Friday, November 23, 2012

Rang Undang-Undang Supply Bill 2013 - YAB Pehin Sri Abdul Taib Mahmud, Menteri Kewangan Sarawak

SUPPLY (2013) BILL, 2012
Ketua Menteri dan Menteri Kewangan (Y.A.B. Pehin Sri Haji Abdul Taib bin
Mahmud): Tuan Speaker, saya ingin mencadangkan supaya Rang Undang-Undang an
ordinance to apply a some of the consolidate fund of the service for the year 2013
dibaca kali pertama.
SUPPLY (2013) BILL, 2012
Ketua Menteri dan Menteri Kewangan (Y.A.B. Pehin Sri Haji Abdul Taib bin
Mahmud): Tuan Speaker, saya ingin memberitahu bahawa Rang Undang-Undang ini
akan dibacakan kali kedua dalam mesyuarat ini juga.BELUM DISUNTING
19 NOVEMBER 2012
Timbalan Ketua Menteri dan Menteri Permodenan Pertanian dan Menteri
Pembangunan Luar Bandar (Y.B. Datuk Patinggi Tan Sri (Dr.) Alfred Jabu Anak
Numpang): Tuan Speaker, I beg to introduce a Bill intituled the Civil List (Amendment)
Bill, 2012 and let it be read a first time.
Timbalan Ketua Menteri dan Menteri Permodenan Pertanian dan Menteri
Pembangunan Luar Bandar (Y.B. Datuk Patinggi Tan Sri (Dr.) Alfred Jabu Anak
Numpang):  Tuan Speaker, I beg to give notice that The Civil List (Amendment) Bill,
2012 be read the second time on 20
November, 2012.

SUPPLY (2013) BILL, 2012
Ketua Menteri dan Menteri Kewangan (Y.A.B. Pehin Sri Haji Abdul Taib bin
Mahmud): Tuan Speaker, saya mohon untuk mencadangkan satu rang undang-undang
bertajuk ‘Suatu Ordinan bagi menggunakan sejumlah Wang daripada Kumpulan Wang
Disatukan untuk perkhidmatan bagi tahun 2013 dan bagi memperuntukkan wang itu
untuk perkhidmatan tahun itu’ dibacakan bagi kali yang kedua.
Alhamdulillah saya panjatkan kesyukuran kehadrat Allah S.W.T. kerana dengan
izinNya saya dapat membentangkan Belanjawan Negeri Tahun 2013 dalam Dewan yang
mulia ini serta berdoa agar ianya dapat mencapai tujuan seperti yang diingini, iaitu untuk
menyokong usaha kita mentransformasi ekonomi negeri kepada ekonomi
berpendapatan tinggi menjelang tahun 2020.
Dengan terlaksananya projek-projek industri berimpak tinggi di kawasan
pembangunan SCORE lebih banyak peluang perniagaan dan pekerjaan mahir serta
separa mahir akan dapat dijana untuk rakyat negeri ini.
Challenges and Development Thrusts
Tuan Speaker, we are now entering into a very challenging phase of
development in transforming the economy of the state towards that of a high income.  It
is therefore appropriate for me to touch on some of the major challenges that we are
facing in our efforts to transform the nation’s economy, the  State Government  would
continue to focus its efforts on restructuring and transforming the state economy to
achieve Vision 2020. This is even more critical as our state is moving into the next level
of development phase.
While we are proud of our achievements, we must not be contented with our
current success.  Instead, we must strive to do better and benchmark ourselves against
the best.  The future of Sarawak lies in the degree of our efficiency and continuous
commitment to manage the state resources effectively.  The attractiveness of Sarawak
as a preferred investment destination would be further strengthened by our ability to
upgrade our level of efficiency and management skills from time to time.  I am very

happy to note that over the years, there has been marked increase in the level of
commitment among our workforce, with clearer focus and  enhanced capability,
particularly by wider applications of ICT.
Tuan Speaker, as the global economy is becoming more challenging and
increasingly competitive, the resilience of the state economy in the coming years would
determine hour far we could attain rapid and sustain economic growth.  We will have to
restructure our economic base from being a merely production-oriented economy
dependent of natural resources, to a more diversified and value-added economy with
great emphasis on quality products which must be supported by skilled and
knowledgeable workforce to drive us towards a High Income Economy.
Foreign Direct Investors

Tuan Speaker, the state is moving in a big way to attract private sector
investment to place the state in the inner loop of the global supply chain.  In doing so,
we are competing globally for foreign direct investments.  Based on our experience to
draw investors to invest in the SCORE area and their expectations, we have to put in
place adequate supporting infrastructure, pro-business policies and incentives, besides
just depending on the comparative advantages that the state has.  In addition, we have
to create a conducive business environment as well as having committed and skilled
workforce with the right work culture.

It is therefore, important that the State must have sufficient supporting
infrastructures and services.  Besides that, the State must have sound economic, fiscal
and social policies, political stability, efficient delivery system and good governance to
meet the expectations of investors.
Tuan Speaker, the State comparative advantages on natural resources and
competitive energy price from hydro power are not the only considerations by the
investors in deciding to invest in the State.  We must also be able to offer them other
key ingredients that meet their requirements as I have mentioned, such as the
availability of skilled workforce, adequate supporting infrastructures, business friendly
policy, political stability and ultimately unity of the people.  Therefore, it is imperative that
we must continue to have all these, otherwise the investors might consider other
competitive locations elsewhere in the world.
While acknowledging that the challenges ahead are becoming more complex, we
must remain focus in our development agenda.  The world we are operating in is highly
competitive, dynamic and at the same time very volatile.  In order for us to remain
competitive, we have to continuously enhance and upgrade our management skills, be
more efficient and productive, broaden our knowledge and be creative and innovative.
At the same time, we must inculcate more pervasively the culture of good governance
and the highest level of integrity. And most critical of all, be agile in facing emerging
external challenges arising from global and regional competitions, and increasing
volatility in the world economy.
Economic Transformation
Tuan Speaker, to ensure sustainable growth, we need to widen our economic
perspective and diversify our economy as to mitigate dependencies on traditional
economic activities.  We need to focus on our niche and strength.  Basically, the
transformation of the State economy is no longer an exercise of restructuring the
traditional economic sectors such as timber and agro-based industries.  But it is also in
increasing the share of the secondary sector, such as value-added activities of timber BELUM DISUNTING
19 NOVEMBER 2012
and agriculture products and tertiary sector, such as transport and communications.
Most crucially, the transformation must involve the creation of new sources of economic
As we are all aware, restructuring and transforming of the economy is not
something that we can do within a short period of time.  We need to think very far
ahead, perhaps twenty years or more.  This requires careful and comprehensive
planning as well as strengthening appropriate physical, social and economic
infrastructures and most importantly in the development of our human capital.
These involve the way we develop our human resources to be skillful, competent,
creative and innovative in all aspects of our State’s economic activities.  It is therefore
vital for our State and country to have adequate skilled and semi-skilled training
institutions to prepare our human resources for the long term requirement of the
industries in the State, especially in the SCORE area.
SCORE – The Engine of Growth
Tuan Speaker, SCORE is a major development initiative that has been
undertaken by the government to bring the State to the next phase of development.
This development will stimulate economic activities through public and private sectors
investments.  Investment of Multi National Corporations (MNCs) in the SCORE area will
allow the transfer of technology and put the State on the radar screen as one of the
most preferred investment destinations.  This will transform the State into a vibrant
economy and will contribute towards greater growth and development of our State and
ultimately the country.
Ultimately, the success of SCORE in attracting foreign direct investment is not
only due to the huge hydro power resources that we have, but also hinges on sound
economic and financial policies, capable human capital and good supporting
infrastructure, and above all, political stability and unity of the rakyat which has been
nurtured by the Barisan Nasional Government.
Tuan Speaker, let me start with the World Economic Performance 2012 and
Prospects for 2013. In the year 2012, the world economic activity is expected to
slowdown.  The stabilizing effects of policy actions taken in the Euro zone only allow
temporary results and the economic crisis continues to deepen with heightened political
stability, banking sector and sovereign debt problems.  In the US, job growth
decelerated and unemployment remained high.  Emerging markets including China and
India have been affected by the weaker external environment and slower domestic
demand as a result of capacity constraints and policy tightening undertaken in the year
As more recent indicators of economic activity show continued weakness in the
third quarter, the International Monetary Fund (IMF) in its World Economic Outlook
Report released in October this year estimated that the growth of world economy is
expected to be only 3.3% in 2012 which is slightly lower than their earlier estimates of
With the expectation of uncertainties weighing on economic activities across all
regions in 2013, the world economy is anticipated to grow moderately for the year.  US
economy is expected to continue to grapple with high unemployment, slow financial
sector reforms as well as high fiscal deficit and debt.  In Europe, economic growth is BELUM DISUNTING
19 NOVEMBER 2012
expected to languish with considerable downside risks.  Economic growth in China is
expected to remain below its potential level following the weak external demand.
Against this backdrop, the IMF in October 2012 revised downward the global growth for
2013 to 3.6% as compared to their earlier forecast of 3.9%.
U.S Economy
In the United States, growth remains sluggish although the housing market is
now slowly stabilizing.  Weak household confidence and job creation, relatively tight
financial conditions, and continued fiscal consolidation have stood in the way of stronger
growth.  The GDP is projected to grow by about 2.2% in 2012 and is anticipated to
slowdown to 2.1 in 2013.
Euro Economy
In the Euro zone, real GDP is projected to contract at a rate of 0.4% in 2012 and
is expected to grow at 0.2% in the year 2013. In the major Euro countries, growth is
anticipated  to stroll in 2012. In Netherlands for example huge reduction in public
spending is expected to contribute towards contraction. In the economies of the Euro
area periphery, except for Ireland, which is in a bumpy recovery, the recessions have
been deeper, and recovery is generally expected to begin only towards the end of 2013.
Some talk about 2015 in much more optimistic way but that is not unanimous feeling
among economist.
Japan Economy
In Japan, growth is expected to reach 2.2% in 2012. Much of the recent strength
is attributable to the reconstruction activity and some rebound in manufacturing activities
in the first half of the year following the supply shocks associated with the March 2011
earthquake and tsunami. The effects of these factors are anticipated to fade away,
however, growth is projected to moderate at 1.2% in the year of 2013.
China Economy
Tuan Speaker, growth in China slowed further in the second quarter of 2012 and
is expected at 7.8% for the year, as the economy continues to adjust to the policy
tightening undertaken in 2010 and 2011. The tightening of monetary and credit policies
have been partly reversed this year given that price pressures have eased and
residential real estate market begin to move. Growth is expected to strengthen to 8.2%
next year and the easing of policy will start to take effect.
India Economy
India economy is expected to grow at 4.9% in 2012 following a weaker external
environment. Its growth is projected at 6.0% for next year as several reforms recently
carried out by the Indian Government are set to improve confidence.
Newly Industrialised Asian Economies (NIEs)
Newly Industrialised Economies which consists of Korea, Taiwan, Hong Kong
and Singapore is projected to grow at a moderate rate of 2.1% this year. In 2013, the
growth is expected to be about 3.6% in anticipation of a slight pick up in exports and
private investments.BELUM DISUNTING
19 NOVEMBER 2012
ASEAN-5 Economies
In 2012, weaker external demand is the main factor underpinning weaker growth
in the ASEAN-5 economies with the exception of Thailand, where growth has rebounced
sharply, led by reconstruction and investment after the devastating floods in October
2011. Overall, growth in the ASEAN-5 is projected to grow slightly to 5.8% in the year
2013 as compared to 5.4% in 2012.
National Economic Performance in 2012 and Prospects For 2013
Tuan Speaker, the National economy is expected to grow at 4.5% to 5.0% this
year despite challenges in the global economic environment. In the first half of 2012, the
economy expanded at a faster pace of 5.1%. The growth was supported by strong
private consumption and robust private investment.
The deterioration of the external environment and correction in commodity prices
are expected to weigh on Malaysia’s export performance during the second half of 2012.
However, the vibrant domestic demand is expected to sustain during the same period,
supported by both public and private sectors amidst supportive financial market
conditions, stable prices and favorable market conditions.
State Economic Performance in 2012 and Outlook For 2013
Tuan Speaker, our State economy is expected to record a favourable growth of
4.5% in 2012. The growth will be underpinned by sustained expansion of domestic
demand by both private and public expenditure.  For 2013, the State economy is
projected to strengthen by 5.0%.  The growth will be supported by stronger domestic
demand generated by the dynamic economic activities of the on-going projects in the
SCORE area and projects under the Tenth Malaysia Plan.
Supply Side
On the supply side, growth in 2012 is expected to be driven by the
manufacturing, construction and services sectors. The manufacturing sector is expected
to grow at 5.2% in 2012 alongside with strong domestic activities and steady demand for
our LNG  and wood-based products. The exports value of our manufactured goods
recorded a double-digit growth of 11.5% in the first half of this year. On the domestic
front, output of construction related materials grew strongly to cater for the demand
arising from  the buoyant infrastructure development in the State.  We anticipate the
manufacturing sector to continue to do well in 2013, growing at 5.7%. The growth will be
supported by robust demand for our resource-based sub-sectors and the
commencement of operation of industries in Samalaju Industrial Park.
The construction sector itself is expected to grow at 9.0% in 2012 boosted by the
on-going implementation of various Government projects under the Tenth Malaysia
Plan, major construction projects in the SCORE  area by both the public and private
sectors, and the Murum hydro power dam construction. The growth will also be
supported by the strong construction activities by the private sector in the commercial
and residential subsectors.  For 2013, we anticipate the growth momentum will be
further accelerated and expanded by 10.5% in tandem with the State development
Tuan Speaker, the services sector is expected to grow at 5.3% in 2012. The
robust growth will be supported by buoyant wholesale and retail trade, accommodation BELUM DISUNTING
19 NOVEMBER 2012
and restaurant, utilities and transport as well as business services, finance and
insurance sub-sectors.
For the first half of 2012, electricity generation grew by 14.3% while water
production grew by 3.2% compared to the second half of previous year as a result of the
growing capacity of the utility subsector to meet the growing demand from both domestic
and industrial use.
During the same period, visitor arrivals surged by 11.9% as a result of the
government efforts to attract visitors to spur the tourism industry.  With these initiatives,
the tourism related services sub-sector such as accommodation and restaurant remain
upbeat.  Meanwhile, public and private infrastructure projects have also supported the
growth of the services related activities.  In 2013, the services sector is projected to grow
by 5.8%.  The growth momentum will be driven by strong domestic consumption and
investment activities.
The mining and quarrying sector is estimated to grow at 1.8% in 2012 with
increased production for crude petroleum, natural gas, coal and silica sand arising from
higher demand particularly from petrochemical industries and power producers.  The
mining and quarrying sector is expected to grow at 2.0% in 2013 as the production of
crude petroleum is expected to improve and supported by a moderate increase in output
of natural gas.
The agriculture sector is expected to grow moderately at 2.9% this year.  The
growth is mainly influenced by the production of major crops particularly oil palm.  In the
first half of 2012, production of crude palm oil grew by 2.8%.  For 2013, the agriculture
sector is expected to grow by 3.3% following the recovery in the output of plantation
Tuan Speaker, public consumption in the State is expected to grow at 2.9% this
year and at 2.4% in 2013.  Public consumption is mainly on operational expenditure for
the government administrative machinery and delivery system, which is necessary in
order to provide the required services to support its growth and development.
Private consumption is expected to expand by 4.0% this year underpinned by a
higher disposable income arising from encouraging financial market conditions, stable
prices and favourable labour market. For the first half of 2012, importation of
consumption goods grew by 14.1%. The continued easing of monetary policy to
encourage domestic economic activities and projects launched by the public sector are
expected to sustain consumer and business sentiments.  The private consumption is
expected to grow by 4.8% next year.
Public investment is expected to expand by 5.0% this year underpinned by
acceleration of capital spending across all sectors, particularly projects under the Tenth
Malaysia Plan, SCORE, and the Government Transformation Programme. The bulk of
the expenditure is channelled to the economic and social sectors particularly to improve
business and investment environment as well as to provide basic rural infrastructure and
19 NOVEMBER 2012
Public investment will continue to support growth and development in the State
and is expected to expand at 3.3% in 2013 in line with the Government continued efforts
to expand the basic rural infrastructure development in the State.  The implementation of
infrastructure projects in the SCORE area will also accelerate growth.
Tuan Speaker, private investment activities are expected to sustain a growth
momentum of 5.9% this year driven by the Government strategies to encourage private
sector to spearhead business activities that are beneficial to the State.  Undeniably, the
growth of investments in the State is the materialisation of the Government ability in
providing favourable investment environment.  This is done through the Government’s
conscious efforts in putting in place the essential infrastructure facilities, improving public
sector delivery and in its on-going initiatives in attracting foreign and local investments
particularly to the SCORE area.
The growth in private investment for the first half of this year was also reflected in
several key investment indicators.  These include the importation of capital and
intermediate goods that grew by 10.3% and 19.4% respectively for the period.  It is
anticipated that the progress made in the SCORE area as well as under the Economic
Transformation Programme will further boost investors’ confidence.  Hence, private
investments are expected to expand by 10.4% in 2013.
Tuan Speaker, for the year 2012, the State Ordinary Expenditure provision is
revised upwards from RM3,964 million to RM4,535 million.  The additional provision is
for the payment of salary adjustments and bonus in line with the Federal Government
decision; and for contribution to Development Fund Account.
As at September this year, RM1,033 million or 73% of the budgeted recurrent
expenditure had been expended, while RM1,912 million or 75% of the contribution to
Development Fund Account had been effected.
The development expenditure for the year 2012 was revised upwards from the
original sum of RM3,263 million to RM3,318 million, an increase of RM55 million or
approximately 2.0%.  The additional provision, tabled and approved by this august
House during its sitting in May 2012, was meant to meet additional expenditure for
housing, social and community development sectors.
I would like to inform this august House that up to September this year, a sum of
RM1,860 million or 56% of the revised development estimates has been spent.  It is
anticipated that the actual total development expenditure will increase as more
payments will be effected before the end of the current financial year.
Surplus For 2012
Tuan Speaker, I would also like to inform this august House that the State is
expected to achieve a budget surplus of RM167 million in 2012.  The surplus is made
possible as a result of better than expected revenue as well as supported by prudent
and disciplined spending of the current year allocation.
I would like to extend my appreciation to all Controlling Officers and officials of
the State Civil Service for their commitment and dedication in ensuring that the State
financial position remains healthy.  Their continuous commitments in the preparation of
their budgets, the supervision and control over expenditure and revenue collections,
have contributed tremendously to the financial health of the State.  I would like to call for BELUM DISUNTING
19 NOVEMBER 2012
the same level of commitment to continue spending wisely and judiciously.  We must
ensure that our financial resources remain sustainable to continue to fund  our future
development programmes and projects.
Budget Proposal For 2013
Tuan Speaker, I would now like to present to this august House, the Budget
Proposal for 2013.
Objectives and Strategies of State Budget 2013
In our efforts to achieve greater and more balanced development and to sustain
economic growth, the Budget 2013 will focus on the following key objectives and
(a) To stimulate a desirable level of economic activities and to sustain
economic growth for the year.  Budget 2013 will continue to be a
development biased budget with RM3,407 million, or about 69% of the
total budget being proposed for development and RM1,517 million, or
31% for operating expenditure.  As a developing State, it is imperative
that we have a budget that is development biased;
(b) To  enable adequate fund for the successful implementation and
completion of all contractually committed projects in the Tenth Malaysia
Plan as well as other commitments of the State for the year;
(c) To continue with the long term social and  economic restructuring and
transformation plan and to ensure fair distribution of development
throughout the State.  This will ensure better quality of life, create
opportunities for investment and employment and ultimately narrowing
the development gap between rural and urban areas;
(d) To continue with a surplus budget.  This is in line with the State
Government continuous effort to ensure that the State financial position
remains healthy and strong.  We must maintain and preserve such
financial standing to ensure that the State has continuous funding for its
development.  For the year 2013, the budget is expected to have a
surplus of about RM83 million;
(e) To continue giving special focus on enhancing the effectiveness of the
State Government financial management and the efficiency of its delivery
system, while continuing with our strategy of prudent expenditure
spending and for growth to be driven by productivity and efficiency.  It is
imperative that we make concerted efforts to optimize the use of available
(f) To continue to give priority to Commerce and Industry, Rural
Development, as well as other sectors such as Public Utilities, Transport
and Communications, Agriculture and Land Development; and
(g) To reinvigorate the private sector as the main engine of growth.BELUM DISUNTING
19 NOVEMBER 2012
Revenue Estimates For 2013
Tuan Speaker, in 2013, total revenue is projected at RM4,150 million. Of this
(a) Tax Revenue is expected to contribute 23% or RM975 million to the total
expected revenue.  The revenue derived from this category comprised
forest royalty and timber premium at RM522 million, sales tax RM317
million and the balance of RM136 million mainly from land rents and
royalties from raw water and mining;
(b) Non-Tax Revenue is expected to generate about RM3,047 million or 73%
of the total expected revenue.  The revenue derived from this category
comprised compensation in lieu of oil and gas rights as well as
compensation in lieu of import and excise duties on petroleum products at
RM1,629 million, investments income at RM926 million, land premium at
RM310 million and others that include revenue from licences, permits,
sales of properties and service fees at RM182 million;
(c) Non-Revenue Receipts is expected at RM9 million which is mainly from
disposal of assets; and
(d) Federal Grants and Reimbursements is expected at RM119 million.
Expenditure Estimates For 2013
Tuan Speaker, for the year 2013, the State Government proposes to allocate a
sum of RM4,067 million for Ordinary Expenditure.  Of this allocation, RM1,517 million will
be for recurrent expenditure  while the balance of RM2,550 million is to be appropriated
to the Development Fund Account for financing of development programmes and
The proposed allocation of RM1,517 million for recurrent expenditure in 2013 is
7% higher over the approved allocation for 2012.  Out of the amount proposed for 2013:
(a) RM560 million or 37% is for personnel emoluments;
(b) RM551 million or 36% is for supplies and services;
(c) RM365 million or 24% is for grants and fixed payments, mainly to be
allocated to Government agencies including Local Authorities and
Statutory Bodies for operating expenditure;
(d) RM28 million is for the procurement of assets; and
(e) RM13 million is for other operating expenses.
The Budget would continue to emphasize on prudent management of our
operating expenditure, improving our productivity and enhancing our competitiveness.  I
would like to commend Government departments and agencies for their continuous effort
in implementing stringent control on operating expenditure without compromising
efficiency and productivity.  We must manage costs and capitalize on the available
resources to produce and deliver more and better quality goods and services.  All
Government departments and agencies must continue to improve their productivity at all BELUM DISUNTING
19 NOVEMBER 2012
levels.  They must continue to improve their delivery systems and be able to maximize
the utilization of resources available to them to provide better services.
Budget Surplus For 2013
Tuan Speaker, the 2013 budget proposal is expected to generate a budget
surplus of about RM83 million.  This is on the basis of an estimated total revenue of
RM4,150 million against a total Ordinary expenditure amounting to RM4,067 million
which includes appropriation to the Development Fund Account.  It is important to have a
balanced or surplus budget to ensure that the State financial position remains sound and
Development Expenditure Estimates For 2013
Tuan Speaker, Now I would like to deliberate on the Development Estimates for the
year 2013.  It is proposed that a sum of RM3,407 million be allocated for Development
Expenditure.  Taking into consideration our commitments for the implementation of
projects in the Tenth Malaysia Plan of the State and Federal, and financial and
implementation capacities of the State, the 2013 State Development allocations are for:
(a) Settlement of contractual payments for projects under the Tenth Malaysia
(b) On-Going and continuation programmes and projects as well as other
commitments of the State; and
(c) Priority and high impact projects.
Of the total amount proposed for development expenditure, RM3,259 million will
be funded by the State while RM148 million will be financed by the Federal Government
by way of reimbursable grants and loans.
Distribution of Development Budget
Tuan Speaker, I shall now highlight on the distribution of the development budget
for the year 2013. The Government will continue to undertake proactive measures,
including the development of physical infrastructures, especially in less developed areas
in the State.  There is a need for rural areas to catch up with development particularly
those having economic potentials that could be harnessed and would contribute
substantially to the State economy.  Hence, we have to give greater emphasis to
develop the necessary infrastructure and amenities such as roads, drainage,
telecommunication, electricity and water supplies aimed at improving the quality of life as
well as attracting more investment into these areas.
Tuan Speaker, the sum of RM3,407 million as proposed has been allocated on
the basis of projected expenditure requirements for the implementation and completion
of various approved programmes and projects under the Malaysia Plan of the State in
2013.  Of the total proposed development allocation:-
(a) RM2,043 million is for Commerce and Industry sector, i.e. for investments
in industries, tourism development, industrial estates development, and
entrepreneurs development programmes.  It also includes Government
development grant and loans to statutory bodies;BELUM DISUNTING
19 NOVEMBER 2012
(b) RM220 million is for transport and communications especially for the
purpose of roads, bridges and ports;
(c) RM429 million is for general administration which is meant for the
implementation of various programmes and projects to improve
government facilities in order to enhance our service delivery;
(d) RM168 million is for agricultural programmes such as land development,
drainage and irrigation, assistance to farmers, veterinary, fisheries,
agricultural research and forestry;
(e) RM214 million is for Public Utilities, especially for implementation of
various water supplies projects; and
(f) RM333 million is for social development and community services
including housing and resettlement schemes, sports and recreational
The sectoral allocation as proposed only shows a partial picture of the overall
public sector expenditure in the State as the programmes and projects funded directly by
the Federal Government are not reflected in the State Budget Proposal.
Tuan Speaker, I would like to stress that we will continue to seek more funding
from the Federal Government under the Tenth Malaysia Plan especially for
infrastructural projects for roads, utilities and social amenities particularly in the rural
The capital expenditure required for the improvement and upgrading of such
infrastructures and public amenities are substantial.  No State in the country can afford
to undertake such development on its own.  If the State were to undertake such
development, it will not be able to realize such development at the speed and rate we
intend to achieve and as expected by the people.  With our close relationship with the
Barisan Nasional Government at the national level, I am confident that under this
Malaysia Plan, the Federal government would continue to provide more allocations for
the development and upgrading of such facilities.
State Public Accounts
Tuan Speaker, I am pleased to inform this august House that  the Auditor
General of Malaysia has again given us a clean bill of health for the year 2011 Public
Accounts.  This is the 10
consecutive year we receive an unqualified report.  I would
like to urge all Controlling Officers including all Heads of Ministries, Departments and
Agencies to view the observations of the Auditor General seriously.  And I also wish to
emphasize that we must continue to achieve a clean bill of health into the future years.  I
would like to bring to the attention of the press to give a more balanced report of the
Auditor General’s comments so that it is not being misunderstood by the general public.
The State Public Accounts is not only subjected to the audit and scrutiny of the
Auditor General of Malaysia, its finances are also being monitored by both the
international and domestic rating agencies on a periodical and disciplined manner in
accordance to high prescribed international financial and accounting standards.  All
State Statutory Bodies and Government Linked Companies are also required to comply
with the same.BELUM DISUNTING
19 NOVEMBER 2012
Prudent Financial Management
The State must continue to be disciplined and prudent in its financial
management to continue its financial sustainability and autonomy.  There is even greater
responsibility for the State to be more vigilant in upholding the high standard of prudent
financial and resource management, transparency, accountability and good governance.
All strategies and control mechanisms which are in place have been part and
parcel of our proactive financial management strategy.  While we are proud of our
financial performance, we must continue to work hard and smart in order to preserve the
State’s prosperity, political stability and maximum allowable autonomy that we can get
within the context of federation.
State Credit Rating
Tuan Speaker, despite the global financial and economic turmoil that have
adversely affected credit standings of some rated sovereigns even in Europe, subsovereigns and corporate entities around the world, the State’s credit rating position is
maintained at its commendable investment-grade credit ratings of A3 by Moody’s and Aby Standard and Poors.  These commendable credit ratings indicate the strong
confidence of the international rating agencies on the State’s sound economic and
financial position as well as its effective financial and fiscal management.
As a rated State, we are required to maintain and comply with high international
standards of financial reporting requirements.  With this, we are benchmarked against
our peers or sub-sovereign entities worldwide.  This is by no means an easy task.  To
maintain and sustain investment-grade ratings, we are compelled by the rating agencies
and financial institutions to consistently manage our finances professionally,
conservatively, transparently,  prudently and responsibly.  These international rating
houses are highly professional, critical and objective in their credit quality assessment.
Their credit opinion amongst others, is based on a combination of in-depth analysis and
independent judgement.  In short, they have the highest level of independence and
integrity in giving their credit ratings.  At the same time, being known in the international
capital markets, the State is also under the close scrutiny of the capital market investors
who have their own set of investment criteria in assessing the investment risks of the
State. So far, Sarawak enjoyed a very good name among investors internationally.
Good as our rating are, we must not be complacent, but must have to strive to ensure
our financial position remains sound and our socio-political environment to be continue
stable.  It is much more critical now for the State to ensure the sustainability of its credit
ratings in view of the efforts to attract more direct and indirect investments to the State in
a big way.  We must also note because of our allocation, we get much less dependency
on the Federal Government initiatives than states in peninsular Malaysia.
As such, continuous efforts must be undertaken to enhance and strengthen our
social  and economic policies, budgetary discipline, prudent and conservative financial
management, and above all, political stability in the State.  These call for great
commitments and diligences from all levels of Government machinery.
In short, great responsibilities rest on our shoulder to maintain and sustain the
State’s socio-economic and financial standing, so that the State is able to position itself
in the eyes of both the international and domestic investors as “The Choice” for direct
and indirect investments.BELUM DISUNTING
19 NOVEMBER 2012
Tuan Speaker, in conclusion I would like to say this. The State Government
would continue to provide the necessary infrastructural facilities and incentives, as well
as the administrative support to ensure a more conducive and cost effective business
environment to further stimulate the State economy as a good and preferred destination
for investment. At the same time, the private sector must also play an active role in
spearheading domestic economic activities in the State. Perhaps at this stage, because
we have to begin with a very heavy industries we have to build greater and emphasis to
bigger companies.  But when such industries are beginning to spin off downstream
industries we are slightly smaller. I am sure the local investors will find their presence will
stimulate further opportunities for them to participate in the industrialization of the state
and reap the benefit from it.
I am confident that our entrepreneurs, our business and industrial communities
will take up the challenges.  With continued commitment, and concerted effort, we can
build and strengthen the path towards higher growth and greater development.
Tuan Speaker, It is pivotal that Sarawak continues to establish a resilient society
which can respond to the challenges in this fast changing world.  In essence, we need to
continuously preserve our unity and harmony and to support the political leadership that
formulates long term strategic plan for the State and capable of resolving problems and
delivering services to the  rakyat.  We must continue to build a healthy and resilient
economy with sufficient financial resources to withstand uncertainties.  So far we have
done very well to occupy this position. On the other hand, the  rakyat ought to
understand and appreciate the State’s policies and directions in facing new challenges.
The new challenges will involve all and we expect good co-operation among all of us,
private and public sector, so as to make a great success of Sarawak venture to being a
more industrialize state to achieving higher income which will make our people having a
new opportunities to occupy better jobs with greater training and better prospect for a
sophisticated role in their own country’s development.
Tuan Speaker, dengan ucapan penutupan ini, saya mohon mencadangkan agar
Rang Undang-Undang ini dibaca kali yang kedua.

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