Economic analyst cautions against delivery leakages

KUCHING: Budget 2027 allocations must be backed by efficient implementation and safeguards against leakages to deliver quality infrastructure and lasting economic benefits for Sarawak.

Putra Business School economic analyst Associate Professor, Dr Ida Md Yasin said allocating funds was only the first step, with project execution equally important in determining whether spending benefitted communities.

“Those responsible must act with integrity, deliver the best possible quality and use the allocations efficiently,” she told Sarawak Tribune in her response to Budget 2027.

She said road development represented a long-term investment for Sarawak, enabling the movement of people and goods while opening opportunities for rural economic activity.

However, weak implementation could undermine these benefits even when funding was available.

“We do not want a situation where allocations are available but the roads are of poor quality or fail to deliver what is intended,” she said.

Ida said Sarawak’s vast area and dispersed population made infrastructure development costly, requiring sustained federal support rather than improvements confined to a single budget year.

She welcomed increased funding but said continued investment was needed to strengthen connectivity across the state.

On the proposed Sibu Special Economic Zone, she called for planning that looked beyond immediate investment opportunities to anticipate future economic demand.

“When planning the Sibu Special Economic Zone, we should be looking 20 to 30 years ahead, rather than just five years,” she said.

The selection of industries should reflect Sibu’s strengths, including its location, connectivity and available workforce, while assessing what the area could supply to future markets.

She said green technology, agriculture and energy were among the possibilities to examine, rather than assuming any particular sector should lead the zone’s development.

For micro, small and medium enterprises (MSMEs), Ida suggested additional tax incentives to encourage investment in productive assets.

These could support machinery purchases, equipment upgrades and factory expansion, helping businesses reinvest and strengthen their operations.

She said tax relief could ease financial pressure, although it might not fully offset rising operating costs.

On wages, Ida urged a longer-term approach that enabled MSMEs to offer better pay while recognising their financial constraints.

She said workers’ earnings should also reflect their qualifications, capabilities and experience.

Meanwhile, she welcomed greater educational opportunities for young people in Sabah and Sarawak, saying these could prepare them for employment or entrepreneurship.

She encouraged students to pursue further studies even when this required leaving their home states, with the aim of eventually contributing their knowledge and skills locally.

However, attracting graduates back would depend on suitable employment opportunities.

“Generally, people want to return to their home states because their families are there, provided there are jobs suited to them,” she said.