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.