Middle East crisis: Foreign investments in Sarawak remain intact

Datuk Amar Awang Tengah Ali Hasan

By Shikin Louis

KUCHING, March 30: Existing foreign direct investments (FDI) in Sarawak, including those linked to the Middle East, remain intact for now despite escalating geopolitical tensions, says Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

Awang Tengah, who is also the Minister of International Trade, Industry and Investment Sarawak, said many investors in the State’s renewable energy sector originate from countries not directly affected by the crisis, particularly in solar energy.

“A number of investors come from countries not directly impacted by the current geopolitical situation,” he told reporters after attending a Hari Raya open house hosted by SMD Semiconductor at La Promenade Mall here today.

He added that investments from the Middle East, including Abu Dhabi, remain on track.

“The commitment for them to invest is already there, but we will monitor the situation,” he said.

Awang Tengah also noted that interest from China remains strong, with some investors visiting Sarawak as recently as last month for follow-up on potential investments.

At the same time, he said Sarawak will continue to leverage its renewable energy strength and strategic advantages to sustain investor confidence amid global uncertainties.

He revealed that Sarawak recorded more than RM16 billion in combined FDI and domestic direct investment (DDI) last year across the primary, services and manufacturing sectors.

Over the past five years, approved investments have exceeded RM116 billion, with the majority already realised and the rest ongoing.

Awang Tengah noted that Sarawak’s renewable energy—largely derived from hydropower—has become a key pull factor, supported by its strategic location and conducive investment ecosystem.

He added that the State will continue to promote key sectors while focusing on strategic markets including Asean countries, China, Japan and South Korea.

“While certain areas such as oil and gas supply, as well as transportation and energy costs, are affected, we will navigate these challenges by capitalising on what we have,” he emphasised. — DayakDaily