 |
AJAX Error Sorry, failed to load required information. Please contact your system administrator. |
|
| Close | ||
Click here for BUDGET 2016 SPEECH AT THE STATE LEGISLATIVE ASSEMBLY speech files.
BUDGET 2016 SPEECH AT THE STATE LEGISLATIVE ASSEMBLY
ON 7TH DECEMBER 2015
I beg to move the Supply 2016 Bill be read a second time. Tuan Speaker, thank you very much for congratulating me for having a Honorary Doctorate from UNIMAS, I think I am at the point now after receiving degrees from Adelaide University, Swinburne and now UNIMAS,
I have received more degrees then I have sat for examinations. Anyway, it is a compliment, thank you very much.
Saya memohon untuk mencadang suatu rang undang-undang bertajuk Suatu Ordinan bagi menggunakan sejumlah wang daripada Kumpulan Wang Disatukan untuk perkhidmatan bagi tahun 2016 dan bagi memperuntukkan wang itu untuk perkhidmatan tahun itu” dibacakan bagi kali yang kedua.
Alhamdulillah saya panjatkan kesyukuran ke hadrat Allah S.W.T. kerana dengan izin-Nya saya dapat membentangkan Belanjawan Negeri Tahun 2016 dalam Dewan yang mulia ini, dan berdoa agar ianya dapat mencapai tujuan seperti yang diingini.
Tuan Speaker, next year, 2016, shall be an important year for the Nation as it marks the first year of the Eleventh Malaysia Plan. As such, it offers an opportunity for the Government to unveil its development agenda for the next five years.
The State, together with the other States of the Federation looks forward with continued strength and confidence as we embark on the implementation of development projects under the Eleventh Malaysia Plan.
We take great pride that the State has been able to achieve its present level of development as a result of our ability to promote unity and harmony among our people and to manage our resources effectively despite facing many challenges along the way. This reflects the resilience and the strength of our people, our social structure and our political will.
I would now like to update this august House on the latest economic performance for 2015 and the outlook for 2016.
Global Economy
The International Monetary Fund (IMF) in its October 2015 World Economic Outlook estimated that the world economy to moderate at about 3.1% in 2015, slightly lower by 0.2% from their earlier estimates in July 2015. This reflects a modest growth in advanced economies and a slower growth in emerging market and developing economies.
Growth in the advanced economies is anticipated to be sustained by accommodative monetary and fiscal policies in the euro area and Japan. However, weakening growth is expected to be varied across countries and regions for the emerging market and developing economies. The sluggish growth is due to weaker growth in oil exporters, weaker outlook for exporters of other commodities, a slowdown in China as well as geopolitical tensions and domestic strife in a number of countries.
IMF anticipates that global economy will expand by 3.6% next year, underpinned by improved performance in most advanced economies as well as emerging market and developing economies. Expansion in the advanced economies is expected to be led by the U.S. at 2.8% and euro area at 1.6%. In emerging market and developing economies, growth is expected to increase by 4.5%, contributed by modest growth in China, steady development in India and market recovery in several ASEAN economies.
Advanced Economies
With regard to advanced economies, the economic recovery in the advanced economies is expected to be on a positive growth momentum and projected to grow at 2.0% in 2015 and 2.2% in the coming year. The growth is propelled by the expected stronger growth in the U.S. of 2.6% in 2015 and 2.8% in 2016 as business investment, employment market, growth in real wages and consumer confidence improved.
The euro area is expected to continue its recovery by 1.5% this year and 1.6% next year. Growth in the region is expected to be underpinned by increased domestic demand, despite headwinds from the Greek crisis, global financial volatility and a slowdown in China and other emerging economies.
In Japan, growth is projected to pick up from 0.6% which is less than 1.0% in 2015 to 1.0 % in 2016, reflecting rising real wages which support consumer spending, higher equity prices due to additional quantitative and qualitative easing by the Bank of Japan as well as lower oil and commodity prices benefiting its economy.
Emerging and Developing Asian Economies
With regards to the emerging and developing Asian economies, the growth in emerging and developing economy comprising China, India and ASEAN-5 is anticipated to be uneven among the regions and is expected to grow by 6.5% in 2015 and 6.4% next year. Growth in China is expected to slowdown from 6.8% this year to 6.3% next year as China moves toward rebalancing its economy for a more sustainable growth. I believe China is concentrating on its own domestic market because they have such a big volume, such a big population and a growing middle class of easily three to four hundred million growing middle class so the demand for domestic consumption is growing so they want to concentrate on that one.
In contrast, the Indian economy is expected to strengthen from 7.3% this year to 7.5% next year. Growth is expected to benefit from its recent economic reform initiatives, a pick-up in public investment and lower commodity prices, including crude oil prices.
The ASEAN-5 economy, consisting of Malaysia, Indonesia, Philippines, Thailand and Vietnam, is expected to grow from 4.6% this year to 4.9% next year. The moderate growth in the region is mainly due to slower demand from China and dampened commodity prices.
National Economic Performance in 2015 and Prospects for 2016
The National economy with regards to the national economic performance the overall Malaysian economy, prospects for 2015 and prospects for 2016 is expected to remain resilient despite external uncertainties. Real GDP is expected to grow between 4.5% to 5.5% in 2015, driven by resilient domestic economic activity. In 2016, the economy is forecasted to register a slower growth between 4.0% to 5.0% in anticipation of declining commodity prices, rising volatility in financial markets and the depreciation of currencies as well as slowdown in growth of some emerging markets, particularly China.
On the demand side, public consumption is expected to slow down from a growth of 3.6% this year to 3.0% next year as a result of continuous efforts to rationalise and optimise operating expenditure by the Government.
This year, private consumption is expected to continue its moderate growth at 6.8%, sustained by stable wage growth, manageable inflation and lower fuel prices. Next year, the growth is estimated at 6.4%.
Public investment is estimated to grow at 1.6% this year, contributed by higher capital spending by the Federal Government and public corporations. In 2016, public investment is estimated to grow at 2.3%.
Private investment is anticipated to expand by 7.3% this year, attributed by capital spending in the manufacturing and services sectors. Next year, it is expected to grow at only 6.7%.
On the supply side, the growth in 2015 remains healthy spearheaded by the construction sector. This sector is estimated to grow at 8.8% in 2015 and 8.4% next year. The growth of the services sector is expected to increase by 5.7% in 2015 and is expected to continue a healthy growth of 5.4% in 2016.
The manufacturing sector is anticipated to expand by 4.5% this year and expected to grow at 4.3% next year. Growth in the agriculture sector is expected to remain marginal at 1.3% for both 2015 and 2016. The mining sector is expected to expand from 3.15% to 4.0% next year, driven by the anticipated higher output of crude oil and natural gas although the price had gone down very steeply.
State Economic Performance for 2016 and Outlook for 2016
I shall now come to the Sarawak economy in particular. This year, the State economy is expected to remain resilient and estimated to grow at 4.0%, despite softening export growth due to lower commodity prices. For 2016, with the continued uncertainties in the global market, particularly with the slowdown in emerging market and weaker commodity prices, growth is expected to sustain at 4.0%.
On the supply side, the GDP growth in 2015 is expected to be broad based. Services sector is expected to continue to be the key driver of the growth. It is expected to grow at 5.9%, driven by the utilities, transport, storage and communication, wholesale and retail trade, accommodation and restaurant sub-sectors.
Next year the growth is expected to remain broad based and continue to be driven by the services sector, supported by private consumption and tourism related activities.The services sector is projected to grow by 5.9%, with continued expansion in all subsectors.
The manufacturing sector is expected to grow at 3.0% in 2015, supported by better performance in wood-based and chemicals products. For 2016, the manufacturing sector is expected to grow by 3.7%. The growth is anticipated to be driven by higher demand for resource-based products. In addition, the roll out of infrastructure projects under the Eleventh Malaysia Plan is envisaged to increase the demand for building materials.
The construction sector is expected to register a growth of 5.8% in 2015 as some major infrastructure projects have already started the construction activities this year, such as the Pan-Borneo Highway, upgrading of Bintulu-Samalaju road, piping and associated facilities at Petronas LNG Complex, Bintulu.
For 2016, the construction sector is projected to grow by 6.4%, benefiting from the implementation of the Eleventh Malaysia Plan projects. Some of these major projects include on-going construction of the Pan-Borneo Highway, the new Mukah Airport, Kuching Waste water Management System Package 2, upgrading of Batu Kitang Water Treatment Plant, other infrastructure projects as well as rural transformation project throughout the State.
This year, the agriculture sector is expected to grow at 4.4%, mainly from the better performance of the oil palm industry. However, the forestry and logging sub-sector is anticipated to decline by 0.6% in line with the State Government effort for a sustainable forest management.
In 2016, the agriculture sector is anticipated to remain resilient with a projected growth at 4.0% to be supported by higher output of palm oil, rubber, food, livestock and fisheries sub-sectors.
The mining sector is estimated to grow marginally at 1.1% ini 2015, as growth of LNG is expected to slow down due to the scheduled shut down of certain plants for maintenance purposes during the year. For 2016, growth in the mining sector is expected at 2.3% driven by the expected higher output of natural gas and crude oil.
Demand Side
On the demand side, public investment is expected to grow at 3.8% in 2015, driven by the on-going implementation of infrastructure projects such as, the Pan-Borneo Highway, the flood mitigation projects and rural transformation projects.
In 2016, public investment is expected to register a growth of 3.3%, as more rural projects approved under the Eleventh Malaysia Plan will be rolled out for implementation especially to bridge the development gap between the urban and the rural areas.
Private investment is anticipated to expand at 6.9% in 2015, driven by investment in export-oriented industries, particularly in the SCORE area. In 2016, private investment is forecasted to grow by 6.8%, continued to be driven by investment in export-oriented industries.
Growth in public consumption is expected to increase moderately at 3.4% this year, supported by sustained Government spending. Next year, it is expected to grow by 3.1%.
Private consumption is projected to grow at 6.6% in 2015, supported by the increase in disposable income, lower fuel price and increase in cash assistance programmes to the targeted income groups.
In 2016, private consumption is projected to grow by 6.3%, benefiting from the stable employment condition and wage growth. The increment of minimum wage for workers in the private sector and the salary revision of the civil service and BRIM are expected to increase household purchasing power for the year.
External Trade
In the first half of 2015, the balance of trade continued to record a surplus of RM28.6 billion despite contraction in both gross exports and imports. The gross exports contracted by 22.7% due to the weaker commodity prices, particularly oil and gas as well as palm oil. Export receipts from mining, timber and other commodities dropped by 26.6%. However, exports for other manufactured goods rose by 9.6%.
Gross imports declined by 15.3% for the first half of 2015 due to the lower importation of intermediate and capital goods. However, imports of consumption goods, particularly food increased by 3.4%
For 2016, external trade is expected to rebound in tandem with better regional growth prospects and firm domestic economic growth.
Inflation
Consumer prices rose at a slower pace of 1.2% in the first nine months of 2015. Of the Consumer Price Index (CPI) components, price increase in food and non-alcoholic beverages category was the main contributor, accounting for 1.0% of the overall inflation rate in 2015. For 2016, with continued Government efforts to cushion inflation, through various programmes such as BRIM, Kedai 1Malaysia and uniformity prices for basic items, inflation is expected to remain below 3.0%.
Challenges
What other challenges that might we face in the future? As we are entering into a very challenging phase of the development and economic transformation of the State towards a High Income Economy, it is appropriate for me to highlight some of the major challenges that we are facing in our efforts to continue developing our State. The State Government would continue to focus its efforts in restructuring and transforming the State economy to achieve a developed state status by 2030. This is even more critical as our State is moving into the next level of development phase.
While we are pleased with our achievement, we must not be contented with our current success and rest on our laurels. Instead, we must strive to do better and benchmark ourselves against the best. The future of Sarawak lies in the degree of our efficiency and continuous commitment to manage the State resources effectively. The attractiveness of Sarawak as a preferred investment destination would be further strengthened by our ability to upgrade our level of efficiency and management skills from time to time. I am pleased to note that over the years, there has been a marked increase in the degree of commitment, productivity and efficiency among our workforce, with cleared focus and enhanced capability, particularly by the wider application of ICT.
Tuan Speaker, as the global economy is becoming more challenging and increasingly competitive, the resilience of the State economy in the coming years will determine how far we can attain rapid and sustained economic growth. Some of the major challenges that we are facing are, for example:
%3n style="font-size: 14pt;">2015 Financial Performance of the State
I would like to update this august House therefore, on the 2015 Financial Performance, how did we do financially this year.
Revenue Performance 2015
The total revenue for the State this year is anticipated to surpass the original estimates of RM5.18 billion this year. Based on the current revenue collection thus far, the estimated revenue for the current year is revised to RM6.11 billion, 18% higher than the original estimates.
The expected higher revenue is mainly attributed to:
Ordinary Expenditure of The State, 2015
Ordinary Expenditure of the State is proposed to be revised upward therefore, from RM4.81 billion to RM5.96 billion, an increase of RM1.15 billion. Out of this, a sum of RM46 million is required by various ministries and department to meet their operating expenditure and RM1.10 billion is mainly for the appropriation to Statutory Funds for development purposes.
Budget Surplus for the Year 2015
The State is estimated to register a budget surplus in 2015 of RM147 million. This is attainable as the additional requirement for the Ordinary Expenditure for the year is expected to be offset by a higher expected increase in revenue for the year.
National Budget 2016
With regard to the National Budget, Prime Minister in his Budget speech for 2016 has underlined that the National Budget is premised on striking a balance between Capital Economy and People Economy. In addition, the budget also aspires to achieve an inclusive and sustainable growth as well as to build a competitive, progressive and morally strong nation, with a society that is united.
For Sarawak specifically, the National Budget 2016 has provided allocation as follows:
To intensify development in Sarawak, the Sarawak Pan Borneo Highway spanning 1,090 kilometres is expected to be completed in 2021 with an estimated cost of RM16.1 billion of a period of six years.
I would like therefore to thank the Federal Government for the 2016 allocation. However, taking into account of the State vast geographical area, the development disparity between Sarawak and Peninsular Malaysia as well as between the urban and rural areas in Sarawak, the 2016 allocation under the National Budget to the State is not sufficient. “Tidak cukup”. I don’t know why you applauded "tidak cukup". I think you have to applauded "kalau dia cukup". But anyway, we are dropping a broad hint to the Federal Government. The State is in real need of the Federal helping hand in granting more allocation to enable us to catch up our development with those in Peninsular Malaysia and to narrow the development gap between the urban and rural areas in the State. Sarawak should not be left behind. We also want Sarawak to have the same facilities as enjoyed by our brothers and sisters in Peninsular Malaysia. As I have always said, "We don’t want to be treated like a State in the federation", and I said that publicly.
State Budget Proposal For 2016
I would like to present to this august House, the 2016 State Budget Proposal. The State budget will continue to be development biased and rural focused. In the preparation and formulation of the 2016 State Budget, we have also taken into consideration various challenges that we could be facing from both the domestic as well as the external fronts. It is therefore imperative that we are keeping abreast not only with the latest external development but also be able to anticipate the possible outcomes that could have an impact on the development of the various sectors in the State economy.
Objectives and Strategies of State Budget 2016
In our continual efforts to achieve a greater and more balanced development and to sustain a desired level of economic growth, the State Budget will focus on the following key objectives and strategies:-
First: Development Biased Budget. To stimulate a desirable level of economic activities and sustain economic growth during the year, budget 2016 will continue to be a development biased budget with RM5.97 billion, or about 74% of the total budget is proposed for development and RM2.07 billion, or 26% for operating expenditure. So, for development 74%, operating 26%. The Federal Budget is almost the opposite. As a developing State, it is important that we have a budget that is biased towards development;
Second: Rural Biased Budget. In pursuing the objective of continuing to narrow the development gap between urban and rural areas throughout the State, the Budget will provide higher allocation in 2016 amounting to RM2.65 billion as compared to RM2.35 billion in 2015 and RM2.19 billion in 2014. This is also in line with our commitment to give greater focus on programmes and projects for rural areas to further accelerate rural transformation as well as opening more opportunities for development in the rural areas to benefit our rural communities.
So the figures will show that all these talk about emphasizing development with rural area is more than just talk. We have provided sums of money for it. And more than what we used to have before. So, the figures will show that will be the kick. And during this sitting, I am going to request also another RM500 million for what I have already asked for, for rural development.
Third: The State will continue to consolidate its financial position to ensure its long term financial sustainability. The 2016 Budget continues to propose an estimated budget surplus;
Fourth: The 2016 budget will continue to give special focus on enhancing the effectiveness of the State Government financial management and efficiency of its delivery system;
Fifth: Growth to be driven by productivity and efficiency. Concerted efforts must be made to optimize the use of available resources including equipment, facilities and human capital and at the same time reducing wastage; and
Sixth: The private sector shall remain as the main engine of growth.
Revenue Prospects for Next Year
In 2016, the State revenue is projected at RM5.55 billion consisting of:
(a) Tax Revenue is expected to be at RM1.24 billion comprises the following:
(i) RM544 million from forest royalty and premium;
(ii) RM440 million from sales tax. Of which, RM320 million is expected from Crude Palm Oil and Crude Palm Kernel Oil while RM120 million from lottery; and
(iii) RM255 million from raw water and mining royalties, land rents and others.
(b) Non-Tax Revenue is expected to be at RM4.11 billion derived from the following major components:
(i) RM1.58 billion from cash compensation in lieu of oil and gas rights;
(ii) RM1.04 billion from dividend income;
(iii) RM934 million from interest income;
(iv) RM300 million from land premium;
(v) RM120 million from cash compensation in lieu of import and exercise duties on petroleum products; and
(vi) Other, including licences, permits and rentals of RM133 million.
As an additional source of revenue, we are requesting that the stamp duty on land transfer be given to the State and not be taken by all the Federal Government. Because State Land is a State matter to any transaction relating to what is strictly a State matter have to be confine to the state. We are peeling for the stamp duty to come back to Sarawak and that will be perhaps in 300 to 400 million.
You would notice also that our royalty has decrease by 15%. We used to received 5 to 6 billion from oil loyalty alone but now because the prices collapses less than a half now then it reflected in our income from oil and gas.
(a) Non-Revenue Receipt is expected to be at RM11 million, mainly from forest liquidated damages, disposal of vehicles and recovery or overpayments; and
(b) Federal Grants and Reimbursements is expected to be at RM190 million.
Ordinary Expenditure Estimates For 2016
A sum of RM5.37 billion is proposed for Ordinary Expenditure. Out of this total allocation, RM3.30 billion will be appropriated to the Statutory Funds, to finance development programmes and projects and a sum of RM2.07 billion for operating expenditure. The proposed allocation of RM2.07 billion for operating expenditure next year is an increase of RM214 million or 12% over the revised expenditure of RM1.86 billion allocated for this year.
Out of the amount proposed for operating expenditure in 2016:
(a) RM663 million is for personnel emoluments;
(b) RM701 million for supplies and services;
(c) RM671 million for grants and fixed payments, including operation grants to the Government agencies and local authorities, servicing of public debts and payment of gratuities, pensions and scholarship;
(d) RM33 million for the procurement of assets; and
(e) RM5 million for other operating expenses.
Development Expenditure Estimates For Next Year
The proposed Development Expenditure Estimates for 2016. Taking into consideration among others, our commitment to complete the on-going projects that are under implementation as well as the capacity of our State agencies to implement projects during the year, it is proposed that a sum of RM5.97 billion be allocated to fiancé various programmes and projects for 2016 which will be in its first year of implementation under the Eleventh Malaysia Plan.
Of the total provision for development expenditure, RM5.74 billion will be funded by the State while RM231 million will be financed by the Federal Government through reimbursable loans and grants.
Distribution of Development Budget For Next Year
The proposed Budget for the year is fairly distributed to ensure balanced development throughout the State particularly between the urban and the rural areas. The Government will continue to undertake proactive measures to develop the rural areas especially those that can be harnessed for their economic potential to contribute significantly to the State economy. This would also enable the rural areas to catch up with the development in the urban areas. Hence, we ought to give greater emphasis to develop the necessary infrastructure and amenities such as road, drainage, telecommunication, electricity and water supplies aimed at improving the quality of life as well as attracting more investment into these areas.
The proposed sum of RM5.97 billion for Development Expenditure is to implement various major programmes and projects as follows:-
(a) Improve the connectivity of the State
To further improve the connectivity, more roads and bridges would be built. For this purpose, RM571.80 million will be allocated for the implementation and completion of various projects including:
(b) Wider coverage of clean treated water supply throughout the State
The State Government will continue to extend coverage of water supply especially to the rural population. A sum of RM260.70 million will be provided in 2016 for the implementation of various water supplies projects such as:-
If you notice, that all these projects costing millions and millions, I mean billions of dollars. It is more than just "tokenism". There are some parties in Sarawak interested in doing this and that but they're all amounting "tokenism". All this time we don’t believe in "tokenism". If they do something big, they do something small, they give you big publicity, macam ayam bertelur, ayam bertelur di kampung, seluruh kampung tahu, tapi telur sebiji sahaja, tapi kalau penyu bertelur seratus biji, dia diam sahaja. Which one do you prefer? We do not believe in tokenism.
(c) Strengthening Agriculture Development
You may have your time, okay, you will have your time. Strengthening Agriculture Development. In our continual effort to assist smallholders and farmers in the rural areas, a sum of RM242.60 million will be allocated. Major projects to be carried out are as follows:
(d) Accelerating Growth in Rural Areas
Most of the projects as highlighted earlier are for rural development. During the last sitting, I had requested for RM500 million for Rural Transformation Programmes but was opposed by the Opposition, for reason known to themselves. We cannot but conclude that they are against rural development. Nonetheless, the requested amount was approved and to-date,
1,818 programmes and projects under Rural Transformation Programmes are being implemented, 1,818 compare to maybe 18 from the other side, 18 token from the other side. Rural Transformation Programme are being implemented to further step up the development in the rural areas, an additional sum of RM500 million will be allocated next year to accelerate the implementation of the Rural Transformation Programme. In addition, a sum of RM166 million is provided for Minor Rural Projects. In fact, some of these projects are not minor, they are quite major especially now that we have increased the allocation for MRP.
(e) Further Development of Industrial Estates
In line with the State Industrialization Programme especially to benefit the small and medium industries, a sum of RM71.70 million will be provided for the implementation and completion of the projects, among others:
(f) Provision of affordable housing for the rakyat
Taking into consideration the well being of the rakyat, the State is undertaking various housing projects targeting at the lower income group. For the next five years, the Government is targeting to build 2,396 units of Rumah Mampu Milik and Rumah Mesra Rakyat at a total cost of RM231.71 million. To complement the allocation provided by the Federal Government in 2016, a sum of RM57.87 million will be proposed to carry out the following projects:-
With regard to housing, one of the methods that we are discussing with the Federal Government relating to devolution of power, more power for the State is to have only one body to implement it. We already have our own housing commission; there is no need for us to have another federal housing commission. So we are beginning to talk on this one, so that there will be one single body and less bureaucracy and less time waiting for approval from KL that we want to come back so this subject is now under discussion.
(g) Enhancement of human capital in the State
The State Government is stepping up its human capital development with priority in technical education. For this, a sum of RM165.6 million will be allocated to implement projects such as:
(h) Improving Public Sector Service Delivery
In line with our continuous efforts to enhance the public service delivery, a sum of RM85.10 million is purposed to build new as well as to replace old Government administrative centres, offices and quarters. This is also to take care of the well being of our civil servants especially those serving in the remote areas.
Budget Surplus For 2016
The 2016 budget proposal is expected to generate a budget surplus of RM175 million. This is on the basis of expected total revenue of RM5.55 billion against a total ordinary expenditure amounting to RM5.37 billion. It is important for the State to have a balanced or surplus budget to ensure its financial position continue to remain sound and healthy. If we continue with the surplus budget then our credit rating will remain and improve, only if we keep on having a deceive budget all the times then our credibility rating will be lowered.
Bigger Federal Funding
Let me reiterate that it is of critical importance that the Federal Government grants the State more funding in the Eleventh Malaysia Plan to fund the much needed infrastructural projects such as roads, bridges, wharves and jetties, drainage, utilities, basic rural facilities and amenities, facilities for education and medical services as well as allocation to assist our farmers, livestock breeders and fishermen in the rural areas.
With our close relationship with the Barisan Nasional Government at the National level, I am sure that the Federal Government would accede to our demand for more allocations to intensify the State development to catch up with the development in Peninsular Malaysia and at the same time enabling the State to achieve a high income economy.
Private Sector as the Main Engine of Growth
The task of developing the State does not rest with the Government alone. Every Sarawakian has an important role to ensure that the State achieves further progress and prosperity. The commitment from all levels of society will give us the necessary strength and tenacity to face the challenges and to emerge much stronger.
We will continue to emphasize public-private sector partnership. The private sector must be committed and actively participating in the development of the State. The private sector must be further nurtured to be able to take a larger role as the engine of growth as outlined under the New Economic Model. They must enhance their productivity and competitiveness. I am confident that the private sector in the State whether big or small, will continue to take this challenge and work together with the State Government to achieve our development agenda which ultimately will benefit all.
Given clear policy directions, strategies and objectives, I am confident that the State will achieve and growth and development agenda it has set. Through this economic transformation, in the long run, the State will be able to achieve the high income economy status. Every rakyat will have a share of the economy and will benefit from it.
Good Governance and Prudence in Financial Management
The concept of good governance is not new. We have been advocating on upholding good governance in our fiscal and financial management, year-in and year-out, continuously for the last 12 – 13 years I think. Because of upholding and maintaining good governance practices is very important for the State to achieve and sustain its financial autonomy and sound financial position; and is even more critical now with the uncertainties in political and economic scenarios. A sound financial position would render the State with fiscal and budget flexibility in managing its financial affairs and in ensuring its development momentum unhindered.
The reality of this, in upholding good governance is where we must continue to be disciplined and prudent in managing our resources and financial affairs; and in instilling transparency, accountability and integrity to our work culture. This responsibility lies on our shoulders.
Accorded with a “Clean Certificate” on the State Public Accounts for the last 13 years is a testimony of its good governance practices reflecting the conducts of its financial affairs are done in a transparent and accountable manner in line with the applicable rules and regulations. Besides that, international rating houses, Moody’s and Standard & Poor’s have maintained the State commendable investment grade credit ratings of A3 and A-, respectively; and these assigned ratings reflecting a sustainable record of the State’s strong financial performance, underpinned by robust growth in commodity-based revenues in earlier years, conservative budgetary practices and ample reserves.
The rating houses recognized that the State remains resilient despite the impact of falling commodity prices on its economy due to its prudent budgetary planning, strong financial position and a high degree of budgetary flexibility. We know that such credential does not happen overnight. It is a result of continuous good governance practices in managing the State’s financial affairs and is a culture inculcated in the State financial management over the years.
Nevertheless, in moving forward, we must continue to put in place strategic measures aimed at strengthening the financial discipline and management at all aspects if we are to keep up with our good track records and to maintain a financially healthy State.
Tuan Speaker, I would like to emphasize that the roles and responsibilities in sustaining our financial credibility do not just rest solely with the State Financial Authority but with all parties in the Government machineries and agencies. The Permanent Secretaries of Ministries, the Heads of Departments, the Board, CEOS and CFOs of all Statutory Bodies including Government-linked companies must continue to practise sound and prudent financial management.
Good governance, transparency, accountability and integrity are some vital traits that must be inculcated and nurtured in the public service work culture so that at the end of the day we meet the expectations of the public towards the delivery systems of the Government machineries and its agencies. Let us collectively continue to work hard and work smart in order to sustain our State financial autonomy, preserve its prosperity and political stability.
CONCLUSION
In conclusion, therefore, in moving forward, the State economy would have to depend on the increasing role of the private sector in spearheading domestic activities. The Government on the other hand, would continue to provide the necessary infrastructural facilities and incentives, as well as the administrative support to ensure a more conducive and cost effective business environment.
I would like to urge that our entrepreneurs and the business and industrial communities in the State to continue to take up the challenges. With greater commitment and concerted effort, we can strengthen the path towards higher growth and further development.
Tuan Speaker, it is crucial that Sarawak establishes a resilient society which can respond to the challenges in view of global uncertainties in this fast changing world. In essence, we ought to continuously preserve unity, harmony and political stability. We must build a healthy and resilient economy with sufficient financial resources to withstand uncertainties. The rakyat need to understand and appreciate the State’s policies and directions in facing new challenges and to support the political leadership that is capable of resolving problems and delivering services to the rakyat.
Tuan Speaker, dengan ucapan penutupan saya ini, saya memohon mencadangkan
agar Rang Undang-Undang ini dibacakan bagi kali yang kedua.
Did You Know?
Department of Statistics Malaysia (DOSM) will conduct the Economic Census 2026 (BE2026). BE2026 is the sixth economic census, implemented every five years since 2000.
The census aims to collect comprehensive data covering all economic activities in the country, including the wholesale and retail trade sectors.
The implementation of BE2026 also covers business establishments as well as non-profit organisations. The data collected will serve as a vital reference to support more effective and sustainable national development planning.
For more information, please visit the official Facebook page of the Department of Statistics Malaysia or access through the links below:
