RM10.9bil allocation in State Budget to address income inequality

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KUCHING: The unveiling of RM10.9 billion allocation for development expenditure in the State Budget ‘25 is designed to tackle the persistent issue of income inequality.

Universiti Malaysia Sarawak (Unimas) economist Dr Dzul Hadzwan Husaini pointed out that while Sarawak is recognised as a high-income state at the macro level, disparities remain significant, particularly between urban and rural populations.

He explained that this funding would help enhance infrastructure to bridge the gap between urban and rural areas, creating more equitable access to opportunities.

“Improved infrastructure will enable closer connectivity, which can lead to increased business and job opportunities in underserved rural areas. Given Sarawak’s vast land area and dispersed population, comprehensive infrastructure investment is essential.

“This approach will not only improve connectivity between people but also ensure efficient logistics to support the business sector. Through these channels, we aim for more balanced development, bringing rural and urban communities closer and fostering inclusive economic benefits,” he said when contacted by New Sarawak Tribune.

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Moreover, he said that the projected revenue surplus of RM486 million in the Budget further strengthens Sarawak’s financial reserves, building on an already solid fiscal foundation.

Following this, he highlighted the importance of maintaining a strong fiscal position, especially in the face of global uncertainties.

“During the Covid-19 pandemic, Sarawak’s reserves enabled the state to launch the Bantuan Khas Sarawakku Sayang assistance programme, which successfully cushioned Sarawakians from severe economic impacts.

“This experience underscored the importance of fiscal resilience, allowing us to respond effectively to crises without compromising long-term financial stability.

“By continuing to prioritise a balanced and disciplined approach to economic management, Sarawak demonstrates excellent resource management, ensuring that we can support future development initiatives and safeguard the well-being of our population,” he said.

Dzul Hadzwan further noted that Sarawak’s focus on green initiatives and digital transformation represents a forward-looking strategy that supports long-term economic resilience.

With global demand for green energy expected to reach levels comparable to oil and gas, he pointed out that establishing green energy production positions Sarawak as a competitive player in this high-growth sector.

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“Sarawak is rich in renewable energy resources, and leveraging this advantage not only diversifies our income sources but also creates a sustainable revenue stream for the future.

“Digital transformation plays a crucial role in supporting this transition by enhancing energy efficiency and productivity. Digital technologies enable high-tech adoption across industries, promoting economies of scale that add significant value to our economic output.

“Together, these green and digital initiatives build a robust foundation for sustainable growth, helping Sarawak navigate climate challenges while aligning with global shifts toward more sustainable practices,” he said.

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