KUCHING: Sarawak’s stability, clean energy, and skilled workforce give it a clear edge in attracting investors but its next phase of growth depends on simpler processes and better access to capital.
This was among the main points raised during a panel titled “Why Sarawak? The Investor’s Lens on Resilient Digital Economies” at the International Digital Economy Conference Sarawak (IDECS), which gathered venture capital and corporate leaders to discuss how the state can strengthen its investment appeal.
Investor sentiment and market outlook
Ilham Capital Ventures Sdn Bhd Chief Executive Officer Abdul Aziz Abu Bakar said Malaysia’s stock market performance has been lagging behind regional peers, dampening investor confidence.
“If you look at Singapore’s STI Index, it has reached an all-time high of 4,500. Jakarta’s JCI Index has also hit 8,000. Both happened in October 2025.
“Malaysia’s Bursa KLCI last hit its all-time high in July 2014. Today we are barely above 1,600, about 20 per cent below that peak,” he said.
He described the situation as a “call to action” for both the country and the state.
“We have to work hard to rejuvenate investor interest back to the country and to Sarawak,” he said.
Aziz added that private capital can play a central role in driving Sarawak’s transition into next-generation industries.
“Ilham has invested in a Korean AI hardware chip company, Rebellion, and through that we are now nurturing a technology collaboration with Sarawak’s semiconductor firm SMD.
“That collaboration, witnessed by the Premier, shows how venture capitalists can work with the state to attract high-growth technology companies that support Sarawak’s semiconductor roadmap and its target of contributing RM30 billion to GDP by 2030,” he said.
Sarawak’s appeal and resilience
The Hive Climate AI General Partner Krishnavenee Krishnan described Sarawak’s growth model as both resilient and forward-looking.
“What we see in Sarawak is not just growth but sustainable and resilient growth.
“You have sound, people-centred policies, a clear vision by your leaders, and rule of law and clarity of policy. These are the bedrocks that can propel Sarawak to greater heights,” she said.
She said the state’s education policies are laying the foundation for a capable and motivated workforce.
“It is encouraging to see how tertiary education is being made more accessible to Sarawakians. You are going to have an educated, hungry workforce. This is where innovation and economic momentum will come from,” she said.
Krishnavenee added that Sarawak’s next step should be to draw more corporate capital into its ecosystem.
“You already have the foundation. The next step is to bring in more density, more sophistication in capital markets, and consistency in execution.”
Processes, financing and governance
Vision Group Managing Director Chua Zhu Lian said investors tend to evaluate regions based on three factors — politics, processes, and power.
“Sarawak has remained politically stable for a long time, and its power grid is one of the greenest in the region.
“But the processes can be improved. Investors need clearer paths for approvals, immigration, and permits. If these are made smoother, Sarawak will become much more investable,” he said.
Chua noted that while connectivity has improved significantly, the financial ecosystem still faces gaps.
“Businesses face challenges getting the right funding to start or scale. The financial system must be strengthened,” he said.
He also pointed out that many Sarawak firms are profitable but not properly documented or reported.
“Without clear financial reporting, investors cannot evaluate companies or create value,” he said.
On emerging priorities, he highlighted food security.
“As geopolitical tensions grow, whoever masters food security will have the upper hand.
“Sarawak’s vast land gives it the advantage to become an agricultural powerhouse for the region.”
What investors want
Malaysian Friendship and Trade Centre Taipei President Aznifah Isnariah Abdul Ghani said Taiwanese investors focus on three main factors — talent, location, and regulatory stability.
“One of the first things they ask is whether Malaysia has enough talent. They want to know how easy it is to source, train and retain skilled workers, and whether our universities can produce the right graduates,” she said.
She said location remains another key question.
“Just like buying a house, it is about location, location, location. They want to know where to set up operations depending on infrastructure, ecosystem and sustainability of resources like electricity, water and land.”
Aznifah added that investors also scrutinise regulatory frameworks.
“They ask if our laws are mature enough and whether their investments are protected. Word of mouth also plays a role – many come because someone they know had a positive experience.”
She said Malaysia could learn from Taiwan’s model of linking universities with industries.
“In Taiwan, semiconductor companies fund specific university programmes, design the curriculum, and then train students before employing them. That creates industry-ready talent.
“A similar approach could be replicated here to build the right skills pipeline,” she said.
She added that Taiwanese companies prioritise stability and strong ecosystems.
“Build the ecosystem now and accelerate it. Sarawak already has the resources and strength. The goal is to sustain them.”
Next steps and key sectors
Moderator and EPU Sarawak Sectoral Planning Division Head Voon said the state is finalising a new investment policy after a year-long review of investor processes.
“We are also conducting a venture capital study to explore how the state can play a more active role in financing and supporting startups,” she said.
When asked about high-potential sectors, Aziz pointed to semiconductors as central to Malaysia’s technological resilience.
“With semiconductors, we can achieve AI compute sovereignty, data sovereignty, energy storage sovereignty and cyber security sovereignty.
“Every country needs this resilience to face future shocks,” he said.
Aznifah, meanwhile, highlighted food security as a long-term growth area.
“Sarawak has immense potential. Taiwan has cutting-edge agricultural technology, and there is much to gain from collaboration. But we also need to work on direct flights from Taiwan to Kuching to strengthen business and tourism ties,” she said.
Agreeing with her, Voon noted that Sarawak has several agro-parks ready for investment and plans to develop 2,000 hectares of state land for paddy.
“Sarawak already has the stability, talent and resources. The next step is to make it easier for investors to connect with
our institutions and see that the right ecosystem is in place,” she said.
