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TUAN YANG TERUTAMA TUN DATUK SERI PANGLIMA HAJI MOHAMAD SAID BIN KERUAK, S.M.N., P.M.N., S.P.D.K.
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DATUK SERI PANGLIMA HAJI SALLEH SAID KERUAK
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DATUK SERI PANGLIMA HAJI SALLEH SAID KERUAK
A decade of shaping Sabah politics

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DATUK SERI PANGLIMA HAJI SALLEH TUN HAJI MOHAMAD SAID KERUAK’S ENTRY INTO UMNO

30 April 1991: Salleh joins Umno

Former Sabah State Assemblyman Datuk Haji Salleh Tun Mohamad Said Keruak announced that he has joined Umno. Datuk Salleh, who resigned from Parti Bersatu Sabah (PBS) a week ago, said he would continue his political struggle via Umno.

He had earlier said that he withdrew from PBS because he did not agree with the party's decision to contest the Usukan state by-election. "I believe that political struggle based on national aspirations is the foundation for closer relations between the Federal Government and the people in Sabah," he said.

Datuk Salleh, 34, is confident that through Umno the people in Sabah will become united and benefit from development and progress.




17 September 1991: Haji Salleh heads birthday awards list


Datuk Haji Salleh, a retired politician, will be bestowed the State's highest award, Seri Panglima Darjah Kinabalu (SPDK), which carries the title "Datuk."

5 November 1993: Sabah division thankful for lesson on freedom

A delegate from Sabah, Datuk Haji Salleh Said Keruak, said Sabah Umno would forever be indebted to the party for demonstrating the true meaning of real freedom, although the country had achieved independence.

"Only after Umno spread its wings to Sabah were we truly given the right to choose our own political path, our own leader, and take part in the process of electing the leaders of the country. Umno has shown us the real meaning of independence," he said when debating the presidential address.

The people in Sabah, he said, had been conditioned to revere a certain leader. As a result, no work was done as they were spending all their time and effort in blindly following the said leader, he added. Now that they were in Umno, said Salleh, the people of Sabah were free to choose their own leaders and decide the direction of the party. He said it would be a true victory for the Sabah people if the State were to be administered by Umno.

Salleh said Parti Bersatu Sabah (PBS) had failed to administer Sabah and was now using various gimmicks to stir anti-Federal sentiments among the people of Sabah just to ensure they remained in power. He said the most glaring example was the failure of the State Government to solve the problem of illegal immigrants in Sabah. The Federal Government, he said, had introduced various legislation to check the entry of illegal immigrants into the State, but they were not implemented by the PBS Government.

"A new hobby of the State Government now is the privatisation programme. At the Federal level, the programme is carried out after careful study. But the programme in Sabah is carried out by the PBS Government as it pleases.”

"One of the projects involves the Sabah Forest Industries, now on a trial privatisation programme for 18 months," he said. If this were allowed to go on, he said, one day PBS would privatise the State Government as a trial programme.

He also urged Umno, as the main component of the Barisan Nasional (BN), never to allow PBS to rejoin the coalition. He said the Barisan Nasional must always remember how the PBS betrayed the Federal Government when it pulled out of the coalition on the eve of the last general election.

Salleh also called on the Federal Government to abolish the use of the term the "three S", namely Semenanjung (the Peninsula), Sabah and Sarawak, to promote greater integration. He said Sabah and Sarawak must no longer be referred to as separate territories as it could have a negative psychological impact on the people from the two States.

DATUK HAJI SALLEH TUN HAJI MOHAMAD SAID KERUAK’S TENURE AS CHIEF MINISTER OF SABAH

28 December 1994: Salleh sworn in as new Sabah Chief Minister

Datuk Haji Salleh Tun Mohamad Said Keruak was today sworn in as Sabah's new Chief Minister replacing Tan Sri Sakaran Dandai who is retiring from politics. Salleh was sworn in before Yang di-Pertua Negeri Tun Mohammad Said Keruak (his father) at the Istana here at 10.30am, about 15 minutes after Sakaran submitted his resignation letter to Said.

At 37, Salleh, who becomes the ninth Chief Minister of Sabah, is the youngest ever to hold the office.

Speaking to reporters at the Chief Minister's office on the 28th Floor of the Sabah Foundation building, Salleh said he was informed by telephone of his appointment by Prime Minister Datuk Seri Dr Mahathir Mohamad only at 8.55am. Salleh thanked Dr Mahathir for his confidence and for appointing him Chief Minister.

"As Chief Minister I am aware of the heavy responsibility I will have to shoulder and I promise to give my total commitment to meet the aspirations of the people," he said.

Stressing that his appointment was not a privilege but a responsibility, Salleh said if needed, he was prepared to work 24 hours and every second of the day. The new Chief Minister also said he would strive to ensure that all the pledges and promises made by the Barisan Nasional in the last State elections were fulfilled.

From January, Salleh said, he would launch an all-out effort to speed up the implementation of development programmes to meet the objective of creating a new Sabah by the year 2000. "We will go full gear without applying the brakes," he said, adding that his immediate priority was to put Sabah on par with the other States.

Emphasising that he is a "team player" who believes in consultation, Salleh said, with Sabah's rich resources coupled with a strong Cabinet line-up and support of the people, the State has all the potential to emerge as a progressive State.

Salleh declined to say if his appointment as Chief Minister would result in a major Cabinet reshuffle. He said members of the State Cabinet would take their oath of office before the Head of State at the Istana at 10.00am tomorrow and "only then you will know whether there is going to be changes".

Asked if there was a possibility he would continue to hold the finance portfolio, Salleh reiterated that should there be any changes it should be known tomorrow. On whether he would be assuming the posts of Sabah Umno liaison chief and State BN chairman following his appointment as Chief Minister, Salleh said the matter was the prerogative of the Prime Minister. "But if appointed I am ready to shoulder the responsibility."

Salleh proceeded to the Chief Minister's office after the swearing in ceremony where Sakaran officially handed over duty to him. Sakaran, who was appointed Chief Minister on March 17, is expected to be appointed as Sabah's Yang di-Pertua Negeri succeeding Tun Mohamad Said Keruak whose term of office expires on December 31. The 64-year-old Sakaran also resigned as Sulabayan Assemblyman and Semporna Member of Parliament.

Salleh's appointment ended speculation as to who will take over from Sakaran, who on numerous occasions since October this year had indicated his desire to quit politics. Dr Mahathir had, after a three-day private visit to Sabah last week, said that two or three candidates were being considered for the post.

Besides Salleh, the others who had been tipped to take over from Sakaran were Land and Cooperative Development Minister Datuk Osu Sukam and State Communications and Works Minister Datuk Abdul Ghapur Salleh.

Salleh is married to Datin Raya Erom and they have two children, Mohammad Syarulnizam, seven, and Syazeera, four. The Usukan State Assemblyman and Kota Belud Umno division head holds a bachelor's degree in political science from the Simon Fraser University in Canada.

Prime Minister Datuk Seri Dr Mahathir Mohamad described former Sabah Deputy Chief Minister Datuk Salleh Tun Mohamad Said Keruak as the most appropriate leader to be appointed as the new Chief Minister. He said Salleh is regarded to be the best person to become the Sabah Chief Minister. "He has the experience which is why he is suitable to be appointed as Sabah Chief Minister."

He hoped that Salleh would carry out his duty with full responsibility for the benefit of the people, the state and the nation in general. What is important, Dr Mahathir said, is for State Governments to work with the Federal Government for the benefit of both parties. He was confident that Sabahans would give full support to their new Chief Minister.

9 March 1995: Formation of Sabah State Islamic Department

Sabah Chief Minister Datuk Haji Salleh Said Keruak announced the formation of the Sabah State Islamic Department (Jains), which will be in charge of Islamic matters in the state. It will be headed by a director and will be placed under the jurisdiction of the Chief Minister's Department.

Speaking at a Hari Raya gathering in east coast town of Kunak, Salleh said the formation of Jains will provide the state with a clear-cut policy on the implementation or enforcement of laws or rulings affecting Islam.

Its formation will not incur huge expenses nor will it duplicate the functions of the State Islamic Council (Muis) since Jains would absorb most of its staff, he said. "Function-wise, Muis will continue to be a policy-formulating body while Jains will be the enforcement agency."

With the creation of Jains, the Islamic Affairs Unit created by the former state government in 1993 and headed by nominated Assemblyman Datuk Ahmad Bahrom Titingan, with ministerial status, will cease to exist.

Ahmad Bahrom, a former Deputy Chief Minister in the Parti Bersatu Sabah (PBS) government, however left the party and joined Umno soon after the collapse of the PBS. He is now the Inspector-General of Project, also with ministerial rank.

24 March 1995: Sabah's development plan

The Sabah Government has drawn up a 15-year comprehensive economic development plan for the state, Chief Minister Datuk Haji Salleh Said Keruak said. He said the plan, known as the Outline Perspective Plan (OPP) for Sabah, would be launched soon. It will concentrate on sectors that can speed up the state's economic development such as the timber, industrial and agricultural sectors.

"I feel the time has come for us to have a development plan such as the OPP (1995 to 2010) so that the people will know which direction the state's economy is headed," he told reporters after opening the multi-purpose hall of the Sekolah Menengah Kian Kok, Kota Kinabalu. He said the 15-year period is to coordinate the state's plan with the national level Second OPP, which will end in 2010.

27 March 1995: CM: Work for coalition, not individuals

Chief Minister Datuk Haji Salleh Said Keruak today urged members of component parties of BN to cultivate the culture of commitment to the coalition rather than to the individual. Addressing a Hari Raya gathering organised by the Sipitang Umno Division, Salleh, who is also State BN chairman, said he made the call because with election around the corner, there are bound to be party members lobbying to be candidates.

He said sometimes party members do not campaign hard simply because their favourites are not chosen as candidates. Some even throw their weight behind independent members or candidates from other parties to indicate their protest.

"This should stop. It is time that we as party members show our love and loyalty to the organisation, and not to any individual," he pointed out. Salleh, who is also Sabah Umno liaison chief, said leaders come and go but the party stays and as such the organisation is more important than the individual.

"What is the point of an individual winning the election if his party loses," he said, adding it was for this reason that the BN might field candidates who are not members of any of its component parties.

On his directive to State Ministers to bring not more than two officers during outstation trips, Salleh, who is also Finance Minister, said it was just one of the steps he was taking to cut costs. "The more money we save, the more there will be for other purposes such as development projects to benefit the public.”

"For example, a one-way ticket to Kuala Lumpur for an officer could instead be used to buy a water tank; a return ticket could buy a water pump; and two to three trips including allowances could perhaps build a low-cost house under the Hardcore Poor Housing Scheme (PPRT)," he said.

On the Sabah Outline Perspective Plan (OPP) to be launched soon, the Chief Minister said it was aimed at providing a brighter future for the State's younger generation. "The OPP will not only improve the State's economy but will provide training and create plenty of job opportunities for Sabah's young citizens," he added.

He said because the PBS Goverment had no systematic planning, today many young Sabahans have to work outside the State. To illustrate his point, the Chief Minister said he was having satay at a shopping complex in Kuala Lumpur while on his way to the airport last night when he was served by a boy from Tambunan.

"Another boy whom I met also at the same shopping complex told me that out of the 800 plus employees at a print factory in KL, 600 are from Sabah," he added.

Salleh said this encounter at the complex had strengthened his resolution to work harder for the people of Sabah. "My stint as Chief Minister may be short, but if I work hard now at least I will leave office with the satisfaction that I have laid the foundation or established a system for my successors.”

4 April 1995: Sabah to list more state-run firms

Sabah is planning to get several government-run firms listed on the stock exchange as part of a major privatisation exercise, its chief minister said today. "I believe in the ‘Malaysia Incorporated’ concept and I feel the private sector has a role to play here," Datuk Haji Salleh Said Keruak said in an interview. "We need to corporatise our state concerns, it will be good for Sabah."

"We are working now to see how to consolidate the Sabah Bank, the Sabah Development Bank and Sabah Finance to make it a financial supermarket," Salleh said, adding it could either be through a direct listing or injection into a listed firm.

Salleh said 40 per cent of Sabah Bank was owned by Bank Negara and the state may have to buy the stake over from the Malaysian central bank. The state will get a stock market listing for its timber business through a reverse takeover of reforestation specialist, North Borneo
Timbers Bhd (NBT), by state-owned Sabah Foundation.

The wealthy foundation, estimated to have some one billion hectares in timber concessions and RM28.5 billion in assets, will sign an agreement to acquire control of 62.5 per cent of NBT's equity.

Salleh, who is into his 100th day in office, was hailed as pro-business when he first took over the chief ministership in late December 1994. He has promised to put Malaysia's wild eastern state on the economic fast track during his two years in office, targeting a growth rate of 7.9 per cent for Sabah's economy in the current year, up from 5.5 per cent. On the political front, Salleh has tried to clean up the act by launching a tender system for award of timber concessions to erase the taint of money and politics link in the business.

Salleh added that Sabah’s poverty rate, the highest in the country, has remained at 34 per cent over the past ten years. One out of every three residents in the state lived below the poverty line, which involved mostly farmers and fishermen, he added. He argued that the figure was the highest in the country compared with 21 per cent in Sarawak and 15 per cent in the peninsular. The State Government, through its agencies like Ko-Nelayan, Rural Development Corporation (KPD), Sabah Foundation and the Rubber Fund Board, will continue to ensure that the rate is reduced, he added.

11 April 1995: The boys from Kota Belud

They all hail from Kota Belud - the former wild town 48 kilometres from Kota Kinabalu - and together, the three of them made Sabah's celebrations complete. The trio are Sabah's young Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak, coach Kelly Tham and striker Matlan Marjan.

It's hard to tell who among them was the most popular Sabahan on Saturday night (8 April) when the team lifted the FA Cup with a 3-1 win over Pahang in the final. If Matlan was the goal hero and Tham the architect of Sabah's first major honour in Malaysian soccer, Salleh was the one who rewarded Sabahans with a public holiday for the State yesterday.

Salleh, 37, lent his support to the team by leading the entire cabinet to Merdeka Stadium for the final. He was not around, but Salleh would have been amused to hear what a Sabah fan proposed for the ruling party for the coming general election. The fan downed a glass of champagne and, albeit in jest, wanted Tham to stand in the election.

"You are so popular in Sabah now, Kelly," he said. "You can win the election.

"They can put you up as a candidate anywhere except the CM's area. You are now one of the chiefs."

Tham, looking at Matlan, sportingly accepted the praise. "Yes, we are all chiefs here and we all come from Kota Belud.”

"Matlan is the chief striker, I am the chief coach and of course, there is the chief minister. Anak (son) Kota Belud," said Tham.

Tham explained that in the local dialect ‘belud’ means mountain, and it is from there that one can clearly see the imposing beauty of Mount Kinabalu. Defender Sudin Soud is also from Kota Belud but as Tham said, "He is the chief reserve."

13 April 1995: Firms sought for reverse takeovers

The Sabah Government is on the lookout for suitable listed companies as reverse takeover targets, via the injection of its various businesses into them, said Sabah Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak. This move is part of its efforts to corporatise the various State-run firms as part of Sabah's masterplan to become a developed State by the year 2000.

"Listed companies we are looking for should ideally have the expertise in land development, construction, tourism, timber and agricultural products processing," he said at his office in Kota Kinabalu last week.

These sectors are currently the main engines of growth for the State's economy. "The other equally important criteria is that the cost of a reverse takeover must be reasonable. If necessary, we will seek a valuation of any asset-for-share swap on a net tangible asset (NTA) basis for the new shares to be issued instead of three month trading price valuations," he said.

This NTA valuation basis was used in the recently signed RM350 million deal for the State's reverse takeover of The North Borneo Timbers Bhd (NBT). Sabah Foundation's investment arm, Innoprise Corporation Sdn Bhd acquired a 62.46 per cent stake in NBT, following the issue of 100 million new NBT shares at RM3.50 per share as consideration for the deal, instead of the initially proposed price of RM8.40 for each new NBT share.

"These factors are important as commitment will be required from the listed company for the long-term benefit of all concerned," said Salleh. He also said that most of the State's operating units will eventually be listed on the Kuala Lumpur Stock Exchange, and the appointment of Price Waterhouse last year to audit its 150 odd companies under the Sabah Foundation was only the first step towards achieving the listing aim.

So far, two units have been identified for a direct listing, instead of reverse takeovers. They are timber processing-based Sinora Sdn Bhd and the Sabah Land Development Board. Plans have also been made to consolidate the Sabah Bank Bhd, Sabah Development Bank Bhd and Sabah Finance Bhd to turn them into a single financial supermarket. To do so, the State Government will buy out the 40 per cent stake in Sabah Bank still held by Bank Negara.

As a result of the Price Waterhouse audit, now still ongoing, the Sabah Government had set up a new holding company Warisan Harta Sabah Bhd to rationalise its subsidiaries holdings structure. The ultimate shareholder is to be a newly set-up entity, Chief Minister's Department Incorporated (CMD Inc), so as to allow the Sabah Government flexibility in its corporate endeavours.

"All these plans are to ensure we will have easy access to the debt financing market to raise the massive capital needed for the State's development over the next few years, as we cannot depend entirely on the Federal fund allocations for our development projects.

"The Sabah Foundation has an asset base running into billions of Ringgit and it is only logical to corporatise all these assets so as to maximise its earnings potential," Salleh said.

17 April 1995: Analysts hail foundation's RM350m timber deal

The recently signed RM350 million deal between The North Borneo Timbers Bhd (NBT) and Sabah Foundation's investment arm, Innoprise Corporation Sdn Bhd, has been hailed as an excellent compromise by analysts.

"NBT made its biggest gain by securing the full cooperation and support of the Sabah Government for all its activities when it conceded nominal control of its shareholding to the State," said an analyst.

"This is the key to the deal, because NBT's activities are mainly located in Sabah. Thus, for NBT, the question of control itself is almost a side issue as the company's operations are still in the hands of its existing logging and reforestation experts."

"The reappointment of NBT's former chief executive, James H. Glyn, as its new managing director is clear evidence of the State Government's willingness to give these experts full leeway to decide how the interests of both the company and Sabah's timber resources can be best served," he said.

Further, the foundation's and Innoprise Corporation chief executive Datuk Musa Aman also said NBT will eventually provide reforestation expertise to the Sabah Foundation's entire 972,800ha timber concession area and assist the Sabah Government in developing timber downstream activities.

This development is a marked contrast to NBT's fortunes only a few months ago, when Innoprise Corporation rejected its initial proposed takeover of Sabah Softwoods Sdn Bhd and a 100,000ha timber concession.

Prior to the deal, NBT had been posting losses for a number of years after it exhausted its logging concessions, which expired in 1985. Its main source of income then had been from its horticultural project in Kota Tinggi, Johor, exporting decorative plants to Japan and Europe.

Small contributions also came from its stake in Sabah Softwoods, a 40:60 joint venture with Innoprise Corporation set up in 1974 to conduct reforestation activities on NBT's 60,704ha land in Sabah. NBT had also cultivated some cocoa, oil palm and rubber on this land.

The sleepy company woke up from its ten-year lull in September 1994 to announce its proposed takeover of the remaining 60 per cent stake in Sabah Softwoods held by Innoprise Corporation. This was also to mark its return to its flagship timber business, as the proposal would get NBT a 162,000ha timber concession.

However, the Sabah Government decided to reject the proposal on grounds that it was not beneficial to the State. Sabah Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak said it was essential the State had control of NBT to ensure the company was diligent in carrying out its reforestation activities. "It was understood that reforestation would be the focus of the deal so as to benefit both the company and the State in the long-term."

"But, many were worried that the large timber concession given under the deal would be a bad move because NBT might just reap this immediate-term benefit and leave the reforestation activities by the wayside," he said. The Sabah Government would have then been unable to prevent such a situation from occurring because Innoprise Corporation would only have had a 20.3 per cent stake in NBT under the initial proposal. This was due to the new NBT shares to be issued to Innoprise Corporation in return for its 60 per cent stake in Sabah Softwoods being priced at RM8.40 per new NBT share.

A second proposal submitted by NBT had similarly valued its new shares to be issued at the same price and was consequently rejected. The final deal found to be mutually acceptable to both parties valued the new NBT shares at RM3.50 each, which would result in Innoprise acquiring a 62.46 per cent stake in NBT.

NBT will also receive Sabah Softwoods' 100-year 60,000ha timber concession plus another 100-year concession for 100,000ha logged-over area from Innoprise Corporation's wholly-owned subsidiary Rakyat Berjaya Sdn Bhd. For the reverse takeover to occur and the injection of the timber concession, NBT will issue 100 million new shares at RM3.50 each to
Innoprise Corporation, thus giving the latter a 62.46 per cent stake in NBT.

An analyst said this lower valuation of NBT's new shares will have some effect on its current traded price, but it should not breach the RM9.20 technical support level. "Too much significance should not be given to the RM3.50 per share valuation given to the new NBT shares to be issued under the deal - the Sabah Government is also making a compromise here," she said.

"The value of the total 160,000ha timber concession area is far higher than the RM350 million price tag. Also, one must take note of the RM78.21 million debt owed to the Sabah Foundation, which is being capitalised and wiped out."

The recently signed deal includes the capitalisation of the RM78.21 million owed by Sabah Softwoods to the Sabah Foundation into 78.21 million new Sabah Softwoods shares, and all these new shares will be given to NBT as part of its RM200 million consideration in its takeover of Sabah Softwoods.

She added that a more significant effect on the counter's traded price would come from the large volume of NBT shares expected to flood the market when Innoprise Corporation makes a restricted offer of sale of the NBT shares after the deal is concluded.

"Following the public offer, NBT shares could be traded at about RM9.50 per share, rising back to over RM11 per share in the longer term," she said. She added this is owing to NBT getting a bigger earnings base from its new activities as compared to its current losses. Further, the backing of the Sabah Government is another crucial factor.

16 May 1995: Sabah allocates RM84 million

The Sabah State Legislative Assembly approved the First Supplementary Bill 1995 involving RM84 million after a short debate. Tabling the Bill, Chief Minister Datuk Haji Salleh Said Keruak said a total of RM25 million was needed for the repairing of roads, drainage system, multi-purpose buildings and other infrastructure facilities. Another RM10 million would be used for the upgrading of roads and bridges.

25 May 1995: Improving transport system

Kota Kinabalu needs a proper, efficient and modern transport system in order to become a city, Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak said. He said the transport service in the town is far from satisfactory and needs to be improved to meet demand of residents.

"We are aware of the problem and the respective authorities are planning a modern and efficient transport system to meet the demand of residents in the town," he said after launching the Syarikat Tuaran United Transport (TUT) Sdn Bhd in Kota Kinabalu.

The State Government has fixed 1997 as the target year for Kota Kinabalu to attain city status. Salleh said, to become a city, Kota Kinabalu should avoid problems faced by most cities in South East Asia, especially the traffic congestion.

30 May 1995: Salleh: Don't be pythons

Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak urged the people of Sabah to work harder and not be like pythons, which eat and then sleep. "We should not be like the python which eats whatever it can eat and then sleeps for a long period," he said when launching the state-level Kaamatan Festival in Penampang.

Salleh, who is also the State Finance Minister, suggested new approaches like discussions on new agriculture technology to be included in the celebration programme. He said this would benefit the farmers who are the focus of the Harvest festival. Kaamatan or the harvest festival is celebrated in the month of May and begins at the village level before culminating in the two-day state-level celebrations at the end of the month.

22 June 1995: Non-performing agencies

Sabah Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak said the state Finance Ministry has been asked to prepare an updated report on state agencies that are not performing well. He said he wanted to know the problems faced by these agencies and the solutions to overcome them. He did not want these agencies, which were making losses, to continue spending money to maintain their operations, he told reporters after attending a briefing on Cement Industries (Sabah) Sdn Bhd (CIS) at Sepangar Industrial Estate, about 30km from Kota Kinabalu.

Salleh, who is also state Finance Minister, said he had given his officers one month to come up with the reports. He also wanted to know whether these non-performing agencies still pay unnecessary allowances or salaries to their chairmen, board directors and staffs.

8 August 1995: “There's now a real Govt in Sabah,” says Salleh

When Datuk Haji Salleh Tun Mohamad Said Keruak was appointed Chief Minister of Sabah, he promised Prime Minister Datuk Seri Dr Mahathir Mohamad to deliver a ‘real Government’ in the state, which has for years seen economic decline due to political instability. Seven months later, Salleh is able to say with full confidence that he has kept his promise.

"This was what the Prime Minister said to me in his own words: ‘Salleh, I want you to deliver a real Government in Sabah’. In the limited time that I had, I have delivered a real government that I promised the Prime Minister," he said in an interview at his office in Kota Kinabalu.

He said that, for the first time, there was accountability and transparency in the state government and along with it political stability and business confidence, which had eluded the state for a long time.

It is evident too that the people of Sabah are now not that preoccupied with politics or politicking; there is now greater urgency among civil servants to get things done while political leaders are taking the cue from their hardworking boss by cutting the jazz and the trappings of high office.

Salleh frankly admitted that he is uncomfortable with too much power being vested in the office of the Chief Minister and he has been willingly "giving away some of the powers." He has also kept another promise he publicly made when he took office - to rid Sabah of timber politics.

The Chief Minister, as Minister of Natural Resources, has the sole power of approving timber concessions in the state but Salleh relinquished the power which is now collectively shouldered by the entire Cabinet and even so, only through a tender system.

Pointing to the Chief Minister's chair from across the settee where the interview was held, he said, "You are right to describe the chair as the seat of power but it can also be the seat of corruption."

In yet another confession, he said, "The powers of Chief Minister of Sabah, like the Chief Minister of Sarawak, are not the same as those of the Menteris Besar or Chief Ministers in Peninsular Malaysia where the powers are limited."

"I can be very rich holding this office but no, thank you. My conscience is very clear on this. The Government under my leadership is very accountable and transparent," he added.

"I'm giving away powers which are legally mine as Chief Minister but for the good for the state this has to be done."

His moderate style and open system of administration belie his firmness when it comes to making decisions, including unpopular ones.

"When I decide, I'm very firm," he added.

3 September 1995: Businessmen find Salleh's leadership refreshing: Lin

A prominent Malaysian banker has given full marks to Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak for his leadership of Sabah, saying he has given businessmen and investors a new-found confidence to put their money in the once-politically unstable but resource-rich state.

"Sabah is now doing well in the sense that there is confidence. Investors who are already there feel very optimistic, while those who want to get into Sabah have found a new confidence, thanks to the present Chief Minister," said Tan Sri Dr Lin See Yan, the former Deputy Governor of Bank Negara and now executive chairman of Pacific Bank.

Dr Lin, who made two trips to Sabah recently, said he had talked to numerous businessmen and investors and all found Salleh and his policies "very refreshing", given the state's "colourful past".

"The Chief Minister not only has come out with new policies, hut he is also very open. Investors like this type of open Government because not only is he prepared to listen but he is also prepared to change and not afraid to change," he said in an interview.

"They feel this freshness the Chief Minister has brought into his office, this openness, this willingness not only to listen but to take into account businessmen's views. I have been hearing only good things about the Chief Minister," he said.

He said the present business confidence in Sabah was not there in the past and this was why both existing and potential investors he met were anxious that there was continuity in political stability and sound policies.

But Dr Lin, who served Bank Negara for 34 years until last September, including the last 14 years as its No. 2 man, admitted that the question of the impending rotation of the Chief Minister's post was uppermost in the minds of the Sabah business community at the moment.

"Obviously, businessmen being businessmen, are not taking political positions but the only problem they find, which is very important to clarify right now to enable them to make decisions, is whether existing policies would continue (should the rotation be implemented)," he added.

Asked to elaborate, Dr Lin said that while the Federal Government's view or thinking on the rotation issue was already well-known, local businessmen were anxious to know the Sabah politicians' views on the matter, including from Salleh himself and other party leaders who are inline for the Chief Minister's post.

Going by rotation, Salleh, who became Chief Minister last December to fill the slot for the Muslim Bumiputeras, is scheduled to end his term in March next year. The post is expected to be rotated between party leaders from two other major communities - the Chinese and non-Muslim Bumiputeras - before the term of the Barisan Nasional State Government expires in
1998.

To a suggestion that a change of personality would inevitably lead to a change of policies, he replied, "They could live with rotation and they could live with a change from rotation but what is important is consistency of policies.

He added, "By and large they want the present Chief Minister to continue. The general feeling is that he is good and he should continue but businessmen are not making a political judgment about the rotation."

18 September 1995: Plan to chart Sabah's economy for next 15 years

Prolonged dependence on primary products has made Sabah's economy vulnerable, Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak said. He said this was due to the wide fluctuations in global commodity prices and the uncertain economic conditions of the major economies.

"For too long, the state's economy has been heavily dependent on exports of primary and minimally processed commodities," he said at the Malaysia International Chamber of Commerce and Industry (Micci) (Sabah Branch) Annual Luncheon in Kota Kinabalu.

Salleh said although efforts had been made to diversify the state economy since the early eighties, the targeted structural shift had been slow, with insignificant achievement. As such, he said the Government had formulated Outline Perspective Plan for Sabah (OPPS) to chart the direction of the state's economic development over the next 15 years. The ultimate objective of the OPPS was to create an internationally competitive, vibrant and industrialised Sabah by the year 2020, he said.

Salleh said, in 1970, Sabah had the second highest GDP per capita in the country but, in 1990, the state had slipped to tenth position behind Sarawak and most of the other states in Peninsular Malaysia. He said the economic growth in the state had not been consonant with the bullish national economy, registering only 5 per cent real GDP growth compared to the current national 8 per cent real GDP growth.

"The approach that we must take to transform Sabah's economy towards a high sustainable rate of growth must be bold and laced with the highest level of commitment from all sectors," he said.

Salleh added that the Government welcomes the initiative of the private sector to work alongside the Government as partners in efforts to stimulate the economy. Such initiative is vital, as it will benefit the state through partnership in undertaking joint venture projects, he said.

12 October 1995: Call to find ways to stabilise timber prices

Chief Minister Datuk Haji Salleh Said Keruak called on timber trade policy makers to find ways to stabilise prices of tropical timber for the export market. He said the current downward trend in export prices of timber and timber products had dramatically affected earnings of exporters and importers alike.

"I am sure with close and sincere cooperation between producers and importers of tropical timber, you can enhance trading at fair and reasonable prices for mutual benefits and stability of the timber industry," he said when opening the 8th Meeting of the Asia-Pacific Tropical Timber Organisation (ATTO) in Kota Kinabalu.

He also called on the meeting to discuss other changes that were facing the timber industry in the Asia-Pacific region as the timber supply environment had undergone many major changes and pressures. In Sabah itself, he said, the forest resources are facing increasing demand from the timber industry and this trend will continue whereas in accordance with the state's policy of sustainable forest management with strict environmental code, the total area for harvesting will be very much reduced.

"This trend is predicted to continue over the foreseeable future and with the projected increase in demand and supply shortages, the basic structure of the timber products industry in this region will be affected," he said.

As such, he said, the timber industry will have to face many challenges not only in reduced supply but also in terms of trade barriers and tariffs resulting from trade agreements and long-term uses of timber products because of improved technology.

Salleh said Sabah had over many decades practised a consistent policy of maximising returns from its timber resources and had progressively encouraged the local processing of timber industries.

13 October 1995: Sabah's privatisation plan

Sabah is drawing up a 10-year master plan for the privatisation of government agencies, its Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak said. "The master plan will help the private sector determine speedily and efficiently the areas they are interested in," he said during the opening of a forum on privatisation organised by the Institute of Development Studies (IDS) in Kota Kinabalu.

Salleh said the private sector is encouraged to put forward proposals. He added that the State Government hopes to privatise most of its business operations and to seek a listing on the Kuala Lumpur Stock Exchange for its profitable companies to enable them to expand their operations and get bigger sources of funds.

17 October 1995: Work closer with Federal officers, urges Salleh

The presence of Federal officers from the peninsula in Sabah should not be viewed as interfering in the affairs of the State, Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak said. He said the people, particularly State civil servants, should be receptive to the presence of Federal officers and consider them as partners in efforts to develop the State.

"Irrespective of which State we come from we are all Malaysians who share the same vision," he said when launching an orientation programme for 44 Federal officers posted to Sabah at the Shahbandar resort here today. Advising the people to be more open towards Federal officers, Salleh said the perception that they (Federal officers) were posted to Sabah to
"colonise" the State should be discarded.

He said there should be more interaction between State and Federal officers to further enhance mutual understanding. "State and Federal officers should work closely so that whatever task entrusted to them are implemented speedily and successfully."

Federal officers should also make it a point to get to know the local community and understand their cultures because good knowledge about the State and its people would enable them to discharge their duties more effectively. Salleh said the passport ruling for Malaysians visiting Sabah should not be an obstacle in promoting national integration.

"What matters is the sincerity in accepting each other as part of a united Malaysia," he said.

21 December 1995: Sabah laying foundation for a financial supermarket

Two banks in Sabah will be restructured and injected into an unlisted company, which will then seek a listing on the Kuala Lumpur Stock Exchange main board, possibly by the middle of 1996. The move to restructure The Sabah Development Bank Bhd (SDB) and Sabah
Bank Bhd (SBB), the two largest state-owned development and commercial banks, forms part of the state's master plan to create a financial supermarket.

Announcing this today, Sabah Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak said the two banks would be absorbed into TPB Holdings Bhd. "The move is line with the aspiration of the state's corporate master plan which among others aims to create a financial conglomerate or supermarket," he said during a luncheon in Kota Kinabalu organised by the Sabah Journalists Association (SJA).

Salleh, who is also the patron of SJA, held a two-hour closed door meeting with the press where he said that since early this year, the State Government started the ball rolling for the formation of a financial supermarket. It will enable some of those entities in the supermarket to qualify for listing, facilitate broader equity participation, have greater funding avenues and wider corporate opportunities and ventures.

Salleh, who will go on a month's leave from tomorrow, said Bank Negara has approved the restructuring of SDB and SBB. The corporate and listing proposals will be submitted to the Securities Commission and other regulatory bodies before the Christmas holidays.

From next year, Salleh said, the State Government will implement the guidelines for the issuing of scholarships to qualified students to pursue their studies. Under the guidelines, Muslim Bumiputeras and non-Muslim Bumiputeras will be allocated 35 per cent of the scholarship fund and non-Bumiputeras 20 per cent. Allocation of the balance of 10 per cent will be determined by the Chief Minister.

He said the guidelines will include scholarships issued by state-owned Yayasan Sabah, which is allocating a substantial amount to sponsor students pursuing their studies at the secondary school level in Peninsular Malaysia and universities, both in and outside the country.

"I hope with the guidelines, criticisms that scholarships are being monopolised by certain communities will not be raised anymore," he said. He added that the 10 per cent of scholarships allocated to the Chief Minister for approval would not be issued indiscriminately as he will abide by the criteria recommended by the Scholarship Selection Committee.

The guidelines are a clear manifestation of the Government's intention to be fair to all communal groups in the state based on their racial composition and the understanding of their leaders during the formation of Malaysia, he added.

27 December 1995: Salleh returned as PSBB head

Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak has been returned unopposed as president of the Sabah Bajau Arts and Cultural Association (PSBB) for another two-year term. PSBB spokesman Said Hinayat said the announcement was made during the association's annual delegates conference held here today by its chairman, Mohammad Shah Salleh.

Said said, Salleh was returned unopposed as there was no other nomination for the presidency post. He said since Salleh took over the leadership of the PSBB in 1986 the spirit of unity evolved even stronger among members.

1 February 1996: Banks remain under Sabah control: Salleh

Sabah Bank Bhd and Sabah Development Bank will remain under state government control despite being injected into TPB Holdings Bhd for listing in the main board of the Kuala Lumpur Stock Exchange (KLSE), Chief Minister Datuk Haji Salleh Said Keruak said today. He said that on floatation in the KLSE, TPB Holdings (formerly known as Taman Perusahaan Berat Sdn Bhd), Sabah Bank and Sabah Development Bank would primarily be managed by Sabahans.

"The acquisition of Sabah Bank and Sabah Development Bank will be satisfied through the issuance of new TPB shares, as a result of which the shareholders of Sabah Bank and Sabah Development Bank will be the controlling shareholders of TPB," he told reporters after the swearing-in of a new political secretary, Halik Wahid, at his office in Kota Kinabalu.

He said, in fact, under the proposed scheme, which forms an integral part of the state government's plans to set up a financial supermarket, Warisan Harta Sdn Bhd, the investment arm of the state government will own 54 per cent of TPB. "State government agencies will own approximately another nine per cent of TPB. Therefore, it is clear that the control of TPB as well as Sabah Bank and Sabah Development Bank will remain in the hands of Sabahans."

He was asked to comment on recent remarks by several quarters claiming that the move would reduce Sabah's interest and control over the two banks. Salleh said that in order to comply with the shareholding spread requirement for listing, TPB would also make a public issue of 71 million new TPB shares representing about 13 per cent of its enlarged share
capital.

He said among the benefits of listing Sabah Bank and Sabah Development Bank through TPB were the access to the capital markets to fuel the business and financial growth of both banks as well as creating an opportunity to expand the operation base of Sabah Bank to make it a national commercial bank. "It also enhances the profiles of Sabah Bank and Sabah Development Bank nationally and hence increase their corporate marketability," he said.

The synergy between Sabah Bank and Sabah Development Bank will also enhance the competitive advantage of the two financial institutions in this highly competitive financial services industry, he added.

2 February 1996: Salleh steps in to bail out Sabah again

Cash-strapped Sabah Football Association (FA) is overdue in paying their M-League squad salaries for January and has again turned to the in-coming president, Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak, for help. An FA delegation, headed by deputy president Anifah Aman, met Salleh at his office in Kota Kinabalu today to discuss the problem and to brief him of their development plans.

According to Anifah, Salleh - who bailed them out by raising RM300,000 to settle outstanding salaries last September - gave an assurance he will look into the matter. He said Salleh assured them that they will have the money required to simultaneously settle the players' salary arrears for January and advance this month in two weeks. The FA, it was learnt, decided to simultaneously pay the players' salaries for January and February in view of the coming Chinese New Year and Hari Raya.

It looks like Salleh, who will only officially assume the FA presidency in March, will have to shoulder the heavy responsibility of raising the FA's estimated RM4.8 million budget this season. Salleh had, when accepting nomination for the presidency, said he wanted to contribute in terms of ideas to develop soccer in the State. But it is certainly evident that the FA wanted Salleh not only for his leadership but his ability to raise funds.

Stressing the need for the FA to spend within their limit, Salleh had called for more prudent management. But Anifah, in acceding to the pay hike causing the budget to balloon this season, said Salleh was happy with the way the FA were being run.

17 February 1996: Salleh: Don't exercise power merely for short-term gains

Power should not be used as a means to satisfy self-interests and to achieve short-term gains at the expense of future generations, Chief Minister Datuk Haji Salleh Said Keruak said. "We all have power to shape our future and destiny. We must, however, exercise this power responsibly," he said in his Chinese New Year and Hari Raya message released today.

Salleh, whose term of office will end on March 17 if the pledge to rotate the Chief Minister's post is implemented, said any abuse of responsibility would affect future generations. "If we are going to prepare our children, our grandchildren and the yet-to-be-born to succeed in meeting the coming challenges, we have to start preparing now," he said.

The people of Sabah, he said, were still lagging in so many aspects and the State Government was committed to enhance their livelihood. The Government realised that it cannot expect miracles to happen if the people were not united and shared similar vision.

Salleh said there was no doubt that a lot has been achieved since the Barisan Nasional took over the State. As a result of political stability and improved State-Federal relations, he said there had been marked improvement in the State's economy, education, infrastructural development and the overall well-being of the people. He called on the people to use the Chinese New Year and Hari Raya celebrations as an occasion to reflect on what can be learned from each other's great cultural traditions.

"We should incorporate some features of these great cultural and religious traditions to be used as basis for the development of Bangsa Malaysia," he said. As inheritors of great civilisations and cultural traditions, Malaysia has all the ingredients needed to build a strong, resilient and successful nation.

3 May 1996: Yong to be next Sabah chief minister

Datuk Haji Salleh Tun Mohamad Said Keruak has tendered his resignation as Sabah chief minister. Sabah Progressive Party president Datuk Yong Teck Lee is expected to succeed him under a rotation system promised by the Barisan Nasional (BN) during the state elections in 1994.

Salleh, who is the Sabah Umno chief, confirmed today that he submitted his resignation letter to Prime Minister Datuk Seri Dr Mahathir Mohamad. The undated letter was sent "sometime ago". It is now up to Dr Mahathir to effect the resignation by informing the Sabah Yang di-Pertua Negeri, said Salleh.

6 May 1996: There will be smooth transfer of power in Sabah: Salleh

Sabah Chief Minister Datuk Haji Salleh Tun Mohamad Said Keruak, who is to give up the post under a rotation scheme, has given an assurance that there will be a smooth transfer of power. He hopes there will be no feeling of anxiety among the people on the latest political developments in Sabah, which will soon see a new chief minister.

12 May 1996: No crisis will arise over rotation: Salleh

Datuk Haji Salleh Tun Mohamad Said Keruak, who has tendered his resignation as Sabah Chief Minister to Prime Minister Datuk Seri Dr Mahathir Mohamad, said today no political crisis will arise if the Chief Minister's post is rotated. Salleh tendered his resignation to fulfil the pledge made by Dr Mahathir to rotate the post of Chief Minister every two years among the three major races in Sabah - Malays, Chinese and Kadazans.

27 May 1996: Yong sworn in as CM

SABAH Progressive Party (Sapp) president, Datuk Yong Teck Lee, was sworn in as the Sabah Chief Minister before the Yang DiPertua Negeri, Tan Sri Sakaran Dandai, at the Istana in Kota Kinabalu at 10.00am today.

According to the Yang DiPertua Negeri's confidential secretary, Haji Harith Haji Yahya, only Yong was sworn in at the ceremony to take over from Datuk Haji Salleh Tun Mohamad Said Keruak. "It is up to the new Chief Minister to decide and advise us when his (state) Cabinet members will be sworn in," he told reporters at the Istana.

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