Kota Kinabalu: Institute of Development Studies (IDS) Sabah Deputy CEO II Chong Vun Then (pic) opined the Federal and State governments need to invest more to develop Sabah’s new economy to make the State a more attractive place for foreign companies to set up operations.
He opined that the governments in the past had not invested enough in the economy. As an example, he pointed to fellow forum panel speaker Datuk John Lo’s claim that one of his sons had to go to work in Singapore to make a good living. He said it was the private sector that could drive the progress.
Besides slow internet connection speed, foreign investors came and found that human resources lack talents as many graduates and skilled workers left to work overseas, coupled with power and water supply issues. Why were there so few companies employing skilled graduates setting up shops in Sabah? That’s the more fundamental question that Sabah decision makers need to address, Chong said.
“Sabah has to find its way in the new economy when making new policies. For the economy to grow all the time, you have to reinvent and find the ways to fill the niche from strengths, not just doing the generics.”
“We have to embrace changes to our economy. The 5G thing is so big, AI is so big. You got to know how wealth is created in the future. Then we have a hope of changing our economy.”
“5G and AI are the new wealth creators, no longer how much oil you produced, much paddy you produced etc. The private sector knows a lot of things but is waiting for the government to act. If funding is required, Sabah lacks the financial resources. Sabah has to rely on the government. Applying funds under the 12th Malaysia Plan if you applied for the money, you have to fit in to the criteria.
“Things need not be so gloomy. You need leaders to understand. The private sector knows a lot of things, they are just waiting for the government to act.”
He opined that Sabah did not have a lot of fiscal ways to spend with small budgets to boost the economy. If money was needed to set off something, Sabah didn’t have the money.
There was limited leeway to move and had to rely on the federal government for funding.
“The politicians and the governments did not seem to be able to deliver on time. They were slow to react. They had to study and approve matters.”
“Sabah and Sabahans seem to be a patient lot. The fact of the matter you don’t get what you want due to being so nice.”
“Look at the fuel subsidy issue. It still being streamlined and when it comes to implementing policies, there’s a shortfall. You can blame it on politicians. You can blame it on people who help them to devise the programmes. Somehow, they don’t seem to be able to deliver on time. The problems tend to be accelerated because they didn’t do things on time and things are getting worse.”
“Same thing for affordable housing which is an issue here. Sabah is one of the four critical state with unaffordable housing prices in relation to income level. We earn less than most West Malaysians and our housing prices are higher.”
“This is rather critical in Sabah than more so in Peninsular Malaysia.”
“Look at it this way, we earn less than most in Peninsular Malaysia and our housing prices are starkly higher than the rest of Malaysia. We are the worst off in Malaysia.”
Chong opined that Sabah and Sabahans were a very patient lot. When the Federal govt did not give the funds asked, the local leaders were also meekly acceptive of the excuses and reasons proffered.
On the high prices and making ends meet, Chong said that in the last 20 years, there were new big economic players in the international arena like China and its demands for commodities drove up prices and because China was the factory of the world, some prices of manufactured goods have dropped.
Thus, China is a big player in affecting prices to an extend when goods are freely tradeable. But local salaries stayed near stagnated in the advent of availability of cheap foreign labour.
“Chinese demand has been a determinant of world prices which is good for exporter countries like Australia for a while when it exported a lot of commodities to China, but bad when compared to those competing with China in manufacturing.”
“Just look at tourism, because of the Covid-19 outbreak, there are less tourists coming to Sabah. And you go to towns and the markets, you notice that the prices have come down. Things are cheaper. Seafood have gone down. Food have gone down. Hotel rates have gone down. This is due to the downturn in China’s demand factor,” Chong Vun Then opined.
IDS Director Anthony Kiob suggested that the World Bank Group undertake ‘Happiness Index’ survey (like in Bhutan which scored high for its people’s happiness as a priority rather than GDP data) in rural and urban areas as he opined that it was a wonder to him why the rural populace seemed happier despite the woes besetting the Sabah Economy.
