Kuching: The proposed relocation of the Pending Industrial Estate is expected to involve substantial costs, prompting calls for government assistance and clearer policies on land lease renewals for affected industrial operators.
Speaking during today’s Sarawak Legislative Assembly sitting, ADUN for Padungan Chong Chieng Jen called on the government to first reassure affected operators, address their concerns, and provide concrete assistance before proceeding with any relocation exercise.
“Many business operators are deeply worried about the relocation proposal, and if the government proceeds with a large-scale relocation exercise, the costs involved could amount to hundreds of millions or even billions of ringgit.
“We hope the government can provide relocation assistance grants to the affected industrial players to help ease their heavy financial burden. During the relocation period, they will not be able to operate and generate income, while waiting for new factories to be built and equipment installed at the new site will also take a long time,” he said.
Chong, who is also DAP Sarawak Chairman, voiced support for ADUN for Pending, Violet Yong, in raising issues faced by operators, stressing that many businesses are anxious over the uncertainty surrounding the relocation plan.
In addition to relocation costs, he raised concerns about land leases, noting that some operators have only about 20 years remaining on their land titles.
“Many factory owners had informed me that their land leases would expire in about 20 years. Under the existing Sarawak Land Code, ownership of the land would revert to the government once the lease expires, causing serious concern among operators over their property rights and discouraging future investments,” he said while cautioning.
During the winding-up speech by Deputy Premier Datuk Amar Awang Tengah Ali Hasan, Chong also urged the government to direct the Land and Survey Department to expedite the fair processing of lease renewal applications, as in other areas, to provide greater investor certainty.
In response, Awang Tengah said the government would work towards a “win-win” solution before implementing any relocation plan, emphasising that the interests of small and medium enterprises would be taken into account given their contribution to Sarawak’s economic development.
