RM6.8b Sabah trade surplus
Kota Kinabalu: Sabah recorded a positive growth in its economic performance during the first eight months of this year which resulted in a trade surplus of RM6.8 billion, said Chief Minister Datuk Seri Musa Aman.
He said the favourable growth was achieved despite a slowdown in the global economy which affected many countries, including Malaysia.
“Trade figures from January to August this year showed a drop in both exports and imports compared to the same period last year. However, the economic situation resulted in a trade surplus of RM6.8 billion which is a constructive growth for the State,” he said.
Musa said this at the annual luncheon of the Malaysia International Chambers of Commerce and Industry (MICCI) Sabah branch, here, Tuesday. Deputy Chief Minister Datuk Seri Raymond Tan delivered Musa’s speech at the event. Also present were Mayor Datuk Abidin Madingkir, National MICCI President Datuk Wira Jalilah Baba, its MICCI Sabah Branch Chairman Datuk C.K. Tan, its immediate past chairman Brig-Gen (rtd) Datuk Arulpragasam, MICCI Sabah Branch Vice-Chairman Datuk Wong Khen Thau and other officials.
“For much of 2015, external conditions have worsened for many emerging economies particularly those dependent on the export of natural resources.
“Moderation in growth of the world economy and China’s economy in particular has seen a drop in prices of most commodities and many emerging economies are experiencing major downward readjustments of their currencies. Malaysia, being a major resources exporter, is not spared this fate,” Musa said.
For instance, he said on the investment front, a total of eight manufacturing projects valued at over RM338.2 million were approved by the Malaysian Investment Development Authority (MIDA) between January and June this year.
However, last year, he said Sabah had 23 projects valued at RM2.91 billion for investment.
On tourism aspects, Musa said the State government is confident that China being the largest market for Sabah’s tourist arrivals will pick up again given a more favourable renminbi-ringgit exchange rate and the Federal government’s recent move to waive the visa requirement for Chinese tourists.
Despite several unforeseen events, he said tourist arrivals in Sabah between January and July this year only dropped by 2.6 per cent to 1.84 million visitors, of which 580,000 were foreign tourists.
“Arrival of China tourists in Sabah showed a significant decline of over 30 per cent in the first seven months this year compared to the same period last year.
“For a variety of reasons, the latest being the earthquake in June, recovery of the Chinese market has been slower than originally forecast.
“Nonetheless, we are optimistic that the Chinese market will get a boost following a favourable exchange rate of the renmibi and ringgit as well as the move to waive the visa requirement for Chinese tourists to visit Malaysia which will help improve the State’s tourism industry,” he said.
On the subject of prices, Musa said inflation in the country as a whole rose 3.1 per cent year-on-year in August this year with the Consumer Price Index showing an increase from 110.5 to 113.9.
On the other hand, he said prices in Sabah only increased slightly at 1.8 per cent which is lower than the national index.
“Notwithstanding, we can expect price pressures to build up in the short to medium term as a result of the implementation of the Goods and Services Tax (GST) and a weaker ringgit.
“Due to these, we can also expect a drop in consumer spending in the short to medium term as prices make their adjustments,” he said.
Musa said city and corridor projects under Sabah Development Corridor (SDC) are progressing well this year whereby as of June this year, the State had secured RM149 billion in cumulative investment commitment, of which RM53 billion had been realised.
Under the 11th Malaysia Plan (11MP), he said the government’s spending will be directed towards improving key support infrastructure, including logistics and connectivity.
To enhance global economic competitiveness, he said focus will also be given to the improvement of broadband Internet services and human capital development.
On utilising biogas and biomass for energy purposes, Musa said the State government is not discounting the possibility that legislation may play a role in speeding things up.
Hence, he assured that the State government will look into this matter with industry players on how best to go forward with such utilisation of biogas and biomass for energy purposes.
“The State government has always been business-friendly as we believe trade and industries, with the right support from the government can play a major role in bringing prosperity to the State.
“As such, I am appreciative of the role that the MICCI Sabah Branch plays in bringing together the interests of businesses and industries in the State, and in highlighting to the government concerns and issues that require redress.
“I am glad to hear that MICCI Sabah Branch and the Federation of Sabah Industries (FSI) have started the groundwork to organise the 9th Sabah International Expo 2016,” Musa said.
Source: Daily Express
