Pembangunan Negeri

MAJOR INDUSTRIES 1. Timber-based Industries

Sarawak is one of the world's largest exporters of tropical hardwood timber. Sawn timber, Sawn logs, veneer and plywood form a major portion of the timber exported. Although timber and timber-products have traditionally been one of the most important exports, the potentials for timber processing activities have not been fully tapped. Under sustainable management programmes, Sarawak's forests can produce around 9-10 million cubic metres of logs annually, and the state aims to utilise much of this for value-added timber processing activities.

To promote higher value-added timber processing activities, the government has taken the following measures:

• introduce a Log Export Restriction Policy to reduce log export and ensure an adequate supply of raw material for local processing.
• eveloped several industrial areas primarily designed to meet the requirements of integrated timber-based operations.

Products: Great potential exists in the manufacturing of such items as knock-down, high quality furniture, laminated boards, specialised moulding and joineries and the manufacture of prefabricated housing or building materials for the export market.

2. Petroleum and Petrochemicals
The rapid development of the petrochemical industry in Sarawak has been due to not only the availability of large amounts of reserves, but also the government's efforts towards promoting private sector participation and interest, including designating an industrial area at Tanjung Kidurong, Bintulu, with well-developed industrial facilities to cater for the establishment of petrochemical projects. The ABF (ASEAN Bintulu Fertiliser) plant, MLNG-1(Malaysia Liquefied Natural Gas), Shell MDS (Middle Distillate Synthesis) and MLNG-2 are all located in this industrial zone. Another LNG plant is being planned in the area, making Bintulu the biggest LNG complex in the region.
Products: Given the availability of feedstock and potential demands, the list of other petrochemical projects that could be established include: polypropylene, copralactam, ammonia, melamine, compound fertiliser, MTBE, nitric acid, LPG extraction, acetic, methanol and urea formaldehyde.

3. Commercial Agriculture
Sarawak has large tracts of land suitable for commercial agricultural development. Intensive research is being undertaken by the Department of Agriculture, Sarawak and other agencies on peat land to study its potential.
The state government actively encourages development of commercial agriculture projects by the private sector. The large tracts of land and suitable agro-culture climate in Sarawak could be tapped for large-scale plantation of oil palm, rubber, pepper, coconut, sago, pineapple and fruits as well as livestock and aquaculture development.
Under the 8th Malaysia Plan (2001-2005), agriculture was allocated RM79 billion. Under the 7th Malaysia Plan, the agricultural sector recorded an improvement in real value added and proved to be a resilient sector during the economic downturn. Under the 8th Malaysian Plan, this sector is expected to increase its contribution to the National economy (saving foreign exchange) by import substitution production and increasing exports of agricultural products and processed foods.

Land Development for Agriculture
The state government encourages the development of plantation agriculture with the view to develop idle or under-utilised land, especially Native Customary Lands. By transforming these lands into profitable plantations, the government aims to increase the income and standard of living of the rural land-owners.
Large-scale land development, apart from increasing the contribution by the agricultural sector to the State's economy, will bring about:

• provision of basic infrastructure and social amenities to rural communities
  expansion of agricultural employment opportunities
• gradual reduction of areas normally utilised for shifting cultivation
• better standards of living for the rural population

The following agencies and authorities are involved in promoting and facilitating large-scale land development for agriculture:

i. Sarawak Land Development Board (SLDB)
SLDB was established in 1972 to develop State Land for agriculture and resettlement. It has developed land for oil palm, rubber and cocoa.

ii. Sarawak Land Consolidation and Rehabilitation Authority (SALCRA)
Established in 1976, SALCRA is entrusted with the responsibility of developing any land, with special emphasis on Native Customary Rights Land. It has developed land for oil palm, cocoa, rubber and tea. SALCRA's approach in undertaking Native Customary Land development is essentially one of in-situ or community development.

iii. Land Custody and Development Authority (LCDA)
LCDA was formed in 1981. It's task is to promote plantation agriculture by offering opportunities for joint-venture between landowners and private entrepreneurs. It is also involved in urban development.

New Concepts in Native Customary Land (NCL) Development
The State Government of Sarawak aims to transform the rural sector into a vibrant and modernised economy through the development of large-scale agricultural plantations. To achieve this goal, the government has formulated new strategies for the development of Native Customary Lands (NCL) which are mostly under utilized. The new strategy of NCL development is based on the premise that the vast tracts of fragmented native lands can be consolidated into "land banks" to enable it to be developed on a large-scale and commercial basis. The strategy promises to bring together native landowners (with their land) and the private sector (with its capital and expertise) to develop the land for agriculture, with the government acting as "managing agent" or trustee to manage the interests of the landowners. The native landowners retain their ownership of the land throughout, but leasing the land to the plantation with options to become shareholders or owners of the plantation that is developed.

Crops

a. Oil Palm
Sarawak has ideal climatic and soil conditions for large-scale oil palm plantation. Planting of the crop on an estate basis started in 1969. Since then the areas under oil palm has increased tremendously. To date, over 146,000 hectares have been developed for oil palm estates and plantations. By the year 2000, it is targeted that about 300,000 ha would be planted with oil palm. The production of crude palm oil in Sarawak has increased steadily from 49,100 tonnes in 1985 to an estimated 248,900 tonnes in 1995.

b. Sago
Sago, a crop which grows well on Sarawak's peat soil, has been identified as having great potential for commercial plantation and value-added processing development. Over 1 million hectares of peat soil is available in Sarawak, giving sago cultivation on a large, commercial scale much room for expansion.
The area under sago cultivation in wild and semi-wild condition is estimated at 19,720 hectares. In addition, commercial cultivation of sago using estate management techniques has been initiated by Sarawak's Land Custody and Development Authority (LCDA). Today, the total area planted with sago is over 28,000 hectares. A research unit of the LCDA, known as Crop and Research Application Unit (CRAUN) has been set up to conduct research and development on sago planting and crop commercialization among others. Sago starch is a valuable source of carbohydrate and is widely used in the food industries.

c. Pepper
The tropical climate and fertile hill slopes of Sarawak are ideal for pepper cultivation, making the state the main producer of pepper in Malaysia, accounting for 95% of the country's pepper production. Pepper (Piper Nigrum L.) is grown in Sarawak by smallholders on an estimated 10,332 hectares. The annual production is in the region of 20,000 tonnes and over 90% of this is exported. Traditionally, up to 80% of the crop is processed into black pepper with the remainder being turned into white pepper. Currently, the Sarawak Pepper Marketing Board is also going into the production of Specialty Pepper and a number of innovative pepper-based products. With effect from 1997, the Department of Agriculture will also promote the production of pepper products (processed from fresh green pepper) for sale to the general and niche markets internationally as well as locally. These products include green pepper in brine, creamy white pepper, naturally clean black pepper, individually frozen green pepper.

d. Rubber
Sarawak is also encouraging the large-scale commercial plantation of rubber, both for latex production as well as a source of rubberwood for downstream timber-based manufacturing.

e. Other Agriculture Sectors

• Fisheries
  The fisheries sub-sector will focus on commercial exploitation of deep-sea fisheries resources and commercial aquaculture. Deep-sea fishery resources which extend up to the limit of EEZ remain largely untapped.
• Livestock
  The fisheries sub-sector will focus on commercial exploitation of deep-sea fisheries resources and commercial aquaculture. Deep-sea fishery resources which extend up to the limit of EEZ remain largely untapped. Sarawak is one of the few states in ASEAN free of the Foot and Mouth Disease, Rabies, African Swine Fever, Rinderpest, BSE, Blue Tongue and other major epizootics. It's strict quarantine procedures give Sarawak a good environment for livestock investments. Annually, Sarawakians consume 2kg of beef, 16 kg of poultry, 130 kg of egg and 14 kg of pork per capita. At the moment, Sarawak is self-sufficient in poultry and pork. There is ample opportunities for cattle and dairy farming. In the poultry sector, the Department of Agriculture is encouraging grand parent stock farm establishment, as currently Sarawak imports all its parent stocks from overseas Downstream packaging and processing for value-added products is also being promoted. In the swine sector, the Department of Agriculture is also encouraging the establishment of a parent stock to supply the demand for 10,000 or so replacement breeding gilts per year, as well as the downstream processing of pork products. Waste treatment technology is also in great demand.

4. Agro-tourism
Government Strategies for the development of this sector are:

• Open up more land, including Native Customary Rights land, for commercial agriculture and land development with oil palm, sago, rubber and other cash crops.
• Promote spatial development through the implementation of Integrated Agriculture Development Programmes, Regional Development Authorisation and Regional Growth Centres.
• Facilitate private sector participation in commercial agriculture and land development.
• Intensify the development of other activities like deep sea fishing, aquaculture and inland fisheries.