Federal gov’t to begin formal talks with Sarawak on Sibu Special Economic Zone

Anwar tables Budget 2027 in the Dewan Rakyat on Oct 9, 2026. Photo: Bernama (2026) Copyright Reserved

By Karen Bong

KUCHING, Oct 9: The federal government will begin formal negotiations with Sarawak to finalise the framework for developing the Sibu Special Economic Zone (SEZ), including investment incentives, a one-stop investment facilitation centre and strategic infrastructure requirements.

Prime Minister Datuk Seri Anwar Ibrahim said the Sarawak government had expressed its commitment to developing the proposed economic zone.

The negotiations will focus on establishing the necessary framework and facilities to facilitate investment and support the zone’s development.

Anwar, who is also Finance Minister, said this when tabling Budget 2027 in the Dewan Rakyat today.

Separately, he said Malaysia and Indonesia had agreed to expedite the reopening of the Tebedu-Entikong trade route.

“Road infrastructure along the Sabah, Sarawak and Kalimantan borders will continue to be upgraded to facilitate cross-border movement,” he said.

On the Johor-Singapore Special Economic Zone (JS-SEZ), Anwar said it had attracted RM132 billion in investments from 2025 through June 2026.

He said he and Singapore Prime Minister Lawrence Wong would launch the JS-SEZ master plan and blueprint by the end of this year.

“Sedenak Nexus is set to become a new industrial hub in the northern part of the JS-SEZ, with potential investments of RM12 billion and 45,000 jobs.

“The road from the Sedenak interchange will be upgraded, alongside facilities to improve connectivity to major ports and regional trade networks,” he said.

Anwar added that a special task force had been established under the Queen Bee approach to coordinate inter-agency negotiations aimed at attracting leading companies in strategic sectors to invest in the JS-SEZ. — DayakDaily