Premier: Sarawak eyes RM12-14 bln revenue despite global economic uncertainties

KUCHING (Oct 8): Sarawak remains confident of maintaining its strong financial position and achieving a revenue performance of between RM12 and RM14 billion by the end of this year, despite global economic uncertainties, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said while external factors such as trade tariffs and commodity price fluctuations could have some impact, the state’s diversified and well-managed economy will continue to generate a surplus to support development projects.

“Even if our commodity exports are affected, it will not be that much.

“What is certain is that we will still have a surplus to start new development projects,” he said in his keynote address at the Sarawak Corporate Leadership Summit at Damai Lagoon Resort in Santubong today.

The Premier attributed Sarawak’s resilience to its strong fiscal management, prudent spending, and proactive measures to strengthen its financial base.

He noted that the state’s revenue has more than doubled over the past few years — from RM6 billion to RM14 billion — while maintaining a surplus position.

“Within the Sarawak context, we are stable. Our fiscal position is strong. And then we go back and invest,” he said, adding that the government’s emphasis on sustainable revenue generation and debt control has been key to maintaining economic stability.

Abang Johari cautioned against falling into the trap of high national debt, citing Malaysia’s federal debt level reaching more than RM1.3 trillion, or over 60 per cent of the GDP, as a situation Sarawak must avoid.

“If it is above 60 per cent, then you can only look at that 40 per cent. You have to service the debt and spend so much money there that your productive sector is not given funds.

“We cannot be trapped in that economic situation and Sarawak cannot be trapped,” he said.

He said the state government’s adoption of accrual accounting standards and the establishment of its own sovereign fund — the first among Malaysian states — demonstrate Sarawak’s commitment to fiscal transparency and long-term financial sustainability.

He also outlined plans for a Sarawak State Ownership Policy, an initiative aimed at boosting the state’s economic competitiveness through government-linked corporations (GLCs) that operate on commercial principles.

“The capital may come from the government, but it will be run commercially — deploying the latest technology, increasing productivity, and giving back to the shareholders,” he said.

Drawing on examples from Singapore’s Temasek Holdings and Norway’s sovereign wealth fund, he said Sarawak’s goal is to leverage its natural and human capital to ensure continued growth and job creation.

Citing recent discussions with the London School of Economics (LSE), Abang Johari said Sarawak’s strong natural resources provide a solid foundation for growth, but human capital development will determine the state’s future success.

“Prof (Larry) Kramer, who is the vice chancellor of LSE told me during our discussion that we have a very strong and natural capital. But what we should look at now is to improve our human capital and if we get the right human capital, he said the world is yours.

“That means we have to change the way we run our economy, our civil service, and our government for our ultimate objective is to create a strong economy and opportunities for our people,” said Abang Johari.

The Sarawak Corporate Leadership Summit 2025, themed ‘Future-Ready Governance: Catalysing Collaborative Leadership for Sarawak’s Next Leap’, gathered over 200 participants from GLCs, statutory bodies, ministries, and the corporate sector to exchange insights on governance, sustainability, digital transformation, and leadership succession.

Also present were State Secretary Datuk Amar Mohamad Abu Bakar Marzuki, Food Industry, Commodity and Regional Development Minister Dato Sri Dr Stephen Rundi Utom, Tourism, Creative Industry and Performing Arts Minister Dato Sri Abdul Karim Rahman Hamzah, and Minister in the Premier’s Department Dato Sri John Sikie Tayai.