Township planned near RI border

Township planned near RI border

KUCHING (Reuter): Malaysia's eastern Sarawak state said yesterday it plans to develop an industrial township for labor- intensive industries near its border with Indonesia on Borneo island.

State Chief Minister Abdul Taib Mahmud said yesterday the planned Mutiara (pearl) township near a key border crossing into Sarawak from Indonesia's Kalimantan state will be developed for such labor-intensive operations as electronic component assembly.

"It is near the border with Kalimantan to allow workers (from Indonesia) to come in the morning and return home in the evening," he told delegates attending a business conference on Sarawak.

The industrial town will be located near the Tebedu border post, which was closed for a few days in February following riots in Kalimantan.

Abdul Taib said the plan forms part of development within the so-called East ASEAN Growth Area (EAGA) which calls for member countries Brunei, Indonesia, Malaysia and the Philippines to start joint projects along their common borders.

Sarawak's Industrial Development Minister Abang Johari Abang Openg told reporters later that a detailed study on development of the 100-150 acre (40-60 hectare) township will be completed by the end of the year.

He expects at least part of the township to begin operations by the year 2000.

Sarawak has set its eyes on becoming an electronics industry center along the lines of northern Penang state, dubbed Malaysia's Silicon Valley.

Abang Johari said Penang's multinational electronics factories have made enquiries about setting up operations in Sarawak due to lower labor costs.