KUCHING: Despite the recent cuts in the budget allocation for 2016, the federal development expenditure continues to emphasise on projects and programmes that are rakyat-centric, and development spending for Sarawak Corridor of Renewable Energy (SCORE) creates economic multiplier for key sectors of the economy and enhances Malaysia’s growth potential.
AmResearch Sdn Bhd (AmResearch) noted that SCORE is firmly established as one of Malaysia’s five economic corridors.
A slew of projects are in place to accentuate infrastructure development and investment in a prelude to socio-economic growth which is a catalyst for SCORE.
For the past five years, the progress and focus of SCORE has been on Samalaju Industrial Park (SIP).
The other nodes which are implemented concurrently with SIP in terms of infrastructure include Tanjung Manis, Mukah Smart City and Baram.
For Tunoh, Samarahan and other secondary growth nodes in the hinterland areas are now in advance stages of planning under the SCORE Hinderland Study, which awaits approval for funding.
Government funding is expected to account for 20 per cent of total investment while the remaining 80 per cent is private sector initiative.
“For Samalaju Industrial Park, total approved investments amounted to RM25.19 billion. SCORE promotes 10 priority industries within Sarawak, namely aluminium, glass, oil-based, steel, palm oil, fishing and aquaculture, livestock, timber-based, marine engineering; and tourism.
“In tandem with the economic development in SCORE, job opportunities within Sarawak are expected to grow, adding 667,238 new jobs in the next 15 years. Total workforce in Sarawak is likely to grow further to 1,088,026 persons by 2030,” explained Amresearch.
“We gather that the state economy advanced by 4.3 per cent in 2014, contributing 10.1 per cent to Malaysia’s total GDP value. At large, development spending for the state creates economic multiplier for key sectors of the economy and enhances Malaysia’s growth potential.
“Despite the recent cuts in the budget allocation for 2016, the federal development expenditure continues to emphasise on projects and programmes that are rakyat-centric, with high multiplier effect and low import content. That said, the government had ensured that physical projects will remain a priority, which includes the implementation of major projects such as the Pan-Borneo Highway,” it added.
Based on the Budget 2016 announcement last year, Sarawak Pan-Borneo Highway spanning 1,090km is expected to be completed in 2021 with an estimated cost of RM16.1 billion.
The research house gathered that for Phase 1 of Sarawak Pan-Borneo Highway, there will be 10 major Works Package Contracts (WPCs) that will be rolled out by November 2016.
Each WPC varies from 60 to 90km in length, with target completion by mid-2021. JVs or consortiums must be Sarawak-led, with a minimum 70 per cent Sarawak equity. Meanwhile, the federal government has yet to decide on the management for Phase 2.