JUST a decade ago, the term “Artificial Intelligence” or AI sounded like a concept from a sci-fi movie. Today, it’s embedded in our daily lives – suggesting the next show to watch on Netflix, powering virtual assistants like Siri, or driving real-time translation tools.
But AI isn’t just a cool tech trend; it’s a driving force behind a seismic shift in how economies operate, including right here in Sarawak.
As AI continues to shape global industries, it’s also carving a path in our local economic landscape – from agriculture and tourism to education and governance. But how do we prepare for a future increasingly influenced by intelligent machines? And more importantly, how can Sarawak harness AI not just to keep up but to lead in innovation, job creation, and sustainable growth?
AI: The Engine of the Fourth Industrial Revolution
We are in the midst of the Fourth Industrial Revolution – one characterized by the fusion of physical, digital, and biological technologies. AI is at the heart of this transformation. Unlike previous industrial revolutions driven by steam, electricity or computing power, this era is defined by smart systems capable of learning, adapting, and making decisions.
According to global consulting firm PwC, AI could contribute RM70 trillion (US$15.7 trillion) to the global economy by 2030. This impact will be driven by two main factors: increased productivity through automation and enhanced consumer demand through smarter products and services.
This transformation isn’t just happening in Silicon Valley or Shanghai—it’s happening in Kuching, Sibu, Miri, and rural Sarawak too.
How AI is Reshaping Sarawak’s Economy
AI’s influence is increasingly visible across sectors in Sarawak. In agriculture, smart farming techniques — like sensor-based irrigation and AI-powered pest control — are helping local farmers boost yields while using fewer resources. Projects in precision agriculture can help smallholders compete on a larger scale, reduce food waste, and improve food security.
In energy, one of Sarawak’s key sectors, AI is improving efficiency in power grid management, predictive maintenance, and safety monitoring.
A leading energy provider and supplier has already been exploring digital transformation strategies that incorporate data analytics and automation to optimize operations.
In tourism, a major contributor to the local economy, AI is being used to enhance the visitor experience. Chatbots can provide 24/7 support in multiple languages, while recommendation engines tailor experiences to individual preferences—offering opportunities for community-based tourism to thrive.
And in public service delivery, AI has the potential to improve governance by predicting public service needs, optimising traffic management and enhancing disaster response systems. The recent push toward digitalizing the Sarawak Civil Service under the Sarawak Digital Economy Strategy reflects this potential.
The Impact on Jobs: Displacement or Transformation?
One concern frequently raised about AI is its potential to displace jobs, particularly those involving routine or repetitive tasks. It’s a valid concern. Automation could eventually reduce the need for roles like data clerks, basic customer service reps and some manual labour tasks.
But this is only part of the story.
AI is also expected to create new roles and entire industries. Think AI trainers, data analysts, robotics engineers, drone operators and digital agriculture specialists. The World Economic Forum predicts that while 85 million jobs may be displaced by 2025; 97 million new jobs will be created that are more aligned with future technologies.
For Sarawak, the key is preparation. We need to equip our workforce – especially youth and rural communities – with the skills needed to thrive in the AI economy. This means strengthening TVET (Technical and Vocational Education and Training), investing in STEM education, and promoting lifelong learning through platforms like Sarawak Skills and CENTEXS.
Levelling the Playing Field for SMEs
In Sarawak, small and medium-sized enterprises (SMEs) form the backbone of the economy. AI can be a game changer for these businesses – helping them reduce costs, manage inventories, improve customer service and analyse trends.
For example, a local café in Kuching could use AI tools to predict customer preferences, manage supplies and even tailor digital marketing. A traditional handicraft business in Kapit could use AI-powered translation tools to reach international customers.
However, adoption remains slow due to barriers like digital illiteracy, lack of awareness, and limited access to financing. Government support in the form of grants, tax incentives, and training programmes will be crucial in ensuring that no business – urban or rural – is left behind in the AI revolution.
AI and Sarawak’s Digital Vision
Sarawak’s commitment to becoming a digital powerhouse in Southeast Asia is evident through initiatives like the Digital Economy Strategy, Sarawak ID and the establishment of the Sarawak Multimedia Authority (SMA).
The state has also launched 5G readiness projects, expanded internet infrastructure to rural areas and invested in smart city technologies in places like Kuching and Miri.
But digital transformation isn’t just about installing hardware. It’s about nurturing a digital culture. This means encouraging innovation, supporting tech start-ups, and building ecosystems where AI solutions can be developed and deployed responsibly.
Moreover, as we deploy AI in more areas of public and private life, we must remain mindful of ethical concerns: data privacy, algorithmic bias and accountability. Establishing local AI governance frameworks aligned with global best practices is essential to maintaining public trust.
What’s Next for Sarawak?
AI is here to stay – and its economic impact will only grow. The challenge for Sarawak is not whether to adopt AI, but how to adopt it inclusively and strategically.
We need to ask ourselves:
How can AI uplift rural communities and not widen the urban-rural divide?
How can we use AI to preserve indigenous knowledge and languages?
How do we ensure AI jobs are accessible to youth across all regions of Sarawak?
What kind of infrastructure, education and policies do we need to lead in Southeast Asia’s AI economy?
The answers lie in collaboration. Between government, industry, academia, and communities. Between innovation and tradition. Between local wisdom and global technology.
Final Thoughts
Artificial Intelligence is not just a technological trend – it’s an economic force reshaping our world. For Sarawak, it presents a once-in-a-generation opportunity to leap into a more prosperous, inclusive and sustainable future.
By embracing AI smartly and ethically, we can build an economy that works not just for the privileged few, but for all Sarawakians – whether you’re in the heart of Kuching or deep in the forests of Baram.
The future is intelligent. The question is: will we be?
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at drjohnlau@gmail.com.
