The Unmaking Of Sipadan Island

Hantu Laut

My first visit to Sipadan was in 1989 when the island was still undiscovered for its legendary underwater wonderland.There were no permanent structures on the island except a jetty and a hut owned by the turtle eggs collector.

I was there with a group of friend to fish and not being a diver then didn't know the existence of the vast marine wonderland beneath the surface that have now made the island famous and one of the top five dive sites in the world.A jewel in the crown that have made Sabah well known to the diving fraternity world wide.

Sipadan is the only oceanic island in Malaysia rising 700 meters from the ocean floor in the Celebes Sea and has earned its reputation as an underwater paradise.The endless scenes of patrolling hammerhead sharks,circling schools of barracuda,millions of technicoloured reef fishes, scores of turtles and diversity of coral reefs can be intoxicating to those who are privileged to be able to journey below the surface of the ocean. This island have also taken the lives of those who were foolish enough to go beyond the limit of their endurance.

The island used to have several resorts on the island itself and all divers stayed in the resorts and can do as many dives as they wish.There were fears that pollution and over-population would overwhelm the marine bio-diversity on the island and surrounding waters.

Back in 2002 the government in order to protect the island from pollution and over-populated human presence changed all that by evicting all resorts from the island and imposed a maximum quota of 120 divers per day.The island was placed under the control of Sabah Parks and BKN(Bahagian Keselamatan Negara-National Security) which has now been renamed MKM (Majlis Keselamatan Negara).A fee of RM40.00 per diver per day is charged by Sabah Parks.

Since the eviction of those resorts off the island there have been many complaints from resorts owners and divers on the management of the island by Sabah Parks and MKM.Many foreign divers who come regularly to dive in Sipadan have expressed shocking disappointment at the deteriorating conditions on the island and below the surface.There are traces of line fishing discovered by some divers and on some occasions divers could hear blasts of fish bombing going off in the vicinity of waters near the island.How far off the fish bombing is difficult to tell as sound travel much faster underwater than on land.

MKM, a division under the Prime Minister's Department is responsible for security of the island and its surrounding waters.They are only concerned about piracy and left those fish bombers to their own devices.Typical of most government servants irrespective of whether they are from state or federal department, when the cat is away, it's time to play.Just sit on their arses and do nothing if not told.

Many resort owners are also complaining at the way the quota are being distributed among the resort operators. For some unknown reason a particular resort seems to get a bigger slice of the allocation putting some of the other resort owners in a dilemma and the prospect of being black listed by their overseas travel agents for non-performance of contract.

Overseas divers paid a lot of money to come to Sipadan and most of them expect at least three dives a day. This has been the standard policy since the opening of the island in the late 80s.

After having paid huge sum and to have travelled thousand of miles to find out later that you could only dive once or twice would certainly make you feel cheated.Some divers have even threatened to start a campaign overseas to boycott the island.

Resort operators have spent millions to build their resorts and have a break even point where they needed certain amount of occupancy before they can start making money.They can only survive if they have a reputation of being reliable.To tell your guest that he could not dive that day because you don't have enough quota, because the government fucked up the system, is a sure recipe for disaster and the prospect of losing your future business is as surely as death.

One amusing if not embarrassing story told to me by a divemaster about a Japanese diver who was highly agitated because he could not have enough dives told the dive master that in Malaysia everything can(Malaysia Boleh), why he is not doing it.He is asking the divemaster to bribe the people who issue the pass to get more quota and he is prepared to pay for it.So much for our reputation of 'Malaysia Boleh'.

Another complaint is the idiocy of those blithering idiots at Sabah Parks and MKM to check diver's identification against the list provided by the resort operators and insisted they must be the same person.I was told it is foolhardy to try challenge and tell these little napoleons that what they should be concerned about are numbers not names.As most morons do they would make life even more difficult for you.

The idea of imposing quota is to limit the number of divers.By their stupid action they have deprived the operator of the flexibility of using the quota by replacing the diver with another one in the even the named diver fell sick or for some other reasons couldn't dive that day.I am sure this complaint must have reached the chiefs in Sabah Parks and MKM and they have done nothing to correct this act of stupidity and discretionary blunders.

A foolish consistency is the hobgoblin of little minds, the civil service and men in uniforms are never lack of it.They pride themselves on appalling bureaucratic procedures,red tapes and unimaginable foolishness.

The resort operator submit application for quota to Sabah Parks who than submit to MKM for approval and than back to Sabah Parks and back to the operator.What the hell for Sabah Parks to put personnel on the island if they have no power to approve the quota.What are they there for? Makan gaji buta kah!

Sipadan is within state jurisdiction, why must MKM be involved and given authority to do so? Even more ridiculous the dive fees collected by Sabah Parks were given to MKM for funding the security of the island if what I was told is correct.What are the taxes collected by the Federal Government from Sabah for? Isn't it their responsibility to provide security by the money they have collected in the form of various taxes.

I do not wish to be rude but what are the Sabah politicians doing to have agreed to this most ridiculous of demand by the Federal government to collect this meagre sum of money which rightly should go to state coffers for improving facilities on the island

Land matters are constitutionally under state control and Sipadan is part of Sabah and the Federal government has no rights over its administration and collect monies other than providing security.

The Minister of Tourism should look into this matter before Sipadan becomes the pariah of the diving fraternity and a tourism loss to Sabah.

Lastly, I must add that Sabah Parks are run by one of the most incompetent bunch of morons.Just take a look at the islands in the Tengku Abdul Rahman Park and see how disorderly,dirty and unhygienic the conditions are on the islands.The restaurants run by their cooperative KOKTAS are bloody disgrace.The toilets are awfully dirty and in state of disrepair.They collected gate fee for boats and visitors and how this money is spent one wouldn't have a clue because very little improvement can be seen on any of the islands.They cordoned off the beach completely for swimmers without giving any consideration to other users.

Two weeks ago I went sailing with some friends and decided to stop at one of the islands.Much to our annoyance we found there is no where we can reach the shore to beach our sailboat.They have completely cordoned off the entire beach.We have to tie our sail boat at the outer side of the buoy and swam to shore.Upon reaching the shore one of the park rangers, a moron, came and told us we cannot tie our boat there and when asked why he said it is swimming area, when he knew fully well the boat is outside the swimming area.This idiot can't tell the difference between a sailboat and a motorised boat and asked us to move the boat and anchor farther out in deep water.When I asked him how are we to get ashore he said just try and stop any of the boats passing near us.

You see this is what I say, morons employ morons.A small sailboat has no manoeuvrability and is at the mercy of the wind and don't usually carry anchor.

Morons at the top,morons in the middle and morons at the bottom.That's exactly what Sabah Parks is, from ocean deep to moronic high.

I Shall Be Damned.

Hantu Laut

I must be the only mad person in the whole country when it comes to predicting the state of the economy and the coming of recession to Malaysia.Almost every one, from the Prime Minister,Deputy Prime Minister and now to the very person who is the central figure of the economic apparatus and one that advises the government on its financial and monetary policies have said there will be no recession in the country.

The Governor of Bank Negara Zeti Akthar Aziz said “Half the world will likely be in a recession. We are not in a recession and we don’t expect to be in one,’’ Read the story here.

A very reassuring statement indeed and completely opposed to what the rest of the world are grappling with, the fear of a deep recession, and one that can lead to an economic nightmare that the world have not seen since the depressions of the 1930s.

Where did we get the immunity that makes us so recession proof ?What are the fundamentals that make us so different from the rest of the world and one that can shield us from the contagion of this global epidemic.Almost every developed country have declared that they are already in recessions.

A few months before the US financial meltdown some optimistic economists predicted only slower growth and mild or no recession in the US.They are proven wrong. The problem is bigger than one would like to imagine.Now, fear of deep and prolonged recession is on every world leaders mind except Malaysian leaders who keep telling us not to worry as there won't be any recession in Malaysia, we are insulated and isolated from such nonsense.Only the rest of the world will suffer.Malaysians have natural antibodies against recessions.

The problem is, only the bad news has arrived, the deepest cut is yet to come.The Malaysian economy has not slowed down yet.There is always time lapse of at least six months between what happened in the West and us, before we feel the blow.This lapse of time should not be taken as an indication that all is well.

How can Malaysia be insulated when it is one of the top twenty trading nations in the world and a GDP highly dependant on selling to the world markets particularly Western nations. Won't it make sense that if there were recessions in the West there would be less money,less buying and,therefore,less exports from Malaysia to these markets.Than there would be the domino effect, sales gone down,profit down and liquidity tight.Those directly or indirectly involved in export business would start to lose money and face with cash flow problems and, therefore, unable to service their debts.Bad liquidity would bring about increase in the NPL(non-performing loan) with banks and other financial institutions.

If the recessions in the West stretch for more than six months the likelihood of Malaysia seeing bad times is extremely high, whatever rosy picture the government may wish to paint, catching the flu may be slow but sure.

I shall be damned if I am wrong.

Return Of The Oligarch

Hantu Laut

It's really difficult to make out this statement of Mahathir.There seems to be inconsistency in his idea of democracy.Up till now he has been asking for the party to remove the hurdles to allow for more contests in the party and asking Najib to go against Abdullah and to remove him from the premiership.Now when his favourite is being challenged he is accusing other contenders of money politics and asking them to be arrested under the ISA.It looks like he has different strokes for different folks.

There is little doubt he is not happy with Ali Rustam and Muhammad Taib, the two spoilers of an almost perfect equation to politics of the oligarch.

Are we moving back to his old ways?

Down,Down, Down !

Hantu Laut

We have one of the highest wastage of public funds through corruptions and incompetence.It wouldn't be an over-statement to say that at least 30% of taxpayers money are lost to these two evils in government.

We are also blessed by exploitable natural resources that gave us a sound economy that allow us to survive the pilferage,incompetency and inefficiency in the system.The biggest source of government funding comes from taxes and oil revenue.With falling global price of crude oil a big chunk of this revenue would be wiped out requiring the government to look for alternative source of financing for its budget.

If the world markets for crude oil and palm oil do not improve in the near future and with the decline in exports of manufactured goods the government would have a serious budget deficit.The liquidity problem is much more serious than those in government have anticipated.A near negative growth in the following year is not a far-fetched scenario.

China, now the second largest economy after the US, which have had double-digit growth the past few years will face a downturn in its economy soon.With two of the world largest economy slowing down there would be huge decline in demand of commodities including demand for crude oil.How long the recession would last is difficult to guess.Bail-outs in the US have not picked up momentum or showed any improvement to the economy.

Finance Minister and Prime Minister in waiting Najib Tun Razak would have to crack his head to find a solution to the problem.

A recent proposal to sell government assets to raise funds sounds impractical and would be easier said than done.Unless the government is prepared to sell these assets at very low prices there would be few takers.Those with money to buy would look for real bargain.Chances are it would go to cronies even at more depressed price.It would lose future income if income-generating assets are sold.Only loss-making corporations and non-income generating assets should be considered for sale.

Selling government controlled blue chips would be killing the goose that lay the golden eggs.The PM and Finance Minister should not agree to the sales of any of these golden assets in a depressed market.

Worst case scenario, the government may have to trim its development expenditure to reduce the budget deficit.

In October I predicted that the price of crude would fall to around US$50 per barrel before the end of the year in my post "Where Crude Oil Heading For" .The price had tumbled to US$55 in spite of OPEC cut in productions.This means that demand had gone down faster and bigger in volume than OPEC cut in production.

Prolonged period of depressed crude market would spell trouble for Petronas and the Malaysian government spending.

On a lighter note, I find Malaysian generally more interested in politics than the state of the economy.

The good news is prices of consumer goods would go down as well and consumers should be smart to avoid those businesses that are profiteering by not adjusting prices.