Sabahans face tough year ahead

The eastern seaboard of Sabah has rich natural resources and is capable of attracting a large number of tourists and investors if there’s better security.

KOTA KINABALU: Sabah United Chinese Chamber of Commerce (SUCC) President Gan Sau Wah has advised the Sabah Government, the people and the business community, in a New Year message, to prepare themselves for the coming “economic winter” by cutting costs and changing business models. “The international community had been experiencing a turbulent political, military and socio-economic year in 2015. The economic and business environments are expected to be more challenging in 2016.”

“The United States’ interest rate hike, China’s economic slowdown and plummeting global oil prices have also affected the Malaysian economy.”

Gan pointed out that crude oil price has dropped from USD100 per barrel to USD35 per barrel. “The Federal Government, as one result, would have to revise once again its Budget 2016 announced in late October last year.”

Alternatively, he added, if global crude oil prices rebound as expected in the near future, “it can help ease our current economic predicament as we are an oil-producing nation, although a net oil importer.”

“In the long run, we must diversify away from our current dependence on crude oil revenue.”

He declines to hazard a guess on how the impact of various negative factors in the international and domestic environment would affect Sabah and Malaysia. “The people, in particular the business community, must prepare themselves to get through the coming economic winter.”

“The government, people and the business community must be vigilant and smart to survive in the face of adversity.”

He expressed confidence that the private sector backed by an efficient public sector and pro-business government policies would help enable all stakeholders to overcome the coming economic challenges. “As long as the people and the government work hand in hand, we can together overcome the current unfavourable economic situation.”

“A new chapter has begun in 2016. Let us be strong in embracing the challenges ahead. Let’s work together to help overcome any obstacles that stand in our way. That’s the only way to create a better tomorrow.”

On a brighter note, Gan pointed out that the natural resources of Sabah remain largely untapped. “The eastern seaboard of Sabah has rich natural resources and is capable of attracting a large number of tourists and investors.”

He welcomed the Federal Government’s efforts to help the Eastern Sabah Security Command (EssCom) boost security in the Eastern Sabah Security Zone (EssZone). “With better security in the region, the economy of Sabah can be stimulated through the influx of tourists and investors.”