NEM MISSES OUT ON SABAH’S INTERESTS

THE much anticipated new economic model launched by the Prime Minister yesterday is a disappointment because it has missed out on strategies on alleviating regional imbalances in national development.

For example, a key disadvantage to Sabah’s economic competitiveness is our higher freight charges caused mainly by the federal Cabotage Policy which favours shipping lines based mainly in Peninsula Malaysia. This issue has been completely left out of the NEM.

Of the eight key sectors, only oil and gas, oil palm and tourism are directly relevant to Sabah. And even then, the potential of these three key sectors are because of Sabah’s own natural resources-oil and gas, land and eco-tourism assets. These are the assets of Sabah that have contributed to the national economy and not the other way round.

It is also worrying that the NEM has omitted forestry as a key sector. Although state revenues from timber royalties has dropped over the years, forestry remains a key sector in Sabah because of its great potential in terms of scientific research, environment, eco-tourism, carbon trading and employment in wood-based industries. Forestry remains one of Sabah’s biggest factors in our economic development. This should not have been omitted.

To boost confidence in Sabah, it would have been timely to commit the federal government to the building of the Labuan Bridge in the 10th Malaysia Plan or at the latest the 11th Malaysia Plan. The NEM also missed out on any strategies to enhance maritime activities and trade in East Asean Growth Area (BIMP-EAGA). These are macro issues that are relevant to Sabah’s well being but not included in the NEM.

Our new economic model should have answers on the crisis of youth unemployment, over reliance on foreign workers, living wage and escalating costs of living. Sadly, these are lacking in the NEM. Another area that the NEM is lacking in is an energy policy. On the one hand, the government talks highly of green technology but on the other hand, Tenaga Nasional (TNB) insists on a coal power plant for Sabah.

SAPP feels that it is responsibility of the BN governments, at both the state and federal levels, to rectify these shortcomings and defects in the NEM. Failure to do so would condemn Sabah and our people to another decade of economic backwardness, misery and dependence on federal hand outs.

By: YONG TECK LEE (sabahkini)