Masing thanks banks for help in speeding up infrastructure devt

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Wan Azhar (second left) presenting a souvenir to Masing witnessed by (from right) Yeoh, Mohd Rafidz and Dr K Govindan.

Wan Azhar (second left) presenting a souvenir to Masing witnessed by (from right) Yeoh, Mohd Rafidz and Dr K Govindan.

KUCHING: Assistance from financial institutions is crucial to finance infrastructure development in Sarawak that in turn will accelerate its industrialisation programme.

Thus Deputy Chief Minister Tan Sri Datuk Amar Dr James Masing, who is also Infrastructure Development and Transportation Minister, breathed a sigh of relief yesterday when learning that Malaysia Development Bank (BPMB) and other banks had expressed interest to back the state government’s initiative to link the whole of Sarawak by road.

“Sarawak is one of the favourite investment destinations. Apart from political stability, however, Sarawak has a lot more to grow. As you are aware, we need at least RM24 billion in the next 15 years until 2030 to connect the entire Sarawak by road,” he told a press conference after opening the inaugural Development Bank Infrastructure Forum at Pullman Hotel here.

Without the help from banks, Masing said the plan would remain just a dream.

“As such, the government and Sarawak are thankful that you (BPMB) have expressed eagerness to help with our infrastructure development. Sarawak is as big as Peninsular Malaysia minus Perlis but we are not well connected,” he said.

Given its massive land size and challenging terrains, he highlighted that it would be a monumental task and a lot of money would be needed to connect all the villages and remote areas.

“The rural areas are quite left behind in terms of development and I had shared with the officials from banks here earlier that it costs us RM16 million to build one kilometre of road in the rural areas,” he explained.

“For the next 15 years, we need to source a great amount of money to develop 4,000 kilometres of roads in order to connect the entire Sarawak,” he added.

On the forum, Masing hoped it would succeed in assisting the state government’s pursuit towards industrialisation.

Meanwhile, BPMB president and group managing director Mohd Rafidz Ahmed Rasiddi disclosed that the bank had lent out over RM2 billion for Sarawak-based projects for the past five years.

“The projects covered various sectors – roads, area development and so forth,” he explained.

As for the Pan Borneo Highway development, Mohd Rafidz said BPMB was very excited with the potential of the project as it falls under the type of lending that it provides.

“Our portfolios are largely infrastructure like roads and highways. We are actually very eager to participate in funding the project and even down to the sub-contractors besides the main contractors,” he added.

As for dam construction in Sarawak, he informed that BPMB was currently exploring opportunities in the mini hydro projects.

Masing commended BPMB on their role in assisting the small contractors participating in the construction of the Pan Borneo Highway project.

“The bulk of Pan Borneo Highway is taken up with allocation from somewhere else, now what is important is that BPMB is helping the ‘small boys’, meaning the sub-contractors, who require strong support from banking institutions because they operate on a tight cash flow,” he said.

Earlier on, BPMB Board of Directors member Datuk Wan Azhar Wan Ahmad highlighted that the bank saw a growing focus and ample investment opportunities to develop major infrastructure facilities in Sarawak with the state currently going through a rapid economic development phase.

“The public and private sectors should join forces to address the real infrastructure needs of the state, discuss what works and what needs to be done, as well as provide opportunities to strengthen partnerships and share resources and expertise in national infrastructure and financing,” he said.

BPMB, a development financial institution wholly-owned by the Ministry of Finance Incorporated, plays pivotal roles in the funding and development of key economic sectors such as infrastructure, technology, oil and gas and maritime sectors in Malaysia since its establishment in 1973.

Also present were BPMB executive vice president (Business and Investment Banking) Zainul Hashim, RAM Holdings Berhad Group chief executive officer (CEO) and executive director Datuk Seri Dr K Govindan and CIMB Investment Bank Berhad managing director and deputy head of Regional Debt Capital Markets Yeoh Phee Leong.