Awg Tengah: S’wak trade surplus, lower total trade value recorded in 2023

KUCHING (May 15): Sarawak has achieved a trade surplus of RM67.7 billion in 2023 but registered a drop in total trade value to RM193 billion due to slower global demand, lower commodity prices and geopolitical tension, says Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

Awang Tengah, who is International Trade and Investment Minister, said the total trade value of Sarawak was lower at 11.2 per cent in 2023 and exports declined by 14.8 per cent to RM130.4 billion, while imports contracted by 2.5 per cent to RM62.6 billion compared with 2022.

“Sarawak exports remain dominated by liquefied natural gas (LNG), which accounted for 42 per cent of the share of total exports in 2023,” he said during his ministerial winding-up speech at the Sarawak Legislative Assembly (DUN) today.

He also said the export volume of LNG had increased marginally at 0.7 per cent to 24.8 million tonnes, while the export value had dropped by 11.6 per cent to RM54.8 billion due to weak commodity prices.

“The average price for LNG declined by 12.2 per cent from RM2,520 per tonne to RM2,213 per tonne during the same period.”

On the other hand, he said the exports of electrical and electronic products rose by 15.4 per cent in 2023, supported by the increased demand in semiconductor, solar and components for electric vehicle batteries.

He informed that the electrical and electronics sector is expected to grow at five per cent this year, due to positive global demand for green industries such as solar, electrical vehicles and medical technology devices.

As for total imports, he said it had dipped by 2.5 per cent to RM62.6 billion in 2023 and imports of intermediate goods, which accounted for 52.4 per cent of the total imports, decreased due to slowdown in manufactured goods exports.

However, Awang Tengah said the total trade value for the first quarter of this year had increased by 5.9 per cent to RM52.2 billion compared with the same period in 2023.

“Both exports and imports rebound by 5.8 per cent and 6.3 per cent respectively, supported by growth in the global and domestic demand,” he said.

On the setting up of the Sarawak Trade and Tourism Office in Singapore (Statos), Awang Tengah said the office had facilitated total exports of over RM160 million in 2023 with products exported included birds nest, gula apong, highland rice, kek lapis and seafood.

He also said his ministry is promoting export-oriented activities by facilitating small and medium enterprises (SMEs) to expand their markets such as to China and the United Kingdom.

“This programme has attracted potential collaboration to invest in agriculture, energy storage, education and health worth RM100 million.”

Thus, Awang Tengah said Sarawak’s strategic location and proximity to Singapore, Indonesia and Brunei has positioned the state as a gateway to Southeast Asian markets.

He said the renewed border trade agreement between Malaysia and Indonesia in 2023 will boost economic trade between both countries, especially with the development of a new Indonesian capital, Nusantara, in Kalimantan.

Awang Tengah told the august House that 10 Malaysian companies had submitted letters of intent to participate in the development of Nusantara.

A Sarawak Trade and Tourism Office in Brunei (Statob) will begin operations this year and a Sarawak Trade and Tourism Office in Kalimantan, Indonesia will be established to promote trade, investment and tourism.

In addition, he said the border towns at Sarawak-Indonesia border are being developed to facilitate trade, including the construction of roads at the temporary border post in Serikin and upgrading of facilities for Immigration, Customs, Quarantine and Security (ICQS) there.

“Master plans involving border towns such as Lubok Antu, Serian, Bau, Kapit, Belaga, Mulu, Bario and Ba Kelalan are being developed to identify catalyst projects for potential joint border development,” he said.