Assess development impact

Infrastructure projects must improve employment, incomes and living standards

KUCHING: Sarawak’s RM6.4 billion rural development allocation under the 2027 State Budget must generate better employment opportunities, higher household incomes and stronger local economic activity to ensure meaningful benefits for rural communities.

Universiti Malaysia Sarawak (UNIMAS) Faculty of Economics and Business senior lecturer Dr Mohd Khairul Hisyam Hassan said the allocation, part of the state’s RM10.098 billion development expenditure, should be assessed based on improvements in household welfare and economic opportunities rather than infrastructure provision alone.

He said investments in roads, bridges, electricity and water supply could reduce business costs, improve market access, increase productivity and encourage private investment, particularly in rural areas.

“The development of roads and bridges can reduce travel time and transportation costs, as well as minimise losses, particularly for agricultural products and other rural industry outputs.

“Access to water and electricity could further improve business productivity across several sectors, including agriculture, manufacturing, tourism and small and medium-sized enterprises (SMEs),” he told Sarawak Tribune.

Khairul said improved connectivity would enable rural producers to reach collection centres, processing facilities and urban markets more efficiently, while development projects could generate demand for skilled and semi-skilled workers.

“This could improve employment quality and wages in related occupations, stimulate local business growth and increase household disposable income.

“These economic activities could contribute to better living standards, particularly among rural communities,” he said.

He also emphasised the importance of employing local workers, strengthening technical skills and increasing the use of locally sourced production inputs to maximise economic benefits within Sarawak.

“The utilisation of local inputs in production is important to ensure that economic activities undertaken in Sarawak generate greater benefits for the local economy, rather than relying heavily on imported production inputs from outside the state,” he said.

Khairul said stronger local supply chains could enhance economic resilience, reduce exposure to external shocks and help curb the outmigration of Sarawakians seeking employment elsewhere.

He said the effectiveness of the allocation should be measured through household income growth, job creation, new business establishments and increased sales arising from development initiatives.

“In economics, every development project implemented should incorporate an appropriate monitoring framework to ensure that the investments made can generate the outputs outlined in the regional development plan,” he said.

Khairul called for comprehensive assessments before and after project implementation to determine whether public expenditure had achieved its intended objectives.

“If significant economic impacts are not observed following the implementation of a development project, the Government may need to intervene to ensure that development initiatives, particularly those in rural areas, deliver improved living standards for the people while contributing to the overall economic growth of Sarawak,” he said.