MANY Sarawakians, including my friends, have given the thumbs up to the Sarawak Budget 2026. Their reaction is understandable.
Far from being a routine fiscal exercise, the budget presented by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg is a strategic roadmap for transformation.
At a time when global economic uncertainty has become the norm, Sarawak has chosen a path of resilience, sustainability, and inclusivity. The Premier’s plan reflects sound governance – balancing prudent financial management with bold, high-impact investments. With RM12.91 billion allocated, the administration has pledged to safeguard the immediate welfare of the rakyat while steering Sarawak toward competitiveness and a high-income future.
Surplus Budget: The Hallmark of Resilience
The most striking headline is the surplus. With projected revenue of RM13.05 billion against expenditure of RM12.91 billion, Sarawak expects a surplus of RM144 million. In today’s world, where deficit spending has become the default for many governments, Sarawak’s ability to consistently deliver surpluses is remarkable. It signals fiscal discipline and extraordinary stewardship.
This surplus is more than a number – it is a powerful signal of Sarawak’s sovereign financial health. It reassures both foreign and domestic investors that the state possesses the reserves to weather external shocks. It also validates the Premier’s revenue re-engineering strategies over the past few years.
By diversifying revenue streams beyond traditional commodities, Sarawak has insulated itself from volatile oil and gas prices. This financial independence is the bedrock of Sarawak’s autonomy and future prosperity.
A surplus budget is about confidence. Investors, businesses and ordinary citizens alike draw reassurance from knowing that the state is not living beyond its means. Sarawak’s fiscal prudence sets a benchmark for other states in Malaysia.
Strategic Allocation: Development Over Administration
A closer look at expenditure priorities reveals a lean, efficient government. RM5.6 billion is earmarked for operating expenditure, ensuring civil service motivation, strong core operations, and empowered local authorities. This reflects a commitment to keeping government machinery efficient without bloating costs.
But what truly elevates this budget is its decisive tilt toward development. RM7.3 billion – more than half the total budget – is directed toward development expenditure. This is a “growth-biased” budget.
By pouring resources into infrastructure, the state is priming the pump of the local economy: creating jobs, stimulating the construction sector, and enhancing logistics. Roads, bridges, ports, and digital infrastructure are not just concrete projects; they are economic multipliers that will benefit Sarawak for decades.
The Premier’s emphasis on development shows foresight. Operating expenditure keeps the lights on but development expenditure builds the future. Sarawak’s choice to invest heavily in infrastructure is a clear signal that the government views the budget as an investment vehicle, not merely a consumption tool.
Bridging the Divide: Inclusivity at the Core
The tagline “No one left behind” is given fiscal teeth in this budget. Heavy investment in rural infrastructure – roads, treated water, electricity supply – addresses the historical developmental gaps between urban centers and rural hinterlands.
By prioritising connectivity, the Premier is doing more than pouring concrete. He is unlocking the economic potential of rural Sarawak. Better roads mean farmers can reach markets more easily. Electricity and clean water improve health and education outcomes. Remote communities are integrated into the mainstream economy. This is inclusivity in action.
Sarawak’s budget demonstrates that inclusivity is not rhetoric – it is policy. By investing in rural areas, the government ensures that prosperity is shared equitably among all Sarawakians, regardless of geography.
The New Economy: Future-Proofing Sarawak
Perhaps the most visionary aspect of Budget 2026 is its alignment with the New Economy. Anchored in the Post COVID-19 Development Strategy (PCDS) 2030, allocations target digital transformation, renewable energy and sustainability.
Support for the green energy sector, carbon trading initiatives and the digital economy signals a shift from resource dependence to a knowledge-based, value-added economy. These investments are designed to attract high-tech industries, create high-income jobs for youth and position Sarawak as a regional leader in sustainability.
This is where Sarawak distinguishes itself. While many regions are still catching up, Sarawak is investing in industries of tomorrow. By embracing renewable energy and digital transformation, the state is not just future-proofing its economy – it is positioning itself as a global player in innovation.
Conclusion
The Sarawak Budget 2026 sends a resonant message of unity, resilience and ambition. With RM12.91 billion allocated, RM13.05 billion projected revenue and a RM144 million surplus, it is a testament to responsible governance. By balancing operational needs with bold development spending, Premier Abang Johari has charted a clear path toward robust growth.
This budget builds confidence, fosters inclusivity, and sets Sarawak firmly on course for a high-income future. It is compassionate in its concern for rural communities, calculated in its fiscal discipline, and visionary in its embrace of the New Economy.
It is a masterclass in leadership, showing how Sarawak can balance immediate welfare with long-term transformation.
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at drjohnlau@gmail.com.
