The Sarawak Economic Development Corporation (SEDC) was established on 1st March 1972 under the Perbadanan Pembangunan Ekonomi Sarawak Ordinance (Sarawak Cap.35). While SEDC is a statutory body established under the laws of the State of Sarawak, it also comes under the preview of the Federal Government of Malaysia through the Federal Ministry of Finance (MOF) [1] . SEDC's objective is to promote investment and economic development in Sarawak by implementing projects directly or on a joint venture basis in a wide range of industries including agro-food, tourism and leisure, property development, mineral and mining, and construction. SEDC also plays as trust agency in the development of a vibrant Bumiputera Commercial and Industrial Community (BCIC) [2] . The Corporation's investment and activities cover the following key areas:
SEDC plays a pivotal role in Sarawak's tourism and leisure industry. To date, investments totalling more than RM 800 million brought Sarawak's tourism sector crucial infrastructure such as 5 star hotel and world class beach resorts, located at prime tourist areas and business centre in the State capital of Kuching [3] such as:
a. Hotels and Resorts
(1) Riverside Majestic Hotel
(2) Grand Margherita Hotel
(3) Damai Beach Resort
(4) Permai Rainforest Resort
(5) Bukit Saban Resort
(6) Park City Everly Hotel (Miri).
(7) Park City Everly Hotel (Bintulu)
(8) Royal Mulu Resort
(9) Damai Puri Resort and Spa
b. Shopping and Dining
(1) Riverside Shopping Complex
(2) Sarawak Plaza Shopping Complex
(3) Top Spot Food Court
(4) Mango Tree Restaurant
c. Tourist Attractions
(1) Sarawak Cultural Village
(2) Damai Golf and Country Club
(3) Kuching Waterfront
(4) Matang Family Park
d. Leisure and Business
(1) Sara Resorts Sdn Bhd.
(2) Sara Urusharta Sdn Bhd.
(3) Club Asia International
(4) Permata Exhibition Hall
3.1.3 Agro Food Based Development
Livestock
SEDC's investment in agro-based industries extends beyond Sarawak with two cattle farms located at Northern Territory and Queensland Australia [4] .
a. Rosewood Farm. The SEDC owns a 280,000 hectare cattle breeding station in Northern Territory, Australia with 27,000 heads of cattle as of this time.
b. Strathmere Farm. The farm is a 14,711 hectare cattle fattening station at Strathmere-Beardie Aggregation, St George, Queensland, Australia.
c. PPES Ternak Sdn Bhd. The SEDC owns the Karabungan Farm, a 600 hectare cattle farm at Sungai Karabungan near Miri.
Plantation
The agro-based activities also include oil palm plantation, silk farming, fruit orchard and coconut plantation throughout Sarawak. The companies involved in the plantation are:
SOP Karabungan Sdn Bhd.
Sara-HL Plantation Sdn Bhd.
Snibong Fruit Farm
Fisheries
In the rearing of prawns, the companies involved are:
PPES Aqua Sdn Bhd.
Oya Aquaculture Sdn Bhd.
3.1.4 Property Development
Industrial and Residential Premises
Affordable Industrial and Residential Premises for small and medium enterprise are:
Kilang teres, Jalan Bako Kuching
Pusat Tenunan Songket, Kuala Rajang
Semi-detached Factory, Telaga Air Kuching
Ready Built Factories, Mukah
Upper Lanang Housing, Sibu
Bintawa Shops/Residential
3.1.5 Entrepreneur Development
One of SEDC's roles is to spearhead the development of Bumiputera entrepreneurs in commerce and industry. Training programmes and enhancement courses are conducted frequently to equip these entrepreneurs with valuable knowledge and skills in their respective fields.
Rest, Recreational and Commercial Centres
The Rest, Recreational and Commercial Centres are convenient stop-over points at strategic locations with basic facilities and amenities for long distance road users in the State [5] . These centres create business opportunities for the local communities by providing outlets for sales of food, drinks, handicrafts and other products:
Sebangkoi, Sarikei
Mid Layar, Betong
Bekenu, Miri
Kubah Ria Baru, Kuching.
Financial Aid and Loan Schemes
SEDC also caters financial aid and loan schemes [6] such as:
Loan Scheme for Small and Medium Scale Industry (SPIKS)
Putra Capital Fund
Fund For Small Enterprise
Loan Scheme For Women Entrepreneurs
Loan Scheme for Agriculture and Agro-based products
Loan for disadvantaged groups
Micro Funding Scheme
3.1.6 Community Development
Child and Family Development
SEDC's subsidiary, SeDidik Sdn Bhd is a non profit organization with its core business to manage child and family development. A unique provider of comprehensive human development services to children and families in the state, it operates 58 center in the rural and urban area of Sarawak.
Road and Works
SEDC also involved in construction and engineering work by PPES Works Sdn Bhd such as:
Road maintenance
(1) Road Maintenance and Management System
(2) Road upgrading and rehabilitation works
Major construction and engineering projects
(1) Sarawak River Regulation Scheme Project
(2) New Dewan Undangan Negeri Complex
(3) Borneo Convention Center Kuching
(4) Sarawak Islamic Information Center
(5) Swinburne University of Technology, Sarawak
(6) Tanjong Kidurong Suai Bakam Coastal Road
(7) Mukah Coal fired Power Plant
(8) Gerugu Dam Project
3.1.7 Other Investments
Other investments by the SEDC are:
a. CMS Quarries Sdn Bhd- A joint venture company between SEDC and Cahaya Mata Sarawak Berhad. It is the largest producer of crushed stone aggregates in Sarawak for microtonolite, limestone and granite and supplies approximately 30% of all stone aggregates sold within the state. CMS Quarries owns four quarries in Sarawak namely Sebuyau Quarry, Akud Quarry, Stabar Quarry and Penkuari Quarry [7] .
b. CMS Premix Sdn Bhd- A leading producers of asphaltic concrete and bituminous emulsions. Apart from mobile premix plants, premix production facilities are located in Kuching, Sibu, Sarikei, Bintulu and Miri.
Sarawak Concrete Industries Berhad (SCIB)- Manufactures pre-cast concrete products such as culverts and spun piles.
d. IDS Sebor Sdn Bhd- Sole distributor for than 35 well known brand names in consumer, electrical and electronics, industrial agriculture and chemical products in Sarawak.
e. Syarikat Sebangun Sdn Bhd- Export of silica sand for production of glass products sodium and other products.
3.2 THE BAKUN HYDRO ELECTRICAL PROJECT (HEP), SARAWAK, MALAYSIA
3.2.1 Background
The Government of Malaysia through the Federal cabinet on 8th September 1993 gave approval to the proposed development of Bakun Hydro Electrical Project (BHEP) in Sarawak. This was in conjunction with the production of the general "Electricity Master Plan for Sarawak" undertaken by the Sarawak Electricity Supply Company (SESCO) [8] . In 1979, 155 potential dam sites with a total capacity of 80 000 MW were identified. There were at Bakun, Murum, Pelagus and Baleh, estimated to have the power generating capacity of 2 400 MW, 900 MW, 770 MW and 900 Mw respectively.
3.2.2 Bakun Development
The availability of gas for electricity generation caused the Bakun HEP to lose its status as the least-cost option for Peninsular Malaysia until the year 2000. A review of the project undertaken in 1992 concluded that the project was economically viable and should be implemented, for commissioning by the year 2005. Based on this review, the Government agreed in September 1993 that the project be implemented. The Government invited the State of Sarawak, Tenaga Nasional Berhad (TNB), Sarawak Electricity Supply Corporation (SESCO), Malaysia Mining Corporation Bhd (MMC) and others to participate in this joint-venture company to be led by Ekran Berhad. This joint venture company was called Bakun Hydro Corporation (BHC). Due to the economic crisis during 1997-98, this Bakun HEP has been undertaken by the Government's own company. Currently, the project manager is Sarawak Hidro Sdn Bhd, which was formerly known as Bakun Hidro Sdn Bhd [9] .
3.2.3 Economy Development to Malaysia
The Bakun project contribute significantly towards strengthening the foreign exchange position of Malaysia, as the project will help reduce the import of fossil fuel for power generation. The Bakun HEP is expected to emerge as a potent force that can accelerate the socio-economic development of the state of Sarawak and the country within a period that would not be possible if Bakun does not come into existence [10] . The spin-off effects Bakun will have on smaller industries and businesses are equally important.
Malaysia Government believes that the Bakun HEP is needed to satisfy the long-term power and energy demand of this country. The availability of renewable, efficient and less polluting energy resources should be exploited to achieve a balanced long-term energy-mix plan for Malaysia. According to the EIA for the Bakun HEP, there are three main project components: firstly, the Bakun access road, secondly, the water reservoir and dam site, and thirdly, the power transmission lines.
3.2.4 Conclusion
Bakun HEP is big project that will really help to uplift the socio-economic development in Sarawak. The additional energy it can produce will help to leaf frog important economical projects in the area particularly on the prospects of foreign investors. But various negative effects should also be given consideration particularly on the impact on the environment. However, it became important to accept the continuity of the project and thus developments which are not in harmony with the environment because of the huge amount of natural resources that have already been used [11] . It would be a great double loss if the project was suddenly stopped when the environmental damage has already been done.
3.3 PETROLEUM IN SARAWAK
Sarawak has an abundance of natural resources (oil and gas) and the primary sectors that drive the state's government revenue. LNG and petroleum have provided the mainstay of the Malaysia federal government's economy for decades while State of Sarawak gets a 5% royalty from it. This royalty is used for infrastructure development in the Sarawak. The audited account in 2008 indicated a bulk of the RM1.7 billion worth of dividends received by the state government was mainly from the oil & gas companies [12] . These companies include Malaysia LNG Sdn Bhd (MLNG), MLNG 2 and MLNG 3 in which the government of Sarawak has minority stakes. The Star Online reported by Sharidan M. Ali on Tuesday February 15, 2011, that Petroliam Nasional Bhd (Petronas) found the new block Oil reserves in Sarawak. Some 100 million barrels of oil and 2.8 trillion standard cubic feet (tscf) of natural gas were discovered from two exploration blocks there. "These activities, especially if they result in discoveries, are expected to boost business opportunities in the oil and gas industry and will promote upstream investment in the country," Petronas said in a press statement. The recent findings of new oil and gas fields by Petronas offshore Sarawak are expected to boost the country's reserves because total average production for oil and gas has been declining for the past two years. A research report said the new oil and gas finds represent 2% of oil reserves and 3% of natural gas reserves. "These new discoveries underpin our optimism for the industry, as (they) prolong the lifespan of Malaysian reserves - 24 years for crude oil and 38 years for natural gas," said the report [13] . Those new findings give the state a good opportunity to boost up their economy and also create many job opportunities. In addition, the Sarawak Corridor of Renewable Energy (SCORE), launched on 11 February 2008, also focus on oil industry for development.
3.4 Infrastructure of the State of Sarawak
3.4.1 Background
Sarawak being the largest State of Malaysia with Kuching as its Administrative Capital has a population of about 2.4 million. The state's Capital Kuching alone has a population of about 600,000. The total area of Sarawak is about 124,450 km2 out of which Kuching takes up an area of about 431km2. These basic data about Sarawak would enable to catch a glimpse of the infrastructure requirement thereof. The Ministry of Infrastructure Development and Communications shoulders the vital responsibility of maintaining and developing the Master Plan of the infrastructure requirement of Sarawak. In order to discuss the topic of Infrastructure of Sarawak, it was thought appropriate to further divide the topic into following areas for the ease of understanding.
Transportation System
Air
Land
Riverine
International and Coastal Shipping
Telecommunication
Education
Healthcare Facilities
Water Supply
Waste Water Management
Electricity Generation
Transportation System
Sarawak is thus far equipped with three kinds of transportation systems, namely Land, Air and Water meeting the demands of its populace. The current development of all three systems are briefly discussed as follows.
Land Transportation: All divisions and districts in Sarawak are linked by road. The Trans-Borneo Highway runs from Lundu in the Kuching Division all the way to Merapok in the Limbang Division. In the 1960s, Sarawak had barely 300 miles of sealed roads, but by now, that figure has increased to more than 11,368 km.
Around 72% of these roads are bitumen surfaced, while 22% of them still remain to be gravel paths and the rest are just leveled tracks. The road system within the State is constantly being upgraded and public transport systems improved to cater for increasing traffic. In 1996, the number of registered vehicles in the state was 41,817 while by 2001; this total had grown to 717,245.
Recently, a sum of RM 5.5 billion was allocated for the widening of the road networks connecting Sarawak's major towns.
Air Transportation: Sarawak is blessed with one International Airport namely Kuching International Airport (KIA) while three other regional airports; i.e. Miri, Sibu and Bintulu comprehensively strengthen its capacity of air transportation. KIA is the main gateway into Sarawak and is situated 11 km south of Kuching City. KIA Terminal Complex consists of nine bays (including three bays for B747 & A380 wide-body aircraft), four remote bays (for turboprop aircraft), as well as three new bays at the General Aviation Apron. It is capable of handling five million passengers annually, making it the third busiest airport in Malaysia after Kuala Lumpur International Airport (KLIA) and Kota Kinabalu International Airport.
Miri Airport: The Miri Airport opened in 2005, has the capacity to handle two million passengers annually. It is one of Malaysia's top five busiest airports. Miri Airport is an important gateway to the Northern Region of Sarawak and serves as a hub for interior air services to areas such as Mulu, Mukah, Marudi, Limbang and Lawas.
Sibu Airport: Sibu Airport has a 6,300-square metre terminal and a 1,981-metre long runway. It can accommodate Boeing 737 aircraft. Expansion work costing about RM 136.88 million is currently in progress. Work would be in two simultaneous packages:
a. Extension of the existing passenger terminal building, central utilities building and associated works costing RM 84.44 million
b. Taxiway and car parks, the Department of Civil Aviation building and associated works costing RM 52.44 million.
Bintulu Airport: Bintulu Airport is situated about 23 kilometres from the town centre. It started operations on December 19, 2002. The 2200-metre runway can accommodate B747s.
Short Take-Off and Landing Airports (STOL): STOL airports are located in the State's dense and hilly terrain. They accommodate small fixed wing and helicopter aircraft. STOL airports provide for the needs of passengers and travellers in remote areas and are a lifeline to neighbouring towns. In Sarawak, STOLs are located in Lawas, Marudi, Mukah, Tanjung Manis, Kapit, Belaga, Bario, Long Seridan, Long Lellang, Long Semado, Mulu, Bakelalan and Long Akah.
Riverine Transport System: Rivers are the lifeblood of Sarawak. The state's river transport system has great significance to the large section of Sarawak's population who live in the interior and along the coast. Much of Sarawak's rural population relies on rivers for transportation. Express boat services utilise the many waterways inland to get to rural areas inaccessible by road.
The new Sarawak river taxi is expected to start operating in 2011. The bigger and more comfortable boat, equipped with better safety features, would ply the main route from the Borneo Convention Centre, Kuching (BCCK) to the Kubah Ria food court in Petra Jaya. New jetties would be built along the route, including an RM 4 million jetty at BCCK.
The other major navigable rivers comprise the Sungai Baram, Sungai Kemena, Sungai Tatau, Sungai Limbang, Sungai Lupar, Sungai Sadong, and Sungai Sarawak.
Kuching Port Authority: Kuching Port Authority is the State's premier port served by numerous shipping lines connecting it to regional hub ports. All its terminals are in close proximity to industrial estates to facilitate easy cargo movement. Both its terminals have easy access to highway and coastal routes to all main towns in Sarawak.
Rajang Port Authority: Rajang Port Authority is a riverine port at the heart of the longest river in Sarawak -- the Rajang River. Comprising four centres of operations, Sibu Port is the principal port and convergence centre for collection of goods for the Central Region of Sarawak, providing the vital link of a feeder route to the major ports in Malaysia as well as a port of call for ships from various parts of the world.
The four centres are; Sibu, Sarikei, Tanjung Manis and Sungei Merah.
Miri Port Authority: Miri Port Authority is an important feeder port that links Sarawak's Northern Region's trade to the rest of the world. It is a key player in the development of trade for not only Sarawak's economy but also Malaysia as a whole.
Telecommunication
Telekom Malaysia Berhad (TM); Malaysia's pioneer telecommunications company, has provided telephone facilities throughout the State, including most remote villages via fixed line and wireless services. Most areas in Sarawak also receive cellular telecommunications coverage via various service providers. Reception of terrestrial free-to-air channels is conveniently possible in most major areas in the State. Satellite Television and Radio Operator services too have a state-wide coverage. The State of Sarawak is also easily connectable to global communication networks through both Satellite (via MEASAT) and Internet Broadband Services.
Education
The literacy rate of over 90 per cent maintained in the State of Sarawak speaks volumes of the effectiveness of the existing education system throughout Malaysia. Network of Government and Private educational institutions of primary and secondary standards are functioning across the state.
Early Education: Having recognised the importance of early education, the State Government is committed to the development of preschools. There are plans to establish preschools in rural longhouses and villages to ensure children in these areas get the head start they deserve educationally. Majlis Pembangunan Pendidikan Awal Kanak-Kanak Sarawak (MPAKS) or Sarawak Children's Early Education Development Council looks into all affairs of preschools in the State.
Tertiary Education: Sarawak is one of the country's education hubs with quite a number of public and private institutions of higher learning which are renowned for the quality of service.
Healthcare Facilities
Healthcare Services in Sarawak are provided through 22 hospitals, which are located in major towns. The Sarawak General Hospital is located in Kuching. It offers all Clinical Services to the general public. Three district hospitals in Sibu, Miri and Bintulu offer specialist services, while 16 district hospitals are without specialist services. There are also two special institutions -- Sentosa Hospital and Rajah Charles Brooke Memorial Hospital. Sarawak has 187 rural health clinics that function as 'one-stop' family health centres, providing an integrated service comprising maternal and childcare, general outpatient care and environmental sanitation.
Water Supply
Water supply in Sarawak is readily available and adheres to the international standards of the World Health Organisation (WHO) for drinkable water. Kuching Water Board (KWB) and Sibu Water Board (SWB) are the two Statutory Authorities that responsible for the management and provision of water supply services to Kuching and Sibu respectively, while State-owned LAKU Management Sdn. Bhd. manage the water supplies water to Miri, Bintulu and Limbang. The Sarawak Public Works Department's (JKR Sarawak) Water Supply Branch is responsible for the planning, development, operation and maintenance of water supply services provided to all other areas.
Waste Water Management
The State Sewerage Services Department under the Ministry of Housing and Urban Development is responsible for managing water resources in a sustainable manner.
Wastewater (grey water and black water) from kitchens, bathrooms, wash areas and toilets is collected via a sewer reticulation network and channelled to the treatment plant. The plant will process and treat the wastewater using the activated sludge system. The treated effluent from the plant will comply with necessary standards in keeping with the Environmental Quality Act. The effluent will then be discharged into a constructed wetland before it finally flows into the Sarawak River.
Electricity Generation
Sarawak Energy Berhad (Sarawak Energy) is principally involved in the power and electricity sector. Its wholly-owned subsidiary, Syarikat SESCO Berhad has the right to generate, transmit, distribute and supply electricity throughout the State.
The existing capacity has an energy potential of 28,000 MW of which 20,000 MW are in hydropower and 5,000 MW in coal-fired plants and the remaining 3,000 MW in other energy sources including bio-fuel. Currently 90 percent of the State's electricity demand has been met.
