SCORE

The Sarawak Perspective

High-Growth SMEs & Regional Development

Chang Ngee Hui

Advisor, State Planning Unit

Chief Minister’s Department

Sarawak

2009

Recent Performance of the Sarawak Economy

Sarawak: Real GDP Growth

7.4%

4.5%

7.6%

6.7%

5.0%5.5%

5.8%

2.0%

0.3%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009f

5.0%

2009f

Real GDP RM26.2 billion

Nominal GDP RM72.6 billion

Average

growth

5.0%

Economic Structure of Sarawak

% Share 2009e

Agriculture 8.5

Fishery 3.1

Forestry 3.4

Mining (mainly oil) 25.7

Construction 3.1

Manufacturing (LNG) 9.8*

Manufacturing (non-gas) 14.8*

Services 31.6

Govt services 7.2

Electricity & water 2.6

Commerce 13.2

Transport & communication 6.5

Other 1.6

Real GDP 100.0

* Estimate

• Manufacturing sector (non-

gas) is about 15% of the

economy

• Most of it will be the SMEs

RM10.7 billion – 15% of nominal GDP

RM7.3 billion – 10% of nominal GDP

Exports From Sarawak

Palm Oil 5.6%

Others 15.4%Wood products 2.9%

Rubber 0.3%

LNG 44.7%Crude Oil & Oil Products 31.1%

2008e Exports (RM billion)Total 91.1LNG 40.7Crude oil 27.0CPO 5.1Saw logs 1.6Sawn timber 1.0

Manufacturing – Medium-Tech Industries

Urea Products

PlywoodCeramics

Shipbuilding

Food Processing

Wafer Fabrication

Shipbuilding Electronics

Manufacturing – High-Tech Industries

Biotechnology Agro-based

TANJUNG MANIS

DEMAK LAUT INDUSTRIAL PARK, SAMARAHAN

15 Industrial Parks in Sarawak

Kuching

1. Demak Laut Industrial Park

2. Pending Industrial Estate

3. Samajaya Free Industrial Zone

Samarahan

4. Kota Samarahan Industrial Estate

5. Bandar Mutiara Industrial Estate

Sarikei

6. Sarikei Light Industrial Estate

Mukah

10. Mukah Light Industrial Estate

11. Tanjung Manis Timber Processing Zone

Sibu

7. Upper Lanang Industrial Estate

8. Rantau Panjang Shipbuilding Industrial Estate

Bintulu

12. Kidurong Industrial Estate

13. Kemena Industrial Park

14. Kidurong Light Industries Estate

Kapit

9. Kapit Light Industrial Estate

Miri

15. Piasau Light Industrial Area

16. Kuala Baram Industrial Estate

Limbang

17. Limbang Light Industrial Estate

SIBU

BINTULU

MUKAH KAPIT

MIRI

SRI AMANSAMARAHAN

SARIKEI

BETONG

LIMBANG

KUCHING

• Forestry• Hydro Power• Coal

• Oil & gas• Tourism• Shipbuilding• Commercial plantation

• Fishery• Agriculture• Timber processing• Sago processing • Commercial plantation• Shipbuilding

• Industries• Commerce• Finance• Education• Medical• Services• Tourism

Economic Niches in Sarawak

Challenges: Supply Chain & Logistics

Sarawak

2.5 million pop

124,450 sq. km.

Sabah

3.1 million pop

73,997 sq. km.

Peninsular Malaysia

21.6 million pop

131,805 sq. km.

Malaysia

27.2 million pop

330,252 sq. km.

2006 2015 2020 2030

Current Situation 2006GDP growth (%) 4.9RGDP (RM billion) 23Jobs (million) 0.9Pop (million) 2.4

With Corridor 2015GDP growth (%) 10.0RGDP (RM billion) 55Jobs (million) 1.5Pop (million) 3.2



Without Corridor 2030GDP growth (%) 5.0RGDP (RM billion) 75Jobs (million) 1.7Pop (million) 4.0

Source: ADL Analysis

5%10%

8.7%

7%

Sarawak Economy by 2030 Sarawak GDP to expand 5-fold 1.6 million more jobs Population will double to 4.6 million

SCORE is Long-Term Development Plan to 2030To lift the Sarawak economy By increasing income per head

SAMALAJU

SCORE Development Area

5 New Growth Nodes

Tanjung Manis Agro-based industries

Mukah Services Hub

Samalajau Heavy industries

Baram Rural Growth Centre

Tunoh Rural Growth Centre

Southern Region

19,174 sq km (15.4%)

1,105,000 persons

Corridor

Development Area

70,708 sq km (56.8%)

862,100 persons

Northern Region

34,567 sq km (27.8%)

437,100 persons

Huge energy potential of 28,000 mega watts

Today (MW) Potential (MW) % Total

Total 966 28,000 100%

Hydropower 94 20,000 71%

Coal 210 5,000 18%

Other 662 3,000 11%

Gas 481 481 2%

Diesel 181 0 0%

Other - 2,519 9%

The Power Sector

Sarawak has sufficient energy capacity for local industries, the

rest of Malaysia and export

SCORE Funding Strategy

• 20% Government funding – Basic Infrastructure

Private Sector 267 80%

Power Sector 67 20%

Industries 200 60%

RM334 billion – Total Planned Investments

Government 67 20%

Physical Infrastructure 61 18%

Human Capital 3 1%

Institutional Infrastructure 3 1%

• 80% Private funding – Opportunities for Private Sector

Project Capacity (MW)2009 Mukah Coal 2702013 Murum HEP 9442013 Limbang HEP 1602013 Lawas HEP 100

1,474

Power Generation - Potential

Coal Capacity (MW)

Merit 1,200Mukah Extension 300Metjawah 300

1,800

Hydro Power Capacity (MW)

Balleh 1,400

Baram 1,000Linau 290Tutoh 160Belepeh 110Batang Ai Extension 80Ulu Ai 54

3,0948,768 MW

Project Capacity (MW)2010 Bakun HEP 2,400

Batang Ai HEP

(92 MW)

Balleh HEP(1,200 MW)

Belaga HEP(250 MW)

Murum HEP(944 MW)

Bakun HEP(2,400 MW)

Baram HEP(1,000 MW)

Limbang HEP(160 MW)

Mukah Coal-Fired Plant(270 MW)

Tunoh HEP(160 MW)

Combined Cycle Plant (107 MW)

HEP

Existing HEP

Existing Coal-Fired Plant

Sarawak’s Energy Resources – Existing and Potential

Lawas HEP(100 MW)

Merit-Pila Coal (1,200

MW)

New Coal-Fired Plant

Source: ADL Study

Priority 1 (2008-2010) 9MP MTRPriority 2 (2011-2015) 10MPPriority 3 (2016-2020) 11MP

Ongoing/Approved

Kapit

Tatau

Baleh

Tunoh

Nanga Merit Coal Mine

BelagaBakun

Murum

Baram

Sarikei

Tanjung Manis

Tunoh access road

Solid line = existing road/upgradingDotted line = new road

Balleh access road

Ng Merit access road

Murum access road

Baram access road

Limbang access road

Access Roads to Energy Sites

10 Priority Industries

Resource-Based Industries Heavy Industries

Aluminum

Industry

6

Steel

Industries8

Glass

Industries7

Palm Oil

Industry

3

Fishing &

Aquaculture

Industry

1

2Livestock

Industry

Timber-based

Industry4 Oil-based

Industry

9

5Tourism

Industry

Marine

Engineering10

Investment in Industries (2008-2030)

Oil based industry 60

Aluminium industry 23

Palm oil industry 17

Timber based industry 11

Tourism industry 8

Aquaculture/fisheries industry 5

Steel and glass industries 6

Livestock industry 3

Marine engineering 1.5

Others 67

TOTAL 200

With RM200 billion required for industries, SCORE is big

enough for everybody in Sarawak to participate

RM20 billion market capitalisation of all listed

companies Sarawak-based and Sarawakian-

owned in Bursa Malaysia – 10% of RM200

billion required for industries

To invite foreign investors to participate

To mobilise local community to participate in

the new industry value chains

Trigger ProjectsYou can help us trigger developments

within your industry

Trigger

Project

Service

Industries

Service

Industries

Value

Chain

Cluster

Supply

Chain

Upstream

Industries

Downstream

Industries

Support

Industries

Support

Industries

Cluster

Supply

Chain

Value

Chain

You can come in as

a Trigger Project

ClustersThe Trigger Project will draw in component suppliers to form a cluster

Trigger Project

Component Supplier

Component Supplier

Component Supplier

Component Supplier

Component Supplier

Component Supplier

Opportunities for SMEs


Value ChainsThe Trigger Project can stimulate upstream and downstream industries

Trigger Project

Component Supplier

Upstream Project

Component Supplier

Component Supplier

Component Supplier

Downstream Project



Downstream Project

Downstream ProjectComponent

Supplier

HousingLogistics

Communications

Distribution

Hotels

Recreation

Healthcare

Education

Entertainment

Market Research

The Supply Chain will take the industry from production to exportsThe Supply Chain

Marketing

Transport Accountants

Lawyers

Bankers

Service Provider

Service Providers

Import/ExportDistribution

Housing Schools Healthcare

Research

Downstream industriesDownstream

industries

Upstream industries

Service Provider

Service Provider

Service Provider



Transport

Oil-based industry

Aluminum industry

Steel industry

Tourism industry

Livestock industry

Fishing/aquaculture industry

Palm oil industry

Timber-based industry

Glass industry

Marine engineering

--

Smelters

Steel making (steel mill)

Enhanced marketing

Breeder farms

Hatching farms

Palm oil plantations

Timber plantations

Float glass plant

Ship-steel making

Petrochemicals

Aluminum end-products

Steel products

Creation of new attractions

Processed poultry for export

Fish exports, fish processing

Refining, oleo-chemicals

Panels, mouldings, furniture

Modular windows

Boats, marine structures

Upstream Industry Downstream IndustryPriority Industry

Value Chains Examples of upstream and downstream industries



Oil-based industry

Aluminum industry

Steel industry

Tourism industry

Livestock industry

Fishing/ Aquaculture industry

Palm oil industry

Timber-based industry

Marine engineering

--

Fabrication and installation

--

Tour operators, agents, guides, hotels, restaurants, suppliers, transport

Farmer-producers

Farmer-producers

Smaller plantations, cattle rearing in plantations

Downstream processing

Independent (small) companies, subcontractors to larger firms

Plant maintenance and technical services

Plant maintenance, technical services, transport

Construction, supplies, feed

Supplies, feed, distribution

Plant maintenance, transport, supplies

Plant maintenance

Maintenance and technical services, suppliers

Upstream/Downstream Industries Service industries

Plant maintenance, technical services, transport

Priority Industries

Spin-Off Service Industries

Glass industry -- Plant maintenance, technical services, transport


Opportunities for Opportunities for Examples of Service Industries from Priority Industries

SCORE Economic Linkages with Peninsular, Region and World

Inputs mainly from Australia Markets include West Malaysia New technology transfer

Priority industries Development of Linkages

Aluminum industry China, East Asia Global

Main Markets

Inputs mainly from Middle East and Russia Markets include West Malaysia (Petrochemicals)Oil-based industry

China, East Asia Global

Inputs mainly from Sarawak (silica) & the region Investors can be from Malaysia

Glass-based

industry

Mainly Regional West Malaysia

Inputs mainly from Sarawak (silica) & the region (other)

Markets mainly regional, plus domesticSteel industry

East Asia (West Malaysia)

Regional and national collaboration in tourism promotion

Growing in-country tourismTourism industry

Domestic & regional Global

Collaboration with West Malaysian and Indonesian players and investors in downstream developmentPalm oil industry

Regional Global

Investors from Thailand, Taiwan, Japan, Malaysis Technology transfer from West Malaysia

Aquaculture,

fisheries

Domestic (Sarawak) East Asia

Potential technology transfer from West MalaysiaLivestock East Asia

Collaboration with West Malaysian and Indonesian players and investors in downstream developmentTimber industry

Regional Global

Trigger Projects

Upstream Industries

Local Corporate Leaders

Local Banks

Role of Corporate Leaders & Banks

Big Foreign

InvestorsForeign Banks

Local Banks

Big Local

InvestorsForeign Banks

Local Banks

Global Supply

Chain

Support Industries & Services

Local Entrepreneurs

Local Businesses

Local Banks

Downstream Industries

Local Corporate Leaders

Local Banks

Support Industries & Services

Local Community Leaders

Local Communities

Local Banks

Tanjung Manis: Zoning

Dubai World

T

A

N

J

U

N

G

TANJUNG MANISAIRPORT

NEW TOWNSHIP

SHIPBUILDINGINDUSTRY

TIMBER PROCESSING ZONE

BELAWAI TOWN

MARITIME OFFICE

POIC

CODTRPA PORT

LKIM FISHERY PORT

STIDC & SEA PARTY, TAIWAN AQUACULTUREPROJECT

16,000 hectares

Industries at Tanjung Manis:Organic Chicken and Egg ProductionFeed-Milling & FertilizerFruit and Vegetable FarmHerbal PlantationMarine Fish FarmingEel FarmingBio-tech Aquaculture Prawn FarmingAqua Processing IndustriesR&D Centre

Services hub – administration, ICT, education, training, R&DWith a small port terminal and food processing industries

Tertiary education campus

Government centre

Fish & General Terminal

Food processing industries

Coast guard base

Commercial centre

Residential area

Research science park

Airport

Source: ADL

Mukah Smart City 2030 – Artist Impression

New Industrial Park for new industries – aluminium, polysilicon, steel, oil refineryWith a deep-sea port

Liquid bulk port area

Oil Refinery, other liquids, tank farms and

processing

Aluminum Smelter &

Downstream

Other industries & commercial

Steel industries

Silica based industries

Marine Engineering

Dry bulk and general cargo port

area

Source: ADL

Similajau Industrial Park 2030 — Artist Impression

Samalaju New Township

20,000 people by 2020

Private sector development

Port

Shipbuilding

Solar Glass

AluminiumSmelter

Polysilicon

Samalaju Industrial Park

6,000 hectares

15 km x 5 km

200 hectares cleared

935 hectares next

Bintulu Development Authority

SAMALAJU PORT : OVERALL AERIAL VIEW

Invest in Sarawak!

www.sarawakscore.com.my

SCORE

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