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KK, Sabah, Malaysia
Simple guy with passion to life and interest My life is here and there

Sunday, March 18, 2012

Problems with Sabah and the diversification of economy

Sabah is deeply blessed by the abundant natural resources such as oil and gas, forests, mine and land. As the state capital, Kota Kinabalu has the population of more than 700000 in the greater urban area (Inanam, Penampang, Kepayan, Tanjung Aru, Likas) and the main economy of the city is tourism. The land in Kota Kinabalu is relatively flat and thus development is more feasible compared to the rural areas. Resorts nearby city and beaches are built and developed rapidly in recent decades and this makes Kota Kinabalu as one of the fastest growing city in the country.

However, rapid urbanization of Kota Kinabalu leads to high rising living cost and residents are suffering due to the rising living cost and the real estate properties. Kota Kinabalu as an example, has a lot of middle income families. Most of them work as civil servants. The monthly income of average RM3000 is merely affordable for a family of 3. Imagine that you have to pay loan for your house, car, your kid's education (tuition classes in KK is absolutely profitable), insurance, utilities bills, petrol bills etc... It is highly financial burdened for the middle income families. Then, for lower income group, how do they survive? Rob? More part time jobs with lower wages? They are just suffocating in this kind of situation. Hardly to get a decent living. Attitude wise??  To blame who?

However, with proper planning and execution, economy in Sabah is definitely a positive outlook. Geographically, Sabah is located in the east of Malaysia and to the north of Sarawak. The proximity location to China, Korea and Japan, which these countries are the main exporters and the big economy powers in East Asia, can bring fortune to Sabah. Kota Kinabalu as the transportation hub in Sabah can be the leader in the state by providing the good facilities in the harbour for the loading and unloading of goods from these countries. Furthermore, the Sepangar harbour in Kota Kinabalu is one of the deepest harbour in Malaysia and the nearby KK Industrial Park provides the manpower for manufacturing. From the statement mentioned above, Sabah can be transformed into entreport economy which the imported goods can be processed and add values in them and export them.

Apart from that, airport facilities in Sabah are well developed and as the leader of all, KKIA gives one of the best and still the second busiest airport in Malaysia. Close distance from China, Japan, Taiwan, Hong Kong and Korea makes Sabah as the favourite destination to the tourists to visit Sabah.  In terms of tourist attraction, Sabah is among the best and provides world class attraction. From top of Borneo to Tip of Borneo, from the heart of Sabah to Fringe of Sabah, Sabah can give the satisfaction to the tourists and more and more tourists pay the visit to Sabah due to the multi culture and protected rainforests, relatively good facilities provided. Ecotourism is what the state provides currently and possibly in the near future, service tourism will emerge as one of the income contributors to the state. Do you ever think of casino in Sabah? Maybe you should think of it. Of course with rules and regulations bound. This will bring Sabah economy into higher stage.

Vast land in Sabah of course is not only limited to the tourism. The land in Sabah is rich in nutrients and suitable for agriculture activities. Coco, palm oil, rubber and others commodities plantation are getting more and more popular in the state and have become the main income in Sabah since many years ago. Moreover, in highland area of Ranau and Kundasang, the farmers produce crops and vegetation and these products are sold to the market in Kota Kinabalu and Brunei(perhaps). There is also a dairy farm on the highland of Kundasang. The dairy cows are reared on highland and the farm also allows the visit from the tourists. Indeed, the farm provides two types of incomes - agriculture and tourism. Another agriculture activity which is noticeable in Ranau is the tea plantation. Sabah tea has special aroma and this adds value to the Sabah economy.

Natural resources will deplete from year to year. Therefore, there is no necessary to point out the biggest advantage of Sabah. The depletion is inevitable and hence solution for the depletion must be figured out! Diversification of Sabah economy is a must and this will ensure Sabah to progress well socially and economically. In addition, good government with the good policies planned and executed must also be the main factor that drives the economy.

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