The Sarawak government’s financing levels remain within safe and sustainable limits.
Second Minister of Finance and New Economy Datuk Amar Douglas Uggah Embas said Sarawak’s financing with the federal government and financial institutions as of December 2025 stood at 1.11 per cent and 11.0 per cent of the state’s Gross Domestic Product (GDP), respectively.
He said the financings were channelled towards projects such as roads, bridges, housing, water supply, electricity, industrial developments, ports, and sewerage systems.
“Using external financing to promote economic growth is a well-established and responsible practice among advanced economies around the world.
“In our context, we have the fiscal space and the economic fundamentals to do the same.
“With diversified and resilient revenue sources, prudent financing management, and a proven track record of sound governance, we have the capacity to service our financing obligations without compromising our fiscal position,” he said.
He said this in his ministerial winding-up speech during the State Legislative Assembly (DUN) sitting here today (May 20).
Uggah stressed that the government’s borrowings are aimed at productive and high-return investments rather than accumulating liabilities, noting that infrastructure investments would strengthen economic capacity, improve productivity, and generate sustainable revenue in the future.
“We are not accumulating liabilities here, we are investing in wealth creation,” he said.
He added that the state government continues to strengthen its fiscal position through measures such as the State Sales Tax (SST) on petroleum, aluminium, and other export products, which have significantly increased Sarawak’s revenue base.
“We have also introduced measures to support our efforts to strengthen and expand our fiscal space, among others, with the State Dividend Policy, all State GLC are together in the collective efforts to positively contribute to the development of Sarawak via dividend contribution, among others.
“This will further align with our Sarawak Standard Operating Procedure (SOP) that was designed to transform the governance and performance of our State-Owned Enterprise (SOEs),” he said.
