SOEs projected to generate RM9.62b additional revenue by 2030

KUCHING: Sarawak’s state-owned enterprises (SOEs) are projected to generate RM9.62 billion in additional revenue by 2030 through the implementation of Phase 2 of the Sarawak SOE Transformation Programme.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said apart from the additional revenue, the transformation initiative also has the potential to contribute RM1.6 billion in adjusted profit after tax and approximately RM1.27 billion in dividends for the 2027 to 2030 period.

“These are encouraging figures. But I want to make it clear that these are projections, not achievements. The actual value depends on how far they are translated into revenue,” he said in his speech at the Sarawak SOEs Transformation Programme: A Pledge for Good Governance, High Performance and Value Creation Phase 2 here today (Sept 22).

The second phase of the programme involves 32 statutory bodies and government-linked companies across 17 sectors, following Phase 1, which involved 36 entities.

Abang Johari said each entity needed to improve its performance based on its respective position and capabilities, adding that the transformation could not rely solely on several major entities such as Sarawak Energy Berhad (SEB) and Petroleum Sarawak Berhad (PETROS).

“If you identify a new source of revenue, pursue it. If you identify costs that can be reduced, reduce them. If you identify assets that can be commercialised, unlock their value. If you identify new markets, explore them,” he added.

He said commercially oriented entities should focus on strengthening revenue, increasing productivity, managing costs, optimising assets and reducing unnecessary dependence on government support.

He said financial sustainability is not merely about reaching the break-even point, but enabling an entity to have the financial strength to operate, maintain assets, service debts, invest for growth and, where appropriate, provide returns to shareholders.

Meanwhile, he said Phase 2 has also identified opportunities in the energy, logistics, aviation, education, agriculture, digital capabilities, tourism, natural resources and regional trade sectors.

“Our goal is to turn government ownership into a competitive advantage, not government protection into complacency,” he said.

Abang Johari said the transformation also needed to be supported by stronger governance, integrity, technology adoption and collaboration among entities to ensure the state government’s assets and capabilities could generate greater value for Sarawak.

Phase 1 had previously projected a reduction of about RM403 million in the need for operating grants by 2030, with more than 50 per cent of the entities assessed expected to achieve financial sustainability.

He said the success of the transformation would ultimately depend on the implementation of the strategies and initiatives identified, rather than merely having planning documents.

Also present are Deputy Premiers Datuk Amar Douglas Uggah Embas and Datuk Amar Dr Sim Kui Hian; ministers, deputy ministers and state representatives; State Secretary Datuk Amar Abu Bakar Marzuki; State Financial Secretary Datuk Dr Seri Wan Lizozman Wan Omar; Tribune Press Sdn Bhd and SV News Sdn Bhd chairman Datuk Seri Azman Ujang, Tribune Press Sdn Bhd and SV News Sdn Bhd chief executive officer (CEO) Datuk Dr Jeniri Amir and other distinguished guests.