BUILDING AT THE LOCAL LEVEL

OBG talks to Tan Sri Joseph Pairin Kitingan, Minister Infrastructure Development

By : OXFORD BUSINESS GROUP

OBG : What are the immediate priorities in terms of upgrading transport infrastructure?

KITINGAN: Compared to the rest of Malaysia, Sabah is behind in developing its infrastructure. The creation of the Sabah Development Corridor (SDC) was a concerted effort to begin transforming the state’s infrastructure. The SDC blueprint has identified long-term strategies to make Sabah a regional trading hub through modern infrastructure and logistics.

More immediately, we are looking to improve connectivity between rural areas and urban centres. Many rural communities are undersenied and need improved road networks, bridges and communications. lt is easy to concentrate on the eastern and westem corridors as they have administrative centres. However there is a larger population in the interior that needs improved infrastructure to boost economic activity and enhance mobility.

There are many poorer communities in these rural areas, so improving connectivity will have a massive impact on raising their standard of living. Better infrastructure will open up the potential for new enterprise and industry to createjobs and wealth.

One of the most important aspects is improved transportation for schools. lt is only through improving our education system that we will truly be able to develop Sabah. An important part of that is making sure everyone has access to schools and other educational facilities.

OBG : How can increased infrastructural development help to accelerate economic growth?

KITINGAN: Improving infrastructure must be used as a tool to help stimulate real economic growth and reach developed-nation status. We must look at the bigger picture of the state economy and see which areas need infrastructural improvements and where carrying out such projects will have the greatest impact.

Rural communities, for example, are near our agricultural heartlands. With upgraded infrastructure in place, both smallholdings and large commercialised projects will reap immediate benefits, enabling them to lower their costs while increasing efficiency and speed of access to local markets, improved transportation links, through upgrading roads, bridges or railway lines, will have a positive effect on the economies of these isolated communities as well as on the state economy.

Another key sector of Sabah’s economy is tourism. Again, it is crucial that the infrastructure is able to accommodate the needs of our visitors. Sabah has many rare and beautiful natural attractions, from Mount Kinabalu to virgin rainforests and incredible dive sites.

However, the main entry point for visitors is Kota Kinabalu International Airport (KKIA). We need to ensure tourist attractions are well connected to KKIA. Improving connections with the interior to give tourists better access to underdeveloped areas will boost the smaller local economies. Tourists present an attractive market for their products, from fruit and vegetables to handicrafts and even home-stays.

Tourists will have a better experience while we will pump money into the rural areas, bringing the market to them. We are upgrading and extending both terminals at KKIA as well as the runway itselt. There is also potential for a new airport in the interior to aid development.

Again this would improve commerce and mobility and bring in even more tourists, The long-term impact of an airport would help develop a metropolitan centre. We will also seek to develop the railway, There is already a steam train service designed for the tourist market. However, with greater investment. more daily services can be added for tourists and locals.

OBG : Could Sabah become a regional shipping centre?

KITINGAN: The ports are hugely important to Sabah, given the need for importing and exporting, but there is no denying the port facilities are some way off those such as Port Klang. Quite simply, we must improve our ports to attract more shipping. We must enhance our ports to increase turn around speed. By lowering transport costs, the price of goods can be reduced as well.