KUCHING: The Sarawak government is looking into the establishment of a blended finance facility to support catalytic infrastructure and transition-aligned investments.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said by leveraging risk mitigation instruments and deploying public capital as a crowd-in mechanism, the state aims to enhance the bankability of these projects and unlock broader private sector and development bank participation.
“But let me be clear – realising this vision will require deep collaboration.
“We call upon development partners, private investors, and financial institutions to join us in shaping a resilient, inclusive, and investable energy transition for Sarawak,” he said during the Public-Industry Engagement Day and the launch of the Sarawak Energy Transition Policy (SET-P) at Borneo Convention Centre Kuching (BCCK) here today.
To fully unlock the potential of SET-P, he said the state must first strengthen the short-term investment landscape.
He said energy transition opportunities in Sarawak can be broadly categorised into three categories.
“Firstly, commercially viable projects with market-rate returns. These include utility-scale solar, hydropower, grid modernisation and much of our natural gas infrastructure. These investments are generally bankable and capable of attracting private capital without significant intervention.
“Second, public-good initiatives with no direct financial returns. This category includes critical enablers such as workforce upskilling, public awareness programmes, and sustainable urban transport systems. While they do not yield commercial returns, they are foundational to ensuring a just and inclusive energy transition.
“Third, emerging solutions with below-market returns. These encompass nascent but strategically vital technologies like clean hydrogen, carbon capture, utilisation and storage (CCUS), energy efficiency, and low-carbon transport. Despite their long-term potential, these initiatives currently struggle to attract private financing due to higher risk profiles and uncertain returns, particularly in emerging markets such as Sarawak,” he said.
He added that some of the critical infrastructure required to enable Sarawak’s natural gas hubs, such as transportation terminals, access roads, and supporting logistics may also fall into the sub-commercial or below-market return category.
“While these assets are essential to unlocking long-term value, they may not offer sufficient returns to attract private capital on their own. As such, strategic government intervention will be necessary to move them forward,” he said.
On the engagement session, Abang Johari said it is not merely ceremonial but a critical step in fostering the collective ownership and shared responsibility needed for effective implementation.
