Update green tax structures to attract major players, Premier Abang Johari urges federal govt

Abang Johari speaking at the State-level Gawai Dayak Dinner 2026 at Borneo Convention Centre (BCCK) on June 21, 2026. Photo credit: Sarawak Information Department (Japen)

By Amanda L

KUCHING, June 22: Federal investment incentives should be expanded to include critical raw materials used in hydrogen production and semiconductor manufacturing to further strengthen Malaysia’s position as a strategic ASEAN leader, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He made this direct appeal to Prime Minister Datuk Seri Anwar Ibrahim, urging the federal government to review and update its fiscal frameworks to attract high-value players into the new green economy.

Speaking at the State-level Gawai Dayak Dinner 2026 at Borneo Convention Centre (BCCK) on Sunday (June 21), Abang Johari highlighted that standard, legacy tax frameworks are no longer sufficient to secure cutting-edge advanced manufacturing supply chains.

“Because of the current economic transition, perhaps Prime Minister, you can review the incentives given by the government to attract investments into this new economy,” he said, noting that targeted relief should specifically focus on upstream inputs and raw materials necessary for green hydrogen production and semiconductor fabrication.

Abang Johari said modernising the incentives would serve as a strategic investment to spur economic expansion, which would eventually translate into greater revenue for the federal government.

“Optimising these structures will skyrocket the reach of these products and create a robust advanced manufacturing sector that I believe will yield massive returns for the nation through corporate tax revenues in the long run,” he elaborated.

Highlighting the momentum already building on the ground, the Premier pointed to Bintulu’s formal recognition by the World Economic Forum (WEF) as a “Transitional Industrial Cluster”, one of only 30 such specialised global hubs on the planet.

He emphasised that this elite WEF backing gives Sarawak an unparalleled global platform to secure high-tech manufacturing, provided the federal incentive framework pivots quickly enough to support the incoming momentum.

Linking the policy request directly to Malaysia’s wider geopolitical ambitions, Abang Johari stated that Sarawak is fully prepared to act as the primary green energy powerhouse to achieve the Prime Minister’s vision for the region.

“Insyallah, we will do our part so that your objective to position Malaysia as an important and strategic partner in ASEAN will be achieved,” he concluded. — DayakDaily