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KUCHING: Sarawak has budgeted about RM9bil to fund development projects under its 2024 state budget – the highest so far.
In 2024, Sarawak is projected to increase revenue collection to RM12.75bil, and the development expenditure would account for 66% of the total proposed expenditure, said Sarawak Premier and Finance and New Economy Minister Tan Sri Abang Johari Tun Openg.
“The 2023 state budget is expected to generate a surplus of RM386mil.
“This is the largest ever budget unveiled by the Sarawak government in history, a testimony to the success of our revenue re-engineering efforts and prudent financial management.
“With this, we are adopting an expansionary budget that invests heavily in infrastructures and places the well-being of the rakyat at its centrepiece,” he said in tabling the 2024 state budget in the state assembly yesterday.
He said the budget would boost government spending to stimulate the state’s economic growth.
Sarawak is expected to achieve economic growth of between 5% and 6% in 2024 as compared to 4% to 5% in 2023.
In 2024, the state’s operating expenditure is set at RM4.56bil.
Next year, RM900mil will be set aside under the state’s alternative funding to finance the Kuching Urban Transportation System (KUTS) project, covering Samarahan and Kuching divisions.
The project’s phase one will involve the development of three autonomous rapid transit (Art) lines (blue, red and green lines).
“The operation of KUTS phase one will be supported by hydrogen feeder bus service to provide passengers with first and last-mile connectivity.
“We have achieved a historical milestone when the prototype Art hydrogen vehicle engineering run exercise was implemented in September at Isthmus Kuching, followed by the proof-of-concept exercise in Samarahan.
“The purpose of this exercise is to obtain the prototype vehicle’s performance data and to showcase the Art’s capabilities to the public,” he added.
Covering 70km, phase one is scheduled to begin passenger services in stages, starting from the fourth quarter of 2025 and expected to be completed by end of 2027, according to Sarawak Metro Sdn Bhd, a subsidiary of Sarawak State Economic Development Corp, which is entrusted to implement the KUTS project under the purview of the Sarawak Transport Ministry.
The blue line (first line) will run from Rembus near the Universiti Sarawak Malaysia in Kota Samarahan to Hikmah Exchange in the Kuching city.
Abang Johari said RM662mil would be allocated next year to fund road and bridges projects, including the design and construction of the Kuching inner ring road.
He said the construction of Sarawak’s coastal road network and second trunk road, estimated to cost RM11bil and funded under the state alternative funding initiatives, are at various stages of implementation.
“The Sarawak government has set a high priority on expanding the coverage of safe and treated water supply throughout the state,” he said.
He added that RM552mil would be provided under the alternative funding initiative in 2024 to fund several water supply projects, on top of the RM156mil allocated next year for the implementation of continuation and new water supply projects under the mid-term review of the 12th Malaysia Plan.
The other proposed allocations under 2024 state budget include RM298mil for rural electrification scheme, RM83mil for port development and RM200mil for various tourism projects and programmes.
Abang Johari said that this year, Sarawak is projected to collect revenue of RM12.7bil, an increase of RM808mil or 7% as compared to 2022. In the first 10 months, revenue collection has hit RM11.6bil, surpassing the original estimate of RM11bil.
In 2024, he said 45% of the state revenue is expected to be derived mainly from state sales tax (RM4.57bil), of which RM3.53bil from crude oil and other petroleum products, RM850mil from crude palm oil and crude palm kernel, RM80mil from aluminium products, RM70mil from lottery, RM33mil from timber products and the remaining RM5mil from coal.
Also to contribute to state revenue are raw water royalty (RM600mil), forest royalty, timber premium and tariff (RM290mil) as well as mining royalties, land rents and others.
For the non-tax revenue (RM6.39bil) in 2024, the bulk or RM2.86bil will be from cash compensation in lieu of oil and gas rights, RM2.16bil from dividend income, RM698mil from interest income, RM400mil from land premium and RM120mil from cash compensation in lieu of import and excise duties on petroleum products.
Abang Johari said the federal grants and reimbursement are expected to increase to RM627mil in 2024 following the federal government’s decision to raise the interim special grant rate for Sarawak to RM300mil from RM16mil previously.
On investment, he said that to make Sarawak an attractive investment destination and to compete with regional peers, a comprehensive state investment policy will be formulated, with RM3mil allocation made for the study.
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