KUCHING: Global investors are taking notice as Sarawak turns its renewable energy and digital strengths into bankable ventures, positioning the state for its next phase of industrial growth.
Under the theme ‘Leaders Forum: Making Sarawak’s Digital and Green Projects Bankable’, moderated by Sarawak Digital Economy Corporation Bhd (SDEC) Chief Executive Officer (CEO), Datuk Sudarnoto Osman, during the International Digital Economy Conference Sarawak (IDECS) 2025, industry leaders outlined how Sarawak is moving beyond pilot projects to scale up its industrial base and attract long-term investment.
The discussion, featuring InvestSarawak CE, Timothy Ong Wye Ern; Centre for Technology Excellence Sarawak (CENTEXS) CEO Datuk Syeed Mohd Hussein Wan Abd Rahman, and BioVerde Technologies CEO Hazwan Razak, highlighted how Sarawak’s renewable power, investment-friendly policies, and skilled talent pool are establishing the foundation for its next wave of growth.
From Renewable Strength to Investor Confidence
Ong said Sarawak’s renewable energy advantage has given investors the confidence to view the state as a stable, future-ready destination for high-technology industries.
“Over the past year, we’ve seen several partnerships formed, particularly in the semiconductor and aerospace sectors. What makes this progress significant is how it connects back to Sarawak’s renewable energy advantage,” he said.
He cited the collaboration between SMD Semiconductor, Sarawak’s integrated circuit design outfit, and South Korea’s Rebellions Inc., a unicorn company specialising in artificial intelligence chips.
“The idea is not just to adopt technology but to develop it. We’re now leveraging renewable energy to build a knowledge-based economy around digital and green industries,” he added.
He noted that amendments to the Electricity Ordinance passed at the end of 2023 had created momentum for independent power producers and solar generation, supported by incentives for homeowners to install rooftop solar panels.
According to him, access to renewable and reliable power has become central to investor decisions, especially for high-technology and data-driven sectors.
Sarawak Energy Berhad’s openness to private generation and cascading hydro projects, he said, has further strengthened the state’s appeal.
“The rule of law and a progressive government that understands what international investors require are crucial. Seeing policies translated into action builds confidence. Every year, something new materialises — not just talk, but tangible implementation,” he said.
He added that visible projects such as the Autonomous Rapid Transit (ART) system, expected to begin operations in 2026, demonstrate Sarawak’s ability to turn policy into real-world outcomes.
Green Energy Moves from Testbeds to Market
Syeed said Sarawak’s renewable energy transition is shifting from research to full-scale deployment, with projects in solar, hydrogen, and wind now entering commercial stages.
“Our campus is fully powered by a 400-kilowatt solar system, one of the first of its kind. We also have hydrogen production facilities as part of our training testbeds. These projects are now entering the commercial phase,” he explained.
He said Sarawak’s green energy development spans multiple sources — solar, hydrogen, wind, and electric vehicles — with activities covering both upstream and downstream segments.
“The bankability of any green project depends on economic fundamentals such as supply, demand, and cost per kilowatt hour. For instance, if producing solar power costs 66 sen per kilowatt hour, the key question is how much Sarawak Energy Berhad is prepared to buy it for — whether 18 or 19 sen. Everything depends on that final figure,” he said.
Syeed added that Sarawak Energy’s RM12,000 subsidy for homeowners installing solar panels represents a practical step towards making renewable energy both accessible and economically attractive.
“It’s a brilliant initiative because it encourages homeowners to participate in the energy transition while saving on costs,” he said.
He also highlighted hydrogen’s strong potential for commercial applications.
“Hydrogen is highly feasible for plants, power stations, and aircraft. Boeing and Airbus are already developing hydrogen-powered planes, and hydrogen is also being used in space exploration,” he said.
However, he noted that widespread retail adoption would take longer as oil companies still control existing fuelling infrastructure.
“Once they take hydrogen seriously, progress will accelerate,” he said.
Syeed added that the combination of renewable sources such as solar, hydrogen, wind, and electric mobility gives Sarawak a diversified foundation for long-term sustainability.
“Green energy is an industrial game built on economic feasibility. Once the numbers make sense, the market will follow,” he said.
Biodiversity as Sarawak’s New Economy
Hazwan said Sarawak is now developing a biotechnology sector that will commercialise its rainforest biodiversity into high-value products and industries.
He explained that the establishment of BioVerde followed this year’s amendment to the Sarawak Biodiversity Ordinance, which allows the commercialisation of biodiversity assets under the Sarawak Biodiversity Council.
“The Sarawak Biodiversity Centre has operated for 26 years and has studied over 7,000 unique plants, producing more than 30,000 compounds with multiple uses. Now, with BioVerde, we’re taking that research to market and creating a new industry sector for Sarawak,” he said.
He estimated the state’s rainforest to hold an annual value of around RM3 billion, with biodiversity-based products contributing between RM100 million and RM300 million to Sarawak’s GDP through compounds and extracts used in health, wellness, and pharmaceuticals.
Many of these compounds, he added, are derived from traditional knowledge shared by local communities and supported by scientific research.
“They include essential oils and compounds with medicinal properties or the ability to lower blood pressure. These are ready for further development with industry partners,” he said.
To support this emerging industry, he noted that a bioplasm park is being developed in Samarahan in collaboration with the Tabung Ekonomi Gagasan Anak Sarawak (TEGAS) Digital and Biotech Centre (TBDC).
“The park will attract both local and international investors to establish a biotechnology cluster in the state,” he said.
Hazwan said BioVerde is being developed as a digital-first organisation that uses artificial intelligence to optimise its processes.
“Everything we do will be digitally enabled — from sales and distribution to research and production. We aim to make biodiversity a commercially viable and technology-driven sector,” he said.
He added that BioVerde’s partnerships will span digital, renewable energy, and semiconductor industries within a unified Sarawak ecosystem.
“This is a united front. With our biodiversity, our technology partners, and the state’s renewable strength, we’re offering investors something truly unique in ASEAN,” he said.
Preparing the Talent Base
Syeed emphasised that talent development must come first for Sarawak’s green and digital projects to succeed.
“To build a house, you first need a job. Talent comes first, infrastructure second,” he said.
He shared that CENTEXS has trained about 30,000 Sarawakians over the past decade in fields such as hydrogen, solar, oil and gas, artificial intelligence, electric vehicles, robotics, and aerospace.
“We offer 104 training programmes covering all the sectors mentioned by the Premier, along with 600 community-based courses and 100 industry-focused programmes,” he said.
He added that new initiatives include green mining training — developed in partnership with the University of British Columbia — to prepare talent for opportunities in rare earth and gold exploration.
“We’re also developing a programme for the low-altitude economy and flying cars, which we aim to launch by the end of November. It will be the first of its kind in Malaysia,” he said.
He emphasised that all programmes are aligned with state priorities and guided by the Premier’s industrial agenda.
“Everything the Premier envisions, CENTEXS is here to deliver,” he said.
Syeed also noted that talent readiness relies on enabling skilled professionals from abroad to work alongside locals.
“Things are improving significantly. The International Labour Management Unit (ILMU) has introduced a digital system to simplify applications, while the Nomad Pass has made it easier for tech professionals to enter,” he said.
He explained that these systems help identify sectors where local expertise is lacking, enabling universities and training institutions to bridge the gaps.
“When data reveals which industries lack skilled locals, universities and TVET institutions can adjust their programmes to close those gaps,” he said.
Partnership as the Common Thread
Ong said investors are encouraged by Sarawak’s clear policies and proven track record.
“The rule of law and a progressive government that understands what international investors require are crucial. Seeing policies translated into action builds confidence,” he said.
He added that partnership remains at the heart of Sarawak’s development model.
“The key word is partnership. We know we cannot do it alone. Bankable green and digital projects depend on everyone sharing the same vision and outcome,” he said.
Syeed added that digital and green industries represent the world’s next major growth frontiers.
“Digital is the past. Artificial intelligence is the present and the future. Green is about saving Mother Earth — and it will happen regardless,” he said.
He urged businesses and young professionals to explore careers and ventures in the green economy.
“Everyone can participate — whether as entrepreneurs or employees. Green is the new colour of the world,” he said.
He concluded by noting that artificial intelligence will expand just as the internet once did.
“AI will grow like the internet — and it will become even bigger. If we adopt the right mindset, we’ll understand that AI is here to stay, and so is green,” he said.
