KUCHING: Sarawak has invested heavily in its renewable energy resources, i.e hydropower dams, said Deputy Chief Minister and Minister of Industrial and Entrepreneur Development and Second Minister of Urban Development and Natural Resources, Datuk Amar Haji Awang Tengah Ali Hasan.
“Apart from acquiring Bakun Hydro Power Dam (2,400 MW) from the Federal Government at a cost of RM8.1 billion, the State had also completed the Murum Hydro Power Dam (944 MW) at a cost of RM4.1 billion.
“Currently, the Baleh Hydro Power Dam with an installed capacity of 1,285 MW is under construction and should be commissioned by 2025 (estimated cost RM8.0 billion),” he said in his welcoming speech at the official opening of International Energy Week 2018 (IEW ‘18) by Chief Minister Datuk Patinggi Abang Haji Johari Tun Openg at Borneo Convention Centre Kuching (BCCK) here yesterday.
“Currently, our generation mix is 75% from renewable hydro and 25% from gas and coal resources to maintain diversity and security of supply,” he said.
Sarawak holds the largest share of remaining Malaysia gas reserve at 54% and holds one third of the remaining oil reserve at 29%. “We have prospered mainly because of these resources. But we cannot continue to export our natural resources in raw form.
“To ensure sustainability, the State is now embarking on more downstream value-adding petrochemical industries,” Tengah said. Tengah also disclosed that two such initiatives currently being planned are methanol and ammonia and their derivatives projects in Bintulu.
“Bintulu has the necessary infrastructure to become the regional hub for the petrochemical industries.
The setting up of Petroleum Sarawak Berhad or in short PETROS signifies the State seriousness in this direction,” he said.
According to Tengah, Sarawak’s attractiveness as a preferred investment destination was largely due to its political stability, business friendly policies, as well as its ability to provide modern infrastructure, competitive power and water tariffs, tax and non-tax incentives as well as a young and skilled workforce that support the growth of industries.
“Malaysia ranked second in ASEAN countries in the ease of doing business by the World Bank Report 2017 and 7th in Asia Pacific region. All these have contributed towards business confidence among investors and positioned Sarawak as one of the preferred investment destinations in the region.
In the last two years, Sarawak is among the top three preferred investment destinations for the manufacturing sector in Malaysia,” Tengah said.
He also said that for the year 2017 up to September, Sarawak had approved RM10.5 billion worth of investments and this did not include the proposed RM12.6 billion steel project and the RM8.4 billion methanol project in Bintulu.
“This achievement is not by chance but the result of our strong leadership, good planning and effective implementation by the State government,” he pointed out and assured that more investments are expected to come in to Sarawak. He also said since its inception in 2008, private investments in Sarawak Corridor of Renewable Energy (SCORE) had reached RM33.64 billion from 22 projects, mainly in energy intensive industries at Samalaju Industrial Park.
“These investments are expected to create 17,093 employment opportunities. In the Samalaju Industrial Park alone, the estimated current spin-off effects to the local economy were estimated at RM506 million per month,” he said, adding that Sarawak is also well positioned to be a producer of hydrogen fuel.
