FSI hopes for SICC, Pan Borneo Highway project success
KOTA KINABALU: The Federation of Sabah Industries (FSI) will work with the new Sabah and Federal governments to uplift the economy of Sabah and Malaysia to greater heights.
Its president, Datuk Mohd Basri Abdul Gafar, said this as he extends felicitations to the leaders of the new governments.
“FSI hopes that the Sabah International Convention Centre (SICC) will be completed this year in time to be operational early next year,” he said.
“This is vital to the success of FSI’s hosting of the Sabah International Expo (SIE 2019) next year with MICCI to promote trade, attract international participation and investment to Sabah.”
He said the Pan Borneo Highway should be realised as soon as possible to boost the economy of Sabah and Sarawak with better connectivity, lowering transportation time, costs and boosting tourism growth.
Basri noted that with the cancellation of the GST by June 1, FSI’s recommendation to lower the GST rate to improve business and socio-economic conditions may be realised soon.
FSI is ready to share its expertise with relevant new government ministries and ministers to plan and implement policies for the betterment of Sabah, and Malaysia as a component member country of BIMP-EAGA, Basri said.
In order to boost Sabah’s cheaper, more reliable energy supply from Sabah’s own gas fields that will benefit not only the business sector, but also the public, he hopes that the gas pipeline link to the east coast of Sabah from Kimanis planned will be implemented as soon as possible.
“This will help to boost Sabah’s industrialisation drive with the setting up of more industrial estate clusters in other towns and districts,” he said.
This is crucial to help to improve Sabah’s rather shallow industrial structure and high import propensities which suggest many possibilities for more import-substitution industrialisation, boosting employment opportunities with higher wage potential based on increased productivity.
FSI and related organisations call for consultation over government’s intention to review the minimum wage level which will have a major business cost impact on SMEs and microenterprises.
In view of reported review of policies and restructuring by the new government, FSI hopes that the suspension of the Cabotage policy by the previous Ministry of Transport will lead to its abolishment to be publicized widely, globally, to attract ships to use Sapangar Port as a “Hub of the Far East.”
FSI noted that statistics show a slight improvement in the number of freight liner ships calling at Sapangar Port since the suspension of the Cabotage policy, Basri said.
While considerable industrial development has taken place, the potential for further importsubstitution remains neglected in the past though imports grew rapidly since the mid-1980s and the economy industrial structure remained shallow due to market access and shipping costs.
The export-oriented industrial production needs to develop a far more integrated economic structure. Amongst the problems faced in the pursuit of industrialization, is import dependence, as well as high logistics and shipping costs, other than reliable and cost-efficient power and water supply.
While Sabah’s domestic intersectorial linkages are improving, it is crucial for cooperation between the government sector and private sector to assess what will enhance induced positive development, he stressed.
Sabah’s trade ratio to GDP that has increased steadily over the years, implied that Sabah is slowly integrating its economy with the rest of the world as well as regionally.
Sabah has relatively much lower GDP in particular contributed by its business eco-system that has relatively low in output by small and medium enterprises (SMEs) comparatively to some other states.
Hence Basri said FSI is committed to provide training to upgrade skills and technology, boost productivity, and enhance the growth of SMEs in Sabah and mentor-coach micro enterprises particularly assisting key Bumiputra startups and entrepreneurs with the cooperation of FSI’s successful member companies.
The underlying structure of sources of growth is predetermined by Sabah’s core economic competencies, resources, fund allocation, suitable manpower availability and logistical infrastructure development growth and distribution, hence the importance of early realisation of SICC’s potential and the completion of the Pan Borneo Highway as well as Sapangar Port transformation, and availability of greener gas energy supply with federal support remain vital for success.