KUCHING: Sarawak’s economy is projected to grow between five and six per cent in 2026, underpinned by a strong trade performance that saw total trade reach RM179 billion and a trade surplus of RM59 billion in 2025.
Deputy Premier Datuk Amar Awang Tengah Ali Hasan said the encouraging performance reflects Sarawak’s growing position as a preferred investment and business hub in ASEAN, underpinned by its strategic location, abundant natural resources, reliable energy supply, and political stability.
“These achievements provide a strong foundation for our SMEs to expand beyond domestic markets and participate more actively in regional and global value chains,” he said.
His speech was read out by Deputy Minister of International Trade, Industry and Investment, Datuk Dr Malcolm Mussen Lamoh, during the SME Malaysia Platinum Business Awards (PBA) 2026 Roadshow here today.
Awang Tengah, who is also the Minister for International Trade, Industry and Investment, said small and medium enterprises (SMEs) remain the backbone of Malaysia’s economy, driving employment, entrepreneurship, innovation and economic resilience.
He said that Sarawak has more than 71,000 registered SMEs as of 2024, highlighting the state’s strong entrepreneurial spirit as it advances towards becoming a high-income economy under the Post COVID-19 Development Strategy (PCDS) 2030.
He said the state’s economic transformation is being driven by high-growth sectors, including renewable energy, manufacturing, the digital economy, food production, tourism, logistics, green technology and downstream industries, which attracted RM116.8 billion in approved investments between 2021 and 2025 and created about 28,190 jobs.
Sarawak, he said, is also expanding into new economic frontiers such as the space economy, aerospace, advanced manufacturing, agri-technology, semiconductors and artificial intelligence (AI), with major investments by X-FAB, OCI Tokuyama Semiconductor Materials, and Western Digital expected to generate around 1,300 high-skilled jobs while strengthening the state’s role in the global semiconductor supply chain.
Awang Tengah stressed that local SMEs must become integral players in these emerging industries by embracing innovation, digitalisation and stronger governance to remain competitive.
He said 17,746 SMEs have already adopted digital solutions through programmes implemented by his ministry, representing nearly 60 per cent of Sarawak’s PCDS 2030 target of digitalising 30,000 SMEs.
Among the initiatives supporting business growth is ENBASE, a one-stop digital repository that simplifies SMEs’ access to financing, training programmes and business opportunities, while the Sarawak Digital Mall has onboarded more than 350 local businesses, generating approximately RM12 million in gross merchandise value (GMV) in 2025.
Awang Tengah added that market access and trade promotion initiatives have generated over RM223 million in direct sales for more than 24,000 SMEs, while the Federal and Sarawak Governments collectively mobilised about RM2.9 billion in financial assistance under the 12th Malaysia Plan, benefiting more than 207,000 entrepreneurs and businesses statewide.
“These efforts have contributed to Sarawak recording one of Malaysia’s highest enterprise survival rates at 77.3 per cent, well above the national average,” he said.
He also encouraged more Sarawak companies to participate in the Platinum Business Awards 2026, describing the awards as a platform that promotes excellence, innovation, sound governance, and sustainable business practices while showcasing Malaysian SMEs capable of competing on the global stage.
