SARAWAK has marked a significant milestone in its economic development this year, reinforcing its position as a vital contributor to Malaysia’s overall economic landscape.
The state’s growth trajectory has been largely driven by strategic initiatives focusing on infrastructure enhancement, investment attraction and sustainability.
This article explores Sarawak’s economic performance in 2024, its key projects and the aspirations it holds for the future.
Strong economic growth in 2024
Sarawak’s economy is on a growth trajectory in 2024, with projections indicating a robust economic expansion between five per cent and six per cent, outpacing Malaysia’s national growth forecast of four per cent to five per cent.
According to the Department of Statistics Malaysia (DOSM), Sarawak remains a significant economic contributor to the nation, ranking as the fourth-largest contributor to Malaysia’s Gross Domestic Product (GDP) in 2023.
The state accounted for 9.75 per cent of the country’s total GDP, following Selangor, Kuala Lumpur, and Johor as the top economic powerhouses.
Sarawak’s GDP grew by 1.2 per cent during the year, driven by a strong performance in the services sector, which expanded by 5.4 per cent, outpacing the national average for services growth.
In terms of GDP per capita, Sarawak recorded RM72,411, significantly surpassing the national average of RM54,612.
Looking ahead, the state is working towards becoming the second-largest GDP contributor in Malaysia, aiming to achieve this milestone by the next state election.
Key infrastructure investments
A central pillar of Sarawak’s economic strategy is the substantial investment in infrastructure and utilities.
The state government has allocated a record RM7.8 billion for development expenditure in 2024, signalling its commitment to long-term growth.
In addition, the federal government has pledged a RM5.8 billion allocation, further boosting the state’s capacity to develop and implement key infrastructure projects.
These efforts are focused on enhancing Sarawak’s construction sector and bolstering essential infrastructure, such as the Second Trunk Road and Phase 2 of the Sabah-Sarawak Link Road.
The state’s infrastructure development is aimed at improving connectivity within Sarawak, as well as its linkages with other parts of Malaysia and neighboring regions.
These projects are critical not only for facilitating trade and mobility but also for creating job opportunities and stimulating the local economy.
Efforts toward economic autonomy
Sarawak is also taking bold steps to strengthen its economic autonomy and resource management.
A defining move in this direction was the reclaiming of Bintulu Port from federal control, a decision that gives the state greater control over its own trade and logistics.
Sarawak has also taken ownership of MASwings, with plans to launch a new regional airline in 2025 to strengthen its aviation sector and boost its profile as an international destination.
Additionally, the state has increased its stake in Affin Bank from 4.81 per cent to 31.25 per cent, reflecting its growing influence in the financial sector and commitment to economic advancement.
These efforts reflect Sarawak’s aim to enhance its financial independence, optimise its economic resources, and ensure greater control over strategic assets within its jurisdiction.
By reclaiming critical infrastructure and acquiring significant business assets, Sarawak is strengthening its position as a more self-reliant and formidable economic player.
This shift toward greater autonomy aligns with the state’s broader vision of economic empowerment and sustainable growth.
Hosting global business events
Sarawak’s burgeoning business events sector is another important facet of its economic strategy.
The state is hosting 122 business events this year, ranging from international conferences to exhibitions, with an estimated total economic impact of RM373.4 million.
Direct delegate expenditure is expected to contribute RM203 million to the economy and RM22.4 million in tax revenue, with 80 per cent of the scheduled events already concluded.
Major events hosted in Sarawak this year included the Asia Pacific Green Hydrogen and Exhibition (APGH) 2024, which welcomed 3,000 delegates, the 10th World Congress of Herpetology with 1,495 delegates, and the Borneo International Water and Wastewater Exhibition and Conference 2024, attended by 600 delegates and 60 exhibitors.
Under Business Events Sarawak (BESarawak), the state has secured 97 per cent of its targeted 100 business events scheduled through 2028, further solidifying its position as a premier destination for global business gatherings.
The state’s growing reputation as a business hub reflects its successful strategy of leveraging its unique strengths to attract global events that further boost its economic performance.
Pioneering renewable energy initiatives
Sarawak’s commitment to sustainable development is a defining feature of its 2024 economic achievements.
The state’s focus on renewable energy and green technologies is encapsulated in the Post-COVID Development Strategy (PCDS) 2030 framework.
Sarawak aims to harness its vast natural resources — such as its abundant forests, rivers, and agricultural land—to build a green economy.
The state is already exploring carbon capture technologies and renewable feedstock for aviation fuel, which will contribute to global sustainability efforts.
These initiatives reflect Sarawak’s long-term commitment to preserving its natural environment while embracing the opportunities offered by the global transition to green energy.
By investing in renewable energy projects and technologies, Sarawak is not only positioning itself as a regional leader in sustainable development but also helping to shape Malaysia’s green future.
Thriving space economy
Sarawak is also working towards establishing a strong space economy by fostering the growth and application of satellite technology across multiple sectors.
To achieve this, the state government has established the Space Industry and Satellite Committee (SISCOM), which is responsible for developing a policy framework to support the aspiration of owning and managing satellite technology assets.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has outlined the ambition to launch Sarawak’s own satellites to support economic development, focusing on the critical role of data collection for planning and growth.
This initiative aims to improve connectivity, especially in rural areas, while driving economic growth through better resource management, environmental monitoring, and disaster response.
In line with this goal, the establishment of the Aerospace Academy will provide essential training to local talent, ensuring Sarawak can develop and maintain its satellite technology in the future.
Through partnerships with industry leaders and educational institutions, the state aspires to become a key player in the global space industry, contributing significantly to its long-term economic development.
Future economic aspirations
Looking ahead, the Premier envisions Sarawak becoming an economic powerhouse comparable to Bavaria in Germany, a region known for its strong economic performance within a federal system.
The Premier’s goal is for Sarawak to become the second-largest contributor to Malaysia’s GDP by the 2026 state elections, up from 9.1 per cent in 2023.
Achieving this ambitious goal will require ongoing investment in infrastructure, continued efforts to enhance Sarawak’s autonomy, and strategic partnerships with international investors.
The state is already laying the groundwork for this vision by improving its internal connectivity, fostering innovation, and attracting investments from countries like the United States, China, and Singapore.
Furthermore, Sarawak is establishing a Sovereign Wealth Fund to ensure long-term financial stability and growth. This proactive approach ensures that Sarawak’s economic future is secure, even in the face of global uncertainties.
A vision for economic resilience and growth
Sarawak’s achievements in 2024 highlight the state’s strategic and forward-thinking approach to economic development.
From investing in robust infrastructure and renewable energy to advancing satellite technology and the aerospace industry, Sarawak has showcased a dynamic and resilient economic model poised for sustained growth.
The state’s dedication to greater autonomy, strategic investments, and global partnerships marks a new era of economic empowerment.
Its efforts in infrastructure development, business events, and sustainable initiatives provide a roadmap for how regional economies can thrive through innovation, planning, and collaboration.
With a clear vision, steadfast leadership, and bold initiatives like its entry into the space economy, Sarawak is set to strengthen its position as a leading economic player not just within Malaysia but across Southeast Asia.
