Petrochemicals Industry Good For Sabah? Says Tan Sri Bernard Dompok!

I am very worried about Malaysian government these days. Especially those coming from Sabah. Tan Sri Bernard Dompok has been questioning the logic of building a 502km pipeline all the way from Kimanis in Sabah to Bintulu, Sarawak. His reason, Sabah is deprived of possible development or benefits from the gas. It's hoped that at the very least, Kimanis will be developed into a petroleum city, the likes of Miri and Bintulu and may be Kerteh. He also suggested that a petrochemical complex to be built to help Sabah to reduce unemployment and improve the economy. The level of Tan Sri Bernard's resolve to make this happen really strong to the extent of him threatening to bring his party United Pasok Momogun Kadazan Dusun Murut (UPKO) out of Barisan Nasional. While all these seem wonderful on the surface, Tan Sri Bernard really has to dig deeper. I do respect Tan Sri Bernard for his efforts to solve people issues in Sabah, but the industry that he has been wanting to have in Sabah is definitely not a sustainable one. The prospect of petrochemical products or derivatives look very gloom at least in the next 5-10 years. PETRONAS' facilities in Sabah are struggling to keep their ends meet and Tan Sri Bernard is asking for PETRONAS to build a new one. Who says petrochemical industry is good for Sabah then?

A non-sustainable business is really waste of people's money. The money wasted in building the petrochemical complex which could easily run into billions (a SUNK COST) can easily be invested in something that really makes business commercial sense. So instead of asking PETRONAS to build a wasteful petrochemical complex, Tan Sri Bernard should really focus on high margin, high growth with global appeal industry which is sustainable in the long run. For this, he can get PETRONAS to lead its development and make the initial investments. This will definitely benefit both PETRONAS and Sabah government. It's a win-win situation. Sabah can model after Singapore and Israel. Start a service, high end industry. That will move Sabah faster (double digit growth each year) than a loss-making petrochemical complex.

I really hope Tan Sri Bernard will consider this in earnest.

Albert Buyou of Sabah Oil and Gas contractors Association also mentioned that in NST, dated 12 November 2008, "We have skilled locals who are being driven away to Sabah, Sarawak, Terengganu and Arab states because there is nothing for them to do." May I also mention Albert that even in Kerteh and Sarawak the skilled locals are being driven away to Middle East. So what's stopping the Sabahan to run away when even you have local oil and gas industry there? The key is the monetary compensation. They are being paid more than 7-8 times over in Qatar etc. Who doesn't compelled to leave by the way?

Be sensible Datuk. I know you intention is good but the means is just not justifiable. Think on the solution. There are many ways to reach the solutions.