As 2024 draws to a close, this year provides a reason to be optimistic about Sarawak’s prospects in the coming year.
Last month, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, while presenting the Sarawak 2025 Budget, stated that the state’s revenue is estimated to be around RM14 billion.
This growth is a significant leap from seven years ago when he assumed office, with Sarawak’s revenues standing at around RM5-6 billion.
This remarkable growth reflects the state’s ambitious strategies for diversifying its economy, maximising natural resources, and investing heavily in infrastructure development.
A significant portion of the state’s income was made possible through a larger share of oil and gas revenues via the State Sales Tax (SST), which has been and still is a legal and political masterstroke.
These increased revenues have enabled the implementation of long-term mega projects and the funding of people-centric initiatives such as welfare and education policies.
This is how wealth cascades and benefits the people, providing them access to better infrastructure, a social safety net, and future growth.
GROWTH CATALYST
A standout feature of Sarawak’s economic strategy under Abang Johari’s leadership is its pioneering hydrogen economy policy. Recognizing the global shift towards clean energy, Sarawak has positioned itself as a leader in hydrogen production and usage.
The state’s investments in hydrogen infrastructure, including the development of production plants and hydrogen-powered public transportation, have attracted international attention.
Sarawak’s hydrogen initiatives are part of its broader goal to become a major exporter of green hydrogen to countries like Japan and South Korea, which are transitioning towards net-zero emissions.
Introducing green solutions and focusing on energy transition has positioned Sarawak as the main green energy player in Malaysia, with Putrajaya having to catch up with Sarawak’s progress in this field.
TAKEOVER TRIFECTA
A key milestone for Sarawak in 2024 was the state’s strategic acquisition of MASWings, Bintulu Port, and Affin Bank.
These acquisitions demonstrate the state’s commitment to strengthening its economic foothold and enhancing local services.
By taking control of MASWings, Sarawak aims to improve regional connectivity and ensure more reliable air travel services for its people, particularly in rural areas.
The acquisition of Bintulu Port is a game-changer for Sarawak’s industrial and export sectors. The port plays a crucial role in facilitating trade and supporting Sarawak’s ambitions as a regional industrial hub. With greater control over port operations, Sarawak can streamline logistics, enhance efficiency, and attract more investments.
Sarawak’s investment in Affin Bank highlights its focus on financial empowerment. By holding a stake in a major financial institution, the state can ensure better financial services and support for local businesses and individuals.
POLITICAL CHALLENGES
While Sarawak has made remarkable progress, its political relationship with the federal government remains complex.
There is no doubt that the Premier is the most influential person in Malaysia after Prime Minister Datuk Seri Anwar Ibrahim in national politics.
Much has been said about Sarawak’s demands under the Malaysia Agreement 1963 (MA63) for eroded state rights to be returned. Although there have been recent improvements, the road ahead is filled with challenges.
The gas aggregator issue has been a sensitive point that Sarawak and Putrajaya have navigated carefully because of its importance to Sarawak and the nation’s economy.
They say, “Don’t kill the goose that lays the golden eggs,” but the issue lies in revenue sharing and distributing the nation’s wealth.
I am confident that the Premier will ensure that Sarawak is given its due, with its authority in gas distribution being respected.
The Sarawak government understands that there are many ways to achieve its goals, with the Premier being described by people in Malaya as a no-nonsense negotiator who knows when to stand firm.
VISION FOR THE FUTURE
Sarawak’s aspirations extend beyond 2025. The state’s Post-COVID-19 Development Strategy (PCDS) 2030 envisions a thriving, inclusive, and sustainable economy.
As Sarawak positions itself as a regional hub for green energy and technology, it must also ensure growth benefits all Sarawakians. This includes empowering the youth, strengthening social welfare programs, and preserving its unique cultural heritage.
2025 promises to be another milestone year for Sarawak. With strong leadership, clear strategies, and a commitment to inclusivity, the state is on track to achieve unprecedented growth.
While challenges remain, Sarawak’s resilience and innovative spirit will undoubtedly see it through.
The views expressed here are those of the writer and do not necessarily represent the views of the Sarawak Tribune.
