SABAH AIR - PLOTTING ITS DESTINATION

Sabah Air

From Wikipedia, the free encyclopedia

Penerbangan Sabah Sdn Bhd, trading as SabahAir (Malay: Penerbangan Sabah), is an airline based in Sabah, Malaysia.

The airline was incorporated in 1975 as a private limited company wholly owned by the state government of Sabah, under the purview of the state Ministry of Finance. The board of directors is made up of the state government and private sector. The role of the board is to formulate a set of strategies and policies to achieve a common goal and vision. The Air Operator Certificate issued to SabahAir by the Malaysian Department of Civil Aviation permits it to carry out non-scheduled air services and flying services to any destinations in Malaysia.

Services

Pleasure flights can be arranged for sightseeing above neighbouring islands and beaches in Sabah, such as Gaya, Manukan and Sapi islands to visitors. Business and visiting flights are arranged for both diplomatic and private missions.

Incidents and Accidents

On June 6, 1976 11 lives including the first chief minister of Sabah Tun Fuad Stephens and some state cabinet members were lost in an air crash over Sembulan village in Kota Kinabalu district. The plane which was on its way to Kota Kinabalu airport from Labuan, crashed about 30 minutes after taking off. Until this date, no formal report appears to have been made.

On November 29, 1995 10 Sabahans and 1 Filipino worker were killed in a helicopter crash at the Samarang Seas between 10 and 11a.m. The helicopter was inflight from the old airport (currently Terminal 2 Airport) to the Petronas offshore oil rig. Some of the victims' bodies have not been found till this day. The cause of the helicopter crash was an engine operation failure.

On April 11, 2011,one of their helicopter had crashed after taking off during a bad weather at Sibu Townsquare Phase One,where the helicopter was carrying Deputy Prime Minister entourage as he was about to attend another function in conjunction of Sarawak state election,with the pilot was injured.^[1]However,the pilot succumbed to its injuries and died at Sibu Hospital, later that day

As of January 2011 the SabahAir fleet includes  :

Aircraft	Number in Service	Number on Order	Number of Seats
GAF N22B Nomad	1	-	10
Bell 206B Jet Ranger helicopter	6	-	4
Bell 206L3/L4 Long Ranger III/IV helicopter	2	-	6
Beechcraft King Air 200	1	-	9
Agusta 109 Grand	1	-	6
AS 355NP	1	-	5

]

DEVELOPMENT FOR REGIONAL AIRLINES

MASwings can benefit from ‘link-ups’ with private sector

by by Justin Yap justinyap@theborneopost.com. Posted on December 14, 2011, Wednesday

KUCHING: MASwings Sdn Bhd (MASwings) should explore ‘link-up’ opportunities with the private sector in the Brunei-Indonesia-Malaysia-the Philippines East Asean Growth Area (BIMP-EAGA) region.

NEW TERRITORY: MASwings can create a niche in the hotly contested air routes competition if it takes into account other private sector participation startegies. Photo shows passengers boarding a MASwings aircraft .

Industry sources observed that the recent annoucements that MASWings was gearing itself to venture into the BIMP-EAGA routes as early as February 2012 would be far more successful if the rural service airline paid attention to further ‘tie-ups’ with third parties.

They explained that for long-term sustainability, a common package among the destinations in the regions should be established, and that required the involvement of the private sector in all fields such as travel agencies, hotel associations and so on.

“When common packages are in place, only then can joint promotion and marketing strategies be explored between the region. In order to retain viable routes, study as well as research should be done within the private sector too,” BIMP-EAGA Tourism Council Malaysia chairman Datuk Wee Hong Seng told The Borneo Post.

He further pointed out that tourism is a private sector driven initiative. “The private sector plays a vital role in contributing to the country’s economy and also helps to maintain the sustainability of the airline industry.”

“Within the BIMP-EAGA region, there is a massive population base of more than 60 million, covering an area of 1.56 million square kilometres. Considering the vast tracks of unexplored routes, it augurs well for the region to et cracking?and connect the dots,” he stressed.

Within the region, there existed a memorandum of understanding on ‘Expansion of Air Linkages’ between the governments of BIMP-EAGA, which was signed back in January 2007. It granted the Fifth Freedom Traffic Right (FFTR) airports in the EAGA countries to cater for EAGA carriers.

The FFTR arrangements allowed an air carrier of one EAGA member country to pick up traffic in the territory of the other EAGA member country and carry it to a third EAGA member country as part of the service to/from the home country of the operating carrier.

“Technically the MoU should propel BIMP-EAGA air services into a whole new scenario – an ‘open sky’ era, however that has not yet materialised. With the support given from the region, MASwings should be able to create a niche in the hotly contested air routes competition provided it takes into account other private sector participation startegies,” said Wee.

Currently, MASwings owns 10 ATR 72-500s and four DHC-6 Twin Otters. It was required to acquire at least four jetliners in order to fulfill the requirement of being a regional airline. Speculations were rife that MASwings may be acquiring the 737-800s aircraft from one of its sister companies Firefly under MAS.

Moving forward, MASwings is set to hold its official ‘BIMP-EAGA Operations’ media briefing in Sabah today, revealing its business expansion to BIMP-EAGA which was scheduled to take effect in February 2012.

While MASwings is endeavouring to capitalise on the open sky policy, other regional players are also looking at the sub-regional landscape with a magnifying glass to further make their presence felt as early players.

AirAsia co-founder and chief executive officer Tan Sri Tony Fernandes recently highlighted to The Borneo Post the company plans to commence a Kuching-Bangkok route, which was currently at the aiting for approval?stage. He was also looking at restarting the Kuching-Jakarta route.

On the international front, low-cost carrier Cebu Pacific Air of the Philippines also expressed its interest to expand its international routes in Malaysia by making Kuching its next stop after Kuala Lumpur and Kota Kinabalu.

Industry sources and analysts concurred that With the growing connectivity demand within the region, the aviation landscape was transforming into a hive of activity and more announcements should be forthcoming in the near future.

ASEAN - Role

Time for Asean to grow some teeth

By Steven CM Wong
Steve@isis.org.my | 

09 December 2011 | 

Unqualified non-interference is hampering the grouping

THE Arab League is nothing at all like Asean. Nor is the African Union for that matter. These three regional organisations exist in different places, different political circumstances and are subject to entirely different internal dynamics and processes.

In one important respect, however, they are the same. They have the goal of establishing regional peace and stability. Like it or not, this means not just ensuring peace and stability among member states but, on occasion, also within them.

Last week, the Arab League commanded world headlines when it announced sanctions on one of its senior members, Syria. The sanctions included suspension of commercial flights, freezing of Syrian government assets, cessation of dealings with the Syrian central bank and a travel ban by senior officials.

No doubt, some members of the Arab League would be feeling  uncomfortable. Raising sanctions against Syria also raises the possibility of sanctions taken against them if similar events were to happen.

Nevertheless, with the world's attention focused on the blood-letting in Syria, a regional response was demanded. And respond the Arab League did.

The African Union (AU), which the ordinary Asean citizen does not think much of, let alone highly,  is even more dominant. Its objectives explicitly promote democracy, good governance and human rights and, in a day-and-night contrast to Asean, it has the legal powers to back this up. More importantly, it uses them.

The AU has deployed peacekeeping forces to member states seven times since 2003. Its roles in South Africa, Ethiopia, Mozambique, Sudan and Somalia, and its influence after last year's Ghanaian elections, have been tangible efforts to realise its goals. It has also suspended members for wilful breaches of membership.

So is Asean, as primarily a talk shop, being surpassed by these regional organisations? Will it lose esteem with its non- or half-hearted dealing with problems?

Asean's conflict-avoidance norms are famously built into its DNA. These were  designed to ensure that bigger and more powerful members do not bully smaller ones into submission.

This is fair, especially if you happen to be one of these smaller member states. But the unqualified policy of non-interference also makes the association voiceless and hapless in the affairs of their members.

Yet the members of the Arab League or the African Union are not any more united or, conversely, less disunited, than Asean. It is nevertheless clear that the latter two have a higher level of ambition and preparedness to adopt strong rule-based actions.

Some argue that Asean, unlike the Arab League and the African Union, prefers to work "behind the scenes". But this assumes that the League and the Union do not also do so.

This is inconceivable. As Asean chair, Indonesian attempts to mediate in the Thai-Cambodian conflict were certainly commendable but ultimately inconclusive.

At the moment, few would be convinced, notwithstanding the the Asean Charter and the ambitious Asean Political Security Community Blueprint, that members could or would take action. The goals are there but not the means to enforce them.

In the aforesaid blueprint, a great deal of emphasis is placed on the Treaty of Amity and Cooperation. But there are no provisions to deal with members who, for one reason or another, simply refuse to abide by their legal treaty obligations.

The well-known lack of a strong Asean Secretariat inhibits quick and unequivocal responses. The Asean secretary-general will, of course, attempt to use his  good offices to attempt to mediate but apart from moral suasion will be able to do little without carrots or sticks.

If members reject the secretary-general's efforts, it will be up to leaders to decide. But whether they will be prepared to involve themselves in complex and controversial issues is an open question. Going by long experience, the prospects do not seem even fair.

The widening gap in how Asean operates vis-a-vis other regional institutions is something that should spark  discussions of whether its continued lack of ambition and boldness to grow teeth is warranted.

Asean's norms need to evolve and they are evolving. The pace of this evolution, however, appears to be out of sync with global developments.

BIMP-EAGA - Customs Clearance

Malaysian authorities give green light to new i-CLID system

By Azaraimy HH Thomas Koh (2R), the Head BEBC TIICTD Cluster and President of Brunei Freight Forwarders Association. Thousands of cargoes going through the Brunei and Malaysia borders have to spend considerable time in Customs clearance at several checkpoints. This will be a thing of the past, with a new system called the Intelligent Clearance Identity (i-CLID), a BIMP-EAGA Cross Border Project that will basically connect an electronic tagging system with all the related checkpoints. The i-CLID system, which was initiated by the BIMP-EAGA Business Council (BEBC) in Brunei, was given a thumbs-up and system go-ahead by Malaysian authorities during the BIMP-EAGA project deliberation at the 5th BIMP-EAGA Heads of Customs Meeting, a side event of the BIMP-EAGA 20th Senior Officials Meeting and 16th Ministerial Meeting that took place in Cagayan de Oro City, Mindanao. "The system is undergoing its pilot implementation as we speak, and we hope that this will reduce the cost of doing business as a way forward for National Single Window," said Thomas Koh, the Head of BEBC TIICTD Cluster and President of Brunei Freight Forwarders Association. He added that the i-CLID is aligned with one of the BIMP-EAGA's three strategic thrusts, which is enhancing connectivity within its sub-region. BEBC acts as a voice and catalyst of the private sector to establish BIMP-EAGA as a model for Asean toward competitiveness and economic integration to contribute towards peace and prosperity in the region. The i-CLID project is a private-sector driven project that aimed to facilitate cross-border trade by leveraging on ICT technology as a tool through application of RFID and Web Technology. The signing of the MoU marked an important milestone for the ICT Working Group, especially in nurturing collaborations with the private sector, as its participation is the way forward to a speedy ICT development. The project proposed is to address cross-border issues and ease trade barriers, consisting of study, survey and data collection on cross-border activities, product development as well as the adoption and execution of the pilot project at Brunei's and Sarawak's borders, and eventually Indonesian borders. First to be introduced on Borneo Island, i-CLID uses the Single Window architecture for ease of integration with relevant authorities and agencies, to ease communication between the end users and the relevant agencies and/or authorities. Mr Koh said that BIMP-EAGA's goals and strategies on transport and logistics would help stimulate economic development, narrow the development gap, improve intra and extra-EAGA connectivity as well as improve the quality of transport and logistics systems. In the end, this will result in significant cost reductions and efficiency in doing business

Bimp-Eaga: Mindanao-Palawan Development

(Empowering the Filipino People)

By Former Philippine President Fidel V. Ramos
March 26, 2011, 10:06pm

MANILA, Philippines – Last 11 March, as TV reports flashed world-wide on the devastation from an 8.9 magnitude earthquake causing 10-meter-high tsunamis that shattered Sendai, Fukushima, and other northeast Japan prefectures, FVR was in Kota Kinabalu to foster sustainable tourism and environmental conservation in the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).

Seeing the massive destruction of lives, property, and the environment, FVR discarded his keynote speech for the EAGA 2011 Expo, and declared to a large audience: “Let us promote BIMP-EAGA as a quake-free investment area.”

This turned out to be a strong message to market BIMP-EAGA! While in Sabah, FVR cancelled his visit to Tokyo, scheduled 14-18 March, to address the graduating class at J.F. Oberlin University and conveyed his deep sympathy to his Japanese hosts for the grievous tragedy.

Ingredients for modernization

Today, we focus on Mindanao-Palawan access and marketing development and their connectivities from other components of BIMP-EAGA. Coincidentally, we recall that last 24 March was the 17th anniversary of the formal launching of BIMP-EAGA in Davao in 1994.

So, what still should the Philippine government – both national and LGUs – plus the private sector – do to facilitate long-delayed progress in the Southern Philippines?

In his remarks at the opening of BIMP-EAGA 2011 Expo in Kota Kinabalu and, similarly, at the Tourism Development Centre launch at the University of Malaysia-Sabah, FVR emphasized:

“This is a good time to revitalize our East ASEAN Growth Area – since the Asia-Pacific region is returning to growth after a second, even more severe global recession in 2008 caused by immoderate greed in America’s financial system.

“BIMP-EAGA has the ingredients for sustainable modernization, being rich in human power and natural resources, and is linked by that great avenue of global commerce – the South China Sea. EAGA counts on political leadership strong and intelligent enough to guarantee the stability that capital, labor and knowledge need to create social wealth.

“EAGA has an area of 1.6 million square kilometers or 5 times that of the Philippines, and a combined population of 70 million vigorous people (the largest component coming from Mindanao/Palawan).”

Need for a free trade zone in BIMP-EAGA

Some 100 delegates from the Philippines (mostly from ARMM, Palawan, and Northern Mindanao) – including Palawan Governor Abraham Mitra; General Jose Magno, chairman of the Citra-Metro Manila Tollways Corporation; Maan Hontiveros, CEO, AirAsia-Philippines; Cagayan de Oro Congressman Peter Unabia; and ARMM Executive Secretary Naguib Sinarimbo – participated.

Together with other Philippine delegates, FVR dialogued with senior leaders, notably Sabah Deputy Chief Minister Joseph Pairin Kitingan, Industrial Development Minister Raymond Tan, and Sabah Tourism Board Chairman Zainal Adlin. Sabah Chief Minister Musa Aman, official host of the Expo and Tourism events, was then in India on mission.

In Sabah in September, 2004, FVR proposed (and now reiterates): That ASEAN leaders consider making EAGA a free-trade zone within the larger ASEAN free-trade area. This will attract global investors to avail of various incentives.

There were some 30,000 visitors at the Expo, which featured 100 exhibition displays (14 from the Philippines), showcasing the sub-region’s best in Malay nativecraft; industrial, marine and agri-aqua products such as processed food; and tourism packages.

Maritime heartland in the South China Sea

Throughout history’s ebb and flow, East ASEAN’s sealanes have been conduits not only of trade and technology but also of great religions and civilizations.

Only during the “Age of Colonization” – at its height in the 19th century – did Southeast Asia’s economic centers of gravity shift to the emergent capitals of the region’s new states: Jakarta, Kuala Lumpur, Manila, and Bandar Seri Begawan.

Under this colonial pattern of development, our country’s southern islands receded into obscurity and neglect – though Mindanao possesses tremendous agricultural potentials and Palawan contains vast hydrocarbon resources.

The US and China, now the “Big Two,” are the rival poles of the global power balance. Only China – a continental country that is a civilization in itself – has the long-term potential to challenge America’s preeminence.

Their erstwhile rapport (generated by 9-11 jihadist terrorism) has been replaced by “strategic mistrust,” although not yet outright “strategic antagonism,” according to US analysts.

The Pentagon has been shifting its overseas deployments from Western Europe to the Pacific, and from Northeast Asia southward – toward Guam, the Philippines (with its Visiting Forces Agreement), and Singapore (where US warships have anchorage spaces).

China makes no secret of building a “blue-water” navy – to protect its coastal logistics hubs and seaborne trade, which generate 60-70% of GDP. Already, China’s Navy is beginning to contest US dominance of the South China Sea, which is ASEAN’s “maritime heartland.”

The warming up between Washington and Beijing following President Hu Jintao’s state visit last February is an important happening for the EAGA community which would be among the victims – should armed conflict erupt between these two titans.

Revitalizing EAGA

The BIMP-EAGA 2011 Expo and Tourism Development Center are praiseworthy efforts of Sabah authorities. No less than Brunei Minister of Foreign Affairs and Trade Jock Lim, BIMP-EAGA Business Council Chairman Andru Subowo (of Indonesia), and delegates of Australia’s adjacent states were on hand to push partnership programs.

Now, because the time is right, EAGA and its constituent local governments should complete badly needed infrastructures.

Our EAGA sub-region claims some success in integrating RORO land-sea transport services, following the Philippine system that has cut down travel costs for goods and people in our 7,107 islands.

Our four BIMP countries have improved many small air-seaports for inter-island access and are planning electric-power grids and communications systems to link component regions.

The Philippines is stimulating local industry through a “One Town, One Product” (OTOP) rural strategy, although still lacking in post-harvest, food-preservation, and other facilities.

BIMP-EAGA’s future

Clearly, governments can only do so much. At bottom, individual enterprise must supply the motive power for sustainable development.

Private sector linkages must connect separate islands into the synergetic whole that our political leaders of the mid-1990s envisioned for East ASEAN.

What future can we foresee for EAGA? We frankly say: Our sub-region’s future is what its leaders will make of it – for better or for worse.

To restore EAGA to its former glory of eight centuries ago, the first thing to do is to again make it the virtually borderless trading and cultural community that it was before the “Age of Colonization.”

This was the rationale for our previous proposal to make EAGA a Special Free Trade Zone.

Developments on BIMP-EAGA initiatives

As of February, 2011, the BIMP-EAGA Facilitation Center (the official Secretariat), reported these initiatives since 2008:

(1) Enhancing intra-EAGA linkages: Indonesia, Malaysia, and the Philippines provided incentives to airlines; designated more entry points; and adopted common shipping policies.

(2) Optimizing ICT: in tariff rationalization, financial services, and planned submarine cables.

(3) Intensifying tourism development: Thru unified marketing programs, community-based ecotourism projects, and EAGA’s “Wonders of the Natural World.”

(4) Marketing “value-added” products: With a “Fisheries Consortium” and Foodbasket Concept (including “Halal” items).

(5) Strengthening SMEs.

(6) Harmonizing Customs, Immigration, Quarantine, and Security rules.

(7) Fortifying LGU participation.

(8) Reinforcing trade, investment, and tourism collaboration with strategic partners (China, US, Japan, EU, Australia, South Korea, Canada, Russia, etc.).

BIMP-EAGA’s potentials barely fulfilled

Concurrently, our four governments must build the physical and intellectual infrastructure that will raise local economies to the level of our main islands.

The truth is that we have barely scratched the surface of EAGA’s potentials.

The challenge for the Philippines is to optimize our assets for the benefit of those who live and work in our southern islands. As elsewhere in East Asia, the success of BIMP-EAGA will depend on how closely governments and the private sector work together.

Cooperation for mutual benefit is the kind of synergy we encourage. This is why Filipinos should welcome opportunities to exploit EAGA’s potentials and support BIMP joint ventures. After all, more than being close neighbors, we are all members of the Southeast Asian family.

Since the ingredients for a dynamic, competitive economy exist abundantly in EAGA, there is no reason why cooperative endeavors should not expand and provide long-term benefits for the peoples of our sub-region.

Recommendations to Malacañang, LGUs, and private sector

We urgently recommend to our national and local authorities -- in partnership with the private sector -- the following:

(1) Urge our Mindanao Authority (MINDA), created by R.A. 9996 in February, 2010 (which, unfortunately, was not represented in Expo 2011 by any ranking official due to “lack of budgeted funds”) to engage more positively with EAGA counterparts, particularly in program implementation.

(2) Focus on current and longer-term initiatives outlined above.

(3) Support Mindanao-Palawan tourism development in terms of access and marketing, particularly Palawan’s “Underground River” which is a top contender in the ongoing “Wonders of the Natural World” contest.

Kaya ba natin ito (CAN WE DO THIS)? Kaya natin (YES, WE CAN)!

Please send any comments to fvr@rpdev.org. Copies of articles are available at www.rpdev.org.

INVESTMENT

KOTA KINABALU: The Sabah Development Corridor (SDC) attracted RM30.06 billion in investments from the private sector and government-linked companies under Phase 1 of its implementation from 2008 to 2010.
More than RM11.9 billion in projects had already been carried out, surpassing its target of RM11.3 billion.

Sabah Economic Development and Investment Authority (Sedia) said in a report that it was now in the midst of negotiations with potential investors from Brunei, Middle Eastern countries, the United States, the United Kingdom, Australia, China, India, South Korea and Japan.


A key measure of success for the first phase was the implementation of all flagship SDC projects, such as the Palm Oil Industrial Cluster (POIC) Lahad Datu, POIC Sandakan, Sandakan Education Hub and the Keningau Integrated Livestock Centre.

Other projects that have commenced are the Sabah Agro-Industrial Precinct and a number of agropolitan and infrastructure projects.

All the SDC Phase One projects, worth RM1.27 billion, had been tendered out and awarded to Sabah-based contractors by Sept 30.


In terms of job opportunities and employment creation, about 32,900 new jobs were made available in 2008 and 40,000 in 2009.

Launched in January 2008, the SDC is to be implemented in three phases.

The second phase commences this year and lasts until 2015.


The final phase is from 2016 to 2025.

Under the SDC blueprint, the focus phase is to lay the foundation for growth.

It will set off and intensify economic initiatives, plugging gaps in the infrastructure, and implement social and environmental initiatives, especially poverty eradication programmes.

Phase Two would be aimed at accelerating economic growth by attracting greater private investment and would provide specialised infrastructure with first-class human capital.

Sedia anticipates tourism to surpass the 10 per cent share of gross domestic product.

It also sees the creation of a critical mass of small and medium enterprises, serving downstream manufacturing companies.

The plan also includes agro-businesses, featuring high-value agriculture.

"The key measure for the Phase Two is for GDP to double by 2015 or for it to reach RM32 billion from 2006 figures," the Sedia report said.

The final phase of the SDC is all about expansion, aiming for Sabah to emerge as one of the leading economic regions in Malaysia, especially in resource-based industrie



Read more: Sabah Corridor gets RM30b invesments http://www.nst.com.my/nst/articles/11kors/Article#ixzz1GgA7Rx4t

Transport Linkage

New Brunei-Menumbok ferry starts

Published on: Thursday, December 31, 2009


MENUMBOK: The Menumbok Jetty Terminal is now providing a direct ferry service to Brunei, uplifting its status to that of an international-level ferry terminal.

The service is provided under the Brunei Darussalam National Development Plan and Shuttle Hope is the first ferry from Brunei to begin operations.

This means there would now be increased tourists flow, as well as goods between both Sabah and Brunei.

The 44.49 metre ferry costing RM19.2 million has a 200-passenger capacity and also has a VIP room.

The ferry, owned by a Brunei-based Syarikat PKL Jaya Sendirian Berhad and equipped with safety and security equipment including closed circuit television units (CCTVs).

It can accommodate up to 200 passengers as well as 45 vehicles per trip.

There are some restrictions on the size of the vehicles allowed on board and this includes container lorries, according to its Executive Director Chin Mook Seng.

The ferry departs from Menumbok daily and takes about two-and-a-half hours from Menumbok Ferry Jetty Terminal to reach Serasa Ferry Terminal in Brunei Darussalam, at the speed of 14 knots.

PALM OIL INDUSTRIAL CLUSTER (POIC)

Call for strong biomass policy in oil palm industry

KOTA KINABALU: Malaysia needs a strong biomass policy to encourage investors to be involved in renewal energy by utilising the country’s oil palm industry.

Palm Oil Industrial Cluster Sdn Bhd chief executive officer Dr Pang Teck Wai said the absence of such a policy discouraged many oil palm players to consider renewal energy as part of their business plan.

“There is no doubt that we should be able to generate renewable energy from palm oil mill effluent (POME) and empty fruit bunches (EFBs).

“However, this needs to be policy-driven because there are just not enough incentives for oil palm players to consider renewable energy as part of their business plan.

“Neither is there sufficient deterrent in our laws to compel players to reduce their carbon footprints,” Pang said.

He was responding to newspaper reports quoting Malaysia Palm Oil Board chairman Datuk Sabri Ahmad as saying that Sabah could tap its power-generating potential from oil palm biomass, including methane gas from what is known in the industry as POME, which is about 65% methane.

He said although statistics showed that Sabah produced over 30% of Malaysia’s palm oil, little of the oil palm biomass was being commercially utilised. — Bernama

THAILAND-MALAYSIA ECONOMIC COOPERATION

Up north and beyond into Thailand, much is happening, economically. BIMP-Eaga has been around too long and nothing much of a headway had come out of it.

Saturday, 19 December 2009
Ministry vows to make region a trade hub
Via Bangkok Post: The Commerce Ministry has vowed to turn the violence-plagued provinces in the deep South into a commercial and investment hub in collaboration with neighbouring Malaysia.

Thailand and Malaysia would jointly develop five economic areas in five southern provinces of Thailand and five neighbouring cities in the northern region of Malaysia, said Deputy Commerce Minister Alongkorn Ponlaboot.

He visited Pattani, Yala and Narathiwat yesterday to listen to what the local business sectors in the region as well as their Malaysian counterparts had to say about the joint economic development policies of both countries.

The five economic areas to be developed are trade, tourism, investment, logistics and the halal business, said Mr Alongkorn.

Business operators in Narathiwat told Mr Alongkorn to encourage the government to extend them soft loans and push to set up a large new trade centre.

Pot Phaibunkasemsuk, president of the Southern Border Provinces Chamber of Commerce, said the local business operators wanted the government to accelerate implementation of those economic relief measures the cabinet has approved for operators affected by southern violence.

The chamber also wanted the government to subsidise the expansion of NGV stations and financially support heavy truck operators in the restive areas to convert to gas-fuelled vehicles in order to bring down transport costs.

IMPROVED LOGISTICS SERVICES

DHL launches Economy Select Service that offers up to 30% in cost savings
April 22, 2009, 3:49pm

DHL Philippines, the leading express and logistics company, announced the launch of its full suite of intra-Asia DHL Economy Select service to include both inbound and outbound shipments in the Philippines and 17 other locations in Asia Pacific. DHL Economy Select offers the convenience of door-to-door delivery of non-time-sensitive, inbound and outbound consignments within Asia Pacific, at attractive prices, without any compromise in service quality or access to DHL’s in-house customs expertise.

Unlike DHL’s premium guaranteed ‘time-definite, next-day’ service to most locations within Asia Pacific, DHL Economy Select service has a transit period of between two to four business days, depending on location. However, customers will enjoy further cost savings of up to 30 percent, especially for shipments of over 45 kg. With DHL Economy Select, the shipments are handled at the same level of service appropriated to other smaller, time-sensitive parcels, allowing customers to benefit from full end-to-end checkpoint visibility and simplified paperwork due to the provision of a single invoice with no hidden transportation costs upon delivery.

“As the market leading Express player, we’re mindful of the current economic climate and have developed a product tailored to meet our customers’ needs. With the near-term economic outlook, businesses are looking at every aspect of their operating costs. With up to 30 per cent cost savings for shipments over 45kg, DHL Economy Select offers customers the flexibility of sending less urgent items at a reduced cost, but with the assurance of the security and reliability of our premier Express services”, said Dan McHugh, CEO, DHL Express Asia Pacific.

“DHL Economy Select is an ideal economic and cost-effective delivery service for less urgent business-to-business shipments, while still offering the hassle-free convenience of a door-to-door service that DHL is known for,” said Ahmad Mohamad, DHL Country Manager for the Philippines. “We have always been committed to offering a wider range of services to our customers to give the flexibility to choose which type of service is perfect for their changing needs.”

“Since our launch in October last year, DHL Economy Select has been widely received among customers in the Philippines. Driven by the strong demand for the service, it’s timely for us to extend DHL Economy Select to inbound shipments as well, as we continue to offer greater cost efficiencies for our customers,” Ahmad Mohamad added.

DHL Economy Select is now available as a fully inbound and outbound intra-Asia service offering in Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Nepal, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam. This service will be extended between Asia Pacific/ Europe and Asia Pacific/ US by Q4 2009.

DHL is the global market leader of the international express and logistics industry, specializing in providing innovative and customized solutions from a single source.

DHL offers expertise in express, air and ocean freight, overland transport, contract logistic solutions as well as international mail services, combined with worldwide coverage and an in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide. More than 300,000 employees are dedicated to providing fast and reliable services that exceed customers' expectations.

DHL is a Deutsche Post World Net brand. The group generated revenues of P60 billion in 2006.

BlogNote: This is what service is all about. Its about going beyond what is already being provided. This augurs well for the economy in facing up with the sort of weakening economy that we are in now.

Malaysia's Economic Outlook

The following are excerpts from the article written by Khoo Kay Peng at khookaypeng.blogspot.com. It sure does make a good read.

1. Malaysia's gross domestic product (GDP) growth rate was forecasted to drop to zero percent as the global financial crisis evolved into a deepening sub-regional industrial crisis in Southeast Asia, according to the United Nations' regional arm, the Economic and Social Commission for Asia and the Pacific (Escap).

2. Escap observed that the crisis has moved rapidly from its first stage of a financial crisis emanating from developed countries and causing contagion in Asia and the Pacific, to a second stage of crisis for the real economy in the region based on plummeting exports and curtailed domestic demand.

3. The organisation believed that Southeast Asia could be among the most affected by the crisis, given its integrated industrial production base and linkages to the global supply chain, thus deepening unemployment. It expected an overall economic growth rate of 1.2 percent for Southeast Asia this year, the lowest among the developing Asia Pacific sub-regions.

4. This situation does not augur well for the country. Based on several observations, the unemployment rate is expected to climb to more than 5% by the end of this year. The economy is heavily dependent on FDIs and exports to support growth. Both of them have plummeted this year. A number of companies I have spoken too are taking precautions by averting financial and investment risks. Most of them will not make any new investment this year.

5. This will result in further reduction in jobs creation. The main problem for the country is how to generate enough jobs for the society if the economy is projected at zero growth. It will be difficult for Malaysia to create enough jobs at 3-4 percent growth, worse if it is at zero percent. Another 600,000 are expected to join the job market this year. The government has offered grants to those who are interested to pursue postgraduate degrees. However, this offer is not expected to reduce the number of new entrants significantly.

6. Another worry is policy flip-flops from the government. It has imposed a double levy on foreign workers but was told to review its decision by several BN leaders. The ministry of human resource has postponed the levy hike by another month. It will have to decide on it soon. I have argued that the issue of foreign workers will have to be analysed in a long term perspective. Sending back low skilled and cheap foreign workers will not create immediate jobs for the locals. Most of them are not willing to work in the same environment as the foreign workers.

7. The government needs a firm review on these areas:

* Address immediate economic bottlenecks e.g. technology and production gaps, skills gap, industrial development process, archaic labour, investment and trade rules and regulations etc.;
* Create new industries and new jobs;
* Address important issues on market reforms to strengthen private sector governance, rationalize the role of GLCs;
* Promote transparency in GLCs such as EPF, Khazanah and SOCSO;
* Enhance key performance indicators on public projects and announce the members of the technical monitoring committee on the second stimulus publicly;
* Pursue real process improvements in the public sector to cut and reduce wastage and inefficiency;
* Regain public confidence on the economy; and
* Rebuild the administration confidence

8. The main problem remains the lack of political discipline within the ruling coalition. We want more serious, non-partisan and non-rhetorical discourse and discussion on the economy. So far, the government has provided us with neither direction nor leadership.

9. The work is cut out for Najib but the nation's focus will be drifted again to the by-elections. After 7th April, expect Penanti and Bukit Lanjan to follow up. When can we start to focus on the economy despite the gloom?

Sabah's Consumers Woes-The Cause To The High Cost of Living

Doing away with Sabah cabotage policy 'inevitable'

LIBERALISATION by doing away with the cabotage policy for Sabah is inevitable in the long run if the state wants to be more competitive, according to the Institute of Development Studies Sabah (IDS).

IDS executive director Datuk Dr Yaakub Johari said, at the moment, protectionism for Malaysian-flagged ships was considered a short-term agenda and in principle, not healthy to continue for too long.

"We believe it's part of the global trend. Liberalisation in the long term helps to reduce cost," Yaakub said.

"Definitely, in the long run we have no choice, it's an open economy. Eventually, if we do not open up, our neighbours (countries) will do something against us," he said on the sidelines of the Gabungan Badan Ekonomi Masyarakat Bumiputera Sabah convention.

He was asked to comment on repeated calls by various local bodies here for the cabotage policy for Sabah to be abolished to do away higher shipping costs.

Yaakub, who presented a paper on "Sabah Development Corridor: Development Concept and Strategies" at the convention, said one of the challenges faced by the corridor was the cost of doing business due to high shipping costs.

He said the high cost of doing business in Kota Kinabalu was compounded by the existing cabotage policy, which was a factor impeding economic growth.

The progressive removal of cabotage policy, leading to forging of alliances with other major ports and shipping liners and liberalising shipping licences to increase competition among local operators, will contribute to lower freight costs, according to Yaakub.

The Federation of Sabah Manufacturers recently reiterated the need to abolish the policy, saying that the move could also pave the way for the Kota Kinabalu Sepangar container port to become a hub for the BIMP-EAGA region.

Its president Datuk Wong Khen Thau said if the policy was lifted, some industries would be able to compete better, with direct impact on the exports market and growth of business volume.

Sabah, he said, needed to rely on shipping for transporting goods from the peninsula due to the absence of road links and railways.

Besides the federation, various other parties have been asking the government to do away with the cabotage policy and the government last year announced an independent study to review the mechanism but so far the results have yet to be released.

Source: Business Times

BIMP-Eaga News: Transport & Logistics

Asean SRNH may be more viable than BIMP-Eaga

Expanding the local system of roll-on, roll-off ports to Southeast Asia may be more viable for an archipelagic country like the Philippines than with those of the subregional trade bloc with oil producing nations like Brunei, Indonesia and Malaysia, a logistics expert said.

According to EnricoBasilio, director of CRC Transport and Logistics Institute, expanding the country’s Strong Republic Nautical Highway (SRNH) to Asean countries can benefit the Philippines since the country is strategically located right in the middle of almost every country in the region.

“This is just a concept. We haven’t done the real analysis yet but I think this should be more viable for us,” Basilio said.

The concept of expanding the SRNH to the Asean region was brought up by Paul Apthorp of TNT Worldwide Express and presented during the Asian Development Bank’s (ADB) conference in November last year.

Aphthorp said due to the extensive road network in Mekong subregion and cross-border trade in Thailand, Vietnam, China, Laos the Philippines can also benefit in the transshipment. The operation of TNT in the Philippines is struggling as its strategy was to use road networks rather than air links that the bigger logistics firms like UPS, DHL, and Fedex have been employing for the past years.

“If the international ships pass by our country, we can earn revenues from the “pass-through” activities, benefiting our ports and trucking industry, as well as creating value adding activities,” Basilio said.

Basilio estimates that if the Philippines can only get at least 10 million of the 60 million containers carried by vessels in the region in a year. “We have so many potentials of benefiting from the overseas shipping,” he said.

At the moment, the country is a member of the four-nation BIMP-Eaga (Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area), but trade has hardly picked up after more than 14 years in existence.

Sabah Allocates RM10 Million To Enhance Skills

KOTA KINABALU, Feb 9 (Bernama) -- The Sabah state government has allocated RM10 million to develop human resources at all levels of its ministries, departments and agencies this year, said Chief Minister Datuk Seri Musa Aman.

He said the state government understood the importance of enhancing skills of its public servants to ensure good governance.

"The public sector is a very important institution to ensure administration and governance. Without that institution, a government will lose its ability to administer and implement plans efficiently and effectively. So we allocate this money to enhance skills of state employees," Musa said at a function to commemorate the Sabah state-level Public Services Day at the Tun Raffae Auditorium at Menara Tun Mustapha, here today.

Musa also called on senior state and Federal public servants to ensure that the quality of services and the public delivery system in Sabah was at a high standard.

He urged state employees to elevate the service performance as well as help to ensure the success of the state's development agenda including the Sabah Development Corridor.

The Sabah Information Department was picked as the winner of the Public Information Centre Award for this year's Sabah Public Services Day.

-- BERNAMA

SDC NEWS-Air Travel Facilities

Currently, Terminal 1 of KKIA is used for regular fare airlines, while Terminal 2 is for low-cost carriers. The upgraded Terminal 1 will be able to cater to 10 million passengers annually, and Terminal 2 will be transformed into a full-fledged cargo terminal.
KKIA will also be able to cope with the anticipated increase in cargo volume, which, in 2006, was 19.2 million kg, an increase of 10.5% over 2005 figures, while cargo loaded rose 11.1% to 18.5 million kg in the same period.
Also in the pipeline is the expansion of the Sandakan airport, currently considered a second eastern gateway to Sabah.
A new airport in Lahad Datu is also being considered to accommodate Airbus 320 size aircraft which will support the development of aquaculture and tourism.
According to officials from Malaysia Airports Holdings Bhd, KKIA is expected to attract more flights to and from Sabah, especially from the Far East, such as Hong Kong, China and Korea, and Australia.

SDC — Strengthening Sabah’s infrastructure and logistics: The Role of Sabah Ports

1. The SDC blueprint has identified strategies to make “The Land Below the Wind” a regional trading hub through modern infrastructure and logistics.
2. The logistics element is one of the strategies aimed at addressing the current high cost of doing business in the state. The strategy for cost reduction is three-pronged:
* Lowering freight and logistical costs through a progressive review of the Cabotage Policy for shipping;
* Enhancing the cost competitiveness of ports in Sabah via alliances with other global port operators and shipping liners; and
* Establishing the Sepangar Free Zone (SFZ), which is annexed to SBCP, by providing attractive incentives to potential investors to set up their manufacturing facilities and distributions in SFZ.
3. Subsequently, the new SBCP and part of Kota Kinabalu Industrial Park (KKIP) will be positioned as the main logistics hub and free trade zone to act as the catalyst and support for industrial development.

Of taxi drivers and their antics and how it will affect our tourist industry in Sabah

Not too long ago, I came across an article in a Malaysian Newspaper that says it all regarding the antics that our local drivers should refrain from doing in order not to tarnish the image of our country specially our beloved state of Sabah. The news goes like this:

The Caption: Malaysia's 'worst in the world' taxis tarnish national image

The ads promoting "Malaysia: Truly Asia" aim to welcome visitors with a warm smile to a prosperous and modern nation, so the taxi fleet branded "the worst in the world" can come as a bit of a shock.

Even the locals are not spared the shabby service of unkempt and hostile drivers behind the wheels of decrepit vehicles who refuse to use the meter, overcharge and pick-and-choose which destinations they will travel to.

At the popular KLCC mall under Kuala Lumpur's iconic Petronas Twin Towers is a typical scene, as a gang of cabbies negotiate with a young Norwegian couple just metres from a signboard warning against "taxi touts".

"Flat rate, flat rate, no metre," one driver insists as the tourists try to find a cab to take them to their hotel, less than two kilometres (1.2 miles) away.

Anxious to escape the baking heat, they agree to pay 25 ringgit (7.22 dollars) for a trip that would have cost less than three ringgit on the meter.

"Is it expensive? We don't know, we thought it is normal here," said the woman as they piled in with their shopping bags.

More frequent visitors, however, are vocal in their criticism and say that aggressive and unprofessional drivers are tarnishing the nation's image as a squeaky clean and hospitable destination.

"I first visited Malaysia in 2006 and I was impressed by everything I saw except for the worst taxi service I have endured," said Kabir Dali, an Indian tourist waiting in vain for a metered taxi at another mall.

"I paid a whopping 260 ringgit (74 dollars) from the Kuala Lumpur International Airport to town and was later told that was twice the proper amount."

Complaints about taxis are common in many countries, but in Malaysia it has escalated to an outpouring of frustration, on blog sites and in letters to newspapers.

In a survey by the local magazine The Expat, some 200 foreigners from 30 countries rated Malaysia the worst among 23 countries in terms of taxi quality, courtesy, availability and expertise.

The respondents lashed the fleet as "a source of national shame" and "a serious threat to tourists -- rude bullies and extortionists".

Salvation is in sight though, as a number of smaller, up-scale operators enter the market to provide a more expensive but quality taxi service for frustrated visitors and locals.

The uniformed drivers, behind the wheels of smart new multi-purpose vehicles and sedans, switch on the meter as a matter of course and do not refuse destinations -- surprising and delighting commuters in the capital.

Abdul Razak, operations manager for Dubai-based Citicab which launched here in January, said that even in poorer nations such as Thailand and Indonesia, taxis are smarter and the drivers far more courteous.

"I would say it is the worst in this region, undoubtedly. I have travelled to all countries in this region and our company operates taxis in many parts of the world. The situation here is the worst I have seen," he told AFP.

"The vehicles are in shabby condition, the driver will take you if he likes your face -- that is, if he agrees with where you want to go for the price he insists on."

The government has called on taxi firms to lift their standards, but various campaigns have achieved little, and many blame the lack of enforcement on rampant corruption in the police and bureaucracy.

"It is difficult for the roads and traffic department to take stern action," said a security officer at one city mall as he watched the touts swoop.

"Taxi operators and the company which hold the licences are all linked to some politician or another," he said. "Drivers here are ruthless because they are unchecked by authorities who are almost non-existent."

John Koldowski, from the Pacific Asia Travel Association, said that "less than desirable" taxi drivers have an outsize impact on a nation's image.

"The first contact a tourist gets with locals is often during airport transits to hotels and it creates a very, very strong first impression, either be good or bad," he said.

"Authorities certainly need to do their jobs and act upon any complaints strongly, quickly and visibly."

Relating this to our Sabah’s local scenario in the light of our effort of promoting Sabah through the Sabah Development Corridor programme, I shudder to think of what will the effect be to all the effort thrown in by all, including government and private sectors alike. All the hard work will just go down the drain if we do not take steps to avoid the ugly scenes as narrated above.

Surely state government departments, including federal’s must not let matters to rest and assume that this is a normal happening everywhere and saying that let the relevant authorities like the police, the JPJ’s, Customs and the port operators play their part to handle such incidences from happening. How wrong can we be by adopting this lackadaisal approach. We know we need more than enforcements to clear up the problems, but this we must do if we were to really achieve the push in my making our tourism industry very special and unique, different from other places in Malaysia or even the world at large.

It is a hard act to do but things we must do.

I am a form believer that things are not that bad in Sabah, looking at the situation at our airports and ferry ports but definitely there is that few incidences that will just provide the spark that make our tourist react as above.

Come on, if we need to spend, we must. That is the price to pay for our conscious effort to achieving the best for our tourism industry. You guys there with the Tourism Board, Hoteliers, Taxi Owners, Police and the Sea Ports and Airport Authorities, time to pull the socks. The downturn in the economy will make our effort all the more difficult but necessary.

ramli@ramgold.net