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Thursday, 1 April 2010

Sabah left out of NEM, says former CM

KOTA KINABALU: The much anticipated New Economic Model (NEM) launched by Prime Minister Najib Tun Razak on Tuesday is a disappointment, said a top Sabah politician.

Progressive Party (SAPP) president Yong Teck Lee said the NEM had missed out on strategies on lessening imbalances in development between the Peninsula and Sabah and Sarawak.

"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 Peninsular Malaysia.

"This issue has been completely left out of the NEM," said Yong who was once the chief minister of the state.

He said of the eight key sectors, only oil and gas, oil palm and tourism are directly relevant to Sabah.

"Even then, the potential of these three key sectors are because of Sabah’s own natural resources like 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," he said.

Yong said it was also worrying that the NEM 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. It should not have been omitted."

He said Najib had missed an opportunity to boost business confidence in Sabah by committing the federal government to the building of the Labuan Bridge in either the 10th or at the latest the 11th Malaysia Plan.

"The NEM also missed out on any strategies to enhance maritime activities and trade in the 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."

Yong also found the NEM lacking in its 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," he said of the controversial push to build the plant despite the objections of a wide section of the state's population.

He said SAPP feels that it is the 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."

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