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Sarawak Corridor of Renewable Energy Powering the Future

Seminar on Investment Opportunities in the Resource Based Industries

18 April 2016

Presentation By

State Planning Unit

Chief Minister’s Department

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Contents

•Sarawak Economy

•Sarawak Development Plan

•Economic Transformation Through SCORE

•Conclusion

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Sarawak Economy – GDP and Inflation

2.2%

4.4%

8.3%

0.3%

-2.0%

4.3%

5.8%

1.5%

4.2%

5.0%

2.2%

4.0%

1.7%

6.0%

0.2%

1.5%

2.6%

1.8% 1.9%

3.2%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GDP

Sarawak 1963 1970 1980 1990 2000 2010 2014

Real GDP (RM million) 527 877 5,142 9,997 17,446 66,947 78,632

Nominal GDP (RM Million) 550 913 5,176 10,931 30,737 84,897 110,940

Per capita Nominal GDP (RM) 688 936 4,066 6,544 14,838 34,136 41,476

Inflation

• Sarawak experienced a steady economic growth and

low inflation rate.

• The average GDP growth is 4.4% per annum.

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Contents

•Sarawak Economy

•Sarawak Development Plan

•Economic Transformation Through SCORE

•Conclusion

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Agriculture Economy

Manufacturing Economy

Heavy Industry & Knowledge-Based Economy

Vision 2020

Sarawak Vision 2030 Sarawak Development Plan

• Fisheries

• Farming

• Logging

• Oil

• Industrial Parks

• Metal Fabrications

• LNG & Petrochemicals

• High-Tech industries

(Wafer Fabrication)

• Plantation Agriculture

• Timber Processing and

Products

• Tourism & HRD

SCORE - Sarawak Corridor of Renewable

Energy (2008-2030)

• Energy - Generation & Transmission

• Physical Infrastructure - Roads, Ports, Airports,

Utilities

• Targeted Industries - Resource-based, Energy-

intensive, Services

• Manpower - Education, Training and R&D

• New Growth Nodes - Tanjung Manis, Mukah,

Samalaju, Baram and Tunoh

A High Income,

inclusive and

sustainable Nation

Politics of Development

(1981 – 2000)

New Reality

(2000)

Second Wave of Development

(2006 – 2030)

A High Income and

Advanced State

SETP - Sarawak Socio-Economic

Transformation Plan (2016-2030)

• Rural Transformation

• Economic Growth

• Urban Redevelopment

• Social Development

• Environmental Development

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Contents

•Sarawak Economy

•Sarawak Development Plan

•Economic Transformation Through

SCORE

•Conclusion

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Economic Transformation Through SCORE

1. To create new sources of wealth;

2. To move the State’s economy up the value chain;

3. To achieve higher per capita income

4. To achieve balanced regional development

5. To enhance quality of life; and

6. To eradicate poverty

3 1. Laying The Foundation (2008 – 2015)

• Build critical mass and momentum to

trigger development;

• Implement high priority infrastructure

projects; and

• Attract high priority trigger projects.

2. Towards Vision 2020 (2016 – 2020)

• Align development efforts with Vision 2020;

• Ensure growth and development of Corridor

by building industrial clusters and value

chains;

• Develop R&D capabilities

3. Corridor Fruition (2021 – 2030)

• The eventual period required to bring

the Corridor to full fruition;

• R&D to sustain the economy; and

• More domestically -generated

investments.

1. Aluminum

2. Glass

3. Oil-based

4. Steel

5. Palm Oil

6. Fishing & Aquaculture

7. Livestock

8. Timber-based

9. Marine Engineering

10. Tourism

Phases of Development 10 Priority Industries 6 Objectives

1. Samalaju (Heavy and Energy Intensive Industries)

2. Mukah (Smart City, Services Hub & R&D)

3. Tanjung Manis (Halal Hub)

4. Baram (HEP, Oil Palm and Forest Plantation, Eco-Tourism)

5. Tunoh (Oil Palm and Forest Plantation, Agric. and Eco-Tourism

5 New Growth Nodes

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Physical Infrastructure, RM61b, 18%

Human Capital, RM3b, 1%

Institutional Infrastructure, RM3b,

1%

Power Sector, RM67b, 20%

Industries, RM200b, 60%

Private Funding, RM267b, 80%

Total Planned Investments – RM334 billion (USD110 billion)

20% Government Funding

(Basic Infrastructure)

80% Private Funding

(Opportunities for Private Sector)

Government RM67 billion 20% Private Sector RM267 billion 80%

Investment Opportunity in SCORE

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Summary of Approved Investment By Type of Industry

No. Industry No. of Project Investment

(RM Bn) Jobs

1. Basic Metal Products 16 25.10 13,348

2. Chemical and Chemical Products 2 3.465 1,400

3. Petrochemical and Polymer

Industry 1 0.03 14

4. Food Manufacturing 2 2.11 1,692

Total 21 30.705 16,454

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Samalaju Industrial Park

“Centre for Heavy and Energy Intensive Industries”

• Samalaju Industrial Park has

an area of more than 8,000

hectare.

• One of the biggest industrial

parks in the country.

• Being developed with the

industrial infrastructures

including a dedicated port

facilities and a new township.

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The Enabling Industries will form

the basis of the anchor and innovation

clusters

Steel Aluminium Construction

Polysilicon Glass Petrochemicals

Heavy

Industry &

Metals

Renewable

Energy

Products

Building

Materials &

Components

Transportation

& Resource

Innovation

Downstream

Processing

Future

Technology Agro & Life

Science

Enablers

Enablers

Anchor Cluster Innovation Cluster

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Mukah Smart City

Our vision for Mukah as a Smart City is to integrate three sustainability missions: economy, society/culture and environment…

Vision and missions

A global Smart City of sustainable development for high quality of life

Vision

✓ To create a growing and competitive economy with high income levels and offering equal

opportunities to all

✓ To have a strong social and cultural identity of Mukah Smart City

✓ To protect and conserve Mukah's natural environment

Missions

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Mukah Smart City Eight "Economic Trigger Projects" are identified for Mukah Smart City – Education and ICT are

proposed as the foundation sectors

Education Hub 1

Agri-Tech Research Hub

3 Biotech Cluster

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ICT industry 2

Food City 5 Matadeng Industrial Estate

6 Revitalising fisheries

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Res

ea

rch

&

Te

ch

no

log

y

Ma

nu

fac

turi

ng

Cultural industries 8

Fo

un

da

tio

n

Cu

ltu

ral

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Tanjung Manis Halal Hub

“T-MEGA is the project’s immediate focus”

TMHH Master Plan Phase 1 (25,493 ha)

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The strategic directions will drive growth at the world’s Premier Halal Hub at Tanjung Manis

1

2

3

4

5

6

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Market and opportunity led approach to economic sector and project identification

Focus on growing international markets as a target for the development zones off-take

(China, India and Indonesia)

Long term sustainable energy supplied at negotiable fixed costs as a result of

hydroelectric power in Sarawak

Domestic and foreign investment to act as a catalyst for future economic growth

Creation of world’s premier Halal Hub “Farm-to-Table” concept focusing on an entire

supply chain integrated approach

“Green” conscious development with a sustainable approach to safeguard the

environment and enable future generations to benefit from Tg Manis

Tanjung Manis to contribute to rectifying the food imbalance and to assist Malaysia and

Sarawak to reach their SSL targets

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Comprehensive supply chain, value chain & Halal eco-system 91 projects identified for Private Sector investment requirements

Transportation Projects

Upstream Midstream Downstream

Market – China, India,

Middle East, SE Asia

& Domestic

1.3 billion people to

enter global middle

class – food

requirements

One-stop centre for regulatory approval, food safety, bio-security & Halal requirements for the greater development area

Markets

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SCORE Hinterland comprises 88% of the SCORE Development Area, having a population of only

184,000 people

SAMARAKAN Rural Growth Centre

BARAM Rural Growth Centre

TUNOH Rural Growth Centre

SAMALAJU Heavy Industries

MUKAH Smart City

TANJUNG MANIS Halal Hub

Long Banga Long San

Bario

Long Seridan

Kapit

Sibu

Song

Kanowit

Sg. Asap Sebauh

Tatau

Long Lama

Selangau

Belaga Metalun

Source: SPU

Bakun Murum

Baleh

Pelagus

Merit Pila

Baram

SCORE Hinterland

Three strategic thrusts for the SCORE Hinterland: To build a

sustainable rural economy for growth and high income

To mobilize rural communities for social and economic advancement

To manage the natural environment for sustainable development

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SCORE Hinterland Six "Economic Trigger Projects" are identified for SCORE Hinterland – Aquaculture, Tourism, Forestry,

Palm Oil, Rubber, Biotechnology

Aquaculture

• Integrated

aquaculture farm

• R&D

• Hatchery

• Grow out

• Processing

• Marketing

• Transport

1 Tourism

• Eco-Resort

• Houseboat

• Luxury Retreat

• Sea Planes

• National Park

2 Forestry

• Forest

plantations

(Acacia,

Eucalyptus, Batai,

African

Mahogany)

• Mechanical pulp

mill

• Paper mills

• Integrated timber

complex

• Wood pellet mill

3 Palm Oil

• Oil palm seed

production

• New plantations

& mills

• Tissue culture

facility

4 Rubber

• Rubber nurseries

• SMR

• Integrated rubber

plantations

5 Biotechnology

• Biotechnology

opportunities in main

economic sectors for

SCORE Hinterland

• Upstream

applications – for

increased upstream

sector success

• Downstream

applications – for

new / enhanced end

products

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Contents

•Sarawak Economy

•Sarawak Development Plan

•Economic Transformation Through SCORE

•Conclusion

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Conclusion

• We want to achieve a high income and advanced economy by 2030.

• In order to achieve this objective we are implementing the SCORE Development Plan.

• SCORE will create vast business and employment opportunities for our people.

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Thank You