CM: Sabah can become major regional coffee bean producer

KOTA KINABALU: Chief Minister Datuk Seri Shafie Apdal is impressed with Federation of Sabah Industries’ (FSI) Sabah Coffee Bean project and its desire to put Sabah coffee beans on the world map.

Coffee, he said is arguably one of the world’s most valuable agricultural products and probably the second most valuable commodity after petroleum.

With some 2,500 million cups of coffee being consumed worldwide on a daily basis, it is not difficult to understand why coffee is certainly a feasible venture to delve into, said Shafie.

“In Sabah, we have ample land that could be converted into coffee plantations so that we can increase local production of coffee beans. It would be even more exciting if we could come up with our own Sabarica coffee bean and give the other varieties a run for their money,” he said at FSI’s 35th anniversary dinner on Saturday night.

In his speech which was delivered by Deputy Chief Minister cum Trade and Investment Minister Datuk Seri Panglima Wilfred Madius Tangau, Shafie opined that Sabah is certainly in a position to become a major regional coffee bean producer.

“And the Warisan-led government will not hesitate to assist investors in this project. I am sure, FSI members have the capability, expertise and finances to launch into this venture.

“I am also sure you would be able to assist Sabahan smallholders to venture into contract farming with coffee as their main product, provided that you assure them that you will buy back all their produce.

“In this way we can assist the rural poor to earn better incomes. And FSI will be better known to have contributed to a Corporate Social Responsibility (or CSR) programme. Do come back to me when you can come up with the facts and figures as well as the development proposals,” he said.

Shafie said that the State Government intends to position Sabah as one of the strong economic growth drivers in Malaysia, as well as become a safe and rewarding investment destination.

As a matter of fact, despite being in power for only five months, the Warisan-led government has managed to meet with both local and foreign investors, and soon it will be able to announce deals that have slipped by the government previously, he added.

“Investments cannot be completed overnight, as you surely understand, but let me assure you that many new investments are in the pipeline, and will be announced at the opportune time. We will not be rushed into making rash decisions while certain issues have to be overcome. Sabah certainly has issues with energy and water - two very important commodities that investors look for. These problems were not looked into in the past and it is left to the Warisan-led government to address such issues if we want to move forward,” he pointed out.

Shafie expressed the state government’s gratitude to FSI for its contributions to make Sabah a better place for business and employment and helping to retain our brain talents.

“Your 35th anniversary dinner themed ‘Sabah: Hub for the Far East - The Way Forward’ is inspiring. The government is all for options that could propel Sabah to economic prosperity.

“I also appreciate FSI’s role in attracting investors to consider Sabah as a profit centre. The government will do the utmost to reduce the high costs of doing business in Sabah as well as promote the ease of doing business,” he said.

According to him, Sabah’s potential in wealth creation and job creation through industrialization is very bright if everyone can make full use of the state’s natural commodities, increased agricultural outputs, fisheries and petroleum resources to make more downstream processed products for export.

He also has high hopes for the success of the Ministry of Agriculture and Food Industry and the Ministry of Trade and Industry to assist FSI in achieving its goals.

He is of the opinion that with helpful organisations like FSI, the government is aiming to create a strategic umbrella for better Sabah human capital to start a journey of innovation and leadership for new Sabahan generations whose growth and intellectual development stems from good, positive values.

“What we look forward to accomplish in the future requires us to build and train qualified young leaders who are responsible and ambitious to maintain and expand the success achieved by business leaders like you.

“Like you all, our trained human capital talents will make Sabah proud through their innovations and accomplishments in line with the strategy of making Sabah great, as a generation full of knowledge, creativity and innovative talents who devote their capabilities to serving their community, state and country effectively at local and international levels and arenas.

“For this, the Ministry of Education and Innovation was established to realise our aspirations. Innovation is the primary driving force in the development of a business, especially for an SME ecosystem. Innovation gives birth to new ideas and creates more effective methods and processes, all of which contribute to meeting the needs of customers efficiently and effectively,” he said.

Innovation, according to Shafie, is essential to improving quality of life, providing better resources and enhancing the way we interact and communicate.

Innovation and entrepreneurship are closely related. Innovation sees new products and services being developed, while entrepreneurship delivers them to customers, he said, adding that the State Government will support start-ups and SMEs in Sabah as well as create a business climate conducive to foreign investors and boost confidence in Sabah’s investment environment with better economic legal infrastructure to ensure economic growth and strengthen the competitiveness of the economy.

“We will work with FSI to leverage Sabah’s strategic location and political stability to build a sustainable knowledge economy. I congratulate FSI leaders and members in your steadfast 35 years struggle, facing many challenges and persevere through various hardships to dignify Sabah’s business reputation,” said the Chief Minister.

Meanwhile FSI president Datuk Chong Hon Leng in his speech said the federation strongly believes that industrialization is the bedrock for skill, knowledge, innovation and entrepreneurship development which is fundamental for the creation of jobs and business opportunities.

FSI, he said will continue to help its members to address problems faced by them in their day to day operation as well as to advocate policies and issues affecting the growth and advancement of the industry with the various authorities concerned.

“Our efforts in promoting industrial activities through events such as the Sabah International Business Conference and Exposition which is held bi-annually in collaboration with MICCI, the Sabah International Food and Beverage Fair, the Borneo International Coffee Festival, Factory Sales and on job trainings for members’ employees being carried out regularly have earned the recognition of the industry as our records have shown an increase in our membership recently,” he pointed out.

Chong disclosed that current matters being pursued by FSI include the reduction in cost of doing business, the need to ensure adequate supply of quality materials for our manufacturers and capacity building towards making Sabah a commercial hub for the Far East Region.

“We were indeed happy to note that the government is very receptive to the ideas and proposals put forward by us for their consideration and in return we would like to salute the state government for taking concrete steps to ensure that manufacturers are given priority access for resources produced in the state for their operations, technical support and financial assistance for industries to upgrade and improve the efficiency of their operations as well as participation in investment opportunities to be created under the government’s action plan to accelerate the economic growth of the state,” he said.

According to him following the conversion of its name from FSM to FSl to reflect the bigger scope of their operation, the Federation has enlarged their council to cater for the increased amount of activities carried out by the Federation as well as to provide a more comprehensive range of services to its members.

“In addition we have also formed a company by the name FSI Group Venture Sdn Bhd (FSIGV) to pool the resources and knowhow of our members together to undertake investments in strategic areas of the industrial value chain to strengthen our sustainability and competitiveness.

“We are looking forward for the formation of a Sabah Industrial Council to forge a closer working relationship between the public and the private sectors in order to accelerate the growth of the industrial sector in the state in line with recommendation of the Six Pillars in the 11th Malaysian Plan mid-term review,” he said.