KUCHING: Nine years after Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg took office in January 2017, Sarawak’s economic performance is now well-entrenched on a post-pandemic rebound.
In 2024 the state registered a GDP of RM148.2 billion with projections of up to RM154 billion in 2025.
Sarawak’s economy contracted by 6.7 per cent in 2020, rebounded by 7.1 per cent in 2022, and recorded an average growth rate of 4.1 per cent across 2022 to 2024.
In 2024, the economy grew 3.9 per cent from 2023.
For the medium-term baseline, GDP was framed as expanding from RM132 billion in 2021.
2025 outlook and budget position
For 2025, Sarawak’s GDP was projected to reach RM154 billion, while the revenue projection was revised downward amid oil prices described as hovering around USD69 per barrel.
Budget capacity for 2025 was also described as being supported by a buffer allocation.
A buffer of RM2.2 billion in the Development Fund Account was cited as available to support development initiatives equivalent to the deficit, without serious repercussions to the 2025 budget estimate.
Nine-year economic recap: recovery and revenue base
The recovery phase was accompanied by higher revenue collection.
The State revenue collection in 2021 stood at RM7.620 billion.
In 2022, revenue reached RM11.910 billion, representing an increase of RM4.290 billion (56.3 per cent) from the 2021 level.
By 2024, revenue had grown to RM14.187 billion, from the 2021 baseline.
The economic development programme targets a GDP of RM282 billion by 2030.
Reaching this goal requires roughly RM100 billion in additional GDP, driven by committed and projected investments across energy, manufacturing, digitalisation, commercial agriculture, and major infrastructure projects.
Trade and export performance
Sarawak’s trade position has been anchored by export strength.
In 2024, Sarawak’s total trade was RM198.7 billion, comprising RM134.9 billion of exports and RM63.8 billion of imports, with a trade surplus of RM71.1 billion.
Exports were led by liquefied natural gas, crude petroleum, petroleum products, palm oil and wood-based products, with Japan, China, South Korea, Taiwan and India among the main trading partners.
Investment pipeline and diversification
Investment approvals were presented as a running pipeline rather than a single-year headline.
Approved investments from 2021 to 2024 reached close to RM106 billion.
The investment mix has been repeatedly positioned around downstream activity and export-oriented production, alongside new economy initiatives under the Post COVID-19 Development Strategy 2030.
Sector diversification focuses on energy transition industries, manufacturing, digitalisation, commercial agriculture, and logistics infrastructure.
Feasibility studies are underway for major connectivity projects, including a proposed deep sea port and new international airport.
Public finances and governance track
The State’s public accounts have been reported as receiving clean audit certificates consecutively.
Sarawak’s credit ratings have been reaffirmed by Moody’s (A3, stable outlook), S&P (A-, stable outlook) and RAM (Triple A).
The State sales tax has remained a central revenue pillar in the past several years, including receipts attributed to crude oil and liquefied natural gas.
Development spending and delivery channels
Development allocations have remained a visible tool for supporting domestic demand, project delivery and longer-term competitiveness.
Under Budget 2025, Sarawak allocated RM15.80 billion in total expenditure.
The budget allocated RM4.9 billion for operating expenditure and RM10.9 billion for development expenditure.
It also set ordinary expenditure at RM13.7 billion, including an RM8.8 billion appropriation to the Development Fund Account to finance the development programme.
The 2025 development allocation was described as rural-weighted, with RM6.80 billion, or 62 per cent, allocated for rural development programmes.
Major headings included roads and bridges, water supply, electricity supply, telecommunication services, and rural and regional development agencies.
Alternative funding has also been positioned as a parallel delivery channel.
Alternative funding expenditure was reported at RM21.8 billion, covering 1,586 projects, with 1,127 completed and 459 still ongoing.
New economy tracks that feed investment
Alongside capital spending, state-led initiatives have been tied to investment attraction and new sector growth.
Digital economy indicators were presented through usage and access metrics.
S Pay Global was reported to have attracted 1.6 million users and 95,000 merchants, with more than RM5.5 billion in transactions since its launch.
On connectivity, the Sarawak Rural Broadband Network (MySRBN) was described as aiming to provide home broadband services for 100,000 rural homes in the next few years.
As of Oct 6, 2025, MySRBN was reported to have equipped 35,700 premises with Customer Premises Equipment (CPE).
Separately, 250 sites were described as being equipped with VSAT under the Wi-Fi SALURAN project, which was described as having benefited more than 86,000 users in remote areas.
A major hydrogen project in Bintulu will produce 630,000 metric tonnes of green ammonia, 600,000 metric tonnes of blue ammonia, and 220,000 metric tonnes of green hydrogen.
The bulk of production will be exported to South Korea, with 7,000 metric tonnes reserved for domestic use.
On the green economy front, carbon trading became operational on Jan 1, 2023 following amendments to the Forest Ordinance.
Carbon capture and storage was described as a strategic industry, with Sarawak’s CO2 storage potential estimated at around 9 billion tonnes.
As the Abang Johari marks his ninth year, the state’s development programme continues to frame the next phase around the RM282 billion GDP target by 2030.
