Sunday, July 17, 2016
whole loads of rubbish and the hidden AGENDA is hidden...
http://www.dailyexpress.com.my/read.cfm?NewsID=2134
A world class legacy – thanks to Musa
Published on: Sunday, July 17, 2016
By Datuk John Lo
Like many life situations, the zero-sum approach can be unproductive and at times, detrimental, especially in the realm of economic policies and development.
Zero-sum is basically confrontational like opposition politics.
It is “either/or” or winner takes all. It leads to stakeholders taking overtly strong stance, making little room for compromise.
Also it promotes narrow/tunnel perspectives, preventing the realisation of greater common good.
There is a small number of people who have taken or tend to take this zero-sum approach in their opposition to the proposed multi-billion Ringgit TAED [Tanjong Aru Eco Development]. Here are some pointers to help looking at TAED in a “win-win” perspective.
Ownership of Tanjong Aru Eco Development Sdn Bhd: There is no private shareholder in this company. The company, land and management of the development are completely under the ownership and control of the State Government. The Chief Minister is the chairman of the company.
No ambiguity. Previously, the “Hone Place” development attracted a lot of unhealthy speculations of backhanded manoeuvrings.
These have proven to be false. The “Hone Place” has now been transformed into the “The Perdana Park”.
The iconic soon-to-be completed State Library is also there. TAED can be developed into a destination that will contribute for the overall economic and social advancements of Sabah.
Environmental Impact and Reclamation: In recent times, environmental impact has become a great concern which is correct.
The environment consultant for Tanjong Aru Eco Development is DHI Water & Environment (M) Sdn Bhd of the DHI group of Denmark which has a world renowned reputation. Likewise, the master planner/architecture firm of Broadway Malyan.
Both firms’ credentials are available on Google. Relevant Government officials will no doubt go through the environment impact study by DHI consultant with a fine toothcomb. Likewise, the Board of Directors of TAED will want the best for the environment too.
Some objectors have voiced great concern on TAED’s massive reclamation.
Compared to the reclamation undertaken in other countries, the TAED reclamation is relatively very insignificant.
So let us not reject TAED by using reclamation as a reason. Reclamations cannot be all negative.
Massive reclamations have been done the world over all the time, particularly in advanced countries.
These countries have used reclamations to their great economic and social advantage.
The most well-known case is Holland which has 17pc of its total land area from reclamation and lakes for centuries.
Holland’s total reclaimed land is about 7,000 sq. km!
The Dutch will be proud to tell you that “God created the world. The Dutch created Holland”.
Holland’s national survival has hinged on reclaimed land.
Singapore has 22pc of her total land area from reclamation and has built a whole myriad of economic and recreational facilities on the reclaimed land like the Marina Financial Centre, Garden by the Bay, Marina Golf Course and the Marina Sands Hotels.
Reclaimed land at the 360-hectare Marina Financial Centre is one of the most expensive in the world.
A very substantial portion of Singapore’s economy [also large number of people working] is now being produced on reclaimed land.
Denmark and Dubai have also undertaken major reclamations. The world’s first 6 star Burj Al Arab Jumeirah resort has been built on reclaimed land in the sea.
USA which is properly the leading country in conservation has a dedicated “US Reclamation Bureau” which is a Federal Agency.
This Bureau speaks for itself of the importance of reclamation in the US economy. Obvious from these examples, we should not advocate no reclamation on TAED or any other projects in Sabah.
The issue is NOT “DON’T RECLAIM” BUT “HOW TO DO IT RIGHT”. Wrong to deprive ourselves and our future generations of the great economic and social opportunities from reclamation at Tanjong Aru.
The economic potentials of TAED, which I will revert, can be the biggest tourism contributor to achieving the vision of Datuk Musa’s Halatuju and Sabah’s tourism industry.
TAED – “MISSING LINK” for Sabah becoming a Full-fledged Tourism Destination: Sabah’s tourism has achieved a lot. But we cannot stay stagnant. Hard as it may be for us to swallow but Sabah is no Bali or Phuket yet. Though Sabah has many tourism potentials, we are still a small player in comparison to some of the regional better destinations. For starters, Sabah does not even have a world class full-fledged integrated tourism destination up to now. We may have two Shangri-Las or a Sutera Harbour but these are hardly enough.
TAED will be Sabah’s first A-Z integrated tourism destination with world class facilities.
Together with SICC [Sabah International Convention Centre], Sabah will be very well placed to attract many more high-end FITs [Free Independent Tourists] and MICE [Meetings, Incentives, Conventions and Events].
Sabah needs TAED to become a serious tourism player in this region to compete with Thailand and Bali.
I hope TAED will the first of many more to come.
The alternative of not having the equivalent of TAED is that Sabah will likely stay at its present level and at best, more of the same mediocre tourists for years.
Tourism will be neither here nor there. This is not what most Sabahan tourism players want.
Sabah should and must seek to attract more tourists with higher spending power.
The potential of high end market is there for Sabah. TAED can entice them to come to Sabah with its world class facilities.
Take China as example. “According to China Tourism Research Institute, China had 120 million outbound visitors in 2015 and they spent 104.5 billion US dollars, increases of 12pc and 16.7pc compared with 2014.”
The Chinese tourists, on individual basis, have become the biggest spenders in the world, having over taken the Americans and Germans.
Most western countries are going all out to get into the Chinese tourists’ wallets. With China at our door step and we have many attractions that the Chinese will want to enjoy, why do we want to deprive ourselves of this opportunity?
It does not need imagination that Sabah has a very long way to getting our fair shares of the Chinese tourism market.
Good for Sabahans – Good for Tourists: I have always maintained that these two factors are not mutually exclusive of each other.
In fact, they are like identical twins. The world class facilities in TAED are good for Sabahans and can be excellent attractions for tourists.
A broad perspective is required to have a true appreciation of the TAED’s facilities.
Firstly, the combined facilities within TAED hotels of various star rating, the top of which shall be a 6 star and other buildings combined with the enlarged/enhanced Prince Philip Park, improved 1.35 km pubic beach, marina, Greg Norman 18-hole golf course, nearby 9 holes Kinabalu Golf Course, Perdana Park, and Iconic State Library will be world class – as good as any in the world.
There will be a free electric bus service for the public facilities – Prince Philip Park, beaches, retail outlets, water front promenade and cycle lanes.
Secondly, all these facilities provide unique opportunities for recreation and equally important, for Sabahans and residents in KK to entertain and conduct business, especially with foreign businessmen.
In Sabah, we tend to forget the importance of having conducive public facilities to conduct and promote business, especially with foreign businessmen and investors.
Thirdly, TAED as Sabah’s first truly integrated tourism complex will give the critical impetus in promoting Sabah as a tourism destination. We need to remind ourselves that Sabah did not have a major tourism project for more than 20 years.
TAED is long overdue.
Fourthly, good class hotel rooms in TAED will add to Sabah achieving critical mass to cater for high end MICE groups.
Recently, China’s biggest direct sale company wanted to bring in 10,000 persons for incentive.
Musa had the unenviable task of telling them Sabah did not have enough rooms for them.
Revenue lost can be as high as RM40 million for less than one week stay from this group alone!
Imagine how many businesses will benefit from the cash injection of groups like this one.
Fifthly, TAED will contribute to the expansion of Sabah’s GDP and better income for many Sabahans.
Last not least, future generations of Sabahans will be proud of TAED. The name Tanjong Aru will acquire a new meaning, synonymous with world class facilities. All these are within minutes by car! The public facilities in TAED will be free.
Potential Economic Impacts of Tanjong Aru Eco Development: Like Singapore’s Marina Bay Sand and other integrated tourism resorts, there are immediate and long term economic impacts of TAED.
Also tangible and intangible ones too. The professionals [architects, engineers, QS etc], contractors, ready mix, brick manufacturers and building materials suppliers especially Sabah Cement Industry will receive immediate benefits from pre and during construction.
TAED will create a building boom in KK. Some Sabah professionals after their involvement in TAED as local consultants will gain enough experience and credentials for them to venture outside Sabah.
There are 5 hotels which will have about 1,800 rooms. There are already active expressions of interest from international hotel chains wanting to invest and/or manage these hotels.
On average the hotels, when fully operational with good room occupancy will have of turnover of more than RM100 million and will generate some RM30m to RM40m profit at prevailing scenario.
The multiplier effects from these financial figures will be very substantial. Each hotel will have 400 to 600 employees and executives.
Total estimated turnover for the hotels: RM500 to RM600m Total estimated gross profit:RM150m to RM200m.
Estimated employment: 2,000persons. For those parents who worry about children not finding jobs, here is your answer.
For those who want more business opportunities, here is your answer.
The indirect employment can be as much as 10,000 persons from the humble and often forgotten fishermen, vegetable/ fruit farmers, taxi drivers [including Uber!] to handicraft makers and many other trades.
This what can happen with 1 successful TAED. Imagine if there are more.
When fully operational, TAED’s capacity to generate cash flow into the Sabah economy can be RM1 billion or more each year.
Owners of land that has tourism potentials will reap substantial appreciation in land value, too. Example is Bali where beach front property suitable for tourism can easily fetch RM10m an acre. It has happened in Bali. It can happen in KK.
TAED’s roll down economic effects /spin offs will create far reaching economic benefits for a wide spectrum of Sabahans.
TAED can show the way for Sabahans to start small/medium boutique hotels on beach front properties down south to Papar and up north to Paka Beach.
TAED will attract some sizeable direct investments, especially in hotels. It will also spur other investments into Sabah when businessmen coming to TAED for MICE or holidays, will be encouraged by Sabah’s attractive investment opportunities.
Singapore has this same experience in the early days. The Singapore Tourism Board, up to today, is under the Ministry of Trade and Industry. No tourism ministry there!
TAED will attract more airlines to Kota Kinabalu. These airlines will fly in more FITs. For now, rooms and tourism facilities are the limiting factors for them.
The first to response, I expect, will be the Chinese airlines. The rich Chinese will love Sabah if we have world class comforts to pamper and indulge them.
Datuk Musa is Best Person to Drive TAED to Successful Completion: Unlike Government funded projects which have no commercial consideration. With an estimated cost of almost RM4 billion at today’s price will require a high degree of business acuity and political astuteness in sourcing/managing funding, to see it to its timely completion including attracting the right sort of investors for TAED.
It’s a high-complexity project. Physical construction of TAED is only 30pc. Biggest challenge is to get it done within budget, achieve world class destination status and manage TAED successfully and profitably.
Seeing TAED through to its successful completion is “no walk in the park”. With his business back ground and as the Chief Minister, the best person to drive TAED is Datuk Musa.
Most Sabahans, especially those in tourism industry, are imbued with excitement that Datuk Musa is pushing ahead with TAED for it will change Sabah’s tourism landscape.
Objections for the sake of objecting is unhealthy, damaging and regressive. The “negative” people to economic development like TAED are inflicting a great disservice to our society and future generations.
Genuine concerned Sabahans can offer viable and constructive alternatives to make TAED better.
TAED will be the forerunner of more employment, more economic/business opportunities, more family/social fulfilments.
Future generations will be thankful for TAED’s windows of opportunities. TAED, scheduled to commence construction in 1st Q 2016, will be a remarkable milestone towards the realisation of the tourism pillar of Halatuju.
This TAED initiative by Musa is creative, visionary and will become an enduring legacy for Sabah.
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