Malaysia’s recently announced 2012 budget allocated funds for a wave of infrastructure projects in the Hornbill state. These are aimed at lifting many of Sarawak’s rural poor out of poverty, while also making inland communities more accessible and better connected.
Tabling the 2012 Budget on October 7, Prime Minister Datuk Seri Najib Tun Razak said the national government had allocated RM5 billion (US$1.63 billion) to strengthen basic rural infrastructure development. Some RM1.8 billion (US$586.8 million) of this was designated for the rural roads programme and the village link-road project. This would see the construction of a 2,749km road network to benefit Malaysia’s 1.76 million rural inhabitants.
For Sarawak’s Kapit Division, this meant two major road projects were on the way – the RM90 million ($29.34 million) Kapit-Song Road and the RM62 million (US$20.21 million) Belaga Town-Bakun Road. Kapit would also receive RM5 million (US$1.63 million) to upgrade its water treatment plant.
In addition, the budget allocated RM1.1 billion (US$358.6 million) for electricity supply to 39,000 houses in rural areas, particularly in Sabah and Sarawak, and RM2.1 billion (US$684.6 million) to expand water supply to 200,000 homes.
The Prime Minister said the government was particularly concerned with supplying clean water to rural communities, especially in remote areas of Sarawak and Sabah. Yet because providing clean water by pipe was a time-intensive and expensive process, the government would supply 20,000 rainwater collection tanks for those living in Sarawak’s interior as an immediate solution. At a cost of RM52 million (US$16.95 million), the tanks were expected to bring fresh water to about 100,000 people.
In addition to new infrastructure projects such as roads and water supplies, the federal government had announced construction of four new Rural Transformation Centres (RTCs), one each in Sarawak, Sabah, Kedah and Johor. These RTCs would be built after the government developed two pilot RTCs in Perak and Kelantan.
The rural and regional development minister, Datuk Seri Mohd Shafie Apdal, told reporters the RTCs would expand economic activities now concentrated in urban areas like the Klang Valley, Penang and Johor into rural areas.
RTCs were part of the federal government’s Rural Transformation Programme, which aimed to promote economic development in the country’s rural areas. In this capacity, RTCs were meant to help small-scale rural entrepreneurs forge better market links. For example, the centres could be used as agro-food and agro-business supply centres, connecting suppliers with both domestic and foreign consumers. This should boost demand for supplier products.
RTCs would also act as one-stop centres for business financing and training. Some RTCs would feature facilities such as financial institutions, training centres and meeting points for the business community to establish links and promote products.
Although it had not yet been announced, speculation was rife that Tanjung Manis would most likely be the site of Sarawak’s RTC, as it already had suitable infrastructure in place. The ripple effect from Tanjung Manis’s RTC could be good for the development of other parts of the community.
Another government scheme aimed at eradicating rural poverty involves replanting rubber trees. By increasing the amount of state land under rubber tree production, the government planned to profit from rising rubber prices. Indeed, if programmes go well, 30 per cent of the rural population would be involved in the industry in the near future.
Sarawak Rubber Industry Smallholders’ Development Authority (Risda) director Sopian Abu Bakar said the government had allocated RM53 million (US$17.28 million) to Sarawak, the biggest sum for any state, to fund the 2012 replanting programme.
Risda is a statutory body under the Ministry of Rural and Regional Development. The government would pay smallholders in Sabah and Sarawak about RM14,000 (US$4,569) per ha for replanting.
Malaysia’s rubber production showcase was currently Sarawak’s Betong district. Rubber production there had soared with the establishment of processing plants such as China’s Guangken Rubber, and the Agriculture Department had planted rubber trees on 11,000 ha of land in Betong.
Recently, Betong deputy resident Pathi Kerni said Betong could well be the largest rubber producing area in Malaysia by 2020. “If the commodity continues to sustain its stable price in the years to come, rubber will help to eradicate poverty in Betong,” he said.
Spotting an opportunity for growth, the State Agriculture Department had established a Rubber Development Programme to encourage replanting among smallholders. Under the programme, the department was providing assistance in areas such as rubber mini-estates, replanting maintenance, processing centres, infrastructure development and support services.
Most rubber plantation land in Betong was rented from native customary rights owners, who said they had seen incomes rise due to the programme. Rural communities in Sarawak and beyond were thus waiting to see if the budget provided further assistance in boosting their incomes.