KUCHING: Billions are on the table as Sarawak races to become a high-income state by 2030.
However, the dream could falter without serious investment in people, skills and rural infrastructure.
According to economist, Datuk Dr Madeline Berma, while Sarawak’s Post COVID-19 Development Strategy 2030 (PCDS 2030) is ambitious and well-structured, the speed of change could strain existing systems if not grounded with the right fundamentals.
She noted that the PCDS 2030 plan is built on three pillars, namely economic prosperity, social inclusivity, and environmental sustainability.
“Sarawak aims to double its GDP and boost sectoral contributions but without balanced development, the state could face growing gaps,” she told Sarawak Tribune.
Big Projects, Bigger Questions
In 2023, Sarawak recorded RM14.6 billion in construction activity, the fourth highest in the nation.
She stated that infrastructure rollouts, like the Pan Borneo Highway, the Second Trunk Road and the Northern Coastal Highway, mark clear capital investments.
In addition to this, she said that the state also operates six ports and has four industrial estates in play.
She expressed support for the Autonomous Rapid Transit (ART) system, calling it transformative for urban mobility.
However, she urged caution in pushing forward with two high-cost mega projects, namely the proposed international airport in Tanjung Emban, and a smart port here.
“These projects can wait until Sarawak’s economy is stronger.
“They are costly but highly strategic, with the potential to position Sarawak as a West Borneo hub for shipping and air traffic,” she said.
Furthermore, she stressed that continued capital investment must be matched with efforts to attract foreign direct investment (FDI) and empower local small and medium enterprises (SMEs).
“Sarawak has secured RM116 billion in investments over five years, with 60 per cent in FDI, mainly in the primary, manufacturing and services sectors.
“However, rural areas still lag behind in basic infrastructure. If left unaddressed, this will slow broader economic growth,” she said.
Labour Shortfall
Human capital, Madeline argued, is Sarawak’s weakest link.
Aside from the state having a shortage of skilled workers, she said that with Sarawak set to become an ‘aged region’ by 2028, two years ahead of the national curve, productivity could take a hit.
Looking at the situation, she supported the state-led programmes like the GETS-WRP initiative to upskill graduates, and praised the move to offer free tertiary education in public universities starting next year.
Following this, she also backed loosening immigration controls to attract foreign talent, at least in the short term, while building local capabilities.
“PCDS 2030 targets the creation of 500,000 skilled workers with a median household income of RM15,049 by 2030.
“Wages in Sarawak are still relatively low. With the right economic momentum, we can shift that,” she said.
Technology as a Game Changer
On the technology front, Madeline noted Sarawak’s ambitious plan to increase its renewable energy capacity from 5,700MW to 10GW by 2030.
While pointing out that Sarawak is a pioneer in the use of hybrid technologies in electricity generation in the region, she said that the state is also exploring advanced technologies to help it advance innovation to strengthen sustainable development in the tourism industry.
“Sarawak is not only focused on providing clean power for its own development, but also sees great commercial potential in electricity exports.
“Sarawak is a strong advocate of regional connectivity, envisioning that power trade within ASEAN will gradually shift from a bilateral relationship to a more integrated network that incorporates renewable sources.
“Sarawak with Indonesia, Sabah, Brunei and Singapore could become the basis for cross-border energy trade through pilot projects, such as the Borneo-Indonesia-Malaysia-Philippines Interconnection,” Madeline concluded.
