Sarawak on track for high-income status

THROUGHOUT the 61 years since its independence, it is undeniable that Sarawak has grown tremendously in all aspects of its development.

Let’s reflect on the remarkable achievements that have propelled Sarawak into economic prosperity and sustainable development.

As we all know, Sarawak’s economy has seen substantial growth over the past decade, driven by strategic investments and a focus on diversifying its economic base.

Its commitment to sustainable development is evident in its pioneering efforts in renewable energy and green economy initiatives.

The state’s abundant natural resources, particularly its rivers, have been harnessed to generate clean and renewable energy.

Hydropower projects, such as the Bakun and Murum dams, have not only provided a reliable energy source but also significantly reduced carbon emissions, aligning with global climate goals.

In addition to hydropower, Sarawak is also exploring other renewable energy sources, including solar and biomass.

These developments are part of a broader strategy to diversify the state’s energy mix and ensure energy security for the future.

Not only have these initiatives contributed to environmental sustainability but have also created new economic opportunities, driving job creation and technological innovation.

With Sarawak’s immense energy resources and tapping into new ideas, the state has successfully attracted both local and international businesses to invest on its renewable energy projects.

InvestSarawak chief executive officer Timothy Ong in an interview with Nikkei Asia remarked that Sarawak is transcending its traditional energy models to embrace a future where renewable energy is the cornerstone of economic and environmental sustainability.

“The future of Sarawak lies in green energy, and our commitment to this vision is unwavering. Through strategic investments, partnerships, and a dedicated workforce, we are not just imagining a sustainable future; we are actively building it,” he said.

Earlier this year, it was clear that the state’s government effort is paying off with a slew of foreign direct investment into the green sector.

One of them involved Sarawak Energy signing a memorandum of understanding in October last year with the United Arab Emirates’ Abu Dhabi Future Energy Company, also known as Masdar, as part of a joint effort to develop 2 gigawatts of renewable energy projects in Malaysia at an investment value of $8 billion.

Beyond hydropower, Sarawak is also aiming to become a leader in the nascent hydrogen energy industry in the region.

Collaborations with Japanese and South Korean companies such as SK Energy, Sumitomo Corp. and Eneos highlight the state’s role in the ongoing international push towards hydrogen as a clean, alternative fuel source.

With the investments and collaboration coming in, on May 18, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg tipped Sarawak’s revenue to hit RM16 billion this year.

This, he said, is due to the encouraging state economic performance in the first three months of this year.

“At the recent Sarawak State Legislative Assembly (DUN) sitting, it was announced that Sarawak successfully collected a revenue of RM4.798 billion from January to March this year.

“So if you calculate on average, in the first quarter alone we have managed to collect that much. Let’s assume that RM4 billion is multiplied by four quarters, what is the amount? You can count it yourself,” he said.

In light of this, he pointed out that the state’s revenue which is on a very good track through various new economic initiatives gives confidence that the state’s revenue forecast this year would be higher than last year which amounted to RM13.3 billion.

“With how it is, the expectation can be achieved. And this does not yet include our involvement in carbon trading, gas aggregators and many other clean energy fields,” he said.

With the state diversifying its income, Sarawak’s government has been unwavering in its commitment to achieving high-income status by 2030.

With a comprehensive development agenda, the state has focused on improving infrastructure, enhancing human capital, and fostering a conducive business environment.

Investments in education and skills development have been prioritised, ensuring a workforce capable of meeting the demands of a modern economy.

The state’s economic transformation has been supported by robust policies and initiatives aimed at increasing productivity and competitiveness.

Public-private partnerships have played a crucial role in this journey, with collaborative efforts leading to the successful implementation of key projects.

On July 6, data from the World Bank stated that Sarawak has reached the ranks of a high-income state.

According to World Bank lead economist Apurva Sanghi, Sarawak qualifies as a high income state as it has a gross national income (GNI) per capita of more than US$13,205 (RM61,442).

“We (World Bank) just released our latest high-income data. 83/218 countries are now high income. Newest entrants: Guyana and American Samoa.

“While Malaysia’s quest to join the high-income club continues, there is one nice surprise: Sarawak is now a high-income state,” he said on Twitter.

As we celebrate Sarawak Day today, it is clear that the state has made significant strides in business, economic growth, and sustainable development.

With a strong foundation in place, Sarawak is well on its way to becoming a high-income state, fostering a green economy, and ensuring a prosperous and sustainable future for generations to come.