SECOND Minister of Finance and New Economy, Datuk Amar Douglas Uggah Embas, has dismissed allegations that Sarawak is burdened by ‘hidden debts’, describing such claims as misleading and repeatedly disproven.
Uggah said the accusations were neither new nor well-founded, responding to criticism from Padungan assemblyman, Chong Chien Jen.
“Year after year, his narrative remains the same, designed to confuse, to instil fear, and to spread misinformation.
“It was false then, and it remains completely false today,” he assured the DUN here today.
Uggah said similar claims were made in 2018 by a former federal finance minister who predicted Sarawak would go bankrupt within three years.
“Today, we are far from bankrupt. Our reserves have grown, and we have successfully established the Sarawak Sovereign Wealth Future Fund (SSWFF),” he said.
Uggah said the reduction was to RM12.1billion, a 15 per cent drop from the original estimate, and was entirely due to global economic forces beyond the state’s control, in addressing questions about Sarawak’s revised 2025 revenue projection.
“The primary driver is the prolonged decline in global crude oil prices, which have been hovering around USD69 per barrel.
“This is a global phenomenon affecting all oil-producing nations, including Malaysia,” he said.
He stressed that, despite this volatility, Sarawak remains financially resilient due to measures such as revenue diversification, cost optimisation, prioritisation of development projects, and strategic long-term investments.
“These disciplined steps shield us from the worst of global headwinds,” he said.
Uggah assured that Sarawak’s financial fundamentals remain strong, as reflected by the state’s credit ratings from Moody’s, Standard & Poor’s and RAM Ratings.
“If there truly were hidden debts, these independent agencies would have reflected such concerns through downgrades.
“However, they did not, because no such hidden debts exist,” he said.
Uggah criticised Chong for continuously questioning the state’s finances, saying such statements mislead the public.
“I urge him not to portray himself as an economist or an accountant when making unfounded claims.
“Don’t be a fake economist. If his concern about debt were genuine, attention should be directed at the national Public Debt-to-GDP ratio, which stands at around 65 per cent, compared to Sarawak’s 11.5 per cent,” he said.
