THE recent Liberation Day tariffs imposed by the United States (US) have minimal direct impact on Sarawak, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
In his ministerial winding-up speech at the Sarawak State Legislative Assembly (DUN), the Premier said the US, which accounted for only 0.9 per cent of Sarawak’s total exports with RM1.2 billion worth of exports in 2023, is not a major trading partner for the state.
“Now more than ever, it is vital for Sarawak to diversify strategically into new economic sectors.
“We must no longer rely on a narrow range of industries or limited trade partners. Instead, we must build stronger connections with our neighbours, boost domestic trade within Malaysia, deepen regional cooperation within ASEAN and the wider Asia-Pacific, and explore new markets in Europe and Africa,” he said.
The Premier outlined a complex geopolitical landscape challenging global stability, with ongoing conflicts in Gaza and Ukraine, civil unrest in Sudan, Somalia, Ethiopia, and Myanmar, and escalating tensions between India and Pakistan as well as across the Taiwan Strait.
He said this climate of instability has sparked a growing trade war, notably triggered by US tariffs, leading the World Trade Organisation to revise its 2025 global trade forecast from an anticipated growth of 2.7 per cent to a slight contraction of 0.2 per cent, with the downturn most pronounced in North America and Asia.
While Sarawak’s direct exposure to these tariffs is limited, Abang Johari noted that the state is affected by indirect spillover effects.
He added the combination of rising tariffs and unexpectedly high oil production by OPEC countries has caused oil prices to fall to approximately USD65 per barrel between April and May 2025, negatively impacting Sarawak’s oil and gas revenue, with projections estimating average prices of USD66 per barrel in 2025 and USD59 per barrel in 2026.
Nevertheless, the Premier expressed confidence in a gradual recovery as global demand improves.
“Despite these challenges, the Sarawak government remains committed to economic prosperity, social inclusivity, and environmental sustainability through its Post COVID-19 Development Strategy (PCDS) 2030.
