SARAWAK is poised to benefit from favorable external demand in 2023, primarily driven by growth in intermediate and capital goods, according to Deputy Premier cum Second Minister for Finance and Economy, Datuk Amar Douglas Uggah Embas.
However, he noted that there is a downside risk due to the potential impact of a global economic slowdown on Sarawak’s exports.
During his ministerial winding-up speech at the Sarawak Legislative Assembly (DUN) sitting on today (May 24), Uggah highlighted that total trade in the first two months of 2023 already showed a 4.3 per cent increase compared to the corresponding period of the previous year.
He added that private consumption is expected to expand in 2023, fueled by ongoing improvements in household spending and labour market conditions.
“In addition, the revision in individual income tax rates in Budget 2023 and the implementation of cash transfers are expected to further support and augment household income.
“The state and federal governments’ policy measures, including assistance to lower-income households through initiatives like Bantuan Khas Sarawakku Sayang (BKSS) 9.0, cash transfers, and Employees Provident Fund (EPF) related measures, have played a vital role in supporting consumer spending.”
Uggah expressed confidence in Sarawak’s ability to secure more investments and ensure the smooth implementation of ongoing investment projects in 2023. “RM1.77bil worth of investment has been approved as of the first quarter of the year.”
While global uncertainties and a downward trend in oil prices may impact external demand, he remained optimistic about the state’s economy, expecting it to remain resilient and robust.
He highlighted the stronger domestic activities expected in 2023 and the vigorous implementation of infrastructure projects under the 12th Malaysia Plan (RMK-12).
“Overall, Sarawak’s economy is projected to grow between five and six per cent throughout the year.”
