Bringing new hope and a better Sabah

Former chief minister Yong Teck Lee has promised that Sabah will take no more loans if he is returned to power.

KOTA KINABALU: If the opposition Sabah Progressive People’s Party (SAPP) should form the next state government, it will not take any more sovereign loans that would harm the state finances.

This was the pledge made by former chief minister Yong Teck Lee, who said the RM544 million bond (loan) taken by the current state government two years ago had now become a massive financial burden.

“The bond is like spending tomorrow’s money today. SAPP promises that, upon the retirement of this bond in 2015 and the retirement of this chief minister this year, the Sabah state government shall not take any more sovereign loans,” said Yong, who is also SAPP president.

He also noted that prior to that, the Sabah government had zero private borrowing.

“Even at the height of the Asian financial crisis from 1997 to 1999, Sabah had remained resilient without having to take out any loans. All repayments to the federal government were on schedule, meaning that there were no arrears.

“Sabahans, over the years and in spite of four changes of state governments, have managed to stay clear of taking private loans or falling into arrears to the federal treasury.

“If you do not believe me, you can ask the most successful Sabah finance minister, Mohammad Noor Mansur,” he said at the launch of SAPP’s “Sabah Economic Plan”, which is part of the party’s election manifesto.

The detailed “Sabah Economic Plan” was unveiled by former state finance minister Mohd Noor Mansoor, who is a SAPP adviser.

Yong said that his own experience as chief minister from 1996 to 1998 (during the Asian financial crisis) had taught him that economic resilience is most important in sustaining a nation.

“For those who have forgotten, the Asian financial crisis from 1997 to 1999, which started as a Thai bath (currency) problem, eventually brought down the Indonesian government leading to the independence of East Timor.

“South Korea came under the International Monetary Fund. Hong Kong’s financial sector went into a free-fall.

“Malaysia was forced to impose currency controls and recapitalise and then merge the banks.

“Asian stock markets and currencies went haywire. The social, economic and political impact on ordinary people was serious.

“China, which was only just emerging as an international economic player, had to come up with US$1 billion to help Asean countries stabilise their economies,” he said.

Sabah must be self-reliant

Yong also said that as a member of the National Economic Action Council (NEAC) chaired by the then prime minster Dr Mahathir Mohamad, and as chairman of the Sabah Economic Action Council formed specifically to face the Asian financial crisis, he participated in the crisis management of the time.

“I learnt that Sabah must be economically prosperous, must have huge reserves to face any future crisis and be financially self-reliant.

“We have to depart from the culture of wealth distribution to wealth creation.

“With the support of the people of Sabah and a strong mandate for SAPP, the new government of Sabah will bring new hope and a better Sabah for all Malaysians in Sabah,” he said.

Earlier, Yong also said that based on the economics of the allocation of scare resources to maximum effect, SAPP aims to achieve economic prosperity and financial self-reliance for Sabah.

“The Economic Plan we launch serves to lay out the roadmap to a prosperous Sabah based on wealth creation for the people and empowerment of the business community.

“Wealth must be created before it can be distributed. The engine of growth is the business community.

“The business community must be empowered and enabled to generate economic growth through investments, trade and innovation and productivity.

“We save for the future and invest in economic production. SAPP has confidence that Sabah can once again become the premier state in Malaysia,” he said.