DUN Sarawak: Sarawak economy is expected to grow positively

KUCHING, Oct 12: Sarawak's economy is expected to grow between five and six percent by 2027 supported by strong domestic demand and ongoing implementation of various investment projects.

Sarawak Prime Minister, Datuk Tinggi Tan Sri Abang Johari Tun Openg said that household spending is expected to continue supporting economic growth, while stronger external demand will provide additional stimulus to state exports.

He said that while the economic outlook remains positive, Sarawak still faces global uncertainty including commodity price changes, geopolitical developments and other external challenges.

"Therefore, fiscal resilience, economic diversity and state competitiveness must continue to be strengthened in order to ensure long-term prosperity", he said.

He said this when presenting the Sarawak Budget 2027 at the Sarawak State Legislative Assembly (DUN) Conference, today.

Meanwhile, Brother Johari explained that the inflation rate in Sarawak remained moderate at an average of 0.7 percent during the first seven months of 2026 despite external price pressures following developments in the Strait of Hormuz and global energy market uncertainty.

"The decline in prices of some goods in the housing, water, electricity, gas and other fuels groups helped to offset the rise in food and beverage prices", he said.

According to him, the inflation pressure was also alleviated through diesel subsidies based on BUDI MADANI and discounted electricity bills of 25 per cent given by the Sarawak Government to domestic consumers.

"For the whole of 2026, state inflation is projected to be between 1.0 and 1.5 percent, reflecting expectations for a follow-up effect from developments in global energy and commodity prices", he explained.

At the same time, Brother Johari said that Sarawak's labour market situation remained favourable in the first half of 2026, with the total workforce increasing to 1.267 million people compared to 1.262 million during the same period last year.

"The unemployment rate remained stable at an average of 3.4 percent, supported by continuous demand for labour in key sectors especially services, construction and manufacturing", said Abang Johari.-TVS