ONLY 10% OF COMMITTED INVESTMENT REALISED

By : CHAN FOONG HIN

A GLOSSY picture painted won't help much in understanding the challenges Sabah face in attracting investment. Sabah's achievement in receiving RM10 billion in the first half of this year, the highest amount of private investments compared with other states, is merely seemed good on the surface.

It is misleading to the public that a conducive investment environment been created when huge gap exists between committed investment and realised investment never been disclosed by the related authority.

According to Chief Minister Datuk Seri Musa Aman, “Apart from RM10 billion in this year, as of September 30, the amount of cumulative investments in the private sector, under the Sabah Development Corridor projects, had reached RM114 billion since its launch in 2008”.

But he never disclose that there is difference between 'RM10 billion' and 'RM114 billion'. The former in fact is 'realised investment', and the the later is cumulative 'committed investment'. One committed to invest not necessary realise his commitment.

The 2012/2013 Economic Report which is released by Ministry of Finance during tabling of 2013 budget, has unveiled the fact behind it.

According to the report, the cumulative committed investment from launching date of Sabah Development Corridor (SDC) until end of June this year is RM112.0 billion. However, the actual realised investment amount is RM12.0 billion only in the similar period. Simple mathematics would tell us that only 10.7% of committed investors are realising their investment.

Where is the majority portion of committed investors (90%) going? Will they fulfill their promise to invest here? What are the factors to hinder them from realising their investment here? What are the actions taken by government to address the issue of low percentage of realised investment?

Besides, if the committed investment amount in first half year deducted, there was RM76 billion been drew to SDC since 2007 until 2011 year end. It indicates that only RM2.5 billion or 3.3% out of those committed investments really converted to physical investment in our state for the similar period. Then a quantum leap happens, a RM9.5 billion investment flow in this year. Does it mean that those drew in this year were the committed investment in previous years but materialised only now?

Figures won't lie. It is undeniable that Sabah still left behind while all the other four regional development corridors are closer in their committed and realised investment. There is nothing much to feel happy about SDC achievement.

It failed to achieve it's target of wealth creation in the early years until realised investment surged up in this year. If there is no serious effort to further nurture a business friendly environment in Sabah such as infrastructural development, shipping cost reduction, criminal rate reduction etc, anytime Sabah will loss it's track.