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KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

by<br />

YB DATUK HJ. DAUD ABDUL RAHMAN<br />

ASSISTANT MINISTER OF INDUSTRIAL DEVELOPMENT<br />

SARAWAK


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

CONTENTS<br />

1. Introduction<br />

2. Industrial Framework<br />

3. Sarawak Economy<br />

4. Ministry <strong>of</strong> Industrial Development (MID) Sarawak<br />

5. State Industrial Development Phases<br />

6. Regional Corridor Development Authority (RECODA)<br />

7. Sarawak Corridor Renewable Energy (SCORE)<br />

8. Modern Infrastructure Development and Excellent Facilities<br />

9. Opportunities and Challenges<br />

10. Challenges<br />

11. Conclusion


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

1. INTRODUCTION


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

SARAWAK VISION<br />

INTRODUCTION<br />

<br />

To be an <strong>industrial</strong>ized state with emphasis on sustainable <strong>development</strong> and<br />

good quality <strong>of</strong> life<br />

STRATEGIES/APPROACHES<br />

To perform a structural transformation to increase the contribution <strong>of</strong><br />

manufacturing sectors to GDP


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

2. INDUSTRIAL FRAMEWORK


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

NATIONAL<br />

INDUSTRIAL FRAMEWOK<br />

<br />

Industrial Master Plan (IMP)<br />

STATE<br />

<br />

<br />

Sarawak Industrial Development Plan (SIDP)<br />

Sarawak Corridor <strong>of</strong> Renewable Energy (SCORE)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

INDUSTRIAL FRAMEWORK<br />

INDUSTRIAL MASTER PLAN (IMP)<br />

<br />

<br />

<br />

To chart out policies, thrusts and direction for the manufacturing sector<br />

IMP provides the framework for Malaysia to be an <strong>industrial</strong>ized nation<br />

status by 2020<br />

To enhance <strong>industrial</strong>ization programs and <strong>industrial</strong> <strong>development</strong>


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

INDUSTRIAL FRAMEWORK<br />

SARAWAK INDUSTRIAL DEVELOPMENT PLAN (SIDP)<br />

INTRODUCTION<br />

<br />

SIDP was commissioned by the State Planning Unit and was conducted by<br />

Malaysian Institute <strong>of</strong> Economic Research (MIER)<br />

SIDP is a plan that guides the State in the :<br />

formulation, implementation, and monitoring <strong>of</strong> Industrial Development<br />

Policies, Strategies and Programmes in Sarawak


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

INDUSTRIAL FRAMEWORK<br />

SARAWAK INDUSTRIAL DEVELOPMENT PLAN (SIDP)<br />

PROMOTED INDUSTRIAL CLUSTERS<br />

I. Resources-based Clusters<br />

i. Wood-based<br />

ii. Agro-based<br />

iii. Petrochemicals<br />

iv. Palm Oil-based<br />

v. Ceramics<br />

II.<br />

Non Resources-based Clusters<br />

vi.<br />

Shipbuilding<br />

III.<br />

Policy-driven Clusters<br />

vii. Electrical & Electronics<br />

viii. Biotechnology


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

INDUSTRIAL FRAMEWORK<br />

REGIONAL CORRIDOR DEVELOPMENT CONCEPT : SCORE<br />

<br />

The Regional Corridors Development Authorities Bill 2006 was passed by<br />

State Government in 2006<br />

<br />

<br />

<br />

<br />

The Bill provide a new <strong>development</strong> model and framework for <strong>industrial</strong><br />

<strong>development</strong> in the central region <strong>of</strong> Sarawak<br />

Key <strong>industrial</strong> growth areas cover 70,780 square kilometres<br />

Comprehensive <strong>development</strong> <strong>of</strong> infrastructure, housing, commercial and<br />

manpower<br />

Special Emphasis : Development and useage <strong>of</strong> hydro-electric power


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

3. SARAWAK ECONOMY


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

SARAWAK ECONOMY<br />

Dominated by several primary sectors, namely mining and quarry,<br />

agriculture, livestock production, forestry and logging<br />

<br />

<br />

<br />

Petroleum and LNG are the largest contributors to the Sarawak’s GDP<br />

In 1980, the share <strong>of</strong> manufacturing sector to the State’s GDP was only<br />

7.7%<br />

The GDP performance <strong>of</strong> Sarawak was assisted by the manufacturing sector,<br />

especially with the gigantic investments, particularly in liquefied natural gas<br />

(LNG), urea/ammonia etc.<br />

Manufacturing sector contribution to GDP :<br />

‣ 1987 - 13%<br />

‣ 2000 - 22%<br />

‣ 2008 - 24.9% (estimated)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

4. MINISTRY OF INDUSTRIAL DEVELOPMENT<br />

SARAWAK<br />

(MID)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

MINISTRY OF INDUSTRIAL DEVELOPMENT SARAWAK (MID)<br />

MID was established in 1987 to undertake the vigorous structural<br />

transformation <strong>of</strong> the State’s economy and in spearheading the State<br />

<strong>industrial</strong> growth.<br />

<br />

MID is the lead agency responsible for the overall <strong>industrial</strong> planning,<br />

promotion, coordination and implementation <strong>of</strong> <strong>industrial</strong> <strong>development</strong><br />

activities in the State


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

5. STATE INDUSTRIAL DEVELOPMENT PHASES


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

STATE INDUSTRIAL DEVELOPMENT PHASES<br />

Pre-Industrialization<br />

Export Oriented<br />

Industrialization <strong>of</strong><br />

Primary Resources<br />

Manufacturing<br />

Diversification<br />

Regional Corridor<br />

Development<br />

(1963-1980) (1980-1990s) (1990-2000) (2006-2030)<br />

<br />

<br />

<br />

Extractive Industry<br />

‣ Logging<br />

‣ Mining (Crude<br />

Petroleum)<br />

Agriculture<br />

Manufacturing<br />

‣ Limited primary<br />

processing <strong>of</strong> resources<br />

‣ Import Substitution<br />

<br />

Export Oriented<br />

Processing <strong>of</strong> Primary<br />

Resources<br />

‣ Timber & Wood-based<br />

Products<br />

‣ Petrochemical and<br />

Natural Gas<br />

<br />

<br />

Industrial Deepening and<br />

Enhanced Value Added<br />

‣ Wood based industry<br />

‣ Food Processing<br />

‣ Ceramics<br />

‣ Palm Oil Based<br />

‣ Shipbuilding<br />

‣ Petrol Chemical<br />

‣ Biotechnology<br />

‣ Electrical & Electronics<br />

Diversification into<br />

Electronics & High Tech<br />

Industry<br />

‣ Sama Jaya Free<br />

Industrial Zone<br />

<br />

Capital and Energy<br />

Intensive Industries<br />

‣ 10 Priority Industries<br />

Agriculture/Agrobased<br />

Industries<br />

• Livestock Industry<br />

• Fishing &<br />

Aquaculture<br />

Industry<br />

• Palm Oil Industry<br />

• Timber-based<br />

Industry<br />

Manufacturing<br />

• Oil-based Industry<br />

• Aluminium Industry<br />

• Steel Industry<br />

• Glass Industry<br />

• Marine Engineering<br />

Industry<br />

Services<br />

• Tourism Industry<br />

<br />

Export Oriented Food<br />

Processing<br />

‣ Halal Hub at Tanjung<br />

Manis


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

6. REGIONAL CORRIDOR DEVELOPMENT AUTHORITY<br />

(RECODA)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

REGIONAL CORRIDOR DEVELOPMENT AUTHORITY (RECODA)<br />

INTRODUCTION<br />

<br />

RECODA was formed under the Regional Corridors Development Authorities<br />

Ordinance, 2006<br />

To ensure the success implementation <strong>of</strong> the Sarawak Corridor <strong>of</strong><br />

Renewable Energy (SCORE) by 2030<br />

ROLES<br />

Plan, implement, manage and promote <strong>development</strong> <strong>of</strong> the Regional<br />

Corridor<br />

<br />

<br />

Ensure more expeditious and efficient mobilization and optimizing the use <strong>of</strong><br />

natural resources including water and hydropower <strong>of</strong> the State to facilitate<br />

<strong>development</strong> <strong>of</strong> the Corridor<br />

Service investors and clients at the Corridor


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

7. SARAWAK CORRIDOR RENEWABLE ENERGY<br />

(SCORE)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

SARAWAK CORRIDOR RENEWABLE ENERGY (SCORE)<br />

SCORE was launched by YAB Prime Minister on 11 February 2008<br />

<br />

<br />

<br />

SCORE provides the right <strong>development</strong> model and modus operandi to bring<br />

about greater and more accelerated <strong>industrial</strong> and business <strong>development</strong> to<br />

the central region <strong>of</strong> Sarawak<br />

SCORE requires investment <strong>of</strong> RM334 billion over 20 years<br />

Potential investors from Korea, United Kingdom, Australia, Taiwan, Japan<br />

etc


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

8. MODERN INFASTRUCTURE DEVELOPMENT AND<br />

EXCELLENT FACILITIES


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

ROAD NETWORKS<br />

MODERN INFRASTRUCTURE DEVELOPMENT<br />

AND EXCELLENT INDUSTRIAL FACILITIES<br />

Good Road Network :<br />

ThePanBorneoHighwaylinkstheNorthEastroutefromSarawaktoSabah<br />

and Brunei, and the South West route links Sarawak to West Kalimantan in<br />

Indonesia<br />

<br />

<br />

Connects Kuching to all major towns and cities in Sarawak<br />

Road system are constantly upgraded to cater to the increasing traffic<br />

volume in the State


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

PORTS<br />

MODERN INFRASTRUCTURE DEVELOPMENT<br />

AND EXCELLENT INDUSTRIAL FACILITIES<br />

Good seaports handling international and coastal ships :<br />

Kuching Port, Senari Port, Miri Port, Rajang Port, Bintulu Port and Tanjung<br />

Manis<br />

<br />

<br />

Modern and fully equipped facilities to handle general and bulk cargo in dry,<br />

liquid or gaseous forms<br />

New port at Sama Laju


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

MODERN INFRASTRUCTURE DEVELOPMENT<br />

AND EXCELLENT INDUSTRIAL FACILITIES<br />

UTILITIES – ELECTRICITY & WATER<br />

<br />

<br />

<br />

Syarikat SESCO Berhad provides electricity for <strong>industrial</strong>, commercial and<br />

residential usage<br />

The power generation capacity is more than 900MW<br />

Hydropower potential <strong>of</strong> 28,000 MW<br />

Sources <strong>of</strong> power generation :<br />

i. Coal (21.74%)<br />

ii. Gas (49.79%)<br />

iii. Diesel (18.74%)<br />

iv. Hydroelectric power (9.73%)<br />

<br />

Water supply in Sarawak is readily available and adheres strictly to the<br />

international standards <strong>of</strong> the World Health Organization (WHO)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

MODERN INFRASTRUCTURE DEVELOPMENT<br />

AND EXCELLENT INDUSTRIAL FACILITIES<br />

INDUSTRIAL ESTATES DEVELOPMENT<br />

<br />

<br />

To develop more <strong>industrial</strong> land for investors<br />

Industrial Zones/Estates are strategically located and with well-planned<br />

infrastructures :<br />

i. Good road network<br />

ii.<br />

Adequate supplies <strong>of</strong> reliable water and electricity<br />

iii. Modern and reliable amenities and facilities


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

9. OPPORTUNITIES AND CHALLENGES


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

OPPORTUNITIES<br />

OPPORTUNITIES AND CHALLENGES<br />

<br />

Sarawakisrichinnaturalresources<br />

Natural resources and reserves :<br />

i. Petroleum - 1,298 million barrels<br />

ii. Gas - 40.9 trillion standard cubic feet<br />

iii. Coal - 1,483 million tones<br />

iv. Silica Sand - 56.6 million tons<br />

v. Kaolin Clay - 21.8 million tons


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

CHALLENGES<br />

OPPORTUNITIES AND CHALLENGES<br />

<br />

<br />

Accelerate the structural transformation <strong>of</strong> the State’s economy<br />

Diversify the economic bases<br />

Competing with other <strong>development</strong> countries such as China, India,<br />

Vietnam etc.


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

OPPORTUNITIES AND CHALLENGES<br />

OPPORTUNITIES IN THE INDUSTRIAL SECTOR<br />

10 PRIORITY INDUSTRIES AT SCORE


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

OPPORTUNITIES AND CHALLENGES<br />

OPPORTUNITIES IN THE INDUSTRIAL SECTOR<br />

PETROCHEMICAL INDUSTRIES<br />

<br />

<br />

<br />

<br />

<br />

Large deposit <strong>of</strong> natural gas and oil<br />

Bintulu is the largest location for the export <strong>of</strong> natural gas for Malaysia<br />

Setting up <strong>of</strong> more gas related and petrochemical industries in Bintulu and<br />

Samalaju<br />

Hydro-Electric Power Station at the Bakun Dam is expected to generate a<br />

capacity <strong>of</strong> at least 2,400MW<br />

Samalaju Industrial Park for high-energy intensive industries


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

OPPORTUNITIES AND CHALLENGES<br />

OPPORTUNITIES IN THE INDUSTRIAL SECTOR<br />

FORESTRY & WOOD-BASED INDUSTRIES<br />

<br />

<br />

Major sources <strong>of</strong> export earning industries<br />

Great opportunities to produce more value-added products<br />

AGRO & FOOD-BASED INDUSTRIES<br />

<br />

<br />

Good potential in agriculture, food crops and aquaculture<br />

To expand the scope <strong>of</strong> downstream products for creating full fledge clusters<br />

<strong>of</strong> Agro-based Industry<br />

Target : one million hectares <strong>of</strong> land for oil palm plantation by 2010<br />

<br />

<br />

Potential for Aquaculture and Fish Processing Industries at Tanjung Manis<br />

9,000 hectares <strong>of</strong> <strong>industrial</strong> land at Halal Hub Centre (Tanjung Manis)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

OPPORTUNITIES AND CHALLENGES<br />

OPPORTUNITIES IN THE INDUSTRIAL SECTOR<br />

BIOTECHNOLOGY<br />

<br />

8.2 million hectares <strong>of</strong> forests : Abundant and rich biodiversity<br />

Established Sarawak Biodiversity Centre to coordinate, participate and<br />

facilitate bio-prospecting programmes<br />

ELECTRICAL & ELECTRONIC (E&E) INDUSTRIES<br />

<br />

<br />

<br />

Attract and promote leading edge technologies into the State<br />

Main player in the structural transformation <strong>of</strong> the State’s economy<br />

Higher percentage <strong>of</strong> tax exemption under the pioneer status, investment<br />

and reinvestment schemes for E&E at Sama Jaya Free Industrial Zone<br />

(SJFIZ)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

OPPORTUNITIES AND CHALLENGES<br />

OPPORTUNITIES IN THE INDUSTRIAL SECTOR<br />

SHIPBUILDING INDUSTRIES<br />

<br />

<br />

<br />

<br />

<br />

<br />

Sarawak has long culture <strong>of</strong> river transportation<br />

Sarawak has skillful artisans, craft men and engineers<br />

Huge potential to enhance export markets to Singapore, Indonesia, Vietnam<br />

and others ASEAN countries<br />

45% <strong>of</strong> the ship building companies are SMIs<br />

Plenty <strong>of</strong> opportunities for the industry to expand<br />

Shipbuilding Estates - Tanjung Manis (Mukah), Rantau Panjang (Sibu) and<br />

Kuala Baram (Miri)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

10. CHALLENGES


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

CHALLENGES<br />

<br />

To attract more investment into the State<br />

Drop in global Foreign Direct Investment due to external factors :<br />

i. Greater competition from emerging economies<br />

ii. Global economic uncertainties<br />

<br />

Emerging economies (China and India)


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

CHALLENGES<br />

DOMESTIC AND SMIs DEVELOPMENT<br />

STRATEGIES<br />

<br />

<br />

<br />

<br />

Promoting domestic investment and SMIs<br />

Attracting niche industries<br />

Emphasing greater technological <strong>development</strong><br />

More knowledge-driven workforce


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

HUMAN CAPITAL DEVELOPMENT<br />

STRENGTH<br />

CHALLENGES<br />

<br />

<br />

<br />

Young, productive and trainable workforce<br />

Good education institutions to train up workforce<br />

Well-trained and experience pr<strong>of</strong>essionals for higher value-added and highend<br />

industries


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

CHALLENGES<br />

GLOBAL ECONOMY AND INDUSTRIES ACTIVITIES<br />

Uncertain global investment climate resulted lower occupancy rate for<br />

<strong>industrial</strong> lots<br />

<br />

<br />

Need to pent-up demand for <strong>industrial</strong> lots<br />

Involve private sector participation in <strong>industrial</strong> lot <strong>development</strong>


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

11. CONCLUSION


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak<br />

CONCLUSION<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

Rich in Natural Resources<br />

Political Stability<br />

Efficient Administrative System<br />

Well Equipped Industrial Zones and Estates<br />

Good Infrastructure<br />

Modern Services Facilities<br />

Good Quality <strong>of</strong> Life<br />

Attractive Incentives<br />

Capable Human Resources


KEMENTERIAN PEMBANGUNAN PERINDUSTRIAN SARAWAK<br />

Ministry <strong>of</strong> Industrial Development Sarawak

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