KUCHING: Sarawak’s economy is expected to grow at 3.5 per cent to 4.0 per cent in 2017.
This was pointed out by Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan in his winding-up speech of State Legislative Assembly (DUN) sitting held at new DUN here, yesterday.
He said, state government will continue its effort to maintain the momentum of our economic growth as well as to assist the business communities and the rakyat.
Explaining about the performance of the state’s manufacturing sector, he said, in tandem with the slowdown in world economies that has led to weak aggregate demand, volatile international financial markets, low commodity prices especially the prolonged low oil prices, uncertain economic policies, among others, the approved investment in Malaysia’s manufacturing sector was subdued in 2016.
“Against this backdrop, Sarawak has managed to attract 13 projects worth RM4.6 billion under the Industrial Co-ordination Act 1975 (ICA) in 2016, which is the third highest in Malaysia after Johor (RM26.1 billion) and Selangor (RM7.8 billion). These 13 projects are expected to generate more than 4,000 employment opportunities in the state.
“Other than these, the state has also received a proposed investment for PETRONAS Floating LNG 1 project in 2016 amounting to RM6.4 billion, which is currently pending approval by Malaysian Investment Development Authority (MIDA).
“For 2016, the state Industrial Coordination Committee (ICC) has also approved 52 projects totalling at RM129 million mainly in Non-Metallic Mineral Products (concrete block, marble and granite), Woodbased Products, Services (warehouse and storage), Chemical and Chemical Products, Basic Metal Products (metal roofing and wires), Food Manufacturing and others,” he explained, adding these investments were expected to generate about 1,100 employment opportunities in the state.
Meanwhile, as at April 2017, the state ICC has supported a total of 13 projects totalling RM7.3 billion (PETRONAS Floating LNG 1 project, cement products, industrial gases, fertilizer and others) for Manufacturing Licences under ICA.
For the same period, the state ICC has also approved 14 projects totalling RM94.98 million in Non-Metallic Mineral Products (marble and granite, spun concrete piles), Food Manufacturing, Basic Metal Products (framing system and roof truss), Woodbased Products and others. These investments were expected to generate about 350 employment opportunities in the state.
He further stated that, to date, Sarawak Corridor of Renewable Energy (SCORE) has attracted 22 investment projects worth of RM33.64 billion in the aluminium, ferroalloys and polycrystalline silicon industries and are expected to generate about 17,000 employment opportunities in SCORE.
Apart from that, the state government has signed a Framework Cooperation Agreement in Beijing, China with Hebei Xinwan Steel Group Co. Ltd. and MCC Overseas Ltd. Of China on the proposed development of a USD 3 billion steel project in Samalaju in November 2016. The feasibility study for the project is expected to be completed by June 2017.
In addition, he said, Sarawak Petchem Sdn Bhd will invest in a USD 2 billion methanol plant with a production capacity of 5,000 metric tonnes per day (mtpd) in Tanjung Kidurong, Bintulu and is expected to provide 1,000 employment opportunities as well as creating more business and contract opportunities for the local business community.
Tengah who is also Minister of Industrial and Entrepreneur Development disclosed, to further enhance the economic activities in Tanjung Manis Halal Hub, Sarawak Timber Industry Development Corporation (STIDC) has identified 20 strategic projects in agrobusiness, fishery based industry, food processing industry, livestock and poultry worth RM2.8 billion and are expected to create over 3,000 employment opportunities in the next five years.
He also stressed that the development of Sama Jaya Free Industrial Zone has created much economic spin-offs that have greatly benefited both the rakyat and business community.
With Sama Jaya producing solar ingots, wafers down to cells and modules and Samalaju producing polycrystalline silicone, Sarawak is probably the only state in Malaysia that has the complete solar value chain.
