S’wak’s economic growth accelerates through diversification and strategic investments

KUCHING: Sarawak’s economy is gaining momentum as a result of its diversification efforts.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the state’s economic transition has taken place from one reliant on agriculture and commodities to a more diversified, industrialised economy, enhanced by value addition and driven by technology.

“Diversifying the economy will not only strengthen Sarawak’s economic base but also make it more resilient to global challenges. 

“To this end, the state government has introduced policies and initiatives that focus on technological innovation and high-value-added industries, while taking strategic steps to expand its strategic assets,” he said.

He said this during the grand parade in conjunction with Head of State Tun Pehin Sri Dr Wan Junaidi Tuanku Jaafar’s official 78th birthday celebration at the Padang Merdeka here this morning (Oct 12).

Abang Johari further said recently, Sarawak made a significant move by becoming the largest shareholder in Affin Bank, holding a 31.25 per cent stake, which will not only strengthen the state’s presence in the financial sector but also help boost the state’s economy. 

“In addition, the acquisition of Bintulu Port by the Sarawak government marks another strategic success, which ensures full control over this vital port as it serves as a key artery for Sarawak’s economy, especially in the trade and export of commodities.

“I expect shipping activities and services at Bintulu Port to increase with the launch of the Borneo Supply Base, managed under the Bintulu Port Authority.

“The establishment of the Borneo Supply Base to serve the petroleum industry in Sarawak will undoubtedly have a significant impact on the overall economic growth of Sarawak. 

“This is a historic step after 40 years of the offshore petroleum industry in Sarawak, which had been based in Labuan until now,” he said. 

He also said he is confident that Sarawak’s authority under the Distribution of Gas Ordinance 2016 (GDO 2016), which implements the Sarawak Gas Roadmap programme to channel natural gas to other terminals across Sarawak from Bintulu, will profoundly impact the state’s gas and petroleum industries.

“The Sarawak government has appointed the state-owned oil company, PETROS, as the sole gas aggregator, based on the authority provided by GDO 2016. 

“This move will further strengthen Sarawak’s economy, with the hope of raising household incomes to levels above the national average, thereby avoiding Sarawak being labelled as a ‘rich state with poor people’,” he said. 

To further drive Sarawak’s economic growth, he said Sarawak needs its own airline services, through acquisition of MASwings which is not just for passenger transportation, but more importantly, as an investment to stimulate economic growth and provide vital support services.

On the same note, he said the technology sector is another key enabler in Sarawak’s economic transformation under Post COVID-19 Development Strategy (PCDS) 2030. 

“Recently, I launched an aerospace academy at Centre for Technology Excellence Sarawak (CENTEXS) in Lundu, as part of our efforts to prepare competent human capital in aerospace and related fields under the national aerospace programme,” he said. 

On the agricultural sector, he said Sarawak now focuses on commercial farming. 

“We plan to develop over 20,000 hectares of large-scale rice cultivation areas in Lundu, Simunjan, Gedong, Sri Aman, Spaoh, Limbang, and Lawas. By using new technology and hybrid rice varieties, Sarawak will be able to harvest rice five times over two years. 

“This will undoubtedly boost rice production in Sarawak and help farmers increase their incomes,” said Abang Johari.