With its largest budget, Sarawak’s 2025 fiscal plan aims to bridge urban-rural gaps, boost digital transformation, and uplift social welfare, ensuring equitable progress for all Sarawakians. This comprehensive blueprint reflects the state’s commitment to sustainable growth, inclusive development, and innovation.
The Sarawak Budget 2025, themed ‘Together building a prosperous future’, reflects the state’s ambitious ‘expansionary’ vision under Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
Designed as the largest budget in Sarawak’s history, totalling RM15.8 billion – a 16 per cent increase from the 2024 budget of RM13.6 billion – with an estimated anticipated revenue of RM14.2 billion next year, the budget prioritises economic growth, equitable social development, digital transformation, and infrastructure enhancement.
For comparison, the following Sarawak State Budgets show a steady increase under Abang Johari since he took office in 2017.
2018: RM5.78 bln
2019: RM11.9 bln
2020: RM9.891 bln
2021: RM9.83 bln
2022: RM10.646 bln
2023: RM10.797 bl
2024: RM13.6 bln
2025: RM15.8 bln
The 2025 budget reaffirms the state’s determination for inclusive progress, ensuring that all Sarawakians, from urban centres to rural areas, benefit from the state’s growth.
Education takes centre stage, with substantial allocations aimed at reducing educational disparities and enhancing opportunities for all students. Recognising the impact of financial constraints on students from lower-income households, the budget introduces several initiatives, including RM1,200 pocket money for Sarawakian students enrolled in tertiary institutions nationwide.
The move will benefit around 25,000 students, especially rural students, helping them manage the costs of essential needs and academic expenses.
The state has also allocated RM20 million to support SeDidik, Sarawak’s early childhood provider, and RM14 million in grants for registered early childhood care institutions. These funds stress the importance of accessible early education as a foundation for lifelong learning.
For secondary education, the Sarawak Education Enhancement Programme (SEEP) received a funding boost of RM20 million, with plans to expand free tuition in core subjects, bridging gaps between rural and urban students.
The government’s investment in state-owned international schools, with RM27 million allocated for operational costs, highlights its determination to provide a world-class education for Sarawakians. The focus on technical and vocational education, particularly through enhanced TVET training, will position Sarawak’s youth to meet the demands of an evolving job market. All these efforts reflect the budget’s emphasis on equitable educational access and skill development.
Strengthening civil service
In Sarawak’s quest for a world-class civil service, the 2025 budget introduces initiatives to strengthen governance and enhance service delivery. A high-performing civil service is essential to achieve Sarawak’s development goals, and the 2025 budget makes this a priority.
With RM18.5 million allocated for civil service training programmes, the state aims to foster a culture of knowledge, adaptability, and innovation within the Sarawak civil service (SCS).
The training initiatives focus on building core competencies, leadership skills, and emerging leaders, creating a strong pipeline for future government roles.
And alignment with the federal government civil service reforms, Sarawak has adopted the recently announced Sistem Saraan Perkhidmatan Awam (SSPA) which will incur RM67 million in the 2025 budget.
However, as crucial as the budget allocations are, there is a need for a merit-based recruitment process within the civil service to ensure that only the most capable candidates are appointed, enhancing the overall effectiveness of public service delivery.
The merit-based approach could mirror the state’s policy on higher education, where the state government recently announced that academic performance will take precedence in university admissions. This approach could encourage a culture of excellence in governance in the civil service while respecting existing Bumiputera quotas.
Laying the groundwork for regional equity
Abang Johari’s commitment to reducing the urban-rural divide is evident in his infrastructure plans, with RM10.9 billion allocated for development projects. A significant portion of this, 62 per cent, is focused on rural development through initiatives like Projek Rakyat, Rural Transformation Projects (RTP), and specific development programmes managed by regional agencies.
These programmes will enhance access to essential services, including electricity, water, and roads, making rural communities more connected and integrated into the state’s economic framework.
The Kuching Urban Transportation System (KUTS) project, funded with RM1.42 billion under Alternative Funding, will improve mobility within urban and suburban areas. With eco-friendly transportation as a priority, the initiative aligns with the state’s vision for sustainable development.
These infrastructure efforts are vital to economic growth, creating job opportunities, and enhancing quality of life across Sarawak.
Bridging connectivity
In a progressive shift towards a technology-driven economy, Sarawak continues to champion digital transformation, with RM470 million allocated under Alternative Funding to the Sarawak Digital Economy Corporation Berhad (SDEC) to support projects under the SMART initiative, the Sarawak Rural Broadband Network (MySRBN), and infrastructure development in rural regions.
With internet coverage at 81.68 per cent in mid-2024, the state is making tangible progress in bridging the digital divide.
Furthering this digital agenda, the budget introduces the Sarawak Artificial Intelligence Centre (SAIC) to enhance innovation and create high-value jobs. Initiatives like the GoDigital Grant and Digital Innovation Hubs will support small and medium-sized enterprises (MSMEs) adopting digital tools, making Sarawak a digital business hub for local entrepreneurs. Together, these projects reflect the state’s vision of a connected, inclusive digital economy.
Caring for all Sarawakians
The 2025 budget includes a robust social welfare component aimed at ensuring that the state’s progress benefits all citizens, especially vulnerable groups. This commitment is evident in initiatives like Sumbangan Keperluan Asas Sarawak (SKAS), a major programme that provides financial assistance to low-income groups to help cover necessities.
With RM450 million allocated to SKAS, the programme is expected to assist 850,000 residents, reinforcing the state’s goal of reducing the cost of living burden for struggling households.
Other welfare programmes include RM50 million for the Senior Citizen Health Benefit, a scheme that provides RM500 in cashless medical assistance to eligible seniors, and RM55 million for various social aid programmes, including medical support, school assistance, and financial help for individuals with disabilities.
These welfare provisions demonstrate the budget’s comprehensive approach to improving the quality of life across diverse demographic groups.
Laying foundations for stability
Housing and healthcare are the mainstays of societal well-being, and the Sarawak Budget 2025 addresses both with notable allocations. For housing, RM54 million has been earmarked for affordable Rumah Spektra Permata projects, adding 1,000 units in multiple locations, while the Longhouse Loan Scheme continues to support rural families with interest-free loans for home improvement.
And RM50 million has been set aside for housing subsidies for low-income families, making homeownership a realistic goal for more Sarawakians.
In healthcare, the budget allocates RM1 billion for a state-of-the-art cancer centre to provide comprehensive cancer care and advanced treatment options. The Senior Citizen Health Benefit of RM50 million for cashless medical aid will support 100,000 seniors in accessing necessary medical services.
These initiatives highlight the state’s holistic approach to health and housing, addressing immediate needs and long-term stability.
Securing Sarawak’s future
Sarawak’s commitment to become an economic powerhouse is further bolstered by initiatives in green energy and revenue reengineering. The Sarawak Energy Transition Policy (SET-P) lays the foundation for an environmentally responsible future, with targets for increasing renewable energy production and reducing carbon emissions. The Sarawak Hydrogen Economy Roadmap positions the state as a Southeast Asian leader in clean hydrogen production, with substantial foreign investment already secured.
The Sarawak Aerospace Industry Development Roadmap, though nascent, demonstrates the state’s forward-thinking approach to technological advancement, focusing on workforce development, infrastructure, and international collaboration.
These initiatives will not only create new revenue streams but also contribute to the global energy transition.
The Sarawak Budget 2025 represents a landmark commitment to progress across economic, social, and environmental dimensions. Through substantial allocations for education, civil service reform, infrastructure, digital transformation, and social welfare, Abang Johari’s budget ensures that all Sarawakians have opportunities to thrive.
As Sarawak steps into a new era of growth, the budget reflects the state’s vision of an inclusive, prosperous, and sustainable future. By focusing on equitable distribution of resources and fostering resilience, Sarawak is setting a model for balanced, people-centred development, creating a brighter future for generations to come.
The views expressed here are those of the writer and do not necessarily represent the views of New Sarawak Tribune.
