KUCHING: Sarawak will transform its administrative approach to become more efficient, investment-driven, and closely integrated with the private sector to boost the state’s economic growth, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He said the state government no longer functions merely as an employer but as a facilitator that empowers companies and agencies to actively drive the economy.
“In the past, people thought that after finishing school, they had to look for a government job. But now, the concept is different. The government is no longer about creating jobs, but about helping companies and organisations drive the state’s economy.
“Therefore, Sarawak’s future economy will be driven by the private sector, as well as government agencies that operate like commercial entities—making the state administration more efficient and capable of generating returns for the state.
“Government agencies that receive capital from the state must operate professionally, generate profits, and return dividends to the government,” he said in his keynote address during the Sarawak Corporate Leadership Summit 2025 held at a resort, here today (Oct 8).
Elaborating further, Abang Johari said the transformation also requires the civil service to adapt its work approach — not merely implementing policies, but acting as a partner to the private sector to strengthen the state’s economy.
“We want the civil service to act as a catalyst. When GLCs and government agencies operate like the private sector, our economy will become truly competitive,” he said.
At the same time, he asserted that the Sarawak government will continue to focus on strengthening its financial position to remain stable and debt-free.
“The government must also change its spending approach. That is why we adopt proper accounting standards — to know the government’s true fiscal position. Expenditure and revenue must be balanced; otherwise, we will end up in debt,” he said.
He added the Sarawak government is also working closely with reputable institutions, including the World Bank, to strengthen the state’s fiscal policies and economic competitiveness at the regional level.
“With today’s technological advancements, we must also be capable of managing our financial position. That is why I established the Sovereign Wealth Fund — no other state has such a fund,” he explained.
Abang Johari also touched on Malaysia’s national debt, which has exceeded RM1.3 trillion, or more than 60 percent of GDP, warning that such a situation could limit productive spending.
“We don’t want to be trapped in such an economic situation. That’s why Sarawak must remain self-reliant — like Norway, which successfully built its national sovereign fund from North Sea oil revenues, now worth around US$2 trillion, equivalent to over US$340,000 per citizen.
“Imagine, they only started two decades ago. We, on the other hand, have had oil since 1910 — yet in the past, it was difficult even to build schools,” he said.
He added that Sarawak’s revenue has so far doubled, rising from RM6 billion to RM14 billion.
“By the end of the year, we expect state revenue to remain strong, between RM12 billion and RM14 billion, depending on global factors such as tariffs affecting commodity exports.
“Nevertheless, we still maintain a healthy surplus to carry out development projects, and Sarawak’s financial position remains stable,” he said.
