GOH DE NO Apr 14th, 2010
Borneo neighbours considering ‘collaboration’ in race for FDIs
SABAH has proposed joining hands with Brunei in pursuing common economic interests including their separate plans to develop economic zones and attract foreign investors.
Sabah’s Minister of Industrial Development Datuk Raymond Tan yesterday broached the possibility of the Malaysian state and Brunei collaborating on the area of economic zones as both economies are headed in the same direction which involves attracting foreign direct investments and the development of the downstream sector.
“Looking at the Brunei Bay, it’s very near Sabah and that’s the particular reason why we are interested,” said Datuk Tan. “We want to develop our major industrial activities at the West of Sabah to compliment Muara. I would like to shortlist what we can do quickly as there have been a lot of discussions already.”
Dato Paduka Timothy Ong, acting chairman of the Brunei Economic Development Board (BEDB), said he was keen on exploring a possible collaboration “to create a stronger proposition for prospective investors, integrate and come together to to see how we can connect all plans”.
In a briefing for a Sabah delegation led by the minister, the BEDB discussed Brunei’s plans to develop Pulau Muara Besar (PMB) as an integrated port processing zone.
During a discussion at the iCentre yesterday, Datuk Tan said “it brings comfort to me knowing that we are headed in the same direction” and that it is for Sabah’s self-interest to look at the bay and expect similar development on the Malaysian side.
“We don’t want a situation where we grow towards the same way and meet in the middle as the bay is basically shared by Brunei and Sabah,” said the minister. “I like the idea of a collaboration or a joint venture.”
Datuk Tan added that Brunei and Sabah should promote Borneo together as it is already happening in terms of tourism.
“In the tourism sector, it’s already happened with Brunei taking the lead to promote Sabah and Sarawak in Australia and so on. That’s exactly what we should do now, we should share and see what we can do and develop into some form of joint venture or public private partnership (PPP). That is something we can work in the same direction,” said the minister.
Datuk Tan added that he would love to see the project materialise and work with Brunei toward the development of economic activities in the bay.
“Basically, look at how we are going to move in some part of our resources to begin in this area in order to go downstream. One example of downstream plantation development is palm oil. What we are planning is how we want to create downstream activities from our resources. So in terms of objectives, it’s the same and we can share a few things here,” said Datuk Tan, who also suggested that the PMB project could be referred to as the Brunei Bay Economic Zone.
BEDB’s Dato Ong during the discussion agreed that Brunei Bay Economic Zone sounds stronger in terms of marketing the project internationally. He also acknowledged that up until yesterday, they had not thought of Sabah in their plans. Fortunately, nothing was set in stone yet and through yesterday’s exchange, they could explore how their plans would come together, he added.
The Sabahans’ visit “is timely as we are open to suggestions”, Dato Ong said, adding that there is room for collaboration and that he was keen on having a more detailed discussion to share the plans of Sabah and see how Brunei can integrate that plan to create a stronger proposition for prospective investors.
“What Datuk Tan is saying makes a lot of sense because if we plan this with what Sabah is planning, we can talk to investors not only about what’s happening in Brunei, but what’s happening in Sabah as well through a collaboration,” Dato Ong said.
“Also, we are very keen on financing the development of the Brunei Bay Economic Zone through PPP,” Dato Ong told The Brunei Times.
BEDB aims to attract investments of up to $4 billion for the first phase of the port project.
By 2010 after submitting the masterplan for approval, the BEDB will be tendering for dredging, reclamation, bridge and infrastructure and the port would commence operations in 2013.
PMB is estimated to cost more than US$1.5 billion ($2.25 billion) and will reclaim 1,045 hectares of land in the area upon completion. The area is 955 hectares.
Datuk Tan extended an invitation for BEDB to visit Sabah to further discuss possibilities on the Brunei Bay Economic Zone.
http://news.brunei.fm/2010/04/14/sabah-to-brunei-lets-join-forces/
