Berita IDSVol.20

Jun 2005 - Jun 2006

Good governance practices: Towards excellence

Since taking office in 2003, Malaysia’s Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi, has made governance a priority issue under his new administration.
As governance and the performance of government linked companies (GLCs) and statutory bodies (SBs) are closely related, this led the government to undertake a GLC and SB transformation programme, culminating in the unveiling of Malaysia’s Transformation Manual on 29 July 2005 by the Prime Minister.
As part of Malaysia, it is important that GLCs and SBs in Sabah take cognisance of these developments at the national level, and take appropriate steps to align their own transformation efforts. At the state level, the Sabah state government is already taking up the issue of governance under the State Economic Action Council (SEAC), which is chaired by the Chief Minister of Sabah, Datuk Musa Haji Aman.
To facilitate this initiative, a two-day conference entitled Good Governance Practices – Key to Excellence was held at Magellan Sutera, Sutera Harbour Resort, Kota Kinabalu on 17-18 January 2006. The conference was jointly organised by the Sabah Economic Action Council (SEAC) Working Committee on Governance and IDS (SEAC’s secretariat) in collaboration with the State Ministry of Finance, the State Public Sector Training Institute (INSAN), the Ceremonial and Protocol Division of the Chief Minister’s Department, and Ernst and Young.
The conference was officiated by the Deputy Chief Minister cum Minister of Rural Development, Datuk Seri Panglima Joseph Pairin Kitingan on behalf of the Chief Minister of Sabah, Datuk Musa Haji Aman.
The objectives of the conference were to:
•provide an overview of the current state of affairs in Sabah, in the context of GLCs and SBs performance and practices;
•elucidate on the principles of good governance as they apply to GLCs and SBs;
•highlight the roles and responsibilities of board members of GLCs and SBs; and
•explain the principles of risk management in the context of GLCs and SBs.
In his keynote address delivered by Datuk Seri Panglima Joseph Pairin, the Chief Minister said that there is a need for the State to have a clear strategic focus and an efficient operating framework to direct and manage resources, and continue with development efforts in order to meet the new economic reality and increasing demands of market players and the populace in general.
As such, he urged all ministries concerned, as well as GLCs and SBs to incorporate the objectives defined under the Halatuju into their respective strategic development plan. He added that they must also review and adopt good governance processes as the operating framework to enhance efficiency whilst at the same time mitigate risks and wastage.
The Chief Minister said that changes that should be adopted by the public and private sectors must be all encompassing and far-reaching, which include making integrity and transparency a hallmark in and out of the workplace apart from becoming more efficient. In this connection, he said that any governmental regulations and departmental directives that are incompatible with the principles of good governance need to be streamlined.
The Chief Minister added that confidence in the ability of State to achieve real progress and prosperity would greatly affect its competitiveness to attract investment funds from both local and international market players.
In line with the federal government’s initiatives to transform GLCs in the country, the Chief Minister said that the State government would adopt all the measures and execute them within the same established milestones. He added that the State would also consider implementing other additional measures required that were unique to Sabah.
The two-day conference was divided into five sessions, in which eight working papers were presented as follows:
Session I – Meeting Challenges of New Era
Paper 1: Accountability in the Public Sector — Current Status, by Tan Sri Dr. Hadenan bin A. Jalil, Auditor General Malaysia, National Audit Department, Malaysia.
Paper 2: Why Corporate Governance?, by Dato’ Seri Megat Najmuddin bin Haji Megat Khas, President, Malaysian Institute of Corporate Governance.
Session II – Responsibilities of the Board of Directors
Paper 3: Adaptation of the Principles and Best Practices under the Code for Application in GLC and Statutory Bodies, by Mr. Tom Chong Yew Hoong, Partner, Ernst & Young.
Session III – Cutting Edge Management Tools
Paper 4: Directors’ Duties to Exercise Skill and Care — The Emerging Standards, by Tuan Hj. Abdul Kadir bin Hj. Md. Kassim, Partner, Messrs. Kadir, Andri & Partners.
Paper 5: Integrity as a Necessity, by Datuk Dr. Sulaiman Mahbob, President, Malaysian Institute of Integrity (IIM).
Paper 6: Transforming GLCs, by Datu Vasco Sabat Singkang, General Manager, SarawakLand Consolidation & Rehabilitation Authority.
Session IV – Lessons Learnt
Paper 7: Enterprise Risk Management, by Mr. Petrus Gimbad, Executive Director, Ernst & Young.
Session V – Next Steps
Paper 8: Strategic Framework: Key to Excellence, by Datuk Hj. Yusoff Datuk Hj. Mohd. Kassim, Permanent Secretary, Ministry of Finance , Sabah
Overall, the two-day conference, which was attended by about 200 participants comprising mainly members of the Board of Directors of GLCs and SBs in Sabah, has achieved its objectives.
The paper presentations were well received by participants who took part in lively discussions during the questions and answers period at the end of each session as well as the breakout group sessions.
Participants were assured that the proposals and recommendations put forward would be given due consideration to be submitted to the main committee of the SEAC.
The conference was closed by Datuk K.Y. Mustafa, State Secretary of Sabah.— Janet Lupi and Richard T. Koh

Optimising traditional knowledge: The way forward

The Institute for Development Studies (Sabah), IDS has so far organized four seminars on ethnobotany. The seminars, held at different locations in the state, were sponsored by the Konrad Adenauer Foundation, of Germany. Feeback from these seminars has indicated the need to address issues and challenges pertaining to the optimisation and management of traditional knowledge.
Ideas forwarded by participants also suggested the need to develop traditional knowledge and the herbal industry in line with the halatuju agenda.
The first ethnobotany seminar touched on the bio-prospecting issue. Subsequent seminars discussed other issues on ethnobotany such as documentation, bio-piracy and the traditional healers and their practices. Preservation and commercialization of the herbal and medicinal plants were also highlighted throughout these seminars.
At the conclusion of the fourth seminar, it was agreed that the way forward for traditional knowledge needed to be mapped and ethnobotanical issues, resolved. The compilation of Sabah’s very own pharmacopoeia was considered to be a good starting point. Another proposal was to establish HeritageAcademy (Akademi Warisan) as an avenue for the collection and documentation of the traditional knowledge of various indigenous people of Sabah. This could also serve as a one-stop centre for local and foreign researchers to learn, understand and acquire knowledge of the indigenous people’s culture and way of life, especially the role as the ‘guardian of the forest’.
The use of biotechnology and know how could also strengthen the herbal industry and highlight the significance of the traditional knowledge. As the Sabah Agro-Industrial Precinct (SAIP) focuses on biotechnology, the HeritageAcademy fits in well in its objective to optimise the traditional knowledge, which nonetheless requires support from many quarters including the State government, NGOs, the herbal industry, and the stakeholders.
With this in mind, a two-day seminar entitled Ethnobotany: Optimizing Traditional Knowledge – The Way Forward was organized by the Institute for Development Studies (Sabah) and funded by Konrad Adenauer Foundation, Germany.
The seminar was held at Sandakan Hotel, in Sandakan on 15 December 2005. Participants were taken to a tour of the Ulu Dusun Agriculture Research Station and Sepilok Forest Research Centre on the following day.
The seminar was aimed primarily to create awareness and disseminate information on Sabah’s rich ethnobotanical heritage, and to solicit feedback on issues and challenges pertaining to ethnobotany especially in optimizing traditional knowledge and practices. It was also to share experiences in the collection and documentation of traditional healing information as well as the cultivation of medicinal and herbal plants.
Member of Parliament for Kinabatangan, Datuk Bung Moktar Radin who officiated at the opening of the seminar said the medicinal and herb industry should be developed to complement the palm oil and timber industries.
“Sabah’s indigenous communities have inherited a wealth of knowledge on folk medicine that is not only beneficial for both physical and spiritual well-being but also promotes sustainable use of forest resources,” he added.
Datuk Bung Moktar also said the development of modern pharmaceutical products based on the knowledge and use of herbal and medicinal plants was in line with the government’s aspiration, as stated in the National Biotechnology Policy launched by the Prime Minister, Datuk Seri Abdullah Ahmad Badawi in April 2005.
Earlier in his welcoming address, IDS Chairman, Tan Sri Pandikar Amin Hj. Mulia said the seminar was timely to draw up concrete approaches to deal with ethnobotanical issues raised during the previous seminars.
He pointed out that concerted efforts must be made to optimize and reap the benefits of traditional knowledge in line with the State government’s halatuju agenda.
The seminar was attended by 100 participants comprising representatives from the relevant government departments and agencies, non-governmental organizations (NGOs), herbal dealers, policy makers, researchers, and academicians.– Mary Sintoh and Justin Janim

US company keen on tea tree oil venture in Sabah

A US agro-chemical company which produces biocides for the protection of crops is keen to work with the Sabah State Government to produce tea tree oil in the state.
President of the Stockton Chemical Corporation, Mr Peter Tirosh conveyed the intention to the Minister of Agriculture and Food Industry, Datuk Abdul Rahim Ismail during a courtesy call on him at his office in Kota Kinabalu on 29 May 2006.
Stockton Chemical Corporation, a company based in Florida, USA, produces herbicides, fungicides and insecticides, which are manufactured from natural plant extracts. The company’s products are supplied to more than 30 countries worldwide, mostly to South America, Central Europe and East Europe.
Mr. Tirosh said tea tree (Melaleuca alternifolia) is a very versatile plant as the oil extract from its leaves and twigs contains about 100 different ingredients. Tea tree oil is used as an ingredient in the manufacture of herbicides, fungicides and insecticides.
“Plant-based biocides have many advantages over the conventional products in that they do not damage water or soil, and they also do not harm beneficial insects, among others,” he added.
Mr Tirosh said Sabah’s climate is very ideal for the planting of tea tree. He said the plant thrived well in tropical climate – hot and humid and a lot of rain – just like the conditions in Sabah.
He added that because of the favourable climate, tea tree grown in Sabah can achieve 40% more yield than its native country, Australia. “In terms of harvesting too, I believe that in Sabah, it is possible to have three harvests in two years, whereas in Australia, it takes 12 months to have one harvest,” he said.
Mr Tirosh said the world market for agro-chemical products was in the region of US$35 billion to US$50 billion a year. “Hence the potential of tea tree oil as an ingredient in the manufacture of agro-chemical products is tremendous,” he said.
Meanwhile, Datuk Rahim thanked Mr Tirosh’s for his interest in working with the state government to produce tea tree oil in Sabah and agreed to explore the cooperation further. He requested IDS to study the scope for possible collaboration between the state government and Stockton Chemical Corporation.
Mr Tirosh was accompanied by two senior officials from Unifect International Pty Ltd of Australia, a company dealing with the supply of tea tree oil. They were the company’s Managing Director, Mr. John S Bax and its Commercial and Technical Director, Mr. Jim Gobert.

Halatuju and Sabah Biotechnology Agenda

The Sabah Economic Action Council (SEAC) and Pemuda UMNO Youth have reaffirmed the potential of agricultural sector in realizing the Halatuju, the state government’s master plan for progress and development of Sabah.
This consensus was reached at the end of a dialogue on Halatuju and Sabah Biotechnology Agenda, which was held at the Institute for Development Studies (Sabah), IDS conference room on 27 September 2005. The dialogue was jointly organized by SEAC and Pemuda UMNO Sabah. IDS is the secretariat to the SEAC.
The dialogue is the first in a series of meetings to explain and discuss the Halatuju agenda.
In his welcoming remarks, IDS Executive Director, Datuk Dr. Mohd. Yaakub Haji Johari said the dialogue served as a platform for interaction between SEAC and the UMNO Youth Sabah. “It was to discuss in greater details about the Halatuju, which was introduced by the Chief Minister Datuk Musa Haji Aman,” he added.
During the dialogue, Dr. Yaakub briefed the participants on the Sabah Biotechnology Action Blueprint, which is part of the development agenda of the Halatuju.
“Sabah, which is rich in biodiversity resources, needs to make a quantum leap into the biotechnology era,” said Dr. Yaakub.
He said the Sabah Biotechnology Action Blueprint was among the steps taken by the government to ensure a systematic development of the biotechnology sector in the state.
“The National Biotechnology Policy unveiled by the Prime Minister recently had further underlined the importance and the urgency to develop this industry,” said Dr. Yaakub.
He said among factors that will ensure Sabah’s success in this field are its abundant agro-biodiversity resources as well as its rich ethno-botanical knowledge and strategic geographical location.
“Besides this, Sabah is also free from pollution. The environment is suitable for the development of biotechnology industry which needs a clean and unpolluted environment. At the same time, agencies under the Ministry of Agriculture and Food Development have the experience in the usage of biotechnology.
Earlier, SEAC Executive Committee member, Encik Mohd Hasnol Datuk Ayub said UMNO Youth has an important role to play in realizing the objectives of Halatuju.
“Cooperation between SEAC and UMNO Youth is crucial to ensure the aspiration of the government in developing the state and the people as outlined in the Halatuju. This is because SEAC believes that the Pemuda, being the next echelon of leaders can help explain Halatuju to the people,” said Hasnol. – Hasnah Samsudin

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