KUCHING: Sarawak must realign its economic policies in response to the recent tariff measures introduced by the United States.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said that while the impact on the economy may seem minimal, it should not be underestimated, especially as it could influence global oil prices given that oil and gas remain among Sarawak’s key sources of revenue.
“The current price of crude oil stands at USD65 per barrel, but in our budget projections, we estimated it at around USD85 to USD90 per barrel. That’s a shortfall of approximately USD20.
“This means our revenue will decline, and we cannot predict with certainty what will happen by the end of this year or going into 2026.
“Given this context, we must adapt our economic policy to ensure we remain on a growth trajectory and continue to have sufficient revenue to meet our existing commitments,” he said.
He said this during the State Financial Secretary’s Office Ramah Tamah Aidilfitri 2025 event at a leading hotel here on Wednesday.
Abang Johari added that among the strategic measures that will be taken is the consolidation of assets to assess the value of existing assets for analytical purposes.
He said the Sarawak government will explore ways to innovate and add value to its assets, in line with current regional developments especially within the Asean member states.
“We need to find methods and approaches to asset management that can have a positive impact on the entire economy, despite some adjustments in the global economy.
“We cannot rely solely on oil and gas. We need to innovate and introduce technology in our efforts to increase the state’s revenue based on existing assets,” he explained.
He further said that another key strategy is to identify new sources of income within the legal framework and constitutional rights granted to Sarawak, using new technologies and assets.
According to him, this includes the consolidation of all government agencies and economic sectors, along with centralising government-owned assets under a single platform.
“In doing so, we will be able to explore various ways of leveraging these assets to generate additional revenue.
“For example, hydrogen is one of them. We derive it from water. If we use water to produce hydrogen, then we can consider imposing royalties on the use of that water.
“This will open up additional revenue sources from water. Apart from that, the hydrogen commodity itself will definitely provide us with additional income,” he said.
