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Saturday, November 16, 2013

“Implement Verbal Support of Sabah as Far East Hub – Dr. Jeffrey”

KOTA KINABALU - “The Sabah government should put its foot in its mouth and implement the proposed Plan of the Federation of Sabah Industries (FSI) (formerly Federation of Sabah Manufacturers – FSM) and turn Sabah into the “Hub of the Far East” as giving verbal support is of no use to the Plan" said Datuk Dr. Jeffrey Kitingan, STAR Sabah Chief, commenting on the report that the Sabah government supports the said Plan.

“The Plan by FSI to turn Sabah into the “Hub of the Far East” or so-called “Dubai” of the Far East is realistic, achievable and very good for the long term economic development of Sabah and welfare of Sabahans based on my briefing from FSM then” added Dr. Jeffrey.

Considering the overall benefits of the Plan, the Sabah government should quickly establish an Implementation Committee with the FSI and all stakeholders to put the Plan into action.

Sabah occupies a strategic and central location in the Far East and is nearer to Hong Kong, China, Taiwan, Japan, even to USA than Port Klang or Pasir Gudang in the Peninsula.  It makes no business sense for goods from and to these countries from Sabah to go through Port Klang first.

The detour to Port Klang costs more money and takes a longer journey time.   In a comparative study, it cost RM3,833 and at least 14 days to ship a container from Kota Kinabalu to Tokyo, Japan but only cost RM2,082 and 11 days to ship the same container from Penang to Tokyo.   A similar container from Kota Kinabalu to Auckland. New Zealand, will cost RM5,033 and take 28 days compared to RM4,197 and 20 days from Penang.

By shipping direct from Kota Kinabalu to Tokyo will render costs to be cheaper and faster thereby making exports from Sabah immediately more competitive as an investment and manufacturing destination.

Based on an analysis done on the revenues of local shipping companies protected by the unfair and crippling cabotage policy, Sabahans pay about RM1.2 billion a year based on 400,000 TEUs at RM3,000 average shipping costs per 20 foot container.   This works out to the equivalent of RM35 per Sabahan per month or RM175 per household of 5 persons.

RM175 per month may be loose change for corrupt leaders but it constitute 10% of the average Sabah household income of RM1,751 based on figures from the Ministry of Human Resources, Malaysia.

Therefore, it is imperative as part of the Sabah government initiative to make Sabah the Far East Hub, the Sabah government need to open up all the ports in Sabah to international shipping lines and bypass the Cabotage policy.   This can be done by a Sabah law passed in the State Assembly.

By opening up the ports in Sabah, it will be a boon for local manufacturing activities and immediately render Sabah exports more competitive in the global markets especially to Hong Kong, China, Taiwan, Japan and the USA.

From 2012, the income of shipping companies derived from the operation of Malaysian ships has been 70% exempted from tax and the income of any person employed on board a Malaysian ship is also exempted from tax.

These incentives should be extended to Sabah manufacturers and industries with exports.  They need to be compensated in order to enjoy the same shipping costs as their Peninsula counterparts.  Therefore, the Sabah government need to secure that Sabah manufacturers and industries with exports be granted a 100% tax incentive for their export value for a period of 10 years.

This move, amongst the various other measures that can be adopted to make the Far East Hub a success, will enable Sabah manufacturers and industries to re-capitalize and re-invest.  It will also lure potential investors to invest in Sabah.

According to the Department of Statistics, in 2012 the manufacturing sector in Sabah contributed only 1.9% of Malaysia’s GDP with only Kelantan and Perlis having a lower contribution.  Domestically, the manufacturing sector contributed only 7.9% of Sabah’s GDP compared to 27.0% in Sarawak,   31.5% in Selangor and 48.4% in Penang.   There is much room for improvement for Sabah’s manufacturing sector.

If the Plan to turn Sabah into the “Hub of the Far East” is implemented and Sabah promoted as a competitive and investment destination, there will be much needed economic spin-offs.  Employment opportunities will be generated, human capital development will be enhanced rendering no necessity to “export” our youths to the Peninsula and Singapore for factory jobs.

Only then will Sabah be an economic power house in line with the vision of the Sabah Development Corridor Blue Print 2008-2025.   The promotion of Sabah as the Far East Hub will grow and eventually contribute to Sabah’s and Malaysia‘s economic progress and development.

17 comments:

  1. wonder how much the ferderal had paid for consultancy in this gimick. Heard all these big talks before.

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  2. Untuk menghayati aspirasi penubuhan ESSCOM, rakyat Malaysia perlu juga meneliti perjalanan sejarah kaedah pengawalan sempadan AS-Mexico sepanjang 5,000 kilometer. Tidak keterlaluan jika diandaikan sejarah sempadan AS-Mexico ini adalah begitu selari dengan keadaan sempadan Sabah-Selatan Filipina.

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    1. tiada salahnya mengambil iktibar dan pengajaran dari negara lain untuk kebaikan negeri.belajar daripada strategi mereka menangani isu seperti ini.

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  3. Sebahagian besar wilayah di California, Arizona, New Mexico dan Texas adalah wilayah asal Mexico yang terpaksa diserahkan kepada AS mengikut Perjanjian Guadalupe Hidalgo yang dimeterai pada tahun 1848. Pada awalnya kawalan sempadan di antara kedua-dua negara tidak mempunyai kawalan yang ketat dan rakyat kedua-dua negara bebas keluar masuk.

    Sebab itu dikatakan komposisi penduduk keempat-empat negeri AS yang bersempadan dengan Mexico mempunyai pertalian persaudaraan yang rapat di antara kedua-dua negara dan senario ini adalah begitu serupa dengan keadaan di Sabah.

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    1. kedua2 buah negara yang bersempadan tidak mewujudkan masalah jika kedua2nya bertolak ansur dan sentiasa bekerjasama dalam soal apapun yang membabitkan mereka.

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  4. Kawalan keselamatan AS-Mexico mula diperketatkan pada era Presiden Ronald Reagan tahun 1980-an apabila masalah penyeludupan dadah menjadi meruncing. Walaupun berbagai teknologi canggih digunakan dan pembinaan pagar konkrit dibina untuk mengekang aktiviti ini, hanya kejayaan yang terhad telah diperolehi.

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    1. Sebab utama adalah kerana tidak ada koordinasi dan penyelarasan aktiviti agensi yang mengawal sempadan yang membuatkan segala usaha mendapat kesan minimum. Menyedari hakikat ini pada tahun 1994 Presiden AS pada ketika itu Bill Clinton telah melantik Alan Bersin sebagai Czar pengawalan sempadan AS-Mexico untuk menyelaras semua aktiviti kawalan.

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    2. kaji dan kenalpasti pelbagai aspek bagi mencapai kejayaan dalam sistem pertahanan ini.pelbagai strategi perlu dibentuk.

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  5. The initiatives in the GTP 2.0 are the result of several intensive engagements involving all stakeholders to ensure that the transformation plan is comprehensive, the report said.

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  6. The engagement process for the design and implimentation of the GTP Roadmap 2.0 includes an intensive six- week brainstorming session with key stakeholders to find ideas that best fit the overall theme of the GTP.

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  7. Maximus Ongkili melancarkan pusat pembangunan bercampur RM100 juta 1Avenue di Kota Marudu, yang akan membantu menjadikan Kota Marudu sebuah hub ekonomi di utara Sabah.

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  8. projek komersil dan kediaman ini akan menjadi pemacu utama usaha membangunkan daerah itu, sejajar dengan manisfesto pilihan raya beliau, “Transformasi Untuk Kota Marudu Yang Maju dan Berdaya Saing".

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  9. Kota Marudu mempunyai 384 sedia ada dan 165 lagi sedang dibina dengan 701 lagi sedang mendapatkan kelulusan pembinaan, sementara terdapat 536 rumah di kawasan bandar, 1,697 rumah sedang dibina, termasuk projek 1Avenue dan 616 lagi telah diluluskan untuk pembangunan dalam beberapa tahun lagi.

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  10. 1Avenue bukan hanya akan menampung keperluan bagi fasiliti komersil dan perniagaan di Kota Marudu, tetapi juga menyediakan kediaman, hotel dan sebuah panggung wayang.

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  11. 1Avenue oleh WK Majujaya Sdn Bhd itu akan terdiri daripada dua fasa dengan 296 rumah kedai dan pejabat, hotel tiga bintang pertama daerah itu dengan 160 bilik dan panggung wayang pertama di wilayah utara Sabah itu.

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  12. Pembangunan kediaman itu juga akan dilengkapi kemudahan gaya hidup moden seperti kolam renang, dewan pelbagai dan taman permainan kanak-kanak. Harga hartanah di Kota Marudu meningkat 300 peratus sepanjang lima tahun lalu, memanfaatkan ramai pemilik tanah.

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  13. Perkongsian dengan sektor swasta dan pelabur seperti WK Majujaya adalah penting dalam memastikan kita mencapai sasaran menjadikan Kota Marudu sebagai hub ekonomi utara Sabah.

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