If SOEs are strong, Sarawak can move faster. If they are weak, our development agenda slows. That is why the transformation of our SOEs is not optional. It is essential.
– Datuk Patinggi Tan Sri Abang Johari Tun Openg
The true measure of leadership is not the ability to create institutions; it is the courage to reform them when circumstances change. This is where Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has once again demonstrated why he remains one of the most forward-looking political leaders in the country.
His recent announcement of a thorough review of all Sarawak state-owned enterprises (SOEs) may not have generated the same excitement as a new bridge, a major investment announcement or a high-profile infrastructure project. Yet, in the long run, it may prove to be one of the most consequential decisions of his administration.
Abang Johari is set to build a ‘Temasek of the East’. Temasek? Yes, read on.
For decades, governments everywhere have established state-owned enterprises to fulfil strategic economic and social objectives. Some were created to develop industries, some to provide public services, while others were intended to stimulate economic growth and create jobs.
Over time, however, even the best institutions can become weighed down by bureaucracy, duplication of functions, declining relevance or changing market realities.
The uncomfortable truth is that not every organisation created in one era remains suitable for another. Yet, few political leaders are willing to confront this reality because doing so often involves difficult and unpopular decisions. It is always easier to maintain the status quo than to challenge it.
That is why Abang Johari’s declaration deserves attention. By directing the Sarawak Financial Secretary’s Office to review all SOEs and the broader state investment portfolio, he is signalling that no entity will be immune from scrutiny. Every organisation will have to justify its existence, demonstrate its value and prove that it remains financially sustainable and strategically relevant.
His message was crystal clear. Some entities may be merged, others may be restructured, and some could be privatised, while those that have fulfilled their purpose may even be closed.
Such language is rarely heard in public administration. Politicians generally prefer announcing new agencies rather than evaluating whether old ones should continue to exist. Abang Johari has chosen the harder path.
What makes the initiative particularly significant is that it is not driven by cost-cutting alone. The Premier was careful to stress that the exercise is not about scaling down. It is about growing smarter.
That distinction is important. Sarawak is not retreating from economic participation. Rather, it is seeking to strengthen its capacity to create value through better governance, stronger performance and more strategic ownership.
In many ways, the Premier is attempting something unprecedented; he is repositioning SOEs from being merely government-linked entities into high-performing strategic assets capable of generating long-term value for future generations.
Perhaps the most important part of his announcement was his insistence that Sarawak benchmark itself against globally respected investment institutions such as Temasek Holdings of Singapore, Mubadala Investment Company of the United Arab Emirates and Malaysia’s own Khazanah Nasional.
This comparison is neither accidental nor symbolic. Temasek has become internationally recognised for its professional investment management, disciplined governance and long-term value creation. Rather than functioning as a conventional government bureaucracy, it operates with commercial rigour while serving national strategic interests.
Mubadala has similarly transformed Abu Dhabi’s wealth into diversified global investments that generate sustainable returns and support economic transformation.
Khazanah, on the other hand, despite facing its own challenges over the years, remains an important example of how state assets can be managed professionally to advance national development goals.
By referencing these institutions, Abang Johari is effectively placing Sarawak on a much higher benchmark. He is saying that Sarawak should not compare itself merely with other states. It should measure itself against some of the world’s best-performing state investment models.
That is a bold statement of ambition. The significance becomes even clearer when viewed against Sarawak’s broader development journey. Over the past decade, Sarawak has steadily expanded its economic footprint through strategic investments in energy, infrastructure, aviation, digital technology, finance and emerging industries.
As portfolios grow larger and more complex, governance becomes even more critical. A single governance failure can destroy years of value creation. On the other hand, strong governance can unlock opportunities that might otherwise remain unrealised.
This explains why the Premier placed such strong emphasis on discipline, integrity and accountability. His warning that compliance must be proactive rather than reactive reflects a modern understanding of governance.
Too often organisations act only after problems emerge. Effective institutions anticipate risks before they become crises. Independent audit functions, properly resourced and empowered to operate without fear or favour, are essential safeguards in this process.
Such measures may appear technical, but they are fundamental to protecting public assets. Every ringgit lost through inefficiency, poor oversight or weak governance is ultimately a loss borne by the people of Sarawak.
Equally noteworthy was the Premier’s insistence that digital transformation must go beyond digitising paperwork and automating processes. This reflects a sophisticated understanding of the challenges facing organisations today.
Many institutions proudly proclaim digital transformation when they have merely transferred existing processes onto computers. True transformation occurs when technology fundamentally changes how decisions are made, how services are delivered and how value is created.
Abang Johari has consistently demonstrated an appreciation of technology’s transformative potential. From the establishment of the Sarawak Artificial Intelligence Centre to the state’s digital economy initiatives, he has repeatedly argued that technology must be embedded into governance and economic planning rather than treated as an afterthought.
His directive that all SOEs undertake AI readiness assessments is therefore entirely consistent with Sarawak’s broader vision. Artificial intelligence is no longer a futuristic concept. It is rapidly becoming a competitive necessity. Organisations that embrace it intelligently will enjoy productivity gains, improved efficiency and better decision-making. Those that ignore it risk falling behind.
The Premier’s warning that Sarawak cannot afford to be a spectator in the next wave of technological change may well be one of the defining statements of this era. History has repeatedly shown that economic leadership belongs not to those who resist change but to those who anticipate it.
Another commendable aspect of the transformation programme is its emphasis on environmental, social and governance principles. In today’s global economy, investors and financial institutions increasingly evaluate organisations based not only on profits but also on sustainability, social responsibility and governance standards.
The Sarawak SOEs Transformation Programme is about far more than corporate restructuring. It is about creating institutions capable of serving future generations and ensuring that public assets generate maximum value. It is about replacing complacency with performance and sentiment with accountability.
Most leaders are remembered for the projects they build. Some are remembered for the policies they introduce. The truly transformative leaders, however, are remembered for their willingness to reform systems that others are afraid to touch.
By declaring that no state-owned enterprise is beyond review and by benchmarking Sarawak against global giants such as Temasek, Mubadala and Khazanah, Abang Johari has shown precisely that kind of leadership.
In doing so, he has sent a powerful message not only to Sarawak but to the rest of the country: state ownership alone is not enough. What matters is how effectively those assets are managed, how much value they create and how well they serve the people.
When this transformation succeeds, Sarawak may well become the benchmark that others seek to emulate.
The views expressed here are those of the columnist and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at rajlira@gmail.com
