KUCHING: The Sarawak government has collected RM19.55 billion in State Sales Tax (SST) revenue from petroleum product sales from 2019 to 2024.
Deputy Premier Datuk Amar Douglas Uggah Embas said that Sarawak’s success in claiming the tax from Petroliam Nasional Berhad (Petronas) has now provided additional revenue that is being channeled back to the people through various development programmes and assistance.
The initiative to introduce SST in 2019 was a bold move by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg to increase Sarawak’s financial resources and achieve a significant leap in the state’s development programmes.
“As of 2024, we have successfully collected RM19.55 billion. However, this amount is still relatively small, as the state government has various other approaches to increase revenue.
“These include the establishment of the Development Bank of Sarawak (DBOS), an innovative step in the state’s reengineering revenue that focuses on funding government projects,” he said.
The Second Minister of Finance and New Economy, who is also Deputy President of Parti Pesaka Bumiputera Bersatu (PBB), said this during a special interview at his office at Wisma Bapa Malaysia here on Wednesday.
As of 2023, Sarawak had collected RM15.8 billion in SST from petroleum products, making it one of the state’s main revenue generators, contributing approximately 33 per cent to Sarawak’s total revenue.
Elaborating, Uggah stated that with the presence of DBOS, major infrastructure projects could be implemented without relying entirely on federal government funding.
“Through DBOS, which provides alternative financing, we can fund mega projects such as the coastal road, the second trunk road, 15 major bridges, as well as water and electricity supply projects worth more than RM4 billion.
“This approach allows Sarawak to accelerate infrastructure development without waiting for allocations from the federal government, and it has proven effective in ensuring that development projects proceed smoothly,” he explained.
He added that apart from SST collection and financing through DBOS, the Sarawak government has also established the Sovereign Wealth Fund with an initial capital injection of RM8 billion.
“This fund cannot be withdrawn for 20 years unless there is an extremely urgent situation, which would require approval from the State Legislative Assembly (DUN).
“This initiative is a long-term strategy to ensure the state’s economic stability and the well-being of the people in the future,” he said.
