Timber Revenue Mainstay for Sarawak, Says Dr George Chan
Copyright 2001 BERNAMA THE MALAYSIAN NATIONAL NEWS AGENCY
November 5, 2001
KUCHING, Nov 5 (Bernama) -- Timber, the oldest industry in Sarawak, will continue to be the revenue mainstay for the state, contributing RM839 million to the state coffers next year, Deputy Chief Minister Tan Sri Dr George Chan said.
He said the amount accounted for 37 per cent of the total state revenue next year and the contribution is mainly in the form of forest royalty.
"Export of logs is expected to be sluggish owing to the economic slowdown in major consumer countries like Japan and the United States and due to increasing competition from other producers," he said when tabling the RM3.17-billion 2002 Budget at the State Legislative Assembly today. Dr Chan said oil and gas are expected to generate RM524 million or 23 per cent of the projected revenue for next year.
He said revenue from oil and gas was lower as compared to RM735 million this year because the price of the commodity was not as high as in 1999 and 2001.
Dr Chan, who is also State Finance Minister, said revenue derived from dividends and interest makes up about RM381 million or 17 per cent of the total revenue in next year's budget.
"Dividends from state-owned companies and other investments are conservatively expected to yield RM253 million and interest earned from fixed deposits is projected to produce only RM97 million as the interest rate is expected to remain low," he said.
Dr Chan also said land premium is expected to contribute RM180 million and various federal grants and reimbursable funds amounted to RM78 million.
"Demand for industrial land is still very high and thus contributing to the good income," he said.
He said the state is expected to earn only RM46 million mainly from sales tax of lottery tickets and RM10 million from palm oil and crude palm kernel oil.