Sarawak has to be defended from economic attacks and sabotage

By Muda Tengah

For the past few months PKR, DAP and its controlled NGOs have been conducting a massive smear campaign against Sarawak to sabotage SCORE.  But does Sarawakians realize DAP, PKR and its NGOs are depriving Sarawakians of millions of jobs in the future?

The old economic model of cheap labor to attract FDI (Foreign Direct Investment) has been outdated for the past decade.  Sanmina plant closure recently shows that the past economic model isn't viable and competitive.

Sanmina closed due to relocation to China

by Lim How Pim, Lian Cheng, Phyllis Wong and Anasathia Jenis, reporters@theborneopost.com. Borneo Post on November 2, 2012, Friday

HELP US, PLEASE: Retrenched workers demand that the state government step in to help them obtain better retrenchment benefits during a protest in Samajaya. — Photo by Chimon Upon

KUCHING: The closure of Sanmina-SCI Corporation (M) Sdn Bhd, Kuching (Sanmina-SCI) was the result of its San Jose headquarters’ decision to cut cost and move its operations to its new facility in Wuxi, China.

In a full transcript of Sanmina-SCI’s report on fourth quarter fiscal yearend 2012 earnings made available on line by Seeking Alpha, a Stock Market News, Opinion and Analysis specialist, its CFO Bob Eulau said the closure of the Kuching facility would help to cut cost by USD3 million to USD5 million on a quarterly basis.

“This was a difficult decision, but one that we believe positions us for better financial results in both the short and long term,” said Eulau.

The transcript which recorded real time discussions on Oct 31 also revealed that the decision to expand its printed circuit board manufacturing capacity in Wuxi China was made a couple of years ago and that an experienced team has been in place in Wuxi.

“With this closure, we were able to transfer a significant portion of the equipment in that factory (Kuching) to our new building in China.

“Our estimate is that we are saving approximately USD20 million to USD22 million.

“Once we complete this transition, we will have eliminated approximately USD3 million to USD5 million in costs that would have continued to be incurred on a quarterly basis. The payback period for this closure should be about six to nine months.”

The reports also quoted Wamsi Mohan, an analyst at Bank of America Merrill Lynch, who was among nine analysts present at the discussion posing the question to Eulau with regard to the closing of the Malaysian facility: “Your Malaysian footprint was about 5 per cent of your revenues; are you completely closing the Malaysian facility or is it a subset of that facility?”

To which chairman/CEO of Sanmina Jure Sola replied that the company was leaving some technology engineering group there that would be working on some research and development.

“We are not going to be manufacturing printed circuit board at that factory in the future. It’s a really high technology product, and based on present demand and future demand, we believe we can provide a better solution from China.”

  

Borneo Post end.

Sarawak and indeed even Malaysia cannot compete with China or even Vietnam in attracting FDI based on cheap labor alone.  West Malaysia is far more competitive than Sarawak in terms of infrastructure and international connectivity.  West Malaysia  has bigger and more diverse pool of human capital to offer MNCs (Multinational Corporations) to attract FDIs.  West Malaysia with its bigger population has a bigger consumer market than Sarawak.  So Sarawak is presently in an even more disadvantagous position than West Malaysia in atrracting FDIs.

The only way for Sarawak to remain competitive in the South East Asian or global market is give an added competitive factor to its offering to MNCs.  According to American and European surveys the future of manufacturing is automation.  In other words the most competitive factories in the future will be a factory with less human workers and more machines.  Therefore the overhead costs of such a maufacturing facility will have less manpower and more machine power.  Robotics and precision machinery is making it more competitive to produce products with less manpower.  The costs for manpower will be less and the cost of electricity will be more.  Therefore it would stand to reason that MNCs will look at power costs as a significant factor when they make their FDI decisions.

Tapping Sarawak's potential Hydro power is the only way to create millions of jobs for our children and grandchildren.  A combination of high skilled human capital and very competitive power rates will allow Sarawak to compete with West Malaysia and even other South East Asian countries in attracting FDIs.  This has been the vision of our YAB Pehin Sri Taib Mahmud for the past few years.  This is for all our children and grandchildren.

Sadly the opposition have taken upon themselves to destroy this future for Sarawakians.  They are willing to say and do anything to sabotage Sarawak SCORE.  PKR and DAP creates lies and spread slander on Sarawak's leader and the major infrastructure components that will make SCORE a success.  They don't care if more and more plant closes in Sarawak and no new FDIs come in to create replacement or new job opportunities.  The only thing PKR and DAP care about is to incite hatred towards Sarawak's leader and use Sarawak as part of their power grab of Putrajaya.

They use 1 or 2 locals and send them overseas pretending that these few people represent the majority of rural Sarawakians (the truth is a big majority of Sarawakians voted in this State Government and supported SCORE as their future).

 Peter Kallang misrepresent himself as leading majority of rural Sarawakians and spreads misinformation overseas

James Nyurang and Peter John Jaban

They admit (read below PKR-controlled FMT website) that they target to destroy SCORE by attacking the expertise or the foreign companies that can make SCORE a success.

Next target is Sjotveit, Norconsult

FMT Staff

 | December 6, 2012

Why is a reputed Norwegian hydropower company, Norconsult, supporting violations in Sarawak's mega dams project? ('violations' is pakatan controlled fmt subtle labelling (to imprint in reader's minds) and not proven or accepted in any court of law)

KUCHING: With Hydro Tasmania succumbing to public pressure and committed to phasing itself out of Sarawak following a damning national-level Australian campaign launched last week over its involvement in the Murum dam project and the ill-treatment of native communities here, focus is now on Sarawak Energy Bhd’s (SEB) Norwegian CEO Torstein Dale Sjotveit and Norconsult, another key player in the project.

Save River network, a coalition of Sarawak NGOs, and the Swiss-based Bruno Manser Fund (BMF) want Sjotveit and Norconsult out of Sarawak for the same reason they pushed for Hydro Tasmania’s pullout.

Having successfully mobilised Australians to pressure their government into compelling the pull-out of state-owned Hydro Tasmania from Sarawak, the group is now seeking to use the same modus operandi to purge Sjotveit and Norconsult from the state.

The coalition’s success with Hydro Tasmania was closely linked to it having anchored the support of Australian Greens party. The Greens are in a formal alliance with the Australian Labor Party in the Tasmanian Parliament.

The party together with Save Rivers launched a campaign last week which led to Hydro Tasmania’s announcement that it would withdraw from Sarawak by the end of 2013.

In a statement issued on Tuesday, BMF said they will continue with the campaign to save the rivers and the natives.

“We will continue with the campaign. The spotlight will now focus on the role of Norwegian expats and consultants in the Sarawak dams programme, such as the Sarawak Energy CEO, Torstein Dale Sjøtveit, and Norconsult.

“[We want to know] why are Sjøtveit and Norconsult involved in a project that Hydro Tasmania found unfit to support? ” said the statement.

Norconsult, which described itself as the “largest consulting engineering company in Norway” is assisting SEB in the development of the Sarawak Corridor for Renewable Energy (SCORE). It is a pet project of Chief Minister Taib Mahmud.

‘The sun will still rise’

by Lim How Pim, reporters@theborneopost.com. Posted on December 7, 2012, Friday

APPRECIATION: Taib looks at a memento presented to him by vice-chancellor and president of Swinburne University of Technology Prof Linda Kristjanson after the opening ceremony as Swinburne Sarawak pro vice-chancellor and chief executive Professor Ken Heskin looks on.

No impact if Hydro Tasmania pulls out of Sarawak, says Taib

KUCHING: Sarawak’s hydro-electric industry will remain intact even if Hydro Tasmania pulls out of the state by the end of next year.

Chief Minister Pehin Sri Abdul Taib Mahmud is completely confident that another corporation or two would join the state’s efforts to boost its renewable energy development.

Met by journalists here yesterday, he believed that non-governmental organisations (NGOs) had their agenda which did not seem to tag along with the state government’s visions.

“That has nothing to do with technology and it is part of the NGOs’ politics. Well, they pull out, never mind. We can have somebody else.

“Bukan kerana ayam tak kokok, hari tak siang (It does not mean that there is no daylight if the cock does not crow),” he said after opening the Swinburne Sarawak Research Centre at the university’s campus here.

He was asked to respond to an online report that Hydro Tasmania would leave the state by the end of next year due to strong pressure from local and international NGOs.

End of Borneo Post.

If Sarawakians are taken in and fooled by this PKR and DAP strategy what will be the future of employment in Sarawak?  West Malaysia and other South East Asian countries will take off leaving Sarawak behind with no competitive economic base.  Millions of Sarawakians will have to look for jobs in China (as per the below thestar newspaper article) or Vietnam.

Sunday December 2, 2012

It’s tough but so is life

By YU JI
yuji@thestar.com.my

KUCHING: A number of retrenched Sanmina-SCI Corporation (Malaysia) Sdn Bhd workers are going as far as China for new employment.

Spokesman for the group of retrenched workers James Jalai Gayau, 43, said a handful had actually secured similar jobs in China and would be moving there soon.

“Some of them are going to China, not with Sanmina-SCI; they found jobs with other companies there. It’s tough. I ask you, how many of us can find printed circuit board (PCB) jobs in Malaysia?” Jalai told The Staryesterday.

“A few others have also followed Sanmina-SCI to China, mostly the higher ranking staff who are going to finish their contracts so they can get their bonuses. After that, they will come back and face the same problems that we have here,” said Jalai, who worked at the just-closed factory for 16 years.

End of thestar article.

It is my hope that all Sarawakians look at SCORE rationally and analytically.  Sarawak's leader is trying to create a strong economic future for Sarawakians.  We can help or we can destroy our own future.