BELUM DISUNTING 30 NOVEMBER 2016

(Mesyuarat dimulakan pada jam 9:16 pagi)

[Tuan Speaker mempengerusikan Mesyuarat]

DOA

PERATURAN MESYUARAT 7(4)

Tuan Speaker: Ahli-Ahli Yang Berhormat, I have been informed by the Secretary of this Dewan that, despite my ruling yesterday morning, the Honourable Member for Pujut persists in wanting to bring up something important this morning. I give you a chance.

Y.B. Dr Ting Tiong Choon: Thank you, Tuan Speaker.

Tuan Speaker: Under what Standing Order?

Y.B. Dr Ting Tiong Choon: Standing Order 7(4).

Tuan Speaker: You are bringing this up under what Standing Order?

Y.B. Dr Ting Tiong Choon: 7(4).

Tuan Speaker: 7(4)? Yes, proceed. You can’t?

Y.B. Dr Ting Tiong Choon: "If a member disputes the correctness of the records of any speech or seeks to make any material change in the record, the Speaker shall rule thereon and shall direct publication of the speech in accordance with his ruling which shall be communicated to the member concerned and shall be final."

Tuan Speaker: Which part of the Hansard do you challenge or dispute its correctness?

Y.B. Dr Ting Tiong Choon: The record in the Hansard on 24th November 2016 in relation to question 166 from Member for Batu Kitang, was incorrect, was inaccurate and therefore need to be corrected.

Tuan Speaker: That is the communication Member for Batu Kitang and this Chair. In what way is your privilege adversely affected, aggrieved, jeopardised or deprived?

Y.B. Dr Ting Tiong Choon: Tuan Speaker, the record in the Hansard should be recording what is happening in this Dewan.

Tuan Speaker: Okay, I make my ruling. You can sit down. I make my ruling.

Standing Order 7(2) "The Official report shall be published in such form as the Speaker may direct, and a copy thereof shall be sent to each member as soon as practicable after the conclusion of each meeting."

Standing Order 7(4) "If a member disputes the correctness of the record of any speech or seeks to make any material change in the record, the Speaker shall rule thereon and shall direct publication of the speech in accordance with his ruling which shall be communicated to the member concerned and shall be final."

Under this Standing Order, I hereby rule that this is the record, this is the publication to be published, there is no correction, there is no amendment.

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Based on Erskine May, Twenty-fourth edition, page 130, “The Official Report is a full report, in the first person, of all speakers alike, a full report being defined as one ‘which, though not strictly verbatim, is substantially the verbatim report, with repetitions and redundancies omitted and with obvious mistakes corrected, but which on the other hand leaves out nothing that adds to the meaning of the speech or illustrates the argument."

Therefore, as long as the omission does not substantially, fundamentally, materially change the content, that omission can be dispensed with. A question was not fundamentally, materially changed, the content is not fundamentally, substantially, materially changed, neither was the reply of the Assistant Minister. Nothing fundamentally, substantially, materially changed. Therefore, this is the version.

RANG UNDANG-UNDANG KERAJAAN - BACAAN KALI YANG KEDUA

RANG UNDANG-UNDANG PERBEKALAN (2017), 2016 DAN USUL UNTUK MERUJUK RESOLUSI ANGGARAN PEMBANGUNAN BAGI PERBELANJAAN 2017

[Penggulungan Oleh Para Menteri]

Tuan Speaker: Dengan hormatnya saya menjemput Yang Berhormat Datuk Amar Douglas Uggah Embas, Timbalan Ketua Menteri, Menteri Pemodenan Pertanian Dan Ekonomi Luar Bandar, untuk menyampaikan ucapan penggulungan.

Timbalan Ketua Menteri, Menteri Pemodenan Pertanian dan Ekonomi Luar Bandar (Y.B Datuk Amar Douglas Uggah Embas): Terima kasih,Tuan Speaker. Tuan Speaker, let me join my colleagues, Cabinet colleagues, the Members of this esteemed august House, to congratulate the Right Honourable Chief Minister for presenting a development-biased and rural-focused budget for fiscal year 2017. This is reflected in the development expenditure for 2017 whereby 73 % of total budget for development and at the same time more than 50 % of the development budget will be directed at the rural areas. Indeed, the 2017 budget is testimony to the strong commitment of the State Government towards transformation of the State economy and intensification of rural development.

Cabinet Committee on Socio-Economic Transformation

Tuan Speaker, I would like to thank Yang Amat Berhormat Chief Minister for appointing me as the Chairman of the Cabinet Committee on Socio-Economic Transformation. The Right Honourable Chief Minister has made it very clear of the State’s vision to achieve high income economy and developed State status by 2030. This requires us to accelerate our economic growth at 6.5 % per annum. With the current global economic uncertainty, the Chief Minister in his Budget Speech has announced several key initial interventions based on the recommendations by the respective Cabinet Committees.

The recommendations by the Cabinet Committee on Socio-Economic Transformation take cognizance of our current development issues of the main sectors of our economy namely mining, manufacturing, agriculture and services. These sectors are the drivers of our economy. They need to be strengthened. Therefore, issues affecting the growth of these sectors are being addressed.

In the manufacturing sector, there are still insufficient downstream activities in our resources and non-resources based industries. While in the agriculture sector, there are still gaps in the overall agriculture supply chain. Private investment in this sector is obviously

2 BELUM DISUNTING 30 NOVEMBER 2016 lacking. For tourism sector, branding, accessibility and facilities are still our concern despite having attractive tourism products.

Tuan Speaker, in terms of entrepreneur development, our business community is still small and not able to tap the huge potential for entrepreneurship. In respect to urban development, our major urban centres lack economic vibrancy despite rapid urbanization process taking place in the State. For environmental development, issues pertaining to water catchment areas, waste disposal and forest resources need to be addressed and manage sustainably.

Tuan Speaker, in our pursuit to achieve a high income status, the Government wants to ensure that our rakyat from all walks of life enjoy the benefits brought by our socio- economic transformation. Reducing the income gap between urban and rural population as well as the income disparity between the Middle 40 and Bottom 40 are among our main priorities. Based on the Household Income Survey in 2014, our rural household earns 44.2% less than the average urban household, whilst the Bottom 40 only earned 16.6% of the income as compared to 38.0% of the Middle 40.

Tuan Speaker, taking into consideration all these issues and the need to achieve our targeted growth of 6.5% per annum, we need to transform all key economic sectors. Through the State Transformation Agenda, specific Government intervention initiatives as recommended by the Cabinet Committee will be undertaken by all the various relevant agencies.

The Cabinet Committee on Socio-Economic Transformation, which comprises of the relevant State Ministers, Assistant Ministers and Head of Departments have discussed and deliberated thoroughly the issues faced by the State in all sectors of the economy. The Committee had come up with intervention, recommendation action plans including the policies, strategies, programmes and projects to speed-up our economic growth. This will ultimately increase the income and reduce income disparity of the rakyat.

Tuan Speaker, The Right Honourable Chief Minister in his Budget Speech has outlined six (6) Key Result Areas for the State to achieve the desired socio-economic transformation. Now, let me explain briefly on the six (6) Key Result Areas for socio- economic transformation.

Key Result Area 1: Increase Investment in the Industrial Sector

The State Government is targeting to increase the investment in the industrial sector as industrialisation is the way forward to propel the growth and the development of the State’s economy to achieve a developed and high income status by 2030.

Efforts will also be made to increase our participation in oil and gas industry. In doing so, the State is taking steps to ensure that we have sufficient supply of oil and gas. Continuous negotiation with PETRONAS is pertinent to ensure sufficient supply of oil and gas for the development of more industries in the State. With the technological advancement, we envisaged that the petrochemical industry is expected to create more high paying jobs for Sarawakians and generate greater spin off to our local SMEs.

Besides participation in downstream activities, we will also pursue to participate meaningfully in the upstream activities of the oil and gas industry. Various options will be explored to enable the State to undertake such exercise together with PETRONAS or other established oil and gas companies.

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The presence of trigger industries such as aluminium, ferroalloys and polycrystalline silicon in Samalaju Industrial Park have well-positioned the State to develop industrial clusters for these industries. To optimise the spin-off impacts of these industries, SME Clusters and supporting industries will be developed in Samalaju Industrial Park. Incentives will also be provided for these non-resource based industries to go further downstream.

We are also formulating policies to encourage planting of high yielding trees species and at the same time to gradually reduce export of log to promote greater domestic consumption for timber based downstream activities. Incentives will also be provided to promote more reforestation, timber downstream and biomass industries.

KRA 2: Modernising and Commercialising the Agriculture Sector

Modernising and commercialising the agriculture sector is one of the best options to develop rural areas and to increase income of our rural population of which majority are involved in the agriculture activities. The intervention actions will transform our agriculture sector into an industry that will not only raise the income of the farmers but contribute significantly to the economic growth of the State.

The expansion of agricultural industry supply chain will be emphasised in totality ranging from upstream activities such as planting and breeding to downstream activities including processing, logistics and marketing. Areas that have been identified as food basket or food production zone will be equipped with collection centres, basic infrastructure such as farm roads, water and electricity supplies. Private sector will be encouraged to participate in our food basket or food production zone together with our local farmers.

For the commercialisation of agriculture, efforts will be made to go into mass production for both industrial and food crops as well as livestock that will be able to cater for both domestic and export markets. Agro processing industries will be developed to encourage downstream activities.

KRA 3: Creating New Growth in the Services Sector

The State Government will intensify the growth in the services sector by leveraging on tourism as the key driver. The tourism sector will be further developed through the development of new and diversified tourism products, attractions, events via strategic and well defined promotion and marketing plans.

KRA 4: Urban Development and Urban Renewal

Rapid urbanisation creates competitive advantages as well as social and environmental issues to the urban areas. In this regards, we would like to expand the urban economy to create more employment and business opportunities, while at the same time to develop an orderly urban environment that will enhance the quality of life in urban areas.

To support the growth of urban economy, more hawkers markets and entertainment centres will be developed in the major towns especially Kuching, Sibu, Miri and Bintulu. Private sector’s participation in urban economy will be intensified especially in transforming the economic activities along the waterfronts. The Kuching Waterfront is a case in point.

In addition, special incentives will be offered to the private sector to encourage them to transform rundown areas or dilapidated buildings in the cities or towns into a bustling commercial and entertainment centres. Specific attention will be given on hawking activities, as part of our efforts to develop the informal sector through proper regulation and facilities provided by the local authorities.

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Policy-driven strategies are among the important steps to be taken by the State Government to encourage the development of affordable housing and public transportation system in the urban areas. Densification policy will be implemented to increase critical mass whereby land use in major urban centres will be optimised by promoting high density housing with retail clusters. Liveability of urban areas can be enhanced through stricter enforcement of development approval conditions by the State Planning Authority (SPA) on the provision of open spaces and green lungs.

KRA 5: Increase Participation in Entrepreneurship

Entrepreneurship is significant to the economy as it creates wealth and opportunities from entrepreneurial ventures, jobs and increases the well-being of the people. Knowing these potentials, we are determined to increase the number of entrepreneurs through the implementation of various initiatives under this KRA.

We will provide the right platform for entrepreneurship development through provision of necessary funding and facilities for our business community. Our target groups include the youth, unemployed graduates, technically competent individuals and rural communities to participate in entrepreneurship activities to raise their income level.

KRA 6: Environment Development

Sustainable environment promotes healthy and quality of life of our population. We will continue to protect our environment through various initiatives including the development of environmental friendly landfills and waste management facilities. Initiatives will be taken to ensure our water catchment areas are well-protected and conserved to ensure quality and sustainable raw water supply.

We will improve forest governance through revision of forest rules and regulations. To ensure a sustainable environment development in the State, the Government will gazette six (6) million hectares of land as Permanent Forest Estate by 2030. In addition, seven (7) areas under Heart of Borneo Initiative will be certified through internationally recognised Forest Management Certification.

Tuan Speaker, the Cabinet Committee on Socio-Economic Transformation will meet before the end of 2016 to finalise the implementation plans of the approved programmes and projects for 2017. Our commitment is to ensure that the targets for the six (6) KRAs will be realised and implemented as planned. As mentioned in Budget Speech a total allocation of RM211 million has been approved for the implementation of all programmes and projects under this Cabinet Committee.

Ministry Of Modernisation Of Agriculture And Rural Economy (MOARE)

Tuan Speaker, for 2017, the Ministry transformation programmes are aimed at achieving the following objectives:

(a) To increase rural incomes and reduce poverty;

(b) To promote sustained growth of agriculture sector;

(c) To increase food security for the State;

(d) To promote capacity building within agriculture and rural sectors; and

(e) To facilitate private sector involvement in agriculture sector.

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Tuan Speaker, while all five goals are important and relevant to the State, the most urgent concern of my Ministry is in raising rural incomes and alleviating poverty. This emphasis on rural income generation is necessary because the rural area has always lagged behind the urban area in terms of socio-economic development. The economic indicator which points to the wide development gap between rural and urban areas is the incidence of poverty. For the information of the Dewan, household income survey showed that while the incidence of poverty in 2014 among urban households was 0.5 %, the incidence in rural areas was 1.6 %, or more than 3 times higher than in the urban areas.

In the interests of more equitable development, the income disparity between urban and rural household is something that needs to be urgently addressed. The State Government has therefore rightly focused on rural economic development as a matter of priority. In summary therefore, the specific objectives of my Ministry with regard to rural economic transformation is two-fold, namely:

(a) To raise rural household incomes to RM4,000 per month by year 2020. This income target is the same as that which has been set for farmers nationwide under the DASAR AGRO MAKANAN NEGARA (2011-2020); and

(b) To alleviate poverty in the State with the intention to eliminate hard core poverty by year 2018 and reducing the incidence of poverty in rural area to 0.8%, or to half the present level.

Tuan Speaker, in the formulation of strategic action plans and design of development models for agriculture and rural economic development, we are guided by the following important principles:-

(a) To leverage on our abundant natural resources that are available in the rural areas, including large areas of idle titled and NCR land, the relatively untapped deep sea fishery resources, the large areas of fresh water bodies for aquaculture, and our rich agro-biodiversity;

(b) To exploit all available opportunities for non-agriculture businesses in the rural areas, including in the manufacturing and services industry. One potential industry is rural tourism, for which we can leverage on our rich culture, wild life and unspoilt environment;

(c) To address all issues along the value chain, particularly those relating to marketing and supply of quality planting and stocking materials. Any bottlenecks in the supply chain must be adequately addressed;

(d) To have critical mass to support the development of downstream activities. This is done by adopting the “Cluster” or “Area Concentration” approach in upstream activities to generate “critical mass” as well as more cost-effective provision of industry support services;

(e) To promote and facilitate private sector participation in rural economic development;

(f) To modernise the value supply chain;

(g) To promote income diversification at the household level in order to mitigate the risks to household income as a result of fluctuating commodity prices; and lastly

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(h) The Rural Economic programmes must be inclusive.

Specific Initiatives for Rural Economic Transformation

Tuan Speaker, I shall now elaborate on selected new initiatives that have been identified and adopted by my Ministry for rural economic transformation.

Special Task Force for Strategic Coordination of Rural Economy

Tuan Speaker, during my winding-up speech in previous DUN Sitting, I informed in this august House that my Ministry will form the Strategic Rural Economy Task Force. For the information of this august House, the Cabinet has approved the formation of the Task Force on 30th June 2016. This Task Force is coordinating the activities of thirty-one (31) Federal and State Agencies as well as Statutory Bodies implementing rural economic development programmes in the rural areas. The Secretariat is coordinating projects worth RM1.50 billion for the period of Rolling Plan 1 (2016-2017).

Budget for Agriculture and Rural Economy

Tuan Speaker, I would like to express my gratitude and appreciation to Yang Amat Berhormat Ketua Menteri for special allocation of RM80 million under the new Key Result Area (KRA) initiatives of the State Socio-economic Transformation Plan. This is the first time ever such a substantial amount of allocation for agriculture sector has been approved. The historic moved is a clear evidence of Yang Amat Berhormat Chief Minister’s commitment to transform the rural economy and to eradicate poverty in line with our election pledges.

The additional RM80 million allocated to Department of Agriculture in 2017 under socio-economic transformation initiatives will be used to finance development activities that can have significant impact on raising rural incomes and eradicating poverty. They include development of farm infrastructures, establishment of marketing facilities, and assistance to smallholders for the establishment of income-generating projects such as planting of oil palm, pepper, sago, coconut, fruits, swiftlet farming and cattle integration with oil palm estates. These programmes and projects will be implemented throughout the rural areas of Sarawak, including coastal, midland and interior regions. In this connection, my Ministry will ensure equitable distribution of development assistance across regions and rural communities, while focusing on economically-disadvantaged groups. My Ministry will also continue to identify new economic activities that can raise rural incomes and include them in future budget proposals.

Transforming Rural Economy Through NCR Land Development

Tuan Speaker, under the State Socio-Economic Transformation Plan (SETP), NCR land development is one of the strategic thrusts in our endeavor to transform the huge potential of our vast tract of idle and unproductive NCR land into viable economic units and income generating activities. It is estimated that there are about 1.5 million hectares of NCR land in the State.

To date, only 328,000 hectares had been developed and planted with oil palm either by independent and organized smallholders through collaboration with the various implementing agencies such as SALCRA, LCDA, DOA, SLDB, MPOB and FELCRA. The balance of 1.2 million hectares yet to be fully developed. Thus, this large tract of land under- utilised land provides a huge potential for the development of income generating activities, such as oil palm, rubber and food crops to improve and uplift the livelihood of the people especially the B40 group.

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The New Concept for Development of NCR Land

Tuan Speaker, on the new concept, development of NCR land, the first initiative for development of NCR land for plantation was an NCR Joint Venture (JV) which was introduced in 1995. Under that concept, NCR land is tied to the joint venture project for a period of 60 years.

One of the major weaknesses of the joint venture concept was the dissatisfaction among participating landowners over uncertain, inconsistent and low financial return over the years. Although landowners had benefited through the introduction of new Incentive Payment Scheme in 2015, the Ministry felt that there is a genuine need to review the JV Concept so that new improvements for a better alternatives can be adopted to further improve the return to landowners.

The Proposed Leasing Model As an Alternative Approach

Tuan Speaker, my Ministry is open to other alternative development model so long as it benefits both the landowners and the investors based on “win-win” formula through maximum return and a viable business arrangement. The Leasing Model will be based on the key principles that the alternative approach should be better off than the existing models in terms of higher returns to the participating landowners. Under the proposed Leasing Model, landowners will rent their land to the investors at a fixed monthly rate per hectare over a lease period of 25-30 years.

For the information of this august House, the Leasing Model is actually not a new model. It is currently being practised by some of the private sector. Our analysis shows that on average, the yearly income per hectare received by the landowners under the private Leasing Model over the 25-year period ranges from RM720 to RM780 per hectare.

Therefore, we are confident this alternative model can be more attractive to the landowners as it will provide regular and assured returns. We will continue to engage with potential investors and landowners to fine tune the new model.

New Direction for Development of Rural Growth Centres (RGCS)

Tuan Speaker, my Ministry has been directed to review the existing policies, strategies and mode of implementation of Rural Growth Centres in Sarawak. The review among others will evaluate the existing program and project to ascertain its relevancy and effectiveness. This study and review will include studying the possibility of implementing or setting up original development concept as suggested by Yang Amat Berhormat dari Bukit Goram.

Fish Landings at Tanjung Manis Deep Sea Fishing Port

Tuan Speaker, our marine fisheries industry is an important contributor to food security and income source for rural households and the State. In 2015, the industry supplied 147,642 metric tons of fish worth RM728.63 million. Of that amount, coastal fisheries contributed 78% of total fish landings, while deep sea fishery only makes up 22% or 31,831 tons. It is noted however that coastal fisheries have already reached the maximum sustainable yield, meaning that significant future growth can only come from deep sea fishing. It is estimated that our deep sea fishery resource is about 500,000 metric tons annually. There is therefore a lot of potential to increase deep sea fish landings which can also support the development of downstream fishery industries.

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Tuan Speaker, our deep sea fisheries is an under-exploited resource which contributed only 22% of total fish landings in 2015. This is despite the fact that potential yield is estimated at about 500,000 metric tons. We know that our coastal fisheries has reached maximum sustainable yield.

Tuan Speaker, presently, we have only one deep sea fishing port in Sarawak, namely at Tanjung Manis. It is noted that fish landings at Tanjong Manis is estimated to be only 34% of the expected volume. In 2015 for example, fish landings at Tanjung Manis by 154 active fishing vessels was only 12,460 tons when it should have been about 37,000 tons. This means that a large proportion of the catch was not landed at the Port, thus preventing the development of downstream activities at the Tanjung Manis Port, and indirectly depriving the locals of economic benefits from the marine fisheries industry.

Tuan Speaker, to ensure that fish landings at Tanjung Manis Deep Sea Fishery Port is optimised, the Marine Fisheries Department has introduced additional and new conditions for the issuance and renewal of deep sea fishing licence. These new conditions came into effect in January this year, and involve the following:-

(a) The C2 fishing vessel must land their catch at Tanjung Manis Fishery Port at least once a month;

(b) The vessel must off-load the entire catch (100%) at the Port jetty each time;

(c) The vessel must obtain an approval from Marine Fisheries Department before setting out to sea again, upon which the Department will ensure that all fish containers on board are indeed empty;

(d) Any company who owns 10 or more licence fishing vessels are required to operate or own cold storage facilities at the Tanjung Manis Port with a minimum capacity of 20 metric tonnes;

(e) The company who owns less than 10 licence fishing vessels are required to rent cold room facilities; and finally

(f) Any company which intends to export fresh fish from their fishing vessels are required to obtain an export permit from the Lembaga Kemajuan Ikan Malaysia (LKIM).

Tuan Speaker, any licence deep sea fishing vessel that fails to comply with any of the above conditions of licence will have their permit cancelled.

Modernisation and Commercialisation of Agriculture by Department of Agriculture

Tuan Speaker, the State Government has made rural economy transformation as the main agenda to achieve our vision for high income economy by 2030. Thus, modernisation and commercialisation of agriculture become the core business of Department of Agriculture Sarawak (DOA).

In order to achieve our vision, the department needs to focus and intensify its core functions. Some of the core functions include regulatory, strive for quality standards and production of quality planting materials, breeding stocks and fish fries. Agriculture extension programmes for the farming communities must also be strengthened and intensified. For micro planning purposes, geospatial database on crop areas must be made available on a scale that is accurate for project planning up to the area level. This will also facilitate project implementation and monitoring on the ground.

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Regulatory Functions of Department of Agriculture

Tuan Speaker, in agriculture sector, regulations relevant to pest control are enacted and enforced to safeguard the resources in agriculture and other bio-resources from threat of dangerous pest, in particular alien and invasive species. Enforcement and compliance is also a requirement to facilitate agriculture trade. In Sarawak, the Department of Agriculture (DOA) is empowered to execute these regulations by:

(a) Regulating entry of plants / plant products & other regulated articles through issuance of Import Permit;

(b) Regulating or facilitating trade of plants / plant products and other regulated articles through Phytosanitary Certification and issuance of Phytosanitary Certificate; and

(c) Safe guarding or protecting our valuable wild and cultivated plant resources by prohibiting export.

The Sarawak DOA quarantine and enforcement are guided by the following Regulations:

• Plant Quarantine Act 1976, Plant Quarantine Regulations 1981;

• CITES Act 2008;

• Perintah Kastam (Larangan Mengenai Import 2012);

• Veterinary Public Health Ordinance 1999;

• Fisheries Ordinance 2003;

• Wild Life Ordinance 1998;

• Sarawak Biodiversity Centre Ordinance 1997, to be read with the Amendment 2014 (Chapter A163); and

• Forest Ordinance 2015.

In order to effectively manage the specific need of certain product, other relevant technical agencies are also required to handle their subject matters with regards to the import and export requirement. This involves State agencies such as Jabatan Hutan and Sarawak Biodiversity Centre.

Quality Standards

Tuan Speaker, Department of Agriculture (DOA) has been certified with MS ISO 9001 and MS ISO 9001:2008. Agriculture Research Centre (ARC) has been certified under the ISO/IEC Guide 25 since 1999 and MS ISO/IEC 17025 since 2002. The scopes of ARC accreditation include soil, plant, fertiliser and food materials testing. The said accreditation status provides assurance and confidence of the test results in connection with the certification of farm under MyGAP. A total of 104 MyGAP farms and 4 MyOrganic farms in the State have been certified with a combined production area of 700 ha. The activities on the certification of farms under MyGAP will also be intensified. The produces from the certified farms would be able to access oversea markets.

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Production of Quality Planting Materials, Breeding Stock and Fish Fries

Tuan Speaker, quality planting materials, breeding stocks and fish fries are crucial for increasing the productivity and quality of produce to meet the market demand and generate good income for the farming communities. To meet the above objective, DOA has taken steps to facilitate the availability and production of quality planting materials for crops like banana, pineapple, coconut, citrus, dabai and terung assam, quality brood stock of kampong chicken, kampong pig, ruminants including goat and cattle, and commercial fish species such as Tilapia, Keli, Siakap and Jelawat as well as indigenous fish species including Empurau, Semah and Baong.

In recent years, the production capacity of selected materials has been further enhanced through collaboration with the private sector nurseries or breeders or hatcheries. Some examples are the production of pest and disease-free meristem-cultured banana, tissue-cultured pineapple and budded citrus varieties (citrus greening disease free) and superior dabai, durian nyekak, terung asam and many other local vegetables (cekur manis, chilli, long bean and brassica). Similarly, DOA has implemented programs to increase production of true-to-type seed of Matag and Pandan coconut at Tarat and Rampangi Stations, respectively. Production of fish fries for Empurau, Tilapia, Jelawat, Keli and Siakap are now privatized. Two farms in Samarahan and Serian Divisions are actively producing Empurau fries for supply to other farms in addition to meet their own needs. PPK Lawas is currently producing Siakap fries for sale to aquaculture farms. DOA will focus more on the development of quality brood stock or parent materials.

Agriculture Extension Program

Tuan Speaker, in order to increase farm productivity in rural areas, modern technology must be imparted to farmers through agriculture extension. Modern technology covers all aspects of agro-food (crops, livestock and fisheries) and non agro-food, crop productions, cultural practices, pesticide usage, post-harvest and also the marketing activities. The outcomes expected are safe products for consumption, improved product quality, increased productivity as well as able to meet the standards required for international trade.

As my Ministry is focusing on modernisation and commercialisation of agriculture and rural economy, I strongly believe that extension is the ‘way forward’ to transform agriculture to meet the objective of high income farming community.

Department of Agriculture Sarawak is currently restructured to meet the challenges of transforming the rural farming communities to achieve high income. One of the strategies is to bring services closer to the farmers through setting up of more rural agriculture stations throughout the state, improving the capacity and capability of extension workers, packaging the rural agriculture station with trials and demonstration farms. A good example is the setting up of the Baram Highland Agriculture Station.

The highlands present huge land areas with great potential for rural transformation through agriculture development. Most of the rural minorities residing in this area especially the Penans form the majority of the hardcore poor who traditionally relied heavily on jungle produce, hunting and fishing for their daily food source.

In order to eradicate poverty and to uplift their livelihood, various programmes and projects are carried out by the Department of Agriculture, such as Program Pembangunan Modal Insan, Rubber planting project, planting material assistance and livestock projects. Such initiative have changed the Penan community from being totally dependent on jungle products and wildlife to a more sedentary lifestyle involved in farming activities. These

11 BELUM DISUNTING 30 NOVEMBER 2016 agricultural activities provided food source as well as possible contributing income generation to uplift them from poverty.

To unleash the vast potential of the interior Baram including the highlands, the Department of Agriculture Sarawak through RECODA is setting up a 20-hectare Station Complex and a field station covering 614 hectares near Long Banga. The field station served as a research and demonstration farms for subtropical crops. This station will also provide extension, technical advisory services and farmer training to the communities in the interior Baram including the highland areas.

I would like to take this opportunity to thank Yang Berbahagia Datuk Patinggi Tan Sri (Dr.) Alfred Jabu Ak Numpang who, a week ago, has presented my Ministry with the product of food crops from Penans in Long Beruang, an indication that the Penans have settled down and practiced farming activities. This augurs well with the transformation initiatives implemented by the Government.

Geospatial Database on Crop Areas in Sarawak

Tuan Speaker, the existing DOA geospatial database system comprises of only soil, terrain, agriculture capability class, existing infrastructure and major distribution of commodities such as large scale oil palm, rubber, coconut, paddy and sago areas throughout the state. Such information is mapped at scales of 1:50,000 and 1:125,000. At such scale, the available land use information is only suitable for macro planning purposes only. As such, a more comprehensive geospatial database system comprising of soil, terrain, agriculture capability class, land use, existing infrastructure, land status and other important data layers is needed by the Ministry as well as the public.

In the case of micro planning and project implementation purposes a more detail and updated land use map is needed. Hence, in order to obtain a real time high accuracy data on individual farms, the Department of Agriculture has now acquired drone technology as alternative to very high resolution satellite images to map out the detail of cropped areas. The usage of this advance technology will commence in early 2017 and focus within the highly dense smallholding farming communities throughout the state.

Strategic Direction of Inland Fisheries Division of Department of Agriculture

Tuan Speaker, the inland fisheries production for Sarawak in 2015 was 15,000 metric tonnes and it is projected to increase 5% annually to 19,000 metric tonnes by 2020. To achieve the target, the Inland Fisheries Division will focus on the following initiatives:

(a) The Department will collaborate with Federal Department of Fisheries on quality brood stock development focusing on commercial species including Tilapia, Jelawat, Udang Galah and Siakap. Certification of all private fish hatcheries will also be carried out throughout such collaboration. The Department of Agriculture will facilitate the procurement of quality brood- stock to the private hatcheries to ensure the production and supply of quality fish fries to commercial fish farms;

(b) For organised production and marketing, the cluster approach will be applied to Aquaculture Industry Zones including Rambungan, Batang Ai, Bakun, Murum and Sundar Awat Awat through the anchor farmer and out-grower model. Similar approach will be adopted for selected areas for land based pond culture;

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(c) Entrepreneur development programme for aquaculture projects comprise of three stages starting with Level 1: Projek Asas Akuakultur, advancing to Level 2: Projek Usahawan Akuakultur and graduated to Level 3: Usahawan Akuakultur Komersial. Level 3 is expected to achieve an income of at least RM4,000 per month by 2020;

(d) For extension activities to transfer modern technology, courses and motivational talks are mandatory to scheme farmers. Non scheme farmers are encouraged to attend as well. Farm records including inputs and outputs must be kept in order to evaluate the outcome from the project; and

(e) Indigenous fisheries conservation and development to capitalise on our rich bio resources will also continue.

Livestock Industry and Veterinary Services

Tuan Speaker, livestock production is an important industry contributing to food security and economic growth. Currently the State is self-sufficient in poultry meat, eggs and pork. However the State is still heavily dependent on import for her requirement for beef, mutton and milk. Currently the Department is in the process of fine tuning the livestock development programmes to ensure that they are effective and relevant of meeting the transformation of the rural economic agenda.

Among the programmes that the Ministry is focusing on are;

(a) scaling up cattle integration in oil palm estates;

(b) importation of breeding stock to build up the base population of animals;

(c) development of livestock entrepreneurs;

(d) implementing dairy-beef cluster projects;

(e) feedlotting on commercial scale; and

(f) swiftlet rearing for production of edible bird nest.

Veterinary Services

Tuan Speaker, one of the critical success factors for the growth of the livestock industry is a comprehensive veterinary service which include among others, epidemiological surveillance, border control, animal disease control programme, quarantine surveillance, farm and veterinary establishment accreditations, broodstock improvement, meat inspection, food safety, veterinary diagnostic capabilities, effective legislations and traceability. These are important prerequisites in meeting the requirements of the importing countries for our livestock and livestock products. I am pleased to inform this august House that livestock products from Sarawak are being exported to countries such as China, Negara Brunei Darussalam, USA, Australia, Hong Kong and Singapore.

Tuan Speaker, this is on issue Pengurusan Bencana Sarawak.

Pemberian Wang Ehsan Bagi Mangsa Bencana.

Tuan Speaker, Sarawak menghadapi pelbagai bencana setiap tahun. Kerajaan telah mengambil langkah-langkah untuk mengurangkan ketidakselesaan dan kerugian yang

13 BELUM DISUNTING 30 NOVEMBER 2016 dihadapi oleh mangsa-mangsa bencana. Bagi musim banjir 2015/2016, Jabatan Kebajikan Masyarakat telah membayar wang ehsan sebanyak RM 2.8 juta kepada 62,514 mangsa untuk mangsa banjir, ribut, tanah runtuh, kemarau dan kebakaran dari 1 Januari hingga 30 Jun 2016. Manakala, pihak Agensi Pengurusan Bencana Negara (NADMA) telah membayar wang ehsan sebanyak RM 4.32 juta kepada 10,634 orang ketua isi rumah banjir sehingga 31 Oktober 2016.

Persediaan Menghadapi Musim Bencana 2016/2017

Tuan Speaker, untuk makluman Ahli-Ahli Yang Berhormat, bagi menghadapi musim banjir 2016/2017, Jawatankuasa Pengurusan Bencana Negeri Sarawak telah mengadakan 2 mesyuarat persediaan untuk menghadapi kemungkinan banjir pada musim ini. Semua agensi yang terlibat telah membuat persiapan awal dan status persiapan serta penugasan adalah seperti berikut: Angkatan Pertahanan Awam Malaysia - 5,000 orang, Angkatan Tentera Malaysia – 7,192 orang, Polis DiRaja Malaysia –1,344 orang, Jabatan Bomba Dan Penyelamat –1,343 orang, Jabatan Kebajikan Masyarakat – 1,129 orang dan RELA – 1,089 orang. Jumlah 17, 097 pegawai telahpun disedia.

Dalam pada itu, sebanyak 5 buah helikopter, 154 buah lori, 358 buah kenderaan pacuan 4 roda, 226 buah bot dan 50 buah ambulans dari pelbagai jabatan dan agensi juga telah disediakan.

Jabatan Kebajikan Masyarakat telah membuat persediaan untuk membuka sebanyak 610 buah pusat pemindahan di seluruh Sarawak. Seramai 160 orang pembekal logistik telah dilantik dan untuk mencapai masa respon yang terbaik, pembekalan logistik akan disimpan di 25 buah pangkalan hadapan di tempat-tempat yang strategik.

Tuan Speaker, Mesyuarat Jawatankuasa Tertinggi Pengurusan Bencana Pusat yang dipengerusikan oleh Yang Amat Berhormat Timbalan Perdana Menteri pada 12 Ogos lalu telah mengisytiharkan bulan Oktober setiap tahun sebagai Bulan Kesiapsiagaan Nasional dengan tema “Siapsiaga Bencana Tanggungjawab Bersama”. Jawatankuasa Pengurusan Bencana Negeri Sarawak telah menganjurkan program-program dalam bulan Kesiapsiagaan itu:

(a) Latihan Komunikasi dan Simulasi Banjir anjuran SKMM dan APM di Stapang, Sibu pada 1 Oktober 2016;

(b) Simulasi Operasi Response Time Tanah Runtuh di Sibu;

(c) Bomba Bersama Komuniti Summer Camp;

(d) Search and Rescue Exercise (SAREX) Maritim Wilayah Sarawak di perairan Kuala Sungai Sarawak; dan

(e) Simulasi Pengurusan Bencana Daerah Marudi.

Pada bulan November, tiga lagi program telah dianjurkan, melalui Simulasi Pengurusan Bencana (Pemindahan & Pengurusan Pusat Pemindahan) Asajaya, Komplek Sukan Asajaya pada 4 November 2016.

Simulasi Pengurusan Bencana Bahagian Samarahan (Pusat Pemindahan), Kpg. Endap dan Latihan Simulasi Kanowit, SMK Sedaya Kanowit pada 27 November 2016.

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Saranan

Tuan Speaker, Kerajaan Negeri sedang membangunkan Disaster Reporting System yang berasaskan komputer. Melalui sistem ini, Pegawai-Pegawai Daerah sahaja dikehendaki memasukkan data yang tepat. Jawatankuasa Pengurusan Bencana Negeri akan memantau perjalanan operasi melalui sistem ini. Ahli-Ahli Yang Berhormat disaran untuk memberi apa juga bantuan yang sesuai untuk membolehkan operasi-operasi dijalankan dengan lebih baik.

Tuan Speaker, I would now like to respond to the various requests, issues, views, comments and suggestions by Ahli-Ahli Yang Berhormat on the subject related to my Ministry. But first I would like to record our appreciation to all Yang Berhormat who have participated in this debate and contributed conductive proposal in matters relating to my ministry.

Bantuan Untuk Nelayan Pesisir dan Nelayan Sungai di Seluruh Sarawak

Tuan Speaker, Untuk makluman Ahli Yang Berhormat bagi Balingian, Saya ingin memaklumkan kepada Dewan yang mulia ini bahawa nelayan pesisir dan nelayan sungai tidak dipinggirkan dari mendapat bantuan. Kerajaan Persekutuan akan menyalurkan peruntukan sejumlah RM69 juta bagi tahun 2017 untuk membantu nelayan pesisir dan nelayan sungai di Sarawak yang akan dilaksanakan oleh Lembaga Kemajuan Ikan Sarawak dan Jabatan Pertanian Sarawak. Bantuan ini terdiri dari Elaun Sara Hidup, Insentif Tangkapan Ikan, Subsidi Diesel dan Petrol, Skim Tabung Bencana Alam & Kebajikan Nelayan dan Projek Khas Perumahan Nelayan. Bantuan ini secara langsung akan memberi manfaat kepada seramai 21,162 orang penerima faedah di seluruh Negeri Sarawak.

Pencerobohan Kawasan Penangkapan Ikan di Sarawak

Tuan Speaker, mengenai pencerobohan kawasan penangkapan ikan di Sarawak untuk makluman Ahli Yang Berhormat bagi Simunjan, Jabatan Perikanan Laut Sarawak telah menjalankan pelbagai program untuk mengurangkan dan membenteraskan kes pencerobohan bot-bot pukat tunda di Negeri kita ini melalui program yang pertama:

(a) Membuat rondaan pemeriksaan vessel di laut;

(b) Menjalankan program tukun tiruan di kawasan-kawasan yang kerap berlaku pencerobohan bot-bot pukat tunda; dan

(c) Mengaplikasikan Sistem Pemantauan Vesel (VMS) yang mana alat pengesan kedudukan vesel dipasang ke atas semua vesel penangkapan ikan laut dalam Zon C2.

Infrastruktur Pengairan dan Saliran

Tuan Speaker, Yang Berhormat, untuk makluman Ahli Yang Berhormat dari Beting Maro, Jabatan Pengairan dan Saliran Sarawak telah melaksanakan projek pembangunan infrastruktur saliran di kawasan Beting Maro iaitu Skim Saliran Beting Maro dengan kos RM2.40 juta di bawah Rancangan Malaysia Ke-10. Projek skim yang berkeluasan 630 hektar ini telahpun siap pada September 2013. Infrastruktur yang dibina adalah seperti parit dan perimeter ban, Tidal Control Gate, culvert, jalan ladang dan melalui berbagai Skim ini, kawasan tersebut telah bebas daripada masalah banjir dan kemasukan air masin dan sesuai untuk aktiviti pertanian.

Tuan Speaker, for the information of the Honourable Member for Kabong, The Integrated Agricultural Development Area Kalaka-Saribas-Betong have undertaken the

15 BELUM DISUNTING 30 NOVEMBER 2016 maintenance of these infrastructures such as bunds, control gates, and drainage systems of the affected areas especially maintaining the damaged bunds caused by the abnormal king- tide phenomena recently.

Perancangan Bagi Peringkat Bahagian Pembangunan Pertanian Dan Ekonomi Luar Bandar

Tuan Speaker, mengenai perancangan bagi peringkat bahagian pembangunan pertanian dan ekonomi luar bandar bagi soalan ini yang dikemukakan oleh Ahli Yang Berhormat mengenai perancangan dan program pembangunan ekonomi luar bandar di peringkat Bahagian, saya ingin memaklumkan di Dewan yang mulia ini bahawa Kementerian saya telah menubuhkan Jawatankuasa Transformasi Ekonomi Luar Bandar Peringkat Bahagian. Jawatankuasa ini akan dipengerusikan oleh Residen Bahagian dan Urusetia adalah Pejabat Pertanian Bahagian. Ahli-Ahli terdiri daripada Kerajaan Persekutuan, Kerajaan Negeri dan Badan-Badan Berkanun yang beroperasi di setiap Bahagian. Fungsi penubuhan Jawatankuasa ini adalah untuk menyelaras perancangan dan memantau program dan projek ekonomi luar bandar yang dilaksanakan di setiap Bahagian supaya fokus dan strategik. Semua cadangan dan teguran yang berkaitan dengan pembangunan pertanian dan ekonomi luar bandar yang telah diketengahkan di Dewan yang mulia ini akan dikaji oleh Kementerian saya untuk tindakan sewajarnya.

Status Pembinaan Komplek Pendaratan Ikan LKIM Beladin

Tuan Speaker, mengenai status pembinaan Komplek Pendaratan Ikan LKIM di Beladin ingin saya maklum Ahli Yang Berhormat bagi Beting Maro, status terkini pembinaan Kompleks Pendaratan Ikan LKIM di Beladin adalah 88% siap. Projek ini sepatutnya siap pada bulan Jun tahun lalu bagaimanapun, projek ini terpaksa dilanjutkan tempoh siap oleh kerana masalah-masalah teknikal dan memerlukan kajian hidraulik. Projek ini dijadualkan semula untuk disiapkan pada Jun 2017.

Palm Oil Mill and Collection Centre

Tuan Speaker, mengenai Palm Oil Mill and collection Centres perkara yang ditimbulkan oleh Yang Berhormat dari Tamin, regarding the difficulties faced by the smallholders in selling their Fresh Fruit Bunches (FFB) in Selangau areas, for your information of Yang Berhormat, there are three palm oil mills operating within Selangau area with a total capacity of 720,000 tonnes of FFBs per year. Two of the mills have the excess capacity to process the FFBs from the smallholders in the surrounding areas. Beside these three mills, the smallholders have the option to sell their FFBs to the four Collection Centres operating in Selangau. These collection centres can buy any amount of FFBs among shareholders. The smallholders from the area can also sell their FFBs to Koperasi Sawit Mampan Selangau. The Ministry advice the smallholders to form a Koperasi to enable them to buy their own FFBs without going through Private Collecting Centres.

SALCRA Project in Ulu Awik, Ulu Krian and Babang

Tuan Speaker, for the information of Ahli Yang Berhormat from Krian, the total planted area for Ulu Awik is 472 hectares with 277 participants; Ulu Krian covers 357 hectares with 134 participants and Babang has 138 hectares with 60 participants. Since 1999 up to 2015, the total amount of nett proceed (dividend) received by these three areas is RM2.97 million: Ulu Awik received RM2.29 million, Ulu Krian received RM0.28 million and Babang received RM0.4 million.

With respect to the issuance of land title, out of the total 432 parcels of land, 404 parcels have been issued with land titles. The remaining 23 parcels are still at the stage of

16 BELUM DISUNTING 30 NOVEMBER 2016

"public notification" prior to the issuance of title, while five parcels are pending further investigations.

It has been the practice of SALCRA to conduct comprehensive project analysis before embarking on the replanting programme. This analysis includes financial, technical and consent of landowners. The decision whether to replant these three areas with other crops, such as rubber, depends on its economic viability and willingness of the landowners to continue with SALCRA upon expiry of the current project period.

NCR Joint Venture projects in Lesih and Majau-Poi

Tuan Speaker, for the information of Ahli Yang Berhormat for Machan, the NCR Joint Venture projects in Lesih and Majau-Poi were approved by the Government in 2003. However, these projects could not be implemented due to poor response from the landowners. My Ministry will request Land Consolidation and Development Authority (LCDA), who is the managing agent, to hold consultation on the affected landowners to confirm their continued interest in the project.

In this regards, I would also urge Ahli Yang Berhormat for Machan to assist LCDA in this exercise.

Projek Penanaman Getah di Krian

Tuan Speaker, mengenai penanaman getah di Krian. Untuk makluman Ahli Yang Berhormat bagi Krian, penanaman getah bagi Bukit Lugom akan bermula pada tahun 2017 dengan keluasan 283 hektar dan melibatkan 70 keluarga tani. Bagi kawasan Krangan Rusa, Ibus, Babang, Mendas dan Sungai Raba ianya akan dipertimbangkan kemudian.

Non-Islamic Affairs Unit

Tuan Speaker, I wish to update Ahli Yang Berhormat for Ba'kelalan on the issue raised pertaining to the Non-Islamic Affairs Unit.

While the formation of the so-called Unit has been announced and approved in principle, the proposed functions, organisation structure and staffing issue have yet to be detailed out.

There has been an engagement with the various bodies in the State to seek their inputs on the establishment of this Unit. There have also been many discussions with the relevant authorities and government officers in the State administration.

These details have now been worked out, and submitted to the State Government for the necessary approval. Once formal approval have been granted, the process of recruitment and filling of the various posts will then commence.

Conclusion

Tuan Speaker, the budget of 2017 clearly reflected the unwavering commitment and focus of Barisan Nasional Sarawak under the leadership of Yang Amat Berhormat Datuk Patinggi Chief Minister to transform Sarawak especially the rural areas. This is in line with the Chief Minister’s vision for united, prosperous and peaceful Sarawak. Let us all stand united with Yang Amat Berhormat Chief Minister to ensure the achievement of his noble vision.

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Tuan Speaker, finally I must congratulate you, Tuan Speaker for your sterling performance. A very firm speaker and has successful conduct of the Sitting of this august House. You certainly deserved our heartiest congratulation and high respect. A good job, well done, and you have done us proud and you make our life a lot easier.

Tuan Speaker, I wish to thank all our hardworking civil servants under the very capable leadership of our State Secretary, Yang Berhormat Tan Sri Datuk Amar Haji Mohamad Morshidi Abdul Ghani.

In conclusion, saya juga ingin mengucap Selamat Menyambut Hari Maulidur Rasul kepada rakan-rakan beragama Islam, Merry Christmas to all Christian friends and Happy New Year to everyone. Thank you very much.

Tuan Speaker: Ahli-Ahli Yang Berhormat, we have a short break. Sitting resumes at 11:00 a.m. to enable Yang Amat Berhormat Chief Minister to do his winding up.

(Mesyuarat ditangguhkan pada jam 10:27 pagi)

(Mesyuarat dimulakan pada jam 11.13 pagi)

[Tuan Speaker mempengerusikan Mesyuarat]

Tuan Speaker: Ahli-ahli Yang Berhormat dengan segala hormatnya saya menjemput Yang Amat Berhormat Datuk Patinggi Tan Sri (Dr) Haji Adenan Bin Haji Satem, Ketua Menteri Sarawak untuk menyampaikan ucapan penggulungan.

Ketua Menteri, Menteri Kewangan dan Menteri Perancangan Sumber dan Alam Sekitar (Y.A.B Datuk Patinggi Tan Sri (Dr) Haji Adenan Bin Haji Satem): Tuan Speaker, Bismillahirahmanirahim, Assalamualaikum Warahmatullahi Wabarakatuh, selamat pagi dan salam sejahtera. Sebelum saya meneruskan ucapan penggulungan saya, saya ingin mengucapkan terima kasih kepada semua Ahli-Ahli Yang Berhormat yang telah mengambil bahagian dalam perbahasan mengenai Rang Undang-Undang Perbekalan (2017), 2016. Saya percaya semua isu yang telah dibangkitkan dalam perbahasan oleh Ahli-Ahli Yang Berhormat telah dijawab oleh Menteri-Menteri saya dengan sedaya upaya mereka.

Sarawak Transformation: The Way Forward

Perkara pertama saya ingin bangkitkan di sini ialah perjalanan kita ke masa hadapan. Ataupun dalam bahasa Inggeris, Sarawak Transformation: The Way Forward. Sarawak has continued to strengthen economic resilience through various measures over the years. Moving forward, there are challenges to be addressed arising from the uncertainties in the global economy and the slowdown in the national economy. We cannot deny that the world economy has slow down, demand has slow down even China’s economy has slow down, demand has slowed down, demand and the price of oil is almost half, which put the gap to the growth of the world economy.

Despite these challenges, however, we need to accelerate our economic growth especially in achieving our vision to become a high income and developed State by 2030. To achieve this vision, efforts are being carried out through our Socio-Economic Transformation Plan ataupun nama pendek SETP to accelerate income growth and reduce income disparity among our people. I repeat, to achieve this vision, efforts are being carried out through our Socio-Economic Transformation Plan to accelerate income growth and reduce income disparity among our people which will be more difficult because of the economic circumstances facing us. Under SETP, for the State to achieve a high income status by the year 2030, the economy needs to grow at 6.5% per annum which I must admit that is

18 BELUM DISUNTING 30 NOVEMBER 2016 perhaps bit too optimistic. As I have mentioned earlier in my Budget Speech, our economic growth in 2015 was 3.7% and is expected to grow between 3.5 to 4.0% in 2016.

This expected growth takes into consideration of the weak prices of our export commodities. However, as the world economy is expected to recover in 2017, the State economy is projected to experience better growth of between 4.0 to 4.5%. The slower economic growth registered thus far calls for adjustments in our economic policy and this required some form of interventions in Government strategies and expenditure. For this reason, therefore, I have announced in the Budget Speech 2017 that the State Government is embarking on a deliberate transformation initiatives in our Development Plan.

The main areas in our transformation agenda are Socio-Economic Transformation, Rural Transformation and Performance and Service Delivery Transformation. We hope that our SETP supported by the transformation initiatives will put our economic growth back on track as projected. That is the generally speaking on economic situation. Many Honorable Members have asked or raised the matter on devolution of power from the Federal to the State Government. Let me relate the history of this matter, I have dealt with it at some length in my last Dewan speech before this sitting of our relationship with the IGP, with the Malaysia Act, Malaysia Agreement, Inter-Governmental Committee Report, Cobbold Commission and so on, I have dealt at some length on this matter, so there is no need for me to repeat it once again.

Devolution of Power

But however, as early as the 16th of March 2014, two weeks after my appointment as Sarawak Chief Minister, I have emphasised that Sarawak's relationship with the Federal Government must be constitutionally correct. I was then asked by the reporter I remember, from the Star, what is our position with regard to our relationship with Kuala Lumpur and I said that it must be constitutionally correct.

By that I meant in order to achieve this, the Sarawak BN Government at the State Legislative Assembly sitting on the 8th December 2015 had sought and was given a mandate for the State Government to safeguard the constitutional rights and protection of the State in the interest of all Sarawakians.

The mandate given covered the aspirations of the people of Sarawak from the days before the formation of Malaysia as stipulated in the Cobbold Commission Report, Inter- Governmental Committee Report and Malaysia Agreement and Malaysia Act.

Pursuant to this, the Government through its officials has actively and carefully planned a structured course of action toward achieving this objective. This course of action involves 3 phases which are as follows:-

(a) Administrative empowerment;

(b) Encroachment of State's rights; and

(c) Oil and Gas Royalty.

On 21st January 2016, I had announced 13 provisions of administrative empowerment to be delegated to the State Government which were agreed upon during my meeting with the Right Honourable Prime Minister. The 13 provisions of administrative empowerment are as follows:-

19 BELUM DISUNTING 30 NOVEMBER 2016

(a) Sarawak Legal Officers are to be authorised by the Public Prosecutor under the Criminal Procedure Code to conduct prosecution for offences under the State Ordinances from the stage a person is charged in the lower court until the appeal stage. According to the Constitution, only the Federal Attorney General had the power to prosecute under any law. So he must delegate this power to State Officers. So we have now the power to prosecute under State Ordinances by our own officers.

In light of the recent Devolution of Power exercise agreed between the Federal and State Governments, several officers of the State Attorney- General's Chambers have on 1st March 2016 been appointed as Deputy Public Prosecutors. Since then a total of sixteen (16) forest cases have been approved for prosecution. Ten (10) cases have been duly charged in Court with four (4) cases have been successfully prosecuted and the remaining six (6) cases are pending for trial. Another six (6) cases are pending for charges to be filed in Court.

Following the successful prosecutions, a total amount of RM77,719.60 in compensation was ordered by the Court to be paid to the State Government. This amount is over and above the fine imposed by the Court.

(b) It is agreed for the Delegation of Power to the State officers to represent the Public Service Commission and the Education Service Commission in the appointment of officers to the Federal Civil Service, including teaching and medical services. This is another delegation of power by the Federal authorities to the State authorities;

(c) Posts in Sarawak Immigration Department will be increased to improve the enforcement functions in the State with an increase of 100 new posts, with full deployment by the end of next month. As of today, out of 100 new posts, 99 posts have been filled. That means we do not have to appeal to the Federal authority every time we need a new post. We can do it on our own.

(d) The ratio of Sarawak-born teachers serving in Sarawak will be increased to 90% of the total number of teachers in Sarawak by 2018. To ensure that this target is achieved, temporary teachers from the open market will be considered from time to time and obtain their Diploma in Education while teaching. As of today, out of the total number of 42,235 teachers in Sarawak, 37,921 of them are Sarawak-born teachers which is about 89.8% of the total number of teachers in Sarawak;

(e) Traffic warden power for Sarawak Local Authorities will be given to the Miri City Council, apart from Kuching North City Hall and Kuching South City Council;

(f) The Sarawak State Government will be consulted before an application for a Deep Sea Fishing Permit is forwarded to the Deep Sea Permit Evaluation Committee for consideration. The Ministry of Agriculture and Rural Economy is the representative of the State Government in the Deep Sea Permit Evaluation Committee;

(g) The Sarawak State Government will be consulted in the drafting of Federal legislation which has bearing or impact to the Sarawak State Government, where provided by law. In this respect, the State Government was consulted

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for example amongst others with regard to the Integrated Water Resources Management Bill and Amendment to the Gas Supply Act 2016;

(h) The planning of Federal development projects in Sarawak will be based on the priorities and strategic thrusts of the State Five-Year Development Plan. Implementation of the projects will be referred by the Federal Ministries to the State Government such as in determining the location of schools, hospitals and other development projects. This initiative is now being implemented;

(i) The Higher Education Ministry will take necessary measures to increase the number of student enrolment from amongst Sarawakians with medical degree programmes in public universities. In this respect, of late I have learned that the Federal Higher Education Ministry following the steps taken for Sarawak will eventually recognise the United Examination Certificate on two conditions, the teaching of Bahasa Malaysia at SPM level and History of Malaysia instead of History of some other country within the curriculum. So, this matter will be considered but we in Sarawak are the first to recognise UEC. So we hope that the Federal Government will also follow suit. Sarawakian will be given a greater opportunity to enter foundation studies programmes in UNIMAS. In this respect, UNIMAS has been empowered to manage the intake of medical students to allocate the quota of 80% for Sarawak born students;

(j) It is agreed that relevant areas that can be delegated will be identified for delegation of power of the Director General under Section 49 of the Environmental Quality Act 1974 to the State officers or departments. Both the State and Federal Governments have agreed on the matters to be delegated and are now in an advanced stage of such empowerment;

(k) Development of housing projects in Sarawak is to be implemented through a Joint Committee Meeting to ensure that State agencies are fully involved in the planning, implementation and monitoring aspects of these projects in Sarawak;

(l) It is agreed that the development of sports in Sarawak is jointly managed with the State Government. The Federal Youth and Sports Ministry is also in the process of enhancing the Sports Development Act, 1997 which is expected to be completed by the end of the year. Certain aspect of the Sport Development Act, 1997 is under review by the parties to look into the possibilities of enhancing the involvement of the State Government including the organisation of international/national sporting events; and

(m) It is agreed that the Sarawak Government will carry out all functions under the Social Welfare Department. All posts will be transferred to State Civil Service. The Federal Government will contribute 50% of the total costs incurred as decided by the National Finance Council. In this regard, the State Cabinet will be deliberating and making a decision on the terms and conditions of these initiatives in the coming months.

These 13 provisions of administrative empowerment are progressively fulfilled by the Federal Government and we will continue to seek more empowerment to the State which can bring better benefits including areas related to tourism and education. The second phase involves the priorities subject matter relating to:-

(a) Finance

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(i) Financial Review under Article 112D of the Federal Constitution;

(ii) Import Duty and Excise Duty on Petroleum Products; and

(iii) Federal Financial Obligation for Expenditure in Concurrent List.

(b) Oil Exploration, Mining and Gas

(i) Minerals, Oil and Oilfields; and

(ii) Distribution of Gas.

(c) Land and Revenue from Land

Stamp Duties Chargeable on Instruments Prescribed by the Land Code for Transfer, Charge and Sublease ought to be returned to Sarawak.

These issues are at an advanced stage of negotiation by the State and Federal officers in the Technical Committee set up to look into these priorities issues. Negotiations are on-going with the relevant parties. As the negotiations have yet to be finalised, the details of this meetings cannot be made public as yet. However, I wish to inform this august House that the next meeting of the Technical Committee will be held tomorrow, 1st December 2016. Matters not in the priority list will be dealt with after the issues in the priority list have been dealt with.

Update On The Oil Royalty Negotiation

The oil market has shown signs that are heading towards a more balance situation, despite continuing volatility and challenges. The World Bank’s Commodity Markets Outlook, October 2016 projected crude oil prices are to average at USD43 per barrel in 2016, a decline of 15% from last year, and average at USD55 per barrel in 2017.

However, the forecast assumes OPEC will succeed in limiting global production, and that U.S. production will flatten out next year. Despite the uncertainty in the oil market, our negotiation on the request for the increase of oil royalty from 5% to 20% with the Federal Government and PETRONAS will continue. In fact, we have made some progress in the following five (5) key areas of negotiation with PETRONAS:

(a) Natural Gas Supply for both Power and Non-Power Sectors;

(b) Equity and Royalty;

(c) Contracts and Business Opportunities;

(d) Corporate Social Responsibility; and

(e) Human Resource, Education and Technical Trainings.

On the natural gas supply, PETRONAS has signed five (5) agreements to support the development of power and petrochemical industry in the State:

(a) Principle Agreement with the Government of Sarawak on the Supply of 450 million standard cubic feet per day of natural gas for the power and non-power sectors in the State of Sarawak on 3rd April 2016;

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(b) Gas Sales Agreement with Sarawak Energy Berhad to supply 100 million standard cubic feet per day of natural gas for Tanjung Kidurong Power Plant on 3rd April 2016;

(c) Memorandum of Understanding with the Government of Sarawak to conduct a Joint Study for Sarawak Petrochemical Master Plan on 3rdApril 2016;

(d) Heads of Agreement with HUCHEMS for the supply of 58 million standard cubic feet per day of natural gas to HUCHEMS' petrochemical complex on 11th November 2016; and

(e) Memorandum of Understanding with Yayasan Hartanah Bumiputera Sarawak to jointly conduct a Pre-Feasibility Study for a Proposed Methanol Plant Project in Bintulu on 11th November 2016.

Through these agreements, PETRONAS has committed to supply 450 million standard cubic feet per day of natural gas to Sarawak for the power and non-power sectors development in the State. We will continue to negotiate for the supply of more natural gas from PETRONAS for our downstream activities.

The availability of natural gas in Sarawak will attract more petrochemical industries to invest especially in Bintulu. This will support our industrialisation strategy to transform Bintulu to be the leading petrochemical hub in Malaysia. We believe that the Sarawak Petrochemical Master Plan will also help us to develop our petrochemical industries in a strategic manner.

I would like to inform that the number of Sarawak licensed of registered companies with PETRONAS have increased from 314 to 396 in 2016. We will continue to negotiate with PETRONAS to enhance the participation of Sarawak companies in oil and gas industry. We are also pursuing to have more contracts to be given to our Sarawak companies.

In this regard, PETRONAS has committed a baseline value of RM2.1 billion worth of contracts annually to be awarded to Sarawak companies. Since 2013, PETRONAS has already spent RM14.8 billion worth of contracts for Sarawak companies.

The State Government is also in active discussion with PETRONAS on the details of Shareholders Agreements on the 10% equity in the MLNG Plant Train 9. We are also working with PETRONAS for more equity in MLNG 2 Plant. Let me emphasise here that the State’s equity in MLNG projects is our privilege as not anybody can participate in the projects.

For Corporate Social Responsibility, PETRONAS is committed to spend RM50 million over 5 years from 2015 until 2019 for 10 projects. Currently eight (8) projects have started and are on-going namely the Development of Community Centre, Sarawak Regatta, Contribution to NGOs, Mobile CSR, Penan Pre-School, Emergency Aids and PETRONAS Marine Conservation.

Another two (2) projects will start soon namely PETROSAINS, Play smart and Rest and Recreation Areas. In the area of human resource, education and technical trainings, PETRONAS will continue to intensify education and human capital development efforts in Sarawak.

PETRONAS is expected to spend RM465 million, exceeding the budget of RM420 meant for 5 years from 2015 until 2019 on:

(a) Capital expenditure for the construction of new MRSM Bintulu;

23 BELUM DISUNTING 30 NOVEMBER 2016

(b) Implementation of Asrama Desa projects; and

(c) Educational sponsors and building capacity for students.

The following are PETRONAS contribution in education and human capital development:

(a) 680 students sponsored under PETRONAS Education Sponsorship Program to pursue tertiary education in 2003;

(b) 1,054 students sponsored under Program Sentuhan Ilmu PETRONAS to drive academic excellence;

(c) 1,008 trainees given the technical skill training support under PETRONAS VISTA;

(d) 47 students participated in Graduate Employment;

(e) 687 students graduated from University Teknologi;

(f) 1,945 trainees sponsored at Institut Teknologi Petroleum; and

(g) 95 students sponsored at Akademi Laut Malaysia.

Currently there are 3,880 Sarawakians or 75% of the total workforce being employed by PETRONAS for its Sarawak operation covering both upstream and downstream including senior positions. However, after our negotiation with PETRONAS to increase the number of Sarawakians working with PETRONAS, they have charted a Roadmap to recruit and develop more Sarawakians to achieve the targeted job level of 85% for Sarawakians by 2020.

The Localisation Plan was developed to increase the numbers of qualified Sarawakians in PETRONAS through Structured Succession Planning and New Recruitment through advertisement.

The Structured Succession Planning of Sarawakians filling up positions on Non- Sarawakians is on-going since September 2016. For the new recruitment, 192 vacancies (meant for Sarawakians) were advertised in the local papers Utusan Borneo, Borneo Post and New Sarawak Tribune etc.

As of 8th November, PETRONAS has received 10,000 applications (including non- Sarawakians) and shortlisting is in process. Efforts are also in place to further up skill and create future qualified Sarawakians leaders. Placement of Sarawakians at Universiti Teknologi PETRONAS and Institut Teknologi Program PETRONAS will continue to be done based on merit. PETRONAS will continue to expand outreach programme to encourage more Sarawakian students to enrol in the University. PETRONAS will also continue to support technical training programmes in Sarawak via PETRONAS Vocational Institution Sponsorship and Training Assistance Programme which include the funding of technical programmes, consumable and Training of Trainers as well as sponsorship of trainees.

Many questions has been asked with regards as to why is it that we do not pass a resolution in this House, with support by all parties, that we follow RGC etc. The State Government has decided not to proceed on the motion to Article 1(2) of the Federal Constitution which categorised Sarawak as one of the thirteen (13) states in Malaysia. Therefore, reducing our status.

24 BELUM DISUNTING 30 NOVEMBER 2016

The amended 1(2) is perceived as not in the spirit behind Inter-Governmental Committee Report and the Malaysia Agreement which was clearly reflected in the original wordings of that Article. That Article, before its amendments clearly provides that the Federation of Malaysia consisted of:

(a) The States of the Federation of Malaya;

(b) The States of Sabah and Sarawak; and

(c) Singapore.

The Prime Minister has announced that he is willing to discuss with Sarawak and Sabah on any matters related to the misinterpretations and misunderstandings to the Malaysia Agreement 1963.

On this note, the Prime Minister clearly shows that he is willing to discuss this matter with the State and to find solutions to resolve these matters.

The State Government is not making a ‘U’ turn on this matter because we believe that the Federal and State BN Governments being as one family can resolve this issue amicably between the parties. Diplomacy is better than confrontation. And because of diplomacy so far we have achieved all those from Petronas and from the Federal Government.

This consultation approach is manifested through the Prime Minister’s regular visits to Sarawak and his approval of many projects during his visits. As I have always mentioned in the past, we are fortunate to have Mohd Najib Tun Razak, a caring Prime Minister who has frequently visited Sarawak since he became Prime Minister. Undeniably, this shows that he cares a lot for the wellbeing of the people.

It exemplifies his great concern on the needs to accelerate the provision of basic infrastructure and social amenities in the rural areas. The following project Borneo Highway will bring multiplier effects on the State to great mobility of people and goods and opening up more areas for development. The project has created job opportunities for 75 local consultants, 11 main contractors, 36 sub-contractors as well as generating more employment opportunity for Sarawakian.

It also acts as advice of great concern for the rural areas and I have no reason to doubt his word and to keep his word, and that there is no need to confront him on this matter when diplomacy is enough. He has already said in Sabah that he will consider this matter favourably the time we talk about it and we will get what we hope we will be getting on him.

So, basically it is diplomacy is better than confrontation. We will not follow the opposition stand of confrontation because we will fall into their trap. All this business activities will provide more and better opportunities to the local community.

This is with regards to the Pan Borneo Highways. The Pan Borneo project, a mega project for Sarawak that was approved by the Prime Minister is progressing well. All the 11 packages from Telok Melano, Lundu to Merapok, Lawas have been awarded to the successful contractors. With a total distance of 1,089 kilometres, the project when completed in 2020 will provide a comfortable and toll free road journey. The traveling time across Sarawak will also be shortened drastically.

As I have mentioned before, this project will bring multiplier effects on the State economy through greater mobility of people and goods and opening up of more areas for development. The project has created job opportunities for 75 local consultants, 11 main

25 BELUM DISUNTING 30 NOVEMBER 2016 contractors, 36 sub-contractors as well as generating more employment opportunities for Sarawakians.

In order to ensure the successfully completion of this project and to benefit the rakyat, the State Government is working very closely with the Federal Government.

In reciprocating the kind heartedness and generosity, I would like to express our thanks and heartfelt appreciation to him and the Federal Government for approving these people- centric and rural focus projects during his walkabout in Sarawak. These projects have considerably benefited the rakyat especially the rural communities.

For this reason, we hope that our YAB Prime Minister will continue to visit us in the future and to announce more programmes and projects for the benefit of the rakyat in Sarawak.

Before the last State election and during the last ruling State election, I have made many announcements in respect to the 53 Principles and Actions before the last State election. These Principles and Actions are not just empty promises but sincere efforts by the BN Government to safeguard the interest of the rakyat as well as to lighten the burden of the people.

I am pleased to inform that all these Principles and Actions have already been implemented except for several items under the Devolution of Power and PETRONAS commitment as I have explained earlier that are still at the various levels of negotiation with the Federal Government and PETRONAS. Obviously some project takes longer, some project takes shorter. It is obvious that the rakyat have benefited from the various initiatives that are being implemented.

Let me share some findings on the people support of the last State Election. In term of popular votes, there is an increase vote for Barisan Nasional from 55.4% in the Tenth State Election (PRN10) to 62.2% in the Eleventh State Election (PRN11). In contrast, the popular votes for the oppositions (PKR and DAP) have decreased from 37.4% to 29%. The people support is translated into an overwhelming victory by Barisan Nasional in winning 72 out of 82 State Constituencies contested in PRN11. The rakyat have made their choice and we, the Barisan Nasional Government being a caring and responsible Government is duty bound to deliver all the promises made in the last election.

We are committed to discharge our responsibilities to plan for the posterity and prosperity of Sarawak and to look after the wellbeing of the rakyat. This is the reason why we have fulfilled the 53 Principles and Actions to benefit the rakyat. We are implementing development policies and strategies through our SETP and Transformation Initiatives for the economic prosperity of the State and the livelihood of our people. Therefore, our programmes and projects are people-centric and focusing on the rural areas.

Sebelum mengakhiri ucapan, saya ingin mengucapkan selamat menyambut Maulidur Rasul kepada semua yang beragama Islam di dalam Dewan yang mulia ini.

Sekian. Assalamualaikum Warahmatullahi Taala Wabarakatuh. And Merry Christmas to my Christian friends.

Tuan Speaker: Ahli-ahli Yang Berhormat, I shall call upon Yang Amat Berhormat Chief Minister and Minister for Finance, to move the motion that the Bill be read a second time.

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Ketua Menteri, Menteri Kewangan dan Menteri Perancangan Sumber dan Alam Sekitar (Y.A.B. Datuk Patinggi Tan Sri (Dr) Haji Adenan Bin Haji Satem): I beg to move that the Supply (2017) Bill, 2016 be read a Second time.

Tuan Speaker: The question is that the Supply (2017) Bill, 2016 be read a Second time. As many as are of the opinion say “Yes”.

Government: Yes … (Resounding “Yes”) Tuan Speaker: As many as are of the contrary opinión say “No”.

Opposition: No … (Murmuring “No”)

Tuan Speaker: The “Yes” have it, the Bill is read a second time.

Question put and agreed to

Bill is read a second time

SUPPLY (2017) BILL, 2016

Tuan Speaker: The question is that the following Motion be referred to the Committee of Supply. “That this Dewan resolves to approve the Development Estimates, 2017 as contained in Command Paper No. 7 of 2016 laid on the Table on 21st November 2016." As many as are of the opinion say “Yes”.

Government: Yes … (Resounding “Yes”)

Tuan Speaker: As many as are of the contrary opinion say “No”.

Opposition: No … (Murmuring “No”)

Tuan Speaker: The “Yes” have it, the Motion is carried and shall stand committed to the Committee of Supply.

COMMITTEE STAGE

[Tuan Pengerusi mempengerusikan Mesyuarat]

Tuan Pengerusi: The House shall now resolve into a Committee of Supply.

COMMITTEE OF SUPPLY

Tuan Pengerusi: We shall now consider Command Paper No. 5 of 2016 on the Estimates of Revenue and Ordinary Expenditure for the year 2017, laid on the Table on 21st November 2016. The question is that the amount of Expenditure on all Heads as set forth in the Estimates of Revenue and Ordinary Expenditure for the year 2017 be approved. As many as are of the opinion say “Yes”.

Government: Yes … (Resounding “Yes”)

Tuan Pengerusi: As many as are of the contrary opinion say “No”.

Opposition: No … (Murmuring “No”)

27 BELUM DISUNTING 30 NOVEMBER 2016

Tuan Pengerusi: The “Yes” have it, the Estimates of Revenue and Ordinary Expenditure for the year 2017 are approved. We shall now consider the Supply (2017) Bill, 2016.

The Schedule

Tuan Pengerusi: The question is that the schedule be ordered to stand part of the Bill. As many as are of the opinion say “Yes”.

Government: Yes … (Resounding “Yes”)

Tuan Pengerusi: As many as are of the contrary opinion say “No”. Opposition: No … (Murmuring “No”)

Tuan Pengerusi: The “Yes” have it, The Schedule stands part of the Bill.

Clauses 1 and 2

Tuan Pengerusi: The question is that Clauses 1 and 2 be ordered stand part of the Bill. As many as are of the opinion say “Yes”.

Government: Yes… (Resounding “Yes”)

Tuan Pengerusi: As many as are of the contrary opinion say “No”.

Opposition: No… (Murmuring “No”)

Tuan Pengerusi: The “Yes” have it, Clauses 1 and 2 stand part of the Bill.

Enacting Clause and Title

Tuan Pengerusi: We shall now consider Command Paper No. 7 of 2016 on the Development Estimates, 2017 laid on the Table on 21st November 2016. The question is that the amount of expenditure on all Heads as set forth in the Development Estimates, 2017 be approved. As many as are of the opinion say “Yes”.

Government: Yes … (Resounding “Yes”)

Tuan Pengerusi: As many as are of the contrary opinion say “No”.

Opposition: No … (Murmuring “No”)

Tuan Pengerusi: The “Yes” have it, The Development Estimates, 2017 is approved. The House shall now resume.

HOUSE RESUMED

[Tuan Speaker mempengerusikan Mesyuarat]

Tuan Speaker: Yang Amat Berhormat Ketua Menteri

Ketua Menteri dan Menteri Kewangan dan Menteri Perancangan Sumber dan Alam Sekitar (Y.A.B. Datuk Patinggi Tan Sri (Dr) Haji Adenan Bin Haji Satem): I wish to report that the Supply (2017) Bill, 2016 and the motion on the Development Estimates for the year 2017 have been considered by the Committee of Supply and agreed to without amendment.

28 BELUM DISUNTING 30 NOVEMBER 2016

RANG UNDANG-UNDANG KERAJAAN – BACAAN KALI YANG KETIGA

SUPPLY (2017) BILL, 2016

Ketua Menteri dan Menteri Kewangan dan Menteri Perancangan Sumber dan Alam Sekitar (Y.A.B. Datuk Patinggi Tan Sri (Dr) Haji Adenan Bin Haji Satem): I beg to move that the Supply (2017) Bill, 2016 be read a third time and do pass.

Tuan Speaker: Ahli-Ahli Yang Berhormat: The question is that the Supply (2017) Bill, 2016 be read a third time and do pass. As many as are of the opinion say “Yes”. Government: Yes ... (Resounding “Yes”)

Tuan Pengerusi: As many as are of the contrary opinion say “No”.

Opposition: No ... (Murmuring “No”)

Tuan Speaker: The “Yes” have it, the Bill is read a third time and passed.

SUPPLY (2017) BILL, 2016

USUL UNTUK MELULUS RESOLUSI ANGGARAN PEMBANGUNAN BAGI PERBELANJAAN 2017

Ketua Menteri, Menteri Kewangan dan Menteri Perancangan Sumber dan Alam Sekitar (Y.A.B. Datuk Patinggi Tan Sri (Dr) Haji Adenan Bin Haji Satem): I beg to move that this House resolves to approve the Development Estimates for the year 2017 as contained in Command Paper No. 7 of 2016 laid on the Table on 21st November 2016.

Timbalan Ketua Menteri, Menteri Pemodenan Pertanian dan Ekonomi Luar Bandar (Y.B. Datuk Amar Douglas Uggah Embas): I beg to second, sorry.

Tuan Speaker: Ahli-Ahli Yang Berhormat: The question before the Dewan is that the Motion in the name of Yang Amat Berhormat Chief Minister and Minister for Finance be approved. As many as are of the opinion say “Yes”.

Government: Yes ... (Resounding “Yes”)

Tuan Pengerusi: As many as are of the contrary opinion say “No”.

Opposition: No ... (Murmuring “No”)

Tuan Speaker: The “Yes” have it, the Motion is approved.

USUL PENANGGUHAN

Menteri Muda Kesihatan Awam (Y.B. Datuk Dr Jerip Anak Susil): Terima kasih, Tuan Speaker. Tuan Speaker, I rise to move a motion of adjournment for the Second Meeting of the First Session of the Eighteenth Dewan Undangan Negeri.

Before I proceed, allow me to congratulate the Right Honourable Yang Amat Berhormat Datuk Patinggi Tan Sri (Dr) Haji Adenan bin Haji Satem, Chief Minister of Sarawak for tabling the Budget 2017(2016) in this August House on 21 November 2016.

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Government Bills

This current Dewan Session saw the passing of two Government bills namely :

(a) The Supply Bill 2017(2016);

(b) The Distribution of Gas Bill 2016.

The debate on Distribution of Gas Bill sparked a lot of interest amongst members of the august House and many pertinent issues with regards to this Bill were raised. Amongst these were:

(a) The powers and the executive administration of the Director of Gas distribution;

(b) The safety measures and standards that must be in place for distribution and reticulation to end consumers; and

(c) The question of the pricing of Gas to end consumers.

It is also perceived that the passing of this Bill is the beginning of an exercise of the powers which constitutionally belong to the State, to legislate on the distribution of Gas in Sarawak as a significant step in the on-going Devolution of Powers process to “reclaims” powers which was under the Federal Constitution and in accordance with the recommendation of the IGC which are vested with our State.

The passing of this Bill will safeguard the economic interest of the State, and thus ensure that important resources like natural gas are available to boost the industrial development of the State.

Thus it is expected, that Gas Industries in Sarawak will grow.

The passing of this Bill sends a clear message to Petronas that they need to be more mindful of the aspirations and needs of Sarawakians and that any matter pertaining to Gas Supply Industries are subject to State Laws.

The 2017 Budget

The Development Expenditure Estimate for 2017 have taken serious consideration on commitment to complete the implementation of the on-going projects as well as the capacity of our State agencies to implement projects during the year. It gives greater emphasis in developing necessary infrastructure and amenities aimed at improving quality of life especially in the rural areas.

It is a Development biased, emphasising on Rural Areas to narrow the development gap between the Urban and Rural Areas. One of the key element of this budget is the inclusion of expenditures for the State Transformation Initiative for the year 2017.

The State Government is committed to transform our State as a whole particularly the rural areas and for this it has established three Cabinet Committees which have identified Key Result Areas to further spur the economic growth and development of the State.

It is thus expected that this budget is a deficit budget, the first after 14 years of surplus. However, it has to be emphasised that our State continue to enjoy a strong financial position. Our State Financial Management System has over the years established stringent control on operating expenses, maintain prudent financial management and good financial

30 BELUM DISUNTING 30 NOVEMBER 2016 practices that over the years the actual annual surplus is over and above the estimated surplus. In view of this, this deficit budget may even balance itself in the end.

On a personal note, Tuan Speaker I am pleased to note that there is now emphasis on commercial agriculture under the Social-Economic Transformation Committee and it is spearheaded by the Ministry of Modernisation of Agriculture and Rural Development. The plans to implement their endeavour with the whole chain from supply to processing or packaging to market for end consumers has much to be desired.

The implementation and success of this will eventually improve the socio-economic status in the rural areas. This will also allow many stretches of idle NCR Land to be utilised. Tuan Speaker, before I end, let me take this opportunity to wish everyone, a blessed New Year 2017, blessed and Merry Christmas to all Christian friends. Selamat menyambut Hari Maulidulrasul for those Muslim friends and at the same time congratulations to you Tuan Speaker for your excellent manner in conducting this meeting, your office staff and all other Government agencies and all those involved in making this meeting a successful one.

I'd like to end my speech by giving two rangkap pantun.

Ketua Menteri bijak bermada, Budget dibentang begitu menyerlah; Rakyat Sarawak merasa megah, Masa depan Sarawak pasti indah.

Transformasi Sarawak jadi idaman, Harapan rakyat semua lapisan; Marilah kita berganding tangan, Agar idaman jadi kenyataan.

Tuan Speaker, on this note I beg to move.

Tuan Speaker: Ahli-Ahli Yang Berhormat, dengan ucapan usul penangguhan itu tadi, maka kita telah sampai ke penghujung Mesyuarat Kedua Penggal Pertama Persidangan Dewan Undangan Negeri Kelapan Belas.

Alhamdullilah, persidangan yang berlangsung selama lapan hari ini telah berjalan dengan lancar dan teratur atas kerjasama dan keperhatinan Ahli-Ahli Yang Berhormat dalam menjaga ketinggian dan kemuliaan Dewan yang mulia ini.

Ahli-Ahli Yang Berhormat telah menunjukkan semangat untuk memberi khidmat yang terbaik kepada rakyat dan Negeri. Saya berdoa Ahli-Ahli Yang Berhormat kembali ke kawasan masing-masing dengan selamatnya dan terus berkhidmat kepada rakyat.

Bagi pihak Dewan yang mulia ini, saya ingin mengucapkan berbanyak-banyak terima kasih kepada Yang Berhormat, Setiausaha Kerajaan Negeri, Yang Arif Peguam Besar Negeri, Yang Berbahagia Setiausaha Kewangan Negeri, Yang Berbahagia Setiausaha Persekutuan, Yang Berbahagia Timbalan-Timbalan Setiausaha Kerajaan Negeri, semua Setiausaha Tetap Kementerian, Ketua-Ketua Jabatan dan agensi-agensi Kerajaan, para pegawai, para petugas khas dan semua pihak yang telah bertungkus lumus dalam menjayakan persidangan kali ini.

Saya juga ingin mengucapkan Salam Maulidur Rasul kepada semua umat Islam, Selamat Hari Krismas kepada penganut agama Kristian, Selamat Tahun Baru ke 2017 kepada semua dan Gong Xi Fai Chai kepada yang akan meraikan perayaan Tahun Baru

31 BELUM DISUNTING 30 NOVEMBER 2016

Cina. Saya mengakhiri persidangan kita pada kali ini dengan menyampaikan empat (4) rangkap pantun .... (Laugher) ... hanya empat lah.

Persidangan Bajet selesai sudah, Keperluan rakyat sering berubah, Mentadbir kawasan tidak mudah, YB berkhidmat dengan tabah.

Selesai hujan pelangi memancar, Mata memandang berpinar-pinar, Persidangan DUN berjalan lancar, Perbahasan YB memberi sinar.

Negeri Sarawak bumi kenyalang, Di mata dunia sudah terbilang, Berkat usaha pemimpin cemerlang, Masa hadapan jadi gemilang.

ADUN bersidang tanpa alpa, Perasaan rakyat tidak dilupa, Isu dibincang tak akan dilupa, Perasmian penggal kita berjumpa.

With that the House is adjourned “Sine die”.

(Mesyuarat ditangguhkan pada jam 12:21 tengahari)

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