KUCHING: Government agencies and state-owned enterprises (SOEs) in Sarawak must operate commercially and competitively to help drive the state’s transformation under the Post COVID-19 Development Strategy (PCDS) 2030, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
Abang Johari said the role of government is shifting from being an employer to becoming a facilitator and strategic investor in key sectors.
“The role of government will change in this new setup because the government now acts as a facilitator for investors or shareholders in new economic activities,” he said this during a dialogue session moderated by Institute of Corporate Directors Malaysia (ICDM) chairman Tan Sri Zarinah Anwar at the Sarawak Corporate Leadership Summit 2025, held at a resort, here today (Oct 8).
He explained that large-scale industries often require massive capital investments that private companies may not be able to undertake on their own.
“For example, our methanol plant costs about RM7bil. Not many companies can deploy that level of capital unless they are large entities like Petronas or Petros,” he said.
Abang Johari said this is where government-linked companies (GLCs) and SOEs play a critical role — to undertake capital-intensive projects, stimulate investment confidence, and create jobs for Sarawakians.
“These government agencies have been given the responsibility to run specific projects. They must operate commercially, remain competitive, and be accountable to the government as their shareholder,” he emphasised.
He added that the state government would also seize opportunities arising from the global energy transition, particularly in hydrogen development.
“If I foresee that hydrogen will be the engine of economic growth — an essential energy to propel our future — then this opportunity must be reaped by the government, and the private sector can later expand on it,” he said.
Abang Johari also touched on emerging opportunities in carbon trading and green economy initiatives, noting that commercial arrangements between high-emission companies and Sarawak-based entities could generate new revenue streams.
“These commercial arrangements such as companies that emit carbon buying our oxygen in exchange, can bring in additional revenue and contribute to reducing emissions,” he said.
He stressed that all these efforts must align with the evolving global economic landscape, where efficiency, competitiveness and sustainability define success.
“In other words, the role of our government agencies must evolve in line with the new economy,” he said.
