As to giving credit to whom credit is due, rest assured the best way to do good to one’s-self is to do justice to others. There is plenty for everybody in science, and more than can be consumed in our time. One may get a fair name by suppressing references, but the Jewish maxim is true, ‘He who seeks a name loses fame.
– Edward Forbes, British naturalist
Going by the latest data from the World Bank, Sarawak is now one of the states in Malaysia with high-income status.
This is based on the gross national income (GNI) per capita of more than US$13,205 (RM61,442).
It is understood that the World Bank’s income classifications aim to reflect a country’s level of development, drawing on Atlas GNI per capita as a broadly available indicator of economic capacity.
However, there is some scepticism over the figure with some people scratching their heads over the figure.
GNI, by definition is, the total income earned by a country’s people and businesses, even if it was earned outside the country. It’s a measure of national wealth that can be used as an alternative to gross domestic product (GDP).
The World Bank uses the Atlas methodology to calculate GNI. Atlas is a conversion factor to reduce the impact of exchange rate fluctuations in the cross-country comparison of national incomes.
A check with the World Bank website showed the mathematical formula to the methodology which would be difficult to understand unless one is a serious mathematician. I am not, so I would rely on the figures provided.
But regardless, Sarawak now joins Penang, Labuan and Kuala Lumpur as states or territories that have surpassed the high-income threshold.
Perhaps we are doing well, or just perhaps, due to the nature of the calculation, the low population is to our advantage in arriving at the GNI per capita.
Anyway, it speaks volumes to the progress made by the Sarawak government under the leadership of the Premier in stimulating economic growth.
Ever since assuming the position as head of the state government, Datuk Patinggi Tan Sri Abang Johari Tun Openg has initiated numerous policies to boost Sarawak’s financial standings.
The objective was to somehow generate the funds needed to develop the rural areas which in the past, would require the state government to rely on federal funds.
These fundings, as I was made to understand, is simply not enough to cater for the needs of the population in every nook and corner of Sarawak.
When the Barisan Nasional (BN) federal government collapsed after the 14th general election (GE14), fundings that were fought for years to secure the construction of infrastructure projects were stopped, leading to cancellation of several projects.
This exacerbated the need to somehow find another revenue source for Sarawak which would be returned to the people in the shape of infrastructure development.
Since 2019, Sarawak imposed a five per cent sales tax on oil and petroleum products. This was a game changer and allowed the state to secure significant returns from its natural resources.
At the time, the overwhelming narrative by Sarawakians for the state government was to fight for 20 per cent oil and gas royalty instead of the current five per cent.
It has to be mentioned that this was also promised by Pakatan Harapan (PH) in its election manifesto pledge in GE14.
As it happened, the imposition of SST by the Gabungan Parti Sarawak (GPS) state government exceeded the possible returns from the 20 per cent royalty. GPS succeeded where Pakatan failed.
Since 2019, the Sarawak government has been able to generate more revenue not only from SST but also from other industries.
Last year, Sarawak recorded its highest annual revenue to the tune of RM11.9 billion. This figure would be unimaginable even a few years ago.
Definitely it speaks volumes about the policies and approaches of the government in ensuring economic growth through revenue reengineering.
While Sarawak has been the target of attacks by unscrupulous politicians for its financial management, not forgetting one instance by a former finance minister saying the state would be bankrupt in three years, it has only progressed further.
“Ne ada bankrap, tambah lagik ada (we didn’t go bankrupt, in fact we increased our income),” Abang Johari was quoted as saying, reflecting on that particular episode.
It is onwards and upwards from here. But then again Sarawak is not resting on its laurels; there are still many things that it strives to achieve.
The Post-Covid-19 Development Strategy (PCDS) 2030 marks a long-term strategy towards being a developed and high-income state by the year 2030. It is being implemented and involves a number of key economic areas.
In the end, give credit where it is due. This government knows a thing or two about developing Sarawak and I think this is the way forward. Let the results speak for themselves.
The views expressed here are those of the columnist and do not necessarily represent the views of New Sarawak Tribune.
