Investing in high future productivity

KUCHING: Sarawak should focus on investments that promise high future productivity, leveraging its robust financial health.

Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid, highlighted Sarawak’s financial strength in the 2024 Budget, noting a projected fiscal surplus of RM386 million.

“Sarawak’s economy is expected to outpace national growth, with a projected five to six percent increase compared to the national Gross Domestic Product (GDP) forecast of four to five per cent,” he said.

Dr Mohd Afzanizam also said the importance of investing in education to bolster long-term productivity. Despite Sarawak’s financial capability, he pointed out that similar federal-level initiatives face hurdles due to ongoing deficit issues.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg recently announced the implementation of free tertiary education at state universities by 2026, citing the strengthening state economy as a supportive factor.

Meanwhile, Associate Professor of Economics at Putra Business School, Dr Ahmed Razman Abdul Latiff, observed that education consistently receives substantial federal budget allocation.

He said that free federal-level education could materialise under specific conditions, such as increasing and attracting more international students, coupled with efficient institutional management.

Dr Ahmed Razman also suggested private sector collaboration, where industries could finance students’ education in return for future employment commitments.