SARAWAK’S economy continues to grow resiliently, with the service sector is expected to expand by 6.7 per cent in 2024.
Deputy Premier Datuk Amar Douglas Uggah Embas said this is propelled by robust domestic demand and driven by continued rollout of various strategic state initiatives.
Uggah stated that tourism remains a key contributor, with visitors’ arrival reaching 4.8 million in 2024, driven by targeted promotional strategies and improved connectivity infrastructure.
“In the first quarter of 2025, visitors arrival maintained steady momentum at 1.2 million, reinforcing growth in services sub-sectors such as wholesale and retail trade, accommodation and transportation.
“In 2024, the manufacturing sector recorded improved growth, driven by a higher output from Liquefied Natural Gas (LNG), despite facing operational challenges such as power outages and scheduled plans shutdown for maintenance purposes.
“Exports volume of LNG increased by 3.8 per cent supported by strong global demand and favourable prices,” he said.
He said this in his winding-up speech during the Sarawak Legislative Assembly (DUN) sitting today.
For the first quarter of this year, Uggah, who is the Finance and New Economy Second Minister, said LNG exports remain stable.
However, following the reciprocal tariffs by the United States, market starts to soften which may lead to reduction in energy demand and over supply of LNG in the market for the remaining of the year.
“Meanwhile, the mining sector is expected to grow by 2.3 per cent in 2024, supported by the operationalisation of the Kasawari field and sustainable crude petroleum output.
“For the first quarter of 2025, output from the oil and gas sector continues to show positive trend,” he said.
Uggah stated in 2024, the agricultural sector is expected to experience a modest growth of two per cent, attributed to increased yields from fresh fruit bunches (FFB).
“Although there was a slight decrease in the crude palm oil (CPO) extraction rate, dropping from 19.8 per cent in 2023 to 19.4 per cent in 2024, the sector remains resilient, bolstered by enhanced yields and production efficiency.
“The first quarter of 2025 is expected to see an improvement in oil palm production, with FFB reaching 3.3 tonnes per hectare, up from 3.1 tonnes during the same period in 2024.
“Nevertheless, the sector’s prospects for the year are contingent upon weather conditions, which may have impact on production and yield,” he added.
He then stated in 2024, the construction industry is expected to experience significant growth of 8.7 per cent, largely fuelled by the civil engineering sub-sector, which represents 64.0 percent of the overall work value.
“This expansion is additionally bolstered by the non-residential building sub-sector, accounting for 13.5 per cent, and the residential building sub-sector, contributing 11.3 percent.
“The sector’s performance is largely attributed to the ongoing execution of strategic infrastructure and utilities initiatives under the 12th Malaysia Plan (12MP).
“This positive trend is anticipated to persist into 2025,” he said.
