Uggah (centre) together with colleagues Minister in Premier of Sarawak’s Department Datuk John Sikie Tayai (left) and Deputy Minister of Education, Innovation and Talent Development II Datuk Francis Harden Hollis at the Sarawak Legislative Assembly (DUN) complex here today. – Photo by Chimon Upon
KUCHING (Dec 1): Deputy Premier Datuk Amar Douglas Uggah said Sarawak is on a strong financial footing with a sound reserve pool accumulated over the years.
He said this is testimony of the state government’s prudence and disciplined financial management.
“This healthy reserve has enabled us to ride through the unprecedented Covid-19 pandemic that has created social and financial turmoil worldwide.
“We have allocated RM6.7 billion for the nine BKSS (state government’s aid) packages for the last three years. Perhaps this is what we call having a strong, ever ready umbrella to meet rainy days or should I say, in our case stormy days.
“Most importantly, our reserve has given us the fiscal flexibility in managing our financial affairs especially in meeting our efforts to implement the state’s economic agendas and leapfrogging the much needed development throughout the state,” he said in his winding-up speech at the State Legislative Assembly here today.
The Second Finance Minister said the state government required significant resources to implement this development agenda.
He said to achieve this and to complement the state’s development budget, the state government is compelled to take up more robust and strategic efforts by leveraging on other alternative funding initiatives with the establishment of the state’s own development bank.
He noted that the Development Bank of Sarawak (DBOS) has enabled the state government to undertake strategic infrastructure projects such as roads and bridges, water and electricity supplies, telecommunication, and digital economy infrastructure.
He said this had also enabled the state government to fund numerous projects under various development agencies.
“Apart from this, the broadening of the state’s present revenue base under the ambit of both federal and state laws would further strengthen the state’s financial capacity and support the state in meeting its objectives to achieve and sustain budget surplus in many years to come.
“Here again we applaud our Premier for his bold step in introducing State Sales Tax on oil and gas. This effort has increased the State Sales Tax revenue by more than 500 per cent.
“State sales tax on oil and gas represents about 80 per cent of the overall revenue of state sales tax.
“Our ample reserve has also enabled us to establish our own sovereign wealth future fund, savings for future generations,” he said.
On another matter, Uggah informed that the process of appointment of contractors for state funded projects has never been compromised and evaluations are carried out in accordance with the established procurement procedures and guidelines.
He said the state government has always accorded top priority in ensuring that any procurement exercise is carried out systematically, comprehensively and without bias.
“This means all submissions are evaluated fairly to ensure that the most competent contractors are selected to implement projects with the best investment value, of the highest quality, and with delivery excellence.
“Every phase of the procurement process is carefully examined to ensure that the most competent bidder is selected for any public project,” he assured.
Uggah added that a holistic tender evaluation model has also been established by the state government to ensure that the criteria used for the assessment of bidders encompass all pertinent aspects, running the gamut from technical capacity (comprising experience, technical staff strength, equipment and machinery, health and safety plans provided, and so forth), financial capability (cash in hand and credit facilities obtained), financial bid capacity (whether the relevant bidders are capable in taking on another project and if this will directly affect their cash flow) as well as any adverse reports or nonperforming/critically delayed projects in hand, and so forth.
He said, furthermore, various procurement modes based on financial limits have been put in place to ensure that projects are strategically categorised, effectively implemented, and procured based on an enhanced framework dependent on the nature, magnitude and complexity of the said projects.
In respect of Rural Transformation Programme (RTP), he said the capability of contractors to be awarded will be evaluated by the relevant implementing agency, and deliberated and finalised at various Tenders Board Committees.