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| Photo by Greg Cope |
| Chief Minister, YAB Datuk
Patinggi Tan Sri Dr. Haji Abdul Taib Mahmud
leads Sarawak’s environmentally-conscious
development. |
With the goal of turning Sarawak into a knowledge
economy-based state by 2020, its government is utilizing
a wide-ranging development plan to spur industrialization
while diversifying the state’s economy.
Certain industries, and the subsequent broadening
of industrial zones, have been targeted for various
towns throughout the vast state. For example, the
capital Kuching is gearing towards high-tech interests,
while Bintulu is more centered on heavy industry activities,
such as aluminum smelting. Sibu, the capital of Sarawak’s
middle region, is focusing on timber, boat building,
palm oil industries, and deep-sea fishing.
Sarawak’s Chief Minister, YAB Datuk Patinggi
Tan Sri Dr. Haji Abdul Taib Mahmud, is the driving
force behind the region’s modernization and adoption
of technology. A father figure for his constituency,
Sarawak’s citizens praise his determination to
preserve Sarawak’s unique cultural heritage and
environmental expanse.
“Development is planned to retain the environmental
quality,” says Taib. “Balance is sought
between environmental protection, industrial growth,
agricultural development, services, and manufacturing.”
Taib is putting foremost emphasis on high-tech and
biotech development.
Because of the land’s incredible bio-diversity,
ranked among the top four most diverse in the world,
a great potential exists for further investments in
the pharmaceuticals and cosmetics industries. “We
are asking ourselves, ‘What were traditional
prescriptions for diseases in [the] olden days?’
These provide good clues” on where to concentrate
research.
“We have introduced laws to encourage, yet protect,
exploration into our natural parks,” says Taib.
“Five percent of our land is now reserved for
bio-diversity research, and a bio-diversity center
is being established to coordinate studies in jungles
and forests among flora and fauna.” A canopy
study is scheduled for this month.
An international medical center is also being built
that will focus on, among other things, renal disease,
heart and heart valve treatment, and cancer, with
attention placed on traditional medicine and healing
techniques.
Sarawak MediChem Pharmaceuticals, a joint venture
between the government of Sarawak and a Chicago-based
pharmaceuticals company, was launched in 1996 after
a National Cancer Institute (NCI) - National Institutes
of Health (NIH) research team identified a local compound,
calanolide-A, that exhibits HIV-blocking characteristics.
The compound was first located in a nature park just
40 minutes from Kuching.
After the successful completion of Phase I trials,
the compound has now entered early Phase II trials,
“to see if boosted levels of calanolide-A can
give greater levels of viral reduction,” says
Tuah Jenta, Vice President, Strategic Alliances and
Co-Treasurer of Sarawak MediChem.
The joint venture is also working on cures for Hepatitis
B and diabetes. “Because the occurrence of renal
disease is growing in developing countries in this
region, we are focusing on that as well,” says
Taib.
Sarawak MediChem is actively seeking new sources of
funding and trial participants.
Another government-sponsored venture is anchoring
the burgeoning high-tech sector.
1st Silicon, a 200mm wafer foundry, was established
in 1998 with a $1 billion government investment.
The company, headquartered in Kuching and with a U.S.
office in San Jose, California, utilizes a very advanced
process, incorporating state-of-the-art technology,
environmental and efficiency standards, to produce
silicon chips that supply the semiconductor industry.
“Our work requires fairly sophisticated infrastructure,
which we can find here,” says 1st Silicon CEO,
Dr. W. John Nelson.
The 126,000 square feet facility currently produces
11,000 wafers per month, but has the capability to
produce 30,000. Each wafer, approximately one thousandth
the width of a human hair, requires between 450 and
500 steps in product build-up. Between 20 and 40 days
are needed to produce each wafer.
As of third quarter 2002, 1st Silicon was shipping
its wafers to 20 customers, mainly in the mobile phone,
DVD player, and gaming industries.
The company is supplied by many American companies
such as Varian, based in San Francisco, which have
set up local offices and infrastructure to support
1st Silicon’s business.
1st Silicon’s equipment comes primarily from
Japan and the U.S. One machine can cost around $7
million. The company will be spending $150 million
this year on additional capital investments.
Open since 2001, 1st Silicon now employs 850, less
than 10 percent of whom are expatriates. “Most
of our local managers were educated in the United
Kingdom, Australia, New Zealand, and the U.S.,”
says Nelson. “The local staff are hard-working
and enthusiastic to see success.”
“Within the region, Malaysia is a very competitive
stepping stone,” says Nelson. “The stable
and dedicated workforce allows you to build a stable
human infrastructure.”
1st Silicon also provides several support services,
such as design services, mask tooling, and wafer sort,
assembly and final test.
“Intellectual property is protected here,”
says Nelson. There is no danger that someone will
setup a copycat facility across the street.”
High-tech, biotech, and other investments in Sarawak
are well serviced by excellent transportation and
communications infrastructure systems. “Investment
in infrastructure is picking up quite well. Broadband
development is underway,” says Taib.
Sarawak’s human capital resources are also top-notch.
Sarawak’s students have the highest number of
invention awards among students throughout Malaysia.
The state has two international schools, one of which,
Lodge (primary and secondary), is among the top 10
ranked schools in the country. A second international
school follows the Australian curriculum.
With just one major university in Sarawak, “there
is a great thirst for education,” says Taib.
Since there are not enough facilities in the region,
the government is currently looking into information
technology (IT) applications for tele-education programs.
A visit to a local clinic reveals top-notch medical
care. The construction of 10 hospitals is planned
over the next several years. Sarawak also expects
to be connected to the Mayo clinic via telemedicine
links.
With the 2003/4 completion of the Bakun dam project,
over 1,000 KW of hydroelectric power will be available,
which far exceeds the state’s current demands.
This surplus is expected to lower existing electricity
rates, making it increasingly easy for potential investors
in industry.
In addition, real estate and resort developers may
be interested to hear that Miri, Sarawak’s second
largest city, until now known as an oil town, is planning
on upgrading its facilities in line with being a premier
resort destination by 2005.
Miri currently receives one million tourists annually,
but a recently discovered, amazing coral reef promises
to put Miri on the map as a premier scuba diving location
with an undersea park. Two-hundred fifty thousand
residents currently inhabit Miri year-round.
To spur development, the government will be offering
several incentives such as longer tax holidays and
high tax credits. It will seek to preserve the region’s
natural heritage as its first priority. |
