PREAMBLE
I would like to express my appreciation and thank to the honourable minister who had participated in the debate and their support for the Bill that has been tabled, namely Supply (2023) Bill, 2022; Electronic Sarawak Government Activities Bill 2022; Constitutions of the State of Sarawak (Amendment)(2) Bill 2022; Sarawak Sovereign Wealth Future Fund Board Bill 2022; Sarawak Timber Industry Development Corporation (Amendment) Bill 2022; and Veterinary Public Health (Amendment) Bill 2022.
With these approvals, the government can now move forward to implement the Bills for efficient running of the Government for the benefits of our rakyat.
Throughout this sitting, members of this august House had raised many issues and concerns, which cover various aspects, including infrastructure and utilities development, digital economy, rural development, education and social development.
I believe my line of Ministers, in their respective winding up speeches, have detailed out their responses to these issues and concerns. I, therefore, will not touch on specific matters but rather, I would like to provide a forward direction to create a conducive environment to strengthen our socio-economic development in face of the challenging global uncertainties and economic slowdown.
UPHOLDING REVERENCE TO HIS ROYAL HIGHNESS THE YANG DI-PERTUAN AGONG
We have successfully carried out our responsibility to elect a new Federal Government at the 15th General Election (GE15) which was held on 19th November 2022. However, as we are all aware, the election ended in a hung parliament where no party has a majority to form a Federal Government.
Therefore, we uphold the reverence of His Majesty the Yang Di-Pertuan Agong because with his wisdom and authority and that of the Council of Malay Rulers, the political crisis was successfully resolved in a peaceful, harmonious and peaceful manner, as enshrined in the Federal Constitution.
This clearly shows that the institute of Malaysian Constitutional Monarchy Government Institute is a pillar of national sovereignty that must be upheld.
As Malaysians who are abide by the advice of the Yang Di-Pertuan Agong, the GPS government has put full faith in the decision of His Majesty and the Council of Malay Rulers to appoint the 10th Prime Minister of Malaysia and subsequently establish a Unity government.
This proves that the GPS government is a model government that always upholds the Rukun Negara principle, which is Belief in God; Loyalty to King and country; Supremacy of the Constitution; Rule of Law; and Politeness and Decency.
Under this Unity government, Sarawak government will work together with Federal Government to ensure political stability and economic prosperity of our nation.
CONGRATULATIONS TO THE NEW PRIME MINISTER OF MALAYSIA AND APPRECIATION TO THE FORMER PRIME MINISTER OF MALAYSIA
I would like to congratulate the Most Honorable Datuk Seri Anwar Ibrahim on his appointment as the 10th Prime Minister on 24 November 2022.
Our hope in Sarawak is that with the establishment of the Unity government under his leadership, many developments can be implemented and all the rights of Sarawak can be fulfilled for the sake of unity in Malaysia.
Our representatives in the Unity government will ensure that all policies and initiatives of the Federal Government will take into consideration the well-being of our rakyat and Sarawak’s status, rights and interests within the Federation in accordance with our constitutional rights under the Malaysia Agreement 1963 and the IGC Report.
On this occasion too, allow me to express my deepest appreciation and gratitude to former Prime Minister Datuk Seri Ismail Sabri Yaakob for all his services and contributions in the socio-economic development of Sarawak.
THANK YOU TO THE PEOPLE OF SARAWAK FOR THE SOLID SUPPORT TO GPS IN GE15
With full of gratitude, my colleagues and I in the GPS government would like to thank the people of Sarawak for supporting the GPS government by giving us a big win in GE15.
GPS won 23 seats out of 31 parliamentary seats it contested compared to only 18 seats in GE14. This big mandate shows the people’s confidence in the GPS government to continue to lead Sarawak’s leadership in defending Sarawak’s rights and developing the socioeconomics for the sake of the people.
I am confident that the success of this GPS will enable a stronger voice for the people of Sarawak in Parliament and also in the Unity Government to fight for our interests. The GPS government will not let the people of Sarawak down for their support.
As a local party, represented by Sarawak’s multiracial community, GPS is the only party that is sincere and puts Sarawak first.
GPS COMMITTED TO DEVELOP SARAWAK FIRST: TOWARDS AN INCLUSIVE, PROSPEROUS AND HARMONIOUS SOCIETY
Sarawak, like other countries, is confronted with many challenges caused by global economic slowdown and geo-political tensions especially over the past few years when the COVID-19 pandemic disrupted the world’s goods and services supply chains. While these uncertainties have created many downside risks to, and concern for Sarawak’s economy, they certainly have also given us the opportunity to demonstrate our resilience to overcome economic adversity and develop the Post COVID-19 Development Strategy 2030 (PCDS 2030) that would put Sarawak on a clear pathway towards achieving a high income economy status by 2030.
I am glad to see Sarawak economy is picking up and on track of recovery as we move towards endemicity. But, we, the GPS government will not rest on our laurels. We will continue to bring more development to Sarawak and fight against all odds and challenges that may come our way.
Importantly, Sarawak need to focus on improving our work efficiency and culture to achieve higher productivity, higher GDP growth and enhance the competitiveness of our commercial and industrial sectors to gain confidence of investors especially foreign investors.
GPS government will continue to provide the impetus for driving Sarawak’s economic growth by improving basic infrastructure and transportation, air and sea connectivity and accessibility, development of talents through better system of education and training, increasing the pace towards digital economy and uplifting the standards of living of the rural population.
This will create opportunities for fellow Sarawakians to participate in our industrial development especially in resource-based industry, namely our oil and gas sector.
I have established PETROS in 2017 and now I am pleased to inform this august House that PETROS has grown to be third largest oil and gas company in Malaysia after PETRONAS and Shell in its equity in hydrocarbon resource base.
In the offshore exploration and production space, PETROS has:
• Three (3) Offshore Producing PSC (or Production Sharing Contracts); and
• Four (4) Offshore Exploration PSC.
For Onshore exploration and production, PETROS has:
• 100% right as accorded by the Oil Mining Ordinance 1958 {OMO 1958}.
The PETROS Sarawak Gas Roadmap is indeed a game changer and will change socio-economic landscape of Sarawak by 2030 via creations of four gas hubs – Miri, Bintulu, Samalaju and Kuching.
Through these hubs, it will serve the whole Sarawak similar to the “Hub & Spoke” model – delivering a state-wide access to sufficient and affordable gas supply and clean energy.
In the immediate term, PETROS will deliver two projects as part of Sarawak Gas Roadmap:
• First project is Miri Hub – 400MW Power Plant to ensure northern Sarawak Energy Security; and,
• Second is Samalaju Hub – PETROS will lay gas pipeline and together with SEB, build a power plant. This is critical to complete Samalaju as heavy industry zone and to ensure reliability of electricity supply to the heavy industries there.
These projects alone will require an investment of around RM6.0 billion. Over 10 years, across the four hubs, the total projected investment is RM65 billion inclusive of downstream value-add industries, enabling access to gas beyond Miri and Bintulu to all parts of Sarawak.
PETROS and relevant State agencies are busy promoting such opportunities to downstream investors.
As we move with the fast-changing world megatrend, Sarawak has taken a bold step by embarking on digital economy as the key enabler to accelerate efficiency and productivity. This allows us to diversify our economic activities and explore new economy.
Innovation and technology will play an increasingly significant role to drive a sustainable economic growth towards a prosperous and progressive Sarawak.
We acknowledge there are challenges in balancing between socioeconomic development and environmental sustainability. Our lives and livelihoods are affected by climate change. For example, we have seen how the extreme weather events this year, such as large-scale floods and prolonged droughts in some countries have caused devastating damage to their economies and also all over the world.
Therefore, GPS government gives due emphasis to develop green economy. We started early with our development on renewable energy such as hydropower, of which we will ensure we maintain our energy generation mix of 60% from renewable energy.
NEW ECONOMY FOR ECONOMIC GROWTH
This august House had, in May this year, passed the amendments to Forests Ordinance and Land Code to enable Sarawak to initiate activities that will reduce the emission of greenhouse gases (GHG) to mitigate the effects of global warming. Rules will soon be made by the State Cabinet pursuant to these amendments to regulate forest carbon activities, including afforestation and reforestation, and the storage of carbon dioxide (CO2) and other GHG in both the offshore and onshore areas of Sarawak.
These activities, which would be undertaken in accordance with protocols and the Clean Development Mechanism formulated under the Kyoto and Paris Agreements on Climate Change, will yield tradeable carbon credits and provide a new source of revenue for Sarawak.
Under the forest carbon activities concept, after decades of logging for merchantable timbers, Sarawak will pursue a new direction in forestry management of preserving our trees, planting more trees, and restoring and rejuvenating our logged-over areas or degraded forests.
Licences for forest carbon projects, which will contribute towards the reduction in carbon emissions will be issued to regulate the establishment of such projects, which would be validated and verified by internationally accredited bodies for the issuance of carbon credits which will be traded under the voluntary carbon market mechanisms or in recognised international carbon credit exchanges.
I am happy to inform this august House that the first regulated forest carbon project will commence in Sarawak in the first quarter of 2023. This initiative will be driven by the private sector entities with the technological know-how and financial resources to ensure the success and sustainability of these projects.
Sarawak, because of its stable geological formations, has the biggest carbon storage capacity in offshore areas. It is estimated that Sarawak has 30 trillion cubic meters of carbon storage capacity in the seabed of its continental shelf. The depleted or abandoned petroleum fields in offshore areas, are suitable for development into sites for secured, permanent storage of carbon dioxide (CO2) captured by oil and gas companies who now have obligations to reduce emission of CO2 into the atmosphere.
The captured and stored CO2 can be used for making of Hydrogen (H2), blue ammonia, biofuels and other products, thereby providing a platform for the sustained development of carbon capture utilisation and storage (CCUS) industry in Sarawak apart from the generation of carbon credits and a new source of revenue for Sarawak.
At this stage, PETROS and PETRONAS are working jointly to begin work on the development of a depleted oil field off the coast of Sarawak for storage of captured CO2 from an adjacent oil-producing field. A licence for this will be issued as soon as the new Rules on Carbon Storage are gazetted in early 2023.
Recently, PETRONAS Carigali Sdn Bhd has reached the final investment decision (FID) for the development of the Kasawari CCS project off Bintulu and is expected to reduce CO2 volume emitted by 3.3 million tonnes of CO2 equivalent annually, making it one of the largest offshore CCS projects in the world.
Additionally, reputable companies in Singapore, Korea, and Japan have also shown keen interest in participating and investing in CCUS in Sarawak and in the transboundary transportation of captured CO2 from these countries for safe storage in offshore Sarawak.
The future of this new industry for Sarawak is bright and is also another revenue generation for Sarawak via imposition of carbon storage levies. It is also estimated that more than 10,000 new, clean jobs for this industry would be created before 2030.
Another milestone for Sarawak is the first Autonomous Rapid Transit (ART) proof-of-concept in Kuching, to begin in the third quarter of 2023, powered by H2 fuel. This initiative will be driven by Sarawak Metro and supported by the Ministry of Transport Sarawak.
I am convinced that the use of H2 energy in a broad range of fields, including mobility, commercial, industrial and energy storage, as well as feedstock to various chemical processes, will help realise a cleaner and more sustainable society for Sarawak.
Our initiative to produce H2 fuel locally will support our agenda for development of H2 economy in Sarawak.
I am happy to note that our first H2 production plant in Sarawak is at the Front-End-Engineering Design (FEED) stage. This plant is expected to produce 630,000 metric tonnes of green ammonia, 600,000 metric tonnes of blue ammonia, 220,000 metric tonnes of green H2, of which 7,000 metric tonnes will be for domestic use and the rest will be exported. This forms the base for the development of our H2 economy value chain in Sarawak.
Another important initiative in Sarawak’s green economy agenda is the development of a hybrid solar-wind renewable power system by SHELL, under Timi Field Development Project offshore Bintulu.
This will diversify our renewable energy mix for Sarawak, in line with the national commitment to achieve net-zero emissions by 2050.
Sarawak, I must say, from the proactive initiatives I have already outlined earlier, will play a key part in accomplishing this national commitment to the United Nations under the Paris Agreement.
In 2019, I launched a 1,000 square metre algae facility at Sarawak Biodiversity Centre for research and to test the growing of algae outdoors.
Research in producing algae-based renewable biofuel is part of Sarawak’s efforts to develop its Sustainable Green Agenda, particularly the green energy.
This, I think, is an important step as we aim to use various technologies to produce algae biomass on a large scale. When algae are grown, carbon is absorbed, and therefore it can be used as carbon capture and storage technology.
Advancements in research and modern technologies are now able to rapidly grow algae and extract its oil to be converted into biofuels for energy, while taking advantage of the other components in algae such as proteins, carbohydrate, and nutrients.
Algae cultivation or farming for biofuels will be mainly carried out by the SEDC Energy, together with PETRONAS Research Sdn Bhd.
I am also proud of the collaboration and progress of the industrial-scale microalgae production facility. This facility will absorb CO2 waste stream from Sejingkat Coal Power Station to grow algae in a carbon circular economy. This project is a collaboration among Sarawak Biodiversity Centre, SEB, Chitose Laboratory and ENEOS.
This project is a 5-hectare algae production facility to achieve greener and cleaner coal power generation. Simultaneously, it creates downstream opportunities across various sectors through reduction of CO2 emissions via carbon capture and utilisation.
This facility is expected to be launched in February 2023.
I would like to inform the august House that I will explore more of our natural resources and how we can monetize these resources responsibly and sustainably to increase investment, business and job opportunities for our rakyat. This includes a nature-based solution to diversify our sources of revenue stream for our current and future consumption.
All these new economic initiatives are to diversify our economic base for the creation of more investment, new businesses and job opportunities for our people to increase their income and livelihood.
I would like to reiterate in this august House that all these new initiatives are based on Environment, Social and Governance (ESG) principles. This is important for us to attract more foreign investment to Sarawak as it is a pre-requisite by the international community for any investment decisions. This has put Sarawak in the global map.
As recognition of our initiatives, I have been invited to share our initiatives in many renowned international platforms this year such as World Hydrogen Summit, Rotterdam, Japan Time to Act Forum and Singapore International Energy Week.
SARAWAK TO ENHANCE AIR AND SEA CONNECTIVITY TO ACCELERATE GROWTH
We are going to establish our own airline to boost the tourism industry and driving businesses in Sarawak. The airline business model would not be profit motivated instead the outcome is the economic multiplying effect. The aim is to connect to international destinations like Singapore, Jakarta, Hong Kong, Japan and Bangkok, to name a few. This effort will be a catalyst towards bringing Sarawak to the next level with better connectivity and accessibility to the world.
Improved air connectivity would not only boost tourism; it would facilitate and accelerate socioeconomic development, trade and e-commerce in Sarawak.
In addition, Sarawak Government is embarking on improvement to Miri Port Sungai Baram channel, and Samalaju deep-sea port facilities in Bintulu. We are also exploring the development of new deep-sea ports for Lawas and Kuching, going forward. This is important for Sarawak to be part of the worldwide supply chain especially for food, energy, parts and components.
SARAWAK SOVEREIGN WEALTH FUTURE FUND BOARD GOVERNANCE
Thank you to all Ahli-Ahli Yang Berhormat for participating in the debate on Sarawak Sovereign Wealth Future Fund Ordinance, 2022 (SSWFF Ordinance).
I am happy to note that everyone seems to understand the intention, concept, and rational of the establishment of this investment fund through the SSWFF Ordinance.
During the debate, there were some constructive suggestions and concerns raised on the governance and the structure of the fund including the penalties imposed under the Ordinance.
I wish to highlight that the SSWFF Ordinance does not operate in the derogation of other laws. The penalties under the Ordinance are intended to punish those who are negligent in the management of the fund as well as for non-compliance with any requirements under the Ordinance.
For any other serious breach, offenders would not only be punished under the ordinance but will also be subjected to other laws relating to criminal offences such as the Penal Code (Act 574) and the Anti-Corruption Commission Act 2009 (Act 694).
My GPS government will ensure strict and heavy penalty to be enforced on Board of Guardian if they are found guilty of misappropriation of the fund or acting recklessly or negligently in the discharge of their fiduciary duties to the board and its stakeholders.
Additionally, the government will strictly monitor the implementation and governance of the fund and will take any action to ensure the smooth and transparent management of the fund.
Rest assured, the government is serious in its intentions to manage this fund in accordance with the Santiago Principles and to uphold transparency and good governance in the management of this fund.
12TH MALAYSIA PLAN MID-TERM REVIEW
2023 marks the third year of the implementation of PCDS 2030. 2023 is also a year for us to conduct a mid-term review for the 12th Malaysia Plan. This is important because we need to assess and evaluate our performance to ensure we are on track to achieve our targets.
In this review, it is crucial for us to prioritise the immediate high-impact projects in PCDS 2030, which will accelerate Sarawak’s growth in becoming a developed state.
We must focus our efforts on priority projects, which will result in Sarawak achieving our goals of Economic Prosperity, Social Inclusivity and Environmental Sustainability.
As the number of infrastructure projects in Sarawak have increased drastically as compared to earlier years, I believe, among the key issues for construction projects in Sarawak is the building material supply and prices, especially that of steel bars and cement.
Accordingly, the demand for building materials in Sarawak moves in an upward trend and this, I believe will continue to move upwards even beyond 2025. Therefore, my cabinet members and I, will study and review relevant policies for our construction industry to move ahead economically. I think, with price stabilisation, our construction activities will be more vibrant as we develop Sarawak.
CLOSING
Next year we will celebrate Sarawak’s 60th year with Sabah and Malaya in forming Malaysia.
Sarawak will organise myriad programmes and activities to celebrate the 60th anniversary of the establishment of Malaysia.
We are grateful for the many blessings of development that we have achieved, especially in the fields of economy, education, health, and safety.
Therefore, I would like to call on all Sarawakians to come together to ensure unity in diversity by celebrating a multi-racial, ethnic and religious Malaysia. Let us make Sarawak a developed and prosperous region for common prosperity.
I take this opportunity to thank Mr. Speaker for conducting the DUN conference in an orderly and excellent manner.
Thank you also to all government officials and members of staff.
The GPS government greatly appreciates the contribution and commitment of Sarawak State Civil Service officers and Federal Civil Service officers in carrying out their duties and responsibilities professionally throughout this year.
With this, the GPS government has decided to give a special incentive payment equivalent to one and the half months of basic or minimum salary of RM2,000 to state civil servants, which will be paid before the end of this year.
We will also pay special incentives to approximately 137,000 Federal civil servants serving in Sarawak amounting to RM500 each.
Finally, on behalf of the government, I would like to wish Merry Christmas to all Honorable Members and the people of Sarawak who will be celebrating it, and Happy New Year 2023 to all and Gong Xi Fa Cai to all who are celebrating it.
Take care of Sarawak, Intu Sarawak.
Thank you.
