1,DEWAN___ANSWER_ON INFRASTURETURE PROJECTS IN SARAWAK

2,REPORTS ON EFFECTS OF HAZE 

3,FINANCIAL ALLOCATION TO FEDERAL DEPARTMENTS IN SARAWAK

4,POULTRY/ANIMAL FEED PRODUCED LOCALLY

5,PLAN TO MAKE SIBU DIVISION A VIABLE TOURIST DESTINATION
 

Speeches /Debates

(a) Speech on Dewan Undangan Negeri (Privileges etc) Bill 

(b) Speech on Sales Tax Bill 

(c) Speech on Wildlife Protection Bill 

(d)Speech on Motion of Thanks to TYT 

DATUK SPEAKER, Sir,

Permit me also to participate in the debate on the motion of thanks to the royal address by the Tuan Yang Terutama on 4th May, 1998, and at the same time to raise some issues which I think are important.

In his royal address in this august House, His Excellency placed great emphasis on the practical and policy direction that the government is taking in the running of the state, particularly in the time of the present economic downturn.

I would now like to speak on the following issues:

(1) Concerted Effort for Economic Revival:

I think there is no dispute that our country is currently facing the most trying times since independence. We are enveloped in the a trilogy phenomenon in the currency crisis, stock market crash and economic downturn. Despite expressions from some Honourable Members to the contrary, our state is not spared the full effects of the crisis. We see regional stock markets tumble. We are concerned over weakening currencies and interest rates increase. The road to recovery seems distant, may be two to three years. We cannot expect the present state of the economy to recover dramatically in the short term. Recovery will require the joint efforts of all and sundry. On a united front all must stand. There is no shortcut answer to resolve the crisis. It requires the resolve and resilience of all levels of the government and the people.

(2) Economic Turmoil: Fate of Timber Operators & Other Businesses

One of the industries that has been affected most by the economic crisis is the logging industry. The reduction in log purchase by Japan and Taiwan have literally sent the logging industry into hibernation. Prices of logs have decreased to such a level that many licensees, contractors and sub-contractors are finding it uneconomical to continue operation. Because of the shrinking markets many licensees and contractors have imposed upon the logging companies to reduce the extraction fees, sometimes even to the tune of 50% of what had been agreed, even though in writing. In order to help service the hire purchase payments for their heavy equipment, some are forced to continue their operation at the concessions. Many others have to simply withdraw from production. These are facts. 

Many logging companies have become unable to service the loans under their Hire Purchase Agreements. Hundreds of writs were issued by the finance companies in recent months with a view to recover payments, for after a mere three months of defaults, all these loans will be classified as non-performing loans (NPL), and many finance companies are compelled to institute legal actions. Many logging companies which have done so well in the past few years are now on the brink of bankruptcies or liquidation. When times were good, they had never thought of contingencies. The speed in which the recession sets in has caught them off guard. Guarantors are dragged in to the courts also. Staring at hire purchase sums which they are unable to pay, ranging from hundreds of thousands to more than a few millions Ringgit, these loggers and guarantors have tears flowing down their gullets and not down their cheeks.

Please do not accuse me for painting a gloomy picture about them. This is the genuine fate of many of these otherwise very honest people who have fallen victims to the economic down turn.

Many sawmills have either slowed down their operation or are on the verge of closing down because there is little demand for their products. Some that are operating are not able to make ends meet.

I know many logging and sawmill companies have resorted to retrenching their staff. Many timber camps have either slowed down or closed shop. Hence we can see many unemployed youths sitting in the coffee shops idling away their non-productive time. 

Barge and tug boat operators are likewise affected. A week ago, a barge operator in Miri told me he had not had any work for the past 3 months. He, amongst others, are now sitting at home to idle his time and waiting to go to court, all because banks and finance companies are slamming their brakes too hard and too fast. 

The timber industry has contributed so much to the state economy and the state consolidated fund in the past decades that may I appeal to the government to look for ways to help them. Sarawak is in a unique position because we certainly do have abundant resources, and so long as opportunities are given, survival is almost guaranteed. Sarawakians have always been resilient and have ample survival instinct. Maybe the government can prevail upon the federal Finance Minister and these banks and finance companies to allow these borrowers to restructure their loans, or to adopt more flexibility in extending credit or in enforcing their rights under the hire purchase agreements, or maybe the government can cut royalties or give more time for them to pay royalties. Hopefully, recovery will come in time so that they can contribute to the state economy again. I have always said that it's all very well to strengthen the financial system, but if companies are starved of liquidity and go bust, then the banking system will be in danger.

(3) Economic Turmoil: Subcontractors at the Bakun HEP:

I understand that subcontractors at the Bakun HEP have been drastically affected by the economic down turn. With the project deferred, these people have been sidelined, and cannot make payment to the banks and finance companies. They are facing court actions and bankruptcies. Perhaps there is an area where the government can help, like let them be involved in other projects like opening idle land for planting oil palm, sago and others. This would help reduce the amount of jobless and also to allow them to utilise their equipment originally meant for the Bakun HEP and enable them to service the loans. Giving them alternative opportunities would both help them and their families as well as the financial institutions. I learned that 52 subcontracting companies are linked to the Bakun HEP and they have taken out RM70 million in loans. 

The downturn in the Asian economies has dramatic impact on the state revenue. Traditionally, our state has relied on the timber. However, the decrease in the demand for timber and timber products from Japan and Taiwan means that we may not be able to rely on timber as our major revenue earner. The state has to diversify its revenue base. The economic downturn has forced us to place Greater emphasis on many other industries besides timber, such as the manufacturing and agriculture sectors.

(4) Agriculture Sector, Its Importance and Emphasis:

I am glad to learn that the government is giving special emphasis on the agriculture sector when drawing up strategies and measures to check the current economic crisis. The expansion in the agriculture sector during a time of economic crisis is the cornerstone of nation rebuilding, for it reduces reliance on imports as well as reducing the outflow of monetary resources. It also produces employment, and may be called a win-win situation.

I agree with Ahli YB for Ba?Kelalan that it is absurd that Sarawak, with land almost as vast as Semenanjong, have to import more food than export, more so in the light of the size of its population vis a vis the amount of fertile land available. We should take steps to reduce food imports which totaled about RM1.2 billion last year. 

Sarawak is blessed with vast extracts of idle land, including peat swamp areas along coastal plains. This offers tremendous opportunities to exploit for big scale and commercial farming for economic returns. So much have been said by Ahli-Ahli Yang Berhormat on the importance of the agriculture sector in this Dewan that I would not repeat them. Suffice it to say, the economic downturn may have come as a blessing in disguise. At least it forces us to think of diversifying the state?s activities. 

I would like to speak on two specific issues under this head:

(a) Rice

Rice is a staple food for many, but the price of glutinous rice has increased by 30 sen to RM1.80 per kg. In 1994 it was only RM1.20 per kg. This price increase will induce a chain reaction of price hikes as many food items depend on glutinous rice. In this coming dumpling festival and the Gawai, consumers will have to pay more for glutinous rice.

Also, I learned from yesterday?s newspapers that effective 16th May, 1998, the retail price of Thai rice will increase by 40 sen a kg to RM1.90, an increase of 27%. The price increase will drastically affect the livelihood of the vast majority of the people who consume rice everyday. Many people can accept a little pay cut following the shrinking economy, but nobody can accept eating a little bit less rice, for survival is the basic instinct of mankind.

Rice is a controlled item. The government must ensure that a controlled item remains controlled and no price increase should be allowed. 

Also, the practice now is for the rice dealers to obtain rice supplies not from BERNAS but from its subsidiary companies called DAYABEST SDN BHD and B-Mart Sdn Bhd. I fail to understand why rice dealers in Sarawak should be required to obtain rice supplies through a middleman, ie, the subsidiary companies of BERNAS, with the inescapable result that the price will be increased, for the middlemen will earn from the deal. In Peninsular, the rice dealers can get their supplies directly from BERNAS, hence rice is cheaper there. The system in Sarawak must be rectified, so that rice dealers are able to get cheaper rice directly from the supplier BERNAS. Cheaper price will be passed on to consumers.

(b) Prawn Farming:

I learn that prawn farming is a capital intensive and profitable industry. Recently, we had some instances where prawn farmers have constructed their ponds and erected their structures on state land. I learn that some RM45 million had been invested in these projects by some 112 farmers on state land in Kuching. I also learn that the Honourable Minister had asked that these farmers cease farming on state land and a grace period of three months had been granted to them. It is of course legally wrong to squat on state land and involve in prawn farming which has environmental repercussions if stringent procedures are not observed. I had thought that giving three (3) months grace to stop their operation and move out is very reasonable, for these farmers would be able to recoup part of their capital expenditures through one cycle of operation. However I learned that despite the Minister?s order for a three months? grace period, the enforcement officers from the Land & Survey Department had begun taking action against these farmers within a week of the Minister?s order. I do not know why there should be such haste in taking actions despite the 3 months? grace period having been granted, particularly so when so much investments were at stake. May be the Honourable Minister of Agriculture would update this august House as to why there were hasty actions taken by the Land & Survey Department?s enforcement officers.

Perhaps the Honourable Minister should give these prawn farmers a definite indication as to when they are required to move out from these state land. The government may also consider leasing certain suitable land to these farmers so as to enable them to continue their livelihood, subject to observations of stringent environmental protection procedure. 

(5) Long Term Water Resources and Management for Sarawak:

Sarawak has always been blessed with abundant rainfall. We have seldom in the past encountered water supply problem. Water rationing has been rare. Hence, when Miri faced water shortage starting from the eve of the Gongxi Raya celebration in January 28, 1998, a lot were caught unprepared, including LAKU Management Sdn Bhd which manages the water supply to the region.

The people in Miri have the Deputy Chief Minister and his team to thank for working very hard to solve the water crisis.

We cannot blame anyone for the incident, because the same was caused by drastic climatic change brought about by the El-Nino weather phenomenon. However, the water crisis in Miri and Bintulu has taught us not to take anything for granted, for the law that dictates nature is not a piece of concise science.

The state government should formulate a long term policy pertaining to the management and supply of water throughout the state. This is to ensure adequate and sufficient supply of water to the consumers. Such water policy should also involve experts to draw up long term strategy to search for new water resources, including tapping underground water, in time of emergency.

The government should also reconsider its privatization programs. Essential services such as water and electricity supplies and medical services should not be privatized.

(6) Haze In Northern Region of Sarawak & Haze related Illnesses:

Sarawak was enveloped in haze in September, 1997, and a state of haze emergency was declared. Practically no one would have anticipated that the haze would come to haunt the Northern Region of Sarawak in February till April this year. 

It looks like the 1998 haze in Miri and Limbang divisions were caused by local human actions as compared to the September 1997 haze which came across from neighbouring Indonesia. Those individuals and companies that had been instrumental in causing the localised haze must be condemned and punished severely and be made to pay for the costs of putting out the fire and the losses suffered by the rakyat.

I read with amazement and sadness the statistics of the haze related illnesses given by the Honourable Minister in answer to my oral question on 6th May, 1998 which shows that cases of illness such as upper respiratory infection, bronchitis, asthma and conjunctivitis had increased in September, October and November compared to the period before the haze. In September, cases of illness related to upper respiratory infection and asthma has increased to 25,615 cases and 4,683 respectively compared to 16,089 and 2,282 cases in August.

The haze that shrouded the Northern region of Sarawak had been of a longer duration than the September 1997 haze. It would most likely have health consequences which may not be realised in the short run. As a responsible government this should be an area of concern.

There is one matter which I hope the Honourable the Deputy Chief Minister may provide an update in this august House in respect of the recent haze. In answering to my oral question on haze in November, 1997, the then Minister for Social Development had indicated to the Dewan unequivocally and certainly that an early warning system called the Complete Haze Response Capability (CHRC) had been installed and the machinery in place. I wonder whether the CHRC was deployed and was effective in combating the recent haze in Miri and Limbang.

(7) More Industries for Sibu:

I would be failing in my duty if I do not talk on some issues concerning Sibu.

Sibu is well known for being a timber based town. The fate of the economy follows the fluctuations in the timber industry to a significant extent. The downturn in the timber business has hit Sibu in a significant way. With this experience, it would be more prudent to be visionary. More SMIs should be set up in Sibu to help absorb the skilled labour, many of whom are laid off from the timber camps. I think I can understand why Ahli Yang Berhormat for Nangka had yesterday been so zealously appealing to the government to set up more industries in his constituency.

Sibu has been well known for its shipbuilding industries. However, these shipbuilders are scattered in many places, and many of them are sited in agricultural land. I have been told that apart from very few shipyards, most of them have not received any order for ship building for the past 5 months. They too, have suffered because of the economic down turn. Many of these builders are almost closing shop. The Honourable Minister for Industrial Development had in November 1996 talked about the shipbuilding industrial zone to be set up in Sibu. I wonder whether the Honourable Minister may provide an update now as to the present status of this shipbuilding industrial zone.

(8) Water Supply in Sibu:

Despite the fact that Sibu may not encounter serious water shortage problem because of the service of the mighty Rejang River, the recent episode of water shortage in Miri and Bintulu and certain areas in West Malaysia should serve to remind us not to take the mighty Rejang for granted. The people should be reminded to inculcate the habit of conserving water.

The government should seriously look into whether in the long run there is the possibility that drinking water in Sibu may be contaminated. This is due to the fact that our drinking water is derived from Rejang River, which now faces various sources of pollution and contamination. 

Logging activities upstream have affected our water quality by bringing heavy sedimentation to the downstream of Rejang River. Logs and debris are abundant in the river which pose danger to ship navigation.

Also, there has been increased industrial activities along the banks of the Igan River. The indiscriminate discharge of industrial wastes and toxic materials to the river may pose a danger to the quality and safety of the water and the life in the river. 

Many people have still the habits of dumping domestic, industrial and toxic wastes and animal carcasses into drains and rivers. The result is not only unsightly scenes but also blockage of drains and contamination of the river water.

On two occasions recently on 17th April, and 4th May, large quantities of prawns and fish were found dead and floating in the Igan River near the Tua Pek Kong temple and Upper Lanang area. I wonder whether this is as a result of water contamination or illegal fishing activities. In either case, I would urge the authorities to carry out detailed investigation and bring the culprits to book. 

Stringent regulations should be formulated regarding establishment of industries along the river banks. Such factories should be located in the industrial estates, and to be equipped with relevant treatment plants, especially for discharge containing heavy metals and organic and inorganic substances that are hazardous. 

In the water supply system, because of the poor ground foundations, the pipelines might have been distressed around the joints. Regular maintenance and inspections are needed to ensure that the microorganisms or bacteria are not present in the drinking water during pipe failure. 

(9) Illegal Immigrants:

The influx of illegal immigrants into our state, mainly from across the Indonesian borders, is an area of concern. Those apprehended by the authorities may only be the tip of the iceberg. Studies and experience have shown that illegal immigrants have always posed a social and political problem to the community. Rioting and violence by illegal Indonesian immigrants at the detention centres in Semenyih, Selangor, Machap Umboo in Malacca and Lenggeng in Negri Sembilan are but some examples.

Immediate actions must be taken by the authorities to ensure a stoppage in the influx of illegal immigrants. It is unfortunate that local agents are involved in bringing in these illegal undesirables, and there are those who harbour and employ these illegal immigrants because of their cheaper labour compared to the locals.

In this economic crisis, it is of utmost importance that Malaysians should go local, and that include employing local labour.

Because of the potential harm and drawbacks these illegal immigrants may cause the state, I would urge the government to consider imposing mandatory whipping on all those who are agents and also those who harbour or employ illegal immigrants. Our civil society should not be made to pay a social and political price because of the actions of some irresponsible people who gain from associating themselves with illegal immigrants.

CONCLUSION

With these observations and comments, I would like to associate with the Honourable members of this august House in expressing my thanks and appreciation to His Excellency for his gracious address in this Dewan on 4th May, 1998.