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KUCHING, Sept 14: Special tax incentives or grants for the establishment of certain high-tech or high-end industries in Sarawak can be a way for the Federal government to compensate Sarawak fairly, according to Stampin MP Chong Chieng Jen.
Chong emphasised that it should include certain preferential industrial development policies to boost and elevate Sarawak’s industrial development.
“In the past and up to today, Sarawak has shared its oil and gas to fuel the development of the nation but the State was not properly and fairly compensated.
“This has resulted in a general sentiment of resentment amongst all Sarawakians which is not conducive to national unity and integration. Such mistakes ought not be repeated.
“When I speak of properly and fairly compensated, I am not referring to merely in terms of allocation or price of purchase of the energy,” he said during the debate on the 12th Malaysia Plan (12MP) mid-term review held today in Parliament in Kuala Lumpur.
He pointed out that in 12MP, one of the three themes is ‘Advancing Sustainability’ which focuses on advancing green growth and sustainable energy.
He added that it is also in line with Malaysia’s commitment to the international community pledging to reduce carbon dioxide (CO2) intensity against gross domestic product (GDP) by 45 per cent by 2030 and to achieve a net-zero carbon emission country by 2050, with clean energy and low carbon emission being critical to meeting the targets.
“To this end, Sarawak will play an important role with its hydroelectric dams and vast areas of forest.
“However, despite these great contributions by Sarawak towards our nation’s Sustainable Development Goals (SDGs), Sarawak is not properly rewarded by the Federal government in the formulation of our development policies.”
Chong, who is also Padungan assemblyman, continued, “Given the international emphasis on CO2 emission, and more multinational companies setting targets to achieve net-zero carbon emission in the next few years, clean and renewable energy is now a more valuable commodity than oil and gas. Sarawak has excess of this clean hydro power.
“That is why Sarawak Energy Berhad is engaging in talks with Singapore to sell electricity to Singapore, but the Federal government is not in favour of such an idea.
“We do agree that in the interest of the nation as a whole, such clean energy should be reserved for industrial development of the country rather than to help our neighbours. However, Sarawak should also be properly and fairly compensated for reserving this clean energy for the nation.”
“I thus propose five strategies to attract investors to invest in Sarawak and spur the industrialization of Sarawak such as tax incentives and grants to attract those who invest and set up plants in Sarawak; upgrade the port facilities in Sarawak; create more Free Trade Zones in Sarawak; reduce bureaucracy and expedite applications for investment and consolidate both the Federal and State approving agencies for investment into Sarawak and build a Trans-Borneo Rail to reduce the transport costs in Sarawak.
“With sufficient policy incentives from the Federal government, I believe foreign direct investment (FDI) considering investing in Malaysia will make Sarawak its destination,’ he said. — DayakDaily
