy Week has grown in stature with encouraging response from both exhibitors and visitors. He is happy that the Expo has grown by 20% and has attracted exhibitors representing over 15 countries including India, Germany, Italy, Singapore, USA and our host country Malaysia. The Chief Minister is pleased to note that the Organizing Committee has managed to put together an impressive program for the conference, which has included many prominent speakers.
The organizers, sponsors, endorsers, moderators and speakers have contributed a lot towards making this conference a success. Johari called on delegates and exhibitors, those from outside Sarawak to stay a while longer to enable them to have a fruitful, enjoyable and memorable stay in Sarawak. He called on more Sarawakians to visit the Expo and the RECODA booth in particular, to see the developments and opportunities in SCORE.
