SARAWAK LEGISLATIVE ASSEMBLY
11 DECEMBER 2015
Datuk Amar Speaker,
Thank you for giving me this
opportunity to debate on the proposed Budget 2016.
I would like to take this opportunity
to deliberate a little about the investments that we should seriously look
into.
In my question on the
retrenchment of workers in the oil and gas sector this year, the oral answer we
heard this Wednesday was depressing, out of 220 workers retrenched, 219 of them
are Sarawakians.
This is the single most
significant industrial sector in Sarawak, whereby we derived more than
one-third of our state’s income, and we are referring to the most prized
resources endowed by nature to Sarawak.
These 220 workers retrenched
are just a fraction of those who are likely to be laid off within the next few
months, and even more, if the prices of oil and gas do not improve next year.
I am certain that the Labour
Department will do a good job to monitor the rationalization exercises of the
corporations to ensure that the laws as regard retrenchment are complied with,
more particularly the payment of retrenchment benefits.
However, retrenchment benefits
can never be sufficient compensation. A caring governmentwould do more to
protect her rakyat’s rights to work, which is a right to life.
We mustundertakes pro-active
and strategic roles in the petroleum industry to better protect and safeguard
the sustainability of our precious resources and the interests of the state and
our people employed in this oil and gas sector.
Therefore, when it was
revealed that the retrenchment exercise of Shell is linked to Shell Overseas
Holding Ltd’s plan adjust its upstream portfolio, to dispose its 51% stake in
Shell Refining Co (Federation of Malaya) Bhd or converting its refinery into a
terminal for import, export and storage. I would urge the state government to
discuss with Shell, to take up the 51% stake in SRC in order that the state can
play a constructive including an ownership role in the oil and gas upstream
portfolio.
On the other hand, to
safeguard the livelihood of the workers, the government should talk to Petronas
to absorb the 219 said-to-be highly skilled Sarawakian workers laid off
recently or to engage Institut Teknologi Petroleum Petronas (INSTEP), the
technical training institution owned by Petronas, to provide education, upscale
training and skill development for them and others who may be retrenched in
this current challenging time, so that they can be deploy into other sectors of
the oil and gas industry or play more crucial roles when the prices of oil and
gas are up again.
Datuk Amar Speaker, Honourable
members may ask why should we invest in the oil and gas when the renowned
industrial players have scaled down and even changed their portfolio.
Firstly, I would like to think
that our second motion unanimous approvedin this august Dewan to assert our
state rights, which include the affirmation to preserve and safeguard our
state’s territorial integrity, will inevitably and significantly improve our
position to bargain and negotiate for better returns and control over petroleum
development projects which are to be undertaken within our territorial
boundary.
Next, I am encouraged to read
an article published in a leading digital financial media, called The Street
earlier this week, that Warren Buffett has a game plan for the oil and gas
industry.
I am referring to Warren
Edward Buffett of course, the most successful investor and one of the world’s
most influential personality. In the latest filing of his main holding company,
he has significantly increased its stake in a Canadian-based energy company
that specializes in producing synthetic crude oil and another Texas-based
processor and transporter of oil and natural gas products, truly living to his
most famous quote “Be fearful when others are greedy. Be greedy when others are
fearful”, meaning to be prepared to invest in a down market and to "get
out" in a soaring market.
Peter Lynch, another renowned
investment guru had his international investment fund and assets grew from 20
million to 14 billion US dollars in 13 years, beating the Standard & Poor
500 Index benchmark in 11 of those 13 years and had achieved an impressive
annual average return of 29%. His oft-quoted advice to investors is to stay on
course when hit with recessions or declines, because economies are cyclical and
the markets have shown that they will recover. The important thing is to make
sure that we are a part of those recoveries!
Our state government has
better quickly approach Shell for the stake in SRC before they change their
mind.
However, the most important
sector for investment by a government is not in the stock market to make more
money.
This, I seek the kind
permission of Datuk Amar Speaker to recite a 2,750 year-old famous
Chinese proverb: “一年树谷;十年树木;百年树人” (yì nián shù gǔ, shí nián shù mù,bǎi nián shù rén) which has been translated to
English and commonly used to say: “If our plan is for one year, plant rice. If
our plan is for ten years, plant trees. If our plan is for one hundred years, educate
our children.”
Benjamin
Franklin, one of the Founding Fathers of the United States, may not have heard
about that Chinese proverb, but the famous polymath, "Renaissance
man" or a learned person echoed words to similar effect, that "An
investment in knowledge pays the best interest".
Benjamin
Franklin facilitated many civic organizations and he started the University
ofPennsylvania in 1740. The University which is now 375 years old is a world
class top university, 18th in the QS world university ranking for 2015-2016.
China
and US, together with the other world leaders, their countries are great
because they have long realized the importance of investing in education of
their younger and future generations and they are reaping the handsome rewards.
Datuk
Amar Speaker, it is true that RM200 million is a huge sum of money, and it is a
sizeable financial commitment on the state each year if we are to ask for
ownership of Unimas.
However,
Datuk Amar Speaker, the state budget presented by YAB Chief Minister has shown
that we can manage it. Reportedly, we have a budget surplus of RM175 million.
With prudent financial management, or if we persist to keep our goose that lays
the golden egg, Sacofa Sdn Bhd, its annual income alone will more than make up
the balance of the sum to be allocated to Unimas.
By the
way, Datuk Amar Speaker, my question on the latest development in the disposal
of the State Financial Secretary Incorporated’s stake in Sacofa was rejected.
The ground for the rejection that the information is available in the public
domain is mistaken and erroneous. I have perused the public documents filed by
concerned parties over the last 6 months and they are nothing enlightening.
There is only the market speculation that the acquiring private corporation is
lobbying the state to extend the monopoly of Sacofa as the sole service
provider of infrastructural facilities in Sarawak which I respectfully think
that it is not in the best interests of the State and all Sarawakians. I would
be most grateful if the Honourable Minister concerned will enlighten this
august House of this issue that is of immense interests and concerns to all
Sarawakians.
Coming
back to the annual amount of RM200 million needed to maintain Unimas, Datuk
Amar Speaker, it amounts to a mere 4 percent of our state budget. I am sure
that this is a very small sum, if we do not see it as an expenditure but an
investment on our children and the future of Sarawak.
For
completeness to account for the foresight of Benjamin Franklin and the
University of Pennsylvania he facilitated in 1740, the budget for the
University of Pennsylvaniain the fiscal year of 2015 is a massive USD7.25
billion, or RM30 billion. And it registered a massive university endowment of
USD10.1 billion. The investment into a world class university has its massive
rewards and it is of no financial burden to the state at all, or in the long
run.
Datuk
Amar Speaker, I am proud to be in this Honourable Dewan that has passed a
motion, which amongst others, emphasized on the needs to regain autonomy in
education system and policies which our state of its unique socio-cultural
diversity rightfully deserved. Many Honourable members have devoted
consideration time debating for it and my studious former classmate and
Honourable Member for Demak Laut has in his questions and speech rightly
highlighted everyone’s concerns over Unimas’ priority in serving the needs of
Sarawak.
Datuk
Amar Speaker, it is certainly a heavy burden on the federal government to
maintain 20 public universities and the less than mediocre support has resulted
in the achievement of universities which are mediocre at best. I am hopeful
that they will be happy to allow Unimas to be a state-owned government
university and I am more than certain that we can enable Unimas to out-perform
all its peers in this country and enter the QS World University Ranking within
a short time.
Surely,
it will be more meaningful for our Right Honourable Chief Minister, who will
not be complaining, when he is accorded another honourary degree from a Unimas
that has gained global prestige.
To
conclude, I would therefore urge that we realign our investments, prioritising
the needs of all Sarawakians, for the future that is a significant fair land
Sarawak.