Economist warns of serious economic repercussions

(This article was first published in the Free Malaysia Today and has been updated and produced here for the readers of The Broken Shield).

KUCHING: An economist with University Malaysia Sarawak (UNIMAS) has warned of serious economic repercussions in the State if there are insufficient funds to create and implement economic activities alongside projects planned in the 10th Malaysia Plan.

“Where there are mega projects such as a heavy industry, hydro projects, construction of highways and SCORE projects being implemented in Sarawak in the 10MP, there should be sufficient funds to finance, create and implement economic projects alongside these projects.

“This is to avoid the failures and the experiences in Batang Ai and in Bakun,” said Professor Dr. Dimbab Ngidang at a paper presented at a recent seminar organised by Dayak Chamber of Commerce and Industry (DCCI).

Sarawak’s Chief Minister Abdul Taib Mahmud opened the one-day seminar. Five papers were presented.

“We must learn from the past experiences in Batang Ai and Asap in Bakun. The SALCRA farm scheme in Batang Ai does not generate enough income for setters there nor does the resettlement scheme for settlers in Asap, let alone generating high income earning.

“I am not saying that they are not without income; they lack expanded economic opportunities to earn extra income. When resettlement scheme at Tunu (Kapit) is implemented there is also a strong possibility that settlers there will not likely to earn sufficient income like their counterparts in Batang Ai and Asap.

“This is why sufficient federal funding should be allocated to help the state government creates diversified high income generating economic activities for communities directly affected by mega projects,” he said.

Dimbab said: “Now, the same rationale of people-oriented approach in NEP should also be invoked for creating economic activities in order to expand economic opportunities for the affected communities not only in SCORE, but also alongside all government-funded development projects elsewhere.

“When the nation-state invokes a positive discrimination approach, it is not impossible for rural people to capture a fair distribution of socio-economic benefits and/or spin-off effects of the construction of HEP dams, establishment of heavy industry, infrastructures (roads) and modern facilities cutting across the hinterlands of Sarawak.

“That tall order of social responsibility has been discharged in NEP and should be continued for the sake of inclusiveness in the high income policy in NEM so that people in the peripheries are brought into the fold of mainstream economic development.

“Therefore, mixing the correct ingredients in a balancing act between striving for economic growth and inclusiveness of rural peripheries in NEM to create high economy is certainly for the interest of the nation-state so that the lower income groups especially in rural areas are not being left out in the 10MP and beyond,” he said.

Dimbab related a story how 3,600 people were displaced in 1982 as a result of the construction of the hydroelectric power (HEP) dam at Batang Ai, Sri Aman Division.

About 1,595 families were resettled in the land scheme in 1982, of which each family was allocated 4.5 hectares of farmland: 2 hectares of rubber, 1.2 hectares of cocoa and 0.4 hectares for a garden plot, whereas the remaining 0.8 hectare for rice cultivation is yet to be given.

The cocoa farm scheme was abandoned after cocoa price plunged in the 1980s and has been replanted with oil palm. Although the resettlement scheme provided facilities and infrastructure, the farm scheme has not been able to provide a sustainable income for the settlers, and the lack land for rice cultivation seems to add to the problem of food insecurity.

The aquaculture project in Batang Ai has long been discontinued for lack of funding and found to be not economically viable to run due to high cost of feed and limited market outlets.

He said that in the 1990s, 15 longhouses, comprising Kayan, Kenyah, Kajang, Ukit and Penan people with a total affected population of 9,4289 were resettled at Asap, Belaga district in Kapit Division. Three acres of land were allocated per household at Asap resettlement scheme.

He said: “In short, there are very little economic activities in these government-created resettlement schemes today. The same argument of insufficient income also befalls all these schemes; they are not with income, but not adequate enough for supporting sustainable livelihood.

“Perhaps, a thorough assessment of these projects is also necessary. Given the sacrifices they have rendered to the nation-state over the years, surely the existing critical mass in the above-mentioned schemes deserve special attention in terms of federal allocation for implementing affirmative action programs in the 10MP.

“Federal funding is crucial to help create economic activities in these resettlement schemes whether in the form of cottage industry, aquaculture, commercial orchards and vegetable production or food processing, etc., with supporting technical advisory services by relevant agencies and a guaranteed market for their products,” he said.

COMMENT: 10MP offers nothing to the rural people

By Joseph Tawie

(This article was first published in the Malaysian Mirror and it is updated and published for the readers of the Broken Shield)

KUCHING: Glancing through the reports, there is nothing spectacular about the 10MP. As they say: “It is an old wine in a new bottle.” In other words, the same stuff from the previous plans.

For Sarawak, three particular areas of development are specially mentioned which are likely to involve the rural people: the proposal to build a total of 2,819 km of roads; to supply 87,400 additional houses with treated water and 76,000 more houses with electricity.

On top of this, there are also plans to address the poverty of Sarawak bumiputras through integrated development programmes and specific enhancement assistance.

The objectives of the 10MP are not dissimilar with those of the 1MP and other eight Malaysian Plans, that is, supply electricity, water supply and to address poverty in the rural area.

More than 46 years ago today, between 70 and 80 percent of the longhouse dwellers are still suffering from lack of treated water and 24-hour supply of electricity and more than 50 percent of them are still in the vicious circle of hardcore poor.

So what make you think that the 10MP is any difference from the nine previous Plans?

Baru Bian, chairman of Parti Keadilan Rakyat Sarawak nicely sums up the whole Plan: “Nothing for the rural Sarawakians to be proud of. We are taken for granted notwithstanding our wealth that has been taken away, stolen or sold off.”

As every one knows that Sarawak having oil and gas, timber resources and lands, is the richest State in Malaysia, and yet her people especially the rural people are among the poorest in the country. So has happened to our resources?

Squandered, stolen or sold off?

So if that is the situation where can Sarawak get her money for development?

Obviously the people of Sarawak are worried. Firstly, because the federal government may not have the funds to finance all the projects spelt out in the 10MP due to its heavy debts. The corruption and misappropriation of funds through scandals like Bank Bumiputra, PKFZ, Perjawa steel, purchase of submarines, jet fighters, and so on an so on are still fresh in the minds of the people.

Secondly, even if there is some money given to Sarawak under the 10MP, the people are also worried of funds for government projects going “leaked”. According to MACC reports, about 60 percent of government funds for the various projects in the past have been found to be “leaked”.

Peter Minos, former president of Dayak Bidayuh National Association, expresses the fear of leakages and improper use of the funds at the implementation stage, unless the Prime Minister gets in people who are honest and clean to help him.

And thirdly, the rural people in other Divisions are worried about the diversion of funds from other areas to SCORE areas situated between the coastal areas of Bintulu and Tanjung Manis.

Who dares to say anything if Chief Minister Abdul Taib Mahmud wants the fund to be diverted?

A colossal amount of money, perhaps in the region of more than RM100 billion are expected to ignite the development of projects in SCORE. These include the building of roads, bridges, other infrastructural facilities and lands and crops compensations.

Other SCORE projects include two aluminum smelting plants to be built in Bintulu at a cost of RM18 billion. And the third one, as Taib Mahmud recently proposed, may need at least another RM10 billion to build.

But what about the proposed 12 dams that the Taib Mahmud’s government wants to build?

Here again the construction of these dams plus infrastructure, and perhaps land compensations, can easily cost more than RM100 billion. This is not to mention the hardships and the displacement of thousands of natives and submerge of thousands of hectares of land, and the flora and fauna that will disappear as the result of the creation of man-made lakes.

Adding to these mega projects, there are also an international airport to be built in Mukah to cater for bigger aircrafts, an administrative centre in Mukah and coal-powered station. These three projects are worth well over RM2 billion.

Is it necessary to extend this airport, when it is only a stone’s away from Sibu Airport, Bintulu Airport and Miri Airport?

Spending hundreds of billions of ringgit on SCORE is going to deprive other areas, especially the rural areas from being developed.

As I see it, of all the people, the Dayaks will suffer, and the lack of development will push them over the edge into the abyss of poverty. Already their problems are being aggravated by the fact that they have lost their NCR lands to companies, where they used to plant padi, cash crops and fruit trees.

All the rubber trees, fruit trees and cash crops that have been planted have been destroyed resulting in them losing their daily incomes.

Without their lands, the Ibans are just like fish without water.

As they have no lands in which they can plant padi, fruit trees and cash crops, many have started to migrate to towns and cities. But their lack of skills for works in the urban centres may complicate further their problems. It will be of no surprise, if there appears in their midst social problems – prostitution, smoking, drinking, robbery, drugs and drug-related problems.

They are just jumping from the frying pans direct to the fires.

Even if they do not migrate to towns and cities the Ibans will still suffer not only due to lack of land to farm, but also due to river pollution that will affect their drinking water, their sources of protein and their dependence on jungle produce such as ferns and bamboo shoots.

Whether they like it or not, they are forced to become labourers in their own land and are being paid between RM8.00 and RM15.00 a day.

Nor can they ever hope of getting dividends from a joint-venture undertaking with companies as they (the companies) use the funds to further expand the acreage of the plantation. Many in Kanowit, for example, have complained that they have not received even a cent from such companies, even though the companies have been in operation for more than 10 years. So what hope is there to have a better life from these companies?

It is the opinions of many Dayak leaders that if the government is really serious in helping the rural people then the government should not take away their land by force. As it is stated earlier, land is their life.

Instead the government should have come up with plans under the 10MP how to develop their land. Perhaps the government could have adopted the way the government assisted farmers in the rubber planting schemes A or B in 1970s.

Through these schemes, the farmers are encouraged to plant oil palm in a block of three acres per person with seedlings provided and fertilizers subsidized. Agriculture officers should be sent to check on the development of the farms and to ensure proper upkeep of the gardens.

When the palm reaches maturity, the fruits are collected and placed on a roadside; some authorized buyers will fetch the fruits and pay them on the spot. Through these smallholdings, they can earn as much as RM1,500 a day. Proofs of this can be seen today.

Since there is nothing in the 10MP, perhaps in the midst term review the government should consider some sort of concrete actions to help the rural people.

Left to their own devices, the Dayak poverty can escalate into an insurmountable problem, and it is indeed a time bomb in our society. It needs a spark to trigger it.