Friday, 5 December 2025

Private investments help strengthen economic momentum

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Abang Johari shows his text of speech of the Sarawak 2026 Budget. Photo: Mohd Alif Noni

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SARAWAK’S economic momentum continues to strengthen in 2025, driven by robust private investment performance across high-value and emerging sectors.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said in the first half of the year, the state recorded RM4.08 billion in approved private investments, reflecting sustained investor confidence.

“Within the manufacturing sector alone, RM2.14 billion worth of investments were approved between January and September 2025, primarily in basic metal and food processing industries.

“This positive trend, paired with improving domestic demand supported by stable employment and rising disposable income places Sarawak on a strong trajectory for continued growth,” he said.

He said this during the third session of fourth term of the 19th State Legislative Assembly (DUN) sitting here today.

Abang Johari also said public investment is also set for a significant boost, with projections indicating a 16.7 per cent increase in 2025.

“This expansion is supported by major ongoing infrastructure projects funded by both the Sarawak government (RM10.9 billion) and the federal government (RM5.9 billion).

He added these allocations aim to enhance transport connectivity, strengthen utility networks, upgrade public amenities and accelerate regional development in line with the 12th Malaysia Plan (12MP) targets.

“Public consumption remains firm, driven by sustained government spending on emoluments and operational needs to strengthen civil service capacity.

“Meanwhile, private consumption is projected to grow by 5.9 per cent in 2025, encouraged by steady economic activities, easing inflation and rising household income.

He added that in 2025, inflation is expected to moderate further, with the average rate for the first nine months recorded at 0.9 per cent.

“The decline was mainly driven by lower inflation in the housing, water, electricity, gas and other fuels category, reflecting improved price conditions and stabilising input costs.

“Consequently, overall inflation for 2025 is projected to soften further, ranging between 1.2 per cent and 1.5 per cent, supported by contained global cost pressures, improved supply conditions, and ongoing domestic price management measures,” he added.

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