SAPP launches its Economic Plan for Sabah

By Datuk Yong Teck Lee

KOTA KINABALU, Jan 16, 2012: In accordance with the economics of the allocation of scarce resources to maximum effect, SAPP aims to achieve economic prosperity and financial self-reliance for Sabah.

The Economic Plan that we launch today serves to lay out the road map to a prosperous Sabah based on wealth creation for the people and empowerment of the business community. Wealth must be created before it can be distributed. The engine of growth is the business community. The business community must be empowered and enabled to generate economic growth through investments, trade and innovation and productivity. We save for the future and invest in economic production. SAPP has confidence that Sabah can once again become the premier state in Malaysia.

Until the RM544 million bond (loan) taken by the Sabah State Government two years ago, the Sabah Government had zero private borrowing. Even at the height of the Asian Financial Crisis from 1997 to 1999, Sabah had remained resilient without having to take out any loans. All repayments to the Federal Government were on schedule, meaning that there were no arrears. Sabahans, over the years and in spite of four changes of State governments, have managed to stay clear of taking private loans or falling into arrears to the federal treasury. If you do not believe me, you can ask the most successful Finance Minister of Sabah, Datuk Hj. Mohd Noor Mansoor.

The RM544 million bond taken by this State Administration two years ago is a now burden to be borne by the next government. The bond is like spending tomorrow's money today. SAPP promises that, upon the retirement of this bond in 2015 and the retirement of this Chief Minister this year, the Sabah State Government shall not take any more sovereign loans that is actually a direct risk to the State Treasury.

My own experience as Chief Minister from 28 May 1996 to 1998, which was in the midst of the Asian Financial Crisis, taught me that economic resilience is most important in sustaining a nation. For those who have forgotten, the Asian Financial Crisis from 1997 to 1999, which started as a Thai Baht problem, eventually brought down the Indonesian government leading to the independence of East Timor. Korea came under the International Monetary Fund. Hong Kong's financial sector went into free fall. Malaysia was forced to impose currency controls and recapitalize and then merge the banks. Asian stocks markets and currencies went haywire. The social, economic and political impact on ordinary people were serious. China, which was only just emerging as an international economic player, had to come up with US1 billion to help ASEAN countries stabilise their economies.

As a member of the National Economic Action Council (NEAC) chaired by the Prime Minster and as chairman of the Sabah Economic Action Council formed specifically to face the Asian Financial Crisis, I participated in the crisis management of the time. I learned that Sabah must be economically prosperous, have huge reserves to face any future crisis and be financially self-reliant.

We have to depart from the culture of wealth distribution to wealth creation.

With the support of the people of Sabah and a strong mandate for SAPP, the new government of Sabah will bring new hope and a better Sabah for all Malaysians in Sabah...click here to view book on economic plan