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Anger mounts over RM127b refinery for Johor (not Borneo States)

May 17, 2012

Raymond Tombung | May 17, 2012 (FMT)

Why is a RM127 billion refinery being built in Johor when it is not an oil-producing state?

KOTA KINABALU: Sabah State Reform Party (STAR) is blowing hot over the planned RM127 billion oil refinery in Johor, claiming it would be an “incalculable” economic loss to Sabah.
Describing the federal government’s decision as “unreasonable” STAR chairman Jeffrey Kitingan said: “If the federal government was sincere about developing the Borneo states which have contributed tremendously to the national coffer by giving 95% of its oil all these years, it would have decided to build the refinery in Sabah or Sarawak.
“As it is, incalculable losses will be incurred against us [with the refinery being built in Johor]. In the long term, the loss will amount to trillions of ringgits!”
Jeffrey said had the federal government decided to site the refinery in Sabah, it would be the biggest project ever implemented for Sabah and Sarawak.
“Just imagine: the refinery will be processing 300,000 barrels per day while another ‘nearby’ refinery will be built by a Taiwanese firm to process 150,000 barrels per day.
“This will come to a total of 450,000 barrels per day, which is a substantial percentage of the nation’s crude oil production of 700,000 barrels per day.
“And that’s the other unbelievable arrangement about the whole thing. The federal government finds it fit to implement two hyper-projects in the same vicinity.
“I refuse to believe they [federal government] do not see the economic prudence of locating at least the second refinery across the South China Sea for the sake of fairness in economic cake sharing,” he said.
Jeffrey added that it was obvious that the federal government was intent on making Johor “a super-giant” next to Singapore.
“Is the federal government so intent on making Johor a super-giant next to Singapore that it is purposefully pouring in hundreds of billions into Johor, on top of the billions for the mammoth development for Iskandar Malaysia supercity?”

‘Slap in Borneo’s face’
He said with this latest misstep, the Barisan Nasional government has poured insults on the concept of 1Malaysia and the so-called Economic Transformation Programme (ETP).
According to Jeffrey, what is obvious now is that Sabah is seen only as a “supplier of raw resources” to Peninsular Malaysia.
“It is obvious we are just functioning as a supplier of raw resources to the Peninsula, which means tremendous losses to us.
“Just imagine the untold losses and missed economic growths we could generate from massive employment, trickle-down effects, infrastructural developments, technology transfers and downstream processing.
“All this could turn the Borneo states [Sabah and Sarawak] into vibrant economic hubs, but the federal government simply cannot help behaving like a hungry colonialist.
“It’s just like what the British did when Sabah and Sarawak were colonies. We are now witnessing how most of our resources are going to the Peninsula.
“This is truly a painful slap in the face of the Borneo states, ” Jeffrey said.

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4 Comments leave one →
  1. KL Man permalink
    May 17, 2012 3:25 am

    Sometimes I really dont understand what our fellow Sabahan/Sarawakians think…….no matter how bad you treat them, how poor,masih sokong kuat kepada bn. They dont think for their own poor children’s future but instead think care for their superwealthy politicians’ future and their overseas-education spoilt kids.What a paradox! Only Jeffrey has awaken, the rest masih tidur lagi.Let it be…like beatles said.

  2. Larry Jay permalink
    May 17, 2012 9:03 am

    The Sabahans & Sarawakians love to be the worst slaves for UMNO/BN all these years. They will never prosper for the next few generations if they don’t bloody change their sick mindset.

    Its so sad to see that these East Malaysian can be fooled so easily & made to look so stupid & dumb all these while.

    They must be either deaf, dumb, blind, mute or mentally unstable to allow the greedy UMNO/BN to dictate their darkest future.

  3. cheah sk permalink
    May 17, 2012 3:32 pm

    They just sleep through the election and UMNO laugh all the way to the bank.

  4. sputjam permalink
    May 20, 2012 1:39 pm

    Singapore is the biggest refining centre in the world and a centre for oil trading.
    It is also the biggest shipping port in the world. That means if you ship oil from Singapore, there are no extra charges incurred for mobilisation. If you have your refinery in Sabah, the shipowner will charge extra for sailing between Singapore and Sabah.

    Everything in the end, will be decided by dollars and cents.

    But having said that, by building a refinery in Johore, we are actually boosting Singapore’s reputation and strength instead of competing with it.

    They could have built the refinery somewhere in miri, Labuan or KK. Together with Brunei, which will have Two new refineries, one by china and another by pertonas, we can easily design a totally new refinery centre to challenge Singapore.

    Another good place for refinery to challenge Singapore will be Prai, with it’s hinterland which include Myanmar, Bangladesh, Calcutta, northern Sumatra and chennai.

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