KUCHING: THE Sarawak state government defended its stake in wafer manufacturer 1st Silicon (M) Sdn Bhd, saying that it was an investment for Sarawak’s economy and human capital development.
Second Finance Minister Datuk Wong Soon Koh, speaking in the state assembly Tuesday, refuted accusations that the state “squandered” funds on the investment, and that the company was the “prodigal son of Sarawak”.
“It is an investment to kick-start and develop a strategic high-tech industry.
“We are sowing the seeds now in order to reap the harvest for our children and children’s children, to ensure that Sarawak can provide quality job opportunities and help retain our valuable brain power and talents,” he said when replying to points raised by assemblymen.
On Chong Chieng Jen’s (DAP-Kota Sentosa) allegation that the state government “squandered so much money” on 1st Silicon, Wong said it was typical for investment in a capital-intensive industry, such as wafer manufacturing, to incur losses in the initial stage.
He said 1st Silicon began full commercial production during the worst downturn of the global semiconductor industry (2001-2003).
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