Simplify procedure to lure investors — Lui
KOTA KINABALU: A more open policy and simplified procedure for developments are crucial to attract foreign investors to Sabah.
Kota Kinabalu Chinese Chamber of Commerce and Industry (K KC CC I) pres id en tD atuk Michael Lui said the government should be more open and welcoming towards foreign investors.
There should also be a one-stop centre to simplify the application procedure for developments, as well as to expedite the issuance of licences.
For instance, Lui said Sabah should leverage on our flourishing tourism industry and encourage foreign investors to build more five to six-star hotels and resorts by eliminating red tapes and speeding up the approval process.
“Having more investments in the State will generate considerable revenue and create more jobs for locals.”
He said the process of acquiring the necessary licences and approvals for a development took up to three years in the State, including a one-year waiting period for conversion of land use alone.
He pointed out that the delay in the issuance of approvals could be attributed to human factor.
“Investors could have their business up and running in Thailand by the time they obtained approval for their development in Sabah after three years.
“We must rectify this issue or else we will lose out to Thailand and Indonesia that are now moving forward
aggressively,” Lui said in an interview on the local economy and outlook for year 2019.
He said Malaysians were generally looking forward to a better economy and a level playing field for businesses under the administration of the new government post-14th General Election (GE14).
Lui said Malaysia was not spared from the global economic slowdown and the US-China trade war this year.
He said the economic downturn to the change of government after the election.
“Although the government comprised mostly experienced leaders, they have to deal with officers who still maintain their old mindset during this transition period.
“But I believe given time and adjustments in human resources, the government will be able to bring the country back on track.”
He lauded the removal of the 30 per cent bumiputera quota system by the new government, adding that it would enable Malaysia to compete with our neighbouring countries such as Indonesia and the Philippines.
Lui also hoped that the government could consider issuing visa upon arrival to boost the tourism industry.
He said Thailand and Indonesia had implemented visa upon arrival in view of the rise of China, adding that Thailand had even waived visa fee.
On another note, Lui said while the Deputy Chief Minister cum Minister of Tourism, Culture and Environment Datuk Christina Liew had begun promoting tourism in Tawau, the tourism potential in the interior parts of Sabah must not be neglected as well.
He said Keningau and Tenom had the potential to develop agriculturebased tourism, whereas the western coastline in Sabah like Kudat also offered an abundance of natural beauty to lure tourists.
Having said that, he stressed the need to protect the environment at tourist attractions, as environmental damage was a risk brought about by tourism.
He said tourism operators and investors must preserve the flora and fauna where their businesses were located.
“In view of our thriving tourism industry, we need to safeguard our natural habitat and ecosystem for the sake of the next generation.”
As emphasized by the State Government, Lui stressed the need to focus on downstream activities in Sabah.
“The Chief Minister Datuk Seri Panglima Shafie Apdal has talked about the development of timber downstream industry to generate more revenue and create job opportunities for the locals.
“We need to focus on downstream activities as this will encourage industrial development in Sabah.”
Likewise, he also suggested the mass production of tropical fruits such as durian, pineapple and banana.
He added that the State could engage foreign investors to add value to the local fruits for export.
Meanwhile, Lui expected the economic slowdown to persist next year due to the US-China trade war and unstable Malaysian politics.
That aside, the revision of the minimum wage to RM 1,100 nationwide will also put more pressure on employers as they had to increase salaries of their workers across the board, including existing employees, or else morale will be affected.
“I am quite sure that unemployment rates will go up next year as employers resort to laying off part of their workforce to reduce costs.”
Nonetheless, he said the increase in minimum wage was good news for employees as they would have more to spend and in turn stimulate the market.
However, Lui is worried that the revision of minimum wage, coupled with the reintroduction of Sales and Services Tax (SST) and weak Malaysian currency, would cause inflation of daily essential items such as vermicelli, milk powder and canned food.
He hoped that employers would refrain from retrenching their workers and empathize with their need to earn a living for their families.
At the same time, Lui said wage earners should also spend their money wisely and improve their work attitude and productivity in order to remain indispensable to their employers. Sabah Property market Sabah Housing and Real Estate Developers Association (Shareda) president Chew Sang Hai said the property market was more challenging this year compared to the year before.
Nonetheless, he said there had been an increase in new property launches after GE14.
“The total value of property launches in Sabah this year has exceeded RM2 billion, which is higher than last year.”
On the outlook for next year, he said the new government had come up with schemes and incentives to encourage developer to market their overhang properties, such as the home ownership campaign and exemption of stamp duty for first home buyers.
Additionally, Chew said Shareda and its counterparts were working on alternative financing schemes for buyers, which he hoped could be done by next year, to boost effective demand for properties.
“As the president of Shareda, I look forward to a better year ahead.
“I expect the property market to recover in the second half of 2019.”