Sarawak expands its gas extraction activities

KUCHING, 1 Oct: Sarawak is exploring opportunities to partner with Japanese companies HighChem and Indorama Ventures to expand gas-based distillation activities including potential production of materials for the garment industry as well as other petrochemical products.

Sarawak Premier, Datuk Patinggi Tan Sri Abang Johari Tun Openg said the effort was part of Sarawak's strategy to shift from just exporting raw resources to developing higher-value-added waste industries.

According to him, Sarawak has strength in terms of resources and industrial base that can be utilized to create new sectors in line with current technological developments.

"I share about what Sarawak should build through the power that is in Sarawak. Both, there may be new industries that can be created as a result of the latest technology.

"For example, we can develop our gas included to produce materials for the clothing industry", he said.

He said this when he was met after delivering the inaugural address for Sarawak Corporate Leadership Summit 2026 (SCOPE):From Vision to Reality in Sarawak's Transformation Journey, here, today.

Brother Johari explained that among the technologies being explored is HighChem in collaboration with companies Sakura and Indorama.

According to him, the parties are currently planning to place the company's operations in Bintulu with an estimated investment of about US$1 billion.

"They now want to place the company's operations in Bintulu with a total investment of US$1 billion. It's a new industry", he said.

He said the development shows that Sarawak has resources and advantages which can be transformed into new and more advanced industries.

"That's why I think Sarawak has the power and also the resources to transform us into advanced and new industries. That's my emphasis", he explained.

Earlier, Brother Johari said that natural gas owned by Sarawak can be used to develop various gas-based industries including petrochemical and methanol sectors.

He said, the development of silk industry will not only enhance the economic value of Sarawak's indigenous resources but also open up more business opportunities and high-skilled jobs to locals.

"This is something new, and I hope our people can be trained to participate in this petrochemical industry, which also offers a fairly high salary", he said.

Brother Johari said that infrastructure development and pipeline network is also important to support the growth of gas-based industry in Sarawak.

He also stressed the importance of Sarawak to keep up with latest technological developments, including artificial intelligence (AI), in order to enhance industrial competitiveness.

According to him, although the cost of implementing technology may be high in its early stages, it is expected to decrease as the technology continues to develop and become more widely used.

"Although at first the cost is quite high, it will decrease due to technological advances", he said.

He said that the development of displacement industry should also go hand in hand with local talent development so that people of Sarawak have the skills and expertise to participate in this new sector.

The move is in line with Sarawak's efforts to expand its outreach activities, enhance the value of local resources and create more skilled and high-value jobs in the region. - TVS