SARAWAK has shifted from cautious, incremental development to long-horizon delivery over the past nine years.
Universiti Malaysia Sarawak (UNIMAS) Faculty of Economics and Business senior lecturer Dr Afiza Abu Bakar said the shift has been driven by a development approach anchored on long-term planning backed by stronger state finances.
“Over the past nine years, the most consequential economic direction under the Premier has been the decision to anchor development on long-term planning backed by strong state finances.
“In the past, Sarawak’s development tended to move in cautious steps, with major initiatives often delayed or scaled down.
“This change allowed Sarawak to move from incremental progress to purposeful, state-shaping development. Today, ambition is matched by the ability to deliver,” she told Sarawak Tribune.
She cited major healthcare investment through the 310-bed Sarawak Cancer Centre at an estimated cost of about RM1.5 billion.
“It reduces dependence on treatment outside the state and brings specialised care closer to families.
“With thousands of new cancer cases recorded in Sarawak each year, the centre responds directly to a real and growing need.
“It reflects a government that plans ahead rather than reacts late,” she said.
She also referred to the Kuching Urban Transportation System, which is expected to introduce Malaysia’s first Autonomous Rapid Transit system.
The project spans nearly 70 kilometres with 35 stations across Greater Kuching, Samarahan, and Serian, and is expected to begin operations in late 2026.
“It shows that Sarawak is thinking about productivity, mobility and liveability together.
“It signals that the state is preparing for the future, not catching up with it,” she said.
She pointed to free tertiary education for Sarawakian students beginning in 2026.
“Such a policy would not be possible without strong and predictable finances. This is a structural commitment, not a symbolic gesture.
“It is an investment that will relieve families of the burden of rising education costs for years,” she said.
On the longer-term implications, Afiza said this direction gives Sarawak something it lacked before: certainty.
“With stronger finances and clearer priorities, the state can commit to long-term projects without hesitation,” she said.
Touching on the fiscal outlook, she noted that revenue volatility linked to global energy markets and economic cycles is likely to become more frequent as the global economy moves through energy transition and geopolitical uncertainty.
“This makes forward fiscal planning more important than ever,” she said.
On how the state uses stronger revenue periods, she stated that rather than slowing development in the name of caution, its approach has been to use periods of strong revenue to build long-lasting assets and capabilities.
“Speed in development, in this sense, is not risky but strategic. The logic is simple and practical: money in the bank does not create resilience, but productive investments do.
“Instead of postponing major plans, the state used the recovery phase to accelerate reforms, providing certainty and direction at a time of global uncertainty.”
She said that the key policy adjustment to manage fiscal risk, therefore, is to pair fast development with strong fiscal discipline and diversification.
“It also means expanding the state’s revenue base so Sarawak becomes progressively less dependent on a narrow set of income sources.
“It means strengthening fiscal buffers while ensuring that spending is directed towards long-term economic and social returns, especially in infrastructure, education, innovation, and local industry.
“Growth is pursued, but within a framework of sustainability,” she said.
On continuity through downturns, she said more importantly, this approach also protects the rakyat.
She added that when finances are managed well, development does not stop abruptly during downturns, and essential services remain stable.
“It also helps maintain continuity in essential services and development programmes. The real test of fiscal strategy is not managing prosperity, but preparing for the next cycle,” she said.
On external shocks, Afiza pointed out that Sarawak is exposed to global uncertainty, particularly sudden changes in energy prices, global demand, and geopolitical tensions.
“When global markets slow, exports weaken, investments pause, and confidence can fall quickly.
“Such shocks pose threats not only to economic growth, but also to jobs, incomes, and daily stability,” she said.
She also cited measures taken in the post-COVID period.
“In response, Sarawak strengthened healthcare capacity, accelerated digitalisation, supported domestic businesses, and reinforced local supply chains.
“These measures help reduce dependence on external markets and improve resilience during times of global volatility,” she said.
She also referred to delivery capacity and institutional readiness.
“Another important element is the state’s emphasis on infrastructure readiness and institutional capacity.
“This ensures that policy stability at the policy level translates into stability in daily life,” she said.
On diversification, she said the state’s current direction under its development plans, including PCDS 2030, focuses on reducing over-reliance on a narrow set of sectors, particularly commodity-based revenues.
“The focus is on strengthening downstream activities, value-added production, and industries that can generate stable income, better jobs, and long-term growth.
“Within this direction, Sarawak is also giving increasing attention to the green and blue economy, though in a practical rather than symbolic way.
“The idea is to build a more diversified economy that can withstand future shocks and create more opportunities for Sarawakians, while ensuring that land, rivers, and seas are not overused,” she said.
In light of this, Afiza said the most important enabling condition for diversification to scale is people readiness.
“This requires continued investment in education, skills training, and workforce development so that diversification is not limited to policy, but felt through real improvements in income, employment, and opportunity.
“For the rakyat, diversification will only feel real when it results in better jobs and more secure livelihoods close to home,” she said.
On long-term investment positioning, she said investors want certainty, and Sarawak has shown that its plans are not just announced but carried through.
“This gives Sarawak a strong positioning within Malaysia and the wider region, and signals to investors that Sarawak is serious, focused, and ready for long-term growth,” she said.
On delivery capacity, she said the main challenge is ensuring that capacity keeps pace with ambition, but this is a good problem to have.
“Continued strengthening of skills, institutions, and delivery systems will be essential to sustain progress at the pace Sarawak is moving.
“For the rakyat, this means confidence that progress will continue in a steady and sustainable way,” she said.
