Industrial assets are not used should be optimized to maximize economic value

KUCHING, Sept. 17: Unused industrial surplus assets still have the potential to generate economic value and need to be optimized to support Sarawak's economic target of RM282 billion by 2030.

Sarawak Deputy Minister of Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni said that companies in Sarawak should look at surplus machinery, equipment and assets not only as materials to be disposed of but also as reusable resources to reduce waste and generate new value.

"We also need to be smart about managing the capital that's already in our system. Unused capital, in the form of derelict equipment, machinery that has been discontinued or an excess industrial asset.

"It is capital that does not contribute to the state and it is also a cost that Sarawak cannot afford as we accelerate efforts to achieve our development goals", he said while addressing the BidMyAsset Borneo Official Council here today.

Dr Hazland said the approach to optimizing existing assets is in line with Sarawak's aspiration to develop a circular economy and ensure that existing resources continue to provide value to the economy.

According to him, the capital attached to an unused asset can be reactivated if the asset is sold, transferred or used by a party that needs it.

He said sectors such as oil and gas, manufacturing, forestry and agriculture among other industries are undergoing operational changes, thus opening up space for assets that are no longer needed to be transferred to another party.

Meanwhile, he said private sector involvement is crucial in ensuring the continuous flow of assets and capital into the economy and not neglect to become losses.

"The Government of Sarawak has taken a clear and planned step in signaling this direction to the private sector to see how they manage assets and make decisions that will keep capital active and productive in Sarawak's economy.

"What we are seeing today is precisely the response of the private sector that we welcome as businesses build platforms, collaborations and infrastructure to support Sarawak's growth and industrial transition", he said.