Deputy Premier: Renewable energy allows Sarawak to mitigate issues triggered by Mideast conflict

KUCHING (March 30): Sarawak is leveraging its strength in renewable energy to cushion the impact of global uncertainties, particularly ongoing geopolitical tensions affecting the energy sector, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

He noted that current geopolitical tensions are “still quite fragile”, affecting not only Sarawak but the global economy, especially supply chains.

“Our main strength lies in renewable energy. While many countries are dealing with energy-related issues, Sarawak is in a better position,” he said.

Awang Tengah, who is Minster of International Trade, Industry and Investment, said this when met after gracing SMD Semiconductor’s ‘Berjarah Raya Aidilfitri 2026’ programme at its office here on Monday.

On investment performance, he said that in 2025, the total investments from foreign direct investment (FDI) and domestic direct investment (DDI) exceeded RM16 billion across the services, primary, and manufacturing sectors.

“Therefore, we will focus on our strengths, particularly in renewable energy, which is a key advantage for Sarawak. We intend to leverage this strength.

“We will also continue promoting our economic sectors and focus on our strategic advantages. Our target markets include Asean countries, China, Japan and Korea,” he said.

He also noted that while the oil and gas sector has been affected, particularly in terms of supply as well as rising transportation and energy costs, the state will continue to develop the sector alongside renewable energy.

“In high-tech and semiconductor industries, several companies have shown interest in investing due to our strong renewable energy resources, particularly hydropower, and our ongoing expansion in this area,” he said.

Asked whether existing investments, including those from Saudi Arabia such as ACWA Power, were affected, Awang Tengah said most of Sarawak’s investors are from countries not directly impacted by the geopolitical situation.

“Investments in renewable energy, particularly solar, mainly come from China, with some also from the Middle East such as Abu Dhabi.

“Their investment commitments remain, but we will continue to monitor the situation. In fact, some investors visited Sarawak last month for follow-up actions on their investment plans,” he said.